QUARTERLY MEETING OF THE ELECTED COMMITTEE OF MANAGERS
April 25, 2015
Crowne Plaza Dallas - Market Center
7050 N. Stemmons Freeway
Dallas, Texas 75247
Called to order 8:35 A.M.
Roll call of ECM and Guests
Paul Parker, Zach Davis, Manny Sifuentes, Dwayne Zuppardo, Clayton & Beverly Hell, Karla Martinez, Aloha Cook, David & Beverly Corbett, Calvin Shepard, Steve Saltzmen, Silvia Delanie, Tommie Crawford, Steve Swirling (Kahala Brands), Allen Crites (Kahala Brands Texas), Tom and Kim Chepey, Chelsea Davis, Mike Hooks.
Approval of minutes of last meeting.
Motion to accept minutes, motion passed.
BET Directors Report
Started: 8:40
Texas Ranger’s Hall of Fame, Waco, TX. Creed over the door, “no man in the wrong, can stand up against a fellow who is in the right and just keeps coming”. 1895, prize fight was to be held in Dallas, which are illegal in most places, often ended in death. Massive gambling also took place. Riot ensued, because the town was split on if this fight should take place, mayor of Dallas called for the Rangers. Rangers sent 1 person, Captain Bill Mcdonald.
Program Status
118 facilities, started with 119.
Opened 1 new facility, “celebration station”, this is Clayton’s rest area. Closed a facility in El Paso, combined it with another facility. Madinacur rest area was also rolled into an existing vending route. 8 facilities have been upgraded this year, and three more are slotted. 2 facilities being contracted, NASA in Houston, and VA in Waco. 5 facilities under temporary management, San Antonio, Camp Hubbard, Texas Commission for Environmental, Hardaman county rest area, 4 facilities out for bid currently, Hardaman county, NASA, Environmental Quality, & Camp Mabry. 01-May application deadlines.
111 managers in the program, 3 have left.
3 unassigned managers- Frank Reohas, Bunk Goodrum, & Russ Olson.
3 managers enter the program this year. Carnel Pardu, Jenna Norwood, & Matthew Brewerton.
1 Trainee currently, Arnald Martinez- used to be in Michigon’s BEP in good standing.
Employing 1373
10 blind
77 other disabilities
BET Financials
Cash Reserves- 1.7 million.
Trust Fund- 1 million
Projecting we’ll bring in revenues of $701,000.
State Vending Commissions: projection $875,000
Legislative Session
HB 2824, 2831, 3706
· 2824: neutritional requirements that could hurt sales regarding vending machines.
· 2831: mirroring federal requirements that will be rolling out soon. Only effects “chain restaurants” with 20 locations or more.
· 3706: peanut warning sign, if any peanut products are used.
Sunset Review:
· Suggested DARS should be completely rolled into HHSC, in one large medical model.
· Now, during public testimony, an advocacy group proposed taking division for blind services, Disability Determination Services, and BET should go into Texas Workforce Commission.
· Transition date has been changed from Sept 1 2015, a standdown order was issued, saying no more conference calls or meetings.
· Transition was changed to September 2016. Recently a committee was appointed to discuss the changeover date.
Mrs. Cook asked if there is a chance that the legislature would just leave us alone?
Mr. Hooks responded absolutely not
Arbitration
· Briefly mentioned the FT Bliss Arbitration, to help Harvey J keep his military base.
· Ft Sam Houston Bid will be selected within 72 hours. If army awards it to us, great, if not BET will be going back to bat.
American Council of the Blind
· July 2015
· ACB annual conference is in Dallas.
· ACB interested in 8-10 members to visit a facility downtown.
· ACB wants BET operators to come 05-Jul Sunday morning, to the conference.
Ended 09:10.
Chairman’s Report
Started 09:10.
NAMA Convention
· National Automated Merchants Association
· Vending interests from across the USA. Tradeshow is very large and diverse. It runs for three days, unfortunately Clayton could only see part of it.
· Clayton mentions that how BET operators used to not be on the same side as the vending conglomerates, but that is no longer the situation. “It’s no longer combative as it once was.”
· Nicky Gacos is now the first blind operator elected to the board of directors of NAMA.
· Unvailed FIT-Pick-2.0, healthy options for vending machines.
· Micro-Markets were a big component of this meeting. There are locations where the introduction of micro-markets increased profits 100-180%.
· June 2-3- BEI Fly-In, to DC.
Looking for operators that are in either DOD or road-side rest area facilities to participate in this.
