Basically, what we propose in this resolution is for the MEI to become a self governing body, completely independent of AGBU control, and under the democratic leadership of the global Melkonian ALUMNI community.  MEI will take over all the buildings and facilities on its campus, the Trade Center, the Club, the House of the Melkonian Brothers, the Teachers' Residences and the Melkonian Endowment fund (currently valued at $ 5,500,000).
    AGBU will also give MEI an interest free loan of $6,500,000 for a duration of 5 years.  In the meantime an intensive fundraising campaign will gradually cover this debt, leaving MEI with an endowment fund that will ensure its perpetual existence and a gradual return to its former glory.

   Please note that this is not a fixed document yet and we are regularly updating it in light of new comments from various Alumni chapters.  Please post your comments in the Forum.

>> Download the Printable Version for a detailed reading (PDF)elko

If you would like to put forth your own alternative, please e-mail it to admin@SaveMelkonian.org

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The ALTERNATIVE Resolution (2e)

Proposed by the Central Committee of the Campaign to Save Melkonian     (Last amended: 24/11/03)

www.SaveMelkonian.org

The Central Committee of the Campaign to Save Melkonian

            (Preamble)

1. In light of the current emergency situation

a) Recalling the fact that this is not the first time that the issue of the Melkonian’s closure emerges;

b) Declaring its determination to see MEI’s perpetual existence as an Armenian Boarding school.

c) Taking note of the widespread Alumni opinion that the MEI administrations/boards of the past two decades have failed to manage the funds without systematically running into a substantial budget deficit;

d) Taking note of the widespread withering trust in AGBU’s governance of MEI, on behalf of both global Melkoniantsi Alumni communities and the Diaspora as a whole;

e) Having Considered the Statement Prepared by the Cyprus Melkonian Alumni as of Nicosia, November 12, 2003; Having Further Considered Sarkis Buchakjian’s (Chairman of MEI Board) “Information about MEI” as of 03/11/03 and Having Also Considered the “Joint Declaration” issued collectively by the Alumni of Cyprus , California , Greece , U.K. , U.A.E., Lebanon , Istanbul , Toronto , and Montreal;

f) Stressing the economic principle that the diseconomies of scale is an inherent problem for the giant economic and financial entities such as the AGBU. And Further Reaffirming the fact that the reasonably sized organisations, such as the MEI, can achieve a greater economies of scale, a much more efficient control and management of its own resources, especially in the context of self-governance;

g) Taking into account and Understanding AGBU’s exhausted willingness to own and be responsible for Melkonian’s budget deficits and survival;

h) Trusting that despite its actions of even considering the possibility of MEI’s Sale and/or its closure as a Boarding and charitable school, the AGBU would genuinely wish to see MEI continuing its existence and prospering;

i) Being concerned for the likelihood of

i) a substantial loss of AGBU’s credibility on behalf of the whole of the global Armenian Diaspora as well as the Republic of Armenia (should the SALE of MEI go ahead; and/or should MEI cease to be an Armenian, boarding, and charitable school);

ii) and an immediate destabilisation of AGBU’s status as the primary unifying factor in the Diasporic Armenian communities;

j) Realising and Stressing the full seriousness of potential political and cultural implications, and social disintegrations resulting from the likelihood of the above point;

k) and in a Spirit and Determination to avoid such outcome of events, and Fully Supporting the “The Alternative” section of the “Joint Declaration” issued collectively by the Alumni of Cyprus , California , Greece , U.K. , U.A.E., Lebanon , Istanbul , Toronto , and Montreal.

2.

Reiterates its strong commitment to Melkonian Educational Institute’s long-standing tradition as an all-Armenian boarding school. Further Declares its opposition to any decision and/or arrangement that would jeopardise or breach that tradition.

(SUBSTANTIVE POINTS)

3.

