M I N U T E S

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

DATE:	Saturday, July 26, 2014

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

PRESENT:

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

2.	Members:  Kyle Aihara, Gerry Lonergan, Steve Kim, and Joel Cho

3.	Ho`opono:  Business Manager Kat Fujimoto, VFS Bruce Nitta, and Account Clerk Janis Maraya

4.	Guest:  Gail Sakamoto

CALL TO ORDER:

Noting the presence of a quorum, Don called the meeting to order at 10:00 a.m.

OLD BUSINESS:

1.	Review Everything Being Spent from SFY 2014 VR 110 Funds Including Copies of All Related Documents:

a.	Costs of Awarded DAGS Bids:  BM Kat provided a summary of bids awarded.  A copy of the summary will be attached to these minutes.

The committee is requesting for cost breakdown and scope of work to justify the work and to ensure that the work conforms to blind vendors’ requests.

b.	Cost Estimates of DAGS Renovations that have not finished the Bid Process:  BM Kat noted that the only bid not finished is for Liliuokalani.

c.	Costs of Other Things that have been spent Such as Repairs, Equipment, Etc.:  BM Kat noted that the total purchases in process or already completed is $61,118.  She also noted that the balance of funds for renovations is $114,000.

d.	Costs of Other Things Already Planned to be spent Such as Repairs, Equipment, Etc.:  BM Kat provided a VR 110 Expenditure Plan, a copy of which will be attached to these minutes.

Stan noted they haven’t received the monthly expenditure report.  BM Kat will follow-up with MJ.

2.	Review Estimated Schedule of DAGS Renovations Work:  BM Kat noted that the contractor has from the date of order to proceed until early November to complete the work and said they will try to speak to the contractors one-on-one know as they come on board and explain to them that this is impacting the livelihood of the blind vendor and, as much as possible, will try to get them to work so that the time spent at any one facility is compressed; no guarantee, but we’ll see what they can do.

She has also asked the contractors to give the blind vendors one month advance notice so that they can draw down their inventory.  The usual practice is that contractors will inform DAGS one week in advance. 

The vendors present expressed their concerns of not knowing what work will be done on a given date and wants to be included in the communication.

BM Kat noted that DAGS has a project manager to oversee the actual construction and is the point of contact for the contractor.  He will be directed to contact both the SLA and blind vendor as soon as he gets word.

Following discussion, BM Kat noted the structure of the project as follows:

●	Renovation funding is from VR
●	VR has an agreement with DAGS to manage the project
●	DAGS manages the contractors and is responsible to VR (BEP)
●	BEP is responsible for making sure the blind vendors are taken care of.

Communication stream should be:
►	BEP needs to know everything that goes on
►	DAGS manages the project and takes direction from BEP
►	Blind vendors should be getting all the information and all communications from BEP.
►	If blind vendors have a concern, it comes to BEP and BEP goes to the project manager.  She noted that not even BEP should be giving directions to the contractors.  BEP should be calling DAGS and DAGS giving directions to the contractors.

Stan expressed concern about having active participation and the possibility of a miscommunication problem to vendors. 

Gerry asked for a contingency plan in the event something goes wrong and the vendor loses a lot of product.

BM Kat will get clarification from SBA, but for any loss incurred during the renovation, if a vendor has an open VR case, there’s a good chance the vendor can be compensated.  If not, she advised them to open one.  If they haven’t had a VR case open within the last 5-10 years, it may impossible.

What Gerry is asking is if the committee will agree to help the blind vendor with funds available in the Randolph Sheppard Revolving Account in the event something goes wrong and the blind vendor is unable to get funds from VR.

Don noted if the situation got really bad he’d be in favor of reducing benefits and using Randolph Sheppard monies to help the blind vendor if necessary.

Ivy suggested saving the $114k in the event they need to bail out a blind vendor.

Joel asked where does the committee draw the line noting what if they find asbestos and a vendor is out for months; or if a door breaks and the vendor is closed for a week.  He closed for a week because his door broke and noted anything can happen.  Where do you draw the line if it’ll support this vendor but it takes the benefits from all vendors.  We’re supposed to be, and everyone wants to call themselves, an entrepreneur and a business person.  The program can make the best effort to help and we will help them no matter what happens, but where do you draw the line.

Kyle noted that we may not be able to use the $114k for compensation because it’s not designated for that purpose.  BM Kat noted it can be used for equipment.

Stan noted this is where the vendor has to be involved, not to change the management process but be involved in every level, such as when to schedule to be opened.  He noted that maybe it should be included as part of the renovation that if the vendor has damage from the renovation process that he should be compensated and set a limit.

BM Kat noted that the contractor is only responsible to the person who awarded the contract.  She noted that sometimes the more people put their hands into the pot, the more barriers there are and nothing gets done.  If there’s a clear line of communication and we’re taking direction from one person, we can work a lot easier.

Gerry reiterated a couple items:  if some Randolph Sheppard monies can be put aside for emergency, let’s do it; and there has to be some kind of communication to ensure the vendor’s needs are met.

Kyle noted that if the SLA wants to be in charge, they have to be responsible for anything that goes wrong.

Common concern among vendors is communication.

RECESS AND RECONVENE:

Don recessed the meeting at 11:14 and reconvened at 11:31 a.m.

NEW BUSINESS:

1.	Review the Vendor Wish List and Discuss Options on What May be Spent First Depending on How Much Renovation Funds are Left:  Don noted that he contacted vendors, except for those vendors already on the renovation list, to see what their needs are.

Kyle suggested that this item needs to be tabled and that the SLA needs to conduct surveys of the facilities and check on electrical, flooring, lighting and painting that need to be done.

The committee basically needs to discuss how they can expend the balance of the 2014 renovation monies by September 2014.  BM Kat provided a list 

Kyle noted that West Hawaii Civic Center negotiations between Stan and Hawaii County identified the need for funding at an estimate of $40-50k.  He noted that program reached out to Warren Lee of Hawaii County and requested a breakdown of what needs to be done and were told they needed $129k.  The problem is that VR monies can’t be spent on work that was already done.  Per VFS Bruce, the keys will be turned over to SLA at the end of the month.  There’s $17k worth that’s needed to complete construction, $40k for the build out of facility and an additional $4k for initial inventory.

BM Kat reported that Warren is appreciative of any monies that can be sent over and that program is currently working on an MOU in attempt to get the $17k for the work still to be completed.  Program can procure the equipment and try to get Dane in by September 15, however, there’s a possibility that the equipment and initial inventory may not happen until FFY 2015.

Kyle noted that we, as the program, need to take responsibility that we made a mistake and anticipated the work would be completed before actually getting a permit and taking possession of the facility.  Moving forward, program will not do solicitation notice until we take physical possession of the facility.

It was noted that the committee feels comfortable to have Chair Kyle and Kat to work the $114k before it expires.

NEXT MEETING:	To be determined.

ADJOURNMENT: 	There being no further business to discuss, Don moved to adjourn the meeting.  Ivy seconded and the motion passed unanimously by voice vote.  The meeting was adjourned at 12:03 p.m.

Transcribed by:
MJ Andres, Secretary
SBB/Employment Section