POLICY RESOLUTION: SETC # SUBJECT: SETC Approval of Local Area Designation for Cumberland Salem Cape May

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1 POLICY RESOLUTION: SETC # SUBJECT: SETC Apprval f Lcal Area Designatin fr Cumberland Salem Cape May Backgrund The Wrkfrce Innvatin and Opprtunity Act (WIOA) f 2014 requires that the Gvernr designate lcal areas that are cnsistent with labr market areas in the State, are cnsistent with reginal ecnmic develpment areas in the State, and have available the Federal and nn Federal resurces necessary t effectively administer activities under 29 U.S.C thrugh 3181 (Chapter 32, Subchapter I, Part B, f WIOA) and any ther applicable prvisins f WIOA, including whether the areas have the apprpriate educatin and training prviders, such as institutins f higher educatin and area career and technical educatin schls. This is t be dne thrugh cnsultatin with the State wrkfrce develpment bard and after cnsultatin with chief elected fficials and lcal bards, and after cnsideratin f cmments received thrugh the public cmment prcess as described within 29 U.S.C. 3112(b)(2)(E)(iii)(II). WIOA states that during the first 2 full prgram years fllwing July 22, 2014, the Gvernr shall apprve a request fr initial designatin as a lcal area frm any area that was designated as a lcal area fr purpses f the Wrkfrce Investment Act f 1998 (WIA) fr the 2 year perid preceding July 22, 2014, perfrmed successfully, and sustained fiscal integrity. The perid f initial designatin fr lcal areas is frm July 1, 2015 June 30, This cvers Prgram Years 2015 and Subsequent lcal area designatins will be reviewed by the SETC in 2017, and will be effective July 1, On March 29, 2016, the SETC apprved the requests fr initial designatin frm 18 lcal areas, including the Atlantic Cape May and Cumberland Salem areas. Each f these areas met the designatin requirements, and sustained perfrmance success and fiscal integrity, as required under WIOA and SETC Plicy # Request and Prcess The SETC has received a request fr a new lcal area designatin f Cumberland Salem Cape May. This request was received frm the Cumberland Salem Wrkfrce Develpment Bard, with the apprval f Cumberland Cunty, Salem Cunty and Cape May Cunty Freehlders. The attached letter f request and partnership prpsal utlines the designatin request fr these three cunties t frm a lcal area, perating under ne lcal Wrkfrce Develpment Bard. The apprval f this request will establish the Cumberland Salem Cape May Lcal Area, and as a result, Atlantic Cunty will then perate as a separate lcal area. Timeframe The Cumberland Salem Cape May Lcal Area and the Atlantic Cunty Lcal Area will be designated frm July 1, 2016 June 30, Subsequent lcal area designatin requests will be required frm all lcal areas, and will be effective July 1, RESOLUTION: The State Emplyment and Training Cmmissin hereby apprves the lcal area designatin request received frm Cumberland Salem Cape May fr designatin as a Lcal Area, frm July 1, 2016 thrugh June 30, SETC Plicy Reslutin # Page 1

2 Attachments: Cumberland Salem Wrkfrce Develpment Bard Request Letter, 4/7/2016 Cumberland Salem Cape May Prpsed Wrkfrce Develpment Partnership Cmmissin Apprved: May 3, 2016 SETC Plicy Reslutin # Page 2

