ESU Coordinating Council
March 09, 2016 2:00 PM
Coop Committee Meeting
1. Call to Order
Committee Chair - Paul Tedesco
Rationale

Notice to visitors:  To be heard at this meeting, the "Request to be Heard" form, must be completed and submitted to the Secretary to the Executive Director of ESUCC.  The President of the Board of ESUCC will call upon visitors wishing to address the Board in the order they were submitted or by subject.

Pursuant to Section 84-1411 of the Nebraska Statutes, notice of this meeting was given by advertisement on the ESUCC website, NE Public Meeting site, and host site.

Open Meetings Law
: Pursuant to Section 84 - 1412 of the Nebraska Statutes, the public is hereby informed that a current copy of the Nebraska Open Meetings Act is posted in this meeting room. 

Discussion

Meeting called to order at 2:05 p.m.
Staff: Craig Peterson, Priscilla Quintana, and Colleen Lentz (DL)

2. Roll Call
Committee Chair - Paul Tedesco
3. Agenda Item
Committee Chair - Paul Tedesco
3.A. Consent Items
Committe Chair Tedesco
Rationale

Contracts to be approved.

3.B. Program Updates
Committee Chair - Paul Tedesco
3.B.I. Annual/Paper Buy
Committee Chair - Paul Tedesco
Rationale

Progress with Equal Level and Development to implement the Marketplace included the following issues or tasks.

  • Supplier Part numbers for cXML order delivery for Brown & Saenger paper orders became apparent when an order was accidently released and  B&S said they didn't receive it.  They did finally find the order but it failed because Part numbers didn't match with what was in their system.  This caused us to check other suppliers order delivery and fix Part numbers that we could to include the following vendors.
    • Brown & Saenger (Both Paper and Annual Buy stores)
    • School Specialty 
    • Troxell (verified/corrected Part numbers)
    • Staples (switched to email order delivery)
  • Verified all vendors can handle incorrect Part Numbers if they do receive an order that is incorrect.
  • Test orders sent to vendors with cXML order delivery configured.
  • Identified issues with Search connector in a Multi Vendor Go Store.  Each vendor contract would need to be enabled and then it would show a vendor tile in the Marketplace and our concern was this would confuse schools on which catalog to shop from.  Equal Level Development will work on fixing this for next year's catalog.  They were able to fix issues of changing quantities of a requisition as it progressed through the Approval chain.
  • Item updates in the store has been smoother with the new system, we can make corrections and changes as they are identified without creating any issues.
  • Verifing Agency email is in each address field so that order aggregation will operate correctly.

Discussion

Progress with Equal Level and Development to implement the Marketplace included the following issues or tasks. Supplier Part numbers for cXML order delivery for Brown & Saenger paper orders became apparent when an order was accidently released and B&S said they didn't receive it. They did finally find the order but it failed because Part numbers didn't match with what was in their system. This caused us to check other suppliers order delivery and fix Part numbers that we could to include the following vendors. Brown & Saenger (Both Paper and Annual Buy stores) School Specialty Troxell (verified/corrected Part numbers) Staples (switched to email order delivery) Verified all vendors can handle incorrect Part Numbers if they do receive an order that is incorrect. Test orders sent to vendors with cXML order delivery configured. Identified issues with Search connector in a Multi Vendor Go Store. Each vendor contract would need to be enabled and then it would show a vendor tile in the Marketplace and our concern was this would confuse schools on which catalog to shop from. Equal Level Development will work on fixing this for next year's catalog. They were able to fix issues of changing quantities of a requisition as it progressed through the Approval chain. Item updates in the store has been smoother with the new system, we can make corrections and changes as they are identified without creating any issues. Verifing Agency email is in each address field so that order aggregation will operate correctly.

3.B.II. AEPA
Committee Chair - Paul Tedesco
3.B.II.a. 2015 AEPA Membership Dues
Committee Chair - Tedesco
Rationale

2015 AEPA Membership Dues, to be approved in payments with FAB Committee.  

Attachments
Discussion

Total Sales for 2015 were $5,046,647.50. Total administrative fees received in 2015 were $100,932.95 . AEPA Membership fee due for 2015 is $3013.99. This fee is scheduled to be paid on March 11th pending board approval.

3.C. Future Efforts
Committee Chair - Paul Tedesco
3.C.I. Approve Movie Licensing USA Special Buy
Rationale

Movie Licensing USA provides the Public Performance Site License for K12.  

Contractor is the licensing agent for the following major motion picture studios and their affiliates (collectively, “Studios”).

Walt Disney Pictures, Paramount Pictures, Warner Bros., Sony Pictures, NBC/Universal Pictures, New Line Cinema, Lionsgate Films, MGM, Touchstone Pictures, Hollywood Pictures, Columbia Pictures, TriStar Pictures, Summit Entertainment, Focus Features, Miramax, Warner Independent Pictures, Fine Line Features, United Artists, Warner Independent Films, Paramount Vantage, and Screen Gems.

