Re: [CWG-Stewardship] [community-finance] FY17 Budget update: Section 4 on IANA Stewardship
Without any intention to detract from Michele’s main questions, I inserted a few comments below that I think are important to keep in mind. Chuck From: community-finance-bounces@icann.org [mailto:community-finance-bounces@icann.org] On Behalf Of Michele Neylon - Blacknight Sent: Thursday, June 23, 2016 9:26 AM To: Xavier J. Calvez; community-finance@icann.org; cwg-stewardship@icann.org Cc: Executive Team; BFC Subject: Re: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship Xavier Just reading over this and a few comments / concerns. It sounds like this expenditure is being viewed as a fait accompli and it’s really case of moving things around to work out how it will be funded, which seems a bit backwards. How can you agree on the expenditure for a project without knowing how you will fund it? [Chuck Gomes] Don’t we know how it will be funded, i.e., via reserves? What we don’t know is whether the reserves will be restored and how, as Michele notes below. The reserves are already depleted and there doesn’t appear to be any firm plan on how those reserves will be restored, unless I missed something. Yet the expenditure keeps growing. [Chuck Gomes] As I understand the word ‘depleted’, I don’t think that it is accurate to say that the reserves are depleted. In my mind, that would mean there are no reserves left. As I am sure Michele knows, that is not the case. But it is true that they have been significantly reduced. There also appears to be sufficient reserves to cover future unbudgeted expenses and still have a sizable balance in the reserves, albeit a lot less than the currently targeted level of one year of operating expenses. The legal fees are again ridiculously high. How does ICANN select vendors for these kind of services? Is there a tender process? Is there an RFP? [Chuck Gomes] Note that the CWG Stewardship via its client committee and the CCWG Accountability via its mechanisms selected the two external legal firms. That doesn’t mean that any existing tender processes shouldn’t have applied but I am pretty sure that time constraints were an issue. Regards Michele -- Mr Michele Neylon Blacknight Solutions Hosting, Colocation & Domains http://www.blacknight.host/ http://blog.blacknight.com/ http://ceo.hosting/ Intl. +353 (0) 59 9183072 Direct Dial: +353 (0)59 9183090 ------------------------------- Blacknight Internet Solutions Ltd, Unit 12A,Barrowside Business Park,Sleaty Road,Graiguecullen,Carlow,R93 X265,Ireland Company No.: 370845 From: <community-finance-bounces@icann.org<mailto:community-finance-bounces@icann.org>> on behalf of "xavier.calvez@icann.org<mailto:xavier.calvez@icann.org>" <xavier.calvez@icann.org<mailto:xavier.calvez@icann.org>> Date: Monday 20 June 2016 at 03:07 To: "community-finance@icann.org<mailto:community-finance@icann.org>" <community-finance@icann.org<mailto:community-finance@icann.org>>, "cwg-stewardship@icann.org<mailto:cwg-stewardship@icann.org>" <cwg-stewardship@icann.org<mailto:cwg-stewardship@icann.org>> Cc: Executive Team <executive-team@icann.org<mailto:executive-team@icann.org>>, BFC <fin-comm@icann.org<mailto:fin-comm@icann.org>> Subject: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship Dear all, Please find attached an extract from the final FY17 Budget document relative to the IANA Stewardship transition (Section 4), currently under review, prior to Board consideration for approval in Helsinki. You may remember that the Draft budget document submitted for public comment did not include information on the FY17 expenses for this project. The Project Cost Support Team created in Marrakech has been working with the BFC, the CCWG, CWG, ICG co-chairs and involved staff to estimate the draft project’s expenses for FY17. These draft estimates have been included in the attached section (total $8.8m, page 3/10). Though offered late in the process, as these estimates are under review, your comments and questions on this section are welcome. Thank you. Best, Xavier Xavier Calvez ICANN CFO 12025 Waterfront Drive, Suite 300 Los Angeles, CA 90094 Office : +1 (310) 301 5838 Mobile : +1 (805) 312 0052 Fax : +1 (310) 957-2348
For some reasons Michele's mail did not reach the list(or better put did not reach me). FWIW, I thought I was the only one that had significant concern on the legal costs for this process. The arguments made earlier was that this is normal pricing for top notch firm with the required speciality in California law. Unfortunately opening things to RFP at this stage may not be a wise thing to do as we will loose significant "knowledge about ICANN" that the current firm now have (which ofcourse was one of the reasons for the high amount already expended). Regards Sent from my LG G4 Kindly excuse brevity and typos On 23 Jun 2016 15:00, "Gomes, Chuck" <cgomes@verisign.com> wrote:
Without any intention to detract from Michele’s main questions, I inserted a few comments below that I think are important to keep in mind.
