MERC

MERC Board of Director's Meeting

Feb. 6, 2008
10 a.m. - Noon

Attendees: Robert Athearn, Beth Chancellor, Rita Gulstad (via phone), Russell Helm (via video), Jeremy Kintzel, Craig Klimczak (via video), Joel LaReau, Mark Mabe (via phone), Bob McGlasson (via video), Kevin Palmer, Chad Shepherd, Beth Fisher

MOREnet Staff: Megan Barney, David Byland, Rex Peterson, Nancy Piringer, Greg Silvey

Welcome – Joel LaReau

Joel LaReau called the meeting to order at 10:05 AM and asked Greg Silvey to begin the meeting with the MERC Financial Report.

MERC Financial Reports – Greg Silvey, Director of Fiscal and Contractual Services, MOREnet

Silvey reported that 100 percent of MERC Institutions have been billed for FY08 member service fees. Silvey explained that the original FY08 proposed budget called for total revenue from member fees to be $1,406,626. This projection was based on a charge of $600 for the per Mb fee which was actually billed at $562 per Mb resulting in actual revenue of $1,358,118. This is a difference of $48,508.00. Silvey reported some savings on salaries and benefits, which is reflected in the mid-year reprojection as a total of $363,871. The original FY08 budget called for $368, 601 in expenses for salaries and benefits. Silvey informed the Board that based on the YTD Actuals dated 12/31/2007 the total picture looks good and is close to the original budget. Silvey also noted that the 2008 HELIX Conference budget is in line with original projections.

FY09 MERC Budget Projections – Greg Silvey

Silvey indicated that no appropriation increase was included in the calculations, Silvey also indicated that the FY09 Budget Projection would be based on the $562 per Mb. Compared with the FY08 budget there are no major changes, there are some minor increases for salaries and benefits as well as the telecommunications portion of the budget, but nothing significant.

HELIX Conference Update - Nancy Piringer, Higher Education Program Manager, MOREnet

Piringer reported that 79 attendees had registered for the 2008 HELIX Conference. Piringer also reminded the Board that it was approved to offer each MERC institution a free seat at the conference, and encouraged Board members to spread the word that a free seat per institution is available. Piringer reported that sponsorships were looking good and the grand opening sponsor is close to being confirmed. Piringer reported that there would be two Keynote presentations, one on day one and one on day two. Piringer added that attendance was at 225 in 2007 and she was hopeful 2008 attendance would be as much if not more.

Piringer went on to provide the Board with an update on the MERC Bandwidth Survey:

• 17 responses out of 42 – Independent sector
• 6 responses out of14 – Four year sector
• 8 responses out of 13 – Two year sector

Piringer will be working with Mark Mabe at Missouri Western University to break down the information and produce some reports from the surveys. Piringer reported that a major concern of several institutions that responded to the survey was the fact that they are currently limiting projects due to concerns over costs and availability of bandwidth.

Kintzel brought up a prior discussion he had with David Byland (MOREnet) regarding an increase of the current TAIL circuit capacity limit for MERC members from 75Mb to 100Mb. Kintzel explained to the Board that it was his understanding that due to changes in pricing models and circuit availability the costs of such an increase would be negligible. Kintzel added that he thought it would be appropriate for the MERC Board to discuss an increase to the TAIL circuit capacity limit prior to the MOREnet Council meeting scheduled for February 19th.

Byland added that typically when a 75Mb TAIL circuit is ordered, it is actually a 100Mb TAIL circuit that is throttled back to 75Mb. The costs to provision a 100Mb TAIL circuit and then throttle down to 75Mb are minimal and typically the costs are limited to a one-time fee of around $50.00 to $100.00. Byland reported that there are about five MERC Institutions that are planning on moving up to 100 Mb connections during FY09.

