Nevada Committee of Blind Vendors

Minutes of the meeting on Saturday, June 11, 2005

  1. Roll Call and Confirmation of Quorum

Richard Saperstein, Chair, called the meeting to order at 10:00 am.

Members Present:Richard Saperstein, Bert Hansen, Harold Petrofsky, Gene Wilson (via telephone)

Members Absent: William Schley

Mr. Saperstein confirmed that a quorum was present

  1. Verification of Posting

Maureen Cole, BEO II, verified that the agenda was properly posted and that certificates of posting are on file.

  1. Approval of Minutes from February 25, 2005 Meeting

Mr. Hansen moved to approve the minutes as presented. Mr. Petrofsky seconded the motion and it carried unanimously.

  1. Introduction of Guests

Guests present: Audrey Saperstein, Beth Perring, Benita McHenry, Gary DeFalco, Gayle Sherman, Cecilia Colling, Aikaterine Vervilos, Kevin Jones, Russell Smith, Mary Allen, Maureen Cole

Mr. Saperstein noted that the Chair may take agenda items out of order in order to accommodate committee members who may have to leave before the meeting adjourns.

  1. Bureau Report

Gayle Sherman, Chief of Program Services, described the Bureau’s plan to install QuickBooks to better monitor and track operators’ financial data, including loan balances, under/over payment of set aside, and payment of amounts due after the outside audits. The use of the Quick Books system will allow Ben records to integrate more readily with the state system. She noted that the Bureau has entered into a contract with Kafoury and Armstrong to set up the QuickBooks software and to train the Ben staff.

Ms. Sherman also described the Bureau’s plan to contract with an outside CPA firm of Solari and Sturmer to provide professional review of operators’ monthly profit and loss statements. This monthly review would provide greater consistency among operators as to how financial information is reported and identify errors early on so they can be corrected before serious harm is done. This will also separate the regulatory and assistance functions of the Bureau. The CPA firm will also advise the program how to revise the form to provide better financial information. This new approach will save time and money during the outside audits of sites grossing over $150,000 per year. The cost to the BEN program will be no more than $15,500 per year.

Mr. Hansen suggested that the Bureau consider a monthly audit of the high earning sites and change NAC 426.267 to include outside audits of problematic sites. Mr. Saperstein expressed concern at the cost of the outside CPA review. There was general discussion of the current audit process and its cost-effectiveness. Both Mr. Saperstein and Gene Wilson requested that this plan be placed on the next NCBV agenda for further discussion. Mr. Saperstein requested that the Bureau take no further action on the contract until the NCBV considers it in September.

Ms. Sherman reminded the operators to submit their medical reimbursement claims by July 22 or to make arrangements with BEN staff if they have medical bills that may arrive after that deadline. She also listed the medical expenses that are covered under the programs medical reimbursement policy and procedure.

Ms Sherman noted that the Bureau is looking at the BEP training programs in other states to see if we could either use some of their training materials or send Nevada trainees to other states for a portion of their training. The Bureau continues to research training resources in Nevada.

Ms. Sherman reported that the snack bars in the new office building in Carson City and the new DMV in Las Vegas are progressing on schedule. Staff will begin soliciting bids for the build out and equipment for each location.

  1. Budget and Legislative Report

Cecilia Colling, Chief of Operations, noted a typographical error in the budget report and said a corrected report will be sent out to all operators shortly.

  1. Old Business
  1. Update on Status of Pending Legal Matters Involving the Bureau and the BEN Program

Aikaterine Vervilos, DAG, reported that Victoria Oldenberg is going to continue to handle the City of Las Vegas matters and has tentatively scheduled a meeting on June 22 with the City to discuss the situation. Ms Vervilios noted that the Regional Transportation case is ongoing, as are the cases involving Mr. DeFalco, Mr. Hansen, and Gregory Krohn. The Department of the Interior is still reviewing the settlement agreement in the Hoover Dam case. Mr. Hansen asked which of his cases is still open and Ms. Vervilos said she would be happy to discuss it with him privately.

  1. Update on Unassigned Vending Revenue

Cecilia Colling reported the significant increase in unassigned vending

revenue since the RFP contracts went into effect on February 1, 2005. She

indicated that staff would provide the committee with a recap of the

increases.

