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WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT _WIRED_

VIEWS: 35 PAGES: 20

									WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT (WIRED) Northern California Regional Competitiveness Network QUARTERLY NARRATIVE PROGRESS REPORT SECTION I: GENERAL GRANT INFORMATION A. Grant Information Grantee’s Name: California Labor and Workforce Development Agency, and California Employment Development Department (EDD) Sub grantee’s Name: Northern Regional Training and Employment Consortium (NoRTEC) Name of the Project: Northern California Regional Competitiveness Network AGREEMENT #: WR-15536-06-60 CFDA#: 17.261 Quarterly Reporting Period: January 1, 2009 – March 31, 2009 Date: April 30, 2009 Contact Persons: Jaime Fall, California Labor and Workforce Development Agency, Assistant Secretary, Workforce Strategies, State Lead EDD (Grantee) – Denise Miller, Workforce Collaborative Section Manager, Sandra Iwatsuru, Workforce Collaborative Specialist NoRTEC (Sub grantee) – Charlie Brown, Executive Director; Stewart Knox, WIRED Project Director B. Summary of General Grant Activities Program Administration:  Butte County Energy Farm (Attachment A) rd  Venture Island Entrepreneurship Events for the North State planning 3 round  Renewable energy CEO Focus Groups work continues through coordination with Chabin Concepts  Projects in progress included: 1.1a; 1.2.a; 1.3.a; 3.1a.1-3; 3.1.b.1-4; 3.1.a.2  Butte College and the local One-Stop operator have designed with several Energy companies, and weatherization groups courses that will meet local employers needs (Attachment B)  Continuation of work with six Community College’s on designing curriculum for employers and renewable energy  Manufacturing workgroup has now begun meeting around their needs  Broadband workgroups being held in multiple counties through the WIRED region  Youth Entrepreneurship Workshops in four counties (Flyer-Attachment C)  Success Stories, Allied Health, Community College report(s) (Attachment D) not funded by WIRED, partner funded  American Recovery and Reinvestment Act (ARRA) planning in all counties  Risk Factor Data Base completed on all 17 counties, continued implementing outreach efforts

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Building off the base of WIRED, have developed several ARRA funding teams to better analyze priority projects within the North State E-clubs for youth entrepreneurs started in Tehama County, further development has begun in additional area’s Modoc, Siskiyou and Del Norte Venture Island North State link www.venturecommunities.com/portal/Northstate Videos and articles included

Innovation Support: Project 1.0 (Public/Private Partnerships) As noted previously, Golden Capital Network (GCN) learned that one of the Venture Island North State contestants has come to terms with an existing Venture Capital round of funding. Name of company and terms of the deal cannot be disclosed at this time. However, it is an important validation item for the innovation-based economic development efforts underway, and has the potential to create numerous jobs in the North State. GCN continues to work closely with 2 North State employers – Digital Path and Iris Connection, Inc. who have innovation products that directly address key items of the Federal Stimulus package – Broadband and Energy. GCN is assisting NoRTEC and the companies in creating opportunities to access resources that can lead to job creation in the North State in 2009. In addition to the above mentioned GCN continues to work through the details of the hub and spokes design of this grant. The “hub and spokes” fundraising presentation and documents were created, and modified based on new additions to the Advisory Board and Regional Director team, and additional information gleaned through initial meetings with prospective investors. The “prospect” list of approximately 100 prospective angel investors was revised as new contacts continued to emerge, while others dropped off the list. A dozen initial meetings were held during mid-March (or scheduled for early April) with prospective investors from throughout the Greater Chico area. It will be a 6-12 month process to raise the angel fund during the current economy with a goal of raising a minimum of $5M in the North State in 2009 with a goal of $10M. Meetings with entrepreneurial companies who are prospective investment candidates also occurred throughout the month to establish a number of high quality companies that the fund could invest in once it is raised. A Regional Director was recruited to assist the effort in the Greater Chico area and two high-potential candidates have been identified in the Greater Redding area. It is anticipated that agreements will be signed with Regional Directors for both Chico and Redding no later than May 15. A Regional Director operating agreement was drafted with support of legal counsel, and has been presented to the Chico Regional Director for review/signing. GCN is creating a plan for a Regional Advisory Board for the seed/venture fund which helps create additional credibility during the fundraising process. The

