/LMAR=0/XLINE=3/FONT#0=BAXL30/FONT#1=BAXM30/FONT#2=BASB30/FONT#3=SUB/FONT#4=SUP/FONT#5=BASL35/FONT#6=NGR25/FONT#7=MATH25/FONT#8=FIX25



␈↓ α∧␈↓␈↓ 
ZJuly 16, 1976 


␈↓ α∧␈↓α␈↓ ∧5LOTS BUDGET FOR Sept 1, 1976 to Aug. 31, 1977

␈↓ α∧␈↓␈↓ αTThis␈αbudget␈αis␈α
based␈αon␈αthe␈α
arrival␈αof␈αthe␈α
Digital␈αEquipment␈αCorporation␈α
DECSystem␈α20
␈↓ α∧␈↓on or about November 19, 1976 as promised by DEC.

␈↓ α∧␈↓1. Computer Facility Amortization ␈↓ %$36,667

␈↓ α∧␈↓2. Terminal Amortization ␈↓ 313,334

␈↓ α∧␈↓3. Maintenance ␈↓ 328,500

␈↓ α∧␈↓4. Salaries

␈↓ α∧␈↓␈↓ αtManager ␈↓ 323,625

␈↓ α∧␈↓␈↓ αtSystems Programmer ␈↓ 313,855

␈↓ α∧␈↓␈↓ αtSecretary ␈↓ 310,417

␈↓ α∧␈↓␈↓ αtAssistant manager ␈↓ B6,250

␈↓ α∧␈↓␈↓ αt␈↓ βtstaff benefits ␈↓ 310,290

␈↓ α∧␈↓␈↓ αtStudent Assistants ␈↓ 312,000

␈↓ α∧␈↓5. Supplies ␈↓ 313,000

␈↓ α∧␈↓6. Miscellaneous and Stanford services ␈↓ 312,000

␈↓ α∧␈↓7. Startup costs ␈↓ 310,000

␈↓ α∧␈↓Total ␈↓ ⊗$189,938

␈↓ α∧␈↓The above items are explained as follows:

␈↓ α∧␈↓1.␈α Based␈αon␈αstarting␈αthe␈α
amortization␈αJan.␈α1,␈α1977,␈αat␈α
6%␈αinterest,␈αan␈αannual␈αpayment␈α
of␈α$55,000
␈↓ α∧␈↓reduces the original $400,000 investment to approximately $131,200 in seven years.

␈↓ α∧␈↓2.␈αWe␈α
will␈αpurchase␈α
50␈αdisplay␈αterminals␈α
at␈αa␈α
price␈αnot␈αto␈α
exceed␈α$900␈α
each.␈α Starting␈αthe␈α
terminal
␈↓ α∧␈↓amortization␈α⊂Jan␈α⊂1,␈α∂1977,␈α⊂at␈α⊂6%␈α∂interest,␈α⊂an␈α⊂annual␈α∂payment␈α⊂of␈α⊂$18,000␈α∂($30␈α⊂per␈α⊂terminal␈α∂per
␈↓ α∧␈↓month)␈α
reduces␈α
the␈α∞original␈α
investment␈α
of␈α∞$45,000␈α
to␈α
approximately␈α∞$12,600␈α
in␈α
two␈α∞years.␈α
 Also,
␈↓ α∧␈↓we␈α∂will␈α∂purchase␈α∂3␈α∂hardcopy␈α∂terminals␈α∂(about␈α∞$1500␈α∂each)␈α∂and␈α∂amortize␈α∂these␈α∂with␈α∂an␈α∞annual
␈↓ α∧␈↓payment␈αof␈α$2000␈αper␈αyear␈αfor␈αfull␈αpayout␈α
in␈αthirty␈αmonths.␈α The␈αestimate␈αis␈αbased␈αon␈α
purchasing
␈↓ α∧␈↓kits␈α∞for␈α∞the␈α∞Lear-Siegler␈α∞ADM-3␈α∞terminal.␈α∂ The␈α∞original␈α∞hope␈α∞of␈α∞getting␈α∞them␈α∞for␈α∂$750␈α∞apiece
␈↓ α∧␈↓seems to have evaporated.