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8 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership I. GEOGRAPHY & DEMOGRAPHICS OF THE LOCAL AREA The prpsed Partnership wuld include the three mst suthern Cunties in New Jersey Wuld cver a ttal 1067 square miles f land area ~15% f the State s ttal land area Wuld have the federally required (Sectin 106 (b) f the Wrkfrce Innvatin and Opprtunity Act (WIOA) cntiguus nature All three Cunties share cmmn Delaware Bay castline t the west Land mass areas are linked with Cumberland as the hub Wuld be 2nd largest service area in terms f size in NJ NJ s nly ther tri cunty wrkfrce develpment service area (Mrris/Sussex/Warren) is the largest Wuld Include three (3) f the seven cunties (7) that cmprise NJDOLWD s Suthern NJ Regin Wuld have a ttal cllective ppulatin f apprximately 320,200 individuals Wuld have a ttal cllective labr frce f apprximately 153,800 individuals Wuld be hme t nearly 8,000 private sectr business establishments COUNTY SQUARE MILES POPULATION LABOR FORCE # OF BUSINESS ESTABLISHMENTS Cape May ,265 47,600 3,806 Cumberland ,898 73,300 2,898 Salem ,083 32,900 1,169 TOTAL , ,800 7,873 Data Surces: US Census Data April 1, 2010; US Census Data 2012 Updates Frm a gegraphic and demgraphic perspective, a Tri Cunty Partnership cnsisting f Cumberland, Salem and Cape May cunties ffers a viable lcal Wrkfrce Develpment service delivery area that wuld meet the Wrkfrce Innvatin and Opprtunity Act (WIOA) requirements. Furthermre, the Partnership can be seen as a preferred arrangement in that it is better aligned with New Jersey s reginal apprach t service delivery.

9 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership II. LABOR MARKET AND THE ECONOMY OF THE LOCAL AREA The prpsed Partnership wuld span three (3) federally recgnized Metrplitan Statistical Areas (MSAs) Vineland Millville Bridgetn (Cumberland Cunty) Ocean City (Cape May Cunty) Wilmingtn, De (Salem Cunty) A. COMMON ELEMENTS While each f the MSA s (r Labr Areas) hlds a degree f uniqueness, they als display numerus cmmnalities. The cmmnalities are mst readily evidenced in Industry Sectr emplyment statistics fr: Health Care and Scial Services Retail Trade Accmmdatins & Fd Service Cnstructin Each f thse sectrs ranked in the tp six (6) fr emplyment in each Cunty. Cllectively, the fur sectrs currently accunt fr ver half (56%) f all nn gvernment and nn farm emplyment in the three cunties. Cllectively, the fur sectrs are prjected t accunt fr ver 90% (4950 jbs) f the net nnfarm emplyment gains that shuld ccur ver the next ten years. TOP SIX EMPLOYMENT SECTORS BY COUNTY RANK CAPE MAY CUMBERLAND SALEM 1 Accmmdatins & Fd Service Health Care & Scial Services Health Care & Scial Services 2 Retail Trade Manufacturing Manufacturing 3 Health Care& Scial Services Retail Trade Retail Trade 4 Cnstructin Accmmdatins & Fd Service Utilities 5 Other Services Whlesale and Trade Accmmdatins & Fd Service 6 Arts and Recreatin Cnstructin Cnstructin Data Surce: NJDOLWD Key Industries by Cunty Reprt fr Cape May, Cumberland and Salem cunties (February 2016). NOTE: In additin t the abve, all three cunties have a rich traditin f supprting agriculture related industries and emplyment as evidenced in recent years in the significant grwth f hrticulture, sd and grape (winery) peratins in all three cunties.