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mechanics of how the Advisory Board will be structured are being analyzed, with questions such as “what role will they play”, “must they be an investor in the fund to be on the Advisory Board”, “if so, do they receive special preferences over other investors”, “what type of time commitment is expected of Advisory Board members” and, finally, “who are the top 10 people we should seek to be on the Advisory Board and why are they especially important to the effort”. A pipeline of over a dozen promising start-up companies in the North State has been identified as potential investments either by the fund, by the angel groups that will be formed, or via GCN’s extended investor network. Project 1.2 (Regional Support Programs for Entrepreneurship) Four of the local One-Stop operators are currently undergoing designing programs around youth entrepreneurship camps, many using the models from last year’s successful one week camp put on by Juan Casimiro. Siskiyou, Tehama, Del Norte and Modoc counties have undertaken this year’s e-clubs and high school senior’s projects with many partnering with their local Rotary clubs and Local Chambers of Commerce for private sector involvement. This project will enroll over 100 youth in four counties. GCN is actively beginning to design the next round of Venture Island North State The detailed plan for implementing Venture Island 2009 – otherwise known as “The Return to Kahuna Mountain” – has been completed and will be presented to NoRTEC and the Venture Island steering committee during April. The competition will be launched with a comprehensive event targeting all of the key financial and other resources necessary for growing companies, including: • • Government contracting opportunities for small businesses Stimulus, State of California and Federal Small Business Innovation Research (SBIR) opportunities o Healthcare o Broadband o Energy Angel and Venture Capital Investment Banking and Revolving Loan Fund Resources Mezzanine, Private Equity and Merger and Acquisition Opportunities Professional Services panel: Legal, accounting, talent, sales and marketing, etc.

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Through assembling high-level expertise from all of the key subject areas above, and active promotion of the kick-off event, GCN will be able to attract a large number of highly sophisticated growth businesses to participate in Venture Island 2009. From there, the competition will occur throughout the summer. The goal is to generate at least 20 high quality contestants for this season, with an additional 20 companies who start off in the preliminary round and participate in the initial

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screen test process. This will enable the North State WIRED program to provide extensive support to these companies throughout the remainder of the 2009 calendar year, and to identify the top companies from the region who will move on to participate in GCN’s California Business Ascent statewide championship in San Diego in November. Showcase local growth companies in the targeted industry clusters through public forums to better link the workforce to employment opportunities, and also to identify critical skills gaps as observed by growth companies. Project 1.3 (Angel Investment Network) In addition, throughout the remainder of the North State WIRED initiative, GCN continues to work very closely with 20 of the best growth companies that have emerged as a result of the initiative, providing them with a wide array of technical assistance and value added resources. Many of them are seeking capital to help fuel the start up and growth of their businesses. A sampling of these companies includes: • • • • • • • • • • • • • • • Living Elements Elements Patholase FAFCO Advanced Light Systems Shasta Crystals Auctiva Travidia Med Innovations International Innovius Risse Racing Technology Credentify Scott Hatfield (ex Debitman Founder/CEO) New Start-Up Brian Collier Healthcare Start Up All College Rentals

Key elements in this process will identify their workforce needs, and get them in alignment with the services of the workforce investment system as they create jobs and require training. Venture Island has raised visibility about key issues local entrepreneurs face in starting and growing their businesses (talent acquisition and retention, access to capital, regulatory issues, facilities, local exposure, etc.) and put our region on the map as a community known for its support of entrepreneurs. The challenges serve as a celebration of entrepreneurship, and a "can't miss" networking event for entrepreneurs, CEOs, technologists, executives, investors, and others seeking to build the next wave of market-leading companies in the North State!

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Through Venture Island, the WIRED project anticipates being able to add great value to a minimum of 162 entrepreneurial companies in the targeted sectors during 2008 and 2009. GCN identified a number of additional companies who did not participate in the screen test process in Redding but are nonetheless excited about participating in the WIRED initiative and receiving entrepreneur training and related support. In addition to the above 150 companies, the North State planning group is in hopes of bringing together an additional 150 potential candidates that will be helped through various resources in the far ten counties. Renewable Energy Event December 4, Update on CEO panel The purpose of the forum was to facilitate the positioning of the North State as a preferable location for renewable energy (solar, wind, geothermal, hydro, and biomass), development for energy production, and production component manufacturing, energy conservation consumer product development. There were approximately 235 attendees, representing city and county governments, state and federal resource, funding, and regulatory agencies, community colleges, workforce preparation, Economic Development Corporations (EDC), finance, and most importantly, private sector large and small renewable energy producers, and consumer product manufacturers. The conference attendees were informed of the legislative, social, economic, and environmental factors pushing renewable energy development as well as the challenges we need to address in order to facilitate renewable energy growth. Continued support has been dedicated to this event and follow-up with CEO’s has now been initiated through this effort. Several meetings have taken place throughout the region including Modoc, Plumas, Trinity Butte, and Siskiyou counties. Outcomes Linked economic development, workforce development, local elected officials, and county/city administrators with industry leaders throughout the North State; Increased the North State’s competitive advantage in the renewable energy field as a focal point for development by demonstrating commitment and capacity; Determined immediate and intermediate manufacturing opportunities for North State businesses to provide products and services to renewable energy producers; Provided site location requirements of wind, solar, and biomass energy producers and provided the information to local jurisdiction representatives; Clarified renewable energy industry cluster characteristics and needs, relative to financing models for North State private, public, and venture capital resources;

