Information about http://www.etp.ca.gov/docs/minutes/minutes122007.pdf
STATE OF CALIFORNIA EMPLOYMENT TRAINING PANEL MEETING …
Tags: ada, california employment training, carrillo, chairperson, executive director, executive staff, general counsel, giroux, golden gate, janice, maureen reilly, member executive, milton marks, panel members, rendon, roll call, san francisco ca, st john, state of california, vice chair,Pages: 27
Language: english
Created: Fri Jan 18 07:20:10 2008
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STATE OF CALIFORNIA
EMPLOYMENT TRAINING PANEL MEETING
Milton Marks Conference Center
Lower Level
455 Golden Gate Avenue
San Francisco, CA 94102
December 14, 2007
PANEL MEMBERS
Barry Broad
Acting Chair
Barton Florence
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
Milton Marks Conference Center
Lower Level
455 Golden Gate Avenue
San Francisco, CA 94102
December 14, 2007
I. PUBLIC PANEL MEETING CALL TO ORDER
Barry Broad, Acting Chairperson, called the public Panel meeting to order at 9:50 a.m.
II. ROLL CALL
Members Present
Barry Broad
Bob Giroux
Scott Gordon
Edward Rendon
Janice Roberts
Members Absent
Barton Florence
Johnathan St. John
Executive Staff Present
Ada Carrillo, Acting Executive Director
Maureen Reilly, General Counsel
III. APPROVAL OF AGENDA
ACTION: Mr. Giroux moved and Mr. Rendon seconded the Panel approve the Agenda.
Motion carried, 5 0.
IV. APPROVAL OF MINUTES
ACTION: Ms. Roberts moved and Mr. Giroux seconded approval of the Panel Minutes of
November 9, 2007.
Motion carried, 5 0.
Employment Training Panel December 14, 2007 Page 1
V. REPORT OF THE ACTING EXECUTIVE DIRECTOR
Ada Carrillo, Acting Executive Director, introduced ETP's newly appointed Assistant Director,
Amber Luiz. She said Ms. Luiz was appointed by Governor Schwarzenegger as ETP's
Assistant Director of External Affairs and Small Business.
Ms. Carrillo referred to the Fund Status Report in the Panel Packet. She said some
adjustments have been made to the Budget appropriation to reflect the increase in staff
compensation per Collective Bargaining Agreement. The administrative expenditures will
remain within the 15 percent administrative cap. She referred to the Prior Year Contract
Liabilities and said it has increased to $19 million as additional monies are needed to cover
contracts approved in prior years. She said since 2004/2005, the Panel has incrementally
encumbered contract awards at minimal levels averaging about 35 percent of the contract
amount. If the Panel approves all of the December projects, there will be $17.5 million
remaining for the year. She said that as a result of the minimal incremental encumbrance
process, this translates to $42 million worth of contracts. She anticipates that all monies will
be depleted by the April 2008 Panel Meeting.
Request Motion to Delegate in Event of Loss of Quorum
Ms. Carrillo asked for a motion to delegate to the Executive Director the authority to approve
items in consultation with the Panel Chair or Vice Chair, if a quorum does not exist.
ACTION: Mr. Rendon moved and Ms. Roberts seconded the Panel delegate to the Acting
Executive Director the authority to approve items for which a quorum does not
exist in consultation with the Panel Chair or Vice Chair.
Motion carried, 5 0.
Request Motion to Adopt Consent Calendar Projects/Action
Ms. Carrillo asked for a motion to adopt Consent Calendar Items #1 through #42.
AcademyX, Inc. ..................................................................................................... $199,495
Aviano Group, Inc. ................................................................................................... $48,360
Bimbo Bakery USA.................................................................................................. $144,720
Bon Appetit Management Company........................................................................ $208,800
California State University, Fresno Foundation ......................................................... $49,547
Charles A. Jones Skills and Business Center.......................................................... $199,133
Com Dev USA, LLC................................................................................................... $40,698
Creative Communication Technologies, Inc. ......................................................... $255,000
Doctor's Hospital of West Covina ............................................................................ $147,456
Electronic Interface, Inc. dba Applied Engineering .................................................. $290,576
Extron Logistics, LLC................................................................................................. $39,960
Gateway Cities Partnership, Inc. ........................................................................... $111,916
Employment Training Panel December 14, 2007 Page 2
Gothic Landscaping, Inc. dba Gothic Landscape ...................................................... $75,000
Greater Sacramento Urban League ........................................................................ $187,968
H. Hendy Associates ................................................................................................. $26,400
Hispanic Chamber of Commerce of Solano County .................................................. $49,726
Hobbs Container Company, Inc. .............................................................................. $41,600
Hunter Direct, Inc. .................................................................................................... $21,120
J.D. Power and Associates...................................................................................... $283,140
Menlo Logistics, Inc. dba Menlo Worldwide............................................................... $73,440
Michaels Transportation Services, Inc. .................................................................... $26,400
MKG Enterprises, Inc. ............................................................................................. $49,324
Morton and Pitalo, Inc. ............................................................................................. $62,400
Nitelog, Inc. .............................................................................................................. $36,504
PAMC, Ltd. dba Pacific Alliance Medical Center ..................................................... $269,136
PG Films, Inc. .......................................................................................................... $74,880
PGP International Corporation................................................................................. $234,000
PneuDraulics, Inc. ................................................................................................. $216,000
Rantec Microwave Systems, Inc. ............................................................................. $74,256
Reid Products, Inc. .................................................................................................. $31,200
SDA Security Systems, Inc. ..................................................................................... $22,100
Siegfried Engineering, Incorporated .......................................................................... $48,360
Superior Anhausner Foods...................................................................................... $135,000
SupHerb Farms ......................................................................................................... $52,000
The Conrad Corporation dba Conquest Imaging ....................................................... $74,888
TOLCO a brand of NIBCO INC. ............................................................................. $169,650
Toppan Photomasks, Inc. ...................................................................................... $182,196
US FoodService, Inc. ............................................................................................. $198,450
Verdegaal Brothers, Inc. .......................................................................................... $20,240
Vietnam Veterans of California, Inc. ........................................................................ $74,476
WalGreen Distribution Center.................................................................................... $75,000
Western Summit Constructors, Inc. ......................................................................... $49,968
ACTION: Ms. Roberts moved and Mr. Giroux seconded approval of Consent Calendar
Items #1 through #42.
Motion carried, 5 0.
