Subject: Important Notice
From aa287 Wed Apr 16 18:19:30 1997
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From: aa287 (Veronica MacPhee)
Subject: IMPORTANT NOTICE
Date: Wed, 16 Apr 1997 18:18:44 -0400 (EDT)
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Dear Member:
Although the communication that follows is somewhat lengthy, because
it may have an effect on your membership with the Durham Free-Net,
we trust you will take the time to carefully read it.
The Durham Free-Net has been online to the general public for about
a year and a half. During that time we have been able to primarily
rely on Government funding, through the ONIP program, to sustain our
operation. In fact, ONIP funding accounted for about 80% of our
operating income. Most of the balance came from our membership.
Our contract with ONIP comes to an end as of the last day of April.
Because we have not been able to adequately supplement this income
from other sources we are in a financial crisis. We received our
last advance from ONIP in January of this year. This advance
stretched the terms of our agreement to the limit. Since then our
critical milestones have not improved, in fact they have
deteriorated. As such, no further funds are deemed available under
this program.
Given our current cash position and considering anticipated revenues
we will not be able to continue operating in the black beyond the
end of May 1997. This unfortunately means that if there is not a
sufficient influx of funds* prior to that date, the Durham Free-Net
will cease operations at midnight on May 31, 1997. The board will
decide on an appropriate non-profit organization to receive the
assets as set out in our By-laws.
*(A sufficient influx of funds would have to entail a plan for short
term operation, at least 6 months, and preferably a viable and
feasible plan for the longer term. We will have more to say on
this below.)
We could probably have chosen to struggle on a little longer than
the end of May, however, considering how we got to this point, the
risk of going into debt and ending up in a very messy situation is
highly probable. We will therefore not be extending the operations
on a month to month basis hoping that enough funds will show up to
cover the costs.
The current Administration has worked long and hard to try and make
the Durham Free-Net a reality. We have approached most segments of
our community for support and some have responded. But no where
near enough. Other fund raising activities have been tried without
success. We now believe that the project as designed cannot be
funded as originally planned. A review of our original budget
compared with our financial reports clearly tells this story.
(Information on budgets and financial statements can be found under
About the Durham Free-Net from the main menu.)
The last thing the administration wants to see is the Durham
Free-Net close its doors. Some of us have been around from the
beginning and we all find it very difficult even depressing to have
reached this stage. We would prefer that we had other alternatives.
We do have a hope, however, that once this eMail reaches all of its
destinations that other alternative proposal for the survival of the
Durham Free-Net will be put forward. We sincerely hope there is
still time for this to happen.
Keeping in mind the mandate under which we are incorporated, as
members of the Durham Free-Net you have the opportunity, and under
certain circumstances the right, to provide a proposal for the
operation of our network. This opportunity extends even beyond the
membership to our information providers and in fact to all residents
of all our communities within the Durham Region.
As we indicated above any alternative proposal would have to be
well thought out. It would have to be feasible considering our
mandate. It would have to be economically viable, both in the short
and long term. It would also have to consider the human resources
required to carry out all of its aspects. current operating
expenses require funding of a minimum of $40,000.00 per year, not
counting any salaries that may be required in your plan.
Any proposal that does not consider all of the foregoing would in
all likelihood find itself in the same position we are now. Although
heart and energy are necessary prerequisites for success of any
project they are not sufficient. All proposals must contain a viable
operating plan that supports the mandate, otherwise they cannot be
accepted.
We will be setting up a website that will contain this communication
along with proposal guidelines and any other information deemed
necessary as we go into this phase of our operation.
If you or your group feel you can put forward a proposal, please do not
wait for the website. Also if you feel more time is required make
sure your proposal takes into consideration the May 31, 1997
deadline.
Yours very truly,
Durham Free-Net Inc
Board of Directors
--
Veronica MacPhee - aa287@freenet.durham.org