March 9, 2016 at 2:00 PM - Coop Committee Meeting

Discussion:  Meeting called to order at 2:05 p.m. Staff: Craig Peterson, Priscilla Quintana, and Colleen Lentz (DL)

Discussion:  Progress with Equal Level and Development to implement the Marketplace included the following issues or tasks. Supplier Part numbers for cXML order delivery for Brown & Saenger paper orders became apparent when an order was accidently released and B&S said they didn't receive it. They did finally find the order but it failed because Part numbers didn't match with what was in their system. This caused us to check other suppliers order delivery and fix Part numbers that we could to include the following vendors. Brown & Saenger (Both Paper and Annual Buy stores) School Specialty Troxell (verified/corrected Part numbers) Staples (switched to email order delivery) Verified all vendors can handle incorrect Part Numbers if they do receive an order that is incorrect. Test orders sent to vendors with cXML order delivery configured. Identified issues with Search connector in a Multi Vendor Go Store. Each vendor contract would need to be enabled and then it would show a vendor tile in the Marketplace and our concern was this would confuse schools on which catalog to shop from. Equal Level Development will work on fixing this for next year's catalog. They were able to fix issues of changing quantities of a requisition as it progressed through the Approval chain. Item updates in the store has been smoother with the new system, we can make corrections and changes as they are identified without creating any issues. Verifing Agency email is in each address field so that order aggregation will operate correctly.

Discussion:  Total Sales for 2015 were $5,046,647.50. Total administrative fees received in 2015 were $100,932.95 . AEPA Membership fee due for 2015 is $3013.99. This fee is scheduled to be paid on March 11th pending board approval.

Discussion:  Movie Licensing USA provides the Public Performance Site License for K12. Contractor is the licensing agent for the following major motion picture studios and their affiliates (collectively, “Studios”). Walt Disney Pictures, Paramount Pictures, Warner Bros., Sony Pictures, NBC/Universal Pictures, New Line Cinema, Lionsgate Films, MGM, Touchstone Pictures, Hollywood Pictures, Columbia Pictures, TriStar Pictures, Summit Entertainment, Focus Features, Miramax, Warner Independent Pictures, Fine Line Features, United Artists, Warner Independent Films, Paramount Vantage, and Screen Gems. Licensing would be collected through the ESUCC Marketplace with Admin fees applied and then ESUCC would be billed by Movie Licensing USA and ESUCC would bill schools.

Discussion:  Review 5 % Admin Fee that is currently being charged to vendors. Vendors used to pay a 1.45% Admin fee prior to direct delivery Schools also paid a 3.5% Coop Admin fee When we switched from delivery to ESU's to direct delivery to schools, vendors were accessed the 5% Admin fee. The one complaint we hear from vendors is that this is the highest fee in the nation from any Coop that they participate in. Vendors that I have talked with about this. Cenntinnial Sales The Brenmar Company MNJ Technologies Vendors that no longer participate in the Coop process (2012 Participants) Avid Products Baden Sports (NSAA recommended balls changed) Benz Microscope Optics Center Campbell's Enterprises (not participating because of direct delivery) Cannon Sports Commercial Art Supply D & H Distributing Company Dick Blick (didn't bid this year but expect them to next year, it was an oversight on their part) EAI Education (Eric Armin) Elgin School Supply Gaylord Brothers Henry Schein Kep Harding's Sports (Direct delivery) Midwest Computer Products Misko's (Direct delivery) MNJ Technologies National Paper & Sanitary Supply Satco Supply Standard Stationary Supply (Direct delivery) Tetra Medical Supply The Brenmar Company Video Service of America Ward's Natural Science Est. Impact of Direct delivery to schools and the Admin fee increase may be heavily weighted on the vendors. Impact when reducing Admin Fees Annual Buy Sales 5% Admin Fee 4.75% Admin Fee Difference $ 5,500,000.00 $ 275,000.00 $ 261,250.00 $13,750.00 $ 5,000,000.00 $ 250,000.00 $ 237,500.00 $12,500.00 $ 4,500,000.00 $ 225,000.00 $ 213,750.00 $11,250.00 $ 4,000,000.00 $ 200,000.00 $ 190,000.00 $10,000.00 $ 3,900,000.00 $ 195,000.00 $ 185,250.00 $ 9,750.00

Discussion:  The Custodial Prime Vendor buy is due to be rebid this year and will need to be complete prior to August. Coop Staff will begin the process of assimilating the bid to place in the IonWave sourcing solution and working with Legal to make sure all their required language is included.

Discussion:  Advisory Committee will meet on April 29, 9:30 AM via Zoom. What would you like to see as items for discussion? Please send suggested Agenda items to Craig by next Monday March 21st. Suggestions: How did Paper Buy go this year? How is Annual Buy going? What did you like or dislike? What improvements or changes would like you to see next year?

Discussion:  Coop Strategic Plan Action Items that came out of the Strategic Plan: - Contract agreement for non-ESU participants. - Describe how Coop does bidding, can be added to language of school board policies to include Coop. - 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. - Process for verification of entities that ESUCC can serve. Send to attorney for review to determine if legal entity before proceeding with inter-local. - Draft and approve talking points for ESU Administrators to utilize with School and other members. - Review growth of Coop Annually - Create Survey for Schools/Members - Create Survey for Vendors - Create Marketing flyer for Coop - Continue to pursue new contracts - Continue to Market Coop at Conferences

Discussion:  Motion adjourned at 2:48 p.m.