More Consortial Consolidation

["Okerson, Ann" <ann.okerson@yale.edu>]

After Lyrasis, this.  Our library consortia grow in size.  I used 
to think that the UK, with some 200 library members was really 
big; and the Chinese consortium, with hundreds of members, was 
vast.  Ann Okerson

-----Original Message-----

New Midwest Collaborative for Library Services, following LYRASIS 
example, driven by need for scale

Norman Oder -- Library Journal, 12/22/2009

Merger of equals
INCOLSA losing money, MLC in the black

MLC's Dykhuis to head

In another example of consolidation among networks spurred by 
changing OCLC reimbursement and the need for economies of scale, 
the members of the Michigan Library Consortium (MLC) and 
Indiana's INCOLSA, Inc. have approved a merger, creating the 
Midwest Collaborative for Library Services (MCLS), which will 
have a combined membership of over 1300 institutions of all types 
and sizes.

Randy Dykhuis, MLC executive director, will head the newly 
created MCLS. "As we move forward as a combined organization, I 
look forward to continuing the good work that both organizations 
have done and expanding services in both states," Dykhuis said. 
"With our combined membership we expect to deliver enhanced 
savings on services such as group licenses and to expand resource 
sharing options for residents of both states."

Each organization will have an equal number of seats on the board 
in a merger of equals.

Driven by need to save

The formation earlier this year of LYRASIS out of Solinet and 
Palinet (and later Nelinet) was driven, in part, by change in the 
network business relationship with OCLC, effective July 1, 2009. 
Similarly, a merger FAQ for the new organization states:

The current economic climate that has severely impacted library 
budgets and recent changes in the OCLC-Network relationship have 
created an opportunity to re-evaluate the types of services we 
offer to libraries and to rethink the organizational structure 
needed to support new and expanding services. By combining our 
staff and financial resources we will be in a better, more nimble 
position to develop and support new initiatives that will save 
our members time and money.

Among the expected services are a regional union catalog and 
linked delivery systems, strong partnerships with state 
libraries, partnerships with other consortia, additional 
training, and new products and services.

Financial details

According to an FAQ about finances, MLC has been in the black for 
15 years, but INCOLSA has lost about $1 million per year for the 
past three years, with some specific programs "incurring 
substantial losses."

While INCOLSA has $2.1 million in a reserve fund plus a building 
worth $1 million, the executive committee did not want to 
continue to spend down the reserve fund.

Each organization will bring buildings and equipment worth 
approximately $1 million to the new organization, while INCOLSA 
will bring its $2.1 million in cash and MLC will bring $3.3 
million.

According to a Memorandum of Understanding, some layoffs may take 
place; employees of MLC and INCOLSA will be entitled to severance 
benefits equivalent to those set by their original organizations.

***