Mr. Broad reported the State budget is moving rapidly in the wrong direction. He said the
Budget had a deficit of $9 billion but is now a $14 billion deficit. He expects that by summer
2008, there will be cuts throughout the State budget. He said that since ETP is not an
entitlement program, the State will attempt to take ETP funds as done in the past. Mr. Broad
expects that with Budget cuts, it will be a very rough year for ETP as well as all state
agencies. He said they usually begin with across-the-board cuts, but since this does not
produce enough money, they then look at cutting entitlement programs. He said we are in
the tail-end of the post-partisanship era, and it might be starting back up again, in which case
it could be a very difficult year. Mr. Broad warned the community, employers, and agencies
that this will be a very difficult year in the State budget.
Employment Training Panel December 14, 2007 Page 3
VI. REPORT OF THE GENERAL COUNSEL
Maureen Reilly, General Counsel, said she would present information on the Regulations
later in the Agenda.
VII. VIRGIN AMERICA, INC. TODD PAWLOWSKI
Creighton Chan, Manager of the Foster City Office, said Virgin Airlines first came to the Panel
in December of 2005. Prior to that, there were several states competing for Virgin America,
Inc. (Virgin) to base their headquarters. Through the joint efforts of state and local economic
development efforts including ETP, Virgin decided to locate their headquarters and airline
operations in California. At that time, the Panel committed $10 million over multiple contracts
to assist Virgin with their training needs. He said Virgin operations were delayed due to the
Department of Transportation certification process, but is now flying and has a viable airline.
He introduced Todd Pawlowski, Vice President of Airport and Guest Services and Deborah
McCuiston, Director of Corporate Learning. Mr. Chan said they would give an update on how
Virgin is doing and the impact they are having on the economy.
Mr. Pawlowski said today marks the third time in four years that Virgin has had the pleasure
of addressing the Panel, and this time instead of talking about a dream, they shared the
reality of Virgin America. He said they first addressed the Panel in 2004 and in 2005 applied
for the formal contract. They spoke to the Panel about a day when Virgin America would fly
over the skies of California, creating thousands of jobs, conducting businesses with hundreds
of companies throughout the State, stimulating the economy, promoting the State across the
nation, and bringing visitors to this great State to participate in tours and commerce. They
are happy to report that the only airline that calls California home is doing just that today.
Despite the many objections of non-California-based airlines, Virgin is currently departing and
arriving airplanes at SFO and LAX and will begin service to San Diego in a few months.
Although Virgin's start-up was delayed for many months due to challenges they experienced
in obtaining their certificate from the Department of Transportation, they are now on to the
next challenge; creating and growing an airline that people love.
Mr. Pawlowski shared some highlights Virgin America has incurred since beginning service in
August 2007; their job creation promise. He said that in 2007 they began with 80 teammates
and is rapidly approaching the 1,000 teammate mark with the bulk of employees based in
California. He said they have employed a number of displaced workers from other airlines.
He said they have partnered with dozens of service companies throughout the State, and in
turn have created hundreds of jobs to support their airplanes and their guests. He said Virgin
has invested millions in real estate, by flying at SFO and LAX and are utilizing facilities that
were heavily under-utilized, thus providing an additional source of revenue to these airports
and cities by strengthening their balance sheets and providing these airports with the
justification they need to move forward with some development programs.
Employment Training Panel December 14, 2007 Page 4
Mr. Pawlowski said Virgin is extremely proud to call California home, they often speak about
the fact they are based in California, and are often written about, stating they are a California-
based airline on a national and international level.
Mr. Pawlowsi said the reason Virgin is requesting training funds from ETP is for the re-
investment in California-based workers. Since August 2007, they have trained over 700
employees ranging from airport staff, pilots, flight attendants, mechanics, call center agents,
accountants, IT technicians, and other office professionals to expand their skill sets and
knowledge. He said they are encouraged about Virgin's future, thanked the Panel for its
support, and look forward to utilizing the initial grant monies, even though it now appears that
Virgin will require another contract to do so. He said despite the budget challenges, Virgin
applauds the Panel's continued work into reinvesting in California's employers and
employees.
Mr. Giroux asked about the type and demographics of individuals that Virgin is recruiting and
about recruitment efforts in regards to gender and ethnicity. Mr. Pawlowski said Virgin is
extremely diverse and employ individuals from every walk of life. He said if you consider the
traveling public and the diversity of the traveling public that is a mirror image of their
employee base. Pilots with military backgrounds, general aviation backgrounds, and airport
staff come from various communities. He said employees are extremely diverse, with varying
degrees of education and experience. He said that in regards to age demographics, Virgin
employs individuals from high school graduates to individuals with 25 to 30 years of working
experience.
Mr. Giroux expressed his pleasure in hearing that Virgin is trying to employ individuals who
have previously worked in the industry, and have lost their jobs. Mr. Pawlowski said that has
proved to be a great source of talent for them. He said one of the challenges any company
has when it begins and expands as rapidly as Virgin, is creating good bench strength. He
said they rely on individuals that have been in the business before to compliment individuals
brought in from outside the industry.
Mr. Pawlowski said ground facilities are a real issue which is why Virgin is so encouraged to
see SFO expanding some of its facilities since they are flying out of SFO with about 25 flights
a day. He said Virgin anticipates hiring an additional 1,000 employees next year, taking an
airplane delivery about every month so they are growing at about a 100 rate next year and
within 3-4 years, would like to see the SFO operations grow to about 100 flights a day. He
said they are in discussions with officials in Los Angeles about expanding and that San Diego
is a very tight airport and they are lucky to have found a gate. He said there is much work to
do on the ground from a facility standpoint.
Mr. Broad asked Mr. Chan where are they, in training 700 people, so how much of the $10
million have they used to train them. Mr. Chan said, based on reported performance about
$1 million, but expects it will be higher by the end of the contract. Mr. Broad asked staff if
Virgin would have to re-apply at the end of the period. Ms. Carrillo said it is expected that
Virgin will return in March or April 2008 for a new contract and added that even though Virgin
Airlines was awarded a $10 million contract, as we incrementally encumber and anticipated
Employment Training Panel December 14, 2007 Page 5
that Virgin might have some delays with the Department of Transportation certification
process, about 25 percent of the contract amount was encumbered. Mr. Broad asked when
this contract returns to the Panel, how it would work procedurally. Ms. Carrillo said it would
be a new contract. Mr. Broad asked if Virgin would return and ask for the remaining amount.
Ms. Carrillo said they would request the remaining amount that was not used in the first
contract.
Ms. Roberts said the last time Virgin approached the Panel, there were no employees hired
at the time and she had said it was unlikely they could do this in a two-year time frame and
source the $10 million. She said she is glad Virgin has secured its employees, are
conducting the training and that it is a great opportunity for the State and is excited about
Virgin returning for the remainder of funds. Mr. Broad thanked Virgin for its wonderful
presentation and encouraged expansion as much as possible in California.
