Copies of the minutes from June 25, 1998, are attached: Minutes
There was not a quorum of the Governing Board, so only the PIC will be asked to approve the Minutes from this meeting.

RECOMMENDED ACTION: PIC approval of the minutes, with revisions if needed, as mailed.

RECOMMENDED ACTION: PIC and Governing Board approval of the agenda, with revisions if needed, as mailed.

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

A new private sector PIC member for Plumas is needed to replace Joe Garner. B. Dennison, G. Corderman and J. Madden have been notified. Dave McCoy is resigning in favor of being replaced by his boss, Richard Camillieri, Northern Regional Director, EDD. The Executive Committee is recommending that the "floating" PIC seat be assigned to EDD, and that the "Rehabilitation" seat be assigned to Tehama County.

RECOMMENDED ACTION: NoRTEC Governing Board appointment of the following individuals to serve on the NoRTEC Private Industry Council, effective October 29, 1998.

There was not a quorum of the NoRTEC Governing Boartd at the June 25, 1998, meeting. A consent agenda of the action items from this meeting is attached. Consent Agenda

RECOMMENDED ACTION: Governing Board approval of the consent agenda of action items from the June 25, 1998, meeting, with revisions if needed, as mailed.

1. PY 1997/1998 YEAR END PROGRAM REPORTS (ACTION)

Performance Standards (Title II) - PY 1997/98 - NoRTEC met all six standards. The Lassen/Modoc/Plumas Job Training Center, STEP, and the Job Training Center in Tehama County met all six standards. Rural Human Services and TOT met four of the six standards. All programs met the contract objectives necessary to be eligible for contract renewal for PY 1998/99.

Performance Standards (Title III) - PY 1997/98 - NoRTEC and each of the five programs met both standards for Title III. While there are no "sanctions" for missing these performance standards, NoRTEC would be required to submit a corrective action plan and our credibility for special projects would be strained if we missed one or both standards.

Employer Assisted Benefits and Model Out-of-School Youth Programs - Meeting one or both of these performance goals brings additional 5% Incentive funding into NoRTEC. NoRTEC exceeded both of these performance goals in PY 1997/98, and will receive somewhere between $10,000-$15,000 for doing so. This funding will be awarded to the programs based on their contribution to achievement of these goals. As there are no sanctions to SDAs if they fail to meet one or both goals, there are no sanctions for the programs if they miss one or both (other than the fact they do not receive a share of the additional incentive funding).

In-School Versus Out-of-School Service Ratios - The JTPA requires that a minimum of 50% of the youth served in the Title II-C program be "out-of-school". Service Providers generally contract for a minimum of 60% "out-of-school" to assure that the SDA meets this goal. NoRTEC met the minimum level of service to during PY 1997/98.

Federally Defined Barriers to Employment Ratios - The JTPA requries that a minmum of 65% of the Adults and Youth served in the Title II-A and II-C programs have one or more "federally defined" barriers to employment. Service Providers generally contract for 100% service to such individuals. NoRTEC exceeded the minimum 65% service levels to all titles during PY 1997/98.

Employment Report - Attached, for the members information, is data on placements in unsubsidized employment broken out by county and by funding title.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of the PY 97/98 Year End Program Report.

2. PY 1998/1999 First Quarter Program Reports (INFORMATION)

Data regarding program performance for the first quarter of PY 1998/99 is statistically insignificant at this time. Only one month of follow-up data has been received from UC Berkeley for the Title II-A Adult program, and there is very little performance data to report in the other programs.

Performance data is continually updated and available on-line for board members and the service providers to review: 1998/99 Performance Standards

3. Program Monitoring

On-site program reviews for NoRTEC service providers were conducted by staff during July-August 1998. The primary purpose of these visits was to monitor youth and adult participant records for adequate documentation of various enrollment and eligibility factors; verify Title II-C Youth performance for PY 97/98; and visit Title II-B Summer Youth woksites to assure that innovative and beneficial SCANS-driven enrichment activities had been incorporated into the summer youth experience.

Based upon our review, for the most part, Service Providers are meeting applicable JTPA regulations and NoRTEC-specific program requirements concerning the administration of their adult and youth programs.

The only weak area observed during the review was the documentation of the Title II-C Youth outcomes. This documentation is what the State uses during their on-site "data validation review" to substantiate NoRTEC's claim of positive performance. In several of the programs, some of the participant files reviewed were missing documentation required for this validation process. Fortunately, the missing documentation was due to sloppy record keeping rather than a flaw in program design. The paperwork trail was cleaned up prior to the State's visit.

