[nc-budget] DRAFT REPORT ON TODAY'S NAMES COUNCIL BUDGET COMMITTEE TELECON

["Cochetti, Roger" <rogerc@netsol.com>]

It was a fairly complicated meeting and I make no claims at being a great
note-taker.  But here's my draft, so let me know if  anyone has changes.
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1. Calling in were:  Roger, Elisabeth, Erica, Danny, Peter, and Chuck.
Absent: Phillip, Mark and Ken, who is an ex-officio member))   

1. Voluntary Fund-Related Activities

Roger reported that he had presented the BC report to the full Names Council
and the Council had taken note of the BC's plans to proceed.  Accordingly,
VeriSign Global Registry Services has asked its outside counsel, Wilmer
Cutler, to develop any required paperwork for the creation of a
un-incorporated association that would exist for the sole purpose of
"raising and dispersing funds for the provision of professional support
services to the DNSO and the Names Council" and that would in no way incur
liability for ICANN or the DNSO or the Names Council. As previously
reported, the account will be set up at the Bank of America using an on-line
service.  Roger indicated that he plans to use the name "DNSO VOLUNTARY
SUPPORT FUND (DVSF)" unless anyone has a better idea and that he needs
Budget Committee volunteers who are willing to serve as trustees for this
account.
He also reported that once the account is opened, he will widely circulate
the previously-agreed solicitation materials and ask that everyone on the BC
work to get donations.

Peter suggested that the BC might set up a separate account that could serve
as the basis for an endowment fund if we see opportunities for major
donations that would create a permanent endowment for the DNSO.  Discussion
ensued.  It was agreed that several members would investigate this and the
BC would take it up at a future meeting.

2. Search-Related Activities for Policy-Oriented Professional Support

The BC discussed  - but reached no agreement on - whether funds from the
DVSF alone or funds from the DVSF combined with funds from
ICANN-administered/mandatory dues could be used for policy-oriented,
professional services, although it was clear that most of the funds for
policy-oriented professional services would have to come from the DVSF.
This is important since it is unclear how much will be raised in the DVSF,
creating some uncertainty in the search process for policy-oriented
professional support.  Accordingly, the BC created a Sub-Committee to manage
the search process consisting of Phillip, Erica and Chuck and asked the
Sub-committee to begin work forthwith on planning an conducting a search for
policy-oriented, professional support services, subject to:  (1) the job
description is as previously agreed to; (2) the Subcommittee should
investigate the possibility that such service might be provided by either an
individual or an organization; (3) In any recruitment efforts, the
Sub-Committee should be truthful in characterizing the funding situation,
with the understanding that the target amount needed to proceed to serious
recruitment discussions would be around $120,000 in cash on hand or reliable
commitments; and (4) the Sub-Committee should report back to the BC
periodically on its progress.


3. ICANN-Administered/Mandatory Fees-Related Activities

The BC recognized that, at present ICANN management, is administering around
$72,000 of funds that have been collected in mandatory fees from DNSO
Constituencies for the purpose of DNSO operations, and that this amount is
significantly less than the $96,000 that the Names Council had approved for
the DNSO's Calendar Year 2000 budget. Accordingly, the BC has begun the task
of developing a revised DNSO budget for 2000 and recommending to the Names
Council a specific set of expenses that should be authorized.

At the outset, the BC attempted to establish whether there are any claims
against the $72,000 in ICANN-administered funds.  At this point, Elisabeth
recused herself as a member of the Budget Committee and represented AFNIC, a
service-provider to the DNSO and a potential claimant against these DNSO
funds.  AFNIC indicated that during Calendar Year 1999, it had primarily
donated services to the DNSO (with the exception of certain telephone
expenses), but that for Calendar Year 2000, some of its services to the DNSO
were on a commercial basis, for which it expected compensation. AFNIC was
not able to estimate at this time how much it felt it was due to it for
services during 2000, although it indicated that during this year it was
continuing to donate some services to the DNSO as well as to provide some
services on a commercial basis.  The BC recognized that it could proceed no
further on the topic of 2000 expenses until this matter was clarified and it
asked AFNIC to provide it with an assessment of the services (both donated
and commercial) that AFNIC feels AFNIC has provided to the DNSO in 2000, and
a statement of AFNIC's view of the monthly costs of these services on a
going-forward basis.


4. ICANN Administration of DNSO Funds

A copy of a note from ICANN President Mike Roberts to Names Council Chair
Ken Stubbs was circulated to the BC and there was a preliminary discussion
of the alternative arrangements for the management of DNSO funds.  The BC
decided to discuss this further at its next meeting.


5.  Next Meeting

The BC agreed to meet next in person (call in will be available for anyone
not able to attend in person) on Sunday, November 12th at 6:30 PM at Roger
Cochetti's room at the Marina del Ray Marriott Hotel in Los Angeles.  At
that time, it will resume its discussion of potential recommendations to the
Names Council for the disposition of the ICANN-administered mandatory DNSO
fees, and discuss the DNSO fund-raising campaign as well as the issue of the
long term administration of the DNSO account.  ICANN management has been
invited to make a presentation to the BC on this item.                     






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         As of Tuesday, 18 October, ICANN's records indicate that
         it has received the following amounts on behalf of the
         DNSO:

                                  1st Call          2d Call
         Business Constituency   $5,000.00       $13,642.86 
         ccTLD Constituency      $2,757.41            $0.00 
         gTLD Constituency       $5,000.00       $13,642.86 
         IP Constituency         $5,000.00       $13,642.86 
         ISP Constituency            $0.00            $0.00 
         NCDNHC                  $3,085.00            $0.00 
         Registrars Constituency $5,000.00        $3,000.00 
         Total paid             $25,842.41       $43,928.58 

         Total both calls -     $69,770.99
         Net outlays -          $ 2,700.00
         Remaining available -  $67,070.99

ADD IN ISP FUNDS RECEIVED:  $72,070.99