Legislature(2001 - 2002)
04/03/2001 01:38 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 03, 2001
1:38 PM
TAPE HFC 01 - 70, Side A
TAPE HFC 01 - 70, Side B
TAPE HFC 01 - 71, Side A
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 1:38 PM.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Carl Moses
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Jim Whitaker
MEMBERS ABSENT
No members were absent.
ALSO PRESENT
Jim Duncan, Commissioner, Department of Administration;
Larry Walsh, Director, Information Technology Group,
Department of Administration; Bill Smith, Deputy
Commissioner, Department of Public Safety; Kim Garnero, CPA,
Director, Division of Finance, Department of Administration;
Joseph Reeves, Deputy Director, Division of Administration,
Department of Corrections; Karen Morgan, Deputy Director,
Information Technology Group, Department of Administration
PRESENT VIA TELECONFERENCE
There were no teleconference testifiers.
GENERAL SUBJECT(S):
HB 47-APPROP: GOVERNOR'S CAPITAL BUDGET
Overview: Information Technology Projects
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 22nd Legislative Session, contact 465-
2156. After the 22nd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
TAPE HFC 00 - 70
SIDE A
INFORMATION TECHNOLOGY PROJECTS
100 JIM DUNCAN, Discussed the review process. The
COMMISSIONER, Telecommunication Information Council
DEPARTMENT OF (TIC) was created 1987 and is comprised
ADMINISTRATION of the Lieutenant Governor,
Commissioners, Director of the Office of
Management and Budget, two members of the
legislature, a member of the University
of Alaska and a public member. Their
duties are to establish guidelines and
prepare a short and long-range
information systems plan, establish
guidelines and direct state agencies to
develop agency information system plans
and establish guidelines for accessing
information by the public. The Lieutenant
Governor appoints a TIC policy group,
which meets on a monthly basis. He
reviewed the membership of the TIC policy
group. A Technical Advisory Committee
(TAC) is composed of the chief technical
representative of each agency. The TIC
policy group did the overall review.
432 Commissioner Duncan The TIC put forward initiatives used in
the review. One was to continue to use
the Internet to service the state's
external customers and improve internal
state operations. Alaska is one of the
leading states in moving transactions to
the Internet. The state is also moving to
digital democracy and to evolve emergency
communication plans. He noted that
service in rural Alaska needs
improvement.
599 Commissioner Duncan Top priority projects were selected and
referred to the TAC for review and debate
from a technical viewpoint. The
Information Technology Group (ITG) also
reviewed the impact of state network and
mainframe computer infrastructure.
689 Co-Chair Williams Questioned if the (Telecommunications)
RFP was discussed by the TIC.
701 Commissioner Duncan Noted that the RFP was discussed
separately. A request for
telecommunications services was issued in
August. There were three respondents.
They are currently evaluating the
respondents and hope to award by August
1, 2001. Further explained that the
projects in the current request would be
needed with or without the RFP with a
private vendor.
638 LARRY WALSH, Noted that the TAC discussed problems
DIRECTOR, with projects in an attempt to assist.
INFORMATION Look at the ability to deliver to rural
TECHNOLOGY GROUP, areas. Discussions occur regarding using
DEPARTMENT OF central solutions to problems as opposed
ADMINISTRATION to reinventing the wheel. Pilot projects
were discussed, which would allow other
agencies to utilize experience.
988 Commissioner Duncan Clarified that a contract would not
reduce the need for the requested
projects or reduce their cost.
EMERGENCY COMMUNICATION CAPITAL PROJECTS
1108 BILL SMITH, DEPUTY Noted that the Emergency Communication
COMMISSIONER, Task Force prioritized the emergency
DEPARTMENT OF PUBLIC communication capital projects. Four
SAFETY AND CHAIRMAN, projects were recommended. He discussed
EMERGENCY the first priority: Emergency
COMMUNICATION TASK Communications Southeast Upgrade,
FORCE Department of Public Safety. The request
would provide general law enforcement
communications traffic.
1221 Mr. Smith The cost would be $400 thousand dollars.
This is the number one priority due to
the lack of existing infrastructure and
is consistent with the Emergency
Communications: Land Mobile Radio
Migration project.
1389 Representative Croft Observed that the project contains $50
thousand dollars in Oil and Hazardous
Substance Prevention and Release funds.
