In addition, program evaluations have been undertaken for the Living Libraries Infrastructure Program and the Premiers’ Reading Challenge Book Fund, have assessed the efficiency and effectiveness of these programs. Both of these programs have funding which lapses in 2016. This document aims to summarise the different initiatives contained in all of the reports are either: existing programs (the Public Libraries Funding Program, the Living Libraries Infrastructure Program and the Premiers’ Reading Challenge Book Fund); and proposals for shared services (the component inter-related parts of the Victorian Library). This report does not evaluate the merit of existing programs, but focuses on two potential enhancements that could build on the ‘current state’: Option 1 – Shared Services Option Option 2 – The Victorian Library Option Figure 2: Current Public Libraries Programs and Shared Services Options3 Scope, method and approach KPMG has been engaged to provide a summary and to undertake a critical examination of the previous work undertaken in this area, namely: Business Case for the Implementation of the Victorian Library (Mach 2 consulting September 2013); Review of Victorian Public Libraries Stage 2 Report (Ministerial Advisory Council on Public Libraries November 2013); Implementation Planning Framework (Mach 2 consulting September 2014); Shared Services Business Case (Mach 2 consulting August 2015); Living Libraries Infrastructure Program (ACIG February 2015); and Premiers’ Reading Challenge Book Fund Program (Roberts Evaluation Pty Ltd February 2015). Each document provided by Local Government Victoria has been reviewed, and the individual components within each business case or evaluation have been summarised. 3 Source: KPMG analysis
Appendix 1: Detailed cost estimates Costing Assumptions All financial data in this report has been sourced from the following documents: Mach 2 Consulting (2015), Shared Services Options; and Mach 2 Consulting (2013), Business Case for the Implementation of ‘The Victorian Library’. Assumptions made by Mach 2 Consulting are listed in Table A - 2: Assumptions – Shared Services Options paper. Additional assumptions overlaid on this data by KPMG are listed in Table A - 1 on page 34. .
Assumptions – Business Case for the Implementation of ‘The Victorian Library RFID entire collection Includes initial acquisition of tags at 18¢/54¢ per tag (book/AV). Also includes ongoing purchase of RFID tags. Supply of one RFID reader to every branch/mobile. Ongoing replacement of pad readers at five years of age. Includes tagging of entire collection. Tagging stations hired at $1,000 per month. Assumes two people can tag 250 items per hour. Includes ISO compliance testing of existing tags/data models. 60% assumed not to comply. Assumes 20 tags can be checked for compliance minute. On-going purchase of RFID tags and replacement readers (at one per branch/mobile) will no longer be done by library services. Additional readers may be purchased by services at expense. Installation of RFID tags will remain services’ responsibility. Includes savings from ongoing provision of tags at 23¢/68¢ per tag (book/AV). State-wide LOTE collection – Acquisition and management of ‘floating collection’ and/or provision of tied LOTE funding to ‘centre of excellence’ libraries. Costing of Options The table below details costings for a State-wide LMS and a State-wide e-book/e-content collection. The costings have been sourced from the Mach 2 Consulting Shared Services Options paper. Table A - 4: Option 1 costings - Shared Services90 State-wide LMS and State-wide E-book/E-content Collection (Shared Services Options) Costs Year 1 Year 2 Year 3 Year 4 Sum over 4 years Specification/Contracts Oversight committee $ 51,700 - - - $ 51,700 Governance/Staff $ 460,000 - - - $ 460,000 Project officers $ 280,000 - - - $ 280,000 Staff on-costs $ 102,490 - - - $ 102,490 Office accommodation $ 244,200 - - - $ 244,200 External consultants $ 100,000 - - - $ 100,000 Procurement Federated discovery $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ 1,120,000 LMS $ 514,178 $ 1,328,754 $ 1,214,991 $ 1,252,366 $ 4,310,289 E-content $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 2,000,000 90 Mach 2 Consulting (2015), Shared Services Options.