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Today's Topics:

   1. Consultation on Approaches for Adjusting the ARIN
      Registration Services Plan Fee Schedule (ARIN)
   2. Re: Consultation on Approaches for Adjusting the ARIN
      Registration Services Plan Fee Schedule (William Herrin)
   3. Re: Consultation on Approaches for Adjusting the ARIN
      Registration Services Plan Fee Schedule (John Curran)
   4. Re: Consultation on Approaches for Adjusting the ARIN
      Registration Services Plan Fee Schedule (David Farmer)


----------------------------------------------------------------------

Message: 1
Date: Wed, 03 Apr 2024 12:40:40 -0400
From: ARIN <i...@arin.net>
To: <arin-consult@arin.net>
Subject: [ARIN-consult] Consultation on Approaches for Adjusting the
        ARIN Registration Services Plan Fee Schedule
Message-ID: <e7ea4877-ed6c-454a-b1c7-4f394d740...@arin.net>
Content-Type: text/plain;       charset="UTF-8"

The American Registry for Internet Numbers (ARIN) is currently evaluating 
potential methods to adjust our Registration Services Plan Fee Schedule and is 
inviting feedback from the community 
(https://www.arin.net/participate/community/acsp/consultations/2024/2024-2/). 
Our goal is to maintain a balanced alignment between operating costs and 
revenue, ensuring equitable cost recovery across our diverse community.

In the past, ARIN has chosen not to automatically adjust the fee schedule 
annually, instead opting for larger, less frequent adjustments based on the 
changing landscape of ARIN?s operating costs. These costs include variations in 
staffing expenses, such as salaries and healthcare, as well as fluctuations in 
the cost of contracted services.

Given the ongoing nature of these expenses, and in pursuit of a sustainable 
fiscal strategy, the ARIN Board of Trustees is considering two distinct 
approaches for future fee adjustments:

Option A
Continue with the current practice of periodically reviewing the alignment 
between annual revenue and operating costs. Following community consultation, 
necessary adjustments would be made to the registration services fees to 
address any discrepancies and recover reserves used during periods of 
misalignment. This method has been effective but can lead to significant and 
unpredictable fee increases.

Option B
Introduce a structured approach to fee adjustments, allowing for an annual 
increase of no more than 5%, subject to approval by the Board of Trustees. This 
strategy aims to offer a predictable and manageable escalation in fees, 
aligning more closely with the budget planning processes of many organizations 
within our community.

The ARIN Board of Trustees is exploring the feasibility of adopting Option B, 
which would include a specific amendment to the Registration Services Plan Fee 
Schedule stating, ?The annual Registration Services Plan fee for each service 
category is subject to an annual increase (as approved by the ARIN Board of 
Trustees) of no greater than 5%.? We are seeking community input on this 
potential adjustment to the fee schedule.

Please view the proposed Registration Services Plan Fee Schedule (with 
italicized markup for proposed addition) at:

https://www.arin.net/resources/fees/fee_schedule/adjusting_fee_schedule_proposed/

This consultation will be open for 30 days. Following this period, a summary of 
the feedback received will be presented to the Board of Trustees for their 
consideration.

We encourage the community to share their perspectives and preferences 
regarding these options. Please send your comments to arin-consult@arin.net. 
You can subscribe to this mailing list at: 
http://lists.arin.net/mailman/listinfo/arin-consult.

The discussion on arin-consult@arin.net will conclude at 5:00 PM ET on Friday, 
3 May.

Regards,

John Curran
President and CEO
American Registry for Internet Numbers (ARIN)





------------------------------

Message: 2
Date: Wed, 3 Apr 2024 10:20:18 -0700
From: William Herrin <b...@herrin.us>
Cc: arin-consult@arin.net
Subject: Re: [ARIN-consult] Consultation on Approaches for Adjusting
        the ARIN Registration Services Plan Fee Schedule
Message-ID:
        <CAP-guGWWF+8qrxAQC=oya5yzudehjk-v6f1geb7n4ohu1kw...@mail.gmail.com>
Content-Type: text/plain; charset="UTF-8"

On Wed, Apr 3, 2024 at 9:40?AM ARIN <i...@arin.net> wrote:
> Introduce a structured approach to fee adjustments, allowing
> for an annual increase of no more than 5%, subject to approval
> by the Board of Trustees. This strategy aims to offer a predictable
> and manageable escalation in fees, aligning more closely with the
> budget planning processes of many organizations within our community.

