The Southwest Nebraska Distance Learning Network met on November 6, 2007, at  the ESU 16 Office in North Platte. 

At the beginning of this meeting, the chairperson announced and informed the public that a current copy of the Open Meetings Act was posted.

The meeting was called to order at 10:15 a.m. by Chairman Dan Hutchison.

Roll call was taken with the following in attendance:   Arapahoe, Arnold, Arthur County, Brady,  Callaway, Cambridge, Chase County, Dundy County-Stratton, ESU 15, ESU 16, Eustis-Farnam,  Hershey, Hitchcock County, Maxwell, McPherson County, Mid-Plains Comm. College, Mullen, Ogallala, Paxton, Perkins Co., Southern Valley, Southwest, Stapleton, Sutherland, Wallace, Wauneta-Palisade. 

Absent:   Hayes Center, Hyannis-Dist. 11, Maywood, McCook, Medicine Valley, North Platte, and Thedford.

Also present were Shirley Schall, Distance Learning Director, and Barb Hidy, Distance Learning Assistant.  Guests:  Jared Blackman and Chad DeWester, ESU 15, Melissa Engel, ESU 16. Pat Phelps, Tim Hall and Mary Lister, MPCC, Rick Golden, UNL, Gordon Roethemeyer, DEC, and Tom Rolfes, CIO/NITC.

Legal Notice -  Notice of this meeting was given in advance by publication in accordance with Network approved method for giving notice of meetings.  Availability of the agenda was communicated in the publicized notice.  All proceedings of the meeting, except as may be hereinafter noted, were taken while the convened meeting was open to the attendance of the public.

Additions and Approval of the agenda - Two items were added to the agenda under new business.  Mr. Roethemeyer  asked to speak about the issue of Trade Certificates for college instructors, and Mrs. Beatty requested that issues regarding the fiscal and authority transfer of the consortium to ESU 16 be added.  A motion was made by Hershey and seconded by Wauneta-Palisade to approve the agenda.  The motion carried unanimously on a voice vote.

Approval of Minutes - The minutes from March 27, 2007 meeting were distributed to those present as well as being posted on the Distance Learning web site.  A motion was made by ESU 16 and seconded by Southwest to accept the minutes as presented.  The motion carried on a unanimous voice vote.

Final Financial Report - Information on the final transfer of funds from ESU 15, as former fiscal agent to the SWNDLC, to ESU 16, as the new fiscal agent, was reviewed by the members.   It was noted that $801,150.45 was transferred to ESU 16 on July 5, 2007.  Marge Beatty noted that shortly thereafter a Qwest bill was received for approximately $600,000 for line charges, depleting the funds to a balance of around $200,000.   It was suggested that those funds be used for future costs of improvement to the DL system.

Public Comment - There were no requests from the public to comment.

OLD BUSINESS

Year 10 E-Rate Update - Shirley received notice that the Year 10 e-rate application for 2007-08 has been approved in the amount of approximately $641,000.  The first half of the line charges has been paid so we are entitled to apply for reimbursement of half of the approved funds.

NEW BUSINESS

Network Nebraska discussion points outlined below.

I. Impact of Phase II - Network Nebraska on our regional network (Rick Golden)
    ∑ Section 1 = All locations WAN
    ∑ Section 2 = All locations WAN, w/ Router
    ∑ Section 3 = All locations WAN, w/ Transport
    ∑ Section 4 = All locations WAN, w/ Router AND Transport
    ∑ Section 5 = 308 locations WAN
    ∑ Section 6 = 308 locations WAN, w/ Router
    ∑ Section 7 = 402 locations WAN
    ∑ Section 8 = 402 locations WAN, w/ Router
    ∑ Section 9 = Transport: G.I. to LNK, LNK to OMA, OMA to G.I.
(Sections 1-8 request a Gigabit backbone connection for all 308 IP-converted locations)

Discussion:  Mr. Golden explained the RFP for Phase II of Network Nebraska (which includes every district west of Grand Island) contains nine sections representing different options for bidding. 

Sections 1-4 request bids on a Wide Area Network for all 144 locations with variances according to whether a router is included, transport is included or both are included.

