Item 12: Employment and Training Opportunities

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COSM_Admin

Administrator
Staff member
Consider approval of Resolution 2022-41R, approving a Section 3 local opportunity plan for CDBG Funded Grant Projects for the purpose of increasing employment and training opportunities for low and very low-income persons; and declaring an effective date.
 

JHughson

CoSM Members
I see "Regulations have recently changed dramatically, necessitating a complete revision of the City’s Section 3 Plan."
I don't see changes marked in the document. If the changes are so many that a redline isn't feasible, please provide a summary of what those changes are, if anything, in addition to the statements "For those projects, employment and training opportunities must to the extent feasible be provided to low and very low-income workers. Contractors must also make an effort to contract with businesses that have registered with HUD as qualified Section 3 Businesses (which employ low and very low-income workers, for example)."

Will this apply to any and all who are funded via CDBG funds? For example, if we fund playground equipment, must the company from which we purchase the equipment have to comply with the above?
What about engineering and construction companies we use for the flood mitigation projects?
I see there a section about "do not apply to" at the bottom of page 5, but I'm not sure about those.

When is this effective?
Does it apply retroactively to those currently working on CDBG funded projects?
I realize that some may already qualify once this is reviewed.

Does this apply to city staff who work on CDBG projects?

Do we have a feel for how limiting this may be to the number of bids/applicants for CDBG projects?

I see "Advertise contracting opportunities in the San Marcos Daily Record with notices that provide general information about the work to be contracted and where to obtain additional information. " - what about our website and social media? Contractors need to know and so do potential employees.
 

COSM_Admin

Administrator
Staff member
Response provided by Amanda Hernandez, Assistant Director of Planning:
I see "Regulations have recently changed dramatically, necessitating a complete revision of the City’s Section 3 Plan."
I don't see changes marked in the document. If the changes are so many that a redline isn't feasible, please provide a summary of what those changes are, if anything, in addition to the statements "For those projects, employment and training opportunities must to the extent feasible be provided to low and very low-income workers. Contractors must also make an effort to contract with businesses that have registered with HUD as qualified Section 3 Businesses (which employ low and very low-income workers, for example)."

The regulations changed to the extent HUD provided a new template and we started over using that template.

Some of the changes for example are counting hours worked (new) instead of people hired (old), changing the definition of Section 3 worker and Section 3 Business, and adding a new category called “Targeted Section 3 Worker (which is someone who lives near the jobsite).


Will this apply to any and all who are funded via CDBG funds? For example, if we fund playground equipment, must the company from which we purchase the equipment have to comply with the above?
What about engineering and construction companies we use for the flood mitigation projects?
I see there a section about "do not apply to" at the bottom of page 5, but I'm not sure about those.

This only applies to projects that receive more than $200,000 in CDBG funds. It applies to the CDBG-DR and CDBG-MIT infrastructure projects plus the Centro rehabilitation project.

When is this effective? Any project that receives more than $200,000 in CDBG funds and is bid after November 30, 2020. The CDBG-DR Uhland Road project is grandfathered under the old Section 3 rules. All other CDBG-DR and CDBG-MIT infrastructure projects and the Centro project will be under the new rule.
Does it apply retroactively to those currently working on CDBG funded projects? No; the projects already under way are grandfathered; they are under the old Section 3 rules.
I realize that some may already qualify once this is reviewed.

Does this apply to city staff who work on CDBG projects? No; The regulations only apply to people who are newly hired by a contractor.

Do we have a feel for how limiting this may be to the number of bids/applicants for CDBG projects? There should not be a significant change. Contractors who are used to working on federal projects will just have to add a few more steps and they are already used to extra steps so this should not detract bidders.

I see "Advertise contracting opportunities in the San Marcos Daily Record with notices that provide general information about the work to be contracted and where to obtain additional information. " - what about our website and social media? Contractors need to know and so do potential employees. Section 6(A)3 of the Section 3 Plan (above Section 6(B)5 quoted here) refers to the use of the City’s website and social media. The City staff person designated as Section 3 Coordinator (Sylvia Ruiz) is responsible for using the City’s website and social media to broadcast opportunities.
 
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