TAPE/#

Speaker

Comments

TAPE 39, A

004

Chair Dallum

Calls the meeting to order at 1:30 p.m.  Announces the order of the agenda.   

011

Chair Dallum

Opens a work session on HB 3486 which requires the Department of State Police to make information about certain sex offenders available on their internet website.

HB 3486 – WORK SESSION

013

Dallas Weyand

Committee Administrator.  Explains the -2 amendments to HB 3486 (EXHIBIT A).  Details the information to be provided on the Oregon State Police (OSP) website.  Continues that these amendments become operative July 1, 2006, which will give OSP time to implement. 

052

Rep. Krummel

Advises that the -2 amendments were requested in response to issues raised by the defense lawyers.  Indicates he prefers the -1 amendments; however, he wants to the committee’s input.  Continues that the -2 amendments include the -1 amendments.

066

Rep. Krummel

MOTION:  Moves to ADOPT HB 3486-2 amendments dated 5/27/05.

VOTE:  4-1-0

AYE:  4 - Burley, Krummel, Witt, Dallum

NAY:  1 – Wirth

076

Chair Dallum

The motion CARRIES.

081

Rep. Krummel

MOTION:  Moves HB 3486 to the floor with a DO PASS AS AMENDED recommendation.

084

Rep. Wirth

Explains the reasons for her opposition to HB 3486 are too many unanswered questions.  Raises concern about “running scared.”  Wonders what happens to people who are misidentified.  

106

Rep. Krummel

Cites the groups in support of HB 3486.  Advises of support of private sector partners for this type of activity.  Refers to the cost breakdown received from OSP.  Distributes copies of newspaper articles from 2001 (EXHIBIT B) that show the OSP was ready to begin posting information until a lawsuit was filed by a group of sex offenders citing violation of rights and invasion of privacy.

132

Rep. Krummel

Points out that people who treat sex offenders will tell you that sex offenders are never cured.  Explains why he believes the affect HB 3486 will have on juveniles is minimal. 

148

Rep. Burley

States he received an e-mail from a constituent employed by Microsoft Corporation inquiring about making a personal donation to assist in creating the internet-based notification program.  Goes on that Microsoft will match that donation and believes the site can be developed for less than $5,000.

165

VOTE:  4-1-0

AYE:  4 - Burley, Krummel, Witt, Dallum

NAY:  1 – Wirth

169

Chair Dallum

The motion CARRIES.

REP. KRUMMEL will lead discussion on the floor.

172

Chair Dallum

Closes the work session on HB 3486 and opens an informational meeting on Computing and Networking Infrastructure Consolidation (CNIC) Project Plan. 

COMPUTING AND NETWORKING INFRASTRUCTURE CONSOLIDATION (CNIC) PROJECT PLAN – INFORMATIONAL MEETING

174

Mike Freese

Deputy Chief Information Officer, Department of Administrative Services (DAS).  States that the top-down business case was to determine financial sense and range of savings and that process has its own timeline, which does not line up with the state budget timeline.  Explains the “placeholder budget” in DAS is not a request for new money. 

202

Freese

Advises that 2005-2007 is a transition period and there is no net change for this function.

224

Rep. Witt

Refers to comments that fewer people will be required to do the same amount of work.  Asks about the plans for the “surplus” people.

229

Freese

Responds that they have negotiated with the employee union and people will compete for the data center jobs.  Continues that individuals not hired for the data center will be released back to their agencies and will likely go through the normal layoff process. 

247

Rep. Witt

Asks how many are involved.

249

Freese

Answers that the current business case identifies 156 positions to be transferred to the data center.  Estimates about 95 full time equivalencies (fte) will be needed to operate the center initially, but should be less over time as there will be more consolidation.

260

Rep. Burley

Seeks clarification that there hasn’t been opportunity to obtain costs from other agencies.

266

Freese

Explains the components to provide all the services needed.

273

Rep. Burley

Asks if the unavailable figures are from the participating agencies.

276

Freese

Answers that they are coming up with those figures now.

278

Rep. Burley

Refers to the $4.91 million annual recurring savings in the business case.  Appears those figures are pretty well “nailed down” in order to predict the savings.

