Cost Formula Work Group 2022 for 2023 Minutes

February 2, 2023, 1 pm

Via phone/video conference

 

Action Items:

None

 

Present: Elizabeth Clauss (MNT), Renee Daley (ROM), Lauren White (PDS), Larry Oathout (STP), Wendy Rawson (FCH), Nate Snortum (DCL), Katherine Elchert (MCM), Margie Navarre Saaf (MAD)

Absent: Debbie Bird (POR)

Excused: None

Recorder: Michelle Karls (SCLS)

SCLS Staff Present: Vicki Teal Lovely, Kerrie Goeden, Martha Van Pelt

 

1.      Call to Order at 1:02 pm

a.      Introduction of guests/visitors

                                                              i.      None.

b.      Changes/Additions to the Agenda

                                                              i.      None.

c.       Requests to address the Committee

                                                              i.      None.

2.      Approval of previous meeting minutes: N/A

3.      Action Items

a.      None.

4.      Discussion

a.      Review current fee documents

                                                              i.      Cost Formula for Shared Technology Services

https://www.scls.info/sites/www.scls.info/files/Formula%20summary.pdf

                                                             ii.      Technology Services Startup Costs

https://www.scls.info/sites/www.scls.info/files/Technology%20services%20startup%20costs%202022.pdf

b.      Discussion: V. Teal Lovely reviewed the Cost Formula for Shared Technology Services document.  This is important for this group to understand and she reviews this with all new directors.  There are 4 Core Services: Technology Infrastructure, Network, PCs, and ILS.  V. Teal Lovely reviewed the Technology Services Startup Costs.  The contingency funds for ILS and Technology were reviewed. Possible items to review:

                                                              i.      MyPC startup (no costs, full annual fee charged)

1.      We want to add language to the document that there is no startup fee and­ libraries will pay the full cost of $15 for each license.  If a library adds new PCs in middle of year, this will be prorated.

                                                             ii.      Plan for ILS development contingency

1.      ILS contingency funds are used primarily for development and startup fees. 

                                                           iii.      Possible increase PC costs (declining PC counts)

1.      V. Teal Lovely reviewed the PC support fees and the gap in PC support. Over the last 2 years, there has been a trend toward remove PCs from the SCLS network.  Due to increasing costs and decreased revenue, there has been a shortfall for two years. It was funded out of contingency. We need to review the shortfall and determine if the PC support fee should be increased at this time. When the cost formula was revised in 2014 and the flat fee of $250 per PC per year for support was established, it was acknowledged that it might be necessary to increase this fee in the future. We reviewed the history.

                                                           iv.      Extra Cisco router fee for network services

1.      Cisco has software-locked routers at 100 Mbps total throughput. This means the device is only capable of handling 100 Mbps bandwidth total amongst internal traffic (local networks to local networks) and external traffic (SCLS resources, Internet, etc.). Resolving this issue requires purchasing a license that costs $1,063.30.

                                                             v.      Every year, the AC reviews agreement to participate in SCLS Technology services.  The last time we changed this was in 2018, and it was only two lines because of an E-rate clarification that libraries should own the equipment, not SCLS. The main reason for the revisions this year is related to cybersecurity concerns. SCLS has insurance for this.  Unfortunately, the insurance has gotten a lot stricter (attack from hackers, ransomware on the rise).  A public library system in Wisconsin was hit with ransomware a few years ago. It is possible to get cyber insurance to cover the costs of cyber attacks. It's harder to get this insurance because you have to prove you’re taking proper security measures.  We need tougher language in the agreement to prove we are taking this seriously.  We added a fifth box to the document and now every library SCLS needs to sign it, including non-Technology services libraries.  Libraries should look into their cybersecurity insurance because we want to make sure they are covered.  Our cyber insurance won’t cover incidents within the library.  M. Van Pelt reviewed the documents she sent via email.  These documents will also go to AC.  It will also be discussed at the March All Directors meeting.  The SCLS Board will be looking at it too.  We hope by June or so we can say tell our insurance company that everyone is comfortable with the changes and ask libraries to take it to their boards to sign them by the end of the year.  MAD asked if there was any way to get a group rate for libraries.  K. Goeden and M. Van Pelt will look into this with our insurance company (Hausman).  M. Van Pelt reviewed the proposed changes to the document.  Libraries should check about their cyber security insurance.        

                                                           vi.      Other ideas?

1.      Discussion: none.

2.      Plan for Next meeting:  Friday, February 17 at 10:30 am

a.      Add Statement about MyPC

b.      Talk about ILS contingency, bring questions, decide if any action is required

c.       Talk about issue with the Budget gap in PC costs

 

3.      Adjournment at 2:10 pm.

 

For more information about the Cost Formula Work Group, contact Vicki Teal Lovely.

Cost Formula Work Group/Minutes/02-07-2023