Central Pennsylvania Workforce Development Corporation

Workforce Investment Board (WIB) and Local Elected Officials (LEO) Board Joint Meeting March 12, 2014 The Central Pennsylvania Workforce Development Corporation’s Board of Directors (Workforce Investment Board (WIB) and the Local Elected Official (LEO) Board held a joint meeting on Wednesday, March 12, 2014, at Union County Government Center, Lewisburg, Pennsylvania.

WIB Members Attending: Harry Adrian Jay Alexander Cynthia Bagwell James Beamer Tracy Brundage Annette Camuso-Sarsfield David Capperella Fred Gaffney Dennis Greenaway Kaylynn Hamilton Eric Hussar Sandra Lauver Teri MacBride

Michele McCardle Chris Minnich Mark Morgenfruh Jim Nemeth Jim Stopper Susan Swartz Todd Taylor Dave Zartman

LEO Board Members Attending: Malcolm Derk Dave Kovach Tony Mussare Otis Riden Rick Shoch Pete Smeltz

LEO Board Members Excused: Steve Dershem Trevor Finn John Mathias

WIB Staff Attending: Vina Davis Sandie Fairman Korrie Lucas Erica Mulberger Cheryl Reish Nikki Richter Robert Roush

Guests Attending: Megan Bair Deborah Barrow Liz Biddle Lisa Bruschi Adele Craig Lisa Kipple Mike Glazer Barry McLaughlin Becky Rice Sue Snyder

WIB Members Excused: Devin Barta Steve Bennett Susan Everett Dean Girton

Phillip Johnson John Kurelja Dan Long Robyn Long Sam Marte Bob McDaniel Rob Postal Russell Reitz Billy Robinson Dennis Robinson Darla Shick Harry VanSickle

Call to Order and Welcome Dave Zartman, WIB Chair, called the meeting to order at 10:01 a.m. Mr. Zartman welcomed Mike Glaser, representing U.S. House Representative Glenn Thompson, and Lisa Kipple representing PA House Representative Linda Schlegel Culver to the meeting. Mr. Zartman acknowledged and thanked the following WIB members for volunteering as new Committee Chairs; Jay Alexander, Wayne Township Landfill, Youth Council, Jim Beamer, International Brotherhood of Electrical Workers, Policy & Performance, and Mark Morgenfruh, Larson Design Group, Employer Strategies. Commissioner Otis Riden, LEO Board Chair, welcomed all the members to the meeting.

Public Comment Lisa Bruschi, Sr. Program Manager from Henkels & McCoy (H&M) thanked the WIB for the opportunity to serve youth in the region. Beginning in January Henkels & McCoy contracted with CPWDC to provide remediation services in literacy/numeracy to 45 youth who were identified as basic skills deficient throughout the region. As of February, H&M served 17 youth providing approximately 200 hours of remediation with three youth increasing at least one educational functional level. Henkels & McCoy has staffed three teachers to meet the needs of the hard to serve youth in the region, and continues to work with CSO and TIU on referrals.

Presentation: Equity and What It Means for the Workforce Elizabeth Biddle, Project Manager for the office of Outreach for K-12 at Pennsylvania College of Technology did a presentation titled “Equity and What It Means for the Workforce”. Ms. Biddle thanked Erica Mulberger and the WIB for the opportunity to present the data and discuss the trends in equity and the barriers youth will face based on gender; and who can apply and get certain jobs. Ms. Biddle provided the board with copies of thet “Women in STEM Occupations” presentation. Following the presentation, members of the WIB and LEO Boards engaged in a question and answer session about equity in the workforce and the potential impact on the Central Region.

PA CareerLink® Consortium Update ®

Susan Swartz reported on behalf of the Consortium. Susan invited all WIB members to visit the PA CareerLink ® site in their region. Susan reported there were over 24,000 visits to the PA CareerLink sites and over 8,000 ® individuals were provided services throughout the region. The PA CareerLink sites are preparing for their spring job fairs.