VIII. REVIEW AND ACTION ON AGREEMENTS AND AMENDMENTS
Single Employer Contractors
Pacific Bell Directory (presented out-of-order)
Diana Torres, Manager of the San Diego Regional Office, presented a funding proposal for
Pacific Bell Directory (Directory) in the amount of $658,800. She said Directory performs
integrated publishing functions including advertising, telephone directory printing and
publishing, and electronic internet directory publishing.
Ms. Torres explained Directory has worked with ETP staff to re-develop a training plan to
address the Panel's previous concerns. The funding proposal has been revised as follows:
reduced agreement amount by $89,640 from $748,440 to $658,800; reduced the number of
trainees from 660 to 600; reduced average cost per trainee from $1,134 to $1,098; reduced
percentage of supervisors/managers from 15 percent to 6 percent of the trainee population;
and increased its in-kind contribution from $973,728 to $1,543,008.
Mr. Broad asked if there was a substantial contribution. Ms. Torres said there is no
substantial contribution on this proposal, but there is a substantial contribution on the
"current" AT&T proposal.
Ms. Torres introduced Curt Crandall, Senior Project Manager of Training for AT&T Pacific
Bell Directory and Julianna Kirby, President of Training Funding Partners.
There were no questions from the Panel.
ACTION: Mr. Giroux moved and Ms. Roberts seconded approval of the funding proposal
for Directory in the amount of $658,800.
Motion carried, 5 0.
Employment Training Panel December 14, 2007 Page 6
CoxCom, Inc.
Ms. Torres presented a funding proposal for CoxCom, Inc. (CoxCom) in the amount of
$687,000. CoxCom cable television system has more than 6.7 million subscribers throughout
the country and its customers include residential homes, businesses, and public entities.
CoxCom builds communication networks and delivers cable television programs and other
telecommunications products.
Ms. Torres introduced Larry Hofer, Vice President of People Services; Kevin Phillips,
Regional Training Manager; and Laurie Plachek, Director of Training and Organization
Development.
There were no questions from the Panel.
ACTION: Ms. Roberts moved and Mr. Rendon seconded approval of the funding
proposal for CoxCom in the amount of $687,000.
Motion carried, 4 0. (Bob Giroux not present for the vote)
HSBC Card Services, Inc.
Bob Giroux recused himself from the HSBC Card Services, Inc. proposal.
Ms. Torres presented a funding proposal for HSBC Card Services, Inc. (HSBC) in the
amount of $750,000. She explained HSBC provides middle-market consumers with
secured and unsecured real estate loans, auto finance loans, MasterCard and Visa credit
cards, private label credit cards, and specialty insurance products.
Ms. Torres introduced Dave Bigham, Manager of Learning & Development and Janice
Baker, Learning & Development Manager.
Ms. Roberts had concerns about mortgage businesses closing their doors, the turnover
rate cap at almost 20 percent, and the possibility of the turnover rate continuing to go up.
She asked what the company plans to do differently in this contract. Mr. Bigham said one
of the powerful things about HSBC is it is involved in the entire financial services industry,
not only the mortgage side. He said they are moving individuals that are processing
loans into other parts of the business that continue to be viable and doing well. Although
they have an 18 percent turnover, they have two other locations at a 14 percent turnover,
and does not foresee that turnover will be an issue.
Ms. Baker said cross training efforts will assist in both turnover as well as the new training
they need to provide so it is a win-win on both sides as to make sure they keep the
turnover down and find new jobs for the current employees but also having to retrain them
as a result of it.
Employment Training Panel December 14, 2007 Page 7
Ms. Roberts asked if HSBC has an in-house trainer and anticipates any glitches in the
system in the next couple of years. Mr. Bigham said no, he does not see a problem
there. He anticipates that the trainers will spend more time in California.
Mr. Broad asked what HSBC stands for. Mr. Bigham said it stands for Hong Kong Shang
Hi Banking Corporation.
ACTION: Mr. Rendon moved and Ms. Roberts seconded approval of the funding
proposal for HSBC in the amount of $750,000.
Motion carried, 4 0. (Bob Giroux recused)
Invitrogen Corporation
Ms. Torres presented a funding proposal for Invitrogen Corporation (Invitrogen), in the
amount of $800,172. She said Invitrogen provides essential life science products and
services to public and private research institutions, biotech and pharmaceutical
companies for disease research, drug discovery and commercial bioproduction.
Ms. Torres introduced Mona Scott, QA/QC Engineer III of Operations Global Quality.
Mr. Broad asked if Invitrogen is training the same group of employees in the previous
contract. Ms. Torres said there were individuals that received training and even though
they did not receive reimbursement for it they will not receive that same training. Mr.
Broad wanted to ensure the same individuals are not being trained twice.
Ms. Roberts said Invitrogen presented a very thorough and detailed presentation.
Mr. Giroux was concerned about the exorbitant dollar amount to administer an $800,000
contract. Ms. Carrillo said in the end, the administration fee will be based up to 13
percent of the amount earned so if they only earn $100,000, the subcontractor would earn
$13,000. Mr. Broad said in some ways the companies absorb that cost, so they are
making an entrepreneurial decision that they want to use someone to assist in the
administration and have the option of not doing that. He said this is a choice company's
make and there have been mixed messages over the years whether a company needs
assistance administering the contract.
Mr. Giroux said due to the pending statewide budget situation, ETP will be under scrutiny
just like anybody else. Mr. Broad said if there is a small to medium-sized company that
does not have a large infrastructure of individuals experienced and dedicated to moving
the ETP contract through, he did not understand the reason why companies cannot use
internal employees to administer an ETP contract. He said companies that do not have
anywhere near the same level of resources available to address training issues are much
more likely to need a consultant's assistance. Mr. Broad said companies are reducing
their amount of reimbursement by using a consultant. He said they are paying a cost and
the money is not going towards training, but rather to the consultant and they still have to
Employment Training Panel December 14, 2007 Page 8
train their people. Ms. Carrillo said ETP does not cover all of the training and
administrative costs and those contractors are responsible for the administration of the
contract, though they end up choosing to subcontract.
ACTION: Mr. Giroux moved and Mr. Rendon seconded the funding proposal for
Invitrogen in the amount of $800,172.
Motion carried, 5 0.
Kirkhill TA Company
Ms. Torres presented a funding proposal for Kirkhill TA Company (Kirkhill) in the
amount of $793,800. She said Kirkhill manufactures engineered elastomers and
clamping products for the aerospace and defense markets.
