ESU Coordinating Council
November 18, 2014 2:30 PM
Coop Committee Meeting
1. Call to Order
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
3. Agenda Item
Chair of Committee
3.A. Employment for Coop Director Timeline
Committee Chair - Paul Tedesco
Rationale

Dave Ludwig has indicated the COOP Director position will be advertised in late November and early December of 2014 with review of apps, selection of candidates to interview and interviews to take place in January 2015. The goal would be to secure a new director to begin duties in February 2015.

Discussion

Interview committee may include: Paul Tedesco, David Ludwig, Jon Fisher, Priscilla Quintana, and Brenda Konkoleski.

Board recommends that interviews be held in Ainsworth.

3.A.I. Job Description for Director of Cooperative Purchasing
Rationale

Job Description for Director of Cooperative Purchasing

Actions Taken

Motion Passed:  Motion made to approve the job description for the Director of Cooperative Purchasing as presented. passed with a motion by West ESU 13 and a second by Fisher ESU 04.

3.B. ESM Update
Committee Chair - Paul Tedesco
Rationale

Dave Ludwig, Steve Williams, Craig Peterson, Bill Mowinkel, Dan Schnoes, Brenda Konkoleski, Priscilla Quintana, and Deb Hericks met with ESM representatives Dan Corazzi and Monte Inman October 22, 2014. Many issues were discussed with at least one solid conclusion---ESM and ESUCC COOP staff will meet on a quarterly basis with means to communicate issues between meetings. ESM was asked if their pricing when the current contract runs out would stay the same, increase or decrease.  ESM indicated their pricing would not go down.

ESM Agenda and Questions Oct 22, 2014

Discussion

Interm Director Peterson gave a brief review of the meeting with ESM and the goals that were defined at that meeting. Notes/Goals are attached.

It was noted that Brown & Saenger, normally Coop's largest supplier, does plan on implementing cxml order processing this year.

Mr. Peterson shared with the committee that Pyramid School Products, normally Coop's second largest supplier, may not submit a bid this year due to the number of POs they received in the previous year. Peterson will be in contact with ESM regarding the possibility of aggregating orders to help with this type of issue. It was also noted that Commercial Art, Benz Microscope and Misko Sports will/may not submit bids this year due to the same issue.

3.C. Program Updates
Committee Chair - Paul Tedesco
Rationale

Craig will report that the bid terms and bidding documents are in the hands of the vendors with bids due into ESUCC COOP by December 12, 2014.

 

A number of changes were made to the Terms and Conditions because vendor clarifications were being requested.  Changes can be seen in Amended Bid Terms and Conditions

Actions Taken

Motion Passed:  Motion made to modify the Annual Buy Bid Terms and Conditions to reflect the aggregation of orders by school building or district. passed with a motion by West ESU 13 and a second by Tedesco ESU 11.

Discussion

The committee discussed the aggregation of orders for the Annual Buy. ESUCC/Coop will be in contact with ESM to confirm the possibility/process of aggregating orders. The final process will be communicated to all schools and vendors, and Bid Terms may be updated.

3.C.I. Annual Buy
Committee Chair - Paul Tedesco
Rationale

Craig will outline the changes to re-instate a separate paper buy with the option to still purchase paper on the regular Annual Buy. Vendors are being asked to bid for the annual buy and to submit bids on these items that would be guaranteed for year around purchasing. cXML.

  • ESM will work with the top vendors by volume to process their orders through cXML rather than orders being emailed to vendors.
  • Vendors were asked to voluntarily extend pricing from June 1, 2015 until February 1, 2016.
    • Option for pricing to remain the same
    • Option for pricing to be increased by a percentage
    • Option to not participate
  • Paper Buy Changes
    • Early delivery of full pallet orders of White 8 ½ x 11
    • 1 Pallet, 5 Pallet, 10 Pallet and 21 Pallet (Truckload) quantities
    • Single case orders of White and colored paper continue to be on the Annual Buy timeline.
    • Omaha Paper was contacted about bidding and had initially stated they had planned on bidding on the early full pallet order period.We have since then received a response that they will not be bidding this year and would take a look at it again next year.

Last month we reported there was $158,545.93 in unpaid Admin fees for the 2014 Annual Buy.  Vendors that have not paid have been notified that their bids for this year will not be accepted until they are paid in full.  As of 11/13/2004 the following vendors have the outstanding amounts listed below.

  • Elgin $159.80
  • ETA
  • National Art $6,256.34
  • Pyramid School Products $20,180.41
  • Riddell,/All American $106.65
  • Standard Stationary $687.03
  • Total Outstanding = $27,390.23

3.C.I.a. Prior Year Credits
Chair of Committee
Rationale

Prior Years Credits

- 2011 Coop Buy
Sales = $4,496,300.00
Total Credit issued = $15,375.88  (for discounts, returns and canceled
product)

- 2012 Coop Buy
Sales = $4,662,265.00
Total Credit issued = $17,327.98  (for discounts, returns and canceled
product)

- 2013 Coop Buy
Sales = $4,625,431.00
Total Credit issued = $79,869.90  (for discounts, returns and canceled
product)

- 2014 Coop Buy
Sales = $4,775,157.68
Credit issued = Because of the change of the delivery model Nebraska Coop
does not issue credits for discounts, returns, and canceled product.

2011 and 2012 we were looking at about a 99.6% fill-rate
2013 about a 98.3% fill-rate.
Keep in mind that the total credits include everything that was credited to
schools/ESUs (discounts for subs, item returned by schools, and items
canceled by schools and/or by vendors) and may not reflect the actual items
that were delivered late.

