Welcome & Introductions s1

MEETING MINUTES April 6, 2016 2:00 – 3:00 pm

Welcome & Introductions: IN ATTENDANCE: Chair Cheryl Gonzalez (University of North Florida), Vice Chair Jay Narang (GDKN Corporation), Malik Ali, Michelle Andrewin (Palm Beach School District), Eduardo Gonzalez (Uber Operations), Sherod Halliburton (Manatee County Federal Credit Union), Johnny Helms (Lumbee Resource Management Group), Mariana Lugaro (United Data Technologies), Barbara Rhodes Melvin (First Florida Integrity Bank), Christine McMillon (ENSYNC Diversified Management Services), Paul Roldan (Allgen Financial Services), Ray Spaulding (FAMU Veterans Affairs), Deborah K. Thompson (Deborah K. Thompson Consultants).

From OSD: Hue Reynolds (Executive Director), Carmen M. Claudio (Admin. Assistant), and Courtney Williams (Stakeholder Relations Coordinator). The minutes were recorded by Carmen Claudio.

NOT IN ATTENDANCE: Julius Davis (Volt Air Consulting /Enterprise Florida, Inc.), Rhett Frisbie (Florida Bar), Augusto Sanabria (Hispanic Business Initiative Fund), Brian A. Williams (School Board Miami Dade), Christine Yerkes (President/CEO, Yerkes South, Inc).

Special guests:

Secretary Chad Poppell, Department of Management Services Carolyn Johnson, Florida Chamber of Commerce

The meeting was called to order at 2:04 p.m.

Agenda Modification/Adoption: Chair Gonzalez asked that the agenda be modified to have Secretary Poppell speak first, and asked that speaker Carolyn Johnson with the Florida Chamber of Commerce move up from the section for old business toward the beginning, after the Secretary’s remarks. Vice Chair Jay Narang made the motion to adopt the agenda as modified, with a second by Barbara Melvin. The meeting agenda was adopted with noted changes.

Minutes of March 2, 2016 Meeting: Vice Chair Narang made the motion to accept the meeting minutes of the March 2 meeting, with a second by Barbara Melvin. The meeting minutes were adopted without any changes.

Florida Department of Management Services: Secretary Chad Poppell started by thanking all of the committee members for their work. He stated that what members have been doing is extremely valuable to the Department. He also welcomed the newly appointed members of the Council. He described what has been going on for the past year, particularly as it relates to the Office of Supplier Diversity. He has worked to realign OSD within the agency,

Florida Advisory Council on Small and Minority Business Development including bringing in new skill sets to refocus on the mission. He stated that bringing on Executive Director Hue Reynolds has been the biggest success we have had, and he witnessed the momentum shift during the most recent Jacksonville Supplier Diversity Exchange. He is looking to develop more resources within the agency to help OSD.

He stated that OSD is focused on two key metrics: first, to increase certified businesses in the state, and second, to increase number of solicitations that these certified business participate in for state procurement opportunities. These two activities will help keep the cost down, and will put more money into the small business community. This ultimately helps the state of Florida. He stated that he takes the advice and recommendations of the Council very seriously, and the work being done by the Council is helpful, important, and meaningful.

Vice Chair Narang first thanked the Secretary for joining on the call and for his recent appointments so that the Council is nearly full. He asked the Secretary to share his vision and goals for the Council, including the deliverables for DMS by the end of the year.

The Secretary stated that the Council represents small businesses around the state and serves as the conduit for the small business community. He is interested in hearing the advice on how to make the state purchasing process better, meaningful and open. He shared that it is important that the Council continues its relationships and staying plugged in with DEO, EFI, other economic development agencies, and the small business community. He looks forward to seeing the Council’s annual reports with the recommendations on how to improve what we do and likes the current format. He shared that his vision for the state purchasing team is to have robust competition, with a larger representation of small businesses. He shared that Governor Scott is focused on jobs, and jobs come from small businesses.

After Secretary Poppell’s comments, Vice Chair Narang had an additional question on how each agency handles its own procurement activities, and how much leverage small businesses have in this process? The Secretary shared that while we have state term contracts, DMS controls those, and any opportunity to improve upon that process will be beneficial. In addition, based on each agency’s submitted business participation plans, OSD can help to renew the push and drive awareness and competition.

Malik Ali asked how the spending can be increased for minority-owned businesses. Chair Gonzalez suggested that Malik work within the State Agency Vendor Diversity Committee on recommendations and strategies that will improve upon this effort due to the length of time to discuss the topic. Rhett Frisbie chairs this particular committee and he continues to look for members to join.

Carolyn Johnson, Florida Chamber of Commerce Vice Chair Narang introduced Carolyn Johnson, Director of Business, Economic Development & Innovation Policy with the Florida Chamber of Commerce. He also shared that today is Carolyn’s birthday.