1412 Mr. Smith Explained that Oil and Hazardous
Substance Prevention and Release funds
were used because the system would be
used in the case of an oil spill.
1455 Mr. Smith The Marine Highway would use the
communications in an emergency situation.
1460 Mr. Smith Discussed the Emergency Communications,
Land Mobile Radio Migration request. He
observed that the project has had state
involvement since 1995. There is a
federal mandate to move to migrate to
12.5 megahertz. He noted the difficulty
of communicating among entities in the
time of an emergency. The new system
would allow multiple agencies or entities
to communicate. Wide band radios will
not be available. He noted that portions
of Western Alaska do not have the
infrastructure. However, portable units
could be deployed.
1789 Mr. Smith Discussed system design from a study in
the lower 48. The request would give the
state the initial step to begin the
transition.
1837 Representative Questioned if the federal money would go
Hudson to the state for the acquisition of
equipment.
1859 Mr. Smith Noted that it would go to the state for
state and municipal use. There is an
additional $7 million dollars flowing to
participating federal agencies. Federal
agencies are mandated to transition by
2005.
1925 Representative Croft Summarized that it makes sense for the
state to move in the same direction.
1939 Mr. Smith Added that the wide band equipment will
no longer be available. He discussed the
LAN system.
1959 Mr. Walsh Explained that it is similar to a
cellular phone system. Instead of each
entity using its individual stove pipe
they would share the same core.
1984 Representative Croft The request anticipates another $28
million dollars in future appropriations.
2017 Mr. Smith Noted that the system will cost more than
the $16 million dollars contained in the
request. The system analysis is prepared.
2035 Representative Croft Questioned if the state leverage would be
similar.
2044 MR. Smith Stated that the same leverage would be
pursued.
2066 KAREN MORGAN, DEPUTY Responded that the state is hopeful that
DIRECTOR, future funding would be upcoming.
INFORMATION Discussions have occurred with Senator
TECHNOLOGY GROUP, Stevens' office. The state of Alaska is
DEPARTMENT OF ahead of other states. The state of
ADMINISTRATION Alaska's design involved federal,
municipal and state agencies. She felt
that the prospects of future funding are
good. There are a number of grant
sources. The Military and Veterans
Affairs funding jump-starts the process.
The state portion would be a compliment.
2193 Mr. Smith Clarified that there is no federal
mandate that the state transfer, however
the manufacture of the old technology is
expected to stop. He stressed the
opportunities to the state.
2227 Representative Acknowledged the opportunity to upgrade
Hudson the technology and utilize federal
resources to establish the project. He
questioned if there is an offset of the
new system in addition to efficiency.
2270 Ms. Morgan Thought that there would be some savings.
2319 Representative Spoke in support of the request. He
Hudson emphasized the improvement of technology
in saving lives and stated that a showing
of fiscal savings would benefit the
project.
2353 Representative Asked how many agencies would use the
Lancaster system and if there is any salvage value
in the current system.
2368 Mr. Smith Noted that the current sites would be
utilized. Most of the radio equipment
would be replaced.
TAPE HFC 01 - 70,
Side B
14 Mr. Smith He estimated that there would be 100
entities using the system: 40 - 50
municipalities, federal agencies, state
of Alaska.
142 MARK JOHNSON, Discussed the Emergency Communications:
MEDICAL HEALTH Emergency Medical Services in the
Department of Health and Social Services.
He noted that there are problems with the
existing equipment. Local Satellite
phones have been used. The request
focuses on volunteer services around the
state. The U.S. Department of
Agriculture, USDA can be used as a
partial funding source.
442 Representative Croft Noted that a six-year funding need is a
total of $2 million dollars. He
questioned why the federal grant hasn't
lowered the six-year total.
488 Mr. Johnson Explained that the department has just
begun work with the federal government
and noted that the projection would be
updated, as more information is
available. Observed that ¾ of a million
has been spent in the prior 3 years. The
first phase of the project is the Rail
Belt. This request focuses out of this
area.
601 Mr. Johnson Explained that the LAN project page 18 is
a digital trunking system for multiple
agencies. It will take longer to expand
the system to the rural areas (if there
are ever all covered).
711 Representative Croft Questioned if this project and the LAN
together would cover the entire state.
