SUPPORTS ITEM NO. 5
CS&B COMMITTEE AGENDA
JULY 31, 1997
ADMINISTRATIVE REPORT
Date: July 16, 1997
CC File: 1186
TO: Standing Committee on City Services and Budgets
FROM: CIO / Director, Information Technology
SUBJECT: Information Technology Infrastructure -
1997 Expansion and Replacement Program
RECOMMENDATION
That Council approve the following 1997 information technology
infrastructure replacement and upgrade program:
(A) The installation and upgrade of network communications
services to 65 sites, and the replacement, upgrade and
consolidation of local networking facilities;
(B) The replacement of 225 IBM mainframe terminals, which are
unable to support current-generation information systems, with
network-connected microcomputers;
(C) The expansion to all networked sites of basic e-mail,
scheduling and basic internet-based information services;
(D) The acquisition and implementation of network management and
support tools;
(E) The accelerated upgrade of desktop microcomputer operating
systems to a common standard,
at an estimated total capital cost of $2.83M. Additional annual
operating costs in 1998 and thereafter are estimated at $236,000,
of which there is a staffing component, and Council is further
recommended to approve:
(F) The establishment of 4.5 regular full-time technical
positions, at an annual cost of $225,000, subject to
identification of their location within the organization by
the Director of Information Technology in consultation with
the Corporate Management Team, and to appropriate
classification by the Director of Human Resources.
Both the capital costs and the increased operating costs will be
funded from the Technology Infrastructure Replacement financing
plan.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
On December 8, 1994, Council, while considering the "Next Steps to
Better City Government" reports, which included the Information Systems
Plan Report, approved:
- THAT Council direct staff to prepare a detailed infrastructure and
software implementation plan and budget for consideration in the
1997 - 1999 Capital Budget.
On July 23, 1996, Council approved a "Long Term Financing Strategy -
Information Technology Replacement Program", that recommended, amongst
other things:
- THAT Council approve the financing strategy as outlined in this
report to provide a sustaining source of funds for information
technology and renewal.
PURPOSE
The purpose of this report is to seek approval to continue the build-out
and replacement of the City's information technology, communications and
systems' infrastructure.
This is a multi-year program. The first year, 1997, includes:
Expansion and upgrade of network and telecommunications
facilities;
Replacement of obsolete desktop workstations and upgrade of
others; and
Expansion of basic information services like e-mail and
Inter/intranet access to most locations in the City.
The first year program will also see a (companion) recommendation on the
future of the core administrative systems (Financial, Human Resources,
Payroll & Fleet Management)
Infrastructure costs in subsequent years are estimated at $2.3M in 1998,
$2.4M in 1999. The emphasis will shift to replacement of the
administrative and other mainframe-based systems, and to the provision
of a common set of electronic services on the desktop. Council will be
asked to review and approve Infrastructure Expansion and Replacement
programs in each of these years.
This is not a new program. Rather, it is a consolidation under a
"corporate infrastructure" umbrella of what have historically been
departmental approaches to funding technology infrastructure growth and
maintenance.
BACKGROUND
In 1992, staff developed an Information Systems Plan (ISP), a revised
and updated version of which was approved by Council in 1994. The major
thrust of the ISP was the replacement of mainframe-based information
systems with networked systems. Council directed staff to proceed with
the implementation of the strategy outlined in the ISP, subject to
follow-up reports on those components of implementation which require
Council's approval, and to prepare a detailed infrastructure and
software implementation plan and budget for consideration in the 1997 -
1999 Capital Budget.
During the ensuing 1995 - 1996 period, various Better City Government
programs initiated major process reviews. As anticipated in the "Next
Steps to Better City Government" reports, information technology is a
key enabler of process re-design.
At the same time, the CityPlan vision was adopted by Council. CityPlan
encouraged the development of community identity, public participation
in the planning process and a more neighbourhood-based delivery of
services. Since then, steps towards realization of this vision have
included initiatives like community-based policing, Neighbourhood
Integrated Service Teams, information kiosks at branch libraries, and
the CityPlan Community Visions pilot project.
City staff groups working in the community need access to the same
information and communications resources as those who provide services
internally. The technology infrastructure must support staff at
Community Centres, Branch Libraries and Firehalls as well as it supports
staff at City hall.
Recognizing the need for a stable long-term funding source, a proposal
for a Long Term Financing Strategy for Information Technology
Replacement was approved by Council on July 23, 1996, and provides for
approximately $5.3M of Operating Budget funding per year for 8 years.
DISCUSSION
The City's information technology infrastructure supports almost 3,000
microcomputers on over 40 Local Area Networks (LANs) at 65 sites. While
it has been adequate for the demands made on it in the past, this is no
longer the case. Changes in technology, increased volumes of data
storage and transmission, equipment that can no longer be effectively
upgraded, the need for greater reliability and improved manageability,
and a lack of service to some sites, all dictate that an upgrade program
is needed to put a more robust infrastructure in place.
