NoRTEC
AGENDA
WIB AND GOVERNING BOARD
THURSDAY, JULY 29, 2004
10:00 A.M. - 1:00 P.M.
HOLIDAY INN
685 MANZANITA COURT
CHICO, CA
Last Updated July 22, 2004, @ 12:50 p.m.

1. CALL TO ORDER
2. ROLL CALL
3. WIB APPROVAL OF MINUTES, APRIL 29, 2004 (ACTION)

   The minutes from the April 29, 2004, meeting are attached: Minutes

   Recommended Action:

   WIB approval of the April 29, 2004, minutes, with revisions if needed, as posted.

   Governing Board approval of the April 29, 2004, minutes, with revisions if needed, as posted.

4. APPROVAL OF AGENDA (ACTION)

   Recommended Action:

   WIB approval of the agenda, with revisions if needed, as mailed.

   Governing Board approval of the agenda, with revisions if needed, as mailed.

5. WIB APPOINTMENTS (ACTION)

   The following nominations have been received for appointment/re-appointment to the NoRTEC WIB:
   
   Private Industry, Del Norte County, Ron Sandler, Nomination Letter
   Private Industry, Del Norte County, Tom Cochran, Nomination Letter
   Economic Development, Siskiyou County, Sally LaBriere Nomination Letter
   
   Recommended Action:
   
   Governing Board appointment of the above named individuals to continue with another four year term on the NoRTEC WIB in the capacity indicated.
   
   The following WIB seats are still vacant, awaiting nomination from appropriate entities:
   
   Private Industry, Siskiyou County*
   Education (Community College President), At Large
   Title IV Older Worker Programs, At Large
   Migrant and Seasonal Farmworkers, At Large
   
   * We received an appropriate nomination for Ken Humberston to fill the private industry seat, but Mr. Humberston withdrew himself as a candidate for consideration.
   
   Charlie, I have decided that it is time for me to move in a different direction. Consequently, I am no longer a candidate for re-appointment to the NoRTEC WIB. I enjoyed serving and believe you have done an outstanding job serving our communities since I have the privilege of knowing you and your staff Thank you again for the professional manner in which you and your staff have served our communities.
   Respectfully, Ken Humberston

6. WIB RECERTIFICATION (ACTION)

   The Workforce Investment Act requires the Governor of each State to recertify the local Workforce Investment Boards every two years to assure that they meet established membership requirements and to ensure that WIA activities are being carried out locally meet the local performance measures. The Governor last certified the WIBs in November 2002. The next certification must be completed by December 2004.
   
   In order to meet recertification criteria, the NoRTEC WIB members must be appropriately nominated and membership must be in the proper categories with a majority being private business people. NoRTEC met these requirements in November 2002, and has met them again for this round of recertification.
   
   A new criterion for re-appointment this time around, is that the WIB meet at least 9 of the 11 core performance measures for both 2002/2003 and 2003/2004. These measures include:

   Adult	Dislocated Worker	Older Youth	Younger Youth
   Entered Employment Rate	Entered Employment Rate	Entered Employment Rate	Skill Attainment Rate
   Employment Retention Rate	Employment Retention Rate	Employment Retention Rate	Retention Rate
   Earnings Change	Earnings Replacement	Earnings Change

   
   NoRTEC met all 11 standards in 2002/2003. Performance for 2003/2004 will not be reported until September or November 2004, but NoRTEC expects to meet all 11 again. We will be notified in writing by December 31, 2004, if we have been recertified.
   
   A copy of the LWIB Recertification form can be viewed here: LWIB Recertification Form
   It must be signed by the WIB Chair prior to submittal.

   Recommended Action:
   
   WIB approval of the attached LWIB Recertification form and authorization for the WIB Chair to sign it.

7. PUBLIC COMMENT (INFORMATION)

   Members of the public will be invited to make brief comments regarding any aspect of NoRTEC business.

