City
of aurora overview and policy recommendation
to:
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Bob
Legare, Mayor
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from:
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Brandon
figliolino, Policy analyst
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subject:
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SNAPSHOT
OF AURORA & Workforce policy recommendation
|
date:
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July
23, 2018
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EXECUTIVE SUMMARY:
In May of 2018,
City of Aurora Mayor Steve Hogan passed away.
In the event of a vacancy, the city charter mandates that city council
appoint a replacement (“Aurora Municipal Code,” 2018). Council members selected Bob LeGare to
complete Hogan’s term, which ends at the end of December 2019 (Mason, 2018).
To facilitate an
easy on-boarding experience, Mayor LeGare has requested a memo detailing the
current state of the city. In addition,
he directed staff to identify a policy initiative he should undertake during
his time in office.
This memo
addresses these two requests. First, it
provides Mayor LeGare with an overview of the city’s governing structure, as
well as the economic and cultural context under which he must govern. Second, it details a workforce initiative
that Mayor LeGare could pursue to help improve the quality of life for Aurora
residents who are currently unemployed or underemployed, while also enticing
new businesses to grow or relocate to the city.
GOVERNMENT:
The City of Aurora
was incorporated in 1891 under the town name of Fletcher (“Visit Aurora,”
2018). Like most municipal governments
in Colorado, except Denver and Colorado Springs, the city follows a
council-manager form of government (Illescas, 2014). Under this model, city council selects a city
manager, who is charged with running daily operations. The city manager also oversees policy
implementation.
Policy direction
comes from the Aurora City Council and the Mayor of Aurora. Composed of ten members, six council members
represent specific wards, and four represent the city at-large (“Aurora
Municipal Code,” 2018). Positions on the
council are part-time and include participation on various council policy
committees and intergovernmental boards. Council members have the power to vote
on ordinances, budgets, contracts, and development projects. Per the city charter, council members, and
the mayor, can serve up to three consecutive four-year terms. In the fall of 2018, there are no council
seats up for election.
While city council
races are non-partisan, there has traditionally been a conservative slant to
the council (Sherry, 2017). The
political makeup of the council became more progressive in November of 2017, however,
when three political newcomers were elected into office (Van Denburg,
2017). This should result in the council
taking on more policies to address homelessness, immigrant issues, and
generally more progressive initiatives (Sherry, 2017).
The mayor presides
over the city council (“Aurora Municipal Code,” 2018). This position with the city is full-time, and
involves being the signatory for legal documents as well as acting as a
representative of the city (“Aurora Municipal Code,” 2018). For Mayor LeGare, his role in policy
implementation is limited by the city charter.
As mayor, he is not allowed to cast a vote on any resolution or
ordinance, except in instances of a tie (“Aurora Municipal Code,” 2018). In the past, there were discussions of moving
the city to a mayoral form of government, which would allow the mayor to manage
all city functions, craft the budget, and implement policy. Because such a move would limit the powers of
the city council, there is little to no support for changing the form of
government presently (Illescas, 2016). Any
policy LeGare wishes to pursue will need to be done with this limitation in
mind.
The City of Aurora
falls within the jurisdiction of three counties, including Adams, Arapahoe, and
Douglas. As such, the city works to
maintain strong relationships with all three to ensure residents are receiving
appropriate county-level services. There
have been attempts to convert the city into a city-county form of government,
like that of Broomfield and Denver.
While former Mayor Hogan approved of the idea, arguing it would allow
the city to better manage their future, there is not much support from council
or the community to take on the financial burden of becoming a county entity
(Illescas, 2014).
City council
believes that “regional cooperation is the key to success,” so city staff and
council also partner with other governmental organizations around the Denver
Metropolitan Area “Intergovernmental Relations,” 2018). These organizations include the Colorado
General Assembly, the Regional Transportation District, local school boards, and
the Denver Regional Council of Governments.
They also work with the local Aurora Chamber of Commerce and the
Colorado Municipal League. These
partnerships have proven to be effective and should continued to be nurtured
moving forward.
POPULATION
DEMOGRAPHICS
Since its
incorporation, Aurora has grown to become the third largest city in
Colorado. As of 2016, the population
grew to over 361,000 people (“Population,” 2016). Following Aurora in size is Fort Collins,
which has a population of less than 165,000 people. Because the city holds a lot of undeveloped
land, the population is expected to continue to rise for the foreseeable future
(Armbrister, 2017).
