* * * * * AGENDA * * * * * ELECTIONS * * New Chairperson will now facilitate the meeting.* * REVIEW and APPROVAL OF MINUTES (Handout A) Chair
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1 DIVISION OF HOTELS AND RESTAURANTS ADVISORY COUNCIL MEETING Thursday, January 25, :00 a.m. 12:00 p.m. Department of Business and Professional Regulation Capital Commerce Center Secretary s Conference Room 2601 Blair Stone Road, Tallahassee, FL Conference Call #: 1(888) , Conference Code: # MEMBERS: Gregg Nicklaus, Sirata Beach Resort; George E. Glover, BayStar Hotel Group; Christina Johnson, Council Vice Chair, On 3 Public Relations; Scott Justice, Walt Disney World; Rebecca Kelly, Council Chair, Street Chefs; Trey Goldman, Florida Association of Realtors; Dr. Donald Farr, Dedman School of Hospitality, Florida State University; Josh Gold, Florida Apartment Association; Carol B. Dover, Florida Restaurant & Lodging Association; Denis Hanks, Florida Vacation Rental Managers Association. * * * * * AGENDA * * * * * I. CALL TO ORDER A. Opening Remarks Rebecca Kelly, Council Chair B. Roll Call Suzanne Keele, DBPR C. Introduction of Guests Rebecca Kelly, Council Chair II. III. IV. ELECTIONS * * New Chairperson will now facilitate the meeting.* * REVIEW and APPROVAL OF MINUTES (Handout A) Chair DIVISION UPDATE A. Financial Report (Handout B) Larry Hurley, Chief of Finance & Accounting B. Division Report Rick Akin, Director C Florida Food Service Employee Training Program Steven von Bodungen, Deputy Director D. Rules and Legislative Update Cindy Ross, DBPR (Handout C) V. INDUSTRY UPDATE A. Florida Apartment Association B. Florida Association of Realtors C. Florida Restaurant & Lodging Association D. Florida Vacation Rental Managers Association VI. VII. VIII. OLD BUSINESS A. NEW BUSINESS Other issues open discussion Schedule next meeting/conference call ADJOURN
2 MINUTES Handout A Florida Department of Business and Professional Regulation 2601 Blairstone Road Tallahassee, FL CALL TO ORDER The meeting was called to order by Scott Justice, Chair, at 9:05 a.m. ROLL CALL The roll was taken by Ms. Suzanne Keele, H&R staff, with the following members present: Gregg Nicklaus George Glover Dr. Donald Farr Rebecca Kelly Josh Gold Paul Hayes Scott Justice Christina Johnson Geoff Luebkemann (in attendance for Carol Dover) OTHER ATTENDEES: Rick Akin, Division Director Cindy Ross, Division Rules Coordinator Cathy Tucker, Chief, BSSI Michelle Haynes, Deputy Chief, BSSI Chris Carson, Chief, Field Services Suzanne Keele, Division HR Liaison C.J. Dewrell, OGC Larry Hurley, Finance and Accounting Chairman Scott Justice called the meeting to order at 9:05 A.M. Chairman Justice introduced and welcomed the newest Advisory Council member, Dr. Donald Farr, director of the Florida State University Dedman School of Hospitality. ELECTIONS Chairman Justice opened the floor for chair and co-chair nominations to the council. Motion: Motion: Second: Geoff Luebkemann nominated Rebecca Kelly as chair. Geoff Luebkemann nominated Christina Johnson as vice-chair. Scott Justice seconded the motion and the motion passed unanimously. Ms. Kelly retained the floor as chair and proceeded with the agenda. APPROVAL OF MINUTES Chairman Kelly opened the floor for review and approval of the January 25, 2016, meeting minutes. Mr. Luebkemann indicated there was one error that needed to be corrected on the minutes. The correction was noted and a motion was made to accept the minutes as amended. Motion: Second: Scott Justice made a motion for the minutes to be approved with correction. Christina Johnson seconded the motion and the motion passed unanimously. DIVISION UPDATE Larry Hurley Finance and Accounting Mr. Hurley reviewed the operating account handout submitted to council members prior to the meeting. A breakdown of revenue was included for the last six fiscal years beginning 2011 and ending June 30, Mr. Page 1 of 4
