may 2009 business magazine

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July 16, 17, 18 & 19

BUSINESSM A G A Z I N E

Manufacturer & Business Association VOLUME XXII, NUMBER 5 MAY 2009

The Passport Group pg.14

A Specialized Approach to Reaching Your Realty, Development and Property Management Destinations

GEORGE W. BUSH43rd President of the United States

Reservations: Please call Tracy Shepard at 814/833-3200 or 800/815-2660

104th ANNUAL EVENTWednesday, June 17

Bayfront Convention Center 5:30 Member Cocktail Reception

22DEPARTMENTS >4 / Business Buzz18 / HR Connection

21 / On The Hill24 / Legal Q&A32 / People Buzz

26

14FEATURES >3 / SpotlightPaul Vojtek, chief executive officer of Erie Water Works (EWW), talks about EWW’s ongoing improvement project and the Tap Into Erie program that was developed to attract new business to the Erie region.

14 / The Passport GroupThree companies, one name… Greg and Lisa Rubino and colleagues discuss how they’ve created an integrated approach to real estate acquisition, development and management.

26 / Carrying Out a DreamErie-based manufacturer Industrial Sales & Mfg. Inc. continues its work on the cancer-destroying device developed by the late inventor John Kanzius.

May 2009

EDITORIAL >5 / Health MattersThe increasing popularity of e-benefits.JOHN GALLEY

9 / Legal BriefThe ABCs of Pennsylvania’s Uniform Environmental Convenants Act.ROBERT E. GANDLEY

13 / Financial AdviserCOBRA continuation of health care for terminated employees.RUTH SHINDLEDECKER, CEBS, SPHR, MBA

31 / e-LearningIs e-Learning right for you?RON MAY

< SPECIAL SECTION Insert / Training ScheduleLearn about the upcoming professional development and computer courses available through the Association’s Training Department — the leading training resource in the area.

Read this issue of the Business Magazine and send us your feedback at www.mbausa.org!

3

May 2009 > www.mbausa.org > 1

“NWIRC helped us find our market.”Mike Chesley, general managerComposiflex, Inc.Erie, Pa.

For more information on how the NWIRC can help your business define its market and plan for growth, call us at one of our regional offices:

Erie: Jack Watts or BJ Lechner (814) 456-6299Meadville: Susan Hileman (814) 572-2077Dubois: Gene Samanka (814) 590-1219Mercer: Amy Weller (724) 699-5787

www.nwirc.org

As Mike Chesley can tell you, Composiflex manufactures some pretty innovative stuff for a lot of different industries—from aerospace to medical to ballistics.

But when it came to its high-performance composite spring division, they were seeing sluggish growth despite offering a superior product at a competitive price. Admittedly, part of the problem was that they weren’t sure what—or where—their market was.

That’s where the NWIRC came in.

“The NWIRC helped us to really get a feel for this market like we’ve never had before,” said Chesley.

“Now, not only do we have contact information for every prospective customer out there, we also know exactly what the market potential is for this particular product line. And that knowledge is priceless.”

SPOTLIGHT > by Jessica Crocker

VOL. XXII, NO. 5 MAY 2009

© Copyright 2009 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned un-less accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

Mission StatementThe Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer John Cline & Business Dale Deist Association Board Timothy Hunter of Governors Dan Ignasiak Richard Knight Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Timothy G. Shuttleworth Lorenzo Simonelli Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Contributing Jessica Crocker Writers John Galley Robert E. Gandley Ron May Ruth Shindledecker, CEBS, SPHR, MBA

Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 [email protected]

Photography Bruce Bennett Bruce Bennett Photography 814/899-1161

Ron Stephens La Mirage Studio 814/835-1041

Design, Production Printing Concepts Inc. & Printing [email protected]

Erie Water Works is currently undergoing a multiphase system improvement project. What improvements have been made thus far? Erie Water Works is currently working on a three-phase project to upgrade our Richard S. Wasielewski Water Treatment Plant (WTP). More than $6 million was spent on the completion of Phase I, which included the installation of new high-efficiency pumps, piping and electrical switch gear. Phase II will address the treatment process including the installation of state-of-the-art Ultrafiltration Membranes, which will replace our current conventional sand and charcoal filtration system. Recently EWW awarded a design contract to Camp Dresser & McKee, Inc. of Cleveland, Ohio, to develop a procurement specification for the new membrane filtration equipment. Once the membrane supplier is identified, the renovations to the treatment plant will be designed around that supplier’s membranes. Phase III will include the architectural and structural improvements intended to restore the historical features of this 77-year-old facility. EWW, in conjunction with regional economic development groups, launched a major effort to market Erie’s freshwater resources in order to attract new business. Please explain. The initiative is called “Tap Into Erie,” which promotes Erie and its abundant water supply. With the improvements to the Wasielewski WTP, EWW is able to offer the highest quality water available through a municipal water system at this time. EWW has added additional storage to the system, which provides a continuous supply of water to all of our customers, and with other improvements made throughout our system over the last 10-12 years, has reduced its “unaccounted for” water from nearly 65 percent to approximately 20 to 25 percent. This eliminates lost water that goes out through the system that never reaches a customer and is never billed. Eliminating that lost water increases our excess capacity and reduces expenses. All of these improvements make the Erie region very attractive to businesses that rely on the availability of dependable, reasonably priced, high-quality water. One notable incentive for new business is EWW’S Economic Development Policy that reduces water rates by 40 percent for a period of five years from the date of initial billing. How does this compare to other cities or states? The 40-percent discount is currently available to new commercial and industrial businesses for a period of five years. I’m not aware of any other utility that offers that type of discount. We have had 84 companies take advantage of this incentive. What cold hard facts should a potential business know about Erie’s greatest asset? EWW provides high-quality water that meets or exceeds all local, state and federal regulations. With the improvements that will be completed by 2012-2013, the water quality will far exceed projected rules and regulations for the foreseeable future. Our infrastructure has been upgraded with the investment of more than $140 million since 1992, and there is ample space available in the Erie region to take advantage of existing infrastructure. For example, the 12th Street corridor, East Lake Road and the GAF site have the infrastructure in place to allow those areas to be redeveloped for any level of water-intense businesses. More recently a rate survey was performed by the Pennsylvania Water Authority Association comparing water rates in Pennsylvania. Of the 132 responders, Erie Water Works ranked the 16th lowest. This clearly establishes EWW rates as extremely affordable and very appealing to any business that may require large volumes of water. Combine that with our planned water-quality improvements and EWW feels it’s an organization on the brink of world-class status.

Paul Vojtek is the chief executive officer of Erie Water Works, which over the past 17 years has invested more than $140 million in rehabilitating, upgrading and improving the region’s water supply for more than 52,000 residential and commercial customers. Vojtek recently sat down with the Business Magazine to talk about how Erie Water Works (EWW) is tapping in to the region’s greatest asset in order to attract new business and spur economic development.


Living Community, a continuing care retirement community (CCRC), located at 2323 Edinboro Road in Greater Erie, has been awarded a five-year term of accreditation.

A community receiving a five-year term of accreditation has voluntarily put itself through a rigorous peer review process and demonstrated to a team of surveyors during an onsite survey that it has a commitment to conforming to CARF-CCAC accreditation conditions and standards.

For more information, visit www.springhillerie.org.

BEHREND TO HOST ENGINEERING DESIGN CONFERENCEThe School of Engineering at Penn State Erie, The Behrend College, will welcome 20 regional and national sponsors to its annual Richard J. Fasenmyer Engineering Design Conference, starting at 8 a.m. Saturday, May 2, in the Research and Economic Development Center (REDC).

This year’s conference will feature 156 senior

Business Buzz DEPARTMENTS > Contact: Jessica Crocker

GANNON STIMULUS INITIATIVE INCREASES FINANCIAL AID Gannon University’s Board of Trustees authorized up to $2.6 million more this year for financial aid as a part of the Gannon Stimulus Initiative. Additional financial aid will be available to current and prospective students, particularly those whose economic circumstances have adversely affected their ability to pay tuition.

Students eligible for a portion of the Stimulus Initiative could include those whose parents have lost their jobs or are experiencing unusual circumstances, and self-paying students who have become unemployed.

For more information, visit www.gannon.edu.

SPRINGHILL AWARDED CARF-CCAC ACCREDITATIONThe Commission on Accreditation of Rehabilitation Facilities — Continuing Care Accreditation Commission (CARF—CCAC) recently announced that Springhill Senior

engineering students who will present their capstone projects, the final requirement for many before graduation. The half-day event includes 58 technical presentations, as well as Keynote Speaker H. Allan Kidd, director of emerging technologies and worldwide engineering services for Dresser-Rand. His talk, which is free and open to the public, will begin at 12:15 p.m. in the REDC’s Clark Café.

For more information, visit www.behrend.psu.edu.

FRENCHCREEK PRODUCTION LAUNCHES NEW WEB SITEFrenchCreek Production, a custom manufacturer and supplier of Fall Protection and Rescue/Recovery Systems, has launched a new Web site, www.frenchcreekproduction.com.

