August 24, 2004

SUBJECT: Award of Request for Proposals No. F0310-27 for an Automated Library Circulation System to Replace the Existing System

Approval is requested for the award of a contract in the amount of $272,447 (includes sales tax) to Innovative Interfaces of Emeryville to provide and assist in the implementation of an automated library circulation system, including software and hardware, for the Information Technology Department (ITD) on behalf of the Sunnyvale Public Library. Authorization is also requested to establish a $25,000 project contingency for situations, if any, which require implementation assistance beyond the original scope of services.

BACKGROUND

The Sunnyvale Public Library has had an automated circulation system since 1971. On December 27, 1984, a contract was signed with Electric Memory, Inc. (EMI), to provide software for an integrated library system. EMI changed its name to Inlex; and in 1986, Sunnyvale brought up the Inlex/3000 new circulation module and ten OPACS (online public access catalog system). The system grew to include cataloging, acquisitions, backup and portable circulation, administration and reports modules. Inlex has been a very stable library software system, but it lacks modern features.

In October 1993, Inlex was purchased by Data Research Associates (DRA). DRA continued to support the Inlex product, but it still lacked current functionality. In 1997, an automation task force was convened, made up of representatives from each library division and from the Information Technology Department. Input was solicited from staff and patrons in order to develop a list of elements required in a new automated library system. An extensive evaluation form was developed, and six major library system providers used it to demonstrate their systems. Although none of the system providers had a completed new generation product installed and working, two systems products were determined by staff to have the greatest promise for the future.

In the summer of 1998, all public and staff dumb terminals were replaced with personal computers. The entire library was rewired to support this technology, a network was established and the catalog was made available on the web. Although it looked new with a graphical interface, it had the old Inlex structure underneath. Nevertheless, patrons could now place reserves, renew items and view their entire record to see what they had on loan, overdue or on reserve.

In Spring 2000, DRA launched an entirely new generation online integrated system called Taos which, upon evaluation, proved to be a poor choice for migration at that time. In 2001, DRA was purchased by Sirsi Corporation. Sirsi also provides software and services for libraries. Sirsi stopped development of Taos in favor of their product which is called Unicorn or iBistro.

At that time, two apparently viable commercial integrated library system (ILS) providers emerged as candidates to replace Inlex: Sirsi and Innovative Interfaces, Inc.

In 2002 and 2003, library staff reviewed the software offered by both firms and identified comparable services based on the needs of patrons and staff. Both were invited to the library to demonstrate their software products. In preparation, library and ITD staff met in workgroups and decided on the important features needed; and these features were put in priority order. Potential "fatal flaws" were also identified. All the checklist answers and comments were gathered and evaluated. Demonstrations were followed by site visits to libraries actually using the software. Library and ITD staff also went to visit the Innovative headquarters in Emeryville and met the CEO and other managers.

In October 2003, a formal Request for Proposals was distributed to Sirsi Corporation and Innovative Interfaces, the only two apparently viable system providers. Both submitted proposals. After an extensive review of the two proposals, it became apparent that the Sirsi system did not have the required functionality. Staff, therefore, entered into contract negotiation with Innovative Interfaces, the only viable proposer; and the attached draft agreement is the result of that process.

Following is a summary of the reasons staff recommends award of contract to Innovative Interfaces:

• Innovative provides resource-sharing opportunities with many neighboring libraries that also use Innovative software (San Jose, Santa Clara City Library and Mountain View). This includes community information and patron initiated interlibrary loans. Sunnyvale library patrons will be able to obtain materials virtually unassisted with the Link+ product. The likelihood is that Sunnyvale circulation will increase, and added revenue will be received through the State's TBR (Transaction Based Reimbursements) program.

• Innovative currently offers data manipulation for non-Roman characters in UNICODE, an international standard that enables storage and display of non-roman characters and scripts. This facilitates the use by patrons to search for materials in languages other than English and for users to be able to interpret their searching in their native languages. This feature is very important to the City's diverse population.

• Sunnyvale library staff has expressed a preference for the Innovative system, based on their participation in demonstrations and in site visits to libraries currently using the systems under consideration. They perceive Innovative as an easier system on which to train staff due to its straightforward staff functions and feel it supports current staff functions well.

• Innovative is a California-based company located in Emeryville. Due to its proximity to Sunnyvale, Innovative can offer local service and support as opposed to Sirsi, which is headquartered in Huntsville, Alabama.

• Innovative’s web interface requires very little customization, a characteristic valued by both ITD and the Library staff.

• Innovative Interfaces, Inc., has been a consistent leader in the field and is highly recommended by those libraries currently using the product. Several of these libraries were former Inlex customers.

• Innovative Interfaces' Millennium product is familiar to many Sunnyvale residents who also use neighboring libraries. Library users will benefit by the familiarity of the system and the capabilities for resource sharing between libraries which it will provide.

• The Millenium system will enable the Library to realize a more seamless approach to the acquisition, cataloging and management of library materials. It will also enable library users to obtain information from the Library's print and digital collections simultaneously.

The total cost to purchase and implement the requested system (both software and hardware) from Innovative Interfaces will be $272,447 (includes sales tax). This purchase can be accomplished by using rental rates accumulated over the many years the existing library system has been in use. Staff also requests that Council authorize a project contingency in the amount of $25,000 to be used if anything is encountered during project implementation that requires services outside the scope of the requested contract.

Funds for this purchase are available in Information Technology Replacement Account No. 021601 which currently has a balance of $341,643. The total contract amount, including contingency, will be $297,447. The balance of funds available in the Information Technology Replacement Account will be utilized for implementation costs, including authority control (a process by which materials records are made to conform to current standards) and the cost of data extraction and delivery of records from the current library system provider to the new provider.

Funds are also available in Capital Project No. 819560 - Library Automation Project in the amount of $64,000. These funds will not be necessary, and the project will be closed during the year-end re-appropriation process with the monies returned to the General Fund.

There will be no charge for software and hardware maintenance during the first year of system use. Costs for Years 2 through 5 will be $32,737 per year for software maintenance and $1,699 per year for hardware maintenance. Other miscellaneous annual services (catalog enrichment content and Link+ participation) will be billed at the rate of $30,140 per year. Although pricing for ongoing services is included in the requested contract, separate contracts for these services will be issued on an annual basis under the City Manager's awarding authority. Ongoing costs have been budgeted in various departmental operating accounts and the Capital Project.

RECOMMENDATION

It is recommended that Council:

1. Award a contract to Innovative Interfaces in the amount of $272,447 (includes sales tax) to provide and assist in the implementation of an automated library circulation system; and

2. Authorize a project contingency in an amount not to exceed $25,000.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Victoria Johnson
Director, Libraries

Reviewed by:

Shawn Hernandez
Director, Information Technology

Approved by:

Amy Chan
City Manager

Attachments
Draft Agreement for an Automated Library System (.pdf format)