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Defined renewable energy sector training needs, determined potential growth categories, and provided clarification regarding collaborative employee training mechanisms; Next Steps 1. Prepare the fundamental organizational structure necessary to address industry specific needs relative to land use, entitlements, employee training, and financing on the regional and local levels. Currently this is under way with a list of top CEO’s holding meeting to address current issues in coordination with the WIB. (Ongoing) 2. Provide a written report addressing the intended outcomes, accomplishments, and ongoing work to be done. This is ongoing and with the passage of ARRA, the WIB has prepared a matrix of projects that have the most potential of deployment within the counties served through WIRED. 3. Prepare recommendations for long-term implementation of a renewable energy development strategy. The ongoing discussion and design of this is taking place over the last three months again involving high level CEO’s of companies who work within the industry and have relative knowledge to best design projects for the area that make the most sense. Projects 3.1.a.1-3 Local area projects and ongoing entrepreneurship training taking place: Examples of entrepreneurial growth companies Golden Capital continues to work with (or regularly monitors) include:
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Half a Bubble Out (executive summary, private equity fundraising and expansion plan) Local Elements (business plan review, private equity fundraising, expansion plan) Digital Path Networks (coordination with local angel investors, finalizing expansion capital with venture capital and bank, efforts to bring hardware and services to rural customers) IncrediSoles (business plan review, private equity fundraising) UvACide (securing capital from VC funds, participating in due diligence call with investors, introduction to company COO, support in showcasing the company locally and nationally) FAFCO (providing high end visibility to clean tech investors and industry experts, possible fundraising support) Med Innovations International (angel fundraising) Travidia (introductions to strategic equity investors, identification of key technology employment skill gaps and needs) Prime Cinemas (expansion strategy, fundraising options) All College Rentals (expansion strategy, Uptime membership, fundraising introductions, human resources)

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California Academy of Nursing (fundraising strategy, public relations and company visibility) Finger Guard (licensing agreements) College Scheduler LLC (Uptime membership) BagsSelect.com (private equity fundraising options)

Projects 3.1.b 1-4 To date, as reported earlier, the WIRED partners have experienced the on-set of at least 102 new entrepreneurs and several small businesses who have been referred to EDC’s and Small Business Development Centers (SBDC) for help either in business planning or the Revolving Loan Fund information. Though some of these companies are start-ups, others are mature, successful companies that are already on their path to become market-leading companies. As an example, Travidia has 82 employees and substantial revenue but is seeking assistance in making key contacts within the Internet and New Media industries. Through the course of the meetings, Golden Capital Network is working with NoRTEC and the region’s One-Stop employment centers to create strategies to address the talent needs of these entrepreneurial growth companies. The Venture Communities web portal is fully operational and regularly updated with new content and contacts. Please visit www.chico.businessascent.com. A number of the Venture Island companies have been using the portal as a means to provide updates on their business progress. Golden Capital is capturing contact data on all individuals who inquire about the program or who attend any event associated with the network. A “watch list” technology tool has been created that enables visitors of the website to sign up and track activity associated with specific industry sectors and geographies. In this manner, Golden Capital is best positioned to make key value add, industry-based, connections on behalf of entrepreneurial growth companies. The schematic for a database has been built into the back-end of the Venture Communities web portal. It will be a very powerful tool for connecting entrepreneurs, workforce representatives, and other service providers across the region. The Venture Island initiative will serve as the initial program to publicly showcase the North State WIRED project on the web portal. The web portal serves as a market engine for WIRED entrepreneurs and events, a depository of business information, and as a means to promote resources for high growth entrepreneurs located throughout the North State. The web portal is intended to become the “go to” resource for entrepreneurs, service providers, workforce investment organizations and talent in the North State and include a variety of multi-media platforms and a powerful back-end engine for capturing and leveraging data and contacts, and for maximizing communications among/across regions. It will become a critical part of the Venture Island initiative by showcasing the participating entrepreneurs with 2-minute video “Screen Tests” about their businesses. The portal will also highlight