730 Mr. Johnson Responded that the intent is to cover the
entire state between the two.
875 NICO BUS, Discussed the Emergency Communications:
ADMINISTRATIVE Rescue Coordination Equipment Replacement
SERVICES MANAGER, request. He noted that it would relocate
DIVISION OF SUPPORT to optimal locations the Military and
SERVICES, DEPARTMENT Veterans Affairs antenna. The cost is
OF NATURAL $56.7 thousand dollars. The request would
RESOURCES; also upgrade the radio equipment to the
new technology.
994 Representative Croft Questioned if the equipment is compatible
with the other projects.
1038 Mr. Bus Noted that the project would only
transfer the receiver. It would not be
part of the LAN system immediately.
1086 Representative Questioned why Oil and Hazardous
Hudson Substance Prevention and Release funds
are not being used for the project.
1100 Mr. Bus Explained that the Oil and Hazardous
Substance Prevention and Release funds
are for specific projects. He stated he
would check into the possibility.
KIM GARNERO, CPA, Discussed the Payroll and Accounting
DIRECTOR, DIVISION System Replacement Analysis $400.0
OF FINANCE, Capital Project Request.
DEPARTMENT OF
ADMINISTRATION
Ms. Garnero The Division of Finance operates and
maintains two large mainframe computer
applications that serve all state
departments except for the University:
• AKSAS provides statewide accounting
and disbursement services
• AKPAY provides statewide payroll
services
Ms. Garnero Observed that both of these systems are
highly customized:
• AKSAS was built specifically for the
state by a professional accounting
firm
• AKPAY is a vendor supplied product
that was substantially modified to meet
our needs.
1192 Ms. Garnero Both are mature from a system development
life cycle standpoint:
• AKSAS is 16 years old
• AKPAY is 11 years old
They are having difficulty-attracting
employees and are starting to see signs
that the environment in which they
operate may become unstable over the next
several years. Both systems currently run
under ADABAS database management
software.
1237 Ms. Garnero The payroll software vendor has
officially notified the state that their
product will no longer support ADABAS
after 2002.
Inquiries to the ADABAS vendor noted that
few new copies of this product are being
sold. This type of situation generally
does not bode well for the long-term
future of software products.
1264 Ms. Garnero The short-term solution will be to
convert the payroll system to another
database product: DB2. This is a major
conversion project that would begin next
year. It will take training for Finance
staff and the help of ITG to accomplish.
Emphasized the need to start planning for
replacement of both of these aging
mainframe systems. The current technology
for accounting and payroll functions is
integrated modules within an Enterprise
Resource Planning System. Examples of
this type of software include Peoplesoft,
SAP, and Oracle Financials.
1300 Ms. Garnero Integration provides opportunity for
streamlining processes in cross-
functional areas such as accounting,
payroll and human resources. The days of
standalone, single function
administrative systems are numbered for
large, complex organizations. This is why
we are requesting the money to look at
these existing systems holistically and
strategically plan for their coordinated
replacement.
1317 Representative Croft Questioned why the state doesn't go
straight to Oracle.
1359 Ms. Garnero Responded that the cost would be too
great.
1439 Ms. Garnero In response to a question by
Representative Whitaker, observed that a
RFP and study would take no more than 2
years.
1463 Representative Noted that the system would be well over
Whitaker 20 years old.
1477 Ms. Garnero Observed that change is driven by both
the system technology and the experience
of the analyst.
1523 Representative Stressed that the system needs to be
Whitaker updated.
1533 Representative Spoke to the salary structure.
Hudson
1566 Ms. Garnero Commented that the salary schedule has
been dropping off. The people that know
the technology that is being run are not
young people.
1603 Representative Commented that when the system starts
Hudson collapsing there will be problems
throughout the state.
1623 Co-Chair Williams Recommended leasing equipment rather than
purchasing in order to keep up with the
times.
1646 Mr. Walsh Noted that the study would help to
determine what the best way would be to
help the Department.
1665 Ms. Garnero Noted that the accounting system is old
and it is functional. There are recording
systems that cause problems for the
Division.
1700 Co-Chair Williams Suggested that the State should keep
updated with the changes. He asked if
there was a company that could help with
that concern.
1730 Ms. Garnero Noted that there are many users of the
systems. Stability is difficult and
constant change would run counter
productive.
