EXECUTIVE COMMITTEE MEETING Tuesday, March 25

Transcription

EXECUTIVE COMMITTEE MEETING
Tuesday, March 25, 2014
3:00 p.m.
Hotel Albuquerque, Albuquerque
Potter’s Room
In conjunction with
New Mexico ASBO Spring Budget Conference
AGENDA
I.
Call to Order
II.
Roll Call
III.
Approval of Agenda*
IV.
Approval of Minutes – February 13, 2014
V.
Agency Communications
A. Partnerships – T.J. Parks
1. NMCCS – Dr. Elsy Susana Diaz
2. NMCSA – Gloria Rendon
3. NMPED – Paul Aguilar
4. NMSBA – Joe Guillen
5. Higher Ed (4 yr) – Dr. Michael Morehead
6. Higher Ed (2 yr) – Dr. John Madden
B. Finance – Mike Chambers
C. Scholarship – Adan Delgado
D. Nominating – Mike Chambers
E. Policy – T.J. Parks
F. Executive Director Relations/Kitchen Cabinet – Mike Chambers
VI.
Program Overview/Reports
A. Professional Services
B. Participating Entities
VII.
Administrative Overview
A.
Administrative Reports
1.
(Deputy
Executive Director)
Directors
a.
Robin Strauser*
(Ancillary)
b.
Linda Sink*
(Procurement)
c.
Dotty McKinney*
(Finance)
d.
Joe Valencia*
(REAP)
e.
Ruben Mirabal*
(Technology)
f.
Jonathan Maple
(Southern Services)
g.
Jim Barentine*
(Food)
h.
Lori O’Rourke*
2.
Executive Director*
a.
Out of State Partnership
b.
Budget Recommendations
c.
Member Service Credits
B.
Personnel
1.
Staff Contracts and Resignations*
C.
Consent Agenda
1.
Approval of Checks*
2.
Profit and Loss and Balance Sheets*
3.
RFB and RFP Awards*
VIII.
Setting Next Meeting Dates
A. Executive Committee Meeting, Thursday, June 5, 2014 at 3:00 p.m., Albuquerque
(location TBD) (in conjunction with NMSBA School Law Conference)
B. Executive Committee Meeting, Tuesday, July 22, 2014 at 12:00 p.m., Hotel
Albuquerque (in conjunction with NMCEL Annual Conference)
C. Executive Committee Meeting, Monday, October 20, 2014 at 3:00 p.m., Embassy
Suites, Albuquerque (in conjunction with CES’ annual Facility Manager’s Training
Workshop and Symposium)
IX.
Adjournment
All items on agenda are subject to action by CES Executive Committee
*
Included in Advance Packet Mailing
COOPERATIVE EDUCATIONAL SERVICES
MINUTES
February 13, 2014
The Executive Committee meeting of the Cooperative Educational Services (CES) was held February
13, 2014 at La Choza Restaurant, Santa Fe.
Call to Order
The regular meeting was called to order at 5:50 p.m. by President Elect T.J. Parks. Notice of the
meeting had been sent to all Executive Committee members 10 days previously.
Roll Call
The following members were present:
T.J. Parks – Hobbs
Allan Tapia – Bernalillo
Steve Barron - Dora
Brenda Vigil – Tularosa
Efren Yturralde – Gadsden
Dr. Elsy Susana Diaz - NMCCS
Dr. John Madden – NMSU-Roswell
Albert Martinez – Wagon Mound
Adan Delgado – Pojoaque
Darin Manes - Lovington
President Elect
Region IV
Region V, Secretary
Region VII, Treasurer
Region VIII
Executive Director
NM Association of Community Colleges
Region III
Region II
Region VI
The following members were absent:
Mike Chambers - Magdalena
Stan Rounds – Las Cruces
Gloria Rendon – NMCEL
Joe Guillen – NMSBA
Paul Aguilar – NMPED
Vernon Jaramillo – Cariño de los Niños
Dr. Michael Morehead – NMSU
Kirk Carpenter – Aztec
President
Past President
Executive Director
Ex- Officio Member
Deputy Secretary of Finance & Operations
Past President
NM Higher Education Department
Region I
Cooperative Educational Services (CES)
Executive Committee Meeting Minutes
February 13, 2014
Page 2
The following non-members were present:
David Chavez
Jonathan Maple
Jim Barentine
Ruben Mirabal
Dotty McKinney
Joseph Valencia
John Tortelli
Lori O’Rourke
Swashant’e Dillon
CES Executive Director
CES Director of Technology
CES Director for Southern Services
CES Director of NMREAP
CES Procurement Manager
CES Finance Manager
CES Procurement Facilitator
CES Business Office Specialist
CES Executive Administrative Assistant
Quorum
CES Board Policy states that attendance by one third of the Executive Committee members
constitutes a quorum. This was, therefore, a duly convened meeting of the CES Executive
Committee.
Approval of Agenda
A motion was made by Steve Barron and seconded by Brenda Vigil to accept the agenda as is. The
motion was accepted and passed unanimously.
Swearing in of New Members
Lori O’Rourke, from CES, swore in Albert Martinez from Wagon Mound Public Schools and Darin Manes
from Lovington Municipal Schools.
Approval of Minutes
A motion was made by Albert Martinez and seconded by Efren Yturralde to approve the minutes of
October 21, 2013. The motion passed unanimously.
February 13, 2014
Page 3
Agency Communications
The following reports were made:
Partnerships
NMCCS
Dr. Elsy Susana Diaz was present; no report was given.
NMCEL
Gloria Rendon was not present; no report was given.
NMPED
Paul Aguilar was not present; no report was given.
NMSBA
Joe Guillen was not present; no report was given.
Higher Ed (4 yr)
Dr. Michael Morehead was not present; no report was given.
Higher Ed (2 yr)
Dr. John Madden reported on the State Lottery for two and four year colleges. The State
Lottery doesn’t have enough money to move forward and it’s still awaiting the governors’ approval.
The lottery won’t make it through the current year without supplemental funding. There is
assurance that supplemental funding will be approved, therefore, Dr. Madden’s school is willing to
front the money and then get reimbursed; otherwise the school isn’t prepared to front the money.
There are a variety of changes being proposed in regards to the State Lottery eligibility requirements
and scholarship amount received. They are:
1) The eligibility issue – Who gets to have a lottery scholarship; Should only need based
students receive a lottery scholarship?
2) How do you keep your lottery scholarship - There is talk about raising the grade point
average for the eligibility requirement from 2.5 to 2.75, 3.00, or 3.25. There’s a separate
piece regarding the number of semester units completed. It’s currently 12 and there’s a
push to make it 15 in order for students to finish quicker.
3) Limit the length of the scholarship -The current limit is eight semesters with efforts to
reduce that number to seven or six.
4) Limit the amount received per recipient; maybe have every recipient receive $1,000.00.
February 13, 2014
Page 4
If none of these compromises can be made, whatever the money is, it will be divided amongst
students who are eligible and they will receive a percentage of their tuition. The best guess right
now is two thirds. No matter what school you attend you will only receive partial benefits.
Dr. Madden is not sure what the future holds for Dual Credit, but expressed the importance of the
program.
A future issue deals with remediation. Schools are getting hammered by legislation because of the
amount of remediation that is being done. Going forward Superintendents will need to meet to
discuss curriculum so that it aligns with higher education to lower the amount of remediation
classes being taken.
After Dr. Madden’s report, T.J. Parks asked if students could receive a lottery scholarship if they did
not have a high school diploma. Dr. Madden was not sure of the answer. However, Jim Barentine
was aware of the answer, which was that students were not eligible for the scholarship unless they
had a high school diploma.
Finance Committee
No report was given; David will discuss the budget preparation timelines during the Executive
Director’s report.
Scholarship Committee
David reported that traditionally what has happened at CES is the scholarship from CBA, one of CES’
procurement partners, has gone to an employee at the home district where the president is employed. T.J.
Parks asked David if Mark Chambers knew who that person would be. David replied that Mike Chambers will
get back to him with this information.
Nominating Committee
No report was given
Policy
No report was given by T.J. Parks. David discussed the tradition of how the policy has been
reviewed in the past. The Policy Committee, of the Executive Committee, allowed the directors of
CES to review the policy and make recommendations for changes. David would then reach out to
T.J. Parks to schedule a meeting or meetings with the Policy Committee and CES directors to
discuss the recommendations. David asked if CES could continue with this practice. T.J. Parks
approved the continuance of the past practice of policy reviews.
February 13, 2014
Page 5
Executive Director Relations/Kitchen Cabinet
No report was given.
