denver workforce development board...denver wdb minutes 6.10.16 page 1 of 5 board handbook –...

Denver WDB Minutes 6.10.16 of 5 Board Handbook – Section G

DENVER WORKFORCE DEVELOPMENT BOARD

Denver Metro Chamber of Commerce 1445 Market Street, 4th Floor, Denver CO 80202

Friday, June 10, 2016

Meeting Minutes

Attendance

Yes No Board Members Category & Industry

Y 1 Stephanie Van Cleve-DeHerrera, Kinsley Meetings (CHAIR) Business – Prof. Services

Y 2 Corry Avery, Sheet Metal Workers’ Apprenticeship Training Institute Labor – Training

R 3 Sid Basu, Chatham Financial Business – Finance

Y 4 Maggie Bolden, Palace Construction Business - Construction

Y 5 Mary Broderick, IBEW Local #68 Labor

Y 6 Mark Genkinger, Denver Health Business – Healthcare

R 7 Megan Huffnagle, Oasis Outsourcing Business – Food Services

R 8 Cara Johnson, Optiv Business – IT

R 9 Kelli Kelly, PCL Construction Enterprises, Inc. Business – Construction

P 10 Elise Lowe-Vaughn, CO Department of Labor & Employment Workforce Partner

R 11 Mark Miller, Pipefitters #208 Labor

R 12 B. Solomon Muwanga, Wells Fargo Business – Finance

R 13 Bob Nogueira, Comcast West Division Business – Telecom

R 14 Lindsey Pacheco, CO Division of Vocational Rehabilitation Vocational Rehabilitation

Y 15 Holly Reed, RK Business – Construction

Y 16 Paula Schriefer, Spring Institute Local Adult Education

R 17 Joshua Torrez, ClimbOnTek Solutions Business – IT/Prof. Services

Y 18 Cecil Velazquez, Hispanic Chamber of Commerce of Metro Denver Economic Development

P 19 Sandra Wagner, AARP Foundation/SCSEP CBO/Workforce Partner

Y 20 Ashley Walker, The Center for Work Ethic Development Business – Prof. Services

Y 21 Marcus Weaver, New Genesis, Inc. CBO/Nonprofit Corporation

Y 22 Katrina Wert, Community College of Denver (by Proxy) Higher Education

P 23 Leanne Wheeler, Wheeler Advisory Group LLC Business – Prof. Services

R 24 Kathy Workman, InnovAge Business – Healthcare

14 10 24 58 % of the Voting Members (VM) attended QUORUM: Yes Legend: Y=Present; P=Proxy present; R=Regrets/Excused; N=Absent

Agenda Items

1. Call to Order, Welcome & Introductions

Board Chair, Stephanie Van Cleve-DeHerrera, called the meeting to order at 11:40 a.m., welcomed everyone, and invited all members and staff to introduce themselves.

Barbara McBride from the Colorado Department of Labor & Employment (CDLE) attended as proxy for Elise Lowe-Vaughn; Deborah Washington from the AARP Foundation attended as proxy for Sandra Wagner; and Tina Lehman attended as proxy for Leanne Wheeler.

There were several guests at today’s meeting including Tom Kelly from Congresswoman Diana DeGette’s office; Dusti Gurule; U.S. Department of Labor; Audrey Krebs and Nicklaus Lesley, Colorado Department of Human Services; Christa White, Colorado Department of Labor and Employment (CDLE); Sir Green, Nicole Kramis and David Sanchez, ResCare Workforce Services (ResCare); Madison Cassels, Denver Area Labor Federation; Slavica Park, Focus Points Family Resource Center; and James Thacker from Sprint. Denver OED staff in attendance included: Tony


Anderson, Denise Bryant, Anita Davis, Cindy Gaertner, Liz Kissee, Jose Miguel Jara-Garcia, Lisa Lujan, Todd Nielsen, Jeff Romine, and Bret Walker.

Chair’s Remarks. Stephanie quickly reviewed today’s agenda and directed everyone’s attention to the “Denver Workforce Development Board Opportunities for Board Member Involvement” matrix of information on upcoming engagement opportunities that is distributed monthly and is in this month’s agenda packet.