The philosophy adopted in this program is that infrastructure is the set
of shared computers, networks, software, common I/T based services and
skills that enable the organization s business processes. It includes:
the physical network and associated equipment up to the office
wall-plug;
the software needed to provide basic information and
communications services to all staff equipped with a
microcomputer.
It is the responsibility of the business unit to acquire
line-of-business application software and equip staff with appropriate
computing facilities. The infrastructure then provides access to the
economies of shared services and integration and communication with the
wider organization.
Components of the proposed infrastructure build-out program for 1997 are
identified in Appendix A.
Costs associated with the operation and support of this infrastructure
are associated primarily with staff resources and telecommunications
leases. Additional annual operating costs anticipated in 1998 and
subsequent years:
Operating
Cost
Telecommunications leases & software costs
(net increase) $ 11,000
Staff resources to support increased infrastructure
(4.5 FTE's) $225,000
________
Net Annual Operating Cost Increase $236,000
Telecommunications lease costs will be funded after 1997 through
increases in the respective budgets of the Park Board and Corporate
Services (which will administer all other telecommunications links
except those at VPL). For 1997, costs (estimated at $20,000) will be
funded through this program.
The staff resource requirement is based on maintenance of current
service levels. It is generally considered that capital costs represent
less than 20% of total costs over the life of the equipment, with
operating costs making up the balance. The City technology support
organization is not able to absorb continuing infrastructure growth
without staff increases. These will be both central and departmental,
with the mix to be determined, but it should be noted that 3 of the 4.5
FTE's needed are currently on the temporary payroll. For 1997,
additional support costs will be funded through this program.
Network and File Server Upgrades:
Upgrades to the telecommunications facilities and Local Area Networks
(LANs) are needed to:
Provide staff at "frontline" (remote) City facilities, that
have not enjoyed the same level of information services as
their City Hall counterparts, with:
Access to line-of-business systems, either local or
centralized, that can improve service quality. Example:
system for booking recreational programs at Community Centres;
Basic electronic services like e-mail, scheduling, the
corporate directory, and information accessible on the
intranet. Example: providing frontline receptionist staff
throughout the organization with access to a shared
knowledge/referral base;
The ability to participate in cross-functional teams.
Example: Enabling Police officers and Property Use Inspectors
to communicate and share information as members of
Neighbourhood Integrated Service Teams.
Deliver City services directly to the public at their local
branch library, Community Centre or other City presence.
Example: Branch libraries can offer not only traditional book
loaning services, but also information stored on central
CD-ROM servers and Internet access through the Main Library;
Provide centralized staff with the ability to support the
technology needs of these facilities remotely. Example:
Remote network and workstation support is preferable to
training local staff to perform these tasks, and saves
technical staff travel time.
The breakdown by facility type is shown in Appendix B. There are two
components to providing these services: the telecommunications
connection and the local area network infrastructure (file and print
servers and associated software).
The proposed telecommunications network infrastructure is included in
Appendix C. Major hub sites (City Hall, the Main Library, the Parks &
Recreation Central Office, Firehall #1, both Cambie and Main Police
offices, and the Engineering Yards and pump stations) will be
interconnected using City-owned cable plant. This is inexpensive and
has the capacity to meet projected demands for several years. Other
sites will be serviced through City-owned cable plant where it is
available, or by leasing ISDN services, which are now available
throughout the city and are the most cost-effective way of meeting
current and projected needs.
It should be noted that the partnership agreement between the City,
Rogers Communications and the School Board has the potential to provide
the City with ubiquitous broadband telecommunications in the future. In
the interim, capital investment will be minimized and services installed
only as needed. These needs will also be identified in the negotiations
with Rogers.
The local area network core infrastructure at a site consists of the
file and print servers, telecommunications equipment to connect through
to the hub site, and physical wiring to all computer-equipped desktops.
This infrastructure enables access to basic shared services like e-mail
and intranet, shared administrative Financial, Payroll, and Human
Resource systems, and local administrative or line-of-business systems.
Growth in the number of microcomputers, and a growing organizational
dependence on them, has put pressure on the local area network
infrastructure, and a number of server and peripheral equipment upgrades
are demanded.
Growth in the City's network infrastructure will demand one additional
FTE to maintain current service levels.
Replace mainframe terminals:
Around 225 IBM mainframe terminals are still in use. These terminals
are typically ten years old, provide access only to mainframe-based
services and systems, and require a separate and unique
telecommunications infrastructure. They cannot be used for many common
office support functions. Their continued use inhibits migration away
from the mainframe and requires duplication of services.
This proposal recommends replacing all these terminals by the end of
1997. This will result in a 10% increase in the number of networked
microcomputers. Maintaining current levels of service will require a
staff increase of 3.3 FTE's.
