Library Technology Guides

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Volume 5 Number 03 (March 1985)

Allocating costs in shared systems

In LSN Vol. III, No. 4 (April 1983) we examined some of the factors to be considered by libraries faced with the choice of purchasing a standalone turnkey automated library system to serve the needs of a single library, or joining with other libraries in the purchase and operation of a multilibrary shared system. Some libraries enter into shared system arrangements to save money; others take this route because of the perceived benefits of resource sharing. Whatever the rationale, the number of systems shared by two or more libraries continues to increase.

Libraries which utilize shared systems face numerous decisions relating to form of organization, governance, and cost allocation. This article surveys the factors that need to be accommodated in the allocation of costs in a shared system, and some of the solutions that have been implemented. It is by no means an exhaustive survey, and we would welcome information on other options from readers.

Cost allocation formulae need to encompass three distinct phases of automated system development: the initial purchase of the system, ongoing operational costs, and system upgrade/replacement costs. The factors included in each element of cost vary in different situations. Libraries considering sharing a system first need to decide on the elements to be included in each category of cost.

System purchase and installation may include not only acquisition and installation, but also data base creation- retrospective conversion-and, possibly, data base reformatting and loading.

Ongoing operational costs will include hardware and software maintenance charges, and may also be extended to bibliographic utility charges, COM production costs, and the costs of telecommunications to link member libraries to the site at which the central processing unit is installed. Central site costs to be covered may include electricity and air conditioning, insurance, and notional or actual site rental charges. Depending on the organizational structure chosen by a group of libraries, the operational costs may encompass varying degrees of administrative overhead. Appointment of a multiperson administrative, operations and training staff will ensure that all libraries sharing a system have ready access to expert advice on how to use the system, but the cost of such personnel will have to be factored into the charges levied for its use.

There may also be some savings when the use of automated functions such as online inquiry enables the cessation of services, such as the production of monthly COM catalogs, previously supported by a central body. Monies previously applied to such services may be allocated to supporting a portion of the automated system costs.

Experience suggests that libraries installing automated systems frequently overlook the need to include system upgrade or replacement costs in their financial planning. Such expenditures may be incurred in a number of ways: the need to provide hardware for the later implementation of functions such as serial control; the desire for additional terminals in member libraries; the addition of new member libraries; growth in the size of the data base and, in a five to seven year time frame, the possibility that advances in technology will make it attractive to consider replacing major components of the system. In times of unstable telecommunications pricing, a reserve fund for telecommunications hardware upgrades is also wise.

Cost allocation in a shared multifunction automated library system can become particularly complicated when a group implements a function on the system but not all member libraries choose to use that function. It can also become confused when new libraries, outside the original group, seek to join an established system. The range of solutions adopted by library consortia is illustrated in the following examples.

In one public library consortium part of the central site costs and the charges for some terminals are absorbed by the cooperative in recognition of the system's contribution to reducing its costs by replacing a COM catalog with online inquiry capabilities. The remaining terminals and the central site support they require are charged back to the participants. The monthly charge is $530 per terminal for consortium supplied terminals; the fee is $415 per month if a library provides its own terminals. No other annual or joining fees are levied. The system supports circulation and patron access catalog functions. Another consortium charges its members $693 per month per terminal. Both of these consortia use CLSI systems. Several other shared CLSI systems cost their participants just under $700 per month. In a number of cases the systems are more than three years old and substantial sums of money are now having to be set aside for anticipated system upgrades.

Another consortium charges the following fees for a Geac system which provides only circulation support:

  • one-time joining fee: $35,000 per library.
  • annual costs:
    • assessment to cover central facility operating cost-personnel, utilities, supplies, support services, etc. Each library pays a percentage based on its share of use of the circulation system. For a library with 100,000 circulations this is approximately $4,000 per year.
    • telecommunications charges-equalized over the whole system-$320 per terminal per year.
    • terminal maintenance-$372 per terminal per year.
    • CPU maintenance-the total cost is divided equally among all libraries-$3,900 per library per year.
    • contingency fund-$75 per terminal per year up to a maximum of $500 per library.

