Information about http://www.etp.ca.gov/docs/minutes/minutes092006.pdf
STATE OF CALIFORNIA EMPLOYMENT TRAINING PANEL MEETING …
Tags: burbank airport, burbank ca, california employment training, carrillo, chairperson, executive staff, freeman, general counsel, giroux, hilton burbank airport, janice, maureen reilly, member executive, north hollywood, panel members, rendon, roll call, st john, state of california, vice chair,Pages: 18
Language: english
Created: Tue Oct 17 14:26:05 2006
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STATE OF CALIFORNIA
EMPLOYMENT TRAINING PANEL MEETING
Hilton Burbank Airport & Convention Center
2500 North Hollywood Way
Burbank, CA 91505
September 22, 2006
PANEL MEMBERS
Barry Broad
Acting Chair
Tyrone Freeman
Member
Bob Giroux
Member
Scott Gordon
Member
Edward Rendon
Member
Janice Roberts
Acting Vice-Chair
Johnathan St. John
Member
Executive Staff
Ada Carrillo
Acting Executive Director
Maureen Reilly
General Counsel
STATE OF CALIFORNIA
EMPLOYMENT TRAINING PANEL MEETING
Hilton Burbank Airport & Convention Center
2500 North Hollywood Way
Burbank, CA 91505
September 22, 2006
I. PUBLIC PANEL MEETING CALL TO ORDER
Barry Broad, Acting Chair, called the public Panel meeting to order at 9:30 a.m.
II. ROLL CALL
Members Present
Barry Broad
Scott Gordon
Edward Rendon
Janice Roberts
Johnathan St. John
Members Absent
Tyrone Freeman
Bob Giroux
Executive Staff Present
Ada Carrillo, Acting Executive Director
Maureen Reilly, General Counsel
III. APPROVAL OF AGENDA
ACTION: Ms. Roberts moved and Mr. Rendon seconded the Panel approve the Agenda.
Motion carried, 5 0.
IV. APPROVAL OF MINUTES
ACTION: Mr. Rendon moved and Ms. Roberts seconded approval of the Panel Minutes
of July 28, 2006.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 1
V. REPORT OF THE CHAIRPERSON/PANEL MEMBERS
There were no reports of the Chairperson/Panel Members.
VI. REPORT OF THE ACTING EXECUTIVE DIRECTOR
Ms. Carrillo said that since the Panel last met on July 28, 2006, Senate Bill 1690, authored
by Romero, has passed through the Legislature and has been forwarded to the Governor for
signature. She said that SB 1690 proposes to allow the Panel to fund the training of
seasonal farm workers with the employment retention period being completed in up to a 12
month period of time. She said a similar bill introduced in the prior year session and was
vetoed by the Governor. On August 23, 2006, the bill was amended on the Assembly Floor,
adding a technical change for EDD to assist them in the calculation of State Disability
Insurance. If signed by the Governor, it will go into effect January 1, 2007.
Request Motion to Delegate in Event of Loss of Quorum
Ms. Carrillo asked for a motion to delegate to the Acting Executive Director the authority to
approve projects for which a quorum does not exist in consultation with the Panel Chair or
Vice Chair.
ACTION: Ms. Roberts moved and Mr. St. John seconded the Panel delegate to the
Acting Executive Director the authority to approve projects for which a
quorum does not exist in consultation with the Panel Chair or Vice Chair.
Motion carried, 5 0.
Consent Calendar Projects
Ms. Carrillo asked for a motion to approve Consent Calendar items #1 through #19 which
represents contracts with no apparent issues of concern. Mr. St. John asked that Tab #15
be removed from the Consent Calendar, as he had some concerns with the project.
Ms. Carrillo asked for a motion to approve Consent Calendar items #1 through #19 with the
exception of Tab #15.
ACTION: Mr. Gordon moved and Mr. Rendon seconded approval of Consent Calendar
Items #1 through #19, with the modification that Tab #15 be removed from
Consent Calendar and discussed separately.
Motion carried, 5 0.
Mr. Broad said Tab #15 would be the first item to be discussed at the beginning of the
review and action on agreements.
