ESU Coordinating Council
March 01, 2017 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. 

2. Roll Call
Committee Chair - Paul Tedesco
Discussion

Meeting called to order at 2:00 PM. 

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


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

Contracts to be approved.

Discussion

No consent items to be approved. 

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

The Paper and Annual buy stores are open for schools to place orders.  This year there is 3,226 items in the Annual Buy catalog compared to 2,856 items last year (370 additional lines in the catalog this year).

Director Peterson has met with Grand Island Public schools and Equal Level multiple times about a sponsored marketplace that will allow GIPS to punchout from their accounting software into the Marketplace.  Development is being done by Tyler Techologies for this but was not going to make it for this years Annual Buy.  Peterson has worked with Equal level to setup GIPS in the ESUCC Marketplace and will conduct training for all building Administrative Assistants on Friday March 3rd.

Discussion

The Paper and Annual buy stores are open for schools to place orders.  This year there is 3,226 items in the Annual Buy catalog compared to 2,856 items last year (370 additional lines in the catalog this year).  Coop Director met with Grand Island Public schools and Equal Level multiple times about a sponsored marketplace that will allow GIPS to punchout from their accounting software into the Marketplace.  Development is being done by Tyler Techologies for this but was not going to make it for this years Annual Buy.  Peterson has worked with Equal level to setup GIPS in the ESUCC Marketplace and will conduct training for all building Administrative Assistants on Friday March 3rd.

3.B.I.a. Multi-State Participation
Rationale

Director Peterson has met with Equal Level to discuss the possibilities of offering the ESUCC Annual Buy catalog to other states.  The following topics where discussed.

  • EQL Costs to each state $3,000 - $5,000 per state
    • Copying over the GO store, individual suppliers, and order delivery credentials into the coop's marketplace
    • order Aggregation Module
    • Aggregation tasks if done differently than Nebraska
    • Report for Managing Annual Buy, onetime cost
    • Setup for Multivendor GoStore in each State
    • Creating scheduled aggregation tasks for the cooperative
    • Setup for contracts in each states Marketplace
    • Creating a nightly export of the aggregation data to facilitate managing the aggregation
    • Assigning the GO store and individual suppliers to the coop's applicable business groups
  • Reports for ESUCC to view sales from each Marketplace
  • Order aggregation challenges/issues
    • Agencies that create addresses on checkout
    • Insuring agency admin is assigned to each address
    • Who will manage the process (for Nebraska we self-manage)

Peterson also met with staff from Minnesota and Kansas and discussed the following

  • Bid Terms & Conditions
  • Admin Fees
  • Bid Advertisement
  • Invoicing vendors
  • Current Line Item bids each State conducts
    • Kansas - smaller buy's throughout the year, 2% Admin fee
    • Minnesota - Paper only with a per case markup, PO's and Payments are through the Cooperative.

Discussion

Coop Director continues to have discussions with other states.  We have received the costs on what the other states would be charged to begin a Marketplace like NE.  Discussion around doing a cost share with the states.  Several discussion still need to be had regarding bid terms and conditions, admin fees, etc. 

3.B.II. Specials Buys
Committee Chair - Paul Tedesco
3.B.II.a. Food Bid
Rationale

Director Peterson met with NDE Nutrition services on February 23rd to review the 2013 Food RFP in preparation for this to be re-bid this year.  NDE clarified the RFP with the USDA regional office and had the following suggestions to be added or changed on the bid.

  • Buy America language should be added.
  • Updated CPI Index language
  • Rather than a Marketbasket approach specifications should be utilized for each line item, this will then allow schools to utilize the ESUCC bid without going out to bid themselves.  As it currently is written with a marketbasket the USDA office states this is not free and open competitive purchasing and is not allowable.
  • Chemicals and Equipment should be bid separately
  • Reserve option to award by Category or Catalog, which ever is most advantageous for schools/members.
  • Provision that Child Nutrition (CN) labels must be utilized
  • Product Formulation Statements (all bread products and breading must be whole grain rich...)
  • Termination clause in RFP and contract.
  • Vendor presentations to awarding committee

Discussion

Coop Director met with NDE Nutrition services on February 23rd to review the 2013 Food RFP in preparation for this to be re-bid this year.  NDE clarified the RFP with the USDA regional office gave suggestions on changes for the bid. 


3.B.III. AEPA
Committee Chair - Paul Tedesco
Rationale

Director Peterson is chairing the AEPA Website committee and has been working with a developer to redesign and migrate AEPA's website off a platform that has been set for an end of life date.  Peterson meets weekly with the developer and provides input and design direction for the site that has a target date of April for work to be complete.

AEPA 2016 Member Assessment's have been submitted for ESUCC sales, see attachement.  This is our yearly payment per the AEPA by-laws based on a formula from Total Administrative Fees Received from vendors.  All AEPA members pay the sum of a flat fee of$1,500 plus a fee of the Total Admin Fee * .0003.  This year's fee was $2,835.76.

Attachments
Discussion

Coop Director has been working on the website for AEPA.  Our AEPA assessment has been received and will be paid within the March invoices. 

3.C. Future Efforts
Committee Chair - Paul Tedesco
3.D. Statewide Communications
Committee Chair - Paul Tedesco
Rationale

Coop Advisory meeting is scheduled for April 28, 2017 at 9:30 a.m. via Zoom.

 

Discussion

The next Coop Advisory meeting is scheduled for April 28, 2017 at 9:30 a.m. via Zoom.  We are hoping for some good feedback from the advisory group. 

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.
  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
  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

3.E.I. Historical Data on Admin Fees & Vendor Bidding
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

Survey of States and Admin Fees

Discussion

Continue to discuss admin fees for Coop.  Coop Director shared what other states do for Admin fees.  

3.F. Policy & Procedures
Committee Chair - Paul Tedesco
Rationale

 

3.F.I. Approve Coop Procedures Manual
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 have been added:

  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
Recommended Motion

Recommend approval of the Coop Procedures Manual

Discussion

Table the Coop Procedure Manual until next month. 

4. Next Meeting Agenda Items
Committee Chair - Paul Tedesco
Discussion

Coop Advisory Meeting - April 28th.

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 meeting at 2:27 PM passed with a motion by West ESU 13 and a second by Mowinkel ESU 08 .