That's great if inflation stays far enough below 5% to allow for the
cost of new services, but what happens when it doesn't? Break the
implicit promise of stability in the fees?

And what happens when you want to restructure the fees? Is the 5%
promise simply void since the new fees are discontinuous from the old?
Like what happened to the LRSA folks?

And philosophically, should ARIN be experiencing a 5% growth that
isn't tied to a comparable growth in its customer base? Isn't that
called bloat?

Regards,
Bill Herrin


-- 
William Herrin
b...@herrin.us
https://bill.herrin.us/


------------------------------

Message: 3
Date: Wed, 3 Apr 2024 17:53:45 +0000
From: John Curran <jcur...@arin.net>
To: BIll Herrin <b...@herrin.us>
Cc: "arin-consult@arin.net" <arin-consult@arin.net>
Subject: Re: [ARIN-consult] Consultation on Approaches for Adjusting
        the ARIN Registration Services Plan Fee Schedule
Message-ID: <70c238c9-d0fc-49d1-b1d8-51a901360...@arin.net>
Content-Type: text/plain; charset="utf-8"


> On Apr 3, 2024, at 1:20?PM, William Herrin <b...@herrin.us> wrote:
> 
> On Wed, Apr 3, 2024 at 9:40?AM ARIN <i...@arin.net> wrote:
>> Introduce a structured approach to fee adjustments, allowing
>> for an annual increase of no more than 5%, subject to approval
>> by the Board of Trustees. This strategy aims to offer a predictable
>> and manageable escalation in fees, aligning more closely with the
>> budget planning processes of many organizations within our community.

Hello Bill - 

You?ve got some great questions ? let's go through each: 

> That's great if inflation stays far enough below 5% to allow for the
> cost of new services, but what happens when it doesn't? Break the
> implicit promise of stability in the fees?

So it is not the ?cost of new services? that is the concern, it?s rather the 
routine 
increase in ARIN?s own operations costs that we have to deal with?  While we do 
make efforts to rebid significant suppliers (e.g., benefits, 
telecommunications, etc.) 
in order to manage costs, there are still times when we are unable to avoid 
seeing 
cost increases in the services that we contract.   In addition, we do provide 
competitive compensation to the staff, and these results in a 2 to 3% increase
in our salary pool each year. 

As for ?new services?, we generally can accommodate the various changes that 
are requested (whether features or policy changes) with the existing resources;
we balance new feature and maintenance development tasks as needed for this. 

> And what happens when you want to restructure the fees? Is the 5%
> promise simply void since the new fees are discontinuous from the old?
> Like what happened to the LRSA folks?

Having finally achieved a fee schedule that treats all parties equitably, I 
would
like to think we?re past the point of further restructuring of the fee 
schedule? 

However, to be clear, the question before the community is whether we come 
every 2 or 3 years with a proposal to make an adjustment to the existing fee 
schedule that might be quite significant (i.e. potentially more than 10%) or 
would the community prefer that the Board do a small adjustment annually
based on increase in costs ? an approach that is typical in some industries.

> And philosophically, should ARIN be experiencing a 5% growth that
> isn't tied to a comparable growth in its customer base? Isn't that
> called bloat?

As noted, our costs increase nominally each year based on underlying 
vendors and staff cost, and this does not directly correspond to either 
number of members or number resources in the registry.  In fact, we may
easily see a reduction in number of members given that the structure of the
fee schedule encourages consolidation of organizational accounts when 
such is possible (i.e., one can increase the number resources under an RSA 
by 4x before seeing the fee category increment and corresponding service fee 
increase by only 2x.) 

