Quarterly Meeting of the State Committee of Vendors
DRAFT
Friday August 16, 2024
Chairman, Randall Crosby called the meeting to order at 8:35 am. Vice Chairman, Kurt Ponchak called the role.
The following individuals were present; Randall Crosby, Chairman; Kurt Ponchak via Teams, Vice Chairman; Mitzi Bowen, State Committee of Vendors Recording Secretary
District Representatives; Not present, District 1; Colton Knight, District 2; Mark Turner, District 3; Darryl Brinton, District 4; David Stevens, District 5; Kash Ahmed, District 6 Alternate; Jim Warth, District 7; Sead Bekric, District 8; Ed Spence, District 9 Alternate; Antonio Gonzalez, District 10
Bureau of Business Enterprise Staff; Bill Findley via Teams, Bureau Chief; Maureen Fink, Operations Manager; Alan Risk, Compliance Officer; John Ahler, Business Analyst; Not present, Marketing and Site Development Manager; Angela Elgaard, Region 1A Business Consultant; Brian Ashworth, Region 1 Business Consultant; Bernie Kaiserian, Region 2 Business Consultant; Jay Payne, Region 3 Business Consultant; Tony Arduengo, Region 4 Business Consultant; Not Present, Region 5 Business Consultant; Yusnay Torrens, Region 6 Business Consultant; Mary Ellen Harding, Administrative Services Consultant; Andrea Mendez, Administrative Assistant
Florida Division of Blind Services Director; Robert L. Doyle
District alternates/Licensed Vendors; Patrick Martin, District 2 Alternate; Jose Quintanilla via Teams, District 7 Alternate; TJ McCormick, Mike McCrea, Career Technology and Training Center for the Blind and Visually Impaired training staff; Raven Pulliam
Guests; Tracy Spence
Motion to add Tampa route reorganization to the agenda – Kurt, Seconded – Jim, None opposed. Motion to move grievance discussion as the 1st agenda item – Kurt, None seconded. None opposed. Motion to adopt the agenda as amended – Kurt; Seconded – Colton; Adopted without objection. Discussion prior to motion to accept minutes as written from the last committee meeting held on June 14, 2024. It was commented that Mitzi is concerned with being reimbursed for travel to produce the minutes when they are being amended later. It was suggested we discuss it further when Bill returns so a clear understanding of the process can be established. Motion resumed - Kurt; Seconded – Colton; Accepted without objection. All of the above are voice votes.
Grievance Issues – Alan Risk
Alan is concerned with grievance hearing issues that occurred in the past few years. Alan asked committee reps to give their opinion on the purpose of having grievance hearings. He was asked to read current rule. David commented grievances are used to determine if any rules have been broken. The grievance’s purpose is to determine if the state agency violated policy. Mark commented its purpose is to allow a vendor to grieve an action they are dissatisfied with. Jim stated the main purpose of a grievance is to gather all the facts and present such material to a grievance panel at an informal hearing. Sead commented it is supposed to be a fair and unbiased process for all vendors. David mentioned a prior grievance where policy/rule would not be violated regardless of the panel’s decision so he questioned whether the agency violated rule when they went against said panel’s decision. Alan asked if panelists are supposed to act as advocates during a hearing. It is mutually agreed that panels such as grievance and selection need be impartial while vendors and the committee can advocate on a claimant’s behalf. Mark commented it seems panelists could be considered advocates for either side simply based on the decision they make. Sead commented we all need continued training regarding the process, rules, and ethics for our elected panels. It is Kurt’s opinion that a particular panelist is being accused of advocating, but only when the panel’s decision does not favor the agency. In response, Alan told the committee of an instance involving said panelist sending documentation to panel members in advance. The 2nd instance involved whether the agency chose the right vendor for a facility. The vote was 4 to 1 until said panelist made additional comments during the hearing which changed the vote in the claimant’s favor. The 3rd instance said panelist was accused of treating a vendor with animosity during a hearing due to conflicts they had in the past. It was commented that said panelist does a great job and is very knowledgeable, but maybe the grievance panel is not the right position for them. Colton stated he observed the most recent grievance hearing. There appears to be confusion as to the proper role of the moderator and the parameters to which they can speak. He also asked why 3 separate panels made a decision that was later overturned by the agency. Kurt commented our process has flaws and we need to improve. He added we should try to ensure grievances are resolved appropriately to prevent vendors from choosing to request a chapter 120 hearing. The agency has the resources for such matters whereas most vendors would not. A few commented they weren’t able to hear the agency’s side of the most recent grievance. Alan commented Bill removed agency staff from the grievance and selection panels when he became bureau chief. This was to improve the integrity of their processes. Colton suggested a work group, to include Alan and Kurt that can evaluate this issue further. Mark asked if it was against rule for a vendor to participate on more than 1 panel/board. The general response was it is not against rule, but not a practice we have observed in the past.