Beacon Management, Inc. .............................. $8,712
Brithinee Electric, Inc. ................................... $46,200
Employment Training Panel September 22, 2006 Page 2
Ceilings Plus, A Joint Venture......................... $49,400
Door Components, Inc. ................................. $64,800
El Clasificado .................................................. $20,240
Electronic Interface Inc., dba Applied
Engineering................................................... $160,512
Flight Light, Inc. ............................................ $19,800
General Atomics ........................................... $221,400
Kendall Financial Services................................ $3,344
NDC Infrared Engineering, Inc. ..................... $72,576
Pacific Coachworks, Inc. ............................... $49,920
Quantech Machining Inc. .............................. $10,400
Shaw Diversified Services, Inc. ................... $389,550
The Sedaker Group of Southern California, Inc.,
dba Direct Buy of West Riverside County ....... $49,764
Tyco Thermal Controls LLC ............................ $99,000
University of San Diego Division of
Continuing Education...................................... $78,700
Uptown Studios................................................. $6,240
Vince's Office Supply, Inc. dba The
Office City ..................................................... $131,560
VII. REPORT OF GENERAL COUNSEL
Maureen Reilly, General Counsel, informed the Panel that there was no new activity to
report.
VIII. JACK KYSER, SENIOR VICE PRESIDENT, CHIEF ECONOMIST
Jack Kyser, Senior Vice President & Chief Economist for the Los Angeles Economic
Development Corporation, shared an overview of his mid-year economic forecast for the
Los Angeles region. Mr. Kyser indicated that although there is a slow down in economic
growth as measured by job growth around Southern California, Riverside and San
Bernardino economies are growing rapidly. He said home building is slowing down, but
billions of dollars are being invested in major non-residential construction projects.
Mr. Kyser indicated that Aerospace employment has taken a big hit, Orange County has a
significant presence from the Boeing Corporation, and there is rapid growth in cargo
handling at the ports of Los Angeles/Long Beach. He pointed to many lay offs in the
motion picture and TV production industry and stated that the hotel industry is doing
extremely well in Southern California. Mr. Kyser highlighted significant economic issues in
Southern California: K-12 school quality; land use issues; demographic shifts in workforce
for industries; and the business voice missing in Los Angeles County.
IX. REVIEW AND ACTION ON AGREEMENTS AND AMENDMENTS
Mr. Broad said Tab #15, a One-Step Agreement for Southern California Painting & Drywall
Industries Apprenticeship Trust would be considered first, which was the item removed
Employment Training Panel September 22, 2006 Page 3
from the Consent Calendar at the request of Mr. St. John. Mr. Broad asked Mr. St. John
about the issue he is raising on the proposal. Mr. St. John was concerned because it is a
pre-apprenticeship program. He said the bulk of training seems logical with the exception
of three components listed under business skills: Teambuilding Skills, Leadership Skills
and Customer Service Skills. Mr. St. John invited comments by Panel members for
clarification of the skills. Mr. Broad encouraged staff discussion. Ms. Carrillo said the pre-
apprenticeship training accepts unemployed workers and some welfare-to-work trainees.
She said that Teambuilding, Leadership and Customer Service skills are basic skills
required for employees to effectively work with other individuals. She said that ETP has
funded these components in previous pre-apprenticeship programs and said they are
reasonable business skills to be included in the contract.
Mr. Rendon said many of these programs identify workers that have multiple barriers and
agrees the curriculum is appropriate in terms of ensuring that there is success in skill sets,
a potential career, retention, and career ladders. Mr. Rendon agreed the three job skills in
question were appropriate.
Mr. Broad said the three skills in question are appropriate as long as staff agrees that the
amount of hours are appropriate for unemployed training programs or especially welfare-to-
work programs where individuals may have very limited experience in the job market.
ACTION: Ms. Roberts moved and Mr. Rendon seconded approval of Consent Calendar
Item #15, with no modifications, for Southern California Painting & Drywall
Industries Apprenticeship Trust, in the amount of $224,172.
Motion carried, 5 0.
Single Employer Contractors
National Semiconductor Corporation
Creighton Chan, Manager of the Foster City Office, presented a One-Step Agreement for
National Semiconductor Corporation (National Semiconductor), in the amount of
$1,998,000. National Semiconductor designs, develops, manufactures and markets a wide
range of semiconductor products, most of which are analog or mixed-signal integrated
circuits. National Semiconductor's products feature audio and operational amplifiers,
interface technologies, data converters, and power management solutions. Applications for
these products include cellular handsets, video displays, and electronics used in medical,
automotive, and test and measurement devices.
Mr. Chan introduced David Kirjassoff, Director.
There were no questions from Panel Members.
ACTION: Ms. Roberts moved and Mr. St. John seconded approval of the One-Step
Agreement for National Semiconductor in the amount of $1,998,000.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 4
Sealy, Inc.
Mr. Chan presented a One-Step Agreement for Sealy, Inc. (Sealy), in the amount of
$324,000. Sealy manufactures and markets a broad range of mattresses and foundations
under the Sealy, Sealy Posturepedic, Stearns & Foster, and Bassett brand names. The
company's customers include sleep shops, furniture and department stores, warehouse
clubs, and mass merchandisers, as well as the hospitality industry.