3 Hurley noted revenue expenditures are running about the same from year to year and revenue changed very little. Expenditures were on target with little reduction and appropriations are slightly different from year to year depending on the Legislature and actual spending for that year. A transfer to Visit Florida for F/Y2016 was $2 million dollars. The fund balance for the year was almost $16 million dollars. Rick Akin, Division Director Last legislative session, the division was appropriated funds to purchase 12 new state vehicles. This will bring our fleet to 175. In addition, the division has been appropriated funds to replace state vehicles over 150,000 miles. The division was appropriated funds to replace the ipad 2 inventory that originally rolled out in 2012 and the ipad Pros were rolled out statewide in November and December Director Akin noted the division has three initiatives for this fiscal year: The bureau of elevator safety is working with the division of information technology to test an inspection app much like the one used in the food and lodging inspection program. The division anticipates rolling out ipads this calendar year to conduct elevator inspections. In August 2016, Governor Scott directed the division to conduct Zika educational outreach in Miami-Dade county. The mission of Zika education was to provide information on preventative measures to all restaurant and transient lodging operators in Miami-Dade County. The division is preparing a statewide educational outreach for Zika this spring. In July 2016, the division implemented its Truth in Menu campaign. Division inspectors review menus, menu boards, and flyers within the restaurant related to menu items listing specific farms, suppliers and brands for follow up and verification of invoices and food products stored in the restaurant. Observed violations result in 30 day warning. An industry bulletin for emerging issues and trends of Truth in Menu was posted online for operators in July Inspections Director Akin reviewed the inspections completed to date for both food and lodging establishments in the state. For the second year in a row, the division is lagging in completion of statutorily required inspections despite all the efficiencies put into place over the past several years. The division continues to see a rise in the turnover rate and again this year, submitted an updated legislative budget request regarding the inspector retention program for consideration this legislative session. Over the past seven fiscal years, the division has documented a 186 percent replacement rate of the 141 total authorized FTE (Sanitation Safety Specialist) for food and lodging inspectors. Despite operational improvements that increased efficiency, the division is now experiencing a reduction in inspection productivity and diminishing public health outcomes due to the high new hire rate. This new hire rate is negatively impacting the division s ability to provide the industry with a high quality inspection program. Ongoing inspector new hire rates will continue to have an adverse effect on the division s ability to protect the public health of Florida s citizens and guests. To complete the statutorily required food and lodging inspections, the Division needs to retain existing staff and reinvest part of the annual training expense incurred for training. Newly hired Inspector training is highly sciencebased, including courses on microbiology, epidemiology, and the FDA Food Code. Whereas continuing education previously focused on basic knowledge of laws and rules, today s continuing education must include the risk-based education essential to retaining the FDA standardization. Higher pay was cited as the reason for leaving by 43 percent of Sanitation Safety Specialists who left division employment and 21% accepted positions in other state agency inspection programs with less responsibility and higher pay. The division is recommending the implementation of a performance-based incentive plan through a series of pay increases available upon achieving professional milestones and key performance indicators. This plan includes all positions within the inspector career path and provides a salary increase upon completion of specified milestones; at the one year, four year, and seven year anniversaries. In order to receive the associated pay increase, each Page 2 of 4
