ETP 130 - Single (05/02/16) 1 of 5

DELEGATION ORDER

RETRAINEE - JOB CREATION

Training Proposal for:

Bernel Inc. dba VFS Fire & Security Services

Agreement Number: ET17-0510

Approval Date: June 22, 2017

ETP Regional Office: San Diego Analyst: J. Davey

PROJECT PROFILE

Contract

Attributes:

Job Creation Initiative

Priority Rate

Retrainee

Industry

Sector(s):

Services

Construction

Priority Industry: Yes No

Counties

Served:

Orange Repeat

Contractor:

Yes No

Union(s): Yes No

Number of Employees in: CA: 133 U.S.: 133 Worldwide: 133

Turnover Rate: 11%

Managers/Supervisors: (% of total trainees)

8%

FUNDING DETAIL

Program Costs - (Substantial Contribution)

(High Earner Reduction)

= Total ETP Funding

$60,918

$0

$0

$60,918

In-Kind Contribution: 100% of Total ETP Funding Required $95,382

Bernel Inc. dba VFS Fire & Security Services ET17-0510

ETP 130 - Single (05/02/16) 2 of 5

TRAINING PLAN TABLE

2 Retrainee

Job Creation Initiative

Advanced Technology,

Business Skills, Commercial Skills,

Computer Skills

10 8-200 0 $1,680 $14.35

Weighted Avg: 84

Minimum Wage by County: Job 1: $17.22 per hour for Orange County; Job 2: $14.35 per hour

for Orange County

Health Benefits: Yes No This is employer share of cost for healthcare premiums –

medical, dental, vision.

Used to meet the Post-Retention Wage?: Yes No Maybe

Up to $2.92 per hour may be used to meet the Post-Retention Wage.

Wage Range by Occupation

Occupation Titles Wage Range Estimated # of

Trainees

Job Number 1

Administrative Staff $15.00 - $44.08 16

Engineering Staff $20.00 - $48.00 6

Inspectors $14.30 - $32.00 10

Installation Staff $14.30 - $43.00 66

Manager/Supervisor $32.75 - $60.00 10

Project Lead/Estimator $31.25 - $57.02 5

Sales Staff $21.64 - $48.47 16

Job Number 2

Administrative Staff $15.00 - $42.08 3

Engineering Staff $20.00 - $48.00 4

Inspectors $14.30 - $32.00 3

Job

No. Job Description Type of Training

Estimated

No. of

Trainees

Range of

Hours Average

Cost per

Trainee

Post-

Retention

Wage Class /

Lab CBT

1 Retrainee

Priority Rate

Advanced Technology,

Business Skills, Commercial Skills,

Computer Skills

129 8-200 0 $342 $17.22

Weighted Avg: 19

Bernel Inc. dba VFS Fire & Security Services ET17-0510

ETP 130 - Single (05/02/16) 3 of 5

INTRODUCTION

Established in 1994, and located in the city of Orange, Bernel, Inc., dba VFS Fire & Security Services (VFS) provides design, installation, inspection, repair, and monitoring services for commercial buildings. This includes fire sprinkler and alarm system services for new construction, design-build, and tenant improvement. The Company also conducts system inspections for large commercial, educational and government facilities throughout Southern California. VFS is eligible for standard funding, as a company providing a service in California that faces out-of-state competition from businesses located out of state. PROJECT DETAILS

VFS must train its employees in new construction codes/standards, design technology, and environmental improvements. This training will support its ability to sucessfully bid on fire alarm, suppression, and security systems, against out-of-state competitors. Currently, VFS is able to maintain its competitive position by using technology to reduce costs. However, the use of CAD software within the engineering and construction process is now an industry standard, eroding this advantage. Clients also want increased communication, evaluation and interaction between construction teams. As such, project management and time management skills are critical to completing projects on schedule and within budgets. Sales teams require training in order to understand the service lineup, and build long-term customer relationships. Good customer service is part of the VFS culture and experience. Retrainee - Job Creation VFS has committed to hiring 10 new employees (Job Number 2). The date-of-hire for trainees will be within the three-month period before contract approval or within the term-of-contract. These trainees will be hired into “net new jobs” as a condition of the contract. VFS reports that it has grown steadily over the last 2 years, increasing the number of employees by 35. The Company projects continued growth in the next 2 years and is committed to hiring at least 10 net-new employees over that period. The Company has unused space in its existing facility which will be built out by 2018 to accommodate this growth. The build out will include office space that will be converted from existing warehouse space. The Company also plans to purchase new equipment, including new trucks to meet the demands of expected new business. Newly-hired staff are expected to receive up to 84 hours of training. Out-of-State Vendor Waiver Request VFS intends to provide training in Hydratec HydraCAD software conducted by an out-of-state vendor. Hydratec HydraCAD is a specialized version of CAD designed for fire sprinkler installation. The Company states that training in the use of the software can only be provided by Hydratec trainers located at their headquarters in New Hampshire and that no training providers for this software exist in California.

