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HO`OPONO	BUSINESS ENTERPRISE PROGRAM
SERVICES FOR THE BLIND BRANCH
	
DIVISION OF VOCATIONAL REHABILITATION	PHONE:  (808) 586-5283   FAX: (808) 586-4143	
STATE OF HAWAII DEPARTMENT OF HUMAN SERVICES	
1901 BACHELOT STREET, HONOLULU, HAWAII  96817	

M I N U T E S

BUDGET AND FINANCE SUB-COMMITTEE MEETING of the HAWAII STATE COMMITTEE OF BLIND VENDORS

DATE:	Saturday, February 22, 2014

PLACE: 	Ho’opono Auditorium
1901 Bachelot Street
Honolulu, Hawaii  96817

PRESENT:

1.	Sub-Committee:  Donald Patterson, Stan Young, Dane Alani, and Ivy Galariada

2.	Members:  Kyle Aihara, Chris Akamine, Gerry Lonergan, Lespaul Naki, Norman Ota, Jeff Segawa, and Myles Tamashiro

3.	Ho`opono:  BEP Manager Kat Fujimoto, VFS Bruce Nitta and Secretary MJ Andres

4.	Guests:  DAG Lori Wada, Dyllon Asami, Shontel Jones, Evelyn Racpan

CALL TO ORDER:

Noting the presence of a quorum, Don called the meeting to order at 9:05 a.m.

OLD BUSINESS:

1.	Review 10 DAGS Renovation Projects:  Don reported that DAGS provides different estimates for different facilities from electrical, plumbing, painting, etc.  The committee reviews it along with SLA and asks DAGS to amend where possible.

Discussed:

Gerry agreed to remove $23,000 electrical work from renovation project at his snack shop.

Don reported that DAGS provided a list of renovations and read the breakdown as follows:

All Projects	$669,054
Design and Planning	$175,000
Total Cost	$923,054

Manager Kat reported that the difference from the total of about $79,000 is for DAGS support services for the entire project.

Stan commented that about 25% of the cost is going to DAGS for planning or services and feels it’s excessive.

Don also commented that a lot of the costs are excessive and hopes to get some of the costs down.

The general consensus is that the costs are high for various projects and they would like to see a breakdown for the high costs.

The target date for completion of renovations is November, with payment in December.

Any monies leftover can be used for other facilities.

Gerry asked what the plan is for those vendors that need to close 1-3 weeks; will the SLA help with loss income?  Manager Kat responded that there’s a possibility that if a vendor has an open VR case, their counselor may be able to assist with loss income during the closure and suggested that, in anticipation of any loss income, they open a VR case.  It is not a guarantee, but it’s a possible avenue.

Manager Kat reported that there may be a hazardous material issue possibly asbestos-related at Keelikolani Building and Kekuihewa; subsequently, it will be an additional cost for testing and, if necessary, proper disposal of the material.

Don reported that Dolly’s has a door on the list and said there are concerns that placing a door may hurt sales.  Stan said that one reason Dolly wants a door is because during a power outage, she’s not able to open or close the current roll-up door.  He recommended purchasing an Unlimited Power Supply (UPS), a battery-operated back-up power source.  A few other reasons for the door are to keep rubbish out and retain the air-conditioning.  Manager Kat will consult with DAGS if there are any issues.

Don reported that they met with the architect and asked for a redesign.  Chris commented that he requested the redesign to leave front wall leading to kitchen open for easy access for cooks to serving area, keep hand-wash sink in same place and include two areas for registers.

Don read Chris’ request:  doesn’t need anything moved, redo kitchen floor, new stove, fryer, grease trap, receptacles, movable partition, ceiling tiles, and painting.  Chris confirmed the kitchen floor, stove, fryer, grease trap, fire suppression, portable wall, kitchen as is, new counters, vents, lit exit sign from main hallway, new display cases.

The committee’s concerned that $420k will be spent for one vending stand alone.

