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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 =============================================== -------------- next part -------------- An HTML attachment was scrubbed... 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