Training Proposal for:On-Time Air Conditioning and Heating, Inc. dba ServiceChampionsAgreement Number: ET19-0326Panel Meeting of: December 7, 2018ETP Regional Office: San Francisco Bay AreaAnalyst: R. JacksonPROJECT es: Priority RateSETConstruction (C)Services (61,71,72,81,92)Priority Industry:CountiesServed:Alameda, Contra Costa,Placer, Santa er of Employees in:CA: 230Turnover Rate:15%Managers/Supervisors:(% of total trainees)U.S.: 230Worldwide: 230N/AFUNDING DETAILIn-Kind Contribution: (100% of TotalETP Funding Required)Total ETP Funding 500,000 312,000ETP 130 - Single (08/29/18)1 of 5

On-Time Air Conditioning and Heating, Inc.dba Service ChampionsDecember 7, 2018ET19-0326TRAINING PLAN TABLEJobNo.1Job DescriptionType of TrainingBusiness SkillsCommercial SkillsComputer SkillsContinuousImprovementRetraineeSETPriority RateRange ofEstimatedHoursNo. ofClass /TraineesCBTLab2008-2000AveragePostCost per RetentionTraineeWage 1,560 22.77Weighted Avg:60Minimum Wage by County: SET Statewide: 22.77Health Benefits:YesNoThis is employer share of cost for healthcare premiums –medical, dental, vision.Used to meet the Post-Retention Wage?:YesNoMaybeUp to 2.08 per hour may be used to meet the Post-Retention Wage.Other Compensation: Incentive pay (“bonus”), which is a normal and recurring part of theCompany’s employee compensation for all occupations, may be used in addition to health benefitsfor some trainees to meet the ETP minimum wage. The average bonus amount was 6.18 perhour. Approximately 10% of the staff (Leads, Dispatch/Customer Service, Service Technicians/Installer) may need incentive pay, in addition to health benefits, to meet the ETP minimum wage.OTA also has a formal Commission Plan that is a regular part of the compensation structure forService Technicians/Installers, which is paid on a monthly basis and is based on a commission ratefor the sales achieved. The average monthly Commission amount was 6.42 per hour.OTA is not a Retail Trade business. As such the occupations paid by bonus/commission do not fallunder the Panel’s lowest priority for funding.Wage Range by OccupationOccupation TitlesWage RangeEstimated # ofTraineesLead17Operations Staff/Support Staff18Dispatch/Customer Service18Service Technician/Installer147ETP 130 - Single (08/29/18)2 of 5

On-Time Air Conditioning and Heating, Inc.dba Service ChampionsDecember 7, 2018ET19-0326INTRODUCTIONFounded in 2003, and headquartered in Pleasanton, On-Time Air Conditioning and Heating, Inc.dba Service Champions (OTA) ( is a residential contractor thatinstalls, services and maintains a wide variety of air conditioning, heating and indoor air qualityproducts including thermostats, furnaces, heat pumps, duct work and insulation. OTA servesresidential customers in 120 cities across Northern California.This is OTA’s second ETP project, the second in the last five years. Training will be delivered tostaff in five locations (Pleasanton, Concord, Rocklin, San Jose, and Livermore).Veterans ProgramOTA works directly with Hicks professional group, a certified disabled Veterans BusinessEnterprise, to recruit and hire Veterans in addition to internal hiring done directly by OTA whereVeterans are targeted for hiring.PROJECT DETAILSSince 2004, OTA has grown from 20 to 230 employees. Demand for heating, ventilation and airconditioning (HVAC) services is projected to increase in the next five years. This is due in part tothe growing popularity of energy-efficient systems for home installation. This demand is alsorelated to Title 20 and 24 California Code of Regulation requirements that include new efficiencystandards be met by 2020. For instance, new Title 24 California Code of Regulations require a28% overall energy savings (2016-2020) leading to the development and implementation ofemerging technologies to improve and reduce home energy use.ETP-funded training will enable the Company to provide skills-upgrade training for incumbentinstallers and technicians to stay current with new technologies and systems used in theresidential HVAC construction industry.The prior ETP agreement helped OTA upgrade skills to improve the installation of SmartEquipment such as smart thermostat and equipment integration which allows for remote controlof systems by the homeowner. OTA also offered training on Avaya IP Office, a new phone systemthat integrated with the Company’s software to streamline customer service calls.Training in this proposal will focus on Service Titan training, a new ERP system with cloudcapability to help streamline activities across multiple departments.Training is needed to meet specific training goals aligned with the Company’s strategic plan.These goals include; increased sales, broadening service offerings to include new products orservices such as Ductless systems, hybrid heat/cooling systems, and developing new serviceterritory in the Sacramento region.Impact/OutcomeWith ETP support for the supplemental training proposed, OTA will; Meet industry wide talent shortfalls created by anticipated increases in retirement thru 2022while meeting simultaneous growth in the demand for services. Improve efficiency and competiveness with better use of the new Service Titan ERPsystem and upgrades in technical skills across departments.ETP 130 - Single (08/29/18)3 of 5