286

Freese

Explains the business case is the last of the top-down analysis and that the budget is now being prepared from actual expenditures from the agencies.  

299

Rep. Wirth

Refers to the estimated 156 current employees who will be affected, of which about 95 will fill positions in the data center.  Asks what percentage of the overall staffing is expected to be done through internal transfer.

318

Freese

Answers most.  Explains that it is critical for the success of the data center to use people with the knowledge to fill the positions.  

343

Rep. Wirth

Inquires of the 95 positions, what percentage will be current employees.

346

Freese

Estimates in excess of 90 percent.

350

Chair Dallum

Asks if the money for the building came from the Emergency Board.

355

Freese

Answers the approval came from the Emergency Board, but the funding came from certificates of participation. 

372

Chair Dallum

Inquires about the initial cost of the building.

373

Freese

Responds it was estimated at $20 million.

377

Chair Dallum

Asks if there was $8 million “security money” approved by the interim committee.

379

Freese

Replies yes.

381

Chair Dallum

Inquires about the $88 million placeholder number for the budget committee.

384

Freese

Answers that was just a placeholder and was not approved.  Continues that as they go through the budget process, it will become the number to operate the center.

386

Chair Dallum

Asks what was submitted.

388

Weyand

Responds that the $76.6 million in the DAS budget is no longer there.  Continues that there were 13 specific placeholder items.

TAPE 40, A

013

Chair Dallum

Seeks clarification on how the placeholders work.

019

Weyand

Explains that money currently spent is being budgeted into the agencies.  Continues that the CNIC project will be put in a separate bill so that at the same time funding is provided for the finish-up costs and the operating costs of the data center, adjustments will be made to the other 12 agency budgets to reduce position authority and change expenditure categories to reflect the shift in costs from internally provided services to paying for the data center.  Provides examples. 

060

Chair Dallum

Responds that this committee was charged to find a more economical way of doing business and providing security.  Finds it difficult to understand how they will know how much they actually saved.  Wants that information before the end of session.  Seems that a detailed estimate of savings should be available now. 

080

Freese

Agrees that is what is intended to be produced through the budget process.  Reiterates that the business case only shows the savings opportunities.      

089

Chair Dallum

Asks if that information will be available before adjournment.

092

Freese

Answers yes.

094

Rep. Kropf

Indicates that he doesn’t see the information he requested which was a complete accounting of what is being spent on the project.  Is concerned that they can’t detail the money in the budget request.

109

Rep. Wirth

Comments on the estimated 70 percent cost savings through a reduction in fte.  Appears that highly skilled people are being replaced with less skilled and less costly positions.  Asks what positions are being lost.

131

Freese

Responds there should be bigger and better jobs in the data center with consolidation of functions.  Continues that 95 is the short-term, “going-in“ number, which over time should reduce even more with improved efficiency.

154

Rep. Wirth

Comments that she didn’t get a sense of special priority for the existing employees in selection for the new positions. 

159

Freese

Explains that recruiting will be from the 12 participating agencies and they will have the first-round advantage. 

171

Rep. Wirth

Asks if that addresses the Governor’s commitment that the data center jobs would be prioritized for those who are being displaced.

173

Freese

Replies yes, and there are also compelling business reasons to do that as it is important for the success of the data center to use people who understand the agencies’ requirements.

182

Rep. Kropf

Comments about information he received that the contractor for this project has never participated in a consolidation of this nature before.

188

Freese

Answers, that is not correct.  Explains the process used to select a qualified vendor. 

208

Chair Dallum

Asks when there will be a top-down business plan with projected savings and a bottom-up budget.

211

Freese

Believes they are really close on the budget now. 

216

Chair Dallum

Shares Rep. Kropf’s concerns and may request approval for another meeting for this committee to meet its obligation and charge.  Requests a date certain for the availability of the budget; requests an accounting to date of $112 million. 

241

Rep. Krummel

Inquires if there is a difference between what DAS will charge and what agencies would have spent without CNIC.

252

Freese

Replies that the cost should be less or the same, but over time should be substantially less than currently. 

269

Rep. Krummel

Asks if there is a quantifiable number that agencies have been spending compared to what is in the budget.