Rapid Response services were provided for Merck, Crafco, Shop Vac, Chroma Glass, American Customer Care and Windsor Foods. Woodcraft Industries in Bellefonte has closed, laying off 25 individuals. It was noted that Merck layoffs were caused by the closing of a division. ®

Senator Corman recently toured the PA CareerLink site in Mifflin County. Senator Corman met with ® management from local businesses utilizing the PA CareerLink services and former participants who spoke about their experience and outcomes. Mifflin County hosted a Chamber of Commerce meeting inviting over 73 employers to attend. The WIB suggested that we begin to look systemically as to why companies (manufacturing) are leaving and what can we do to prevent this from occurring.

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WIB and LEO Board Joint Meeting – March 12, 2014

WIB and LEO Board Action Items 

WIB Non Consent Agenda and Committee Reports

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Dennis Greenaway motioned to approve the minutes from the December 4, 2013 joint WIB/LEO Board meeting. Eric Hussar seconded the motion. The motion was unanimously approved (21 members voted in favor).

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Teri MacBride motioned to approve the March 12, 2014 Consent Agenda Action Items. Chris Minnich seconded the motion. The motion was unanimously approved (21 members voted in favor).

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Dave Capperella motioned to adopt the Resolution to call the 2014 Annual Meeting of the Members. Jim Beamer seconded the motion. The motion was unanimously approved (21 members voted in favor).

Audit/Finance Committee Erica Mulberger, CPWDC Acting Executive Director, provided updates. FY 2014 financial reports through December 31, 2013 were included in the board booklet. The overall expenditure rate should be 50% and the Central Region has expended $2.9 million or 28% of the available budget. CPWDC’s operational budget is 43% expended which is under the projected 50%. This is partially due to staff vacancies and the timing of when staff attends training events. The Consolidated Resource Sharing Agreement ® Budget (RSAB) report shows the expenses for all of the PA CareerLink sites. CPWDC has contributed $260,000 towards the RSAB to date. The Subcontractors’ Budget to Actual report shows that TIU is on target to fully expend their current budget by the end of the fiscal year with an expenditure rate of 50.82%. CSO has spent 39.7% of their current operating budget. The Training Obligation report through March 7, 2014 shows that 54 participants received individual training accounts (ITAs) for classroom training and 23 participants received onthe-job training (OJT). CPWDC has set aside additional funds for support services like transportation and child care for the Dislocated Worker Training National Emergency Grant. H-1B STEM training funds are almost fully obligated, and CPWDC is close to meeting the enrollment goals of 170 unique unemployed and underemployed participants and working towards enrolling 30 incumbent workers. ®

The leases and agreements for all of the PA CareerLink sites, except Mifflin County, will expire on June 30, 2014. Today’s Consent Agenda contains motions to extend all of the current leases for an additional year through June 30, 2015 and to begin negotiations for additional space at the current Lock Haven and Bellefonte sites. A motion was also approved to extend the agreement with South Hills School of Business in State College. The lease extensions will give CPWDC the opportunity to review a full year’s worth of data and assess the space and evaluate the need to relocate and determine the effectiveness of the hub/affiliate model. Susan Swartz informed the WIB that personnel in Centre County are shared between two locations and that stretching staff may be impacting services. Erica reported that CPWDC will have more carryover into next year than planned because CPWDC was not ® impacted by sequestration as projected and expenditures are low for CPWDC, the PA CareerLink sites, training, and CSO. With the current projections, CPWDC will have more than $2 million dollars in carryover into next year. To reduce the amount of carryover going into next year the Audit/Finance Committee approved a motion that would make $1.5 million in WIA Adult, Dislocated Worker and Youth funds available to other Committees to identify new, innovative and effective ways to expend the carryover funds. Erica and Dave Zartman asked the board to “put on their thinking hats” and provide ideas on how the funds can be utilized throughout the region. 3