While the Web address remains the same, the new site provides FrenchCreek’s product line while being more dynamic and user-friendly - allowing viewers to find the items they need quickly and accurately without confusion or prolonged searching.

The McDonald Group, L.L.P.

456 West Sixth Street Erie, PA 16507

814‑456‑5318 tmgattys.com

A Legacy of Trust Since 1986

James D. McDonald, Jr.

Gary Eiben

Thomas J. Buseck

Joseph P. Conti

Daniel J. Pastore

Gary V. Skiba

John J. Estok

Bethany Anne Blood

4 < www.mbausa.org < May 2009

A trend that is becoming increasingly popular with employers and human resources departments across the country is the concept of “e-benefits.” Using information technology to help connect employees to their benefits makes sense. After all, many people now are comfortable conducting “e-commerce” for any number of services. Why not their benefits elections, too?

It is easy to understand why employers would want to move their companies toward an online, automated system. Ideally, e-benefits should provide a more efficient way for employees to administer and choose the various options offered through their employer’s benefits plans. In addition, these platforms improve service to staff and free human resources professionals from having to perform transactional and administrative tasks. This will allow them to focus their attention on other value-added activities.

In order for e-benefits to work most effectively, the system should be both high-tech and high-touch. Employees need to be able to connect with the system, so that using it to administer their benefits feels comfortable to them.

With an e-benefits system, employees could enter their profiles and preferences for insurance, and the system could help them evaluate their options and make the best choice. With e-benefits, employees could easily perform enrollment tasks, locate doctors and hospitals, link to wellness programs, and find information to make healthy choices. The added benefit of 24-hour, 7-day-a-week access is also attractive.

Through an e-benefits system, an employer has a better chance of building a healthy workforce with more satisfied employees, while also saving money on administrative costs.

What are some things an employer should look for in an e-benefits system?• A system that empowers employees

to make decisions about their benefit

e-Benefits Grows in Popularity

options and choices.• A system that offers online Pay

Advices and online, real-time Total Compensation Statements to help communicate the value of the entire package of pay, benefits, and even nonmonetary rewards.

• A system that can handle a broad range of transactions, from open enrollment to new hires, to life events such as marriage, birth, adoption, to employment events such as changing status from part-time to full-time. The most sophisticated systems can handle all of these events very efficiently.

• A robust portal that effectively and efficiently communicates with employees, regardless of location, with online survey and management tools that help extend the human resources team’s abilities to communicate with management and employees.

• A highly configurable and customizable platform that enables the human resources team to make the portal look and feel like their other communications and sites.

• Full automation; that is, services that include electronic eligibility feeds to the carriers and third-party administrators (TPA) and also the employer’s payroll system.

• A customer service center that helps employees get their questions answered without having to call human resources.

• A hosted solution that allows access from anywhere – yet operating in a safe environment with appropriate firewall and other protections.

• No upgrade or maintenance fees.

What services should employees expect to receive from an e-benefits system? • Online employee self-service for annual

enrollment, new hire elections, and employment and family status changes.

• Online tools that help employees to make good decisions about the plans

and options available.• Employee benefit information and

documents available instantly.• Answers to frequently asked questions.• Real-time access that can keep

administrators and employees updated with current information.

• Benefit election confirmations.• Online pay advices and total

compensation statements.• Access from home or work.

Benefits to employers of an e-benefits system: • Eliminates waste, reduces paperwork

and cuts benefit administrative costs.• Tightly controls benefits eligibility and

the processes surrounding employee benefit administration.

• Empowers employees.• Satisfies increasing consumer demand

for choice by tailoring the package of compensation and benefits.

• Personalizes communication, which makes it more likely to be read and understood by employees.

• Helps to build a productive work force that is more satisfied and better matched with benefit choices.

For more information, visit www.upmchealthplan.com.

Health MattersEDITORIAL > by John Galley

John Galley is the CEO of E-Benefits, UPMC Insur-ance Services Division, which includes UPMC Health Plan, UPMC Work Partners, LifeSolutions (EAP), UPMC for You (Medical Assistance), and Community Care Behavioral Health, and which offer a full range of insur-ance programs and products.


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Green wasn’t her most flattering color.

Sue has a stoic disposition. A winning smile. And a penchant for allowing others to simply do

what they do best. When an employee raised a question regarding the company’s environmental

practices, she immediately sought guidance from our Environmental Law Group. After all,

such matters may escape Sue’s realm of managerial expertise. But for us, they’re

second nature.


Dramatization of services.

MacDonaldIllig A T T O R N E Y S


Green wasn’t her most flattering color.

Sue has a stoic disposition. A winning smile. And a penchant for allowing others to simply do

what they do best. When an employee raised a question regarding the company’s environmental

practices, she immediately sought guidance from our Environmental Law Group. After all,

such matters may escape Sue’s realm of managerial expertise. But for us, they’re

second nature.


Dramatization of services.

MacDonaldIllig A T T O R N E Y S

If you own a piece of property in Pennsylvania with current or historical environmental contamination, then you need to be aware of recent changes in state law regarding environmental covenants. Last year, Pennsylvania adopted a national uniform law to standardize the approach to creating and recording environmental deed notices and land use restrictions. After February 19, 2008, any environmental land use or activity restrictions (such as prohibition of residential use or groundwater use) must follow the form prescribed by the Uniform Environmental Covenants Act (UECA). The UECA requires each “Environmental Covenant” (EC) document to meet specific notice, content and filing requirements. The UECA requirements apply to all Pennsylvania Land Recycling Act (Act 2) and Storage Tank Act (UST) remediations, as well as all other state and federal environmental remediation programs.

The Pennsylvania Department of Environmental Protection’s (PADEP) approval and signature is now required on all EC documents. PADEP may provide conditions for its approval, such as requiring mortgage holders to subordinate their interests to the EC land use restrictions. Mortgage holders must receive written notice of any EC placed on the property, and a prior mortgage is not affected by an EC (unless subordinated). PADEP has issued a model “Environmental Covenant” form document, with both mandatory and optional EC provisions, that landowners can elect to follow. While adherence to the PADEP model likely will ensure approval, a number of the optional provisions contained in the model favor PADEP’s interests over those of the landowner. PADEP’s failure to approve or disapprove a proposed EC within 90 days will constitute a “deemed”

approval. PADEP actions under the UECA are appealable to the Pennsylvania Environmental Hearing Board.

It is important to recognize that PADEP and other signatories to the EC are “holders” of the rights under the EC, and may enforce its restrictions. Holders may include owners, tenants, mortgage holders, remediators, neighbors, agencies, et cetera. The landowner must provide a copy of the final signed EC to: all signatories of the EC, anyone with a “recorded interest” in the property, anyone in possession of the property (including tenants), the municipality and county where the land is located, and anyone else PADEP requires. The EC must include a legal description of the property, a brief description of the contamination and the remedy, the identity of all grantees (holders), a description of all use limitations, and the name and location of the administrative record for the cleanup. The final signed EC must be recorded at the local county courthouse and must be registered at a new PADEP statewide electronic database “registry.”

In general, ECs “run with the land” and the duration of an EC is perpetual, unless it terminates (by its own language) upon a specific duration or event. Because ECs benefit all holders, generally, the modification or termination of an EC requires the consent of all holders (including PADEP) and the current landowner. The land use restrictions under an EC may be enforced by: any party to the EC, PADEP and any other applicable agency, anyone whose “property rights,” “collateral” or “liability” may be affected by a violation of the EC, and the municipality or county where the property is located.

A key feature of the UECA is that it requires “conversion” of any environmental land use restriction

already in place, under Act 2 or the Storage Tank Act prior to February 19, 2008, to a new “Environmental Covenant” meeting all of the UECA requirements within five years (by February 19, 2013). Failure to “convert” such pre-existing ECs to the new UECA ECs does not invalidate such land use restrictions, but PADEP may take enforcement action to require such conversion. The UECA does not specify who is responsible for conversion of existing ECs (that is, the current landowner or the landowner who recorded the existing restriction). To date, PADEP has not made any effort to identify existing restrictions or notify landowners of the obligation to convert. Even so, parties with pre-2008 ECs should be aware of this obligation and should take action now to begin identifying and converting their older ECs to new ECs meeting all UECA requirements.

For more information, please contact Robert E. Gandley at MacDonald, Illig, Jones & Britton LLP, at [email protected] or 814/870-7661.

Legal BriefEDITORIAL > by Robert E. Gandley

Robert E. Gandley is a partner in the law firm of MacDonald, Illig, Jones & Britton LLP, where he practices in the firm’s Environmen-tal Group. He concentrates his practice in the areas of environ-mental litigation and reg- ulatory compliance in Pennsylvania and New York.

The ABCs of Pennsylvania’s Uniform Environmental Covenants Act


MBANow’s the time. Penn State’s the place.In this economy, getting your MBA from a university that’s respected worldwide can make all the difference in starting or advancing your career. Erie Insurance Group’s Ann Scott knows the value of a Penn State MBA. Find out how to get yours—right here at home.