Bernel Inc. dba VFS Fire & Security Services ET17-0510

ETP 130 - Single (05/02/16) 4 of 5

A total of 8 trainees will each receive 32 hours of training over 4 days, 8 hours per day (256 total training hours). Because the training is unique to the Company’s needs and unavailable in California, staff recommends approval for the use of an out-of-state vendor. Training Plan Training will take place at the Company’s facility in Orange. Most of the training will be conducted by internal subject matter experts with a portion provided by outside training vendors.

Advanced Technology (2%): VFS requests the Advanced Technology funding reimbursement rate ($26 per hour) for Hydratec HydraCAD software training for 8 Engineering trainees. HydraCAD software works with industry-wide construction software, such as BIM and Revit, to produce electronic construction diagrams and blueprints. These 8 trainees currently possess the requisite technical background and experience in CAD software to be able to learn the new HydraCAD software. The Company reports that costs range from $63 to $75 per trainee hour for this training. VFS understands that the trainer-to-trainee ratio for AT is 1:10 to ensure that trainees are able to receive in-depth instruction and personal attention from the instructor. Business Skills (18%): This training will be offered to all staff. Business Skills training will provide trainees skills in Administrative Processes & Procedures, Communication, Customer Service and Sales skills to improve cooperation with customers, construction teams and internal staff. Commercial Skills (40%): This training will be offered to all staff. Trainees will receive job-specific skills in Building plans, Documentation, Pipe-Threading, Fire Sprinkler systems and other skills to better understand what products and services the Company provides. Much of the training is targeted for newly-hired staff so that they can learn how to perform their new jobs. Computer Skills (30%): This training will be offered to all staff. Trainees will receive training in contracting and Customer Relationship Management (CRM) software, Estimating software, MS Office, and other software to perform their jobs more efficiently. Certified Safety Training (10%) OSHA 10/30. This training is a series of courses “bundled” by industry sector and occupation. It consists of 10 hours of classroom or CBT training for journey-level workers and 30 hours for frontline supervisors. The coursework is geared to construction work, and also manufacturing. Completion of the training results in a certificate that expands employment opportunities. The coursework must be approved by Cal-OSHA, and the instructors must be certified by Cal-OSHA. This training will be offered to Inspectors, Installation Staff, Project Leads/Estimators, and selected Managers/Supervisors. Trainees will receive either the 10 or the 30 hour class as needed and receive a certification of course completion.

Bernel Inc. dba VFS Fire & Security Services ET17-0510

ETP 130 - Single (05/02/16) 5 of 5

Commitment to Training

VFS spends $90,000 annually on training at its California facilities. The Company provides Orientation, Safety, Sexual Harassment Prevention, and job-specific on-the-job training to all its employees.

ETP funds will not displace the existing financial commitment to training. Safety training is, and will continue to be, provided in accordance with all pertinent requirements under state and federal law.

Training Infrastructure

Internal administrative and training staff will ensure that training materials are prepared, training is scheduled, trainees are released for training and ensure that attendance forms are completed. The Company will also receive administrative assistance from Training Funding Source.

RECOMMENDATION

Staff recommends approval of this proposal.

DEVELOPMENT SERVICES

VFS retained Training Funding Source in Seal Beach to assist with development of this proposal for a flat fee of $3,900.

ADMINISTRATIVE SERVICES

Training Funding Source will also perform administrative services in connection with this proposal for a fee not to exceed 13% of payment earned.

TRAINING VENDORS

Hydratec of Windham, NH has been retained to provide training in Hydratec HydraCAD software for an estimated fee of $3,100. Other trainers will be identified for ETP record-keeping purposes, as they are retained by VFS.

Bernel Inc. dba VFS Fire & Security Services ET17-0510

ETP 100 Exhibit B Menu Curriculum (07/07/14) 1 of 1

Exhibit B: Menu Curriculum

Class/Lab Hours 8 -200 Trainees may receive any of the following:

BUSINESS SKILLS

Admin Processes & Procedures

Communication

Customer Service

Sales COMMERCIAL SKILLS

Building Plans

Documentation

Equipment Operations

Fire Alarm Systems

Fire Sprinkler – National Fire Protection Association

Inspection reports-sprinklers, fire alarm/pump, central station, 5 year

Material Identification

Pipe Threading Tool

Product/Service Knowledge

Project Management

Test Fire Protection Equipment (Reg 4) COMPUTER SKILLS

American Contractor

Customer Relationship Management

Estimating in Excel

Building Reports

LiNC

Swipe at Site Credit Card Processing

MS Office

Sharepoint ADVANCED TECHNOLOGY (limited ratio 1:10)

Hydratec CAD CERTIFIED SAFETY TRAINING (Requires Certified Instructor)

OSHA 10 (Requires completion of 10-hour course)

OSHA 30 (Requires completion of 30-hour course) Safety Training cannot exceed 10% of total training hours per-trainee. This cap does not apply to OSHA 10/30

Note: Reimbursement for retraining is capped at 200 total training hours per trainee, regardless of the method of delivery.