Mr. Chan introduced Tamlin Ferguson, Western Region Vice President of Operations and
Steve Abbott, Vice President of The IM Group.
There were no questions from Panel Members.
ACTION: Mr. Gordon moved and Mr. Rendon seconded approval of the One-Step
Agreement for Sealy in the amount of $324,000.
Motion carried, 5 0.
Stryker Endoscopy
Mr. Chan presented a One-Step Agreement for Stryker Endoscopy in the amount of
$486,972. Stryker Endoscopy offers a broad range of products used in minimally invasive
surgery in operation room environments. Its products combine voice activation, infrared
technology and high definition capture and display devices creating fully integrated
operating rooms that are used in sports medicine, arthroscopic, and laparoscopic surgical
procedures to treat medical conditions such as osteoarthritis, fracture, back injury, spinal
surgery, and joint replacement.
Mr. Chan introduced Jeff Batuhan, Human Resources Manager and Ben Zimmerman,
Accounting Management.
Ms. Roberts said Mr. Batuhan noted their last contract was successful, but she pointed out
that in the prior contract; there was only a 47 percent reimbursement rate. Mr. Batuhan
said they had many temporary workers trained for which they could not receive
reimbursement. Ms. Roberts asked about the wages that advanced technology trainees
would receive upon completion of training. Mr. Batuhan said it varied, between production
associates earning $20.00 per hour and IT individuals earning $80,000 to $100,000 per
year. Ms. Roberts asked if the employees earning the $12.90 wage received the high-
technology wages. Mr. Batuhan said employees who started at the $12.90 wage were not
receiving the high-technology wages.
ACTION: Mr. Rendon moved and Ms. Roberts seconded approval of the One-Step
Agreement for Stryker Endoscopy in the amount of $486,972.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 5
Progressive Casualty Insurance Company
Ruby Cohen, Manager of the Sacramento Office, presented a One-Step Agreement for
Progressive Casualty Insurance Company (Progressive Casualty), in the amount of
$391,950. Progressive Casualty offers insurance covering the ownership and operation of
private passenger automobiles, commercial automobiles, motorcycles, boats and personal
watercraft, recreation vehicles, Segway Human Transporters, and other personal-use
motorized vehicles.
Ms. Cohen pointed out a couple of corrections to the Memorandum in the Panel packet.
She noted that under Tab #23 on page 2 in the last paragraph, the correct number of
company employees who would receive training is 390, not 450. She also pointed out the
correction on page 5, under contracting conditions/turnover, #1; the turnover ceiling of 25
percent is for the last 12 months of the contract, not the calendar year 2006, as stated.
Ms. Cohen noted that instead of a waiver, staff recommends modifying the benchmark from
20 to 25 percent, along with 2 other conditions designed to reduce turnover and improve
job stability. In all, this would be a total of three contracting conditions: 1) Set a turnover
ceiling of 25 percent for the last 12 months of the contract which, if surpassed, would result
in forfeiture of the final payment; 2) Establish the final payment at 35 percent of payment
earned instead of the usual 25 percent; and 3) Impose a 120-day retention period instead
of the usual 90-day period.
Ms. Cohen introduced Kathy Copeland, Call Center Director and Brooke Perez, Manager of
Deloitte Tax LLP.
Mr. Broad said that he has reviewed the proposal and that typically, for companies that are
not meeting turnover requirements, it is expected that requirements are met on any
proposals presented thereafter. Through staff negotiations regarding conditions placed on
this project, Mr. Broad is willing to support this project. He would like to see the company
collect the 100 percent and not lose the 35 percent, and encouraged that companies lower
their turnover and create more stable jobs. He explained that the reason that the general
policy is in place for turnover rates, is that the Panel does not want to fund training in
industries where there is numerous turnover and companies are not creating a stable
workforce where individuals are advancing up the career ladder.
Ms. Roberts asked for clarification of the training and if the training was computer-based
only training. Ms. Copeland said that approximately 25 percent of the total training is
computer-based and the remaining 75 percent is instructor led training. Ms. Roberts asked
about the previous 30 percent turnover rate and what the company is doing to reduce the
turnover rate in this contract. Ms. Copeland said they have lost 200 employees over the
last several years due to low volume. She said that every time they hire in large groups,
the infrastructure grows, which results in a decrease in advancement. She said the job has
changed and is much more complex.
She noted that in June 2006, they created a new-hire screening test called a simulation in
order to recruit the right employees from the beginning. Progressive Casualty is training
Employment Training Panel September 22, 2006 Page 6
current employees due to more complex calls received in the call center. She said they are
piloting screen capture, and are currently recording 100 percent of their calls. She
explained that when calls are audited and recorded, screen capture allows supervisors to
follow through the screens that the representatives are accessing in the system during a
call; because staff does not know why representatives cannot solve some calls. Ms.
