Board Meeting Minutes for May 19, 2016

Lancaster County Workforce Development Board of Directors Meeting

Thursday, May 19, 2016 - 7:30 a.m.

PA CareerLink of Lancaster County - Liberty Place

Minutes

Present: Keith Baker, James Black, Steven Bright, Thomas Cislo, Barry David, Sharon Kay, Linda Kreider, Jean Martin, Robert Rhoads, Susan Richeson, Todd Shultz, Kurt Stillwagon, Robert Thomas, Jill Welch; Gregory Paulson for Rep. Mike Sturla

Not Present:        Thomas Baldrige, Brian Barnhart, John Biemiller, James Everhart, Gary Grube, Eric Horn, Krista Jenkins, Donald Johnson, Rhonda Kurtz, John Paul.

Note: the following board members had submitted absentee ballots on the votes to be taken: John Biemiller, Gary Grube, and Eric Horn.

Guests:  Trish Link, An’Dionne Smith, Joe Farrell, Anna Ramos, Mark Douglass, Tara Loew, David Warren

Staff:     Valerie Hatfield, Cathy Rychalsky, Hope Schmids, Nancy Sharp, Steve Tredinnick

Call to Order and Welcome

Jill Welch, chair, called the meeting to order at 7:35 a.m. and asked attendees to introduce themselves.

Introduction of New Board Member – Sharon Kay, human relations manager, Pepperidge Farm

Consent Agenda

Approval of Minutes – March 17, 2016

Approval of March 2016 Financial Report

Approval of policies and procedures

PP 202 – System of Record

PP 203 – Program Eligibility

PP 205 – Priority of Service

Approval of nomination of David Warren

Discussion: Cathy explained that we are going to present over the next few meetings new and revised policies that are required under WIOA. State is looking for more systematic way for policies to be approved than we’ve done in the past. Jill noted that all policies presented were approved by the Executive Committee at its March 2 meeting. Cathy said that currently the CWDS system is not able to track all categories; Keith Baker said the new release in June will address that need. Sharon asked if there is a process for reviewing policies to keep them current; Cathy said not yet but we will work on that. Barry David didn’t see priority of service for disabled veterans; Nancy said that veterans have the highest priority of service, and that includes disabled veterans.

Motion to approve the consent agenda items was made by Bob Rhoads, seconded by Sharon Kay. Consent agenda was approved unanimously.

Jill welcomed Dave Warren, executive director of the Lancaster County Career and Technology Center, to the board. Dave briefed the board on his background.

Items for Action

Approval of LCWDB budget

Cathy reviewed the Schedule of Obligations with revenue projected from carry-over funds from current and past fiscal year and new allocations for PY16 as well as the projected budget for the WIB operations. Steve Tredinnick talked about how staff costs are allocated between administrative and program funds, which informs how overall budget lines are allocated. Steve raised his concern of the small difference between the budget for administrative costs ($470,000) and amount we believe will be available ($491,000) based on anticipated carryover and projected allocations. The administrative amount in the proposed budget is very close to what is projected to be available. This year we are relying on carry-over of $109,000. Because of the funding cut announced for PY16 and the approved PY 16 budget, we anticipate not having carryover for PY17.

Linda Kreider asked if staff salaries are in compliance with new USDOL regulations with classification (effective 12/1/16). Cathy and Jill believe they are.

Motion to accept the budget came from Finance Committee, was seconded by Linda Kreider, and approved unanimously.

Approval of hiring of solicitor

Robert Saidis was recommended to us for his experience in workforce development in Pennsylvania. Mr. Saidis works with the WDBs in South Central and Berks.Cathy had asked the executive committee for approval to retain him while we conduct the RFP process for solicitor.

Motion to retain Mr. Saidis’ services for 90 days came as motion from the executive committee, was seconded by Steven Bright, and passed unanimously.

Approval of IT proposal recommendation

The staff recently completed the RFP process for IT services. We received six proposals. After hearing presentations from three proposing organizations, the review panel recommended Design Data for various reasons including that it provides its service as all-inclusive, not limited by a certain number of hours per week. Steve Bright asked if there will be periodic review of service levels; Cathy said yes. Nancy mentioned the online visibility of status of service tickets.

Motion to award a contract to provide IT support services to Design Data came from the operators and finance and executive committees; it was seconded by Kurt Stillwagon and passed unanimously.

Approval of recommendations for program providers

WIOA, EARN and WorkReady: Cathy put out RFPs for all three programs and convened a review panel. Two organizations submitted for proposals for all three programs; both made presentations. As a result of the process, EDSI is being presented as the sole provider for Title I (WIOA), EARN and Work Ready; ResCare did not retain the contract for Title 1 services. The budget is shown as TBD because we first needed to determine a WDB budget, which will be subtracted from the total funds made available. Jill asked if the amount will be presented to the board which it is determined. Jean Martin asked about the salary of the EDSI employees. She expressed concern that the contract was awarded to the low bidder and employees might be working at a lower rate than at which we’re seeking to place clients. Nancy mentioned that budget was a small consideration, as we had provided a maximum amount to be awarded, based on availability of funds. The primary factor was the description of program services to be provided.

