City-Ops-FYFP-Combined_0 — Intro — Part 4 of 4

Source: PDF pp. 501-508 · raw: 501 · 502 · 503 · 504 · 505 · 506 · 507 · 508

FY 2025-30 Requested Budget Five Year Plan leverage Microsoft’s 365 Purview as well as their Purview Solution Optimization session to ensure the DSPM environment is configured correctly. • Remote Access Gateway Replacement – The City has an aging remote access system that has compromised data security multiple times in the last year. The goal of this project would be to deploy a new replacement platform that is more secure, providing an improved remote access solution to better meet the needs of a workforce reporting from locations across the region. • Multifactor Authentication (MFA) – Microsoft will soon remove SMS, one of the City’s two multifactor authentication options. The City has a requirement to comply with federal security and compliance standards, so a second MFA is needed. This project will explore and implement a second system known as FIDO2. Business Solutions • AI Transformation Initiative – AI (Artificial Intelligence) is a transformative technology that’s becoming more pervasive in software products. To stay ahead and lead this change within the City, this project would position BTS to gain knowledge, set governance, and find the appropriate use of AI within the City before changes happen organically. • WCAG Upgrades – The Bureau of Technology Services is required to meet certain federal accessibility standards in their use of applications, ensuring equal access to digital services for all community members. Web Content Accessibility Guidelines (WCAG) are a set of recommendations developed by the World Wide Web Consortium to make web content more accessible to people with disabilities. This project will allow BTS to meet the legal requirements, promote digital equity, modernize outdated applications, and reduce the risk of noncompliance penalties and reputational damage. • Public Identity Replacement – Public Identity is the ability of a community member to create and then log into various services and applications owned and/or maintained by the City. The custom-built login system currently used by BTS needs to be replaced with something more secure. In addition, the services BTS offers to the community need to be improved by unifying and simplifying how the digital identities of community members function with the City. Public Safety Technology • Public Safety Radio System Network Refresh – Routers and multiplexers supporting the public safety radio system have reached end of life. Some are no longer supported by the manufacturer and failures are difficult and sometimes not possible to repair, replace or receive technical support. This project will replace and upgrade the existing routers and multiplexors. • Radio Site Maintenance and Enhancements – This ongoing project is needed to keep the City’s 14 Radio Frequency (RF) sites, 8 non-RF sites, and microwave system operating at peak efficiency for both public safety and public service agencies across the region. • Motorola System Upgrade Agreement (SUA) – The original implementation of the Public Safety Systems Revitalization Program (PSSRP) included a 10-year SUA for the 800 MHz radio system. That agreement is scheduled to expire in June 2026 and will need to be renewed. The SUA is a critical support agreement that keeps the public safety radio system at current Motorola versioning hardware and software platforms. Doing so mitigates the risks of obsolescence, keeps current with rapidly changing technology and ensures that the system is maintained at a level that meets all operational requirements and security compliance. Project Management

FY 2025-30 Requested Budget Five Year Plan • PPM Tool Replacement – The BTS Project Management Office (PMO) needs a more effective tool to manage projects, portfolios, and resources under the current licensing structure. This project would gather requirements and evaluate solutions to determine if PPM (Project and Portfolio Management – aka Planview) has the functionalities to meet PMO’s needs or if a different solution would provide more value. EBS • SAP S/4 HANA Implementation – This project follows up on the FY 2022-23 infrastructure upgrade to SAP’s In-Memory HANA database and implementation of new servers. The next step is implementing a system conversion to SAP S/4 HANA which will provide an extensive list of new functionalities for the City. Included will be improvements in the finance model, enhanced asset operations, improved treasury and financial risk processes, and an improved user interface. • SAP SuccessFactors Crossboarding/Offboarding – This project will add available functionality to the Onboarding and Employee Central modules of SuccessFactors that will streamline all employee movement with crossboarding and offboarding. • SAP SuccessFactors Employee Central – This project is to move the time, attendance, and payroll functions from the City’s on premises system to SAP Employee Central by adding the Time, Attendance, Leave module and the Payroll module. Making this move will help to streamline these functions, reduce support, increase compliance and improve the user experience. • SAP SuccessFactors Compensation – The Bureau of Human Resources (BHR) needs additional compensation functionality to facilitate a more streamlined and automated process. This project would procure and install SAP’s SuccessFactors compensation module which would provide the functionality BHR is needing. • SAP SuccessFactors Employee Central Core – This project implements SAP’s Employee Central Core along with the following features: Organization Management; Personnel Administration; Employee and Manager Self Service; Visual Organization Charts; Workforce Mobility and Simplified workflows and approval flows. It will provide a user-friendly interface as well as a single place to access Human Resources functionality. Support Center • Remote Control Replacement – The existing tool used by the Support Center for remoting into customer computers is not providing basic functionality consistently. This is impacting daily work for the Service Desk and Desktop teams as well as customer experience with Support Center. This project would fund the purchase of a replacement tool. • AD Activity Pack – Workflows for the Support Center teams need to be more automated. This project would provide an activity pack that would allow for an integration of the Activity Directory (AD) environment into ServiceNow. This improved workflow would give the Desktop team a complete hands-off direct delivery method for fully integrating an onboarding and offboarding experience between SAP, HR and Service Desk tasks, and could potentially replace an existing application and reduce expenses. In addition to projects specifically identified as part of the BTS Five-Year Plan, BTS also has a major role in assisting City customer bureaus with their own multi-year information technology projects:

FY 2025-30 Requested Budget Five Year Plan BHR Payroll and Time Project BHR needs to automate a system process for payroll and timekeeping purposes that will streamline the existing outdated system that has led to a backlog of uncompleted time/payroll tickets and projects. Implementation of these changes is imperative and has been recently delayed due to having to focus on charter reform and issues associated with staffing resource constraints. Information Asset Management Software Implementation The Bureau of Environmental Services and the Water Bureau want to modernize and consolidate each bureau’s existing asset management system. This project will transition Water’s Oracle Utilities Work and Asset Management system to an Infor Public Sector system known as Hansen which is currently used by BES. Accessibility for Web Content and Mobile Apps With the new Department of Justice law now in effect, the City needs to be in compliance with WCAG (Web Content Accessibility Guidelines) C2.1 AA for all public facing web/mobile content by April 2026. The portland.gov website is the primary platform that falls under this law. Currently, the website is mostly compliant with the WCAG guidelines but is expected to be in full compliance within the next two years. All the other public portals/interfaces etc. may pose a more difficult challenge. BTS will be working across the City to identify, create plans, and remedy compliance. This process could result in certain pieces of software no longer being usable by the City. Citywide Continuity & Incident Management Systems (CIMS) This application will integrate several different operational communication and planning tools into a single emergency response solution. Additionally, this tool will allow for efficient resource tracking, and integration of GIS technology in support of emergency management. PBOT Maximo Application Suite (MAS) Upgrade 2023 Maximo is a business-critical asset management system. PBOT currently uses Maximo 7.6 which will be unsupported starting in October 2025. A decision was made to upgrade to Maximo Application Suite (MAS). Revenue Assumptions BTS receives revenue from multiple sources, primarily interagency revenue, followed by non-City agency earnings, with nominal amounts from various other sources. Interagency revenues are mostly rate- based, meaning rates are developed, applied to customer equipment or unit inventories, and bureaus are charged an amount for equipment or services provided by BTS. For those revenues, it is assumed that customer inventories will remain relatively consistent over the five-year period and that rates will increase by inflation each fiscal year. Some interagency revenues are based on an allocation of costs BTS incurs for corporate services provided to the City as a whole. Again, with those revenues the assumption is that recovery of costs through interagency rates will increase each year by inflation. Other interagency revenues are from variable billings to customers for requested services. The assumption for the five-year plan is that requested service levels in the first year of the five-year plan will remain consistent throughout all five years. Lastly, BTS has been and will continue to work towards simplifying rates and/or adjust methodologies based on industry best practices.