10 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership II. LABOR MARKET AND THE ECONOMY OF THE LOCAL AREA (cntinued) B. DIFFERENCES There are certain Industry Sectrs that hld a higher level f significance within ne r mre f the cunties than they d in the ther(s). They include: Manufacturing 2 nd highest emplyment sectr in bth Cumberland and Salem but nt in the tp ten fr Cape May Whlesale Trade 5 th highest emplyment sectr in Cumberland but utside f the tp ten fr bth Cape May and Salem Utilities 4 th highest emplyment sectr in Salem but a minimal sectr in bth Cape May and Cumberland Transprtatin & Warehusing 7 th highest emplyment sectr in bth Cumberland and Salem but nt in the tp ten fr Cape May Data Surce: NJDOLWD Key Industries by Cunty Reprt fr Cape May, Cumberland and Salem cunties (February 2016). These primary labr market differences (and thers, if any are identified) will need t be addressed as part f the lcal area s wrkfrce develpment strategic planning activities. Differences can best be viewed as pprtunities fr ecnmic diversificatin: They can result in expanded emplyment pssibilities fr jb seekers They can create an expanded labr pl fr businesses seeking t hire new wrkers. C. OTHER The prpsed partnership shuld functin t supprt, imprve and grw ther reginal effrts that that currently exist and can be seen as a catalyst fr pening drs t new ventures. New Jersey Reginal Planning and Crdinatin Effrts Ecnmic Develpment Business Retentin Business Attractin Turism Frm a Labr Market perspective, a Tri Cunty Partnership cnsisting f Cumberland, Salem and Cape May cunties adequately demnstrates an ability t meet the requirements fr labr market and ecnmic develpment cnsistency as presented in Sectin 106(1)(B) f the Wrkfrce Innvatin and Opprtunity Act (WIOA). Furthermre, the Partnership can be seen as a preferred arrangement in that it shuld result in enhanced labr exchange pssibilities fr bth the jb seeker and the emplyer cmmunity.

11 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership III. ADMINISTRATION AND OPERATIONAL PARAMETERS OF THE LOCAL AREA A. The prpsed Partnership wuld be a build ut f the current partnership that exists between Cumberland and Salem. Wuld result in administrative efficiencies and ecnmies Designed s as t prmte nn duplicatin f essential administrative services such as: Financial Management Management Infrmatin Systems (MIS) Reprting Cntracting Mnitring Prcurement (RFPs) Wrkfrce Develpment Bard Functins Allw fr individual Cunty based direct service management and prvisin B. Key Functins and Rles Within the Partnership Cumberland Cunty cntinues t: functin as the Grant Recipient fr the entire lcal area functin as the primary Administrative Entity fr the entire lcal area be respnsible fr all prgram peratins within Cumberland Cunty act as the emplying entity fr staff as necessary t carry ut designated functins and rles. Salem Cunty cntinues t: functin as a Sub Grantee within the partnership be respnsible fr all prgram peratins within Salem Cunty be respnsible fr certain administrative functins related t Salem Cunty prgrams. act as the emplying entity respnsible fr staff as necessary t carry ut designated functins and rles. Cape May Cunty becmes: a Sub Grantee within the partnership respnsible fr all prgram peratins within Cape May Cunty respnsible fr limited administrative functins fr Cape May Cunty prgrams. the emplying entity fr staff as necessary t carry ut designated functins and rles. The Wrkfrce Develpment Bard: Cntinues t be respnsible fr strategic planning, versight, establishing pririties, perfrmance mnitring, budgeting and related required rles fr the entire lcal area. Determines the direct staffing needs f the Bard as necessary t carry ut its designated duties and respnsibilities (cnsistent with parameters established by the SETC)

12 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership III. ADMINISTRATION AND OPERATIONAL PARAMETERS (cntinued) C. The prpsed Partnership wuld fficially cmmence n July 1, NJDOLWD wuld include Cape May s frmula based allcatins (funding) fr Prgram Year (July 1, 2016 t June 30, 2017) n the newly frmed lcal area s Ntice f Obligatin (NOO). The NOO wuld detail individual allcatin (funding) amunts available t each Cunty in the Partnership. All such allcated funds (with the exceptin f thse amunts necessary t supprt area wide administrative functins) wuld be made available t supprt prgram peratins within the Cunty t which they are frmula allcated. Funding wuld be utilized by each Cunty in a manner that cmplies with the laws and regulatins gverning its use and is cnsistent with the strategic plan and budget guidance prvided by the Wrkfrce Develpment Bard In Cape May Cunty, funding wuld initially be targeted tward develping adequate infrastructure, staffing and establishing base line services. Gal wuld be t have such base line peratins in place and available t Cape May Cunty residents as f July 1, 2016 Enrllments that ccur n r after July 1, 2016 wuld be served by Cape May under the new partnership Cape May Cunty residents currently being served (thse enrlled in activities prir t June 30, 2016) wuld cntinue t be served by Atlantic Cunty. Additinal services (as needed/identified) wuld be phased in during subsequent six (6) mnth transitinal perid (i.e., July thrugh December) New and/r amended One Stp Operating Agreements, Resurce Sharing Agreements and Wrkfrce Bard/CEO Agreements must be develped during subsequent six (6) mnth transitinal perid (i.e., July thrugh December) A full Lcal Area Designatin Request wuld be submitted t State Emplyment and Training Cmmissin (SETC) in early The request must include all agreements (see abve) and verificatin f lcal area demnstrated perfrmance and fiscal integrity.

