ESU Coordinating Council
March 04, 2015 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

Call to order

Staff: David Ludwig, Priscilla Quintana, Craig Peterson

3. Agenda Item
Committee Chair - Paul Tedesco
3.A. Agenda Item
Committee Chair - Paul Tedesco
3.A.I. Coop Vision
Committee Chair - Paul Tedesco
Rationale

AEPA collects membership fees through a formula based off total Admin fees received from vendors.  See attached spreadsheet.  Fees for January 1, 2014 to December 31, 2014 total $3,413.63 and is calculated from $127,575.32 Admin fees received from AEPA vendors.

Recommended Motion

Recommend to pay the AEPA Assessment fees for the period of January 1, 2014 to December 31, 2014 in the amount of $3,413.63.

Actions Taken

Motion Passed:  Recommend approval of the Coop Vision Statement passed with a motion by Mowinkel ESU 08 and a second by Fisher ESU 04.

Discussion

Commitments/Beliefs:

Enhance Cooperative Purchasing through effective statewide communication.
Provide equitable statewide pricing for goods and services.
Provide a user friendly sourcing and procurement system to meet the needs of member entities.
Provide statewide and nationally leveraged contracts to it’s members.
Savings realized by purchasing in quantity for present and future procurement needs.

Action Plan:

Increase the utilization of Coop negotiated contracts by all member entities by increasing communications to member key contacts.
Increase membership of Coop by actively engaging non-participating schools and other public agencies when opportunities present themselves.
Have a balanced budget by the 2018-19 year.

3.A.II. Coop Goals
Committee Chair - Paul Tedesco
3.A.II.a. Reduce the Number of PO's
Committee Chair - Paul Tedesco
Rationale

To meet this Goal Cooperative Purchasing staff have devised a plan to hold orders until the end of the order period then aggregate them by ship to location before releasing to each vendor.  This goal was addressed when vendors voiced concerns of the previous years number of orders processed during our bidding and indicated some would not bid unless we aggregated orders.

Discussion

To meet this Goal Cooperative Purchasing staff have devised a plan to hold orders until the end of the order period then aggregate them by ship to location before releasing to each vendor. This goal was addressed when vendors voiced concerns of the previous years number of orders processed during our bidding and indicated some would not bid unless we aggregated orders.

3.A.II.b. Billing responsive to District needs
Committee Chair - Paul Tedesco
Rationale

To address some of the schools concerns about payment in the current budget year and wanting to pay vendors after the September 1 new budget year Interim Director Peterson has contacted legal council to discuss options and is waiting their input.  Peterson has also discussed with these schools the following items pertaining to this topic.

  • Vendors having to carry this amount on their books for 90 plus days instead of the NET 45 defined in the Terms & Conditions
  • Schools can contact vendors to work out payment but then this would nullify the Terms & Conditions and late delivery penalties probably shouldn't be assessed.  Vendors are not required to allow late payment.
  • Schools have the option of ordering from year round Punchout catalogs but more than likely at a higher cost.
  • Some vendors this year are extending pricing and we are planning on bringing up these additional catalogs after the Annual Buy order window has closed. June 1, 2015 to February 1, 2016

Discussion

To address some of the schools concerns about payment in the current budget year and wanting to pay vendors after the September 1 new budget year Interim Director Peterson has contacted legal council to discuss options. Legal council advises to beware of becoming a "bank" to schools.

The committee discussed the possibility of moving schools to the Coop Extended Buy or year around AEPA/Special Buys, instead of "carrying" school financially.

3.A.II.c. Enhancement of Coop through Statewide communication
Committee Chair - Paul Tedesco
Rationale

January 14th School Advisory Meeting

Sent Schedule of Trainings to Schools through email

I have had many follow up emails with individuals in schools dealing with questions about user setup, workflows, trainings, and ordering.

I have also had phone conversations with schools that have stated they are not planning on ordering this year because of the late delivery issues last year and concerns with the NET 45 terms.

Discussion

Communication across the State is improving. Craig will be visiting each ESU in the near future.

3.A.II.d. Effective statewide training
Committee Chair - Paul Tedesco
Rationale

I have conducted trainings on how to place orders for the Annual/Paper buy and year round catalogs through ESM for the Nebraska ESUCC Cooperative Purchasing.  We covered how to manage users, edit/correct location addresses, how to define workflows/approval processes, and how to extract your schools orders after they have been submitted. There was time for questions and I shared changes for this year.  I offered multiple time slots to accommodate varying schedules and asked to join the session that best fit their needs.
 
New Business Managers/Office Personnel with no prior experience utilizing ESM
February 2nd 2:30p.m. (5 participants)
February 11th 9:00a.m. (14 participants)
February 17th 1:30p.m. (25 participants)
 
Refresher for Business Managers/Office Personnel with prior experience utilizing ESM
February 11th 1:00p.m. (25 participants)
February 11th 3:00p.m. (25 participants)
February 12th 2:30p.m. (17 participants)
February 17th 9:00a.m (25 participants) 
February 19th 2:30p.m. (18 participants)
 
 
 
 

Discussion

Participation has been great. Trainings have also been recorded and are available on Coop's website.

