MINUTES OF THE
JOINT Subcommittee on
General Government
of the
Senate Committee on Finance
AND THE
Assembly Committee on Ways and Means
Seventy-second Session
April 29, 2003
The Joint Subcommittee on General Government of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman Sandra J. Tiffany at 4:55 p.m. on Tuesday, April 29, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
Senate COMMITTEE MEMBERS PRESENT:
Senator Sandra J. Tiffany, Chairman
Senator Dean A. Rhoads
Senator Bob Coffin
Assembly COMMITTEE MEMBERS PRESENT:
Mrs. Vonne Stout Chowning, Chairman
Mr. Bob Beers
Mr. Joshua B. Griffin
Ms. Kathyrn A. McClain
Mr. David R. Parks
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Mark W. Stevens, Assembly Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Jim Rodriguez, Program Analyst
Denise Davis, Committee Secretary
OTHERS PRESENT:
Mark Blomstrom, Deputy Director, Communication and Computing Division, Department of Information Technology
Terry Savage, Director, Chief Information Officer, Department of Information Technology
David McTeer, Information Systems Manager II, Budget Division, Department of Administration
John Stewart, Data Processing Manager II, Technical Operations, Department of Information Technology
Kathy Ryan, Deputy Chief, Planning and Programming Division, Department of Information Technology
Gail J. Anderson, Administrator, Real Estate Division, Department of Business and Industry
Cynthia Jones, Budget Analyst IV, Budget Division, Department of Administration
DEPARTMENT OF INFORMATION TECHNOLOGY
DoIT Director’s Office - Budget Page DOIT-1 (Volume 1)
Budget Account 721-1373
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Closing List #6,” pages 1 through 7 (Exhibit C. Original is on file in the Research Library.). As discussed in previous hearings, the Executive Budget recommends three new Department Of Information Technology (DoIT) cost assessments to support a chief information officer (CIO), common enterprise access, and the Information Technology (IT) Security Unit.
The department submitted Assembly Bill (A.B.) 88, which statutorily establishes and defines the role of the CIO, but withdrew the bill after re‑evaluation; there will be no statutory definition for the CIO position.
ASSEMBLY BILL 88: Revises provisions relating to Department of Information Technology. (BDR 19-535)
Without a statutory or State administrative definition concerning the CIO’s scope of authority and responsibilities, the subcommittee needs to determine whether the creation of a new cost pool to assess agencies for this function is justified.
The Executive Budget recommends the creation of a common enterprise access assessment; staff concurs with the philosophy behind the assessment. It is an appropriate assessment as described in the documentation; however, staff notes considerable discussion has occurred regarding the content of the assessment. Staff supports the reallocation of costs for the State phone operators and for maintenance of the State’s information portal. The contentious issue is the reallocation of the Web designers to this cost pool. The department reasons the Web designers should be allocated through this mechanism because they support the State’s main Web page; the subcommittee points out all three designers are not needed to support the main Web page.
E-300 Maximize Internet & Technology – Page DOIT-3
The IT Security Unit assessment is the only assessment of the three proposed that represents a “new” cost to the department. This recommendation has four components: the transfer of the security officer into this budget from the DoIT Planning and Research (P&R) Unit budget; four new IT security positions; a $200,000 appropriation for a risk assessment study; and establishment of the assessment. Staff suggests the subcommittee consider two options for enhancement unit 300 (E-300). The first option is to approve the assessment with the components proposed in the Executive Budget. The second option is to modify the positions and approve the assessment.
E-275 Working Environment & Wage – Page DOIT-3
Decision unit E-275 concerns the continuation of the contractor to review DoIT’s annual cost-allocation and quarterly reports. Staff supports this effort in a limited role. Previous funding allocations were made for developing the rate model, with the understanding that DoIT would develop the skills, knowledge, and experience to maintain the rate model. Staff agrees the department does not currently have that expertise; staff recommends limited funding to have the contractor continue the oversight and review functions associated with the rate model.
Decision unit E-275 also addresses additional travel expenses for the CIO function and security function. The subcommittee may wish to adjust this request to be consistent with its decisions regarding the CIO assessment and the IT Security Unit assessment.
E-276 Working Environment & Wage – Page DOIT-3
The Executive Budget recommends funding to maintain the software executive position. The position was originally approved to support and manage the Nevada operations multi-automated data systems (NOMADS) program; the 71st Session reclassified and approved the position to serve as a dedicated project manager for Department of Human Resources IT projects. The Department of Human Resources indicates it no longer requires that level of project management for the coming biennium and does not want to continue 100 percent support of the position. As a result, DoIT redefined the responsibilities and scope of duties for the position, and the position is proposed to be moved to the DoIT Application Design and Development (AD&D) Unit budget.
E-905 Move From BA1370 to BA1373 – Page DOIT-5
Decision unit E-905 transfers two positions from the DoIT P&R Unit budget to the DoIT Director’s Office budget. One information system specialist (ISS) IV position will be assigned to support DoIT’s proposed IT Security Unit; staff supports the transfer. The department also proposes transferring the chief of planning position to the DoIT Director’s Office as part of the executive staff. Staff has examined the cost-allocations and documentation for this recommendation and does not concur with the recommendation to transfer this position; the proposal, as presented, will create inconsistencies in the department’s cost‑allocations.
E-605 Budget Reductions – Page DOIT-4
Decision unit E-605 recommends a 3 percent reduction in funding as mandated by the Governor.
E-710 Replacement Equipment – Page DOIT-4
Decision unit E-710 recommends funding for replacement equipment. Staff has made technical adjustments based on revised quantities indicated in the department’s inventory list.