Opportunities for Involvement. Cindy Gaertner, Board Liaison informed the group that only the ongoing opportunities for board member involvement are included in this month’s activities. She thanked the board for its high level of attention and participation over the past several months.

2. Workforce Development Board Business

Approval of Minutes. Paula Schriefer requested that an item be added that Elizabeth Schroeder from MSU Denver Family Literacy inquired about the status of the Title II MOUs. Corry Avery moved and Holly Reed seconded a motion to approve the minutes of the May 13, 2016 Board meeting with the added item. Action Taken: The minutes were approved unanimously, with the added item, by all Board

members present.

3. Workforce Development Board Dashboard – June 2016

Cindy presented the Dashboard for the end of May 2016 (PY15) – which indicates that OED-WD has met all of the WIOA Adult and Dislocated Worker Common Measure Performance Goals and performance continues to be on track to meet WIOA Youth measure standards. OED has provided services to almost 2,407 employers in PY15.

4. Denver Economic Update

Jeff Romine, Chief Economist for the City and County of Denver based in OED, announced that he will be presenting the same information that he provides to the Mayor and City Council and that the data is roughly a week and a half old. Jeff and Tony Anderson, Business Services Manager, recently met with a number of young people with and regarding an entrepreneurial program started by Mayor Hancock that will be funded through OED Workforce Services. Jeff’s presentation is attached to this document; key takeaways are outlined below

Jeff began with a quick background of the world economy and a look at recent changes in gross domestic product of a number of countries, which illustrates the slowing of the BRICs’ GDP that the U.S. GDP has been continuing to increase since 2011. The U.S. economy is the currently strongest economy and is holding up the world’s economy at present. This is not sustainable – other countries need to be able to contribute to the international economy.

Although the current low crude oil prices have helped many sectors of the economy, it has hindered the energy sector. The sustainable crude oil price is between $60/- and $80/barrel. When the price recently fell to below $30/barrel, it resulted not only in layoffs and petroleum-related business closures, but also a reduction in incentives to advance renewable energy – a strong sector in the Colorado economy. Crude oil prices have recently increased to above $50/barrel. Jeff advised the group that Denver’s strong economy is not shared by other areas of the state, including the Western Slope and Weld County, or the rest of the country.

Jeff presented a snapshot of a number of factors of the U.S. economy. Consumer spending is very strong – consumption is driving the U.S. economy – but business investment, which tends to move the U.S. Economy forward, has slowed recently. The unemployment rate remains low and employment grew by 587,000 new jobs in the first quarter of 2016, which is strong enough to absorb people entering the labor force. The U.S. has had 22 straight months of employment growth; however employment growth has slowed over the last three months. If employment growth drops to below 450,000 for a quarter, it would not be a good sign. Inflation continues to


remain very low as a result of low gas prices which is balancing out higher housing prices, but consumer confidence remains flat.

Jeff presented a quarterly table of the U.S. GDP growth rate which illustrates periods of growth and recession that average in 6- to 6.5 year cycles. The last recession cycle ended in 2010.

Jeff then began an in-depth look at the current Denver economy: o Denver currently has the historically highest number in its resident workforce of 381,500

people, with 369,000 employed and only 3.3% unemployment – stabilized unemployment rate is 4%. 492,000 people are currently employed in jobs within Denver– more than ever before. Employment by Denver firms has been steadily increasing since its recent low of about 410,000 in late 2009. Wage growth has increase 3.3% since last year. Denver is in a great economic position compare to previous decades. 53% of Denver residents are employed; most cities have less than 50% resident employment.

o Consumer price index (CPI) is strong. Lower gasoline prices are allowing Denver households to spend roughly $700 annually on other items, however approximately 3000 Denver households were affected by layoffs related to low crude oil prices. The increase in housing costs is important and the Mayor has a number of initiatives aimed at creating and preserving affordable housing. In the past, Denver’s home prices tended to increase at a more stable rate than other U.S. communities. Now, however, we seem to be following the national trend with steeper increases.

o The US Capital : Labor ratio is currently weighted to the capital economy due to low interest rates; this has contributed to the low wage increases through the recovery. Denver’s economic base has shifted to information and capital, our competitors are now San Francisco, Seattle, Austin and Washington DC. Companies are moving here due to the relatively lower cost of labor and housing as well as the opportunity to build and expand operations. Denver’s progressive image and culture is also attracting international firms from more progressive countries. Economic indicators are pointing to a slowing in the economy, but Jeff believes that wage growth will remain positive over the next 12 months, and that employment, sales and housing demand will moderate. Denver is a counter-cyclical investment community – it tends to invest during downtimes (DIA, FastTracks, I-70/I-25 interchange) to stimulate the economy during a recession.