Program Overview/Reports
The following reports were made:
Procurement Certification Update
David reported that five regional meetings took place and Dotty presented the changes to the
Procurement Code. There has been some work by a subcommittee to begin putting together the
requirements for the Chief Procurement Officer training. Dotty will participate in this
subcommittee.
Dotty reported that the Procurement Reform Oversight Taskforce training subcommittee had their
first meeting on February 13, 2014 and worked on a timeline and a tentative curriculum that they
will be working towards. The committee will be rolling out 16-18 hours of instruction online with a
test to follow. The hope is to have this completed by January 2015. The taskforce will meet again
on February 28, 2014.
Facility Renovation Update
David reported that the renovations at CES have been completed.
CES Expansion Update
David reported visiting Denver, Colorado, along with Robin Strauser and Jim Barentine, to discuss
the possibility of Colorado using CES’ contracts. The revenue would be shared (one percent for
both CES and Colorado). David would need to get approval from the Executive Committee to be
able to extend CES’ contracts to Colorado.
There have been similar conversations with Kansas. They expressed wanting to do the same as
Colorado. The efforts would not be as comprehensive as Colorado’s due to Kansas having more
personnel.
Texas also shares the interest of Colorado and Kansas.
Visitation – New Superintendents
David reported during the first semester him and Jim Barentine visited new superintendents in
Southern New Mexico. David is currently conducting visits with new superintendents in Northern
New Mexico. David and Linda Sink are visiting Ancillary Directors that are using CES’ ancillary
services. David and Linda are also visiting with Charter Schools.
February 13, 2014
Page 6
CES PSFA Update
David reported that he along with Dotty McKinney and Robin Strauser met with part of the PSFA
staff (Mr. Robert Gorrell and Mr. Shatona Martin) and talked specifically about David’s impression
of PSFA not allowing school districts to use CES contracts. David did not get the impression from
Mr. Gorrell that this was occurring. The directives that the regional manager’s have been given is to
not approve the use of CES contracts.
David didn’t know if they made any headway at the meeting but that there didn’t seem to be any
resistance from the new people at PSFA. Hopefully there will be a change in the decision of
allowing districts to use CES contracts.
Regional Meetings
David proposed a change and hopes that it is a welcomed change. CES would still need to provide
the audits to school districts, and would do so electronically. David would prefer to have regional
meetings that have resources available to the Districts where actual training is being received.
David asked that the Executive Committee let him know if this is not the direction that they’d like
to see the regional meetings take.
Brenda Vigil expressed that the way the regional meeting was held this year was very beneficial.
David suggested continuing with the present format of the regional meetings if the Executive
Committee were in agreement. There were no objections to this recommendation.
Administrative Reports
Directors
Robin Strauser, Deputy Executive Director, was absent, however he provided a written report.
There was no discussion on this report.
Linda Sink, Director of Ancillary Services, provided a written report. There was no discussion on
this report.
Dotty McKinney, Procurement Manager, provided a written report. T.J. Parks asked if there were
any major changes in vendors. Dotty informed T.J. Parks of the award of JOC contracts in late
November, 2013 and that there were several awards regionally.
Joe Valencia, Manager of Finance, provided a written report. David reported that CES is running
over six percent ahead of last year at the same time on the financial side. T.J. Parks asked David
when the Colorado and Kansas contracts would take effect. David replied that Kansas is already
using one of CES’ contracts. In regards to Colorado, he hoped for July 1, 2014.
February 13, 2014
Page 7
Ruben Mirabal, Director of NMREAP, provided a written report. There was no discussion on this
report.
Jonathan Maple, Director of Technology, provided a written report. T.J. Parks asked Jonathan if
there was a launch date for the new web portal. Jonathan replied that the launch would take place
early to late March, 2014. There will be a presentation at the March Executive Committee meeting.
Jim Barentine, Director of Southern Services, provided a written report. Jim announced his new
Administrative Assistant, is Leah Montaño. She will support Jim for five hours per week.
Executive Director – David Chavez
Member Service Credits
David surveyed superintendents and asked if they would like member service credits to be
used differently. The superintendents’ response was that they’d like no change to me made
in the dispersing of member service credits. Mr. Mike Chambers’ survey concluded that
superintendents would like the funds to go towards a research project.
David’s recommendation based on the survey would be to continue the current practice of
distributing member service credits.
Breda Vigil agreed with David’s recommendation.
Out of State Partnership
David would like permission from the Executive Committee to continue exploring the
partnership with Colorado, Kansas and Texas and develop a business plan to be presented
at the March, 2014 Executive Committee. There was no objection to David’s request.
Budget Timeline
David asked for the approval of the budget timeline. The finance committee would have
two meetings to review CES’ recommendations on the budget. The final recommendation
would be made to the Executive Committee at the June, 2014 meeting. A motion was made
by Adan Delgado and seconded by Brenda Vigil. The motion passed unanimously.
Purchase License to Support Common Core State Standards
David presented the Executive Committee with a handout that provides different modules
that you would be able to access as a school district. The license fee for CES would be
$35,000.00, which would be prorated back to school districts.
David would like permission to invest $35,000.00 to purchase the license. He’s proposing
that this venture not be a revenue generator but a service to schools. The charge to schools
February 13, 2014
Page 8
would be calculated by the number of students enrolled at a particular school, a similar
model as used to assess schools for REAP.
A motion was made by Albert Martinez and seconded by Dr. Elsy Diaz. The motion passed
unanimously.
Executive Director’s Evaluation – Executive Session
There was no action taken during the Executive Session. The Executive Committee extended
David’s contract by one year. A motion was made by Adan Delgado and seconded by Steve
Barron. The motion passed unanimously. A roll call vote was made after the motion.
Food Sales Report
David reported that CES did not replace the Food Facilitators position. He informed the
Executive Committee that Lori O’Rourke has been handling some of these responsibilities.
David asked Lori to follow-up with districts that had any concerns and do volume reporting
to see if CES was staying on the same path as before.
Lori discussed issues with Sysco deliveries at school districts. However, Sysco is striving to
correct this problem.
Lori addressed that although the dollar volume has gone down, there is still a profit. The
reason for this is that CES is not paying a person to head the food program.
Lori hoped that Sysco would see where things have gone wrong and make an improvement
to provide better service. This in return will attract districts to use Sysco.
Personnel
A motion was made by Steve Barron and seconded by Brenda Vigil to accept the Personnel Report
(Staff Contracts and Resignations) as presented. The motion passed unanimously.
Consent Agenda
A motion was made by Steve Barron and seconded by Brenda Vigil to accept the Consent Agenda
(Approval of Checks, Profit and Loss and Balance Sheets and RFB and RFP Awards) as presented.
The motion passed unanimously.
After the approval of the Consent Agenda, David brought up the need to renew CES’ three year
plan. The items that would need to be addressed are: the strategic plan, validate the present value
statements, mission statement and vision statement, or modify the statements as deemed
necessary. The Executive Committee would also be involved in the SWOT analysis. David suggested
meeting on March 25, 2014, prior to the Executive Committee meeting.
February 13, 2014
Page 9
David proposed having the March 25, 2014 meeting begin at 12:00 p.m. instead of 3:00 p.m. A
motion was made by Albert Martinez and seconded by Dr. Elsy Diaz. The motion passed
unanimously.
Setting Next Meeting Date
The next Executive Committee Meeting will be on Tuesday, March 25, 2014 at 12:00 p.m., at the
Albuquerque Hotel, Albuquerque (in conjunction with New Mexico ASBO Spring Budget
Conference).
Adjourn
A motion was made by Albert Martinez and seconded by Steve Barron to adjourn the meeting at
7:35 pm. The motion passed unanimously.
Respectfully Submitted,
Steve Barron, Secretary
Attest:
Mike Chambers, President
Cooperative Educational Services
*************
Item VII.A.1.a. Administrative Reports – Robin Strauser
Marketing:
The marketing team is in the process of reviewing the printed material used to market CES to
update the information where needed and to freshen the look. Three of the team members
have been trained in Adobe Photoshop. This will be a great help in freshening and developing
new marketing material.
We continue to reach out to those entities that are not members of CES. This has resulted in
gaining 4 new members since we last met. We are also meeting woth existing members to
bring them up to date on all the goods and services CES has to offer. The general response has
been, “I didn’t know CES did all that”.
Human Resources:
CES has gotten requests for business managers to fill in as needed. CES is in the process of
recruiting people in this area. If you know of anyone that would be available, please let know.
Finance:
CES is on a solid track to exceed last year’s record revenue. PO’s are up over $45,000,000 for
the same period last year. Accordingly, profit is up also.
Joe gives more details in his report.
