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WEST CENTRAL WDB/LEO JOINT MEETING LUDINGTON/SCOTTVILLE CHAMBER OF COMMERCE AT THE LUDINGTON AIRPORT WEDNESDAY, APRIL 4, 2012 MINUTES LEO Members Present Emig, Larry Myers, Robert Scholtens, Sam Taranko, Wally Trapp, Chuck Warba, Mark WDB Members Present Bonga, Roger Fettig, Grant Gibbs, Ken Griffin, Nancy Jensen, Jim Massy, Dan Roubal, Lew Smith-Olson, Debbie Stanek, Bill Thompson, Sheri Trucks, Mary Michigan Works! West Central Staff Griffith, Paul Herron, Michelle Others Present
Barker, Bob – Mason Co Growth
LEO Members Absent Courtney, Kevin Nichols, Mary
WDB Members Absent Ferguson, Tim Crandall, Sandy Hallenbeck, Chris Kamphuis, Doug Lloyd, Larry Nash, Roger
Bialochowski, Laurie – Lake MI Carferry Bozeman, Jerri – Hope Network Charles, Felisha – FBR
Clingan, Don – Lake MI Carferry Emley, Grace – FBR Hall, Marie – Eagle Village Perez, Amanda – Goodwill Sprank, Angie – PR
Sweigart, Lynda – Hope Network VonTom, Erin – HRDI Williams, Lisa – Eagle Village Wood, Janet – Hope Network Wyers, Kirk – NCRESA
Call to Order WDB Chairperson, Sheri Thompson brought the meeting to order at 12:38 p.m. at the Ludington/Scottville Chamber of Commerce at the Ludington Airport. A quorum is present of both the WDB and the LEO.
Introduction of Guests Guests were introduced and welcomed.
Showcase: Lake Michigan Carferry – Laurie Bialochowski, Director of Human Resources & Don Clingan, Executive Vice President & Partner – Handout Laurie Bialochowski stated that Michigan Works! and the Car Ferry have a very good working relationship due in a very large part to Michelle’s help every season to place ads and list available jobs on the Talent Bank. Laurie attended a job fair sponsored by Michigan Works! here in Ludington and was very impressed with the organization of the process, the workers and the facility. Because of this she talked to her supervisor about holding a job fair for the Car Ferry. At first it wasn’t well received but eventually with Michelle’s help we came up with a plan. The job fair was a huge success. With the Job Fair there is that immediate face-to-face and the process for problem solving, it made the hiring process so much easier and faster. Don Clingan explained that in 1990 the Carferry went out of business and then a local philanthropist came along and wanted to save the Carferry. He wanted to continue the economic impact and jobs for another 100 years because it has been such a significant icon for the Ludington area. In 1990 when it went out of business there was an economic impact study done by West Shore Community College. That study indicated that the Carferry had a $15 million per year impact on the local economy; it also had an effect on direct and indirect jobs in the community. This study had to do with the Carferry transporting 60,000 passengers per year. Today we have taken the 1990 study and moved it forward. The annual impact the Carferry now has on the Ludington area is $21 million. Some of the rationale for that is the average number of passengers transported has now grown to 120,000. The Carferry employs about 200 people directly and it is estimated that there are another 500 jobs in the area that are the result of the Carferry’s presence.
The Lake Michigan Carferry (LMC) is facing an Environmental Protection Agency (EPA) deadline by the end of this calendar year to find a solution to its currently allowed discharge of about 500,000 tons of coal ash into Lake Michigan each sailing season. The ash is a result of burning coal to make the steam to power the Carferry. Switching to an alternative fuel such as liquefied natural gas is one option being studied. Right now the Carferry operations are 100% in compliance of the regulations; coal ash is not listed as hazardous material on the EPA list. Extensive, exhaustive research has been done by EPA approved laboratories on the mercury content of coal ash; studies have shown that in one year the Carferry would put in less than one ounce of mercury in Lake Michigan. Compare this with the State of Illinois which allows 23,822 pounds of mercury to be dumped into Lake Michigan in the period of one year. The Lake Michigan Carferry has been awarded a $75,000 grant to begin the engineering work for converting the SS Badger to use liquefied natural gas as its fuel source. An earlier grant of $800,000 was awarded to the Great Lakes Maritime Research Institute to study the use of liquefied natural gas on Great Lakes vessels; the Badger will serve as a model vessel in the study. NOTE: Laurie Bialochowski & Don Clingan left at 12:59 p.m. Wally Taranko moved to support the Lake Michigan Carferry Service and to authorize the chairs to work with Michigan Works! staff to develop an appropriate method of demonstrating this support, if needed; supported by Robert Myers; motion approved by both the WDB and the LEO. 1:03 p.m. Paul will attempt to contact his counterpart in Manitowoc, Wisconsin to see if we can get some commonality in some things going on both sides of the Lake in terms of support.
