From ANR Report, May 5 - 25, 1998

By Bob Sams, Director of DANR Communication Services

Communication Services is about to share its revenue with ANR programs. In a pilot program proposed by Communication Services and approved recently by Vice President Gomes, ANR programs will be able to receive 25 percent of the revenues generated by a publication or other educational material produced by Communication Services. The two-year trial period includes projects submitted or in production as of October 15, 1997. Works produced before that date are not eligible for the program.

The concept of revenue sharing originated with Communications Advisory Board members who felt strongly that we should develop mechanisms that encourage and support the production of new publications and other educational materials in the Division. They believed that a policy returning sales dollars to parent programs could be an important piece of that effort.

The pilot program will help us determine whether revenue-sharing is workable and cost-effective. During the trial period, a project will be eligible for revenue sharing once Communication Services has recovered the productions costs of a project and its sales exceed $1,000 a year. The revenue will be shared with the programs identified by the authors and approved by the appropriate dean or regional director or by the vice president.

At the end of the trial period, three criteria will be used to evaluate the pilot program: 1) Did it increase the production of publications and other educational materials contributing to ANR's mission? 2) Were sales sufficient to merit the administrative costs necessary to operate the program? 3) Can Communication Services maintain financial stability while sharing revenues with ANR programs?

There are important reasons why we need to encourage the production of new, timely and high-quality publications. Communication Services' ability to serve the Division's needs depends on a strong flow of new materials that clients find appropriate, available and affordable.

Moreover, the Division's ability to fulfill its mission and priorities depends on superior materials and publications that extend its research results to Californians. Customers tell us they receive excellent value from DANR materials and are generally pleased with our offerings, especially with our newer materials. Better publications, combined with better marketing and distribution, innovative collaborations and a commitment to serving our clients' needs, further the Division's mission and generate operating revenues for Communication Services and ANR programs.

Look for information on the revenue-sharing program in upcoming issues of ANR Report and on the Communication Services web site at http://danrcs.ucdavis.edu/.

Pilot Revenue Sharing Program Policy

Communication Services (CS) will share sales revenue generated by a specific publication with that author(s)' program (Program) after CS has recovered its "out-of-pocket" and quantifiable "in-house" costs incurred in publication preparation.

Revenue sharing will be applied to publications that generate $1000 or more in annual sales.

Communication Services will return 25% of sales after cost recovery to the author(s)' program. The Program will be determined by execution of a memorandum of understanding between CS and the author(s)' Dean or Regional Director or their designee, or with an authority designated by the Vice President-Agriculture and Natural Resources.

Under unusual or extraordinary circumstances, an adjustment may be made to the revenue sharing percentage based on negotiation and agreement between the author's program and the Director, ANR Communication Services.

This proposed revenue sharing policy will begin November 1, 1997 and will be applied for a 2-year trial period; after which the effectiveness and impact of the policy will be evaluated. The policy will be evaluated on three criteria: (1) The stimulation of new educational materials and publication contributing to the mission of ANR. (2) Generation of sufficient revenues to merit the administrative oversight and effort within CS necessary to operate the program. (3) The ability of CS to maintain financial stability while sharing revenues with ANR programs.

This policy would apply to publications currently in-press.

The policy would not be retroactive to existing publications.

"Out of pocket" and "in-house" costs are to be calculated by Communication Services and specified at the time of executing the memorandum with the Program. Calculation of these costs will be itemized and will include printing, free-lance, proof-print, copy-editing, materials shipping, and project-management costs. In addtion, marketing and promotion costs and specific overhead costs associated with the project (not to include salaries of permanent state-funded staff or unit administrative expenses) will be included.

Payment of any funds due to participating programs will be made annually to the account named in the initial MOU between CS and the Program. Annual sales will be calculated on the University's fiscal year, July 1 to June 30.

5/21/98
rws