Legislature(2005 - 2006)SENATE FINANCE 532
03/14/2005 09:30 AM FINANCE
Download Mp3. <- Right click and save file as
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
10:42:40 AM SENATE BILL NO. 46 "An Act making capital appropriations and appropriations to capitalize funds; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. The Committee heard presentations on the Governor's capital funding requests for the Department of Administration. Department of Administration State of Alaska Network Security Infrastructure Upgrades $3,537,500 Info Svc fund Reference No.: AMD40606 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2010 On January 18, 2005 the State of Alaska Wide Area Network was the target of a cyber attack which resulted in the defacement of a web server owned by the Department of Health and Social Services. Upon further investigation, it was determined the extent and scope of the cyber attack was much larger than to a single device. In a cooperative effort with SOA agencies, approximately 110 servers appeared to have experience[d] similar "signatures" of this attack. The significance of these attacks prompted notification to the MS.-ISAC (multi state information sharing and analysis center.) ERIC SWANSON, Director, Division of Administrative Services, Department of Administration, testified this project is an extension of the $5 million FY 04 supplemental appropriation for security activities. STAN HERRERA, Director, Enterprise Technology Services, Department of Administration explained that a portion of these funds would be expended to assist in addressing system vulnerability. The remainder of the funds would be utilized to complete the project undertaken with the FY 04 supplemental appropriation to purchase hardware and software in response to the cyber attack identified by a federal task force. 10:46:24 AM Alaska Land Mobile Radio (ALMAR) Infrastructure Upgrades $6,405,000 general funds Reference No.: AMD40605 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2010 Phased-underway Funding in the amount of $6.175 million is needed in FY 05 to uphold the State of Alaska's obligation to the Department of Defense in a joint partnership for the Alaska Land Mobile Radio (ALMR) Project. Mr. Swanson noted an upcoming presentation to the Committee on this project. 10:47:07 AM Statewide Administrative System Replacement Phase 1 - Human Resources and Payroll $20,000,000 Debt Fin fund Reference No.: 40081 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2009 One-Time Project The Department of Administration is responsible for operating statewide payroll and accounting systems. These systems are aging, and need to be replaced. Mr. Swanson outlined this request. KIM GARNERO, Director, Division of Finance, Department of Administration, read a statement into the record as follows. When I came to this job 6 years ago, I recognized the vulnerability we have with our existing payroll system. At that time there were just over 100 licensed users of Tesseract software, and now there are less than 50. The days of this software product's viability are numbered, and that is something that impacts almost all of state government. This application processes payroll for the court system, the legislature, and the executive branch, including most of the corporations (all but University, RR, AHFC). Replacing the payroll system for an organization as large and complex as the State of Alaska is major undertaking. We received capital appropriations to begin the process in FY 2003 and FY 2004. We've spent about half of the $900,000 appropriated to date, mostly on this business case. The work underlying this document took about a year to complete and the scope was not just payroll and human resources, but all statewide administrative systems. We included accounting, and procurement, and budget functions and involved the business process owners for each function. The business case was completed in September 2003 and it is available on the Division of Finance website. Reading it, you'll find our administrative systems need serious overhaul. · Our accounting system is 20 years old, written in COBOL, and becoming more difficult to maintain. · Our human resource systems are a mix of standalone databases. · We have no statewide system for procurement whatsoever. · And the systems we do have, don't talk together well. Over the next several years, we are faced with the job of implementing current technology to address these deficiencies. We decided to start with the payroll and human resources systems, because that is where our greatest risk lies. A necessary related project is a reporting database that will contain information from both the old and new systems for historic and management needs. The eventual goal is for the reporting database to include data from multiple administrative functions, which would be a great improvement over our current reporting capabilities. Our plan is to work through the complicated task of defining our requirements, choosing the best solutions, and negotiating long-term contracts that we can afford. The actual nature and cost of the solutions will not be known until we work through the process, and we can't work through the process without an appropriation to fund it. Co-Chair Wilken noted the funding source is "debt financing" and asked if this is a line of credit. Ms. Garnero understood the same. 10:50:39 AM Public Building Facilities Projects $9,902,000 $6,902,000 Bond Funds $3,000,000 Public Bldg fund Reference No.: 39025 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2004 - 06/30/2005 On-Going Project Funding is necessary for continued maintenance of state owned facilities that make up the group know as Public Building Fund facilities. These facilities include the State Office Building, the Alaska Office Building, the Community Building, the Douglas Island Building, the Atwood Building, the Fairbanks Regional Office Building, the Court Plaza Building, and the Dimond Court House. Mr. Swanson reported that priority deferred maintenance needs have been identified for all the buildings. He noted this list changes as boilers malfunction or other emergency repairs become necessary. Co-Chair Wilken asked if the bond funds are related to the settlement from the case involving Amerada Hess Corporation and other oil producers. Mr. Swanson answered yes. Co-Chair Wilken clarified that the public building fund is the account paid into by agencies occupying space in the included facilities. Mr. Swanson affirmed. 