CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: March 1, 2021 Action Required: Appropriation of Grant Funds Presenter: Hollie Lee, Chief of Workforce Development Strategies Staff Contacts: Hollie Lee, Chief of Workforce Development Strategies Title: Virginia Transit Association (V.T.A.) Free Transit Fare for Working Families Grant – $180,750 Background: In August 2020, the City of Charlottesville, through the Office of Economic Development (O.E.D.), received an award from the Virginia Transit Association (V.T.A.) in the amount of $180,750 for the Free Transit Fare for Working Families Grant Program. The funding will be used to provide transportation for employment purposes to Temporary Assistance for Needy Families (T.A.N.F.) eligible persons and/or individuals with a dependent child whose income is at or below 200% of the federal poverty level from July 1, 2020 and June 30, 2021. Transportation will be provided in the form of bus rides through Charlottesville Area Transit (C.A.T.) and/or on-demand transportation provided by Jaunt, Inc. (Please note that C.A.T. is currently not charging for bus passes, so it is anticipated that most of the funding will go towards on- demand transportation.) Transportation for employment purposes include, but are not limited to: interviews, job search, employment, training, and childcare for dependent children. The entire Charlottesville region is covered by the grant, including: the City of Charlottesville and Albemarle, Buckingham, Fluvanna, Greene, Louisa, and Nelson counties. The Downtown Job Center, which will administer the program, will document and verify T.A.N.F. and income eligibility with the assistance of C.D.S.S. Quarterly status reports will be submitted to V.T.A. and Virginia’s Department of Social Services, and full and accurate project records will be maintained for the duration of the grant program. This grant will be executed in partnership with the Charlottesville Department of Social Services (C.D.S.S.), Network2Work @ Piedmont Virginia Community College, and Jaunt, Inc. There have also been letters of support from multiple employer partners outside of existing City bus lines, including the Walmart Distribution Center, Crutchfield Corporation, and the Thomas Jefferson Foundation (Monticello and the Distribution Center at Ivy). The V.T.A. grant does not require a local match. All funding is designated for direct transportation services for clients. Discussion: In July 2013, the City’s Strategic Action Team on Workforce Development (SAT) issued a report to City Council entitled, Growing Opportunity: A Path to Self-Sufficiency. The report, which was subsequently endorsed by Council, examines the barriers to employment for low-income City residents and makes recommendations on how to address these barriers. One of these barriers includes transportation and the impact it has on residents being able to get to and from work and mid-skilled jobs that pay a self-sufficient wage. The O.E.D. has attempted to mitigate the increasing inaccessibility to appropriate employment opportunities by developing and executing programs through partnerships with other public and private sector agencies. One such initiative is the GO Ride program wherein individuals in an active job search or starting at a new job are eligible for short term free bussing through C.A.T. Bus passes are available for City residents who can provide proof of residence and actively work with Downtown Job Center staff to meet their employment needs. The program is for those who rely on public transportation to commute and cannot afford to purchase passes or have had circumstances that make commuting to work difficult. Those who are in an active job search and work with staff to submit applications, prepare resumes and other employment-centric tasks are eligible for a 7-day pass, with the idea that it will help with getting people to and from appointments, interviews, and in dropping off completed applications. Anyone who has recently found employment is eligible for one 30-day pass, with the idea being acute transportation needs can be addressed during that period as the person starts earning income. In support of a new on-demand transportation service and an expansion of OED's existing GO Ride program, the V.T.A. grant funding will allow City residents without reliable transportation the opportunity to obtain employment with employers located beyond the City bus lines in outlying counties. Alignment with Council Vision Areas and Strategic Plan: This effort supports City Council’s “Economic Sustainability” vision and aligns directly with the SAT’s Growing Opportunity report that was approved by City Council in 2013. It also contributes to the following goals and objectives in the City’s Strategic Plan: Goal 4: A Strong, Creative and Diversified Economy • Objective 4.1: Develop a quality workforce Goal 1: An Inclusive Community of Self-sufficient Residents • Objective 1.2: Prepare residents for the workforce It aligns with Chapter 3 on Economic Sustainability in the Comprehensive Plan, and more specifically Goal 6, which focuses on workforce development and being an effective partner in creating a well‐prepared and successful workforce. Community Engagement: Like practically all of the City’s workforce development efforts, the GO Ride on-demand transportation program is supported by numerous community agencies and organizations. This includes: the City of Charlottesville Department of Social Services (C.D.S.S.), Network2Work @ Piedmont Virginia Community College, and Jaunt, Inc. There have also been letters of support from multiple employer partners outside of existing City bus lines, including the Walmart Distribution