Resolution 48-12RECORD OF RESOLUTIONS
Nank.lno, Foon No. 30015
Resolution No.
Passed .20
A RESOLUTION AUTHORIZING THE CITY OF DUBLIN TO PARTICIPATE IN
AN APPLICATION FOR A LOCAL GOVERNMENT INNOVATION FUND (LGIF)
GRANT THROUGH THE STATE OF OHIO TO CONDUCT A FEASIBILITY STUDY
OF INFORMATION TECHNOLOGY SERVICES AND INFRASTRUCTURE
CONSOLIDATION.
WHEREAS, an adopted City Council goal is to build upon the City's existing practice
of shared services to explore new partnerships and possibilities; and
WHEREAS, the Local Government Innovation Fund (LGIF) was established in HB 153
to provide grants and loans to political subdivisions for local government innovation
projects that promote efficiency, shared services, co- production, and mergers among
local governments; and
WHEREAS, the City of Dublin is collaborating with the cities of Westerville, Upper
Arlington, Grandview Heights; Franklin County Metro Parks District; Prairie Township;
Metropolitan Educational Council; and Educational Service Center of Central Ohio to
study the feasibility of consolidating information technology services and
infrastructure; and
WHEREAS, the Metropolitan Educational Council will serve as the lead applicant, and
if awarded a grant will manage the project, including coordinating local government
partner meetings, hiring a feasibility study consultant, and grant reporting.
N01y, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin,
of its elected members concurring, that:
Section 1. The City Manager is hereby authorized to participate in the submission
of a Local Government Innovation Fund (LGIF) grant to study the consolidation of
information technology services and infrastructure and is authorized to execute other
documents as deemed necessary and appropriate to carry out the intent of this
resolution.
Section 2. This Resolution shall be effective upon passage in accordance with
Section 4.04(a) of the Revised Charter.
Passed this I R O - tA day of 2012.
Mayor - Presidi gg Officer
ATTEST:
Clerk of Council
48 -12
Office of the City Manager
City of Dublin Phone: 614- • Fax:b614 --410 -4490 1090
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager'I
Date: August 16, 2012
Initiated By: Michelle L. Crandall, Director of Administrative Services
Memo
Re: Resolution 48 -12 — Local Government Innovation Grant (LGIF) to Conduct
Feasibility Study of Information Technology Services and Infrastructure
Consolidation
Background
Resolution 48 -12 allows for the City of Dublin to participate in a Local Government Innovation
Grant (LGIF) application with several other local entities. This specific grant application is to
conduct a feasibility study for the possible consolidation of information technology data storage
and security, hardware and software procurement and support, and any other information
technology services and infrastructure that could reasonably be shared and /or consolidated
and that would result in increased efficiencies, security and /or cost savings. A detailed draft
project description is attached containing a listing of all services, infrastructure and
commodities that will be considered as part of this study. Based on the findings of this study,
the City would only pursue shared services that demonstrate cost savings or increased
efficiencies and that do not compromise IT data security or service reliability.
This LGIF grant application is being jointly pursued by the cities of Dublin, Westerville, Upper
Arlington, Grandview Heights, Franklin County Metro Parks District, Prairie Township,
Metropolitan Educational Council and Educational Service Center of Central Ohio. The
Metropolitan Educational Council (MEC), a central Ohio purchasing cooperative and information
technology center, will serve as the lead grant applicant. If awarded a grant, MEC will be
responsible for managing the project, including coordinating local government partner
meetings, hiring a feasibility study consultant, and grant reporting.
The grant amount being requested for this feasibility study is $100,000, the maximum that can
be requested under the grant guidelines. The grant requires a 10 percent match, which can be
cash or in -kind contributions of goods or services. It is anticipated that this 10% match will
easily be met by the various partners' staff time invested in completion of the study.
Recommendation
Staff is requesting passage of Resolution 48 -12. Should you have questions regarding this
memorandum, please contact Michelle Crandall at 410 -4403 (desk) or 206 -4886 (mobile).
Grant Application - Section 3 - DRAFT
Project Description (4000):
Political subdivisions in Central Ohio operate their own IT systems independent of other public
entities. Duplication of IT services has been identified as a key inefficiency that could be
addressed through an integrated, collaborative, IT shared services approach.
