Call to Order and Roll Call
The second meeting of the Capital Planning Advisory Board was held on Tuesday, August 12, 2014, at 9:00 AM, at the Administrative Office of the Courts building in Frankfort, Kentucky. Representative Terry Mills, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Stan Humphries, Co-Chair; Representative Terry Mills, Co-Chair; Senator Whitney Westerfield, Representative Tom Riner; Charles Byers, Laurie Dudgeon, Carole Henderson, John Hicks, Sherron Jackson, Mary Lassiter, James Link, Mark Overstreet, and Katie Shepherd.
Guests: Van Knowles, Shane Stevens, and Joel Thomas, Program Review and Investigations Committee staff, Legislative Research Commission; Glenn Thomas, Director, Division of Information Technology Governance, and Mike Hayden, Communications Division Director, Commonwealth Office of Technology; Steve Rucker, Deputy Secretary, Corey Buckman, Legislative Liaison and Kentucky Business One Stop Portal (KyBOS) Executive Branch Coordinator, Finance and Administration Cabinet; and Noel Caldwell, Executive Director, KyBOS, Secretary of State's Office.
LRC Staff: Shawn Bowen, Katherine Halloran, Jennifer Luttrell, and Josh Nacey.
Approval of Minutes
Chairman Mills said it was necessary to reapprove the minutes of the September 24, 2013 meeting due to the lack of a quorum at the May meeting. A motion to approve the minutes of the September 24, 2013, and the May 27, 2014 meetings was made by Senator Humphries, seconded by Ms. Lassiter, and approved by voice vote.
Chairman Mills announced that Carol Palmore has resigned as a member of the board due to personal obligations. Ms. Palmore was appointed in April 2011.
Welcome and Comments
Laurie Dudgeon, Director, Administrative Office of the Courts (AOC), welcomed board members and guests. She discussed the acquisition and renovation of AOC’s new building, noting that it was acquired through a $5 million lease-purchase agreement in 2011, and renovated at a cost of $6 million.
Information Item
One information item was included in members’ folders regarding the University of Kentucky Construct Student Dining Facility project. This $35 million project involves a public private partnership (P3) with Aramark, whereby the company will provide 100 percent equity to improve, expand, and potentially manage UK dining. The project has been included in the university’s last three capital plan submissions to the board. No action was required.
Instructions for the 2016-2022 Capital Plans
A motion to approve the Instructions for the 2016-2022 Capital Plans was made by Ms. Dudgeon, seconded by Ms. Lassiter, and approved by roll call vote. The motion included the authorization for staff to make technical and editing changes as needed. This item was presented and approved at the board’s May 27 meeting, but required reapproval due to the lack of a quorum in May.
Legislative Research Commission Program Review and Investigations Committee Staff – Information Technology Study
Van Knowles, Shane Stevens, and Joel Thomas briefed members on a study of the state’s information technology (IT) resources. The Program Review and Investigations Committee voted in December 2013 to study whether technology used by state government agencies is appropriate and up-to-date. State agency leaders and technology managers will be surveyed via questionnaires and interviews. As part of the study, staff sent board members a questionnaire seeking their opinions on the capital planning and budgeting process for IT projects. Chairman Mills urged the members to complete and return the questionnaire as soon as possible. The responses will be shared with the board at a later date.
Relative to a question from Senator Westerfield, Mr. Knowles said the responses to the survey will be compiled by staff and presented at the November 2014 Program Review and Investigations Committee meeting.
In response to another question from Senator Westerfield, Mr. Knowles said with the exception of certain state agencies, such as the Kentucky Retirement Systems, the Commonwealth Office of Technology (COT) is consolidating Executive Branch information technology functions in accordance with an Executive Order issued in October 2012.
Mr. Jackson asked how the results of the study will compliment the information technology report and recommendations the board receives from COT during the capital planning period. Mr. Knowles said any recommendations for improvements to the planning and budgeting process will be included in the final report.
Relative to additional questions from Mr. Jackson, Mr. Knowles said the study does not include a review of the adequateness of the current capital project thresholds. Postsecondary institutions other than the Council on Postsecondary Education were not included in the survey process. The inclusion of the institutions would have expanded the scope beyond what the staff could manage.
In response to a question from Chairman Mills, Mr. Knowles said the study does not include a method to assess the public perception of state government information technology and its usefulness and appropriateness.