Aurora is one of
the most diverse cities in Colorado. It
is considered a minority-majority community because 30% of the population is
Hispanic or Latino, 20% was born in a foreign country, 5% of the population is
Asian, and 16% is African American (“Population,” 2016). Since the city’s population is diverse, over
30% of individuals living in Aurora speak a language that is not English. The city has created an Office of
International Affairs and Immigration to ensure minority populations in the
city have the resources necessary to integrate and succeed (“International and
Immigrant Affairs,” 2018). In addition,
the city also has a disabled population of 10%, and a veteran population of 9%
(“Population,” 2016). With the
population being diverse, policies Mayor LeGare might champion, including the
workforce initiative detailed in this memorandum, should be developed in a way
that benefits all populations within the city.
The economic
outlook for Aurora is strong. In 2017,
the city added 2,500 primary jobs (Mendoza, 2018). Major industries in the city include
military, construction, retail trade, education, and healthcare (“Aurora Fact
Sheet,” 2017). The top occupations
include management, business, service, and sales. According to the City Manager’s Office,
Aurora should continue to see strong economic development for the next few
years (“Aurora Budget,” 2018).
While job
opportunities are growing in the city, the educational attainment level of
current residents may limit chances for them to gain higher-paying employment. Well-paying jobs usually require applicants
have more specialized training and advanced skills to perform the functions of
the job (Laboissiere & Mourshed, 2017).
In the city, only 24% of the people age 25 or older have earned a high
school diploma (“Aurora Fact Sheet,” 2017).
That is significantly lower than the state average, which is 91% (“Quick
Facts Colorado,” 2017).
Unemployment in
the city is currently 2.4% (“Aurora Budget,” 2018). This is lower than the national average of 4%
unemployment. However, incomes in the
city are low, when compared to the state and neighboring communities. For example, the average per capita income in
Aurora is $25,115 (“Aurora Fact Sheet,” 2017). This is $8,115 less than the per capita income
for the state overall, and $11,501 less than Denver (“Quick Facts Colorado,”
2017; “Quick Facts Denver,” 2017). Over
15% of the population is living in poverty (“Aurora Fact Sheet,” 2017). This suggests that while most residents in
the city have jobs, these jobs are not high-paying or do not let them live
comfortably.
PROPOSED WORKFORCE
DEVELOPMENT INITIATIVE
After Mayor LeGare
was appointed to his role, he requested city staff examine a potential policy
initiative for him to champion during his tenure in office. Using information from the city demographer,
and the city’s 2018 budget, staff recommend Mayor LeGare promote a workforce
initiative. There are two components to
the initiative. First, the city would
set hiring requirements for city contracts, more typically referred to as a
local-targeted hiring program. Second,
the city would create and manage an online resource for job seekers and
businesses looking to connect with hiring resources in the community. Staff believe that implementing this policy
will improve access and opportunity for residents who are disenfranchised or
struggling, despite the good economy.
Local-Targeted
Hiring Program
More commonly,
cities across the United States are implementing a local-targeted hiring
program. Program types vary, but all
encourage or mandate that developers and contractors working on city projects
hire a certain number of their workers locally or from targeted demographic
groups (Bartleson, 2016; Cantrell & Jain, 2013). In Denver, for example, contractors for major
infrastructure projects are required to hire a certain number of individuals
who will be impacted by the project (Murray, 2018).
There are two
benefits to a local-targeted hiring program.
First, programs have been shown to reduce unemployment (Cantrell &
Jain, 2013). Residents who identify as a
minority or face barriers to economic success benefit the most from these
programs, especially when targets or quotas are set by cities for specific
races or genders. Second, local-targeted
hiring programs also improve the quality of life for city residents (Gross,
2013). This is achieved by giving
underserved populations better-paying jobs that are usually permanent or
long-term.
A local-targeted
hiring program also aligns with the city’s strategic goal of “creating a
superior quality of life for residents” (“Aurora Budget,” 2018). By expanding good-wage jobs in the community,
residents will be able to live more comfortably. Those who attain jobs through this program
will spend money in the city where they live, creating a positive feedback loop
for the local economy. This program
would enhance the current policy that encourages minority and women-owned
businesses to bid for city contracts by bringing additional disenfranchised
workers into the workforce (“Aurora Municipal Budget,” 2018).