Merging of Facilities 512 and 530 (FCI and Fed Detention Center) – Maureen Fink
These 2 prisons produced very good sales prior to the pandemic. One did $360,000 per year and the other did $280,000. Now one is at $200,000 a year and the other may reach $70,000. Things continue to change and the prisons are limiting the products that can come in. For example, nothing with orange packaging and no dark colored drinks. It is recommended both facilities are advertised together as a type II for a 12 month period. Motion to temporarily combine facilities 512 and 530, advertise them on a type II LOFA for 12 months, and make a decision at that time to determine viability together/separately – Kurt; Seconded – Jim. Antonio, the current operator of both, asked when they would be advertised since his contract ends in December 2024. They will be advertised in either October or November of this year. Colton – yes, Mark – yes, Darryl – yes, David – yes, Kash – yes, Jim – yes, Sead – yes, Ed – yes, Antonio – yes, Kurt – yes, and Randall – yes. Motion passed without objection.
Tampa Route Reorganization – Maureen Fink, Tony Arduengo, and Jim Warth
There is potential for 4 viable routes that would each have their own storage in the Tampa area. Randall wants to create an ad hoc group to review this further. The group participants will include Bernie, Tony, Jim, Sead, and Darryl will serve as chair.
Appointment of Nominations Committee – Kurt Ponchak
Policy 8.4 was approved by the committee at the last meeting. As per policy, a subcommittee will consist of committee reps and alternates. It is Kurt’s recommendation we use alternate reps to serve on the subcommittee. Jim questioned the reasoning. This gives alternates more involvement in committee business and gives them more experience should they ascend to rep. Sead and Randall suggested we allow any vendor to participate on the subcommittee. Motions to refer policy 8.4 back to the Policy and Procedures Subcommittee – Randall, Seconded – Jim. 2 questions arose. How much of the policy would be reviewed and the answer was all. The 2nd was whether we should implement the policy in the meantime. It seems it would be required. Motion to table Randall’s motion - Colton; Seconded – Kurt; Colton – yes, Mark – No, Darryl – yes, David – yes, Kash – yes, Jim – yes, Sead – yes, Ed – yes, Antonio – yes, Kurt – yes, Randall – no. Motion tabled 9 to 2. Motion to use form 780 – Nominations Application Form), not use a subcommittee to review the applications, but rather have the full committee review them – Colton, Seconded – David; Jim questioned who would receive the applications and it was suggested they go to Alan. Kurt suggested the motion be rephrased to specify the full committee would be the nominations committee. Questions arose, prompting Alan to read portions of policy 8.4. Colton rescinded his motion.
Legal Updates – David Chappell (via Teams)
David is still working on the vending situations at Hurlburt Field and Eglin AFB. The permits at Eglin are still getting lined up. He hopes to get an update from opposing council on that by next week. They agree we are entitled to the vending and are working through their logistics to make it possible. Details cannot be discussed regarding the recent mediation session for Krome Detention Center. The vendor is still in place with no immediate action being taken to remove them at this time. Krome does appear willing to negotiate with us but we are prepared to go through all legal options if necessary. We plan on going to arbitration with Tyndall AFB but the panel needs to be selected first. A request has been made for material under the Freedom of Information Act that Tyndall is stalling on. We are encouraged to familiarize ourselves with public records and sunshine law. If you don’t want something read or heard you need be mindful of what is written or spoken at recorded meetings. Randall asked if we could get an exemption from Sunshine Law. David stated it is difficult unless you have a specific statutory exemption. Sunshine Law is very broad. We could ask the state legislature for a waiver. VR and DBS clients for example, are exempt since their personal information is protected by law.
Management Service Needs – Kurt Ponchak and Colton Knight
Colton says we need legal advice for issues, for example, developing a code of conduct to properly govern ourselves. He is asking to have a budget for assistance from an attorney to guide us in making corrections and clarifications to our policy manual. Another example given was our repair reimbursement policy needs revising. Randall asked where the budget should come from. As a management service need we would have the right to access set aside funds. Randall suggested referral to the policy and budget subcommittees for more discussion. Kurt commented we should include a request for assistance when it comes to preparing procurement packages. Especially larger ones like our camera project. He added we need to be forward thinking as it can take up to 2 years to get things accomplished when dealing with the state.