8. PROGRAM COMMITTEE REPORT (ACTION)

   M. Piller will present the Program Committee Report.

   1. Program Monitoring

      On-site program monitoring of NoRTEC service providers was conducted by B. Austin and T. Brown during April-June 2004. The purpose of these visits was to do a standard compliance review covering the following areas:

      • eligibility systems
      • appropriate documentation of client service progression for adult/dislocated workers
      • client tracking and reporting of participant outcomes (including documentation of credential attainment)
      • documentation of objective assessment and ISS for training services provided
      • the use of Job Specific Skills competencies for occupational skills training
      • documentation of appropriate monitoring of training
      • use of NCEN approved training providers for adult/dislocated workers
      • coordination of training with Pell and other grant assistance
      • compliance with laws and regulations (e.g., EEO, Child Labor, program complaint/grievances, OJT contracts, etc.)
      • provision of required program elements for youth

      Based upon these reviews, Service Providers are meeting applicable WIA regulations and NoRTEC specific program requirements concerning the provision of services in their adult and youth programs. There were no findings.

   2. State Monitoring

      There were no program monitoring visits performed by the State since the last meeting. We have been told that a programmatic review will take place sometime in October. Nothing definite has been scheduled, but the State monitor is planning on coming to the NoRTEC office in Paradise, and at least one of our service provider offices. Likely candidates for visits are the Job Training Center of Tehama County and the Shasta PIC. The Butte PIC was also mentioned, but as they were just reviewed during the State's recent fiscal monitoring, we are trying to get the monitor out to some of our other service provider offices.

   3. Client Numbers
      1. One Stop Centers - Job Seekers Accessing One-Stop Centers
      2. WIA Enrollments - Job Seekers Enrolled in the WIA Program
      3. Client Exits - Outcome Information On Customers Leaving The Programs
      4. Core Service* - One Stop Center Utilization Information
         
         
      5. Employer Service - One Stop Center Employer Service Information
         
         
   4. Contract Performance - WIA Service Providers
      
      WIA Service Provider Contract Performance - Contract Performance
      
      As agreed, NoRTEC has not focused a lot of attention on the details of participant performance since WIA was implemented. Initially because we were operating under too many unknowns, and were not sure what to expect. Then we switched from a focus on the job seeker to a focus on meeting local business needs. This is the first year we are looking at individual program performance involving participants (those actually enrolled in the WIA program). As agreed, this year is a test of the systems and procedures that have been established by the programs.
      
      Over all, the programs are doing very well. Staff's main concerns are with the adult entered employment rate and the older youth credential attainment rate. Programs missing either of these goals will be asked to submit a corrective action plan outlining how they plan to come into conformance with established performance goals in PY 2004/2005. It does not appear that under performance by a couple of the programs will prevent NoRTEC from meeting the standards as an LWIA.
      
      Shasta Enrollments and Training - NoRTEC Anomaly

      During thisprolonged time of decreasing funding, a number of NoRTEC programs are actually increasing their enrollments. The link displays three charts, illustrating the reduction in funding, the enrollments and training provided, and Shasta PIC's unexpected performance in the adult program. Anna Brasshart, Director, Shasta PIC has agreed to share some of her thoughts on how this was achieved.

   5. NWI (Nurse Workforce Initiative)

      The sixteen county region of NCEN (NoRTEC's nine counties, plus Colusa, Glenn, Humboldt, Lake, Mendocino, Sutter, and Yuba Counties) was awarded $2.1 million dollars to provide Registered Nurse (RN) and Licensed Vocational Nurse (LVN) training to northern California residents. The contract will be effective from October 1, 2002, through December 31, 2005.
      
      This report shows the award by county and Local Workforce Investment Area, and the number of enrollments so far. NWI
      
      Several of the programs within NoRTEC have requested additional funding to allow them to continue with another phase of NWI (new groups of trainees). Unfortunately, there is no additional funding available at this time.