Currently, duplication of IT services includes commodity type services versus those services
needing more intimate knowledge about the participating organization.
These services include:
• Backup
• Infrastructure Disaster Recovery
• Server Hardware
• Data Center Space
• Network Services
• Security
• Email (includes backups, hardware management, spam filter management, applying
updates)
• Productivity Tools (such as Office)
• Standard Reporting
• ISP's
• Communications
• Administrative Applications (including GIS, work orders, permitting, etc.)
• Help Desk (including Culture and Expectations)
• Technical Support
• Upgrades
• Phone System
• Website Development and Maintenance
Budget realities and the evolution of affordable cloud computing, smaller and more powerful
server solutions, cost - effective server virtualization technologies, modern document
management systems and business process re- engineering create both motivation and
opportunity for collaboration. These new technologies and IT strategies have the capacity to
create new efficiencies and enhance data management and security for all parties.
The MEC /ITC and its team of collaborative partners, proposes to use LGIF dollars to analyze
and create a plan to develop the Public Sector IT Service Center that will make the Information
Technology (IT) systems for these entities more effective, and thus make these government
entities more efficient service delivery providers through a "shared services" model. To perform
this analysis and develop the plan, the MEC /ITC as lead partner, requests a $100,000 LGIF
grant to conduct a finely -tuned analysis and feasibility assessment to determine key issues
faced by each of the participating agencies, identify information system assets and liabilities
encountered within the current infrastructures, and identify how a shared services approach to
IT can address current limitations and inefficiencies. The entities involved have a strong
leadership structure and collaborative framework. The key aspect of this effort is to create an
environment to achieve greater efficiency in combined service delivery.
The MEC /ITC's collaborative partners include:
• City of Upper Arlington
• City of Grandview Heights
• City of Dublin
• Prairie Township
• City of Westerville
• MetroParks
• ESC of Central Ohio
These partners seek to identify and analyze:
• IT platforms
• Measure total cost of ownership of their technology tools
• Assess IT capacities of partner organizations and other regional public entities
• Map solutions that seek to better leverage existing IT capacities in a shared services
environment with contemporary solutions, IT standards and practices
The project will map opportunities for consolidation and structural realignment across IT
operations of the local government partners, including the larger entities of the City of Dublin,
City of Upper Arlington, City of Grandview Heights and the City of Westerville, along with the
much smaller jurisdictions of Prairie Township and the MetroParks. The objective is to
standardize solutions and applications and enhance data security and system performance,
while maintaining and /or improving each partner's ability to provide quality services to their
taxpayers. An additional component is the opportunity to spread fixed costs for larger partners
who have their own data centers by better utilizing current resources and excess capacity on a
scalable basis. This could help minimize purchasing of additional expensive capital equipment.
The analysis and planning effort will determine the best approaches to make eventual solutions
scalable so that other jurisdictions could be included in the future after the initial phase of
implementation is completed. After the initial phase of implementation, extensions of the IT
infrastructure could be made available to other villages, townships, schools, community
colleges, counties and other political subdivisions.
Shared Services within the area of IT will promote innovation, efficiencies, and collaboration as
the focus of this project. The analysis and planning effort will be crafted in a manner that will
move the partner agencies toward the development of the Public Sector IT Service Center to
serve their IT needs.
Past Success (1000):
This application falls under the LGIF targeted category of Shared Services.
In the recent past, the MEC /ITC has successfully implemented projects that promote efficiencies
and shared services among the school districts it serves.
Among these projects are:
Shared IT networking
Shared IT services
Web -based learning management system
Administrative collaboration and network program
Cooperative purchasing - technology office commodities
In addition to the MEC /ITC successes, this project will analyze an effective model of IT Shared
Services, GroundWork group (GWg) to learn what worked and what did not work as GWg was
being developed. GWg developed a model by which non - profit organizations could utilize
technology in a more cost effective manner by sharing the cost and resources across many
non - profit organizations.
This model is relevant to this project as GWg provided an environment for non - profits to
leverage the following capabilities in a shared services manner -
• Backup
• Disaster Recovery
• Network Services
• Security
• email
• Productivity Tools
• Reporting
• Administrative Applications
• Help Desk
• Technical Support
• Upgrades
Scalability (1000)
The project will focus on consolidated IT services solutions that are scalable and pose the
greatest prospect for efficiencies to assist all partners. Although the political subdivisions will
serve as the collaborative partners for this initiative, the analysis and planning effort is expected
in a result that will permit the expansion of this shared services approach to other entities in the
region and serve as a roadmap for others statewide.