Ms. Torres introduced Kathleen Fisher, Vice President of Human Resources.
There were no questions from the Panel.
ACTION: Mr. Giroux moved and Mr. Rendon seconded the funding proposal for
Kirkhill in the amount of $793,800.
Motion carried, 5 0.
Prime Healthcare Services, Inc.
Ms. Torres presented a funding proposal for Prime Healthcare Services, Inc. (Prime
Healthcare) in the amount of $750,060. She explained Prime Healthcare operates eight
hospitals and that although each hospital has a separate California Employer Account
Number, they operate as one entity under the Prime Healthcare umbrella and have the
same training needs. This proposal addresses critical training needs for Prime
Healthcare's RNs and LVNs.
Ms. Torres introduced Suzanne Richards, Vice President of Nursing and Clinical
Operations; Martha Dispoto, Director of Nursing and Clinical Operations; and Dora
Noriega, Director of Nursing and Clinical Operations.
There were no questions from the Panel.
ACTION: Mr. Giroux moved and Ms. Roberts seconded the funding proposal for
Prime Healthcare in the amount of $750,060.
Motion carried, 5 0.
Employment Training Panel December 14, 2007 Page 9
Ross Dress for Less, Inc.
Ms. Torres presented a funding proposal for Ross Dress for Less, Inc. (Ross) in the
amount of $500,760. She said Ross is an off-price retailer that sells women's and men's
clothing, jewelry, accessories, lingerie, fragrance, children's apparel and shoes.
Ms. Torres introduced Les Davis, Vice President of Human Resources and Raul Tiansay,
Director of Taxation.
Mr. Broad said this is a High Unemployment Area (HUA), nevertheless, Ross lost the
employees they trained to competitors due to labor market conditions, which suggests
that Ross was under-paying its standard wages. He asked the company to address why
employees left for other distribution centers and about the consultant giving Ross bad
advice. He asked staff for guidance on consultants who give companies bad advice and
cost them a great deal of money.
Mr. Davis said when they opened their first distribution center in 2003 and the second in
2005, in 2003 they were one of two distribution centers in the general market. He said
they have expanded warehouse square footage by over 5 million in the last two years.
He said there is a tremendous need for skilled workers and they are proposing to train
forklift operators and unit id associates in this proposal. He said forklift operators are
needed throughout the distribution center in the Ontario and Riverside area and it is very
competitive. He said they now have a much more seasoned management team and
recently recruited employees from Newark, California that were willing to re-locate to
Southern California. He said this was not enough and was pure chaos when it opened.
He said they had well over 150 percent turnover in their hourly ranks and close to 100
percent turnover in management ranks. He said that since 2004, the turnover rate has
gone down gradually and Ross has been able to retain employees because they are
engaged in training and have introduced a new compensation program called "Blue Chip
Earnings". He explained that "Blue Chip Earnings" has engineered standards where once
an employee learns their job, they gain more hourly pay. He said they now have an
improved training system, a better training team, and his position did not exist at that time
and there was no one to enforce the program. He said it is his opinion that between the
changes in human resources and operations, a new operating vice president, and a new
supply chain vice president that truly believes in training and retaining individuals, these
factors will assist in a successful second time around.
Mr. Broad asked about the consultant for the previous project. Mr. Davis said he did not
have any information about the consultant. Annette Fago, representing Ernst and Young
LLP Tax Services, said when they began the process of talking to Ross and interviewing
them to get an understanding of what went wrong in the prior project, there were no
employees remaining with the company that had any familiarity with the prior consultant.
She said it is almost a new company. Ms. Torres added that in defense of previous
management, typically when a company is starting from ground zero, they have one
general manager and it is across-the-board in the industry that the general manager is in
charge of all operations. She said they review the specific requirements and the
Employment Training Panel December 14, 2007 Page 10
definitions and classroom laboratory training listed in the terms of the agreement and
monitor the agreements. She said that through monitoring they discovered that
unfortunately, much training that was completed and tracked did not fall under the
definition of laboratory training. She said that as a result, along with the bad advice they
were given, the consultant was fired early-on and training continued under parameters of
the ETP guidelines.
Mr. Broad said he has much sympathy for a company that hires a consultant for start-up
operations. He said the reason companies hire a consultant is to assist them and if the
consultant is the cause of the problem, he was concerned about there being no
consequences and them moving on to their next victim. He was concerned about
companies training and then consultants not informing them they cannot be reimbursed
for the training which results in poor performance. Ms. Carrillo said as soon as staff is
aware of a "bad consultant", ETP management will have a discussion with the
subcontractor to take corrective action and at times, Legal Counsel may need to get
involved.
Mr. Gordon said there seems to be a re-occurring common theme that could be
addressed easily and practically. He suggested making a motion that when a proposal is
approved, a document is inserted into the employee handbook regarding training and
expectations of company employees. He said this would address the problem and would
ensure accountability. Mr. Broad said in this case the consultant would have said, make
sure that 100 percent of what you do is not classroom training. He said the question he
has is he would rather let the market figure it out and post on the website if there is a
problem with poor performance due to the consultant. Mr. Broad suggested posting
consultants with poor-performance on the ETP website.
Ms. Roberts asked if the distribution centers in California were only located in Moreno
Valley and Perris. Mr. Davis agreed. Mr. Giroux said Moreno Valley and Perris are very
close in proximity and asked why they have two distribution centers so close to each
other. Mr. Davis said the distribution centers are in close proximity so that management
and hourly associates could easily moved between the distribution centers forth as well
as hourly associates because as it is, when one area might be down, one distribution
center is for bulk products, when bulk is low, they can move employees over to the other
facility, plus the proximity of Long Beach, it helps from a management perspective.
Ms. Roberts said start-up operations are often chaotic, and that when considering start-up
operation proposals, the Panel considers whether to grant the company the full amount
requested or to fund it in phases. Ms. Carrillo said this is the standard process for
considering companies with start-up operations.
ACTION: Mr. Giroux moved and Mr. Rendon seconded the funding proposal for Ross
in the amount of $500,760.
Motion carried, 5 0.
Employment Training Panel December 14, 2007 Page 11
Advance Paper Box Company
Dolores Kendrick, Manager of the North Hollywood office, presented a funding proposal
for Advance Paper Box Company (APBC) in the amount of $412,776. She said APBC
produces custom packaging goods such as folding cartons, rigid setup boxes, and
thermoform plastic packaging for a variety of clients from the cosmetic, pharmaceutical,
nutrition, media software and electronics, entertainment, hardware, and food and
beverage industries.