All of these charges are assessments based on expectations of costs. If costs run lower, libraries get a refund; if higher, they pay the extra. Were a library with 50,000 circulations a year to join this consortium and install one terminal, the first year cost would be $35,000 to join and $6,667 per year-a total of $41,667.

Another consortium which also uses a Geac system, also provides support only for circulation control. The bulk of the initial hardware was financed by gifts from local companies. This consortium has, therefore, been able to limit its "buy-in" cost for new members to $6,000 per library plus $5,250 per terminal.

Operating expenses are recovered by levying three different assessments:

  1. Base fee. Half of the total budget is divided equally among all the members except the host institution which provides the central site facilities.
  2. Circulation fee. One-fourth of the budget is divided proportionally by circulation.
  3. Terminal fee. One-fourth of the budget is divided proportionately by the number of terminals. Remote printer maintenance is calculated separately.
Using this cost allocation formula, the first year cost of a library with 181,000 circulations per annum and three terminals would be:

joining fee $ 6,000
base fee 6,789
installation fee 15,750
circ fee 4,217
($23.20 per '000)
terminal fees 4,230
printer maintenance 378
  $37 .373

and, for a library with 50,000 circulations per annum and one terminal:

joining fee $ 6,000
base fee 6,789
installation fee 5,250
circ fee 1,165
terminal fee 1,410
printer maintenance 378
  $20,992

In order to make the budget for a shared automated system realistic, all costs should be shown, including the value of space, utilities, and personnel which may not actually be charged to the program. The income side of the ledger should show the value of the contribution made from other sources. It is important that this be done so that the participants will know what percentage of total cost they are contributing and so that realistic adjustments can be made if any subsidies should subsequently be lost.

Another HP 3000-based automation option for special libraries

SCS Engineers of Reston, VA have designed SCS-AUTOLIB to support the automation of library and records management functions on the Hewlett Packard 3000 in small to medium sized special libraries with collections of between 3,000 and 60,000 volumes.

Using a non-MARC format, SCS-AUTOLIB provides for the creation and retrieval of records for documents, reports, books, serials, maps, surveys, manuals, etc. A description field attached to each record can accommodate 1760 lines of data. In addition to online record creation and maintenance, SCS-AUTOLIB offers online access to records by staff and users. Information can be retrieved through a variety of access points including subject keyword, author, fiche/call number, title, publisher, organization number, etc. The retrieval capabilities are menu- driven. Hierarchical retrieval can be implemented on certain data elements such as library classification codes. The system includes a report generator, and allows the user to choose between ten different sort sequences for printed report listings. Automated circulation control capabilities are provided in a separate software module.

The basic software costs $7,500. The Circulation Module costs an additional $2,500. Software maintenance and enhancement support is provided for a charge of $1,000 per annum.

Organizations interested in finding out more about SCS-AUTOLIB may purchase a copy of the User's Manual for $50, and a demonstration tape is available for $150. Both amounts are credited towards any later purchase of system software.

[Contact: SCS Engineers, 11260 Roger Bacon Drive, Reston, VA 22090-5282; (703) 471-6150.]

Media booking on a micro

Data Trek has announced the availability of another module in its family of micro-based library automation products. The A/V HANDLER media booking system supports film rental booking and confirmation capabilities, and catalog functions. It also handles the tracking and scheduling of other non-print items. The software is designed to run on micros which support the MS-DOS or CP/M operating systems, including the IBM PC and Apple microcomputers. The A/V HANDLER is priced at $2,450.

[Contact: Data Trek, Inc., 621 second Street, Encinitas, CA 92024; (619) 436- 5055.]

