M I N U T E S

REGULAR MEETING of the HAWAII STATE COMMITTEE OF BLIND VENDORS

DATE:	Saturday, September 27, 2014

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

PRESENT:

1.	Committee:  Kyle Aihara, Chris Akamine, Dane Alani, Ivy Galariada, Steve Kim, Clyde Ota, Lyn Pasak, and Don Patterson

Excused:  Joel Cho

2.	Members:  Ron Flormata, Tony Fuimaono, Gerry Lonergan, Joaquin Luna, Doug Moises, Lespaul Naki, Norman Ota, Jeff Segawa, Virgil Stinnett, Myles Tamashiro, and Stan Young

3.	Ho’opono:  VRA Albert Perez, SBA Lea Grupen, Business Manager Kat Fujimoto, VFS Kyle Laconsay, VFS Bruce Nitta, VFS Susan Chong and Secretary MJ Andres

4.	Guests:  Deputy Attorney General Lori Wada, Evelyn Racpan, and Gail Sakamoto

CALL TO ORDER:

Noting the presence of a quorum, Chair Kyle called the meeting to order at 10:05 a.m.

At this time, Chair Kyle wanted to begin meeting with the Department of Health Healthy Initiative and introduced Katie and Carolyn to give their update on this initiative which rolled out in May this year.

Carolyn reported that 6 of 8 vendors participating in the program have rolled out with this project and thanked them for their participation.  They surveyed about 450 employees in 7 state and federal buildings, a lot of whom currently don’t shop in the stores, and discovered 75% want healthier snacks and over 2/3 want healthier beverages.  The vendors participating in the program reported to more than double their green items – i.e. water, fresh fruits, whole grains, unsweetened dairies.  They reported an increase of about half as much on yellow items – i.e. water with artificial sweeteners, lower sodium.  The red items (high sugar, high sodium, etc.) also showed a slight increase.  Taste tests were held in each participating locations so consumers could sample the new items.  They were able to get approval to send emails to emails to help promote the program.

She also reported that had a press event at which three news stations were present, an article on healthy initiative was printed in the Honolulu Star Advertiser, and they’ve also added a web page.  They hope to expand to the neighbor islands.  They plan to have the next press event in May 2015.

She reported that Castle Hospital is the first private business who also joined the program.

To anyone interested, they will provide set-up and training.  They are also developing a tool kit that will be available on-line.

The whole idea for the program is to hopefully supplement vendors’ current sales and also to offer employees and consumers more choices that could benefit their health.

PROGRAM REPORT:

At this time, Business Manager Kat introduced and welcomed new Vending Facilities Specialist, Susan Chong.

She also announced and congratulated Ivy Galariada as the new blind vendor at our brand new facility at Joint Base Pearl Harbor Hickam, Buildings 167 and 2.  Subsequently, there’s an opening at Kapolei Hale.

1.	Potential New Facilities:  Business Manager reported they are still working with DAGS on Kamamalu which is scheduled to open sometime late next year.  The building will be mainly administrative offices and house about 200 employees.

2.	RSRA Balance:  Business Manager Kat wasn’t able to provide the balance due to program system issues, but will attach the report to these minutes when it becomes available.

3.	Program Policy regarding Minimum Hours of Operation:  Business Manager Kat noted she would like to work collaboratively with the committee to develop the program policies starting with the minimum hours of operation because issues have come up in numerous facilities that either have changed their hours of operation, are not compliant with their permit, or a permit doesn’t define actual hours and we’re getting inquiries from the public as to what are the hours.  She proposed minimum hours from 7:00 a.m. to 3:00 p.m.  She noted that if your permit has specified hours outside of this minimum, then they need to comply with those hours.  This item was deferred to a sub-committee.

Kyle added that this is occurring with only a handful of vendors and majority of the vendors work long hours; however, there are some hours that are inconsistent or not open at all.  What they want to accomplish is to provide service to the public and as Randolph Sheppard vendors, we have the responsibility to do so.

4.	Vocational Rehabilitation’s Current and Future Budget Outlook by VRA Albert Perez:  VRA Albert reported that he reviews the budget almost weekly with the assistance of new budget specialist, Kimberly Wu, Branch Administrator Shawn Yoshimoto (former budget person) and Consultant Regina Luster, formerly of Rehabilitation Services Administration (RSA) and have been looking at the projections for the next 5 years.  He noted that VR is not able to comply with the funding he was hoping to give the blind vendors over the next few years.