Ms. Kendrick introduced Carlo Mendoza, Controller.
Ms. Roberts was concerned about 156 employees completing eight weeks of training and
the in-kind contribution over the next two years. Mr. Mendoza said they have met with
every employee to determine their training needs, hired a manager with 15 years of work
experience specific to the industry and is implementing continuous improvement.
ACTION: Mr. Giroux moved and Mr. Rendon seconded the funding proposal for
APBC in the amount of $412,776.
Motion carried, 5 0.
Northrop Grumman Integrated Systems
Ms. Kendrick presented a funding proposal for Northrop Grumman Integrated Systems
(NGIS) in the amount of $1,499,000. NGIS is a business unit of Northrop Grumman
Corporation, a multinational entity with over two dozen corporate affiliates headquartered
in Los Angeles. NGIS and its affiliates provide technologically advanced products,
services and solutions in the areas of aerospace, electronics and shipbuilding.
Ms. Kendrick introduced Orville L. Dothage II, Manager of Advanced Production Training
Centers and Steve Duscha, Director of Training Funding Partners.
Mr. Broad said the company has received $8.3 million since 2003. Mr. Dothage said this
included the purchase of TRW. Mr. Broad said that is what you earned in 2002. He said
that is a lot of money and looks like there is a pattern. At some point it is hard to believe
that this much training can be supplemental, we are talking this is the 10th project in less
than a decade. Mr. Dothage said, in integrated system, this will be the third; the previous
were TRW, which they acquired. Mr. Broad asked if all of them were. Mr. Dothage said
Litton and TRW. Ms. Roberts asked if TRW was in Redondo Beach. Mr. Dothage
agreed.
ACTION: Mr. Rendon moved and Ms. Roberts seconded the funding proposal for
NGIS in the amount of $1,499,000.
Motion carried, 4 1. (Mr. Broad abstained)
Employment Training Panel December 14, 2007 Page 12
Abbott Vascular, Inc. (presented out-of-order)
Creighton Chan, Manager of the Foster City office, presented a funding proposal for
Abbott Vascular, Inc. (AV) in the amount of $1,470,600. He said AV researches and
manufactures coronary, vessel closure, and endovascular (procedures done through the
arteries) products, which are used in treating patients with coronary artery and peripheral
vascular disease. AV products include stents and guide wires used in angioplasty and
stent implementation.
Mr. Chan introduced Sharon Larkin, Vice President of Human Resources and Patty
McKay, Senior Manager of Learning and Development.
There were no questions from the Panel.
ACTION: Mr. Rendon moved and Ms. Roberts seconded the funding proposal for AV
in the amount of $1,499,000.
Motion carried, 5 0.
Mr. Giroux left the meeting at 11:45 a.m. and was not present for the remainder of votes.
Dreyer's Grand Ice Cream, Tulare Operations Center
Ruby Cohen, Manager of the Sacramento Field Office, presented a funding proposal for
Dreyer's Grand Ice Cream, Tulare Operations Center (Dryer-Tulare) in the amount of
$548,496. Dryer-Tulare is the principal supplier of Haagen-Dazs products in the United
States. The plant is a 24-hour-a-day, 7-day-a-week operation that makes 61 flavors of
Haagen-Dazs ice cream, 8 sorbets, 6 frozen yogurts and 8 varieties of ice cream bars.
Ms. Cohen introduced John Pritchard, Plant Manager and Steve Duscha, representing
Steve Duscha Advisories.
Mr. Broad said the company has positive performance and said they are 64 cents short of
not having to include health benefits to meet the ETP minimum wage. He asked if Dryer-
Tulare was willing to raise the post-retention minimum wage up from $12.85 to .64 cents
per hour higher than that. Mr. Pritchard said they can look at it. Mr. Broad said we are
talking about the lowest wage workers after training going from $12.85 to $13.49 per
hour. Mr. Pritchard said there are very few workers at lower wages and as soon as they
are trained and capable ice cream makers, they will make much more than that. Mr.
Pritchard agreed to raise their wage to $13.49 per hour. Mr. Broad reiterated that they
have agreed to a post-retention wage of $13.49.
Ms. Roberts asked how many employees are at the site. Mr.Pritchard said approximately
300 employees. Ms. Roberts asked if the Union City plant closed down. Mr. Pritchard
agreed it closed down. Ms. Roberts asked if there is a facility in Bakersfield. Mr.
Pritchard agreed and said there are several distribution centers throughout California and
Employment Training Panel December 14, 2007 Page 13
four out-of-state manufacturing plants in Maryland, Texas, Utah and Indiana. Ms. Roberts
asked if the proposed project is for Tulare only. Mr. Pritchard agreed.
ACTION: Mr. Gordon moved and Mr. Rendon seconded the funding proposal for
Dryer-Tulare in the amount of $548,496 with the agreement that the $12.64
wage is raised to a post-retention wage of $13.49 per hour.
Motion carried, 4 0.
Mr. Broad said this proposal warrants a press release since Dreyer-Tulare is in a high
unemployment area, pays excellent wages, exceeds the ETP minimum wage in the area,
has a low turnover rate, and extremely good performance.
FormFactor Inc.
Ms. Cohen presented a funding proposal for FormFactor Inc. (FFI) in the amount of
$620,100. FFI is an industry leader in the design, development, manufacture, sale and
support of precision, high-performance advanced semiconductor wafer probe cards.
Ms. Cohen introduced Joe LeBlanc, Technical Training Manager and Cleanroom
Engineer and Katherine Amoukhteh, Executive Director of Workforce America.
Mr. Broad asked if this is the company's first proposal. Mr. LeBlanc agreed.
ACTION: Mr. Gordon moved and Ms. Roberts seconded the funding proposal for FFI
in the amount of $620,100.
Motion carried, 4 0.
Shasta Regional Medical Center, LLC
Ms. Cohen presented a funding proposal for Shasta Regional Medical Center, LLC
(SRMC) in the amount of $494,262. SRMC is a 245-bed acute care hospital that includes
a Level III trauma center and is the only nationally accredited Chest Pain Center in
Northern California.
Ms. Cohen introduced Sandra Speer, Chief Human Resource Officer; Robin Lillibridge,
RN, Clinical Educator and William Parker, President of National Training Systems Inc.
Mr. Broad asked if the Redding, Anderson and Shasta Lake area is under-served by
hospitals. Ms. Speer agreed they are under-served. Mr. Broad asked how many Level III
trauma centers are in Redding. Ms. Speer said Mercy Medical Center is a non-profit and
part of Shasta Regional at a Level I, and covers the Redding area. Ms. Lillibridge said
there are only two hospitals in the Redding area. She said Chico has a Level II trauma
center approximately one hour away, and the next closest facility is in Sacramento. Mr.