1755 Representative Croft Acknowledged that leasing was a good
option, the application would still need
to be written. He spoke to data storage.
1777 Representative Noted that this was a major element for
Hudson the University also. He wondered if the
systems would be interchangeable.
1801 Mr. Walsh Stated that the University and the
Division work closely.
1828 Mr. Walsh Commented that there has been a revised
IT plan for the State. That will be
available for review in the early fall.
1865 Co-Chair Williams Asked if all the requests would be for
the short term.
1873 Mr. Walsh Said no. Many agencies are facing the
same challenges.
1892 Mr. Walsh ARCS Video Automation and Control Project
1907 Ms. Morgan Noted that the project would automate
some of the switching equipment, which
currently happens manually. The funding
would be used to purchase a computer
based video/audio automation system that
will enable ARCS to receive video
programs.
1966 Mr. Walsh Electronic Signatures Project - noted
that the fund would be used to purchase
hardware, software and provide staff to
evaluate and pilot the technology.
2027 Representative John Asked if there was a specific agency that
Davies would be using the project.
2040 Mr. Walsh Replied that there are several agencies
that have expressed interest. The
Department of Natural Resources and the
Department of Commerce have both
expressed interest.
2081 Mr. Walsh Discussed the Mainframe Improvements,
Equipment Replacement, Virus Scanning,
and Metadirectory Development request. He
explained that the funding would be used
to purchase the highest priority
equipment, including hardware and
software to meet anticipated customer
demand.
2144 Co-Chair Williams Asked if there were manufacturers working
on the project.
2157 Mr. Walsh Replied that some are. Many states are
partnering up with key providers.
2174 Mr. Walsh Reviewed the Upgrade Internet and
Intranet, and Implement Network
Technology request. He noted that the
project would combine circuits for voice
and data traffic by making use of voice
over internet protocol technology.
DEPARTMENT OF COMMUNITY AND ECONOMIC
DEVELOPMENT
2256 TERRY ELDER, Discussed the Securities Database
DIRECTOR, BANKINGS request. He emphasized that the database
SECURITIES AND affects how files are processed. The
CORPORATIONS, Database is a WANG database converted to
DEPARTMENT OF ORACLE and is close to 20 years old.
COMMUNITY AND Clerical staff has to retype data
ECONOMIC DEVELOPMENT multiple times. It also has limited uses.
2366 Mr. Elder He discussed the deficiencies of the
current database.
TAPE HFC 01 - 71,
Side A
10 Mr. Elder Continue discussing the deficiencies of
the current database. He noted it would
be difficult to develop the database in-
house. There is one programmer. The
Department can purchase a database. He
concluded that it would be more expensive
to develop a new database. There are some
existing databases that could be
purchased. An analyst was included in the
operating budget to assist with the
project. He stressed that the request is
reasonable.
448 Representative Croft Questioned if $300 thousand dollars were
sufficient for the purchase.
464 Mr. Elder Affirmed that the database could be
purchased for the requested amount.
DEPARTMENT OF CORRECTIONS
495 JOSEPH REEVES, Reviewed the Criminal Justice Management
DEPUTY DIRECTOR, Information's System Replacement request.
DIVISION OF The program replacement request was begun
ADMINISTRATION, in Nov. 1991.
DEPARTMENT OF
CORRECTIONS
846 Mr. Reeves Noted that there are 1,200 data elements.
The request would complete the last 10
percent of the project. He acknowledged
that the request would not end the
department's need for database funding.
923 Mr. Reeves Discussed the Computer Network Hardware
Replacement Upgrade request. He observed
that 34 sites are connected. Hardware
needs to be changed every 5 years.
DEPARTMENT OF FISH AND GAME
1056 Mary McDowell, Discussed the Commercial Fisheries Entry
Commissioner, Commission Permit and Vessel Licensing
Commercial Fisheries request. The request would be funded
Entry Commission through fees. The goal is to backup the
system to prevent disaster in case of a
failure and to upgrade.
1177
DEPARTMENT OF NATURAL RESOURCES
Mr. Bus Discussed the Land Use Data Base System
for Industry and Public Access request.
He noted that the system is old and land
records are now available on line. Access
is limited due to the antiquity of the
system.
ADJOURNMENT The meeting was adjourned at 3:35 p.m.
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