3.A.II.e. Develop a "user friendly" environment
Committee Chair - Paul Tedesco
Rationale

Met with Mind Shine Technologies on 02/27/2015 to discuss a possible partnership for development of Sourcing and Procurement solutions.

Continue to investigate solutions by setting up Demos with Coupa on 03/02/2015 and Equal Level on 03/17/2015.

Discussion

Craig and the Coop staff continue to evaluate sourcing and procurement solutions.

3.A.II.f. Ensure on-time delivery
Committee Chair - Paul Tedesco
Rationale

  • Changed delivery of Paper order to be separate from the Annual Buy.
  • Changed timeline of Annual buy to begin earlier and end earlier so resolution of late items can still be addressed before the beginning of school.

3.A.III. Program Updates
Committee Chair - Paul Tedesco
3.A.III.a. Annual Buy/Paper Buy
Committee Chair - Paul Tedesco
Rationale

Interboro has disputed Nebraska ESUCC Coop's decision to not award the bid to them on a number of items.  Based on their response and past history with Nebraska ESUCC Coop we have turned this over to KSB School Law for all future communications with Interboro.

Catalogs have been created by Coop staff with the Paper and Annual catalogs complete, uploaded to ESM, and configured on shop pages.  The order period for Paper began on Monday February 2nd and will close March 16th.

Annual Buy order period began on February 23rd and will close on April 10th.


World Book Catalog has been created and will be configured on shop pages for each ESU or Schools based on each ESU's survey response.

We will be working with ESM  to enable extended pricing catalogs beginning June 1 and run these until February 1.  Some vendors have increased their bid price by a percentage and others have held their current bid price.

Discussion

Annual Buy order period began on February 23rd and will close on April 10th.

3.A.III.b. Special Buys
Committee Chair - Paul Tedesco
Rationale

The attached document references the latest Food program commitments by school and total purchases through February.  Schools should be at 73% of "YTD % Usage" for their yearly committed amount to be on track for purchases for the year.

  • Schools that take the Foodservice Challenge.
    • Provide Sysco with one month of invoices or purchase reports from vendors outside of the ESUCC Cooperative Food program.
    • Sysco will conduct a market basket and generate a Savings Summary for the district for that month.
  • Program year runs from July 1 to June 30.

Attachments
3.A.III.c. AEPA
Committee Chair - Paul Tedesco
Rationale


3.A.III.c.-. Recommend Approval of Quill AEPA Contract
Rationale

Nebraska Coop has received the attached AEPA Quill contracts IFB #015-A Office Supplies, #015-B Instructional School Supplies, #015-C Custodial Equipment Supplies.  This bid was awarded to Quill at the AEPA December winter meeting in San Diego.

Attachments
Recommended Motion

To have ESUCC Executive Director sign contracts for AEPA approved vendor Quill (AEPA IFB #015-A Office Supplies, #015-B Instructional School Supplies, #015-C Custodial Equipment Supplies), upon favorable review by ESUCC attorney.

Actions Taken

Motion Passed:  To have ESUCC Executive Director sign contracts for AEPA approved vendor Quill (AEPA IFB #015-A Office Supplies, #015-B Instructional School Supplies, #015-C Custodial Equipment Supplies), upon favorable review by ESUCC attorney. passed with a motion by Fisher ESU 04 and a second by Calvert ESU 15.

3.A.III.c.-. Fourth Quarter Sales
Rationale

Brenda has been collecting the sales from AEPA vendors for our fourth Quarter report.  

4th Quarter AEPA sales = $1,005,972.42 compared to $1,026,356.02 last year.

4th Quarter Special buy sales = $175,545.33 compared to $131,551.47 last year.

Admin fees earned in 4th Quarter = $24,321.81

Attachments
Discussion

4th Quarter AEPA sales = $1,005,972.42 compared to $1,026,356.02 last year.

4th Quarter Special buy sales = $175,545.33 compared to $131,551.47 last year.

Admin fees earned in 4th Quarter = $24,321.81

3.A.IV. Future Efforts
Committee Chair - Paul Tedesco
Rationale

Potential future buys or projects are:

  1. Follet and an Inter Governmental agreement with the State of Kansas.
  2. Investigating a special buy with GoGaurdian which is a chromebook webfiltering solution so that schools can filter these devices both at the school and at home.  Iowa has also negotiated a similar buy with GoGaurdian and receives increased volume discounts.
  3. Revisiting the Adobe ETLA agreement and have put Steve Williams in contact with Adobe and their legal council to see if we can come to an agreeable agreement without any minimums included in the legal document that ESUCC would sign.
  4. The IMAT group would like to investigate negotiated pricing for Ebsco and other Reference Database subscription materials that schools are currently purchasing.
  5. Track Projects
    1. Discussed with Valentine Community Schools their track project and notified the AEPA vendor Sports Surfaces Distributing of the project.
    2. Discussed with an ESU 17 school their track project of potentially $900,000 to include a track surface and lighting.  I spoke with the Architectural Firm and sent them a list of vendors to put on their list of possible vendors.
  6. City of Lexington is looking at building an indoor activity center with an artificial turf surface.  I have made initial contact and left a message but have not had any discussion yet with any officials in Lexington.