Sections 5 and 6 request proposals on only the 308 area locations with and without routers.

Sections 7 and 8 request proposals on only the 402 area districts with and without routers.

Section 9 requests proposals on transport only to locations stated above.

Shirley stated that costs in Northeast Nebraska went up for the DL services with implementation of Network Nebraska.  Shirley noted that we have three years after this school year left on our contract with Qwest so our costs will remain the same unless we choose to go with the state bid.  We can still join Network Nebraska while on our current contract since our equipment is already in compliance.  Bid opening is November 16th in Lincoln.  Mr. Roethemeyer was asked about  possible Public Service Commission funding and he stated that he is meeting with the commission on December 18 or 19th to request funding for the network.  Testimony was submitted from the DL consortia and DEC last September and a hearing has been granted in December. 

In the 308 area code, 63 districts have already been converted to IP with 66 districts left to be converted.

II.    LB1208 requirements and deadlines for all districts 2007-08. (Tom Rolfes)

    Network Nebraska Phase II Implementation Timeline, with revised dates/language in bold:
     09/01/07: Start work on Phase II RFP (ESUs 9, 10, 11, 13, 15, 16 & Higher Ed partners)
     09/15/07: Deadline for Tech Plan submission
    10/19/07: Form 470 Posted by CIO; Released RFP on 10/17/07
    11/16/07: Bid Opening, 2pm Central Time
        o RFP 2258Z1: Review for Conformance of Mandatory Requirements November 16, 2007
        o RFP 2258Z1: Evaluation Period November 17, 2007 through November 19, 2007
        o RFP 2258Z1: Post Letter of Intent to Contract to Internet at:  http://www.das.state.ne.us/materiel/purchasing/rfp.htm November 19, 2007
    12/10/07: Contract Award
        o RFP 2258Z1: Contract Award January 2, 2008 (can be anytime prior to 1/2/08)
        o RFP 2258Z1: Contractor Start Date January 3, 2008 (can be anytime prior to 1/3/08)
    12/14/07: Communicate WAN and Interregional Transport pricing information to Education entities
    01/07/08, 1/14/08, 1/21/08:  Signatures on vendor contract acknowledgments (School Board Meetings, ESU Board Meetings)
    02/7/08: E-rate Form 471 Filing deadline (local sites for WAN & CIO’s office for backbone)
    February-April, 2008: Order Distance education-related equipment
    May-June, 2008: Determine Schedule for Network Upgrades
    July 1-August 8, 2008: Actual network upgrade, testing, Renovo Software

Discussion:  Mr. Rolfes reviewed the timeline for Phase II.  He noted the bid opening on November 16th and explained that proposals are being bid for cost only.  Equipment specifications have been stated and proposals must meet the specifications.

Due to e-rate timelines, the plan is to communicate bids to schools by December 14th.  Under pressure from schools, USAC agreed to move the deadline for Form 471 filing to Feb. 7th.  The CIO will file e-rate application for transport (state backbone).  The rest of the network e-rate filing will be done locally.

III. Possible change in E-Rate filing for 2008-2009 school year (Shirley Schall)
    (a)  Letters of Agency authorize the CIO to bid and form agreements on the K-12 entities' behalf for Interregional Transport.
    (b)  Bid results will be communicated as soon as possible, once the Contract Award has been announced.
    (c)  NNNC MODEL: Local K-12 entities and ESUs will file E-rate at the local level for WAN service,  Internet, and any district infrastructure.
    (d)  The CIO will file E-rate on the backbone costs based on a formula of K-12 vs. Higher ed traffic, and then bill net costs back to all the participants divided by the total number of entities.
    (e)  Will the SWDLC connection to Network Nebraska in Grand Island or Lincoln cost more, less or the same as what we are paying now? What does that do to our E-rate filing?