Center, Crutchfield Corporation, and the Thomas Jefferson Foundation (Monticello and the Distribution Center at Ivy). Budgetary Impact: There is no budget impact for the City of Charlottesville as no local match is required. This grant will be entirely State, and Federal pass-through funds. Recommendation: Staff recommends approval and appropriation of grant funds. Alternatives: If grant funds are not appropriated, City residents without access to reliable transportation will not have access to potential job opportunities beyond City bus lines. Attachments: • V.T.A. Free Fare Grant Proposal • V.T.A. Free Fare Grant Agreement – Fully Executed APPROPRIATION Virginia Transit Association (V.T.A) Free Transit Fare for Working Families Grant $180,750 WHEREAS, the City of Charlottesville has received grant funds from the Virginia Transit Association in the amount of $180,750; and WHEREAS, the funds will be administered by the Office of Economic Development through the Downtown Job Center and used to support transportation for program participants for employment purposes; and WHEREAS, the grant award covers the period from July 1, 2020 and June 30, 2021; NOW, THEREFORE BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that the sum of $180,750 is hereby appropriated in the following manner: Revenue – $180,750 $180,750 Fund: 210 IO: 1900392 G/L: 430120 State/Fed pass thru Expenditures - $180,750 $180,750 Fund: 210 IO: 1900392 G/L: 599999 Lump Sum BE IT FURTHER RESOLVED, that this appropriation is conditioned upon the receipt of $180,750 from the Virginia Transit Association. Free Transit Fare for Working Families Program Grant Application Form Application Instructions Applications for the Free Transit Fare for Working Families (Free Transit Fare) grant program will be accepted from June 22 to July 10, 2020. To apply, please complete the following application form in its entirety and enclose the following supplemental supporting documents: a) Cover letter on organizational letterhead certifying the proposed project and outcome reporting can commence in September 2020. b) Letter of support from the identified transit service provider(s) acknowledging the proposed project and certifying that ridership data can be provided as described. c) Project budget form completed utilizing the template provided. The application narrative is limited to the space provided in Section C. Application Form A. Sub-Recipient Information Sub-Recipient Name: City of Charlottesville Office of Economic Development Entity Type: Municipality ✔ Other If “other”, please describe: Nonprofit Transit Provider Point of Contact: Name: Hollie Lee Title: Chief of Workforce Development Strategies Phone: 434-970-3117 E-mail: leeh@charlottesville.gov Address: 610 E. Market St. Charlottesville, VA 22902 Page 1 of 8 TANF Free Transit Fare Program B. Project Information Project Title: GO Ride Expansion and Regional On-Demand Transit Coalition Total Project Cost: Transit Passes: $ 30,000 (based on completed On Demand Bus Trips: $ 150,750 project budget form) Public Vanpools: $0 Ridership Tracking (if applicable): $0 Miscellaneous Program Expenses: $0 Administrative Expenses $0 Total Project Cost: $ 180,750 (This is your grant request) Number of TANF Persons to be Served Monthly from September 2020-June 2021: 97 Number of TANF Persons to be Served from September 2020-June 2021: (unduplicated) 149 Description of Primary Charlottesville City, Albemarle County, Fluvanna County, Louisa County Service Area: (counties/cities of TANF eligible persons) Transit Agency(ies): Charlottesville Area Transit (CAT) and JAUNT, Inc. Proposed Transit Service to be Provided: Fixed Route Bus: ✔ (check all that apply) On Demand Bus: ✔ Public Vanpool: Other: Anticipated Primary From the urban ring of the City of Charlottesville to employer partner locations in Albemarle, Fluvanna and Louisa Counties and returning to the Destinations: Charlottesville urban ring. Page 2 of 8 TANF Free Transit Fare Program C. Project Narrative 1. Project Description Please provide an overview of the proposed project and the transit services to be funded with Free Transit Fare program funds. Please detail the project overview, purpose and need, and project approach. The City of Charlottesville Office of Economic Development (OED) plans to utilize grant funds in two phases. The first is to expand the existing GO Ride program to further benefit job seekers and those recently employed. While the current program allows for one 30-day pass per client, transportation needs are often more complicated and farther-reaching. Participants will now be eligible for up to three, 30-days passes while currently employed and working with the OED's Downtown Job Center (DJC) or Home to Hope staff to address those more persistent barriers. Extrapolating from current usage of bus passes, the City has invested $8,382 since the beginning of FY2019. An expansion of this program through OED and Network2Work @ PVCC would result in program expenditures of $30,000 over the ten-month grant period from September 2020 through June 2021. The second initiative undertaken with grant funding will be a new offering of on-demand transportation service through City partner JAUNT, Inc. This service will be made available to workers and employer partners to facilitate rides to and from employment locations beyond the existing limits of City transit. This will positively impact the ability of job seekers to find appropriate employment based on their skill level and drive more applicants to fill open positions with employers who struggle with recruitment and retention. At this time, JAUNT provides paratransit service to City residents with disabilities who are unable to