   6. Plant Closure Update

      There have been several plant closures in the nine county area of NoRTEC over the past three years. The following web site address is being updated as additional closures occur. Items in red are those additions since the last regularly scheduled WIB and Governing Board meeting.

      Humboldt and Mendocino County closures are now listed on the website, as they are now a part of our regional NCEN special project funding requests.

      Plant Closure Update

   7. Featured Community Coordinator Report

      Following are direct links to the reports received for the quarter ending June 30, 2004:
      
      (Note: If the link does not take you directly to the report for the October-December quarter, look for a menu selection on the web page entitled Community Coordinator or Community Coordinator Reports.)
      
      Butte PIC
      Rural Human Services (Del Norte)
      Alliance for Workforce Development (Lassen)
      Alliance for Workforce Development (Modoc)
      Alliance for Workforce Development (Plumas)
      Shasta PIC
      STEP (Siskiyou)
      Job Training Center of Tehama County
      Trinity Occupational Training (Trinity)
      
      A few highlights from this quarter's reports are:

      • The Butte newsletter gives a brief report on the "ungrounding" of seven of eight of Aero Unions P-3 Air Tankers, which resulted in hiring back some workers who had been laid off when the Air Tankers were originally grounded. There are also some statistics on the Economic Development Council's Job Creation Program.
      • The Del Norte Business Resource Center held two business services workshops in the last quarter for their local employer community. The workshops were entitled "Personal Success as an Entrepreneur," and "Harassment in the Workplace." Both were well attended.
      • AFWD in Lassen County assisted the Hungry Moose Restaurant in Susanville with business start-up services. The owners took possession of an old restaurant site, remodeled, and opened 11 days later. AFWD assisted with this task by providing human resource services, including job descriptions, recruitment assistance, labor law information, and the rewriting of their personnel policy. According to the owner, "The Alliance for Workforce Development, Inc. in Susanville has been the best that we have ever worked with!" Good job AFWD!
      • AFWD in Modoc County reports a successful Job Fair, held on April 24. Fourteen employers had booths on-site and 12 other companies placed materials for Job Seeker information. A variety of jobs were available, including sales, cashier, prison related positions, hostesses, roofers, carpenters, fire crew truck drivers, cooks, customer service positions, bus drivers, and clerical positions. More than 140 job seekers attended the Job Fair.
      • AFWD in Plumas County reports that they took their FUNdamentals of Customer Service on the road in May to another Local Workforce Investment Area--the Lake County Business Outreach Team. Evaluations were positive, and AFWD hopes to return to Lake County again in the near future.
      • The Business Resource Center of the Shasta PIC is continuing with their Business Seminar Series. The series continues to grow in attendance and popularity and is becoming recognized as a great value to the business community. During the last quarter, "Employee Privacy Issues" and "Wage and Hours Issues" were topics presented, where attendees could learn about practical solutions for compliance with employment and labor laws, and how to avoid legal liability. Attendance at these seminars has grown so much, that the Business Resource Center has had to abandon their original meeting site and find a larger facility. Keep up the good work!
      • STEP provided business expansion services to a local custom construction company. STEP assisted with job descriptions and a job listing. Then they accepted applications and prescreened them. Staff also participated in the interview process and served on the final selection committee. They also drafted a Drug Free Workplace Policy and Testing Procedure and arranged for preemployment drug testing. STEP is currently working on an employee handbook and safety policy for the company.
      • More than 40 businesses attended the one-half day seminar on Worker's Compensation sponsored by the Job Training Center of Tehama County on May 18. On June 3, business owners returned for another seminar on insurance options in Tehama County. On August 5, a seminar on Unemployment Information for employers is scheduled.
      • TOT (Trinity Occupational Training) has just started a temporary job placement agency. They are calling it STARRS and it will focus on finding temporary positions in the retail and clerical fields for Dislocated Workers. It is a pilot project to be run in June and July, and continued if successful.

