STANDARDS AND MANAGEMENT COMMITTEE Minutes
THE PERALTA COLLEGES GOVERNING BOARD
TUESDAY 17 NOVEMBER 2009
Present: Trustees Withrow, Gulassa, and Handy, Student Trustees Thompson and
Mouton-Patterson, Wise Allen, Joseph Bielanski, Mark Greenside, Debra Weintraub.
1. Review and discuss the status of Contract/Customized Education within The
Peralta Colleges. What are the strategy, timeline and obstacles? What business
plan has been developed?
Foothill DeAnza and Chabot have contract education programs. Chabot is informal and
runs outside of their contract. Foothill DeAnza contract education is divided into credit
and non-credit, paying faculty on an hourly basis, and their model was examined. They
use a differential rate pay. We had proposed a two-tier system for pay purposes, which
seems to be the current negotiation stumbling block. San Francisco also has a two-tier
system, one for adult education credit/non-credit. They generate $2-3 million (M)
annually. It was felt that Foothill DeAnza was not terribly successful financially.
We’re down to 5-10% for our contract level, which is very low for the State. In the
State of Washington, they are very happy with their program. Our current contract has
provisions for contract education. The Trustees also want to see a business plan related
to contract ed. Judy Tang from SF State presented her model to the District as a totally
self-supporting program. Self-starting funds are paid back when the program becomes
self-supporting within a year of starting. Why hasn’t it worked here previously? Our
market hasn’t changed, and no new demand has emerged. We would need to pursue
new revenue avenues. A time table has been proposed, exploring a potential market
place from January to June with planning and marketing, followed by training, and to
start in July 2010 with 10 contracts. It would then double in the following year, add
summer classes, and increase after that. She just identified the areas, not the
contractors.
We need to know what the market place holds in this area. Suggestions to explore are
Wells Fargo, Clorox, Kaiser, and Bank of America. SF City College lists their
participants on their website. A market study needs to be done, talking to some of the
major companies and training staffs. The key is to be able to deliver a quality product
with superior work in a timely fashion. We have to be in place prior to recruiting.
Educational institutions are needed close to their employee center. The business needs
to be sold, with people familiar with the product. We could bring employees in on a
commission basis to assist. Many sales people are underemployed now which could be
tapped into. Many companies are not hiring and prefer to outsource. Faculty are not
opposed to this. The union is not sure that there are big contracts or money available,
and they are not convinced that the salary range is the stumbling block. Rio Honda
offers traffic school, travel, and parenting and nutrition classes. A third-tier of payment
seems to be a stumbling block to faculty. The union also wants to ensure that their own
part-time faculty can teach the necessary classes. Spanish, math, statistics, and
communications are large programs at Wells Fargo. Kaiser has similar needs. Medical
staff need social science curriculum. The current contract presents that anyone can be
hired, and the salary schedule is listed. $150 - $350/hour is the projected plan rate in
Judy Tang’s plan, with 50% allotted for management salary fees. In Washington DC,
the Trustees spoke to the Veterans Administration (VA) to address the population of
Standards’ and Management Committee Minutes: November 17, 2009
returning vets that have trauma syndromes. We have veterans and National Guard
members that need service. There was a suggestion to have one in-house person to
investigate what needs are in the community and to create a needs assessment plan. Dr.
Allen would suggest someone who has experience doing such plans in the East Bay.
Bechtel is a possible company to approach. Judy is retired. There was a suggestion for
the plan to indicate how monies will flow back into the classroom. The goals are to
recover all direct and indirect costs, to not compete with existing programs, to offer
win-win payoff to all those participating, to be beneficial to the industry and
community, and to be create a business and not a bureaucracy. The coast guard and
merchant marine are other possible employers to approach.
There are a lot of independent, free services in the East Bay competing for this market.
Dr. Allen and the union will meet to create a speculation plan with a timeline. The
Chamber of Commerce could be another possible business. A package of possible
areas needed for businesses to succeed was suggested. There was an idea to have part
of the funds return to the college, department, and district through a controlled process
related to how they are expended. The scope of work and deliverables will be defined,
and then the next step would be to address salary ranges. Homeland security is also
going into the education business. Company training departments may be the first to be
cut during hard economic times. Faculty also want to ensure that existing programs are
not ignored, as new programs are developed. Personnel were hired in the past to pursue
these programs, but it never succeeded. Washington State brings in 30% of their
budget from contract education.
2. Review and discuss the status of Fee Based Education within The Peralta
Colleges. What are the strategy, timeline and obstacles? What business plan has
been developed?
Dr. Allen shared that we can’t make money in this area. The Ed Code says we can’t
make a profit, and can only charge what it costs to provide a service. That restraint
blows out our cap. We do fee based programs now, such as the auto shop. We contract
out, computing out the facilities and instructor costs, which then goes back to the
departments as a break-even program. The auto department can bring in some funds
under this to pay for expenses. There was a suggestion to have a COA club for
$200/year to use the tennis courts, for example. Laney club $350/year could also
provide a card for swimming, to bring in funds we don’t already receive. Lifelong
learning is a way to provide something to the community. Citrus College has fee-based
courses. An adult school example was given where students were willing to pay
anything that was suggested just to be able to participate in a beloved class at Alameda
adult school. We are late comers into this game, and options may already be saturated.
Legislation in this area should be changed.
The next meeting is scheduled for December 17th from 4:30 – 6:30 pm in the
Chancellor’s Conference Room.
Respectfully submitted,
Roxanne Epstein
Assistant to the Chancellor
466-7203
repstein@peralta.edu
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