the fact that there are -- much of this increase is due to transfers in the redevelopment agency. we're using these increases based on the controller's numbers. she is correct in pointing that out to you. i would reemphasize that. it does not change our recommendations. it is a fact. our recommended reductions to the proposed budget for 13-14, is ongoing savings and 1,500,000 is savings. we're still working with the department and we will report back next week. supervisor chu: thank you and thank you to the city address trader. we will see you back next week. perhaps you'll be staying for some of the other gsa departments. next apartment is the department of technology. i am going to plead for your concise presentation and

answers.

>> the afternoon, supervisors. acting chief information officer. i will try to be concise. you have the handout before you. i will touch on a few of the high points. hopefully that will give you time to ask questions if you would like. i want to highlight the two-year budget outlook. we're seeing a slight increase although we are achieving our savings goals. the increases are due to the fact that we have some adjustments to salaries that will take effect, that will increase our overall budget. on the next slide which i think there is the more relevant one

that i have asked you to look at, we're still seeing the downward trend overall in the last five years of our budget. this year, what we hope to achieve is achieving our savings goals and see a leveling out of the staffing levels. we're seeing a slight increase in staffing as we start to transfer in some functions from other important projects as we support the airport project and other projects we plan on bringing some additional staff back into the department. i asked a lot in a previous hearings how the city i.t. budget compares to the rest of the world, to our peers out there and we have done a study over the last year. it is a complex question because we are a highly decentralized organization. 25% or 35% of the spending is

recognized. the overall budget for the city if you add up all the departments'budget is fairly consistent for we see in the u.s. our uniqueness is the fact that we are highly decentralized in the fact that only 20% of the staff i.t. work force works in our department. the restaurant in supporting the departments directly -- the rest are out in supporting the departments directly. we split our budget into five major areas, divisions, if you will in our department. we have our basic operations which is a very large part of our budget. this is all the behind-the- scenes spending to keep the datacenter running and support

the mainframes and things like that. we have another part that we call the public safety area which is focused on the technologies related to public safety and wireless communications for radios and data transfer and the public safety agencies and out in the field. we have another area focus on database services, innovation, applications, that is one of the areas that we're starting to rebuild overtime. it is where we are transferring, some of the staff back into that area that had been allowed to in the departments. we have a government and our reach budget -- outrage budgout. we facility those meetings and stuff was meetings to ensure departments and getting the funding and support they need and we support the strategic plan and the policies around them. we do important work toward the

connecting you and other commissions to the public through sfgtv and the website where we support over 60,000 web pages. our final area is the administration area which to some can look to be a rather large percentage but that is where we pay all the phone bills for the city out of that so we are -- the caretakers for large amounts of funding on behalf of other city departments for some of those essential services. i have been asked before, what do we get for our money? what is the result of that investment? i will not read these achievements in details -- in detail. this is the day-to-day operational things we do to keep the systems running. we manage the fiber systems and manager agreements with vendors, a key vendors to do strategic projects like phones and voice-

over ip and public life i -- wi- fi. we are maintaining the uptime and we have a large federal a funded program. we are establishing computer centers to get under privilege and underserved people connected to the internet and to broadband services and training and technology so they can utilize the skills. we continue to work with departments to redesign their websites, develop applications for them, and give them the support they need as they implement new technologies. a lot of these new projects you hear about out there that are essential like online forms for the treasurer and tax collector and assessor. there would not be successful if we did not manage the systems behind-the-scenes said that the data center was available at the network was available and things

like that. i am happy to report because we have got some great leaders and brake hard workers, a lot of the funds your allocated went to developing and supporting these new technologies. that resulted in a number of awards and recognition at a national level especially around the things we're doing with social media and interacting with the public through facebook and the mobile applications we have launched on the iphone and android phone citizens -- systems. they can watch these board meetings and listen to audio recording -- recordings in a mobile way. which i think is for us and new and exciting era that we are providing. when we surveyed the public and talked to the public, one of the key things is to better connect city government to the public

and to restore the public trust. just to remind you of some of the current and ongoing projects that we have talked about in the past and we continue to support in the department. we have the data center consolidation project. we're now entering into the second year of that two-year project. we have the e-mail conversion project. we're continuing to work on that. we continue to expand fiber and to leverage that as revenue opportunities to. we continue the refresh program which is focused on helping departments to -- should not have the funding for new pc's and equipment they need to combine their buying power to get some of the new equipment they need to use these technologies. they're very old computers in the departments which is limiting their ability to take advantage of these new technologies. the good news --

supervisor chu: i know that supervisor chiu has joined us. i think he is here with us. president chiu: a quick question is to the comptroller's office or the mayor's office. every year, we get an accounting of what all the various i.t. budgets are across other city departments and we have a lot of detail from mr. walton about his department. do you have an analysis of i.t. spending in other departments? >> good afternoon. we did do an analysis this year to look at the budget, both this past budget and the proposed budget for i.t..

