Meeting minutes from November 16, 2006
IHETS boardroom
****APPROVED 12.5.06****

Present: Jeff Pittman, Chair, Ivy Tech Community College; Tim Eaton, Vincennes University; Keith Fowlkes, Saint Mary’s College; Bob Holmes, Ivy Tech Community College; Phillip Jankowski, Purdue University North Central; Bryan Spetter, Franklin College

IHETS staff:  Virginia Beyer, Tim Fisher, Bill Kramer, Ed Stockey, Susan Sullivan, Betty Hart

Pittman called the meeting to order and stated that Kramer would be providing the group with an overview of today’s meeting.

Service pricing work plan

Kramer began with an overview of the comprehensive study reported presented to the board in January 2006 made up of external professionals and internal committee members. Ten recommendations were identified that, if implemented, would strengthen the IHETS organization. To address those recommendations, IHETS has developed four work plans: technology cervices (chaired by O’Neal Smitherman), e-learning cervices (chaired by Brad Wheeler), the communications strategy work plan (chaired by Lloyd Benjamin) and the service pricing work plan chaired by Jeff Pittman of the finance committee. Preliminary service and pricing information is being gathered and will be shared at the December 1 technical operations committee meeting.

Pittman asked for a motion to approve the service pricing work plan with a minor update to the timeline. Holmes moved to approve the plan, Spetter seconded the motion, and it was unanimously approved. More information from Fisher regarding pricing models will be forthcoming.

Circuit network transition

The committee discussed the draft “Transfer of Circuit Network Responsibilities from IHETS to Indiana University-UITS” document, which will become effective as of November 17, when it is approved by the IHETS Board of Directors Executive Committee. Connection fees collected by IHETS will support eight (8) personnel positions, circuits, and other associated network expenses through December 31, 2006. Thereafter, IU-UITS will collect all fees and pay those costs. Two (2) of these eight positions (i.e., Justin Kamm, provisioning; Dennis Vandall, Help Desk) will be paid from the IHETS appropriation through June 30, 2007, after which they will be supported by UITS.

IHETS will work with UITS to implement these transitions as seamlessly as possible. IHETS will continue providing technology and e-learning services, with Indiana University operating both the circuit and I-Light networks and providing all network support. IHETS engineers and Help Desk folks staff will make the move this Friday with all intent to provide the same quality of service as in the past.

There is no change to the current level of circuit subsidies in the 2007-09 biennium budget request.

Spetter made a motion to approve the circuit network transfer, which was seconded by Jankowski. The recommendation will go before the executive committee for approval.

ITFS license revenue and financial impact of FCC changes

On behalf of the consortium, IHETS has acquired 29 ITFS licenses to support one- way video/two-way audio since the 1960s. Because they must be held by educational institutions, they were acquired in the name of Indiana University as the consortium’s fiscal agent. With the shift from terrestrial to satellite delivery methods, the licenses became unused. Contractual agreements with Sprint and Bell South to sublease a portion of the unused licenses was negotiated on behalf of the members, resulting in an additional $230K of annual income for the consortium budget.

In July 2006, FCC rules governing those licenses changed. The frequency band of the licenses now falls within the U.S. standard for Wi-Max and the percentage of use restricted for educational purposes was reduced. As a result, the value of these licenses to private-sector telecommunication companies is much greater. In Louisville, for example, as one educational license holder recently entered into an agreement with Sprint for $15.1 million over a 30-year period with a $2 million signing bonus.

This issue was discussed yesterday by the technical operations committee, which agreed a subcommittee composed of Smitherman, Larimer, Ksander, and Gordon, be formed to study the potential revenue and usage of the IHETS licenses. Pittman will serve as the subcommittee's finance committee representative.

PROBE report

IHETS was reviewed by Peter Miller (Office of Management and Budget) and  Justin McFadden (State Budget Agency) October 5. Their findings and report were provided to IHETS on November with a total score of 34 percent, deemed an "ineffective" rating. Those agencies receiving less than 50 percent are required to rejustify their biennial budget request. IHETS' biennial request was submitted in August, however, although an IHETS response to the review is being prepared and should be complete by November 27.

IHETS budget tracking scorecard

On November 10, ICHE recommended the requested IHETS appropriation (the current base plus three percent for each year of the 2007-09 biennium) move forward. Additional strategies in support of the request will be developed.

IOT proposal for IHETS services

A proposal has been submitted to IOT for video conferencing services through June 30, 2007. The proposal included two options: one using existing equipment purchased with state-appropriated dollars and one without. It was noted that Karl Browning of IOT accepted a position with the Indiana Department of Transportation.

A follow-up meeting for the committee will be scheduled during the first week of December to discuss the status of the service pricing work plan. The meeting adjourned at 10 a.m.

— Minutes approved December 5, 2006