STAFF FIGURE SETTING FY 2017-18 CAPITAL CONSTRUCTION ...leg.colorado.gov/sites/default/files/fy2017-18_capitfig.pdf · staff figure setting fy 2017-18 . capital construction information

STAFF FIGURE SETTING FY 2017-18

CAPITAL CONSTRUCTION INFORMATION TECHNOLOGY

PROJECTS

JBC WORKING DOCUMENT - SUBJECT TO CHANGE

STAFF RECOMMENDATION DOES NOT REPRESENT COMMITTEE DECISION

PREPARED BY: KEVIN NEIMOND, JBC STAFF

MARCH 16, 2017

JOINT BUDGET COMMITTEE STAFF 200 E. 14TH AVENUE, 3RD FLOOR · DENVER · COLORADO · 80203

TELEPHONE: (303) 866-2061 · TDD: (303) 866-3472 https://leg.colorado.gov/agencies/joint-budget-committee

CONTENTS Overview ............................................................................................................................................................. 1

Summary of Staff Recommendations ......................................................................................................... 2

Description of Incremental Changes .......................................................................................................... 3

Major Differences from the Request .......................................................................................................... 6

FY 2017-18 Project Requests ........................................................................................................................... 7

(Labor and Employment) Unemployment insurance mainframe modernization ........... 7

(Corrections) DeCORuM Offender Management System ................................................. 8

(Human Services) Modernizing the Child Welfare Case Management System ............... 9

(Human Services) Regional Center Electronic Health Record System ........................... 11

(Public Health and Environment) Online Permitting System (CIMPLE) ..................... 13

Colorado Commission on Higher Education infrastructure ............................................ 14

(Human Services) Interoperability ........................................................................................ 18

(Transportation) Installation of Fiber Optic Cable Along US 24 West .......................... 20

(Public Health and Environment) Birth Registration System Replacement .................. 21

HOW TO USE THIS DOCUMENT This document begins with an overview of the process by which capital construction information technology projects are reviewed by the Joint Technology Committee and submitted to the Joint Budget Committee for consideration. The next section provides a summary of Joint Budget Committee staff’s recommendations compared to the executive branch’s requests. This section includes a brief description of each project. Finally, the document concludes with Joint Budget Committee staff’s detailed recommendations for each of the projects considered for funding by the Joint Technology Committee.

STAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION

16-Mar-2017 1 IT CAP-fig

OVERVIEW Per H.B. 14-1395 (Information Technology Budget Requests), the Joint Technology Committee is tasked with producing a written report setting forth recommendations, prioritization, findings, and other comments with respect to each information technology budget request submitted for consideration for inclusion in the capital construction budget section of the Long Bill. The report must be submitted to the Joint Budget Committee by February 15th of each year. The Joint Budget Committee is required to consider the prioritized list of information technology budget requests made by the Joint Technology Committee.

FY 2017-18 Joint Technology Committee Project Recommendations and Priorities JTC

Priority Agency Project TOTAL FUNDS

GENERAL FUND

1 Corrections DeCORuM Offender Management System $12,610,083 $12,610,083 2 Human Services Modernizing the Child Welfare Case Management System 6,749,617 3,374,809 3 Human Services Interoperability 9,288,520 928,852 4 Labor and Employment Unemployment insurance mainframe modernization 26,213,480 0 5 Public Health and Environment Online Permitting System (CIMPLE) 996,588 0 6 Human Services Regional Center Electronic Health Record System 2,342,771 2,342,771 7 CSU-Pueblo Air cooling system 599,000 599,000 8 Pueblo Community College Wireless networking 650,000 487,500 9 Pikes Peak Community College Emergency generators 932,000 932,000 10 Otero Junior College Telephone headset replacement 92,375 92,375 11 Lamar Community College Classroom technology 329,175 329,175 12 Lamar Community College Computer systems 167,309 167,309 13 Otero Junior College Telecommunications infrastructure 175,000 175,000 14 Pikes Peak Community College Indoor and outdoor speakers and marquees 121,360 121,360 15 Pueblo Community College Wireless networking 191,000 143,250 16 CSU-Pueblo False floor system 95,423 95,423

Total $61,553,701 $22,398,907 Not Rec’d Western State Colorado University Redundant Network Connection 13,635,051 13,410,051 Not Rec’d Transportation Installation of Fiber Optic Cable Along US 24 West 3,674,330 3,674,330 Not Rec’d Public Health and Environment Birth Registration System Replacement 1,000,000 500,000

Note, if the Joint Budget Committee alters the determinations of priority established by the Joint Technology Committee, it is required to notify the Joint Technology Committee of the changes, and allow for a joint meeting of the two committees to discuss the differences. Staff’s recommendations for FY 2017-18 differ from the recommendations from the Joint Technology Committee, thus the Joint Budget Committee would have to allow for a joint meeting with the Joint Technology Committee if it adopts staff’s recommendations.