4 inspector must achieve the required benchmarks. The requested additional salary appropriation would require an initial allocation of $1.8 million to implement the first round of years of service and certification incentive salary adjustments. This initial outlay would encompass the largest investment of salary dollars and would be recurring each year thereafter. Requested salary appropriations for the second year would require an additional $393,000 and the third year would require another $324,000, with each year s appropriation becoming annually recurring. The Division estimates that by the third year, compounded appropriations totaling $2.5 million would be sufficient to cover all future recurring costs associated with the performance-based incentive plan. The Division s trust fund contains sufficient revenue to pay for this proposal and cover future annual appropriations. This plan is expected to increase retention, knowledge-base, inspection productivity, and efficiencies, while incurring a 15.1 percent increase in salary dollars. Achieving and maintaining a lower new hire rate will increase inspection productivity by 6 percent, adding approximately 9,600 inspections annually. Completing more inspections would not only reverse the year-over-year reduction in productivity and help the division achieve the statutorily-mandated number of inspections, but also better protect the public health and safety while responding to continuing industry growth. It will also allow the division to reinvest expenditures toward protecting the public s health and safety and develop a strong, experienced workforce rather than paying for a revolving door of hiring and training new inspectors. A performance-based incentive plan to increase inspector retention will address the number one reason inspectors cite for leaving Division employment. Additionally, increased inspector retention would heighten the level of experience and institutional knowledge, while achieving the statutory mandate of quality inspections. George Glover noted that it is not a good thing to lose employees to other state agencies as soon as you have invested in that employee and their training. Scott Justice called for a motion in support of the division s retention proposal. Motion: Scott Justice made a motion for the advisory council to support the 2016/2017 employee incentive retention plan. Second: Christine Johnson seconded the motion and the motion passed unanimously. Cathy Tucker, Chief, Bureau of Sanitation and Safety Inspections The department engages a contract for the purpose of providing training to students to be recruited, trained, and employed for a career in the hospitality industry. Beginning July 1, 2016 the contact was awarded to the Florida Restaurant and Lodging Association Educational Foundation and will continue through June The division would like to thank council members Rebecca Kelly and Scott Justice for review of the applicants received. Mr. Luebkemann noted the FRLA Educational Foundation is a separate 501C3 from the association itself, with its own board of directors and trustees and operates separately financially. Cindy Ross, Legislative Liaison Ms. Ross reported the division had a productive year with rule adoption, accomplishing everything on the division s regulatory plan in addition to some minor but helpful amendments. All of the amendments the division was working on last year at this time have been completed. Currently there are two rule amendments in progress: 61C Disciplinary Guidelines was filed for adoption last week and becomes effective 2/9; this was just a clarification of terms. Also, 61C License Fees is in step 1, the Notice of Development will be published in the Florida Administrative Review January 26th. This proposed amendment will remove the plan review fee. INDUSTRY UPDATE Josh Gold Florida Apartment Association Mr. Gold reported that the FAA completed another successful year in the multi-family industry within the state completed its year very strong. The occupancy rate within apartment communities is reaching the 97-98% level and new construction and new building is growing at a high rate as well. For the upcoming legislative session the Page 3 of 4
5 association has outlined a platform that includes support of the on-going funding of the Sadowski Affordable Housing Trust as well as opposition to SB 268 which would remove the requirement for investigations of housing discrimination civil suits and move any complaints directly to civil court. Trey Goldman - Florida Association of Realtors No report. Geoff Luebkemann Florida Restaurant and Lodging Association Mr. Luebkemann reported FRLA had a great year in 2016 as did hospitality and tourism in Florida as reflected across the board from attractions to restaurants to lodging of all types. The legislative item of most interest this year for FRLA is Visit Florida funding. Visit Florida is turbulent right now but the association is thrilled that Mr. Ken Lawson has taken the helm. He brings with him enthusiasm, transparency, and a partnership