Staff are investigating "Network Computers" as an option for terminal
replacements, but are not yet in a position to make a recommendation on
their use. This alternative could only reduce costs.
Basic e-mail, scheduling and Internet/intranet access:
A goal is to provide an integrated set of services (e-mail, fax,
scheduling, telephone directory, document retrieval, collaborative
"groupware", data access) to every networked desk in the City. This
will not be realized before 1999, but the 1997 program will extend and
upgrade the core e-mail, scheduling and intranet-based information
components to Police, VPL branches, Community Centres and Firehalls.
This and other components of the program aim to provide Internet and
intranet access at every desktop. The ability to deploy this technology
throughout the City is seen as essential, both for internal information
systems' delivery and as a mechanism for communicating with and
delivering direct services to the public. Implementation of network management and support tools:
As information technology is implemented throughout the organization,
support costs become a major issue.
The technology itself can help to contain these costs, by providing:
Remote support of networked equipment, and of the user who is
experiencing problems;
Support for and partial automation of the acquisition,
inventory management, software licensing, desktop
configuration management, and software distribution processes;
Help-desk support for problem tracking, investigation and
resolution;
Network monitoring, so that failures are recognized quickly
and addressed promptly.
As the City becomes increasingly reliant on its network and information
systems, it is important that these tools be put in place. Total
estimated costs are $270,000, of which $120,000 will be required in
1997.
Accelerate Upgrade to Common Windows '95 Desktop Standard
The City has standardized on Windows '95 as its desktop operating
system. At present, most upgrades to Windows '95 are being performed as
the hardware is replaced through the microcomputer replacement program.
This report recommends that the upgrade process be accelerated.
Around 300 microcomputers in the City are already running Windows 95,
and that number is expected to be 700 by October '97. The upgrade of
the remaining 1400 will take an estimated 9 months, with a target
completion date of July 1998. (These numbers do not include VPL, which
has its own upgrade program.) Installation will be performed by
temporary staff.
It will be necessary to either replace or upgrade a number of the
existing microcomputers in the City. Most replacements will be as
scheduled under the microcomputer replacement program, which is based on
a 5 year useful life. Up to 140 replacements will be moved forward a
year or two, from 1999/2000 to 1998. Other microcomputers will be
upgraded as needed.
The upgrade program will cost $1.53M, including hardware replacements
and upgrades, operating system license costs, installation, and training
for the estimated 1400 staff affected. Only $271,000 of these costs
will be incurred in 1997. Replacement and installation costs have
previously been included in projections, and will be incurred
regardless. The cost of accelerating the upgrade program is estimated
at $40,000.
CONCLUSION
The City is looking to replace or significantly upgrade a number of its
core information systems, and to implement systems which will support
different ways of working and new ways of delivering services to the
public. These systems will demand a more robust, more widely available,
more supportive infrastructure than the present one. It will have to
have to have adequate capacity, be fast, manageable and adequately
supported.
This report describes the first year of an ongoing program in which the
technology infrastructure is recognized as a corporate "utility", its
maintenance as a corporate responsibility. Embarking on this program
now will pave the way for the many technology-dependent initiatives
arising from Better City Government programs.
* * * * *
1997 Technology Infrastructure Build-out
Projected
Capital Cost*
Upgrade existing or extend new network
communications services to 63 sites,
including installation of a high-speed network
"backbone" serving the City Hall complex, and
replace, upgrade and consolidate local networking
facilities (file and print servers); $1,317,000
Replace IBM mainframe terminals, now typically
10 years old and unable to support
current-generation information systems, with
network-connected microcomputers; $ 893,000
Provide or enhance basic e-mail, scheduling and
Internet/intranet access to all networked sites; $ 199,000
Build, through the acquisition and implementation
of network management and support tools, the
City's ability to manage a network growing in size,
complexity and significance to the organization; $ 120,000
Accelerate the upgrade of desktop microcomputer
operating systems to a common (Windows '95)
standard; $ 270,000
Associated 1997 operating costs (telecommunications
facilities) $ 30,000
TOTAL $2,829,000
* Capital costs include all acquisition, installation and training
costs.
Breakdown of Network Infrastructure Costs by Type of Facility
APPENDIX B
Queen Elizabeth and Orpheum Theatres $ 10,000
Community Services - Carnegie Centre,
the Gathering Place and the Dog Pound $ 81,000
City Hall complex $ 46,000
Engineering - City Hall (consolidation of
servers), Manitoba & Cambie Yards,
Parking Enforcement, Burns Bog landfill $ 298,700
Firehalls (16) $ 224,000
Legal Services (VanCity building) $ 52,300
Community Centres, Recreation Facilities,
Gardens and Service Yards $ 255,000
Police - 2120 Cambie $ 10,000
Main and Branch Libraries $ 340,000
Total Network & File Server Upgrades $1,317,000
APPENDIX C on file in City Clerk's Office
* * * * *