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HomeMy WebLinkAboutKPL - Referral of Projects to the 2010-2019 Capital ForecastREPORT Report To: Chair Vrbanovic and Members of Finance and Corporate Services Date of Meeting: October 26, 2009 Submitted By: Kitchener Public Library Board Prepared By: Sonia Lewis, CEO Ward(s) Involved: All Date of Report: October 16, 2009 Subject: REFERRAL OF PROJECTS TO THE 2010-2019 CAPITAL FORECAST RECOMMENDATIONS: THAT the following capital projects be included in the 2010-2019 capital forecast for consideration by the Finance and Corporate Services Committee as part of the 2010 budget deliberations: Radio Frequency Technology $450,000 2019 Library Automation System Replacement $200,000 2019 and further, THAT $100,000 from Kitchener Public Library’s contributions to the City’s telephone reserve be allocated to the library in 2010 for telephone system replacement. BACKGROUND: All new or adjusted capital projects in excess of $50,000 are referred to the City’s ten-year capital forecast by a resolution of Council. They are then evaluated during the budget approval process against all other project priorities and fund constraints. This report provides information and recommendations with respect to adjusted project funding requests for the Kitchener Public Library. REPORT: Two projects in excess of $50,000 are proposed in Kitchener Public Library’s 2019 capital forecast. A brief description of each follows. Radio Frequency (RFID) Technology: On June 11, 2007, Council approved the business case for KPL’s RFID and Automated Check-In projects. The 2008-2017 capital forecast approved by Council included funding in 2012 for automated check-in technology. That funding was subsequently reallocated to the central library project and plans to implement automated check-in were delayed. The KPL Board is seeking approval to reintroduce automated check-in into the 2019 capital forecast. Please refer to the appended issue paper for project details. Library Automation System Replacement: This project will provide funding for the replacement or major upgrade of the system which was installed in 1992. The 2008-2017 capital forecast approved by Council included $500,000 in 2013 and $200,000 in 2014 to replace the library automation system. That funding was subsequently reallocated to the central library project and plans to replace the library automation system were delayed. Project costs will total $700,000. The approved 2009-2018 capital forecast included $500,000 for library automation system replacement. An additional $200,000 is required in 2019 to complete the project. Please refer to the appended issue paper for project details. Telephone System Replacement (KPL VOIP) For a number of years KPL has contributed to a telephone reserve fund administered by the City. The KPL Board is requesting $100,000 from the fund in 2010 for a telephone system replacement. This is not new funding, but rather funding that has accumulated to date in the reserve. In recent discussions with City staff there was agreement that the original vision to purchase a shared system was no longer the preferred solution given our different needs, timetables and networks. FINANCIAL IMPLICATIONS: If supported, the capital project adjustments proposed in this report will be referred to capital budget deliberations. They will then be evaluated against all other capital projects and funding constraints within the ten-year forecast. ATTACHMENTS: RFID - Automated Check-In and Sorting Issue Paper Library Automation System Replacement Issue Paper ACKNOWLEDGED BY: Sonia Lewis, Chief Executive Officer, Kitchener Public Library CITY OF KITCHENER 2010 CAPITAL BUDGET ISSUE PAPER ISSUE: RFID AND AUTOMATED CHECK-IN AND SORTING CAPITAL FUND: DEPARTMENT: KITCHENER PUBLIC LIBRARY PREPARER: LESA BALCH, SENIOR MANAGER, SERVICE DEVELOPMENT BACKGROUND: KPL has identified the need to introduce RFID (Radio Frequency Identification) technology throughout the library system. RFID allows libraries to place a single microchip tag on every book, CD and DVD in the library that will both identify and secure the items. The RFID Business Case was presented to Council on June 11, 2007. (F&C Services committee on May 28, 2007). The first phase of the RFID project has begun, during which all library items are being tagged with an RFID chip and self-checkout is being implemented at all library locations. Capital funding for the first phase was approved and continues until 2011. Phase two of the project involves implementing automated check-in and sorting at the Main Library, where the turnover of materials is the greatest. Capital funding for phase two was initially approved for 2012, but was delayed as part of the funding strategy for the Central Library project. RATIONALE / ANALYSIS: From 2000 to 2008, KPL experienced a 63% increase in the circulation of books, audiovisual materials and other resources. KPL has a resource collection of over 620,000 items with an annual circulation of 2.5 million items. KPL’s collection and circulation continue to increase. Current staffing levels and technology currently in use at KPL do not have the capacity to absorb an ever increasing flow of materials. RFID technology will allow KPL to manage increasing circulation and growing collections with greater efficiency, reliability and security. At the same time, it puts KPL on track to provide technologically advanced service to our customers that is fast and easy to use. While RFID technology will be installed at all KPL locations, automated check-in and sortingis planned only for the Main Library to handle the larger number of volumes at that facility. However, this benefits customers throughout the library system because of the faster turnaround on requested items coming from or passing through the Main Library. Automated check-in presorts materials and reduces the amount of materials handling, benefiting both library staff and customers. Automated check-in results in fewer motions and less materials handling, reducing the risk of repetitive strain injuriesand thereby offering improved ergonomics for staff. Customers benefit as automated check-in helps to get the materials back on the shelves more quickly and available for check-out. FINANCIAL IMPLICATIONS: Automated check-in requires capital funding of $450,000 in 2019. RECOMMENDATION: KPL recommends capital funding of $450,000 in 2019 to implement automated check-in, as phase two of the previously approved RFID project. KITCHENER PUBLIC LIBRARY 2010 CAPITAL BUDGET ISSUE PAPER ISSUE: LIBRARY AUTOMATION SYSTEM REPLACEMENT KITCHENER PUBLIC LIBRARY CAPITAL BUDGET FUND: DEPARTMENT: KITCHENER PUBLIC LIBRARY PREPARER: LESA BALCH, SENIOR MANAGER, SERVICE DEVELOPMENT BACKGROUND: The integrated library automation system supports the core functionality of the libraryand includes: bibliographic system to order, receive and catalogue materials search system to view all items owned by the library customer management system to manage customer information delivery system to manage requests and circulation of materials Vendors also offer many additional products that interface seamlessly with their core software, providing libraries options such as e-commerce, digitization of materials, and all-in-one searching of the library catalogue, the internet and online databases. RATIONALE / ANALYSIS: Kitchener Public Library last went to the marketplace with an RFP for an integrated library system in 1991. The contract with our current vendor was signed in April 1992. In 2001, KPL began a three year process of upgrading the current integrated library system modules used by staff and customers to a graphical interface. The vendor market and library customer needs have changed considerably since 1991. Many integrated library system companies have been purchased by competitors, consolidating the marketplace. This project provides KPL with theopportunity to test the market to ensure that our current software and vendor are the right fit for our customers and staff, providing the technology needed to support new initiatives that best serve the residents of the City of Kitchener. There is the possibility that KPL will determine to stay with our current integrated library system vendor, but that decision needs to be considered after 21years of using and upgrading the same system. FINANCIAL IMPLICATIONS: In last year’s capital budget process KPL requested $500,000 in 2018. The 2010-2019 forecast requests a further $200,000 in 2019 to complete this project. RECOMMENDATION: The Kitchener Public Library Board recommends capital funding of $500,000 in 2018 and $200,000 in 2019 for a new integrated library system.