Carolyn provided an overview of key bills during this past session and highlighted specific activities regarding the state’s budget that would impact small businesses. Of note:

Florida Advisory Council on Small and Minority Business Development a. $12 million for workforce training through CareerSource for workforce quality b. Recurring funding for small business export grants c. $400 million in tax cuts, including the back to school tax holiday and the small business equipment tax

Some bills that Carolyn highlighted that did not pass include: a. E-Fairness for online businesses competing with brick and mortar stores b. Employer mandates c. Minimum wage bill d. Workers’ comp e. State contracting, including certain percentage of set-asides for small businesses and state agencies avoiding bundling f. “Glitch” bill for Microfinance Act

Chair Gonzalez brought up the opportunity to work on the “Glitch” bill for the Microfinance Act to which Carolyn stated that the Chamber supports improving current law. To Malik’s question, she also shared that efforts such as set-asides and preferences can only be provided if a disparity study is conducted and it shows a history of discrimination (related to the state contracting bill).

Vice Chair Narang posed the following question to Carolyn: Can you please elaborate on the elimination of the rental income tax? Carolyn explained that the business community worked hard to reduce the sales tax on commercial leases, or what’s referred to as business rent tax. All businesses are subject to this tax regardless of whether they own the property themselves or lease it out from someone else. There is currently no definition of what’s considered or included in “rent.” Currently, Florida is the only state that charges this type of tax. The Chamber was seeking a one percent reduction in this tax, which would equate to $290 million. This measure did not pass.

Chair Gonzalez closed with comments to members regarding memberships in the Chamber or other similar groups. The Chamber works in conjunction with the Council and on behalf of the Council, looks forward to continued collaboration.

Council Chair/Vice Chair Updates: Chair Gonzalez shared that she attended the Supplier Diversity Exchange hosted by the University of North Florida and the Office of Supplier Diversity. She was appreciative of the efforts that showed a very diverse group of businesses, and wants to continue hosting the event each year. She’d like to see the event grow, with more collaboration with Beaver Street Enterprises and the First Coast Business Alliance as potential sponsors. She was excited to have the Secretary also attend this event, which was a first by any DMS Secretary.

Chair Gonzalez also discussed the upcoming face-to-face meeting in May. Each member should receive the list of committees available, the by-laws and procedures. The anticipated agenda will start with lunch, around noon time, and will conclude at approximately 4:30 or 5:00 pm.

Florida Advisory Council on Small and Minority Business Development The second day includes a tour of the Port of Tampa and the SBDC event, with a lunch. Each Council member interested in participating in the second day will need to send their preferences via survey to Hue Reynolds.

Other highlights from the Chair: a. Enterprise Florida meeting is in May. Bill Johnson will be present but has resigned. An interim was appointed. b. The G6 group will be meeting April 28-29 in Fort Lauderdale.

Vice Chair Narang welcomed the new members and encouraged each to participate in the Council meetings as well as any of the Committees. He suggested that each member better understand the Council’s role and be able to share the activities that the Council is participating in.

Committee Reports a. State Agency Vendor Diversity Committee, Rhett Frisbie, Chair – none b. Research and Emerging Trends Committee, Barbara Melvin, Chair – Barbara shared that last month the Committee met and will have regularly scheduled meetings from here on out. The Committee discussed the Micro Finance Act and Chapter 287. c. Executive Committee, Cheryl Gonzalez, Chair – Will be discussing the upcoming May 4th meeting.

Old Business: A. Next Face to Face Council Meeting Agenda – Hue stated that the Executive Committee will be discussing this item during its April meeting. B. Council Appointments – New members were appointed as of March 30. The Council now has 18 members on board. Additional recommendations to serve on the remaining spot on the Council would be appreciated.

New Business: Annual Report Outline for 2016 – this item was tabled for the next meeting, due to time.

Comments from New Council Members:

Johnny Helms is interested in helping small businesses apply for procurement opportunities, and shared that there are not a lot of resources on what to do. Chair Gonzalez suggested that there are two Council committees that may be of interest to him and invited him to consider serving on them: Communications and the State Agency Vendor Diversity. Currently, there is no chair for the Communications Committee.

Michelle Andrewin expressed her gratitude to serve on the Council and looks forward to being an active member to determine where she can participate.

Eddie Loumiet stated that he looks forward to meeting everyone at the next meeting.

Florida Advisory Council on Small and Minority Business Development Public Commentary: None

Next Scheduled Council Meeting: Wednesday, May 4, 2016

Adjournment: Meeting adjourned at 2:59 pm

Florida Advisory Council on Small and Minority Business Development