E-805 Major Reclassifications – Page DOIT-5
Decision unit E-805 recommends the reclassification of a personnel technician I to a personnel technician II, and a computer system technician III to a management analyst I. Staff has reviewed the documentation provided in support of the reclassifications; based on the information provided, the reclassifications appear reasonable and appropriate.
E-911 Move From BA1365 to BA1373 – Page DOIT-5
Decision unit E-911 recommends the transfer of a computer system technician III position from the DoIT AD&D Unit to the DoIT Director’s Office.
The table on page 6 shows the department’s reserves as recommended by the Executive Budget and as calculated by staff. This issue has been discussed at length in the subcommittee; the subcommittee indicated it would support a 60‑day reserve based on operating expenses. Staff notes these amounts include the anticipated federal payback but not the anticipated General Fund payback. The current estimate of the General Fund payback is between $1.3 million and $2 million.
The last item to consider is $125,000 for a system-wide study of DoIT which was presented to the subcommittee as a comprehensive study regarding the different components of DoIT and to determine the most efficient allocation of resources. This funding for the study is included in the Department of Administration’s Budget and Planning budget account.
Senator Tiffany:
I recommend we do not approve the CIO assessment. I recommend we decrease the common enterprise access assessment to include the cost of one Web designer and approve the remainder of the assessment as proposed. In regard to the IT Security Unit, I recommend the transfer of the one position but recommend only two new positions. I recommend we do not approve $200,000 for the study in E-300, and I suggest we go back and do a cost assessment on the IT security. Assemblyman Beers had a good idea regarding the cost assessment.
Assemblyman Beers:
I think the issue was the methodology we would use to allocate the cost. The current proposal is to allocate the pool on a “per FTE” (full-time equivalent) basis; my thought is it might be more equitable to allocate on a “per workstation” basis. Some agencies, such as the Department of Corrections, have considerably less than one workstation per employee; other agencies have almost one workstation per employee. During discussions, we realized there were some problems defining “workstation”; to avoid these problems, the suggestion was made to use machine‑addressable code (MAC) addresses. We hoped DoIT would have information available regarding the number of MAC addresses in each department. Before we include this type of allocation in the motion, we need to ask whether DoIT has the capability to rapidly determine the number of workstations.
Mark Blomstrom, Deputy Director, Communication and Computing Division, Department of Information Technology:
Generally, we have the ability to get the information Assemblyman Beers discussed, but we cannot get through firewalls. Within the Intranet, we can identify many of the Internet protocol addresses, but when there are internal firewalls, we cannot go beyond them. We will have to rely on information from the agencies. Otherwise, I agree with this proposal.
Another methodology is available. We are collecting detailed information on the amount of traffic passed; we are moving toward a billing methodology for data transmission based on that information. I suggest the amount of traffic passed is proportional to the number of workstations and the amount of IT work being done.
Assemblyman Beers:
When a department runs traffic only on its side of the firewall, its database is on its side of the firewall, and DoIT has no information; will any of the traffic be reported on DoIT’s system?
Mr. Blomstrom:
No; if an agency is running traffic internally on a local area network inside a firewall, DoIT will not have access to that information. During the current biennium, we have had problems collecting information on local area networks for Ethernet‑type charges, or in other words, the reporting of addresses inside agencies behind the firewall.
Assemblyman Beers:
I would think those problems cannot compare to the problems those agencies are having maintaining their Ethernet. For the purposes of getting this finished, it sounds like the “per workstation” proposal will work and we will rely on reports from the agencies that DoIT cannot “see.” We should analyze and update the information each biennium.
Mr. Rodriguez:
If more time was available, that might be a feasible solution. At this time, we would have to go out to agencies and do the count; I do not believe it can be accomplished in the time we have available. Staff recommends continuing allocations based on the FTE numbers and evaluating an alternative allocation methodology during the interim. We can make judgments regarding allocations for agencies such as the Department of Corrections, but I do not think there is time to develop a new methodology statewide.
Senator Tiffany:
The recommendation for the assessment is to use FTEs with discrimination or discretion. I recommend approving the contract for the rate model and eliminating the continuation of the software executive position. As for the position transfers, I recommend keeping the chief of planning in the DoIT P&R Unit and transferring the ISS IV position to DoIT’s proposed IT Security Unit. Since we are making so many changes to the CIO position, I recommend $8500 for out-of-state travel funds in the base budget. I recommend approval of E-605, E-805, and E-911, and approval of E-710 with technical adjustments. What do we want to do in regard to the reserve?
Mr. Rodriguez:
The reserve amounts will change depending on decisions made by the subcommittee and by final budget closings. The numbers in the table are for reference purposes.
Senator Tiffany:
What is your recommendation for a motion regarding the reserve?
Mr. Rodriguez:
Staff recommends the maximum reserve be set at 60-days operating level, based on operating expenses; that would also meet federal requirements of 60 days.
Senator Tiffany:
Do we have to approve the $125,000 study?
Mark W. Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The study is in the Budget Division’s budget; at some point, you will need to discuss it, but you do not have to decide on it now.
Assemblywoman Chowning:
In regard to out-of-state travel, the entire amount requested does not seem to be justified, but half that amount for out-of-state travel seems to be sufficient. Is the computer system technician III position in E-805 still necessary? I thought that position assisted the CIO; if the CIO position is eliminated, that position will not be needed.
Mr. Rodriguez:
The reclassification in E-805 is an upgrade for a position that currently functions in support of the DoIT Director’s Office Contract Administration Unit. The position you are thinking of is a computer operations supervisor from the DoIT AD&D Unit. There is an explanation of that transfer on page 14. The decision is up to the subcommittee; if you are not going to approve the CIO assessment and function, you can leave the position where it is.
Senator Tiffany:
Since we are not going to approve the CIO assessment, our choices are to eliminate the positions or leave them where they are.