FY 2025-30 Requested Budget Five Year Plan Should inflationary projections change, those would lead directly to a change in the revenue forecast. Also, any customer bureau decisions for changes to inventories or requested billable services of a material amount would also affect revenue projections. Expenditure Assumptions BTS builds its forecast on current service levels. The exceptions to that are costs identified in the Five- Year Plan. The assumption is that expenditures will increase at the rate of inflation. Expenditures associated with billable services provided to bureau customers are also assumed to increase at inflation. While BTS knows this assumption isn’t entirely accurate and that external factors such as the economy and the City’s financial condition can have a major impact on bureau budgets, reliance on inflation factors is generally the best and most available data for BTS to use in making its budget estimates. It should be noted that while BTS is using standard inflation figures in their Five-Year projections, these do not reflect the current reality BTS experiences in pricing from vendors for FY 2024-25, and what industry experts are forecasting for FY 2025-26. Factors impacting information technology pricing beyond standard inflation numbers include supply chain issues, collective bargaining agreements, and talent scarcity. With BTS limited to increasing interagency rates at an inflation rate provided by the City economist, the net result will be a decrease in available funding for CIPs and Operating Projects. Costs associated with CIPs and Operating Projects are forecasted over the five-year period on a per- project basis. What that means specifically for BTS is that higher costs are estimated for the first two years, with costs beyond that typically falling. That’s more indicative of the unknown direction of future technology changes than it is of an assumption by BTS that future project costs will be less than they currently are. In addition to this, the first-year costs in the five-year plan are limited to available financial resources. Anticipated costs do not reflect the actual needs which are significantly higher than what’s budgeted. BTS currently has funding gaps and those are expected to continue. They are due to insufficient major maintenance funding combined with an inability to raise interagency rates beyond city-designated inflation. As a result, BTS has prioritized projects and applied available funding to the highest priority projects. All unfunded projects have been pushed forward into out-years. Expenditure Risks to the Forecast and Confidence Level One of the challenges in working with BTS projections is the rapid pace of technology changes. The rate of change makes it difficult to forecast what might occur or be required beyond the next two-to-three years. In addition, with Technology Services being an interagency service provider, much of the expense budget is interwoven with the bureaus receiving services. So, as the needs and requirements of customer bureaus evolve and change, BTS responds to those changes financially by adjusting budgeted requirements. The risk here is the unknown, where BTS can’t always anticipate what customer bureaus will be doing, and, instead, can only react to it. Continued global supply chain issues are also having a major impact on the technology services industry. The rapid pace of technology changes and increased demand have resulted in longer wait times and higher prices.

FY 2025-30 Requested Budget Five Year Plan It's short-sighted and unreasonable to assume BTS can continue meeting the needs of the City under current existing conditions. Maintenance for systems is currently being postponed, lifecycles on hardware and applications are being pushed out beyond what vendors will support, replacement components are no longer available, and systems City bureaus are reliant upon are at risk of becoming non-functional. BTS conservatively needs an additional $7,000,000 per year to support the major maintenance needs of the City’s information technology infrastructure. City Operations - Technology Services Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources CY Estimate Plan Plan Plan Plan Plan Beginning Fund Balance 36,676,798 34,034,248 38,721,138 39,865,922 46,838,038 56,549,727 IA Revenue 92,387,257 100,609,796 105,740,896 114,411,649 119,903,408 129,615,584 Fund Transfers - - - - - - Intergovernmental Revenues 2,530,000 3,440,212 3,615,663 3,912,147 4,099,930 4,432,024 Miscellaneous 1,020,000 1,071,961 1,099,832 1,127,328 1,156,639 1,186,712 Charges for Services 266,770 278,747 285,994 293,144 300,766 308,586 Bond & Note Proceeeds - - - - - - Resource Total 132,880,825 139,434,964 149,463,523 159,610,190 172,298,781 192,092,633 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Expenditures CY Estimate Plan Plan Plan Plan Plan Personnel Services 53,410,000 54,538,712 57,320,186 62,020,441 64,997,422 70,262,213 External M&S 33,181,742 35,104,517 40,816,698 38,892,219 38,472,420 42,562,540 Internal M&S 6,111,432 5,980,919 6,136,423 6,289,834 6,453,370 6,621,158 Capital 12,000 - - - - - Cash Transfer 5,295,734 4,220,581 4,414,728 4,617,805 4,830,224 5,052,414 Debt Service 835,669 869,097 909,566 951,853 995,618 1,040,338 Other Fund Level - - - - - - Ending Fund Balance/Contingency 34,034,248 38,721,138 39,865,922 46,838,038 56,549,727 66,553,970 Expense Total 132,880,825 139,434,964 149,463,523 159,610,190 172,298,781 192,092,633 Planned Perm anent FTE Total 264.0 264.0 264.0 264.0 264.0 264.0