Copeland noted the changing work ethic in the company. She said they used to conduct
organizational effectiveness surveys once a year, and through the surveys they realized
that needs and requests of the new workforce are different. Every quarter they are
required to create action plans. She said the younger employees are requesting a more
flexible work place, but said it is difficult to offer flexible work hours in a call center
environment.
Ms. Roberts asked how many of the customer service representatives are the percentage
of the high turnover rate. Ms. Copeland said the high turnover rate is from the customer
service representatives' occupation. Ms. Roberts asked what percentage of the total 390
employees are in the customer service representative occupation. Ms. Copeland said
approximately 75 percent are customer service representatives. Ms. Roberts asked where
customer service representatives advanced to after completion of training. Ms. Copeland
said they conduct exit interviews, and shows that most customer service representatives'
trainees decide to work in different areas than call centers. Mr. Broad asked why
employees were typically unhappy in a call center environment and if it was typical of the
industry. Ms. Copeland said the lack of flexibility in a call center environment is one of the
factors. Mr. Broad asked if this is a demographic problem and if most employees were of
child bearing years with small children. She said that 75 percent of the workforce is female.
Ms. Copeland said another problem is that most calls coming in are upset callers. She said
that many employees leave call centers due to lack of job advancement. She said
Progressive Casualty created a system called optimal scheduling. Representatives can
request time off on a daily basis. She said the system is called green alerts and there are
individuals monitoring the green alerts all of the time. If call volume is low, employees
requesting to leave early for that day through the green alerts system may be granted an
early release. Ms. Copeland said flexibility seems to be more important to employees than
the amount of money they are receiving. She said that some employees choose not to
advance in a job because it might require a change in their schedules.
Ms. Roberts asked about the administration of the project and if Deloitte was involved with
the administration. Ms. Copeland said they administer the project themselves, and employ
a training manager. She said they have a rewards and recognition program.
ACTION: Mr. St. John moved and Mr. Rendon seconded approval of the One-Step
Agreement for Progressive Casualty in the amount of $391,950.
Motion carried, 5 0.
Fremont Investment & Loan
Diana Torres, Manager of the San Diego Office, presented a One-Step Agreement for
Fremont Investment & Loan (Fremont), in the amount of $975,000. Fremont originates and
acquires commercial and residential real estate loans sold through a brokerage network.
Employment Training Panel September 22, 2006 Page 7
Ms. Torres introduced Rick Daly, Vice President of Corporate Learning and Development
and Bob Lake, Assistant Vice President of Learning.
There were no questions from Panel Members.
ACTION: Ms. Roberts moved and Mr. Rendon seconded approval of the One-Step
Agreement for Fremont in the amount of $975,000.
Motion carried, 5 0.
Veterinary Pet Insurance Company
Ms. Torres presented a One-Step Agreement for Veterinary Pet Insurance Company (VPI),
in the amount of $472,500. VPI is a California licensed insurance company providing
accident and health insurance policies for dogs, cats, birds, and other exotic pets
nationwide. The company also operates a service for its policyholders that includes pet
identification and a registry for lost animals.
Ms. Torres introduced Lorin Young, Vice President of Administration and Claudia Mino,
Organization Design & Development Manager.
Ms. Torres noted that in the menu curriculum under business skills, advanced telephone
skills should be removed from the curriculum.
There were no questions from Panel Members.
ACTION: Mr. Rendon moved and Mr. St. John seconded approval of the One-Step
Agreement for VPI in the amount of $472,500.
Motion carried, 5 0.
Crane Aerospace and Electronics
Dolores Kendrick, Manager of the North Hollywood Office, presented a One-Step
Agreement for Crane Aerospace and Electronics (Crane), in the amount of $528,768.
Crane is a manufacturer of aircraft parts and auxiliary equipment.
Ms. Kendrick introduced Rick Lee, Vice President of Human Resources; Christian DeSario,
HR Business Partner; and Steve Abbott, Vice President of the IM Group.
There were no questions from Panel Members.
ACTION: Mr. St. John moved and Ms. Roberts seconded approval of the One-Step
Agreement for Crane in the amount of $528,768.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 8
Fortune Fashion Industries LLC
Ms. Kendrick presented a One-Step Agreement for Fortune Fashion Industries LLC (FFI),
in the amount of $315,000. FFI is an apparel manufacturing company.
Ms. Kendrick introduced Jack Fiedler, Chief Financial Officer.
