The meeting was called to order by the Governing Board Chair, J. Reese, and the PIC Chair, J. Madden, at 10:00 AM.

There was a quorum of both the Governing Board and the PIC.

A motion by B. Maffett, seconded by T. Cochran, for the approval of the Minutes as mailed, passed the PIC unanimously.

A motion by B. Dennison, seconded by B. Reiss, for the approval of the Minutes as mailed, passed the Governing Board unanimously.

A motion by S. LaBriere, seconded by B. Hinman, for the approval of the Agenda as mailed, passed the PIC unanimously.

A motion by G. Russell, seconded by B. Dennison, for the approval of the Agenda as mailed, passed the Governing Board unanimously.

There was no public comment.

There are currently two seats open on the PIC. A private sector seat is open for Plumas due to non-attendance by Joe Garner. An economic development seat is open for Siskiyou due to the March 31, 1999, resignation of Eric Herrick. The decision to fill these vacancies is being left up to the respective counties. S. LaBriere and J. Smith said they are working on a nomination for the vacant Economic Development seat in Siskiyou County. B. Dennison said he was working on nominations for the vacant Private Sector seat in Plumas County.

E. McCain said he was concerned about the lack of attendance by the Labor Representative and the Private Sector representative from Lassen County. C. Burden said she thought the individuals were good choices for Lassen County, and it was just bad timing that accounted for their recent non-attendance. E. McCain said if their non-attendance continued, he wanted them replaced with individuals that would come to the meetings.

Michele Piller, Program Committee Chair, presented the Program Committee Report.

1. Program Monitoring

Betti Austin, Program Services Director, reported on her Spring monitoring visits. She visited each of the NoRTEC primary subcontractors, reviewing case files, conducting interviews and checking for program compliance with NoRTEC, State and Federal rules and regulations for participant eligibility, program design and services delivery, and compliance with training vendor procurement in all funding titles. She said she was pleased to say that all the programs were doing well, and she had no compliance issues to report.

2. PY 1998/1999 Third Quarter Program Reports

A summary of the standard program reports, and the related corrective action reports was presented at the meeting, as detailed in the agenda. T. Brown pointed out that a new feature in the agenda is a link to an in-depth explanation of any of the reports, so the reader can learn about the purpose and general contents of each of the reports.

1. Title II-A 77% Adult and 82% Youth Performance Standards
2. Title III Entered Employment Rate and Average Wage at Placement Standards
3. Federally Defined Barrier to Employment Ratios
4. In-School Vs. Out-of School Youth Service Ratios
5. Employer Assisted Benefits and Model Out of School Youth Program


T. Brown said that all of the programs were performing well, with a special mention for the Job Training Center (Lassen, Modoc, and Plumas Counties), which had no areas of concern or question. She said the small size of the Youth program was a potential problem, as each measured outcome could significantly affect the overall percentages used to measure the Youth Program's performance.

3. Participant Summaries and Employment Report

These reports are provided to the PIC and Governing Board as informational items (number of participants served in each county and participant placements in jobs):

1. Participant Summaries by Funding Source
2. Participant Summaries by County
3. Employment Report


No questions or concerns were noted.

4. Flood 98 Temporary Job Creation Project

The $3.5 million Flood 98 temporary job creation project is being operated in three of NoRTEC's seven counties (Trinity, Tehama and Del Norte). It began in early March 1998 and is scheduled to run through June 30, 1999. As of March 31, 1999, NoRTEC has provided over $3,000,000 to serve 238 workers.

In response to a request by the members at their previous meeting, two special reports were presented (as detailed in the agenda):

1. A breakout of costs by program, to examine the amount of funding spent directly on participants.
2. What agencies the participants worked at as well as the position title and hourly wage being paid.


No questions or concerns were noted.

5. Title III Review by JTPD

During February 1999, the Evaluations Division of EDD monitored NoRTEC's Title III Plant Closure, Basic Readjustment Services, and Flood Transition programs. This visit included trips to Del Norte, Lassen, Modoc, Tehama, and Trinity Counties. There were no findings.

Additional Discussion:

E. McCain expressed his concern about the slow start of the Welfare to Work program. He said he was being told that it was due to the NoRTEC subcontractors screening out most of the Welfare Department referrals. He said he thought that may be due to the over emphasis by NoRTEC on exceeding Performance standards.