Capital Hearing Report
Started 09:19
Presented by Manny S
Clayton provided him with some talking points and the ECM’s position. This was his first time to do something like that. He felt it was necessary, and we needed representation. “We had to help ourselves”. The agenda was in place, but he learned that they do not go in order. A break was taken, do to the legislative session, and then their hearing opened back up.
Rep. Lucio is a very passionate person, apart of the capital wellness committee. He was authoring two bills, for this hearing. His primary stance was that no healthy options exist in the vending machines.
Rep. Lucio does not want it to be up to the vending manufacturers to decide what options should be offered, instead the state is who should “drive this train”. Lucio’s bill proposes that 25% of snakc machines must meet specific health criteria.
One REP did ask if we should just remove all vending from state property, but Lucio did refute this, explaining why it is important to have vending machines present, just with healthier options.
Another REP mentioned how successful it was regulating the machines for kids on school properties, and his point was that adults also need the government to restrict what they can choose to eat.
Manny gave brief stats about our program and also explained who he was as a business man, as well as his and our interest. He proceeded to present the ECM talking points on this bill. He continued into explaining what ECM, BET, and Texas Wellness Committee have already been working on, to achieve healthier vending options. He proposed the mandate was not necessary since we’re already working on this, and that a mutual worked on goal would be better than a mandate.
Manny’s Recommendations Post Hearing
1. A program is implemented with some sort of deadline.
2. Annual Performance Review should score people on whether they are following our healthy plan.
3. Perhaps having our state contracted machines be required to follow the plan.
There was brief agreement that possibly something should be done to the performance review to provide a benefit to BET operators that abide by these guidelines.
At the end of the hearing, Mario Munos and another lady were excited to see a representative from BET present.
Ended 09:33.
Chairman regained the floor at 09:34.
He was speaking with Mario Munes, a lobbiest.
He agrees that perhaps we should look into adding something to the annual performance review regarding healthy initiatives.
Mrs. Cook mentioned she didn’t think it should be something we are scored on, because building’s like her’s where the building says she doesn’t have the right to put product in her own machines that they don’t wish to purchase.
Chairman responded that we need to get ahead of this because it will become a mandate.
09:38.
Kahala Presentation
09:38.
Steve and Allen.
Steve: Provided basic history about how Kahala became involved with Business Enterprise Programs.
· Kahala has a portfolio of 15 franchizes.
· Jason, the Arizona BEP director, contacted Kahala, explaining how he was interested in bringing branding to their state facilities.
· Jason’s initial concept was to simply add a Blimpy’s sub to the state capital, that was it. Steve examined the Arizona capital, responding with this would be simple.
· Steve then starts to learn that states vary, based on the particular rules/policies of their BEP programs. In Arizona, BEP operators cannot franchize, so he paired them with an existing franchizee.
· They decided to fully convert the cafeteria, added smoothies, subs, Cold Stone, as well as an Asian grill operation.
· The newly branded capital facility opened November 2014.
· Kahala cannot disclose specific sales, but they are on track to hit three times the facility’s previous year’s sales.
Steve explained in the Arizona facility, due to BEP operators not being legally allowed to franchise, that the franchisee operates the property, but the permittee is also on sight.
· Zach D asked what actual level of involvement did the BEP operator have, and Steve did allow that its more of a commission receiving situation, instead of a business owner operator.
· Kahala is currently talking with 4-6 states BEP operations, to figure out future prospects.
Texas Side
Kahala is also experiencing greater requirements regarding the nutritional issues that we are facing, and they are on the ball. It is not a problem to meet all sorts of nutritional requirements, Kahala can easily provide calorie counts and documentation of that nature. They have operational systems in place, accounting systems, training etc.
· Cold Stone Creamery cannot go in federal properties, due to some type of dairy regulation.
Blimpies are big in texas, the energize healthy smoothies are also big in exercise facilities in texas.
Mr. Hooks asked: what would you identify in states between being able to franchise or not franchise.
Steve’s answer is that state law is what determines whether or not operators can become franchisees.
Mr. Hooks asked, what are the specific terms regarding the length of the contract in Arizona?
Steve, 5-year franchise agreement, with a 5 year extension. This way, if the idea ends up not being profitable, no one is tied into a long unpleasant relationship.
Tom C asked, what is the ownership/make up of Kahala Foods?
Steave responded with, Kahala is a privately owned company. 2/3 is owned by a specific family.
1/3 is owned by the original founder, Kevin Blackwelll.
Michael and Aaron Serruya are the primary active 2/3 owners.
Ended 10:15.
Adjourned for break.
Started -10:31.
District Reports
District 1 Food Manny S
· Harvey S, has been hosting local area managers at his house, in their party barn. Manager turnouts from both south and north Austin, and some distant managers also have been in attendance.