The structure of the program can come in a variety of ways. Some cities, including Denver, mandate certain hiring quotas, while others just encourage hiring locally (Gross, 2013; Murray, 2018). Most effective programs include requirements for contractors to hire a percentage of their workers from a geographic area, or from an underserved population (Gross, 2013). Due to the diverse population of the city, staff recommend requiring city contractors to hire from certain populations within the city, including immigrants, young professionals, individuals with a disability, and veterans.
Ideally, a
full-time equivalent (FTE) employee would be needed to ensure that contractors
are complying. Based on the position
classification for a contract administrative specialist, this FTE would cost
the city around $31,000 per year (“Contract Administration Specialist,”
2018). In the 2018 budget, over a dozen
new FTEs were approved by city council, making it more likely this position
could get approval (“Aurora Budget,” 2018).
If council is not supportive of adding an FTE, an alternative would be
to assign enforcement duties to current contracts staff.
Being a
council-manager form of government poses a challenge for implementing this
policy, as the mayor does not have the legal authority to enact it. Mayor LeGare will need the support of at
least five councilmembers to pass the ordinance. It will also require a public hearing, where
the policy is read and discussed with council, staff, and members of the public
(“Aurora Municipal Code,” 2018). If
passed, Mayor LeGare would be able to review all contracts that require local
or targeted hiring, since he is the signatory for the city. This gives him the ability to watch the
policy over time to determine its effectiveness.
Since it addresses
the needs of the community and would help achieve one of the city’s strategic
goals, staff believe this ordinance of the workforce initiative could gain
approval of the city council. To ensure
successful passage, however, Mayor LeGare should reach out to current and
previous city contractors to gain their support for the policy. Contractors may be weary of a mandate telling
them who they can hire. Educating them
about the policy, and the policy’s intent should reduce skepticism.
Mayor LeGare will
also need the support of more conservative councilmembers, who may dislike the
idea of expanding government or adding additional rules for businesses. They may also fear potential litigation that
has come about in other municipalities that have mandated hiring programs
(Cantrell & Jain, 2013). If the
arguments in support of the ordinance are not enough for those council members
to approve of it, there is an alternative.
Instead of the mandate, Mayor LeGare could suggest council pass an
ordinance encouraging, but not requiring, the hiring of local and targeted
individuals. This would not negatively
impact contractors with a rule, and the city would not need to pay staff to
enforce it. The threat of litigation
would also go away. Results from
voluntary hiring programs, however, are much less promising than those which
contain mandates (Gross, 2013).
In sum, a
local-targeted hiring program would give residents who are disenfranchised or
underemployed more opportunities to gain meaningful employment. Local employment improves the local economy,
since those who live within the community shop within the community. Mayor LeGare will need the support of council
and contractors to pass this part of the workforce initiative.
Workforce Resources
Website
To remain
competitive in the global economy, cities need to retain a skilled workforce
(Kantor & Judd, 2015; Judd & Swanstrom, 2016; Seeger, 2010). Yet, studies indicate that across the
country, there is a skills-gap between what businesses need and what skills participants
of the workforce have (Gross, 2013).
Thus, municipalities across the country are restructuring to include
more workforce economic development into the services they offer residents
(Seeger, 2010). In Colorado, several
governmental organizations, including Denver, the Regional Transportation
District, and the Colorado Department of Transportation, are working with local
non-profit partners and counties to provide job training for their constituents
and future employees (Murray, 2018). In
some localities, including Detroit, companies are paying cities to enhance
their workforce services, too (Clifford, 2018).
Workforce programs
that offer skills training require personnel and monetary resources, which is
not a viable option for the City of Aurora now.
While the city has a small business development office, it does not have
the capacity to greatly expand services (“Aurora Budget,” 2018). The Aurora City Manager’s Office also
cautions against heavy spending, in the case that the economy begins to slow.
City staff offer
Mayor LeGare an alternative to that traditional workforce development
model. While conducting research on
workforce programs, staff found an innovative program out of Colorado Springs.
Called the Workforce Asset Map (WAM), the interactive website connects
students, job seekers, and employers with a variety of partners who specialize
in workforce development. The objective
of the program is to “organize workforce information in a user-friendly” format
(Grossman, 2017; “The Workforce Dream Team,” 2018). For example, students can learn about job
tracks, employers can discover best practices for hiring and retention, and job
seekers can find low-cost or free technical skills-based classes and resume
workshops.
The benefits to
the workforce resources website are plentiful.