C. Brown said he had heard a lot of excuses too. Probably the biggest structural problem is with the strict eligibility requirements. At Least 70 percent of the Grant Funds must be spent on individuals who face two of three specified labor market deficiencies and who are long-term welfare recipients, or who face termination from TANF within 12 months; or who are non-custodial parents of minors whose custodial parent meets these criteria. Labor market deficiencies include (l) lack of high school diploma or GED and low reading or math skills, (2) requiring a substance abuse treatment for employment, and (3) a poor work history.

Probably the next biggest problem, according to C. Brown, is the lack of a cooperative effort between the JTPA program and the Welfare Department. Most of the Welfare Departments consider the WtW program to be a JTPA program, not theirs, hence JTPA's problem, not theirs. They have their own problems, and are busy complying with burdensome State planning and other activities directly related to their own operations. From the JTPA side, it is a new, staff intensive program, which they have to implement in addition to what they already do, which they have received relatively small funding (Lassen, for example, gets about $130,000), which may or may not receive any more funding in the future, and which they have no control in recruiting clients for.

Most of the counties have also experienced a serendipitous reduction in their Welfare role, and the Welfare Departments are not feeling the pressure to get a new programs going.

C. Brown said, excuses aside, he believed the WtW program was finally starting to show some life, and should have a better showing by their next meeting. In the meantime, he would try and get something going on a regional level with the Welfare and JTPA Directors. He also suggested that the Governing Board members that were concerned could help by demanding some action locally. Bring the Welfare and JTPA Program Directors together and have them tell you what their plan is.

A motion by B. Maffett, seconded by T. Cochran, for the approval of the Program Committee Report, passed the PIC unanimously.

A motion by B. Dennison, seconded by J. Smith, for the approval of the Program Committee Report, passed the Governing Board unanimously.

B. Hamby, Finance Committee Chair, presented the Finance Committee Report.

1. PY 98/99 Third Quarter Finance Reports

The standard NoRTEC quarterly finance reports were reviewed, as detailed in the agenda. No concerns or questions were noted.

1. PY 98/99 Contracts Summary

NoRTEC currently has $13,182,670 in available funds for the program year July 1, 1998, to June 30, 1999.
2. PY 98/99 Service Provider Contract Modifications

The significant contract change during the period was the allocation of the PY 98/99 IIB Summer Youth funding.
3. PY 98/99 Program Expenditure Report
4. PY 98/99 NoRTEC Administrative Entity Expenditure Report
5. PY 98/99 NoRTEC PIC and Governing Board Expenditure Report


A motion by T. Cochran, seconded by R. Belarde, for the approval of the Finance Committee Report, passed the PIC unanimously.

A motion by B. Dennison, seconded by G. Russell, for the approval of the Finance Committee Report, passed the Governing Board unanimously.

2. PY 1999/2000 NoRTEC ADMINISTRATIVE BUDGET

B. Hamby said the PIC Finance Committee is recommending that the PY 1999/2000 Administrative Entity budget be approved at $672,450. This represents a 3% decrease from the PY 1998/1999 approved budget amount of $691,500. The following changes are being proposed: (1) a $100,000 decrease in the amount budgeted for Special Projects; (2) the reclassification of the NoRTEC Computer System Administrator position from the Special Projects line item to the Salaries line item totaling $58,000; (3) a 5% staff salary increase (excluding Executive Director) totaling $15,950; (4) a $5,000 increase in the Telephone line item; (5) a $1,500 increase in the Dues and Memberships line item $1,000 increase in the Audit line item.

During the discussion, E. McCain asked the purpose of the Special Projects budget. C. Brown said it was for helping with One Stop implementation, and has been used primarily for internet, and related hardware and software needs. It has also been the source of the System's Administrator's salary. G. Russell said the Special Projects budget is dependent upon special funding, over and above the funding needed for the line item budget.

B. Hamby said the System's Administrator position had been temporary, pending a determination of need for a permanent position. The consensus of the members was that the need had been established.

B. Hamby said the proposed 5% salary increases for staff (excluding the Executive Director) were based on a salary survey of comparable positions. He also noted the NoRTEC staff had not received a raise for the prior year. (The survey was posted with the Agenda.) B. Hinman said he noticed there were no privately funded entities in the comparison. C. Brown said they were advised by the consultant performing the survey that comparisons between the public and private sector were difficult, and likely to skew the results to a higher salary level. E. McCain asked if the turnover rate had been taken into account, as a small turnover rate would suggest the salaries were already competitive. B. Dennison said he thought the NoRTEC staff was engaged in specialized work, and turnover would be detrimental to the organization. C. Brown said he thought the salary increase was fair and not extravagant for the amount and quality of work his staff performed. G. Russell said next time he would like more backup to the salary survey. M. Cross apologized, saying the full report was posted on the internet, but he only sent the summary page when he mailed George's packet. R. Belarde said he was comfortable with the salary survey, was pleased with the loyalty of the NoRTEC staff, and felt a raise was due as a sign of respect from the NoRTEC PIC and Governing Board.