MBA Information SessionThursday, May 14, at 6:00 p.m. at Penn State Behrend’s Logan House.Register at behrend.psu.edu/mymba or 866-374-3378

Ann Scott, Diversity and Community Outreach Director for Erie Insurance, is one of the many MBA graduates of the Sam and Irene Black School of Business enjoying professional success across our region and around the world.

MBA ad-M&BA 5-14.indd 1 4/9/09 11:32:56 AM


The American Recovery and Reinvestment Act (ARRA) has many provisions that effect the day-to-day operation of businesses. Some changes that were effective March 1, 2009 revise the way COBRA (Consolidated Omnibus Budget Reconciliation Act) must be administered.

Premium Subsidy The federal government will subsidize 65 percent of Assistance Eligible Individuals (AEIs) premiums from March 1 - December 31, 2009. Only COBRA premiums actually paid by participants are eligible. If employers subsidize COBRA, those portions are not included. All group health plans are eligible for this COBRA subsidy except a flexible spending account (FSA).

By mid-April, employers were required to send new COBRA notices (DOL.gov) to Assistance Eligible Individuals who were terminated since September 1, 2008. They may have a second chance to elect the coverage effective March 1, 2009. Those former employees have 60 days from notification to elect COBRA.

By mid-April, current COBRA participants who are Assistance Eligible Individuals also must have received information about the government’s subsidy of their premiums.

Who are Assistance Eligible Individuals (AEIs)? It’s not always clear which former employees are eligible for the subsidy. Former employees and their dependents may be entitled to COBRA coverage yet not be entitled to the 65-percent federal subsidy.

Some terminations are clearly eligible: • Reduction in force

• Layoffs/Temporary or permanent

• Lockout by employer

• Poor performance or misconduct firing

Some terminations are clearly not eligible: • Voluntary Quit or Retirement/ No extenuating circumstances

• Death of employee/Dependents not eligible

• Divorce/Dependents not eligible

• Strike

• Absence due to illness or disability

• Gross Misconduct firing — not eligible for COBRA

Facts and Circumstances for Determinations: • Severance Agreements/Why signed?

• Quits/if it’s the result of a “material negative change” in employment

• Retirements to avoid announced layoffs of others

What Should You Do if You Are Unsure Whether Someone is an Assistance Eligible Individual? Most experts advise sending them the COBRA notice so that the 60-day clock is running. If they do elect COBRA, you will need to decide if they are eligible for the subsidy. If you rule that they are not eligible for the subsidy, they may appeal to the Department of Labor. If participants receive the subsidy in error, they must repay it and a 10-percent penalty.

Reimbursement Employers may reduce their federal payroll tax deposits by the 65-percent government subsidy once Assistance Eligible Individuals have paid 35 percent of the premiums. The COBRA subsidies will be reported each quarter when the Form 941 Payroll Tax Return is submitted. The revised Form 941 is available at www.IRS.gov.

Documentation Requirements Employers must create a listing of all employees terminated between September 1, 2008 and December 31, 2009 that includes the reason for the termination, in addition to all of the COBRA notice dates. This documentation must be maintained to prove that all participants receiving the subsidy are Assistance Eligible Individuals. Written records will be vital in cases where

“facts and circumstances” determinations have been applied.

Duration of Subsidy The subsidy is available for a limited time. When the participant becomes eligible for another health plan or Medicare, the subsidy ends. The participant must notify your plan in writing if he or she becomes eligible for another group health plan or Medicare.

Overpayment by Assistance Eligible Individuals Because these new regulations took effect quickly on March 1, 2009, some COBRA participants may have paid full premiums even though they are eligible for the subsidy. The employer may reimburse the individual or apply the overpayment as a credit to future premium payments. Credits must be applied within 180 days.

These COBRA revisions are complicated and will take extra time by your staff to examine and execute. If you have any questions about the changes to COBRA or need help in applying these new rules, contact Ruth Shindledecker, MBA, SPHR, CEBS, at McGill, Power Bell & Associates at 814/724-5890 or [email protected]

Financial AdviserEDITORIAL > by Ruth Shindledecker, CEBS, SPHR, MBA

Ruth Shindledecker, CEBS, SPHR, MBA, is the director of Human Resources at McGill, Power, Bell & Associates, LLP. She has more than 25 years’ experience in human resources and employee benefit plans. Shindledecker consults in areas of human resources, selec-tion of health plans, retirement plans, employee communi-cations, plant closings and training grants. She is a member of the firm’s Employee Benefit Plan Services Group.

COBRA Subsidy for Involuntarily Terminated Employees


Big ideas and bold visions are realized when you have the right people in place.

At the Passport Group of companies, they believe this philosophy is just as crucial for a multimillion-dollar real estate deal, a property-development project that will support new industries and create hundreds of jobs, or a single commercial property purchase. It means having the right facility management team in place to save thousands of dollars on facility maintenance and operations costs, or critically examining a development proposal to determine whether it is viable or not.

Enter Passport Realty, LLC; Passport Development, LLC; and Passport Management, LLC. Three specialized companies, one name, and the knowledge and experience to see that your ultimate destination is reached.

“That’s why the name ‘Passport’ fits us really well,” says Group Manager Greg Rubino, from Passport’s headquarters and multi-office complex at 240 West 11th Street in downtown Erie, Pennsylvania. “In every business or real estate transaction, there’s a goal … a destination, and our job is to get the customer and client there.”

Founded in 2007 by Rubino and his wife, Lisa, the Passport Group grew out of Rubino’s experience at his prior company, Tecnica Development Corp. It was their vision to create an integrated approach to real estate acquisition, development and management. Under the Passport umbrella, these services would be interrelated, but better delivered through a coordinated approach by three specialized companies.

“The problem was that not all of our clients and customers needed all of the services our prior company offered,” notes Rubino, a 25-year veteran of the real estate and development business. “Quite frequently, we found that a client needed development services but not acquisition or management services. That’s why we went on to form the three companies that offer an a la carte menu of services. We found it necessary to literally invent a new kind of service organization where real estate was the broad service sector, but the focus was a delivery system for specific services to clients such as financial institutions.”

Most financial, industrial and service companies today do not retain full-service real estate departments because of the cost, but those departments are needed … more today than ever before. The Passport Group provides a solution to this economic-based dilemma.

Passport’s model is unlike any other regional commercial real estate and development company in business today. “By retaining our services, a company converts the problem of variable, high-cost, hit-or-miss real estate services maintained in-house to an outsourced, controlled, fixed-cost structure, which is more attractive to businesses and creates an environment where budgets can be managed,” Rubino explains.

A Specialized Approach to Reaching Your Realty, Development and Property Management Destinations

The Passport Group of companies – Passport Management, LLC; Passport Development, LLC; and Passport Realty, LLC — is led by a talented group of real estate development, management and realty professionals, including owners Lisa and Greg Rubino, Manager David Sadaly, REALTOR® Daryl Terella and Attorney Joseph J. May.

Lisa and Greg Rubino

The Passport Group is headquartered in a sprawling office complex known as the Metro Center at 240 West 11th Street in Erie, Pennsylvania. The building is a shining example of “Adaptive Reuse” in which older buildings are adapted for new uses. 14 < www.mbausa.org < May 2009

Passport Management … Facilities Management and MoreThe facility management and operation of a commercial or investment property can be rather complex, and it is why the Passport Group turns to Passport Management, LLC, owned and operated by Lisa Rubino.

Working at Sue Sutto REALTORS®, Lisa continues to be one of the top producing real estate sales agents in the region, but she also has experience in the real estate management field.

Today, her company, Pass-port Management, LLC, manages a variety of properties within the Erie region including 100 State Street, a stunning, glass-paneled office building that overlooks Presque Isle Bay. Leasing responsibilities for the investor-owned condominium office space in the building are handled by Passport Realty. Lisa states: “100 State Street is considered, by industry definition, to be the premier ‘Class A’ office building in

Erie’s Central Business District — of the highest quality office space locally available.”

“Property management today is very detailed,” explains Lisa. “It involves managing the major building systems such as environmental, mechanical, roofing and all of the other components of a commercial property. All of these systems and components must operate efficiently and seamlessly within a framework of people-driven and people-delivered services. I work closely with our personnel to make sure that they communicate with our clients and deliver services in a timely and cost-effective manner.”

At Passport Management, LLC, maintenance programs are just one part of the equation. Facility management means developing a strategic vision for a building’s ongoing operation by recommending business and process improvements, conducting employee training and workshops, developing contract specifications, and many other services.

At all three Passport companies, notes Greg Rubino, the focus is always on what’s in the best interest of the client or customer.

“Say a company wants to go ‘green’,” he says, “we’ll assemble a team of professionals internal and external, analyze current operating factors for the property, then figure out where they’re trying to go and how to get them there.”

There are many ways that the Passport Group is completely different from the traditional “real estate broker” business model. For instance, Attorney Joseph J. May, who serves as in-house General Counsel, brings more than 30 years of legal experience to the companies. Attorney May does not

replace the legal services provided by the lawyers who traditionally work for Passport’s customers and clients; instead, he works with Passport’s staff to help them manage those relationships. His primary function is to ensure that the Passport companies operate in compliance with all applicable laws and regulations.