Consent Agenda (Action Item) Minutes of February 1, 2012 WDB/LEO Joint Meeting – Mailed Prior February Financial Report – Mailed Prior/Handout (Goldenrod)
Bill Stanek moved to approve the Minutes of the February 1, 2012 Joint meeting and the February Financial Report as presented; supported by Sam Scholtens; motion approved unanimously by both the WDB and the LEO. 1:04 p.m.
February Program Reports – Handouts Enrollment/Expenditures Reports Paul explained that budget ultimately guides enrollments; enrollment goals are projections. In this case, negative numbers are good; any double digit positive number is a sign of spending at a greater rate than can be maintained for the entire year. FBR has 13% positive but they have been given additional funding. Hope Network is at 14% positive, but has taken some steps to adjust that number downward. On the JET composite page it shows that West Central and the State are moving towards the 50% Work Participation Rate goal.
Plans/Modifications Summary Blue (Action Item) 1. Statewide Youth Funding (Plan 11-00) West Central received $2,250 in Statewide Activity funding for serving high concentrations of eligible youth. The funding is to serve additional youth with barriers to employment through the end of this program year. This funding does not carry forward. 2. Reemployment Services to Emergency Unemployment Compensation Claimants (Plan 11-00) This is a new service for people eligible for federal extensions of unemployment. The person is required to re-register on the Michigan Talent Bank; receive an orientation to these services; Labor Market Information; Career Information; and an Assessment. We have developed this information and plan to use WorkKeys for the assessment. Claimants also now need to document their job search activities. The allocation is based on the number of people identified who are expected to
participate. Our area is projected to serve 3,424 individuals between now and the end of the calendar year. The initial allocation is $145,520 with an opportunity to request additional funding when over 50% of the projected number has received these services. NCRESA, as our Employment Service Provider, will be providing these activities. Roger Bonga moved to accept the WIA Statewide Youth Plan 11-00 and the Reemployment Services to Emergency Unemployed Compensation (EUC) Claimants Plan 11-00 as presented by Michael Wyman; supported by Dan Massy; motion accepted unanimously by both the WDB and the LEO. 1:11 p.m.
PY’12 Bidding Process Recommendations – Handout (Action Item) Larry Emig explained that the Review Committee met last Thursday, March 29th from 9:00 a.m. until 2:30 p.m. at the Baldwin Workforce Service Center. The seven (7) member Committee consisted of: Sheri Thompson, Bill Stanek, Mark Warba, Roger Bonga, Lew Roubal, Wally Taranko and Larry Emig. Two weeks prior to the 29th, members received copies of the proposals and one week prior received a Briefing Packet. The Committee had each of the five agencies who submitted proposals come before them to ask questions in follow-up to the member’s individual review of the materials. The Committee received a total of twenty-five (25) possible “bids units” from the five (5) agencies that submitted proposals, yet only a total of ten (10) “bid units” (five counties X two programs) could be recommended for award. Bottom line, there was a lot of competition. The Committee considered: √ The costs of operations and what proportion of the funding was proposed for participant costs vs. program (staff) costs √ √ √ The proposed outcomes for participants The design of the programs The experience and performance of the agency
Efficiency and economy of scale considerations, so that future funding reductions will minimize the effect on the level of services to customers. For example, the State of Michigan will receive a 10% reduction in WIA Adult and Youth allocations and a 26% reduction in WIA Dislocated Worker funds for the Fiscal Year beginning July 1st. (Individual MWA allocations have not yet been determined.) After the interviews with the bidding agencies and a careful review, the Review Committee using
the consensus model makes the following recommendations: Larry Emig on behalf of the Review Committee moved to award Newaygo County Regional Educational Service Agency (NCRESA) the contract for Employment Service & Trade Act for all five counties (Lake, Mason, Mecosta, Newaygo and Osceola) for one year beginning July 1, 2012 with the provision of two, one-year renewal options; recommendation accepted unanimously by both the WDB and the LEO. 1:18 p.m.
