SE MN Workforce Development Board June 2 nd, 2016, 2:00 PM Workforce Development, Inc. Rochester, Minnesota Minutes Members Present: Jeff Custer (Chair), Randy Johnson (Executive Director), Brandon Dansie, Guy Finne, Tim Gabrielson, Mike Haney, Roy Harley, Jean Larson, John McDonald, Julie Nigon, Lonnie Otterson, Kris Pierce, Wayne Stenberg, Jason Sundberg, Tami Walker, Marcia Ward, Nikki Weber-Knutson, Jodi Yanda, Holly Zuck, Jill Miller (Note Taker) Others Present: Tom Monson, Sonji Davis, Wanda Jensen, Ryan Lais, Rebeca Sedarski, Dave Wheeler, Dallas Groten. A quorum was present and Jeff Custer called the meeting to order. Introductions of all in attendance were made. Wayne Stenberg moved to approve the agenda and the April meeting minutes, Jean Larson seconded, and the motion passed. Management Committee Guy Finne Fiscal Report (Attachment A) Guy Finne reported that June 30 th is the end of the Fiscal Year. Things are running smoothly with no surprises. Quick highlights: Programs are running strong. We are very happy. Budget: Is as expected. The Management Committee makes the recommendation to approve the report. Guy Finne moved to approve the Fiscal Report, Roy Harley seconded, and the motion passed. Personnel Committee Guy Finne Guy Finne noted that it is the time of year to look at the Workforce Development, Inc. (WDI) compensation package. The Management Committee approved to bring forward the following WDI 2016 benefits package: Personnel Committee $108,000 for 3% wage increase pool $20,000 for merit incentive pool Increase in dental insurance cap from $1,500 to $2,500 Increase 403(b) match to 6% dollar to dollar - from 5% Require All-Staff financial literacy seminar regarding retirement plans Wellness Committee $7,270 for personal health assessments & incentives, program supplies, and a Wellness Council of America (WELCOA) membership. Guy noted that WDI already has tuition reimbursement as part of the benefits package. He stated that some businesses offer a student loan repayment plan. The Employee Benefits Committee conducted a WDI staff poll, and approximately 24 staff indicated that they would take advantage of this benefit. However, the Management Committees did not approve this proposed benefit. The Committee will still keep an ongoing conversation on the student loan repayment benefit. The Committee felt that WDI does not have all the guidelines and answers for the student loan benefit to be finalized. Question: Brandon Dansie asked if WDI did a 403(b) match comparison with similar companies. Answer: Randy Johnson stated, Yes. The Employee Benefits Committee reported to the Personnel Committee that 3.4% was average; with some companies offering up to 7%. Question: Wayne Stenberg asked if there is a cap on the match. Answer: Randy Johnson stated that contributions are open-ended. The proposal is to move the cap on the match of 5%, now 6%. Question: Jodi Yanda commented that she would recommend that we keep the student loan benefit active as a future possibility and revisit it again. She believes it is a good idea. Question: Tami Walker commented that based on funding sources, she feels that WDI fell in line with staff and benefits. Question: Lonnie Otterson asked how the merit incentive program works. Answer: Randy Johnson noted that the program looks at each of ten offices. There were eight critical measures this year, and the office(s) must meet the criteria. Guy Finne noted that the merit incentive is distributed once per year. Guy Finne moved to approve the request for approval of the 2016 WDI Benefits Package, Lonnie Otterson seconded, and the motion passed. Workforce Development Board 1 6/2/16
One-Stop Consortium Wayne Stenberg The group discussed the Draft Minnesota WorkForce Center System Certification Standards. There was good discussion and all in attendance agreed that we have the required components and partners in place. Sector Reports Healthcare Julie Nigon There was discussion on the election of a new committee chair, as the committee felt there is a need for more representation on the subcommittee and on the Workforce Development Board (WDB). There was also conversation about Skype business. The committee will defer on electing new initiatives in the healthcare industry such as finger printing and tuberculosis (TB) testing. The Nursing Shortage Solutions Taskforce met. The taskforce should come to a conclusion in a year. At which time, the taskforce will present a formal report on implementations, lessons learned, and their conclusion. Some long-term care statistics are of great concern. There was also discussion on the