SUMMARY OF STAFF RECOMMENDATIONS

CAPITAL CONSTRUCTION INFORMATION TECHNOLOGY PROJECTS: RECOMMENDED PROJECTS FOR FY 2017-18

TOTAL FUNDS

GENERAL FUND

CASH FUNDS

REAPPROPRIATED FUNDS

FEDERAL FUNDS

FY 2017-18 RECOMMENDED PROJECTS (Labor and Employment) Unemployment insurance mainframe modernization $26,213,480 $0 $26,213,480 $0 $0 (Corrections) DeCORuM Offender Management System 12,610,083 12,610,083 0 0 0 (Human Services) Modernizing the Child Welfare Case Management System 6,749,617 3,374,809 0 0 3,374,808 (Human Services) Regional Center Electronic Health Record System 2,342,771 2,342,771 0 0 0 (Public Health and Environment) Online Permitting System (CIMPLE) 996,588 0 896,588 0 100,000 Colorado Commission on Higher Education infrastructure 0 0 0 0 0 (Human Services) Interoperability 0 0 0 0 0 (Transportation) Installation of Fiber Optic Cable Along US 24 West 0 0 0 0 0 (Public Health and Environment) Birth Registration System Replacement 0 0 0 0 0 RECOMMENDED FY 2017-18 APPROPRIATION $48,912,539 $18,327,663 $27,110,068 $0 $3,474,808 CURRENT FY 2016-17 APPROPRIATION $55,950,502 $11,542,466 $26,308,410 $0 $18,099,626 RECOMMENDED FY 2017-18 APPROPRIATION 48,912,539 18,327,663 27,110,068 0 3,474,808 RECOMMENDED INCREASE/(DECREASE) ($7,037,963) $6,785,197 $801,658 $0 ($14,624,818) Percentage Change (12.6%) 58.8% 3.1% n/a (80.8%) REQUESTED FY 2017-18 APPROPRIATION $82,348,102 $42,251,708 $28,061,918 $0 $12,034,476 RECOMMENDED FY 2017-18 APPROPRIATION 48,912,539 18,327,663 27,110,068 0 3,474,808 DIFFERENCE ($33,435,563) ($23,924,045) ($951,850) $0 ($8,559,668)



DESCRIPTION OF INCREMENTAL CHANGES (LABOR AND EMPLOYMENT) UNEMPLOYMENT INSURANCE MAINFRAME MODERNIZATION: The recommendation includes $26,213,480 cash funds for FY 2017-18 to complete the second, and final, phase of migrating the current benefits and employer premium systems onto a modernized computer platform. • The Joint Technology Committee recommends funding to continue for this project in FY 2017-

18. • The Office of State Planning and Budgeting prioritizes this project above the funding line for

FY 2017-18. (CORRECTIONS) DECORUM OFFENDER MANAGEMENT SYSTEM: The recommendation includes $12,610,083 General Fund for FY 2017-18 to complete the third, and final, phase of implementing an integrated offender management system and electronic health record system. The new system will be deployed within the Department of Corrections’ 20 facilities, the Division of Parole, Parole Board, private prison partners, community corrections, and the Department’s headquarters office. • The Joint Technology Committee recommends funding to continue for this project in FY 2017-


FY 2017-18. (HUMAN SERVICES) MODERNIZING THE CHILD WELFARE CASE MANAGEMENT SYSTEM: The recommendation includes $6,749,617 total funds, including $3,374,809 General Fund, for FY 2017-18 for the third, and final, phase of a project intended to make changes to the existing child welfare case management system, known as Trails. This modernization effort will make Trails more mobile-friendly for case workers, better able to integrate data from a variety of sources into a case file, and easier for users to interface with for different purposes based on agency or job-specific tasks. • The Joint Technology Committee recommends funding to continue for this project in FY 2017-


FY 2017-18. (HUMAN SERVICES) REGIONAL CENTER ELECTRONIC HEALTH RECORD SYSTEM: The recommendation includes $2,342,771 General Fund for FY 2017-18 to implement an electronic health record system at the Department of Human Services’ regional centers for individuals with intellectual and developmental disabilities. Note, staff’s recommendation also includes $698,688 total funds (reappropriated funds from Medicaid and cash funds from client payments) for ongoing operating expenses. • The Joint Technology Committee recommends funding to begin this project in FY 2017-18. • The Office of State Planning and Budgeting prioritizes this project below the funding line for

FY 2017-18.



(PUBLIC HEALTH AND ENVIRONMENT) ONLINE PERMITTING SYSTEM (CIMPLE): The recommendation includes $996,588 total funds, including $896,588 cash funds and $100,000 federal funds, for FY 2017-18 for the Department of Public Health and Environment to move from the pilot phase of an online permitting system for environmental programs to full implementation. The Customer Interface Modernization for a Lean Environment (CIMPLE) project aims to allow the regulated community to submit environmental permit applications online. • The Joint Technology Committee recommends funding to begin this project in FY 2017-18. • The Office of State Planning and Budgeting prioritizes this project above the funding line for

FY 2017-18. COLORADO COMMISSION ON HIGHER EDUCATION INFRASTRUCTURE: The recommendation does not include the request for $18,972,713 total funds, including $18,320,863 General Fund, for FY 2017-18 for a series of technology infrastructure upgrades at Pikes Peak Community College, Colorado State University-Pueblo, Pueblo Community College, Otero Junior College, Western State Colorado University, and Lamar Community College. • The Joint Technology Committee recommended funding a portion of these projects for FY

2017-18 at a level of $3,352,642 total funds, including $3,142,392 General Fund. • The Office of State Planning and Budgeting does not prioritize projects submitted by the

Colorado Commission on Higher Education for FY 2017-18 as part of its information technology capital construction budget request submittal. However, the Office did prioritize them with the capital development project list and ranks all of these projects in the bottom half of its priorities.