“The Passport Group delivers a wide array of services to customers and clients,” notes Attorney May. “In keeping with the philosophy of our Group Manager, my job is to make sure our staff works with our customers and clients in a compliant atmosphere.”

Passport Development … An Investment in the FutureThe staff of Passport Development, LLC is known for their prior experience in handling very large projects, such as the $330 million Presque Isle Downs & Casino off Interstate 90 in Summit Township completed in 2007 and the proposed $370 million Erie Renewable Energy tires-to-energy project on Erie’s East side in the pre-construction phase, but it also handles small and mid-size projects or individual project tasks such as permitting and other development services.

The primary manager of Passport Development is David Sadaly, who combines his civil engineering degree knowledge with more than 30 years of construction and facility management experience on various commercial, institutional and industrial projects. Sadaly has worked on office buildings, apartment buildings, shopping centers, medical centers, manufacturing facilities, and everything in between.

“The development process today is one big minefield,” says Sadaly. “Our primary function here at Passport Development is to coordinate the professionals such as engineers, architects, contractors and other consultants who are involved in the development process for a customer or a client.” That development process, Sadaly explains, starts well before the acquisition of a building or parcel of ground and continues right through the commencement of construction until completion of project commissioning and turnover to the owner.

“Part of our job is to make sure that clients and customers don’t buy the wrong piece of ground or the wrong building for their use,” he says. “Hundreds of thousands of dollars can be saved through our integrated approach to advising customers on how to get to their final destination, which is the completed real estate project.

This is the essence of the Passport Group … helping our customers and clients get to that final destination.”

The Passport GroupThree companies, one name: Passport Realty, LLC; Passport Development, LLC; and Passport Management, LLC. These specialized companies provide clients with a coordinated approach to real estate, property development and property management.

Founded: 2007

Headquarters: 240 West 11th Street, Erie, PA 16501 Phone: 814/454-1800 Fax: 814/464-8930

Primary market: Western Pennsylvania, but provides certain services in Ohio and New York. Advisory services available in all 50 states.

Marquee properties and development projects: 100 State Street; Metro Center; West Erie Plaza; Erie Renewable Energy tires-to-energy plant; and Port Erie Energy Research, LLC.

Experience: Passport professionals have more than 100 years’ collective experience in real estate sales and leasing, real estate law, engineering/construction services.

Community support: Passport professionals are dedicated to public service and are active supporters of various local charities, as well as civic organizations, including the annual Heart Ball to support the American Heart Association.

Web site: www.passport-companies.com

Passport Management is responsible for more than just the maintenance of buildings, but also developing a strategic vision for their ongoing operation and improvements, employee training and contract specifications.

Photo courtesy of Tecnica Development Corp.

The staff at Passport Development has handled some of the region’s largest site development projects, such as Port Erie Power and Presque Isle Downs & Casino, shown here.


Passport Realty… The Expertise to Handle Every DetailThe most prominent and central piece of the Passport Group is Passport Realty, LLC. The company handles commercial and investment real estate and proudly touts its real estate brokerage expertise with clients that range from small “mom and pop” retail stores to tenants with 100,000-square-feet of space or more.

Passport Realty, LLC is most notably known as the exclusive leasing agent for some of the Erie area’s most prestigious properties, including 100 State Street; the West Erie Plaza shopping center; and, Metro Center, which is a former hospital building. Metro Center is now a sprawling office complex and medical facility in the heart of downtown Erie.

“In this country, we are finally starting to understand that older buildings may still have a lot of life left in them. We call this concept ‘Adaptive Reuse’,” says Rubino. “With my partner Gary Miller, we made a decision that a 150,000 square foot building with great structural characteristics and outstanding mechanical systems could not fall victim to vacancy or the wrecking ball.”

Passport’s professionals conducted the ordered process of examining each and every physical characteristic of the Metro building. The process involved an architectural firm, mechanical and electrical engineers, an elevator service company, a restoration contractor, a paving contractor, a roofing contractor and several other construction experts. Working together, the building was examined from stem to stern, and a detailed report was prepared.

That report was examined by Rubino and his associates, and they came up with several potential users for parts of the building, along with projected income and expense reports. All of this information was then submitted

to the owners so that an informed decision could be made. The success of this approach is obvious.

“We often invite a potential client or customer to visit our offices in Metro Center,” says veteran REALTOR® Daryl Terella, who heads up the Realty company. “A typical reaction is, ‘wow, this is really impressive!’ ”

Adds Passport’s Sadaly, “The structure of this building, having been a hospital, lent itself wonderfully to its adaptation as a multi-tenant, multi-use building. Today, we have a long-term acute care hospital, several medical offices, an environmental firm, a national restaurant corporate headquarters, a sleep and wellness center, a therapy group and our real estate offices … all operating in harmony in a professional atmosphere.”

Since Passport Realty is able to tap into the Management and Development companies for expertise, they can always help a customer or client make a more informed decision on a real estate purchase or disposition.

“Our function,” adds Sadaly, “is to help clients and customers navigate the sometimes bumpy road between identifying a property, closing on it, and possibly developing it in a timely and efficient manner. We really are their ‘Passport’ to success.”

The Passport Group … An Experienced Team of ProfessionalsThe Passport Group is more than a trio of companies. It’s the combined expertise of many people, including the Rubinos; Attorney May; Daryl Terella; David Sadaly, as well CFO Sarah Ruf, Office Administrator Elizabeth Franz, Chief Stationary Engineer Joe Michalski, Mechanical Engineer Fred Derks, Facility Manager Gary Hess, Administrative Assistants Lisa McLaughlin and Shoechelle Zelaya, and a whole host of professionals from other fields who help fill out the Passport team.

Rubino, Terella and Franz worked on some of the region’s larger development projects in the Erie County region, including the Peach Street developments south of Interchange Road near Interstate 90 when they were with Baldwin Brothers, Inc.

“Without the Baldwin Brothers foundation, there would be no Passport Group of companies,” notes Rubino, “because it’s what we learned while there that allows us to understand the right path of real estate brokerage and real estate development.”

Today, that path is leading Passport to an exciting future. Terella said: “Our future definitely includes increasing delivery of services to financial institutions which find themselves, in this challenging economy, now holding properties which may have marketable operating characteristics desired by others, such as an existing business or a group of tenants. Passport can help a bank preserve and enhance the value of such properties during foreclosure and disposition.”

“We are very, very busy,” says Rubino. “It’s not uncommon for us to be here late at night and on weekends. But that’s part of our commitment to our clients. The client has a destination, they’re pressing to get somewhere, and we are the ‘Passport’ to their final destination.”

For more information about the Passport Group of companies, visit www.passport-companies.com.

The Passport Group provides responsive and dependable service to customers by always making sure they are greeted by a friendly associate each time they call.

Veteran REALTOR® Daryl Terella, Greg Rubino and Office Administrator Elizabeth Franz examine blueprints for one of Passport Realty’s future investment projects.

A New ‘Energy’ in Property Development One of the current development projects that the staff of Passport Development, LLC is involved with is the tires-to-energy plant on Erie’s East side, named Port Erie Power, which is expected to turn 900 tons of scrap tires a day into electricity. The project, formed in 2006, is a joint venture of Conservation Development Associates, LLC from Erie, Pennsylvania, and Caletta Renewable Energy, LLC of Boston.Developers say they are committed to maintaining a degree of local ownership and participation in the power plant with a real focus on local labor, manufacturing, suppliers and vendors. The project is estimated to carry a price tag of upwards of $370 million and economic impact that could be close to $1 billion.Currently, developers are waiting on PADEP approval of an air quality plan, and expect the project to progress quickly over the next few months. “We live here, our families live here, most of my investments are here,” says Rubino. “A large and environmentally-sensitive project such as this stirs local debate, and that’s ultimately a good thing … our goal is to show that this is an environmentally advantageous plant that will pass all governmental permitting requirements; otherwise, it doesn’t get built.”As the tires-to-energy plant is being constructed, developers plan to lay the foundation for Erie to become a leader in the alternative energy field. A new company, Port Erie Energy Research, LLC, will investigate all kinds of energy – wind, solar, etc. – to explore auxiliary power sources.“This project is a springboard,” says Rubino. “It’s the basis for us to do a lot of other things in the community, and there’s no way to tell how big it could get.”


Training That Develops

Effective Leaders

A S S O C I A T I O N T R A I N I N G S C H E D U L E

As a leader in professional development

and computer training programs for more

than 20 years — the Manufacturer &

Business Association’s expert trainers

deliver the knowledge and skills you need

to compete in today’s business world.

Supervisory Skills graduates from left: Todd L. Spinelli, Todd C. Williamson

and Joseph Ramsey. Below is a recent photo of the graduating class,

including Todd Williamson.