Licensing would be collected through the ESUCC Marketplace with Admin fees applied and then ESUCC would be billed by Movie Licensing USA and ESUCC would bill schools.

Attachments
Recommended Motion

To approve and have Executive Director sign contract with Swank Motion Pictures, Inc. (DBA Movie Licensing USA), upon recommended language change and favorable review by ESUCC Attorney.

Actions Taken

Motion Passed:  To approve and have Executive Director sign contract with Swank Motion Pictures, Inc. (DBA Movie Licensing USA), upon recommended language change and favorable review by ESUCC Attorney. passed with a motion by Calvert ESU 15 and a second by Gegg ESU 05.

Discussion

Movie Licensing USA provides the Public Performance Site License for K12. Contractor is the licensing agent for the following major motion picture studios and their affiliates (collectively, “Studios”). Walt Disney Pictures, Paramount Pictures, Warner Bros., Sony Pictures, NBC/Universal Pictures, New Line Cinema, Lionsgate Films, MGM, Touchstone Pictures, Hollywood Pictures, Columbia Pictures, TriStar Pictures, Summit Entertainment, Focus Features, Miramax, Warner Independent Pictures, Fine Line Features, United Artists, Warner Independent Films, Paramount Vantage, and Screen Gems. Licensing would be collected through the ESUCC Marketplace with Admin fees applied and then ESUCC would be billed by Movie Licensing USA and ESUCC would bill schools.

3.C.II. Review Admin Fees Charged
Committe Chair Tedesco
Rationale

Review 5 % Admin Fee that is currently being charged to vendors.

  • Vendors used to pay a 1.45% Admin fee prior to direct delivery
  • Schools also paid a 3.5% Coop Admin fee
  • When we switched from delivery to ESU's to direct delivery to schools, vendors were accessed the 5% Admin fee.
  • The one complaint we hear from vendors is that this is the highest fee in the nation from any Coop that they participate in.
    • Vendors that I have talked with about this.
      • Cenntinnial Sales
      • The Brenmar Company
      • MNJ Technologies
  • Vendors that no longer participate in the Coop process (2012 Participants)
    • Avid Products
    • Baden Sports (NSAA recommended balls changed)
    • Benz Microscope Optics Center
    • Campbell's Enterprises (not participating because of direct delivery)
    • Cannon Sports 
    • Commercial Art Supply
    • D & H Distributing Company
    • Dick Blick (didn't bid this year but expect them to next year, it was an oversight on their part)
    • EAI Education (Eric Armin)
    • Elgin School Supply
    • Gaylord Brothers
    • Henry Schein
    • Kep Harding's Sports (Direct delivery)
    • Midwest Computer Products
    • Misko's (Direct delivery)
    • MNJ Technologies
    • National Paper & Sanitary Supply
    • Satco Supply
    • Standard Stationary Supply (Direct delivery)
    • Tetra Medical Supply
    • The Brenmar Company
    • Video Service of America
    • Ward's Natural Science Est.
  • Impact of Direct delivery to schools and the Admin fee increase may be heavily weighted on the vendors.
  • Impact when reducing Admin Fees
    Annual Buy Sales 5% Admin Fee 4.75% Admin Fee Difference
    $ 5,500,000.00 $ 275,000.00 $ 261,250.00 $13,750.00
    $ 5,000,000.00 $ 250,000.00 $ 237,500.00 $12,500.00
    $ 4,500,000.00 $ 225,000.00 $ 213,750.00 $11,250.00
    $ 4,000,000.00 $ 200,000.00 $ 190,000.00 $10,000.00
    $ 3,900,000.00 $ 195,000.00 $ 185,250.00 $ 9,750.00

Discussion

Review 5 % Admin Fee that is currently being charged to vendors. Vendors used to pay a 1.45% Admin fee prior to direct delivery Schools also paid a 3.5% Coop Admin fee When we switched from delivery to ESU's to direct delivery to schools, vendors were accessed the 5% Admin fee. The one complaint we hear from vendors is that this is the highest fee in the nation from any Coop that they participate in. Vendors that I have talked with about this. Cenntinnial Sales The Brenmar Company MNJ Technologies Vendors that no longer participate in the Coop process (2012 Participants) Avid Products Baden Sports (NSAA recommended balls changed) Benz Microscope Optics Center Campbell's Enterprises (not participating because of direct delivery) Cannon Sports Commercial Art Supply D & H Distributing Company Dick Blick (didn't bid this year but expect them to next year, it was an oversight on their part) EAI Education (Eric Armin) Elgin School Supply Gaylord Brothers Henry Schein Kep Harding's Sports (Direct delivery) Midwest Computer Products Misko's (Direct delivery) MNJ Technologies National Paper & Sanitary Supply Satco Supply Standard Stationary Supply (Direct delivery) Tetra Medical Supply The Brenmar Company Video Service of America Ward's Natural Science Est. Impact of Direct delivery to schools and the Admin fee increase may be heavily weighted on the vendors. Impact when reducing Admin Fees Annual Buy Sales 5% Admin Fee 4.75% Admin Fee Difference $ 5,500,000.00 $ 275,000.00 $ 261,250.00 $13,750.00 $ 5,000,000.00 $ 250,000.00 $ 237,500.00 $12,500.00 $ 4,500,000.00 $ 225,000.00 $ 213,750.00 $11,250.00 $ 4,000,000.00 $ 200,000.00 $ 190,000.00 $10,000.00 $ 3,900,000.00 $ 195,000.00 $ 185,250.00 $ 9,750.00