*************
Item VII.A.1.b. Administrative Reports – Linda Sink
The Ancillary meeting held on February 22, 2014 which included the three trainings described in
my last report, were well attended and created excitement for the upcoming training CES will
sponsor on ADOS2. The meeting after the trainings went very well and included updates on our
new electronic system and the legislative session. David shared information about the reasons
for our meetings and about our trips to visit districts and charters. He discussed some of the
information and comments that the directors, superintendents and principals are sharing with
us during the visits. One example was the concern that the evaluations in the past didn’t go
directly to the Directors of Special Education but was given out by the ancillary staff. David let
the staff know that we will be sending a revised evaluation directly to the Directors and
whomever else they request.
Also discussed in my last report is the Special Education Law Conference we are holding on April
9, 2014. Over 50 people have signed up for this event already so we are very excited about the
positive response.
Jacque Archuleta-Staehlin will be our speaker – she is a lawyer who specializes in special
education law and has a great reputation as a speaker. Our hope is to have close to 100 people
attend our conference!
*************
Item VIII.A.1.b. Administrative Reports – Linda Sink
Summary of the Climate Action Team Meetings
The CES Climate Action Team met on March 11, 2014 and reviewed the Training Matrix with the
facilitator. The training matrix includes Career Pathway Development, Management Coaching,
Certificate Training, Professional Development, and Cross Training. Also included are a
Compensation Plan and Communication Plan. It was suggested that we bring in a motivational
speaker and survey staff on the types of training they would be interested in attending. Some
of the staff has expressed an interest in Advanced Excel Courses, CPP Training, Photoshop and
Certified Procurement Officer Training.
A compensation study is being done by Jim Barrentine who will present the findings to our staff
in the near future. Some of the CAT members volunteered to help develop the Communication
Plan with David Chavez. The team members were each given assignments in each area of the
matrix and will report on their progress at the next meeting in two weeks.
*************
Item VII.A.1.c. Administrative Reports – Dotty McKinney
Item (I)
2014 Solicitation Listing of RFPs/RFBs
Attached, please find the current listing of tentative solicitations CES will be issuing
through June, 2014 for your review. This list is summarized below. We anticipate
that there may be other solicitations added to the schedule as we identify new
products and services to offer. We also recognize that it may be necessary to revise
the solicitation schedule based on discovery of other urgent needs of CES Members
and Participating Entities. We appreciate and encourage any feedback and
recommendations which the Executive Committee members and Participating Entity
representatives may have relating to current and/or future solicitations.
Item (II)
Update of current and ongoing procurement activities
RFP 2014-001
Category 1 – Gasoline & Diesel, rack prices based on closest location
Category 2 – Propane – No Response
Proposals will be evaluated the week of March 17, 2014,
Tentative awards will be announced the week of March 24, 2014.
2014-003
Pacific Office Automation GSA and Konica Minolta Contract
Staff is still working on final contract negotiations
2014-004 AEPA IFB
The following contracts were awarded by AEPA members at the December 2013
meeting held in San Antonio, Texas. Staff is in process of awarding CES
contracts.
Furniture
Staples
School Specialty
Interior Systems, Inc.
Industrial Arts CTE
Midwest Technology Products
School Specialty
Interactive Classroom
Troxell
Mass Notification System – No bids received
MRO Supplies – No bids received
Sports Equipment and Supplies
School Specialty
BSN Sports
Technology
MNJ Technologies Direct
CDWG
RFP 2014-005
Career Technical Education Needs Assessment for PED
Preliminary award has been made to Southwest Regional Education Board
(SREB) whose home office is located in Atlanta, GA. Final award will be
announced March 18, 2014.
RFP 2014-006
Category 1 – Door Locks, Keys and Locksets and Access Control Systems
Category 2 – Employee Time and Attendance System, Hardware and
Maintenance
Category 3 – Health and Medical Supplies, Equipment, Emergency Medical
Equipment and Related Services
Category 4 – Physical Education, Athletic, Recreational, Health/Training
Equipment and Supplies, Uniforms related Sports Equipment
We received 19 responses to this solicitation. Evaluation Committee will
convene the week of March 17th, 2014. Preliminary award will be announced
the week of March 24, 2014.
RFP 2014-008
PARCC Assessment devices, browsers and tools to include Desktop, Laptop,
Netbook, and Thin Client/VDI Computers, Tablets, Input Devices,
Headphones/Earphones and Microphones, Accessories; Instructor and Student
Tools/Accommodations.
This RFP will be advertised Sunday, March 16, 2014. RFPs are due in our office
on April 4, 2014.
RFP 2014-010
Modular Buildings
This RFP will be advertised Sunday, March 16, 2014.
Contract 2014-012
A contract was awarded to EMS Aspects, LLC, and Albuquerque Firm that
markets, distributes, and provides training for defibrillators.
Item (lll)
Ionwave e-Bidding Implementation
Staff is working on Buyer 1 Training Module, Buyer 2 Training Module is
scheduled for Friday, March 21, 2014. An announcement that ‘CES On-Line
eProcurement System is coming’ was placed in the March CES Newsletter. A
banner and link to the announcement is being prepared for the website by IT
Department.
*************
Item VII.A.1.c. Administrative Reports – Dotty McKinney
Strategic Plan Action Team Report for Goal 5: Process Improvement
Report Submitted by John Tortelli & Joe Valencia
All departments are currently using the methods and techniques they learned last fiscal year in
indentifying areas for improvement. Purchasing Department is currently using the process
improvement methodology as one of the components in the implementation of IonWave
procurement and contract management software
*************
Item VII.A.1.d. Administrative Reports – Joe Valencia
At the conclusion of February 2014, CES is showing a year to date profit of $208,829.33. CES’
Fund Balance as of February 2014 is $3,611,348.73. Fund Balance is the amount of cash that
would be remaining after CES liquidated all of its assets and paid all of its obligations according
to book value of assets.
CES’ total revenue through February 2014 is $95,727,083.93. In February of 2013 we recorded
$89,112,935.46 in revenue. This is an increase of $6,614,148.47 (6.9%) as compared to
February 2013. This increase in revenue is reflected mainly in the Procurement area. CES’ Food
program is showing revenue of $2,001,210.41; a decrease of ($125,689.08) (6.3%) compared to
last year’s revenue of $2,126,899.49. Other CES programs such as Ancillary and AEPA are also
showing an increase in revenue from this time last fiscal year. This fiscal year a new program
called Common Core was added, which has generated revenues of $45,728.16 thus far this
year. The DD Waiver program was discontinued due to continually dwindling revenues; DD
Waiver program’s gross revenue for all of last fiscal was only $16,450.08.
CES’ continues to post a positive revenue position thru 8 months of this fiscal year, I am
confident that we will maintain this trend. We have seen a (40%) increase in purchase order
volume above last fiscal year at this same time period. This is a positive indicator for continual
increase in revenues and profitability for CES this fiscal year. Our total revenue last fiscal year
was the highest recorded for CES, in excess of $130 million. I anticipate that we will exceed
those revenue earnings this fiscal year.
In regards to staffing, the Business Office is fully staffed.
***********
Strategic Issue of Diversification Report – Joe Valencia
The Diversification Committee has been working on the following initiatives:
1. Out of State Expansion – David, Robin and Jim met with Dale McCahl and John Tillman
from the Colorado BOCES about bringing CES contracts into their state. The following
outline was mutually agreed upon:
a. CES will be developing a business plan in the next 30 days and drafting an
intergovernmental agreement that will detail the revenue sharing, the marketing,
budget, financial process/tracking and identify the contracts that may be made
available in Colorado, excluding AEPA contracts.
b. CES will need to become familiar with Colorado agencies and laws that involve
procurement and construction.
c. Currently the BOCES attend two trade shows. Initially, CES will be marketed under
the BOCES banner. The BOCES were not open to using part of the shared revenue
fee for marketing.
d. July 1, 2014 is the target date for implementation, an initial goal of $5 million in
revenue was discussed.
e. David communicated to the group that Greenbush out of the state of Kansas is also
interested in CES contracts and establishing an intergovernmental agreement with
CES. Also, a meeting has been schedule with Andrew Pickens from TEXBuy out of
Amarillo to explore the possibility of expanding CES contracts into Texas.
2. Animation/Training Initiative – CES has reached out to Media Arts Collaborative Charter
School regarding this initiative. We have met with staff and a couple of the students that
will be working with us. The initial project will be an introduction to CES, who we are,
how we were formed, the goods and services we provide and describe our solicitation
and PO process, that will be accessible on our web site. There is no established time
table for completion.
3. Ancillary – Is exploring the possibility of a partnership with UNM in order to retain
interns that are being supervised by CES Ancillary Staff out in the field. We are providing
the vehicle for them to complete their on the job training but have no mechanism to
retain the staff once the OJT has been completed. A suggestion was made regarding the
possibility of CES offering a re-location fee for those areas difficult to recruit. There is
also no mechanism to compensate CES staff for the supervision of interns.
