External Members:
Ms. Fredrika Taubitz, Executive Vice President and Chief Financial Officer,
Zenith National Insurance Company

Staff Present:
Ms. Anne Valenzuela-Smith, Executive Administrator, Business Issues
Dr. Joseph Zeronian, Chief Financial Officer
Ms. Megan Klee, Chief Information Officer
Mr. Jim Konantz, Assistant Superintendent, Information Technology Division
Mr. Jim Alther, E-Rate Director
Dr. Roger Rasmussen, Director, Independent Analysis Unit
Dr. Charles Schepart, Analyst, Independent Analysis Unit

The Committee approved the November 29, 2001 minutes as submitted.

INTEGRATED STUDENT INFORMATION SYSTEM

Ms. Valenzuela-Smith updated the committee on the progress of the contract negotiations with the preferred vendor for the Integrated Student Information System project (ISIS). The District is responding to the Chanda Smith Consent Decree that requires a Integrated Student Information System (ISIS).
Ms. Rowena Lagrosa, Administrator, Educational Services, is the executive sponsor. Staff has not been able to reach closure on the contract.

Since this will be one of the largest district technology procurements in recent memory, Mr. Kwalwasser, General Counsel has engaged the law firm of Irrell & Mannell to assist the District in the contracting effort.

At the October BFAT Committee meeting, staff had concerns about the proposals of both of the finalists in this potential procurement. A number of critical issues considered as "deal breakers" have been itemized and discussed with the preferred vendor's team, and they are awaiting the response.
Public Comment

Pierre Landry, Chair of the Management Information system (MIS) and Technology subcommittee of the Chanda Smith Consent Decree, complained that he is not part of the project steering committee. He would like to be a member of the steering committee and asked the Committee for their recommendation to be on the steering committee. He asked to review the draft report, but because the report is confidential, District staff indicated to him that he would not be able to discuss the report with anyone else. He would like to see the report under the Public Records Act.

Ms. Valenzuela-Smith responded to the committee members concerns and questions. Following the discussion, Mr. Huizar recommended that District staff make a recommendation regarding ISIS options at the January meeting and that some of the discussion will need to take place in closed session.

HELP DESK AND COMPUTER TECHNICAL SUPPORT PLAN FOR SCHOOLS

Ms. Klee provided a brief description on establishing a Help Desk and providing computer technical support plan for schools.

Mr. Konantz presented the staffing plan to provide local school support in technology, its positions and cost. He commented that ITD is recommending to provide a supervising network technician at each of the 11 Local Districts. The industry standard for computer support personnel is one technology support person per 50 work stations (1:50). It is difficult to reach the industry standard in the District. The District would need 422 micro-computer support assistant positions, plus the 11 supervising network technicians to achieve a ratio of 1:250, which would cost approximately $22 million.

Along with the staffing plan it is important to have a centralized Help Desk in providing computer support to schools and offices. Problems that cannot be addressed at the school or local level will be taken care of by the centralized Help Desk. The Help Desk would be open 24 hours and staffed according to the needs of users. Unfunded is approximately $620,000 worth of customer service support analysis, senior customer service support representatives, and customer service support. The staffing costs for local districts and network computers are unfunded.

Dr. Rasmussen commented that his office had raised the issue of computer support to schools last summer. At that time, it was suggested that one technician per 150-300 computers would be an appropriate support level and the estimated cost would be approximately $20-24 million. His report also indicated that Miami-Dade has implemented a program where there is one full time technical support position at each secondary school at an average of one support employee for every three elementary school. A system such as that in LAUSD would cost about $14 million.

The Committee Members expressed their comments and questions.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)

A presentation was made by Mr. Thomas Snow, KPMG, Simpson & Simpson, and Nunez & Associates to the Board of Education on December 11, 2001, at that time Mr. Huizar requested that Mr. Snow respond to Committee Members comments and questions.