Assemblywoman McClain:
We are not eliminating positions.
Mr. Rodriguez:
That is correct; the positions are not being eliminated. The transfers are being eliminated. This is a cost neutral decision.
Assemblywoman McClain:
Are the positions needed in the DoIT Director’s Office without the CIO function?
Mr. Rodriguez:
The information that staff received describes the position transfer as in support of the CIO function.
Terry Savage, Director, Chief Information Officer, Department of Information Technology:
As staff pointed out, this decision is cost neutral. Some position duties are related to the CIO and some are related to the director and the department. It is not an issue for us where the funding for the positions comes from; it seems more appropriate to us to transfer the positions to the DoIT Director’s Office.
Senator Tiffany:
Do you want to transfer the computer system technician to the DoIT Director’s Office?
Assemblywoman McClain:
Yes.
Assemblywoman Chowning:
What are we going to do in regard to the business process study?
Senator Tiffany:
We will discuss it during the Department of Administration’s budget.
ASSEMBLYMAN BEERS MOVED TO CLOSE BUDGET ACCOUNT 721‑1373, NOT APPROVE THE CHIEF INFORMATION OFFICER ASSESSMENT, APPROVE THE COMMON ENTERPRISE ACCESS ASSESSMENT FOR TWO STATE PHONE OPERATOR POSITIONS AND ONE WEB DESIGNER POSITION, CREATE THE INFORMATION TECHNOLOGY SECURITY UNIT AND ASSESSMENT, TRANSFER ONE INFORMATION SPECIALIST IV POSITION FROM THE DOIT APPLICATION DESIGN AND DEVELOPMENT UNIT TO THE SECURITY UNIT, APPROVE TWO NEW INFORMATION SPECIALIST IV POSITIONS, NOT APPROVE THE $200,000 RISK ASSESSMENT STUDY, CALCULATE COST ASSESSMENTS BASED ON FTE AND STAFF DISCRETION, APPROVE $7500 A YEAR FOR THE RATE MODEL CONTRACTOR, NOT APPROVE THE SOFTWARE EXECUTIVE POSITION, NOT TRANSFER THE CHIEF OF PLANNING OUT OF THE DOIT PLANNING AND RESEARCH UNIT, TRANSFER ONE INFORMATION SPECIALIST IV POSITION FROM THE DOIT PLANNING AND RESEARCH UNIT TO THE INFORMATION TECHNOLOGY SECURITY UNIT, APPROVE A TOTAL OF $8500 FOR THE BIENNIUM FOR OUT-OF-STATE TRAVEL, APPROVE E-605, E‑805, AND E-911 AS RECOMMENDED BY THE GOVERNOR, APPROVE E-710 AS ADJUSTED BY STAFF, AND SET THE MAXIMUM RESERVE AT 60-DAYS OPERATING LEVEL BASED ON OPERATING EXPENSES.
ASSEMBLYWOMAN MCCLAIN SECONDED THE MOTION.
Senator Tiffany:
Staff informs me we have to make a decision on the business process study. We can vote on the motion, but we need to discuss the study before leaving this budget.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Mr. Stevens:
When the Department of Administration’s budget was closed yesterday, the business process study came up. It was decided to discuss the study when the DoIT budget was closed. The decision regarding the study will be reflected in the Budget Division’s budget.
David McTeer, Information Systems Manager II, Budget Division, Department of Administration:
I will be administering the business process study. We have attempted to break down various components of IT service delivery in the State and look at them as individual units; some units are labor-intensive and some are infrastructure‑intensive. We have then tried to combine those results to determine the best way to deliver IT to the State. We have to consider costs and security. The Department of Administration feels there is no other choice but to go to outside consultants, but not to contract for one large study that is never used. The department intends to conduct a series of “mini studies”; each study will have a recommendation. We will use the recommendations for the next budget cycle.
SENATOR RHOADS MOVED TO APPROVE $125,000 FOR THE BUSINESS PROCESS STUDY.
ASSEMBLYWOMAN MCCLAIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Tiffany:
I understand we do not need a motion or a vote on the business process study because it is not included in the DoIT budget. At least you know where we stand.
DoIT Planning & Research Unit - Budget Page DOIT-7 (Volume 1)
Budget Account 721-1370
Mr. Rodriguez:
My remarks are contained in “Closing List #6,” pages 8 through 10. Staff has identified no major remaining closing issues in this budget account, but a few closing items require the subcommittee’s attention.
E-275 Working Environment & Wage – Page DOIT-9
Decision unit E-275 recommends additional funding for training, travel, and operating expenses. Due to position transfers out of this budget account, some items are no longer needed, but the department wishes to reclaim those funds. Staff recommends that the subcommittee not approve this decision unit because those costs are allocable to the position; costs are typically added when positions are added, and transferred when positions are transferred. The “per FTE” costs will not be lowered in this budget account if this decision unit is not approved.
E-904 Move From BA1370 to BA1365 – Page DOIT-9
Decision unit E-904 recommends the transfer of the project management function to the DoIT AD&D Unit. The department’s reasoning for this is to combine similar skills and experience in order to meet demand for services. Staff’s opinion is that project managers are more similar to planners in the DoIT P&R Unit than to programmers and database administrators in the DoIT AD&D Unit. Staff recommends that the project management function stay in the DoIT P&R Unit.
E-905 Move From BA1370 to BA1373 – Page DOIT-10
Decision unit E-905 concerns two position transfers which were discussed during the previous budget. The subcommittee decided not to transfer the chief of planning position to the DoIT Director’s Office; the subcommittee approved the transfer of one ISS IV position to the DoIT Director’s Office.
