BEP Town Hall Meeting

BEP Town Hall Meeting Agenda November 19, 2015

I. Review of Policy

II. Review of Recently acquired Businesses

A.1. BEP Financial Report

III. Public Comment Completed Policies for Federal Submission: Submission II

Delaware Blind Entrepreneur Program

11/3/15

DRAFT - #4 (From 10/22/15 Meeting)

Table of Contents (Corrected per 10/22/15 Meeting)

Termination of Licenses pg. 2 - 3 Leave of Absence/Reinstatement pg. 4 Satelliting pg. 5 Annexation pg. 6 Dress Code Guidelines pg. 7 - 8 Invoices pg. 9 -11 Termination of Licenses

Termination of license of a vending facility vendor may occur when:

A. After a full evidentiary hearing, the Delaware Division for the Visually Impaired determines that the particular vending facility is not being operated in accordance with these rules and regulations or under the terms and conditions of the contract with the vendor or the permit with the federal, state, or other public or private agency.

B. There is improvement in the vendor’s vision to the extent that he no longer meets the definition of blindness in Section 395.1 (c) of the federal regulations issued under the Randolph-Sheppard Act, as amended.

C. There is extended illness with medically documented diagnosis of prolonged incapacity of the vendor to operate the vending facility consistent with the needs of the location or other available locations in the vending facility program. 10/8/15 Meeting: it was determined that his clause should be submitted to the AG’s Office to determine FMLA applicability, and what are the proper protocols for exhaustion of FMLA and disability benefits.

D. There is withdrawal of the vendor from the program upon the vendor’s written 90-days notification to the Delaware Division for the Visually Impaired.

E. The licensed vendor is found guilty of criminal offenses or acts in which case a meeting will commence with the Division Director, BEP Director, and the BVC. 10/22/15 Meeting: The meeting will commence to determine the nature/severity of the offence for review and written opinion which will be submitted to the Attorney General’s Office for final disposition.

F. In order to equitably determine ongoing compliance with visual requirements for licensed blind vendors as defined in Section 395.1 of the Federal Regulations issued under the Randolph-Sheppard Act; beginning in 2016 and every five (5) years thereafter; all licensed blind vendors must provide current ophthalmological or optometric evidence documenting their visual status. "Current" means evidence of an examination no more than six months old from the date of submission. Evidence is sufficient if it allows the state licensing agency to determine whether or not the licensed blind vendor meets the visual requirements contained in Section 395.1 of the Randolph-Sheppard Act. If the state licensing agency determines the licensed blind vendor meets the visual requirements and the medical or optometric documentation specifically states that the blindness is permanent, the licensed blind vendor is not subject to future examinations under this part. 10/22/15 Meeting: If the SLA has prior records establishing permanent blindness, then future eye examinations will not be required. Payment of all eye examinations will be rendered through Account #3.

At the point when a vendor is removed from a location for just cause (A through E above); his or her license is terminated, thus forfeiting the rights to remain on the active bidding list.

Rob Schmidlkofer Date Director, Blind Entrepreneur Program

Dan Madrid (or designee) Date Director, Division for the Visually Impaired

Blind Vendor Committee Representative Date

Secretary, Federal Department of Education or designee Date Leave of Absence/Reinstatement

10/8/15 Meeting: It was determined that the below clauses; A-E; should be submitted to the AG’s Office for opinion A. At the point when a Manager requests a leave of absence (LOA) under the Family Medical Leave Act (FMLA) or for other personal hardship reasons, leave-of-absence may be granted, at the discretion of the SLA. Under LOA status, the former vendor’s name remains on the list of qualified bidders for any facility vacancy and retains his or her right to bid on any open location. If the leave is documented under FMLA, the vendor’s status at the facility he or she was established at shall be held for the 12-week FMLA approved duration pending the vendor’s return.

B. Extension of leave-of-absence status may be granted by the SLA provided the former vendor requests such an extension in writing of the SLA prior to the expiration of his or her LOA status (12 months from the date he relinquishes his managerial responsibilities or most recent request for LOA extension).

C. The vendor will submit a written request for LOA at least 15 days in advance.

D. The vendor shall be re-evaluated every three-months (90-days) by the BEP Director in conjunction with the BVC to determine current and return-to-work status.