4. Social Media – David, Jonathan and Jim met to discuss the direction of the social media
and identify a process for monitoring and reviewing content before it is posted. Each
department (web master) will be posting to the social media sites and the temp being
hired to work with Jim will be charged with monitoring the treads /responses to keep
the conversations going. Jonathan has recommended that CES purchase a product called
“HootSuite” , this is a unified approach that will allow the temp staff to log into one area
and monitor all the sites and feeds instead of logging into each site individually. Leah
Montoya has been hired part-time as an Administrative Assistance to work with Jim on
this initiative.
5. P-Cards – A questionnaire has been sent out to CES procurement partners and
customers about their use/acceptance of P-Cards. The use of P-Cards for CES sponsored
conferences may be a viable option for customers.
EXECTIVE COMMITTEE MEETING
*************
Item VII.A.1.e. Administrative Reports – Ruben Mirabal
As indicated in the February 2014 report to the Executive Committee, membership renewal
response has steadily improved. There were 60 members that had renewed their membership
as of the February 20th report. Communication with districts and schools with lapsed
memberships has resulted in an increase of 10 additional renewals since the last report.
Current NMREAP membership stands at 70. This is quite good for this time of year. With spring
recruitment season just around the corner, I expect that membership will continue to increase
through the summer.
Tuesday, March 25th, 2014
*************
Item VII.A.1.f. Administrative Reports – Jonathan Maple
State of Technology at CES
The Security Matrix for the CES Web Portal has been completed. This details the specific
functionality that each user will have when they login to our website. I will demo an interactive
version of the Security Matrix if time permits.
The scope of work for this project provisioned 8 system roles, 6 core sections and 30 subsections. Below you will find a list of the System Roles, the Core Sections and the Sub-Sections
for the CES Web Portal. Not all sections will go live at the same time and some sections are
place holders for future development. An example is the "Materials" icon for Ancillary. This is a
placeholder for the Ancillary Department to build, track, check out and manage their inventory
via the secure web portal. The Ancillary Department has been strategizing ways to improve
both availability and manageability of their inventory. This system was designed to allow for
growth and accommodate new modules and features.
The current focus is creating the migration strategy to move all data from existing systems into
the new system.
Web Portal - System Roles
1.
2.
3.
4.
5.
6.
7.
8.
Administrator
Office Staff
Ancillary Staff
Professional Services Staff
Executive Committee
Ancillary Approver
Superintendent
CES Member
Web Portal - Core Sections
Web Portal - Sub-Sections (Color coded with Core Section)
Web Portal - Sub-Sections (continued)
*************
Item VII.A.1.g. Administrative Reports – Jim Barentine
The work to extend use of CES contracts to entities outside New Mexico is progressing. While
we continue to await approval of the NM Department of Finance for an amendment to the JPA,
which would support us entering other states independently, we are moving forward via
entering into mutually beneficial agreements for revenue sharing with service agencies in some
states. We have met with other service agency representatives and have worked to design a
business plan to support this expansion project. A draft MOU has been shared with the
Colorado BOCES Association for their consideration.
While I continue to travel all four regions (5-6-7-8) extensively and meet with existing members
and participating entities, that travel during the past couple of months has lessened a little
while I've worked toward completing two successful conferences and progress on other
projects.
CES, in conjunction with NMSU's Alliance for the Advancement of Teaching and Learning, held
yet another mini-conference (Shedding Light on Student Assessment), this time in Roswell on
February 19th. Presenters included Lynn Vásquez (PED PARCC Manager), Joslyn Overby (PED
End-of-Course Administrator), Cathy Kinzer (NMSU Math Education Professor), Sheryl White
(CES Professional Service Staff), and LeAnne Gandy (Asst. Superintendent, Lovington Schools).
The presented information included both New Mexico's implementation info and progress
status in regard to the PARCC and EOC assessments, as well as strategies by which school
leaders can prepare and support their faculties and students in these areas. We had 76
registrants, which was near our capacity for the venue. The participants' feedback was very
highly positive, except that regarding the venue. Apparently a stage in an auditorium worked
well for only about 2/3 of the participants. We will be keeping this in mind when planning
future events. We do, however, appreciate Dr. Madden and ENMU-R for supporting us with a
venue at no charge and a cafeteria meal that brought great reviews!
We have worked to develop department-specific Facebook business pages as the first phase of
our using social networking. At the time of this writing, we are working toward full
development and deployment of those sites as a collaborative effort of the "webmasters"
among staff in Albuquerque and the coordination/development occurring in the Las Cruces
setting. The intent is to utilize only Facebook for approximately 6-8 weeks, addressing any
structural and organizational issues before expanding next into CES' use of Twitter.
Work to recruit and place ancillary staff continues. Additional ancillary placements are currently
"in the works" in Regions 6 & 7.
Marketing efforts have included participation in:
•
Southern NM Public Facility Managers Roundtable (Alamogordo)
Collaboration efforts have included participation in meetings with:
• Alliance for the Advancement of Teaching & Learning (Las Cruces)
• NMSU College of Education Administrative Council (Las Cruces)
• Regional Education Laboratory - Southwest Alliance - SEDL (online)
Business Plan for Out-Of-State Expansion
4216 Balloon Park Rd NE
Albuquerque, New Mexico 87109
505-344-5470
March 14, 2014
CES Business Plan for Out-Of-State Expansion
TABLE OF CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY .................................................................................... 2
COMPANY DESCRIPTION.................................................................................. 4
MARKET ANALYSIS ........................................................................................... 5
PRODUCT/SERVICE ............................................................................................ 6
MARKETING AND SALES .................................................................................. 8
MANAGEMENT AND OPERATIONS ................................................................ 9
BUDGET REQUEST ........................................................................................... 10
FINANCIAL PROJECTIONS .............................................................................. 12
SAMPLE MEMORANDUM OF UNDERSTANDING ...................................... 14
1
CES Business Plan for Out-Of-State Expansion
EXECUTIVE SUMMARY
Cooperative Educational Services (CES) has been providing quality services to its members on
an ever-increasing basis since 1979. It began as a 501(c)(3) organization, converting to a Joint
Powers Agreement (JPA) among its members in 1984. Services to non-school organizations
began in 2006. CES currently serves 212 school entities and 164 non-school organizations.
While there are group purchasing organizations offering cooperative procurement in nearly every
state of the U.S., none of the large ones provide CES-like value-added services to participants.
There are also various states that have fewer cooperative procurement options than others.
CES believes that it can build upon its current successful structure and contracts by extending its
reach into other states. CES plans to partner with existing organizations in other states. This
initial Plan examines potential in three specific states: Colorado, Kansas, and Texas. CES also
has potential opportunities to enter several states, expanding its net revenues substantially.
This expansion will involve CES being flexible in order to best address the needs of each state
and partner. Marketing strategies, fee structures, order and payment processing, etc., will
necessarily differ from state to state as partnerships are formed.
CES, in its Expansion Project, plans to target as "customers" the schools, universities,
municipalities, counties, other local public bodies, and 501(c)(3)s in other states, only insofar as
the laws and regulations of both NM and the expansion states allow. The Project will initially
involve only CES' existing staff, but growing volume will soon require additional personnel.
Operations, for the five years covered within this Plan, will be accomplished from the main
office location in Albuquerque.
Budget projections indicate that revenues will outpace expenses. CES anticipates that this
Project will be profitable within its first year, experience a dip in year two with the addition of
personnel, and then experience ever increasing profitability from that point forward.
Projected Revenues & Expenses Pattern
2
Included in the Plan as a sample memorandum is a drafted MOU from which CES will work
with the Colorado BOCES Association, an intended partner, in developing a part of this Project.
The Expansion Plan indicates the soundness of this direction from a business perspective.
"Profits" will strengthen CES, enabling it to better serve its members.
3
COMPANY DESCRIPTION
Company Description:
CES was formed to provide to our members cooperative purchasing, ancillary staffing,
professional development, etc. We have been in business since 1979, beginning as a 501(c)(3)
organization and becoming a local public body via instrumentality in 1984, when the Joint
Powers Agreement to Establish an Educational Cooperative (JPA) was first approved by the
NM Department of Finance and Administration. As of 2006, through an amended JPA, CES has
added services to municipalities, counties, and other nonprofits. In 2014, we will expand our
cooperative purchasing into other neighboring states via agreements with entities in those states.
Ownership Structure:
CES is an educational cooperative formed via a joint powers agreement among New Mexico's 89
school districts, all of New Mexico's public colleges and universities, and most charter schools in
the State. The JPA includes members of two basic categories, vested and preferred.