Broad said this is a very large territory to cover.
Employment Training Panel December 14, 2007 Page 14
ACTION: Ms. Roberts moved and Mr. Rendon seconded the funding proposal for
SRMC in the amount of $494,262.
Motion carried, 4 0.
SigmaTron International, Inc.
Mr. Chan presented a funding proposal for SigmaTron International, Inc. (SigmaTron) in
the amount of $263,520. He explained SigmaTron assembles printed circuit boards,
manufactures DC-to-AC inverters, coils, transformers, and cable and harness assemblies,
and box build services, which integrate printed circuit board and other manufacturing and
assembly technologies into high-level sub-assemblies and end products.
Mr. Chan pointed out a correction on Page Two, Paragraph Three under the Introduction.
He said it currently states that SigmaTron employs 248 persons in ongoing operations at
its facilities in Hayward and Fremont. He said Fremont should be stricken as the proposal
only addresses the Hayward site.
Mr. Chan introduced James Miller, Manufacturing Director and Megan Sidiqui, Human
Resources Representative.
Ms. Roberts asked if Ms. Sidiqui will be in charge of this training. Mr. Miller agreed. Ms.
Roberts said the company is requesting double the dollar amount of the previous contract
and they only earned one-tenth of the previous contract for $70,000 and are now
requesting $250,000. Mr. Miller said they have completed their consolidation of the
Fremont and Hayward operations which are now merged into one larger Hayward facility.
He said senior positions and management is in place and key positions are filled. He said
a new director of quality assurance has been hired with an extensive training background
in electronics industry standards and his primary responsibility is to lead the training
efforts.
Mr. Broad asked if SigmaTron was agreeable to reducing the contract amount from
$263,520 down to $163,520. He said the company could return for an amendment if
positive performance is proven. Mr. Miller agreed to the reduced amount.
ACTION: Mr. Gordon moved and Ms. Roberts seconded the funding proposal for
SigmaTron in the reduced amount of $163,520.
Motion carried, 4 0.
SoloPower, Inc.
Mr. Chan presented a funding proposal for SoloPower, Inc. (SoloPower) in the amount of
$394,134. SoloPower incorporates nanotechnology as the solar cell is built on thin
flexible film to create high-efficiency, low-cost solar panels fabricated with high quality
Employment Training Panel December 14, 2007 Page 15
solar cell materials. The solar panels can be placed on commercial and residential roof
tops or utility scale solar farms at costs are competitive with traditional energy sources,
such as gas and electricity.
Mr. Chan introduced Ryan Benton, Chief Financial Officer and Tami McCoy, Controller.
Mr. Broad asked about Nano-Technology. Mr. Benton said there are a few companies
that are attempting to become a thin film solar. He explained the substance has been
proven to produce high-efficiency solar cells and the real challenge for thin film PV
manufacturers is to produce a product as highly-efficient as silicon-based solar cells. He
said the majority of the industry is currently based on silicon. He explained the basic
fundamental challenge that manufacturers face is the shortage of the raw material of
silicon. He said they are in competition with the chip manufacturers for that basic material
so the PV industry represents a very small percentage of the purchasing power of raw
silicon. He said thin film offers two key advantages: (1) you are not competing for the
basic raw material and dealing with materials that are also expensive but dealing with tiny
levels of that material and (2) dealing with a thin, flexible lightweight substance so where
as a traditional solar cell may be heavy and breakable, this is not. It is thin film, capable
of advanced applications and integration into building materials. The lighter weight helps
with the cost. He said the real promise of thin film is to bring something that is truly cost
competitive to traditional energy sources such as fossil fuels. He said other companies
that may be described as SoloPower's competition focus on the use of coal and oil.
Ms. Roberts asked if new-hires are included in the contract. Mr. Benton agreed and said
they currently have 44 employees that will relocate to the new facility and will be in
addition to the first manufacturing facility which will also house their administrative and
research and development staff. He said the majority of employees are research and
development staff. Ms. Roberts asked if the 93 new-hires would receive four weeks of
training from the start. Mr. Benton said they anticipate a block of time where new-hires
will receive several weeks of training and bringing them on early. He said as they
complete different levels of certification, it generally takes a couple months to become
certified.
Ms. Roberts asked if the four weeks of training over a two year period is built in for the 93
employees and if they would be trained up front. Mr. Benton agreed much training would
be done up front. He said since they are in a manufacturing environment and in the
process of implementing an MES system that falls onto an ERP system, there would also
be substantial training related to those software applications. He said training is on-going
and they will continue to add different applications and build to the infrastructure. He said
they have document control systems so process technology will revolve over time, there
will be revisions, and additional training related to the changes in the process which is
expected to extend out past the two years.
Ms. Roberts encouraged contractors to send letters to local representatives and said that
SoloPower gives a great testimonial to the ETP program.
Employment Training Panel December 14, 2007 Page 16
ACTION: Mr. Gordon moved and Ms. Rendon seconded the funding proposal for
SoloPower in the amount of $394,134.
Motion carried, 4 0.
Multiple Employer Contractors
Alameda Corridor Jobs Coalition
Ms. Kendrick presented a funding proposal for Alameda Corridor Jobs Coalition (ACJC) in
the amount of $193,760. ACJC unites more than 40 community and faith based groups with
the shared vision of promoting and sustaining job training and placement opportunities for
low-income minority residents within South Los Angeles along the Alameda Corridor. The
Alameda Corridor is a 20-mile rail cargo expressway linking the ports of Long Beach and Los
Angeles to the transcontinental rail network near downtown Los Angeles.
Ms. Kendrick introduced Benetta Johnson, Executive Director.
Ms. Roberts asked about the success rate of placing individuals exiting prison. Ms. Johnson
said that over the last four years they have seen an 80 percent success rate from their
training program. She said they work with the mayor's office, ex-offender re-entry programs,
city government, creating focus groups of employers and an international trades trainer that is
highly-experienced in the industry and also creates employment opportunities. She said they
have begun working with faith-based organizations to act as mentors and to guide and create
behavioral modification for these groups. She said if something is not done to assist
ex-offenders with job opportunities there will be a serious problem, as at least 40,000
ex-offenders return home to Los Angeles yearly. Ms. Roberts commended ACJC on their
success rate with ex-offenders. Ms. Johnson said they intend to continue improving their
success rate.