“EmergyCare has been sending our frontline supervisors to the MBA for almost 20 years. The reason we continue this effort is because the MBA training helps new supervisors understand management’s decisionmaking processes, basically answering the question: why we do the things we do. The MBA classes enhance the supervisor knowledge, giving them the skills required to be effective leaders. Communications is the key to any successful relationship and our leadership team is taught these skills as well as problem solving, employee motivation, and time management in the Supervisory Skills classes.

EmergyCare has and will continue to support the MBA due to their outstanding classes and services that they provide to us as well as the communities they serve.”

— Bill Hagerty Interim CEO/

Director of Operations EmergyCare,Inc.

M A N U F A C T U R E R & B U S I N E S S A S S O C I A T I O N T R A I N I N G S C H E D U L E

June JulyProfessional Development

Leadership Course IV (Warren) 7/16 Leadership Course IV 7/16 Price: Member $155, Nonmember $275

Supervisory Skills Course III 7/23 and 7/30 Course IV 7/15 and 7/22 Price: Member $230, Nonmember $325

Quantitative Sales Strategy 7/14 Price: Member $250, Nonmember $500

Writing to WOW 7/9 Price: Member $95, Nonmember $145

Food Safety Certification 7/20 Price: Member $125, Nonmember $225

Women In Leadership: Differences in Women’s 7/21 and Men’s Leadership Price: Member $125, Nonmember $225

ComputerAccess Advanced 7/23 Excel Level I 7/22 Excel Level II 7/8 Excel Level III 7/30 Introduction to Windows 7/28 Word Level II 7/7 Price: Member $155, Nonmember $275

Professional DevelopmentLeadership Course III 6/4 Leadership Course III (Warren) 6/4 Price: Member $155, Nonmember $275

Supervisory Skills Course II 6/18 and 6/25 Course III 6/17 and 6/24 Course III (Sharon) 6/30 and 7/1 Course IV 6/9 and 6/16 Course V 6/16 and 6/23 Price: Member $230, Nonmember $325

Strategy Development Through 6/9 Performance and Measurement Price: Member $350, Nonmember $750

Six Sigma Green Belt (Three Days) 6/10, 7/15 and 8/12Price: Member $950, Nonmember $1,350

Lean Operations 6/11, 7/16 and 8/13 Champion (Three Days) Price: Member $950, Nonmember $1,350

Customer Service 6/25 Price: Member $95, Nonmember $145

Food Safety Certification 6/15 Price, Member $125, Nonmember $225

ComputerNEW! Office 2007 New Features (Half Day) 6/25Price: Member $95, Nonmember $145

Access Basics (Two Days) 6/2 and 6/9Price: Member $310, Nonmember $425Discovering PowerPoint 6/11 Excel Level I 6/23 Word Level I 6/10 Price: Member $155, Nonmember $275

WORD LEVEL I: “Very thorough, the instructor is very easy to learn from. I always leave feeling I’ve learned a lot.”

— Jessica Brennan,Erie Insurance Group

SUPERVISORY SKILLS SERIES: “The (training special-ist) is a great facilitator/instructor for the superviso-ry class. His examples are practical. His lifetime ex-periences add validity and his delivery is engaging. He’s quite an asset to your organization. Thanks for a well-designed and presented course.”

— Melodee Kushner,Meadville Medical Center

EXCEL LEVEL I: “I like the hands-on approach, rather than just watching an instructor do it; it’s much more retainable actually going through the steps on your own computer.”

— John Wojsiat, Port Erie Plastics Inc.

M A N U F A C T U R E R & B U S I N E S S A S S O C I A T I O N T R A I N I N G S C H E D U L E

August TrainingRegional Locations

All courses are held at the Manufacturer & Business Association Conference Center in Erie, unless otherwise noted.

Erie: MBA Conference Center 2171 West 38th Street

Corry: Corry Higher Ed Council 221 North Center Street

Dubois: Dubois Diner 150 W. DuBois Avenue

Franklin: Sperian Fall Protection 1345 15th Street

Meadville: Edinboro University of Meadville 789 Bessemer Street

Sharon: Mercer County Community Education Council 1333 E. State Street

St. Marys: Community Education Council 4 Erie Avenue, Suite 200

Warren: Warren/Forest Higher Education Council Curwen Building, 2nd Floor 185 Hospital Drive

Professional DevelopmentLeadership Course V 8/27 Leadership Course V (Warren) 8/27 Price: Member $155, Nonmember $275

Supervisory Skills Course IV (Sharon) 8/11 and 8/12 Course IV 8/13 and 8/20 Course V 8/4 and 8/11 Course IV (Meadville) 8/5 and 8/6 Course V (Meadville) 8/12 and 8/13 Course V 8/19 and 8/26 Price: Member $230, Nonmember $325

Food Safety Certification 8/17 Price: Member $125, Nonmember $225

Women In Leadership: Women and Communication 8/4 Price: Member $125, Nonmember $225

ComputerNEW! Intoducing Microsoft Vista (Half Day) 8/5Price: Member $95, Nonmember $145

Access Basics (Two Days) 8/27 and 9/3Price: Member $310, Nonmember $425

Excel Level I 8/25 Mastering PowerPoint 8/13 Outlook 8/4 Word Level I 8/19 Price: Member $155, Nonmember $275

QuickBooks 8/21 Price: Member $175, Nonmember $295

Onsite TrainingGet more flexibility and convenience with our onsite training options.

Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction.

Whether you need a half-day or full-day of professional -

ers come to you!

Course RegistrationContact Tracy Shepard at 814/833-3200, 800/815-2660 or [email protected] to register or for more information on upcoming courses. Online registration is also available at www.mbausa.org.

QuickBooks: “Very organized and the instructor was able to answer all of our specific questions that applied to our line of business.”

— Natalie KreidingerAdvanced Cleaning Systems, LLC

LEARN IT TODAY, USE IT TOMORROW.That’s our instructors’ focus in every class they teach. You’ll learn the mustknow, must

use computer skills and techniques to increase your productivity and improve your work

!"#$%!&$'(%&()*+,(-&!($./++0((

INTRO TO PHOTOSHOP Add punch to

professional documents by learning quick

and easy skills that allow you to edit and

manipulate images and photographs like

a pro.

PUBLISHER Create easytoread news

letters, highquality brochures and atten

tiongetting advertisements right on your

own computer.

POWERPOINT Generate presentations

that are visually engaging, graphically

pleasing and keep your audience

focused on your message from beginning

to end.

QUICKBOOKS Develop, use and main

tain your small business’ books with ease.

Keep track of payables/receivables, plan

budgets, perform endofmonth tasks and

much more.

Enroll today! Visit www.mbausa.org for the latest computer course schedules or to

register online today.

COMPUTER

TRAINING

FOR YOUR

WORK WORLD!

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INTRO TO WINDOWS Find out about the

basic concepts of the Windows XP operating

system and learn the simple tools you can use

in many other computer programs.

EXCEL (LEVEL I, II, III) Discover the funda

mentals of spreadsheets and advanced for

matting features such as formulas, functions,

charting and PivotTables.

WORD (LEVEL I, II, III) Create professional

looking documents and increase your pro

K*$,%L%,'(/&K(!"#$%!&$'(%&(M!L!.(N(-9(,/O!(%,(,-(the next level with merges and forms in the

advanced classes.

ACCESS (BASIC, ADVANCED) Whether

'-*(&!!K(,-(.!/9&()*+,(,7!(I/+%$+(-9(+7/9P!&(your SQL and hyperlink skills, we’ll teach you

how to use this “mustknow” database pro

gram.

OUTLOOK Get organized! Learn how to

send/receive email, use folders, set up con

tacts, utilize the calendar, manage and store

information and more.

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HR ConnectionHIRING SLOWDOWN EXPECTED TO CONTINUEU.S. employers are projecting an even slower hiring pace for the second quarter of 2009, according to a quarterly survey of 31,000 employers by Manpower, Inc.The survey reports that 15 percent of employers anticipate an increase in their staff levels during the second quarter, compared with 14 percent that expect a decrease in their payrolls. Sixty-seven percent of employers surveyed expect no change in their hiring plans.Employers in a majority of the industry sectors surveyed anticipate decreasing their payrolls compared to three months ago. Employers in mining, durable and nondurable goods manufacturing; wholesale and retail trade; information; financial activities; professional and business services; education and health services; and government anticipate a decline in hiring, while transportation and utilities employers plan to keep

hiring levels relatively stable for the second quarter.

20 PERCENT OF WORKERS LATE TO WORK ONCE A WEEKTwenty percent of workers say they arrive late to work at least once a week, up from 15 percent last year,according to a CareerBuilder.com survey. Twelve

percent of workers admitted that they are late at least twice a week.According to the survey, traffic was the most frequently cited reason for being late to work (33 percent), followed by lack of sleep (24 percent), getting kids ready for school or day care (10 percent).

Many qualifying events trigger a COBRA event, loss of a job, reduced hours, death/divorce, or change of dependent status, to name a few. The only event, however, that makes one eligible for the subsidy created by the American Recovery and Reinvestment Act (ARRA) is the loss of group health coverage due to an involuntary termination on or after September 1, 2008 and until December 31, 2009. Employees who may have fallen into this category before ARRA and did not choose COBRA must be given a second chance to do so. For more information, contact me at 800/815-2660, 814/833-3200 or [email protected].