The plan will provide a series of service offerings that the partner organizations can take
advantage of. The result will be that citizens and local businesses can enhance current service
levels, gain access to new customer service applications and receive a faster response from
public administrators. For larger agencies, this is an opportunity to share costs, for smaller
agencies, this is an opportunity to do more than would be possible if they attempted these
projects alone. This will allow smaller agencies to focus on their core business, while knowing
that they have access to knowledgeable IT resources.
The Public Sector IT Service Center Analysis and Planning effort will ensure that the model will
be developed to be scalable.
Probability of Success (1000):
As a classic shared service provider, MEC /ITC is the logical entity to take the lead on this
project. MEC /ITC has extensive experience in offering shared services to public school districts
in the counties it serves. The organization has developed a successful track record in providing
vital services to political subdivisions. MEC /ITC's organizational expertise will be essential in
identifying the capacities of the partner entities, and how the IT for these entities will be better
configured for efficiency.
To increase the chances of success, MEC /ITC will contract with QSI, an experienced IT
Consulting Firm to conduct the Public Sector IT Service Center Analysis and Planning project
and serve as project Manager and will do the detail analysis and planning. Also, Public
Performance Partners (P3), an experienced 501(c) 3 non - profit consulting entity, will provide
subject matter expertise related to counties, cities, townships, school districts and institutions of
higher learning plan and help to execute the cost - saving strategies.
Performance Audit/Benchmarking (1000):
A cost analysis will be completed to determine the percentage of IT expenses that are allocated
to aspects of the systems that could be part of a shared services arrangement. The analysis
planned under this application will drill down on the percentage of IT costs that relate to
commodity IT infrastructure, such as the cost of purchasing and maintaining servers as well as
commodity services such as email for each of the entities involved.
Similar studies and analyses provide a meaningful basis for the need among the entities in
Central Ohio. A State of Ohio 2011 analysis of its IT costs indicated 70% of these costs were
related to infrastructure and operations, and only 30% to software. By sharing the infrastructure
costs, do we expect to shift the balance to increase expenditures on software, to offer more
publically visible /valuable options to the citizens.
The goals of the collaborative partners are similar and overlapping. The partners seek to protect
and enhance service levels to the public, to become more efficient in delivering operational data
management, and to pursue a more robust regional business continuity (disaster recovery)
solution.
Economic impact (1000)
The way local governments work is changing. A more dynamic business and technology market
is causing local jurisdictions to be more adaptable. Taxpayers also are becoming more
technologically sophisticated and seeking more accessible and efficient government services.
The case for more efficient government, particularly in the area of technology offerings, is
gaining traction. New enabling technologies make IT consolidation a reality.
These strategies will be key tools in responding to the diminishing revenue environment in Ohio.
We anticipate saving partners at least 30% on their IT costs by better leveraging existing public
data centers and implementing cloud -based network solutions. Based upon total cost
projections of the collaborative partners, over the next three years this will result in cost savings
in the amount of $XXX.XXX.
The benefits of IT consolidation also reach beyond cost savings. The additional benefits include
increased simplicity of maintenance, heightened security, reduced environmental impact and
integration of new applications.
This effort will mine the current investments and identify those areas where a ROI exists.
Response to Economic Demand (1000):
The partners within this application know there must be more sophistication in government -
provided services in order for a geographic area to remain enticing to the businesses
community. By improving the sophistication of IT, the county and region become more
attractive to the business community.
Public entities, which are more efficient and approachable, are more likely to develop public -
private partnerships, and offer additional services, programs and funding for the community.
Westerville has implemented a model for its Community data Center and Fiber Network.
Central Ohio must compete with the other urban areas. A local region where entities are
working collaboratively, and where IT infrastructure is efficient and up -to -date, will increase its
attractiveness to business.
The Public Sector IT Service Center will entail:
• Less duplication
• Better utilization of resources
• Operations efficiency
• Faster provisioning
• Ease of maintenance
• Consistent training
• Newer tools
• Consistent policies
• Policy adherence
• Better architecture
• Equipment reuse
• Network modernization
• Private cloud applications
• Decreased threats of malware