On-Time Air Conditioning and Heating, Inc.dba Service ChampionsDecember 7, 2018ET19-0326 Upgrade skills in Commercial HVAC services and the use of new software and tabletcomputer tools. Support the growth in demand and expansion into new territories as the Companycontinues to grow.Special Employment TrainingUnder SET, an employer is not required to demonstrate out-of-state competition. Trainees mustbe earning at least the statewide average hourly wage at the end of the retention period.Training PlanCourses will be delivered through Class/Lab and E-Learning methods. While some topics aresimilar to those provided in the prior agreement, the training in this proposal is updated from priorcurriculum.Business Skills: Training will be offered to all occupations. Training will upgrade quote andfinance skills. Topics such as Marketing and Communication skills will be offered. In addition,training on new products and services will help employees better assist residential customerservice and dispatch functions.Commercial Skills: Training will be offered to Service Technicians/Installers, and Frontline Lead.Trainees will receive courses such as principles in Electronics and System Troubleshooting toupgrade skills needed to serve residential customers with their cooling and heating needs. Thistraining is designed to help OTA keep pace with new innovations such as tankless water heatersand indoor air quality products that are installed with ducts that reduce allergens and mold.Computer Skills: Training will be offered to all occupations. Training will be provided basedspecifically on the systems that each individual trainee utilizes in their daily job function. Topicssuch as ServiceTitan ERP software training will be delivered to help the company meet efficiencygoals.Continuous Improvement: Training will be offered to all occupations. The goal is to improveOTA’s efficiency and productivity by implementing improved processes throughout theorganization. As the Company continues to grow and add new products and technologies, skillssuch as change management, leadership skills, process mapping/process improvement, projectmanagement, and time management will help the Company work efficiently to remain competitive.Commitment to TrainingETP funds will not displace the existing financial commitment to training. The Company’s trainingbudget for all California sites is approximately 570,000 for 2019. The Company provides newhire orientation, Cal OSHA required training, ladder safety, lifting safety, hydration on-the-jobtraining and sexual harassment prevention training at its own expense.In addition, the Company will be providing CPR certification training to all of its Technicians andInstallers. Mandatory training is delivered company-wide (e.g. – Sexual Harassment Prevention& Cal OSHA), but some training may be department or job-specific training. OTA delivers trainingthrough various methods- classroom settings, lab settings, via on-the-job training and by using ELearning for the Company’s satellite offices. Safety training is, and will continue to be, providedin accordance with all pertinent requirements under state and federal law.ETP 130 - Single (08/29/18)4 of 5

On-Time Air Conditioning and Heating, Inc.dba Service ChampionsDecember 7, 2018ET19-0326 Training InfrastructureOTA’s Training Director will be in charge of the ETP project, along with one Manager at each ofits five participating facilities to help manage the project internally. OTA has three internal trainersidentified to deliver the training. OTA has also hired an experienced third party administrator,Training Funding Partners, to assist with administration.RECOMMENDATIONStaff recommends approval of this proposal.PRIOR PROJECTSThe following table summarizes Contractor’s performance under an ETP Agreement that wascompleted within the last five years.Agreement No.Location (City)TermApprovedAmountPayment Earned %ET17-0197Pleasanton9/6/169/5/18 413,000* 54,236 (13%)*Based on ETP Systems, 21,378 hours have been tracked for potential earnings of 100% of approvedamount. The Contractor projects final earnings of 100% based on training delivered.DEVELOPMENT SERVICESOTA retained Training Funding Partners (TFP) in Fountain Valley to assist with development ofthis proposal for a flat fee of 22,500.ADMINISTRATIVE SERVICESTFP will also perform administrative services in connection with this proposal for 13% of paymentearned.TRAINING VENDORSTo Be DeterminedETP 130 - Single (08/29/18)5 of 5

On-Time Air Conditioning and Heating, Inc.dba Service ChampionsET19-0326Exhibit B: Menu CurriculumClass/Lab Hours/ E-learning8-200Trainees may receive any of the following:BUSINESS SKILLS Business Processes & Procedures Client Service/ Communication Skills Coordinating and Scheduling Service/Dispatching Equipment and Industry Overview Finance/Accounting Skills Logistics/Warehouse Skills Maintenance/Membership Programs Marketing Sales/Quoting Train-the-TrainerCOMMERCIAL SKILLS Electricity/Voltage & Schematics Principles of Electronics Residential Cooling/Heating Equipment and Installation Skills Residential Cooling/Heating/Maintenance Skills Residential Ducting/Equipment and Installations Residential Indoor Air Quality Residential Smart Equipment Technology/Controls System TroubleshootingCOMPUTER SKILLS Call Center/Dispatch Application Skills Intermediate/Advanced Microsoft Office (Word, Excel, PowerPoint) Payment Card Certification Service Titan ERP System Intermediate/Advanced Tablet Computer ApplicationsCONTINUOUS IMPROVEMENT Change Management Skills Leadership Skills Problem Solving Skills Process Mapping/Process Improvement Skills Project Management Skills Root Cause Analysis and Remediation Time Management SkillsNote: Reimbursement for retraining is capped at 200 total training hours per trainee,regardless of the method of delivery.ETP 100 Exhibit B Menu Curriculum (07/07/14)1 of 1