4. Summer Youth Program (1998)

Technology was again the focus of NoRTEC's summer youth program. Following are some interesting links to web sites created by crews in our seven county area:

Plumas Job Training Center (web site for the Roundhouse Council)

Job Training Center of Tehama County (web site for the Summer Youth Program)

Trinity Occupational Training (web site for the Summer Youth Program)

In Del Norte County, the youth did not develop web sites this year, but focused their efforts on the building of computers (from scratch) for the Rural Human Services Learning Lab, and learning about computer photography. The youth were heavily involved in the Del Norte County Fair and won eighteen (18) blue ribbons for computer photography. In addition, the State has given the program a special award for the "educational project" aspect of the program, the first of its kind for the State of California. The California Awards Committee is also considering creating a new category of competition based on this summer youth project. Dennis Conger, Executive Director of Rural Human Services, stated, "Not bad for a population once described as a rounding error for California statistical purposes." Examples of this project will be shared with members at the meeting, if practicable.

5. Flood 97 Temporary Job Creation Project

The Flood 97 temporary job creation project ended on June 30, 1998. NoRTEC put 709 unemployed individuals to work for up to six months earning a competitive wage. Over $7.4 million dollars were expended on this project. Service by county is as follows:

Del Norte County	53
Lassen County	94
Modoc County	63
Plumas County	87
Siskiyou County	126
Tehama County	54
Trinity County	232
NoRTEC	709

6. Flood 98 Temporary Job Creation Project

The Flood 98 temporary job creation began in early March 1998. The program is being operated in three of NoRTEC's seven counties. The programs are utilizing the funding to assist other public and private non-profit agencies with clean-up after the floods/storms of 1998. As of October 15, 1998, NoRTEC has spent almost $2,000,000 serving 195 workers:

Del Norte County	40
Tehama County	47
Trinity County	108
NoRTEC	195

 

NoRTEC has been allocated $3.5 million to complete this project. The project is scheduled to run through June 30, 1999.

7. Title II-C Youth Data Validation Review

The Evaluations Division of EDD conducted an on-site review of employability enhancement outcomes in each of the NoRTEC county programs. All passed with positive statements from the State staff. Congratulations to all who contributed to another successful outcome.

8. Case Manager Retreat

The annual NoRTEC retreat was held at the Mt. Shasta Resort on August 26-28, 1998. The retreat was for front-line staff that work directly with participants. The focus this year was on OJT (on-the-job training). A copy of the agenda can be viewed by accessing the following web site: Retreat Agenda

9. Paraprofessionals

Congratulations to the first seventeen NCEN One Stop based case managers to be certified by the California Registry as "Registered Career Paraprofessionals" (RCP). Their achievement helps to enhance and confirm the professional quality of services being provided to employers and job seekers in the NoRTEC One Stop Employment Centers. Click here for more infomation: Paraprofessionals

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of the Program Committee report.

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

1. PY 97/98 Year End Finance Reports (ACTION)


1. PY 97/98 Contracts Summary

This report shows the total amount of funding in contracts with the State, the source of that funding and how it was allocated within NoRTEC for the 97/98 program year at June 30, 1998. At June 30, 1998, NoRTEC had a total of $16,275,404 available in contracts for the 97/98 program year. This represented a 17% increase over the PY 96/97 year end total of $13,965,566. This report includes only amounts available for expenditure during the 97/98 program year. Amounts that were expended in prior years are not included.

2. PY 97/98 Service Provider Contract Modifications


This report shows the changes between March 31, 1998, and June 30, 1998, 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 a prior year are not included

The sigificant contract changes were net increases of $152,763 in '97 Flood Project funding, $2,706,000 in '98 El Nino Flood Project funding, and $209,000 in Rapid Response/Community Coordinator funding. These funds were allocated to service providers from available funds based upon need. The attached report details the allocation.

3. PY 97/98 Program Expenditure Report

This report shows each subcontractor's total available balance for the program year (July 1, 1997, to June 30, 1998), their expenditures for the year ended June 30,1998, and their remaining balance at June 30, 1998, for each specific JTPA 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.

NoRTEC service providers are generally required to spend 90% of each year's allocation by the end of the program year. For the program year ended June 30, 1998, all of our service providers met the required expenditure rate in every funding title. This is the first time in recent memory that every service provider was in compliance at year end. The service providers are to be congratulated for a fine job of utilizing available funds and monitoring their expenditure levels to assure compliance with required expenditure rates.

4. PY 97/98 NoRTEC Administrative Entity Expenditure Report


This report shows the Administrative Entity (AE) expenditures against the annual line item budget for fiscal year ended June 30, 1998. For program year 97/98, the NoRTEC Administrative Entity expended 103% of its budget.