WIB and LEO Board Joint Meeting – March 12, 2014

Employer Strategies Committee Mark Morgenfruh, Employer Strategies Committee Chair, noted the Committee is scheduled to meet on March th 14 to solidify the direction of the Committee, identify the roles of Committee members, CPWDC staff and subcontractors, and discuss some of the current and potential funding available to enhance the Central Region’s connections with employers. Governance Committee Chris Minnich, Governance Committee Chair reported the Committee met via conference call on March 7, 2014. All WIB members received a copy of the Statement of Financial Interest form that must be completed by all members appointed to the Local Workforce Investment Board. Currently there are 4 vacancies on the WIB. The vacancies include one private sector vacancy from both Montour and Centre Counties and two regional private sector representatives. Chris reported that thirteen WIB members are up for reappointment for another 3 year term effective July 1, 2014. Members up for reappointment must complete the reappointment application. The Governance Committee will review all the reappointment th applications and provide the LEO Board with recommendations prior to the June 11 Annual Meeting of the Members. The Governance Committee discussed ideas around the $1.5 million of unallocated funding and provided the following suggestions; additional soft skills and customer service training for job seekers, employer forums around workforce development, reaching out to schools to design hands on interactive programs, and upgrading the Central Region’s workforce technology. Local Management Committee Korrie Lucas, Sr. Workforce Coordinator, reported the committee met on January 28, 2014. The LMC continues to monitor performance and achievement of the benchmarks linked to attainment of performance based funds. Included in the board booklet is the EARN Placement and Performance Based Funds Distribution report detailing the performance funds earned to date by CSO and TIU. Funds are distributed to CSO and TIU according to the formula calculated by the LMC and ratified by the WIB.  PY12 Placements (July 2012 - June 2013) 187 placements with an average placement rate of 39%  PY13 Placements to date (July 2013 - August 2013) 11 placements in July, a placement rate of 26.8%  PY12 Retentions to date (July 2012 – December 2012) 22 retentions from August- October, with an average retention rate of 22% The increase in hours worked performance based funds should have been released in September 2013 but there was a delay in processing from the Department of Public Welfare (DPW). DPW will release funds over the next few weeks. The LMC asked both subcontractors to provide an update on how the performance money is being used to enhance services. CSO reported using performance funding for all cost associated with transporting participants who otherwise would be unable to participate. TIU has used a majority of performance funding to cover the cost of a full-time employee in Bellefonte dedicated to EARN. CSO submitted a request to add an additional full time EARN staff employee in Lycoming County. The LMC reviewed CSO’s revised plan and supported CSO’s request to add an additional staff member ensuring the EARN program in Lycoming County had the resources, and staff to serve participants. CSO hired a full-time person to th serve EARN in Lycoming County starting on March 19 . The next LMC meeting is scheduled for April 15, 2014.

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WIB and LEO Board Joint Meeting – March 12, 2014