Larry Emig on behalf of the Review Committee moved to award Foundation for Behavioral Resources (FBR) the contract for Adult Services in Lake and Mason counties for one (1) year beginning July 1, 2012 with the provision of two, one-year renewal options. Further recommendation of the Review Committee to award Foundation for Behavioral Resources (FBR) Youth Services in Lake and Mason Counties for one (1) year with the beginning date to be determined but no later than July 1, 2012 with the provision of two, oneyear renewal options; recommendation accepted unanimously by both the WDB and the LEO. 1:21 p.m. Nancy Griffin abstained.
Larry Emig on behalf of the Review Committee moved to award Hope Network the contract for Adult Services in Mecosta, Newaygo and Osceola Counties.
Further recommendation of the Review Committee to award Hope Network Youth Services in Mecosta, Newaygo and Osceola Counties for one (1) year with the beginning date to be determined but no later than July 1, 2012 with the provision of two, one-year renewal options; recommendation accepted unanimously by both the WDB and the LEO. 1:22 p.m. NOTE: Lisa Williams left at 1:24 p.m. NOTE: Kirk Wyers left at 1:25 p.m. Nancy Griffin abstained.
Prisoner Reentry Update – Handouts (Action Item) ◊ New Community Coordinator – Angie Sprank Paul introduced Angie Sprank who replaces Rebecca Stieg as the Community Coordinator for the Prisoner Reentry Program. Angie is not an employee of Michigan Works! West Central – she has a contract to provide Prisoner Reentry related services; as does Glennes Page, Resource Navigator. Angie explained she is from the Portland area in Ionia County, which is one of the nine counties covered. Her family has many memories of coming to Ludington every summer since she was six years old. She and her siblings have all rode on the Badger and now her parents are taking the grandkids on it. Prior to accepting this position with Prisoner Reentry, she ran the Crimes Victim’s Services for the Ionia County Prosecutor’s Office. She feels that moving from Crime Victim’s Services to Prisoner Reentry is very closely related because by making a successful Prisoner Reentry Program it means there are less crime victims. She was recently at a meeting in Mecosta County in which a female prisoner who had been in prison for 22 years on an assaultive crime, she was awarded the opportunity to be provided Prisoner Reentry. She is getting ready to be discharged from a successful
parole; on the sheet she stated that she would have been back in prison had not been for Prisoner Reentry. She did not have housing or any contact with her family, she had a mentor which is something else that Prisoner Reentry provides. There is an article in the Big Rapids Pioneer asking for Prisoner Reentry mentors – three females attended the training, however, the program is in desperate need of male mentors at this time. Paul added that the State of Michigan Parole Board determines who will be designated Prisoner Reentry, this is totally their decision. ◊
ensures that each participant though they may have been enrolled in both sections at some point in the month, is only counted once. In total, 404 services were provided to 118 participants. ◊ Significant Program Changes Paul explained that there are some significant changes coming. There are 17 administrative agencies in the State of Michigan, 14 of those are
in the fifth year of Prisoner Reentry. When the “Caps Cost Parameters” were issued the Administrative Agencies “pushed back” and MDOC did respond by taking back the document and asked for input. However, the Administrative Agencies requested 90 days to implement the new “Caps and Cost Parameters” but it was denied. The revised Parameters were supposed to be presented at a September 9th statewide meeting, however, they were not because they were still working on them. About a week before October 1st (the beginning of the new Program Year), the “Caps and Cost Parameters” were emailed with no transition period. Acclimation to these new “Caps and Cost Parameters” was beginning to take place and then the last week in March at a meeting we were told that MDOC was going to take another $4 million out because they want to do more of what is referred to as Phase I and Phase II activities within the prison. Again the Administrative Agencies were given no opportunity for input. MDOC also wants to start to dictate salary caps that can be paid to the Community Coordinator, Resource Navigator, the Service Provider Case Managers, etc. The bottom line is, an overwhelming majority of the Administrative Agencies are ready to give the MDOC back their program. However, there are those who don’t want to see the program go under because it has been so successful. There are Contractor’s who are giving notice and quitting. Goodwill, our Service Provider, came very close to quitting; fortunately they were convinced to stay. At the meeting with MDOC yesterday, the Administrative Agencies questioned whether the Department even wanted the community as a partner anymore. Apparently they want State staff to decide everything. West Central has a good working relationship with the Parole Agents in our region; the problem has been with MDOC Central Office. What has transpired, and not sure to what extent it is known statewide, is we are in the process of trying to get the Prisoner Reentry program moved from the Michigan Department of
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Corrections to the Michigan Workforce Development Agency. The Michigan Department of Corrections has said okay, but apparently with a condition. By April 15th an email needs to be received by the Department of Corrections from each Administrative Agency indicating if we are willing to continue to operate the program effective October 1. All the Contracts are on a three-year cycle and will be up at that time. However MDOC will give a one-year extension to each agency. If we fail to respond they will consider it a “No.” Staff recommends that we email our response as “being interested, contingent upon the program being moved to the Workforce Development Agency.” This kind of move would probably require an Executive Order. Larry Emig moved that Michigan Works! West Central express its desire to continue to be the Administrative Agency for Prisoner Reentry in the nine county West Central Area, contingent upon the Prisoner Reentry program being transferred from the Michigan Department of Corrections to the Workforce Development Agency under the Michigan Economic Development Corporation (MEDC) by October 1, 2012. He further moved that if there is any significant change in events between now and the next Board meeting that requires action, the two WDB and LEO Chairs and Vice Chairs be authorized to approve that action; supported by Bill Stanek; motion accepted unanimously by both the WDB and the LEO. 1:55 p.m.