CTI spawns another library automation option

Readers who take an interest in the history of the vendors of turnkey library automated systems will be aware of the complicated history of the company which began as Computer Translations Inc., in Utah in 1980. Having entered the market with a microcomputer-based backup system for CLSI circulation systems, the company was purchased by a large Salt Lake City Microdata computer dealer and went on to develop a multi- function integrated minicomputer option for library automation. The salient feature of the system was its use of the Pick operating system. 1982 saw another change in ownership-CTI being purchased by the California-based Government Systems Group. CGS and CTI subsequently ran into financial problems. Over the years, at least two groups of former CTI employees set up competing library automation companies-also using systems based on the Pick operating system. Both Advanced Library Concepts and Dynix share this common background. Now, a third such company has emerged, Library Information Systems, Inc.

Background literature on the company suggests that it is the direct descendent of CTI, and that that company may now be considered defunct. The principals in Library Information Systems, Inc., are Gregory Shapton, Ron Williams, and Richard Lauer.

Library Information Systems, Inc., is offering a multifunction library automated system which utilizes the Pick operating system and will run on Prime, Ultimate or Microdata minicomputers. The company expects that most of its installations will be on either the Ultimate or Prime hardware.

Library Information Systems, Inc. indicates that it currently has two alpha development sites: the State of Alaska Film Library and the Pomona Public Library. The State of Alaska is the development site for the Audio-Visual Booking System, and Pomona is the design and test facility for the circulation, cataloging and online catalog functions. Acquisitions and accounting modules are about to be tested at Pomona, and the company expects to have a test serials module ready by the fourth quarter of 1985. The system is described as being "a total redesign and development" of the library product purchased when the ownership of CTI moved from Utah to California.

[Contact: Library Information Systems, Inc., 1691 Browning, Irvine, CA 92714; (714) 261-7425.]

Patron access catalog from Innovative Interfaces

Innovative Interfaces has added another capability to its INNOVACQ automated library system. In addition to supporting acquisitions and serials control, INNOVACQ now has an online patron access catalog module. This module may be integrated with the other INNOVACQ functions or it may be implemented as a single-function system.

The menu-driven system provides access to information on authors, titles, subjects and other fields which the library has selected to be indexed. Searches access only the leading words in the author, title and subject fields; keyword capabilities are not currently supported. Searches may be qualified by fixed field data. The patron access catalog module also supports an online authority file and will automatically redirect searches from a non-preferred term recorded in the authority file to the preferred term. The module supports two display modes: public services and technical services. When a search retrieves one record, that record is displayed in the appropriate format; multiple hits result in a brief record display from which the user selects appropriate records for fuller display. If a search retrieves no hits, the system displays the appropriate section of the index to enable the user to browse for associated terms, and to identify spelling and formatting errors.

[Contact: Innovative Interfaces Inc., 2131 University Boulevard, Suite 334, Berkeley, CA 94704; (415) 540-0880.]

VTLS alive and well and NOT under new management

Made curious by the persistence of conflicting rumors as to plans for the future of the Virginia Tech Library System, the Editors recently contacted Dr. Vinod Chachra, Vice President for Computing and Information Systems at Virginia Polytechnic.

Dr. Chachra, who heads the team developing and marketing the VTLS software, reported that, as of mid-February, Virginia Tech had increased its commitment to VTLS and had allocated a 50 percent increase in staff and expanded facilities. In addition to plans for new VTLS products and services, Virginia Tech intends to develop the capability to bid VTLS as a turnkey system of hardware and software, rather than as a software-only system.

[Contact: VTLS, Virginia Polytechnic Institute and State University, Blacksburg, VA 24061; (703) 961-5825.]

Guidelines for calculating terminal requirements

Drawing on their work as library automation consultants, the Editors have developed the following rules of thumb for calculating the number of terminals required for multifunction automated library systems. Readers may find these general guidelines useful for their initial calculations of automated system requirements:

  • one terminal for each 100,000 annual circulations or significant fraction thereof in any one location;
  • one terminal for each 10,000 annual acquisitions or significant fraction thereof;
  • one terminal for each 50,000 serial issues checked-in annually or sig-nificant fraction thereof; and
  • one patron access catalog terminal per 100 daily library attendance.