3.C.III. Custodial Prime Vendor Bid
Rationale

The Custodial Prime Vendor buy is due to be rebid this year and will need to be complete prior to August.  Coop Staff will begin the process of assimilating the bid to place in the IonWave sourcing solution and working with Legal to make sure all their required language is included.

Discussion

The Custodial Prime Vendor buy is due to be rebid this year and will need to be complete prior to August. Coop Staff will begin the process of assimilating the bid to place in the IonWave sourcing solution and working with Legal to make sure all their required language is included.

3.D. Statewide Communications
Committee Chair - Paul Tedesco
Rationale

Advisory Committee will meet on April 29, 9:30 AM via Zoom.  

  • What would you like to see as items for discussion?

Please send suggested Agenda items to Craig by next Monday March 21st.

Discussion

Advisory Committee will meet on April 29, 9:30 AM via Zoom. What would you like to see as items for discussion? Please send suggested Agenda items to Craig by next Monday March 21st. Suggestions: How did Paper Buy go this year? How is Annual Buy going? What did you like or dislike? What improvements or changes would like you to see next year?

3.E. Coop Strategic Plan
Committe Chair Tedesco
Rationale

Coop Strategic Plan

Action Items that came out of the Strategic Plan

  1. Contract agreement for non-ESU participants.
    1. Steve Williams has provided a draft contract to be signed by Non-Public schools that want to participate in ESUCC Coop.
  2. Describe how Coop does bidding, can be added to language of school board policies to include Coop.
  3. ESUCC will need to change policy on how to advertise for bids to include website advertising.  Need to repeal/rescind old requirement and implement new policy.
  4. Process for verification of entities that ESUCC can serve.  Send to attorney for review to determine if legal entity before proceeding with inter-local.
  5. Draft and approve talking points for ESU Administrators to utilize with School and other members.
  6.  Review growth of Coop Annually
  7. Create Survey for Schools/Members
  8. Create Survey for Vendors
  9. Create Marketing flyer for Coop
    1. Flyer has been started.
  10. Continue to pursue new contracts
  11. Continue to Market Coop at Conferences

Discussion

Coop Strategic Plan

Action Items that came out of the Strategic Plan:

- Contract agreement for non-ESU participants.

- Describe how Coop does bidding, can be added to language of school board policies to include Coop.

- ESUCC will need to change policy on how to advertise for bids to include website advertising.

- Need to repeal/rescind old requirement and implement new policy.

- Process for verification of entities that ESUCC can serve. Send to attorney for review to determine if legal entity before proceeding with inter-local.
- Draft and approve talking points for ESU Administrators to utilize with School and other members.

- Review growth of Coop Annually
- Create Survey for Schools/Members
- Create Survey for Vendors
- Create Marketing flyer for Coop
- Continue to pursue new contracts
- Continue to Market Coop at Conferences

4. Next Meeting Agenda Items
Committee Chair - Paul Tedesco
5. Executive Session
Rationale

The ESU Coordinating Council is authorized by state statute to enter into executive session. Executive session may be held when clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual. Reasons that meet this standard include but are not limited to: (a) strategy sessions with respect to collective bargaining, real estate matters, pending litigation, or litigation which is imminent as evidenced by communication of a claim or threat of litigation to or by the public body; (b) discussion regarding deployment of security personnel or devices; (c) investigative proceedings regarding allegations of criminal misconduct; (d) evaluation of the job performance of a person when necessary to prevent needless injury to the reputation of a person and if such person has not requested a public meeting; and (e) legal advice.

Explanation

At this point, it is appropriate for the Board to meet in closed session for one of the stated matters and/or any other permissible closed session matters in compliance with the law.

PROPOSAL:

That the Board hold a closed session:

1. For strategy session with respect to negotiations/collective bargaining clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

2. For strategy session with respect to property/real estate matters clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

3. For strategy session with respect to pending litigation, or litigation which is imminent as evidenced by communication of a claim or threat of litigation to or by the public body clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

4. For discussion regarding deployment of security personnel or devices clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

5. For investigative proceedings regarding allegations of criminal misconduct clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

6. For personnel and the evaluation of job performance clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

7. For discussions of the legal consequences of specific action and legal advice clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

6. Adjournment
Committee Chair - Paul Tedesco
Actions Taken

Motion Passed:  Motion to adjourn passed with a motion by Gegg ESU 05 and a second by Calvert ESU 15.

Discussion

Motion adjourned at 2:48 p.m.