Business Activity – Handouts 4 North Lake Correctional Facility, Baldwin Michelle stated that House Bill 5174 sponsored by Representative Jon Bumstead and Senate Bill 0878 sponsored by Senator John Proos directly affect the North Lake Correctional Facility located in Baldwin. There are not a lot of updates at this time. We are very hopeful that there will be a positive outcome.
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4 Liberty Dairy, Evart Michelle explained that late last week she and Paul were informed that Meijer had acquired Bareman’s Dairy in Holland which will have a tremendous impact on Liberty Dairy in Evart and their approximately 180 employees. We are hoping that a Rapid Response will not be needed for this company. In the next nine months Meijer will be doing an eight million dollar expansion on the facility in Holland. Paul explained that West Central is currently trying to set up a meeting with Liberty Dairy that would involve Dan Masy and Bill Kratz. This action could have a tremendous domino effect for the area as over 90% of the product made at Liberty Dairy goes to the 101 Michigan Meijer stores. Sheri explained that when this news came out the Plant Manager of Liberty Dairy found out one hour before the news media. This relationship between Meijer’s and the Dairy dates back to the mid-1960s. Liberty Dairy was initially owned by Sheri’s father-in-law and moved from Big Rapids to Evart and leased the Dairy to Dean Foods and then eventually sold to Dean Foods, with Sheri’s family business continuing to haul the raw milk to the plant. The future of our family business is very unknown at this point. Very little information is coming out to the people at the Dairy and the employees don’t know which way to turn at this point in time. Evart has had its share of ups and downs throughout the years with Evart Products and other area businesses. Also Ice Mountain was going to possibly locate a plant there, but that hasn’t happen yet. Evart can ill afford to lose this many jobs. We are certainly hoping that Dean Foods will come around with some options to keep the business open and keep it thriving, if not, it will be a tough road ahead.
Entrepreneurial Activities Michelle noted that the Entrepreneurship Institute being launched by Ferris State University will be based out of Big Rapids and Grand Rapids campuses.
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Mecosta/Osceola 30-Hour “Fast Trac” Entrepreneurial Training Michelle explained that on March 14 we had our first Fast Trac Entrepreneurial Training class facilitated by Ron Steiner. We had eleven people sign up and ready to look into starting their own business or taking their existing business to the next level. We are very excited for this group and the outcome for each student. We are now in our fourth week of the class and look forward to seeing what the class members do after the class is over. We are also working closely with Ferris’s new Entrepreneurship Institute and looking at ways we can partner with each other, as FSU not only wants to help their students, but those in the community as well.
New Federal Reemployment Services Activities – Handouts Due to the passage of the “Middle-Class Tax Relief and Job Creation Act” of 2012 in February, the Workforce Development Agency – State of Michigan introduced a policy to all MWAs last week regarding new Reemployment Services that must be provided to all Emergency Unemployment Compensation claimants beginning on March 23, 2012. These new Reemployment Services must be provided by merit-based staffing (NCRESA). NCRESA has really stepped up to the plate in providing these services. Basically, for anyone exhausting their regular state funded unemployment insurance and about to claim the federal Tier 1 extension, and those moving from federal Tier 1 to Tier 2, will receive a letter from the Unemployment Insurance Agency indicating that the claimant must come into a Michigan Works! Workforce Service Center and complete the following: 1. Showing Employment Services their Form 1919L and completed UIA 1583EUC “Record of Work Search” (at the point of registration only) 2. Re-registering for work on the Michigan Talent Bank 3. Receiving an orientation to the services available through Michigan Works! West Central 4. Learning about current labor market and career information 5. Performing an assessment of their skills (WorkKeys)
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Paul explained that the chart provided shows the projected numbers by the Unemployment Agency by County and by month for West Central as 3,424. On any given month it could be 300 to 400 people coming to our Centers; it is likely that some of them would have come in to see us, but not this many. NOTE: Sam Scholtens and Chuck Trapp left at 2:05 p.m.