Jeff declined to provide a date for the start of the next recession when asked. Jeff was also asked how much of Denver’s employment actually is “under-employment”. He believes that Denver’s economy will be grown by young families moving to Denver from other, more expensive cities.

5. Workforce Update:

Denise Bryant, Workforce Director, reported that OED Staff is knee-deep in the transition and has been working to prepare the Castro Workforce Center for the remodel to the human-centered approach and service delivery model. A number of logistical items still need to be completed, including preparation of customer files (every customer file must be reviewed and a transition sheet completed before the file can be handed off to ResCare), removal of old furniture and installation technology infrastructure and new furniture. These items have been postponed as long as possible to avoid a service disruption. Denise will let CDLE know exactly how many days the Castro Center will be closed after June 23, and to where staff will be redeployed to continue customer services. There will be a grand re-opening of this One-Stop Center after July 1, 2016. Denise acknowledged ResCare for being a great partner to work with through this process.

Denise introduced David Sanchez, ResCare’s Regional Director, Operations, who reported that the remodel of Montbello offices, which will house both ResCare Workforce Services and Dynamic Workforce Solutions, was completed on May 15. ResCare began onboarding new staff on May 15; they have completed training and are filling in at the workforce centers as OED staff leave to ensure service continues. ResCare has hired 55 of the projected 65 FTEs needed; 27 of these are OED staff. ResCare will continue with the recruitment effort, as well as providing new staff with training and


orientation in the ResCare model, so that staffing is complete and ready to go for the rollout on July 1. ResCare has also been negotiating subcontracts with its partners.

Denise announced that Denver City Marketing has approved the use of the new “Denver Workforce Services” branding and logo, under which all workforce contractors will operate. Denver Workforce Services will remain part of the Office of Economic Development. All locations will have new signage reflecting this new brand.

Denise began a legislative updated to the Board by asking Dusti Gurule, from the U.S. Department of Labor and Barbara McBride and Christa White from CDLE about the progress of WIOA final regulations. Barbara reported that this was going to happen “before summer.” o The regulations need to be codified before OED can finalize the required policies it is currently

developing. Denise recognized the great job Kathleen McCleary has been doing using the WIOA law and her relationship with CDLE to develop OED’s policies in the interim.

o The City and OED have also been watching progress related to TANF Reauthorization. On May 24, the House Ways and Means Committee passed HR 2595 to improve the employment outcomes of TANF. The proposed bill will apply WIOA-style measures to TANF: tracking employment in the second and fourth quarters after program exit, and median earnings. Recently the Committee has advanced a number of related bills which would set up research clearing house on work-based program outcomes, expand social impact bonds, expand subsidized work programs, tighten state maintenance-of-efforts spending requirements, and add a new purpose to TANF: to reduce child poverty by increasing employment entry, retention, and advancement for needy parents.

o The USDOL’s Office of Apprenticeship is determining how to expend the $100 Million in its budget for apprenticeship measures. Workforce Services will monitor their decision and apply for funds as appropriate for the board. Dusti shared that the initial round of funding went to partnerships with state offices and governors, but that additional discretionary grants will be announced over the next few months.

6. Regional/Local Plan

Cindy updated the Board on the status of the 2016-19 Local WIOA Plan. The plan has not yet been approved by CDLE, but additional information has been submitted on May 26 as requested to Christa White, Denver’s CDLE Regional Liaison.

