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DATE: |
October 22, 2024 |
10 |
SUBJECT
Title
REQUEST FOR SINGLE-SOURCE CONTRACT FOR DIGITAL MEDIA COLLECTIONS AND INSTANT DIGITAL LIBRARY CARDS FOR SAN DIEGO COUNTY LIBRARY (DISTRICTS: ALL)
Body
OVERVIEW
San Diego County Library’s (SDCL) digital collection is the second most-used digital public library in California and the eighth most-used in the country. In Fiscal Year (FY) 2023-24, SDCL’s customers downloaded 5.5 million eBooks. The SDCL digital collection extends the power and promise of reading to customers by providing access to resources on their mobile devices anywhere, anytime, in a format where the font size and type are adjustable for accessible reading. SDCL contracts for these services with OverDrive, Inc., a company that provides eBooks, eAudiobooks, and eMagazines with digital rights management and a software platform for circulation to library customers. With OverDrive’s Instant Digital Card service, these benefits are amplified because customers do not need to travel to a library branch to obtain a library card. This provides significant value to library customers and contributes to environmental sustainability by reducing vehicle miles traveled and related greenhouse gas emissions. This service also promotes equitable access to our collection as not everyone has access to transportation needed to visit a library branch. Additionally, SDCL has extended our digital collection to 39 schools and school districts across the County using OverDrive’s Sora mobile reading application, developed for schools.
Due to the popularity of digital formats among library customers, SDCL’s digital media investments have steadily increased. SDCL established an initial contract with OverDrive, Inc. (also known as Libby, the name of their mobile reading application) in 2008, providing customers with access to eBooks, downloadable audiobooks, and streaming video. During FY 2023-24, SDCL’s expenditures for digital resources totaled $4.4 million, a 16.7% increase over FY 2022-23. Current year expenditures are expected to increase for the seventh straight fiscal year to keep up with customer usage and demand. SDCL is requesting a new single-source contract with OverDrive, to begin January 1, 2026, for an estimated amount of $30-$40 million over the contract term of one year with four option years, in accordance with Board Policy A-87, 1. D. 1. as competition is precluded because of the existence of copyrights, and no equivalent good or services are available.
Today’s action requests Board of Supervisors approval to authorize the Director of Purchasing and Contracting to enter into a new contract with OverDrive, Inc. beginning on January 1, 2026, for a term of five years with an estimated total expenditure of $30-$40 million across all years of the contract. The estimated total costs of $30-$40 million and necessary revenue over the five-year contract term will be included in future Operational Plans for SDCL based on SDCL revenues including property taxes and library user fees.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Authorize the Director, Department of Purchasing and Contracting in accordance with County Administrative Code Section 410 et seq., to establish a new single-source contract with OverDrive, Inc., subject to approval of the Director, San Diego County Library, or designee, for an estimated amount of $30-$40 million for a term of five (5) years.
2. In accordance with Board Policy A-87, Competitive Procurement, approve and authorize the Director of the Department of Purchasing and Contracting to enter into negotiations with OverDrive, Inc. and subject to successful negotiations and a determination of a fair and reasonable price, award a contract for Digital Media Collections and Instant Digital Library Cards for up to one (1) year and four (4) option periods through December 31, 2029 and an additional six (6) months if needed, and to amend the contracts as needed to reflect changes to requirements and funding.
EQUITY IMPACT STATEMENT
San Diego County Library helps people learn, read, and enjoy materials that reflect their communities and supports their knowledge and learning. The contract with OverDrive supports this effort by providing access to materials in all threshold languages. Digital availability of books promotes equity by reducing barriers to access. Residents can find a great book to read 24 hours a day, regardless of their location within San Diego county. More than 10,000 individual customers access Libby every day, downloading an average of 15,500 eBooks daily.
SUSTAINABILITY IMPACT STATEMENT
Access to eBooks supports County Sustainability Goals 2, 3, and 7. Goal 2: Just and equitable access to services, policy decision-making, and resources is accomplished by reducing transportation, materials, and the environmental impact of recycling. Goal 3: Carbon-free emissions economy, rooted in green jobs and resilience is accomplished by allowing equality of access to a collection of library materials any time of day, regardless of library hours and proximity to a physical location. Goal 7: Reduced pollution and consumption of resources is supported by allowing constituents to checkout, read, and return an eBook from any location without having to drive to a library branch. Additionally, eBooks reduce the environmental impact of harvesting trees for the print book industry.
FISCAL IMPACT
There is no current fiscal impact associated with today’s recommendation. If approved, the OverDrive contract will commence January 1, 2026. The projected total costs of $30-$40 million and necessary revenue over the five-year contract term will be included in future Operational Plans for the San Diego County Library (SDCL) based on SDCL revenues including property taxes and library user fees. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
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Details
ADVISORY BOARD STATEMENT
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BACKGROUND
San Diego County Library’s (SDCL) digital collection extends the power and promise of reading to customers on their mobile devices. SDCL has the largest and most-used digital collection across libraries in the region. Customers no longer have to travel to the library to check out an item, nor does the library have to move that item to a customer’s branch. This provides significant value to library customers and contributes to environmental sustainability by reducing vehicle miles traveled and related greenhouse gas emissions.
