[Digihubsadmin] [digihubs] Fwd: Charging for Services

Mon May 18 12:46:33 EDT 2015

Hi all,
Hope you are well.
Toledo is progressing well through the test collections, and we're learning a lot!
Right now we're revising a workflow document, and sweating the details because for us, these are cross-departmental tasks.
The brochure for external agencies is just about ready to go. This will encompass the whole range from regional libraries to civic groups. We're getting calls pretty regularly from regional libraries who want to know about the scope and cost of the digitization service.
The ContentDM site is in development - thanks for all of the great examples on your websites.

My critical need today:
What is your current pricing structure? Here's what I could find from various notes:
PLCHC: Does charge for things they don't own
CML: Doesn't charge
CPL: Wants to charge/wants cost recovery built in. Looking at a tiered structure: larger non-profit, public, some big projects higher than market so they can focus on small & medium
TLCPL: Plans on charging; looking for a model

Do any of you currently charge or plan to charge regional libraries? Would you share the rates / formula?
We're imagining that if a library ships/delivers a box of "stuff" we would scan it and deliver the scans to them on a flash drive. Do any of you do additional work with these collections?

Sorry to pepper you with questions on a Monday, but really want to get this part of the process resolved & off my desk!
Thanks a million, and give a call if that's easier,
Meg.

419-259-5333

-----Original Message-----
From: digihubs-bounces at lists.oplin.org [mailto:digihubs-bounces at lists.oplin.org] On Behalf Of Stephen Hedges
Sent: Friday, August 22, 2014 9:03 AM
To: digihubs at lists.oplin.org
Subject: [digihubs] Fwd: Charging for Services

I'm forwarding an email Katy Klettlinger sent me after the Hubs' July 22 presentation at CML, where the question about the pricing for digitization services was raised (again). I mentioned then that there might be legal blocks that would keep the Hubs from setting prices that were too low and "unfairly" competing with commercial digitization businesses. Katy sent me this info (copied after my long message) about another kind of restriction on county government agencies charging other county government agencies, which could figure into decisions about what the Hubs would charge other libraries, museums, etc. (BTW, Katy's email address is now kklettlinger at library.ohio.gov and she's on this digihubs mailing list.)

I'm not a lawyer, but...

It looks to me like the whole notion that government (really, the federal government) cannot compete with business dates back to Eisenhower's Bureau of the Budget Bulletin 55-4, which is often cited as the mandate preventing Unfair Competition, though it has not been in effect since 2003 -- see http://www.jeffersonpolicyjournal.com/?p=1797. There always seems to be at least one proposed law kicking around Congress, I think the most recent is https://beta.congress.gov/bill/113th-congress/house-bill/1072, but they never seem to get out of committee. I have heard anecdotes about colleges carefully avoiding competing with private business, but if true, I suspect that it's a local policy/PR decision, and not something mandated by law. See disclosure above, however. As Katy says, it would be a great question for a real lawyer.

As far as agencies charging other agencies -- and public libraries are probably closer to being state agencies than county agencies -- I know that the Ohio Department of Administrative Services (DAS) collects a good bit of revenue selling services to state agencies. The DAS Office of Information Technology (OIT) even publishes a price sheet, http://das.ohio.gov/Divisions/InformationTechnology/ServiceSheets.aspx. Most large state agencies are required to buy services from OIT, a sweet deal for OIT; on the other hand they cannot sell to anyone except state agencies. Now, OIT does get some federal money, with the same "cost-recovery" restrictions the Hubs have due to the federal LSTA funding, which means DAS-OIT goes through some amazing budget gyrations and price tweaking each year to prove that they didn't really make a profit on any services supported by any federal funding. But to get to my point, I think they've set a precedent that could be followed by the Hubs in regard t

 o charging other libraries.

So to summarize, I personally think the Hubs could charge anybody anything, so long as your accounting shows that the charges just covered your costs.

We probably should get an Oversight Committee meeting set up pretty soon to discuss the whole pricing issue. And digital preservation (another grant?). And DPLA again. And what else? I'm imagining a conference call, but the OPLIN office is always at your disposal for face-to-face meetings, if you prefer.

Stephen
--
Stephen Hedges, Director
Ohio Public Library Information Network (OPLIN)
2323 W. Fifth Ave., Suite 130, Columbus, OH 43204
614-728-5250  ::  hedgesst at oplin.org

----- Forwarded Message -----
From: "Katy Klettlinger" <KKlettlinger at lcounty.com>
To: hedgesst at oplin.org
Cc: mlodge at library.ohio.gov
Sent: Tuesday, July 22, 2014 4:41:28 PM
Subject: County Government Offices Charging for Services

Dear Stephen,

First, it was wonderful meeting you today.  I look forward to working with you once I start at the State Library.

Below is the Ohio Attorney General Opinion regarding county governments charging for services that you had asked me about.  This opinion was pulled out to stop some county records centers when they wanted to charge for records storage space and for digitization services. 

The opinion is a  pretty detailed read.  It restricts a Board of County Commissioners to charge another public office for services unless permission is specifically expressed in the Ohio Revised Code.  Today, I explained that public entities can charge other public entities, but not private.  The ability to charge is not always granted to an office that falls under the Board of County Commissioners.  On the other hand, an office that falls under the authority of a County Microfilming or Automatic Data Processing Board can charge other public entities.
County government is a complex little world!

http://www.ohioattorneygeneral.gov/Files/Legal/Opinions/Opinions-Archive
-1970/Opinions-Archive/1980-1989/1982-Opinions/1982-011

As implied in the opinion, I think the question of to charge or not to charge falls within how an institution is funded and whether it is defined as a public or private entity.  This would be a great question for an institution's legal counsel.

Sincerely,

Katy

Katy L. W. Klettlinger, CA
Records Manager
Licking County Records & Archives
Physical/Shipping Address: 39 South Buena St.
Mailing/Billing Address:  20 South 2nd St.
Newark, OH 43055
Phone: 740-670-5121
Fax: 740-670-5124
www.lcounty.com/records
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