First, this type of program is all-inclusive. It provides resources for anyone interested
in employment, regardless of their demographic traits or their
competencies. This would help the
program better serve residents of Aurora by pairing them with organizations
that can provide them the skills necessary to advance their careers.
The program would
also touch several visions and goals of the city. One strategic vision of city council is to
“encourage a high-quality and high-wage economic environment” (“Aurora Budget,”
2018). This program achieves that by
developing the local workforce that can perform the jobs of the future. By developing a skilled workforce, the
program also achieves the city council strategic goal of making the city a
“great place to locate, expand, and operate a business.” Lastly, through the collaborative element of
the program, it helps Aurora continue “serving as a leader and partner with
other governments” and organizations.
The workforce
resources website would be like that of WAM.
It would utilize the expertise of governmental, business, higher
education, and non-profit partners to advance the skills of residents. While WAM focuses on students, job seekers,
and businesses, Aurora could expand the categories to include veterans,
English-as-a-Second-Language (ESL) learners, and individuals who have a
disability. The site could also act as a
jobs boards, giving residents and businesses another way to interact with one
another.
The workforce
resources website also pairs well with the local-targeted hiring policy. If the labor market in the city is not
equipped to do the jobs necessary of contractors, the policy will fail (Gross,
2013). Adopting the workforce resources
website in tandem with the local-targeted hiring policy would ensure that
workers within the city have the skills that contractors need.
By partnering with
other organizations, this program is cost-efficient. Unlike an in-house program, which would
require a new office of specialized FTE staff to facilitate skills-based
workshops and trainings, this program would only require one FTE to manage the
website and build relationships with community partners. This FTE position could fall under the community
networker classification, which would amount to $43,000 per year (“Community
Networker,” 2018). Starting the program
will require initial investment in time and website creation. Once the program is running, however, there
will be minimal upkeep costs.
Like the
local-targeted hiring program, the workforce resources website cannot be
implemented solely by Mayor LeGare. In
addition to the council’s support—through the passage of the policy in a public
hearing—the mayor will need to forge strong relationships with businesses,
other governmental entities, partners in higher education, and
non-profits. While he cannot manage this
program, he can facilitate the relationships with external partners. The website will be maintained by the city,
but partners will be relied upon to provide the services and content. Mayor LeGare will need their support to make
the resources on the website robust and meaningful. Without the willingness of external partners
to participate, the value of the website will be diminished.
Council should
support the adoption of the workforce resources website, due to the fact it
aligns with many strategic goals and is a cost-effective solution to employment
issues in the city. However, if there is
resistance based on funding, the city could reduce costs by applying for
federal or state grants. This would
ensure that this portion of the workforce initiative does not come out of the
general fund, or from another department’s budget. Grant money, however, is allocated for a
certain period, so if the council goes this route, funding to sustain the FTE
and website upkeep will need to be identified in the future.
In summary, the
workforce resources website program positively impacts several city council
strategic goals and vision for economic prosperity in the community. It offers a low-cost way to both attract
businesses and improve the skills of the local workforce. While the monetary cost of the program is
small, the time needed to build and sustain working relationships with
businesses, non-profits, and other governments will be large and require
maintenance over time.
CONCLUSION:
The City of Aurora
is experiencing an economic boom (“Aurora Budget,” 2018). However, to maintain that momentum and ensure
that individuals within the community who are experiencing hardships are
afforded equal opportunity, more needs to be done. With the recent appointment of Bob LeGare to
the role of Mayor of Aurora, this is the ideal time to implement a workforce
development initiative.
The demographic
information presented in this memorandum illustrate the need for a program that
encourages businesses to hire locally and provides companies with a skilled
workforce. The workforce development
initiative achieves both goals. By
requiring city contractors to hire individuals from specific demographic
populations, the city will improve the quality of life for those less
fortunate. The workforce resources
website will connect all residents interested in enhancing their knowledge,
skills, and abilities, in a low cost, high-impact way.
Mayor LeGare will
not be able to pass this initiative alone.
He will need to continue the legacy of his predecessor Steve Hogan by
developing and maintaining strong relationships with city council, community
members, businesses, and other organizations.
The role of the mayor is one that requires constant collaboration, with
limited authority. Mayor LeGare must be
willing to work with others to pass any policy, including the one proposed in
this memo.
Based on the
findings of fact presented in this memorandum, city staff recommend that Mayor
LeGare pursue the workforce development initiative.
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