   Please take a few minutes to read the reports from all nine counties. They are informative and fun. Our Community Coordinators are putting a lot of work into keeping you informed. We like to let them know how much we appreciate their efforts.

9. Business First Report

   The WIB and Governing Board adopted program policies and endorsed a program perspective that encourages the NoRTEC One Stops to assist local business as their primary customer. Local and NoRTEC wide efforts to achieve this goal will be presented as a regular agenda item.

   1. Web site Technology Initiative (Update)

      The total number of local business websites developed from our ongoing Website Initiative now total 143.

      Website Initiative 2003: http://www.websiteinitiative.org/

      Websites by County: /cb/pgb/business_websites.html
      
      AFWD in Lassen County has added the most recent websites (three). That brings the total for their county to 12. Shasta has the most with 34. Trinity is running a close second with 30.

   2. One Stop Business Services (Information)
      
      NoRTEC has a number of websites addressing business services:

      1. /business_services/home.html. An overview of the NoRTEC Business Services program.
         The following counties have developed local business services websites:
         1. Shasta - http://www.shastabrc.com/
         2. Siskiyou - http://www.siskiyouwc.org/ercFramset.html
         3. Tehama - http://www.jobtrainingcenter.org/kathy/employers.htm
         4. Trinity - http://www.trinitybusiness1st.com/
            
            
      2. /cb/nortec_public.html. This website has training opportunities for local business (Website Initiative, Internet Classroom), and a number of reports on business service usage, events and outcomes (Business Services Usage, Internet Learning Usage, Business Websites, and the Community Coordinator Reports).
         
         NoRTEC Business Service Presentations:
      3. HR Support - Gary Corderman will introduce Bonnie Myers, the HR Manager of Diamond Mountain Casino, Susanville.
      4. Business Startup - Bill Finley will introduce Autumn Starks, CostPlus-World Market General Manager, Chico.
10. State Performance Standards (ACTION)
    
    NoRTEC received $6,316 in Exemplary Performance Award funding from the State, which was for meeting all but one performance standard. (There was only $300,000 given out Statewide.)
    
    In order to have this funding modified into our contract with the State, NoRTEC must submit a corrective action plan, signed by the Chairs of the WIB and Governing Board, explaining why we missed a particular standard and what we are going to do in the future to make sure we do not miss it again.
    
    The corrective action plan is attached. It will be discussed in more detail at the meeting. Corrective Action Plan
    
    Recommended Action:
    
    WIB approval for Staff to submit the attached corrective action plan to the State.
    
    Governing Board approval for Staff to submit the attached correction plan to the State.
    
    
11. One-Stop Staff Training (Information)

    Brian Boyer, Kathy Garcia and Ginger Rayl, all members of the Tehama Business One Stop Services' Customer Service Training Team, tested and passed the NPCC (The National Professional Certification in Customer Service) exam on June 30 in Sacramento. The test is based on a set of standards developed by the Sales & Service Voluntary Partnership under the leadership of the NRF (National Retail Federation) Foundation. The team took the test to: 1) become nationally certified to strengthen their credentials as trainers: 2) to test their curriculum against the national standards; and 3) look into the type of testing used to identify key skills in customer service. We now have 28 certified through the Accreditation Exam for Staffing Professionals, and three through the NPCC.

Recommended Action:

The Program Committee recommends approval of the Fourth Quarter Program Committee Report

WIB approval of the Fourth Quarter Program Committee Report.

Governing Board approval of the Fourth Quarter Program Committee Report.

• FINANCE COMMITTEE REPORT (ACTION)

  B. Hamby, Finance Committee Chair, will present the Finance Committee report.

  1. PY 2004/2005 Funding (Information)

     Note: The PY 2004/2005 Funding amounts include unspent carry-forward funding from the 2003/2004 program year. The carry-forward amounts will not be finalized until service providers submit final 2003/2004 expenditure reports on August 20, 2004. Any differences in the final carry-forward amounts should be minor and will not significantly affect the total available funding for PY 2004/2005.