Personnel Committee th Teri MacBride, Personnel Committee Chair, reported the committee met via conference call on January 9 . The committee approved seven motions that were included on today’s Consent Agenda. The Committee approved a fee-based fiduciary agreement for CPWDC’s 401k plan to allow one of the advisors with AXA Advisors to make recommendations on the investments of the plan so the responsibility doesn’t fall entirely on the CPWDC Executive Director as it does under the current plan. The Committee discussed and reviewed updated employee job descriptions that were reviewed by CPWDC’s legal counsel to ensure they were in compliance with the exempt and non-exempt classification status under the Fair Labor Standards Act. As part of this review, it was determined that six of the job descriptions should be reclassified as non-exempt. Non-exempt employees are eligible for overtime pay for all hours worked over 40 hours per week. Teri noted that all full time positions were previously classified as exempt. The Executive Committee approved a motion to pay back pay for the overtime hours worked by current and former employees in non-exempt positions going back two years in accordance with the Fair Labor Standards Act. Ryan Tira, CPWDC Legal Counsel, explained that a wage claim release was not issued and CPWDC is being proactive in response to the reclassification of employees by paying overtime for the prior years. The Personnel Committee also accepted Rachel’s Smith resignation and established an Executive Director Search Committee. The Search Committee consists of Dave Zartman and Teri MacBride, Co-Chairs, Eric Hussar, Dean Girton, Annette Camuso-Sarsfield, Commissioner Otis Riden and Commissioner John Mathias. The Committee is working towards having the position filled by the middle of April. Policy & Performance Committee Jim Beamer, Policy and Performance Committee Chair, noted the Committee was unable to meet due to impending bad weather. Jim provided a PY13/FY14 monitoring update highlighting the compliance monitoring completed by Sandie Fairman, Sr. Quality Assurance Coordinator, since December 2013. Sandie visited 3 employers with current OJTs with no concerns or findings. Sandie monitored youth files for both CSO and TIU on state and federal compliance and their adherence to the contract with CPWDC. Both CSO and TIU need to submit corrective action plans in regard to compliance with WIA documentation in case files, however no major concerns of non-compliance were noted. At the upcoming Policy & Performance meeting, the Committee will recommend changes to the Individual Training Account (ITA) Policy which provides funding for certificate and classroom training. The Policy & Performance Committee is scheduled to meet on March 21, 2014. Youth Council Jay Alexander, Youth Council Chair, reported the Youth Council continues to monitor enrollment performance. Both CSO and TIU are on target to meet the cumulative enrollment goals. Jay also reviewed the PY13 2nd Quarter WIA Common Measure results for WIA In School Youth (ISY) and Out of School Youth (OSY). Jay reported that targets for each measure are the negotiated levels approved by the PA Department of Labor & Industry. The Central Region is not meeting the negotiated performance rate for Placement (ISY and OSY who are placed in employment, post-secondary education or military) and Attainment of Degree or Certificate (ISY or OSY who are enrolled in High School, GED or training who complete and earn a degree or certificate). The Central Region is meeting the negotiated rate of 40% for Literacy/Numeracy (OSY who have a basic skills deficiency and increase at least one educational functioning level in math or reading). Jay reminded the WIB that an RFP was released and awarded to Henkels & McCoy to start providing remediation services in January, and the Youth Council expects performance to continue to increase.

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WIB and LEO Board Joint Meeting – March 12, 2014

The OSY contract extensions with CSO and TIU will expire on June 30, 2014. The Youth Council discussed the contracts and agreed to extend both CSO and TIU contracts for six months. 

Jay Alexander motioned to extend the Workforce Investment Act (WIA) Out of School (OSY) contracts to Central Susquehanna Opportunities, Inc. and Tuscarora Intermediate Unit #11 for the period of July 1, 2014 through December 31, 2014 with performance expectations and budgets to be established by the Youth Council and Audit/Finance Committee. Jim Beamer seconded the motion. The motion was unanimously approved (21 members voted in favor).

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Jay Alexander motioned to amend WIA In-School Youth contract with CSO to include $1,250 for determining eligibility for the Technology + You = Success program. Chris Minnich seconded the motion. The motion was unanimously approved (21 members voted in favor).

The Youth Council is scheduled to meet on May 13, 2014.

LEO Action Items 

Dave Kovach motioned to approve the minutes from the December 4, 2013 joint WIB/LEO Board meeting. Richard Shoch seconded the motion. The motion was unanimously approved (6 members voted in favor).

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Tony Mussare motioned to extend the Workforce Investment Act (WIA) Out of School (OSY) contracts to Central Susquehanna Opportunities, Inc. and Tuscarora Intermediate Unit #11 for the period of July 1, 2014 through December 31, 2014 with performance expectations and budgets to be established by the Youth Council and Audit/Finance Committee. Pete Smeltz seconded the motion. The motion was unanimously approved (6 members voted in favor).