(HUMAN SERVICES) INTEROPERABILITY: The recommendation does not include the request for $9,288,520 total funds, including $928,852 General Fund, for FY 2017-18 for the third phase of a five phase project to standardize all existing information technology systems the agency uses in an effort to allow the data contained in the systems to be made available without removing the data from the core systems. • The Joint Technology Committee recommends funding to continue for this project in FY 2017-


FY 2017-18. (TRANSPORTATION) INSTALLATION OF FIBER OPTIC CABLE ALONG US 24 WEST: The recommendation does not include a request for $3,674,330 General Fund for FY 2017-18 to extend the Department-administered fiber optic telecommunications backbone along US 24 West from Woodland Park to the backbone fiber cable on I-25 in Colorado Springs. • The Joint Technology Committee does not recommend this project for funding for FY 2017-18. • The Office of State Planning and Budgeting prioritizes this project below the funding line for

FY 2017-18.



(PUBLIC HEALTH AND ENVIRONMENT) BIRTH REGISTRATION SYSTEM REPLACEMENT: The recommendation does not include the request for $1,500,000 total funds, including $1,000,000 General Fund, for FY 2017-18 to begin a project to replace the current Colorado Vital Information System (COVIS). • The Joint Technology Committee does not recommend this project for funding for FY 2017-18. • The Office of State Planning and Budgeting prioritizes this project below the funding line for

FY 2017-18.



MAJOR DIFFERENCES FROM THE REQUEST Staff's recommendation for FY 2017-18 is $33,435,563 total funds, including $23,924,045 General Fund, lower than the request. The following items include the significant General Fund differences between staff’s recommendation and the request for FY 2017-18: • (Colorado Commission on Higher Education) Staff does not recommend the request for

$18,972,713 total funds, including $18,320,863 General Fund, for a series of technology infrastructure upgrades at various community and junior colleges, as well as Colorado State University-Pueblo. Note, a portion of this request ($3,352,642 total funds, including $3,142,392 General Fund) was recommended for funding by the Joint Technology Committee. The Office of State Planning and Budgeting did not prioritize projects submitted by the Colorado Commission on Higher Education for FY 2017-18 as part of its information technology capital construction budget request submittal. However, the Office did prioritize them with the capital development project list and ranked all of these projects in the bottom half of its priorities.

• (Department of Transportation) Staff does not recommend the request for $3,674,330 General Fund for FY 2017-18 to extend the Department-administered fiber optic telecommunications backbone along US 24 West from Woodland Park to the backbone fiber cable on I-25 in Colorado Springs. Note, this request was not recommended for funding by the Joint Technology Committee and was prioritized below the funding line by the Office of State Planning and Budgeting.

• (Department of Human Services) Staff does not recommend the request for $9,288,520 total

funds, including $928,852 General Fund, for FY 2017-18 for the third phase of a five phase project to standardize all existing information technology systems the agency uses in an effort to allow the data contained in the systems to be made available without removing the data from the core systems. Note, this request was recommended for funding by the Joint Technology Committee and was prioritized above the funding line by the Office of State Planning and Budgeting.



FY 2017-18 PROJECT REQUESTS (LABOR AND EMPLOYMENT) UNEMPLOYMENT INSURANCE MAINFRAME

MODERNIZATION REQUEST: The Department of Labor and Employment requests $26,213,480 cash funds for FY 2017-18 to complete the second, and final, phase of a project to migrate the current benefits and employer premium systems onto a modernized computer platform. JTC RECOMMENDATION: The Joint Technology Committee recommends funding to continue for this project in FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project above the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends funding the continuation of this project, as requested. ANALYSIS: The Department of Labor and Employment, in conjunction with the Governor’s Office of Information Technology, was a partner in a multi-state consortium called WyCAN to obtain an unemployment insurance tax and benefit system. WyCAN, which included Wyoming, Colorado, Arizona, and North Dakota, entered into a contract with HCL America, Inc. to build out the new system. This initiative encountered significant challenges and the consortium disbanded and HCL America, Inc. ceased work on this project. The contract was terminated with two years remaining and with only a fraction of funds expended. The Department, still faced with the information technology system challenges that spurred its participation in the failed WyCAN project, submitted a plan to the Joint Technology Committee in FY 2016-17 calling for an appropriation of $51,476,960 cash funds over two years ($25,263,480 for FY 2016-17 and $26,213,480 for FY 2017-18) from the Employment and Training Technology Fund and the Unemployment Revenue Fund to convert the mainframe COBOL code from existing system to a different programming language and to move data stored in the mainframe to a relational database. This plan was funded by the General Assembly with an appropriation of $25,263,480 cash funds for FY 2016-17. The Department then commenced work and now seeks the remaining funds for the project. Staff recommends an appropriation of $26,213,480 cash funds for FY 2017-18 to complete the project.