␈↓ α∧␈↓␈↓ ε|1␈↓ ∧



␈↓ α∧␈↓3.␈α
 9.5␈α
months␈α
of␈α∞DEC␈α
contract␈α
maintenance␈α
commencing␈α
in␈α∞mid␈α
November␈α
1976,␈α
at␈α∞$3,000␈α
per
␈↓ α∧␈↓month.␈α This␈αdoesn't␈αallow␈αfor␈αadditional␈αservice␈αcalls␈αoutside␈αof␈αnormal␈αhours␈α(normal␈αhours␈αare
␈↓ α∧␈↓12 hours per day, 5 days a week).

␈↓ α∧␈↓4.␈α
 The␈α∞manager␈α
is␈α
half␈α∞time␈α
for␈α∞1.5␈α
months,␈α
starting␈α∞September␈α
1.␈α
 Full␈α∞time␈α
after␈α∞October␈α
15.
␈↓ α∧␈↓Annual salary is $25,200.

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

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

␈↓ α∧␈↓The␈α
assistant␈α
manager␈α
is␈α
a␈α
position␈α
for␈α
a␈α
student␈α
(half␈α
time␈α
for␈α
three␈α
quarters,␈α
full␈α
time␈α
during
␈↓ α∧␈↓the␈αsummer).␈α The␈αsalary␈αfor␈αthis␈αposition␈αis␈αnominally␈α$10,000,␈αbut␈αthe␈αposition␈αis␈αdefined␈αto␈αpay
␈↓ α∧␈↓only the equivalent of 62.5% time (annual average).

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

␈↓ α∧␈↓5.␈α∞The␈α
largest␈α∞component␈α∞is␈α
paper␈α∞and␈α
ribbons␈α∞for␈α∞the␈α
printer.␈α∞ The␈α
supplies␈α∞budget␈α∞also␈α
must
␈↓ α∧␈↓cover␈α⊂the␈α⊂cost␈α⊂of␈α⊂magnetic␈α⊂tapes,␈α⊃disk␈α⊂packs,␈α⊂Decwriter␈α⊂paper␈α⊂and␈α⊂ribbons,␈α⊃and␈α⊂miscellaneous
␈↓ α∧␈↓computer␈αsupplies.␈α
 We␈αdon't␈αanticipate␈α
that␈αthe␈α
full␈αrate␈αof␈α
line␈αprinter␈α
use␈αwill␈αstart␈α
immediately,
␈↓ α∧␈↓but we will need to establish inventories.

␈↓ α∧␈↓6.␈α⊃We␈α∩should␈α⊃send␈α⊃a␈α∩representative␈α⊃to␈α∩the␈α⊃DECUS␈α⊃users'␈α∩organization␈α⊃which␈α∩includes␈α⊃other
␈↓ α∧␈↓universities.␈α
 Miscellaneous␈α
university␈α
services␈α
including␈α
some␈α
printing␈α
will␈α
be␈α
required.␈α Service
␈↓ α∧␈↓calls␈α
to␈α
DEC␈α
outside␈α
of␈α
regular␈α
hours␈α
will␈αhave␈α
to␈α
come␈α
out␈α
of␈α
this␈α
budget.␈α
 Telephones␈αand␈α
office
␈↓ α∧␈↓supplies will come out of this budget.  It is assumed that utilities will be provided by Stanford.

␈↓ α∧␈↓7.␈α
Startup␈α
costs␈α
are␈α
a␈α
crude␈αestimate␈α
of␈α
one-time␈α
charges␈α
pertaining␈α
to␈α
site␈αpreparation,␈α
installation
␈↓ α∧␈↓of␈α∂the␈α∂computer␈α∞and␈α∂terminal␈α∂equipment,␈α∞and␈α∂possible␈α∂travel␈α∞expenditures␈α∂for␈α∂the␈α∂purposes␈α∞of
␈↓ α∧␈↓pre-installation training for the LOTS staff.

