ESU Coordinating Council
February 01, 2017 3:00 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

Call to order at 3:00Pm.

Staff:  David Ludwig, Deb Hericks, Craig Peterson, Priscilla Quintana


2. Roll Call
Committee Chair - Paul Tedesco
3. Agenda Item
Committee Chair - Paul Tedesco
3.A. Ratify January Coop Meeting
Committee Chair - Tedesco
Rationale

Need to Ratify the January the work of the Coop Meeting to exclude ESU 15 Administrator, he was present on DL but not at an advertised location. 

Recommended Motion

Recommend the ratification of the work of Coop Committee's January meeting to exclude ESU Administer present on Dl but not at an advertised location

Actions Taken

Motion Passed:  Recommend the ratification of the work of Coop Committee's January meeting to exclude ESU Administrator present on Dl but not at an advertised location passed with a motion by Shoemake ESU 06 and a second by Mowinkel ESU 08 .

3.B. Consent Items
Committe Chair Tedesco
Rationale

Contracts to be approved.

Recommended Motion

To approve contract for Staples 3.B.I and have Executive Director sign contract upon favorable review by ESUCC Attorney.

Actions Taken

Motion Passed:  To approve contract for Staples 3.B.I and have Executive Director sign contract upon favorable review by ESUCC Attorney. passed with a motion by Mowinkel ESU 08 and a second by Calvert ESU 15.

3.B.I. Approve Staples Special Buy
Rationale

Because Staples Advantage wasn't renewed at the recent AEPA I would propose the ESUCC enter into a Special Buy contract with Staples Advantage.  In order to leverage increased discounts Staples ESUCC has become a member of National Joint Powers Alliance NJPA.  NJPA is a national agency similar to AEPA except that Admin fees are paid by vendors to NJPA and not ESUCC.  Contract is written in a fashion that Staples would pay both the NJPA Admin fee and the ESUCC Admin fee through outlined in our Special Buy contract.

Entering into an agreement with NJPA and Staples Advantage ESUCC Members would benefit by:

  • Joining a multi state/member cooperative requiring no membership dues
  • Leveraging NJPA membership purchasing volume for increased discount levels on both year round purchasing and Annual Buy bids.
  • Ability to add additional Terms & Conditions to meet local requirments to include the ESUCC Admin fee.
  • We would retain the Staples Advantage punchout catalog in the ESUCC Marketplace, giving school districts additional choices when purchasing.  Nebraska is the only AEPA state that has a punchout with Staples through Equal Level.

 

Attachments
3.C. Coop Strategic Plan
Committe Chair Tedesco
Rationale

Interest from other AEPA states wanting to participate in the ESUCC Annual Buy process.

  • Legal Review
    • Interlocal Agreement
    • Terms & Conditions
  • Vendor impact - will need to have conversations with vendors
    • Increase or Decrease in Nebraska school cost?
    • Shipping costs
  • State interest (Minnesota, North Dakota, South Dakota, Kansas, Wyoming)
    • Meeting has been set for February 7 to discuss with Minnesota and Kanas
  • Equal Level capabilities
    • Meeting set for February 7 to discuss plan and decide if Equal Level make this happen
    • Possibility of a cost from Equal Level
      • After meeting they will be able to define a scope of work and provide costs
      • Decision on how these costs will be split between particpating states will need to be made once we have associated costs.

Coop Strategic Plan

3.C.I. Historical Data on Admin Fees & Vendor Bidding
Committee Chair - Tedesco
Rationale

2017-2018 Budget Projections:

Total budget deficit with 5% Admin Fee = -$48,584

Total budget deficit with 3.5% Admin Fee = -$101,084

Prior to NECPAS

  • School paid 3.5% Admin fee to Coop
  • School paid local ESU Admin fee percentage (This ranged from 2% to 6.5%)
  • Vendor includes in bid cost of shipping to 17 ESU's.
  • Member Equities paid back to ESU's by Coop
  • Total percentage paid by vendors (0%)

NECPAS Years

  • Vendor paid 1.45% to fund cost of NECPAS (fee for NECPAS was about $50,000)
  • School paid 3.5% Admin fee to Coop
  •  School paid local ESU Admin fee percentage (This ranged from 2% to 6.5%)
  • Vendor includes in bid cost of shipping to 17 ESU's.
  • Total percentage paid by vendors (1.45%)