NoRTEC exceeded its budget because of the accrual of a provisional charge of $17,692. As a governmental entity, NoRTEC is exempt from FICA (Social Security) payroll withholding. Because of this exemption, the assumption was that NoRTEC was also exempt from medicare withholding. It now appears that NoRTEC is not exempt from Medicare withholding. As a result, Medicare taxes are now being withheld from staff member's paychecks. The provisional charge of $17,692 is for the uncollected Medicare withholding in prior years. At this time, staff has not determined if the $17,692 (or some lesser amount) will ultimately be due to the IRS. Because of the possibility that this amount may ultimately be payable, the $17,692 has been accrued pending the resolution of this matter. If payable, this would be a one-time charge. Sufficient funding is available, if necessary, to cover this charge.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of up to $17,692 for payment of one-time Medicare withholding charge.

5. PY 97/98 NoRTEC PIC and Governing Board Expenditure Report

This report shows the PIC and Governing Board expenditures for the fiscal year ended June 30, 1998. For PY 97/98, the PIC/GB had expended 60% of its total budget, primarily due to minimal legal fees. There are no issues of concern at this time.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of the PY 97/98 Fourth Quarter Finance Report.

2. PY 98/99 (Current Year) Finance Reports (ACTION)

NoRTEC currently has $7,205,715 in available funds. Another $4,856,668 has been requested or is anticipated, making a total potential available funding amount of $12,062,383 for the program year July 1, 1998, to June 30, 1999. This amount is less than the amount available in the prior year primarily because of the expiration of the $7.5 million TJC Storm Project.

1. PY 98/99 Contracts Summary

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 98/99 program year at September 30, 1998. At September 30, 1998, NoRTEC had a total of $7,205,715 available in contracts for the 98/99 program year. This report includes only amounts available in the current year. Amounts expended in prior years are not included. This report also lists only fully executed contracts.

2. PY 98/99 Service Provider Contract Modifications


This report shows the changes between July 1, 1998, and September 30, 1998, 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 a prior years are not included

The significant contract changes during the period were the additions of PY 98/99 contract allocations. These additions included the regular allocated titles (IIA, IIC, IIA Older Worker, and III). In addition, there was the allocation of $591,187 of Rapid Response funding, and new funding of $200,000 per county for Basic Readjustment services. These funds were allocated to service providers from available funds based upon need. The attached report details the allocation.

3. PY 98/99 Program Expenditure Report

This report shows each subcontractor's total available balance for the program year (July 1, 1998, to June 30, 1999), their expenditures for the quarter ended September 30,1998, and their remaining balance at September 30, 1998, for each specific JTPA 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.

NoRTEC service providers are generally required to spend 90% of each year's allocation by the end of the program year. For the convenience of monitoring, NoRTEC uses a 25% per quarter expenditure rate as a guide for assessing expenditures throughout the fiscal year (25% first quarter, 50% second quarter, 75% third quarter and 100% 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.

"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.

The funding titles in bold italics are those titles in which a service provider is not within a 10% variance of the quarterly target rate (25% at September 30, 1998). For each of these titles, a corrective action plan has been requested. There are no items of concern at this time.

4. PY 98/99 NoRTEC Administrative Entity Expenditure Report

This report shows the Administrative Entity (AE) expenditures against the annual line item budget for the 98/99 program year ending June 30, 1999. For the quarter ended September 30, 1998, the NoRTEC Administrative Entity expended 22% of its operating budget, 24% of its special projects budget, and 84% of its capacity building budget.

There are no items of concern at this time.

5. PY 98/99 NoRTEC PIC and Governing Board Expenditure Report

This report shows the PIC and Governing Board expenditures against the annual line item budget for 98/99 Program Year ending June 30, 1999. For the quarter ended September 30, 1998, the PIC/GB had expended 5% of its total budget.

There are no issues of concern at this time.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of the PY 98/99 First Quarter Finance Report.

B. Finley of the Butte PIC submitted an application under the name of NCEN for the three SDAs of Butte, NCC, and NoRTEC. NoRTEC requested approximately $200,000/county for two years ($400,000 total/county) to provide "basic readjustment" services (i.e., everything except actual participant training or support services). The grant was funded for a single year, for a total of $1,647,059. These funds will essentially be "one stop" funds under a different name, although more restrictive on infrastructure spending.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of a NoRTEC application for $1,647,059 to provide needed participant and related services through the NoRTEC one stop employment centers.

