Yes, the starter size referenced is the whole starter prior to decanting. For what it is worth, you might want to plan on harvesting the slurry from your initial batch (use about half) for your subsequent batch. If you time your brewing, you can rotate lagers pretty well. (I have 2 going at any one time and simply rack the first one for the third one, then the second one for the fourth and so on.) I primary in 15 gallon plastic barrels (10 gallon batches) and then lager in kegs, so it is just a matter of making sure kegs are available.
Cheers and welcome to the cold side!