Mr. Snow, Dr. Zeronian, and Ms. Hemingway responded to the committees comments and questions.
Dr. Zeronian said he would provide a plan for funding the unfunded portion of workers' compensation, create a working group on risk management to help decrease claims, provide an overview of how workers' compensation cases are filled and cases are approved and paid, and provide a one-page informative on the history of workers' compensation budget issue.

E-RATE PROGRAM PROGRESS REPORT

Ms. Klee advised that she had invited the two major vendors currently installing the local area networks to attend the BFAT meeting today. She introduced Mr. Joe Kroshi, Vice President of Operations, SBC Data Communications. IBM agreed to attend the meeting, but canceled. IBM sent a letter emphasizing its desire to continue to work with the District.

Dr. Alther reviewed the progress report on the District's Year 3 and Year 4 E-Rate programs. As of today, there are 419 sites that are up and functioning. He discussed the progress made by IBM in meeting the workload. Dr. Alther reported that both vendors are behind schedule in correcting deficiencies. There was a commitment to correct all deficiencies by November 30, 2001, however, most sites still have deficiencies. The District has taken the following corrective actions: Staff requested a new schedule for correcting deficiencies, suggested that vendors concentrate on a few schools at a time, met with higher level management from IBM and SBC, met with the fiber optic vendors and manufacturers to review fiber installation procedures, and continue to meet almost daily with vendors to resolve issues.

Year 4 Vector vendor contract sites should be completed by September 2002. There are 41 Proposition BB schools and ITD is working with the Facilities Division to bring them up online.

Public Comment

Ms. Ana Montes, Technology Director, Latino Issues Forum (LIF), commented that she has been working in the technology area since 1994, addressing the issue of technology access to undeserved communities. LIF has been working on developing model technology projects statewide, including one in Pacoima. She spoke about LIF's report "Connecting California's Children: Is E-Rate Enough?"

Mr. Tokofsky asked that Ms. Montes talk with Mr. Konantz and Mr. Alther as to how LAUSD compares to the findings of her report.

The Committee Members expressed their comments and questions. Ms. Klee was requested to schedule a closed session to discuss possible litigation regarding financial responsibility for asbestos and lead found in schools, and she will prepare an informative on steps taken to make sure that networks at schools are maintained.

Mr. Huizar announced that the Office of the Inspector General Audit of Psychological Services report and the General Counsel's audit tracking system were postponed.

Public Comment

Mr. Buzzetti complimented the Committee on its discussion of E-Rate. With regard to the Office of the Inspector General Audit of Psychological Services, he believes that there are problems with the Psychological Services Unit. He indicated that he has expressed concern about special education to the District Attorney's office. He does not agree with the way LAUSD deals with special education parents, and would like Mr. Mullinax to audit the due process system for special education.

DECISION SUPPORT SYSTEM (DSS)

Ms. Valenzuela-Smith provided a report on the completion of Phase 1 of the District's DSS project. Mr. Gordon Wohlers served as the executive sponsor. The DSS Phase 1 work began in September 2000, and was originally scheduled to be completed by February 2001, however, it was not completed until December 6, 2001. DSS is a data warehouse of student demographic and performance data, providing access to instructional decision-makers via the internet.

Mr. Huizar thanked staff on a job well done.
Ms. Young asked about password protection and whether the public would have access to DSS. Ms. Valenzuela-Smith responded that the DSS is not available to the public yet. The rollout and training will be taking place in the upcoming years, especially in January and February, and it would be focused on the instructional decision makers. Staff will be working on defining Phase II.

Mr. Tokofsky asked about the $20 million in the State budget for a similar SIS project. He wanted to know if the District's Government Relations office was pursuing the $20 million. Mr. Konantz responded that he is working with Mr. Nunez and ORACLE to demonstrate the DSS to the State. Ms. Kelsey Taylor, ORACLE Account Manager, for LAUSD, added that there have been various discussions regarding
SB 204. However, the Governor has proposed removing the item from the budget. The bill would need to be resubmitted in January 2002, to be reconsidered. 'Mr. Tokofsky asked District staff to provide a one page report.