Vested members of CES are those JPA-participating member institutions that have had continual
membership since before July 1, 1999, which consists of the 89 New Mexico school districts.
Preferred members are those that have since on or after July 1, 1999. If CES were to dissolve, all
members would be recipients of the liquidated assets on a pro rata basis. The vested members
are the only ones who would receive credit for CES value accrued prior to July 1, 1999.
Vested members, Ex-Officio members of the Board of Directors and certain Past Presidents are
those who cast votes in CES Board meetings, and only these may have representation on, or
serve on, the Executive Committee and other ad hoc committees of the Board. One third of the
vested members of the Board of Directors, or one third of the members of the Executive
Committee, constitute a quorum for the transaction of business at their respective meetings.
Mission Statement:
To provide superior services through strategic partnerships.
Goals and Objectives:
Vision Statement
To be recognized as one of the best cooperative service agencies in the country, and the provider
of choice in New Mexico.
Value Statement
• Responsiveness to customers' needs
• Providing greater value and convenience
• Providing exceptional personnel, products and service
• Personalized attention
• Adherence to high ethical standards
4
MARKET ANALYSIS
Industry Overview
While cooperative procurement is already an option available to entities in each state, there is an
opportunity to target local schools and governments within the states via collaboration with an
existing point entity (i.e., Marketing Partner) in each state, particularly entities that currently
offer cooperative procurement services to their members. The market penetration by the various
group purchasing organizations (GPOs) currently serving the states has been only informally
explored, as formal GPO-specific data is unavailable. It appears that none of the GPOs are any
stronger in neighboring states than they are in New Mexico, with the exception that some have a
stronger presence in their home locations.
Target Market
The target customers are to be governmental "participating entities" within the non-New Mexico
states, consisting of public schools, colleges, and universities, and municipal and county
governments; as well as 501(c)(3) organizations that can demonstrate financial stability.
Competition
The GPOs operating in neighboring states vary greatly in capacity and purpose. They provide
various levels of contract access with little to no supporting activities or services. There is
insufficient information available from which to determine the extent to which specific GPOs
operate in specific states. Some GPOs have self-imposed restrictions on their target markets,
some lack state-specific support or approval, and some have specific geographic aims.
Regulations
CES plans to operate only in other states that have laws and regulations allowing for cooperative
procurement through either state entity agreements with an external procurement unit (CES) or
direct purchasing through an external procurement unit (CES).
5
PRODUCT / SERVICE
Product/Service Description
CES will provide contract access to governmental entities in the Marketing Partner states, from
among its 300+ contracted vendors, for those vendors willing and able to expand their contract
availability into the Marketing Partner states. CES will also, in those Marketing Partner states
for which it is allowable/desirable, conduct solicitations with vendors from within those states to
provide goods and services there.
Pricing Structure
CES will charge cooperating vendors in Marketing Partner states an administrative fee based
upon the volume of business they conduct in those states, as negotiated with each Marketing
Partner. For each vendor taking their contract into a Partner state, specific contract pricing will
be reached through negotiations between the vendor and CES.
Fee Structure
The specific negotiations with each Marketing Partner will determine, among other issues:
• the size of the overall administrative fee to be charged;
• the division of the fee between CES and the Marketing Partner;
• the extent of CES' involvement in marketing and processing of orders/receipts;
• the potential for CES to conduct solicitations on behalf of the partnership within the Partner's
state; and
• the means of rebating and reporting.
For purposes of this Plan, which is written prior to negotiations with Marketing Partners, the
following elements are included tentatively, with Partners' approvals pending:
CO
•
•
•
•
CES and the CO Partner will each receive 50% share of a 2% administrative fee on all CO
use of CES contracts.
Both CES and the CO Partner will contribute (initially via $5000 payment each; ongoing via
withholding from revenues) the amount of 25% of their respective 50% shares into a pooled
fund to support marketing expenses, which marketing activities will be carried out primarily
by CES.
When the marketing fund balance exceeds $10,000 at the conclusion of any fiscal year, the
excess will be rebated to CES and the CO Partner on a 50/50 basis, leaving $10,000 in the
fund to begin the new fiscal year.
CES will assume responsibility for the processing of orders/invoices and will account for and
provide rebate shares on a monthly basis to the CO Partner.
6
KS
•
•
•
CES and the KS Partner will each receive 50% share of a 2% administrative fee on all KS
use of CES contracts and on all CES use of KS contracts.
CES will process orders/invoices and account for and provide rebate shares on a monthly
basis to the KS Partner for all KS contract use by CES. The KS Partner will assume like
responsibilities for all CES contract use by the KS Partner, potentially making vendors
responsible for invoicing entities and reporting volume to the KS Partner.
Each partner will perform its own marketing functions in its own state.
TX
•
•
•
CES and the TX Partner will each receive 50% share of a 2% administrative fee on all TX
use of CES contracts.
The TX Partner will process orders/invoices and account for and provide rebate shares on a
monthly basis to CES.
The TX Partner will allow CES to perform marketing functions in areas of TX not directly
under the regional umbrella of the TX Partner. Initially, CES will bear the fiscal burden of
any marketing efforts it undertakes in TX.
Participating entities in Marketing Partner states, even when served directly by CES marketing
and member service personnel, will not be assessed any administrative fees for cooperative
procurement.
7
MARKETING AND SALES
Marketing Plan
In each new state, CES will potentially
• engage willing and capable procurement partners (CES vendors) in availing "participating
entities" of their CES contracts, working with the new Marketing Partner to identify
appropriate vendor categories;
• represent the partnership by attending relevant conferences and/or trade shows each year as a
displaying vendor;
• begin face-to-face contacts with leadership and purchasing personnel at schools, counties,
municipalities, and other major local public bodies, spreading this effort gradually and
geographically;
• establish technology-based contact with leadership and purchasing personnel at schools and
other governmental entities throughout the state;
• expand website and social networking to include state-relevant sites; and
• develop marketing literature to address state-specific business
This approach is general and will be used as the basic pool of strategies. CES will adjust it to fit
the circumstances and requirements of each new Marketing Partner. For example: Colorado has
no active marketing capacity and only about 1.0 FTE of personnel to support all their
organizational endeavors, yet other Marketing Partners may have an existing marketing structure
that CES can utilize or augment to support the Expansion Project.
Sales Plan
Actual sales are to be promoted by the contracted vendors. CES will provide promotional
support for these sales through marketing of our cooperative purchasing services and contracts
generally.
8
MANAGEMENT AND OPERATIONS
The successful operation of this Expansion Project will require additional personnel but should
not require any additional facilities. Operations into the foreseeable future would occur out of
CES' main office in Albuquerque.
The following is a description of the personnel primarily involved in the Project. However, the
necessity of involving the Procurement, Technology, and Business departments of CES beyond
the addition of new personnel will be necessary. Given the available information, CES
anticipates that while this involvement is somewhat unpredictable (as to actual cost), it will be
manageable with only minimal added costs as the operation of those departments increases in
efficiency through strategic improvement and growth processes.
Management Team:
TBA, Expansion Marketing Manager
This individual will plan and implement marketing activities specific to Marketing Partner
agreements. He/she will utilize a team approach to ensure that all procurement support offered
by CES to NM entities is available to Marketing Partner state entities using CES contracts,
adjusted to the parameters of the state-specific MOUs/IGAs developed.
This individual will have experience in sales, marketing, and/or procurement. He/she will have
at least a Bachelor's degree in a related field. He/she will be amenable to frequent travel and be
able to work independently as needed. Salary will be commensurate with training and
experience.
Robin Strauser, Deputy Director; Director of Marketing
Robin Strauser will serve as consulting support to the Expansion Marketing Manager, providing
regular support and feedback to ensure success of the Project. Robin will be directly involved
with the Expansion Marketing Manager in overseeing the collaborative planning of marketing
approaches and materials suitable for the Project.
David Chavez, Executive Director
David Chavez will be the direct supervisor of the Expansion Marketing Manager.
Operations
Staffing: This Project will require the employment of an Expansion Marketing Manager fulltime at the beginning of the second year. Until that time, all Project operations will be handled
with existing staff.
Business Location: CES is located in a company-owned facility at 4216 Balloon Park Rd NE,
Albuquerque, NM. Adding satellite facilities to support this Expansion Plan is not anticipated
during its initial five years.
9
BUDGET REQUEST
Anticipated Funding Requirements
While actual funding requirements cannot be foreseen perfectly, CES anticipates that the
following budget amounts represent anticipated revenues and the expenditure support this
Expansion Project will experience for the first five years.