(CORRECTIONS) DECORUM OFFENDER MANAGEMENT SYSTEM REQUEST: The Department of Corrections requests $12,610,083 General Fund for FY 2017-18 to complete the third, and final, phase of implementing an integrated offender management system and electronic health record system. The new system will be deployed within the Department of Corrections’ 20 facilities, the Division of Parole, Parole Board, private prison partners, community corrections, and the Department’s headquarters office. JTC RECOMMENDATION: The Joint Technology Committee recommends funding to continue for this project in FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project above the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends funding the continuation of this project, as requested. ANALYSIS: The Department of Corrections is in the midst of a three-phase project to implement an integrated offender management system and electronic health record system. The new system will be deployed within the Department’s 20 facilities, the Division of Parole, Parole Board, private prison partners, community corrections, and the Department’s headquarters office. The project replaces the Department’s current legacy system known as the Department of Corrections Information Management System (DCIS). The following table summarizes the total capital construction appropriations for the project.

DeCORuM Offender Management System Total Capital Construction Costs of the Project

Fiscal Year TOTAL FUNDS

GENERAL FUND

FY 2014-15 Appropriation $5,796,000 $5,796,000 FY 2015-16 Appropriation 11,049,761 11,049,761 FY 2016-17 Appropriation 845,057 845,057 FY 2017-18 Request 12,610,083 12,610,083 Total $30,300,901 $30,300,901

The Department signed a ten-year contract with Marquis Software Development, Inc. to implement a commercial off-the-shelf (COTS) electronic offender management system. Phase I, completed in November 2016, included a new database management system and an electronic health records (EHR) system, while Phase II seeks to migrate data to the new system. This phase will be completed in two sections across 2017 and 2018. Phase III will replace the parole and community Colorado Web-based Integrated Support Environment (C-WISE) system, the parole electronic system, and the required enhancements to approximately 16 modules to complete a fully integrated offender management information system. The Department requests an appropriation of $12,610,083 General Fund for FY 2017-18 for Phase III. Staff recommends an appropriation of $12,610,083 General Fund for FY 2017-18 to complete the project, as requested.



(HUMAN SERVICES) MODERNIZING THE CHILD WELFARE CASE MANAGEMENT SYSTEM

REQUEST: The Department of Human Services requests $6,749,617 total funds, including $3,374,809 General Fund, for FY 2017-18 for the third, and final, phase of a project intended to make changes to the existing child welfare case management system, known as Trails. JTC RECOMMENDATION: The Joint Technology Committee recommends funding to continue for this project in FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project above the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends funding the continuation of this project, as requested. ANALYSIS: Colorado Trails is a statewide system, operational since 2002, that supports activities in the Department of Human Services’ Division of Child Welfare and the Division of Youth Corrections (DYC). The Trails database links all divisions of DYC staff located in facilities and offices throughout the state, as well as State and county child welfare workers, supervisors, and support staff. The system provides case management support for direct client workers, decision-making support tools for managers, and access to client information across all DYC and child welfare populations in the state. The client/server-based system also provides an interface with the Colorado Integrated Criminal Justice Information System (CICJIS). The Division of Child Welfare portion of Trails includes functions for intake, eligibility, resource management, court processing, case management, facilities management, financial management, and administration. The DYC portion of Trails allows users to track the stages a youth goes through in terms of their placements and counselor assignments. Workers can create, modify, and maintain treatment plans and release goals, and identify and assess resource providers. The technology and architecture of the current Trails system is over 20 years old and is no longer supported by the manufacturers of the system. For FY 2015-16, the General Assembly funded the first of a three phase Trails modernization project to upgrade its infrastructure to allow for faster implementation of system modifications and to accommodate changing child welfare practices. Critical components of the project include: • Mobile device compatibility and support to provide secure systems that meet industry standards; • Data integration to help promote the effective use and availability of data across multiple

systems that influence child welfare, including the ability to add unstructured or external data; and

• Profile-driven capabilities for data administration and ease of use by providing user-appropriate interfaces (agency specific and/or job function related).

The General Assembly provided funding for the second phase of the project for FY 2016-17. The following table summarizes the total capital construction appropriations for the project.



Modernizing the Child Welfare Case Management System Total Capital Construction Costs of the Project


GENERAL FUND

FY 2015-16 Appropriation $6,824,567 $4,648,707 FY 2016-17 Appropriation 6,749,617 3,374,809 FY 2017-18 Request 6,749,617 3,374,809 Total $20,323,801 $11,398,325

The Department seeks funds for phase three to complete the project by June 30, 2018. Staff recommends an appropriation of $6,749,617 total funds, including $3,374,809 General Fund, for FY 2017-18 to complete the project by the planned end date.



