COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

FEBRUARY 26, 1996

ATTENDANCE:

B & A MEMBERS: Wishnie, Swanson, LaMotte, Darcy, Young, Abinanti, Delfino

OTHERS: C.E.’s Office: Gina Angiulo, John Zakian; General Services: Susan Egginton; Bierce & Kenerson: William Bierce; Budget: Joe Phelan; LWV: Barbara Strauss; Gannett: Ed Tagliaferri; CBAC: George Hosey; Legislators: Carsky, Donovan; BOL: Pat Gorski, Don Sandford, Robert Boland, Tina Seckerson

Co-Chairs Swanson and Wishnie opened the meeting at 3:05 p.m.

Discussion: (There is a cassette tape on file for more detailed information)

MIS REPORT: Mr. Bierce of Bierce & Kenerson, P.C. (consultant hired by the Board was in to discuss his report on the Privatization of the Data Center and Telecommunications Operations (On File)

• Some of the negative aspects of privation of MIS would be transition costs; loss of control by the County and the fact that it may not necessarily be cheaper.
• Positive aspects include the depth of experience the County would gain from the outside vendors.
• Mr. Bierce strongly recommends the hiring of a Chief Information Officer (CIO) to be in responsible for strategic initiatives as well as overall supervision and implementation of software development projects. CIO will provide leadership and make policy recommendations to the C.E. and the BOL as well as manage and supervise the vendor’s performance. In the private sector a CIO’s salary ranges from $100,000 - $200,000.
• With regard to the selection process Mr. Bierce stated that it was his understanding that the County refused to deliver detailed financial info with regard to personnel. Ms. Egginton disagreed stating that detailed personnel info was included in the RFP. According to Mr. Bierce two of the vendors found the info to be confusing and insufficient. Ms. Egginton suggested that she sit down with Mr. Bierce and discuss this in further detail as there seems to be some misunderstanding.
• Mr. Wishnie stated that the confidentiality issue has been raised as a reason not to outsource. Mr. Bierce stated that the outsourcing companies would not be able to stay in business if they breached confidentiality, therefore he did view that as a problem or a valid reason not to outsource.
• The issue of how many current employees would go over to the vendor was raised. Ms. Egginton stated that the respondents to the RFP were encouraged to hire existing staff.
• According to Mr. Zakian the four major respondents to the RFP were:

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - FEBRUARY 26, 1996

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• Mr. Boland inquired as to the status of the Budget Committee’s request for copies of responses to the RFP. Ms. Egginton stated that they are not sharing them yet as they are preliminary and contain proprietary information. She further stated that at such time they feel it is appropriate they will provide copies. Mr. Boland stressed his concern that the copies will come at the last moment and the BOL will be pressed for time in making a decision. Mr. Abinanti stressed his concern that the BOL is being treated as a second class citizen and stated that the BOL should be involved in the entire process. Ms. Egginton stated that the C.E. has made a decision that this matter should be pursued by the Executive Branch of government. Mr. Delfino asked who supplied the expertise on the County’s behalf. Ms. Egginton responded that the group included herself, John Zakian, Dennis Sullivan (GS), John Leonard (GS), and Nick DeSantis of Bennett Kielson.
• Mrs. Carsky stated that the County has a $21 million contract with Comdisco that expires in the year 2000. She inquired as to the County’s financial liability with regard to this commitment to Comdisco should we decide to outsource information systems. Mr. Bierce stated that this is a valid legal concern that needs to be addressed. Ms. Egginton stated that this matter was highlighted in the RFP and suggestions on how to handle it were solicited. Mr. Darcy stated that it is important to found out how the Comdisco contract can be settled early in the process.
• Mr. Bierce stated that he was distressed that the confidentiality issue is being used as a reason for withholding some information. As a consultant, and a lawyer, he is bound by confidentiality. He stated that he would like to see the Administration and General Services more forthcoming.
• The Co-Chairs thanked Mr. Bierce for taking the time to meet with the Committee.

• At 4:30 p.m. the Co-Chairs called for a 10 minute recess.
• At 4:40 p.m. the Co-Chairs called the meeting back to order.

MINUTES: On motion of Legislator Darcy, seconded by Legislator LaMotte, the motion to approve the Minutes of February 21, 1996 was carried by a vote of 5-0. (Legislators Darcy and LaMotte out for vote).

The Committee reviewed additional information provided by the Administration including a Masterplan, a five year capital plan and the 1996 budget. Mr. Abinanti stated that while he was not criticizing the content of the Masterplan he would like to know who is supposed to pass the Masterplan and certify that it has been approved. Mr. Zakian stressed that what was in front of the Committee is what was approved by the Fire Advisory Board in 1994 and a status update from the Planning Department. Mr. Abinanti requested the Co-Chairs send a memo to the County Attorney requesting a simple step-by-step outline explaining who controls the facility plan and what the procedure would be for changing the plan.

On motion of Legislator Abinanti, seconded by Legislator Delfino, the motion to approve the Bond Act was carried by a vote of 7-0.

There being no further items fro discussion, on motion of Legislator Delfino, seconded by Legislator Young, the meeting was adjourned at 5:05 p.m.