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resources available to businesses, and showcase workforce investment organizations services. The web portal will also serve as a means to showcase job opportunities and talent-related initiatives in the targeted industry sectors of North State WIRED. Another tool of the web portal is the development of a ”News Engine” that will be used to provide additional visibility to local entrepreneurs, particularly around talent related items. GCN will be implementing the “News Engine” as a follow up means to support the entrepreneurs who participate in Venture Island. Project 3.1.a. 2  Identify and categorize targeted industry clusters as well as growth and emerging clusters. This has also been identified through work with EDD’s Labor Market Information Division (LMID) and continued support and efforts will take place throughout the next quarter. LMID has been active in developing the needed information for our local area around renewable energy, and also willing to work with our local partners and employer to meet our local needs. These studies, while essentially done in some standards, remains to be an ongoing work in-progress we have asked that they include the Health-Care sector and Renewable Energy into our work based on employer input and additionally to include a study on the affects of the housing downturn within our local region.  The partners continue to link businesses in the targeted industry clusters to various public, private and nonprofit services, including workforce investment, lay-off aversion, and other critical support resources essential to supporting healthy growth businesses that can provide high-wage high-growth jobs. Included in this effort all One-Stops are working on developing planning stages for continued forums for discussion with employers through the employer focus groups that kicked off in late summer 2008 and have continued through spring 2009. Many of the local One-Stops have also identified that limited staffing of their local Revolving Loan Fund (CDBG) programs has caused many local jurisdictions to send the money back to the state; this is causing a void in the system and a lack of local funds going to businesses. Depending on the county and the city, our local WIRED team will work diligently with our partners to make sure that all available resources are utilized and maximized in our North State. We anticipate working with the cities/counties and our EDC partners to identify which counties and cities are not fully utilizing this fund source. We have begun the process in several counties to date and have met with several local EDC’s to identify potential areas that may need assistance to date as well. Once all are identified, the WIRED team will work with partners and local elected officials to help facilitate a better utilization of the fund source to benefit the county and or city meet the needs of their communities. Continue to assist in identifying business assistance services to reduce the rate of failure of new and emerging businesses; continued workshops will be identified on a regional basis which each of the One-Stops will contribute energy and time to develop ongoing support to these efforts.
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In addition to what GCN and the One-Stops do around WIRED, we have utilized our $30,000.00 Incentive Grant from the state to help identify businesses that may either be laying off or hiring based on work that was done through Chabin Concepts for the indicator study of our local businesses in each county. This project is ongoing and work has begun through our local partners. While we have the reports now generated for each of the 17 counties, we have just now begun trainings with them to develop strategies for future deployment of our One -Stops and EDC’s for this project. Project 3.1. a. 2  During January Golden Capital created the impetus for The North State Job Creators project as a means to specifically add value under this particular work scope item. More detail about the North State Job Creators project is provided below. In Spring 2009, Golden Capital will be launching The North State Job Creators project as a means to specifically add value under this particular work scope item. It is anticipated that over 100 meetings with occur with key North State companies in the targeted industry sectors in 2009. GCN will be linking these meetings with its efforts to form the North State Brain Trust described above. GCN has continued to build a pool of resources through which participating entrepreneurs can access high level expertise. Some of the individuals that are part of this process include:  Ryan Richardson and Bob Nash, Superior California Econ Dev District  Georgene Waterman, Management Consultant  Jeff Cooke, Senior Executive and Wavepoint Venture Fund advisor  Jim O’Neal, Northern California SBA Director  Ashil Abhat, Bank of America  Tom Martin, Durham Pump  Jerry Clark, Pride Industries  Don Krysakowski, CED  Jim Warren, JD Warrant Associates LLC  John Segale, Precision Public Relations  Ram Sah, SAH Group Inc.  Weldon Larson, Independent Business Executive  Aaron Johnson, Independent Business Executive  Timothy Frazier, Liquid Capital  Jack Crawford, Velocity Venture Capital  Jacob Jorgensen, Velocity Venture Capital  Monty Montgomery, Velocity Venture Capital  Jim Finnie, Fantast Corporation  Jeff Miller, Lightforce Capital Corp.  Bob Gruhler, MBA, Business Consulting Group  Gary Patania, A.C.N. Independent Representative  Marc Nemanic, Tri-County Economic Development Corp.  Eric Imbuelten, MBA, A.E.I. Financial Strategies, Inc.
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Erika Bender, Butte Community Bank Dave Burkland, City of Chico City Manager Corley Phillips, Angel Investor Gary Orr, Senior Vice President, Wells Fargo Bank Jerry Roster, Wildcat Angel Investors and local CPA Oleg Kaganovich, DFJ Frontier Brian Haddix, Butte County Chief Administrative Officer Mike Spata, Butte County Assistant Chief Administrative Officer Bill Reichert, Partner, Garage Technology Ventures Jessee Allread, Internal Business Executive City of Chico Economic Development Director Martha Wescoat-Andes CSU, Chico Internship Center and College of Business Representative Ken Haas CEO of InterWest Insurance Services, Inc. Keith Schuler (one of the top 100 companies in New California) Semi-Retired Business Executive and Ex Ernst & Young Global Services Consultant Don Yee Public Relations Expert Josh Morgan of Morgan Dorado Public Relations Branding expert Jim Love of the Altosa Group Pete Bernardoni, Peter Gardner and Dan Lankford with the Venture Capital Firm WavePoint Ventures Redding Business Executive Jay Farquhar Mark Hammer and Nicole Johannsen, Tri Counties Bank Jamie Johanssen, Oroville City Councilor Ernst & Young Manager Partner Keith Flodin Executive Search Firm WorldBridge Partners Managing Director Dave Sanders Redding Business Executive Victor Hynp Redding Business Executive Kevin McCarthy Investment Banker Randal Stoller Equus 11 CEO Collie Christensen Securities Attorney John Yung Graphic Design and Marketing Expert Donna Charbrier Intel Technology Executive Pam Montana Retired IBM Executive Weldon Larson Mark Guzy, Private Investor Kevin Kelso and Chris Chediak of Weintraub Genshlea Chediak Susie Sorensen, Partner, Matson-Isom Accountancy Corp. Lowell Gibbs, Goldman Sachs Ho Nam and Brendon Kim, General Partners, Altos Ventures Gilles Attia, Kevin Coyle and Ian Westberg, DLA Piper Bob Stackhouse and Larry Mandelburg, Merger and Acquisition Consultants Tom DiGiovanni and John Anderson, New Urban Builders Butte County Supervisors Maureen Kirk and Jane Dolan John Kunhart American River Ventures Steve Mills with the Venture Capital Firm DCA Capital Partners Craig Buda, Senior Acct. Executive with OpSource
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Assist in identifying business assistance services to reduce the rate of failure of new and emerging businesses As GCN meets with various entrepreneurs, employers and businesses, it is discussing all of the various needs that they have so that appropriate services can be provided through WIRED to reduce the rate of failure of new and emerging businesses.

