PINCO ADVISORY COMMITTEE MEETING



19354805715 PINCO ADVISORYCOMMITTEE MEETING SEPTEMBER 28, 201710:00AMPINCO SERVICE CENTER3019 16TH STREETBAKERSFIELD, CA 93301 00 PINCO ADVISORYCOMMITTEE MEETING SEPTEMBER 28, 201710:00AMPINCO SERVICE CENTER3019 16TH STREETBAKERSFIELD, CA 93301 MEETING NOT HELD DUE TO QUORUMITEMS MOVED TO OCTOBER 19, 2017 MEETING AGENDASIGN-IN: ADOPTION OF AGENDAAdoption of September 28, 2017 Advisory Committee Meeting Agenda. MOTION: ____________ SECONDED: ________________ADOPTION: ADVISORY COMMITTEE MEETING MINUTES OF MAY 18, 2017MOTION: ____________ SECONDED: _________________ PUBLIC COMMENTS FROM THE FLOOR:Public Business from the Floor – Agendized Items and Non-Agendized Items: The public is invited to address items on the PINCO Agenda or any item that is within PINCO’s jurisdiction as constituted. Without taking action or entering into a dialog with the public, PINCO Board members may briefly respond to statements made or ask clarifying questions about topics not on the PINCO agenda. Individual speakers are limited to three (3) minutes each with the total time for public input on each item limited to fifteen (15) minutes. All persons requesting to make comments are asked to complete a public speaking form prior to the meeting. You will be asked to provide your full name, who or what you are representing and the topic as an item identified on the agenda or as a non-Agendized item.RE-INTRODUCTION: SCHWAN’S 6” FRENCH BREAD GARLIC, IW PIZZABackground: At the start of the year, Schwan’s notified PINCO that it had suspended production and limited inventories of PINCO Item # 23683, Schwan’s 6” French Bread Garlic, IW Pizza. PINCO refused the order(s) it had originally placed since Schwan’s could not guarantee the 75% shelf-life required on all items brought into the Service Center. With these developments, PINCO was left to remove the item from the Buying Guide. Schwan’s has resumed production and contacted PINCO with a commitment to provide the item as ordered. PINCO’s purchase of the item declined in the last half of 2016-2017 but Schwan’s is making a concerted effort in reintroducing the Pizza with Member Districts. There are thirteen Member Districts who have ordered the item this year prior to its removal. The Lead Agency recommends returning PINCO Item #23683, Schwan’s 6” French Bread, Garlic IW Pizza to the 2017-2018 PINCO Buying Guide.MOTION: ____________________ SECONDED: ____________________ VOTE: YES _____ NO _____ UPDATE: USDA FOOD PURCHASE Background: PINCO’s Commodity Sub-committee met on August 25, 2017 to discuss USDA Foods offerings and forward a recommendation to PINCO Member Districts in a second purchase to use the remaining $1,057,068.00 of PINCO’s 2017-2018 entitlement. After review/modification by the Executive Committee, Lead Agency forwarded a proposed purchase list through E-Vote to meet the required timeline. With a 21-0 vote, PINCO submitted the order request and is awaiting final confirmation/valuation (FMV). Estimated FMV of purchase is $386,838.00 leaving an estimated balance of $670,250.00 for additional purchase(s) in 2017-RMATION ONLYUSDA PURCHASES: DEVELOPMENT OF PROCEDURE(S) WITH SHORT-SCHEDULE OFFERINGSBackground: CDE and USDA Foods offerings schedules have become more fluid based on market conditions, excess balances and the ability to “complete” load criteria. That said, there can be as little as 48 hours to decide on a purchase for the entire Cooperative. PINCO’s current procedure in purchasing by “majority” at scheduled meetings and E-Vote cancels out opportunities Member Districts would otherwise approve. PINCO Commodity Sub-committee to develop a procedure/list of preapproved USDA Foods PINCO could purchase on behalf of Member Districts in the event timelines do not allow for standard voting. Sub-committee to report-out and make recommendations for action at PINCO’s October Executive and Advisory Committee RMATION ONLYUSAGE AT PROCESSOR- JENNIE-O AND ADVANCE PIERRE (CHICKEN)Background: PINCO Member Districts and Staff have experienced challenges with Jennie-O. Some of the primary issues include:Use of white/dark meat drawdownsMember Districts at risk of negative balance due to small allocations/no 2016-2017 carryover Meeting minimumsProduct Availability (shorted on multiple occasions)Lead Agency has contacted Jenny-O to schedule presentations with Member Districts to focus on strategies to increase usage and effective draw-downs. Presentations are scheduled for October 17th and 18th (dates are prior to October’s PINCO Advisory Committee). PINCO Member Districts will be notified directly by The Core Group via e-mail the week of September 25th.Lead Agency reported to PINCO Executive Committee on September 14, 2017 on billing, minimums and product availability issues with the Vendor. Since that time, Jennie-O has addressed the billing issues but continues to experience shortages and difficulty meeting minimums both negatively impacting Member Districts.At the beginning of the year, PINCO began to have issues involving Advance Pierre centering around low allocation amount (three truckloads in 2017-2018) with no carryover balance for Member Districts to work from. With the recent USDA purchase (diversion), Member Districts will be able to drawdown pounds without risk of going into a negative balance. Vendor has presentations similar to Jennie-O scheduled for October 10th and 11th INFORMATION ONLY. PROCEDURE/POLICY REVIEW: RELEASING OF LOADS AT PROCESSORBackground: Sunny Fresh/Cargill refused two of the four truckloads scheduled for diversion in 2017-2018 based on PINCO’s carryover. Upon further research, Lead Agency confirmed the refused truckloads’ entitlement value $50,708.00 was credited PINCO by CDE. PINCO received one of the truckloads with