use the local fixed route system through a sub-recipient arrangement with CAT and the City of Charlottesville. Due to this arrangement, JAUNT can only provide ADA services within the City of Charlottesville and not on-demand services. City residents who are not disabled are not currently eligible for on-demand services. These individuals must rely on CAT’s fixed routes (limited geographic locations and route frequencies) and private transportation (e.g., taxi cabs, Uber, Lyft, etc.), which is often too costly for low-income City residents. With this grant funding however, JAUNT will be able to offer on-demand service to anyone (including non-disabled City residents) who need it, thus opening up the opportunity for more direct route transportation to employment. In support of a new on-demand transportation service and an expansion of OED's existing GO Ride program, grant funding will also be utilized to support TANF and TANF-eligible families in transporting dependents to and from childcare. Access to affordable childcare is a significant barrier for working families. According to the 2017 Childcare Aware of America Report, more than 60% of children under age 6 have two parents in the workforce. Working parents need safe and affordable child care options to earn a steady income and increase future earning potential. Childcare deficiencies lead to absenteeism and decreased productivity in the workplace, costing companies and ultimately the consumer money. In the Charlottesville region today, over 12,000 families (19%), do not earn enough income to meet their basic needs, including costs associated with working like childcare and transportation. These families are disproportionately minority, with 39% of black families making less than $35,000, compared to just 16% of white families. There is a substantial disconnect in Charlottesville between low-income residents receiving or eligible to receive TANF and accessibility to employment opportunities. The economy of the City itself revolves around the service industry (restaurants, retail and hospitality) and the City’s anchor institutions – the University of Virginia and the University of Virginia Health System. This has led to a dearth of manufacturing and production jobs in areas serviced by local transit. In their treatise on causes of inner-city poverty, Teitz and Chapple identify “structural economic shifts that have eroded the competitive position of the central cities in the industrial sectors that historically provided employment Page 3 of for the 8 working poor, especially minorities.” (1998) This hypothesis reaches the conclusion that modern urban communities emphasize a more educated labor force over blue-collar and entry level workers, a phenomenon borne out in Charlottesville. The end result is a concentrated workforce with less access to consistently reliable forms of transportation in a community where the most appropriate career opportunities lie beyond the reach of this workforce. TANF Free Transit Fare Program 2. Accessibility and Mobility Benefits Please discuss the existing mobility challenges that the TANF eligible persons to be served by this project have and discuss how the proposed project will improve access to employment and/or job training. For the purpose of this proposal, the OED conducted a survey of stakeholders to gauge attitudes regarding the capacity of fixed route public transportation in Charlottesville to access employment and assess interest in alternatives such as on-demand service. A total of 80 surveys were returned with the following statistics: • 54% indicate Charlottesville Area Transit meets their current transportation needs • 66% say the frequency of buses is either inconvenient or somewhat inconvenient • 30% specify that CAT does not go to their place of employment or if buses do reach their employer, it is not often enough to be convenient • 33% say they don't apply for jobs outside of transit range • 34% have turned down jobs outside transit borders • 88% would be interested in on-demand services Polling of Charlottesville and Albemarle County residents in regard to attitudes toward existing transportation options revealed that 42% of job seekers do not look for work outside of existing transit service and one in three have turned down jobs because it was not on the bus line. Given these percentages, and the percentage of job seekers served at the Downtown Job Center and Network2Work who have expressed similar barriers, it is estimated that roughly half of all job seekers serviced would benefit from having the option to seek work beyond current transit limits. Frequent employer partners often face critical staff shortages stemming in part from inaccessibility of available workforce. Examples of such employers include: Walmart Distribution Center, AG Dillard, Crutchfield Corporation, Farmington Country Club, Boar's Head Resort, and Monticello. Attached to this application are letters of support from multiple employer partners, as well as the Directors of Charlottesville Area Transit and JAUNT, Inc. and Louisa County's Economic Development Director. In fact, Louisa County has approached the City over the past five years for assistance with solving recruitment issues experienced by its largest area employer, Walmart Distribution Center, that are caused by a lack of transportation to and from the area. With greater accessibility to employers beyond current transportation limits, the OED would seek to expand its GO programs in partnership with other regional employers, similar to GO Tech. New potential GO programs exist within the production sector with Tri-Dim Filter Corp, Klockner-Pentaplast, and Walmart Distribution Center (Louisa County), construction