1. Call to Order/ Roll Call - Members Attending: Lana Sides-Banner County, Allen Gross-Bayard, Randy Butcher-Bridgeport, Sherlock Hirning-Chadron, Merrell Nelsen-Crawford, Don Hague-Gering, Bill Tuma-Gordon/Rushville, Casper Ningen-Hemingford, Jerry Williams-Kimball, Chuck Bunner-Minatare, Kent Halley-Mitchell, Roy Ingram-Morrill, Kevin Thomas-Potter/Dix, Jim Copley-ESU #13, B.J. Peters-WNDLC. Members Absent: Alliance, Creek Valley, Garden County, Hay Springs, Leyton, Scottsbluff, Sioux County.

2. WNDLC Interlocal Agreement Addendum Proposal

B.J. Peters presented proposed language changes for the WNDLC Interlocal Agreement. This came about because of discussion at the May 2005 meeting where the group generally favored started assessing to expand reserve funds in anticipation of future upgrades to the WNDLC system. The reserve fund assessment was not possible because language in the interlocal had a maximum assessment level of $4,000 per member. The proposed language changes takes the $4,000 level out but leaves in the authority of the WNDLC Governing Board to approve the annual budget. Motion by Crawford to approve WNDLC Interlocal Agreement Financial Assessment language changes, motion seconded by Mitchell. Roll Call Vote: Banner County-Yes, Bayard-Yes, Bridgeport-Yes, Chadron-Yes, Crawford-Yes, Gering-Yes, Gordon/Rushville-Yes, Hemingford-Yes, Kimball-Yes, Minatare-Yes, Mitchell-Yes, Morrill-Yes, Potter/Dix-Yes, ESU #13-Yes. Motion passed 14-0.

(Original Language) Section 6. ANNUAL FINANCIAL CONTRIBUTIONS TO BUDGET OR FOR LEASE PURCHASE PAYMENTS FOR MEMBERS. In addition to funds, which the Consortium may receive from grants, financing, or any other sources, to annually fund it's budget, if necessary, during the term of this Agreement, each Member agrees to provide or pay the Consortium an amount determined by the Consortium Governing Board sufficient to fund the Consortium budget; such payments not to exceed four thousand dollars ($4,000), and further each Member agrees to pay amounts sufficient to cover payments under any Lease Purchase Agreement for equipment, technology or other materials as may be entered into by and between the Consortium and the Member. Member annual payments, if any, required to fund the Consortium annual budget shall be made by each Member in accordance with procedures and payment deadlines established by the Consortium Governing Board.

(Proposed Language Changes) Section 6. ANNUAL FINANCIAL CONTRIBUTIONS TO BUDGET OR FOR LEASE PURCHASE FOR MEMBER. In addition to funds which the Consortium may receive from grants or any other sources, to annually fund its budget, if necessary, during the term of this Agreement, each Member agrees to provide or pay to the Consortium an annual amount which shall be determined by the Consortium Governing Board and approved by a majority vote of the Full Consortium Governing Board. Also each Member agrees to pay amounts sufficient to cover payments under any Lease Purchase Agreement for equipment, technology or other materials as may be entered into by and between the Consortium and the Member. Member annual payments, if any, required to fund the Consortium annual budget shall be made by each Member in accordance with procedures and payment deadlines established by the Consortium Governing Board.

3. WNDLC Bylaws Change Proposal

B.J. Peters noted that the WNDLC Bylaws also reflect the same financial assessment language that the WNDLC Interlocal Agreement did. He said that it is necessary to change the bylaws to reflect the new language just changed in the interlocal agreement. It was moved by Gordon/Rushville to approve the proposed WNDLC Bylaws Financial Assessment language changes, motion seconded by Crawford. Roll Call Vote: Banner County-Yes, Bayard-Yes, Bridgeport-Yes, Chadron-Yes, Crawford-Yes, Gering-Yes, Gordon/Rushville-Yes, Hemingford-Yes, Kimball-Yes, Minatare-Yes, Mitchell-Yes, Morrill-Yes, Potter/Dix-Yes, ESU #13-Yes. Motion passed 14-0.

(Original Language) Article VI - Finances. The Governing Board shall control the finances of the WNDLC. 1. After adopting the budget, the Governing Board shall add a reasonable reserve to the budget and subtract therefrom the amount of funds to be carried over. The remaining amount shall be divided by the number of members, and the remaining quotient shall be each members assessment (not to exceed $4,000 annually). The Governing Board shall determine the number of installments in which such assessments shall be paid, and shall cause each member to be billed accordingly. 2. The Governing Board of the WNDLC shall provide for an appropriate audit of the WNDLC Treasurers’ books annually. 3. All bills to be paid by the managing agent, ESU #13, will be as moved and approved by the Governing Board and under the control of the authorized budget document.

(Proposed Language Changes) Article VI - Finances. The Governing Board shall control the finances of the WNDLC. 1. In addition to funds which the Consortium may receive from grants or any other sources, to annually fund its budget, if necessary, during the term of this Agreement, each Member agrees to provide or pay to the Consortium an annual amount which shall be determined by the Consortium Governing Board and approved by a majority vote of the Full Consortium Governing Board. The Governing Board shall determine the number of installments in which such assessments shall be paid, and shall cause each member to be billed accordingly. 2. The Governing Board of the WNDLC will work with the WNDLC fiscal agent (ESU #13) to provide for an appropriate audit of the WNDLC Treasurers’ books annually. 3. All bills to be paid by the managing agent, ESU #13, will be as moved and approved by the Governing Board and under the control of the authorized budget document.