     NoRTEC currently has $9,763,370 in available funds for the PY 2004/2005 Program Year. Another $1,357,068 has been requested. If all the requested funds are received, NoRTEC will have $11,120,438 available for the 2004/2005 program year.

     This would be a $3,323,085 decrease in total NoRTEC funding from the PY 2003/2004 program year. The decrease in funding is primarily due to decreased availability of special projects funding from the State.

     Project	Funds Available from July 1, 2004	Additional Funds Requested	Total
     Adult	$3,731,837	$0	$3,731,837
     Youth	$3,097,593	$0	$3,097,593
     Dislocated Worker	$1,553,645	$0	$1,553,645
     Rapid Response	$99,619	$557,068	$656,687
     MCLAUS II	$0	$800,000	$800,000
     Nurse Workforce Initiative	$731,246	$0	$731,246
     North STARRS II	$538,624	$0	$538,624
     Incentive Funds	$10,806	$0	$10,806
     TOTAL	$9,763,370	$1,357,068	11,120,438

  2. Program Year 2004/2005 Contracts Summary (Information)

     Note: The PY 2004/2005 Contract Summary amounts includes unspent carry-forward funding from the 2003/2004 program year. The carry-forward amounts will not be finalized until service providers submit final 2003/2004 expenditure reports on August 20th. Any differences in the final carry-forward amounts should be minor and will not significantly affect the total available funding for PY 2004/2005.

     This report shows the total amount of funding in contracts with the State, the source of that funding and its allocation within NoRTEC for the 2004/2005 program year. As of July 1, 2004, NoRTEC had a total of $9,900,636 available in State contracts for the 2004/2005 program year. This report includes only amounts available in the 2004/2005 program year. Amounts expended in prior years are not included.

  3. Program Year 2003/2004 Funding (Information)

     For the recently ended 2003/2004 Program Year, NoRTEC had a total of $14,443,523 in available funds. This was a $2,855,657 decrease from the amount of funding available in PY 2002/2003. The decrease in funding is primarily due to congressional reductions in WIA funding and reduced availability of special project funding from the State.

     Project	Funds Available from July 1, 2003
     Adult	$3,677,165
     Youth	$3,609,251
     Dislocated Worker	$1,705,185
     Rapid Response	$875,583
     North STARRS II	$1,395,000
     MCLAUS	$965,670
     Nurse Workforce Initiative	$1,829,099
     Recission Replenishment	$253,474
     Groundfish	$57,990
     Incentive	$75,106
     TOTAL	$14,443,523

  4. Approval of PY 2003/2004 Four Quarter Financial Reports (Action)
     1. PY 2003/2004 Contracts Summary (Information)

        This report shows the total amount of funding in contracts with the State, the source of that funding and its allocation within NoRTEC for the 2003/2004 program year. As of June 30, 2004, NoRTEC had a total of $14,443,523 available in State contracts for the 2003/2004 program year. This report includes only amounts available in the current year. Amounts expended in prior years are not included.

     2. PY 2003/2004 Service Provider Contract Modifications

        This report shows the changes between March 31, 2004, and June 30, 2004, in the service provider contract amounts available for expenditure in the current program year. This report shows only contract amounts available in the current year. Contract amounts expended in prior years are not included.

        The contract modifications during this period were (1) the allocation of $17,262 of Rapid Response funding per county to pay for local Internet usage charges, MIS client tracking system maintenance and upgrades, and a staff training retreat; (2) and a small Federal recission of WIA Adult funds.
     3. PY 2003/2004 Program Expenditure Report

        NOTE: This report is preliminary, but is not expected to vary significantly from the final report.

        This report shows each subcontractor's total available balance for the program year (July 1, 2003, to June 30, 2004), the cumulative expenditures for the year ended June 30, 2004, and the remaining balance at June 30, 2004, for each specific funding title and program type. This report shows only contract amounts available in the current year. Contract amounts expended in a prior year are not included.

