Title
Summary Title: Receipt of and Authority to Access Unemployment Information from the State of California
Adoption of Resolution Authorizing the Community Development Department, Economic Development Division, to Receive and Analyze Quarterly Census of Employment and Wages Data for the City of Alameda Obtained from the California State Employment Development Department for Economic Development Purposes and Authorizing the City Manager or his Designee to Negotiate and Execute all Necessary Agreements with the California State Employment Development Department. (Community Development 6720)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Recommendation to Adopt a Resolution Authorizing the Community Development Department, Economic Development Division, to receive and analyze Quarterly Census of Employment and Wages data for the City of Alameda obtained from the California State Employment Development Department for Economic Development purposes and authorizing the City Manager or his Designee to negotiate and execute all necessary agreements with the California State Employment Development Department.
BACKGROUND
The State of California's Employment Development Department (EDD), through a Federal-State cooperative program known as Quarterly Census of Employment and Wages (QCEW) program, collects information from all employers each quarter on their employment and wages. Information about a specific employer is considered confidential and cannot be released to the general public.
By law, the EDD's Labor Market Information Division (LMID) may provide the confidential information to government agencies for economic development purposes. The EDD's process to acquire confidential wage and employment information for Alameda-based firms requires that the City of Alameda (City) enter into a standard Memorandum of Understanding (MOU) with the EDD.
DISCUSSION
An accurate list of all businesses with employees in the City of Alameda, including the number of employees, wages, and the type of business, is an important tool for the City's business retention and attraction programs. In past years, the City has periodically acquired business databases from private vendors. The City has found that these databases were not comprehensive and reliable because the vendors either use data compiled from multiple sources with varying degrees of accuracy, or make inaccurate employment forecasts.
The City has identified the QCEW program as the most complete and accurate source of company data by industry and employment. The City verified its quality with other municipalities, such as the cities of San Jose and Oceanside, which subscribe to QCEW data.
The EDD requires the following conditions for public agencies to gain access to its QCEW data:
1) Proof of the agency's statutory authorization to analyze confidential EDD data for economic development purposes and to enter into a three-year MOU with the EDD;
2) An executed MOU between the City and the EDD; and
3) A one-time processing payment of $650 for the MOU and a quarterly payment of $100 for access to the database.
Adoption of the attached resolution by the City Council will provide the necessary authorization for the City to negotiate and enter into a standard MOU with the EDD for the above stated purposes. Upon execution of the MOU with the EDD, the City will be able to access Alameda-specific industry and employment data that will be used for the City's business attraction and retention programs.
FINANCIAL IMPACT
There is no impact on the General Fund to execute an MOU between the City and the EDD. The three-year MOU has a total cost of $1,850, to be paid from Commercial Revitalization Fund (Fund No. 227) using existing appropriations.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Economic Development Strategic Plan (2000; revised in 2008):
ยท Strategy No. 1 - Create Industrial and Office Jobs-- create primary jobs through "clean", light-industrial and office business attraction and expansion, including targeted marketing of business sectors and strategic employer visitation program.
ENVIRONMENTAL REVIEW
Adoption of this resolution is not a project under the California Environmental Quality Act in that it relates to administrative activities of the City that will not result in direct or indirect physical impacts on the environment and hence, no environmental review is required.
RECOMMENDATION
Adopt a resolution authorizing the Community Development Department, Economic Development Division, to analyze quarterly census of employment and wages data for the City of Alameda obtained from the California State Employment Development Department for economic development purposes and authorizing the City Manager or his designee to negotiate and execute all necessary agreements with the California State Employment Development Department.
Respectfully submitted,
Debbie Potter, Community Development Director
By:
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Elena Adair, Finance Director