06-E Special Services Dept.
AGENDA INFORMATION SHEET
DESCRIPTION: To establish a new department within the City, being the Special
Services Department which will consist of a Director who will oversee the
Information Technology, Central Purchasing, Fleet Maintenance, and Facilities
Maintenance functions. The Director will perform other duties as assigned.
Employees involved in these functions will be supervised and will report to the
Special Services Director.
BACKGROUND: There has been a need for expanded operation of the
Information Technology, Central Purchasing, Fleet Maintenance, and Facilities
Maintenance functions within the City in order to more efficiently and
economically manage these various functions and use them fully to the City's
advantage.
RECOMMENDED ACTION: To approve an Ordinance establishing said Special
Services Department.
STAFF CONTACT: Tony Williams, City Manager, and Gene Anderson, Director
of Finance.
COST: The Special Services Director's annual salary will be $67,626 plus
$19,354 worth of employee benefits for a total of $86,980. The funds to pay for
the Special Services Department will be paid for from within the total budget
previously approved by the City Council.
COUNCIL DATE: Monday, January 9, 2006.
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DRAFT
F:ATTORNEY\RESWORK\CURRENT\ Special Services Department Ord
January 3, 2006
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, ESTABLISHING A NEW SPECIAL SERVICES
DEPARTMENT; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, it has been determined that there is a need for a Special Services Department
in the City of Paris to more efficiently and economically manage the Information Technology,
Central Purchasing, Fleet Maintenance, and Facilities Maintenance functions ofthe City of Paris;
and,
WHEREAS, the funding for said Special Services Department will be paid for from within
the total budget previously approved by the City Council, by operational efficiency.
WHEREAS, the City Council is desirous of adding a Special Services Department in the
City of Paris, and the same should in all things be approved; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby in all things
approved.
Section 2. That a Special Services Department be, and is hereby, established in the City of
Paris.
Section 3. That said Special Services Department will consist of a Director who will
oversee the Information Technology, Central Purchasing, Fleet Maintenance, and Facilities
Maintenance functions. The Director will perform other duties as assigned. Employees involved
in these functions will be supervised by and report to the Special Services Director.
Section 4. That the funds to pay for said Special Services Department will be paid for from
within the total budget previously approved by the City Council.
Section 5. That this ordinance shall be effective from and after its date of passage.
PASSED AND ADOPTED this 9th day of January, 2006.
Curtis Fendley, Mayor
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ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
John D. Lestock, Assistant City Attorney
T
Maybe everything really isbigger inTexas.
Under HB 1516, the Texas Department of Information Resources (DIR) possesses some important new powers: it can now require
agencies to buy hardware, software and IT services from DIR-negotiated statewide contracts; it now oversees the state's consoli-
dated data center equipment and operations; and it will create and operate "state technology centers" to consolidate agencies'
IT infrastructure in such areas as network security, electronic grants and telecommunications.
All of this will unfold over the next few
months. Agencies and the DIR have until
March 31. 2006 to sign contracts setting
the terms and conditions under which
the DIR will deliver services to agencies.
The DIR isn't waiting around for people
to come knocking on its door. Its Strate-
gic Initiatives Division already created an
interagency working group to plan for cre-
ation of the state technology centers.
DIR Executive Director Larry Olson
tapped familiar faces in state government
to oversee two divisions key to the consoli-
dation's success.
Brian Rawson - former CIO of the
Texas Education Agency - directs the
DIR's Service Delivery Division; and Kim
Weatherford - former director of IT for
the departments of Aging and Disability
Services and Assistive and Rehabilitative
Services - is heading the DIR's Statewide
Technology Operations Division.
Betting on Consolidation
Support for a radical overhaul of the
DIR's power - and a sharp curtailing of
state agencies' power to create their own
IT environments - built slowly in the Leg-
islature. In Texas' case, it all started with
something as innocuous as data centers.
"Several years ago, the Legislature
started down the path of data centers,"
said Rep. Carl Isett, R-Lubbock, a
fifth-year legislator and author ofHB 1516.
"But there was never any motivation for
the agencies to use them. We didn't man-
date that agencies use the data centers. As
technologies emerged and opportunities
continued to come forward, we were al.
ways still stymied by the institutional re-
sistance of the agencies."
After examining agencies' use of tech-
nology and how IT relates to their core
missions, Isett recalled, legislators began
separating out business functions that had
little to do with those core missions, soon
identifying IT as such a business function.
As part of this change in perception, the
Legislature kept after the DIR to expand
the data centers, and to work with agen-
cies on overall procurement and major
purchases in particular, even though the
agencies were still autonomous and didn't
have to follow the DIR's lead, said Isett.