 

3.C.II. Year-Round Catalog
Committee Chair - Paul Tedesco
Rationale

In working with ESM and several vendors, Craig believes more catalogs will be on line within the next few months to all ESU’s vs only a few ESU’s.

Catalog Assignment Status

  • Conference calls with School Specialty and GovConnection have been placed to discuss moving forward with enabling catalogs for all ESU’s and Schools statewide.
  • School Specialty is showing progress and working on enabling the ESU’s that don’t currently have this catalog (ESU’s 7, 8, 9, 10, 13, and 16).
  • GovConnection seemed apprehensive in creating punch-out for all School Districts statewide but made them aware that CDW-G is 100% enabled statewide and had over $900,000 in sales this last quarter.
  • Quill; In visiting with Andrew Cohen at ESM he said this catalog will be an easy one to enable and has reached out to them to begin the process.
  • AmSan; This catalog we will only be able to enable for certain Schools since they will not deliver to all locations in the State.Status of doing this has not yet been discussed because of the other catalogs currently being enabled.

3.C.III. Special Buys
Committee Chair - Paul Tedesco
3.C.III.a. AEPA
Rationale

Third Quarter Sales Report

3.D. Future Efforts
Committee Chair - Paul Tedesco
Rationale

Craig continues to pursue alternatives to ESM in order to reduce the cost of operation for ESUCC COOP. Our hope is to have one or more alternatives operate as a pilot in 2015-2016 in at least one ESU while the other ESU’s continue with ESM in 2015-2016.

3.D.I. Marketing of Services to Other Agencies
Committee Chair - Paul Tedesco
Rationale

Marketing of Services to other agencies defined within the 2015 updated Bid Terms and Conditions Section D

Discussion

The committee discussed the possibility of marketing to other public entities (city's, etc.), per the Inter-Local Agreement Act. It was suggested to get the opinion of legal council, and make sure that all issues with schools are resolved before we move forward with adding other entities.

3.D.II. Need for Other Year Round Catalogs
Committee Chair - Paul Tedesco
Rationale

Need for other year round catalogs:

  • Art Supplies (Possibly Blick Art Materials, Commercial Art Supply, Pyramid School, National Art and School Supplies)
  • Athletic Supplies (BSN Sports,)
  • Maintenance and Shop Supplies (The Brenmar Co, Grainger, Midwest Technolog Products, Satco Supply, Egan Supply)
  • Hot Lunch Supplies
  • Science

3.D.III. Update on Advisory Committee Goals
Rationale

A brief summary of progress on the established goals follows:

1. Reduce the number of PO's
     - encourage an aggregate PO
     - submit all teacher orders per school at same time

2. Billing responsive to district needs with delivery dates in mind

3.  Continue to enhance the Coop System through effective statewide communication

4. Provide effective training throughout the state

5. Develop a "user friendly" ESM environment

6. Ensure on-time delivery

Discussion

1. Reduce the number of PO's
- encourage an aggregate PO
- submit all teacher orders per school at same time
Craig will send an email to the School Google Group indicating submission of PO’s by building or district is preferred by vendors and if a school wants to continue PO’s by teacher to please submit them all by building on the same day to the vendor.
2. Billing responsive to district needs with delivery dates in mind
Craig has visited with vendors and a few schools on this topic. Vendors have stated they are still waiting on some school payments and Schools are ignoring the terms and conditions of paying within 45 days of delivery to a.) be able to pay in next fiscal year and/or b.) waiting to receive everything on a particular PO or from that vendor.
3. Continue to enhance the Coop System through effective statewide communication
Craig has added each Admin in ESM for each school and ESU to join a Google group. ESUCC COOP will now be able to communicate changes or other updates directly to all participants. We encourage each ESU administrator to check with their schools that they have at least one contact that has been added to the Group.
4. Provide effective training throughout the state
We are still piecing together with ESM what changes have taken place in order to know the exact training needed by all participants. Hence, a schedule for training has not been set as of today.
5. Develop a "user friendly" ESM environment
The meeting with ESM on October 22nd addressed some of our concerns in this area. As a result there may be some subtle changes within ESM but I don’t foresee a substantial change to the user interface. One change mentioned during the meeting with ESM would have helped the Coop staff to assign catalogs but ESM has since said they are unable to turn this on. They will be discussing some of the recommended changes in their development meetings but there is no timeline for any changes as of yet.
6. Ensure on-time delivery
From Craig’s work with vendors, the delivery issue seems to fall in one of three categories: 1. Vendors need aggregated orders vs individual teacher orders (issues: number of drops, availability of freight carriers for the time period); 2. Vendors want a longer window for acceptable delivery times beyond the two months (We have added the possibility of a vendor to extend pricing for a catalog for year round ordering); and 3. Vendors are concerned about late payments from the schools.

3.E. Policy/Procedures
Chair of Committee
3.E.I. Approve Updates to Procedural Manual
Chair of Committee
Rationale

COOP Procedure Manual

Recommended Motion

Recommend approval of updates made to procedural manual

Actions Taken

Motion Passed:  Recommend approval of updates made to procedural manual passed with a motion by Mowinkel ESU 08 and a second by Fisher ESU 04.

3.E.II. Delivery of Procedure Manual to Statewide Stakeholders
Chair of Committee
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 made to adjourn passed with a motion by Fisher ESU 04 and a second by Mowinkel ESU 08 .