Houston Information Technology Services

Houston Information Technology Services

FY2022 Budget Workshop Presentation

Lisa Kent, Chief Information Officer

May 17, 2021

Functional Org Chart(in thousands)

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Revolving Fund Projected Budget $88,494FTEs: 202.0

Director &Resource Mgmt.

$6,075FTEs: 19.7

Enterprise IT Governance & Strategic Planning

City Council coordination

Public information requests

Enterprise contract administration

Asset management Records management Administrative support

EnterpriseApplications

Services

$23,791FTEs: 54.4

Enterprise application platform support for citywide financial, HR & procurement (SAP)

Enterprise Geographical Information System (GIS)

Citywide websites and intranet development & maintenance

Database Services Data Marts, data

warehouse, open data portal

Enterprise document management & workflow (OnBase)

Public Safety/HEC application services, includes 911 Computer Aided Dispatch application maintenance & support

EnterpriseInfrastructure

Services

$42,485FTEs: 64.5

CSMART / Municipal Courts

$1,717FTEs: 10.2

System Administration

Maintenance & Technical Support

Enterprise Data Network services & maintenance

Telephone / Voice services & maintenance

Data Centers User account services Servers & Storage Desktop & field

support Enterprise messaging

& Office 365 support IT Service Desk Public Safety/HEC

infrastructure support

ProjectManagement

$ 2,557FTEs: 15.8

Project Management Technology CIP

coordination IT Governance

Public Safety Radio Comm.

$6,619FTEs: 28.2

Radio Communications Subscriber Services (mobile and portable radio configuration, deployment, and repair)

Field Services & Radio Network Operations Center (radio system engineering & support)

Radio Training

Cybersecurity

$5,2520FTEs: 9.2

Enterprise Cybersecurity policy, vulnerability management, & incident response

Department Programming

Director’s OfficeProvides citywide IT services including governance and strategic planning; contract administration, compliance, spending analysis, and invoice processing; technology capital planning; asset management; technology procurement coordination; HITS and citywide support for open records requests.

CybersecurityResponsible for Enterprise Cybersecurity policy, vulnerability management & incident response. Developed a multi-year Cybersecurity master plan where the FY22 area of focus is expanding the use of automation, artificial intelligence (AI) and machine learning (ML) to identify, protect, detect, respond and recover from cyber threats from nation states, organized criminals, hacktivist groups and insiders.

Enterprise Infrastructure Services (EIS)Responsible for building next generation IT infrastructure and capabilities to enhance capacity, agility and resilience of the City’s technology systems and services. Provides the City’s enterprise data network and telecommunications infrastructure, internet access, server and storage platforms (both on premise and in cloud service provider environments), data centers, end-user computing, O365 email and user authentication, and a variety of system management tools.

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Public Safety CommunicationsProvides planning, management, and operations for the City’s mission critical public safety radio communications infrastructure and end-user devices including portable (handheld), mobile (in-car) and console radios within the Houston Emergency Center. Supports Police, Fire, Emergency Management, Public Works, Solid Waste and other departments. Manages infrastructure, applications and radio communications on 24/7/365 basis. Provides on-scene support during activations of the City's Emergency Operations Center and special events.

Enterprise Applications Services (EAS)EAS is comprised of Enterprise Resource Planning (SAP), Data Management, Enterprise GIS, Enterprise Data Analytics, and Cloud / 3rd Party Application Management. Each is responsible for the ongoing support of numerous applications and tools that enable city-wide and departmental business functions.

Client Solutions – CSMARTManages the planning, operations and maintenance of the Court System for Management of Resources and Technology (CSMART). Includes administration of multiple servers and storage environments, payment and image system management, document scanning and database management.

Project Management Office (PMO)Provides IT project governance, scope development, and performance metrics. Identifies project alignment to support Resilient Houston, Plan Houston and the HITS technology strategic plan. 4


Statutory requirements - federal laws for data protectiono The Health Insurance Portability and Accountability Act

of 1996 (HIPAA) requires the City of Houston to protect certain health information held in paper or electronic form

o The PCI Data Security Standards (PCI DSS) requires the City of Houston to protect the transmission and safety of debit and credit cardholder data

o 49 CFR Part 1520 – Protection of Sensitive Security Information (SSI) requires the City of Houston to protect and safeguard the disclosure of records and information determined to be SSI

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Financial or societal impact of City service delivery

o HITS provides enterprise technology services that enable all 23 City departments to deliver citizen services. These services span 600+ city facilities, 3,000 voice/data circuits, 14,000 telephones, 38 call centers, 60,000+ network drops, 900+ servers, 3 local data centers plus cloud IaaS and PaaS environments, 17,000 Office 365 enterprise users, the nation’s largest land mobile radio system supporting 18,000+ public safety radios for city and 30 external agencies, and a variety of enterprise applications, web and GIS services for 21,000 employees.

o HITS technology also contributes the following environmental savings:

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Revenues By Funds($ in thousands)

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CategoryFY20

ActualFY21

BudgetFY21

EstimatesFY22

Proposed

Variance FY22 Prop/FY21 Estimates

%Change

Revolving Fund 65,780 84,867 80,156 88,494 8,338 9.8%

General Fund 1,938 n/a n/a n/a n/a n/a

Total 67,718 84,864 80,156 88,494 8,338 9.8%

FY2022 - Revenues Highlights

As a central service revolving fund, HITS Department revenues must equal the expenditures (charge back).