Mr. Broad asked how FFI maintains such a low turnover rate for the fashion industry.
Mr. Fiedler said they have 500 permanent workers and use temporary agencies to fill in as
volume adjusts.
Ms. Roberts asked who will provide the Microsoft Dynamics training. Mr. Fiedler said an
outside third party will train FFI managers and the managers will then train their employees.
Ms. Roberts asked about language barriers in the workforce. Mr. Fiedler said as the
training will be conducted in both English and Spanish, no language barriers are expected.
Mr. Gordon asked about the percentage of employees who earn $13.00 per hour and how
much they would earn after completion of training. Mr. Fiedler said those employees are
learning new skills, but training did not guarantee a raise in wages. He said some may
receive a cost of living increase or a raise over the next two years, but was not specifically
correlated. He added that most employees under the Design Artist occupation earn $15.00
to $16.00 per hour at the completion of training. Mr. Gordon asked how many employees
fall under the Design Artist occupation. Mr. Fiedler said there are 25 employees under this
occupation with additional support help. He said they purchased $6 million worth of new
printing equipment due to increased growth.
Mr. Rendon asked about employee benefits, bonuses and the Employee Recognition Plan.
Mr. Fiedler said through Worker's Compensation they were self funding over the last couple
of years and held seminars, awarded bonuses to departments that did not have any claims
or reduced claims, and recognition for employees or departments for increased
performance. Mr. Rendon asked if there were any monetary bonuses. Mr. Fiedler said
occasionally gift cards were given to employees. He said the bonuses and Employee
Recognition Plan contributed to the low turnover in their industry.
ACTION: Mr. Gordon moved and Mr. Rendon seconded approval of the One-Step
Agreement for FFI in the amount of $315,000.
Motion carried, 5 0.
Sony Pictures Entertainment, Inc.
Ms. Kendrick presented a One-Step Agreement for Sony Pictures Entertainment, Inc.
(SPE), in the amount of $403,560. SPE produces and distributes motion picture and
television programming and related products.
Employment Training Panel September 22, 2006 Page 9
Ms. Kendrick introduced Richard Hopfer, Senior Vice President and Chief Information
Officer and Cathy Daoust, Director of Development & Learning/Information Technology.
Mr. Broad asked who the direct contact would be for this agreement. Mr. Hopfer said Ms.
Daoust was in charge of development and learning and will be directly responsible for this
project. Mr. Broad said it was the first time where the HR department was not involved.
Mr. Hopfer said he was disappointed that the HR department was not involved in the
development of the project. Mr. Broad said this was the second chance for this proposal to
succeed and he did not foresee any problems.
Mr. Gordon asked if training was outsourced. Mr. Hopfer there is some outsourcing of
training and that Ms. Daoust's department is responsible for overseeing the outsourcing
training. He said there are some full-time trainers on her staff that do not work for Sony
Pictures. He added that Ms. Daoust would recruit trainers, if needed, for specific training.
Mr. Gordon asked if outsourced trainers were initially assessed and if the instructors
received continued education. Ms. Daoust answered in the affirmative to both questions.
ACTION: Mr. Gordon moved and Mr. St. John seconded approval of the One-Step
Agreement for SPE in the amount of $403,560.
Motion carried, 5 0.
Cottage Bakery, Inc.
Ms Cohen presented a One-Step Agreement for Cottage Bakery, Inc. (Cottage Bakery), in
the amount of $819,000. Cottage Bakery is an established manufacturer and distributor of
bakery goods.
Ms. Cohen said Cottage Bakery requests a waiver of the ETP minimum wage for 100
working poor employees. Working poor are newly hired, have significant barriers to
employment such as limited education, insufficient communication skills and lack essential
job skills. She said the minimum wage at the start of training will be $9.40 per hour. Each
trainee's post-retention wage will be in excess of $10.06 per hour and if the trainee's accept
company paid health benefits, they could earn a maximum of $12.69 per hour.
Ms. Cohen introduced Bart Spence, Director of Human Resources.
Mr. Broad asked if the waiver request was for the 100 employees under Job Number 2
only. Mr. Spence answered in the affirmative. Mr. Broad asked if Cottage Bakery was
willing to increase the retention period from 90 days to 120 days for those employees. Mr.
Spence agreed to the increase of the retention period to 120 days.
Ms. Roberts asked which city Cottage Bakery is located in. Mr. Spence said Cottage
Bakery is located in Lodi, California. Ms. Roberts commented on the turnover rate and the
company being located in a high unemployment area, and the lack of individuals trying to
Employment Training Panel September 22, 2006 Page 10
obtain jobs due to the high unemployment area. Ms. Roberts agreed with Mr. Broad on the
increase of the retention period.