· Kieth Turner: nothing seems to be present that concerning.
· Wayne Sibson: he’s gotten some repairs performed, and he is looking for a cook.
· Harvey S: everything is going well, he’s still temporary managing the vending facility at his location.
· Carla Martinez: She’s attended all three gatherings.
· Matt B: awesome guy, working with his wife, trying to keep his numbers moving. Apparently he has had some issues reporting sales in his online report.
District 1 Vending Calvin S.
· Mr. Sparks did not respond.
· Constituants asking when we can pay set-aside online. (Mr. Hooks replied that he has not forgotten this, and it is still in the works.)
· One Operator’s phone numbers went inactive.
· Irwin Arcut: hard to get ahold of, could not contact.
· Mr. Delagarza: Could not get ahold of.
District 2 Food
Zach D
· Scott Smith is doing well in Fort Worth. He said it’s smooth sailing, and currently has no issues.
· Ed Marlow is very excited for the new Federal Aviation Administration building to be opening soon. Other than that, he said he is doing quite well.
· John Mauler was not able to be contacted.
· JD Stuart was also unable to be contacted.
· Steve Saltzman is considering making significant changes to how his lunch is operated. Building population is continuing to get worse, more tele-working and flex scheduling.
· Al is doing well, in Dallas, he is content with sales and currently has no issues.
· Tommie Crawford, in Farmer’s branch, is happy to report sales have increased slightly. He is continuing to work on finding ways to make his facility more profitable, regardless of a seemingly low population.
· Zach Davis is continuing his slow but steady increase of sales, in Dallas. Currently there are no issues.
District 2 Vending
Dwayne Z
· Contacted all operators in his area, some only got voicemails.
· Everyone said most things are ok, no complaints or problems.
· Only concern was the HB 2824 and its status.
District 3 Food
Gregory S
Absent
District 3 Vending
Kingsley
absent
District 4 Food
Dave C
· Not a lot going on with food service for his district.
· Difficulty getting ahold of managers.
District 4 Vending
Clayton H
· A prison operator is getting more requests for healthier options in his vending machines.
· Has not been able to get ahold of Jenna Norwood as of yet.
District 5
Harvey J
absent.
District 5 Vending
Paul P
· Several conversations with managers, who are interested in the healthy eating initiatives.
District 6 Food
Karla M
· Kristen M: good increase on sales. Trying to better manage shopping, not buying too much etc. She’s currently looking into wider product options.
· Ronnie W: business is stable, no complaints. He won’t increase his prices, he wants to be reached by phone or snailmail.
· Travis W: facility remodel, BCs are working with him and Mr. Hooks, to figure out what he can do regarding issues with DPS.
· John L: Worried in Jan due to significant sales decrease, but as of march, sales had returned to normal. Having some issues with equipment, but Carla and John will be meeting with his BC to sort this out.
· John D S: Hired a girl to work Camp Hubbard, marketing experience, doing a lot of visual alterations. Sales have increased, many positive comments are flowing forth. At John’s primary facility he is happy with his sales. He’s interested in receiving a food truck, and wants the program to grow.
· Maria B: was having issues, but those have been resolved.
· Tom C: Increased prices in Jan, sales are on the rise 15-20%. At TCEQ, where he is temporary managing, he’s increased sales there 12-19%. He’s happy with his results, only issue that was mentioned was regarding BCs involvement with staff termination. Tom’s customers complained to BET. He did not like how he was not presented with the actual complaint that was filed. He also wished that the complaints would have been filed and transmitted to him via email trail.
Mr. Hooks responded with how the customer complaint situation was handled, describing to all about the DARS Inquiry complaint line.
Mr. Hooks suggested, operators should write up their story, and actually post it for customers to see in the facility. Written communication is highly important.
Carla M: Very happy, her sales are great! This year, Q1, $30,000 average more than last year. Building host relation is great.
Several of her managers have mentioned this to her, they would like the BC to send via email written comments regarding facility reviews.
Mr. Hooks responded, if you ask them any of his BCs would be more than happy to do so, but he will not require all of them to do this everytime, at this time.
District 6 Vending
Aloha C
· Left all managers voicemails, but none called her back.
· One manager said his financial numbers are getting messed up, when he puts them in the system. It was taken to his BCs, shown to them, but the numbers are incorrect.
· Aloha’s sales were great at the end of the year, due to increased trainings. The trainings have ended, leading to the sales decreasing again.
Ended at 11:07.
Chairman mentioned that Vistar has a list called Good ToGo, which is their list of healthy items.
Sub Committees Reports:
Rules and Bylaws Subcommittee: Gregory Stavinoha
In Greg’s absence, Zach D presented this report.