Motion to approve EDSI as the program provider was made by Bob Thomas and seconded by Bob Rhoads. Jean Martin abstained from the vote, which was otherwise unanimous.

In-School Youth and Out-of-School Youth: Hope Schmids presented two recommendations from Youth Council. We received one proposal for each service area, both from current service providers. Both proposals went through the full review process, which included the review panel, steering committee, and youth. The contracts will be for one year due to uncertainty about our funding and some concerns about performance.

Recommendation from Youth Council and Executive Committee to select Lancaster County Career and Technology Center as provider for In-School Youth services up to $60,000 based on available funding, seconded by Jean Martin, passed unanimously; Dave Warren abstained

Recommendation from Youth Council and Executive Committee to select Arbor/ResCare as provider of the Out-Of-School Youth services, up to $310,000 based on available funding, seconded by Jean Martin, and passed unanimously.

Anna Ramos had requested the opportunity to talk to the board. Anna has served as Title I program manager for 15 years, most recently as an employee of ResCare. She thanked the board and staff for the opportunity to represent the CareerLink over that time. Jill commented that the board has asked Anna to do a great deal during many changes and dealing with a number of challenges. Jean expressed her thanks too for Anna’s service, having worked with her for 15 years. Cathy noted that Anna has been a great support during the 18 months that Cathy has been here.

Approval of response to state monitoring findings and corrective action plan

As a result of findings related to the severance package given to Scott Sheely, the board was required to put together corrective action plan. The state has the letter with some conditions. The plan was previously approved by the executive committee but requires the board’s approval.

On a motion from the executive committee and a second by Tom Cislo, the response was approved unanimously, with an abstention on the absentee ballot of Eric Horn.

Approval of contract with Manufacturers Association of South Central PA

Cathy explained that we had received funding from Make It In America grant three years ago to train incumbent workers. The grantor asked us to de-obligate unspent funds. Cathy reached out to MASCPA to help us expend the grant and make the funds available for Lancaster County manufacturers.

On a motion by Jim Black, seconded by Bob Rhoads, the contract was approved unanimously.

Approval of cost of living increases for staff

Jill noted that an amount had been approved in current year’s budget but, due to change in leadership, had not been implemented. The staff has not received a cost of living increase since 2013. Jean Martin questioned the effective date: mid-year versus beginning of fiscal year. Cathy noted that the executive committee had approved the increase effective that date but the state now requires the approval of the board.

On a motion from the executive committee, seconded by Linda Kreider, the cost-of-living increase of two percent, effective Feb. 8, 2016, passed unanimously.

Approval of slate of officers for 2016-18 terms:

The following individuals were presented as officers: Robert Rhoads as chair, Rhonda Kurtz as vice chair, and Tom Baldridge as secretary/treasurer. Jill Welch will serve as immediate past chair.

Motion to approve the slate was made by Robert Thomas, seconded by Sharon Kay, and passed unanimously.

Items for Discussion

Transitional Local and Regional Plans

Cathy said both plans were shared with board and posted on the LCWDB’s web site. We received a few comments. The local plan will be sent to Commonwealth by the June 2 deadline. Mike Lawrence is working with us on this process. The next step is to work on a five-year plan. Jill noted that there were some new faces at the table as we sought community input to the plan.

Staff Reports

Youth Program Coordinator

Hope had left the meeting early to attend a special session at the PWDA conference. Jill called attention to the sponsorship of STEM summer camps that had been sent out previously to the board.

Site Administrator

Valerie Hatfield shared several new items as part of her report:

  • Monthly calendar of workshops and programs available. Valerie asked board members to provide input on workshops they might be interested in providing to our program participants
  • List of outreach events that staff have or will complete
  • A two-page report on the number of people served
  • Report from the March 2016 CareerLink® Job Fair

Interim Executive Director (Cathy Rychalsky)

Cathy updated the board on the status of the state audit findings resulting from the Sheely severance package. All communications have gone to the county commissioners. The commissioners received a final notice from state dated May 10. The LCWDB staff filed a claim against our Directors and Officers Insurance Policy, which covered the severance portion of the finding but not the PTO payout, which it considered a contractual obligation. LCWDB requested administrative holdback to cover the balance due; L&I denied the request. The commissioners asked the state to waive remaining portion; it declined to do so.

After discussions with our solicitor and a representative from the US Dept. of Labor, Cathy will appeal on grounds that state had accepted administrative holdbacks elsewhere.

Jill asked for the board’s approval to access the line of credit to make the payment by the due date of May 20 while discussions are ongoing. Cathy noted that we cannot utilize grant funds that we have to pay interest or repay principal, nor do we have other sources to repay the loan. A quorum was not available, as this item had not been included in the absentee ballot. No motion was made.

The board adjourned to Executive Session to discuss personnel issues.

When the board reconvened in public session, Linda Kreider moved, Tom Cislo seconded, and the board unanimously approved naming Cathy Rychalsky as interim executive director and Nancy Sharp as interim compliance officer.

Bob Thomas wanted it noted that the board extends its thanks and appreciation to Jill for her service as chair.

Meeting adjourned at 9:15 a.m.

NEXT MEETING

Thursday, July 21, 2016, at 7:30 a.m.