Mr. Gordon asked about new-hire packets and training language outlined for new
employees. Mr. Spence said Cottage Bakery has a very detailed orientation that involves
lots of exposure to exactly what is to be expected of them. Mr. Gordon asked if employees
were assessed for learning disabilities such as language barriers upon being hired. Mr.
Spence said they assess new employees for possible language barriers.
ACTION: Mr. Gordon moved and Mr. Rendon seconded approval of the One-Step
Agreement for Cottage Bakery in the amount of $819,000 with the
modification that the retention period will increase from 90 days to 120 days
for the 100 employees under Job Number 2.
Motion carried, 5 0.
Multiple Employer Contracts
Goodwill Industries of Santa Clara County
Mr. Chan presented a One-Step Agreement for Goodwill Industries of Santa Clara County
(Goodwill SV), in the amount of $210,500. Goodwill SV provides training and job
placement services for the unemployed and under-employed in Santa Clara and San
Benito counties.
Mr. Chan introduced Trish Dorsey, Managing Director of Workforce Development.
Mr. Broad said he was pleased that Goodwill SV was offering the Welfare-to-Work (W2W)
program.
Mr. St. John asked if Goodwill SV currently has an active project open with ETP. Ms.
Dorsey said there is currently a contract open that was awarded in April of 2006 and that
this project is a separate W2W program. Ms. Carrillo explained that it made more sense to
have a separate contract since the W2W program is so distinct. Mr. Broad agreed it was a
good idea to have a separate contract and is striving for a high success rate. He said what
distinguishes between ETP and other W2W training programs, is that there is a guaranteed
job at the completion of training. Ms. Roberts commended Ms. Dorsey for taking the
Panel's suggestion in April 2006 in accepting the W2W pilot and recognized the time
invested in re-writing the W2W contract. Ms. Dorsey thanked Ms. Roberts and said that
Goodwill SV is very excited about the W2W program.
ACTION: Mr. Gordon moved and Ms. Roberts seconded approval of the One-Step
Agreement for Goodwill SV in the amount of $210,500.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 11
Oxman College
Mr. Chan presented a One-Step Agreement for Oxman College (Oxman), in the amount of
$479,990. Oxman is a private, post-secondary and vocational school that specializes in
developing and providing customized training programs for California employers.
Mr. Chan noted this was a resubmittal of a proposal, which was first presented to the Panel
at the April 2006 Panel meeting. The following changes has been made to the revised
proposal: 1) the new-hire portion is only for the San Francisco Bay Area and Oxman is
willing to place retention at $11.00 per hour including health benefits and 2) include a W2W
component to the proposal which will place retention at $11.00 per hour at the end of the
retention period for the San Francisco Bay Area only.
Mr. Chan introduced Michael Dvorkin, President and Velma Gaines-Miller, Director of
Public Relations.
Mr. Broad thanked Oxman for working with the staff in preparing a revised proposal.
ACTION: Mr. Gordon moved and Mr. St. John seconded approval of the
One-Step Agreement for Oxman in the amount of $479,990.
Motion carried, 5 0.
HCM Health Care Inc. dba Health Care Management
Ms. Cohen presented a One-Step Agreement for HCM Health Care Inc. dba Health Care
Management (Health Care Management), in the amount of $306,000. Health Care
Management manages accounts, payroll, audits, business and nursing processes, clinical
nursing, human resources, and consulting support services for the chain of eleven health
care facilities.
Ms. Cohen introduced Arden Bennett, President and CEO and Sheila Chesanow, R.N. and
Vice President of Professional Services.
Mr. Broad asked about the reference to trainee costs paid by trainees. He asked if trainees
are enrolled in a community college. Ms. Chesanow said trainees will be enrolled in a
community college at the start of training. Mr. Broad asked if trainees are paying for their
community college fees. Ms. Chesanow said trainees are from both community colleges
and private colleges. She said after researching, there was a difference for the same
program essentially. Mr. Broad asked what Health Care Management offers that is distinct
from community colleges. Ms. Chesanow said the trainees are current Health Care
Management employees in the CNA occupation that are seeking to advance to LVNs. Mr.
Broad asked if all of the facilities listed in the agreement are owned by Health Care
Management. Ms. Chesanow answered in the affirmative.
ACTION: Ms. Roberts moved and Mr. St. John seconded approval of the One-Step
Agreement for Health Care Management in the amount of $306,000.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 12
Sacramento Employment and Training Agency
Ms. Cohen presented a One-Step Agreement for Sacramento Employment and Training
Agency (SETA), in the amount of $1,067,560. SETA is a joint-powers agency of the City
and County of Sacramento under the direction of Sacramento Works, Inc., Workforce
Investment Board (WIB).
