Form revised December 4, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Department of Information Technology (DoIT)	Robert Kaye/684-3142	Matthew Eng/684-8157

Legislation Title:

AN ORDINANCE related to the Department of Information Technology; removing a budget proviso that restricts an appropriation in the 2007 Adopted Budget, accepting the summary business case presented by the Department of Information Technology, authorizing the next phase of planning for the Technology Infrastructure Optimization project; and authorizing the carry forward of the 2007 appropriation for this project in the Department of Information Technology’s Technology Leadership and Governance Budget Control Level into the 2008 fiscal year.

· Summary of the Legislation:

This legislation lifts the restrictions set forth by a proviso in Green Sheet 96-1-A-1, which limits spending of an appropriation in the Department of Information Technology’s (DoIT’s) Technology Leadership and Governance Budget Control Level (BCL) for the Technology Infrastructure Optimization (TIO) project.  Removal of the proviso restriction will allow the full expenditure of funds allocated in DoIT’s 2007 Adopted Budget ($1,030,000) for the TIO project.  The legislation also authorizes DoIT to undertake the second phase of planning for the TIO project.  Finally, the legislation provides that any portion of the $1,030,000 appropriation to DoIT for the TIO project that is not spent or encumbered in 2007 will automatically carry forward into the 2008 fiscal year. 

· Background:

A total of $1,030,000 was placed in DoIT’s 2007 Adopted Budget for the TIO project.  The TIO project involves planning for the migration of the City’s email and file/print infrastructure from a more complex and high maintenance multi-vendor software platform to an integrated software platform.  DoIT had anticipated spending $374,000 for the first phase of planning with the remainder to be spent for more detailed planning in phase two.  

As part of adopting the 2007 budget, the City Council enacted a budget proviso relating to the TIO project specifying that “[n]o more than $374,000 of the money appropriated for 2007 for the Department of Information Technology’s Technology Leadership & Governance BCL may be spent for the Technology Infrastructure Optimization project until authorized by a future resolution.”  The Council also stated in the proviso that “[t]he Council anticipates that such authorization will be provided if the Department provides a compelling business case and management plan for the project.”  Since the 2007 budget was adopted, DoIT has completed the first phase of planning and has provided Council with a series of research papers addressing issues identified by Council staff.  To meet the criteria outlined in the proviso, DoIT provided Council with a report entitled “Technology Infrastructure Optimization (TIO) Summary Business Case” (“Summary Business Case”), which presents an overview and analysis of previous documentation provided to Council, details a management plan for the project, and makes recommendations for implementing a migration to an integrated Microsoft email and file/print software platform.  The Summary Business Case is presented as an attachment to this legislation.

· Please check one of the following:

__ _ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

_X___ This legislation has financial implications. (Please complete all relevant sections that follow.)

Note:  This legislation removes restrictions on the use of funds that are already appropriated to the Department of Information Technology in the 2007 Adopted Budget and carries unspent funds over to 2008.

Please list attachments to the fiscal note below:

None.