Budget Item
FY2015
FY2016
FY2017
FY2018
FY2019
Revenues
Projected Sales - CO
Less CO Cost of Goods Sold @98.0%
Less CO Administrative Fees @1.0% minus $5K for marketing
Net Revenue - CO
Projected Sales - KS
Less KS Cost of Goods Sold @98.0%
Less KS Administrative Fees @1.0%
Net Revenue - KS
Projected Sales - TX
Less TX Cost of Goods Sold @98.0%
Less TX Administrative Fees @1.0%
Net Revenue - TX
TOTAL NET REVENUES
5,000,000
-4,900,000
-45,000
55,000
1,000,000
-980,000
-10,000
10,000
3,000,000
-2,940,000
-30,000
30,000
95,000
7,100,000
-6,958,000
-66,000
76,000
1,300,000
-1,274,000
-13,000
13,000
3,300,000
-3,234,000
-33,000
33,000
122,000
10,400,000
-10,192,000
-99,000
109,000
1,600,000
-1,568,000
-16,000
16,000
3,800,000
-3,724,000
-38,000
38,000
163,000
14,700,000
-14,406,000
-142,000
152,000
2,100,000
-2,058,000
-21,000
21,000
5,300,000
-5,194,000
-53,000
53,000
226,000
21,100,000
-20,678,000
-206,000
216,000
2,400,000
-2,352,000
-24,000
24,000
7,400,000
-7,252,000
-74,000
74,000
314,000
69,000
71,070
73,202
75,398
4,140
4,278
1,001
14,145
76
173
366
4,264
4,406
1,031
14,925
85
178
377
4,392
4,539
1,061
16,104
95
183
388
4,524
4,675
1,093
16,965
106
188
400
1,000
3,000
5,000
1,000
1,500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
50
52
45
54
45
56
45
58
45
11,000
15,000
11,000
18,000
11,000
19,500
11,000
21,000
11,000
22,000
7,500
200
3,500
200
5,000
300
3,600
200
5,500
350
3,700
250
6,000
350
3,800
250
6,500
375
3,900
46,250
4,000
138,875
139,684
145,466
150,476
48,750
-16,875
23,316
80,534
163,524
Expenses
Personnel Services - Compensation
Salary - Managers
Personnel Services - Benefits
Retirement Contributions (@6%)
FICA Payments (@6.2%)
Medicare Payments (@1.45%)
Health/Medical Payments (@20.44% 1st yr)
Life (@0.1% 1st yr)
Unemployment Compensation (@0.25%)
Workers Compensation (@0.53%)
Purchased Professional & Technical Services
Auditing
Legal
Training/Consulting
Purchased Property Services
Communications
Cell Phone
Other Purchased Services
Marketing Expense
Employee Travel
Supplies
Software
General Supplies & Materials
Postage
Printing
Property
Fixed Assets ($5000 or less)
TOTAL BUDGETED EXPENSES
Anticipated Project Profitability
10
Use of Funds
Included within the budget is an allowance for inflation, for most expenditure categories, during
the five year period covered.
Compensation and Benefits will support the employment of the necessary Expansion Marketing
Manager, beginning in the second year.
CES anticipates management of this Project's revenues and expenditures as a separate accounting
from other CES operations, as various aspects pertinent to doing business in other states will
need accounting that is both transparent and separately traceable. For this reason, an amount is
budgeted for auditing.
Contracting across state lines will require budgetary support for legal expenses. Because CES
handles procurement on behalf of its participants, it will be necessary that CES procurement staff
receive training and consultation (with continuing technical support) regarding procurement and
contracting in states other than New Mexico.
It is anticipated that long-distance communications costs will occur relevant to this Project.
Also, the new manager will receive a cell phone stipend in line with current policy and practice.
Amounts budgeted under Other Purchased Services and Supplies are estimates of the financial
support necessary to the Project's success. The determination of these amounts is partly based
upon the experiences of the past nearly two years with the southern director addition that has
been in place since July 2012.
The Marketing Expense amount is in line with the pool of funds planned for the CO segment of
the Project ($10K) plus a small amount intended to cover possible marketing expenses in
southeast Texas.
Employee Travel takes into account that much of the travel will involve flights, which have costs
that fluctuate widely over time.
The first year of General Supplies is higher than succeeding years to accommodate purchases
that will occur as aspects of the Project are initiated, including an additional booth display and
associated materials.
Fixed assets amounts are to support technology (i.e., computer and peripherals) that will be
needed for the new personnel.
11
FINANCIAL PROJECTIONS
The following projections are based upon out-of-state expansions into Colorado, Kansas, and
Texas only. Revenues and expenses from other potential expansions have not been included due
to their uncertainty. It is expected that additional expansions that include Marketing Partners
who handle their own marketing would bring added revenues without a corresponding growth in
most areas of expenses.
After 34 years of being in business, profitability of general CES operations for FY2013 was
0.11636% of revenues. This is a clear indication of CES' existence to serve its members while
remaining nonprofit. Note that approximately 1/3 of these profits were reinvested in CES, while
about 2/3 were distributed on a pro rata basis to owning members of CES as member service
credits.
It will be in the best interests of CES' members for this Expansion Project to provide significant
profitability, which can better support CES' ability to provide quality services to its members and
increase its sustainability as an organization. For purposes of considering this Project, however,
the most important information in these projections is at the point at which the Project will reach
a break-even point, beyond which a reasonably good economy and adequate management should
only increase its profitability.
Preliminary discussions with each entity, combined with internal planning discussions at CES,
have provided the predicted revenues upon which this Expansion Plan is based. Expansion via
Marketing Partner relationships in the three intended neighboring states is predicted to reach
approximately $8M in the first year, with an overall annual growth rate of 30% in year 2, 35% in
year 3, and 40% over years 4-5.
Projected Revenue
Dollars (in millions)
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Yr 1
Yr 2
Yr 3
Yr 4
CO - BOCES Assoc
KS - Greenbush ESA
TX - Region 16 ESC
TOTAL OF THREE
Yr 5
12
Important to recognize is that the Expansion Project's net revenues, for the purpose of this Plan,
is the administrative fee (collected from the vendors who generate the revenues) retained by
CES. A comparison of the total projected net revenues with the total budgeted expenses
demonstrates that the Project will experience profitability in its first year, while marketing efforts
are undertaken using existing CES staff. During year two, due primarily to the employment of
an Expansion Project Manager, the Project will operate at a loss (estimated at $16,875) while
growing revenues climb to reach the new expenditure level. The break-even point in the Project
should occur near the end of the second year, after which revenue growth should consistently
outpace the costs of doing business.
Finding the Breaking Point
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Yr 1
Yr 2
TOTAL NET REVENUES
Yr 3
Yr 4
Yr 5
TOTAL BUDGETED EXPENSES
The obvious conclusion of the Expansion Plan, drawing from the information thus far presented,
is that the Project's long-term profitability will provide more net income to CES, allowing it to
accommodate aspects of growth that will directly benefit its members. The "profits" will support
stronger vendor capacities and relations, increased marketing effectiveness, more rapid
accomplishment of efficiency-supporting solutions, additional areas of support for members, and
improved individualized attention to members' needs through expanded customer service
capabilities. A stronger CES, put simply, means better support for its members.
13
SAMPLE MEMORANDUM OF UNDERSTANDING
Please note that this Draft MOU has been designed for use with the intended CO Marketing
Partner and has not yet been vetted by legal review.
DRAFT MEMORANDUM OF UNDERSTANDING
Memorandum of Understanding, entered into on the date of completed signatory at its
end, between Colorado BOCES Association (CBA) and Cooperative Educational Services
(CES).
RECITALS:
CBA is a 501(c)(3) organization whose mission it is to coordinate communication and
cooperation among its membership to improve the educational quality and equity of the
programs and services provided by its members to the school districts served and to develop
public awareness of and support for Boards of Cooperative Educational Services (BOCES) in
Colorado. Aligned with this mission are the efforts of CBA to provide fiscally effective and
efficient cooperative purchasing opportunities for its member BOCES and their respective
member institutions.
Under Section 24-110-201 of the Colorado Revised Statutes, cooperative purchasing is
authorized between any Colorado public procurement unit and external procurement activities
and procurement consortiums, which include tax-exempt organizations as defined by Section
501(c)(3) of the federal Internal Revenue Code of 1986, as amended. This allowance includes,
via agreement between the parties, both multiparty contracts and open-ended (i.e., indefinite
delivery, indefinite quantity) contracts.
CES is an entity (a local public body) created pursuant to the provisions of the New
Mexico Joint Powers Agreement Act (Sec. 11-1-1 et seq. NMSA 1978) and which is comprised
of approximately 200 public educational institutions. One of the main purposes for its JPA
formation in 1984 was to provide a mechanism under which tangible personal property,
services and construction for the member institutions could be purchased by CES at costs below
that which each district would otherwise have to pay if such tangible personal property, services
and construction were purchased individually by the members. Historically, utilization of this
cooperative arrangement has resulted in substantial savings to the participating members.
