Cost Formula Work Group 2024 for 2025 Minutes

January 23, 2024, 11 am

Via phone/video conference

 

Action Items:
None

Present: Cathy Borck (WID), Larry Oathout (STP), Emily Whitmore (SGR), Jan Holmes (SUN), Elizabeth Clauss (CSP), Tracy Herold (DCL), Jill Porter (MFD), Pat Garvey (MPL), Margie Navarre Saaf (MPL), Molly Warren (MPL)
Absent: Nicole Menzel (ROM)
Excused: None
Recorder: Michelle Karls (SCLS)
SCLS Staff Present: Vicki Teal Lovely, Martha Van Pelt

1.      Call to Order at 11:02 am

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.      Cost Formulas https://www.scls.info/committees/all-directors/2023-07-20

1.      Discussion: V. Teal Lovely reviewed how the cost formulas are constructed for Technology Infrastructure, Network Services, PC Support, and ILS services.  These formulas have been in place for some time.  Fees are posted in time for July All Directors meeting.  VTL reviewed the infrastructure spreadsheet. 

b.      Possible items to review:

                                                              i.      Possible increase PC costs (declining PC counts)

1.      Current cost is $250 per PC

2.      Have operated at a deficit for 3 years

a.      2022 $3,293

b.      2023 $17,638

c.       2024 $26,643 (covered by SCLS contribution of $25,000)

3.      PC device count

a.      2017 1,285

b.      2018 1,324 (small increases at many libraries)

c.       2019 1,315

d.      2020, 1,335 (pre-pandemic)

e.      2021 1,399 (increase in laptops)

f.        2022 1,373  (-26 PCS) (-$6,500)

g.      2023 1,322 (-51 PCs + -26 PCs = -77 PCs) (-$12,750 + -$6,500 = $19,250)

h.      2024 1,279 (-43 PCs + -77PCs = --120 PCs) (-$10,750 + -$19,250 = $30,000)

4.      Raise PC support fee to cover deficit?

a.      Software costs = 120 X $50 =$6,000; deficit is $24,000

b.      Increase = $18.75 per PC to cover non software costs

c.       Review at next meeting

5.      Discussion: This trend of removing PCs from the SCLS Network has been happening for the last three years.  We could increase costs per PC or continue to take funds from contingency. 

                                                             ii.      Possible costs for email accounts

1.      Infosec training (most grant funded)

2.      Licensing cost for multi-factor authentication

3.      Discussion: We are working on making email as secure as possible to help mitigate security concerns by implementing multifactor authentication, which has a cost.  Email is no longer a true “free service.”  Infosec may be required for all staff with SCLS-supported email.

                                                           iii.      Creating fees based on formula factors that are more stable and easier to calculate

1.      Network

a.      Current: devices counts, including SCLS as ISP; building fee

b.      Difficulties

                                                                                                                                      i.      SCLS as ISP

                                                                                                                                     ii.      Wireless

                                                                                                                                   iii.      Increased cost per device discourages expansion

c.       Possible options:

                                                                                                                                      i.      Population; circulation; building size

                                                                                                                                     ii.      Actual costs

1.      Broadband

2.      Equipment

a.      Router and switch(es)

b.      Access points

                                                                                                                                   iii.      Create “fixed” costs based on some factor and apply percent increases each year

                                                                                                                                   iv.      Use $25,000 SCLS additional contribution for “smoothing” so no library pays more than current (for base)

2.      Infrastructure

a.      Current: annual circulation averaged over 3 years

b.      Difficulties:

                                                                                                                                      i.      Is this most appropriate?

c.       Possible options:

                                                                                                                                      i.      Population

                                                                                                                                     ii.      Other options?

                                                                                                                                   iii.      Create “fixed” costs based on some factor and apply percent increases each year

                                                                                                                                   iv.      Use $25,000 SCLS additional contribution for “smoothing” so no library pays more than current (for base)

3.      ILS

a.      Current: annual circulation and total items; building fee

b.      Difficulties:

                                                                                                                                      i.      Reflects use, but costs go up with success

c.       Possible options:

                                                                                                                                      i.      Population (what database vendors use)

                                                                                                                                     ii.      Bibliographic records (what LibLime uses)

                                                                                                                                   iii.      Circulation only

                                                                                                                                   iv.      Create “fixed” costs based on some factor and apply percent increases each year

                                                                                                                                     v.      Use $25,000 SCLS additional contribution for “smoothing” so no library pays more than current (for base)

                                                           iv.      Other suggestions?

1.      Discussion: None.

2.      Plan for Next meeting:  Tuesday, February 13 at 11:00 am

a.      Review PC costs - device count is not done until May/Jun.  This won’t change the cost formula for rest of the year, but we can invoice libraries if the device will stay on the network next year.  V. Teal Lovely can potentially bring an adjusted number for the next meeting.

b.      Review proposals for Network, Infrastructure and ILS

c.       Not much can be done about staffing as costs tend to go up.  We are not discussing layoffs and shortfalls would be made up with by contingency

d.      SUN + DCL think it would be helpful to list how much support libraries get for their PCs for cradle to grave service.  It is hard to replicate SCLS services with any other entity.  Our services are listed on our website.   

e.      Review additional information

f.        Bring proposals for formulas for the other service areas

 

3.      Adjournment at 12:07 pm

 

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

Cost Formula Work Group/Minutes/01-23-2024