Other noteworthy revenue:o $3.5M (FY21) Verizon Wireless rebate

o $1.9M (FY21) Radio tenant services from 30+ Greater Houston region partners

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Expenditures By Funds($ in thousands)

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CategoryFY20

ActualFY21

BudgetFY21

EstimatesFY22

Proposed

Variance FY22 Prop/FY21

Budget%

Change

Revolving Fund 65,780 84,867 80,156 88,494 3,627 4.3%

General Fund 6,081 n/a n/a n/a n/a n/a

Total 71,861 84,867 80,156 88,494 3,627 4.3%

FY2022 Personnel vs Non-Personnel($in thousands)

Proposed FY22 Budget ($88,494)

Non-Personnel Breakdown ($61,196)

FY2022 Budget Expenditures Net Change (in thousands)

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FY2022 - Expenditure Highlights

Projects transitioning to FY22 operating budget:

o Community Transparency Dashboard & Complaint Form ($185K)

o Cyber: multi-factor authentication ($270K)

o Cyber: network segmentation ($225K)

o Cyber: cyber intelligence capability ($119K)

o HFD: Migration to Kronos Telestaff ($288K) and retirement of legacy timekeeping

o HR: Success Factors & Benefit Focus ($1.2M)

o HR: Fieldglass ($175K)

o FIN: Ariba Contract & Procurement Management System ($792K)

o ARA (311): Includes increases for Microsoft Dynamics, citizen portal & computer-telephony integration ($308K)

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FY2022 - Expenditure Highlights

Expanding usage for existing Citywide platforms:o DocuSign (eSignature) $578K increase

800% increased use of DocuSign during pandemic (from 20,000 envelopes in FY20 to 180,000 envelopes to date in FY21). This trend is expected to continue to increase.

o Microsoft Azure: $447K expansion of cloud services

Continuing to migrate legacy data center platforms to cloud to improve resiliency and agility. Includes SAP Disaster Recovery, multiple HITS supported applications, HHD cloud expansion.

o Enterprise telephone contact center enhanced support agreement ($252K)

38 contact centers - largest contact centers: ARA/311, MCD, HHD, and HPW

o Enterprise telephone system expanded managed support and monitoring services ($200K) to provide additional support / monitoring for 14,000 telephones

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Budget History

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Includes General Fund + Revolving Fund

Department Budget Reductions (in thousands)

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Fund FY19 FY20 FY223-Year Total

Revolving Fund 680 0 1,782 2,462

General Fund* 0 0 0 0

Total

FY2022 Reduction Breakdown - $1.782M

o $1.031M - Decrease in Software Support Services

o $350K - Decrease in Voice Services due to telecommunications audit

o $164K - Decrease in Supplies

o $140K - Decrease in Travel, Education & Training, Memberships

o $ 96K - Decrease in Capital Equipment

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Appendix17

Restricted Account Details

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GL Description Justification & Cost Drivers

FuelFuel Program operates and manages all City owned fuel sites. Expense explanation - Fuel services are driven primarily by market pricing

Application Services

Costs include Microsoft Enterprise licenses, 3-1-1 maintenance support and applications, SAP licenses maintenance and support, various Enterprise Application and Server support personnel, CSMART (MCD Only), eSignature, Project Management, Infor, eDiscovery, Cyber Security Office software and support, HITS Budget support via the Finance Department, eSignature

Insurance Fees Cost increase for property insurance premium.

Electricity

Responsible for administering the electricity accounts for the City. Program is responsible for overseeing procurement contracts, forecasting, providing price certainty, and financial reporting. Electricity expenses are projected to be lower than the previous year as a function of the competitive bidding process.

Natural Gas

Responsible for administering the natural gas accounts for the City. Program is responsible for overseeing procurement contracts, forecasting, providing price certainty, and financial reporting. Natural gas expenses are projected to be lower than the previous year due to current market conditions and locking in a rate favorable to the City.

Data Services

Costs associated with software and maintenance support contracts required to maintain city networks, applications, desktop devices, servers, payment card industry security, storage devices, cloud services, telephone systems and network equipment including Phonoscope circuits. Contracts cover Antivirus, Firewall and Network backup systems. Also, the Data Center costs are included in the Data Services restricted account.