Discussion:  Letters of Agency to the CIO for E-rate filing have all been sent in from our network members.  Shirley has also requested LOAs from districts in order to file the local network costs as needed.  She also stated that, as a consortium, our group has always cost-averaged the line charges with everyone paying the same amount (except the colleges), regardless of whether any district is located a greater distance from the gateway than others.  Dr. Cunning stated that it was his wish to continue cost averaging and to continue to have Shirley file e-rate for the line charges and related network costs.  This was tabled until later to discussed with issues relating to transfer of consortium to ESU 16.

IV.    Possible budgeting changes for 2008-2009 (Tom Rolfes)
        (a)  Projected costs for participation in Network Nebraska
            o Wide Area Networking (40Mbps-100Mbps)
                *Bid by the CIO with entities contracting directly with the Provider(s), this cost in Phase 1 ranged from $1554 to $5006 per month, with the regional average at about $2700.
                *Costs are billed to the entities by the provider
                *E-rate reimbursement filed at the local level
                *Additional State aid Technology Allowance of 85% of the unreimbursed portion (after E-rate) to Equalized School Districts
            o Internet Access
                *Internet can be purchased off of the State Master Contract which allows entities access to Internet2
                *Entities or aggregated purchasing groups contract directly with the provider
                *Costs are billed to the entities by the provider
                *E-rate reimbursement filed at the ESU (or school) level, depending upon how much Internet access is being purchased.
                *Current cost $38/megabit/month
            o Network Nebraska Participation Fee
                *Currently projected at $200/month/site
                *Is used to recover administrative costs for maintaining and operating Network Nebraska at the CIO/UNCSN/NET levels
                *NNNC Model: The CIO bills the Phase 1 ESUs (who then rebill their member schools) and the higher ed entities directly (What about Phase 2 ESUs?) 
                *The CIO reviews revenue vs. costs at 6 month intervals and adjusts bills accordingly
            o Inter-regional Transport Fee
                *Determined by the cost of Interregional Transport derived from RFP 2258Z1 and the amount of bandwidth that is carried; amount could vary from $200 per month down to $50 per month or less
                *Is used to inter-connect the NE, SW/W, and SE Ethernet clouds and provide statewide transport and distance learning exchange
                *E-rate will be filed by the CIO's office
                *The CIO bills K-12 and Higher education entities directly because CIO is filing the E-Rate application, not SWNDEN
                *Bandwidth and costs will be adjusted on an annual basis

Discussion:  The SW DL monthly rates are set in our current contract with Qwest at $1816.  If the state bids come in higher, we can continue with our current contract until August 31, 2011.  It was noted that once the rates are set, schools can apply for a refund from the state of 85% of the unreimbursed portion (that portion not paid by E-rate). 

The fee to join Network Nebraska is $200 per month, per entity.  This fee is NOT e-ratable.  Should SWDL elect to join Network Nebraska, the state would bill the ESUs and they, in turn, would bill the schools.  Dr. Cunning asked if some of the $200,000 transferred to ESU 16 could be used to pay the first year of Network Nebraska fees for the districts.  Mrs. Beatty said this was a possibility.

    (a)  Projected benefits/incentives for participation in Network Nebraska
        o Eligibility for $20,000 per each high school and each ESU for distance learning equipment reimbursement (former high schools in consolidated districts also eligible)
        o Eligibility for Distance Education incentives
            *Described as up to $1,000 for each unit
                -Unit = 1 semester video class sent or received
                -Unit = 1 semester asynchronous class sent
                -Bonus Unit = To originating school IF video class reaches a Sparse or Very Sparse school district
        o Eligibility for statewide clearinghouse and scheduling services through the Distance Education Council
        o Ability to charge for courses and place receipts outside of state aid formula
        o Ability to develop and migrate applications off of INTERnet and onto INTRAnet

Discussion:  Equipment expenses incurred after July 1, 2006, are eligible for up to $20,000 reimbursement from the state if districts are members of Network Nebraska.  LB 603 made it possible for all rooms to be eligible for the reimbursement so districts or ESUs with more than one room could receive $20,000 per room.

Network Nebraska will provide Internet 2 capability to schools.  Incentives for classes sent and received are available to Network Nebraska members.  Incentive amounts will vary until all phases of implementation are complete about 2010.