E-710 Replacement Equipment – Page DOIT-9
Decision unit E-710 recommends funds for replacement computers and associated software. Staff has made technical adjustments to reflect revised personal computer inventory adjustments. Staff recommends approval of this decision unit.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET ACCOUNT 721‑1370 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
SENATOR COFFIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Application Design & Development Unit - Budget Page DOIT-12 (Volume 1)
Budget Account 721-1365
Mr. Rodriguez:
My remarks are contained in “Closing List #6,” pages 12 through 14.
E-904 Transfer Project Mgt From BA1370 – Page DOIT-16
E-906 DBA and Web From BA1385 – Page DOIT-16
The subcommittee will recall that in previous hearings, the department testified it has experienced a significant decline in demand for programming. Since funding is provided by user service fees based on utilization, the revenue situation has not improved for this unit. The department hopes to mitigate the effect of declining demand for programming and quality assurance services by transferring the department’s database management and project management functions to the DoIT AD&D Unit; the Executive Budget recommends transferring ten database administrators, three Web developers, and one administrative assistant from the DoIT Computing Division, and one project manager from the DoIT P&R Unit.
The subcommittee has already made decisions regarding the project manager and Web developer positions; the subcommittee needs to make decisions concerning the ten database administrators and the administrative assistant. Staff notes the transfer of the database administrators will address the revenue issues in this account because this group generates excess revenues, but it does not address the real issue of declining demand for programming services. In addition to the proposed transfers, the subcommittee has discussed other measures to address the declining revenues and demand for services, including the elimination of vacant positions.
Senator Tiffany:
Are we talking about eliminating the database administrators?
Mr. Rodriguez:
No; the positions being considered for elimination are already vacant. During previous subcommittee discussions, the recommendation was made to reduce overhead and operational structure to match the level of decreased demand for services. Transferring the database administrators into this budget account does not address that particular issue. I think the subcommittee was discussing options for scaling back the current programming staff to match current demand, but no decision was made.
Senator Tiffany:
Which positions are vacant?
Mr. Rodriguez:
Staff has not had time to identify the specific number of vacancies that currently exist.
Senator Tiffany:
Are the vacant positions programmer positions?
Mr. Savage:
We are talking about two distinct issues. The transfer of the database administrators has nothing to do with the fiscal condition of either unit; the issue is the units do work that is closely related, and the programmers and database administrators work together all the time. The transfer makes sense from a functional standpoint. The vacant positions are already gone; we lost them to the 3 percent budget cut. The positions we have forecast to continue in 2004 or 2005 are for requirements that have been identified. We have proposed a 9 percent reduction in staffing from fiscal year (FY) 2002-2003 to FY 2004‑2005 because we have significantly fewer programming positions in the coming biennium. We have already eliminated positions and we look at the workload continuously. If additional staffing reductions are required, we will do them.
Mr. Rodriguez:
Decision unit E-906 also addresses the transfer and cost recovery for Web developers; I believe the subcommittee already decided only one Web developer will be transferred to maintain the State Web site, which leaves two Web developers in this budget account. I believe the subcommittee also decided only one Web developer will be included in the assessment.
E-805 Major Reclassifications – Page DOIT-15
Decision unit E-805 recommends funding for the reclassification of four positions: two database management specialist II positions to database management specialist III; one ISS II position to an ISS III; and one ISS III position to an ISS IV. Staff has reviewed the recommendation and justifications, and it appears the recommendation is based on increased workload and not increased functional responsibilities.
M-501 HIPAA–Health Insurance Portability – Page DOIT-14
Maintenance unit 501 (M-501) concerns a “swap”; the original proposal was for a project manager for the Division of Child and Family Services’ Avatar project. That request has been withdrawn, but the Health Division has requested a project manager for the Environmental Public Health Tracking System. Funding is in place, a 9-month contract for this year has been negotiated, and a contract is pending to extend the program for at least 3 years. Staff recommends approval of this position because funding is in place and has been “secured.”
E-276 Working Environment & Wage – Page DOIT-14
Decision unit E-276 recommends the reinstatement of five NOMADS programmers. These positions were originally eliminated during the base budget process to maintain a positive reserve; since that time, the Welfare Division has identified sufficient workload to support these programmers through the biennium. Staff recommends approving the reinstatement of the five programmers.
E-710 Replacement Equipment – Page DOIT-14
Decision unit E-710 recommends funding to replace 15 personal computers and associated software. Staff has made technical adjustments for quantity and pricing based on information provided by the department and revised pricing from the Purchasing Division.
E-720 New Equipment – Page DOIT-15
Decision unit E-720 recommends funding for a dedicated Oracle test and development server. During previous hearings, the subcommittee debated whether the request should be for one or two servers; I believe the decision was to approve one server. Staff obtained a computer inventory list from the computer facility; a dedicated Oracle test server is located within the server farm, according to the list. It is dedicated to the database administrators. Staff recommends that this asset be maintained with the database administrators being transferred to the DoIT AD&D Unit. Based on that information, staff recommends that this decision unit not be approved.
E-903 Transfer From BA1365 – Page DOIT-15
Decision unit E-903 recommends the transfer of two UNIX support positions from the DoIT AD&D Unit to the DoIT Computing Division. Staff recommends approval of the transfer.
E-911 Transfer Staff to BA1373 – Page DOIT-17
Decision unit E-911 recommends the transfer of a computer systems technician and a computer operations supervisor to the DoIT Director’s Office budget. I believe the subcommittee has already made decisions regarding these positions.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1365 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN MCCLAIN SECONDED THE MOTION.
Assemblywoman McClain:
In regard to the position transfers, what is our final decision?