Legislative Update – Bill Mitchell

Mitchell reported to the Board members that the House Education Appropriations Committee has been very active and has been asking many questions about MOREnet. Mitchell added that the committee has been very supportive of MOREnet and is sympathetic to the challenges that MOREnet experiences and the committee is highly focused on both K-12 and higher education. Mitchell reported that Governor Blunt has recommended flat funding for MOREnet. Mitchell also informed the Board that for FY08 there has been a 40-50% increase in bandwidth provided by MOREnet and that this is higher growth than has occurred in the past, Mitchell added that there is also increasing demand for bandwidth from MOREnet members.

Mitchell told the Board that he is hopeful that the House Education Appropriations Committee will recommend an increase for MOREnet. After the House Education Appropriation Committee makes recommendations, those recommendations are reviewed by the full House Budget Committee and then go to the full House of Representatives for approval. The next step in the process will be Senate approval. After both House and Senate approval then the budget will move to Governor Blunt for approval.

LaReau added that he believes it is very important that organizations work to educate their local representatives and senators on the important role of MOREnet. Mitchell agreed, noting that some of MOREnet’s strongest supporters will no longer be serving in FY10 and it will be very important to work on rebuilding support among new representatives and senators.

Palmer asked if cost increases were proportional with bandwidth increases. Mitchell responded that typically there is reasonable pricing for bandwidth in the metro areas however there are higher costs associated with providing bandwidth to the more rural organizations.

Next Generation Network Update – Rex Peterson, Network Services Manager, MOREnet

A vendor for the optical fiber has been selected and that contract is close to being finalized. Peterson added that several portions around Lebanon, Rolla, Stoutland, and Jefferson City are not yet complete but are expected to be done by May 1st. If the target date of May 1st is met then the 10 Gb backbone will be brought up by fall on all segments except a portion between Peculiar and Kansas City that is not complete yet. The portion between Peculiar and Kansas City is being provided by Show-Me and due to construction in the city will not be ready until December of 2008.

Peterson told the board that phase two, under the supervision of Chip Byers has begun. Peterson reminded the Board that phase two will be an effort to improve local infrastructure in areas where TAIL circuits are more difficult to provide to members.

Mitchell added that TAIL circuits are a large part of operational costs for MOREnet. In an effort to cut expenses for TAIL circuits in areas of the state where there is a sufficient density of members, local infrastructure could be utilized. To that end, there are about twenty areas that have been identified where the development of local infrastructure could be utilized to cut TAIL circuit costs, so that instead of providing an individual TAIL circuit to each member, a single high speed connection could be brought in from a MOREnet hub into the community. The model has been implemented twice in the Springfield and Marshall areas. The goal of the model is to dramatically increase bandwidth availability without dramatically increasing costs. Palmer asked about the timeline for phase two and Mitchell responded that in the next six months a few additional areas will be targeted and in FY09 the effort will be increased aggressively. Palmer asked if the target areas would be shared with the Board and Mitchell responded that they would be.

AUP Update – David Byland, Administrative Services Director, MOREnet

Byland reminded the Board that the new MOREnet AUP (effective July 1, 2008) has been in development for about eighteen months and has been drafted with input from MERC, DESE, and the State Library. Byland reported a key change within the AUP is ongoing reference to activities that support the member’s mission. This is in order to address instances where, for example, a member would wish to outsource some practices that they used to handle themselves. In these instances, work might be performed by a commercial firm within the member’s facilities. Byland also explained that a Special Use Request has been developed as a tool for MOREnet and members to formally discuss instances where consideration of extending use of the MOREnet connection an outside group is under consideration.

Byland added that the final document will be distributed in the next thirty to sixty days, and will also include updated and more formalized policies regarding MOREnet services. There will also be an updated Participation Agreement, it will be effective for “life” and will be sent out within the next thirty to sixty days. The new participation agreements and AUP will be effective July 1, 2008.

Wrap Up

Helm asked the Board if there were any other topics for discussion. Hearing none, Robert Athearn moved for adjournment at 11:35 AM, all were in favor.

Respectfully submitted, Megan Barney