APPROVED

IHETS Management Committee

October 16, 2000

Conference Call

PRESENT
Vernon Houchins, Vincennes University
John Huie, Purdue University
Dennis Kramer, Ball State University
Chris Peebles, Indiana University
Robert Ruble, University of Southern Indiana

IHETS STAFF
Tim Fisher
Dave King
Julie Wheeler



King reported that IHETS has been invited to a meeting of the Legislative Budget Committee, along with Intelenet, the State Agencies, and the Department of Education on November 29. King will get clarification, but he assumes that this meeting will be to discuss the overall development of the state network and technology, and how it is being funded.

King noted that during the last Management Committee meeting the group was given background materials' detailing IHETS' planning initiative. These materials are also available at http://www.ihets.org/about/execdir/appropriation.html. This background information will be forward to the Board of Directors prior to the meeting on October 30.

King reported that as the Indiana Telecommunications Network (ITN) continues to develop, staff has monitored any potential liabilities for IHETS. He reviewed the following points:

• IHETS technical staff has contracted with Intelenet to build and maintain the network
• Customer relations remain the responsibility of Intelenet.
• When Intelenet identifies a customer, IHETS is responsible for getting the customer connected.

IHETS incurs financial obligations as we build and manage ITN, which are passed along to Intelenet. Intelenet bills the customers and then repays IHETS. Intelenet has not reimbursed IHETS since February. Currently Intelenet owes IHETS 2.8M. Indiana University as the IHETS fiscal agent pays invoices from vendors. We are developing a plan to manage the shortfall with IU through the end of the fiscal year.

In order to retire the shortfall by the end of this fiscal year, ITN would need to install 80-90 new T1's each month before year-end. We are working with Intelenet to determine if they can supply that many customers. If Intelenet cannot deliver the 80 customers, we will work with them to provide full payment of the shortfall from Intelenet funds.

King will meet with Jerry Sullivan, Executive Director, Intelenet and Stan Jones, Chair, Intelenet Commission to discuss the arrangement on Thursday. Huie asked King to keep the Committee informed of progress as an agreement is reached.

The meeting adjourned at 11:15am.

NOTE: King met with Jerry Sullivan and Stan Jones on Thursday, October 19, 2000. An agreement was forged in which an aggressive effort will be mounted to bring on to ITN as many new T1 customers as possible, as quickly as possible. Estimates indicate 60-80 customers is possible, but will require some stream-lining of the customer contact process. Intelenet has guaranteed full payment of whatever shortfall exists by mid-June 2001.