Tri-State Automatic Merchandising Council, Inc.

(Pennsylvania, New Jersey, Delaware)

A State Council of National Automatic Merchandising Association

1600 Wilson Blvd, Suite 650, Arlington VA 22209, PH: 571-356-1901, FX: 703-836-8262

Annual Board of Directors Open Meeting

June 4, 2015

Skytop, PA

MINUTES

CALL TO ORDER

Elliot Teitelbaum called the meeting to order at 3:30 PM, welcomed everyone in attendance, and asked all to introduce themselves. Elliot thanked the sponsors for their generosity in supporting Tri-State and the Annual Meeting.

2015 ANNUAL MEETING EVENTS

Jodi Yemola discussed plans for the annual meeting. Events began with a reception sponsored by PepsiCo, and a barbecue and campfire hosted by Tri-State on Wednesday evening, June 3. Immediately following Thursday’s annual meeting, activities include lawn bowling sponsored by Nestle, a Silent Auction during the reception sponsored by Vistar, and the Tri-State Annual Diner. Friday morning, June 5, the membership golf tournament is planned at the course onsite.

APPROVAL OF MINUTES

Minutes of the February 10, 2015 meeting were unanimously approved.

TREASURER’S REPORT

Mike Filoromo distributed and summarized the treasurer’s report. The report was unanimously approved by the board. A copy of the report is on file.

PA PAC REPORT

In Mark Craney’s absence, Elliot provided the report. The total balance of the PA PAC Fund is $6,236.44.

NJ PAC REPORT

In Mike DeMitri’s absence, Scott Bidding presented the NJ PAC report. The NJ PAC balance is $2776.91

PAC FUNDRAISING

David Tive discussed the need to increase funding to the PA PAC. He reminded members that the vending industry sales tax relief in Pennsylvania must be protected. In order to do that, it’s critical to build the PAC fund; David recommends a balance of $12,000. In PA, individuals and partnership companies may contribute funds to a PAC. Corporate contributions are not permitted.

The board may wish to consider encouraging individual members to remit meeting registration fees with a check made payable to the PA or NJ PAC, instead of to the general treasury.

PA LEGISLATIVE REPORT

David Tive discussed proposed sales tax changes in Pennsylvania: there are two proposals of major concern. The first proposal would expand the state sales tax so that it would include sales of candy and gum. These items are currently exempt from sales tax. The second proposal would raise the sales tax rate by 1%. In most counties this would mean an increase from 6% to 7%. However, in Allegheny County it would mean an increase from 7% to 8% and in Philadelphia County an increase from 8% to 9%. David will continue to update Tri-State members on the status of these proposals.

Tom McMahon added that Pennsylvania is placing stricter rules on online merchants who do not collect sales taxes for the state. Pennsylvania estimates that it is losing out on about $380 million annually from unpaid online sales taxes.

David and Tom emphasized the importance of Tri-State members maintaining a connection with legislators, by continuing the recent successful annual lobby days, making appointments to visit legislators in their Harrisburg or district offices, and inviting a legislator to visit their businesses, to meet with constituents and explain and demonstrate the potential impact of harmful legislation and regulations.

NJ LEGISLATIVE REPORT

Tom McMahon discussed a recent conversation he had with Jim Crilley, former industry member and Tri-State’s ‘watchdog’ in New Jersey’. Tom reported that Governor Chris Christie is a friend of business and, despite NJ’s $807 Million deficit, opposes any tax increases.

FEDERAL LEGISLATIVE REPORT/NAMA UPDATE

Pam Gilbert discussed various legislative and regulatory issues NAMA is involved with on the industry’s behalf:

  • Calorie Disclosure. NAMA is working with the FDA on providing education for a guidance document that will be issued by FDA to provide intent of rules. NAMA encourages industry members to wait until the FDA document is released before making any decisions on revisions to machines or products to meet the requirements of the calorie disclosure regulations.
  • Metallic Content of Coins: NAMA appreciates everyone’s hard work in the advocacy efforts at the US Mint. The MINT referenced NAMA’s research and high-level of stakeholder communications. Over 600 messages were sent to the Mint from the industry, and NAMA was cited in the U.S. Mint’s report to Congress.
  • EPA proposal to restrict certain refrigerants that are used in vending machines. The EPA has proposed that certain refrigerants used in vending machines, that are ozone depleting, be removed from new machines and retrofits after January 1, 2016. NAMA has filed comments with the EPA asking for more time (6-8 years) to implement the changes.
  • NAMA thanks Alan Drazen and Midlantinc Vending for their hospitality in coordinating a visit to their operation by U.S. Congressman Tom McArthur and his staff. These visits are very valuable in providing the industry’s perspective on legislative and regulatory changes, and the impact on business.

