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.cb "LOTS BUDGET FOR Sept 1, 1976 to Aug. 31, 1977"


	This budget is based on the arrival of the Digital
Equipment Corporation DECSystem 20 on or about November 19, 1976 as
promised by DEC.

.ITEM←0; turn off "%"; turn on "→\"; TABS 8,16; CRBREAK;

#. Computer Facility Amortization 		 →$36,667
#. Terminal Amortization 			  →13,334
#. Maintenance 					  →28,500
#. Salaries
\Manager					  →23,625
\Systems Programmer  			  	  →13,855
\Secretary 				  	  →10,417
\Assistant manager			  	   →6,250
\\staff benefits				  →10,290
\Student Assistants 				  →12,000
#. Supplies 					  →13,000
#. Miscellaneous and Stanford services 		  →12,000
#. Startup costs 				  →10,000

Total					 	→$189,938

.item←0; CRSPACE;
The above items are explained as follows:
#.  Based on starting the amortization Jan. 1, 1977, at 6% interest,
an annual payment of $55,000 reduces the original $400,000 investment
to approximately $131,200 in seven years.

#. We will purchase 50 display terminals at a price not to exceed $900 each.
Starting the terminal amortization Jan 1, 1977, at 6% interest,
an annual payment of $18,000 ($30 per terminal per month) reduces the
original investment of $45,000 to approximately $12,600 in two years.
Also, we will purchase 3 hardcopy terminals (about $1500 each) and
amortize these with an annual payment of $2000 per year for full payout
in thirty months.
The estimate is based on purchasing kits for the Lear-Siegler ADM-3
terminal.  The original hope of getting them for $750 apiece seems to
have evaporated.

#.  9.5 months of DEC contract maintenance commencing in mid November 1976,
at $3,000 per month.  This doesn't allow for additional service calls outside
of normal hours (normal hours are 12 hours per day, 5 days a week).

#.  The manager is half time for 1.5 months, starting September 1.  Full
time after October 15.  Annual salary is $25,200.

The systems programmer will be hired during or after mid November 1976.
The annual salary will be in the range $16,000 to 17,500 depending on the
selected person's qualifications.  No person has yet been selected for this
position, so the salary can not be more closely determined.

The secretary is full time starting November 1, 1976 at an annual
salary of $9,500 to $12,500, depending on qualifications.

The assistant manager is a position for a student (half time for
three quarters, full time during the summer).  The salary for this
position is nominally $10,000, but the position is defined to pay 
only the equivalent of 62.5% time (annual average).

The student assistants will be hired for part time work as
needed.  The work involved includes programming, user services,
documentation, equipment maintenance, and operations.

#. The largest
component is paper and ribbons for the printer.  The supplies budget
also must cover the cost of magnetic tapes, disk packs, Decwriter
paper and ribbons, and miscellaneous computer supplies.
We don't anticipate that the full rate of line printer use will
start immediately, but we will need to establish inventories.

#. We should send a representative to the DECUS users' organization
which includes other universities.  Miscellaneous university services
including some printing will be required.  Service calls to DEC
outside of regular hours will have to come out of this budget.
Telephones and office supplies will come out of this budget.
It is assumed that utilities will be provided by Stanford.

#. Startup costs are a crude estimate of one-time charges pertaining
to site preparation, installation of the computer and terminal equipment,
and possible travel expenditures for the purposes of pre-installation
training for the LOTS staff.

We may request funds for a cluster of high performance terminals
now being developed.  This would make the present terminals available
for remote use.  The second RPO6 that was deleted from the original
configuration or, more likely, equivalent disk files from another
supplier may be requested later.
However, the presently proposed hardware configuration
will provide good service.  The only possible source of
pressure in meeting the requirements of the courses is in number of
terminals, since the computer power is approximately equal to that
of the 360/67.  This cannot be immediately anticipated, because there
is no good data on how long a student must sit at a terminal to do
his class problems and no data on what hours of the day or night they
will be willing to work.

	IMSSS has had good experience with a Printronix printer that
costs between $4500 and $5000 with options and has slightly better
performance than the DEC printer we have ordered for $21,500.
Therefore, we have decided to cancel the DEC printer, buy the Printronix,
buy the sources of the operating system from DEC for $10,000, and
buy 16 additional terminal ports for $6000.  This gives a net capital
saving of about $500 and will relieve the terminal problem.  The
budget item for terminal amortization reflects this change.

This budget is related to the following steady state annual budget:
.skip to column 1

.cb STEADY STATE ANNUAL BUDGET FOR LOTS

.CRBREAK;
Computer Facility Amortization 			 →$55,000
Terminal Amortization 				  →20,000
Maintenance					  →36,000
Salaries
	Manager					  →25,200
	Systems Programmer  			  →17,500
	Secretary 				  →12,500
	Student Assistant manager		   →6,250
		staff benefits			  →11,678
	Student Assistants 			  →16,000
Supplies 					  →15,000
Miscellaneous and Stanford services 		  →14,000

Total						→$229,128

This budget does not allow for inflation.