SDCL has provided access to digital resources, including eBooks, downloadable audiobooks, and eMagazines through its contracted vendor, OverDrive, Inc. (OverDrive) since Fiscal Year (FY) 2008-09. OverDrive sells digital items from a wide range of publishers and provides SDCL with a platform that customers can use to browse, checkout, and download available titles. OverDrive also provides support services, including Instant Digital Card (IDC), a service that allows San Diego County residents to obtain a digital library card immediately and access SDCL’s digital collection anywhere, anytime. The existing contract was established on April 6, 2021, with an initial term of one year ending on December 31, 2021. There were four option periods of one year each, ending on December 31, 2025, for a total contract term of five years and an estimated total contract cost of $18 million.
Digital formats are an integral part of our residents’ reading experience. In 2023, SDCL offered the One Book, One San Diego title, The Sum of Us, with unlimited eBook and downloadable audio access. It was downloaded 3,414 times, allowing SDCL to reach a larger audience without having to buy additional physical copies. Digital formats make every book accessible to customers via increased font sizes and dyslexic font, a font that is easier for people with dyslexia to read. Downloadable audiobooks make a great companion during commute times, while exercising, or listening with family and friends.
OverDrive’s Sora digital reading application (Sora) allows SDCL to further extend our digital collection to 39 partner schools and school districts. These partnerships increase access to books and help develop literacy skills in the region's student populations, where obtaining books may be challenging due to limited school resources. Providing this service allows our staff to conduct outreach in schools and districts throughout the region to strengthen relationships with the community. In FY 2023-24, students downloaded 57,381 eBooks and eAudiobooks through Sora.
SDCL’s digital collection expenditures have increased steadily to meet growing customer demand and changes in publisher pricing models. In FY 2008-09, San Diego County residents checked out 18,776 digital items from SDCL. The ensuing years have seen annual increases ranging from 5% to 117%, resulting in a total circulation of 5,483,630 in FY 2023-24. As demand for eBooks has grown, publishers continually assess and change their prices and licensing models. Some publisher models are based on titles expiring from the collection after a specific length of time or number of customer usages. SDCL must repurchase expired titles that are still popular with county readers. At the end of the prior contract on April 5, 2021, 21.6% of SDCL’s digital collection was available in a model based on expiration. In FY 2023-24, all major publishers were using this licensing model, which represented 30.5% of SDCL’s collection. These necessary repurchases have increased our annual costs. FY 2023-24 expenditures for digital media were $4.4 million, as included in the FY 2023-24 Operational Plan for SDCL.
Justification for Single-Source
In accordance with Board Policy A-87, 1. D. 1., a single-source exception is requested as competition is precluded because of the existence of copyrights, and no equivalent good or services are available. OverDrive is the only library eBook vendor that can provide eBooks in Kindle format and OverDrive is the only vendor that offers the IDC service. Since 2012, OverDrive and Amazon have contracted to provide content in Kindle format via the OverDrive platform. Amazon has not granted this access to any other library eBook vendor. In FY 2023-24, 37.3% of eBooks borrowed at SDCL were checked out in the Kindle format, indicating that this is an essential service to our customers. In addition, 54.9% (167,270) of SDCL OverDrive users access the collection with an IDC card. The IDC service also allows SDCL’s library collection to be discoverable through Google searches. Sora users downloaded 57,381 eBooks and eAudiobooks. SDCL is requesting authorization for single-source procurement because a potentially large percentage of the titles available for checkout would be lost if a switch is made to a different vendor. Titles are not owned by the library, but instead licensed, and not all publishers allow all titles to be transferred. Establishing a new single-source contract with OverDrive will allow SDCL to continue to meet customer demand by making digital library cards and materials easily and conveniently available electronically 24/7. Prices for eBooks and downloadable audiobooks available for sale to libraries are the same across vendors because they are determined by the publisher and not the vendor. OverDrive also charges an annual platform fee of $12,000, which is in line with prices charged from similar providers for this service. Prices were therefore determined to be fair and reasonable.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions to authorize the San Diego County Library’s request to enter into a new single-source contract with OverDrive, Inc. supports the Sustainability/Equity/Empower/ Community/ and Justice Strategic Initiatives within the County of San Diego’s 2024-2029 Strategic Plan by providing library resources for residents that enrich the lives of all people and allow residents to be engaged within their community.
Respectfully submitted,
DAHVIA LYNCH
Deputy Chief Administrative Officer
ATTACHMENT(S)
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