Mr. Broad said in his own experience over the last 25 years representing the Teamsters,
there was an understanding that there were many occupations where ex-offenders, in order
to rehabilitate them, there had to be jobs available. He said there has been a social change
in society in which the general view is ex-offenders need to be punished after they are done
being punished. He said that individuals who have gone to prison, which usually happens in
their youth and have since straightened out their lives, being an ex-offender follows them
forever and it is extremely difficult for them to obtain jobs.
ACTION: Ms. Roberts moved and Mr. Rendon seconded the funding proposal for ACJC
in the amount of $193,760.
Motion carried, 4 0.
Mr. Broad announced that Tab #59, Building Skills Partnership and Tab #64, Leadership
Training and Education Fund would be heard combined, due to the similarity of the
proposals.
Employment Training Panel December 14, 2007 Page 17
Building Skills Partnership
Ms. Kendrick presented a funding proposal for Building Skills Partnership (BSP) in the
amount of $195,896. BSP is a statewide non-profit program between the California janitors'
union, Service Employees International Union (SEIU) Local 1877, the Building Owners and
Managers Association (BOMA) of Greater Los Angeles, and janitorial companies. Its mission
is to: (1) improve the quality of life of low-wage building service workers, their families, and
communities by increasing their skills and educational opportunities, and (2) assist unionized
building service employers to develop stronger staff so that they can maintain a competitive
edge.
Ms. Kendrick said both representatives state approximately 75 percent of the training
population will be new to the program and 25 percent will be repeat trainees that require
additional advanced training.
Leadership Training and Education Fund
Mr. Chan presented a funding proposal for Leadership Training and Education Fund (LTEF)
in the amount of $436,748. He said Services Employees International Union Local 1877
(SEIU Local 1877) and over 30 janitorial companies in Northern California created LTEF to
retrain their largely immigrant workforce. LTEF serves the purpose of: (1) helping building
service employees develop better vocational and life skills and (2) assisting unionized
building service employers develop stronger staffs so that they can maintain an edge over
competitors, particularly those located outside California.
Mr. Chan said that since these proposals are very similar types of training, he suggested
having both company representatives at the podium to explain the differences between the
two companies and speak to the issues.
Mr. Chan introduced the representatives for LTEF: Alison Webber, Executive Director of
Leadership Training and Education Fund and Laura Plummer, Secretary Treasurer of SEIU
Local 1877. Ms. Kendrick introduced the representatives for Building Skills Partnership: Aida
Cardenas, Director and Jan Borunda, Project Coordinator for the California Labor Federation.
Mr. Broad asked if LTEF's prior proposal trained individuals in Southern California or if they
were geographically divided. Ms. Webber said the LTEF board is committed to helping one
pilot program and using their ETP grant to pilot the project. She said they are not prepared or
interested under their Collective Bargaining Agreement nor do they believe it is their role to
provide training outside of the Bay Area master contract. She said they had a one-time pilot
of then classes in Los Angeles, but do not plan to train outside of the four counties in the Bay
Area.
Mr. Broad wanted to ensure individuals that received training the first time are not receiving
duplicate training. Ms. Cardenas agreed and said they offered ten classes and there are
hundreds of work sites within the scope statewide, so there is the opportunity to enter into
Employment Training Panel December 14, 2007 Page 18
new work sites. She said there are work sites based on the needs of the clients of the
janitorial companies and different levels of training. She said that even if it is the same
individual going through the training, some workers have lower educational backgrounds and
it may be at different levels to get to where the client will want them to be to continue to move
through the industry. Mr. Broad said if the same people are going through the training again
and the curriculum remains the same, the company cannot be reimbursed for the training.
He said ETP can only reimburse for the training that is different and supplements the
previous training they received. Ms. Cardenas said they do not intend to train the same
people on the same material.
Ms. Webber representing the LTEF said employers would not be putting workers into a
second training and paying the release time for them to be in training if it was not
supplemental, and workers that they thought had the capacity to become leads or
supervisors if they were given that next level of advanced training. From a non-profit
prospective, she wishes they would put anyone through for additional training, but these
companies would not do that and commit, which is significant.
ACTION: Mr. Rendon moved and Mr. Gordon seconded the funding proposals for BSP in
the amount of $195,896 and LTEF in the amount of $436,748.
Motion carried, 4 0.
California Manufacturing Technology Consulting
Ms. Kendrick presented a funding proposal for California Manufacturing Technology
Consulting (CMTC) in the amount of $1,066,660. CMTC assists small and medium-sized
manufacturers in California to improve their operational efficiencies and global
competitiveness. CMTC provides consulting and training services in the following areas:
information technology; lean enterprise; strategic business; quality management; and
manufacturing and engineering.
Ms. Kendrick introduced John J. Van Buren, Vice President & Chief Financial Officer; Cheryl
Slobodian, Director of Operations Support; and Rocio Leon, Training Manager.
ACTION: Mr. Gordon moved and Mr. Rendon seconded the funding proposal for CMTC
in the amount of $1,066,660.
Motion carried, 4 0.
Teamster Joint Council 42 Training Academy (presented out-of-order)
Barry Broad and Edward Rendon recused themselves from this project and the gavel was
passed to Janice Roberts, Acting Vice Chair.
Ms. Kendrick presented a funding proposal for Teamster Joint Council 42 Training Academy
(Academy) in the amount of $414,575. Academy's primary purpose is to provide regulatory,
Employment Training Panel December 14, 2007 Page 19
industry, and job proficiency education training for new and existing workers in the freight and
transportation industry business sectors and to carry on other educational activities
associated with this goal.
Ms. Kendrick introduced James Garrison, President of Pacific Federal and Treasurer of the
Academy's Board, Dick Mynes, Executive Director of Training of the Teamsters Joint Council
42 Training Academy; and Jan Borunda, Project Coordinator for the California Labor
Federation.
Mr. Gordon asked if in conclusion of the training, if the Class "A" drivers test is part of it. Mr.
Garrison said it includes four weeks behind the wheel and in the fifth week, they review
issues and take the Department of Motor Vehicle Class "A" driver's test.
Ms. Roberts said that due to the lack of a quorum the earlier approved delegation for Ada
Carrillo, Acting Executive Director to take action in the absence of a quorum, went into effect.
Santa Monica College
Ms. Kendrick presented a funding proposal for Santa Monica College (SMC) in the amount of
$250,586. SMC is a community college that proposes to provide training to employees of
companies in a variety of industries involved in manufacturing and distribution.
Ms. Kendrick pointed out that on page 4 of the memo, under their most recent contract, it
states there has been "O" earnings which is an error. She said the contract has not yet been
closed out and show $192,000 in earnings to date and are on track to earn about 40 percent
of the total agreement amount.