The job of systems coordinator

Planning and implementing a multifunction automated library system is a complex task. Even in a small library, the need to coordinate and administer retrospective conversion, system specification and vendor selection, and system implementation and acceptance, is such that a systems coordinator generally needs to be appointed. A half-time assignment may suffice for the preliminary planning period, but during system installation and implementation the individual selected for the job usually needs to devote all working time to the task.

The systems coordinator must have strong professional credentials in a number of areas to successfully manage the introduction of this major element of change in the library's environment. The appointee should be able to function in a coordinating role-independent of existing libraries, departments or units -- and be able to address the diverse needs of the libraries in developing policies, procedures and budgets. He or she will work as the library's liaison with the prime vendor and other conversion and site contractors who may be associated with the project.

In order to facilitate the introduction of new technology and procedures for both staff and library users, the coordinator must possess good interpersonal skills and be able to make clear oral and written presentations. The coordinator will be responsible for developing effective training programs for staff at all levels and for users, as well. It is desirable to have a person who is familiar with the existing manual and automated functions, in order that he or she might be better equipped to handle functional and procedural changes and staff dislocations which are likely to occur.

The coordinator should have good planning and organizational skills in order to develop an orderly retrospective conversion of the manual files to machine-readable data bases and to introduce the various elements of automation as smoothly as possible.

Although it is not essential that the coordinator have specific knowledge of systems design and programming, it is important that a coordinator have knowledge of current trends, developments, and theories in library automation and telecommunications.

The coordinator's job is even more difficult when a cooperative automation effort is being undertaken by a federation of loosely connected public libraries, or by the individual libraries on an academic campus. In such situations, the systems coordinator is required to function at a senior administrative level. The selection of the right person for this demanding job is of the utmost importance since he or she will be dealing with the most costly and pervasive function in the libraries sharing the system.

Retrieval software vendors eye videodisc market

Several items in recent issues of LSN have referred to the increased activity in the development of library-oriented products using videodisc and CD ROM as digital publishing media. These products are being developed by companies with an established interest in library indexes and data bases-Carrollton Press, Information Access Corporation, the Library Corporation, and Library Systems and Services Inc.

Companies which market data base formatting and search software have also expressed keen interest in videodiscs and compact discs as digital data publication media. BRS was one of the early financial backers of LaserData, and recently announced an agreement to exchange technology with, and market, RTI's (Reference Technology Inc.) CLASIX system for premastering digital data for publication on videodisc. RTI will market the BRS/SEARCH software. The agreements are non-exclusive.

As reported in LSN Vol. IV, No. 12 (page 91), BRS sees read-only digital publication as an opportunity to achieve more sales and use of its software. There are two places in the digital publishing chain where BRS could offer services: in the formatting of the data base before the disc is mastered, and in the use of the BRS Search retrieval software to access the data published on the disc. Demonstration discs produced by LaserData use BPS search software.

Battelle has also publicized its interest in the field, although the major focus of the company's attention now appears to be CD ROM rather than videodisc. Battelle is interested in the "packaging opportunities" offered by CD ROM and the possibility of publishing the search software along with the data files on CD ROM.

A Battelle spokesperson has addressed the performance characteristics essential to a successful CD ROM publication program. An application should encompass: a large amount of data in the form of a single file or a large number of small files; -information which is not volatile-which may require the addition of more information, but little change to existing records; information for which there is a sufficient number of potential users to allow economies of scale to be realized in disc replication; and a product which is marketable for a fixed price.

Cuadra Associates, Inc. developers of the STAR retrieval software are also participating in videodisc data base publishing developments. STAR was used in the multiuser version of Carrollton Press' MARVLS videodisc demonstrated at ALA Midwinter. The software was used both in the formatting of the data prior to its mastering on videodisc, and in the retrieval of data from the disc.

The IBM PC family

The adoption of the IBM PC as a workstation by the major bibliographic utilities and its choice by the designers of a range of library automation software has elevated the unit, or related PC- compatible microcomputers, to the status of a de facto standard for the library community in North America. Leaving aside the range of hardware claiming IBM PC compatibility, there is still a confusing range of options-seven pieces of equipment that are, or can be modified to function as, IBM PCs.

