STANISLAUS BUSINESS ALLIANCE FULL BOARD MEETING

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FULL BOARD MEETING

Date: July 20, 2015

Time: 12:00 PM

Place: Kirk Lindsey Center

1020 10th Street # 102

Modesto, CA 95354

The Stanislaus Economic Development and Workforce Alliance (The Alliance) complies with all provisions of the Brown Act and the Conflict of Interest code on file with the Board of Supervisors. The agenda at each meeting allows for a public comment period, limited to 5 minutes. All meetings are conducted in English. If you require assistance per the American with Disabilities Act please notify the Alliance at (209) 567-4985 72 hours in advance of the meeting. Public notices of all Alliance meetings are posted on the Alliance webpage at www.stanalliance.com and on the door of the Alliance offices at 1010 Tenth Street.

1. Call to Order

2. Introduction

3. Conflict Of Interest

4. Public Comment Period

5. Chairman’s Report

6. CEO Report

7. Consent Items: A. Accept the resignation of Sharon Silva, Turlock Chamber of Commerce from the Stanislaus

Business Alliance Board. B. Approval of minutes for January 26, 2015 Full Board Meeting (p.2-3)

8. Action Item A. Approve the Engagement of Funding Solutions to Execute a 5-year Fundraising Campaign (p.4) B. Approval of 2015-2016 Alliance Budget (p.5)

9. Information Items

A. Financial Reports of Alliance, Alliance SBDC and Alliance Worknet (p.6-15) B. Scorecard (will be handed out at meeting)

Next Meeting Dates:

Alliance Full Board Meeting October 19, 2015 Kirk Lindsey Center 1020 Tenth Street Suite 102 Alliance Executive Committee Meeting August 17, 2015 Kirk Lindsey Center 1020 Tenth Street Suite 102.

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Stanislaus Business Alliance FULL BOARD MEETING

Minutes

January 26, 2015 Dave White, CEO EXECUTIVE DIRECTORS PRESENT

Jeff Foster Ron Jackson Doug Johnson Bill O’Brien Billy Powell Sharon Silva EXECUTIVE DIRECTORS ABSENT

Sean Carroll Billy Powell Paul Van Konynenburg BOARD MEMBERS

James Brenda Ross Briles Cal Campbell Ernie Flores Dick Hagerty Paul Harmon Craig Lewis Nikki Linnerman Tony Madrigal Dick Monteith Clint Mort Mike Repp Matt Richard Ken Riddick Eva Rios Stan Risen Cecil Russell Jill Stearns Tom Van Groningen Brian Velthoen Jim Wood Jeramy Young STAFF

Teri Adams – Jones, The Alliance Steven Ames, The Alliance Kurt Clark, The Alliance SBDC Susie Eudy, The Alliance Eugene Garcia, Alliance Worknet Heather Harris, The Alliance Jeff Rowe, Alliance Worknet GUESTS

Cherilyn Bairos, City of Oakdale Dean Fadeff, Operationg Engineers Local #3 Michele Gallagher, Clendenin Bird & Company Jim Holgersson, City of Modesto Sheree Lustgarten, City of Patterson Garnette Martin, Riverbank Chamber of Commerce Lisa Mantarro-Moore, Office of ASM Adam Gray Tim Ritchey, Modesto Bee Lori Smith, City of Modesto Doug Murdock, Manufacturing and Maintenance Apprenticeship CALL TO ORDER

The meeting was called to order at 12:10 PM. Chairman Jeff Foster called the meeting to order. He had everyone introduce themselves and reminded them of the Conflict of Interest policy. He then offered a chance for a public comment period, Tony Madrigal mentioned the ACE Train expansion. Chairman Foster said that the board could look into that in the future. CEO REPORT

Dave White presented a PowerPoint. It covered the 10.5% unemployment and how the rate is steadily declining. It stated that home prices in the County are growing and gas prices are declining. It showed the Synchronist survey results for 2014. Most companies reported to have issues recruiting employees and are forecasting hiring for the future. It reported skilled production labor as the highest skill gap in the area. Fire protection was rated the highest community service. Transportation was rated the lowest in community service. Nearly two in three Stanislaus County companies surveyed are in the growth phase of a business life cycle. 83% of companies added new products. There were many other positive outcomes from the survey. He then explained the final Scorecard numbers for 2014.