E. McCain asked if the total funding needed to fund the full proposed budget had already been secured. C. Brown said it had not, and suggested the motion include the condition of available funds.

A motion by R. Belarde, seconded by B. Laverty, for the approval of a NoRTEC Administrative Entity budget of $672,450 for PY 1999/2000, contingent upon available funding, passed the PIC unanimously.

A motion by G. Russell, seconded by B. Dennison, for the approval of a NoRTEC Administrative Entity budget of $672,450 for PY 1999/2000, contingent upon available funding, passed the Governing Board unanimously.

3. PY 1999/2000 NoRTEC PIC/GB BUDGET

B. Hamby said the PIC Finance Committee is recommending that the PY 1999/2000 PIC/GB Budget be approved at $50,000. A new $5,000 line item is being proposed for supplies and equipment related to the computers. This represents an 11% increase over the PY 1998/1999 approved budget amount of $45,000.

A motion by B. Maffett, seconded by T. Cochran, for the approval of a NoRTEC PIC and Governing Board budget of $50,000 for PY 1999/2000, contingent upon available funding, passed the PIC unanimously.

A motion by G. Russell, seconded by B. Dennison, for the approval of a NoRTEC PIC and Governing budget of $50,000 for PY 1999/2000, contingent upon available funding, passed the Governing Board unanimously.

4. STATE COST COMPLIANCE NOTIFICATION

It was noted that NoRTEC received notice from the State that NoRTEC is in compliance with the required cost category limits in Title III for the 1996 year of allocation.

5. STATE FISCAL AND PROCUREMENT MONITORING

It was noted that the State will be conducting a fiscal and procurement review of NoRTEC the week of May 17, 1999. They will be visiting Siskiyou and Lassen, Modoc and Plumas Counties.

6. NoRTEC FISCAL AND PROCUREMENT MONITORING

It was noted that the NoRTEC Finance Director, Michael Cross, will be conducting on-site fiscal and procurement reviews of NoRTEC service providers during May and June. B. Hinman asked if the monitoring in the Spring was too late to catch any problems in time. M. Cross said if he goes at the beginning of the fiscal year, there is not enough data to make a judgment, so he relies on his desk reviews of routine fiscal reporting he receives from the service providers to spot potential expenditure or gross misclassification of costs problems. He said the programs have all developed stable financial systems and procedures, so he does not need to get there early in the year to assist with that. Mostly he is looking on-site now for actual bookkeeping entries conforming to the system, reviewing backup, procurement, etc.

A motion by B. Hinman, seconded by T. Cochran, for the approval of the third quarter financial report, passed the PIC unanimously.

A motion by B. Reiss, seconded by J. Smith, for the approval of the third quarter financial report, passed the Governing Board unanimously.

Note: The consensus of the members was to move this item to the end of the agenda.

The meeting was adjourned into closed session to discuss this personnel matter at 12:12 PM.

The meeting was re-opened in public session at 12:50 PM.

A motion by B. Hamby, seconded by T. Cochran, for the approval of a twenty percent bonus for the NoRTEC Executive Director, based on performance against pre-established performance goals, passed the PIC unanimously.

A motion by B. Dennison, seconded by B. Reiss, for the approval of a twenty percent bonus for the NoRTEC Executive Director, based on performance against pre-established performance goals, passed the Governing Board unanimously.

Funding allocations for the final year (PY 1999/2000) of the JTPA program have been released. Allocations for NoRTEC are:

Allocations in all titles increased a little over 5% from last program year, with the exception of Title II-A 5% Older Worker program, which increased by only 1+%.

A motion by B. Maffett, seconded by T. Cochran, for the approval of the PIC Chair to sign the Job Training Plan Adjustment, incorporating the PY 99/00 funding into NoRTEC's JTPA program, passed the PIC unanimously.

A motion by B. Dennison, seconded by B. Russell, for the approval of the Governing Board Chair to sign the Job Training Plan Adjustment, incorporating the PY 99/00 funding into NoRTEC's JTPA program, passed the Governing Board unanimously.