the amount is $100.90000000 -- $190 million. president tchi: have begun an analysis of what the actual saar for this past fiscal year compared to what we budgeted. last year? >> we could do that. i do know that in some instances, the funds are spent in a different fiscal year of then in which there were appropriate. we have a large project that may be funded but it takes two years to expand the money. the budget and the expenditure are not necessarily a match but we can provide the total spending to the committee as well. presdienident chiu: the puc's actual was higher than was

budgeted and i wanted to get a sense of whether that is the case for other departments. >> it is very likely, the puc and most of the enterprise departments, they do budget in one year even though it might take two or three years to spend the money. it would not necessarily be uncommon for those not to match perfectly but we can provide the information on an actual basis. president chiu: we all agree with the goal of centralizing our technology we can but it does seem as if the department of technology's budget, we have been forcing them to engage in cost-cutting but the i.t. budget still remain very substantial. that is something i think all of you know i've been focused on. i have a number of other questions but our colleagues have been here for a long time. i will ask them in private. thank you for being here. >> thank you.

supervisor chu: i appreciate the presentation and i am glad we're moving forward with the [unintelligible] this is something i asked about last year as well. converting to a look from lotus which is something i was surprised -- i did not know it existed so i cannot call a old. i'm curious as to how that conversion is going. i heard that, the types of microsoft outlook that we purchase was causing e-mails problems. people were losing their e-mail and a number of things were happening. which prevented the rest of the system from getting converted. i was wondering if you could talk about that. >> i will talk for about that. i do not have the specifics but i can share with you my

observations. i will -- i apologize that no one knows that lotus exists anymore. we're happy to convert to a new consolidated the mayland platform, a cloud based e-mail system similar to gmail. the system that we were license was the first generation of the microsoft on-line e-mail system that, clegg's referred to as -- commonly referred to as bpus. when we followed up with department, kohler this thing's k.r.g. user training. a lot of people that not realize where to look for their e-mails are messages. we did a lot of investigations and we could not find any cases

were anything have been deleted or lost. the good news is there has been -- the comptroller's office, we converted them. the department of human resources and others, that has been one of the more satisfying projects because everyone who goes all the new system is excited and the fact it has more functionality and is using -- easy to use and what they're used to using. we're about to embark on a microsoft is changing the first generation of e-mail. they have been doing that for the last six months and we're in line to get the city system that is upgraded. that has even additional capabilities that the first generation did not have an ally of the departments that expressed concerns about the functionality of the first

generation have told us that there excited about getting on the new version. supervisor chu: what generation of all look are they on right now? >> they are transitioning all of their users that are on the initial system to the new season -- system. >> now they're moving to it through 65. there is nothing in between? >> it is a rare branding of their product. is it behind the scenes of great. there is nothing we have to do. it is what they call back office upgrades that will get to realize the benefits of. supervisor kim: in all the years that outlook has been around, they're still on the first generation and their expanding? >> they upgrade exhaust --

microsoft exchange. the first online a-list and -- system was cold -- called bpaus. this is a significant upgrade. supervisor kim: will there be a transition without any additional work? >> vehrs about 100 pc's that we have to upgrade which we're in the press' of a journalist jeffrey it does require yuima -- we are converting. supervisor kim: i was promised that the board of supervisors would be on outlook last year

and the whole fiscal -- i have a hard time accessing e-mail. when i am here i am in chambers or meetings and i am curious as to when that will happen. >> we continue to work with the clerk of the board. supervisor kim: do you have a deadline? an entire fiscal year has passed and i was promised this would happen. >> i will check with the clerk and see if we have established a firm debris we want to make sure we do it in partnership with the clerk and all the board members are comfortable with that date for the conversion. based on our conversation, they are very excited about the new office 365 coming out in august for us. soon after august as possible, we will get you on the new system. supervisor kim: why did we not pick a gmail or cloud-based

system? why is it we did not move to a system like that? >> the subcommittees' went through a least a year of discussion and analysis with various e-mail systems. willits that the newer version of lotus and it was the recommendation of the city that we go with exchange. we have 70 e-mail systems that we support. wanted -- wanted to implement something that would get accepted widely by the city and jameel was discussed but we looked at the project and we thought we could overcome the challenges by going with the exchange. supervisor campos: thank you. -- supervisor kim: thank you.