Chuck
*From:* community-finance-bounces@icann.org [mailto: community-finance-bounces@icann.org] *On Behalf Of *Michele Neylon - Blacknight *Sent:* Thursday, June 23, 2016 9:26 AM *To:* Xavier J. Calvez; community-finance@icann.org; cwg-stewardship@icann.org *Cc:* Executive Team; BFC *Subject:* Re: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship
Xavier
Just reading over this and a few comments / concerns.
It sounds like this expenditure is being viewed as a fait accompli and it’s really case of moving things around to work out how it will be funded, which seems a bit backwards. How can you agree on the expenditure for a project without knowing how you will fund it?
*[Chuck Gomes] Don’t we know how it will be funded, i.e., via reserves? What we don’t know is whether the reserves will be restored and how, as Michele notes below.*
The reserves are already depleted and there doesn’t appear to be any firm plan on how those reserves will be restored, unless I missed something. Yet the expenditure keeps growing.
*[Chuck Gomes] As I understand the word ‘depleted’, I don’t think that it is accurate to say that the reserves are depleted. In my mind, that would mean there are no reserves left. As I am sure Michele knows, that is not the case. But it is true that they have been significantly reduced. There also appears to be sufficient reserves to cover future unbudgeted expenses and still have a sizable balance in the reserves, albeit a lot less than the currently targeted level of one year of operating expenses.*
The legal fees are again ridiculously high. How does ICANN select vendors for these kind of services? Is there a tender process? Is there an RFP?
*[Chuck Gomes] Note that the CWG Stewardship via its client committee and the CCWG Accountability via its mechanisms selected the two external legal firms. That doesn’t mean that any existing tender processes shouldn’t have applied but I am pretty sure that time constraints were an issue.*
Regards
Michele
--
Mr Michele Neylon
Blacknight Solutions
Hosting, Colocation & Domains
Intl. +353 (0) 59 9183072
Direct Dial: +353 (0)59 9183090
-------------------------------
Blacknight Internet Solutions Ltd, Unit 12A,Barrowside Business Park,Sleaty
Road,Graiguecullen,Carlow,R93 X265,Ireland Company No.: 370845
*From: *<community-finance-bounces@icann.org> on behalf of " xavier.calvez@icann.org" <xavier.calvez@icann.org> *Date: *Monday 20 June 2016 at 03:07 *To: *"community-finance@icann.org" <community-finance@icann.org>, " cwg-stewardship@icann.org" <cwg-stewardship@icann.org> *Cc: *Executive Team <executive-team@icann.org>, BFC <fin-comm@icann.org> *Subject: *[community-finance] FY17 Budget update: Section 4 on IANA Stewardship
Dear all,
Please find attached an extract from the final FY17 Budget document relative to the IANA Stewardship transition (Section 4), currently under review, prior to Board consideration for approval in Helsinki.
You may remember that the Draft budget document submitted for public comment did not include information on the FY17 expenses for this project. The Project Cost Support Team created in Marrakech has been working with the BFC, the CCWG, CWG, ICG co-chairs and involved staff to estimate the draft project’s expenses for FY17. These draft estimates have been included in the attached section (total $8.8m, page 3/10).
Though offered late in the process, as these estimates are under review, your comments and questions on this section are welcome.
Thank you.
Best,
Xavier
Xavier Calvez
ICANN
CFO
12025 Waterfront Drive, Suite 300
Los Angeles, CA 90094
Office : +1 (310) 301 5838
Mobile : +1 (805) 312 0052
Fax : +1 (310) 957-2348
_______________________________________________ CWG-Stewardship mailing list CWG-Stewardship@icann.org https://mm.icann.org/mailman/listinfo/cwg-stewardship
Michele, Chuck, and everyone, I have inserted my comments below, after Chuck’s. Thank you. Best, Xavier Xavier Calvez ICANN CFO 12025 Waterfront Drive, Suite 300 Los Angeles, CA 90094 Office : +1 (310) 301 5838 Mobile : +1 (805) 312 0052 Fax : +1 (310) 957-2348 From: Charles Gomes <cgomes@verisign.com> Date: Thursday, June 23, 2016 at 4:59 PM To: Michele Neylon - Blacknight <michele@blacknight.com>, Xavier Calvez <xavier.calvez@icann.org>, "community-finance@icann.org" <community-finance@icann.org>, "cwg-stewardship@icann.org" <cwg-stewardship@icann.org> Cc: Executive Team <executive-team@icann.org>, BFC <fin-comm@icann.org> Subject: RE: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship Without any intention to detract from Michele’s main questions, I inserted a few comments below that I think are important to keep in mind. Chuck From: community-finance-bounces@icann.org [mailto:community-finance-bounces@icann.org] On Behalf Of Michele Neylon - Blacknight Sent: Thursday, June 23, 2016 9:26 AM To: Xavier J. Calvez; community-finance@icann.org; cwg-stewardship@icann.org Cc: Executive Team; BFC Subject: Re: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship Xavier Just reading over this and a few comments / concerns. It sounds like this expenditure is being