Michigan Rehabilitation Services (MRS) Move to Department of Human Services (DHS) – Handout Paul explained that Michigan Rehabilitation Services was moved from the Workforce Development Agency to Licensing and Regulatory Affairs (LARA) and now Governor Snyder has issued an Executive Order to move them to the Department of Human Services. There is a 60-day wait period. NOTE: Mary Trucks left at 2:13 p.m.
New Workforce Development Agency (WDA) Director Paul said that it is very significant to the Directors of the Michigan Works! Agencies as one of their very own directors, Christine Quinn (South Central – Jackson Area), as of July 1st will assume directorship of the Workforce Development Agency.
GED Update – Handout As most Board members know, Hope Network operates the GED program in Mecosta and Osceola counties. Recently there was a rather lengthy article in the Big Rapids Pioneer where a 56 year old received her GED. ◊ Testing at Newaygo County Jail About a month ago NCRESA connected West Central with the Newaygo County Jail due to the fact that the prior GED test provider discontinued service. We have a written agreement which authorizes Hope Network to provide this service. We do not provide GED preparation to the
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residents of the Newaygo County jail, only testing. Hope Network is there one day every other week. West Central now has a license for three addendum sites – the Reed City Center, the Baldwin Prison even though it’s not open at this time and now the Newaygo County Jail in addition to the main site in Big Rapids.
Positive Michigan Economic News – Handout Personal income increased 5.2 percent in 2011 in Michigan, the largest growth since 2000.
DHS Related Service Charts – Handout Lew Roubal explained that with the positive economics we are hearing about we are starting to see some changes; the Food and Cash Assistance cases are not moving up as they once were. There have been some policy changes within the Department to be more proactive with getting individuals involved in ways to get off public assistance.
Mailing Packet Items Counties Ranked by Unemployment Rate – January 2012
Michigan Works! Annual Conference – Handout Connie Shoemaker explained that the Michigan Works! Annual Conference is scheduled for September 9, 10 & 11, 2012 at the Detroit Marriott at the Renaissance Center. West Central has reserved a block of rooms for those Board members who wish to attend. West Central will make and pay for all reservations and registrations and most meals. If they desire to bring a guest there is no difference in the price of the room for one or two people. In the past there has been a $50 charge for
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guests to attend the reception; this can be paid on site. Board members who wish to attend should contact Connie no later than July 20.
Next Meeting June 6, 2012 – Big Rapids Workforce Service Center The next joint meeting for the WDB/LEO is scheduled for Wednesday, June 6, 2012 at the Big Rapids Workforce Service Center.
Round-the-Table » » Gibbs, Ken, The Brill Company – business has been very good this year. Massy, Dan, Osceola Economic Alliance – the happenings in Evart with Dean Foods is the big thing going on right now. » » Myers, Bob, Lake County Commissioner – still hoping for things to start happening at GEO. Warba, Mark, Mayor City of Big Rapids – excitement with the Ferris Hockey Team possible National Championship. Crankers expect a spring opening of their new brewery. Hope Network’s quotes were very impressive. » Stanek, Bill, Living Water Christian Resources – condolences to Larry Emig on the loss of his mother-in-law. » Roubal, Lew, Department of Human Services – he and his wife are closing on a house in Big Rapids Township. » Jensen, Jim, West Shore Community College – West Shore Community College is also busy with Entrepreneurial programs, he asked that when coming to Mason County call Julie VanDyke and work with her so there are no duplications. » Smith-Olson, Debbie, Lake Osceola State Bank – Lake County awaits the decision for GEO; things are looking very positive at this time. Blessing of the Bikes is coming up in May.
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Other Business Grace Emley and Janet Wood thanked the Boards for their vote of confidence. Bill Stanek thanked Eagle Village for doing a great job through the years!
Reserved for the Public
Adjournment Meeting stands adjourned at 2:35 p.m.
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