Mr. Rodriguez:
Decision units E-904 and E-906 transfer ten database administrators, three Web developers, and one administrative assistant from the DoIT Computing Division to this budget account. The subcommittee decided in the previous budget account to keep the project manager position in the DoIT P&R Unit, and to keep one Web developer position and eliminate the other two Web developer positions. Ten database administrators will be transferred to the DoIT AD&D Unit.
Mr. Savage:
We cannot identify the Oracle test server that was listed in the inventory.
Mr. Rodriguez:
The inventory list was supplied to me by John Stewart.
John Stewart, Data Processing Manager II, Technical Operations, Department of Information Technology:
I provided an inventory list of the Web server farm to Mr. Rodriguez, but I am not sure about the Oracle server you are referring to.
Mr. Rodriguez:
The inventory list describes a structured query language (SQL) server, which I believe we discussed this last weekend, and an Oracle test server.
Mr. Stewart:
There is one SQL server.
Mr. Rodriguez:
According to the list provided by the department, there is one SQL server dedicated to the database administrators, and one Oracle test server dedicated to the database administrators.
Mr. Stewart:
Do you have that list?
Mr. Rodriguez:
I will give you a copy of it; it is the list you gave to me.
Assemblyman Beers:
Perhaps we could amend the motion to include a test and development server as a staff technical adjustment, based on the results of a reexamination of the inventory list.
Senator Rhoads:
That amendment is fine with me.
Assemblywoman McClain:
That amendment is also acceptable to me.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1365 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS, AND TO INCLUDE A TEST SERVER AS A TECHNICAL ADJUSTMENT TO BE DETERMINED BY STAFF.
ASSEMBLYWOMAN MCCLAIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Computing Division - Budget Page DOIT-19 (Volume 1)
Budget Account 721-1385
Mr. Rodriguez:
My remarks are contained in “Closing List #6,” pages 15 through 20.
E-715 Replacement Equipment-Mainframe – Page DOIT-23
Decision unit E-715 concerns the upgrade of the mainframe computer. This item has been discussed extensively in previous subcommittee hearings. The primary options are to upgrade the current R-35 mainframe to an R-36, or to completely replace the R-35 mainframe with a new Z-104 mainframe.
In regard to the first option, International Business Machines (IBM) has indicated it will continue service for the current operating system through August 2005. The risk is, if IBM decides to upgrade or discontinue support of the current operating system during the interim, we will have to upgrade the software and purchase a new mainframe. In regard to the second option, purchasing a new Z‑104 mainframe, it is more expensive and the technology is new. It will meet the department’s capacity requirements, and it will support the 64-bit technology processing needs. The approximate one-time costs are $0.6 million for the first option versus $1.5 million for the second option. The subcommittee needs to weigh costs with risks and determine the acceptable level of risk.
E-805 Major Reclassifications – Page DOIT-24
Decision unit E-805 recommends funding for ten reclassifications. The table on page 17 lists the recommended reclassifications. Staff has examined all information and justifications provided by the department; staff recommendations are indicated in the table. Staff stresses the final decision regarding reclassification rests with the Department of Personnel.
E-901 Help Desk to IFS BA1363 – Page DOIT-24
E-902 Help Desk to Controller’s Office BA1130 – Page DOIT-25
E-903 Staff From BA1365 to BA1385 – Page DOIT-25
The subcommittee has already made decisions regarding decision unit E-906. Staff recommends approval of the position transfers in decision unit E-901 and decision unit E-902.
E-275 Working Environment & Wage – Page DOIT-21
Decision unit E-275 recommends funding for travel associated with the department’s additional disaster recovery testing. The department performed a disaster recovery test during the current biennium and wants to expand the testing from once a year to twice a year.
E-276 Working Environment & Wage – Page DOIT-21
Decision unit E-276 recommends funding for additional maintenance for the computing facility. Staff has reviewed the facility plan and the expansion plan and recommends approval of this decision unit.
E-277 Working Environment & Wage – Page DOIT-21
Decision unit E-277 recommends funding for holiday pay for system critical support staff. Staff has reviewed the expenditures for holiday pay for the last 4 years; the average expenditure has been $5168. Staff projects FY 2002-2003 holiday pay expenditures to be $6950. The department has been paying for holiday pay through vacancy savings. Staff believes there is insufficient justification for funding of $22,000 per year; staff recommends the department continue to use vacancy savings for holiday pay.
E-600 Budget Reductions – Page DOIT-22
This decision unit addresses the 3 percent reduction mandated by the Governor. Staff recommends approval of this decision unit.
E-710 Replacement Equipment – Page DOIT-22
Decision unit E-710 recommends funding for two high-speed laser printers, personal computer replacements, and software. Staff has made technical adjustments based on prices from the Purchasing Division.
E-712 Replacement Equipment – Page DOIT-22
Decision unit E-712 recommends funding to purchase “HEAT,” a help desk software package. Staff recommends approval of this decision unit.
E-713 Web Infrastructure – Page DOIT-23
E-714 Replacement Equip and Vendor Services – Page DOIT-23
Staff has worked closely with the computer facility staff and made technical adjustments to decision units E-713 and E-714. Staff recommends approval of these decision units with the technical adjustments presented.
E-730 Maintenance of Buildings and Grounds – Page DOIT-24
The Governor recommends $5.2 million in general obligation bonds for the expansion and renovation of the computer facility. Decision unit E-730 represents the interest payments on the bonds for the project. Repayment of principal is not required until the project is completed.
Senator Tiffany:
We need to make a decision regarding the mainframe. I recommend the upgrade from R-35 to R-36 through hardware and software modifications; this is option “a” at the bottom of page 16. I think staff recommendations for all the other items in this budget are appropriate.
Assemblywoman McClain:
What have we decided regarding the position reclassifications?