E. Upon return-to-work, the vendor shall be assessed through meeting with the BEP Director in conjunction with the BVC to determine if any additional or review-type training is warranted.

Secretary, Federal Department of Education or designee Date 10/22/15 Meeting: It was determined that Satelliting and Annexation should be split into two separate Part-A and Part-B Policies.

Part-A:

Satelliting/Annexation

10/22/15 Meeting: Should a site not be at the income level of $15,000.00, the site remains unassigned. An unassigned site may be considered to become a satellite operation by the SLA once the site exceeds $15,000.00 during the prior completed fiscal year. A satellite location is a temporary business operation until the site becomes annexed. a cash-flow analysis projection shall be completed by the BEP Director to determine whether the site should be operated as a satellite or an annex location from the start. Prior to becoming either a satellite or annex location, the site is overseen by the SLA. Once the site enters either an operational satellite or annex location, the site is then overseen by the blind vendor of said operation. The satellite location shall remain on the bid list until the sight is successfully bid on as a primary location.

A satellite location is classified as a location that becomes unassigned for any reason, a new site that opens and receives no bids, or a site that no one takes on as a primary site

Whereas, in the event the SLA determines that a location is eligible for satelliting, following no submitted bids for its permanency as a location, the following considerations will be included.

1. Profits from a satellite location are paid to the satelliting manager for the duration of the satellite status. Two consecutive net losses (two cycles/four months) on P&L’s shall result in a formal meeting with the BEP Director in conjunction with the BVC to discuss future options/directions for the satellite location and to establish a corrective action business plan for moving forward.

2. The satelliting manager shall be in the location a minimum of three times per week, and in the event of an emergency be able to get to the location within a timely manner.

3. A satellite location remains in “open bid” status during satelliting period with a minimum 30-day notice of full-time manager assignment; new manager assignment will be effective on the first day of the new P & L period.

4. All criteria in Rule 10* shall be adhered to concerning the choice of manager by the SLA.

*Stipulations excerpted from Rule 10 are as follows: TRANSFER AND PROMOTION OF BLIND VENDORS. When a management position is to be filled at a vending facility within the BEP Program, the Delaware Division for the Visually Impaired shall solicit applications from all vendors who are qualified. The Division may then fill this management position with the applicant of its choice. The Division will use information provided in semi-annual manager evaluations for guidance in making the most appropriate selection. Factors which the Division shall consider in choosing an applicant include, but may not be limited to: seniority, experience, managerial skills, administrative skills, training, education and suitability of the applicant to any special requirements of the vending facility. The Delaware Committee of Blind Vendors shall be consulted concerning the Division’s proposed decision. Part-B:

Annexation

10/22/15 Meeting: Because satelliting is a temporary business operation, the following annexation considerations shall be included once the satellite operation has demonstrated profitability the inability to support a lone operator (less than $35,000.00 per year) to merge the two locations into one site.

1. Following the successful satellite operation for a one-year period based upon gross sales, and the closing of the open bid period, the satellite operation shall be absorbed by either the full-time manager assignment, or by the new manager assignment.

2. Final annexation of any satellite site shall be approved by the BEP Director in conjunction with the BVC by majority vote.

Secretary, Federal Department of Education or designee Date

Subject: Dress Code Guidelines for BEP Vendors. 10/22/15 Meeting: Changes in blue below reflect comments from the 10/22 meeting.

I. PURPOSE

To establish consistent and clear defined guidelines regarding appropriate dress and appearance in the business.

II. SCOPE

This policy applies to all BEP Vendors and trainees and should be followed as applicable to the given work-day schedule and situation; i.e.; meetings, tours of the operation, etc.

III BACKGROUND

The BEP is committed to excellence in the delivery of our services to our customers. Our professionalism is reflected both in our appearance as well as our actual service performance to our customers. Although it may seem evident to most about what constitutes appropriate dress and appearance in the work place, some standards are necessary due to difference in interpretation.

IV. POLICY

Professional judgment, safety standards, and common sense should be exercised when choosing appropriate dress for your business. The below offers guidance for choosing the appropriate attire. Should a vendor and/or vendor employees fail to adhere to proper dress code standards, the individual(s) in question shall be issued a verbal warning in the form of an e-mail which shall not be placed in the individual’s employment file Should the issue continue, a written warning which shall be placed in the individual’s employment file shall be issued. Continual violation of standard dress code requirements shall result in additional written warnings; placed in the individual’s employment file; and may result in further disciplinary action, up to and including termination from the program. Additionally, written warnings shall become part of the employee’s formal bi-annual review sessions with the BEP Director and the BVC and shall remain a part of the review file for a statutory limitation period of three (3) years.