Under paragraph 2 of the Restated and Amended Joint Powers Agreement to Establish
an Educational Cooperative (JPA), all purchases of construction, goods and services must be
made in accordance with the requirements of the New Mexico Procurement Code (Sec. 13-1-1
et seq. NMSA 1978); however, exempted from the provisions of the Code are purchases from
an "external procurement unit" (Sec. 13-1-98A.), which is defined in material part as "any
procurement organization not located in this state which, if in this state, would qualify as a state
agency or a local public body" (Sec. 13-1-56). A "local public body'' means every political
14
subdivision of the state and the agencies, instrumentalities and institutions thereof (Sec. 13-167).
CBA and CES are mutually desirous of formalizing their relationship by the execution
of this Memorandum of Understanding. Both CBA and CES are willing to participate under
the terms and conditions hereafter set forth.
IN CONSIDERATION OF THE RECITALS and for other valuable consideration, IT IS
AGREED AS FOLLOWS:
The target "customers" (i.e., participating entities) to be addressed by marketing efforts
under this MOU will include governmental entities within Colorado, consisting of BOCES,
public schools, colleges and universities, and municipal and county governments; as well as
501(c)(3) organizations that can demonstrate credit worthiness (i.e., financial stability).
CBA and CES will jointly agree upon CES contracts to which access will be provided to
participating entities in Colorado, from among its contracted vendors, utilizing only CES vendors
willing and able to expand their contract availability into Colorado.
CES will, in categories of goods and services for which CBA and CES jointly determine
a need, conduct public competitive solicitations with vendors from within Colorado to provide
goods and services in Colorado. Nothing shall preclude CES from contracting with vendors, as a
result of these solicitations, to provide goods and/or services to entities outside Colorado.
CES will charge contracted vendors having associated sales in Colorado an administrative
fee based upon the volume of business they conduct in Colorado, equal to two (2) percent of said
volume. For each vendor with which CES has contracted for business outside Colorado, who
makes sales in Colorado through this CES/CBA arrangement, Colorado-specific contract pricing
will be reached through negotiations between the vendor and CES.
CES will assume responsibility for the processing of orders and invoices for all CES
contract use in Colorado.
CES will maintain an accounting of all administrative fees withheld from receipts for all
CES contract use in Colorado and will provide to CBA an accounting of said receipts and fees, as
well as CBA's share of collected administrative fees, on a monthly basis.
The division of administrative fees will be as follows:
• Both CBA and CES will contribute (initially via a $5,000 payment by each
partner; ongoing via withholding from received administrative fees prior to
distribution) the amount of twenty-five (25) percent of their respective received
fees into a pooled fund to support CES' marketing expenses in Colorado. The
fund will be held and accounted for separately by CES.
• When the marketing fund balance exceeds $10,000 at the conclusion of any CES
fiscal year, the excess will be rebated to CBA and CES on a 50/50 basis, leaving
$10,000 in the fund to begin the new fiscal year.
15
•
•
Any interest accruing to this marketing fund will be considered the joint earnings
of CBA and CES.
CBA and CES will each receive fifty (50) percent of administrative fees collected
on all Colorado use of CES contracts, following the withholding of applicable
marketing fund contributions as described above.
Participating entities in Colorado, even when served directly by CES marketing and
member service personnel, will not be directly assessed any administrative fees for cooperative
procurement. Except for BOCES, whose participation in cooperative procurement through CBA
requires membership in CBA, no participating entities in the cooperative procurement activities
of this MOU will be required to pay any membership fees or dues in order to participate.
In performing marketing activities within Colorado:
• CES will represent the partnership by attending relevant conferences and/or trade
shows each year as a displaying vendor. CBA will support these efforts by
providing relevant CBA materials for CES to display or distribute. CBA and
CES, if both displaying at a conference or trade show, will work jointly to
enhance the others' impact and to demonstrate the existing partnership to existing
and potential participating entities.
• CES may conduct face-to-face contacts with leadership and purchasing personnel
at existing and potential participating entities, spreading this effort gradually and
geographically throughout Colorado.
• CES may establish technology-based contact with leadership and purchasing
personnel at existing and potential participating entities throughout the state.
• CES may expand its use of websites and social networking to include partnershiprelevant sites.
• CES may develop marketing literature to address Colorado-specific business
activities.
• CBA will represent the partnership in its marketing by display and distribution of
appropriate CES materials and information. CES will support these efforts by
providing relevant CES materials for CBA's use.
• This list of strategies is not all inclusive (as either CBA or CES may undertake
other types of marketing activities), but is a representation of the known strategies
most likely to be implemented.
Actual sales of goods and services are to be promoted by the contracted vendors. CBA
and CES will provide promotional support for these sales through their marketing activities of
cooperative purchasing services and contracts generally.
CES projects that its personnel supporting the activities of this MOU will be existing CES
staff for at least the first year. When CES determines the need for additional personnel to
support the activities, CES will bear sole responsibility for the employment and compensation of
said additional personnel.
CES is located in a company-owned facility at 4216 Balloon Park Rd NE, Albuquerque,
NM, and will operate primarily from this location in conducting the activities of this MOU.
16
Nothing will preclude CES from opening and operating satellite facilities within Colorado as
CES determines a need.
Any approved Colorado participating entity may make purchases of tangible personal
property, construction and services under the terms and conditions applied within CES vendor
contracts. Approved participating entities are those who have successfully applied for
participation in the use of CES contracts, said application to be of a form to be jointly determined
by CBA and CES. An applying participating entity may be required to provide documentation of
its IRS non-profit status, as applicable, and of its fiscal capacity to remit promptly for purchases
made.
CBA and CES agree that any participating entity utilizing a CES contract will make
purchases based upon said contract through CES rather than from the vendor directly, and
invoicing and payments processing will be conducted by CES, unless CES makes other
arrangements with a specific vendor and publishes said arrangements. Delivery of the tangible
personal property, construction or services shall be directly from the vendor to the ordering party.
CES will notify CBA of all proposals or bids on which contract awards have been made
where contractors have agreed that Colorado participating entities may participate on the same
terms and conditions.
CES shall provide CBA with a copy of the original vendor contract that is being made
accessible to Colorado participating entities, as well as any and all vendor contract updates.
Said copies shall be provided within a reasonable time after award.
Both CBA and CES will be responsible for reviewing contracts awarded through
competitive solicitation to determine, to their own satisfaction, that the contracts comply with
any and all applicable rules, regulations and statutes applicable to competitive
procurement and cooperative purchasing in their respective states.
CES shall permit the authorized representative of CBA to inspect and audit all Requests
for Proposals and Requests for Bids published by CES, and all responses from vendors or
contractors which have resulted in awarded contracts. The sharing of documents for inspection
and audit will typically occur via a digital online mechanism.
Nothing in this MOU shall be construed to prohibit either CBA or CES from entering into
a separate procurement process and awarding a contract to any vendor or contractor for any
commodity.
Both CBA and CES agree to defend and hold the other harmless from any claims arising
out of the activities covered by this MOU, to the extent permitted by law in their respective
states.
Failure of either CBA or CES, and/or its members, to secure performance from a vendor
accessed through the activities of this MOU places no liability or obligation on either party
and/or its members.
17
CES makes no warranty, guarantee, or promise, express or implied, that a participating
vendor contract complies with applicable Colorado rules, regulations or statutes, or as to a
vendor's quality, competence or fitness for use by any Colorado participating entity.
CES shall not be a party to, nor have any liability relating to, any claim or controversy
arising from the access to vendors by any Colorado participating entity. And both CBA and CES
knowingly and deliberately waive any claim they and, to the extent allowed by law, their
members may have against the other based on any legal theory of recovery or cause of action
relating to their own or their members' access to vendor contracts through the activities of this
MOU or relating to any dealings with such vendors.
If a dispute concerning this MOU or its activities arise, and should it result in litigation,
each party shall bear its own costs thereof, including attorney fees for such litigation.
At least once during each CES fiscal year, an annual review will be held between CBA
and CES to evaluate the performance and production of both parties relative to this MOU.
Should there be a lack of support or performance on either party's behalf, an evaluation to
determine solutions will be made. In the event that satisfactory solutions cannot be reached, the
MOU may be terminated by either party.
This MOU and the rights of either party are specific to the parties and may not be
assigned or delegated.
This MOU shall not be altered, changed or amended except by instrument in writing
executed by the parties hereto, and such amendments or changes shall not be effective until
signed by authorized representatives of both parties.