OTHER BUSINESS

Trade Certificates - Mr. Roethemeyer addressed the Nebraska Council on Teacher Education regarding allowing college instructors to teach dual credit classes under a Trade Certification.  The proposal would require that instructors have a Masters Degree plus 18 hours in their subject area.   He stated that the committee he addressed was very supportive but  when they came out of committee and addressed the full group there was resistance to the idea.  The Council suggested hiring adjunct faculty in the high schools to meet the needs for dual credit instructors.  The state consortia have found that there are not enough teachers sending classes to meet the requests for dual credit.  Mr. Roethemeyer felt that a show of support from school personnel across the state would assist in getting the Council to seriously consider allowing college instructors to have the trade certificate.  To that purpose, he passed out a petition for superintendents to sign if they wanted to show support for the trade certificates being issued to highly qualified individuals for teaching distance learning dual credit only.  He will take the petitions to the Council at their next meeting in January.

New Name for SWDLC - Legal counsel has advised ESU 16 to remove the word “consortium� from the name of the network since LB 1208 disbanded consortia in the state.

Ogallala made a motion to rename the Southwest Nebraska Distance Learning Consortium with the new name being Southwest Nebraska Network.  Motion was seconded by Chase County.  Discussion was held with Mr. Cunning stating that he felt the words Distance Education needed to be included to identify the purpose of the network.  Ogallala offered a friendly amendment to the original motion to change the name to:  Southwest Nebraska Distance Education Network.  The motion carried on a unanimous voice vote.

E-Rate Application - A motion was made by Hershey and seconded by Wallace to recommend to the ESU 16 board that the network continue to cost average the distance learning line and transport charges and to continue to have the SWNDEN Director file the e-rate application for the group.  The motion carried on a unanimous voice vote. 

Contracts 2008-09 - A motion was made by Chase County and seconded by Paxton to allow ESU 16 to issue contracts to schools in the Southwest Nebraska Distance Education Network for distance learning services during the 2008-2009 school year.  The motion carried on a unanimous voice vote.

Membership in Network Nebraska - Discussion was held on the merits and costs of joining Network Nebraska.  Membership fees would be $2400 per school, per year.  Billing would start as soon as classrooms light up on the network - expected to be July or August, 2008.  A suggestion was made that ESU 16 underwrite the costs of membership for the first year using funds transferred to ESU 16 when the consortium authority was changed.  Mrs. Beatty stated that ESU 16 charged $15,000 for DL service this year to include line charges not covered by e-rate reimbursement and administrative costs.  She is recommending the same $15,000 charge for next year plus the cost of membership in Network Nebraska of $2400 if the SWNDEN decides to join.  Total contract  cost would be $17,400.  

Members were informed that should they join Network Nebraska and decide to quit after a year, they could be liable for repaying incentives and equipment reimbursements.

A motion was made by Cambridge and seconded by Wauneta-Palisade to recommend the ESU 16 board set the distance learning contract fee for 2008-2009 at $17,400 which includes the fee for membership in Network Nebraska, contingent on bid awards.    The motion carried on a unanimous voice vote.

RUS Grant - When asked what other expenses might be coming up with the network, Shirley stated that there is still the BiAmplifiers, which are the last original piece of equipment in each DL classroom that needs replacing.  She said she would also like to see new People+ Content monitors added to the classrooms; the "People" video channel carries a live view of the people in the conference, while the "Content" channel shows meeting content, such as Internet websites, slides, spreadsheets, or other presentation material, anything that can be developed and displayed in high resolution from a standard computer.  Roger Adkins stated that this would be a great addition to the classrooms.  Hershey made a motion that Shirley write a RUS grant for the additional equipment.  Cambridge seconded the motion.  The motion carried  on a unanimous voice vote.

Shirley stated that the next ESU 15-16 Advisory Council meeting will be held Dec. 4th in North Platte and suggested that ESU 10 and ESU 11 members attend.  At that time, bid awards will have been announced and Phase II costs will be better defined.

Adjournment - The chairman declared the meeting adjourned at 12:20 p.m.


_______________________________       
Barbara Hidy
Distance Learning Assistant