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In business development, there are 70 active projects, recent wins with Botanics & Organics, Ross F. Carroll (expansion), Restoration Hardware, Central Valley Hospital and Hilmar Cheese. The projects in the pipeline are two distribution centers in Patterson, three manufacturing expansions in Turlock, several manufacturing and office expansions in Modesto and 195 plus local industry surveys/visits completed. In workforce development, the Jumpstart Stanislaus Campaign was highly successful and will continue in 2015. There were several job recruitments as a result of the local industry program. There will be a job fair in April that is a collaborative effort with Congressman Denham, EDD, MJC and others. The Stanislaus Innovation Challenge was a successful program and there are plans to expand it in 2015. The SBDC is working on Innovation Centers throughout the County. SBDC is assisting the development of the Merced Innovation Center as well. The current SBDC goal is initiating an Ag Tech focus. In marketing, the new campaign, “Start Here, Grow Here, Live Here” is in the process of being completed. The Marketing and Communications council is now operational. On February 26th, Celebrate Stanislaus will be held to honor those companies that have expanded or relocated in this area. CONSENT ITEMS:

A. Approval of minutes for October 20, 2014 Full Board Meeting B. Approval of minutes for October 23, 2014 Full Board Meeting Conference Call C. Accept the resignation of Jim Aja, Operating Engineers Local Union #3 from the Stanislaus

Business Alliance Board D. Approve the appointment of Dean Fadeff, Operating Engineers Local Union #3 to the Stanislaus

Business Alliance Board. E. Approve the appointment of Ed Katen, City of Newman to the Stanislaus Economic

Development and Workforce Board. F. Accept the resignation of Luis Molina, City of Patterson from the Stanislaus Economic

Development and Workforce Alliance Board G. Approve the appointment of Sherri Lustgarten, City of Patterson to the Stanislaus Economic

Development and Workforce Board. H. Accept the resignation of Oscar Cabello, Wells Fargo from the Stanislaus Economic

Development and Workforce Alliance Board Sharon Silva motioned to approve all of the consent items. It was seconded by Dick Hagerty M/S/C. Unanimous. ACTION ITEMS

A. Approval of 2015 In -Demand Occupation list for Workforce Investment Act (WIA) funded training Craig Lewis motioned this Action item. It was seconded by Ernie Flores M/S/C. Unanimous.

B. Approve the Alliance Annual Audit for FY 2013-2014 Brian Velthoen recused himself due to the auditor being one of his tenants. Dick Hagerty motioned to this Action item. It was seconded by Sharon Silva M/S/C. Unanimous.

C. Approve 2015 Goals on Score Card Craig Lewis motioned to approve this Action item. It was seconded by Tony Madrigal M/S/C. Unanimous. Meeting was adjourned at 1:20 PM

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ACTION ITEM A: Approve the Engagement of Funding Solutions to execute a 5-year fundraising campaign.

DISCUSSION: Funding Solutions has prepared a presentation STAFF RECOMMENDATION: The Executive Committee recommends approving Funding Solutions to execute

a 5-year fundraising campaign.

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ACTION ITEM B: Approval of 2015-2016 Alliance Budget

DISCUSSION: (Budget will be handed at out at meeting)

STAFF

RECOMMENDATION: The Finance Council recommends to approve the 2015-2016 Alliance Budget.