viewed as a fait accompli and it’s really case of moving things around to work out how it will be funded, which seems a bit backwards. How can you agree on the expenditure for a project without knowing how you will fund it? [Chuck Gomes] Don’t we know how it will be funded, i.e., via reserves? What we don’t know is whether the reserves will be restored and how, as Michele notes below. [Xavier Calvez] The FY17 Budget that is intended for approval assumes that the expenditures will be funded by the Reserve Fund, as a temporary measure, until a community consultation on the ultimate mode of funding has been completed in short order. In addition, the expenses estimates included in the budget, which have been produced by the Project Cost Support Team (PCST) created in Marrakech, have been submitted by the co-chairs of the CCWG to the Chartering Organizations for their approbation. The reserves are already depleted and there doesn’t appear to be any firm plan on how those reserves will be restored, unless I missed something. Yet the expenditure keeps growing. [Chuck Gomes] As I understand the word ‘depleted’, I don’t think that it is accurate to say that the reserves are depleted. In my mind, that would mean there are no reserves left. As I am sure Michele knows, that is not the case. But it is true that they have been significantly reduced. There also appears to be sufficient reserves to cover future unbudgeted expenses and still have a sizable balance in the reserves, albeit a lot less than the currently targeted level of one year of operating expenses. [Xavier Calvez] total expenses over 3 years (FY15/16/17) will have been $37m, and will make the Reserve Fund go from about $88m to $51m. The Reserve Fund has currently a target level of 12 months of operating expenses. Using the FY16 budget, the target level should be $113m as a result, and the gap between balance and target would be then of $62m, if nothing is done about replenishment. Separately, the Board has been working on the Reserve Fund rationale, target level and governance, including definition an approach to replenishment. The legal fees are again ridiculously high. How does ICANN select vendors for these kind of services? Is there a tender process? Is there an RFP? [Chuck Gomes] Note that the CWG Stewardship via its client committee and the CCWG Accountability via its mechanisms selected the two external legal firms. That doesn’t mean that any existing tender processes shouldn’t have applied but I am pretty sure that time constraints were an issue. [Xavier Calvez] The selection of the legal firms that have provided independent legal advice since last year has happened on the basis of a comparative evaluation process using proposals received from firms who were requested to make a proposal. Those firms were selected on the basis of their experience and apparent competence. The evaluation and decision processes were conducted by a client committee including ICANN staff and community members. Regards Michele -- Mr Michele Neylon Blacknight Solutions Hosting, Colocation & Domains http://www.blacknight.host/ http://blog.blacknight.com/ http://ceo.hosting/ Intl. +353 (0) 59 9183072 Direct Dial: +353 (0)59 9183090 ------------------------------- Blacknight Internet Solutions Ltd, Unit 12A,Barrowside Business Park,Sleaty Road,Graiguecullen,Carlow,R93 X265,Ireland Company No.: 370845 From: <community-finance-bounces@icann.org<mailto:community-finance-bounces@icann.org>> on behalf of "xavier.calvez@icann.org<mailto:xavier.calvez@icann.org>" <xavier.calvez@icann.org<mailto:xavier.calvez@icann.org>> Date: Monday 20 June 2016 at 03:07 To: "community-finance@icann.org<mailto:community-finance@icann.org>" <community-finance@icann.org<mailto:community-finance@icann.org>>, "cwg-stewardship@icann.org<mailto:cwg-stewardship@icann.org>" <cwg-stewardship@icann.org<mailto:cwg-stewardship@icann.org>> Cc: Executive Team <executive-team@icann.org<mailto:executive-team@icann.org>>, BFC <fin-comm@icann.org<mailto:fin-comm@icann.org>> Subject: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship Dear all, Please find attached an extract from the final FY17 Budget document relative to the IANA Stewardship transition (Section 4), currently under review, prior to Board consideration for approval in Helsinki. You may remember that the Draft budget document submitted for public comment did not include information on the FY17 expenses for this project. The Project Cost Support Team created in Marrakech has been working with the BFC, the CCWG, CWG, ICG co-chairs and involved staff to estimate the draft project’s expenses for FY17. These draft estimates have been included in the attached section (total $8.8m, page 3/10). Though offered late in the process, as these estimates are under review, your comments and questions on this section are welcome. Thank you. Best, Xavier Xavier Calvez ICANN CFO 12025 Waterfront Drive, Suite 300 Los Angeles, CA 90094 Office : +1 (310) 301 5838 Mobile : +1 (805) 312 0052 Fax : +1 (310) 957-2348
participants (3)
-
Gomes, Chuck -
Seun Ojedeji -
Xavier J. Calvez