ODOT State Data Center Payment Information

1
ODOT State Data Center Payment Information

• ODOT Executive Staff Meeting
• October 30, 2007
• presented by Ben Berry, CIO

2
A Big Thank You from ISB

• For the 2005 2007 biennium ISB requested
  limitation capability of 2.5M
• It appears that ISB only needs 1.8M. ISB thanks
  you for your support.
• Unfortunately.for the 2007 -2009 biennium we
  are looking to close a 9.8M gap as a result of
  SDC Governing Board agreement.

3
2007-2009 Financial Situation

• Billing for SDC provided services are estimated
  to cost 24.6M.
• State Government Service Charges in the budget
  provide limitation for 14.9M.
• Need a way to obtain additional limitation of
  9.8M.

4
What is making up these cost differences?
Direct Operations Cost are down

• Direct Costs are about the same as when ODOT ran
  its own data center.
• Direct Costs Personal Services plus SS less
  depreciation

5
What is continuing to make up the difference?
SDC Investment Costs now included

• CNIC COP Debt Principal
• CNIC COP Debt Interest
• Depreciation Costs
• DAS Administration Costs
• SDC 30-Days Working Cap

6
Total SDC Costs by Type
ISB Limitation
7
Options for SDC Funding

• ISB pays for 100
• Represents about 15 of the budget after fixed
  costs
• Reductions to programs and could jeopardize
  business
• Business and Central Services pays 100 of the
  cost based on any number of methods
• May affect services business provides
• Business may not have the funding
• Some combination between ISB and the Business
  funding
• Other options

8
Criteria to fill Limitation Gap

• Must be related to a technology expenditure
• Data must be readily available
• Data must be verifiable
• Needs to have a proportional effect on all areas
  of ODOT.
• Needs to be understandable
• ODOT Program Impact
• Legislative Budget Intent

9
Recommended Allocation Methodology Based on PC
Equipment
Table of payments based on usage of PC equipment.
10
Microsoft Enterprise License Agreement (MELA)

• Findings
• MELA price per client continues to provide value
• In different terms, agency could save 775,890
  this biennium for the privilege of paying
  2,672,227 over the next 7 years.
• Recommendation Continue with MELA standard

212
168
148
2007
2004
2001
11
ODOT Microsoft Enterprise License Agreement
(MELA) and Implementation Timeline
12
ODOT Microsoft Enterprise License Agreement
(MELA) and Implementation Timeline (Contd)
13
Hold PC Purchases for 07-09 Biennium
14
Allocation from Recommended Methodology Based
on PC Equipment
15
Alternative Allocation Methodology Based on FTE
Table of payments based on headcount.
16
Alternative Allocation Methodology Based on HWY
Other Fund
Table of payments based on Other Funded Budget.
(The highway number can be manipulated any number
of ways depending on decision parameters.)
17
DAS Estimated Revenue by Agency
18
Questions/Answers

• Discussion
• IT Executive Steering Committee Decision Point
  Nov 9, 2007
• Next Step Action Planning

19
CNIC Cost Repayment Long-Term Savings DAS
presentation Ways Means 06-20-05
What current business model would cost in future
biennia.
34.4
Debt Service 19.8 million
20.7
29.3
Debt Service 16.8 million
Costs reflect general inflation and PS step/COLA
increases