ESU Coordinating Council
May 02, 2017 9:30 AM
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 9:33 a.m.

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.A.I. Recommend approval to authorize Executive Director to approve/sign contracts
Recommended Motion

Recommend approval to authorize Executive Director to approve contracts/sign during months of May, June, July, August upon favorable review by ESUCC attorney

Actions Taken

Motion Passed:  Recommend approval to authorize Executive Director to approve contracts/sign during months of May, June, July, August upon favorable review by ESUCC attorney passed with a motion by Calvert ESU 15 and a second by Fisher ESU 04.

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

Annual Buy (Totals taken form Marketplace and may not include any addtions after orders where sent to vendors)
2017 Total Sales = $2,384,975.48
2016 Total Sales = $2,379,371.17

Up $5,604.31 from last year.

 

Discussion

Project director Peterson gave a brief review of total sales

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

A number of Special Buys with a deadline of May 15

  1. World Book
    1. Millard Public – last year went direct to World Book, I spoke with them about ESUCC not receiving credit for this,  also had discussion with their Media person and they plan on purchasing through the Marketplace.  Likewise the same is true for Lincoln Public.  There is no price difference for the schools other than ESUCC doesn't receive the credit.  Current Sales is $43,167
  2. Movie Licensing USA
    1. Lincoln Public placed their second order through the Marketplace for Movie Licensing USA - $18,605.  Current Sales is $66,011.
  3. Seesaw
    1. Tiered pricing setup with a May 15 deadline.  After the deadline then Seesaw will invoice based on the tier we have met as a state.  Current Sales is $2,700 (first year for contract)

Food Bid Update

  • Bid was published on April 21, 2017
  • Deadline for submission of bids is 4:00 p.m. CT May 18, 2017 
  • May 19, 2017 RFP opening
  • Awards will be made my May 26, 2017
  • New Contract year August 1, 2017

Discussion

Reviewed current special buys (World Book, Movie Licensing, and Seesaw). Schools are in the process of ordering these items. It was also noted that the Food Bid is open for vendor bidding.

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

Categories up for rebid for 2018

  • Furniture
  • Industrial Arts
  • Interactive Classroom
  • Technology Catalog

 

Discussion

Project Director and Business Manager just returned from the Spring AEPA meeting. AEPA is preparing for this year's bids.

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

  1. Coop Advisory Friday April 28, 2017
  2. Discussion main points
    1. Paper Delivery options with two time periods, may raise the cost for vendors or move the delivery date back to a later date.
    2. FOB Tailgate deliveries has been an issue this year, we may need to devise a penalty for those that do not receive this were we can penalize the vendor who in turn penalizes the Freight Company.

Discussion

Coop Advisory meeting was April 28th with good discussions. Issues to stem from this meeting included paper delivery timelines and FOB tailgate delivery issues. It was noted that providing two delivery dates for paper may affect coop pricing.

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

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

Discussion

Reviewed historical data, revenue and expenses for Coop. It was noted that Coop is looking at a budget deficit of about $85,000 for the 2017-2018 fiscal year. The amount of savings to Nebraska schools was also noted. It was suggested that in the future we may need to look at including some funds for Coop in the MSA to support the program and help cover any deficit.

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

 
 

3.E. Statewide Communications
Committee Chair - Paul Tedesco
3.E.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?

 

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

Paper Buy timeline

Coop budget deficit


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 9:57 a.m. passed with a motion by Mowinkel ESU 08 and a second by Calvert ESU 15.