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Provide entrepreneur training and related services to employers in the targeted industry clusters As noted earlier in the report, Venture Island North State will soon be launching. The early stages of development and planning have begun for the event to start in early June; outreach to budding entrepreneurs has already started. Link angel investors with community, workforce and economic development efforts to bridge relationships and provide the support and technical assistance to small and new businesses. The new fund thesis is nearly complete, an executive summary prepared, legal documents being finalized, and Power Point presentation for fundraising currently in draft form.

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Provide information about innovation sectors and workforce needs and ways to enhance workforce skills to help the companies succeed and enhance the regional economy. Continued support has been leveraged with senior executive staff of large to medium sized IT companies, and now the added cluster of Manufacturing for the purposes of understanding training needs and Talent Acquisition and Development. Develop internship program around linking graduating students with local businesses. These activities include identifying IT needs of the local industry and Talent Development for a number of local businesses. As stated in prior reports, GCN has placed substantial efforts in developing an internship program around linking graduating students with local businesses and to date has five California State University (CSU) students actively involved in a program, including those from the schools of business, computer science and journalism/public relations. As noted earlier, CSU Chico students Kris Rudeegraap and Jeff Schnepple have launched All College Rentals and GCN has allowed them to operate their business in the GCN offices to date, now in the incubator. A team of CSU Chico students have assisted GCN with the planning and organization of its Venture Forums, and six of the individuals have served as the on-site A/V and technical team at the conferences.

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Assist in the development of peer to peer business support programs , with banks and lending institutions, CPA’s and economic development organizations. In addition to lending we have continued growth and support of IT companies through peer-to peer networks.