Mr. Lansing stated that administrators are having difficulties accessing the data because they do not have the technology. He asked for an informative on improving network access to administrative personnel.

YEAR 5 E-RATE

Ms. Klee gave a brief synopsis on the Year 5 E-Rate projects. Dr. Alther highlighted key points of the Year 5 E-Rate applications that they will be filing for long-distance and local phone service that connects internet service. The amounts listed in the report are rough estimates and District staff would have more detailed information after the discussions with vendors. Staff looked at applications for cell phones but decided that it was not a viable option due to costs.

Mr. Tokofsky asked about the cell phones and why an application was not filed. He noted that cell phones help deal with safety concerns. Dr. Alther responded that the cell phone application would be too costly, and believes that safety and technology projects funded through Proposition BB should address some of the safety concerns by improving campus communications. Ms. Klee mentioned that there are alternatives under review for putting phones in the classroom. District staff will review the cell phone option next year.

PUBLIC COMMENT

Mr. Michael Salinas spoke about the District's Asbestos Technical Unit.

ADJOURNMENT

The meeting adjourned at 7:40 p.m.

1. Approval of the minutes for the November 29, 2001 meeting

The Committee will take action on approving the draft minutes of the November 29, 2001 meeting.

INFORMATION ITEMS

Ms. Valenzuela-Smith and Ms. Lagrosa (Executive Administrator, Educational Services) will provide a status report on the contract negotiations for an Integrated Student Information System.

Ms. Klee will provide a report on establishing a Help Desk to provide support to schools and offices. Dr. Rasmussen will provide a report on staffing needs at schools for computer technical support.

Ms. Klee and Dr. Alther will provide a progress report on the District's Year 3 and Year 4 E-Rate programs.

Ms. Klee (Chief Information Officer) will provide a report that proposes Year 5 E-Rate projects.

6. Decision Support System (DSS) progress report

Ms. Valenzuela-Smith and other District staff will provide a report on the completion of Phase I of the District's DSS project.

The Committee will review the District's CAFR for the fiscal year ended June 30, 2001 with
Dr. Zeronian, Mr. Kwalwasser (General Counsel), and Mr. Snow (KPMG).

Mr. Mullinax (Inspector General) will present the findings of an Audit of Psychological Services. Ms. Jaque-Anton (Associate Superintendent, Division of Special Education) will provide District staff's response to the audit.

Mr. Davis (Associate General Counsel) will demonstrate the General Counsel's audit tracking system and provide an example of the database report.

The Committee will discuss various organizational issues such as identifying and prioritizing future agenda items, calendaring future meetings, and other related Committee business.

11. First Interim Financial Report

Dr. Zeronian (CFO) will provide the First Interim Financial Report for Fiscal Year 2001 - 2002.

12. Chief Financial Officer (CFO) monthly report on business performance measures

Dr. Zeronian (CFO) will provide the business performance measures for the most recent reporting period.

Ms. Roberts (Director, Maintenance and Operations) will provide a progress report on the implementation of recommendations made by the OIG regarding the Asbestos Technical Unit (ATU).

On behalf of various executive sponsors, Mr. Konantz (Assistant Superintendent, ITD) will provide a status report on the implementation of various IT projects, including the Integrated Financial System (IFS), DSS, E-Rate, Integrated Student Information System (ISIS) and others.

15. Items referred to the Committees by the Board of Education or Committee of the Whole

The Committee may consider and act upon motions, Board Reports, or other business referred to it by the Board of Education or Committee of the Whole, with respect to any properly posted matter at a meeting immediately preceding this committee meeting, where the time between that meeting and this committee meeting is less than 72 hours. Members of the public are encouraged to review the order of business or agenda for the meetings of the Board of Education or Committee of the Whole.

Persons who wish to address the Committee may sign up at the meeting.