Senator Tiffany:
We decided to follow staff recommendations.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET ACCOUNT 721-1385 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS, AND TO UPGRADE THE CURRENT R-35 MAINFRAME TO AN R-36 AT AN ESTIMATED COST OF $610,913, AND TO APPROVE THE POSITION RECLASSIFICATIONS IN E-805 RECOMMENDED BY STAFF.
SENATOR RHOADS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Data Communications & Technical Services - Budget Page DOIT-28 (Volume 1) Budget Account 721-1386
Mr. Rodriguez:
My remarks are contained in “Closing List #6,” pages 24 and 25.
E-300 Maximize Internet & Technology – Page DOIT-30
Decision unit E-300 concerns the additional system maintenance for the SilverNet data communications network. Staff has reviewed all documentation submitted by the department and has made technical adjustments to reduce travel. Staff recommends approval of this decision unit as adjusted.
E-600 Budget Reductions – Page DOIT-30
E-605 Budget Reductions – Page DOIT-30
Decision units E-600 and E-605 eliminate vacant positions; staff recommends approval of these decision units.
E-710 Replacement Equipment – Page DOIT-31
Decision unit E-710 recommends funding to upgrade the State’s SilverNet data communications network. Staff has reviewed the documentation submitted by the department and has made technical adjustments. Staff recommends approval of this decision unit as adjusted.
E-711 Replacement Equipment – Page DOIT-31
Decision unit E-711 recommends funding for replacement computers, software, and a color printer. Staff has made technical adjustments based on revised pricing from the Purchasing Division; staff recommends approval of this decision unit as adjusted.
E-720 New Equipment – Page DOIT-31
Decision unit E-720 recommends funding for computer and software upgrades for the wide area network group and for additional training. Staff has made technical adjustments to reduce the funding level for training to $2500 per FTE. Staff recommends approval of this decision unit as adjusted.
E-721 New Equipment – Page DOIT-32
Decision unit E-721 recommends funding authority of $3500 in each year of the biennium to purchase personal computer and local area network tools, technical documentation, and operating supplies. Staff recommends approval of this decision unit.
E-723 Maintenance of Capital Complex Conduit – Page DOIT-32
Decision unit E-723 recommends funding for maintenance of the capital complex conduit.
E-805 Major Reclassifications – Page DOIT-33
Decision unit E-805 recommends the reclassification of a computer network specialist III to a master information specialist I, and the reclassification of three computer network technician II to communication system specialist I. Staff recommends approval of the reclassifications.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1386 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
DoIT Telecommunications - Budget Page DOIT-35 (Volume 1)
Budget Account 721-1387
Mr. Rodriguez:
My remarks are contained in “Closing List #6,” pages 26 through 28. There are no major closing issues identified in this budget account.
E-500 Accessible, Flexible, Cost-Efficient Government – Page DOIT-37
Decision unit E-500 recommends funding for projected increases in telephone and Wide Area Telecom/Telephone Service (WATTS) charges and telephone services. These items are pass-through costs to the budget account; staff recommends approval of this decision unit with technical adjustments.
E-600 Budget Reductions – Page DOIT-37
Decision unit E-600 recommends a reduction in telephone maintenance and installation services expenditures. Staff recommends approval of this decision unit.
E-710 Replacement Equipment – Page DOIT-37
Decision unit E-710 has three components. The first item is a replacement recommendation for the department’s call management system; the vendor has terminated support services. The second and third items are replacement recommendations for the Audix voice mail system and the call accounting system for billing; the vendors for these systems have notified the department they will discontinue support for these systems during FY 2002-2003. Staff has reviewed the documentation provided by the department and recommends approval of this decision unit.
E-711 Replacement Equipment – Page DOIT-38
Decision unit E-711 recommends funding from reserves for computer equipment, printers, and two lower-end system-monitoring servers. Staff has made technical adjustments based on revised pricing from the Purchasing Division and recommends approval of this decision unit with technical adjustments.
E-720 New Equipment – Page DOIT-38
Decision unit E-720 recommends funding for a system insurance contract on the private branch exchange (PBX) system for catastrophic events causing an interruption in service. This contract will provide emergency repair services.
E-805 Major Reclassifications – Page DOIT-39
Decision unit E-805 recommends the reclassification of an administrative assistant II position to administrative assistant IV. This position does the billing and the inventory control for the telephone system. Staff recommends approval of this decision unit.
Senator Tiffany:
Is the reclassification contingent on the approval of the Department of Personnel?
Mr. Rodriguez:
That is correct.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1387 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN MCCLAIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
DoIT Communications - Budget Page DOIT-41 (Volume 1)
Budget Account 721-1388
Mr. Rodriguez:
My remarks are contained in “Closing List #6,” pages 30 and 31. There are no major closing issues identified in this budget account.
E-275 Working Environment & Wage – Page DOIT-43
Decision unit E-275 recommends $5500 in each year of the biennium to provide for a 5 percent supervisory pay differential for each service region’s lead computer system specialist II position. The department is trying to establish a lead contact within each service region’s technical support group. Staff recommends approval of this decision unit.
E-600 Budget Reductions – Page DOIT-43
Decision unit E-600 is in response to the 3 percent mandatory budget reduction. The computer system technician position has been vacant since October 2001. Staff recommends approval of this decision unit.
E-605 Budget Reductions – Page DOIT-43
Decision unit E-605 is also in response to the 3 percent mandatory budget reduction. The maintenance repair specialist II position has been vacant since October 2001. Staff recommends approval of this decision unit.
E-710 Replacement Equipment – Page DOIT-44
Decision unit E-710 recommends funding for the replacement of four personal computers, two laptops, two replacement pickup trucks, and portable test equipment used in the maintenance of the microwave system. Staff has made technical adjustments to vehicle prices, computer equipment prices, and software prices based on revised pricing from the Purchasing Division. Staff recommends approval of the replacement trucks and requests authority to adjust vehicle maintenance costs.