␈↓ α∧␈↓We␈α
may␈α∞request␈α
funds␈α
for␈α∞a␈α
cluster␈α
of␈α∞high␈α
performance␈α
terminals␈α∞now␈α
being␈α∞developed.␈α
 This
␈↓ α∧␈↓would␈α
make␈αthe␈α
present␈αterminals␈α
available␈α
for␈αremote␈α
use.␈α The␈α
second␈αRPO6␈α
that␈α
was␈αdeleted
␈↓ α∧␈↓from␈α
the␈αoriginal␈α
configuration␈αor,␈α
more␈αlikely,␈α
equivalent␈α
disk␈αfiles␈α
from␈αanother␈α
supplier␈αmay␈α
be
␈↓ α∧␈↓requested␈α∪later.␈α∪ However,␈α∪the␈α∪presently␈α∩proposed␈α∪hardware␈α∪configuration␈α∪will␈α∪provide␈α∩good
␈↓ α∧␈↓service.␈α∂ The␈α∂only␈α∞possible␈α∂source␈α∂of␈α∞pressure␈α∂in␈α∂meeting␈α∞the␈α∂requirements␈α∂of␈α∞the␈α∂courses␈α∂is␈α∞in
␈↓ α∧␈↓number␈α
of␈α
terminals,␈α
since␈αthe␈α
computer␈α
power␈α
is␈α
approximately␈αequal␈α
to␈α
that␈α
of␈α
the␈α360/67.␈α
 This
␈↓ α∧␈↓cannot␈αbe␈αimmediately␈αanticipated,␈αbecause␈αthere␈αis␈αno␈αgood␈αdata␈αon␈αhow␈αlong␈αa␈αstudent␈αmust␈αsit
␈↓ α∧␈↓at␈αa␈αterminal␈α
to␈αdo␈αhis␈α
class␈αproblems␈αand␈α
no␈αdata␈αon␈α
what␈αhours␈αof␈α
the␈αday␈αor␈α
night␈αthey␈αwill␈α
be
␈↓ α∧␈↓willing to work.

␈↓ α∧␈↓␈↓ αTIMSSS␈α∞has␈α∞had␈α∞good␈α∞experience␈α∞with␈α∂a␈α∞Printronix␈α∞printer␈α∞that␈α∞costs␈α∞between␈α∂$4500␈α∞and
␈↓ α∧␈↓$5000␈α
with␈α
options␈α
and␈α
has␈α
slightly␈α
better␈α
performance␈α
than␈α
the␈α
DEC␈α
printer␈α
we␈α
have␈α
ordered␈α
for


␈↓ α∧␈↓␈↓ ε|2␈↓ ∧



␈↓ α∧␈↓$21,500.␈α⊂ Therefore,␈α∂we␈α⊂have␈α∂decided␈α⊂to␈α⊂cancel␈α∂the␈α⊂DEC␈α∂printer,␈α⊂buy␈α∂the␈α⊂Printronix,␈α⊂buy␈α∂the
␈↓ α∧␈↓sources␈αof␈α
the␈αoperating␈α
system␈αfrom␈αDEC␈α
for␈α$10,000,␈α
and␈αbuy␈α16␈α
additional␈αterminal␈α
ports␈αfor
␈↓ α∧␈↓$6000.␈α This␈αgives␈αa␈αnet␈αcapital␈αsaving␈αof␈αabout␈α$500␈αand␈αwill␈αrelieve␈αthe␈αterminal␈αproblem.␈α The
␈↓ α∧␈↓budget item for terminal amortization reflects this change.

␈↓ α∧␈↓This budget is related to the following steady state annual budget:











































␈↓ α∧␈↓␈↓ ε|3␈↓ ∧



␈↓ α∧␈↓α␈↓ ∧.STEADY STATE ANNUAL BUDGET FOR LOTS

␈↓ α∧␈↓Computer Facility Amortization ␈↓ %$55,000

␈↓ α∧␈↓Terminal Amortization ␈↓ 320,000

␈↓ α∧␈↓Maintenance ␈↓ 336,000

␈↓ α∧␈↓Salaries

␈↓ α∧␈↓␈↓ αTManager ␈↓ 325,200

␈↓ α∧␈↓␈↓ αTSystems Programmer ␈↓ 317,500

␈↓ α∧␈↓␈↓ αTSecretary ␈↓ 312,500

␈↓ α∧␈↓␈↓ αTStudent Assistant manager ␈↓ B6,250

␈↓ α∧␈↓staff benefits ␈↓ 311,678

␈↓ α∧␈↓␈↓ αTStudent Assistants ␈↓ 316,000

␈↓ α∧␈↓Supplies ␈↓ 315,000

␈↓ α∧␈↓Miscellaneous and Stanford services ␈↓ 314,000

␈↓ α∧␈↓Total ␈↓ ⊗$229,128

␈↓ α∧␈↓This budget does not allow for inflation.




















␈↓ α∧␈↓␈↓ ε|4␈↓ ∧