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HomeMy WebLinkAboutM120678December 6, 1978 RECONVENED: The Board. reconvened at 8:00 p,m. pursuant to recesso Present: Supervisors Lemke, Madigan, Richter and Chairman Winston. Clif Miok'el~on, administrative officer; and Clark A, Nelson, county clerk, by Cathy Pitts, assistant clerk to the Board. ABSENT: Supervisor Moseley 78-2283 DATA PROCESSING FACILITIES MANAGEMENT PRESENTATIONS CONTTNIIED Ed Carlson, Computer Sciences Corporation, made a statement at this time, The corporation has three major divisions. One is ,dealing with the federal government, one with the state and local and commercial sectors, and one with intertime sharing network. The press has released another report on the business practices with the GSA, The current press release deals with CSC. Sources say a few members of GSA received money prior to awarding to Tnvinese in 1972, The Grand Jury is investigating this. No one has contacted us whatever. This year as these types of reports have been received we have received a significant amount of business from the state and local governments. This has not been based on how many good or bad news articles there were. The corporation denies these allegations. Chairman Winston stated that he has thought about the format for the meeting and has decided that he would ask the interim Data Processing Director to come to the podium and tell us why he did not think it would work. Then he will ask the vendors to come forward and answer any questions that may have been raised. Ed Brown, interim data processing director, stated that he had planned to ask the Board if they would allow the Data Processing Department, to make a presentation next week so the skey people in the department can discuss this with the Board. Mr. Brown presented his personal opinion at this time. He has made an analysis of the proposalso He talked to the people involed in facilities management and has talked with people considering facilities management. He lied been unable to find anyone favorable in that it would be a$.vantageous to enter into such a contract. Specifically, whenever he looks at the budget and the base expenditures, There is no way we can come out fiscally. The over all cost is going to be $100,000 or more than the current budget allows. Mr. Brown set out what has happened the last two years in data processing with the voter registration by mail, outreach program and proposition 13. There were not only problems with the law but were problems with the people. The immediate requirements were met. As he has talked to people involved in facilities management they have no assurances that it would be such a good way on proposition 13 ifoday. It is his opinion to readjust the assessment roll. Tt is his intent to adjust many assessments back to 1975-76valueso This will result in a decrease of assessment and revenue for the county. He felt that the Spirit of 13 will pass and ~rohihit the state in aiding the county:, like this year. He felt that if this county buys into a contract for a great deal of expenditure of money that we will be in trouble. Chairman Winston stated that if staff comes up with figures different from his that Mr. Brown would sit down and give=. them any information he might have. Mr. Brown felt that he would make every effort to cooperate and understand. 78-2284 STATEMENT BY CHAIRMAN WINSTON Chairman Winston stated that the local newspaper had contacted him at home about this matter. There was a confusion in the story. He was speaking about Governor Brown and it was printed Ed Brown. Page 486. December 6, 1978 December 6, 1978 78T2285 DATA PRCESSING FACTLTTTES MANAGEMENT PRESENTATIONS CONTINUED Mr. Brown stated that it was his understanding that Orange County is the only one in the state with the processing as is being ', presented to the county. He did not feel there has been work done to take over the entire county operation. Butte County does a good job except for management. He felt that the county could find a ', good director. This is one thing that would solve the problems. CSC's basic cost is $800,000 about $25,000 of our total budget for equipment, personnel and supplies. In addition, they will provide management services for that and the county will have to pay for the ', computer and immediate enhancement. The county will still pay for janitor services and everything else. Also, the Board should look at the rates on special services, The top rate for one person is ', $400 per day and less expensive charges down the line. He did not feel that if immediate programs and. systems were required that the outside vendor could provide them as fast as the in-house personnel could. The county would have to go through-the contract manager and go through the procedure of getting priorities and it would cost more money. As it was this county just barely made it. A two week or ten day delay would not have allowed meeting the deadline. Mr. Brown felt that there would be a great difference between ', $160,000 and $800,000 plus $160,000. This would still be cost of the hardware. Supervisor Richter stated that he would hope that a contract if written would be such that the county would no longer be paying the bill for processing. The county should not have to pay $800,000 if they were not getting $800,000 warth of work, If the state said that there was no need for the county to have welfare or a number of other things then there would not be the business for that and he hoped that the contract would be drafted to include reduced fees. ' Chairman Winston stated that the county has had data processing '; for 22 years. There has been trouble with data processing for those ', 22 years. He has talked to customers who have gone through two or three managers and as far as they are concerned they are not going to go through another one. He wondered if it was possible to get someone who could fill the job. Mr. Brown stated that facilities managment has come up with a great individual. He suggested that the Board contact LA county and find out about the assignment. He did not feel that he had all the information. Discussion of the poor management in the Data Processing Department