E-720 New Equipment – Page DOIT-44
Decision unit E-720 recommends funding for replacement equipment for the analog portion of the microwave system. Staff has reviewed the documentation provided by the agency and has made technical adjustments for travel, operating supplies, equipment, and training; staff recommends approval of this decision unit with technical adjustments.
E-721 New Equipment – Page DOIT-45
Decision unit E-721 recommends funding for additional operating, maintenance, and training costs associated with the capital complex conduit. Staff has reviewed the documentation provided by the agency and has made technical adjustments to operating and equipment costs based on revised pricing from the Purchasing Division. Staff recommends approval of this decision unit with technical adjustments.
E-730 Maintenance of Buildings and Grounds – Page DOIT-45
Decision unit E-730 recommends funding for the debt service on the recommended microwave capital improvement projects. The information on page 31 is only a portion of the capital improvement projects that are supposed to be included in this decision unit. Staff requests authority to make adjustments for the remaining portions, such as the Stewart complex communication extension and the security access upgrades. The amounts in the Executive Budget represent interest only; the principal is not due until the projects are completed.
E-805 Major Reclassifications – Page DOIT-45
Decision unit E-805 recommends funding to reclassify a communications system supervisor to a communications system manager II; the position has been functioning as the manager of the Communications Technologies Unit. Staff recommends approval of the reclassification.
In the Department of Administration’s Information Technology Projects budget, budget account 101-1325, there is $4.6 million in FY 2003-2004 and $2.2 million in FY 2004-2005 in the State Highway Fund for the completion of phase 2A of the microwave system upgrade, the microwave spurs, and partial completion of phase 3.
Staff requests authority to make technical adjustments to the cost-allocation in this budget based on closing decisions made by the subcommittee on other DoIT budget accounts.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1388 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYMAN GRIFFIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
DEPARTMENT OF ADMINISTRATION
Information Technology Projects - Budget Page ADMIN-14 (Volume 1)
Budget Account 101-1325
Mr. Stevens:
My remarks are contained in “Closing List #6,” pages 32 through 35.
M-501 HIPAA–Health Insurance Portability – Page ADMIN-14
I believe this budget was reviewed yesterday; it involves several new data processing systems which are proposed to be developed during the 2003‑2005 biennium. One system, Avatar, is a replacement for the Advanced Institutional Management Software (AIMS); the Division of Mental Health and Developmental Services and the Division of Child and Family Services both use AIMS.
E-300 Maximize Internet & Technology – Page ADMIN-15
Decision unit E-300 is discussed on page 35; it recommends funding for a new integrated licensing system for the Real Estate Division.
Assemblywoman Chowning:
I believe there was a $300,000 projection made 2 years ago to accomplish this integrated licensing system; the Governor now recommends $997,539. What accounts for the large price difference? How many licensees will be issued licenses? What is the projection for the number of licensees who will be able to renew their licenses online? In my opinion, we never really got that information. I am trying to justify the expenditure of almost $1 million on this system. For the record, I am a Nevada real estate licensee; my husband is a licensed real estate broker.
Kathy Ryan, Deputy Chief, Planning and Programming Division, Department of Information Technology:
Previously, the Real Estate Division based its estimate for the proposal on one estimate from one state. At that time, Senator O’Donnell and Assemblyman Beers asked DoIT to work with the division and create a functional requirements definition, then obtain estimates for the system based on those requirements. The system used for the earlier estimate did not provide the functionality the division was seeking.
Assemblywoman Chowning:
How many estimates were used to create the current proposal?
Ms. Ryan:
We did a request for information; I believe we received eight different estimates. We disregarded the high and low estimates, then considered what seemed reasonable in regard to matching our requirements. The current proposal is a “middle of the road” estimate.
Assemblywoman Chowning:
That makes me feel a lot better. How many licensees?
Gail J. Anderson, Administrator, Real Estate Division, Department of Business and Industry:
Potential users include 20,000 active and inactive real estate licensees, 1600 property management permit holders, 69 qualified intermediaries, 1200 active and inactive real estate appraisers, 9000 time-share agents and representatives, 201 community association managers, and 392 inspector of structure certificate holders; other registrations in the Real Estate Administration budget such as subdivision projects, time-share projects, and campground projects could also utilize the system.
Assemblyman Beers:
I believe the Department of Motor Vehicles is reporting 5 to 7 percent of people eligible to renew driver’s licenses online are doing so. If 10 percent of the people utilize the online system, the resulting cost is approximately $300 per licensee. If budgets are going to be tight, does it make sense to have an online system for such a small population of people?
Senator Tiffany:
I agree with that point. When I considered accepting campaign contributions online, I talked to PayPal and some other credit card companies and merchant banks to compare costs. It is not cost-effective to offer the service to a small number of people; you do not have a large number of potential licensees. What will be the total cost of the system if we do not approve the online licensing portion?
Ms. Ryan:
My understanding is the online portion of the system is not the most expensive part. The Real Estate Division has approximately 17 different business processes; many are stand-alone processes located on the mainframe or the servers. It takes a lot of time in the office to complete work. This system will consolidate processes and give the division a database; the different types of licensing processes will be able to interact. For instance, to certify a real estate agent now, the division has to check several different databases for information on the individual. The current system is also almost 20 years old. This new system not only offers online capabilities, but also provides features we call “back office functions.”
Assemblyman Beers:
In the feasibility study, the 17 applications are listed; 4 processes are mainframe-based, including the primary licensee database. The other processes are based on Excel and Access, which were not available 20 years ago. With such small numbers of licensees in such disparate functions, I am not sure integration is a requirement. If this was a different time and we had enough money, we might make a different decision. I will defer to the chairman’s direction as to what we want to do about this.