279

Freese

Answers that agencies are spending about $100 million now. 

288

Rep. Kropf

Inquires what assurances can be given this consolidation won’t turn into the next Department of Motor Vehicles (DMV) fiasco.

292

Freese

Responds that the DMV experience was a complex business change and application implementation effort, and this is simpler because it has been done numerous times in the private sector.  Continues that the contractor knows how to do this, and they have independent third-party quality assurance.

330

Rep. Kropf

Understands that a request for proposal (rfp) was issued for an outside consultant to look at the project, which made recommendations on building the business case.  Requests a copy of the report from the consultant.  Asks about another rfp.

348

Freese

Answers that they asked the quality assurance vendor to provide an initial assessment and indicate what is needed.  Reiterates that the top-down business case is over and they are now trying to produce a budget from the ground up, which should validate the business case.

368

Rep. Kropf

Has difficulty understanding why this body hasn’t had the detailed dollar figures prior to this and states he must have actual dollar figures.  Appears there was a lot of staff time spent on this project but not reflected in the costs.  Requests an accounting of all state agencies and personnel involved. 

407

Rep. Burley

Refers to information provided to committee members.  (Note:  Copies were not submitted for the record.)  Asks about the annual recurring savings for server and storage which was originally $4.9 million.  Seems to be a potential of becoming a performance measure.    

TAPE 39, B

015

Rep. Burley

Inquires about how cyber security would be measured to demonstrate to the public that their tax dollars are being spent wisely.   

025

Rep. Burley

Indicates that many deliverables are after the end of June.  Asks about the intent of the quality management plan.

047

Freese

Responds that most of the information provided relates to the project itself.  Advises they will need to measure against the budget and the budget will show what will be expended.

060

Rep. Burley

Seeks clarification that what he wants to see will be dealt with in the budget.

064

Freese

Answers correct.

065

Rep. Burley

Asks if there will be a performance measure demonstrating the improved cyber security.

068

Freese

Replies no, that is not part of the state data center.

074

Weyand

Points out that DAS had been directed to develop performance measures for cyber security, and there will be continued reporting and feedback during the interim.

095

Rep. Kropf

Inquires about the backup center shown in the original proposal.

104

Freese

Explains the function of a backup center.  Advises that the capabilities of the data center have been increased and a Tier 3 certification received, which means that all critical systems are engineered to be redundant.  Continues that they will have a good disaster recovery plan which doesn’t currently exist.   

132

Rep. Kropf

Has a problem that a decision was made based on a 2004 report.

142

Freese

Replies that they were asked to present two options and that report shows both and the cost analysis.  Continues that they recommended one data center and that is what the governing board adopted. 

148

Rep. Wirth

Asks if two centers would be preferable.

157

Freese

Replies that two are better to have; however, there needs to be a balance between cost effectiveness and risk mitigation. 

171

Rep. Wirth

Inquires if the one-center scenario was based on need and not necessarily to build a case for potential savings.

174

Freese

Responds that the primary purpose of the project was to save money while maintaining or improving service levels, so cost did become the determining factor.  Continues that when comparing two centers to one, there is no gain in security over having a disaster recovery plan. 

183

Rep. Wirth

Comments then there is a negligible increase in risk.

184

Freese

Replies correct.

186

Rep. Krummel

Asks if the Tier 3 certification is for the design and if there will be a recertification when built.

191

Freese

Answers correct.  Advises that the certification was based on what has been done to date and the design of future construction, for which plans have been approved.    

203

Rep. Krummel

Asks who approved.

204

Freese

Replies, an independent third-party engineering firm.

207

Rep. Kropf

Has a number of questions about the business case but will present in writing.  Asks if the facility is on budget.

213

Freese

Responds that it is under budget.

215

Rep. Kropf

Requests that documentation.

218

Chair Dallum

Summarizes status of issue.  Requests a bottom-up budget with anticipated savings and a cost accounting of expenses.  Offers to share that information with the committee members if there are no further committee meetings.   

254

Rep. Krummel

Indicates that information will be helpful to support the project.

265

Chair Dallum

Adjourns the informational meeting on Computing and Networking Infrastructure Consolidation (CNIC) Project Plan at 2:45 p.m.