Ms. Kendrick introduced Chito Cajayon, Dean of Workforce and Economic Development.
Mr. Broad said that due to the lack of a quorum the earlier approved delegation for Ada
Carrillo, Acting Executive Director to take action in the absence of a quorum, went into effect.
Bay Area Economic Development Center
Ms. Cohen presented a funding proposal for Bay Area Economic Development Center
(BAEDC) in the amount of $320,540. BAEDC is a for-profit economic development
membership organization founded in 1997 to promote the creation and retention of high-
skilled jobs.
Ms. Cohen introduced DeWitt Brown, Executive Director and Andy Stack, Board Advisor.
Mr. Broad said that due to the lack of a quorum, the earlier delegation motion made by Ada
Carrillo, Acting Executive Director, in the absence of a quorum, went into effect.
Mr. Broad said that due to the lack of a quorum the earlier approved delegation for Ada
Carrillo, Acting Executive Director to take action in the absence of a quorum, went into effect.
Employment Training Panel December 14, 2007 Page 20
Amendments
Mr. Broad announced that the remainder of proposal amendments, Tabs 65 (Santa Ana
Chamber of Commerce), 66 (Sacramento Employment and Training Agency) and 67 (The
Corporation for Manufacturing Excellence dba MANEX, would be considered together. He
said they share in common that they were previously approved, got part-way through the
process, positive performance, and returning to request the second half of funding.
Mr. Broad said that due to the lack of a quorum, the earlier approved delegation for Ada
Carrillo, Acting Executive Director, to take action in the absence of a quorum, went into effect.
IX. REVIEW AND ACTION ON ANNUAL REPORT 2006-07
Mike Rice, Chief of ETP's Administrative Division, presented the draft Annual Report for
2006-07. He said the Annual Report is required by the ETP enabling legislation to be
submitted to the Legislature annually to address the prior fiscal year. He said the Annual
Report describes the Panel's actions and accomplishments for FY 2006-07. He said that
2007 was a year of challenges and opportunities given ETP's reduced budget. He explained
that despite an increased appropriation over the prior year, ETP's budget was still 30 percent
below historic levels. He said that the Panel took steps to maximize its funds through both
administrative actions and targeting resources strategic planning.
Mr. Rice said there were 318 new contracts approved during the year, a 42 percent increase
over the previous fiscal year. In addition, staff administered 177 completed contracts and
188 contracts which were still active at the end of the fiscal year. He said contract activity in
the year neared 700 contracts and training was close to 200,000 trainees. He explained that
targeted industries in the strategic plan, showed that 76 percent of the approved funds went
to manufacturing and other high-technology firms, which is a 53 percent in the previous year,
which showed that the planned increase in reimbursement rates for priority industries paid off
with a near 50 percent increase in targeting those industries in the year.
Mr. Rice reviewed some of the key actions and accomplishments during the report year: the
Panel supported economic development in California approving $32 million for more than 50
projects aimed at business expansion and retention; the Panel continued to serve small
business and in addition, continued to support healthcare and nurse training providing $5.3
million to train close to 3,800 nurses for nurse upgrades and capacity building; and also
supported career technology education, clean technology and new industry trend such as
nano-technology. In addition, there was support for other workforce needs including high
unemployment areas, a welfare-to-work program was implemented, and $2.8 million was
approved for the training of 650 CalWORKS trainees. He asked the Panel if there were any
questions and proposed the Annual Report be approved with the direction to staff to
incorporate any requested changes and delegation of the authority to the Executive Director
for final approval.
Employment Training Panel December 14, 2007 Page 21
Mr. Broad noted that the earlier delegation motion made by Ada Carrillo, Acting Executive
Director to take action in the absence of a quorum, was still in effect.
X. REVIEW AND ACTION ON TITLE 22, CCR, SECTION 4410
Mr. Broad said that, with regard to a potential revision to the originally-noticed proposed
amendment of Section 4410, he will have Ms. Reilly present the matter and will then take
public comment, but the Regulation would not be voted on today. He said the potential
revision would require re-notification for a 15-day notice period.
Maureen Reilly, General Counsel, said the proposed amendment of Section 4410 is still in
the "notice and comment period" required under the Administrative Procedure Act. She said
both public hearings have been held and the 45-day comment period has closed on the
regulation action as originally noticed. She said the comments, from seven different
stakeholders, were summarized for the Panel's consideration in a memorandum at the
Regulations Tab in the Panel Packet. She said the memo also has suggested responses,
although the Panel need not act on them at this time. She said the suggested course of
action by staff is to revise the proposed amendment as originally noticed for additional
comment. As revised, this amendment would give the Panel additional discretion to modify
the 30 percent substantial contribution and add a new "discretionary factor" in regard to both
the 30 percent and 50 percent level.
Ms. Reilly explained that any time a revision is proposed, it must go out for an additional 15-
day comment period. She said the Panel will consider all comments again at the next regular
meeting, including those on the potential revision, and then take action on which version it
wants to proceed with.
Mr. Broad asked if anyone in the audience would like to comment, understanding that they
would again have the opportunity to comment on the same subject during the 15-day notice
period.
XI. PUBLIC COMMENT
Steve Duscha, representing Alliance for ETP, said he was confused by the process since the
Panel is operating without a quorum, and it appears they are continuing the regulatory
process.
Mr. Broad said the Panel is not taking any action today, but the lack of a quorum does not
prohibit the Panel from hearing comments. He said the regulation matter will be considered
again when there is a quorum.
Mr. Duscha said it was his understanding from Ms. Reilly that the possible changes would go
out for comment without action of the Panel.
Ms. Reilly said only the portion that is suggested for revision would go out for further
comment. Basically, she said, the Panel does have to consider all comments as a whole and
Employment Training Panel December 14, 2007 Page 22
take action on which version of the proposed amendment it chooses to file with the Office of
Administrative Law.
Mr. Broad said Mr. Duscha had a good question and asked the General Counsel to research
it. Mr. Duscha thanked Mr. Broad.
Mr. Duscha said he wished to comment briefly on the substance of the regulation. He said
the problem is not with the potential revision, but with the substance of the plan. He asked
the Panel to adopt a "0, 10, 30, 50" substantial contribution system with a 0 substantial
contribution on the first contract, a 10 percent substantial contribution on the second, a 30
percent substantial contribution on the third and a 50 percent substantial contribution on the
last. He compared this to the proposed "0, 30, 50, 50" system.
Mr. Duscha said case-by-case exceptions may be a good idea, but it is not a good idea to
start at the higher level of 30 percent on the second, and 50 perce