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HomeMy WebLinkAbout931069.tiff RESOLUTION RE: LEGISLATIVE ACTION TO APPROVE INFORMATION SERVICES PLAN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Director of Finance and Administration has conducted a study regarding the restructuring of the delivery of computer services in Weld County, and WHEREAS, proposals were solicited from vendors regarding the various options to best deliver computer services in Weld County, and WHEREAS, based upon the study, the following strategic objectives have been recommended: 1. Reduce the cost of information systems development and maintenance 2. Eliminate interdependency of users' costs to each other, so cost decisions can be made independently 3. Create the flexibility to migrate to new systems as the County's service environment changes 4. Create an information technology environment that has: A. open system architecture B. relational data base management system C. functionally enriched software applications D. query management facility E. improved user graphic presentation F. more file transfer capabilities (upload/download) G. automatic scheduling flexibility by users H. large data volume processing and printing I. client/server environment J. access to wider assortment of software packages 5. Support network management 6. Empowerment of the users both functionally and in governance and management of their information processing needs 7. Develop imaging strategy 8. Develop GIS strategy 9. Disaster Recovery Plan 931069 L'u : -5 -7-, /7 RE: APPROVE INFORMATION SERVICES PLAN PAGE 2 WHEREAS, based upon the proposals received, the recommended course of action is to contract with SCT Corporation to operate Weld County's information services function for a specified contract period, since the approach is the most cost effective both short-term and long-term and it transforms Weld County's information service environment to the technology desired in the future, and WHEREAS, the Board of County Commissioners agree that the above recommendations (Attachment A) will save the taxpayers of Weld County substantial funds of approximately $700, 000 per year and enhance services, and WHEREAS, all staff members in the Weld County Information Services Department have been notified of the Board of County Commissioners consideration of the above recommendations, and WHEREAS, all staff members of the Information Services Department have been advised that, under the contract with SCT Corporation, they would cease to be employees of Weld County and offered employment with SCT Corporation. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board hereby takes legislative action to approve the recommendations to adopt the recommended strategic approach and contract for information services from SCT Corporation. BE IT FURTHER RESOLVED by the Board that the following actions are hereby directed and approved: 1. A formal contract be drafted to acquire computer services from SCT Corporation for County Commissioners' approval on October 25, 1993. 2. County staff is directed to proceed with the necessary administrative actions to transition the information services function to SCT Corporation's contract management. 3. All positions of Weld County employees in the Information Services Department will be eliminated November 8, 1993. 931069 RE: APPROVE INFORMATION SERVICES PLAN PAGE 3 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 18th day of October, A.D. , 1993. BOARD OF COUNTY COMMISSIONERS ATTEST: ii) / // WEL COUNTY, COLORADO / /b'✓t i' Weld Cou y Clerk to the Board Constance L. H bert, Chairman BY: �/ De 4.0_11/71-1/7._ttoteL G /,L��ster,' Deputy Clerto the Boa` W. If We ster, PTem APPROVED AS TO FORM: C., re . A /17-g George Bax er ounty Attorn y Da K. Hall i LZ Barbara J. Kirkmeye 931069 ATTACHMENT "A" WELD COUNTY INFORMATION SERVICES Prior to 1976, Weld County's information services were provided via a service bureau out of Greeley National Bank (Bank One) . From 1976 - 1982, Weld County operated a joint computer center serving both Weld and Boulder Counties from the current Greeley location. In 1982, after a two-year planning process, Boulder County began operating their own computer center in Boulder. Weld County's information services agency has always been an IBM mainframe center operated centrally. Currently, the center serves 38 users with 113 application systems supported with 11 local area networks. The mainframe is an IBM 9121 Model 260 acquired in 1991. In recent years there has been a steady erosion of the user base. The state began, in the mid-1980's, to implement state systems in the area of human resources, social services, and motor vehicle. In 1993, the decision was made to pursue a joint effort with the City of Greeley to have an integrated criminal justice information system, that included computer-aided dispatch, criminal records management, jail management, and a prosecution system. Much of the criminal justice system will be completed prior to the end of 1993, with final installation of the prosecution system in early 1994. The criminal justice system will operate independent of the Weld County Information Services Agency. This equates to a loss of nearly one-third of the user base. With the loss of the above one-third of the user base a cost dilemma is created. Either the costs of operating the center need to be reduced by one- third or all remaining users ' costs go up accordingly. Already many users are concerned about their computer services costs, so the later option is not a palatable one. The nearly $2.0 million dollar budget for information services, as currently operated, has not afforded Weld County the opportunity to acquire the resources to move in the direction of some of the more cost-effective technologies or technologies demanded by the users. In addition, there is interdependence of costs among users, i.e. , if one user leaves other users' costs go up accordingly. In looking ahead 3 tc 5 years, Weld County' s information services function needs to position itself to accomplish the following: • Reduce the cost of information systems development and maintenance • Eliminate interdependency of users' costs to each other, so cost decisions can be made independently • Create the flexibility to migrate to new systems as the County's service environment changes • Create an information technology environment that has: 1 9: 1.069 A. open system architecture B. relational data base management system C. functionally enriched software applications D. query management facility E. improved user graphic presentation F. more file transfer capabilities (upload/download) G. automatic scheduling flexibility by users H. large data volume processing and printing I. client/server environment J. access to wider assortment of software packages • Support network management • Empowerment of the user both functionally and in governance and management of their information processing needs • Develop imaging strategy • Develop GIS strategy • Disaster Recovery Plan The new environment should improve access to information for decision- making, increase the quality and quantity of services, streamline operations, and provide the opportunity for cost savings. The open system architecture offers the technology to connect different