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APPROVE NEW HIRE STOCKTON PROGRAM TO SUPPORT HIRING AND TRAINING OF LOCAL RESIDENTS FROM ECONOMICALLY DISADVANTAGED AREAS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the new Hire Stockton program to support the hiring and training of local Stockton residents from economically disadvantaged areas; and
2. Authorizing the City Manager to take necessary and appropriate actions to carry out the purpose and intent of the resolution.
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Summary
City staff is recommending the adoption of a new workforce development incentive program titled “Hire Stockton.” This new program is intended to provide financial incentives to Stockton employers who hire, train, and retain local workforce residing within economically distressed census tracts within the Stockton city limits and pay those employees a predetermined wage (Attachment A - Hire Stockton Census Tracts Map). The mission of this program is to address the challenges some residents face in obtaining and retaining high wage employment opportunities, and obtaining workforce training/education to address skills gaps. This program supports business retention and development by offsetting some of the expenses incurred through the hiring and training processes, which coincides with the goals of the City of Stockton Economic Development Strategic Plan. Hire Stockton grants will be offered on a first come, first served basis.
DISCUSSION
Background
The City of Stockton Economic Development Strategic Plan, published in 2015, identified core goals of economic development in Stockton. Critical to economic development is the retention and expansion of existing industry and development of business incentives. As Stockton has continued to grow and thrive in many key economic indicators, some residents lag behind in access to quality, high wage employment opportunities. To mitigate the challenges facing residents and encourage Stockton businesses to hire local, the City has proposed the Hire Stockton program. Economically disadvantaged areas have been identified as census tracts in the City of Stockton where 30% (or more) of families live below the federal poverty level of $25,094 for a family of four (US Census Bureau 2017).
Present Situation
The Economic Development Department is recommending the creation of the new Hire Stockton program to help accomplish the goal of stimulating workforce and economic development through increased wages, job growth, technology investment, and productivity enhancement.
Per the proposed Hire Stockton program guidelines (Exhibit 1 to the Proposed Resolution), grant amounts will be available ranging from $5,000 to $10,000 and will be offered on a reimbursement basis only. The maximum grant amount awarded for this program shall not exceed $10,000 per company/applicant and is based on level of pay and a minimum of one year of full-time employment as depicted below.
|
Wages Paid per Hour |
Grant Funds Awarded per Full-time Employee |
|
$20-$22.49 |
Up to $5,000 |
|
$22.50 - $24.99 |
Up to $7,500 |
|
$25 and Up |
Up to $10,000 |
The grant approval process may include the following:
• Grant funds are awarded on a first come, first served basis
• Funds must be used for hiring and training employees who reside in one of the program’s designated census tracts, and documentation will be required to receive grant funds
• New employees must remain employed for at least one year after hire date
• Grant funds may only be used for new hires
• Grant funds not eligible for relatives or dependents of the employer or for business owners
• Wages must be paid by the employer
Employees hired as a part of the Hire Stockton program must live within an approved economically distressed census tract as shown in Attachment A. All businesses who apply to participate in the Hire Stockton program must be located within the Stockton city limits to be eligible. The following criteria will be used for determining eligibility for Hire Stockton grant funds:
• Business must be located within Stockton city limits.
• Employer of more than 20 employees.
• Employer must have been located within Stockton for a minimum of five years
• For purposes of this program, new employees are required to be permanent, full-time positions with paid benefits packages and be paid a minimum of $20 per hour.
o Full Time Positions are defined as positions where an employee is employed on average at least 30 hours per week.
o Paid Benefits are defined as company provided health insurance which the company pays at least 50% of the premiums for participating employees.
• Eligible new hires must be employed for at least one year.
• Applicants will be required to enter into an agreement with the City in order to qualify for disbursement of grant funding.
• Applicants will be required to submit all required documentation to verify eligibility.
• Willingness to comply with the program guidelines and provide proof of intentions of hiring an employee residing within the program’s designated census tracts.
Economic Development staff will evaluate grant applications and reserve the right to approve or reject projects based on the program guidelines.
FINANCIAL SUMMARY
The City Council approved funding in the amount of $50,000 for the Hire Stockton program during the fiscal year 2018-2019 budget process and sufficient funds are available in the Economic Development General Fund Account No. 010-1760-510.
Attachment A - Hire Stockton Census Tract Map