Set Aside Holiday – Kurt Ponchak
Our spending authority limit is $595,000. We currently have over $500,000 in set aside. We have enough funds this year to meet our obligations. Motion to waive set aside collection for all vendors during the months of November and December 2024 – Kurt, Seconded – Jim. Jim asked if agency staff had objections and there is none. Jim called the question. Colton asked for clarification as to whether this would occur during recording or reporting months. Concerns arose with the timing as this will require RSA’s approval. Motion amended to collect 0% set aside for 2 consecutive months with RSA approval in the fiscal year 2024/2025 – Kurt, Seconded – Jim; Last year our RSA-15 report showed $624,000 when our authority is at $595,000. Sead asked if we can use any of these funds for purchasing generic machines as an example. We can, but we need to approach the legislature in hopes of increasing our spending authority since we average $54,000 each month. The plan is to work on that before the deadline for requests. Options like transferring 5% to other accounts will be considered at a later time. Voice vote – motion passed without objection.
Camera Installation Update – Alan Risk, Brian Ashworth, and Randall Crosby
Alan and Brian submitted a procurement package as an RFP in early August. It was returned with a request to submit as an ITB. 10 items were listed in the request. The items are based on the 2 rest areas being used as a pilot. Both vendors gave positive feedback.
BBE Updates – Bill Findley and Maureen Fink
Angela Elgaard is the new Region 1A business consultant. The position was added since Brian has such a large territory to cover. She is coming from the training center in Daytona. Brand new to us is Yusnay Torrens. She will be the region 6 consultant. Raven Pulliam is our new instructor in Daytona. He is taking over for Steve Moss who recently retired. Raven was in charge of the Illinois program and has prior food service/training experience. He has worked on many projects with Bill in the past. He will work under contract with Daytona College. He will review our training material to see what improvements are needed or what is antiquated. Angela, Jay, and Raven will conduct interviews next week to replace 2 food service training positions in Daytona. Bill plans to reach out to DBS offices for future training candidate recruitment.
DBS Updates – Director Robert Doyle
Director Doyle attended the first mediation with ICE regarding Krome Detention Center. He feels we have a strong position there. There are projects impacting our budget authority and we may have to ask for additional spending authority next year. The roughly $3 million annually from Social Security reimbursements (which is positive) also has an impact on budget authority. He also mentioned that overall costs have gone up. The Director talked about a new technical assistance circular (TAC) that has been released by RSA for BEP. He also discussed the need to evaluate the support measures given to VR clients who are in BEP training and OJT.
The committee was also reminded that all committee and subcommittee members are all subject to Sunshine law and if discussion occurs outside of public hearings the law is being violated. The Director informed the committee that he has only overturned 3 or 4 grievance recommendation decisions in his 11+ years with the division. He discussed the documents that he reviewed in making the most recent decision, which included the Florida Administrative Code, the grievance documents, the timing of the request to merge the routes, the recording of the meeting where route the merger was requested and other relevant documentation. He reminded the committee that recommendations are recommendations and that when the panel makes recommendations that it is his responsibility to view those recommendations and make a determination. While the committee voted to merge 2 routes, and the grievance panel upheld the decision, the Director did not accept the recommendation.
Daytona Training – Raven Pulliam
Raven took a tour of our training center in Daytona about 2 years ago and is very pleased to join us now. His education includes attendance at the Culinary Institute of America and Johnson and Wales University, He has held chef positions at country clubs, universities, and large catering facilities. He has food service teaching experience in Illinois and Mississippi. Angela will spend next week in Daytona to assist Raven with his transition. Tony asked if we are up to date or behind other states in comparison. He hasn’t seen many facilities yet, but is pleased with Florida rest areas compared to other states thus far.
Budget Report – Kurt Ponchak
At the last meeting reps were asked what information they want to see in future budget reports. Based on feedback efforts are being made to compile the requested data. Last fiscal year we managed to spend most of our funds towards repairs for example. Travel costs were higher due to our seminar. We have $83,000 that needed to be certified forward. Monies were tight at the end of the year, but all our needs were met.
Type II Update – Maureen Fink
29 Type II’s are on the list. 4 were advertised in May and none awarded since there is little interest in food service. We have to decide how to proceed with these facilities going forward. Randall asked if we could merge 2 located at KSC. It is open for discussion however distance and transportation would be challenging to a vendor. Facility 466 did over $300,000 last year. Facility 403 did $129,000, but was closed for several months. We have at least 7 licensees without facilities.