Executive Director’s Update Erica provided the following updates. The WIB was provided with a copy of the Technology + You = Success marketing brochure that will be shared with area schools. This program will serve youth in Northumberland and Snyder counties by inspiring youth to pursue careers in Science, Technology, Engineering and Math. Students will create and edit videos at local businesses relating to STEM careers that will later be shared with the students’ schools. Erica discussed a recent conference call with U.S. Department of Labor Secretary Thomas Perez. Secretary Perez explained that Vice President Joe Biden was charged with reviewing job training and employment programs and established the following 5 goals. 1. Expand, deepen & sustain employer relationships by having a job demand/ employer driven approach to workforce. 2. Make it easier for participants to acquire skills and work with partners with similar interests (USDOL, Department of Health and Human Services, and Department of Education) and collaborate on career pathways to use the same core competencies. 3. Spur innovation at the federal, state & local level and issue waivers for innovative ideas. If CPWDC can’t do something now because we are restricted by law, we can ask USDOL for a waiver. 4. Promote what works and identify what doesn’t work by reviewing outcomes and effective performance measures. Then decide if we fix what isn’t working or stop doing it. The first question is how do you fairly assess how the money is spent? 5. Transform and expand registered apprenticeships without diminishing quality. There is new funding in the 2015 federal budget to expand apprenticeships. The USDOL wants to see partnerships with education and economic development. CPWDC must continue to collaborate with local partners and identify innovative uses of technology in rural areas. WIBs will have a higher degree of accountability and CPWDC needs be looking at how we can improve services by going beyond the 6

WIB and LEO Board Joint Meeting – March 12, 2014

basics and providing quality services. It’s not ok to just meet the WIA common measures; we need other performance standards. Erica also asked the WIB members for ideas that CPWDC can take to the national level. Erica attended the PA State WIB meeting, and provided updates. PA Labor & Industry Secretary Julia Hearthway announced that each state will receive 3.5% of WIA set aside funding to be used as discretionary spending with an anticipated amount of $3.5 million for Pennsylvania. Governor Corbett asked the State WIB to form a subcommittee to form ideas of how to spend these funds with input from the local WIBs. One person suggested bringing back non-needs based programs, like Regional Career Education Partnerships (RCEP), that can serve youth that are not WIA eligible. This funding was previously used to provide educational summer youth programs in our area. State WIB Board Members are scheduling visits to all the local WIBs to talk with LEO members, WIB members, WIB staff, and local employers. The State WIB wants feedback from all of these partners to identify how people are being held accountable for providing services. The PA WIB’s guest speaker, Chancellor Brogran of the PA System of Higher education, gave a speech on the connection between a college education and jobs and that the end result of obtaining an education should be getting a job. Chancellor Brogran discussed the importance of offering training certificates and not just focusing on four year degrees to make people more marketable. It was also noted that not everyone graduating from high school needs to go to college, but they should have the critical thinking skills to be ready to go to work. Another suggestion by the Chancellor was that all 14 state universities use a hub model and bring all the back door services to one location (e.g. student services and financial aid could be housed in one facility). The Pennsylvania Department of Labor & Industry will be releasing 5 new policies by July 1, 2014. They currently released 2 policies relating to Local Governance and the Workforce Development System that are being reviewed by WIB Directors for comment. ®

Included in the booklets are CPWDC FY14 competitive grant updates, updates on the WorkKeys certificates issued, December Labor Market reports, and state and federal program updates.

Open Discussion Susan Swartz informed the WIB that the she was recently notified that the Governor will be holding a press release at the OVR office in Williamsport. Erica announced that Sam Marte will be retiring in March. Dave and Erica thanked Sam for his years of service and dedication to the Consortium and WIB. Date of Next Meeting The Executive Committee will meet on Friday, April 4, 2014 at the CPWDC office in Lewisburg. The WIB/LEO Board will meet on Wednesday, June 11, 2014 at the Union County Government Center in Lewisburg.

Adjournment The meeting was adjourned at 12:06 p.m. Respectfully submitted,

Vina A. Davis 7

WIB and LEO Board Joint Meeting – March 12, 2014