Voice Services

Monthly costs for Voice/Communication Services. The services include: Local landlines, voice/data circuits, long distance, 1-800 numbers, calling cards, language lines, Citywide ISP/Internet Access. The major vendors are ATT, Department of Information Resources (DIR), Verizon and Century Link.

Voice LaborLabor costs and parts needed to perform work associated with installation and/or upgrades of telephone systems and cabling. The sole vendor is Selrico.

GIS Revolving Fund ServicesPersonnel, software licenses and maintenance costs associated with the city of Houston's Enterprise Geographic Information System (EGIS)

Voice Services - WirelessMonthly charges for Verizon Business services and mobile devices including cell phones, air cards and tablets.

Interfund HR Client Services Include HR operation cost reflecting health benefits and restricted accounts increase.

KRONOS Service ChargebackSoftware license and maintenance costs associated with the city of Houston's Time and Attendance System (KRONOS)

Drainage Fee Service Chargeback Fee is based on impervious service.

Interfund Permit Center Rent ChargebackThe cost include the HPC Point of Sale cost increase for credit card merchant fee, and lease cost increase.

Interfund Vehicle Services

Provides repair, maintenance, and administrative support for all city departments' rolling stock equipment.Expense explanation - Vehicle Services are projected to increase driven by part cost, contractual increases, and an aging vehicle population.

Interfund Radio System Access

Due to the consolidation of the radio group in General Fund to revolving fund for HITS. This group is responsible for the operation and maintenance of the City's public safety radio system.

HITS Organizational Chart

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HITS Demographics as of 04/20/2021

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Race and Ethnicity

Gender

HITS Strategic Priorities

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Three-Year HITS Strategic Goals

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Department FY2021 Accomplishments

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HITS successfully executed thirteen (13) CRF projects totaling over $14Mo Six cybersecurity projects strengthened the City’s defense and ability to maintain

continuity of operations with the sudden and significant increase of remote workers and COVID related programming.

o One project (ARA/Infor) made enhancements to an enterprise application to improve the way City employees' interface with citizens to comply with social distancing.

o Two projects increased the City’s ability to work virtually with the acquisition of technology (Employee Mobility)

• 1,786 laptops deployed

• Surface Hubs purchased & deployed

• Speakers / Headsets

o Two projects increased the number and technological capabilities of radios for public safety


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MCD Text Messaging Piloto HITS assisted MCD in improving its overall communication with defendants and

internal collections performance by replacing courtesy letters sent via USPS with SMS text messaging. The process sends ad-hoc text messages to multiple recipients (up to 100,000) to notify defendants with information such as upcoming scheduled court dates, emergency court closure (i.e., hurricane, disaster, COVID), and open warrant with instructions to pay.

o 90% success rate of delivery

DevOps Journeyo DevOps is the collaboration between software development and operations through

people, processes, and technology to continually provide value to customers. Collaborated with Microsoft on a roadmap from legacy on-premise hosting to Azure or other cloud application development tools.


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SAP Cloud / SaaS Contracto As part of the City’s Cloud First strategy, HITS negotiated the City’s first SAP Cloud Contract

allowing the City to modernize its ERP/SAP environment from on-premise to cloud-based applications. Moving to ERP SaaS products improves ERP operations by reducing on-site / on-premise system maintenance, security, patching, features updates, etc.

SAP Cloud Products Procured:

• Ariba (contract and procurement management modernization)

• SuccessFactors (HR modernization and benefits)

• SAP Analytics Cloud (SAC) (data-driven analytics modernization)

• Fieldglass (enhanced capacity and support of contingent workforce functionality)

SAP Disaster Recovery in Azure + HANA Databaseo Implemented an SAP disaster recovery solution for the City that in the event SAP

servers/storage are unavailable, SAP will failover operations to our solution in Azure.


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The Enterprise Infrastructure Division refreshed the City’s firewalls with new NGENtechnology which allows, or blocks, traffic based on state, port, protocol, and administrator-defined rules.

The HEC replaced the end-of-life Greater Harris County 81E PBX with the Cisco UnifiedCommunication Manager (CUCM) VoIP solution. This solution upgraded the communicationcapabilities for First Responders, OEM, EOC, Telemetry and Fusion.

Executed cybersecurity projects geared towards: (1) artificial intelligence and machinelearning, (2) ransomware protection, (3) threat intelligence apparatus, and (4) multifactorauthentication expansion.

Resilience and Climate Action

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High-priority Initiatives or Projects

Resilient HoustonGoals/Target/Actions

Climate Action PlanGoal/Target/Action

Cybersecurity Initiatives Action 54

Employee Mobility Action 42

Infor Permitting Portal Enhancements Action 43

Radio Replacement Action 55

Microsoft Teams Enablement Action 43

Technology Access and Digital Inclusion

Action 5Action 7

DocuSign Expansion +800% Materials ManagementGoal 1

MCD Text Messaging Pilot Materials ManagementGoal 1

Documents

Houston Information Technology Services