7. WDB Committees

Stephanie opened a discussion related to the outcomes of the Board’s strategic planning retreat on June 9. She expressed kudos to Scotty Martin and Sarah Nasser for providing a summary document for review overnight. Highlights of the document include: o Mission: The Denver Workforce Development Board convenes key workforce partners such as

business leaders, education partners, and the Mayor’s economic and workforce development team who plan and oversee the use of Federal, State, and Local funds to deliver talent development solutions to Denver area businesses so they can generate employment opportunities for all job seekers and provide Denver citizens with a thriving economy.

o Vision: The Denver Workforce Development Board will be the sought-after partnership model of business, workforce, community, educational, and civic leaders that empowers all job-seekers to learn, grow so they can contribute to and fulfill the needs of a vibrant business community.

o Values: Innovative, Accountable, Collaborative, Authentic / Honest, Committed / Follow-Through and Respectful

o Opportunity Statements: Work groups determined which opportunity statements would be the board’s primary focus moving forward and assigned metrics and parameters to them. Stephanie


cautioned that the document is still in draft form. Lisa Martinez Templeton will review the parameters to ensure the measures can be tracked.

o Committees: After the board’s values were identified, the group looked at committee structure and identified six committees to focus on what is important to the board. The Bylaws require both the Executive Committee and the Youth Committee. The Equity and Accessibility Committee will focus on vulnerable populations, including

mature workers, ex-offenders, veterans, etc. The Governance and Oversight Committee will work closely with Executive Committee and

has two purposes: (1) oversight and tracking of the One-Stop Operator and other service providers and ensure reporting to City Council and (2) outreach and communication related to current and future board members.

The Partnerships, Engagement and Strategies Committee will identify and engage the right stakeholders from our target industries, business, education and the community to ensure successful jobseeker and business outcomes.

The Career Pathways and Education Committee will deliver insight on adult and youth training learning opportunities, including apprenticeships.

Stephanie asked that the board to indicate which committee they would like to join as well as who would like to chair a committee. She stressed that while the committees and chairs shall determine their priorities, structure and processes, the chairs will define the roles and expectations of members to ensure commitment and engagement and that chairing a committee requires substantial time commitment, accountability and responsibility. While this is an exciting time as Denver moves forward under WIOA, the Board has the responsibility to be on top of it all to ensure success.

Stephanie outlined the remaining steps for the Strategic Plan. Scotty will have a draft plan to the Executive Committee for review by June 17. By end of June, the draft will then be sent to full Board for review and comments. The final plan will be presented at the July 8 meeting for adoption.

There was discussion concerning if the board had enough members for all six committees. Cindy reminded the board that although they are the leaders of the committees, they can invite members of the community, Workforce staff and partners to participate and assist in achieving the goals.

Mark Genkinger recommended that an email be sent to confirm committee membership and chairs to avoid further delay and to allow work to move forward as soon as possible.

8. Wrap-up, Upcoming Events, and Announcements

Next Executive Committee Meeting. The next Executive Committee meeting is scheduled for Friday, July 1, 2016 at the Wellington Webb Building, room 7.H.10 from 11:30 a.m. – 1:30 p.m.

Next Board Meeting. The next Board meeting will be on Friday, July 8, 2016, from 11:15 a.m. to 1:15 p.m.

No Executive Committee Meeting in July!

No Board meeting in August!

There was no other business, announcements, or public comments.

9. Adjourn. The Board meeting adjourned at approximately 1:34 p.m. Meeting Handouts:

6/10/2016 Denver Workforce Development Board Meeting Agenda

Denver Workforce Development Board Opportunities for Board Member Involvement – June 2016

5/13/2016 Board Meeting Minutes (Draft)

DWDB June Dashboard

Monthly Economic Indicators, Metro Denver Economic Development Corporation, June 2016

2016-17 Economic Forecast Briefing

Draft Denver WIOA 2016-2020 Local Plan 5.26.16

Denver WDB Strategic Planning Retreat – SUMMARY

2016-17 Economic Forecast

BriefingDenver Workforce Development Board

June 10, 2016

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World Economy

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GROSS DOMESTIC PRODUCT

2015 2014 2011

US 2.5% 2.3% 1.7%

Euro Area 1.5% 0.8% 1.4%

Germany 1.5% 1.4% 3.0%

Japan 0.6% 0.3% -0.6%

Britain 2.4% 2.9% 0.9%

Canada 1.1% 2.4% 2.4%

The BRICs

Brazil -3.4% 0.1% 2.9% Resources Economy

Russia -3.8% 0.6% 4.3% Resources Economy

India 7.2% 6.0% 7.1% Manufacturing

China 6.9% 7.3% 9.2% Manufacturing

Source: Economist EIU

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REAL GDP GROWTH 2.4% (2.4% 2014)• Consumer Spending 3.1% (2.7%) 69% of the economy