Training and Recruitment – Mary Ellen Harding
3 trainees are in and will complete OJT by the beginning of September. If licensed, they can participate in the upcoming bid process. 2 people are scheduled to start Daytona training in September. 6 people are in varying stages of the application process for the following class. Our recruitment comes from DBS office referrals. They have a lot of turnover so new counselors are not aware of our program. It is recommended BEP be added to DBS staff training material. Other partners like the Lighthouses should be included.
Compliance Officer Report – Alan Risk
Motion to accept Alan’s report as written – Jim, Seconded – Colton; Voice vote; None opposed; Alan added he will send a list of names for vendors in need of CEU’s upon request to district reps
Business Analyst Report – John Ahler
Issues are getting better with the reimbursement process. The fiscal department now has a full staff. The back log is getting smaller. It was clarified that (paid in full) on an invoice still requires proof of payment unless the invoice says cash payment. The vendor still needs to provide a signed and dated receipt in that case. Choosing direct deposit will ensure safer and quicker reimbursements. Some stats for 3 quarters of this federal fiscal year include sales last year at 18.8 million. This year 19.6 million which is up 4.54%; Cost of Goods are up .005% from 8.4 million to 8.5 million. Gross Profit was 10.3 million and now at 11.1 million. Set aside collected is $487,989.00 with 3 months remaining. We are expecting to be over $50,000 above our spending authority at fiscal end. Average vendor earnings went from $88,000 to $98,000 a year. The number of vends went from 10.5 million last year to 9.9 million this year. One reason could be the loss of Sunpass sales at rest areas. Our vendors received $600,000 in revenue from two-tier pricing through credit card sales.
Regional/District Updates – All
Region 1 and 1A – Brian Ashworth and Angela Elgaard
Brian and Angela had a phone conference with Top Sail Hill Preserve State Park. We will establish facility 638 to handle the laundry facility for the 150 plus campsites at the park. There are no sales figures yet. 6 washers, 6 dryers, 1 changer, and 1 snack (for detergent) will be installed. The vendor will need to pay utilities, establish a cashless payment system, purchase the propane gas, and clean the laundry area at least 3 times a week. Brian was on a call with Cavern State Park to express our interest in laundry service there. They will be renovating and expanding soon. The new region 1A will be from the Alabama state line to the Apalachicola River. 3 facilities will move from region 2 to region 1.
District 1 – Not Present
District 2 – Colton Knight
The vendor in the Turlington building is still having a/c issues. The temperature has been as high as 98 degrees. Per DMS’ request all equipment has been removed so temperature measurements can be recorded.
Region 2 – Bernie Kaiserian
The region did 7 million in sales last year and will do the same this year. Sales are down $100,000 (2.8%) for the first 6 months of 2024. This is in part to the loss of Sunpass at 2 welcome centers. Facility 218 showed record sales of over $50,000 in May and 503 showed record sales of over $30,000 in June. We are waiting for our 60 day notice from Sunpass that the contract will be terminated. Darryl was awarded facility 489 (I-95 Welcome Center) and took over in June. Hugh Mansfield reconsidered leaving our program and will continue to operate facility 033 (Duval County Courthouse) on a type II.
District 3 – Mark Turner
The district continues to communicate with each other regularly. Several roads are still closed due to Hurricane Debbie.
District 4 – Darryl Brinton
Nothing to report
Region 3 – Jay Payne
The Orlando West Route (586) is currently operated by Kash. Machines will be installed at 2 GSA locations. Social Security will get 4 drink and 3 snack machines. The building services 3 agencies. The IRS will receive 2 drink and 1 snack machine. Equipment will be removed from 2 underperforming post offices. The Longwood rest areas (415/416) were awarded to Ryan Ackley from the last bid cycle. Communication is ongoing about changing from vending to a micro market on the first floor of OSB-2 at KSC. The Mims rest area SB (409) is scheduled to close on September 3rd for renovations.
District 5 – David Stevens
Coleman Prison continues to makes changes. They asked if clear bottled liquid can be offered as opposed to cans. Clearance is challenging. For example, equipment needs removing. Dates were requested but not approved until those same dates had passed. It would help if we had a good point of contact.
District 6 – Kash Ahmed
Nothing to report
Region 4 – Tony Arduengo
Machines were added to the VA on the Polk County Route (634) and that project is complete. 2 locations were added to the Sarasota/Bradenton Route (555). Oscar Scherer State Park in Osprey was surveyed for potential laundry service. It would be added to facility 555. The West Tampa Route (161) added a Social Security office and will add a VA very soon. All the washers and dryers will be replaced at the park on route 396. Sales ($1,700 last month) have increased at the VA Mental Health Clinic. The location also has a cafeteria. Machines had to be removed from the baggage claim area at the Punta Gorda Airport. They are spread out in other areas. Dunkin Donuts was added, but they are expected to fail. The Alligator Alley rest area (482) had a Pepsi glass front machine stolen in broad daylight. The machine was properly bolted in place. The concern is the theft was so easy it will continue to occur.