Contractors & Construction Managers ~ Since 1906

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.


20 Erie County locationsto serve you in Erie,

Corry, Edinboro, Fairview, Lake City, North East,

Union City, and Wattsburg.

Northwest Savings Bank’s Business Banking experts in Erie

Chris WilleyManager, K-Mart South

(814) [email protected]

Jennifer MarzBusiness Services Advisor

(814) [email protected]

Donna CarlinoSenior Vice President

(814) 461-6994 [email protected]

Northwest Direct 1-877-672-5678 www.northwestsavingsbank.com Member FDIC

12_BBGNL_ERIE-EBM.indd 2 4/14/09 4:05:53 PM

DEPARTMENTS > Contact: John Onorato

The cost of workers’ compensation is a huge concern for most employers. But there are several steps businesses can take to lower their workers’ compensation premium. They are:

• Develop a certified workplace safety program. Employers with a functioning workplace safety committee, certified by the bureau, are eligible to receive a 5-percent annual workers’ compensation policy premium discount.

• Offer job openings to injured workers. An employer is obligated by law to offer available jobs to its injured workers if the worker is capable of performing the job.

• Have a list of designated medical providers. The employer may be relieved of its liability to pay for medical services rendered during the first 90 days of treatment if it posts a list of six or more health-care providers (at least

Lower Your Workers’ Comp Premium in Six Stepsthree of which must be physicians and no more than four of which may be coordinated care organizations), the list meets certain other legal requirements and the employee fails to treat with a medical provider on the list.

• Strive for an injury-free workplace. The Workers’ Compensation Act encourages employers to provide safe working environments by providing premium discounts to employers who have not experienced a compensable lost-time injury in the preceding two years.

• Seek exception from the requirements for certain executive officers. Executive officers who have an ownership interest in a Subchapter S corporation, or at least a 5-percent ownership interest in a Subchapter C corporation, or who serve voluntarily, without pay, in a nonprofit corporation, may apply for exclusion with their

workers’ compensation carrier or, if no insurance, to the Bureau of Workers’ Compensation.

• Report suspected workers’ compensation fraud. Fraud contributes to the cost of doing business. Anyone who commits fraud may be subject to civil or criminal penalties and should be reported.

For assistance, contact the Association at 814/833-3200 or 800/815-2660.

Stacey Bruce is a PHR-certified HR generalist at the Manufacturer & Business Association.


You deal in real estate.

2222 W. Grandview Blvd. Erie, PA 16506 | 814/833-2222 Phone | 814/833-6753 Fax | www.quinnfirm.com

We help you stay on solid ground.At the Quinn Law Firm, we offer substantial real estate and finance services with your

individual needs in mind. Our knowledgeable attorneys serve a broad spectrum of clients—

from the nervous first-time homebuyer to the sophisticated lender or developer. We pride

ourselves on offering a full-range of high-quality, timely and fairly priced services including:

• Purchase, sale, leasing and financing of residential and commercial real estate

• Residential, commercial and condominium development

• Corporate and commercial borrowing and lending

• Zoning and land development

• Title insurance and abstract services

To learn more about our comprehensive Real Estate & Finance services, contact us today.

James F. Toohey John J. Shimek, IIII. John Dunn J. W. Alberstadt, Jr. John P. Leemhuis, Jr. Richard A. Blakely Eric J. Mikovch

OntheHill DEPARTMENTS > Contact: Sheila Sterrett

Issues 2009 - MBA Legislative Priorities Briefing BookWith the 111th Congress and the 2009 session of the Pennsylvania General Assembly well under way, it is essential that our elected officials have an understanding of the economic implications of their decisions on the issues most critical to creating a pro-growth, pro-job economic environnment. The Issues 2009 MBA Legislative Priorities Briefing Book focuses on both state and federal issues of interest to the MBA membership and outlines our pro-growth, pro-jobs agenda. From taxes and health care, to energy and trade, the Briefing Book gives to-the-point information for not only your own reference, but also for utilization when talking with legislators and other business community members. For your FREE copy, please visit the Government Affairs Department Web page on www.mbausa.org.

Legislative Directories AvailableDo you want to have the most up-to-date state and federal legislator contact information at your fingertips? Then contact Sheila Sterrett, Association director of Government Affairs, to obtain your FREE copy of the MBA Legislative Directory. Quantities are limited.

FEDERALDeath Tax Repeal Legislation Crucial to Business

Curbing productivity and growth, the estate or death tax ultimately hurts small- and medium-sized manufacturers by discouraging savings and investments while reducing wages and job creation. Current law gradually phases out the death tax by 2010; however, the repeal is only temporary. If not permanently overturned, the tax will return in 2011 with rates as high as 55 percent, forcing some families to sell a business when the owner dies. The MBA-supported HR 205, Death Tax Repeal Act, would eliminate the death tax. Estimated to cost the economy more than it actually adds to revenues, the death tax has generated only $761 billion since 1942, while it reduced the stock of capital in the economy by $847 billion. The support of the repeal of the death tax is critically important for the future of American businesses and those they employ. By allowing business owners to function without concern of this burden, resources expended on dealing with the tax can be put toward job creation and stimulus to local economies.

Secret-Ballot Protection Bill Garners Local Support

The MBA-supported HR 1176/ S 478, Secret Ballot Protection Act, would seek to amend the National Labor Relations Act, ensuring the right of employees to a secret-ballot elction conducted by the National Labor Relations Board. Co-sponsored by 109 Representatives in the House, including Representative Glenn Thompson (R-5), this bill is an effort to oppose the Democratic leadership’s Employee Free Choice Act, or “card check” legislation, which would strip workers of their right to private ballot elections when voting for or against unionization. The Secret Ballot Protection Act would

instead work to protect workers’ rights while preserving the democratic process during unionization elections – free of intimidation or coercion from organizers, co-workers or management.

STATEMBA Secret Ballot Proposal Introduced in The General Assembly

Senator John Eichelberger (R-Blair) and Representatives Curt Schroder (R-Chester) and Daryl Metcalfe (R-Butler) recently introduced an MBA-supported measure aimed at protecting Pennsylvania’s workers and employers from the unfair and rights- infringing regulations contained in the Employee Free Choice Act (EFCA) currently being proposed in Congress. Commonly referred to as “card check,” the EFCA seeks to undermine worker privacy and an individual’s right to a secret ballot by replacing the current process for electing union representation with a system that exposes employees to coercion by union organizers and their peers. The lawmaners felt that such a process was unfair to Pennsylvania’s hard-working families and infringed upon the basic democratic principle of a secret ballot. If enacted, this measure would guarantee an individual’s right to vote by secret ballot in all elections, including those concerning union representation, under the Pennsylvania State Constitution.

PHC4 Legislation Moving Forward

The Pennsylvania House and Senate are currently considering two identical MBA-supported proposals, HB 173 and SB 89, which would reauthorize the Pennsylvania Health Care Cost Containment Council (PHC4). The PHC4 is an independent state agency charged with addressing the rapidly growing cost of health care, and has been credited with saving Pennsylvania

businesses and families millions of dollars over the past 22 years. In addition, the proposals would establish the Health Care Cost Containment Council Act Review Committee, which would be charged with studying, reviewing and recommending changes to the act and reporting their findings. HB 173 and SB 89 are designated as a potential MBA Key Vote with the General Assembly.


09-02522_HMK1_LR_Biker_D.indd 1 4/2/09 12:05:38 PM

The Great Lakes Industrial Technology Summit (GLITS) is an evolving event for our diversified manufacturing regional community. Over twenty years ago it started as EXPO Erie, an event to showcase regional products to the community. Since then it progressed into a premier trade show for companies and now it’s evolved again, providing opportunities for workforce development between our regions workforce and the industry seeking skilled workers.

At the Great Lakes Summit you’ll find: • Business development opportunities • Product showcase to industry partners and community participants • Industry / Student connections for workforce development • Regional job fair

Interested in participating, visit www.greatlakessummit.com for an exhibitor reservation form and more information.

Sponsorship opportunities also available.

Questions? Contact Melisa Zimmerman, GLITS Director at 814-450-8454 or at [email protected].

Hosted by the Technology Council of Northwest Pennsylvania

The proceeds of GLITS will go to funding experiential robotic programs for a variety of student levels in the 10 counties of Northwest PA served by the Technology Council.

I THINK I HAVE AN EMPLOYEE WHO IS COMMITTING WORKERS’ COMPENSA-TION FRAUD. WHAT SHOULD I DO?Under Pennsylvania law, it is an act of fraud for an individual receiving workers’ compensation to:• fake an injury in order to get paid

time off;• exaggerate the severity of a legitimate

injury to extend time away from work;

• claim an injury occurred on the job when it actually occurred elsewhere; or

• obtain another job while lying to the insurance company about being unable to return to work (collect two paychecks).

If you believe that your employee is committing one of these acts, I recommend that you speak to your claims adjuster, and that you report the matter to the Attorney General’s office. Reports of these types of fraud should be directed to the Pennsylvania

Insurance Fraud Prevention Authority at 1-888-565-IFPA.