4. 2005-2006 WNDLC Budget and Membership Annual Assessment & Upgrade Assessment Proposal

Now that the language has been changed in the Interlocal Agreement and Bylaws, Peters said that the group can now legally address the issue of trying to raise money in a reserve fund in anticipation of a system-wide upgrade in the future. He said that even though the budget was approved at the May 2005 meeting it will need to be re-approved with the proposed changes. Peters said that his research of what other Nebraska DL consortiums are doing shows that many, if not all, are assessing them members annually for three separate funds (coordination, depreciation/system upgrade, & equipment maintenance). Peters said that he proposing that WNDLC does the same thing. He is asking that each consortium member pay an equal share of the coordination costs. He is also proposing that the reserve/depreciation and equipment maintenance assessment would be assessed on a "per classroom" basis. The coordination cost look to be $80,131 with the equipment upgrade and maintenance assessment totaling $38,400 for a total budget of $118,531. Those members with one classroom are looking at an annual assessment of approximately $5416. Those members with two classrooms (Creek Valley, Gordon/Rushville, & ESU #13), the assessment will be approximately $7016. It was moved by Crawford to approve the WNDLC 2005-2006 budget to reflect the new assessment proposal and to include the per classroom assessment totals in the overall WNDLC budget for a total budget of $118,531, motion was seconded by Banner County. Roll Call Vote: Banner County-Yes, Bayard-Yes, Bridgeport-Yes, Chadron-Yes, Crawford-Yes, Gering-Yes, Gordon/Rushville-Yes, Hemingford-Yes, Kimball-Yes, Minatare-Yes, Mitchell-Yes, Morrill-Yes, Potter/Dix-Yes, ESU #13-Yes. Motion passed 14-0.

(Past Practice) For the first five years, members of WNDLC were billed monthly only for incurred coordination expenses. No reserve funds were kept. There was $30,000 raised from new member application fees. This money has been used to repair DL classroom equipment. The consortium also received grant dollars from NET and has $60,000 remaining of those funds. For the 2004-2005 school year WNDLC member schools agreed to a full annual assessment of $4000 with all funds after actual costs to be added to the reserve/depreciation fund (approximately $15,000). Building up the reserve is necessary because of an anticipated upgrade to our DL system in the next few years and outside funding is not expected to cover all the expenses incurred with the upgrade. Because the consortium will see more school mergers the dollars after actual costs will continue to decrease. The consensus of the WNDLC member schools is to increase the annual assessment to include a steady stream of revenue into a reserve/depreciation fund to cover unanticipated costs in the future. The problem is that the WNDLC Interlocal Agreement and Bylaws contain language limiting annual assessments to no more than $4000. That has been addressed with the proposed language changes listed above.

(WNDLC Financing Proposal) The proposal is to go with three separate assessments. The first is for the actual coordination of the DL consortium (BJ's salary and expenses). This would be continue to be divided among WNDLC member school districts (21 school districts & ESU #13) and would be approximately $3600 per member for the 05-06 school year.

The second assessment would be a $1500 annual assessment for the reserve/depreciation fund. This would be assessed "per classroom". $1500 times 24 classrooms would add $36,000 annually to the reserve/depreciation fund currently at approximately $75,000.

The third assessment would be a $100 annual assessment for equipment repair and replacement. This would be assessed "per classroom". $100 times 24 classrooms would raise $2400 annually. This is currently about what we have been incurring for equipment repair on an annual basis and would allow the consortium to maintain a satisfactory balance in this fund.

5. WNDLC E-Rate Resolution

In light of the recent E-Rate Audit at ESU #2 in Fremont, Jim Copley feels it necessary to continue to cover our bases in the e-rate documentation arena. He is asking the superintendents to pass a resolutions that further authorizes Jim Copley and B.J. Peters to file e-rate applications on behalf of member school districts. Following is language from the proposed resolution.....

THEREFORE BE IT RESOLVED that BJ Peters and Jim Copley, employees of Educational Service Unit No. 13 are hereby authorized by the WNDLC to complete and sign E-rate forms on behalf of the consortium and/or it’s individual members for the E-rate funding years 2003-2004 (the last funding year), 2004-2005 (the current funding year) and 2005-2006 (the next funding year) requesting discounts on any and all E-rate eligible services including distance learning circuits, telecommunications circuits and Internet access services.

It was moved by Morrill and seconded by Hemingford to approve the WNDLC E-Rate Application Authorization Resolution as presented. Roll Call Vote: Banner County-Yes, Bayard-Yes, Bridgeport-Yes, Chadron-Yes, Crawford-Yes, Gering-Yes, Gordon/Rushville-Yes, Hemingford-Yes, Kimball-Yes, Minatare-Yes, Mitchell-Yes, Morrill-Yes, Potter/Dix-Yes, ESU #13-Yes. Motion passed 14-0. The resolution will be signed by WNDLC President Kent Halley of Mitchell.

For reasons that have not been made public, the first wave of funding for FY 2005 has yet to be announced. Last year, Wave 1 was released on April 27th, and over 18,000 funding letters had been sent out by July 1st, the beginning of the funding year. This included all the distance learning applications for our consortium. This year, even if 1-2 waves are mailed in the second half of June, few Form 486s are likely to be processed in enough time to permit service providers to begin discounting July bills.

6. Adjourn - The meeting was adjourned at 11:00 a.m.