• Business Investment 2.8% (6.2%) 17% of the economy

• Residential Investment 8.9% (1.8%)

• Exports 1.1%, Imports 4.9% -3% of the economy

• Government 0.7% (-0.6%) 17% of the economy

EMPLOYMENT STRONG

• Grew by 587,000 1st Qtr ‘16 -- 22 straight quarters of employment growth

– Last 3 months 347,000 (compared to 608,000 a year ago)

• Total US employment up 2.7M in 2015 (2nd highest year in the recovery, but 85% of 2014)

• Unemployment at 4.7% (May 2016), 5.5% in May ’15

NO PRICE (INFLATION) PRESSURE

• Consumer Price Index 1.1% (2014 CPI 1.6%)

• Producer Price Index 0% (0.9%)

• Construction Price Index: “Road” 3.1% (1.6%), Nonresidential 2.0% (2.2%)

• WTI Oil @ $47.72 a barrel (1 Yr ago $59.44, 2 Yrs ago $102.31)

CONSUMER CONFIDENT FLAT

• Improved, 3% above Dec 2014 – but generally steady through 2015Page 4

US Economy

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EMPLOYMENT

• Highest local employment ever 492,000 (estimated current employment)

– Employment up 19,500 y/y (up 60,000 in four years)

– Jobs (Firm-located) per Resident is 7 jobs for every 10 residents

• Highest Workforce ever 381,500

– Unemployment at 3.3% (down from 8.2%)

– Employed Denver residents 369,000, 12,500 unemployed persons – 16,600 less unemployed persons

– 53% of all Denver residents are employed currently

• Wage growth up 3.3% y/y (2.3% last year)

BUSINESSES

• 3,700 new businesses since July 2011

– 1,750 over a year ago

Page 8

Snapshot

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Firm Employment

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OVERALL PRICES• Consumer Price Index (Denver) is 1.1%, but 4.0% on Housing (rental) only

– Over the last three years, Avg Annual CPI 2.3% and Housing only was 4.8%

• WTI Oil @ $47.72 a barrel (down from $102.31 2 yrs ago)

• Spending on Gasoline fell to 2.5% (3.6% in 2013)

HOUSING• Housing prices strong; 10.9% y/y price chg (3rd out of 20 top cities)

– Price growth since July 2011 is 9th out of top 20 cities, annualized at 7.2%

– However, the Real Price (and price chg) of Housing (mortgage and taxes) is not truly reflected as Denver has very low residential property taxes

SAVINGS IS INCREASING• Personal Savings nationally increased to 5.2% of Income (4.8%)

• Local gasoline savings is about $700 per hhold/per year Page 10

Snapshot

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2016

Denver Washington DC Chicago San Francisco Seattle U.S

12

2016-17OUTLOOK ANDCHALLENGES

1. US is one of the leading economies in the world; others have slowedor slipped into recessionary patterns (BRICs, EU, South America)

2. Economic performance has illustrated the shift from a labor, tolabor/capital, and now to a capital economy

3. US Business Cycles are about 6 years (1973-2008) from start to startof recessions or slow downs

4. A number of leading indicators are suggesting a slowing in theeconomy

5. The fall in resources prices (energy) and commodities has helped the US and Denver economy (sustainable oil is $60-80/bbl)

6. Denver’s economy has outperformed US and peer cities

Over the next 12 months, wage growth positive, employment and sales activity to moderate, and housing demand will moderate.

latePage 13

2016-17 Economic Forecast

5 QUICK FACTS

• Fastest Growing US Urban City last year(Estimate 680,000 residents, roughly 15,000 net new residents annually)

• Highest Employment in Denver’s History

(Estimate 490,000 (firm) jobs, grow ing )

• Unemployment Fallen to 3.3% (12,500 persons)

• Fiscal Health is Strong, with Core Sales/Use Tax leading

• Households are facing varied Prices Changes/ChallengesPage 14

Denver’s Economy

denver workforce development board...denver wdb minutes 6.10.16 page 1 of 5 board handbook –...

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