FY 2025-30 Requested Budget Five Year Plan Fund & Bureau Name: Printing and Distribution, Bureau of Technology Services Plan Overview Printing and Distribution (P&D) provides centralized, high quality and efficient print service management and mail delivery services for City of Portland bureaus and several partner agencies. The division’s mission is to be the preferred printing partner for all City business. The P&D five-year plan focuses on replacing equipment and software that is nearing or past its useful life. The replacements will allow for better management of the services being provided, more efficient operations, and better customer service. Technological Change Technological improvements have been a focus of P&D in recent years as equipment failure was leading to higher costs to repair and old technologies no longer being serviced. Over the next five-years equipment and software replacement continue to be a high priority. P&D plans to replace a manually operated piece of equipment with a digital system enabling faster and more efficient operations. The division also plans to upgrade the P&D billing system to allow for better integration of the ordering, processing, inventory, and tracking processes. Revenue Assumptions About 90% of P&D revenues are from City IAs. The remaining balance are from local area governmental agencies, non-profits and the public. P&D monitors trends or possible swings in revenue as future changes emerge, like changes as a result of the new form of government, return to office policies, and rapidly changing technology. Full digital color has become less expensive and is more accessible to the bureaus through their copiers and printers. Color documents printed on these dry toner devices cost significantly less per page than prints produced on laser jets. Office device volume is down more than 50% due to many City employees teleworking. P&D may experience an increase in revenue due to City organizational changes and return to office policies that are slated at the end of FY 2024-25 and into FY 2025-26. Expenditure Assumptions P&D’s expenses ebb and flow with the pass-through expenses of US postage and paper. With most postage rates tied to inflation, these total costs increase with additional mailed communications. P&D anticipates that the volume of target mailings will be relatively stable over this five-year period.

FY 2025-30 Requested Budget Five Year Plan There has been a tightening in the paper supply market, which with many years of economic growth, has pushed prices higher. P&D expects that trend to continue. Printing and Distribution, OMF Bureau of Technology Services CY FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources Estimate Plan Plan Plan Plan Plan Beginning Fund Balance $1,638,95 $1,469,888 $2,203,831 $2,861,775 $3,570,412 $4,227,709 IA Revenue $4,738,171 $5,808,326 $5,959,342 $6,108,326 $6,267,142 $6,430,088 Fund Transfers - - - - - - Intergovernmental Revenues $723,094 $902,850 $926,324 $949,482 $974,169 $999,497 Miscellaneous $78,192 $75,350 $77,309 $79,242 $81,302 $83,416 Charges for Services $1,928 $15,000 $15,390 $15,775 $16,185 $16,606 Bond & Note Proceeds - - - - - - Resource Total $7,180,335 $8,271,414 $9,182,196 $10,014,600 $10,909,210 $11,757,316 CY FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Expenditures Estimate Plan Plan Plan Plan Plan Personnel Services 1,721,958 $1,723,666 $1,811,405 $1,960,056 $2,054,367 $2,220,434 External M&S 2,388,643 $2,779,922 $2,852,200 $2,923,505 $2,999,516 $3,077,503 Internal M&S 1,050,458 $942,536 $967,042 $991,218 $1,016,990 $1,043,432 Capital - $73,075 $133,575 $5,500 $38,500 $88,000 Cash Transfer 311,114 $300,581 $308,396 $316,106 $324,325 $332,757 Debt Service 238,272 $247,803 $247,803 $247,803 $247,803 $247,803

FY 2025-30 Requested Budget Five Year Plan Other Fund Level - $0 $0 $0 $0 $0 Ending Fund Balance/Contingency $1,469,890 $2,203,831 $2,861,775 $3,570,412 $4,227,709 $4,747,387 Expense Total $7,180,335 $8,271,414 $9,182,196 $10,014,600 $10,909,210 $11,757,316 Planned Permanent FTE Total 13.0000 12.0000 12.0000 12.0000 12.000 12.0000

Parent: City-Ops-FYFP-Combined_0 · ← Part 3