C. Status Update on Leveraged Resources The following resources are being developed and some already funded: State of California, Labor and Workforce Development Agency 1. $500,000 specifically to support the WIRED project. (FUNDED) 2. $225,000 in Rapid Response funds to support the WIRED project. (FUNDED) 3. $75,000 requested in Regional Incentive funding in support to the WIRED project. ( $30,000.00 RECENTLY FUNDED) Additional Resources 4. $47,000.00 USDA Rural Development IRP re-tool and transfer to WIB (FUNDED) 5. $215,000.00 Community College/Chancellor Grant Regional Training Grant (FUNDED) 6. Recently applied for a USDA RBEG for $150,000.00, for business counseling and outreach in the renewable energy field (No notice as of 4/3/09) 7. Recently applied for a Wal-Mart Foundation grant for $350,000.00 which includes a $150,000.00 private Revolving Loan Fund for renewable energy start up companies (No notice as of 4/3/09) Total funded to date $1,017,000.00

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SECTION II: REGIONAL METRICS WIRED Performance Measures Together in coordination with the California State, Labor and Workforce Development Agency and EDD, the lead Local Workforce Investment Area has developed a tracking system. The local WIB has developed a web-based program to track numbers of businesses served, types of services provided and number of individuals trained. The system can be viewed at www.nortec.org. Click on the WIRED map then go to WIRED tracking and click on access for reports. The site is up and in this quarter it has been tested and utilized for tracking purposes, for 11 of the 17 counties. Through March 31, 2009 we have approximately 109 events co-hosted around WIRED, having over 5,236 attendees. In addition to the events, business services have included 520 direct businesses served with an additional 24 that participated in the STEM forums with hundreds expected in the next few months through the Employer Focus Groups. Enrollments have begun to come in as well with over 779 enrollments to date. Plan 150 75 15 1,500 1,200 750 1,000 50 $12.00/hr 50 450 Actual 167 103 19 779 470 184 182 12 $19.31 19 177 %/Plan 111% 137% 127% 52% 39% 12% 18% 24% 161% 38% 39%

Number of Business Startups: Business Expansions: Business utilizing incubators: Began Training Activities: Completed Education/Training: Attained Degree/Certificate: Placed in Target Industries: Placed in Post Secondary Ed: Average Wage at Placement: New Expanded Courses: New Jobs Created in Target Industries:

SECTION III: CHALLENGES TO PROJECT PROGRESS Overall Program/Individual Project Administration Challenge: Coordination and communication across all partners. While all partners are working diligently on the project, with our decentralized approach, it was originally difficult to keep track of all activities taking place. Action Taken: Established the web-based calendar with event listings and agendasdescriptions of services. This is an ongoing effort to keep up with all of the activities that have taken place and continue to further develop materials around outreach, coordination and standard materials on business services throughout a very large region. Challenge: Working with local Economic Development Corporations (EDC) on identifying employers. Action Taken: Worked through EDC’s and Chambers of Commerce to help identify businesses. This has increased through the bad economy and working fairly well.

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Challenge: Working with the SBDC’s in each local area and aligning and understanding the goal of the WIRED program. No one person can take on all activities and it will take a team approach. Action Taken: Ongoing and better communication between the operators and the local SBDC’s. This has improved with the launch of the new Entrepreneurship Boot Camp hosted by the SBDC in Butte County in coordination with Butte PIC (local One-Stop Operator), which is the first of many new boot camps that will be co-hosted with the SBDC’s. Challenge: Linking all the good STEM efforts statewide. Action Taken: Ongoing communication with WIRED I (CSA) and all partners in this initiative. In addition it has been determined to work more closely with our local EDC’s and businesses to help define the needs of STEM education in our area and is why we also chose to invest our TA funds into STEM asset mapping. This has been an ongoing process now to work with local employers who have been identified as our STEM mentors for the next year through the forums. Currently working with Butte Community College to develop programs that will be web based and around STEM occupations to further develop the STEM objectives.

SECTION IV: PROMISING INNOVATION PROCESSES and SUCCESS STORIES Promising Approaches Venture Island Overview A field of innovative, high-growth potential North State (and surrounding area) start-up and existing companies compete to build their businesses, receive Big Kahuna designation, and land a substantial cash infusion! During their 5-month stay on Venture Island, company founders benefit from executive mentoring and advising, peer-to-peer networking, and high visibility for their businesses in the community and beyond – all the while supporting a noble community cause (***hoping we can strike a partnership with the North Valley Community Foundation on this***). Once a month contestants visit Venture Island to compete on a variety of missioncritical business topics. Judged by a panel of subject-area experts, the audience, and also by peer competitors, the field of eight entrepreneurs is eventually narrowed to three and culminates in the Finalist Showdown competition. The monthly challenges serve as a celebration of entrepreneurship, and a “can’t miss” networking event for entrepreneurs, CEOs, technologists, executives, investors, and others seeking to build the next wave of market-leading companies in Redding and the North State! Venture Island kicked-off with an initial round of screen tests on September 4 at the Cascade Theater and concludes with the Finalist Showdown and check presentation on October 31 as part of an Awards ceremony to be held in Redding.