Clothing should be neat, clean and non-distracting; ex. Sheer or translucent is unacceptable.

Cultural dress is permitted as long as it meets the other standards.

Clothing with offensive or obscene printed words or pictures is considered in appropriate and unacceptable.

Shoes: Should be closed-toe and business functional for both professional and safety rationalization. Examples of what is not permitted are: Flip Flops, Beach Thongs, and Sandals. Pants/Slacks: Should be business functional. Examples of what is not permitted are: Tight, Sheer or seductive clothing, Bermuda dress shorts, and denim jeans.

Skirts/dresses: Should be business functional. Examples of what is not permitted are: Tight, Sheer or seductive clothing, and shall not be more than 2 inches above the knee.

Shirts/Blouses: Should be business functional. For shirts, the official BEP logo will be placed on the opposite side of the pocket, if there is no pocket the logo will be placed on the left hand side of the shirt. Name placement is optional. The Shirts/Blouses will be the same style and color for all BEP Vendors, The BVC of blind vendors will advise the SLA of the style and color. Blouses should be business functional. And the official BEP logo will be placed on the opposite side of the pocket, if there is no pocket the logo will be places on the left hand side of the shirt. Name placement is optional.

Jackets: Should be business functional. Each Staff shall maintain two jackets, light weight for summer season, and a heavier weight for winter season. The jackets will be the same style and color for all BEP Vendors, The BVC of blind vendors will advise the SLA of the style and color. The official BEP logo will be placed on the left hand side of the jacket. Name placement is optional.

All cost associated with this policy directive can be charged against the business.

This policy shall be effective immediately upon signatures.

Secretary, Federal Department of Education or designee Date

BEP Policy (TBD) Invoices 10/22/15 Meeting: Changes in blue below reflect comments from the 10/22 meeting. It was determined that the policy should be for all purchases; therefore; references specific to catering have been removed.

Subject: BEP Catering/Invoices Recommended Business Guidelines

I. PURPOSE

To provide a standardized invoice system for all BEP catering/charge services.

II. SCOPE

This policy shall apply to all unassigned locations of the BEP.

III. POLICY

When a location receives a request for catering/charge service provided by the BEP, the Vendor or designee in charge will complete all information on the BEP catering request form.

The vendor or the designee will mail or fax the catering form to the requestor for review. The requestor will sign under the authorized signature confirming approval and funding of the service listed on the BEP catering request form.

The BEP fiscal Office follows the standard GAAP principles pertaining to BEP staff making purchase requests which incorporates the approval of the BEP Director, the Division Director (if applicable), and the BEP Fiscal Office. Because prior approval is required, it is important for the vendor to wait for the signed approval prior to making any catering purchases.

On the day of service, the vendor or designee will hand deliver the invoice/ bill for the amount recorded on the BEP catering request form.

There will be no paper or food products returned to the location for re-use. (No credits are authorized).

In preparing the invoice/ bill the following information will be recorded:

Bill To: The authorized signature on the BEP catering request form, including the billing address.

Date: Date of billing

Invoice number: The invoice number will be a 9 digit system, starting with the initial of the location; i.e., Conective Indian River will be recorded as CIR000001. The next invoice number will be CIR000002. Date: Date of service

Description: Purpose of catering/charge request

Total amount due: As recorded on the BEP catering request form

Each location shall maintain a tracking sheet to record the following information for each catering/charge request:

Bill to information Date of service Invoice number Total amount due Date billed Date paid

The actual invoice must be used for P & L statements and recording of transactions on all documentation, not projected revenues.

All locations that process their payments to vendors through the main office will approve all payments according to the below outline.

All invoices/statements are date sensitive, and therefore, must be reported according to the date of the invoice/statement and in compliance with the same profit and loss period.

All invoices/statements must be stamped with the location stamp, or the Operator or person in charge managing the day-to-day operation shall sign the invoices/statements. See (Exhibit B) for a list of Operators and/or person in charge of day-to-day operations for all BEP locations. For a copy of the official location stamp for each location see (Exhibit A).