AN INJURED EMPLOYEE HAS TOLD ME HE WILL GET MONEY FOR HIS “PAIN AND SUFFERING” FROM HIS WORKERS’ COMPENSATION CASE. IS THIS TRUE? No. In Pennsylvania, a claimant is not entitled to an award based upon “pain and suffering.” In fact, Pennsylvania’s Workers’ Compensation system allows for only the following types of benefits:• Replacement of lost wages. A

portion of the worker’s salary — up to a maximum amount provided by law — is paid for the time lost from work as a result of a work-related disability, if the disability lasts longer than seven calendar days. These payments are tax free.

• Payment of medical expenses. Reasonable and necessary work-related medical expenses are paid regardless of the duration of required treatment and apply even though the employee may not have lost time

from work. • Specific loss benefits. Benefits are

payable if a work-related injury results in loss of vision, hearing and/or the use of limbs (including fingers and toes). Specific loss benefits are paid without regard to the amount of time lost from work. A separate healing period also is defined for each loss.

• Disfigurement benefits. Benefits are payable if there is a serious, permanent disfigurement of the head, face or neck.

• Death benefits. The employee’s dependents may claim benefits if a work-related injury or disease results in the employee’s death. Also, reasonable burial expenses are payable to a maximum amount set by law.

• Subsequent injuries. Additional compensation may be available through the Subsequent Injury Fund, administered by the Commonwealth.

Legal Q&A

©2009 The PNC Financial Services Group, Inc. CS-33487

What good is wealth if you don’t have time to enjoy it?It’s ironic. While money is often associated with freedom, the more wealth you have, the more time you need to manage

it. At the Private Client Group, we help you optimize and preserve wealth so you can fully experience its advantages. With exceptional proprietary research, local portfolio managers and external money managers, we can identify customized long-term opportunities for you. The result: you have more of two important assets – time and wealth.

Now that we’re part of PNC, you can rely on our reputation as one of America’s best performing large banks. With an A rating from Standard and Poor’s* and over $110 billion in assets under management**, let our strength and stability be the basis for yours.

Trust is something we earn. To experience the Private Client Group in Erie, call Steve Shilling at 814.871.1276.

WEALTH PLANNING | Investments | Private Banking | Trust & Estate Services

NationalCity.com/PrivateClientGroup

The PNC Financial Services Group, Inc. (“PNC”) provides investment and wealth management, fiduciary services, FDIC-insured banking products and services, and lending and borrowing of funds through its subsidiaries, PNC Bank, National Association, PNC Bank, Delaware and National City Bank, which are Members FDIC. PNC does not provide legal, tax or accounting advice.

*As of January 19, 2009. **As of December 31, 2008.

Investment products are:


DEPARTMENTS > Contact: John Onorato

President Obama signed the Lilly Ledbetter Fair Pay Act on January 29, 2009. The Act significantly changes the time limits on pay discrimination claims against employers.Prior to the Act’s passage, the law (per a 2007 U.S. Supreme Court decision) was that the time for suing an employer over discriminatory pay practices began at the time of a discriminatory pay decision. This was the holding of the Supreme Court in Ledbetter v. Goodyear Tire & Rubber Co., even though the alleged discriminatory effects of the pay decision continued for 19 years.Under the Act, an employee’s limitations period for filing suit begins anew every time an employee receives discriminatory pay; for example, as was alleged in Ledbetter, every time a

female employee is paid less than her male counterparts.In light of the act, employers should evaluate their compensation policies to make sure that they are not discriminatory, and that pay decisions are well documented. If the review discloses pay differences that might appear to a judge and jury to be discriminatory, appropriate remedial steps should be taken.Importantly, the documentation should be retained indefinitely, or else employers risk being unable to defend claims years down the road (19 years) without any documentation.On the bright side for employers, the Act limits back pay for discrimination victims to two years prior to the time a claim is filed.

The Act is retroactive, and applies to all pay discrimination claims pending on or filed after May 28, 2007.For more information on these issues, contact me at 814/833-3200, 800/815-2660, or [email protected].

Stop Your Shredders: Payroll Records Retention After the Ledbetter Fair Pay Act

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division. She assists member companies with their legal needs, including hotline calls, contract drafting and negotiation, employee handbook review and drafting, and selective litigation.


John Kanzius wasn’t a doctor.

Or a Nobel Prize winner.

But he will long be remembered as the inventor whose genius gave hope to thousands of cancer patients, young and old.

During what would be his last years battling cancer, Kanzius, formerly of Millcreek Township, Pennsylvania, de-veloped what, as many people trust, will be his greatest invention – a device to destroy cancer.

Though he would not live long enough to carry out his work, dying in a hospital at his winter home in Sanibel Island, Florida, on February 18, 2009, Kanzius’ colleagues and supporters are dedicated to seeing that his dream is realized. At Erie-based Industrial Sales & Mfg. Inc. (ISM), which houses the lab where Kanzius tirelessly tooled and retooled his cancer-fighting machine, the Rutkowski family, who own ISM, is helping to design and build the External Radio Frequency (RF) Systems that, if approved, could be used for human trials as early as 2010.

“John always said to all of us that he wanted this dream to keep going, and his wife Marianne has said that too,” says Plant Manager Charlie Rutkowski, a friend and colleague of Kanzius

at ISM. “She knows there are a lot of people who think this project will stop because John’s not here, but for everybody on the project, between M.D. Anderson, us, Marianne, everybody, it’s more of a driving passion to see it happen.”

Today, ISM provides the manufacturing expertise and support for the smaller RF system being used by a team of researchers at the M.D. Anderson Research Facility in Houston and UPMC Health Center in Pittsburgh. Right now, they are working on building a larger RF device that can be used in human trials, if the federal government approves.

According to ISM, the concept is to create a device similar in size to what is used for CAT scans or MRIs. A patient would pass underneath an RF field to treat and destroy the cancer, be it a localized area or a whole body scan.

“We’re in the design phase now,” says Charlie. “We already have a mockup, a prototype. But there’s still a lot of research to be done and designs to be completed, so we’re looking at a year, year and a half, before we have something out.”

The last few years indeed have been a whirlwind for ISM and Kanzius, who made his living for many years as a radio operator and, eventually, owner of Jet Broadcasting Co. It was after Kanzius retired to Sanibel Island that he was diagnosed with chronic lymphocytic leukemia in 2002.

Thinking there had to be a better way to treat cancer, Kanzius,

Over the past few years, Kanzius’ laboratory at Industrial Sales & Mfg., Inc. has been toured by some very important people, including politicians, journalists and celebrities alike. Clockwise are: golf legend Arnold Palmer and Lesley Stahl of “60 Minutes.” At left, Dr. Steven A. Curley of M.D. Anderson and John Kanzius discuss the progress of their research.

John Kanzius


who had been undergoing chemotherapy, had the idea to kill the cancer cell with radio waves. To do this, Kanzius developed an RF machine that essentially “tricks” the cancer cells into absorbing a metal target, or nanoparticles, into the inside of the cancer cells, leaving the healthy cells alone.

“John didn’t have a medical degree and all that, but in some rights, he was a genius. Just because he kept thinking and he kept pushing. He was able to put different ideas together to make it work,” says Charlie.

Rutkowski fondly remembers the day in January 2006, when he spoke with Kanzius, a family acquaintance, about an issue that he was having, with his invention at M.D. Anderson. It would be the first time Industrial Sales & Mfg. Inc. and the Rutkowskis got involved with the Kanzius RF project.

“After Charlie came back from M.D. Anderson,” notes ISM President and CEO Jim Rutkowski Sr., “we started to build another unit, and that’s when we opened up our lab. We provided an area, where we spent all our time with John – from morning till night.”

Soon a lot of important people, from journalist Lesley Stahl of “60 Minutes” and actor Peter Fonda, to senators, governors, state representatives and Canadian politician Gary Mar, came to ISM’s lab, wanting to see Kanizus’ invention up close. There was a lot of energy around the project, and Kanzius, at the

time, even developed a possible alternative energy solution that burns salt water using the same radio waves used to destroy cancer cells.

“You just knew we were on the brink of a new scientific phenomenon,” says Charlie.

It’s those discoveries many expect could open up endless opportunities for the medical community and the manu-facturing industry, if they are successful. And ISM, the Rutkowskis say, is ready to play a supporting role.

“John always wanted to keep it in Erie, and obviously it’s our goal to keep helping everybody, and keep John’s dreaming going,” says Charlie.

“Plus, Erie’s always been a big supporter of the project,” adds General Manager Jim Rutkowski Jr. “What, over a million and a half, almost $2 million in community support to the research? And it’s our hope and goal to carry the ball across the line.”

Kanzius, they say, would have wanted it that way.

“Someone once asked me if he were here today, ‘What do you think John would say to you, if he were here now,’ ” says Charlie. “ ‘Well, what are all you people sitting around doing? We’ve got work to get done.’ ”

To donate to the John Kanzius Cancer Research Foundation, visit www.kanziuscancerresearch.com.