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All contestants are featured on the Venture Island-North State page of the Venture Communities “VC Online” web portal. Contestants may upload their 2-minute “screen tests” video (taped as part of the selection process), business plan executive summary and other pertinent information about their venture that they wish to have available for viewing by potential investors, customers, executives, the media, and the public-atlarge. The VC Online web portal also contains detailed information about Venture Island-North State, marketing information about each monthly Entrepreneur Challenge, and serves as a news engine for contestants, sponsors, panelists and organizers. To create continuity and “buzz” in-between the monthly Entrepreneur Challenges, highlights of each Venture Island event are compiled into a brief “episode” viewable on the web portal. What are the Objectives of Venture Island-North State  Raise awareness in the region about the vital importance of homegrown entrepreneurship and angel investing to the local economy  Put North State (and the region at large) on the map as a community known for its support of entrepreneurs  Provide assistance to at least 20 North State entrepreneurs (i.e., help them start, help them grow, help them create jobs, help them secure resources)  Institutionalize Venture Island-North State as the “can’t miss” monthly networking venue in Redding, and the Venture Communities “VC Online” portal as the hub of entrepreneur and investor-related activity in the region nd  Make season 1 of Venture Island-North State so compelling that the 2 season st will be even bigger and better than the 1  Raise visibility about key issues local entrepreneurs face in starting and growing their businesses (talent acquisition and retention, access to capital, regulatory issues, facilities, local exposure, etc.) NOTE: The core team continues to meet on almost a weekly basis and communicates daily via e-mail. This is noted for the fact that information is the key to making this project a success. One of the key components of the project is to truly transform the local area and to achieve this end, we must continue to involve and remind all parties about the importance of the WIRED project.

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Promising Practices (Community College Allied Health Report) partner funded

Industry Overview
Industry Composition and Growth
In Northern California, there are approximately 5,900 health care organizations, ranging from small outpatient facilities to long-term care units to large urban hospitals. As shown in Exhibit 1, nearly half of all healthcare jobs are in the ambulatory health care services sector, one third reside in hospitals, and the remaining 19 percent are classified as nursing and residential care facilities.

Exhibit 1 – Health Care Organizations by Industry Sector in Northern California 1 Exhibit 2 shows the distribution of health care employers by size. Although the majority of firms in the healthcare industry are small – employing less than 5 workers – organizations with 100 or more employees comprise more than half of the industry’s jobs. In the Northern Inland region, for example, three percent of the organizations represent more than half of the region’s healthcare jobs. The distribution ratios are similar for all three regions in Northern California. Exhibit 2 – Health Care Organizations by Size of Employment in Northern California 2
Percent of organizations with 21 100 employees: 8% Percent of organizations with 11 20 employees: 8% Percent of organizations with 101 - 500 employees: 2% Percent of organizations with 501 + employees: 0.4%

Percent of organizations with 5 10 employees: 19%

Percent of organizations with less than 5 employees: 63%

a.
1 Economic

2 InfoUSAData,

Modeling Specialists, Inc., Fall 2008 2007 16 of 20

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Between 2002 and 2007, the health care industry added 17,000 jobs in Northern California, growing twice as fast as the overall economy (15 percent compared to seven percent). Based upon EMSI’s estimate of employment in 2007, the health care industry is projected to grow 23 percent by 2017 with the largest growth in the Greater Sacramento region. 3 However, allied health employers in Northern California anticipate much more modest growth in the very near term –less than one percent over the next 12 months, indicating that the economic recession has restrained short-term growth.4 Table 1 – Ten Year Projections for the Health Care Industry by Region 3
Industry Description Ambulatory health care services Hospitals Nursing and residential care facilities Total Inland 2007 12,817 8,223 5,456 26,497 2017 16,718 8,573 6,629 31,920 % Chg 30% 4% 21% 20% Coastal 2007 6,252 3,950 1,746 11,947 2017 7,293 4,588 2,028 13,909 % Chg 17% 16% 16% 16% Sacramento 2007 2017 41,672 29,813 16,770 88,255 52,649 36,020 20,789 % Chg 26% 21% 24% Northern California Total % 2007 2017 Chg 60,741 41,986 23,972 76,660 49,181 29,446 26% 17% 23% 23%

109,458 24%

126,699 155,287

Factors Driving Growth
The demand for allied health workers is being propelled by four factors: (1) population growth, (2) the aging population, (3) the aging workforce, and (4) legislative policy. Population Growth The need for additional health care services will steadily increase as the population grows. Between 2002 and 2007, the population in Northern California grew by 9 percent, slightly faster than the state’s overall growth rate of 7.1 percent. During this same time period, the number of health care establishments grew by nearly 11 percent from about 5,300 establishments in 2002 to 5,900 in 2007. Total wages also increased by 46 percent,5 indicating a substantial expansion of existing health care payroll. Table 2 shows the population growth rates by region. The Greater Sacramento region grew aggressively with the addition of over 220,000 people (10.7 percent), while the Inland and Coastal regions grew modestly with the addition of 34,000 (5.7 percent) and 10,435 (3.4 percent) residents respectively.