The term of this MOU is indefinite and does not require periodic renewal. The MOU will
be automatically cancelled if either party ceases to exist. The MOU may be terminated by either
party with or without cause, by giving sixty (60) days' written notice thereof to the other party as
follows:
Dale McCall, Executive Director (or the then current Executive Director)
Colorado BOCES Association
11274 Weld County Rd 17
Longmont, CO 80504
[email protected]
David Chavez, Executive Director (or the then current Executive Director)
4216 Balloon Park Road NE
Albuquerque, NM 87109
[email protected]
This MOU incorporates all understandings between the parties hereto concerning
the subject matter hereof, and all such understandings have been merged into this written
18
MOU. No prior agreement or understanding, verbal or otherwise, by the parties or their agents
shall be valid or enforceable unless embodied in this MOU.
CBA and CES agree to comply with all applicable federal rules and regulations pertaining
to equal employment opportunity. In accordance with these laws and regulations issued
pursuant thereto, the parties agree that no person shall, on the grounds of race, color,
religion, sex, national origin, age, veteran status, or disability, be excluded from participation in,
be denied the benefits of, or be otherwise subjected to discrimination under any activity related
to this MOU. If either party is found not to be in compliance with these requirements during the
life of this MOU, the parties agree to take appropriate steps to correct such deficiencies.
CBA and CES have entered into this MOU in accordance with approval by their
respective governing boards, at meetings that were properly posted and held in accordance with
each state’s open government laws. The individuals signing below have been authorized to do so
by their respective governing boards.
IN WITNESS WHEREOF, the parties have executed this Memorandum of
Understanding as of the latest date of signatory below.
Colorado BOCES Association
____________________________ _________________________ ______________________
Signature
Title
Date Signed
____________________________ _________________________ ______________________
Signature
Title
Date Signed
19
*************
Item VII.A.1.h. Administrative Reports – Lori O’Rourke
Sysco has experienced some transportation issues, which can be a real hardship for the school
districts, however, they are proactively taking steps to minimize delivery delays and make our
schools a priority. They are the only food vendor that is willing to deliver to all of New Mexico.
This enables us to service every district. The Sysco NM contract will be extended for one more
year with an option for one additional year, following the 2014-15 school year.
Because of the federal nutrition guidelines, many smaller districts without the resources to
have a nutritionist on staff have been moving to managed contracts. These companies will
bring their own people into the schools and manage the kitchen, assuring the federal nutrition
guidelines will be met. Such companies can be more expensive to use, and can displace longstanding cafeteria personnel.
Through the CES contract, Sysco offers many FREE classes presented by their staff Nutritionist.
Classes offered will teach the schools’ current staff the federal guidelines, how to create menus,
integrate the requirements into their recipes, and order proper quantities to meet the
guidelines and reduce waste. The Sysco nutritionist will go directly to each school site for these
classes, making travel for training unnecessary.
Additional classes are available for Superintendents, teaching proper kitchen staffing to assure
you are not over- or under-staffed according to the student population. There is even training
available for kitchen staff on completing NM food production records correctly. It is our goal to
help to educate our members on the resources available through our partnership with Sysco
Foods. We will be putting many of these materials on our website to make them accessible to
all of our members.
Clayton Schools has recently begun to purchase through our contract and Alamogordo Schools
has asked to use a specific part of the contract that is not available to them through their
current provider. Both schools represent an opportunity for growth, as we expand our
consumer base.
In this last quarter, we will be contacting districts that are going out for bid, to try to save them
time and money by reminding them that they can purchase immediately through our CES/Sysco
Contract, and making them aware of the free resources available through Sysco Foods.
*************
Item VIII.A.2. Administrative Reports – David Chavez
Item (a) Out of State Partnership
Mr. Barentine has prepared a business plan on our proposed expansion into Colorado, Texas
and Kansas, for your consideration. The MOU that is included, as an exhibit, in the business plan
will be presented to the Colorado BOCES Association for their review and approval during the
first week in April. This, of course, is contingent on your approval at our Executive Committee
meeting on March 25th. Mr. Barentine has included the Business Plan as a part of his report,
please take time to review the plan prior to our meeting. We ask that you formulate any
questions you may have concerning the plan and either forward them to us in advance of the
meeting or we will be prepared to answer questions on March 25th.
Item (b) Request approval of salary considerations for CES staff
I request Executive Committee approval for the following salary considerations for the 2014 –
2015 fiscal year:
Ancillary Staff – 3% increase applied to each salary schedule
Rationale: Ancillary Staff salaries have not seen an increase, other than those allowed for school
districts to offset insurance rate increases, for the past four years. CES has traditionally increased
salary for Ancillary staff at the same level as that given to New Mexico public school personnel.
This recommendation is in line with previous practice.
CES Core Staff - I recommend that we provide for a 3% increase for CES Office Staff.
Item (c) Member Credits
Each year the Executive Committee considers whether to allow for the distribution of member
service credits to CES members. Over the past two years, this decision has been made at the
June Executive Committee meeting. I am requesting permission from the Executive Committee
to allow me to make the determination in May, giving our business office additional time when
closing out the fiscal year. It appears that the Executive Committee will be in a position to
distribute $100,000.00 back to the school districts. This is an increase of $20,000.00 over prior
fiscal year.
Executive Committee Meeting
*************
Item VII.B.1. Personnel – Aubrey Bassham
Ancillary Staff
Contracts Received 2013-2014 Since March 13th, 2014:
•
•
•
•
•
•
•
Archibeque, Christine
Arnold, Carla
Bearheels-Ricketts, Christle
Brown, Ginger
Gorum, Regina
Johnson, Leah
Thayer-Regan, Mary
Registered Nurse
Diagnostician
Speech Language Pathologist
Speech Language Pathologist
Physical Therapist
Occupational Therapist
Certified Occupational Therapy Assistant
Professional Services
Contracts Received:
•
Gail Boring
Page 1
I:\24 Procurement\Executive Committee\09‐March 25, 2014\RFP‐RFB Master Board Report March 2014.xlsx
Respondent
Recommendation
Award Date
Reject Date
12/9/2013
12/9/2013
12/9/2013
3/6/2014
RFP 2014‐001
1 Gasoline and Diesel Fuel Desert Fuels
Petroleum Traders
2 Propane
No Responses Recieved
RFP 2014‐002
1 Ion Wave
RFP 2014‐003
1 Pacific Automation (Konica Minolta) GSA
RFP 2014‐004 (AEPA)
1 Furniture
2
3
4
5
6
7
Staples
School Specialty
Interior Systems
Industrial Arts CTE
Midwest Technology Products
School Specialty
Interactive Classroom Troxell Communications
Mass Notification System
None Received
MRO Supplies
None Received
Sports Equipment & Supplies
School Specialty
BSN Sports
Technology
MNJ Technologies Direct
CDWG
12/9/2013
12/9/2013
12/9/2013
12/9/2013
12/9/2013
12/9/2013
12/9/2013
RFP 2014‐005
1 Career Technical Education Needs Assesment
Meeder Consulting
Pearson
WestED
Southern Regional Education (SREB)
Page 1 of 3
3/14/2014
Respondent
Recommendation
Award Date
Reject Date
RFP 2014‐006
1 Door Locks, Keys and Locking Systems
Camnet, Inc.
DH Pace Company
Grants Steel Sash & Door Hardware
Security Hardware Solutions
SW Door Services
Employee Time and Attendance Systems, 2
Hardware and Maintenance
NovaTime
Sekure ID dba Easy Clocking
Data Management ‐ Time Clock Plus
Health and Medical Equipment, Supplies and 3
Related Services
School Nurse Supply
Alert Services
School Health Corporation
Physical Education, Athletic, Recreational, 4 Health and Training Supplies, Materials, Uniforms and Equipment
Alert Services
School Health Corporation
BSN Sports
FITLogistix
Fitness Superstore
JMC Sales
Universal Athletic Systems
RFP 2014‐007 (NMPSA #20‐000‐00‐00075)
1
Low Voltage Wiring Products and Services (Premise Distribution Systems)
ATI Security
RFP 2014‐008
1 PARCC Tablet Notebooks
RFP 2014‐009
1 School Security Systems
RFP 2014‐010
1 Modular Buildings
Page 2 of 3
3/14/2014
Respondent
Recommendation
Award Date
Reject Date
RFP 2014‐011 (GS‐02F‐0072X)
1 Educational Consulting Services
RMC Research
2/4/2014
RFP 2014‐012 (NMSP #20‐000‐00‐00082)
1 Defibrillators
EMS Aspects
3/6/2014
RFP 2014‐013
1
Professional Services for Archtechture and Engineering
RFP 2014‐014
1 Fire Suppression Systems
Page 3 of 3
3/14/2014

EXECUTIVE COMMITTEE MEETING Tuesday, March 25

Transcription

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