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The Alliance

Statement of Financial Position May 2015

May

ASSETS

Current Assets

Modesto Comm. Bank - Gen. Acct. 451,632.07

Modesto Comm. Bank - Payroll Acct 55,986.95

Modesto Comm. Bank - Reserve 207,114.38

Strengthening Stanislaus II 841,114.17

Accounts Receivable

Contract Receivable 52,531.24

Program Fees Receivable 7,359.08

Total Accounts Receivable 59,890.32

Other Current Assets

Miscellaneous Receivables 650.00

SBDC Advance 0.00

Prepaid Postage 235.65

Undeposited Funds 0.00

Total Other Current Assets 885.65

Total Current Assets 1,616,623.54

Fixed Assets

Property & Equipment, Net 23,640.30

TOTAL ASSETS 1,640,263.84

LIABILITIES & EQUITY

Current Liabilities

Accounts Payable 7,457.94

Accrued Liabilities 0.00

Credit Card Payble to SBDC 0.00

Payroll Liabilities 522.70

Accrued PTO Liability 61,932.30

Deferred Income 200,000.00

Payable to Foundation 10,000.00

Total Current Liabilities 279,912.94

Total Liabilities 279,912.94

Equity

Net Assets 0.00

Unrestricted 1,197,944.92

Net Income 162,405.98

Total Equity 1,360,350.90

TOTAL LIABILITIES & EQUITY 1,640,263.84

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The Alliance

Profit & Loss July 1, 2014 through June 30, 2015

Current Month Year-To-Date

May Budget Budget Var Jul. - May Budget Variance Annual Budget

Income

Investment Income 61,381.24 82,132.00 (20,750.76) 1,171,051.49 1,121,788.00 49,263.49 1,247,670.00

Grant Income 0.00 0.00 0.00 1,800.00 0.00 1,800.00 0.00

Other Incomes 9,837.24 54,458.00 (44,620.76) 541,207.70 599,038.00 (57,830.30) 668,500.00

Total Income 71,218.48 136,590.00 (65,371.52) 1,714,059.19 1,720,826.00 (6,766.81) 1,916,170.00

Expense

Program Expenses 13,984.76 12,504.00 1,480.76 138,522.92 137,975.00 547.92 150,600.00

Wages & Employee Benefits 77,681.01 77,401.00 280.01 894,750.48 906,881.00 (12,130.52) 984,282.00

Insurance & Taxes 50.00 0.00 50.00 7,786.35 8,860.00 (1,073.65) 8,860.00

Advertising 9,843.89 15,870.00 (6,026.11) 86,985.67 178,861.00 (91,875.33) 195,400.00

Special Projects 53,353.80 24,125.00 29,228.80 212,878.85 223,875.00 (10,996.15) 258,000.00

Interest & Other Charges 10.00 85.00 (75.00) 645.16 550.00 95.16 560.00

Occupancy & Equipment 15,975.02 16,137.00 (161.98) 175,028.25 178,709.00 (3,680.75) 196,023.00

Office Expense 1,395.35 3,759.67 (2,364.32) 31,055.53 51,271.33 (20,215.80) 54,981.00

Total Expense 172,293.83 149,881.67 22,412.16 1,547,653.21 1,686,982.33 (139,329.12) 1,848,706.00

Net Ordinary Income (101,075.35) (13,291.67) (87,783.68) 166,405.98 33,843.67 132,562.31 67,464.00

Net Income (101,075.35) (13,291.67) (87,783.68) 166,405.98 33,843.67 132,562.31 67,464.00

Other Expense

Bad Debt 0.00 0.00 0.00 4,000.00 0.00 4,000.00 0.00

Net Income (101,075.35) (13,291.67) (87,783.68) 162,405.98 33,843.67 128,562.31 67,464.00 *

* Any negative operating expense

will be offset by reserve

from SSII account

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The Alliance

Budget Projection July 1, 2014 through June 30, 2015

Actual Budgeted Income Variance Budgeted Expense Variance

July - Apr. 2015

$1,584,236 $1,642,841 104% $1,537,101 $1,375,359 89%

Projected Budgeted Income Variance Budgeted Expense Variance

May - June 2015

$331,934 $197,069 59% $311,305 $194,236 62%

Note: Projected income & expense (Jan. - June) reduced for EZ vouchering. Income & expense (July -

Dec.) increased due to EZ program ending.