        All Service Providers met all the NoRTEC required expenditure rates for allocated funds at June 30, 2004. There are no items of concern at this time.

        Background: NoRTEC service providers are generally required to spend 80% of each year's allocation by the end of the program year. For the convenience of monitoring, NoRTEC uses a 20% per quarter expenditure rate as a guide for assessing expenditures throughout the fiscal year (20% first quarter, 40% second quarter, 60% third quarter and 80% final quarter). A corrective action plan (an explanation from the service provider of how they intend to utilize the funds by the end of the funding period) is automatically required from a service provider if quarterly expenditures vary by more than 10% from the quarterly target rate. The required expenditure rates apply to regular funding titles only and do not apply to special projects.

        "Excess" funds may be voluntarily returned by a service provider or recaptured by NoRTEC if it appears that a service provider will not be able to effectively utilize them by the end of the funding period. These funds are then redistributed to other NoRTEC service providers demonstrating a greater need, or returned to the State if they cannot be effectively utilized within the consortium. Early detection and correction of expenditure problems is important because it allows time for the funds to be put to good use by service providers in other consortium counties. In addition, the effective use of funds directly affects NoRTEC's ability to secure additional funding in future years.

     4. PY 2003/2004 NoRTEC Administrative Entity Expenditure Report

        NOTE: This report is preliminary, but is not expected to vary significantly from the final report.

        This report shows the Administrative Entity (AE) expenditures against the annual line item budget for the year ended June 30, 2004. At June 30, 2004, the NoRTEC Administrative Entity had expended 99% of its Operating budget, 29% of its Special Projects budget, 15% of its Capacity Building budget, and 98% of its Incentive Funds budget. The budget expenditures are detailed in the attached line item report.

        There are no items of concern at this time.

     5. PY 2003/2004 NoRTEC WIB and Governing Board Expenditure Report

        NOTE: This report is preliminary, but is not expected to vary significantly from the final report.

        This report shows the WIB and Governing Board expenditures against the annual line item budget for the year ended June 30, 2004. At June 30, 2004, the WIB/Governing Board expended 86% of its total budget.

        There are no items of concern at this time.

     Recommended Action:

     The Finance Committee recommends approval of the PY 2003/2004 Fourth Quarter Preliminary Finance Report.

     WIB approval of the PY 2003/2004 Fourth Quarter Preliminary Finance Report.

     Governing Board approval of the PY 2003/2004 Fourth Quarter Preliminary Finance Report.

  5. State Monitoring of NoRTEC (Information)

     During May 2004, NoRTEC received an on-site monitoring from EDD to review NoRTEC's financial management and procurement systems for compliance with all applicable federal and state laws, regulations, and policies related to the WIA program. The monitor spent three days in the NoRTEC administrative office. The monitor also visited the Butte PIC for a couple of hours.
     
     We have received the final monitoring report from the visit. There were no findings, and the State has concluded that NoRTEC is meeting the WIA requirements concerning financial management and procurement. As a result of the monitoring, staff did agree to modify the NoRTEC Procurement Policy as discussed below in the Policy Update section. There are no items of concern.

  6. Fiscal Monitoring of NoRTEC Service Providers By NoRTEC (Information)

     NoRTEC conducted on-site fiscal and procurement reviews of all NoRTEC service providers during April, May and June. The areas under review included accounting systems, allowable costs, cost categories, financial reporting, cost allocation, property management and procurement. The results of the reviews have been communicated to the service providers.

     There were no findings as a result of monitorings. NoRTEC's monitoring letters are available for review by interested WIB and/or Governing Board members. There are no items of concern at this time.
  7. Approval of PY 2004/2005 Dislocated Worker to Adult Funding Transfer Request (Action)

     WIA regulations allow the voluntary transfer of funding between the Adult and Dislocated Worker titles of up to 30% of either allocation. These transfers require WIB/Governing Board approval before a transfer request can be submitted to the State.