"We kept telling DIR to effect cost sav-
ings through the data centers or disaster
recovery centers, and they had no power,
really, to do that," he said. "So all they did
was ask the agencies louder every year
- after we screamed at them, they would
scream at the agencies."
After a series of meetings with the
DIR during 2004, legislators
grew comfortable with the idea
of IT consolida- tion, and with
drafting legisla- tion to make it
happen, Isett said. This is a politically dan-
gerous area for legislators to venture into.
Observers of California's political
climate say the potential for collateral
damage from a highly publicized IT fi.
asco is a big reason legislators got scared
of introducing a centralization bill in
that state.
Statewide IT consolidation may be risky,
but Isett saw the alternative as even worse.
"It was at least, if not more politically dan-
gerous to do nothing," he said. "To not maxi.
mize taxpayer resources is, I think, always a
politically dangerous place to be in."
In Texas, the sheer number of agencies
able to buy IT goods and services with next
to no oversight created a significant sink-
hole in the state's budget.
"We appropriate them 'x' amount of
money for IT, and every year they come
back and ask for billions of more dollars,"
Isett said. "It became more damaging, po-
litically, to us to not control this process.
We had one agency of 12 people - one of
our smallest agencies - come ask for half
a million dollars for IT."
Looking In
It's no secret that
state agencies value
running their own
IT shops, and Texas
agencies aren't any
www.govtech.net/texastechnology _19
different. It's also no secret that HB 1516
is state law, and everybody has to get used
to the new order.
Victor Gonzalez, CIO of the Texas De-
partment of Agriculture, said he expects
the consolidation to make life easier for
him as the CIO of a state agency, though
the picture is still a bit fuzzy.
"Since it's in the beginning stages, the
things that are in scope or out of scope
_ meaning the things that will go to the
[state] data center - are still being de-
fined," Gonzalez said. "Until that's done,
we're not certain whether our file servers,
"The things that get a little hairier are
file server and e-mail, calendaring and all
those sorts of products, because you want
to maintain flexibility in granting folder
privileges, for example," Gonzales said.
"Yet you want to make sure you're not pay-
ing too much for that service."
A Different DIR
As agencies and the DIR create new
working relationships, another interesting
question the consolidation raises is what
came first - HB 1516 or a new DIR?
Olson took the job of both Texas CTO
"Since it's in the beginning stages, the things that are in scope or out of
scope - meaning the things that will go to the [state] data center - are
still being defined." - Victor Gonzalez, CIO, Texas Department of Agriculture
for example, have to go to the data center or
whether it's just application-level servers."
Gonzalez is part of an advisory commit-
tee of state agency CIOs, which was created
by the DIR to seek input on the consolida-
tion process. That organization represents
an important step, Gonzalez said, in easing
the tension between agencies' traditional
independence, and the DIR's new role and
heightened level of authority.
"Given that the legislation passed and
there's new leadership at the D1R, people are
less reluctant to try to participate:' he said.
"Also, becauseoftheopenness with which the
D1R is approaching things, that helps a lot.
We're at the point where everybody realizes
and recognizes that this is going to happen,
and the more we contribute to that cause, the
more control we'll have over what happens to
every agency. ..
Gonzalez said he's seen
the DIR take a cautious
approach to defining the
consolidation's scope - an
approach that's working well
so far. In an ideal world, he
said, agencies wouldn't care
about the boxes and who
managed them; and any-
thing having to do with the
agencies' business, such as
applications and application
development, would be man-
aged by individual agencies.
and executive director of the DIR in April
2004. He had been out of the public sector
for several years after serving as the first
CIO of Pennsylvania from 1995 to 1999,
where he orchestrated data-center consoli-
dation and moved state agencies to a com-
mon e-mail platform, among other cost-
saving efforts.
Pennsylvania reported saving $270 million
in IT infrastructure expenditures because of
consolidation efforts, Olson said in one of his
first reports to the Texas Legislature - and
Texas can save even more money.
But the consolidation is about more than
saving state government money, he said.
"The biggest benefit is the ability for us
to really strengthen our common efforts
to build an IT enterprise for Texas," Olson
said. "Once we start working closer togeth-
er between agency and agency, that is the
foundation that will allow us to move so
much further as a state.
"It's going to be the most long-term bene-
fit," he continued. "In the past, agencies have
worked together, but it's been on a piecemeal
basis. HB 1516 moves us aggressively to that
shared environment and common infrastruc-
ture that's going to benefit everybody."
Gonzalez said there's no question the
DIR of 2005 is a different animal than the
D1R he's observed over the five years he's
worked for the Department of Agriculture.