13 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership III. ADMINISTRATION AND OPERATIONAL PARAMETERS (cntinued) D. The prpsed partnerships wuld have an impact n the activities and cmpsitin f Wrkfrce Develpment Bard. The Bard wuld becme respnsible fr an additinal Cunty (Cape May) Current active members/appintees serving as Cape May Cunty representatives t the Atlantic/Cape May Wrkfrce Develpment Bard wuld be absrbed as members f the prpsed partnership s Wrkfrce Develpment Bard Prvide Cape May with the ability t ffer input and advice during the six (6) mnth transitinal phase (July t December) Establishes a sub grup f the Bard that wuld be necessary t guide initial key RFP develpment and prvider selectin prcesses. During subsequent six (6) mnth transitinal perid (i.e., July thrugh December): Bard membership numbers and representatin categries wuld need t be reviewed, adjusted and agreed upn t add an apprpriate and equitable level f Cape May Cunty representatin. Bard membership numbers and representatin categries will need t be reviewed, adjusted and agreed upn t assure cmpliance with the new requirements under the Wrkfrce Innvatin and Opprtunity Act (WIOA) and SETC Directives. The lcal area s Strategic Plan will need t be reviewed t assure that service pririties and industry targets (as well as management and administrative structures) are capable f fully addressing lcal area needs. Bard staffing needs wuld need t be reviewed t assure they cmply with and are cnsistent with parameters established by the SETC. Frm an Administrative perspective, a Tri Cunty Partnership cnsisting f Cumberland, Salem and Cape May cunties wuld ffer an pprtunity t further the scpe and sphere f influence f well functining and time prven administrative efficiencies. Frm an Operatinal perspective, a Tri Cunty Partnership cnsisting f Cumberland, Salem and Cape May cunties wuld prmte lcally (cunty based) managed and cntrlled service delivery that, nce fully implemented, wuld enhance the jb seeker s awareness f and access t available wrkfrce develpment services. Under the guidance and versight f the Wrkfrce Develpment Bard, the Partnership wuld functin as a fair, equitable and business needs driven system that addresses the needs within the lcal labr market area and the Suth Jersey Reginal Labr Market Area as established by NJDOLWD and the SETC.

14 Cumberland/Salem/Cape May Prpsed Wrkfrce Develpment Partnership IV. SUMMARY STATEMENT We believe that the new partnership arrangement will: Imprve access t wrkfrce develpment service fr the residents f Cape May Cunty, Define and implement service ptins that will better address the training, educatin and wrkfrce develpment needs f the residents f Cape May Cunty, Functin t develp a pl f trained wrkers (labr frce) that pssess emplyment skills as identified by and relevant t the lcal area business cmmunity (emplyer) needs thrughut the Tri Cunty area, Indentify and grw labr market (jb) pprtunities and supprt business retentin/attractin/expansin pprtunities thrughut the Tri Cunty area, Build upn and ptentially expand partnerships that currently exist fr ecnmic develpment, turism and ther related purpses in the Tri Cunty area, Operate in manner that will result in administrative and peratinal efficiencies, Functin under a sund and experienced administrative structure that is characterized by demnstrated fiscal integrity and perfrmance accuntability and results, Be led and guided by a gvernance structure (a Wrkfrce Develpment Bard and Bard f Freehlder partnership) that perates in a fair, just, equitable and pen manner.