(HUMAN SERVICES) REGIONAL CENTER ELECTRONIC HEALTH RECORD SYSTEM REQUEST: The Department of Human Services requests $2,342,771 General Fund for FY 2017-18 to implement an electronic health record system at the Department of Human Services’ regional centers for individuals with intellectual and developmental disabilities. Note, the one-time capital construction component of the request includes a companion request of $698,688 total funds (reappropriated funds from Medicaid and cash funds from client payments) for ongoing operating expenses. JTC RECOMMENDATION: The Joint Technology Committee recommends funding for this project to begin in FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project below the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends funding this project, as requested. Staff’s recommendation includes an increase of $698,688 total funds for the operating costs of the project for FY 2017-18 and future fiscal years. ANALYSIS: The Department provides oversight of the three State-owned and -operated regional centers: Grand Junction, Pueblo and Wheat Ridge. The Regional Centers serve people with intellectual and developmental disabilities who have the most intensive needs. The Centers provided services to an average of 263 residents per month between July 1, 2015 and June 30, 2016. The Department uses a manual, paper process for assessments and charting of client health records at these facilities. The Department indicates that current processes result in errors and delays in admissions, care records, accounts receivable, and billing. To remedy these issues, the agency put forth a request for $3,041,459 General Fund for FY 2017-18 to implement an electronic health record (EHR) system that meets federal regulatory and reimbursement standards. This project would implement a comprehensive, integrated EHR system, and install wireless and network infrastructure, along with personal computers, tablets, and scanners. It would also be integrated with other systems from outside providers, labs, pharmacies, and other entities. The Department solicited a request for information (RFI), attended demonstrations of various EHR systems, researched lab and pharmacy systems, conducted online research, and met with clinical and operations staff to develop business requirements and cost estimates for the new EHR system. The Department opted to submit these two pieces of the project in one capital construction request rather than as two separate requests (one for the capital construction budget and one for operating budget). Of the requested amount, $2,342,771 General Fund is for the one-time capital construction component of the project and $698,688 is for operating expenses component of the project. The operating costs include annual leasing fees for personal computers and tablets, network maintenance, annual vendor maintenance, and full-time employees in the Governor’s Office of Information Technology to support the system (network engineer, EHR manager, and deskside support). The operating would be funded with a combination of reappropriated funds from Medicaid and cash funds from client payments (note, patient payments would not increase to implement this system).



The Office of State Planning and Budgeting prioritized this project below the funding line for FY 2017-18. However, after reviewing the merits of this request and holding a hearing with the Department, the Joint Technology Committee recommended funding this project for FY 2017-18. Staff recommends that the Joint Budget Committee follow the lead of the Joint Technology Committee for FY 2017-18 and provide funding for the capital construction and operating costs associated with this project. Specifically, staff recommends an appropriation of $2,342,771 General Fund in the capital construction budget and an appropriation of $698,688 total funds (reappropriated funds from Medicaid and cash funds from client payments) for ongoing operating expenses. The Department has successfully worked with the Governor’s Office of Information Technology to implement EHR systems in its youth corrections facilities and its mental health institutes. It is staff’s opinion that this partnership can be leveraged to benefit the clients in the State’s regional centers, just as individuals in the Department’s other facilities receive benefit from the agency’s implementation of EHR systems.



(PUBLIC HEALTH AND ENVIRONMENT) ONLINE PERMITTING SYSTEM (CIMPLE) REQUEST: The Department of Public Health and Environment requests $996,588 total funds, including $896,588 cash funds and $100,000 federal funds, for FY 2017-18 for the Department of Public Health and Environment to move from the pilot phase of an online permitting system for environmental programs to a full implementation. JTC RECOMMENDATION: The Joint Technology Committee recommends funding for this project in FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project above the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends funding this project, as requested. ANALYSIS: The Department of Public Health and Environment is implementing an online permitting system pilot project for its environmental programs. As a result of this pilot, customers will be able to apply for permits, upload documents, track the status of permits, modify submissions, and pay for permits. Funded with a one-time federal Environmental Protection Agency grant and additional federal funding through the Colorado Water Resources and Power Development Authority, this initial effort will provide online permitting for five regulatory processes. The project, known as the Customer Interface Modernization for a Lean Environment (CIMPLE), is currently wrapping up the pilot phase. The Department seeks $996,588 total funds for FY 2017-18 to begin the first of two phases of a project to roll out CIMPLE for an additional 40 regulatory processes. It is anticipated that the Department will request $996,588 total funds for FY 2018-19 for the second, and final, phase of the project. To cover these costs for FY 2017-18 and FY 2018-19, the Department will pair $100,000 federal funds with $896,588 cash funds from five sources within the Hazardous Materials and Waste Management and Air Pollution Control Divisions. Each of these cash funds supports programmatic areas that will benefit from on-line permitting. The cash funds identified to support this project were based on their ability to absorb these expenses without necessitating fee increases. Staff recommends an appropriation of $996,588 total funds for FY 2017-18 to begin the first phase of this “shovel-ready” project.



COLORADO COMMISSION ON HIGHER EDUCATION INFRASTRUCTURE REQUEST: The Colorado Commission on Higher Education requests $18,972,713 total funds, including $18,320,863 General Fund, for a series of technology infrastructure upgrades at Pikes Peak Community College, Colorado State University-Pueblo, Pueblo Community College, Otero Junior College, Western State Colorado University, and Lamar Community College. JTC RECOMMENDATION: The Joint Technology Committee recommends funding a portion of these projects at a level of $3,352,642 total funds, including $3,142,392 General Fund, for FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting does not prioritize projects submitted by the Colorado Commission on Higher Education for FY 2017-18 as part of its information technology capital construction budget request submittal. However, the Office did prioritize them with the capital development project list and ranks all of these projects in the bottom half of its priorities. JBC STAFF RECOMMENDATION: Staff recommends against funding projects submitted by the Colorado Commission on Higher Education for FY 2017-18. ANALYSIS: The Colorado Commission on Higher Education submitted six requests on behalf of Pikes Peak Community College, Colorado State University-Pueblo, Pueblo Community College, Otero Junior College, Western State Colorado University, and Lamar Community College. The following table summarizes each request. After the table, staff has included a brief description of each request in the table.

