Status: Board Approved 12/16/99

Board President Gerald Kato called the meeting to order at 1:25 p.m.

The minutes of the September 23, 1998 Board of Directors meeting with amendments made by the Board, and an attachment addendum of comments made by the public were approved.

A. President’s Report


President Gerald Kato did not have a report to present.

B. Executive Director’s Report



1. Lurline reported that `Olelo has experienced manufacturer’s delays in receiving the new replacements. However, the satellite centers are close to being fully equipped, and training has begun. She also mentioned that there is a high volume of usage both at Waianae and Kahuku, and both centers are going very well.
   
   
2. Gerald asked if the satellite users have started to generate programming. Lurline replied that we have generated programming from both satellites and that Waianae will be submitting a series that is in final stages of editing and post production.
   
   
3. Lurline also reported that staff is finalizing a promotional plan that will give more identity to the stations. The staff is planning to launch the plan in January as a means to increase viewership. `Olelo is trying to reach out to the community and bring in new viewers through these new promotional ideas.
   
   
4. Lurline also mentioned receipt of a letter from Senator Les Ihara requesting withdrawal of his earlier grant request. However, Senator Ihara would like to keep this matter pending. He might request a grant later, but is not seeking any action at this time.
   
   
5. Bob asked if the $4,000 requested by Senator Ihara is a loan.
   
   
6. Lurline clarified that Senator Ihara is seeking a grant, not a loan.
   
   
7. Lurline also reported that `Olelo is completing the budget for next year.
   
   
8. The HENC agreement development is coming to a close. A current draft of the HENC agreement was received today, copies of which are in the Board packet. Lurline recommended that a Board meeting be scheduled after members have a chance to review the HENC agreement.
   
   
9. Bob asked about the time limits for the HENC agreement approval. Lurline replied that HENC had originally planned on a November 1 approval. Therefore, action as soon as possible, is in order. The Board discussed the time needed to frame a reasonable response to the HENC agreement.
   
   
10. Mildred asked about possible impact of the agreement date on staff at the University of Hawaii and the Department of Education funded through `Olelo grants. Gerald said he would look into the matter.
    
    
11. Gerald stated that the delay involved crafting language acceptable to the lawyers for the HENC agreement.
    
    
12. Phil mentioned that as a result of a meeting between HAIS, DOE, and UH the funds may be treated as temporary/interim funding. He also stated that once the agreement was approved, HENC needed to submit guidelines and proposals. This interim funding might avert the necessity to shut down their programs or interrupt activities.
    
    
13. Gerald asked `Olelo staff to get in touch with HENC to determine time frames and see whether another Board meeting would be necessary.
    
    
14. The Board further discussed having attorneys review the HENC agreement before taking final action.
    
    
15. Bob asked Lurline what percentage of the new equipment purchases were digital and analog. Lurline replied (inclusive of the satellite facilities) digital equipment made up more than half of the total. She went on to state that we are also replacing cameras, and will continue to have all formats available to clients.
    
    

C. Finance Committee Report


1. Bob reported on the statement of revenues and expenditures for January through September 1998.
   
   
2. Bob further reported that having some carry-over of funds for the next year would be beneficial, and recommended that efforts continue to save as much money as possible.
   

A. Board Nominations - Gerald asked that this item be deferred until Susan Doyle arrived.

B. DCCA Contract


1. Lurline reported that she, Kathy, and Susan, reviewed the DCCA contract word for word and were comfortable with it.
   
   
2. Lurline also mentioned that our attorneys have not yet reviewed the DCCA contract. The board members requested that this document be reviewed by counsel. At this point the DCCA contract is pending attorney’s review accordingly.
   

C. Management Audit Status


1. Lurline reported she is awaiting word back from the DCCA based on materials sent to them. She also mentioned that Clyde Sonobe met with Senator David Ige to go over the comments offered by the auditor.

2. Lurline reported that Senator Ige is requesting an audit going back three years to assess adherence to our operations manual, our equipment acquisition and disposal policies, and our bylaws. Senator Ige also suggested that `Olelo use a national audit firm to do this audit. Lurline is still awaiting Clyde’s list of operations policies that need to be further examined.