· All proposed revisions had been emailed to the ECM in advance of the meeting, so Zach D simply went over the specific changes, instead of reading word-for-word the original text and the changed text.
· Proposal 1- was to only allow ECM election voting through Email and Text Message, but this was not accepted. It was agreed that snailmail needed to be added back into the revision for the near future.
· Proposal 2 was to have all election voting completed no later than 15-December, or the following Monday, if it falls on a weekend. This was accepted.
· Proposal 3 was making financial reports, of the ECM funds, due by each quarterly ECM meeting, which also must be emailed to the ECM by these meetings. This was accepted.
· Proposal 4 was adding the requirement to post said quarterly financial report to the newly created ECM website, for transparency. This was accepted.
· Proposal 5 was a requirement that the annual audit must be both emailed to the ECM and posted on the ECM website, by the 60 day current required deadline. This was accepted.
· Proposal 6 was the removal of the requirement that a chair of a committee specifically select three members to serve on the committee, instead there is no specific required number now. This was accepted.
· Proposal 7 was adding that either the chairman or a committee created for said reason must insure that basic principles of parliamentary procedure, according to Robert’s Rules of Order, are followed in the meetings. This was accepted.
Revision Conclusion
· The Chairman concluded that once the agreed upon revisions to the proposed revisions were completed, the ECM would vote them into the By-Laws on the following conference call.
· Zach D said they would be altered, and a final draft would be emailed out, to all ECM representatives, before the next conference call was held.
Finance and Budget Sub Committee: Harvey Johnson
· $5942.62 is the current balance, conveyed by the Chairman.
· Chairman mentioned that VanVending money hasn't arrived yet, but is interested in figuring out why.
Manny S: Pledged the first $500 donation to the training conference. He suggested a potential end of donation window for the end of July.
Tom C: asked if the 2014 ECM financial audit had been conducted.
The Chairman responded that he will have to get with the treasurer to find out
Elections Sub Committee: Zachary Davis
· Most of this report was covered in the By-Laws report.
· This year’s voting will take place via preferably email or text message, but snail mail will be allowed for those who wish.
· He mentioned that perhaps by elections of 2016, we can start voting through the website.
Training Conference Sub Committee: Manny Sifuentes
· October 17 training conference
· Training on better eating today and or healthy options for both food and vending.
· Chairman mentioned that RSA buying group wanted to be made aware when BEP organizations are having annual training conferences, to assist in having providers come to food shows.
· Manny reiterated the donation structure, $100, $200, $300, $400. Operators donating in advance will receive 1-4 banquet tickets and 2-8 drink tickets, based on their donation level.
· Conference committee is also discussing the concept of people who receive extra/unnecessarybanquet tickets, the option to exchange those for additional drink tickets.
Mr. Davis: mentions that Texas Lottery is highly interested in attending the training conference.
Training of Potential Managers Sub Committee: Aloha Cook
· The current trainee was excited and enjoyed the training he received. He actually was left to run Tom C’s facility, last Friday, and he was very appreciated that Tom C had faith in him.
· There are 5-6 people applying to the next class, and we will see how many pass the application process.
· Arnald, the current trainee, described how different his vending experience in Michigan was than in Texas.
Vending Sub Committee: LaRoi Fier
· Kingsley was unable to attend.
· Chairman: 2-weeks ago Kingsly emailed stating he was unable to meet the requirements of his position, due to family issues.
· Chairman feels nothing is pending currently, so he does not feel it is pivotal to replace him at this time.
ECM Website Update
· Chairman recommends adding Website standing committee to the by-laws, adding it. Recommending Mr. Davis as the chairman of this committee.
· Committee approved the addition of the Website Committee, as well as Zach D for chairman.
· Zach D described the website has been in limbo, pending the committee creation.
· He briefly described what is on the site, and what will soon be coming.
Discuss ways to gain more access to facilities around the state.
· Chairman was speaking with Michael Tally, regarding expanding our business opportunities.
· Alabama created this concept, but it has also been adapted by Georgia.
· Existing managers locate potential business opportunities that might be a viable location. If a manager located a facility that was in need of vending, the SLA would assess the location, and then add it to that existing facility list of attached vending.
· Hooks mentioned he is a little cautious with the thought of managers finding ways to strengthen their own facility, instead of strengthening the program.
Tommie Crawford: started speaking about how accessible apple computers are, voice over, accessibility. His point was regarding ability to submit monthly reports using Safari.
Mr. Hooks responded DARS refuses to make the database safari accessible. Explaining it
S completely pointless, it will not happen.
Set date and city of next meeting.
18-July El Paso, 08:30.
Adjournment 12:14.