International Healthcare Workers Grant, the new Pathways to Prosperity Grant, and the Minnesota Job Skills Partnership (MJSP) Grant. Manufacturing Julie Olson/Sonji Davis Julie Olson reported that the committee discussed the State of Manufacturing Tour. Enterprise Minnesota talked to college students this year about the skills gap. Sonji Davis talked about the Tri-City Bridges to the Future Grant that focuses on working with at at-risk youth. Sonji announced that WDI has hired two new bilingual Bridge Mentors to work with eligible youth. The committee also discussed updates on manufacturing apprenticeships and grants. Services and Trades Wayne Stenberg A quorum was present. At the last meeting, the Committee looked at Training Programs. At today s meeting, the group discussed the various Career Pathway options and how to begin to address five questions that employers may require or like to know from potential workers. Beth Christensen and George Mietzner are working on a matrix and will report to the Committee at the next Services and Trades Sector Meeting. Emerging Technology and Economic Development Tami Walker Jon Losness, the Executive Director for Families First MN, was the speaker at today s meeting. He spoke on the state of child care in workforce development. Of note, Families First has forty different funding streams. Tami updated the WDB on his speech. She said it was an enlightening discussion. Director s Report Randy Johnson Legislative and Congressional Updates Randy Johnson provided WDB members with the AMC/MWCA/MAPCED Legislative Summary handout (Attachment B). Randy noted that a bill was passed in the Legislature requiring the State to consult with local service delivery areas when competitive grants when competitive grants are made available. Specifically, Randy pointed out the following funding: Career Connections Pathways Hennepin County: Hennepin County requested money to put interns to work. The Legislature opted to designate $300,000 in a rural entity grant to establish a pilot program outside of the metropolitan area with another local unit of government. Randy believes this may be a good opportunity for Olmsted County. Nontraditional Jobs for Women: $1.5 million. Grants to Address Economic Disparities in SE Asian Communities: $2 million. Randy indicated that WDI has hired Eh Mwee as our Karen Outreach and Job Search Coordinator. Pathways to Prosperity Competitive Grants: $1.5 million Construction Careers (Industry) Foundation: $2 million for construction career pathway initiative to provide year-round learning opportunities for teens and young adults. Randy notes that we especially would like to pair teens and young adults with minority-owned construction companies. Grant to Address Economic Disparities in Latino Community CLUES: $1.5 million. Randy notes that we have already made contact with community operations. Grant to Address Somali Youth and Community Resiliency: $2 million. Randy spoke about our new WDI Somali Bridge mentor that was hired. Youth At Work Grant Program (competitive grant): $1 million. Priority would be given to organizations that serve youth from communities of color, serve youth with disabilities, or provide students with information about education and training requirements for careers in high-growth, in-demand occupations. Emerging Entrepreneur Grant: $500,000. Randy suggests the possibility of a small business center. Workforce Development Board 2 6/2/16
Regional Career Counseling Coordinators. $500,000. WDI partnered with Winona to hire Susan Boehm to be our Regional Career Pathways Coordinator. Extended Employment: $1 million for rate increases to providers of extended employment services for persons with severe disabilities. Randy would like to see the employment system run through WDI. Olmsted Training Grants: $800,000. Rural Career Counseling Coordinators: $500,000 to recipients of 2015 competitive grants. Supplemental Nutrition Assistance Program (SNAP) E & T: This funding did not happen. This recommendation would have required federal reimbursements for SNAP E & T to go to the MN Department of Human Services (DHS) rather than the General Fund and would have given year-round funding to SNAP. Equity in Postsecondary Education: $500,000. This is a grant to address equity in post-secondary education. Randy notes that this will assist the K-12 system with providing more crisis counseling. Student-Employer Connection Information System: $500,000 for a grant to the Saint Paul Foundation. Adult Basic Education Grant Program: $400,000. Federal Business State of Minnesota Master Grant Contract Randy