FY 2017-18 Capital Construction Information Technology Prioritized Request List Submitted by the Colorado Commission on Higher Education (CCHE)

CCHE Priority Agency Project TOTAL

FUNDS GENERAL

FUND 1 Western State Colorado University Redundant Network Connection $13,635,051 $13,410,051 2 Pikes Peak Community College Campus Emergency Notification and Power 1,653,360 1,653,360 3 CSU-Pueblo Campus IT Upgrades 817,823 817,823 4 Pueblo Community College Wireless Networking Solutions 1,707,400 1,280,550 5 Otero Junior College Telecommunications Upgrade 507,375 507,375 6 Lamar Community College Technology Infrastructure 651,704 651,704

Total $18,972,713 $18,320,863 • Redundant Network Connection (Western State Colorado University): The request seeks

$13,635,051 total funds, including $13,410,051 General Fund, for Western State University to construct a second, independent network connection to the internet and other resources for the University and the Gunnison Valley via a fiber optic cable originating on or near campus and progressing east, where it would ultimately connect to an existing fiber installation. The University and the Gunnison Valley are currently served by a single fiber optic connection running west along US 50 to Montrose. This connection represents a single point of failure and limits the Valley to a single middle-mile provider.

• Campus Emergency Notification and Power (Pikes Peak Community College): The request includes $1,653,360 General Fund for the Pikes Peak Community College to install emergency



audible and visual alert notification devices in hallways, indoor open spaces, and the outdoor areas near building entrances on its three campuses. Additionally, the College’s request includes funding to install power infrastructure to support the notification system.

• Campus IT Upgrades (CSU-Pueblo): The request seeks $817,823 General Fund for Colorado

State University- Pueblo to implement two projects. The first project is to upgrade the data center infrastructure in the Administration Building to ensure IT systems availability and disaster recovery on the campus. The second project aims to improve physical access to critical IT systems by upgrading door access technology and implementing access control and auditing software.

• Wireless Networking Solutions (Pueblo Community College): The request includes $1,707,400 total funds, including $1,280,550 General Fund, for Pueblo Community College to replace and upgrade its wireless networking infrastructure, video conference solutions, and computing infrastructure (replacing classroom and administrative computers older than five years).

• Telecommunications Upgrade (Otero Junior College): The request seeks $507,375 General Fund for Otero Junior College to upgrade its communications environment to be able to participate in the Colorado Community College System telephone and classroom communication network that started in the fall of 2016. The technology upgrades include telephone replacement and acquiring new video and audio instruction equipment.

• Technology Infrastructure (Lamar Community College): The request includes $651,704 General Fund for Lamar Community College to replace and/or add multimedia and computer equipment in classrooms and offices where current technology is obsolete. Equipment includes computers, servers, telephones, and multimedia devices.

The Joint Technology Committee reviewed these requests, studied each individual project within the requests, and recommends that the Joint Budget Committee fund a portion of the request, as follows:

FY 2017-18 Joint Technology Committee Recommendations Compared to Requests Request JTC Recommendation Difference

School TOTAL FUNDS

GENERAL FUND

TOTAL FUNDS

GENERAL FUND

TOTAL FUNDS

GENERAL FUND

Western State Colorado University $13,635,051 $13,410,051 $0 $0 ($13,635,051) ($13,410,051) Pikes Peak Community College 1,653,360 1,653,360 1,053,360 1,053,360 (600,000) (600,000) CSU-Pueblo 817,823 817,823 694,423 694,423 (123,400) (123,400) Pueblo Community College 1,707,400 1,280,550 841,000 630,750 (866,400) (649,800) Otero Junior College 507,375 507,375 267,375 267,375 (240,000) (240,000) Lamar Community College 651,704 651,704 496,484 496,484 (155,220) (155,220) TOTAL $18,972,713 $18,320,863 $3,352,642 $3,142,392 ($15,620,071) ($15,178,471)

Specifically, the Joint Technology Committee recommends the following projects in the following prioritized order:



FY 2017-18 Joint Technology Committee Project Recommendations and Priorities JTC

Priority Agency Project TOTAL FUNDS

GENERAL FUND

7 CSU-Pueblo Air cooling system $599,000 $599,000 8 Pueblo Community College Wireless networking 650,000 487,500 9 Pikes Peak Community College Emergency generators 932,000 932,000 10 Otero Junior College Telephone headset replacement 92,375 92,375 11 Lamar Community College Classroom technology 329,175 329,175 12 Lamar Community College Computer systems 167,309 167,309 13 Otero Junior College Telecommunications infrastructure 175,000 175,000 14 Pikes Peak Community College Indoor and outdoor speakers and marquees 121,360 121,360 15 Pueblo Community College Wireless networking 191,000 143,250 16 CSU-Pueblo False floor system 95,423 95,423

Total $3,352,642 $3,142,392 Not Rec’d Western State Colorado University Redundant Network Connection 13,635,051 13,410,051

Staff, however, recommends rejecting all of the requests submitted by the Colorado Commission on Higher Education for FY 2017-18. The recommendation is based on two factors. Note, these factors do not apply to the “Redundant Network Connection (Western State Colorado University)” request. This request is addressed separately following a discussion of the factors by which staff based the rejection of the funding requests. • The Office of State Planning and Budgeting did not prioritize projects submitted by the

Colorado Commission on Higher Education for FY 2017-18 as part of its information technology capital construction budget request submittal. However, the Office did prioritize them with the capital development project list and ranked all of these projects in the bottom half of its priorities. Two of the projects, submitted by Otero Junior College and Lamar Community College, represent the bottom two priorities of the Office.