As you hear of building projects with in your school districts have them contact me or send an email to let me know about the project and I will contact the school to see if there is any way we can help save them locate currently vetted vendors and to save them dollars on the project.

Discussion

As you hear of building projects with in your school districts have them contact Craig or send an email to let him know about the project and he will contact the school to see if there is any way we can help save them locate currently vetted vendors and to save them dollars on the project.

3.A.IV.a. Timeline for Sourcing/Procurement solution
Rationale

Coop Timeline/Exit Tasks

The AEPA organization is also looking for a Sourcing solution and have reviewed three vendors.  They will plan on making a decision sometime in April.  Benefit of aligning to what AEPA is utilizing is both cost savings and possibly being able to leverage RFP's from other states.

I also spoke with Bob Darby form Mind Shine Technologies on 3/2/2015 after he had sat in on a discussion with a potential vendor.  His company would be interested in proposing and developing a solution that we would either own or create a business partnership with ESUCC through a cost share and then generate revenue from the solution.

Discussion

The AEPA organization is also looking for a Sourcing solution and have reviewed three vendors. They will plan on making a decision sometime in April. Benefit of aligning to what AEPA is utilizing is both cost savings and possibly being able to leverage RFP's from other states.

3.A.IV.b. City of Waverly Interlocal Agreement
Rationale

The City of Waverly passed a Resolution on February 17th to enter into an Interlocal Agreement between the City of Waverly and ESUCC for the solicitation of public bids and enter into contracts on its own behalf and to purchase supplies, material, equipment, and services.

RESOLUTION

 

WHEREAS, on March 5, 2015, at a duly convened and scheduled meeting of the Educational Service Unit Coordinating Council, also known as the ESUCC, it was recommended and deemed advisable that the Council enter into the Interlocal Agreement with City of Waverly to jointly bid and contract, for supplies, materials, equipment, and services through the ESUCC’s Cooperative Purchasing Program;

 

AND WHEREAS, consideration of the matter was a duly advertised agenda item for the said meeting of the ESUCC; 

 

AND WHEREAS, an opportunity was afforded any interested party to comment on the matter; and the ESUCC being apprised of the various aspects of the issue;

 

AND WHEREAS, the Board has determined that entering into the Interlocal Agreement is in the best interests of the ESUCC and its members and is appropriate to provide for the efficient and effective operation of the ESUCC;

 

NOW BE IT THEREFORE RESOLVED that the ESUCC’s Executive Director be authorized on behalf of the ESUCC, pursuant to this Resolution, to affix his signature to the aforementioned Interlocal Agreement and to do all things necessary to comply with said Agreement.

Attachments
Recommended Motion

Recommend approval of proposed resolution.

Actions Taken

Motion Passed:  Recommend approval of proposed resolution. passed with a motion by Fisher ESU 04 and a second by Calvert ESU 15.

Discussion

The City of Waverly passed a Resolution on February 17th to enter into an Interlocal Agreement between the City of Waverly and ESUCC for the solicitation of public bids and enter into contracts on its own behalf and to purchase supplies, material, equipment, and services

3.A.V. Fiscal Management Goals
ESUCC Executive Director David Ludwig
Rationale

Review of Financial Goals

ESUCC will approve a balanced budget beginning the 2018-19 year.  (3 years:  $149,485 deficit)

Evaluate the effectiveness of ESM and provide recommendations) for continuation of ESM or recommendation(s) of a different software provider by May 2015. 

Review, recommend and implement expanded opportunities for the Coop Purchasing Project.  

Discussion

Review of Financial Goals

ESUCC will approve a balanced budget beginning the 2018-19 year. (3 years: $149,485 deficit)

Evaluate the effectiveness of ESM and provide recommendations) for continuation of ESM or recommendation(s) of a different software provider by May 2015.

Review, recommend and implement expanded opportunities for the Coop Purchasing Project.

3.A.VI. Statewide Communications
Committee Chair - Paul Tedesco
3.A.VI.a. ESM Update
Committee Chair - Paul Tedesco
Discussion

Continuing to meet with ESM bi-weekly.

3.A.VI.b. Advisory Committee Update
Committee Chair - Paul Tedesco
Rationale

January 14th School Advisory Meeting

3.A.VII. Policy & Procedures
Committee Chair - Paul Tedesco
3.A.VIII. Approve Coop Project Director
ESUCC Executive Director David Ludwig
Rationale

Recommend the ESUCC approve the contract with Craig Peterson as Coop Director.

Recommended Motion

Recommend the ESUCC approve the contract with Craig Peterson as the Coop Director and to authorize Executive Director, David Ludwig to sign the contract.

Actions Taken

Motion Passed:  Recommend the ESUCC approve the contract with Craig Peterson as the Coop Director and to authorize Executive Director, David Ludwig to sign the contract. passed with a motion by Mowinkel ESU 08 and a second by Calvert ESU 15.

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:   passed with a motion by Tedesco ESU 11 and a second by Fisher ESU 04.