3. In the interim Lurline contacted three auditors. Their opinion of this audit is that it would be of limited value to the organization. It would potentially cost up to $50,000.00. The matter is on hold until we can give them more specific information from Clyde.

4. Lurline further reported that as a means of assessing current policies and services we are conducting a viewer survey and a client survey.

5. Bob asked if our relationship with DCCA and the Legislature would be jeopardized if we did not conduct the audit.

6. Lurline replied that it was not a binding resolution. She further stated that some Legislators have made it clear to her that `Olelo is not obligated to do the audit.

7. Marilyn suggested that we might want to wait to approve an extended audit based on the information received from the client/viewer survey.

8. Bob asked Lurline to draft a letter to the Legislature to express the Board’s views that an audit covering three previous years of activities is not the best use of `Olelo’s resources.

D. Board Nominations

1. Gerald and Bob requested that the Board proceed in its discussions regarding nominations and asked Lurline to report on the current status of same.

2. Lurline reported that we will have four openings at the end of this year, inclusive of one Oceanic appointment as well as filling ending positions for Mildred and Heather. Phil is also resigning from the Board at the end of this year.

3. Lurline further reported that Marilyn most likely will be reappointed by Don Carroll of Oceanic. Three other nominations are recommended to be forwarded to the DCCA for consideration. The three applicants are Gary Honda, a community producer, recommended by the Access Services Advisory Committee, Joe Lapalio of QLCC, and Rochelle Gregson of Aloha United Way.

4. Phil moved that we send a letter to the DCCA Director supporting the above mentioned Board nominees, Bob seconded.

5. Wendy Arbeit commented that the CTPA would like to submit two more names, Brian Lee and Ray O’Leary, to be accepted as Board nominations.

6. Gerald asked if there was any other discussion relating to the Board nominations. Jeff Garland responded by saying the ASAC Committee did not seek public input regarding Board nominations.

7. Mr. O’Leary reported that he spoke with Ms. Matayoshi last week about `Olelo Board nominations and was told that the nominations have not been closed and recommended that he submit his nomination immediately. He also mentioned that he did not see the bulletin posted for Board nominations, and that he was not aware of the closing date.

8. Miki reported that an announcement was posted in the media center and `Olelo’s Island Info channel bulletin board.

9. The Board members further discussed Board nominations and traits that would make good appointments to the Board based on the goal of achieving diversity and balance.

10. Gerald reported that it had been moved and seconded to forward the three names to the DCCA. Those three names were Gary Honda, Joe Lapalio, and Rochelle Gregson. The Board agreed unanimously.

V. Public Comment

A. Wendy Arbeit reported that in the last meeting there were a couple of issues relating to Board correspondence that were not responded to, including the cost of Miki Lee’s travel expenses as a member of the Alliance for Community Media Board.

B. Gerald stated that staff would be responsive to reasonable and appropriate requests.

C. Ray O’Leary asked about the cost of the viewer survey. Lurline replied that it costs approximately $10,000.00.

D. Ray further questioned where the $50,000.00 dollar amount for the management audit is coming from. Was it an approximation or bid from someone? Lurline replied that the $50,000.00 dollar amount was an approximation mentioned by the auditors she spoke with based on the scope of work described to them.

E. Lurline reported that she spoke with DeLoitte & Touche, Ernst & Young, and Peat Marwick to get their response about the management audit cost.

F. Jeff Garland mentioned that he was concerned that in the past `Olelo had done all sorts of studies and spent a lot of money that resulted in no improvements.

G. Jeff also asked if `Olelo will be spending $25,000.00 for the KHET merger study. Bob indicated that the board had already appropriated that amount for the study.

H. Jeff, Bob, and Gerald continued discussing ways that `Olelo could become more efficient in doing business with clients at `Olelo. They reaffirmed their interest in making things work better.

Before adjourning, Gerald reminded the Board that the next Board meeting is scheduled for December 16, 1998, and that there may be another meeting scheduled before that.

Bob moved, and Marilyn seconded the motion to adjourn.

The meeting was adjourned at 2:34 p.m.



Respectfully submitted,



Linda M. Colburn, Secretary