In May 1998, the California State Waiver Plan for the JTPA program was approved by the US Department of Labor (DOL). All waivers are effective July 1, 1998, through June 30, 1999. There are ten (10) waivers; three (3) of these are mandatory statewide waivers which must be implemented by all Service Delivery Areas (SDAs). Selection of any or all of the other seven (7) waivers is a local SDA's option. Click here for a summary, a copy of the authorizing language from DOL, and a copy of the limitations on the use of the funds for employment generating activities: /cb/pdm/waiversum.html

The first three (3) of these are mandatory statewide waivers which must be implemented by all Service Delivery Areas (SDAs):

1. Reduce the regular Title II-A, II-B, II-C, and III expenditure cost categories to two (Administration and Program); from the current three for Title II programs (Administration, Direct Training, and Training Related/Support), and the current four for Title III (Administration, Retraining, Basic Readjustment, Needs Related/Support).


2. Reduce the current Youth Entered Employment Rate and Youth Employability Enhancements Rate to one Youth Positive Termination Rate performance standard (allowing either a job or an enhancement to count toward the new "positive termination rate" standard).


3. Replace the current Title III post program telephone follow up calls by Berkeley to gather job retention and related information with Unemployment Insurance (UI) base wage file matching.

1. Allow "stand-alone" job search, job search assistance and work experience for all youth and adults; as long as each individual's objective assessment and case records document that enrollment in training was not needed.


2. Allow post termination services and training, including on-the-job training (OJT), for up to one year for all regular JTPA funding titles.


3. Exclude Social Security Disability Income (SSDI) as "income" in determining eligibility for Title II services.


4. Waive the requirement that youth on-the-job training sites must pay a minimum of the average adult OJT wage.


5. For the Youth Employability Enhancement outcome, allow Pre-employment/ Work Maturity skill attainment for 16-21 year old youth as an additional choice of competencies to attain a Remained/Returned to school outcome (currently limited to a choice of either Basic Education skills or Job Specific skills competencies).


6. Allow limited use of JTPA Title II and Title III funds for employment generating activities, as long as they are for activities which directly benefit JTPA participants by resulting in training or job placement for such participants.


7. Allow JTPA program income tobe used for any allowable JTPA purpose regardless of the JTPA funding Title or "cost category" under which it may have been earned.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of NoRTEC implementing only the three mandatory JTPA program waivers for the current Program Year, July 1, 1998, to June 30, 1999.

At their prior meetings, the NoRTEC PIC and Governing Board approved a number of applications to be submitted for funding by NoRTEC staff.

1. El Nino

Staff initially submitted an application to the State for $5,000,000 for Temporary Job Creation funds to assist the federally declared "El Nino" disaster counties in NoRTEC. This amount was reduced to $3,500,000 when Siskiyou County was not so declared; leaving reasonable funding for the remaining counties of Del Norte, Tehama, and Trinity. Full funding was approved.

2. Welfare to Work

All of the NoRTEC consortium member county Boards of Supervisors signed off on the Welfare-to-Work (WtW) application and plan that was sent to the State, naming NoRTEC the fiscal agent and administrative entity for these funds ($1,179,504 for year one). The State approved the NoRTEC WtW plan, with a contract to be released soon setting a start date of June 30, 1998, and an ending date of June 30, 2000.

Each of the counties (the local JTPA, Welfare and EDD partners) has submitted their local operational plan, which will be incorporated into their individual contracts with NoRTEC for the WtW funds.

A wide range of WtW information is posted on the "NCEN Welfare-to-Work" page: /cb/wtw/wtw_index.html

3. One Stop Implementation (ACTION)

The NCEN application for One Stop Implementation funding was approved by the Governor for funding at $450,000. NoRTEC was named the fiscal agent and administrative entity for these funds, which are for the thirteen counties in the three SDAs of Butte, NCCC, and NoRTEC. The funds are to be used for setting up one 10 station computer technology lab in each of the counties ($320,000) and providing regional staff development and training ($130,000).

The initially requested amount was for $900,000, but the we were told the reviewers did not think the Partnership Conference was worthwhile, so the amount was cut in half. We were initially told we could apply for the remainder next year (which would have been better than receiving it all this year anyway), but were recently told that a "cap" had been put on the NCEN application, so we could receive no more funding. Staff would like to apply for the remainder, and see how the "cap" is explained. The funding, if received, will be to repeat what we did this year, with Konocti and technology.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board approval of of staff submiting an application for the remainder of the One Stop Implementation grant funding of $450,000, to be administered by NoRTEC on behalf of NCEN.

4. ECOSYSTEM FOLLOW-UP

NoRTEC received the additional $95,000 in Rapid Response funding needed by STEP to conduct the follow-up labor market study (opportunities and needs) for the federally funded Ecotech Program that was one of the initial CERT supported projects. These funds will go to STEP (Siskiyou County), to be combined with a grant from the Department of Forestry to broaden the study and report to include history, authorizing rules and regulations, and recommendations for the future.