The new proposal is to continue with $1.3 million budgeted for FY 14 and carry it over to FY 15 until renovation projects are completed.  In FY 15, VR will contribute $400 thousand with a match of $145 thousand from Randolph Sheppard Revolving Account (RSRA) for a total of $545 thousand in renovation work in FY 15.  In FY 16, VR will contribute $200 thousand with a match of $145 thousand from RSRA.  In FY 17, VR will contribute the same $200 thousand with another match of $145 thousand from RSRA.  The new proposal is for VR to contribute a total of $2.1 million with a match of $435,000 from RSRA for a total of $2,535,000 for renovation work from FY 14 to FY 17.

Moving on into FY 15, VRA Albert noted that the agency will be operating about the same at the start of FY 14 in October 2013; however, costs have increased in comparison to FY 14.  The large pool of funds that VR has was a result of the Reduction in Force (RIF) back in 2010 and no pay raises during same period so personnel costs were fairly low.  VR has since filled many positions and personnel cost have risen this year and will continue to rise which will result in a lower cash flow.

As a result of the Council of Revenue forecast, VR budget will be reduced by 10% effective FY 16 through FY 18.  The state government has already initiated a 10% restriction at the start of SFY 15 and it’s anticipated that it will continue for the remainder of the fiscal year.

VR will go to the legislature primarily to request for additional $300 thousand for the Older Individuals who are Blind program.  In addition, VR will request for no-cost items which include additional positions for the Disability Determination Branch which will be 100% federally funded through the Social Security Administration and possibly restoring some of the positions we lost due to the RIF.

To sum it up, VR is stable but there are concerns looking ahead.

5.	Update on the Bowfin Museum Appeal:  DAG Lori reported that a settlement agreement has been reached and thanked Chair Kyle, Business Manager Kat, and SBA Lea for their joint effort.  In summary, Bowfin cannot sell any individually packaged items for single consumption and no packaged foods measuring 11.1 ounces or less.  This settlement agreement provides us with permanent jurisdiction with the federal court.  The agreement was tailored to cover a broad range of snacks which Bowfin cannot sell ever.  Bowfin can continue to sell any hot foods items.  Any other food or beverage machines they install will need prior approval from SLA before installation.  Bowfin was allowed in fairness to sell whatever inventory of chips and candies without new orders.

We were also able to negotiate the terms of the vending machine income which reduced a little.

In the future, the trend on the mainland is to take over souvenir shops.

EXECUTIVE SESSION:

Chair Kyle recessed the meeting at 11:06 a.m. to executive session and reconvened the regular meeting at 11:33 a.m.

NEW BUSINESS:

1.	Sub-Committee Reports:

a.	Budget and Finance

(1)	Renovations – Don reported that the sub-committee contacted blind vendors who are currently not on or were dropped from the renovation list to find what the needs are and presented it to the agency.  The SLA will determine what’s reasonable to accomplish.

Business Manager Kat reported that VR has spent a total of $88,232 to date for purchase of equipment which would have normally come out of RSRA.

(2)	Supplemental Medical Benefit – Chair Kyle asked if we’re on schedule for disbursement of $2,000 supplemental medical benefit.  Business Manager Kat responded that it was budgeted.  Chair Kyle approved to disburse benefit payments as approved at the last regular meeting held June 14, 2014.

APPROVE THE MINUTES OF THE REGULAR MEETING HELD JUNE 14, 2014:

Following the reading of the minutes of the Regular Meeting held June, 14, 2014, Don moved that the minutes be accepted as submitted.  The motion was seconded by Lyn and passed unanimously by voice vote.

NEXT MEETING:	To be announced.

ADJOURNMENT: 	There being no further business to discuss, Chair Kyle asked for a motion to adjourn.  Steve moved to adjourn the meeting, Clyde seconded, and the motion passed unanimously by voice vote.  The meeting adjourned at 11:52 p.m.

Transcribed by:
MJ Andres, Secretary
SBB/Employment Section

**Follow-up Note:	The balance of the RSRA as of 9/30/14 is $1,522,381.41.