Comes to conclusion that under current framework of organisation, ownership and interest, a systematic mismanagement of funds is unavoidable, and that even if the issue of Melkonian’s sale or closure as boarding school is postponed for now, without breach of point 2, it is still bound to recur in the future, and; Urges for a type of reformations that would reflect the current conditions of trust in MEI’s governance.

4. Having said that, Proposes a Gradual Structural Transition of the following type:

a) Melkonian Educational Institute should become a self-governing body [as are many well established Universities, colleges and schools in the UK and USA] that is completely independent of AGBU’s control, and no longer under its trusteeship

b) MEI should become a non-profit making organisation of its own, responsible for its own survival, and registered as an Educational Charity under the laws of Cyprus and the EU.

c) MEI will, naturally, take over the land and all the buildings on its campus. These to include Melkonian Commercial Centre, the Club, the house of the Melkonian brothers and the teachers’ residences (all surrounding the MEI campus), and the Melkonian Endowment Fund (currently valued at USD 5,500,000).

d) MEI will under the aegis of the newly set up network of global Melkonian Alumni, will

i.)   Periodically elect a board of trustees, which will consist of the representatives from Alumni of various locales, but especially of Cyprus Alumni, so as to insure a direct monitoring.

ii.) Under the new structure, no specific body or individual will have the right to pass a decision regarding the sale of the school, or any of its lands and buildings: Neither the network of the global Melkonian Alumni, nor the board of elected Melkonian trustees, nor the administration of the school.

iii.) This board of trustees will manage the endowment fund, elect the administration of the school, approve substantive expenditures; approve the hiring of new members of staff and so forth.

iv.) The accounts of the MEI are to be annually made publicly available and easily accessible to the global Melkonian Alumni community.

v.) The elected members of the Melkonian Trustees to provide detailed annual reports to their respective Alumni communities and to hold regular liaison meetings with the respective Alumni chapters.

e) Recalling and stipulating the Point 1h, above, AGBU is to provide MEI with an interest-free loan of USD 6,500,000 for a duration of 5 years; This amount is to be added to the Melkonian Endowment Fund, making a total of12 million US dollars, and the annual interests from that amount will be used to cover the temporary budget deficits of the school.

f) After such Structural Adjustment takes place the Melkonian Alumni and the Melkonian Board of Trustees will run an intensive 5-year Fundraising campaign, appealing to global Melkoniantsi community and other individuals and institutions.

i.)  The purpose of this campaign will be to gradually generate enough funds to pay off the AGBU debt and to inflate the Melkonian Fund to an extent that it will recover to its former glory and see prosperity ever after.

5. This is a working proposal, which means that it is open to comments and amendments of various Melkonian Alumni chapters, so as to accommodate all concerns, prior to presenting it to AGBU Central Board as a negotiable document.

Issued by the Central Committee of the Campaign to Save Melkonian

original proposal: November 15, 2003

* * *

  Appendix 1:

 “According to initial estimates, the total Melkonian annual budget nears USD 1.25 mln., which  the  AGBU Central  Board  has  translated to an  average cost  per student of USD 6250.

“The Central Board, however, fails to note that the Melkonian Endowment Fund valued at USD 5.5 mln. generates an annual income for this purpose, for which it has never provided details.

“Assuming that the Melkonian Endowment Fund is invested in 10-year U.S. Treasury bonds, earning 4% per annum, this would generate USD 200,000 annually.

“New York also fails to mention that the Melkonian Commercial Center generates another USD 450,000 annually.

“Taking into account the sum received from tuitions and other subsidiaries, the income is USD 500,000.

“Thus, it leaves a budget gap of USD 100,000, which the AGBU Melkonian Alumni believe the amount can be easily covered by new ventures utilizing all the Melkonian facilities”.

-- Taken from the “Joint Declaration - AGBU Melkonian Alumni, AGBU Chapters

United against the School closure” as of 05/11/2003.  Signatories: the Alumni of Cyprus , California , Greece , U.K. , U.A.E., Lebanon , Istanbul , Toronto , and Montreal.