Chairman Mills said Program Review staff may be invited to a future board meeting to discuss the results of the completed study.
Capital Projects - Finance and Administration Cabinet - Next Generation Kentucky Information Highway
Steve Rucker and Mike Hayden discussed the Next Generation Kentucky Information Highway (NG-KIH) project. Phase I was authorized in the 2014-16 Executive Budget (HB 235) with $70 million in federal, state, and other funding. This phase will develop an integrated, dark fiber optical network consisting of about 3,000 miles of fiber infrastructure statewide. Estimated to cost about $100 million, the project will incorporate the current and best available technology at a speed of up to 100 gigabits per second. As the project moves forward, Eastern Kentucky will be a priority area.
In response to a question from Senator Westerfield, Mr. Hayden said geography and population are key components affecting the availability and cost of Internet in Kentucky.
Relative to a question from Senator Westerfield, Mr. Hayden said the average nationwide cost for 20 Mbps Internet is about $75. Mbps refers to the download speed of an Internet service connection.
Senator Westerfield asked if this network will be the sole Internet service provider upon completion of the project. Mr. Rucker said the project is a middle mile open access network, and multiple entities will be able to utilize the network and provide services to users.
In response to questions from Ms. Lassiter, Mr. Rucker said “dark fiber” refers to fiber cable that has been laid but not in use. Telecommunications equipment attached to each end of the fiber cable provides connectivity to a site and determines Internet speed. Telephone carriers provide between 6-15 Mbps, and cable companies advertise up to 50 Mbps. The capabilities continue to grow, but the limiting factors have been the last mile component pieces and some of the transport middle mile costs and efficiencies. It is anticipated that this project will address some of those costs and efficiencies.
Relative to a question from Senator Humphries, Mr. Rucker said this project has two associated solicitations, one for private partners to provide investment, engineering, design, construction, and build, and another for a stand-alone investment partner. As many as 22 companies have shown interest in participating in the project, which is scheduled for completion in April 2016.
Mr. Hicks said this is a unique, statewide capital IT project involving the entirety of state government and the postsecondary institutions. Kentucky is deficient in dark fiber, and this project will expand the size and speed of the network.
In response to a question from Ms. Dudgeon, Mr. Rucker said the telecommunications equipment is included in this project for government entities. For other entities that want to join the open access network, they must provide their own telecommunications equipment.
In response to another question from Ms. Dudgeon, Mr. Rucker said states with adequate fiber optic cable have received federal money/grants to fund these projects.
In response to a question from Chairman Mills, Mr. Rucker said the fiber optic cable laid in Eastern Kentucky will be supported by utility poles. In Western Kentucky, the fiber optic cable will be buried and/or supported by poles.
In response to a question from Chairman Mills regarding the redundancy of the network, Mr. Rucker said that, if there is an interruption in service, the communications will re-route in another direction. The federal Public Safety Network, which is in the early stages of development, may be available for use.
Capital Projects – Secretary of State - Kentucky Business One Stop Portal
Mr. Caldwell and Ms. Buckman updated members on the progress of the Kentucky Business One Stop Portal (KyBOS) project. The project is a result of Senate Bill 8, 2011 Kentucky General Assembly. The goal of the Portal is to provide a single, unified entry point for business owners to access and complete state services and requirements in relation to the creation or operation of a business in Kentucky.
Chairman Mills asked if there is a timeline for implementation of Phase 2. Ms. Buckman said staff is working with various state agencies to develop the requirements for this phase, and a timeline should be available soon.
In response to questions from Chairman Mills, Mr. Caldwell said staff plans to meet with the Commission on Small Business Advocacy at its next meeting to address the recommendations and concerns the Commission noted over a year ago. The KyBOS Office has received feedback from the business community regarding the use of the Portal, and as a result, some of those recommendations are being incorporated into the development of the Portal.
Mr. Buyers asked if there are plans to expand KyBOS for citizen use. Ms. Buckman said an enterprise-wide e-pay system is being developed, and there has been discussion about a long-term vision for a citizen portal. Mr. Caldwell said the tools being purchased for KyBOS today may facilitate citizen use in the future.
Next Meeting
Chairman Mills said the board will meet October 24, 2014, at Western Kentucky University in Bowling Green.
Adjournment
With there being no further business, a motion to adjourn the meeting was made. The motion was seconded, and the meeting adjourned at 10:49 AM. A tour of the facility followed the meeting.