with A.G. Dillard (Fluvanna County), and within the service industry at Boar's Head Resort and Farmington Country Club (Albemarle County). Given funding, four new GO programs could be offered with between six and eight students in each class. Based on historical data, approximately 75% of those participants would benefit from on-demand transit service to these employer partners. In addition to targeted workforce training, more accessibility would allow for specific recruitment events for employer partners now within OED's scope of service. An example would be Monticello's gift shop distribution center. They have expressed a need for 10 or more employees to work through the 2020 holiday season. On-demand transit would allow OED to fill this need for Monticello and the need for workers to get back and forth to the job site. Barbara Hutchinson, vice president of community impact with Charlottesville’s United Way, estimates childcare for infants at $13,500 annually and $11,000 for toddlers and preschoolers. For TANF recipients, this represents a considerable challenge to self-sufficiency. Many families rely on relatives or friends to overcome this obstacle. Any pressure relieved by assisting in child transportation will greatly benefit this constituency. JAUNT estimates for on-demand service are $13 per day to employers in and around Charlottesville and $17.50 per day for outer areas such as Louisa and Fluvanna Counties. It is anticipated that approximately half of the recipients of this on-demand service will utilize Page 4 of 8childcare transportation. TANF Free Transit Fare Program 3. TANF Eligibility Reporting Please describe the subrecipient’s existing programming for TANF eligible persons and the ability to identify, assist, and track TANF eligible persons for purposes of this grant. As an agency of the City of Charlottesville, the Office of Economic Development works closely with the Charlottesville Department of Social Services to provide workforce development/employment services to TANF participants and many other active clients who are TANF eligible. Attached to this application is a letter of support from CDSS for this initiative. Additionally, the OED is the subrecipient of three TANF employment grants from the Virginia Department of Social Services totaling approximately $260,000. Our partner in this grant submission, Network2Work @ Piedmont Virginia Community College, brings together three key networks: employers, social service organizations, and a creative system of job seeker recruitment. Its Job Seeker Network uses a political style ground game of over 250 well-connected individuals in low-income neighborhoods to recruit jobseekers, many of whom would not otherwise find family-sustaining employment. These connectors use a custom built, award-winning software on their smartphones to inject job and resource information directly into struggling neighborhoods. Network2Work then collaborates with the over 34 service providers in its Resource Network to make sure job seekers have the training and supports they need (e.g., childcare and transportation), to secure and excel in the jobs they seek. Network2Work will use its technology platform to recruit TANF-eligible job-seekers, and then will match those job-seekers to the bus passes and on-demand transit services they need in order to get to training and work. 4. 2014, In Outcome the OEDReporting began an innovative program to address directed training for the workforce needs of Charlottesville Estimate projectemployers. area outcomes as The Growing defined Opportunities in Section 3-C of (GO) programguidelines the program has established a pattern and describe the of success in a variety of economic and workforce development programs implemented since its subrecipient’s inception, proposedprogram with the flagship approach to track being GO and report Driver project (which trainsoutcomes. low-income City residents to become Required bus drivers for CAT). Over the past six years, the OED has conducted 29 GO training programs using Housing and and The number Urban Development amount of transit(HUD) federal income fare provided thresholds (e.g., number as a mainvalue); and monetary criteria for participation in the programs. To date, there have been 202 graduates from GO programs, with a  The number of persons served; and better than 90% employment placement rate upon successful completion of the program. Those enrolled in GO programs The typealso of service provided have access (e.g.,Ride to GO fixed route bus vs onduring passes demand). the training process and during theDesired initial phase of their employment post-graduation.  Ridership data to include boardings and qualitative information regarding Through the many successes of GO workforce development training, there have also been challenges. One of the more destinations; and ambitious programs was in partnership with Crutchfield to train individuals to work in their call center as Whether technicalindividuals are using the support specialists. provided This program transit service to travel was christened to employment GO Tech. The training aspect of GO Tech was a considerable success, but locations, job training programs, or both. issues arose when graduates began to be placed into employment. The Crutchfield Corporate office is located north of Charlottesville near the Regional If there Airport, is a strategic approximately 10partnership miles north with of theone or more farthest bustransit organizations, line. Of please describe. the five graduates, only one was able Subrecipients are encouraged to be specific with how outcome data and to consistently make it to work based on their transportation issues. One