Gerry expressed concern that although he’s agreed to have certain work removed from DAGS doing, he wants assurance that his projects will be given a date to be done.

Manager Kat noted she’s not encouraging the work be done now regardless of cost, but if we wait to do it in the future, they need to understand that VR 110 monies may not be available and the Randolph Sheppard monies will have to be used for maintenance issues.

Stan commented on two points:
1)  VRA Albert Perez told us that we are not likely to get settled funds like this.

2)  We are trying to save some money so that we can take VRA Albert’s suggestion and match it with other funds, VR funds or Randolph Sheppard monies and help all the other vendors.

The committee agrees that the common factor to remove from the contract is painting and floor stripping and waxing.

DAG Lori asked the committee can work out a process to address glitches.

Manager Kat agrees with the idea of sharing information, but she also would like to share responsibility.  The responsibility of the SLA is to have active-participation.  The SLA communicates to the Chair and respective Sub-Committee Chair on issues involving respective sub-committee.  It’s then the Chair’s and Sub-Committee Chair’s responsibility to disseminate to the members the information they feel necessary.

After discussion, Don moved to accept Kyle’s recommendation to establish a committee for the DAGS projects comprised of the Committee Chair, Budget Sub-Committee Chair, the SLA and respective vendor for decision-making without having to hold a formal committee meeting.  Ivy seconded and the motion passed unanimously by voice vote.

Regarding information communication, Don moved that when the committee makes a decision on DAGS projects, 1) the SLA will email the Chair, Budget Sub-Committee Chair and the vendor on the decision then 2) Chair and Budget Sub-Committee Chair will have the discretion to inform the rest of the vendors.

At this time, Manager Kat announced that there’s an emergency repair work that needs to be done at Kona Airport for an estimated $6,000.  Following discussion, Myles asked if Kona Airport refused to replace the door because it’s part of the facility from DAGS.  Don moved that the SLA consult with DOT first then expend the $6,000 if needed.  Dane seconded and the motion carried unanimously by voice vote.

Don reported that the Kona Airport is budgeted for $101,000.  Stan added the breakdown is $45,000 for each facility and $11,000 for cost over-run.  No details have yet been provided.

After discussion, the committee agreed to go along with the renovation project with DAGS.

2.  Develop Budget for SFY 2015:

a.	Current Balance:  Manager Kat reported that the balance in the Randolph Sheppard as of February 21, 2014 was $1,355,410.69.

b.	Current and Projected Expenses and Income:  Don reviewed line items of the report provided by Manager Kat.

During discussion, Manager Kat reported that she added line items as follows:  an estimated $50,000 for the opening of West Hawaii Civic Center; $15,000 for possible renovation of Airport Post Office; Joint Base Pearl Harbor Hickam Buildings 167 and 2, $50,000; Maui Airport, $150,000; and Kamamalu Building, $50,000.

After discussion, Kat read proposed budget as follows:

$553,101, before inclusion of added facilities
$888,101, includes added facilities and possibly two additional licensed vendors
Estimated Income:  $696,791
Balance:  a deficit of $191,310

c.	Benefits:  After discussion, Don moved to approve $4,000 for retirement, $4,000 for medical and review budget later to consider a supplement benefit payment.  Ivy seconded and the motion passed by unanimous voice vote.

NEW BUSINESS:

1.	Other Locations for Upcoming Locations:  Discussed installing slat walls, new cooler, and possible flooring for Airport Post Office; Maui Airport hasn’t been renovated in at least 20 years; Maui County Building will cost an estimated $48,265 and Maui County has agreed to absorb labor cost.  The committee asked Manager Kat to see if county is willing to split the cost.

NEXT MEETING:	The next meeting is to be announced.

ADJOURNMENT: 	There being no further business to discuss, Don moved to adjourn the meeting.  Stan seconded and motion carried unanimously.  The meeting was adjourned at 11:40 a.m.

Transcribed by:
MJ Andres, Secretary
SBB/Employment Section