FY 2017-18 Capital Construction Information Technology Prioritized Request List Submitted by the Colorado Commission on Higher Education (CCHE)

Agency Project CCHE Priority

OSPB Priority

Western State Colorado University Redundant Network Connection 1 27 of 47 Pikes Peak Community College Campus Emergency Notification and Power 2 32 of 47 CSU-Pueblo Campus IT Upgrades 3 33 of 47 Pueblo Community College Wireless Networking Solutions 4 36 of 47 Otero Junior College Telecommunications Upgrade 5 46 of 47 Lamar Community College Technology Infrastructure 6 47 of 47

• Standard operating costs for maintenance and replacement of technology assets could be

covered by student tuition or student fees rather than General Fund. Not all universities have technology fees to help defray the costs infrastructure needs, however, it is staff’s opinion that schools may wish to explore this option.

The “Redundant Network Connection (Western State Colorado University)” request is appealing because of the need that exists to construct a redundant, high capacity, independent fiber-optic network connection that would serve the University and the Gunnison Valley. As was mentioned earlier, the current network connection represents a single point of failure and limits the area to a single middle-mile provider. This network has many users, including local governments, public safety communication agencies, school districts, hospitals, and the University.



After reviewing this request and holding a hearing with the University, however, the Joint Technology Committee opted not to recommend this project for funding for FY 2017-18. It was the Joint Technology Committee’s opinion that the University complete a more detailed cost estimate analysis, conduct a more through risk assessment for the project, and explore the possibility of engaging in a solicitation process prior to requesting funds from the General Assembly. Additionally, the Office of State Planning and Budgeting prioritized this project as the number 27 out of 47 in its capital development project list for FY 2017-18. Since this capital construction project did not receive support from these two entities, staff recommends against funding this project for FY 2017-18. The University may wish to resubmit this project in future fiscal years once it has completed the tasks requested by the Joint Technology Committee.



(HUMAN SERVICES) INTEROPERABILITY REQUEST: The Department of Human Services requests $9,288,520 total funds, including $928,852 General Fund, for FY 2017-18 for the third phase of a five phase project to standardize all existing information technology systems the agency uses in an effort to allow the data contained in the systems to be made available without removing the data from the core systems. JTC RECOMMENDATION: The Joint Technology Committee recommends funding for this project in FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project above the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends against funding this project for FY 2017-18. ANALYSIS: This project comes on the heels of a 15 month analysis of the Department’s information technology systems and protocols that was funded by a $1.1 million grant from the federal Department of Health and Human Services’ Administration for Children and Families. The analysis found that the Department has no standard policy, procedure, or practice for addressing interoperability between its systems. To solve this issue (and to ultimately leverage data for decision making purposes), the legislature provided an initial appropriation of $12,815,940 total funds, including $1,281,594 General Fund, for FY 2015-16 to begin a data and system standardization project. The broad-based project plan calls for: • Building out data governance strategies (e.g. bring all parties together to work toward a common

goal); • Inventorying all information technology systems and data (e.g. knowledge of what data looks

like now and what it should like in the future); • Deploying tools for proof of concept studies and for evaluative purposes (e.g. what tools work

and what tools do not work); • Reaching agency-wide agreement on a strategy going forward (e.g. stakeholder buy-in); • Changing and improving existing business processes and workflows based on the

implementation of tools that assist in combining data into an analytical tool; and • Managing the organizational change that is required to make the initiative successful. The full cost of the project, $49,970,020 total funds, including $4,997,002 General Fund, is summarized by fiscal year in the following table. Note, this project is funded at a “90/10” financing structure whereby the federal Centers for Medicare and Medicaid Services approves the Department’s project plans and provides 90 percent of the funding (the State General Fund provides the remaining 10 percent).

Interoperability Total Capital Construction Costs of the Project


GENERAL FUND

FY 2015-16 Appropriation $12,815,940 $1,281,594 FY 2016-17 Appropriation 9,288,520 928,852 FY 2017-18 Request 9,288,520 928,852



Interoperability Total Capital Construction Costs of the Project


GENERAL FUND

FY 2018-19 Estimate 9,288,520 928,852 FY 2019-20 Estimate 9,288,520 928,852 Total $49,970,020 $4,997,002

For FY 2017-18, the Department requests $9,288,520 total funds, including $928,852 General Fund, for the third phase of the project. Staff recommends rejecting this request. The Department experiences delays in expending the funds appropriated due to a lengthy process for project component approvals from the Centers for Medicare and Medicaid Services. The agency received appropriations totaling $22,104,460 total funds, including $2,210,446 General Fund for FY 2015-16 and FY 2016-17, yet have only encumbered slightly more than 10 percent of this ($2,262,401 total funds, including $226,240 General Fund). Rather than continue to provide appropriations for this project on an annual basis, staff recommends that the Department focus its efforts on expending the funds already appropriated and consider submitting a funding request for FY 2018-19 if all of the previously appropriated funds have been exhausted. Note, the Department indicates its federal partner may determine that the State is not committed to the project and may not approve funding for the entire project if the General Assembly does not appropriate General Fund for the project for FY 2017-18. Staff counters that the Centers for Medicare and Medicaid Services is aware that the Department cannot spend federal funds on the project unless it receives its approval, yet it grants approvals in timeframes that do not necessitate yearly appropriations from the General Assembly. Thus, it is staff’s position that it should not be the federal partner questioning the State’s commitment to the project; instead, the State may wish to consider the federal partner’s commitment to the project if approvals to proceed and expend money are slow to arrive while expectations for the General Assembly to annually provide additional State funding for the project arrive regularly each year.