type of mentality they think will go a long way with solving some of the concerns the legislature has expressed concerns with. FRLA continues to fully support the funding the program has seen over the past few years. The return on investment with Visit Florida definitely benefits the entire state, not just the industry. Paul Hayes Florida Vacation Rental Managers Association Mr. Hayes reported it has been a good year for the association; they have launched five chapters around the state. They are getting a lot more self-managed properties which have helped with the education process around the state with the vacation rental industry. Legislative focus this year, there is a lot of egregious activity against the industry, i.e. excessive fines, so the association is looking for avenues to close some of the loop holes so the managers can continue to function. OLD BUSINESS None. NEW BUSINESS Mr. George Glover commented that he saw where the department s social media is in high gear and more visible than before and he asked if the division had considered that as a tool for recruitment. Mr. Akin indicated that human resources had focused on veteran s outreach in the media so far but that the division had not reached out for this type of visibility as yet. NEXT MEETING Director Akin indicated that the council will continue to be apprised with s throughout the year and suggested polling the council after the legislative session to see if there would be a need to meet prior to the statutorily required meeting in January ADJOURNMENT Having no other business, the meeting was adjourned at 9:45 a.m. Page 4 of 4
6 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION HOTELS AND RESTAURANTS OPERATING ACCOUNT ACTUAL REVENUES AND EXPENSES AND CHANGES IN ACCOUNT BALANCE FISCAL YEARS ENDING JUNE 30, 2013 THROUGH JUNE 30, 2017 Handout B JUNE 30 JUNE 30 JUNE 30 JUNE 30 JUNE REVENUE Fees and Charges $ 7,667,628 $ 8,053,615 $ 8,353,026 $ 7,819,618 $ 8,239,220 Licenses 19,940,954 20,393,182 21,048,322 21,465,198 22,240,299 Fines 935,322 1,489,616 1,612,949 1,362,524 1,509,292 Investment Earnings 107,438 81, , , ,507 Refunds 39, ,616 18,415 48,068 8,666 Transfers In (AB&T Catering Licenses) 402, , , , ,779 Miscellaneous Revenues 536, , , , ,590 Total Revenue 29,629,186 31,009,587 32,184,832 32,141,535 33,506,353 EXPENSE Division Office Division Administrative Office 18,614,885 19,991,382 20,069,988 20,112,379 19,963,209 Service Charge to General Revenue 2,279,643 2,391,432 2,499,903 2,499,903 2,585,218 Refunds 1,069, , , , ,752 Service Operations - Central Intake 193, , , , ,133 Call Center 687, , , , ,460 Bank Charges 88,433 94,093 98, , ,950 Department Administrative Costs - Administration 1,445,369 1,469,087 1,675,400 1,487,029 1,262,142 Information Technology 1,876,728 1,745,058 1,746,498 1,715,063 2,068,739 General Counsel/Legal 267, , , , ,807 Total Expense 26,523,494 27,244,869 27,957,611 27,902,133 28,207,410 Excess (Deficiency) of Revenues Over (Under) Expenses 3,105,692 3,764,718 4,227,221 4,239,402 5,298,943 TRANSFERS Transfer Excess Cash To General Revenue 5,000,000 1,000,000 Transfer to Visit Florida 2,000, , ,000 2,000,000 2,500,000 Total Transfers 7,000, , ,000 2,000,000 3,500,000 CHANGE IN ACCOUNT BALANCE (3,894,308) 3,264,718 3,727,221 2,239,402 1,798,943 ACCOUNT BALANCE, Beginning of Period 10,635,948 6,741,641 10,006,359 13,733,580 15,972,981 ACCOUNT BALANCE, End of Period $ 6,741,641 $ 10,006,359 $ 13,733,580 $ 15,972,981 $ 17,771,924 Actual
7 Updated: 12/19/2017 Food and Lodging Rule Adoption Status Handout C 1 Adopted Within Previous Twelve Months Rule Summary of Changes Date Effective 61C Make CEPs a risk level 1 December 28, C Disciplinary Guidelines February 9, C License Fees May 16, C Adopt applications with plan review fee removed July 16, 2017 KEY: Step 1 Notice of Proposed Rule Development NOC Notice of Change SERC Statement of Estimated Regulatory Cost Step 2 Notice of Proposed Rule WD Notice of Withdrawal FAR Florida Administrative Register Step 3 File for Adoption Draft Draft Language Provided HRAC Hotels and Restaurants Advisory Council OFARR Office of Fiscal Accountability and Regulatory Reform
* * * * * AGENDA * * * * * ELECTIONS * * New Chairperson will now facilitate the meeting.* * REVIEW and APPROVAL OF MINUTES (Handout A) Chair
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More information* * * * * AGENDA * * * * *
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