"The old DIR was there to provide stan-
dards and guidance, but not really to get
"?J
'~l.
into the business of IT for each agency,"
Gonzalez explained. "This D I R- is like a
more centralized IT department that actU-
ally runs everybody else, which isn't neces-
sarily a bad thing. It's just very different
from what used to occur. Now, with HB
1516 passing, the DIR has the authority to
do a lot of the things it had been wanting
to do - which is save the state money by
consolidating IT."
A piece of legislation like HB 1516,
which clearly defines the D1R's sphere of
influence, gives the department the nec-
essary firepower to make things happen.
The bill establishes a D1R different than
its predecessor, while sending a message
to other agencies that the Legislature is se-
rious about IT consolidation, and is quite
willing to give the DIR a big stick.
That means a lot in Texas, observers say,
because the Legislature wields substantial
power. The governor's office is fairly weak
in that no cabinet of department heads re-
ports to the govern.or - because there is
no cabinet - and governing boards over-
see state agencies, giving them a large de-
gree of independence.
Still, Isett said the bill wouldn't have
passed the Legislature if members weren't
confident in Olson and the DIR, and ex-
tremely frustrated with state agencies.
"Everyone of these agencies, regardless
of size, was running their own show," Is-
ett said. "The question had to be asked: Do
they have the resources internally to make
good business decisions?"
At first, Isett said, the Legislature had
serious questions about the soundness of
agencies' business cases for IT initiatives
and purchases; the level of thought behind
those initiatives; the degree of interaction,
interoperability and compatibility between
agencies' IT systems; and whether agencies
could share databases or software services.
"None of those questions were being
asked on any IT purchases," he said. "We
simply didn't have good control. and we
didn't enter into good contracts. We're
trusting D1R with a great responsibility,
and historically, they haven't always dem-
onstrated that that trust is well founded.
But I think that under the current manage-
ment, DIR has really shown it is ready to
handle this kind ofresponsibility."
i"
issue, it gets so complex that you have trou-
ble weighing betw~en what the stories are
as to why an IT project failed or what the
problems were. If we can have an agency
that's savvy and accountable for all of it -
to the members that made a lot of sense."
Centralizing power into a stand-alone
IT agency is a move that's bound to cause
some angst in state agencies. When legis-
lation creating the Department of Infor-
mation Technology (DOlT) in California
was first introduced, other state agencies
called in outstanding political favors to en-
sure the bill was weakened just enough to
limit DOlT's reach.
"There probably was a little bit of
behind-the-scenes objections because agen-
cies don't like to lose their autonomy,"
Duncan said. "That didn't really emerge as
a killer, and quite frankly the mood of the
Legislature this session was to ignore that
sort of turf-building. The Legislature was
pretty independent of those types of specific
complaints by agencies."
Though it's true Texas has been extremely
fragmented in its technology management,
there has been an shift in philosophy over
the last three years that set the stage for H B
1516, said Dustin Lanier, the DIR's director
of strategic initiatives. The shift started with
SB 1701 in Texas' 78th Legislature, he said,
a 2003 bill that sought to broaden the DIR's
role in managing agencies' IT and telecom-
munications projects.
The state has been pushing for con-
solidation for some time, but lawmakers
Managing Centrally
In his first report to the Texas Legislature,
A Foundation for Change: Leveraging a State-
wide Technology Infrastructure, Olson said 90
percent of the nearly $2 billion invested an-
nually in IT resources by state agencies and
universities is spent on an agency-by-agency
or project-by-project basis.
Based on results from surveying agen-
cies on spending patterns, the DIR's report
estimated that more than 60 percent of the
state's annual IT expenditures go to buy-
ing basic operational infrastructure, such
as IT operations, user support services and
back-office enterprise applications.
That pell-mell IT spending caught the
attention of Texas legislators and created
widespread support for HB 1516's IT cen-
tralization strategy, said state Sen. Robert
Duncan, R-Lubbock, who sponsored the
bill in the Texas Senate.
Duncan, who's been a member of the
Senate Committee on finance since 1999,
said he's heard myriad appropriations
requests for IT, all of which shared no
connection or commonality.
"There's never seemed to be any real pro-
gram on how to maximize the state's buy-
ing power, as well as the efficiencies that can
be achieved by uniformity and expertise in
evaluating needs," Duncan said. "Where we
have seen problems in the past is when the
people doing it didn't have the expertise, nor
did they have the ability to learn from the
mistakes others have made."
Despite learning hard lessons over the
years on how agencies should approach
IT procurement and projects, he said,
Texas suffered because those lessons
weren't shared between agencies. The
state needed a centralized IT agency to
play that role and force agencies down a
common path.