The BEP field staff will ensure that all invoices/statement dates are in compliance with the current profit and loss statement.

The BEP field staff will ensure all invoices/statements are stamped with the location stamp or signed by the authorized person in charge.

The BEP fiscal office will only make payments to vendors whose invoices/statements are turned in with the weekly turn ins and are stamped with the location stamp or signed by the authorized person responsible for the day-to- day management of the location.

In the event a location has not listed an invoice according to the statement received by the main office, the BEP fiscal office will forward such invoice back to the BEP field staff for processing.

The BEP field staff will notify the location of the invoice in question and advise them of fiscal findings. The location will be notified that the invoice in question will be added to their profit and loss statement issued by the BEP fiscal office. A copy of the invoice will be sent to the location and footnoted with the following information:

Who was notified that the invoice was being added to the current profit and loss statement.

Date person was notified the invoice was being added to the current profit and loss statement.

The BEP field staff will notify the location to revise their on-site profit and loss statement.

The BEP field staff will prepare an adjusted turn-in with the new invoice information.

A copy of the BEP completed catering form will be submitted with the weekly paperwork for the SLA to record same information on the weekly mini profit and loss statement.

A copy of the invoice will be submitted with the weekly paperwork upon receipt of payment along with a copy of the check.

This policy shall be effective immediately upon signature.

Secretary, Federal Department of Education or designee Date Business Other Site Net Profit Location Date Gross sales costs Allowances or Loss 01 Oct-30 $ $ $ * 09 Nov 14 39,584.85 (26,444.26) 13,140.59 01 DEC 14- $ $ $ * 09 31 JAN 15 17,510.85 (13,979.77) 3,531.08 01 FEB-31 $ $ $ 9 MAR 15 41,073.95 (29,385.81) 11,688.14 01 APR-31 $ $ $ 9 MAY 15 82,438.51 (76,153.79) 6,284.72 01 JUNE-31 $ $ $ 9 JULY 15 27,717.35 (20,943.19) 6,774.16 01 AUG-30 $ $ $ 9 SEP 15 18,739.45 (16,769.73) 1,969.72 $ $(183,676.55 $ Total 09 227,064.96 ) 43,388.41

Total 99-5 $ - $ - $ -

Total $ $(144,139.52 $ combined 227,064.96 ) 43,388.41 Business Other Site Net Profit Location Date Gross sales costs Allowances or Loss 01 Oct-30 $ $ $ * 99-1 Nov 14 17,677.40 (14,017.53) 3,659.87 01 DEC 14- $ $ $ * 99-1 31 JAN 15 14,098.20 (10,506.76) 3,591.44 01 FEB-31 $ $ $ 99-1 MAR 15 15,177.40 (11,611.58) 3,565.82 01 APR-31 $ $ $ 99-1 MAY 15 17,729.40 (13,995.58) 3,733.82 01 JUNE-31 $ $ $ 99-1 JULY 15 16,519.10 (12,842.85) 3,676.25 01 AUG-30 $ $ $ 99-1 SEP 15 22,394.95 (15,481.62) 6,913.33 $ $ $ Total 99-1 103,596.45 (78,455.92) 25,140.53 01 Oct-30 $ $ $ * 99-5 Nov 14 31,886.66 (28,607.16) 3,279.50 01 DEC 14- $ $ $ * 99-5 31 JAN 15 39,884.63 (35,755.63) 4,129.00 01 FEB-31 $ $ $ 99-5 MAR 15 24,849.79 (22,985.89) 1,863.90 01 APR-31 $ $ $ 99-5 MAY 15 32,505.60 (29,739.74) 2,765.86 01 JUNE-31 $ $ $ 99-5 JULY 15 19,661.00 (18,154.45) 1,506.55 01 AUG-30 $ $ $ 99-5 SEP 15 21,526.10 (19,374.44) 2,151.66 $ $(154,617.31 $ Total 99-5 170,313.78 ) 15,696.47