  1. Discussion and Possible Recommendation and Direction from the NCBV Regarding the Proposed Changes to the Set-Aside Schedule

Beth Perring stated that she supported a reduction in set aside and that the retirement benefit also needed to be raised. Mr. Saperstein stated that the committee needed to take a look at reducing the set-aside as opposed to raising the retirement. Mr. DeFalco stated that operators needed help in increasing their sales more than decreasing the set aside. He suggested that the Bureau consider espresso machines as a means of increasing sales at many BEN locations. Mr. Wilson stated that he is not sure that the time is right to reduce the set aside income. He stated the committee needs more time to see whether the unassigned vending revenue continues to increase. Mr. Saperstein asked Ms. Colling whether the set aside could be reduced given the present status of the BEN fund. Ms. Colling stated that it depended on program goals, but that that a reduction in set aside appeared possible a this time. However, known site expansions, remodeling and new equipment, and increases in retirement and health benefits would have to be analyzed to ensure that the fund would remain sound if the set aside was reduced. She noted that the growth of new BEN sites has been resisted by several entities which has prevented budgeted funds from being spent on expansion and then added to the carry over of funds from one year to the next as reserve. She mentioned that Senator Beers offered to meet with local officials to discuss compliance with the BEN program.

Mr. Wilson moved to accept the proposed set-aside reduction. Mr. Hansen seconded the motion and it carried unanimously.

The Chair recessed the meeting at 12:00.

The Chair reconvened the meeting at 12:08.

  1. New Business
  1. Report of Subcommittee on Policies and Procedures Regarding Criteria, Policy, and Procedures for:
  2. The Bureau's Payment of Unassigned Vending Machine Commissions as Supplemental Income to Operators Pursuant NAC.426.225 (2)
  3. Recommended Revisions to Policy and Procedure 02-03, Unassigned Commissions for Loans; and Policy and Procedure 05-01, Unassigned Commissions for Subsidies; Proposed Schedule to Address Other Issues Assigned to the Subcommittee for Review and Possible Revision

Mr. Wilson moved to approve the revised polices and procedures. Mr. Hansen seconded the motion. Mr. Sapersten suggested that the procedure for subsidies should include the situation where a site is closed through no fault of the operator. There was general discussion of how the policy and procedures would be implemented and administered and whether subsidies were subject to set aside. Mr. Saperstein noted that the Loan and Subsidy Review Panel had been established in June 2004 but that if the new policies and procedures were approved, the composition of the panel would change. The Chair called for the vote. The motion carried unanimously. The Chair directed the Policies and Procedures Subcommittee to revise the subsidy policy and procedure to reflect the committee’s discussion of necessary revisions.

  1. Report of Subcommittee on Budget and Long-Range Planning Regarding Recommended Action on Possible New BEN Sites at:
  2. North Las Vegas Cheyenne Recreation Center

Mr. Hansen moved to waive this site for two years but to retain the right to operate vending machines in the interim. Mr. Petrofisky seconded the motion and it carried unanimously.

  1. Continued operation of the North Las Vegas Silver Mesa Pool Snack Bar

Kevin Jones reported that a new operator trainee had opened the Silver Mesa snack bar on May 23 and seemed to be doing very well. Mr. Wilson moved to continue the operation of site. Mr. Petrofisky seconded the motion and it carried unanimously.

  1. Washoe County Library at Spanish Springs, Sparks
  2. Washoe County Library at Incline Village, Lake Tahoe

Mr. Hansen moved to waive these sites for a period of two years. Mr. Wilson seconded the motion and it carried unanimously.

  1. S. NV Mental Health Psychiatric Hospital, Las Vegas

Mr. Hansen moved to waive this site for three years but to retain the right to operate vending machines in the interim. Mr. Petrofisky seconded the motion and it carried unanimously.

  1. Regional Safety Training Center, Reno

Mr. Saperstein summarized the information provided by the director of the Regional Public Safety Training Center on May 26 and stated that the additional knowledge of the situation at that location made it seem very desirable for BEN participation. Ms. Cole stated that the potential contractor, the center director and the Bureau had revised the food service plan and equipment list and that , by using a number of items currently in storage, the cost to BEN would be reduced to somewhere between $5000 and $7000. Mr. Hansen moved to accept this site. Mr. Petrofisky seconded the motion and it carried unanimously.

