Special Notice / Hearing: None
Vote Required: 4/5ths
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive Officer
Justin W. Mates, Deputy County Executive
Emma Gonzalez, Manager, Office of Community Affairs
Subject: Agreements with JobTrain and Renaissance Entrepreneurship Center to Support Job Seekers and Small Businesses and Entrepreneurs in North Fair Oaks
RECOMMENDATION:
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Measure K: Adopt a resolution:
A) Authorizing and directing the President of the Board to execute an agreement with Renaissance Entrepreneurship Center (REN) to provide services to small businesses and entrepreneurs through the North Fair Oaks Economic Advancement Center, for a term of April 1, 2025 through September 30, 2025, in an amount not to exceed $120,000; and
B) Authorizing and directing the President of the Board to execute an agreement with JobTrain to provide technical assistance and support to individuals and households through the North Fair Oaks Economic Advancement Center, for a term of April 1, 2025 through September 30, 2025, in an amount not to exceed $220,000; and
C) Approving an Appropriation Transfer Request (ATR) in the amount of $340,000 from Measure K Reserves to Non-Departmental Services to fund the agreements with REN and JobTrain to provide technical support and other services to individuals, households, and small businesses at the North Fair Oaks Economic Advancement Center.
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BACKGROUND:
As part of the County’s pandemic economic recovery efforts, the Board made several investments benefiting job seekers and small businesses/entrepreneurs in the form of support for the creation of three economic advancement (or opportunity) centers.
In March 2021, the Board approved $200,000 in American Rescue Plan Act (ARPA) funds, which along with investment from the City of South San Francisco, led to the development of the South San Francisco Economic Advancement Center (SSF EAC), a one-stop shop that provides a range of technical assistance to job seekers, small business owners, and local entrepreneurs who had been adversely impacted by the pandemic. One of the key features of the SSF EAC was the physical co-location of job seeker and small business/entrepreneurial services in a central location to achieve synergies in services and referrals for communities still suffering from the economic impacts of the pandemic.
On September 13, 2022, the Board authorized an allocation of $5,000,000 in ARPA funds for the development and operation of new Economic Advancement Centers on the Coastside ($2,500,000) (Opportunity Center of the Coastside or OCC) and in North Fair Oaks ($2,500,000) (NFO Economic Advancement Center, or NFO EAC). The City of South San Francisco oversees the SSF EAC, the City of Half Moon Bay oversees the OCC, and the County of San Mateo oversees the NFO EAC in unincorporated North Fair Oaks (and serving South County). The Chan Zuckerberg Initiative (CZI) also contributed $500,000 to support the NFO EAC, along with an additional $100,000 for an evaluation of all three economic advancement centers.
JobTrain and REN were selected through independent procurement processes to provide services at two other EACs (i.e., Half Moon Bay and South San Francisco). In view of the South San Francisco procurement, this Board approved the selection of JobTrain to provide comprehensive job search services including job readiness workshops, placement services, and career exploration / planning services at the NFO EAC. REN was selected to provide comprehensive small business and entrepreneur services including small business assessments, training classes, one-on-one consulting, skill building and industry-specific workshops, technology training, website development, legal assistance and networking events at the NFO EAC.
On January 31, 2023, this Board approved initial contracts with both vendors; specifically, the Board approved an agreement with REN for an amount not to exceed $750,000 and a term from January 31, 2023 through September 30, 2024 and an agreement with JobTrain for an amount not to exceed $688,883 for a term from January 31, 2023, through September 30, 2024.
In May 2024, after JobTrain and REN initially provided the services of the NFO EAC remotely and in borrowed space, these providers began providing services out of the County’s newly acquired dedicated space on Middlefield Road in the heart of North Fair Oaks. The County amended both agreements for a no-cost extension through March 30, 2025. Both agreements were funded using ARPA funds based on the provision of services to eligible households and small businesses.