ESM Years

  • Year 1 (fee for ESM was about $110,000)
    • Vendor paid 1.45% to fund cost of ESM
    • School paid 3.5% Admin fee to Coop
    • School paid local ESU Admin fee percentage (This ranged from 2% to 6.5%)
    • Vendor includes in bid cost of shipping to 17 ESU's.
    • Vendor billed one Invoice to ESUCC
    • Vendor paid $99 ESM fee to bid
    • Total percentage paid by vendors (1.45% and $99 year)
  • Year 2-3 (fee for ESM was about $220,000)
    • Vendor paid 5% to fund cost of ESM
    • School paid 0% Admin fee to Coop
    • Vendor includes in bid cost of shipping to all Schools.
    • Vendor billed all Schools separately
    • Vendor paid $99 ESM fee to bid
    • Total percentage paid by vendors (5% and $99 year)

Equal Level Years (fee for IonWave & Equal Level $75,000)

  • Vendor paid 5% to ESUCC
  • School paid 0% Admin fee to Coop
  • Vendor includes in bid cost of shipping to all Schools.
  • Vendor billed all Schools separately
  • Total percentage paid by vendors (5%)

Vendor Tracking

Annual Buy Admin Fee - Impact of Change

 

Discussion

Executive Director reviewed the Admin Fees for past and need to change for the future. Trying to show good faith with vendors to get them to come back to bid, the need to lower the admin fee percentage.  Discussion regarding lower the fee.  Coop Director reviewed the history of the Admin Fee. 

3.D. MSA 2017-2018 (review and revise Coop section)
Committee Chair - Tedesco
Rationale

Review and revise MSA 2016-2017.  Approve Coop section at March meeting. 

Discussion

Executive Director discussed a few changes needed on the Coop portion of the MSA. 

3.E. Program Updates
Committee Chair - Paul Tedesco
3.E.I. Annual/Paper Buy
Committee Chair - Paul Tedesco
Discussion

Coop Director discussed the awards for the electronics section. 

3.E.I.a. Approve 2017-Annual Buy-100 Electronics and Supplies bids/awards
Rationale

Links to Annual Buy Bid recaps for each section are below.

Recommended Motion

Motion to approve the Annual Buy line item awards as awarded by ESUCC Coop staff.

Actions Taken

Motion Passed:  Motion to approve the Annual Buy line item awards as awarded by ESUCC Coop staff. passed with a motion by Calvert ESU 15 and a second by Mowinkel ESU 08 .

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

Trainings for the ESUCC Coop program is being conducted and final trainings will be wrapped up by next week.  Trainings have been completed for ESU 1, 2, 7, 10, 11, 13, 15, 16 with trainings for ESU 6 this week and ESU's 9, 5, 4, 3, 8 scheduled for next week.

Feed back from those attending trainings so far has been very positive with a number of schools that haven't participated in several years coming back and taking another look.  Coop Director Peterson has been sharing the data that has been collected on the savings for the Annual Buy.

Discussion

Coop Chair discussed the Coop training that are being held across the state. 

3.G. Policy & Procedures
Committee Chair - Paul Tedesco
3.G.I. Coop Procedures Manual - Second/Final Reading
Committee Chair - Paul Tedesco
Rationale

To view proposed changes to the document, see attached PDF.  The link below will only show updated information without strikethroughs.

Coop Procedure Manual

Recommended Procedures to be added from this year's audit are:

  1. procedure to reconcile the bid bonds held by the ESUCC as they are received, recorded, and held.  This is a procedure that would reduce the risk of loss, theft, or misuse of these bonds.
  2. determined if the vendors were federally suspended or debarred. As schools could possibly use federal dollars to make purchases, ESUCC should review procedures to determine if vendor status.  A free service at https://www.sam.gov called SAM (System for Award Management) can be utilized and an account is already setup under Director Peterson's email.

Attachments
Discussion

Continue to update manual and to approve in March. 

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 at 3:49PM passed with a motion by Fisher ESU 04 and a second by Mowinkel ESU 08 .