  1. Las Vegas Springs Preserve, Las Vegas Water District

Mr. Jones stated that the Las Vegas Water Authority had contacted the Bureau about a vending site at this location and that the Bureau had suggested a meeting to discuss the scope of the potential site. However, the Water Authority had not yet responded to the Bureau’s invitation. Mr. Wilson moved to table this item until more information was known. Mr. Hansen seconded the motion and it was carried unanimously.

  1. Discussion and Possible Direction to Staff Regarding the Development of Signage for BEN Sites Identifying the Legal Authority for the Site and Providing Information for the Public to Obtain Additional InformationRegarding Services for the Blind and Visually Impaired

Ms. Cole stated that the Bureau had been asked by host agencies if signage could be provided identifying the site as operated through BEN. Several operators stated that the host agencies where their sites were located had previously advised that such signage was prohibited. Mr. Wilson stated that advertising the fact that the operator was blind or visually impaired could increase theft. He also stated that one of the subcommittees should be consulted on this before action is taken. Ms. Colling noted that the NCBV had already approved the use of contract funds to hire a professional advertising firm to develop a cohesive marketing plan. Mr. Saperstein moved to table this item until staff could solicit bids for a logo and marketing plan and put the information on a future agenda. Mr. Wilson seconded the motion and it carried unanimously.

  1. Discussion and Possible Recommendation from NCBV into expanding vending program into Private Sector Business

Mr. Wilson stated that this had been looked at seriously several years ago but that nothing came of it. Ms. Sherman stated that at this time the Bureau did not have sufficient information to be able to respond. She noted that there were several legal issues that would have to be addressed. Mr. Hansen stated that the operators could pool their retirement and purchase a franchise and use the proceeds to augment retirement. He noted that some operators are not willing to join such a plan. Mr. Saperstein mentioned a very successful joint venture between the State of California and the operator of a sports bar in a public building. Ms. Sherman asked who would actually own the franchise and what liability would the State have in the venture. Mr. Saperstein stated that it could be the program and that the risks are the same as in any business. Mr. Hansen stated he has connections to the 7-11 franchise and could obtain information from that source. He also noted that a few years ago operators proposed to purchase a storage unit business which the vendors would have owned via a non-profit corporation but the opportunity was lost. Ms. Perring stated she felt BEN would be welcome in the private sector whereas the program faces an uphill battle in the public sector. Ms. Colling stated that there is some flexibility in the statutes to allow the program to expand but that the NCBV would need to narrow the scope. Mr. Saperstein requested staff to research this issue and present the additional information at a future meeting.

Mr. Petrofsky left the meeting at 1:05pm.

  1. Replacement of Gary DeFalco with Beth Perring as a member of Budget and Long-Range Planning Sub-Committee

Mr. Saperstein stated this item was amended at Mr. DeFalco’s request to retain him as a member of the subcommittee. Ms. Perring was appointed as an additional member.

  1. Discussion and Possible Direction to Staff Regarding Reimbursement of Travel Expenses for Operators Who Wish to Travel to NCBV Meetings in Order to Participate in Person

Mr. Saperstein stated he understood it was procedure for any operator to be reimbursed for travel to NCBV meetings. Ms. Cole stated that she had been unable to find a written policy that applied to operators who were not NCBV members and that the Bureau just needed direction as to what expenses would be reimbursed under what circumstances. Mr. Saperstein tabled this item until staff could provide some projected costs if only air fare and ground transportation were reimbursed, if all expenses were reimbursed, and if the expenses of a sighted guide were included.

  1. Public Comments

Mr. Wilson expressed his thanks to the NCBV for allowing him to participate via telephone.

  1. Set Next Meeting Date

Mr. Saperstein stated that the next meeting would be September 10, 2005 in Las Vegas unless a special meeting was required sooner.

  1. Adjournment

Mr. Wilson moved to adjourn the meeting. Mr. Hansen seconded the motion and it carried unanimously. The meeting was adjourned at 1:22 pm.