Finance Chair Mike Masuda reported to the Board that at the last finance committee meeting, the committee reviewed the budget proposal for 2003 and proposed staff compensation plan. Mike proposed that the Board to adopt the Staff Compensation Plan for `Ælelo. Mike reported that the staff compensation plan is a very comprehensive plan. Jack Roose, who is a professional consultant with Watson and Wyatt, a human resources consulting firm, provided a detailed presentation of his methodology and his results at the committee meeting. The study took into account non-profit compensation levels within the industry for comparable positions in the production business. The purpose of this study was to attract, retain and award the best employees for `Ælelo's clients. This review included reviewing job descriptions, salary trends and industry compensation levels. `Ælelo will now have a systematic way to review employees' performance, set goals, evaluate them and reward staff efforts.

Rochelle Gregson informed the Board that the Staff Compensation Plan provides a framework and ties the efforts of the Staff to the mission, goals and objectives of `Ælelo. The compensation plan will be used as a means and instrument to evaluate performance against objectives.

The Board unanimously adopted the Staff Compensation Plan.

Mike also moved that the Board to adopt the 2003 operating budget.

Lurline McGregor updated the Board on the highlights of the 2003 operating budget. The budget is based on last year and prior years budgets. Many of the items in the operation budget are fixed. The line items that have been underspent will be decreased and line items that were overspent will be increased. The largest item is personnel, which represents an increase of seven full-time and two part-time staff members. Next year's budget reflects two strategic initiatives that staff will be focusing on. The first is the creation of two new satellite facilities. Staff has begun identifying steps that will lead to the creation of the satellites. All of the affiliated costs for the satellite centers are reflected in the budget. The second initiative is for the mentoring program. Staff used a non-linear mentor this year and so far it has met with a lot of success, thus staff plans to continue the program next year. Staff is proposing a facilities manager, a director for client services, two part-time receptionists for evenings and satellite positions. The other cost reflected in the personnel line item is a salary adjustment for positions that came below the baseline that was developed in the salary adjustment study and a 6% merit increase which takes into account the fact that there have been no raises in three years. The merit increases are not automatic but tied to the performance evaluation.

Mike moved that the Board to approve the 2003 Capital Budget.

Lurline reported to the Board that the capital budget comes within a few hundred dollars of the allocated amount of capital funds that ‘Ōlelo will be receiving this year. Most of the budget will go towards the replacement of existing capital items. New items that are highlighted are a new final cut pro station for training, a cyclorama for the studio, a new light kit for the PD-100 and a 3.0 upgrade for the final cut pro. Olelo is also budgeting to expand the parking lot for more staff and client parking.

The Board unanimously approved the 2003 Capital Budget.

Program Committee Chair Gary Honda reported to the Board that the ASAC

Committee has not been able to meet as scheduled for the last 3 months due to conflicts in member schedules that resulted in a lack of quorum for the last three months. The Program Committee has been discussing ways in which to determine how best to get the committee together. Gary agreed to contact all members of the ASAC committee by phone to determine what can be done to

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bring everyone to the table, how to plan for the future and to develop an overall opinion about ASAC. The major agenda item for ASAC was to discuss ASAC's responsibilities. The goal of this discussion was to focus on whether there was a need to make changes to what ASAC is and how it can be effective in achieving its goals.

Gary also reported to the Board that the Program Committee has met twice since the last board meeting. At its last meeting, it was agreed that it would focus on the following for the remainder of the year: first, update the strategic plan in areas concerning the committee. Second, working with ASAC to bring everyone back to the table. In light of the current situation, the ASAC elections were postponed until this issue can be resolved. The committee agreed to wait for Gary's report on his discussion with each of the ASAC member before taking further action on this matter. The issue of the ASAC evaluation was also put on hold until Gary reports back. Third, planning for the new year.

Gary informed the Board that the committee is working on details for a special Board award to be presented at the annual `Olelo Awards banquet in December. Tentatively, the award will be for achievement in supporting the goals of ‘Olelo.

Lurline reported to the Board that the Grand Opening of the Wai`anae Satellite Center will be on Saturday, November 16<sup>th</sup> from 11:00 a.m. to 1:00 p.m. The opening will be sponsored by Leeward Community College, Wai`anae High School and ‘Olelo. Senator Daniel Inouye has been invited to speak, details have not been finalized and all board members are invited to attend opening.

Lurline informed the Board that Kealii Lopez and Gary Honda are working on a nomination list for "Community Access Champion of the Year Award" for ‘Olelo's upcoming Volunteer Party scheduled this year for Saturday, December 13^th beginning at 5:00 p.m. at Kapiolani Community College. Board members are encouraged to attend.

Lurline reported to the Board that there are no third quarter strategic plan update handouts available. Staff is already beginning their year end reports and is starting to develop next year's goals based on this year's accomplishments. Lurline informed the Board on some of the third quarter highlights. First, ‘Olelo has set up a dub station for clients to make copies of their programs. Second, the nonlinear mentoring program has been a huge success and has reached new groups.

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Third, the overall completion rate for finished client projects has improved this past quarter, although it is too soon to tell what the reasons were for this past quarter increase. Fourth, Vote!2002 has gone well. ‘Ōlelo fulfilled all seven parts of the initiative. ‘Olelo will be doing a Ward Research survey shortly after the election to get an idea of how many people were aware of our efforts and viewership. CIF had the highest participation rate this year compared to when Olelo first started providing this service in 1992.