types of equipment and vendors. The linking of all components in one system improves access and sharing of data and communication resources. Open systems architecture allows the county to retain some equipment and software as changes are made. Open systems architecture and client/server capabilities will better allow the distribution of computer equipment to user areas. The relational data bases allow much more effective use of information by the users and the data is more accessible, especially if coupled with a query management system. ' The transformation from the current environment to the desired environment in the next two to five years will require significant initial capital investment in hardware, software, network, and staff time. The transformation cannot occur under the current environment without a substantial infusion of funds, which are not available in the Weld County budget. The solution then calls for a way to reduce current costs, so all or a portion of the saved resources can be reinvested in the future technologies. This eliminates the status quo operation as a viable option. The solution calls for a radical departure from business as usual. The transformation must be viewed over a multi-year time frame of 5 to 7 years. Financing of the transformation must come from current costs of operation being reduced by implementing newer, most cost-effective information systems, and phasing-out of the more costly mainframe system, thus reducing operating costs to pay for the new technologies by reinvesting all or some of the savings. The approach calls for a two-phased solution: (1) reduce current cost, and (2) development of a strategic plan to create the new information technology environment described earlier. 2 The first phase of reducing costs focuses on elimination of the mainframe and its associated higher costs of maintenance and software leases. These are the options: 1. Convert in-house from the Model 260 to a Model 190 and reinvest savings to move to new environment. 2. Outsource the mainframe processing and reinvest savings to move to new environment. 3. Do a major conversion of all systems to an IBM AS400 or RISC 6000 environment from the IBM mainframe systems. 4. Privatization to on-site services to accomplish the transformation to the new technological environment. The pros and cons of the above options are as follows: 1. Convert from Model 260 to a Model 190. Savings from this approach is minimal ($130,000) , thus not providing adequate resources to pay for the transformation to the new technologies. Parallel systems would have to be operated for some time. Current staff would have to be retrained and most likely outside resources brought in to make some of the technological transfers. Not recommended. This is the least favorable option and could not be done within existing resource allocated to information services. 2. Outsource Mainframe. This option saves the County $347,518 per year over a five year average to be reinvested in the transformation. Without the reinvestment, this option gets you no closer to the new desired environment than you currently are. Transformation issues raised in Option One remain the same under this option. Only advantage is financial to free up resources in existing expenditure base to make the transformation. 3. Convert to an AS400/RISC 6000. This massive conversion allows you to convert off the costly mainframe in 8 to 12 months to achieve savings. It does convert all applications as is to the new AS400 environment. Savings of nearly $500, 000 per year on the average over a five year period is achieved. Then some of the savings must be reinvested to get much of the new environment. Contract for outside expertise would be 3 necessary to assist in the transformation. Up front investment of $1.0 to $1.8 million is required, but new technology is acquired the fastest. 4. Privatization to On-site Services. Under a privatization agreement the county gets a long-term, fixed price contract for the planning, implementation, operation, and management of the information services operations. The corporate-based expertise can be used to facilitate the transition to the new systems and technological environment. A disadvantage is some loss of management control in the event the county wishes to operate the function at the end of the contract. Based upon the attached proposals, the recommended course of action is to contract with SCT Corporation to operate Weld County's information services function for a ten year contract period. The approach is the most cost effective both short-term and long-term and transforms Weld County's information service environment to the technology desired in the future. The option gives all the characteristics desired in our technical information services environment described earlier at an affordable cost. SCT Corporation can take advantage of a number of economies to reduce our costs by nearly $700, 000/year, but still give us the technology we will require. The company's expertise should make the transformation of our information services function less costly and less risky. The up-front capital requirement to implement the technology is greatly reduced via an amortization of savings over the life of the contract. SCT Corporation has experience in managing and operating county computer facilities and expertise and experience in the functional software applications, and future technology Weld County will require in the next ten years. The approach offered should improve service delivery to the public at a reduced cost. Users governance and empowerment is improved with this approach. Based upon research with other jurisdictions using SCT, satisfaction of users is high and the contractual phase back plan satisfies the concern of loss of management control. Therefore, the SCT Corporation proposal is recommended without reservation. A target date of October 25, 1993 for contract approval is recommended. 4 921969 STRATEGIC OBJECTIVES • Reduce the cost of information systems development and maintenance • Eliminate interdependency of users ' costs to each other, so cost decisions can be made independently • Create the flexibility to migrate to new systems as the County' s service environment changes • Create an information technology environment that has : A. open system architecture B. relational data base management system C . functionally enriched software applications D. query management facility E . improved user graphic presentation F. more file transfer capabilities (upload/download) G. automatic scheduling flexibility by users H. large data volume processing and printing I . client/server environment J. access to wider assortment of software packages • Support network management • Empowerment of the user both functionally and in governance and management of their information processing needs • Develop imaging strategy • Develop GIS strategy • Disaster Recovery Plan 971 061 OPTIONS 1 . Convert in-house from the Model 260 to a Model 190 and reinvest savings to move to new environment. 2 . Outsource the mainframe processing and reinvest savings to move to new environment. 3 . Do a major conversion of all systems to an IBM AS400 or RISC 6000 environment- from the IBM mainframe systems . 4 . 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