SLIC Cooperative Annual Membership Meeting February 12, 2019 Kerri Welcome

Today’s Agenda 9:00am to 10:00am Overview of the SLIC Cooperative SLIC Coop Updates CDE Food Distribution Program Update Q&A 10:00am to 2:00pm Food Show and SLIC Coop Member Booth

Cooperative Structure- Roles and Responsibilities Lead Agency Executive Committee Member Districts Coop Administrator/Distributor Kerri- Overview of the Cooperative Structure- Lead Agency as the primary Executive Committee- quarterly meeting Role of Admin/Distributor- weekly meetings with lead district/admin. Admin provides recommendations Exec Committee makes final decisions for cooperative Requests feedback from Member Districts as needed Member Districts Complete surveys Respond to email Active participant

SLIC Executive Committee Executive Committee Position Member District Lead Agency Kerri Braverman – Vallejo City Unified School District Assistant Lead Agency Suzette Ortega – El Dorado Union High School District Secretary Joye McKetty – Folsom Cordova Unified School District Treasurer Scott McMillan – Gridley Unified School District Food Show Coordinator Sandra Jonaidi – Cabrillo School District Bid Coordinator Danette Grant – Riverbank School District Currently no open positions however quarterly executive committee meetings are open to all

SLIC Executive Committee Dates 2018-19 Meetings Tuesday, March 12, 2019 Tuesday May 14, 2019 2019-20 Meetings will be shared with all members as soon as meetings are scheduled

New Member Districts for 2019-20 Albany USD Byron UESD Dixon USD Live Oak USD Petaluma Joint UHSD South Monterey County JUHSD Stockton USD Kerri

SLIC Cooperative 2018-19 Entitlement Overview SLIC Coop Total Lunches Served (TLS) 40,231,405 Total Entitlement $13,779,256 DOD Requests $1,597,847 Unprocessed F/V Pilot $410,500 Meal Rate $0.3425 Actual Purchase Price $11,432,321 Excess Account $268,785 Entitlement Remaining $338,589 % Spent YTD 97.12% Kerri— 109 member districts serving over 41 million meals per year. Annual entitlement of $13.3 million (breakdown below-approx spending based on surveys) Processing $9 million Brown Box $3.7 million DOD $ 1.5 million Pilot $200,000 CDE Allows for overspending, which we do because of the annual cancellations. From surveys we overpent by more than $850,000. With cancellations we still have $641,000 left to spent this year. That is a $1.5 million swing. We are currently looking at USDA catalog to see what is available to purchase to spend the remaining funds

Processor Carry Over Balances 2017-18 2018-19 Total Carryover Pounds Fair Market Value CDE Annual Sweep Total Carryover Used 1,357,340 $1,712,150 $43,688 $1,668,462 Total Carryover Pounds Fair Market Value CDE Annual Sweep Total Carryover Used 4,064,111 $4,428,410 $2,885,638 $1,542,772 Kerri- All remaining inventory at processors is SLIC Coops pounds. While some of these pounds are subject to sweep by the CDE in October, the remaining value of all pounds remaining are tallied and redistributed to SLIC Coop members on a fair share basis. As you can see, there was over 2.3 million pounds of processed end products remaining at the end of 2015-16, converting to FMV, the total value was just over $2.7 million. As a result the SLIC Coop redistributed $2 million to all coops members. This additional entitlement can be used for Processing and Brown Box without pre-approval. DOD requires approval by the lead district and the State. Reminder: In order to receive your commodity discounts, schools must purchase USDA Foods through the SLIC Contracted Distributor. This ensures maximum utilization of pounds and best pricing for your district.

Department of Defense Fresh Fruits and Vegetables Reminder: 100 percent of DOD monies must be used by May 1st. All unused DOD funds will be swept by the CDE Questions: Refer to CDE Management Bulletin below: http://www.cde.ca.gov/ls/nu/fd/mbnsdfdp022 012.asp Kerri

SLIC Cooperative Contracts Administration and Distribution New contract awarded to Gold Star Foods on July 1, 2019 Includes the delivery and storage of all USDA Brown Box items, Processed USDA Foods, and their commercial equivalents Manufacturer Pricing 2019-20 is year 3 of a 5 year contract with USDA Foods Processors Pricing is updated annually based on new USDA FMV and general manufacturer price changes

Annual Entitlement Expenditure Requests Previously referred to as Surveys Mandatory for ALL Coop members Provides your requests for Brown Box and Processing Diversions Release Date- Thursday, February 7th Due Date- Friday, February 22nd Kerri- This process is important to the Coops, as all requests for USDA Foods are completed through this process. Last year statistics - 57 of 104 members completed the request form (55%) Diversions were made to those manufacturers with a 45% or higher positive response. This means that half of the half of members made the decision for the whole group. -20 to 44 percent positive response received diversions based on available funds. (3.7 million spent on brown box, $1.5 million on DOD, remaining $9 million on processing. As an example, 1 truckload of beef is $150K Less than 17% did not receive pounds, since no entitlement was available. This affected 21 manufacturers

USDA Foods Request Process USDA FDP State FDP Remember: All USDA Foods must be requested in full truckload quantities by the Coop. Partial truckloads must be: Split with another agency to equal a full truckload Increased to equal a full truckload Cancelled/Not requested SLIC Coop Member Districts

USDA Foods Direct Delivery Elaine- Update on the status of the brown box allocation process well received by schools brief overview of requirement of USDA for full truckload quantities (LTL with match) This is an example of the 2018-19 Brown Box Request Data. As you can see meeting full truckload requirement are difficult and require the SLIC Coop Executive Committee to make decisions on how many trucks will be requested and in what months those trucks will actually come in.

Updates to 2019-20 Annual Entitlement Expenditure Request MANDATORY– Due date is February 22, 2019 No exceptions Based on historical dates that Brown Box is received, we are limiting the available months to request items. This will ensure that we have capability to meet full truckload quantities Improved visibility of anticipated receive dates to more easily predict use of storage (either at district or at Gold Star) Processing Survey – please ensure that you are denoting the processors you are planning on using, paying attention to both the processor and the end product.

Come Visit the SLIC Coop Booth Learn More about: SLIC Coop Structure Meet your Executive Committee Annual Entitlement Expenditure Process Processor Diversions Brown Box Requests Navigating the New SLIC Coop Dashboards and website Maximize use of your entitlement dollars Don’t leave money on the table Understanding Value Pass Through Systems Net off Invoice vs. Fee for Service

Please Welcome Amy Bell from the California Department of Education – Food Distribution Program