SRS Committee Report 01/03/02
Report of the IOC
Council meeting, 1 March 2002
The IOC met yesterday evening, chaired in the absence of Drew by Jordan Carter, with Jordan, Richard Bourne and Bill Parkin present. Doug Mercer and Rose Percival were in attendance.
1. SRS Contracts
The Committee is of the view that Internet NZ should ensure it retains control of the software for the SRS registry. Given the reluctance by Domainz to sign the memorandum of understanding at this time (which was proposed to protect Internet NZ's rights in the software, and allow its easy transfer to the new Registry Company), the IOC passed the following, unanimously:
THAT all future contracts for the development of the SRS be signed between Internet NZ (or the new Registry Company) and the developer.
It is proposed that the Registry company take over all contracts as soon as possible once it is set up.
The purpose in ensuring all future contracts are signed in this way is to ensure that tax liabilities and benefits will end up in the right place - with Internet NZ or the Registry company. There are a variety of ways in which Domainz (or a third party) could assist with funding the development which don't necessarily result in a large front-end dividend payment.
2. Joint meeting with the Board
The IOC is concerned to ensure that the Society and Domainz do not proceed at cross purposes, given that the decisions taken at February Council appear to have been unexpected by the Company.
To ensure common ground is reached and that both parties have the chance to communicate in an effective way, we propose a meeting of the following:
- The Board of Domainz
- The IOC
- The Officers of Internet NZ
- with the Executive Director, CEO of Domainz, and the Implementation Staff included as necessary.
The purpose of such a meeting would be to map out options for the future. We regard it as an important part of the SRS transition that the Society provides a very clear lead on what it requires of Domainz, and we regard this as a way to achieve this outcome, which is desired by Domainz and by Internet NZ Council. The need for such a meeting is not necessarily reduced by today's meeting of the full Council and Board members.
3. Cashflow forecast for the Registry
Rose presented the meeting with a cashflow forecast for the eight quarters of the Registry's operations. It will be presented to Council, but key points to note include:
- Total cost required from Domainz for capital development amounts to approximately $1m, $300k in the quarter to June 02, and $700k in the following quarter.
- The budget is conservative in that it includes additional contingencies, and uses costs based on Domainz figures and peer reviewed by EY. It also assumes slow (0.33%/month) growth in name registrations, to be doubly safe.
There are a number of ways in which the development and pre-establishment costs outlined in this budget can be funded. A further meeting between the Board and the Society needs to be convened urgently to discuss these.