District 7 – Jim Warth
Jim would like a meeting with some vendors in his area, agency staff, and FDOT over issues at the rest areas. A vendor had a machine pried open, product, and money removed all in the presence of security and maintenance staff.
District 8 – Sead Bekric
Sead just completed a 12 month trial with a Jofemar coffee machine and states he has had no repairs. It holds up quite nicely in the heat of summer. A small downside is selling only 8 ounce cups. Sales have improved since the removal of the Crane coffee machine.
Region 5 – Maureen Fink
Facility 352 (Broward County Government Center) has a new operator, Carmella McKinney George. She is operating the vending and will take over the snack bar at the end of the month. Ryan Akeley is leaving facility 469 (Palm Beach County Courthouse to take over a rest area he was awarded. We will be converting the snack bar to a hybrid micro market. David Coe will operate it on a type II. This is pending the Palm Beach County agreement being approved. A third party company (Over the Top Catering) will take over facility 612 (Broward Sheriff’s Office cafeteria. We currently have 3 vending machines in the new building. Arthur Johnson resigned from facility 547 (South Broward Vending Route). It is currently operated by a 3rd party and will be placed on the September bid cycle. Sead asked if it is possible to combine 547 with something else. There would be a lot to consider first.
District 9 – Ed Spence
Ed has had problems with theft on his route. He has added cages as a preventative measure. He is waiting for machines to be removed from a location so we can proceed with our install.
Region 6 – Yusnay Torrens
Facility 015 (Dade County Courthouse) will be moving to a new building that is currently under construction. We will not be moving with them. The existing building is listed for sale by Miami Dade County. We haven’t been given a date of completion. We are no longer able to prepare food on site for facility 589, a micro market due to sanitation issues. Facility 117 (Miami East Vending Route) will get a new drink and snack machine at the Clyde Atkins Courthouse. We may look at adding a hybrid micro market at the Claude Pepper Federal Building once it finishes renovations and gets more capacity. Facility 348 (State Regional Service Center is being operated by a 3rd party, Pro’s Catering. Sales at the cafeteria are around $150,000.00 per year. We may put this out on a type II to see if there is any interest in the location.
District 10 - Antonio Gonzalez
A vendor is concerned with possible post office closures in their area and wants us to be aware.
Saturday August 17, 2024
Roundtable Discussion – All
Kurt said he received the cash report yesterday. We now have over $522,000 in the account. Jim asked if we reconcile our accounts monthly. Bill states we are not getting our reports timely or accurately. We have transitioned from Bank of America to Wells Fargo and still need to remove any funds remaining B of A. Motion to rescind policy 8.4 and refer it back to the subcommittee for further review – Colton, Seconded – Darryl; Colton – yes, Mark – yes, Darryl – yes, David – yes, Kash – yes, Jim – yes, Sead – yes, Ed – yes, Antonio – yes, Kurt – yes, and Randall – yes. Passed without objection; Phil Hubbard (via teams) asked if we could consider lowering our set aside rate to 5% rather than offer a 2 month holiday. It is possible in the long term, but does not help our current situation. Most agree increasing our spending authority is the best long term solution. Sead wants to create a work group and study the use of generic vending machines. Participants will include Sead, Kurt, and Darryl for example. Our current machine contract includes a generic drink machine option. Things the group needs to consider include Coke/Pepsi providing free machines and repairs, timing of repairs, leasing, etc. One idea is to add a trainer in Daytona that has knowledge specific to vending machines. Generic machine use could impact our pricing structure. A vendor in district 1 wants to know how the committee will handle the representation of their district. The rep had issues last minute. It was too late for travel to be approved for the alternate. Solutions include attending via teams and/or getting pre approval for alternates to travel. Jim recommends vendors read TACs as they contain very valuable information. The contract with Rozen Plaza has been approved for the 2025 seminar. There is a new item called Glidance self-guided mobility device. It would be a robotic version of a guide dog. There are demos available online. A licensee without a facility wants to know if they can participate on subcommittees. All meetings are advertised and open to the public. Colton surveyed the committee and asked if they are willing to take floor nominations for elected positions. The overall consensus is yes. Time should be allotted on the agenda for candidates to vet themselves.
Meeting adjourned at 9:55 a.m.