I hope this helps explain somewhat the situation, and the question being asked 
of the members?it is really a question of how the nominal changes in costs get 
accommodated; would the community prefer this to occur routinely as a matter 
of course, or would it prefer revisiting the fees every few years (and 
potentially 
considering a significantly larger increase at that time). 

Thanks!
/John

John Curran
President and CEO
American Registry for Internet Numbers







------------------------------

Message: 4
Date: Wed, 3 Apr 2024 13:48:30 -0500
From: David Farmer <far...@umn.edu>
To: arin-consult@arin.net
Subject: Re: [ARIN-consult] Consultation on Approaches for Adjusting
        the ARIN Registration Services Plan Fee Schedule
Message-ID:
        <can-dau3-d9-gkde2dkbcxlpr3aakhaysh0w83kj3o_92aml...@mail.gmail.com>
Content-Type: text/plain; charset="utf-8"

I encourage the board to adopt Option B. I also encourage the board to
announce the annual increases on a regular cadence and at least six months
before going into effect.

Thanks

On Wed, Apr 3, 2024 at 11:40?AM ARIN <i...@arin.net> wrote:

> The American Registry for Internet Numbers (ARIN) is currently evaluating
> potential methods to adjust our Registration Services Plan Fee Schedule and
> is inviting feedback from the community (
> https://www.arin.net/participate/community/acsp/consultations/2024/2024-2/).
> Our goal is to maintain a balanced alignment between operating costs and
> revenue, ensuring equitable cost recovery across our diverse community.
>
> In the past, ARIN has chosen not to automatically adjust the fee schedule
> annually, instead opting for larger, less frequent adjustments based on the
> changing landscape of ARIN?s operating costs. These costs include
> variations in staffing expenses, such as salaries and healthcare, as well
> as fluctuations in the cost of contracted services.
>
> Given the ongoing nature of these expenses, and in pursuit of a
> sustainable fiscal strategy, the ARIN Board of Trustees is considering two
> distinct approaches for future fee adjustments:
>
> Option A
> Continue with the current practice of periodically reviewing the alignment
> between annual revenue and operating costs. Following community
> consultation, necessary adjustments would be made to the registration
> services fees to address any discrepancies and recover reserves used during
> periods of misalignment. This method has been effective but can lead to
> significant and unpredictable fee increases.
>
> Option B
> Introduce a structured approach to fee adjustments, allowing for an annual
> increase of no more than 5%, subject to approval by the Board of Trustees.
> This strategy aims to offer a predictable and manageable escalation in
> fees, aligning more closely with the budget planning processes of many
> organizations within our community.
>
> The ARIN Board of Trustees is exploring the feasibility of adopting Option
> B, which would include a specific amendment to the Registration Services
> Plan Fee Schedule stating, ?The annual Registration Services Plan fee for
> each service category is subject to an annual increase (as approved by the
> ARIN Board of Trustees) of no greater than 5%.? We are seeking community
> input on this potential adjustment to the fee schedule.
>
> Please view the proposed Registration Services Plan Fee Schedule (with
> italicized markup for proposed addition) at:
>
>
> https://www.arin.net/resources/fees/fee_schedule/adjusting_fee_schedule_proposed/
>
> This consultation will be open for 30 days. Following this period, a
> summary of the feedback received will be presented to the Board of Trustees
> for their consideration.
>
> We encourage the community to share their perspectives and preferences
> regarding these options. Please send your comments to
> arin-consult@arin.net. You can subscribe to this mailing list at:
> http://lists.arin.net/mailman/listinfo/arin-consult.
>
> The discussion on arin-consult@arin.net will conclude at 5:00 PM ET on
> Friday, 3 May.
>
> Regards,
>
> John Curran
> President and CEO
> American Registry for Internet Numbers (ARIN)
>

-- 
===============================================
David Farmer               Email:far...@umn.edu
Networking & Telecommunication Services
Office of Information Technology
University of Minnesota
2218 University Ave SE        Phone: 612-626-0815
Minneapolis, MN 55414-3029   Cell: 612-812-9952
===============================================
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