Ms. Cohen introduced William Walker, Department Manager of Sacramento Works; Gisela
Weissman, Employment Services Supervisor of Sacramento Works; and David Vice,
President of Tech Skills of Sacramento.
There were no questions from Panel Members.
ACTION: Mr. Gordon moved and Ms. Roberts seconded approval of the One-Step
Agreement for SETA in the amount of $1,067,560.
Motion carried, 5 0.
Sterling Alliance, Inc., dba CCT Computer Learning Center
Ms. Cohen presented a One-Step Agreement for Sterling Alliance, Inc., dba CCT Computer
Learning Center (CCT), in the amount of $229,320. CCT is a small training school located
in Weaverville, California, providing on-site customized computer skills training.
Ms. Cohen introduced David Clark, CEO.
Ms. Roberts asked how much an employer who would like to send their employee to CCT
would pay out of pocket for the training. Mr. Clark said employers could not send
employees to CCT. He said there is no computer training center to which a participant in
this contract could send someone. He explained employers would have to conduct the
training at the workplace. Ms. Roberts asked how much the employers pay for workplace
training. Mr. Clark said the employer must pay the employee while they are in training and
that attendance is mandatory. Ms. Roberts asked if the employer pays the trainee's wages
and then CCT pays for the cost of providing the training. Mr. Clark said CCT provides the
training and occasionally provides computers which are commonly donated and out of date,
but sufficient to provide the training.
Mr. Gordon asked if CCT was an association. Mr. Clark said CCT was not an association.
Mr. Gordon referred to the group of employers defined in the agreement. Mr. Clark said
that they are participating employers.
Mr. Gordon asked about CCT's previous contracts with ETP and if the program is
successful. Mr. Clark said he has heard reports from both employers and trainees. He
said that comments were that ETP is the most likeable State program that they have had
the opportunity to participate in. He said that some employers have reported an increase in
payroll and one employer said he is still in business due to the ETP program.
Employment Training Panel September 22, 2006 Page 13
ACTION: Mr. Gordon moved and Mr. Rendon seconded approval of the One-Step
Agreement for CCT in the amount of $229,320.
Motion carried, 5 0.
Comprehensive Training Systems, Incorporated
Ms. Torres presented a One-Step Agreement for Comprehensive Training Systems,
Incorporated (CTS), in the amount of $286,595. CTS is eligible to provide ETP training as
a repeat public training agency with a history of providing training and placement services
to the public. Ms. Torres stated this is a Welfare-to-Work (W2W) Pilot Program.
Ms. Torres introduced Linda Blair-Forth, President and CEO.
Mr. Broad thanked Ms. Blair-Forth for willingly embracing the W2W Pilot Program and
working with staff. He encouraged that the company communicate any problems that arise
or any suggestions they may have throughout the term of the contract.
ACTION: Ms. Roberts moved and Mr. Rendon seconded approval of the One-Step
Agreement for CTS in the amount of $286,595.
Motion carried, 5 0.
Community Career Development, Inc.
Ms. Kendrick presented a One-Step Agreement for Community Career Development, Inc.
(CCD), in the amount of $442,440. CCD is a community-based organization that engages
in a wide range of workforce development activities and operates the Wilshire-Metro
WorkSource Center.
Ms. Kendrick introduced Gloria Moore, Executive Director.
There were no questions from Panel Members.
ACTION: Mr. St. John moved and Mr. Rendon seconded approval of the One-Step
Agreement for CCD in the amount of $442,440.
Motion carried, 5 0.
Community Career Development, Inc.
Ms. Kendrick presented a One-Step Agreement for Community Career Development, Inc.
(CCD), in the amount of $236,965. CCD is a community-based organization established in
May 1972. It engages in a wide range of workforce development activities and operates
the Wilshire-Metro WorkSource Center.
Employment Training Panel September 22, 2006 Page 14
Ms. Kendrick stated this is a W2W project and the project is separate in order to track the
progress independently. She said the LVN program begins in March 2007 and the W2W
program would have an effective date of October 2006. In order to utilize the full training
time for each project, there was a need to keep the projects separate. Ms. Kendrick
explained this project has the same company representative, Gloria Moore, as the previous
CCD project.
Ms. Roberts asked staff if there was a cap on W2W projects and if there was a specified
amount allowable for W2W projects in a year. Ms. Carrillo said the Strategic Plan allows
for up to $2 million dollars per year for W2W projects. Ms. Roberts asked about the dollar
amount used so far this year, in W2W projects. Ms. Carrillo said the W2W funding thus far
amounted to approximately $1 million.