     The eligibility requirements for Adult funding are less restrictive than Dislocated Worker funding. Therefore, transferring funding from Dislocated Worker to Adult allows local programs additional flexibility to better match available funding levels with the eligible populations being served at the one-stop centers. The ability to transfer funds allows service providers the flexibility to better tailor local services to meet local needs.

     The WIB Finance Committee is recommending that NoRTEC staff request a transfer of the maximum 30%, or $502,862, from the Dislocated Worker program to the Adult program.

     Recommended Action:

     NoRTEC WIB authorize NoRTEC staff to request a transfer of $502,862 of PY 2004/2005 funding from the Dislocated Worker Program to the Adult program.

     NoRTEC Governing Board authorize NoRTEC staff to request a transfer of $502,862 of PY 2004/2005 funding from the Dislocated Worker Program to the Adult program.

  8. Acceptance of June 30, 2003, Single Audit Report (Action)

     The NoRTEC Administrative Entity has received its June 30, 2003, Single Audit Report. The audit was "clean," meaning that there were no findings, questioned costs, or recommendations resulting from the Audit. The WIB Finance Committee has reviewed the audit report and has recommended that the WIB accept the audit report.

     Copies of the Single Audit Report are available for review by interested members.

     RECOMMENDED ACTION:

     NoRTEC WIB acceptance of the June 30, 2003, Single Audit Report.

     NoRTEC Governing Board acceptance of the June 30, 2003, Single Audit Report.

  Recommended Action:

  The Finance Committee recommends approval of the Fourth Quarter Finance Committee Report.

  WIB approval of the Fourth Quarter Finance Committee Report.

  Governing Board approval of the Fourth Quarter Finance Committee Report.

• POLICY UPDATE (ACTION)
  1. Procurement Policy
     
     When NoRTEC first developed its Procurement Policy under WIA, it was written to assure that all purchases made with WIA funds are made only for necessary, high quality goods and services for a fair and reasonable price, and to ensure full and open competition among competitors. We followed federal guidelines and tried to keep the policy as simple as possible (the less paperwork, the better).
     
     Since its development, we have been monitored several times by the State of California, and have not had a finding.
     
     During the last monitoring visit by the State, however, the monitor expressed displeasure at what he considered to be an inadequate number of documented price quotes outlined in our small purchase procedure. (We required only one documented quote or price for any small purchase.)
     
     The State monitor said he thought we should have a tiered system of price quotes -- the larger the dollar amount of the purchase, the more quotes he recommended that we have. Staff were initially unwilling to change the policy, as State policy did not require us to do so. We were particularly disinterested when the monitor implied he thought we should document at least two quotes for any item purchased for $500 or more. (Current State policy defines a small purchase as anything under $50,000, and requires only one price or quote. Federal policy defines a small purchase as anything less than $100,000.)
     
     After discussion among NoRTEC staff, it was agreed that we would modify our policy of price quotes under the small purchase section of our policy:
     
     Items costing $0-$4,999 would require one documented price or quote
     Items costing $5,000-$24,999 would require two documented prices or quotes
     Items costing $25,000-$50,000 would require three documented prices or quotes
     
     The modified policy can be viewed here (changes show in red): Procurement Policy
     
     Recommended Action:

     WIB approval of the modified Procurement Policy, establishing the additional requirements noted above for Small Purchase Procedures.
     
     Governing Board approval of the modified Procurement Policy, establishing the additional requirements noted above for Small Purchase Procedures.

  2. Standards of Conduct
     
     Recent guidance issued by the State of California requires that NoRTEC update its WIB and Governing Board Conflict of Interest Policy. The purpose of this policy is to guide the WIB, Governing Board, and Youth Council members in the performance of their official responsibilities. Standards of Conduct Policy
     
     The changes to the policy are noted in red. The change is under the Conflict of Interest Section and reads as follows:
     
     No member of the WIB, Governing Board, or Youth Council or his/her delegate shall cast a vote on any matter which has a direct bearing on services to be provided by the member or his/her agent, or any organization which such member directly represents, or on any matter which would financially benefit such member, or the immediate family of such member, or any organization such member represents. No member may engage in any other activity determined by the Governor to constitute a conflict of interest as specified in the State plan. Members of the WIB and Governing Board, however, may vote on the Workforce Investment Act Five Year Plan.
     