10:52:31 AM Enterprise IT Projects $3,706,000 Info Svc fund Reference No.: 40437 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2010 One-Time Project This category consists of the 10 IT implementation projects developed with a contract with Unisys Corporation, and other enterprise projects requested by State agencies. Mr. Herrera told of the IT projects and operations constructed for various departments that total approximately $260 million. This request would implement systems that would increase efficiencies to the State and include a server consolidation, help desk consolidation, and asset management. 10:53:32 AM Data Center and Equipment Upgrades $3,297,000 Info Svc fund Reference No.: 40435 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2010 Phased - new The purpose of these projects is to upgrade the outdated PBX phone systems; upgrade the failing environmental systems in the data centers such as air conditions, fire suppressant, and power distribution; update the Anchorage Data Center to make it "production ready" for Anchorage based hosting and to mirror Juneau operationally for 24x7 backup purposes; and to replace the IBM Mainframe serve as it is projected to reach processing capacity in early FY06. Mr. Swanson overviewed this item. Mr. Herrera stated this request is for funding for the establishment of a disaster recovery system. The State operates two data centers, one located in Juneau the other located in Anchorage. Co-Chair Wilken asked if Reference No. 40437 is a phased new revenue project. Mr. Herrera affirmed. 10:54:48 AM Maintenance Projects for Facilities Outside the Public Building Fund $3,098,000 Bond Funds Reference No.: 39034 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2007 On-Going Project Funding is necessary for maintenance projects in facilities outside the public building fund. Mr. Swanson gave examples of facilities not included in the Public Building Fund. A list of priority projects has been compiled for these facilities. Senator Olson asked why these buildings are not included in the Public Building Fund. Mr. Swanson replied that the Public Building Fund was initially established as a pilot project and included eight buildings. The program has been successful and considerations are underway to include additional buildings. Senator Olson asked if funds would be more readily available for these projects if the facilities were included in the Public Building Fund. Mr. Swanson responded that the manner of funding would change with rent being charged to the State agency occupants of the buildings. Some buildings, such as the Governor's residence would be addressed individually. Senator Stedman asked if the funding for this item relates to the fund source referred to as Amerada Hess, as well. Mr. Swanson answered yes. 10:56:57 AM State of Alaska Telecommunication System (SATS) Projects $1,615,000 Info Svc fund Reference No.: 40438 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2010 One-Time Project These projects will provide maintenance on the degraded SATS infrastructure which is the backbone of the state Wide Area Network (WAN) and the Alaska Land Mobile Radio (ALMR) projects. Also included is an inventory of all equipment per site and an assessment of structural integrity and performance. Mr. Swanson overviewed this request. Mr. Herrera explained this funding would be utilized for various projects, including purchasing battery upgrades for 12 sites, and SATS test equipment replacement at approximately 128 sites. Some of these sites are over 30 years old and site assessments must be completed to determine necessary upgrades. The project would determine the users of the systems and reinstate the chargeback method that was eliminated at the time the State entered a contractual agreement with a telecommunications company. That contract has since been terminated and the chargeback method is again necessary. 10:58:40 AM Mr. Swanson clarified that the Governor's proposed FY 06 operating budget contains a section that capitalizes the funds proposed for these capital projects. 10:59:09 AM License Plates, Tabs, and Manuals $385,000 Rcpt Svcs fund Reference No.: 40440 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2010 On-Going Project Funding will provide for the purchase of license plates and tabs to maintain statewide inventory levels necessary for their required continued issuance. The division is required by statute (AS 28.10) to issue plates and tabs and cannot run out. The funding also provides for the purchase of the four different driver manuals and law books that must be available at all DMV offices. Mr. Swanson read the summary information. 10:59:45 AM DMV Take-a-Number System $100,000 Rcpt Svcs fund Reference No.: 40073 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2005 - 06/30/2007 Phased-new Project Expansion of the take a number system used in the Anchorage office. Mr. Swanson explained this system allows customers to "take a number" and know the amount of time before they would be served. This also provides a method to determine the amount of time taken to provide services. 11:00:56 AM AOGCC Leasehold Improvements $75,000 AOGCC Rcpt funds Reference No.: 40072 Category: General Government Location: Anchorage Areawide Election District: Anchorage Areawide Estimated Project Dates: 07/01/2005 - 06/30/2007 One-Time Project Funds will be used to purchase a space saving filing system and to purchase and install a ventilation system for the confidential samples storage room. Mr. Swanson explained that the space would be remodeled and reconfigured to allow for the new filing system. Also, because the mineral samples held in the office emit toxic odors, a ventilation system would be installed for the comfort of staff. Co-Chair Wilken ordered the bill HELD in Committee.