ACTION: Mr. Gordon moved and Ms. Roberts seconded approval of the One-Step
Agreement for CCD in the amount of $236,965.
Motion carried, 5 0.
J & R Film Co., Inc., dba Moviola Education Center
Ms. Kendrick presented a One-Step Agreement for J & R Film Co., Inc., dba Moviola
Education Center (Moviola), in the amount of $745,000. Moviola is a private, for profit,
training and educational center.
Ms. Kendrick introduced Paul Stephan, Director.
Mr. Rendon commended Moviola for their high completion rate in their previous project.
ACTION: Mr. Gordon moved and Mr. Rendon seconded approval of the One-Step
Agreement for Moviola in the amount of $745,000.
Motion carried, 5 0.
Riviera, Inc., dba The Enterprise U
Ms. Kendrick presented a One-Step Agreement for Riviera, Inc., dba The Enterprise U (The
Enterprise U), in the amount of $301,600. The Enterprise U is a for-profit corporation
formerly known as Reisgen, Inc., dba Contracted Computer Training Learning Solutions.
Ms. Kendrick introduced Winny Ho, Executive Director.
There were no questions from Panel Members.
ACTION: Mr. Rendon moved and Ms. Roberts seconded approval of the One-Step
Agreement for The Enterprise U in the amount of $301,600.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 15
X. REVIEW AND ACTION ON REGULATIONS
Maureen Reilly, General Counsel, directed Panel Members to the Regulations tab in the
Panel packet. She said that there are three regulatory actions proposed for the Panel's
review. She reserved comments on the proposed amendment regarding frontline workers.
Turning to page 2 at the Regulations tab, Ms. Reilly addressed the proposed repeal of
Section 4425 on Structured On-Site Training (SOST). She said the Panel has not been
funding SOST for quite some time based on the moratorium that was placed in August
2002. She said this was based on a research study identifying certain problems with
monitoring SOST, and the Panel's decision that this was not the best use of funding. She
said if the Panel determines it would like to start SOST again, it would be best to "start
fresh" with the regulation. For this reason, she said, Section 4425 is unnecessary.
Ms. Reilly referred to the next regulation set for repeal, Section 4441.5 on Training
Schedule. She said this requires a detailed rollout schedule for the first six months of
training, to be made available by the contractor at the start of training and updated
throughout the project. She said this goes against the concept of having flexibility during
the course of a training project, which is accomplished through current procedures whereby
staff works closely with employers and training agencies to develop and monitor a realistic
schedule. For this reason, she said, Section 4441.5 is unnecessary and potentially
confusing.
Next, Ms. Reilly asked to withdraw the proposed amendment of Section 4400(ee) defining
Frontline Worker, based on the need for further research concerning the interplay between
the Panel's statutory standard (direct production of goods or delivery of services) and labor
law criteria for determining exempt or non-exempt status (primary job duties, independent
judgment.
Mr. Broad clarified that Section 4400(ee) Frontline Worker, would be withdrawn and
presented to the Panel on the agenda at a future meeting.
Proposed Repeal of Section 4425, SOST
ACTION: Ms. Roberts moved and Mr. Gordon seconded that the Panel repeal T.22,
C.C.R., Section 4425, SOST.
Motion carried, 5 0.
Proposed Repeal of Section 4441.5, Training Schedule
ACTION: Ms. Roberts moved and Mr. St. John seconded the Panel repeal Section
4441.5, Training Schedule.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 16
XI. PUBLIC COMMENT
Steve Duscha, Alliance for ETP, was in full agreement with all of the recommendations
made on all of the regulations by General Counsel, Maureen Reilly.
Mr. Gordon commented that wages are low on the W2W projects, making it difficult for the
Panel to approve these projects. He suggested making a motion to have a subcommittee
follow up with the W2W projects after a period of time and report back to the Panel on how
these programs are moving forward, and helping to resolve issues that arise. Mr. Broad
suggested that staff give the Panel a progress report on the W2W projects, but said that
since the Panel has recently begun funding the projects and the training has not yet
occurred, he suggested a first progress report in approximately January 2007. Ms. Carrillo
suggested that the first progress report be done at the March meeting, which will also be in
time for the budget hearings. She said by then, hopefully some trainees will have
completed training and begun their employment. She said staff also expects that once a
contract is completed, a follow up study of trainees' employment will be conducted. Mr.
Gordon said that would be more than adequate and he thanked staff for their thorough
work on the W2W projects.
XII. ADJOURNMENT
ACTION: Ms. Roberts moved and Mr. St. John seconded to adjourn the meeting at
12:15 p.m.
Motion carried, 5 0.
Employment Training Panel September 22, 2006 Page 17