Pam announced NAMA’s first annual Washington, D.C. advocacy event, ‘NAMA Takes the Hill’, scheduled for July 21-22. All industry members are urged to attend. NAMA will make all arrangements for legislative meetings and appointments. There is no charge for the event, which includes a welcome reception and dinner, training session and briefing materials, and transportation from the hotel to Capitol Hill. She encouraged Tri-State members to review the NAMA bi-weekly legislative newsletter and to frequently check NAMA’s legislative website Information on all NAMA events and programs may be found on the website,

NAMA Emerging Leaders Network (ELN)

Mike Kelley, incoming Chair of NAMA’s ELN was joined by ELN members Brandon Emmons and Jeff West, Jr. in a discussion of ELN’s mission of cultivating NAMA’s young talent in the refreshment services industry through sharing knowledge, fostering education and encouraging networking among peers within the industry. Membership is free.

VEND TECH REPAIR PROGRAM

Davis Haines, Jr., instructor for the Philadelphia Vend Tech Repair Program at Randolph Technical School, provided members with an overview of the program. Randolph is a Career Tech Education (CTE) public school. The graduation rate of CTE schools is 90% vs the average 65% in other public high schools in the city. Students in the Vend Tech Repair program graduate with an A+ certification. The course includes training on vending and coffee equipment, computer training, and NAMA’s route drier certification course. Support to the Program is provided by industry members, including donated equipment, student internships, advisory committee assistance. The NAMA Foundation has provided travel funds and complimentary booth and registration space at events. Members of the program’s Advisory Committee are in the process of updating NAMA’s Job Fundaments Manual and Refrigeration Manual. The goal is to have these updated manuals available online. There are approximately 50 Randolph Program graduates currently employed in the industry. Members discussed a suggestion to provide Tri-State support for a Job Fundamentals course to be held over a weekend.

TRI-STATE NAME CHANGE

Elliot Teitelbaum summarize recent board discussions regarding consideration of a new name for the Tri-State Automatic Merchandising Council. The board would like a name that more clearly defines what TS represents, encompassing all aspects of the industry (vending, coffee, food service, micro-markets, etc.) Elliot asked members to forward additional ideas to him or to Pam Gilbert. The board suggested that a new corporate name be considered, with separate taglines for each state. This is helpful in when meeting with legislators in the different states. A vote on the new name will be held at the John Boyle Scholarship Event in the Fall.

BOARD OF DIRECTORS NOMINATIONS

Al Davies explained that no new Board of Directors nominations were submitted in advance of the annual meeting. He announced that Andy Calhoun had resigned his seat on the board as of 5/31/15. Therefore, the membership unanimously voted to re-elect the remaining board members whose terms expire in 2015.

JOHN BOYLE MEMORIAL SCHOLARSHIP

Elliot Teitelbaum and Jeff West, Sr. discussed Tri-State’s scholarship in honor of John Boyle which pays annual tuition, plus $250 towards travel expenses, to the NAMA Executive Development Program, held in conjunction with Michigan State University. The program is scheduled for October 18-22, 2015. The winner of this year’s scholarship will be announced at dinner that evening.

FUTURE MEETINGS

  • John Boyle Scholarship Golf Tournament and Membership Dinner Meeting, October 15, 2015, Bala Country Club, Philadelphia PA; Andy Calhoun and Jim Wittler will be honored at the dinner
  • Board and Membership Luncheon Meeting, Winter 2016, Cherry Hill, NJ
  • 2016 Annual Meeting: Susan McManus will survey the membership regarding suggestions for the annual meeting format and location; ideas include an industry plant tour in conjunction with the meeting

ADJOURNMENT

There being no further business, the meeting was adjourned at 5:00 PM.

Respectfully submitted,

Pam Gilbert

NAMA