dedicated participantridership will be tracked. worked with the DJC to take the bus line to its terminus and then take a cab from that point to get to work. Unfortunately, this arrangement did not work out long term and the individual had to leave the job. This The drove Free the Transit point homeFarethat for Working Families Charlottesville Granttowill needed have staff seriously dedicated reimagine to tracking processes and reporting to help employees on all data to be related to the successfully execution placed of grant in positions programming. outside City limitsThis and will include employer to expand total numbers served for partnerships to both the GO place reliably Ride and on-demand job seekers whotransit initiatives. As can consistently these attend workprograms on time.are strictly employment based, we will be able to continue the OED's practice of capturing jobs obtained for the GO Ride program and account In Novemberfor total numbers 2019, the DJC of trips used via integrated on-demand an intensive peertransit. support program for individuals returning to Charlottesville after release from incarceration. The Home to Hope program provides intensive case The estimatesservices management for the required and assistsreporting parameters participants are as follows: in overcoming those barriers that are consistent with effective reentry. To this end, Home to Hope also utilizes the GO Ride bus pass system so that Each 30-day navigating bus pass services, through Charlottesville appointments and employmentArea Transit needs are hasmitigated a $22 value. The OED and as obstacles. All of the Network2Work participants in the anticipate Home to serving 93 total clients Hope program through this are low-income program (well below based 50% Areaoff ofMedian historical usage Income with (AMI).290 bus passes in total distributed. On-demand estimates include 30 monthly clients for Page 5 of 8 Network2Work's service to and from Louisa County, with 10 children transported to childcare. The OED's estimates are 6 job seekers and 2 children monthly to and from Louisa County. Further, the OED will serve clients to Fluvanna and outer Albemarle Counties at estimates of 6 adults and 2 children for the Fluvanna market and 15 adults and 6 children for Albemarle, respectively. In total, our partnership expects to serve 97 TANF or TANF eligible clients per month for the duration of the grant, TANF Free Transit Fare Program Page 6 of 8 TANF Free Transit Fare Program 5. Start-up Capacity Given the compressed performance period for the Fiscal Year 2020-2021 program, describe how quickly the project can begin after the anticipated September 15, 2020 notice to proceed. The blueprint for initiatives to offer on-demand transportation service and expand existing support service for those inside transit limits has existed for years. This grant opportunity allows for OED and its partner network to fully realize and execute this blueprint for the benefit of the entire economic community in Central Virginia. Given funding, these two programs will be deliverable in full by the date of the notice to proceed with full backing from community infrastructure, governmental and employer partners. Processes are already in place to offer the services. The bus pass program is an expansion of the GO Ride program, so it’s a matter of purchasing more bus passes than usual. Jaunt is already offering on-demand service for City residents with disabilities and individuals in other counties. They already have the vehicles, equipment, scheduling software, and staff in place. For this project, the City of Charlottesville will just be expanding the services to provide on-demand transportation to all City residents beyond the bus line and expanding beyond Jaunt’s typical boundaries (mainly to Louisa County). 6. Project Cost Please describe the grant request and the estimated project costs as outline in the budget form once completed. The OED is seeking $30,000 to expand its existing GO Ride bus pass program in conjunction with partner Network2Work. 30-day bus passes cost $22 each from CAT. Since the beginning of FY2019 the Downtown Job Center has averaged serving 18 job seekers per month with 30-day bus passes. Maintaining that number for the grant period would mean 180 TANF or TANF-eligible job seekers served. Expanding from one 30-day pass to three for each client would result in an expenditure of $11,880. A similar expansion of Network2Work's bus pass program results in expenses of $8,000. We would use further funding toward marketing the program. The OED is seeking $150,750 to initiate an on-demand transit service with partner JAUNT, Inc. This number is derived from the proposed number of TANF and TANF-eligible clients served multiplied by $17.50 fare per hour to Louisa and Fluvanna Counties and $13.00 per hour for Albemarle County. Trips to daycare for children are factored at a slightly lower rate on average due to facilities being closer to in-town. In addition to job seekers, childcare transportation costs are added to the estimate, bringing the final totals to: Network2Work On-Demand service to Louisa County: $58,800 OED On-Demand service to Louisa County: $32,000 OED On-Demand service to Fluvanna County: $32,000 OED On-Demand service to Outer Albemarle County: $27,950 _______________________________________________ Total: $150,750 Page 7 of 8 TANF Free Transit Fare Program Submission Completed applications must be submitted by email to VTA by 4:00 PM on Friday, July 10, 2020. This application form, along with the required supplemental documents, should be emailed to: Lisa Guthrie, Executive Director Virginia Transit Association Email: TANFgrant@vatransit.com Page 8 of 8