Since the start of the County’s ARPA-funded contract with REN on April 1, 2023, REN has provided services to 274 clients and led 54 unique trainings, workshops and classes and has met all performance metrics under that agreement. Clients participated in workshops on topics such as social media marketing, financial management, and technology integration to optimize business operations. The program’s client demographics reflect its focus on those most impacted by the pandemic in North Fair Oaks: 83% of the clients identified as immigrants, 77% as Hispanic, and 57% as female, with 97% reporting incomes in the extremely low to moderate range.
Under the prior ARPA-funded contract, JobTrain provided services to 228 clients for over 900 job seeker services, placed 87 individuals into jobs and has met all performance metrics under that agreement. The program’s client demographics reflect its focus on those most impacted by the pandemic in North Fair Oaks: 85% identified as Hispanic, and 54% as female, 94% reporting incomes in the extremely low to moderate range, and 61% with a preferred language of Spanish.
DISCUSSION:
The NFO EAC provided services to lower income households and small businesses to foster economic recovery following the pandemic. But even as we move further past the pandemic, the North Fair Oaks community continues to face economic challenges, as evidenced in part by its lower average household income than the county generally ($106,690 in North Fair Oaks vs. $156,000 Countywide per 2019-2023 American Community Survey data). Uncertain macroeconomic conditions in the near future pose additional challenges to our lower income communities. North Fair Oaks and the communities served by the NFO EAC would benefit from an extension of the NFO EAC’s services, and therefore staff recommends two new contracts (for REN and JobTrain) to continue providing these services for the term of April 1, 2025 through September 30, 2025 to be funded through Measure K reserves, rather than ARPA.
The new agreements will also allow time for the completion of the third-party evaluation of all three EACs (and the EAC model more generally), which is currently underway and being overseen by the City of Half Moon Bay. It is expected that evaluation will not only address performance and outcomes but also the long-run financial sustainability and diversification of funding sources for the EAC model. The term of these new agreements with REN and JobTrain is co-extensive with the terms of their existing service contracts for the OCC. In view of the prior agreements for these services with these providers through March 30, 2025, the new agreements are a continuation of an ongoing service or project and exempt from further competitive procurement under Admin Memo B-1, § IV(C).
The services would be provided to households earning less than 65% of the Area Median Income (AMI) in the County, or that have experienced unemployment or increased food or housing insecurity, or that qualify for certain federal assistance programs including job seekers, as well as small businesses that have experienced decreased revenue or gross receipts, financial insecurity, increased costs, decreased capacity to weather financial hardship, challenges covering payroll, rent or mortgage, and other operating costs.
The proposed new agreement with REN would require substantially the same services as under the prior contract to eligible households and small businesses for the term of April 1, 2025 through September 30, 2025 for an amount not to exceed$120,000. Under the new agreement, REN will be expected to serve an additional 45 clients, including 20 existing small businesses and support 10 new small business launches.
The proposed new agreement with JobTrain would provide substantially the same services as under the prior contract to eligible individuals and households for the term of April 1, 2025 through September 30, 2025 for an amount not to exceed $220,000. Under this new agreement, JobTrain will be expected to serve an additional 115 new, unique eligible individuals, and deliver a total of 168 supportive services, with each service representing an individual occurrence of support. Additionally, JobTrain aims to place 37 clients into jobs.
In order to fund these two new agreements, staff recommends that the Board approve an Appropriation Transfer Request (ATR) in the amount of $340,000, transferred from Measure K reserves.
The County Attorney has reviewed the proposed agreements and resolution as to form.
The County Executive and Controller have approved the ATR accompanying this memorandum.
EQUITY IMPACT:
The economic advancement center in the North Fair Oaks community is an important step toward addressing disparities in access to financial resources, entrepreneurial support, workforce training, and business development. Supporting an economic advancement center provides the tools, knowledge, training, and resources necessary for small business owners and job seekers to build financial stability and participate fully in the economy and their community.
FISCAL IMPACT:
Together, the two new agreements will be funded through $340,000 in Measure K reserves. Approval of the Appropriation Transfer Request from Measure K Reserves to Non-Departmental Services will transfer the funds for these agreements which are included in the FY2024-25 Adopted Budget.