T. Brown said the Welfare-to-Work (WtW) plan for the second year funding was basically the same as for the first year. Planning allocations for PY 99/00 of the WtW program have been released. The planning figure for NoRTEC is $1,068,469 (about a 10% reduction of what we received in PY 1998/99). T. Brown said the breakout per county had not been received yet, so the table is based on last year's figures.

A motion by T. Cochran, seconded by B. Hinman, for the approval of the PIC Chair to sign the Welfare to Work Plan Adjustment, incorporating the PY 99/00 funding into NoRTEC's WtW program, passed the PIC unanimously.

A motion by J. Smith, seconded by B. Reiss, for the approval of the Governing Board Chair to sign the Welfare to Work Plan Adjustment, incorporating the PY 99/00 funding into NoRTEC's WtW program, passed the Governing Board unanimously.

C. Brown said he put together a WIA Planning Web Site to keep track of our planning activities and related WIA information: /cb/onestop/wia_implementation_98.html. The immediate objectives are to get the concurrence of the NoRTEC counties to continue NoRTEC as the administrative entity and grant recipient under WIA, invite Butte to join with the same status as each of the other member counties, assign interim WIA planning and decision making to the PIC and Governing Board, and apply to the State for Workforce Investment Area designation by the end of April, 1999.

C. Brown said six of the eight counties had approved the Resolutions. The Tehama County Counsel has asked for additional time to study the Government Codes and determine if the NoRTEC JPA is in compliance. The Siskiyou County Counsel asked for a postponement of the Siskiyou Board of Supervisors approval to May 4, 1999, pending the outcome of the Tehama Counsel's investigation.

C. Brown said he was not in favor of having to re-submit the the Joint Powers Agreement (JPA) to the six counties that had already passed it. If it was not a specific legal issue, it is policy, and policy is best handled by the PIC and Governing Board. He suggested a compromise might be for the PIC and Governing Board to sign an agreement to be in compliance with all applicable laws and regulations. E. McCain said his county counsel said the JPA already says that. J. Smith said her county counsel said the JPA was technically/legally correct as written, and they had only postponed their vote as a "professional courtesy" to the Tehama counsel. She said she had no doubt it would pass "as is" at their next meeting, and apologized to C. Brown and K. Suvia for surprising them with the postponement at the Siskiyou Board of Supervisors meeting. After further discussion, the consensus was that neither the addendum nor the proposed compromise was needed (no motions were put forth for either). G. Russell said he was confident the Resolutions would also pass in Tehama County in plenty of time for submitting an application to the State prior to the end of June.

A motion by C. Burden, seconded by T. Cochran, for the approval of staff submitting an application for NoRTEC Workforce Investment Area designation to the State prior to July 1, 1999, to include all those counties signing the currently distributed NoRTEC Resolutions, passed the PIC unanimously.

A motion by B. Dennison, seconded by B. Reiss, for the approval of staff submitting an application for NoRTEC Workforce Investment Area designation to the State prior to July 1, 1999, to include all those counties signing the currently distributed NoRTEC Resolutions, passed the Governing Board unanimously.

As detailed in the agenda, the coalition wants the sustainable use of natural resources, and financial compensation for revenue loss, to be used for schools, roads and other local purposes.

A motion by C. Burden, seconded by T. Cochran, for the approval of the NoRTEC Director signing a letter of support for the Joint Principles of the Forest Counties and Schools Coalition, passed the PIC unanimously.

A motion by B. Dennison, seconded by J. Smith, for the approval of the NoRTEC Director signing a letter of support for the Joint Principles of the Forest Counties and Schools Coalition, passed the Governing Board unanimously.

There was a discussion of the Community Coordinator role and the upcoming 1 1/2 day Community Coordinator workshop scheduled for June 17 - 18, 1999, Oxford Suites, Chico. B. Dennison said he was pleased with the work of Janis Trueblood. J. Smith said they were happy with the work of Joyce Zwanziger in Siskiyou County. C. Brown said he thought the Community Coordinators would be instrumental in the transition to the Workforce Investment Act.

No Old Business Items were brought up for discussion.

1. Upcoming Meeting Schedule


1. PIC and Governing Board - July 29, 1999
2. PIC Committees - To Be Announced
3. PIC and Governing Board Meeting at Konocti, October 28, 1999.

There being no further old or new business, the meeting was adjourned at 12:52 PM.