Total $ $(233,073.23 $ combined 273,910.23 ) 40,837.00 Business Other Site Net Profit Location Date Gross sales costs Allowances or Loss 01 Oct-30 $ $ $ * 99-3 Nov 14 11,951.30 (8,078.61) 3,872.69 01 DEC 14- $ $ $ * 99-3 31 JAN 15 9,411.15 (5,437.06) 3,974.09 01 FEB-31 $ $ $ 99-3 MAR 15 9,923.30 (6,344.43) 3,578.87 01 APR-31 $ $ $ 99-3 MAY 15 13,256.75 (9,840.36) 3,416.39 01 JUNE-31 $ $ $ 99-3 JULY 15 10,910.95 (7,340.01) 3,570.94 01 AUG-30 $ $ $ 99-3 SEP 15 12,390.71 (8,580.59) 3,810.12 $ $ $ Total 99-3 67,844.16 (45,621.06) 22,223.10 * Carvel 01 Oct-30 $ $ $ Building Nov 14 54,001.40 (47,677.59) 6,323.81 * Carvel 01 DEC 14- $ $ $ Building 31 JAN 15 39,884.63 (35,755.63) 4,129.00 01 FEB-31 $ $ $ Carvel Building MAR 15 48,783.44 (43,973.83) 4,809.61 01 APR-31 $ $ $ Carvel Building MAY 15 36,299.58 (32,633.42) 3,666.16 01 JUNE-31 $ $ $ Carvel Building JULY 15 33,792.43 (31,021.56) 2,770.87 01 AUG-30 $ $ $ Carvel Building SEP 15 49,345.16 (45,442.69) 3,902.47 $ $(236,504.72 $ Total Carvel 262,106.64 ) 25,601.92

Total $ $(282,125.78 $ combined 329,950.80 ) 47,825.02 Business Other Site Net Profit Location Date Gross sales costs Allowances or Loss 01 Oct-30 $ $ $ * 99-2 Nov 14 29,377.70 (24,428.53) 4,949.17 01 DEC 14- $ $ $ * 99-2 31 JAN 15 23,889.60 (21,934.89) 1,954.71 01 FEB-31 $ $ $ 99-2 MAR 15 23,789.65 (19,865.99) 3,923.66 01 APR-31 $ $ $ 99-2 MAY 15 30,588.35 (25,836.49) 4,751.86 01 JUNE-31 $ $ $ 99-2 JULY 15 29,101.80 (23,898.27) 5,203.53 01 AUG-30 $ $ $ 99-2 SEP 15 32,855.70 (28,175.35) 4,680.35 $ $(144,139.52 $ Total 99-2 169,602.80 ) 25,463.28

Total 99-5 $ - $ - $ -

Total $ $(144,139.52 $ combined 169,602.80 ) 25,463.28 Business Other Site Net Profit Location Date Gross sales costs Allowances or Loss 01 Oct-30 $ $ $ * 99-4 Nov 14 21,191.85 (16,581.88) 4,609.97 01 DEC 14- $ $ $ * 99-4 31 JAN 15 15,881.00 (12,163.23) 3,717.77 01 FEB-31 $ $ $ 99-4 MAR 15 16,529.45 (12,529.02) 4,000.43 01 APR-31 $ $ $ 99-4 MAY 15 19,778.25 (15,495.74) 4,282.51 01 JUNE-31 $ $ $ 99-4 JULY 15 17,087.20 (13,486.18) 3,601.02 01 AUG-30 $ $ $ 99-4 SEP 15 25,310.86 (15,175.47) 10,135.39 $ $ $ Total 99-4 115,778.61 (85,431.52) 30,347.09

Total 99-5 $ - $ - $ -

Total $ $(144,139.52 $ combined 115,778.61 ) 30,347.09 Business Other Site Net Profit Location Date Gross sales costs Allowances or Loss 01 Oct-30 $ $ $ * 02 Nov 14 75,195.35 (69,590.11) 5,605.24 01 DEC 14- $ $ $ * 02 31 JAN 15 68,752.14 (64,812.65) 3,939.49 01 FEB-31 $ $ $ 2 MAR 15 67,071.99 (62,846.03) 4,225.96 01 APR-31 $ $ $ 2 MAY 15 82,438.51 (76,153.79) 6,284.72 01 JUNE-31 $ $ $ 2 JULY 15 74,359.74 (69,385.20) 4,974.54 01 AUG-30 $ $ $ 2 SEP 15 63,593.11 (59,667.84) 3,925.27 $ $(402,455.62 $ Total 02 431,410.84 ) 28,955.22

Total 99-5 $ - $ - $ -

Total $ $(144,139.52 $ combined 431,410.84 ) 28,955.22