"We set the DIR up earlier to do that, but
never gave the agency the ability or power
to have the weight they needed to get things
done properly:' said Duncan. "Those of us
who've had experience with this, we've seen
the mistakes that have been made. We'd
rather have one agency accountable for IT.
"You'd rather have one agency to call
upon whenever you're having IT problems,
as opposed to 20 agencies:' he continued.
"Whenever you start trying to dig into an
wanted to make sure the state woUld ha
a chance to succeed. .'';'''V''f:~\ ,
"Texas has taken a slightly different p~th~.
than some of the highly centralized tech~
nology governance models," Lanier said.
"What I think differentiates what is going
on in Texas is a clear commitment that DIR
will focus on the areas of common inter-
est and support agency independence to
fulfill their unique missions through appli-
cations and process automation. HB 1516
is a shared responsibility for Texas govern-
ment to act on efficiencies when they are
present, while preserving flexibility for
agencies to act on their unique missions.
We will consistently calibrate with state
leadership to ensure we are focused on the
right outcomes at all times."
Liking What They See
Because the consolidation is so new,
it's too early to determine its impact on
agencies' day-to-day operations. But agen-
cies do recognize the pluses and minuses
of the ongoing consolidation effort, said
Adam Jones, associate commissioner for
Operations and fiscal Management of the
Texas Education Agency (TEA).
for the TEA at least, Jones said, IT con-
solidation means offloading the big utility
computing functions - data centers, server
administration and network administra-
tion - to the DIR.
"Agencies are quite often dependent on
heroic efforts by staff," Jones said. "They
get to the point where they're understaffed,
.
.
www.govtech.netltexastechnology _21
where they rob infrastructure to handle
more mission-critical functions in program
areas, and effectively outsourcing big func-
tions can pay huge benefits to us."
Outsourcing such functions does un-
fortunately come with a little negative bag-
gage. Jones said it will take some time to
overcome the natural apprehension to look-
ing outward for assistance, because agency
staff are used to relying on their colleagues
for network support or related help, and a
degree of comfort is built into knowing help
is a couple of doors down the hallway.
But Jones said he's concerned about
something else entirely.
"I'm much more nervous about flight
risk," he said. "I'll probably lose some
good network administrators before DIR
can fully consolidate those services for us.
When people get nervous about their jobs,
it's likely that I'll lose really good folks with
institutional knowledge, and either have to
not replace them or have to
augment them with outside
contractors - which might
be at some expense."
Still, the D1R is taking suf-
ficient time to do its home-
work regarding agencies'
concerns, Jones observed, and
isn't strong-arming agencies
during the negotiations over
the service contracts.
"I do like what I see, and that
is an agency seeking a lot of
input from the agencies that
are going to be impacted by
its actions, which is some-
thing you don't always see in
government," he said.
The DIR is also taking its
time in. determining which
functions mayor may not
wind up under its control. At
first glance, agencies will re-
tain application and develop-
ment staff, and the DIR will
absorb agency IT staff mem-
bers who run basic functions
common to all agencies.
"Then there's some folks
in the gray area, like data-
base administration," Jones said. "Some
of those folks will stay with agencies.
Some of those will not. DIR has gone back
agency-by-agency, looking more precisely
at what made sense to outsource, and
what didn't."
Enterprise Blueprint
Who gets to do what is something best
decided by everybody affected, said Olson,
and it's natural for agencies to wonder
which functions they'll lose and which
they'll keep.
"This isn't something DIR makes a
decision on," Olson said, adding that an
interagency work group has been meet-
ing with agencies to discuss the issue. "We
have to have that involvement from the
agencies -let's all agree what's in the box
when we define data-center and disaster-
recovery services. We're fleshing those de-
tails out now."
Olson said agencies have wanted to
move toward a consolidated IT environ-
ment, but were frustrated by the lack of
a plan from which all participants could
work. The Texas Association of State Sys-
tems for Computing and Communications
and similar groups worked hard to try to
build an enterprise approach, he said, but
those outside-in efforts weren't matched
inside state government.
The message Olson and his five division
directors are putting out to agencies is that
this consolidation isn't going to take the
form of a set of mandates handed down
from on-high.
"This is not about increased authority
for DIR," Olson said. "It's about increased
responsibilities and shared responsibilities
with us and the state agencies. We have to
do it together. It's not a DIR-down kind of
thing. If we do that, it's going to fail, and
we won't have that infrastructure of the fu-
ture to really build on.
"It's clear to us, and I think to all the
agencies, that we have to work together
very closely as we move forward in all
these different areas."*,