The Manufacturer & Business Association has actively supported Kanzius’ project since 2007. Shown here: Roar on the Shore® Grand Marshal Peter Fonda meets with Kanzius and the Rutkowski family during his visit to Erie. The 2007 Roar on the Shore® bike rally raised more than $52,000 to aid Kanzius’ research.


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As we all know, the Internet has changed the way we do almost everything — from communication to shopping to research and even the way we learn. A relatively new approach to learning, known as e-learning, is perhaps one of the most affordable and efficient ways to enhance training for your company and its employees.

E-learning is a form of training, that is conducted in an electronic format, most commonly using the Internet. It can be used by businesses and organizations to effectively address almost any subject.

Company BenefitsE-learning offers many positive benefits for professional training. Some of these benefits include:

• Convenience – E-learning allows on-demand access so that executives decide when training occurs rather than adhering to provider schedules.

• Affordability – The cost to purchase online training is generally less expensive than other training mediums. In addition, e-learning saves the expense of travel.

• Efficiency – E-learning is one of the most efficient methods of professional training. Using the online channel saves your company time lost from employee travel, as well as allowing employees to stay in the office to continue performing everyday tasks.

• Appeal – Online training is particularly appealing to the new generation of workers who seek on-demand access and instantaneous results.

DisadvantagesDespite the many benefits of e-learning, there also are disadvantages to the medium.

• Investment – If you plan to implement your own learning management system (LMS) for e-learning, this will require an up-front investment. Be sure to take the time to carefully budget and negotiate with solution providers.

• Lack of technology – Although the number of businesses with broadband access continues to increase, those organizations still using dial-up or without Internet access must implement high-speed Internet before being able to utilize e-learning.

• Acceptance – Although online training is highly preferred by Generation Y employees, those more experienced employees may have difficulty accepting the new format.

Do Your ResearchThe most important thing to remember when considering e-learning is to do your research. Weigh the advantages and disadvantages of implementing e-learning into your business. If you decide that e-learning is right for you, start by writing down

the features and services that you are looking for in a provider. This will help you to organize your research and make finding the right provider much easier. There are many LMS solution providers available, so be sure to shop around, asking specific questions and negotiating to find the right provider for your business.

For more information, contact the Center for eBusiness and Advanced IT at 814/898-6500 or visit www.ebizitpa.org.

e-LearningEDITORIAL > by Ron May

Ron May is the interim executive director for the Center for eBusi-ness and Advanced IT (eBizITPA). eBizITPA’s mission is to assist Pennsylva-nia businesses and organizations with un-derstanding, using and developing information technologies to grow the economy.

Is It Right for You?

“The question is no longer IF the Internet can be used to transform learning in new and powerful ways.”

— U.S. Web-Based Education Commission


STAIRWAYS BEHAVIORAL HEALTH NAMES DIRECTOR OF MARKETINGStairways Behavioral Health has named Heather May Caspar as the new director of Marketing and Community Education. Caspar will report to Mary Ellen Dahlkemper, chief administrative officer, and will be based out of the offices at 2185 West 8th Street.

GANNON NAMES VP OF UNIVERSITY ADVANCEMENTJack H. Sims has been named Gannon University’s vice president for University Advancement, ending a national search to fill the position.

Sims has more than 14 years’ experience in fundraising in higher education, as well as several years’ experience in fundraising for other types of nonprofit organizations. Most recently, he spent nearly five years at Virginia Wesleyan College in Norfolk, Virginia, where he served as vice president of College Advancement and led a comprehensive campaign that raised $40 million while also increasing substantially the college’s number of donors.

CHANNELLOCK APPOINTS MARKETING DIRECTORRyan W. DeArment has been named director of Marketing for Channellock, Inc., a worldwide leader in the manufacture of high-quality pliers and assorted hand tools, based in Meadville. DeArment served most recently as special projects manager and director of National Accounts

for the 122 year-old hand tool manufacturer.

BERNSTEIN LAW FIRM PARTNER NAMED 2009 BEST LAWYERRobert S. Bernstein, managing partner of Bernstein Law Firm, P.C., was recently selected by his peers for inclusion in The Best Lawyers in America® 2009 in the field of Bankruptcy. The Bernstein Law

Firm is located in downtown Pittsburgh with satellite offices in Washington, Lycoming and Philadelphia counties. The firm concentrates on Creditors’ Rights, Bankruptcy and Restructuring, and Business Law.

People Buzz EDITORIAL > Contact: Karen Torres

PENN STATE BEHREND MAKES STAFF APPOINTMENTSPenn State Erie, The Behrend College, has hired: Carrie Ann Egnosak, undergraduate studies adviser in the Division of Undergraduate Studies; Beth Ann Frederick, associate director of the Office of Development and Alumni Relations; Albert Gesler III, associate director of the Office of Development and Alumni Relations; Michelle Hartmann, area representative for Continuing Education at Penn State Behrend; Cynara Stubbs, coordinator of the Center for Service and the Smith Chapel within the Division of Student Affairs; and Tera L. Van Doren, financial aid coordinator in the Office of Admissions and Financial Aid.

GENERATION-E LEADERSHIP AWARD WINNERS ANNOUNCEDTwelve local individuals have been chosen as recipients of the 2009 Generation-E Leadership Awards, which recognize young professionals who are paving the way for the future of Erie.

This year’s winners, presented by the Young Erie Professionals (yep!), include:

• Alyson Amendola, director of Communications and Public Relations, Office of the Erie County Executive

• Tony Bruno, corporate sales manager, Scott Enterprises

• Rob Celeski, welder and chairman of Employees’ Community Service Fund of GE, GE Transportation

• Matthew Cummings, director of Marketing Communications, Erie Regional Chamber and Growth Partnership

• Jodie Gloekler, educational program coordinator, Gannon University SBDC

• Kevin John-Jobczynski, celebrity sports artist

• John C. Lyons, co-owner/filmmaker, Lyons Den Productions; information technology generalist, Edinboro University

• Brad Moore, marketing manager, Center for eBusiness and Advanced IT

• Christine Pennsy, director of Communications, VisitErie

• Joseph Sinnott, mayor, City of Erie

• Shelly Walker, dance artist

• Beth Zimmer, director of Talent Acquisition, senior consultant, J.L. Nick and Associates


*According to FORTUNE® magazine, March 17, 2008 issue. PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). Banking and lending products and services and bank deposit products and investment and wealth management and fi duciary services are provided by PNC Bank, National Association, PNC Bank, Delaware and National City Bank, which are Members FDIC. Private equity fi nancing and mezzanine fi nancing are provided by PNC Equity Partners and PNC Mezzanine Capital. Investment banking and capital markets activities are conducted by PNC through its subsidiaries PNC Bank, National Association, PNC Capital Markets LLC, Harris Williams LLC and NatCity Investments, Inc. Services such as the syndication of loans, public fi nance advisory services and securities underwriting, sales and trading are provided by PNC Capital Markets LLC and NatCity Investments, Inc. Mergers and acquisitions advisory and related services are provided by Harris Williams LLC., using the trade name of Harris Williams & Co. PNC Capital Markets LLC, Harris Williams LLC and NatCity Investments, Inc. are registered broker-dealers and members of FINRA and SIPC. Investments and Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. May Lose Value. Lending products and services, as well as certain other banking products and services, require credit approval. ©2009 The PNC Financial Services Group, Inc. All rights reserved.

AT PNC, OUR STRENGTH IS YOUR STRENGTH.

PNC Corporate & Institutional Banking Let our disciplined approach to growth move your business forward.

Named Middle Market InvestmentBank of the Year,

Investment Dealers’ Digest (2008)

Named one of America’s MostAdmired Companies,

FORTUNE® magazine (2008)*

Ranked No. 1 lead arranger of middle marketloan syndications in the United States,

Loan Pricing Corp. (2008)

Named one of The BusinessWeek 50,BusinessWeek (2008)

96% of middle market clients are “Highly Satisfi ed”with their PNC Relationship Manager,

PNC Middle Market Client Satisfaction Survey (2007)

Senior Debt Financing | Mezzanine Financing | Equity FinancingM&A Advisory Services | Treasury Management | Capital Markets | Wealth Management | Institutional Investments

It’s no secret that today’s economic environment has made it diffi cult for middle market companies to obtain the capital they need to grow. But now that National City is a part of PNC, clients of both banks have access to one of the leading lenders in the country.

PNC is the #1 syndicator of middle market loan transactions in the United States.

By taking a long view on the balance between risk and reward, PNC has stayed strong and stayed focused on our most important job: serving our clients.

With deep industry knowledge and an uncommon commitment to our clients’ success, our dedicated relationship managers are experts at unconventional thinking at a time when traditional ideas aren’t enough.

96% of middle market clients are “Highly Satisfi ed” with their PNC Relationship Manager.

From capital raising to capital markets, treasury management to risk management, we have what middle market companies need to be successful. How can we help you? We’re ready to get started. To learn more, call Marlene Mosco at 1-814-871-9212 or visit pnc.com.

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