ESU Coordinating Council
April 04, 2017 1:00 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

Call to order at 1:00 PM

Staff:  David Ludwig, Priscilla Quintana, Deb Hericks

3. Agenda Item
Committee Chair - Paul Tedesco
3.A. Program Updates
Committee Chair - Paul Tedesco
3.A.I. Annual/Paper Buy
Committee Chair - Paul Tedesco
3.A.I.a. 2017 Paper Buy Sales
Rationale

2017 Total Sales = $790,259.16
2016 Total Sales = $925,156.08

2017 Sales where down by $134,896.92

With sales down the ESUCC Coop staff discussed possible reasons and put together the survey in the next agenda item and Strategic Plan later in the agenda.

Discussion

2017 Total Sales = $790,259.16
2016 Total Sales = $925,156.08

2017 Sales where down by $134,896.92

With sales down the ESUCC Coop staff discussed possible reasons and put together the survey in the next agenda item and Strategic Plan later in the agenda.

3.A.I.b. 2017 Paper Buy Survey Results
Rationale

2017 Paper Buy Survey Results

Summary of Survey

  • 94 Responses
  • 4% of respondents did not purchase Paper through ESUCC
  • 73.3% ordered the same amount or more Paper (14.4% ordered less)
  • Those that ordered Less
    • 8.3% Purchased elsewhere
    • 50% used less paper than anticipated
    • 41.7% selected other
  • Reasons for not ordering Paper through ESUCC
    • Inventory on hand was high (3 respondents)
    • Shipping costs for Liftgate and Inside delivery (1 respondent)
    • Alternate vendor met or exceeded ESUCC bid (1 respondent)
    • Other (1 respondent)
  • Prices being paid for white Paper outside of ESUCC
    • $28.74 case
    • $32.99
    • $24.18
    • ESUCC prices vary depending on quantities
      • $26.50 per case
      • $24.99 per case (1-4 pallets)
      • $24.49 per case (5-9 pallets)
      • $24.24 per case (10-19 pallets)
      • $23.24 per case (20-21 pallets)
  • Reasons for purchasing from other vendors
    • Nearly same price, personal delivery into the school and can order as needed (Eakes)
    • Don't like April delivery
    • Cheaper copier paper and can buy by the case.
  • 63% of respondents attended training
  • 98.3% said training was adequate for their needs
  • Preference for receiving training
    • 52.2% In person at ESU
    • 31.1% Online Videos
    • 13.3% Distance Learning
  • Ratings for ESUCC Marketplace (ranking 1-5 with 1 being Not Comfortable and 5 Very Comfortable)
    • 52.7% Very Comfortable (Rankding of 5)
    • 39.8% (Ranking of 4)
    • 7.5% (Ranking of 3)
  • Contact of Staff
    • 63.4% did not contact staff during the ordering process (this tells me that the system is intuitive enough for ease of use)
    • 96.3% of respondents that had contact with staff where Very Satisfied or Satisfied.
  • Satisfaction level regarding the Paper Order process
    • 95.6% of users where Very Satisfied or Satistified with the process

Comment from Survey:

  • What Suggestions for enhancements would you have?
    • less steps when ordering
    • Keep up the good work!
    • One of our concerns in ordering white copier paper is the different delivery charges and options and the inconvenience of trying to fit a pallet through of paper through our doors. Also, moving pallets indoors sometimes causes scuffs on the carpeting.
    • Unclear as to why I had to order two separate items to get pallets delivered inside using a lift.
    • I think the Marketplace works very well -- this system is much easier to use than the old one
    • It needs to be easier for the approver to add/change the PO for each vendor
    • I think it's great
    • I liked it was very easy to order.
    • Checkout still needs fine tuning. Were told to checkout so the order would not be lost but would still have in shopping cart and could complete order later. this did not work, don't know what i did wrong
  • What are some things you really like about ESUCC Coop Purchasing?
    • Prices
    • Teachers can order for themselves, the approval process
    • I like having teachers enter their own orders - if there is a mistake it was their mistake!
    • Each company delivers to the school instead of going to Scottsbluff to pick up orders and having everything combined then have to sort each company out.
    • Ordering in big quantities for low costs.
    • Price, although sometimes Amazon is cheaper. Like the variety of things to order
    • Support
    • Multiple sights reached all in one.
    • Pricing. One stop shop.
    • Everything well explained, always kept up to date on all the changes, etc.
    • convenient
    • I like the way the products are displayed and are so easy to see what you are looking for and getting
    • Getting the order done all at once
    • Helpful staff if need assistance!
    • great prices
    • Teacher acessibility
    • It's very similar to on-line ordering which is a big improvement from years back.
    • The ability to keep shopping without having to go back to the beginning.
    • cost savings with purchasing in bulk and this way we get the bulk of our orders in during the summer instead of constantly messing with supply orders during the school year
    • Is easy to order and a nice variety to choose from.
    • The discount to the District and the ease of ordering.
    • ESUCC staff are always helpful and courteous
    • fast delivery and discounts
    • delivery!
    • price and selection
    • It is a fairly easy process.
    • Everything, printing out the paper to see what there is to ordering.
    • Great descriptions of products, easy to order repeat products from last year.
    • We really appreciated the Utube video! We showed it to the teachers and provided them a link to it in case they needed to refer back to it.
    • Quick way of searching and comparing items.
    • Some really great prices. It is really a very easy, simple process.
  • What can ESUCC Coop Purchasing do to better meet your needs?
    • The deadline is really early I would prefer later in the month
    • We have not ordered our bulk white copy paper through the Coop the past 2 years because it is being shipped so early and we want to hold off paying for our paper until next year's budget which starts September 1. Therefore, we found a place where we can order at any time between May and August and accept delivery but not have to remit payment until after 9-1.
    • less steps when ordering
    • Simplify the delivery options and charges. Make available the option of having cases delivered without being on pallets.
    • I don't like that the PO changes.
    • nothing--Craig has done an outstanding job!
    • quantities are sometimes hard to decipher
    • Would be nice if there was a more convenient way to match up coop numbers and product or item numbers for sorting purposes.
    • The only complaint I receive is the colors/names change and is hard to find the same color year after year.
    • short informative how-to videos for frequently asked questions, perhaps on a you-tube channel? (email was sent to user with URL of our YouTube videos).
    • provide better sorting tool
    • Some of the items are higher priced than to buy from an independent store.

Discussion

Paper Survey results were shared with the committee.

3.A.II. Specials Buys
Committee Chair - Paul Tedesco
3.A.II.a. ESU Adminstrator communications for outstanding invoices
Rationale

Communication from the ESU Administrator for the following schools is requested for past due invoices.

Humboldt Table Rock Steinauer Schools $312.00 Movie Licenses billed on 08/30/2016 (ESU 4)
Leigh Community Schools $292.00 Movie Licenses billed on 08/30/2016 (ESU 7)

Past Due notices where sent out the week of March 20, 2017 to these schools.  If the ESU Administrator could Please follow up with your district and request these are paid.

Discussion

Communication from the ESU Administrator for the following schools is requested for past due invoices.

Humboldt Table Rock Steinauer Schools $312.00 Movie Licenses billed on 08/30/2016 (ESU 4)
Leigh Community Schools $292.00 Movie Licenses billed on 08/30/2016 (ESU 7)

Past Due notices where sent out the week of March 20, 2017 to these schools.  If the ESU Administrator could Please follow up with your district and request these are paid.


3.B. Coop Strategic Plan
Committe Chair Tedesco
Rationale

ESUCC Coop Strategic Plan (4-17)

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

3.B.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

Committee reviewed the documentation provided regarding Bid History, Vendor Tracking, and the survey results from other states. It was suggested that vendors could be surveyed or personal calls could be made to gather information as to why vendor participation is down.



3.B.II. Strategic Plan
Committee Chair - Tedesco
Rationale

 
 

Discussion

Dave briefly discussed this strategic plan and noted that we still have several questions. It was noted that we have more line items in the catalog, yet sales are down. It was suggested that perhaps we should have fewer items in the catalog to make it more manageable. And possibly look at running buys a couple different times a year to help meet delivery and payment timelines. We also need to look at marketing bids to attract new vendors. Tedesco recommends making phone calls to vendors.

Calvert brought up the fact that Coop saves schools over 4 million per year, so a deficit of 40,000 - 60,000 is probably worth it. The other committee members agree.



3.C. Statewide Communications
Committee Chair - Paul Tedesco
3.C.I. Coop Advisory Meeting - April 28th
Committee Chair - Tedesco
Rationale

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

What topics does the Coop Committee want discussed

  1. Paper Survey Results
    1. Satisfaction of program
    2. Delivery schedule timeline?
      1. Possibility of two delivery periods
        1. Keep the current delivery period
        2. Add a new one but what time period works best?
  2. Training Preference Options
    1. In person
    2. Online Videos
    3. Zoom
    4. Other?
  3. Where do we go from here?
    1. Sourcing Solution update complete
    2. Marketplace update complete (ongoing enhancements)
    3. Website update complete (ongoing updates)
    4. What else needs improvement?

 

Discussion

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


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 1:55 passed with a motion by Calvert ESU 15 and a second by Mowinkel ESU 08 .