Cost Formula Work Group 2019 for 2020 Minutes

April 16, 2019, 9:30 am

SCLS Headquarters, Badger Room

 

Meeting Documents: https://www.scls.info/committees/cost-formula-work-group-2019-2020/2019-04-16

To phone in to a meeting: call 866-226-4650 (access code: 461-0318-2019)

 

Tenets

 

1.      Call to Order

a.      Introduction of guests/visitors: V. Teal Lovely, K. Goeden, S. Lee, W. Rawson, L. Oathout, R. Roloff, A. Noel, E. Foley, J. Tallman.  Absent: M. Van Pelt, D. Allen

b.      Changes/Additions to the Agenda: none

c.       Requests to address the Committee:  none

 

2.      Approval of previous meeting minutes: S. Lee moved approval, W. Rawson 2nd.  Approved.

 

3.      Action Items  

 

a.      Approve [revised] startup fees for libraries joining SCLS Technology and/or ILS Services

                                                              i.      See attached document with revisions titled SCLS Technology Services Start-Up Costs. 

                                                             ii.      Technology (Network fees):  Waiving first year service fee. Startup fee will be changed from 25% of annual service fee to reflect actual cost of actual hardware. 

                                                           iii.      ILS:  Waiving first year service fee, but keeping startup fee which is 25% of annual service fee and any cost of 3rd party migration costs.

                                                           iv.      These proposed changes reflect current practices.

                                                             v.      PaperCut:  Participants will pay start-up fees and maintenance fees to vendor. Removing $100 start-up fee.

                                                           vi.      Enterprise Wireless:  Libraries new to the service will have to purchase the equipment and equipment license.

                                                         vii.      GetIt:  $500 start-up fee required by PTFS LibLime for first time participants. (No change.)

                                                       viii.      L. Oathout moved approval, S. Lee 2nd.  Approved.

b.      Approve Proposal to Supplement Cost of Replacement Wireless Access Points

                                                              i.      See attached document for more information

                                                             ii.      SCLS has been collecting $10,000 per year to replace equipment ($90,000 total). SCLS has also been collecting fees for licenses ($520 per access point).  We did this thinking we’d have to replace our central equipment.

                                                           iii.      New system will be cloud hosted. So now we have funds available to help libraries pay for the new equipment.

                                                           iv.      Proposal:  For every existing access point on the SCLS system, SCLS would pay up to $1,223 per access point to swap out to the new equipment.  Over that, the library would pay the difference (typically for SFP cables, power injectors and/or antennas).

                                                             v.      Libraries coming on new would not get this supplement.

                                                           vi.      Any remaining funds would be left in contingency.

                                                         vii.      New wireless system will be installed this year.

                                                       viii.      W. Rawson made motion to approve, A. Noel 2nd. Approved. Yay!

c.       Approve Proposal to Fund Future Replacement of Wireless Access Points and Licenses (New)

                                                              i.      It would be beneficial to participating libraries to include the costs of replacing in-library wireless equipment every 7 years. This is similar to what we do for network equipment in the library. Vicki is reasonably certain that this can be done in the budget without increasing costs. We will wait to see final budget before making a recommendation to include replacement costs for replacement of equipment for the wireless internet system.

4.      Discussion

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

                                                              i.      Postalization vs. Actual Costs. Wireless equipment, maintenance, network hardware and broadband costs are all e-rate eligible, which is the original reason for looking at charging direct fees for actual costs to libraries.  At the last Cost Formula Work Group meeting, there was some interest in seeing how actual costs would impact fees.

                                                             ii.      The revised formula reflects in-library network hardware (routers and switches), maintenance, wireless equipment and broadband as the actual costs to libraries.

                                                           iii.      Some miscellaneous network hardware, 3rd party consulting and support staff are still shared costs.

                                                           iv.      We have been billing equipment to replace every 6 years, but we think we can stretch that out to 7 years, which is why hardware costs would be less.

                                                             v.      SCLS is now working with a new vendor for network equipment. Equipment costs are less, but maintenance costs are more.

                                                           vi.      Using 2019 shared costs for now, for purposes of comparison.

                                                         vii.      The net result of this proposal is that some libraries would experience a decrease (mostly larger libraries), but others will have a substantial increase (@ 40%), especially for the smaller libraries.

                                                       viii.      The formula was presented with 100% based on # of network devices on the system and no longer including a building fee (formerly 15 % of formula). This is because if we leave it at 15%, the costs are even higher for smaller libraries. The original intent of the building fee was to assure that basic network equipment costs were covered for each building. Separating out the actual costs, meets this purpose.

                                                           ix.      We tried several different modifications to the formula, but each one resulted in increased costs for smaller libraries (with a variation of a few hundred dollars in each direction).

1.      Looked at postalizing the maintenance fees instead of adding a building fee. This helps mitigate the increase to the smaller libraries, but not much. 

2.      We looked at other factors to share costs but none brought the smaller libraries back to where their current fees are at: adjusting the building fee; reducing staff costs in shared fees; removing the PC count and using only non-PC port counts; weighting the PC count slightly more than the port count.

                                                             x.      After exploring all factors, the Cost Formula Workgroup has decided to keep the original formula that shares and postalize all network expenses.  For those libraries who are on E-rate, Kerrie can itemize tech and ILS fee invoices to reflect actual costs.

b.      Review current fee documents

                                                              i.      See attached document

                                                             ii.      These formulas for these fees are already set and approved from last Cost Formula Workgroup, they just need to be posted.

c.       New: Consider support fees for Envisionware self-checks

                                                              i.      Bibliotecha rebates 17% of maintenance to SCLS for the provision of front line support of self checks. Supporting Bibliotheca takes a lot of staff time for 2 SCLS staff members. Now we are adding another vendor (Envisionware).  Do we want to have a comparable arrangement?  Either Envisionware can offer a discount on maintenance which will be extended to member libraries.  Or SCLS can take that difference and it can go into ILS contingency for ILS development.  We will explore our options.

d.      Any other proposed changes?

                                                              i.      No.

5.      Plan for Next meeting: We will meet prior to the May All-Directors meeting to make a decision regarding the proposal to fund future replacement of wireless access points and licenses and to touch base on support for Envisionware.

 

6.      Adjournment  11:51 a.m.

 

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

Cost Formula Work Group/Agenda/04-16-2019