over the years held at this time. The Board was aware of the problems. They were told about the problem by the Administrative Officer. The Board has made many studies regarding this matter. Ted Cleveland ,,spoke to the Board regarding Ed Brown's qualifications as the Data Processing Director. He has heard rumors that Mr. Brown would like to have a dual title of Data Processing Director and Assessor. ', He felt that Mr. Brown would be able tc do both jobs efficiently. Data Processing is very responsible now. They were responsive at the time of Proposition 13. He did not feel that the county could get that type of response from facilities management, The complaints that the Board received relative to the assessments were a result of State Board of Equalization mandates and not the T3ata Processing Department. Bill Lawrence, auditor, felt that there is going to be a continued need for systems development. A11 of the price quotes make the presumption the county will go on for ever requiring a high system support. Page 4870 December 6, 1978 December 6, 1978 He supported facilities management. They have the advantage of bringingT in outside people. The Board should use care in negotiating the contract so it would have a reduction clauseo Supervisor Lemke asked the vendors if assuming all of these items are exactly what they are reported to be that depending on the Board's decision to decide to go with facilities managffe nt and negotiation of the contract could there be an ironing out of buybacks and systems available etc? The Board is operating on the premise that these are only proposals. Mr. Eastman, SCT, felt that the statements were correct. He felt that if the Board looked at a contract there would be flexibility of reduction. Supervisor Lemke stated that he would like to be able to go to the other bidders if in the contract nego€iations an agreement could not be reached. Mr. Carlson,. CSC, felt that was a good way to do business. If the county for ~-.any reason. decides not to go with a system this would result in a reduction of cost. The county is going to have to sit down and negotiate and this does not mean a committment. Mr. Wadsworth, Sierra National, stated that he was in agreement with the other vendors on this matter. Mr. Staszak, SCT, stated that he would like to comment on Mr. Browny remarks concerning costs.,Tfiey_ proposed not only personnel but assumption of equipment costs as well as supplies. This proposal shows a reduction over a period of time. The cost will be higher the first year because of the influx of additional people. They would be assuming total responsibility. If the county wanted to go back to in-house processing the county would reassume the costs and would be building up the credits on the equipment.. They will deal as a buffer for the Board with the vendor and the equipment will revert to the county at no cost to the county except for the continued cost of the payments. Mr. Carlson felt that their presentation was not a reflection on Mr. Brown's performance since he has been director but before he was appointed, He felt that Orange County was in favor of facilities management. Up until last year's election LA County could not contract for full managment facilities management. They did not increase the cost when they took the different counties and cities through a conversion system. If you look at the different proposals it is difficult to evaluate relative to money. Supervisor Lemke stated that he would like to add to what the Data Processing Committee felt regarding money. They agreed that money was not the criteria that was going to be the deciding factor. Mr. Carlson stated ghat it is important that they do not take over the equipment and the supplies, It is not economically advantageous to take over the hardware and the supplies. Anything under one umbrella would have to relate to an increased amount. In some cases they do take the hardware. They have to analyzezto see who is in the best place. In this care the county should keep the hardware. The biggest part of the supply cost is people. Of about $62,000, $54000 is people. Orange County had the same problem as Butte County regarding Proposition 13. The tax bills had to get aut. There was an increased effort and the job was done. There were probably .sixteen people working Page 488. December 6, 1978 December 6, 1978 on the item at no increase in costo There is no way to anticipate certain changes and priorities that come up. They-sit down and evaluate these things as they come up and talk about the cost benefits and change priorities. There were some other subtasks that had to get along without work being done during this time, If the county decides not to implement a program they do not have to pay for it. He felt that if the program is going to work it will be a working relationship between the facil£es management director and the administrative officer. The tax bills were mailed out on October 20, 1978 in Orange County which is five days mare than in the previous years. ' Mr. Fastmem~, stated that his company was the locbest bidder. ', Cost along should not be the determination of who to contract with. They have bid full responsibility. The Board should consider the cheapest cost to get the job done. The one thing he has heard is the need for systems. He agreed to look for a single man might not be the answer. They have praposed a three man team. Supervisor Zemke statedii that he and Supervisor Madigan ', would be having a meeting on Monday morning. They would like to meet with the individual vendors and Mr. Brown or one of his representatives. Clif Nickelson, administrative officer, stated that the analysis of the bids would be ready for the committee members on Friday. The analysis is to be sent to the other Board members< The discussion with the Data Processing personnel will be held December 12, 1978 at 1:30 p.m. ADJOURNMENT , ', There being nothing furthe before the Boar at this time, the meeting was adjourned at 9:30 p . to reconvene on Tuesday, eeember 12, 1978 at 9:00 a.m. i. ATTEST: CLARK A. NII~SON, COUNTY CLE ~ and ex-officio Clerk of the Board of Supervisors By ~ _ __ Chas n, Board Supervis .Page 489. December 6, 1978