In the IBM PC line, there are five options: the PC, the PC XT, the PC XT/ 370, the PC jr., and the PC AT. The IBM Portable Computer is also a member of this family.

The basic IBM PC configuration includes a processor, random access memory (RAM) primary storage, read only memory (ROM), a display monitor, one or two floppy disk drives for secondary storage, and a keyboard. The standard PC has 64KB of primary storage which can be increased, in steps of 16KB, up to 640KB. Secondary storage can be provided with floppy disk drives or hard disks.

The PC also has expansion slots located on the back of the computer. These slots are used to add peripheral devices such as printers, monitors, and communications equipment. Normally, there are five expansion slots, but up to 13 can be made available through an expansion unit. Communications capability can be provided by using one of the slots for an RS-232 asynchronous communications adapter. A modem and a cable are also required.

The IBM PC XT is similar to the PC. The significant difference is that the MT has a lONE fixed disk built into the computer. It also has 128KB of primary storage and eight expansion slots. The system can be configured with 16 such slots. The asynchronous communications adapter is standard with the MT. The unit can accommodate a second disk drive and a second fixed disk, giving a total secondary storage capacity of 20.7MB, the same as the PC.

There are a number of PC variations which permit the machine to run software initially developed for larger IBM machines, and to facilitate file transfers between the PC and an IBM mainframe or minicomputer. The IBM PC XT/370 is an MT with three cards that permit it to execute instructions written for IBM System 370 mainframe hardware and to emulate an IBM 3277 display terminal--a common peripheral in IBM mainframe systems.

The 3270 variations of the PC also emulate a common mainframe peripheral- the 3270 terminal. The IBM 3270 PC is a multitasking system-a single user can concurrently access up to seven different programs at one time. Windowing is used to display the results of each separate operation on a single screen. A regular PC can also be configured with a board that enables it to function as an IBM 3270 terminal. Similarly, a 3270 terminal can be configured to operate as a PC.

Other PC options include the PC Jr. and the IBM Portable Computer. The Jr. comes with 64KB of RAM expandable to 128 KB, and a detached keyboard. The PC Jr. can execute much of the same software as the PC and the PC XT, subject to the 128 KB maximum primary storage limitation. The PC Jr. has no expansion slots. The IBM Portable Computer comes with 256KB of memory and is expandable to 512KB. Five expansion slots are available, only one of them full sized. The portable comes with a single disk drive, but can accommodate a second one. Software designed for older IBM PCs may not run on the Portable.

The IBM PC AT employs a more powerful processor than the other IBM PCs- three to six times faster. It is available in two models, the enhanced version offering 512KB of RAM, a high capacity floppy disk drive, and a 20MB fixed disk Memory module boards are available that make it possible to expand the AT's primary storage capacity up to 3MB. It is also possible to install a second processor to give the system even more power. A series of network products give the AT the capability to connect with other IBM PC products in a local area network and to interconnect the system with larger IBM machines.

PERLINE-CLSI news, premature

In the January issue (Vol. 5, No. 1, p.4) it was reported that Blackwell Library Systems, Inc. and CL Systems, Inc. had entered into a marketing agreement to enable Blackwell's PERLINE and BOOKLINE systems to be bid as components of the CLSI LIBS 100 automated library system. As of late February, this agreement had not yet been signed and negotiations were still going on. When these negotiations have been completed we will report on the agreement.

[Contact: Blackwell Library Systems, Inc., 310 East Shore Road, Great Neck, NY 11027 (800) 654-5395; and CL Systems, Inc., 1220 Washington Street, Newton, MA 02165 (617) 965-6310.]


Publication Information


PublisherLibrary Systems Newsletter was published by the American Library Association.
Editor-in-Chief:Howard S. White
Contributing Editor:Richard W. Boss
ISSN:0277-0288
Publication Period1981-2000
Business modelAvailable on Library Technology Guides with permission of the American Library Association.