A number of the NoRTEC PIC members attended the last NCEN meeting, which was held just prior to the Executive Committee meeting in the Chico one-stop facility this past June. Their next meeting is scheduled for the Konocti conference shortly after the NoRTEC PIC and Governing Board meeting. NCEN Agenda, October 29, 1998

NoRTEC is responsible for appointing an individual from the NoRTEC PIC to represent Labor. Jon Cross represents Labor on the NoRTEC PIC, and has agreed to sit on the NCEN Board.

RECOMMENDED ACTION: NoRTEC PIC and Governing Board appointment of Jon Cross, NoRTEC PIC member, to represent Labor on the NCEN Board.

The President signed into law the "Workforce Investment Act," which will replace the JTPA by July 1, 2000, at the latest, and July 1, 1999 at the earliest (next summer, or the summer after). Some initially interesting features:

1. Current SDAs of 500,000 plus population are automatically designated. SDAs of 200,000 plus may be designated if they have exceeded performance standards and demonstrated fiscal integrity for the prior two years.


2. A One Stop Delivery system is mandatory, with at least one facility in each area physically housing all the programs authorized under this new Act: mainly us, EDD, Veterans, Older Worker, Rehabilitation, Carl Perkins Vocational Education. Other partners may be invited to participate. The One Stops are to provide core employment-related services and access to other employment and training services.


• Youth - Youth programs are to include an objective assessment of each youth's skill levels and service needs, a service strategy, preparation for postsecondary educational opportunities or unsubsidized employment (as appropriate), strong linkages between academic and occupational learning, and effective connections to intermediaries with strong links to the job market and employers. The other required elements of youth programs include: tutoring, study skills training and instruction leading to completion of secondary school, including dropout prevention; alternative school services; adult mentoring; paid and unpaid work experiences, including internships and job shadowing; occupational skills training; leadership development opportunities; supportive services; follow-up services for not less than 12 months as appropriate; and comprehensive guidance and counseling. In addition, each program must provide summer employment opportunities that are directly linked toacademic and occupational learning.


• Adult - Adult and Dislocated programs are to include job search and placement assistance, including career counseling; labor market information identifying job vacancies, skills necessary for occupations in demand, and relevant employment trends in the local, regional and national economies; initial assessment of skills and needs; provision of information on available services and programs; and follow-up services to assist in job retention. Intensive services and training are to be provided on an as needed basis. Intensive services include comprehensive assessments, development of individual employment plans, group and individual counseling, case management and short-term prevocational services.


3. New: The Boards of Supervisors, or their Joint Powers Agency, are the Grant Recipient. The Boards of Supervisors appoint the members to the Workforce Development Boards (WDB, the new PICs), which are pretty much like the current PICs. The WDB is responsible for developing the local five year plan to be submitted to the Governor for approval, designating local one-stop operators, designating eligible providers of training services, negotiating local performance measures, and assisting in developing a statewide employment statistics system. New: The WDB cannot operate the One Stops or provide training services without the Governor's approval. New: A Youth Council is to be established in each local area as a subgroup of the WDB, to provide youth program planning, youth service coordinaton and advice to the WDB on youth programs and service provision.

W. Jones (NoRTEC attorney) and C. Brown met with California State officials to discuss how best to approach DOL with a request to waive the debt incurred by the PJTC Embezzlement. We agreed that:

1. PJTC will continue to pursue aggressive debt collection against the embezzler (B. Toomey), to include trying to obtain a lien against her current and future assets, and sending routine billings to her home and to her probation officer.


2. PJTC will send the $25,000 (+ interest) they received from their insurance carrier, and the $150 monthly checks received from B. Toomey (court ordered amount as a condition of her three year probation), to NoRTEC. NoRTEC will forward these checks to the State for sending to DOL.


3. NoRTEC will continue to keep their Administrative Law Judge appeal alive but on hold, indefinitely, pending a more formal and agreeable resolution.


4. The State will not issue a final determination, pending the outcome of NoRTEC's appeal, resulting in an indefinite stay of:
   1. formal debt collection procedures against NoRTEC or PJTC, and
   2. the possibility of debarment for PJTC.
   
   

Old Business items may be brought up for discussion, at the pleasure of the Committee members.

1. Upcoming Meeting Schedule

PIC and Governing Board - January 22, 1999

PIC Committees - December ?, 1998

2. Additional Business Items may be brought up for discussion, at the pleasure of the PIC/GB members.