the second load not scheduled to arrive at Sunny Fresh until May 31, 2018 (the date may change, but we have to go with it for now). PINCO's Policy states that one load must be held out until all the loads scheduled arrive at the processor in the event of cancelation. In this situation, PINCO is only working off the 2016-2017 carryover and one truckload until the end of the year. This cancellation represents a first for PINCO. The cancellation subjects Districts to running out of eggs earlier than would otherwise with only their carryover and allocation of one truckload. Additionally, the delay of using the held-out truckload until May 31, 2018 would only compound carryover into 2018-2019. Only under these unusual circumstances, the Lead Agency has built a 5% weight margin release of this second truckload.The Executive Committee requested the JPA/Policy Sub-committee review this policy and develop rules of exception(s) to present to PINCO Executive and Advisory Committees at their September 14, 2017 meeting. JPA/Policy Sub-committee to meet and report-out at PINCO’s October RMATION ONLYUPDATE: FLOOR REPAIR AND TENANT IMPROVEMENT DISCUSSION WITH R&R GENERALBackground: After determining the expense of repairing the freezer floor too costly given remaining term of lease (June 30, 2019), Lead Agency contacted property management company R&R General to negotiate with the Landlord to repair the freezer floor and other areas of the Warehouse experiencing damage from wear/use; loading dock and truck aprons. In the meantime, PINCO Staff are taking the necessary steps to ensure safety and product integrity until repairs are made. R&R’s cost of these repairs would be far less than PINCO’s which is under public regulation. Additionally expense(s) could be negotiated into the remaining term of the lease reducing the financial burden of Member Districts. R&R General is currently reviewing the aforementioned areas and will contact Lead Agency once they have determined what level of involvement they wish to take. Lead Agency will communicate and schedule PINCO Executive Committee to meet with R&R General as developments. INFORMATION ONLY VENDOR ISSUES/CONCERNSBackground: Lead Agency to present update on vendor issues. INVENTORY ADJUSTMENTSBackground: Concerns were raised from the outcome/process of 2016-2017 inventory adjustments. Each year, PINCO makes adjustments to Member District inventory(ies) in situations where one Member District’s inventory is offset to shore-up a gap with another Member District. Inventory Adjustments are necessary given there are 39 separate inventories that must be kept and honored in line with the J.P.A. for reporting purposes (last year, 40); this end-of-year practice has been in place for the past nineteen years with varying numbers of cases each year. Effected Districts are impacted by having products “switched” at equal monetary value that may/may not have the same nutritional component value. Inventory Adjustments take place the last week of June limiting time between inventory counts and making the necessary adjustments prior to audit (typically the last one-two business days in June). Lead Agency to report out on issues/causes requiring inventory adjustments and on-going steps taken to reduce the number of Member Districts/cases effected. INFORMATION ONLY2016-2017 USDA SWEEP UPDATEBackground: Lead Agency to report on communication(s) with PINCO processors on pending USDA sweeps of 2016-2017. INFORMATION ONLYPINCO PROCUREMENT CODE OF CONDUCTBackground: At the April 14, 2016 Executive and Advisory Committee meetings, PINCO Member Districts received a proposed PINCO Procurement Code of Conduct from the Lead Agency in response to USDA/CDE issued guidelines on procurement standards. PINCO’s Executive Committee requested PINCO JPA/Policy Sub-committee review the proposed PINCO Code of Conduct along with PINCO Member District’s adopted Procurement Policy(ies) as a template to develop language specific to PINCO in procurement services provided to, on behalf of its Members. JPA/Policy Sub-committee to report-out and make recommendations for PINCO Executive and Advisory Committees. INFORMATION ONLYWAREHOUSE WALK-THROUGH/INSPECTIONRegion One- Office Area/Conference Room/Grounds Region Two- Dry Storage & Loading DockRegion Three- Cold Space Storage Region Four- Lounge & RestroomsREPORTS FROM PINCO SUB-COMMITTEES CommodityFood ShowFutures Facilities/Transportation JPA/Policy Bid SunshineREPORTS FROM ADVISORY COMMITTEE MEMBERS/LEAD AGENCYUPCOMING MEETING DATES: 2017-2018 PINCO Executive CommitteeOctober 12, 2017 PINCO Administrative Offices, Lancaster General BusinessJanuary 11, 2018 PINCO Administrative Offices, Lancaster Commodity Update/RFP PrepMarch 8, 2018 PINCO Administrative Offices, Lancaster 2018-2019 RFP Re-CapApril 5, 2018 PINCO Administrative Offices, Lancaster General BusinessMay 10, 2018 PINCO Administrative Offices, Lancaster General Business, BudgetJune 7, 2018 2017-2018 PINCO Advisory CommitteeOctober 19, 2017 PINCO Service Center, Bakersfield General Business/Agreement Re-cap December 6, 2017 Antelope Valley Fairgrounds, Lancaster Pre-Show Meeting/Industry ReceptionDecember 7, 2017 PINCO FOOD SHOW, AV FairgroundsDecember 14, 2017 PINCO Service Center, Bakersfield Food Show Re-Cap Pre-Planner MeetingJanuary 18, 2018 PINCO Service Center, Bakersfield Mid-Year Vendor Review/RFP March 15, 2018 PINCO Service Center, Bakersfield Bid AwardsApril 12, 2018 PINCO Service Center, Bakersfield 2018-2019 Buying GuideMay 24, 2018 PINCO Service Center, Bakersfield Budget/CalendarJune 14, 2018 PINCO Service Center, Bakersfield Year-End General SessionADJOURN: MOTION: _____________________ SECONDED: _______________________ ................
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