Bollinger Mill and Bridge - Cape Girardeau

July 15, 2005

MOREnet Council Meeting Minutes

Council members in attendance from MOREnet: Sara Parker, Bill Mitchell, Margaret Conroy, Jeanie Gordon, Bert Schulte, Tom Stokes (Representing Dan Ross)

Council members in attendance via video: Cheryl Bielema, Curt Fuchs, Rita Gulstad (Representing Don Doucette), Gail Gourley (Representing Annie Busch)

Council members in attendance via conference call: Robert Stein

Guests present at MOREnet: Bill Giddings, Holly Fine, Deb Rodman, Deb Sutton

Guests present via video: Linda Hammer

The MOREnet Council met on July 15, 2005, in room 205 of MOREnet, 3212 LeMone Industrial Blvd., Columbia, Mo.

Sara Parker called the meeting to order.

Parker announced that Annie Busch is testifying on behalf of MOREnet at the Governor's Governmental Review Committee that is looking at the organization of state government. Gail Gourley attended on Annie's behalf.

Parker asked Mitchell to bring the Council up to date on the FY07 appropriation request. Mitchell reminded everyone that a decision to move forward with all three decision items was made by the Council at the June 15 meeting. After the meeting, MOREnet concluded negotiations with Sprint to lower their internet cost such that the decision item for increased internet connectivity was not needed. The university subsequently recommended no further requests be submitted. The Council agreed. The university then announced they would be submitting a blanket restoration request for all UM related cuts to the Department of Higher Education for their consideration.

Robert Stein announced that the 2007 budget instructions had just been sent out by the Office of Administration on July 13. He gave a summation of the instructions.

There were discussions around what would happen to the K-12 students if there wasn't increased connectivity to the schools. All sectors agreed that the students need to be kept top most in their minds.

The Council agreed that discussions with Nikki Krawitz, Vice President of Finance, about the university timelines to ensure that the Council is up to speed on the university appropriations cycle so that the Council's advice is timely. This discussion will be placed on the next Council agenda.

Stein requested that Nikki give the Council her perspective of the University of Missouri on the reserve policy for MOREnet.

Debbie Rodman walked the Council through the FY06 working budget and assumptions based on the current cost allocation model. She and Parker are to meet to discuss the transfers in further detail.

Questions were raised about the reserve balances being too high. Mitchell explained that the Council had agreed on a reserve policy and said that the amounts are considerably under those amounts listed in the policy. He also added that the recent MOREnet Financial Audit found that MOREnet places the university in a high risk dilemma if there aren't sufficient fund balances. These audit findings are to be discussed at the Board of Curator's meeting this Thursday and Friday, after that meeting the financial audit will be forwarded to the Council.

Parker made the motion that the FY06 working budget be recommended to be a working budget subject to revisions and further budget discussions including the cost allocation formula at the next meeting. All were in favor.

Parker asked for comments regarding the customer fee announcement letter and after a brief discussion announced that the letters would be sent.

Agreement was made that the next Council meeting would be on September 21. Since that time, it has been found that Mitchell has a conflict. His office will be contacting the Council members regarding alternative meeting dates.

Parker announced that the agencies and MOREnet are working on a new cost allocation formula and that an update would be given at the next Council meeting.

Mitchell announced that Holly Fine had submitted her resignation effective sometime in the August/September timeframe. She will be moving to South Carolina with her family.

Mitchell shared that he would be meeting with Dan Ross on August 3 to continue the discussion of timing and coordination with regard to the network consolidation.

Parker shared that the secretary of state's office is ready to share the membership fee proposals for the public libraries with Margaret Conroy and Annie Busch. Once feedback is received those proposals will be taken to Secretary Carnahan. Mitchell added that MERC and DESE have made their decisions. Parker suggested agency updates at the next meeting.

Stein announced that Joe Martin had resigned his position as deputy commissioner.

Parker adjourned the meeting at 11:30 a.m.