     WIB and Governing Board members present at the meeting will each be asked to sign a Standards of Conduct form before the meeting is over.

     
     Recommended Action:
     
     WIB approval of the changes to the Standards of Conduct Policy, applicable to all WIB, Governing Board, and Youth Council members.
     
     Governing Board approval of the changes to the Standards of Conduct Policy, applicable to all WIB, Governing Board, and Youth Council members.

• STATUS OF FUNDING APPLICATIONS (UPDATE)
  1. Prior Approval

     The MCLAUS II application is still pending. This is funding for a number of plant closures, including SPI and Pactiv. Staff have received a number of assurances that approval is forthcoming.

  2. New Applications
     
     W.K. Kellogg Foundation Entrepreneurship Development Systems for Rural America Project. - We have been invited to participate in an application for the Kellogg Foundation's Entrepreneur Initiative. Kellogg is going to award four grants across the United States. The amount is $2,000,000 for each award. The purpose is to develop an "entrepreneurial culture" in rural areas. Staff has been working primarily with Jon Gregory, Golden Capital Network and Dan Ripke, Center for Economic Development, CSU, Chico. All together, there are about 26 partners in the developmental stage. It is expected that a number of these will drop out before the final submission of the application. The general approach will be a coordination of current independent efforts and a better sharing of information among those of us serving the small business/entrepreneurial community. It is unclear if NoRTEC will receive any funding, but our involvement is needed, and would bring positive recognition to NoRTEC if this project was selected as one of the four in the country.
     
     Recommended Action:
     
     WIB approval for NoRTEC to participate in an application to the Kellogg Foundation for the creation/enhancement of a Rural Entrepreneurship Development System.
     
     Governing Board approval for NoRTEC to participate in an application to the Kellogg Foundation for the creation/enhancement of a Rural Entrepreneurship Development System.
     
     Innovative Transitions Youth Grant - NoRTEC is being asked to support a couple of applications for funding for the "Innovative Transitions Youth Grant," a project for youth with disabilities. The applications require local WIB support. They are being submitted by Shasta (Shasta PIC), and a partnership of Del Norte and Trinity (RHS and TOT).
     
     Recommended Action:
     
     WIB approval for NoRTEC to support local applications for the "Innovative Transitions Youth Grant."
     
     Governing Board approval for NoRTEC to support local applications for the "Innovative Transitions Youth Grant."
• EXTENDED WIB/GOVERNING BOARD MEETING (ACTION)
  
  Staff is proposing the WIB and Governing Board schedule a one and one-half day meeting at the Mt. Shasta Resort toward the end of October for a Board orientation, program discussion, and regular meeting.
  
  Recommended Action:
  
  WIB approval of scheduling a one and one-half day meeting at the Mt. Shasta Resort toward the end of October 2004, for a Board orientation, open Question and Answer, program discussion, and regular meeting.
  
  Governing Board approval of scheduling a one and one-half day meeting at the Mt. Shasta Resort toward the end of October 2004, for a Board orientation, open Question and Answer, program discussion, and regular meeting.
• OLD BUSINESS (INFORMATION)

  Old Business items may be brought up for discussion, at the pleasure of the NoRTEC WIB/Governing Board members.

• NEW BUSINESS (DISCUSSION)
  1. WIB and Governing Board - October 27-28 or 28-29, 2004, at the Mt. Shasta Resort.
  2. Additional New Business items may be brought up for discussion, at the pleasure of the NoRTEC WIB/Governing Board members.
• ADJOURNMENT