Expense less 6 mths 90,000.00 Income 600,000.00

voucher cost

1,000 vouchers * 6 mths

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8.3% 16.7% 25.0% 33.3% 41.7% 50.0% 58.3% 66.7% 75.0% 83.3% 91.7% 100.0%

Grant End

Date

Grant

Number

%

Expended

to Budget

FY14-15 Legal

Budget (1)

Total

Expended

FYTD

Jun-14

Accrual

Reversal

Jul-14 Aug-14 Sep-14

Sep-14

Accrual

Reversal

Oct-14 Nov-14 Dec-14

Dec-14

Accrual

Reversal

Jan-15 Feb-15 Mar-15

Mar-15

Accrual

Reversal

Apr-15 May-15 Jun-15Available

Balance

EXPENDITURES

Adult Formula 6/30/2015 201 140.9% 2,011,709 2,833,649 - 232,783 280,566 356,532 (73,690) 348,853 239,566 444,583 (159,526) 260,566 246,400 496,774 (190,670) 121,102 229,811 - (821,940)

Dislocated Worker Formula 6/30/2015 501 50.4% 2,468,104 1,243,325 (26,569) 162,904 168,600 211,311 (43,036) 173,456 112,519 218,884 (86,341) 129,328 101,777 171,991 (75,855) (29,076) 53,432 - 1,224,779

WIOA 2% Admin 15,351 1,092 2,861 (1,263) 6,179 6,483 -

Youth Formula 6/30/2015 301 91.2% 2,403,819 2,191,826 (36,409) 78,595 91,522 240,360 (57,321) 230,439 196,292 323,296 (107,897) 262,569 195,738 370,875 (125,722) 367,099 162,388 - 211,993

Summer Youth 309 500,000 240 240 -

Rapid Response 6/30/2015 540 74.4% 207,286 154,320 (28,265) 30,482 17,706 37,250 (15,818) 23,486 15,223 15,413 (3,346) 12,211 1,096 32,954 (6,931) 8,822 14,035 - 52,966

Rapid Response Layoff Aversion 6/30/2015 293 100.0% 41,295 41,276 - - - - - 9,230 1,000 - - 14,130 3,607 3,787 - 5,398 4,125 - 19

Youth Career Technical Education 3/31/2015 310 86.3% 138,653 119,689 (13,272) 20,591 21,545 31,639 (1,723) 20,537 7,955 12,893 (5,942) 10,056 6,449 8,961 (69) 69 - - 18,964

JD NEG 2014 3/31/2016 1014 33.5% 387,200 129,768 - - - - - - - 1,521 (592) 2,892 934 53,376 (24,230) 57,226 38,641 - 257,432

IMCP ($8k) 138521 8,000 8,003 2,997 5,007 - (3)

Central Valley Infrastructure 6/30/2015 138519 13.3% 37,049 4,934 - - - - - - - - - 102 639 - - 47 4,145 - 32,115

Prop 39 (Merced) 21,685 3,736 3,736 -

Non-Custodial Parents Project (DCSS Grant) 6/30/2015 N/A 45.4% 848,342 385,225 - 13,879 16,609 23,141 - 26,254 21,270 23,563 - 25,451 31,558 60,036 94,057 49,406 - 463,117

StanWORKs (CSA Contract) SUB E 6/30/2015 N/A 86.7% 7,865,377 6,822,662 - 450,490 588,967 631,949 - 627,809 537,055 638,301 - 696,963 529,601 622,713 589,642 909,172 - 1,042,715

StanWORKs (CSA Contract) ESE 6/30/2015 N/A 16.9% 2,856,366 483,004 - - 1,468 38,376 39,047 47,365 - 76,043 58,441 66,894 - 68,098 87,272 - 2,373,362

GRAND TOTAL 72.9% 19,794,885$ 14,437,007$ (104,514) 989,724 1,185,515 1,533,650 (191,588) 1,498,441 1,169,927 1,725,819 (363,643) 1,490,311 1,177,332 1,891,222 (424,739) 1,291,660 1,567,892 - 4,855,520

Err Chk 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 571448.9 0.0 0.0

(1) Legal Budget = Final Budget 14/15 plus actual rollover amounts, now known.

STANISLAUS COUNTY - ALLIANCE WORKNET

As of May 31, 2015

ALL WIA GRANTS - SNAPSHOT REVIEW

FISCAL YEAR 2014-2015

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