March 10, 1998 Minutes

Board of Directors Meeting

A meeting of the Board of Directors of the Universal Service Administrative Company (USAC) was held via conference call on the above date. The meeting was called to order at 5:00 P.M. EST by Lisa Rosenblum, Chair. Edward English, Secretary and Treasurer called the roll.

1. Ms. Rosenblum welcomed the Board. The announced purpose of the meeting was to decide on the disposition of the letters to the Commission discussed at the February 27, 1998 meeting, decide how to deal with the anticipated funding shortfall in March due to non-payment and decide on the merits of requesting additional contributions to make up the shortfall.
   

2. Mr. English briefed the Board on the status of February collections. Ms. Rosenblum briefed the Board on the proposed content of the letters to the Commission. The letters would describe the rationale behind the steps taken by USAC to meet the February shortfall and additional steps being pursued by USAC, such as obtaining credit lines and borrowing authority. The letters would also request that the Commission support USAC in conducting a vigorous collection effort. It was decided that the Budget and Finance Committee would perform an analysis of the elements contributing to the funding shortfall before requesting that the contribution factors be adjusted. The Board discussed the appropriate signatory on the letter to Commissioner Furchtgott-Roth and on a motion duly made and seconded the Board designated Ms. Rosenblum, as the USAC Chair, sign the letter on behalf of the full Board. It was also decided as a matter of form that the request for clarification of the use of interfund transfers be addressed to the Secretary. The Board instructed Mr. English to continue to employ interfund transfers to meet the anticipated March shortfall.
   

3. Ms. Rosenblum announced that progress had been made by Mr. Donald Biskin from Heidrick and Struggles in the search for a USAC CEO. She requested an Executive Session of the USAC Board be convened on Friday, March 13, 1998 to discuss the merits of the primary candidate.

There being no further business to attend to, on a motion duly made and seconded the meeting was adjourned at 5:39 P.M.

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Edward R. English
Secretary

March 10, 1998
Date