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3 4 5

Economic Modeling Specialists, Inc., Fall 2008 BW Research, Allied Health Survey Results, January 2009 EDD Labor Market Information Division, Quarterly Census of Employment and Wages 17 of 20

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Table 2 – Recent Population Growth by Region6
2002 Inland Coastal Greater Sacramento 2007 2002 – 2007 Absolute Change 2002 - 2007 % Change

Northern California Total
California

606,226 304,020 2,139,696 3,049,942 35,063,959

640,661 314,451 2,368,861 3,323,973 37,559,440

34,435 10,431 229,165 274,031 2,495,481

5.7% 3.4% 10.7% 9.0% 7.1%

Over the next 30 years (2007 – 2037), the California Department of Finance estimates that the Inland and Greater Sacramento regions will grow by 60.9 and 51.6 percent respectively, which is significantly faster than the state’s overall expected growth rate of 40.4 percent. The Coastal region is expected to grow at a modest rate of 30 percent. Table 3 – Population Projections by Region 6
2007 Inland Coastal Greater Sacramento Northern California Total California 2037 2007 – 2037 Absolute Change 2007 - 2037 % Change

640,661 314,451 2,368,861 3,323,973 37,559,440

1,030,685 408,695 3,592,267 5,031,647 52,749,782

390,024 94,244 1,223,406 1,707,674 15,190,342

60.9% 30.0% 51.6% 51.4% 40.4%

Overall, northern California will see more than a million and half new residents in the next thirty years, requiring health care organizations to expand their service capacity by building new facilities and adding allied health professionals to their payroll. Aging Population According to the Institute of Medicine of the National Academies, California (and the nation) is not ready to support the health care needs of the aging population. By 2011 the first baby boomers will turn age 65 and by 2030 the number of older adults will almost double to 11.4 million (see Exhibit 3 below). This will have a significant impact on the health care industry for two key reasons. First, the majority of older adults suffer from at least one chronic illness and are likely to visit a physician’s office twice as often as the average. Second, the baby boomer generation is expected to live longer than any previous generation, increasing and shifting demand for certain types of care.

‘California is not ready to support the health care needs of the aging population’

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6

California Department of Finance, Population Estimates 18 of 20

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Exhibit 3 –Percent Change in Population Distribution between 2010 and 2030 7
140% 120% 100%
Percent Change

80% 60% 40% 20% 0% 0-9 10-19 20-29 30-39 40-49 Age 50-59 60-69 70-79 80+

Aging Workforce As the population ages and baby boomers retire in larger numbers, the demand for allied health care professionals will outpace the current training systems capacity to produce new graduates. In 2000, 14 percent of the state’s population was over the age of 60. By 2020, it’s estimated that 20 percent of California’s population will be over the age of 60. 8 In the short term, Northern California allied health employers estimate that 5.1 percent of their current employees will retire in the next three years.9 When applied to industry employment estimates, about 6,400 new workers will be needed to fill in behind employees retiring from the health care system. Legislative Policy The California state legislature enacts scope of practice (SOP) laws that regulate the delivery of health care services. SOP laws establish the scope of services that may be provided by specific professions, sometimes increasing the overall demand. For example, the 2004 change in nurse staffing ratios significantly increased the demand for RNs across the state. In addition, the California Department of Public Health Laboratory Field Services (subsequent to a California legislative mandate) established a licensing process for medical laboratory technicians (MLT). The new SOP law allows MLTs to perform routine laboratory tests for diagnosis and treatment under the supervision of a clinical laboratory scientist (CLS). Unlike the four years of advanced education necessary to become a clinical laboratory scientist, MLTs are required to complete only 60 units of education with an emphasis in science – e.g. an Associate a.
7 8

California Department of Finance, California Age Projections Calculation based on California Department of Finance, California Age Projections 9 BW Research, Allied Health Survey Results, January 2009 11/1/2009 19 of 20

of Science Degree in Medical Laboratory Technology. This new requirement may help to reduce the current and projected shortage of CLSs by increasing the pipeline of trained laboratory workers. (Please see attachment for full report)

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