ESU Coordinating Council
May 02, 2017 8:30 AM
Finance, Audit, and Budget Committee Meeting
1. Call to Order
Committee Chair Schnoes
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 8:30 AM.

Staff:  David Ludwig, Deb Hericks, Priscilla Quintana

2. Roll Call
Committee Chair Schnoes
3. Agenda Item
Committee Chair Schnoes
3.A. Approve Resolution - ESUCC Pre-Meeting Payment and Approval
Committee Chair - Schnoes
Attachments
Recommended Motion

Recommend to approve the resolution on ESUCC Pre-Meeting Payment and Approval

Actions Taken

Motion Passed:  Recommend to approve the resolution on ESUCC Pre-Meeting Payment and Approval passed with a motion by West ESU 13 and a second by Calvert ESU 15.

Discussion

Committee chair reviewed the resolution for pre-payments of bills prior to meetings.  

3.B. Approve Claims, Financials Statements, and Assets for Month of March
Committee Chair Schnoes
Rationale

 

Attachments
Recommended Motion

Approve Claims, Financials Statements, and Assets for Month of March

Actions Taken

Motion Passed:  Approve Claims, Financials Statements, and Assets for Month of March passed with a motion by Calvert ESU 15 and a second by Tedesco ESU 11.

Discussion

Committee Chair reviewed the claims, financials statements, and assets for the month of March.  

3.C. Approval of April Expenses to be paid in May.
Committee Chair - Schnoes
Rationale

The total amount of expenses for April is $152,174.35.

Attachments
Recommended Motion

Recommend motion to approve April expenses to be paid in May

Actions Taken

Motion Passed:  Recommend motion to approve April expenses to be paid in May passed with a motion by Mowinkel ESU 08 and a second by Erickson ESU 17.

Discussion

Committee chair reviewed April expenses to be paid in May.  

3.D. Monthly Staff Budget Meeting
Committee Chair Schnoes
Rationale

Monthly Budget Meeting Agenda/Notes

Discussion

Committee chair reviewed discussions from budget meeting.

3.E. Approval of June, July, August Claims as approved by Executive Director
Committee Chair - Schnoes
Rationale

Approval of June, July, August Claims as approved by Executive Director

Recommended Motion

Approval of June, July, August Claims as approved by Executive Director

Actions Taken

Motion Passed:  Approval of June, July, August Claims as approved by Executive Director passed with a motion by Erickson ESU 17 and a second by West ESU 13.

Discussion

Committee chair discussed giving Executive Director authority to pay bills through summer months.  

3.F. Approve Staff Salaries
Committee Chair - Schnoes
Rationale

Note from May 5, 2015:  Range of 3-5% for staff with the exception of Technology Director, increase 8% to get his salary for next 3-4 years to get salary comparable to other directors.

Recommended Motion

Recommend a 2-4% total package with exception of Technology Director increase for personnel deemed necessary by the Executive Director after financial review

Actions Taken

Motion Passed:  Recommend a 3.5% total package with exception of Technology Director (6%) increase passed with a motion by West ESU 13 and a second by Erickson ESU 17.

Discussion

Committee Chair discussed staff raises for 2017-2018.  It was suggested to stay in the range of 3.5% of all other ESUs.  

3.F.I. Executive Session
Committee Chair Schnoes
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.

Actions Taken

Motion Passed:  Motion to go into executive session at 8:46 AM to discuss staff raises for 2017-2018 passed with a motion by Mowinkel ESU 08 and a second by Calvert ESU 15.

Motion Passed:  Motion to come out of Executive Session at 8:52 Am passed with a motion by West ESU 13 and a second by Mowinkel ESU 08 .

3.G. Coop Budget
Executive Director Ludwig
Discussion

Executive Director shared discussion on Coop wanting to adjust the admin fee schedule.  Discussion regarding a fee to all ESUs to help off set those costs.  

3.G.I. Admin Fee VS Revenue
Executive Director Ludwig
Rationale

2017-2018 Budget Projections:

(April 26, 2017)  Based upon rough estimates within the Coop Budget, Revenue is projected at $370,000 with Expenditures at $454,690 to include a deficit of $84, 690.  As per the previous discussion within the FAB Committee, do we need to consider an ESU Membership Fee based upon the two year savings provided for ESU's and School Districts totaling $8,900,000.  Keep in mind the we used to use general fund dollars to sustain Coop, by paying for warehouse expenses.  ESU 3 still pays for warehousing expenses out of their general fund.  The Coop deficit for 2015-2016 fiscal year was about $70,000.  

Total budget deficit with 5% Admin Fee = -$84,690

Total budget deficit with 3.5% Admin Fee = -$150,000

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

 

Attachments
3.H. Approve/Accept ESUCC State Audit
Committee Chair Schnoes
Attachments
Recommended Motion

Recommend to accept the FY 2015-2016 State Audit Report

Actions Taken

Motion Passed:  Recommend to accept the FY 2015-2016 State Audit Report passed with a motion by Mowinkel ESU 08 and a second by Calvert ESU 15.

3.I. Approve Spectrum Business invoices (NASB internet/phone service)
Committee Chair - Schnoes
Rationale

Recommend to pay Spectrum Business when due to avoid continually having late fees until Board has had time to review policies.  Billing for Spectrum Business usually occurs in the middle of the month with a two week window to make payment.  Our recommendation is to allow us to pay the invoice when due and have approval of that payment at the next ESUCC meeting.  We are reviewing ESUCC Policies at this time. 

Recommended Motion

Recommend to pay the Spectrum Business invoice received in March 2017, when due, with official approval at the April 2017 ESUCC Board meeting

Discussion

The approval of the resolution will take care of the Spectrum Business invoices.  

4. Next Meeting Agenda Items
Committee Chair Schnoes
5. Adjournment
Committee Chair Schnoes
Actions Taken

Motion Passed:  Motion to adjourn at 9:06 AM passed with a motion by West ESU 13 and a second by Tedesco ESU 11.