Johnson provided WDB members with a copy of the State of Minnesota Master Grant Contract. (Attachment C) Randy notes that this contract comes out every five years. The contract needs to be signed and sent into the State. Randy asked the WDB members for authorization to sign the contract on behalf of WDI. Mike Haney moved to approve Randy Johnson s signature on the Master Grant Contract, Wayne Stenberg seconded, and the motion passed. Reorganization/Revitalization of Leadership Roles in WDB Subcommittees Randy Johnson will be traveling around the 10-county area recruiting champions to chair WDB subcommittees. There will be further discussion regarding this at our August meeting. Business Service Representative Reports and WDI Area Managers Reports Area Managers Sonji Davis WDI has hired two Bridge Mentors who will be housed in Faribault and Northfield. We are waiting on background checks for the employees. Dallas Groten Amy Klobuchar visited Harmony Enterprises in Fillmore County and Spring Grove Soda Pop as part of her Made in Minnesota Tour. At each of the stops, Senator Klobuchar looked for better ways to support businesses and create new jobs. Other Announcements Mike Haney attended a Metro meeting this morning. He met with deputy commissioners. Mike reports that Business Services is being looked at, as the funding source has stayed the same for 20 years. He reports that Gen Morales, a migrant counselor from the Faribault Department of Employment and Economic Development (DEED) office, has been chosen to be the Grand Marshall of a parade in Blooming Prairie. Mike also reports that our Workforce Service Area (WSA) is one of the highest performers. We rely on Randy Johnson and the Legislative Committee to represent the Workforce. Kris Pierce reported that hiring at his company, Alamco, has been easier. The youth apprentice program they were involved with is going well. Lonnie Otterson discussed that business is going strong. The company has more orders than they can produce. 15-30 people are being hired per week. Jason Sundberg commented that housing has been a challenge in Owatonna. Jodi Yanda gave an update on the Project SEARCH internship. There is only one intern who is nonemployed; all others have been hired. Mike Haney moved to adjourn the meeting. The motion carries, and the meeting was adjourned. Respectfully submitted, Jill Miller Workforce Development, Inc. Workforce Development Board 3 6/2/16
ATTACHMENT A Workforce Development, Inc. REVENUES by fund source From: 1-Jul-15 Thru: 31-May-16 Y-T-D % of Annual Actual Budget Budget Grants: Adult Employment & Training 1,125,463 63.3% 1,778,748 Youth Employment & Training 1,123,686 82.2% 1,366,229 Dislocated Workers 1,756,078 78.2% 2,246,125 Reading Recognition 44,303 83.3% 53,200 4,049,529 74.4% 5,444,301 Fees for Service/Other: Welfare Reform 2,365,032 80.6% 2,934,396 Custom Training 125 1.3% 10,000 Donations 6,405 40.0% 16,000 2,371,563 80.1% 2,960,396 Total Recognized Revenues 6,421,091 76.4% 8,404,697 Unrecognized Revenues: Unbilled Welfare Reform 13,264 0.0% 0 Unallocated Indirect Costs 86,092 0.0% 0 99,356 0.0% 0 TOTAL REVENUES 6,520,448 77.6% 8,404,697 Changes Since Last Report: WIA Adult 200,000 WIOA Disl Wrk -200,000 Faribault Care Ctr -158,500 WIOA Youth PY16 24,129 IBM -80,000 BARD Medical 40,000 Total Change -174,371 Workforce Development Board 4 6/2/16
ATTACHMENT A (Page 2) Workforce Development, Inc. BUDGET to ACTUAL by programs/function From: 1-Jul-15 Y-T-D Percent Annual Thru: 31-May-16 Actual of Budget Budget Salaries and wages 3,076,157 80.9% 3,801,777 Payroll taxes & benefits 1,019,190 84.0% 1,213,329 Subcontracted services 123,594 38.3% 322,375 Staff development/conferences 29,286 83.7% 35,000 Travel 100,780 76.2% 132,227 Board expenses 11,854 64.1% 18,500 Telephone 55,407 75.4% 73,500 Postage 12,876 69.6% 18,500 Utilities 45,760 83.2% 55,000 Marketing 9,095 70.0% 13,000 Dues and subscriptions 16,425 78.2% 21,000 Auditing & legal fees 17,890 89.5% 20,000 Maintenance 70,665 70.0% 101,000 Rent and occupancy 355,168 83.6% 425,000 Insurance 14,132 76.4% 18,500 Supplies and other 112,633 54.9% 205,207 Equipment 22,579 75.3% 30,000 Equipment rental 93,463 85.8% 108,900 Classroom training 871,864 92.1% 947,125 Participant support 239,969 48.7% 492,746 OJT contracts/wage subsidy 55,647 72.5% 76,774 Participant Wages 147,559 64.4% 229,240 Participant Fringe 20,216 62.2% 32,499 Other training expenses 12,181 90.2% 13,500 Workforce Center Partner Billing -13,942 69.7% -20,000 6,520,448 77.8% 8,384,697 Workforce Development Board 5 6/2/16
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