>> i will go back to my last few slides really quickly. on the major project update, supervisor jim pointed out we continue to roll out e-mail. we are hoping to speed that up now that the new version is coming out in august. the data center consolidation project is going well. we're pleased with how that is going. we had some great successes on the city wide broadband program, ruling out free wi-fi sites and the btop program, connecting homework and community centers to the internet to get connected. we continue our voice-over ip project. dark fiber leasing, we continue to expand that. we finished a couple of projects and we have one under way to

release them some fiber and we're working on america's cup project and things like that for dark fiber as well. we feel that we can assist the city -- we have analyzed the phone bills to look for unused lines and different rate plans to save the city on phone costs. we have a program where we are reviewing all technology purchases, we look for areas where department are buying things we think there is a cheaper way to do it and we work with them to realize some cost for the city and we continue to work on the program or we get people to buy software products together through software agreements. we renewed our buy -- via

program and we save almost a million dollars a year. we implemented a few other city- wide software agreements for geographic informations systems and for pdf software so people could utilize those without having to buy their own software. we are working with the other big vendors. contracting has always been a decentralized function in the city between departments. sometimes getting everyone to come to room -- a room and agree can be a logistical challenge. >> i am wondering if you can follow us on an estimate of what we think we have helped the city to save with these efforts. i am not sure what we have been able to save in terms of eliminating the land lines. as we get rid of those landlines we are exponentially increasing

our salary -- cellular plan. we have our old previous fines and now we have data plans on the phones so the growth and expense in our technology and how much we are spending seems to be going up. i would love some -- like some backup information and if we are going down acellular path, what can we do to reduce expenses? i wonder how we plan to rule that out over time. we had put in the budget this past year money to invest in pursuing those contract projects. i do not have any sense of where those are and where the big ones that are left to be negotiated. can you provide that information for us? >> we will do that.

we do have an active intern program where we have brought in insurance to work on various programs. on our website, maybe translation services are not perfect. we do maintain 60,000 web pages. we would get very literal direct translations of all those web pages after they were -- if departments cannot afford those specialized excellent translation services. we do work with departments to allow users to translate the basics of this pages into their chosen language. all the technology we're putting in place, with six different languages. the equipment we put into the site support english, chinese, russian, spanish, of the vietnamese. that is the end of my

presentation. supervisor kim: thank you. do you have agreement on any of those areas? >> we have not had time to reach agreement on all the areas. we did have agreement on one item for $8,000. sales tax. supervisor kim: we will not be taking action on them. just a question. there is a number for -- of project closeouts explained at page 91. i am imagining that some of the unexpended balances, there might be -- never mind on that. >> it is interesting to note that the department agrees with $8,000 of our total recommended reduction, close to $3 million. we have an agreement of $8,000.

if i sound sarcastic, i am. our recommended reductions -- of that amount, over 1 million is ongoing savings and 239,202 is savings. we recommend closing out to the general fund. these are prior year and expended general fund incumbrances, resulting in a 12- 13 of 1,200,000. on 13-14, the recommended is -- these would result in over 1

million into the general fund. the supervisor campos: thank you -- supervisor chu: thank you. supervisor kim: i have concerns about the surplus that the report has brought forward. we need to do eckerd budgeting and there are a number of priorities so i hope we can get some sort of resolution there. i -- i believe it was being allocated for $169,000. last year we spent 1000 -- part of it. we're allocating the appropriate amount of funding.

there is challenges around the acquisitions. we should try to be more aggressive about budgeting for what we think we can accomplish in the following year. supervisor chu: thank you. our next department is the human rights commission. >> i have reduced my presentation by tasered so we will go through quickly. primarily this presentation will concentrate on what impact that has overall.

to the human rights commission. as you recall, the human rights commission chartered functions to study discrimination and deal with and media -- and mediate [unintelligible] prepare and disseminate educational materials about prejudice and discrimination, provide guidance, a technical assistance to public agencies and public private institutions. we enforce the sanctuary city ordinance, he'd crime coalition, we facilitate the human trafficking collaborative and also, the anti-policing programs. the divisions as it is right now in