Cost Formula Work Group 2019 for 2020 Minutes

February 26, 2019, 9 am

SCLS Headquarters, Chester Room

 

Meeting Documents: https://www.scls.info/committees/cost-formula-work-group-2019-2020/2019-02-26

To phone in to a meeting: call 800-511-7983, use access code 628394#.

 

1.      Call to Order:  9:01 a.m.

a.      Introduction of guests/visitors: Vicki Teal Lovely, Kerrie Goeden, Martha Van Pelt, Susan Lee, Wendy Rawson, Larry Oathout, Raina Roloff, Angela Noel, Erin Foley, Jennifer Tallman

b.      Changes/Additions to the Agenda: none

c.       Requests to address the Committee: none

 

2.      Approval of previous meeting minutes: N/A

 

3.      Action Items

a.      Approve Charge: Workgroup will determine directions for fee and budget development into the future.

                                                              i.      Motion made by L. Oathout to approve, seconded by W. Rawson.  Approved.

b.      Approve Tenets

                                                              i.      There is an advantage to the community as a whole if all SCLS libraries participate in the ILS and SCLS network

                                                             ii.      Technology, Network and ILS services should have separate fees

                                                           iii.      Factors used in the formulas will be taken from easily accessible data

                                                           iv.      The formula will generate fees to cover the costs of the services included

                                                             v.      Continue to invest enough for current and future services

                                                           vi.      Network costs are postalized – Need to evaluate

1.      Leaving off tenet 6.  Motion made to approve tenets 1-5 by A. Noel, seconded by S. Lee.  Approved.

 

2.      Discussion

a.      Offset cost of new wireless access points for access already supported by the SCLS network

                                                              i.      We are replacing our wireless system this year. If libraries can’t do it this year, they can do it in 2020.  Total cost $90,000. See attachment for details. Cost per access point is $703. Will be going with a cloud hosted solution. Supposed to be no start-up costs or equipment in-house. Up till now, also charged $520 per access point for licenses.  With new solution, we anticipate off-setting the cost of both.

b.      Revise startup fees for libraries joining SCLS Technology and/or ILS Services

                                                              i.      Currently have 6 libraries not participating.  Monticello is joining this year. 

1.      Proposed changes (see attachment) :  The startup year’s fee will be the actual cost of hardware for Technology Services.  The startup year’s fees will be 25% of annual fee and any 3rd party migration costs for ILS. Enterprise Wireless fees will have to be redone.

2.      No vote needed today, still waiting for more information.

c.       Assess Network Fee formula to comply better for E-rate and TEACH grants

                                                              i.      Postalization vs. Actual Costs

1.      Device counts have been used because it reflects the staff time required to maintain those devices

2.      Does keeping a branch base cost make sense; will it help keep costs down for small libraries?

3.      If we move to actual costs, do libraries have a choice in the ISP (MUFN vs. BadgerNet for example)?

4.      The change in actual costs in the “trial” seems to be affecting smallest libraries the most

5.      Is it right for the “bigger” libraries to subsidize the smaller libraries?

6.      The device count levels the playing field because smaller libraries have fewer devices and fewer people using the wireless

7.      Grant opportunities:

a.      E-rate

b.      TEACH Infrastructure

c.       LSTA sparsity

d.      Additional state aid

8.      Can we use a model like the LSTA sparsity for a model to offset costs for smaller libraries? Perhaps this could be funded using the proposed increase in state aid.

9.      Does a one year snapshot reflect actual changes from year to year?

10.  If BadgerNet costs are reduced, this may be an opportunity to use actual costs rather than the formula

d.      Review current fee documents: Will review at the next meeting

e.      Any other proposed changes?

3.      Plan for Next meeting:  Tuesday, March 12 at 9 am

a.      Waiting for E-rate bids for actual costs; due between 3/18 and 3/20

b.      Waiting for new Wisconsin budget for possible reductions in BadgerNet; increase in state aid and/or additional TEACH infrastructure

 

4.      Adjournment

 

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

Cost Formula Work Group/Agenda/02-26-2019