(TRANSPORTATION) INSTALLATION OF FIBER OPTIC CABLE ALONG US 24 WEST REQUEST: The Department of Transportation requests $3,674,330 General Fund for FY 2017-18 to extend the Department-administered fiber optic telecommunications backbone along US 24 West from Woodland Park to the backbone fiber cable on I-25 in Colorado Springs. JTC RECOMMENDATION: The Joint Technology Committee does not recommend this project for funding for FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project below the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends against funding this project for FY 2017-18. ANALYSIS: The Department requests $3,674,330 General Fund for FY 2017-18 to construct 17.4 miles of fiber optic telecommunications cable along U.S. Highway 24 from Woodland Park to I-25 in Colorado Springs. The project also includes the installation of cameras, switches, and routers. The fiber optic cable will tie into existing road closure gates and cameras along the U.S. 24 corridor, as well as the existing fiber cable along I-25. The corridor has limited cellular phone service in areas that cannot be addressed by adding radio/cellular towers. Without adequate connectivity along the corridor, response time and communication to area residents during times of flash floods, rockslides, and other incidents will continue to be limited. After reviewing this request and holding a hearing with the Department, the Joint Technology Committee opted not to recommend this project for funding for FY 2017-18 due to the existence of higher priorities for State funding. Additionally, the Office of State Planning and Budgeting prioritized this project below the funding line for FY 2017-18. Since it did not receive support from these two entities, staff recommends against funding this project for FY 2017-18. The Department may wish to resubmit this project in future fiscal years if alternative funding is not found to lay the fiber.



(PUBLIC HEALTH AND ENVIRONMENT) BIRTH REGISTRATION SYSTEM REPLACEMENT

REQUEST: The Department of Public Health and Environment requests $1,500,000 total funds, including $1,000,000 General Fund, for FY 2017-18 to begin a project to replace the current Colorado Vital Information System (COVIS). JTC RECOMMENDATION: The Joint Technology Committee does not recommend this project for funding for FY 2017-18. OSPB RECOMMENDATION: The Office of State Planning and Budgeting prioritizes this project below the funding line for FY 2017-18. JBC STAFF RECOMMENDATION: Staff recommends against funding this project for FY 2017-18. ANALYSIS: COVIS, with a contract end date in 2019, is outdated and no longer able to meet the requirements of state and local vital records offices, data providers, and vital statistics stakeholders. The System was implemented in 2007, but still runs on an original 2003 SQL server platform. The Department put forth a plan to purchase an off-the-shelf, web-based product and implement it with support from a third-party vendor. The new system would include: • A web-based portal for data exchange; • Health Insurance Portability and Accountability Act (HIPAA) compliant electronic reporting; • Integration with electronic death reporting; • Data quality assurance capabilities; • Data analysis and reporting functionality; • Records retention; • The ability to issue certificates; and • The ability to interact with state and local vital records. After reviewing this request and holding a hearing with the Department, the Joint Technology Committee opted not to recommend this project for funding for FY 2017-18 due to the existence of higher priorities for State funding. Additionally, the Office of State Planning and Budgeting prioritized this project below the funding line for FY 2017-18. Since it did not receive support from these two entities, staff recommends against funding this project for FY 2017-18. The Department may wish to resubmit this project in future fiscal years if the need for system replacement continues to present issues for the agency.

JBC Staff FY 2017-18 Figure Setting Capital Construction Information

Technology Projects

Presented by:

Kevin Neimond, JBC Staff March 16, 2017

Capital Construction Information Technology Projects

2

Staff Recommendation $48.9 million total funds

$18.3 million General Fund

JTC Recommendation $61.6 million total funds


Requests $82.3 million total funds


Capital Construction Information Technology Projects

3

Project Requests □ (Labor and Employment) Unemployment insurance mainframe modernization (p.7) □ (Corrections) DeCORuM Offender Management System (p.8) □ (Human Services) Modernizing the Child Welfare Case Management System (p.9) □ (Human Services) Regional Center Electronic Health Record System (p.11) □ (Public Health and Environment) Online Permitting System (CIMPLE) (p.13) □ Colorado Commission on Higher Education infrastructure (p.14) □ (Human Services) Interoperability (p.18) □ (Transportation) Installation of Fiber Optic Cable Along US 24 West (p.20) □ (Public Health and Environment) Birth Registration System Replacement (p.21)

JBC Staff FY 2017-18 Figure Setting Capital Construction Information

Technology Projects

Presented by:

Kevin Neimond, JBC Staff March 16, 2017

Documents

STAFF FIGURE SETTING FY 2017-18 CAPITAL CONSTRUCTION ...leg.colorado.gov/sites/default/files/fy2017-18_capitfig.pdf · staff figure setting fy 2017-18 . capital construction information