Senator Tiffany:
Of the eight estimates you received, what were the recommended configurations?
Ms. Ryan:
Are you asking about platforms?
Senator Tiffany:
Yes; I am assuming there is a server, network, and workstations.
Assemblywoman McClain:
I am not sure we can apply the same rationale between situations; the general population going to the Department of Motor Vehicles offices and using credit cards is not the same as the real estate licensees. I think a much larger percentage of the real estate population will utilize the service.
Senator Tiffany:
The population is still pretty small, even if a larger percentage of people utilize the service.
Assemblyman Parks:
I need to disclose that I also have a real estate license, but this action will not affect me any differently than anyone else. I tend to support Assemblywoman McClain’s comment regarding comparison of the user groups; I think 99 percent of the individuals in the real estate group have Internet access, so the numbers will be vastly different.
Senator Tiffany:
The percentage of people who might utilize the service is different, but the entire population of people involved is small.
Ms. Ryan:
I want to point out that if the funding is approved, we will go through the request for proposal process. These estimates are based on the use of application servers and database servers hosted at the facility.
Senator Tiffany:
I think we are very concerned that the cost is really high for the functions listed and the small population involved. How much time do we have to make a decision on this issue?
Mr. Stevens:
This decision can wait for a few days or a week; it will not impact the cost model process because it is a separate item in a separate budget account.
Assemblywoman Chowning:
What happens if the requests for proposals come back lower than the funding we have budgeted; for instance, if the proposals are $0.5 million and the funding is $1 million? Will fee increases not go into effect?
Ms. Anderson:
The proposed fee increases in Senate Bill (S.B.) 428 (1st Reprint) will support programs and positions in the administrative budget; the fee increases are not tied solely to the licensing system.
SENATE BILL 428 (1st Reprint): Makes various changes regarding certain state agencies that regulate real estate practices and professions. (BDR 54‑471)
Referring back to the division’s database system’s information integrity and inability to integrate statistical sources, we spend a lot of time trying to get accurate information for our reports; it would be helpful to have an integrated database. We could also obtain information regarding our performance indicators and cost-allocations. One of the benefits to the public is the ability to ask general questions on our Web site, such as, How do I find out whether someone claiming to be a real estate agent is licensed? Information is also available to the public during non-business hours. We have a high percentage of licensees in the real estate industry using computers. There are significant benefits from this system to licensees and the agency.
Senator Tiffany:
I do not think anyone is arguing the fact you need the system; we are very concerned about the amount of money. I have a database of 105,000 registered voters on my personal computer; it did not cost $1 million to do that. I know you have multiple databases that you want to query and you need the ability to generate reports, but we are questioning the cost.
Assemblyman Beers:
I believe there was a list in the project planning document of the “person hours” devoted to the tasks this system will automate; I think the total was about 2500 “person hours,” which is 1.25 FTE.
Ms. Ryan:
I do not recall the total at this moment.
Assemblyman Beers:
The information was given to staff in the last 10 days as an agency response to subcommittee questions. I have all 700,000 registered voters in Clark County in an Access database on my laptop. I recommend spending money to train agency personnel to create the small databases required or utilize experienced DoIT personnel. As for reporting, I use Crystal Reports, which allows a user to query multiple databases simultaneously and create reports. I do not think it will cost more than $50,000 to implement this type of solution.
Ms. Anderson:
The existing COBOL program is over 20 years old; the agency has been informed it needs significant upgrades. The time-share program was added in 1988 and 1999, the projects registration program was added in 1995, and the real estate appraisers program was added in the early 1990s. We face significant rewrites and upgrades if the agency is unable to obtain a new system.
Senator Tiffany:
I do not think we are saying we are not going to approve a new system; I think we are saying the estimated cost is out of line.
Ms. Anderson:
We have reached maximum capacity on some licensing files; we cannot access that information. We have needs.
Senator Tiffany:
We understand the agency’s needs. I think we will hold this budget and have some discussions with the agency outside of hearings. Since we have made changes, we need to have the adjustments back to us as soon as possible. When are you able to do that?
Cynthia Jones, Budget Analyst IV, Budget Division, Department of Administration:
We can have the adjustments available in 2 weeks.
Senator Tiffany:
That is not acceptable.
Ms. Jones:
I do not know how we can get it done sooner; we have to rerun the entire model and adjust all accounts.
Senator Tiffany:
If we wait 2 weeks, that will put us “against the wall.”
Assemblyman Beers:
If the Budget Division received the Nevada Executive Budget System enhancements that are under consideration, how long would it take to make the changes?
Ms. Jones:
Once the rate model is run, which DoIT can probably complete in 2 or 3 days, we could probably have the adjustments done 2 days after that. It is a matter of changing the rates in the rate table and re-balancing.
Senator Tiffany:
I want to make sure you know 2 weeks is not acceptable. We have to get the information right away.
Mr. Stevens:
The 2 weeks is as long as we can go; that puts us at May 15, 2003. We have to change all the budget accounts, rebalance, and write the Appropriations Act. I think we did this process in less than 2 weeks during the last session.
Ms. Jones:
We will do our best to provide it to you as soon as we can. When we give it to staff, we will have the revenue balanced just as we do in the Attorney General cost-allocation. We plan to submit it in a similar format to facilitate system entry.
Senator Tiffany:
Since there is no further business, we are adjourned at 6:24 p.m.
RESPECTFULLY SUBMITTED:
Denise Davis,
Committee Secretary
APPROVED BY:
Senator Sandra J. Tiffany, Chairman
DATE:
Assemblywoman Vonne Stout Chowning, Chairman
DATE: