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2. OPERATIONAL BUDGET REVIEWS FOR ADMINISTRATIVE SERVICES - EXAMEN DES BUDGETS DE FONCTIONNEMENT DES SERVICES ADMINISTRATIFS -
SERVICES DE LA TECHNOLOGIE |
Committee Recommendation
That Council
approve the final 2008 Operational Budget of the Information Technology
Services Branch, as presented in the attached updated 2008 operating budget
pages.
Recommandation du comité
Que le Conseil approuve le budget
final de fonctionnement de 2008 des Services de la technologie, tel que
présenté dans les
pages mises à jour du budget de fonctionnement de 2008 ci-jointes.
For the Information of Council
The Corporate
Services and Economic Development Committee also approved the following
directive:
That staff be
directed to incorporate anticipated efficiency savings from investments in
technology in the efficiency column of the budget pages for affected branches
for future budgets.
pour la gouverne du
conseil
Le Comité des services organisationnels et du développement économique a aussi approuvé la direction suivante :
Que l’on
enjoigne le personnel d’incorporer toutes les économies d’efficience provenant
des investissements dans la technologie à la colonne des efficiences des pages
du budget réservées aux directions touchées pour les budgets à venir.
Documentation
1. City Council report dated 15 February 2008
(ACS2008-CMR-CSE-0016).
2. Extract of Minute, 22 February 2008.
Report to / Rapport au :
Long Range Financial Plan Sub-committee
Sous-comité du plan financier à long terme
and Council / et au Conseil
Submitted by/Soumis par : City Council / le
Conseil municipal
Contact
Person/Personne ressource : Diane Blais,
Committee Coordinator / Coordonnatrice du comité
City
Clerk’s Branch / Direction du greffe
(613)
580-2424 x, 28091
Diane.Blais@Ottawa.ca
SUBJECT:
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OPERATIONAL BUDGET REVIEWS FOR ADMINISTRATIVE SERVICES
– INFORMATION TECHNOLOGY SERVICES |
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OBJET :
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EXAMEN
DES BUDGETS DE FONCTIONNEMENT DES SERVICES ADMINISTRATIFS - SERVICES DE LA
TECHNOLOGIE |
That the Long Range Financial Plan Sub-Committee recommend Council approve the final 2008 Operational Budget of the Information Technology Services Branch, as presented in the attached updated 2008 operating budget pages.
Que le Sous-comité du plan financier à long
terme recommande au Conseil d’approuver le budget final de fonctionnement de
2008 des Services de la technologie, tel que présenté dans les pages mises à jour du budget de
fonctionnement de 2008 ci-jointes.
In December 2007, during its deliberations on the 2008 Budget, Ottawa City Council approved a motion calling on the Long Range Financial Plan (LRFP) to conduct operational budget reviews for administrative services.
At its 9 January 2008 meeting, Council considered and approved a subsequent motion, which amended the schedule for the LRFP’s review of the various branches.
In order to assist the LRFP in
its work, Financial Services staff has provided updated budget pages for the various branches being
reviewed. These pages have been revised
to reflect any changes approved by Council during its budget deliberations.
The budget pages for the Information Technology Services Branch are attached to this report and are numbered sequentially, however they also include the reference page to the 2008 Draft Budget document in case members of Council have made notes in their budget books and want to refer to them.
This item will be advertised in the local dailies as part of the Public Meeting Advertisement on Friday preceding the Long Range Financial Plan Sub-Committee Meeting.
Any changes approved by Council
will amend the City’s 2008 Operating Budget.
Document 1
- Updated
2008 Operating Budget Pages – Information Technology Services
Staff from the various branches to implement any changes approved by Council.
OPERATIONAL BUDGET REVIEWS FOR ADMINISTRATIVE
SERVICES - Information Technology
Services
EXAMEN DES BUDGETS DE FONCTIONNEMENT DES
SERVICES ADMINISTRATIFS - SERVICES DE LA TECHNOLOGIE
ACS2008-CMR-CSE-0016 CITY WIDE / À L'ÉCHELLE
DE LA VILLE
Ms. J. Harris-Campbell, Director, Information Technology Services and Chief Information Officer, spoke to a PowerPoint slide presentation, which served to provide the Committee with a brief overview of her branch’s mandate, performance measures, staffing levels, spending, business value, savings opportunities and risk factors. A copy of this presentation is held on file with the City Clerk.
Mr. Plamondon spoke to slide 9 of his PowerPoint presentation, which captured the review panel’s observations with respect to Information Technology Services.
Ms. Harris-Campbell responded to questions arising out of her presentation. The following summarizes the main points raised.
Speaking to the last statement on slide 24 of her presentation, she explained the current process for ensuring value for projects, which involved a panel of directors, and she believed the third party challenger was suggesting this be brought up a notch, perhaps to the executive management team, to review those decisions. She noted there would also be recommendations coming forward on this issue in the next report from the Auditor General.
Responding to a question with respect to consolidating the City’s various billing systems, Ms. Harris-Campbell discussed the opportunity to further leverage SAP. She advised that last summer, the branch had commission SAP Canada to come in and conduct, at no cost to the City, a value engineering study whereby they conducted an almost forensic review of the system to see where it had started, what had been done, and what opportunities had been missed, if any. As part of the study, SAP Canada would also do a future roadmap for further expansion and use of SAP in order to ensure the City got as much as possible out if its investment. In summary, she indicated the scope of the study would include a variety of business aspects, including those discussed earlier by Mr. Byrne as well as work around asset management for water, sewer, and so on.
The Director discussed her branch’s efficiency targets for 2008 and 2009 ($520,000 and $20,000 respectively) and explained the difference between the two years spoke to the availability of what she knew she would be able to deliver in the respective years. She referenced her over-all three-year target, which was $880,000 and the fact that she had a clear understanding of where her efficiencies would be achieved in 2008, as demonstrated on slide 30. She then pointed to the list of efficiencies under review, outlined on slide 31 of her presentation, and indicated she did not know yet which would be on the list for 2009. In closing, she expressed confidence that the branch would meet or exceed its targets.
Responding to questions with respect to SAP, Ms. Harris-Campbell confirmed that the City had invested upwards of $45M into the system and that, depending on the capital budget every year, the cost to operate the system was approximately $5M annually, which was in line with the budget put forward with the business case for the IBS project. She noted the City of Ottawa had the most complex SAP municipal installation in Canada. Therefore, she submitted the referenced support costs were competitive given the scope and nature of the SAP world.
At this juncture, Councillor Hume introduced a motion
calling for additional information in future budgets relative to technology
investments.
Committee then approved the item, as amended.
1. That the Long Range
Financial Plan Sub-Committee recommend Council approve the final 2008
Operational Budget of the Information Technology Services Branch, as presented
in the attached updated 2008 operating budget pages; and
2. That staff be
directed to incorporate anticipated efficiency savings from investments in
technology in the efficiency column of the budget pages for affected branches
for future budgets.
CARRIED as amended