Hidden $1.3m IT deal surfaces

A confidential $1.34 million city council computer deal has surfaced in the committee records months after the event.

Council agreed on October 7 last year to spend the unbudgeted amount, but it remained in confidential until appearing in Finance and Risk Committee records today.

Tauranga City Council last year approved spending $1.3million on upgrading computer systems.

The decision was made days before local body elections that ousted seven councillors from office.

The unbudgeted $1.34 million computer spend up was agreed to in confidence by the city council, says a statement released today.

The report remained in confidential because of the sensitive information about council and inter-council networks and the fact that commercial negotiations were required to buy the hardware to address the issues.

The decision followed the arrival of the new management team at council, who highlighted a number of areas of investment to, 'drive improvements and reduce risks for the organisation across the council and inter-council network.”

Additional budgets were sought to increase the council's backup capacity to cope with the growing amount of information held on council systems, to enhance the inter-council network security to bring this in line with current good practice, and work to upgrade Council systems to Windows 7, as the previous system Windows XP, was about to be unsupported by the provider.

Microsoft's support for Windows XP ended in April 2014. Updates to Windows XP would not be released to fix new security issues.

The councillors recognised that project planning for the upgrade needed urgent attention, and that it had to be completed before April 2014, as it was.

Council identified the need to address these areas to ensure Council data is managed well, kept secure and provides a platform to enable further business improvements, which will move more services online, says communications manager Frank Begley.

The development of a digital strategy is now to be considered as part of the ten year plan and comes in response to the growing demands of customers for 24/7 and increased mobile pathways to access Council services.

Councillors considered a report on it on October 7, along with a peer reviewed report on costings to ensure the need for investment was both real and the amount appropriate.

Council approved spending up to $1.35m.

In addition to the trend for storing additional digital information across the council, there have also been two specific projects in the last two years that created significant demand for increased information storage and data protection.

One was the STAR project, which enabled digitisation of all historic Council documents and now puts the Council in a strong position for moving more services online.

And the implementation of the replacement document management system from Dataworks to Objective.

A council ICT strategic review completed in August 2013 also identified that the city council needed to further invest in network and systems to create a good practice approach to security, and to ensure the back-information system was sufficiently sized to protect its data.

Unless addressed, TCC's ability to meet compliance for information retention was at risk, says Frank.

At that time Council was planning to implement a replacement document management system Objective, which could not be protected unless new investment was approved for information protection. The new document management system was successfully installed in early December 2013.

Information council protects includes regulatory information such as building consents, land information, rates, dog licences; in short information the Council requires to meet its statutory obligations such as Public Records Act 2005.

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19 comments

silly council

Posted on 24-06-2014 17:05 | By rotovend

waste of money typical government department wasting on the things that didnt need fixing


?

Posted on 24-06-2014 17:19 | By FunandGames

while this sounds like a necessary decision. Why did the current/new councilors not get informed. It always appears to me the bureaucrats are withholding information from the councilors.


Overit

Posted on 24-06-2014 18:29 | By overit

Theres no end to Technology upgrades. Sounds an awlful lot of money to me. Perhaps this is why it was done in "confidence". Shame we didn't have confidence in Council!


A legacy we are all paying for (in my opinion)

Posted on 24-06-2014 19:23 | By Steve Morris

That's right folks, straight after taking office we clear through the proverbial cobwebs in the councillors lounge and find a neglected IT system about to fall over and a massive backlog of storm-water works promised in 2005 that was deferred time and time again for other spending. Without these issues our rates rise this year could have been under 1%. Not to mention a Southern-Pipeline project half complete which simply wasn't thought through by previous elected members to a level befitting a project which is going to cost us well over $100m. We're dealing with big issues here folks. My ambition is to see a period of financial stability now, keeping rates down toward 2% and net debt under $400m. Big challenge, but you'll get to fill out my report card in two years time!


Advice from IT Integrator

Posted on 24-06-2014 19:26 | By Aviation nut

The driving force for computer hardware replacement should be whether or not their is an actual performance issue. Windows XP expiring does not offer a huge risk if computers are operated correctly, firewalled and surfing habits are appropiate. I would guarantee the council would have appropiate systems in place to do exactly that. Doing IT upgrades because a supplier says you should only increases their bottom line. Unfortunately public office IT departments have a different view to private companies. Think smarter council, it's not really your money is it!


STARS project

Posted on 24-06-2014 21:59 | By YOGI BEAR

Isn't that the project to scan everything, that has now caused yet more unnecessary cost, why? besides that these 60 odd staff contractors were meant to be gone years ago anyway, looks like that they are there to stay, why?


Price

Posted on 25-06-2014 09:13 | By Raewyn

I cant believe it has cost that much to upgrade their system, someone has taken them for a ride or is it the staff members have all got new computers plus new phones so they access the internet anywhere. They could have upgraded the computers they already had!


Questions for Cr Morris

Posted on 25-06-2014 10:07 | By Annalist

Trying to get my mind around this expenditure. So is this new IT system needed? Was the new pipeline needed to keep pace with growth and keep sewage out of our precious harbour? With the long deferred stormwater projects, what projects was the money spent on instead? Finally, does anyone really believe that a 5% "levy" isn't really a rates rise?


gone

Posted on 25-06-2014 10:37 | By dumbkof2

for that amount of money we could have done away with all the councilors and let the computers do all the work. Cant see where it can cost that amount of money to upgrade


Irresponsible TCC Staff

Posted on 25-06-2014 13:57 | By Jitter

The CEO needs a good kick in the bum over this as Microsoft were warning users for months that XP would be unsupported after April 2014. If the CEO was not fully aware TCC IT staff should have been and should also have been aware of the consequences. You can continue using XP but it is at your own risk and a large "commercial" organisation like TCC should have been fully aware of this but should not have been prepared to take the risk. Nice one Steve you are right on the button in all of your comments. In the past successive councils have ignored the advice from experts in the community on many projects, the Southern Pipeline being a prime example. Where will it end. I see a billion dollar debt on the horizon.


@ dumbkof2

Posted on 25-06-2014 15:34 | By YOGI BEAR

Agree but you are over looking an important factor, I quote the words of wisdom of ex Cr Bill Faulkner who not so long ago said "Anything Council does costs three times anyone else". Of course I think that Bill was being rather conservative with his comments there but nevertheless there is a lot to be learned from it for sure.


Think!!

Posted on 25-06-2014 20:30 | By jed

These costs sound reasonable to me. It is quite a bit of work to upgrade machines. I completely disagree that leaving windows xp in place is an option.Council spend millions on legal but people complain when they spend 1 million on IT?


@annalist

Posted on 25-06-2014 21:31 | By Steve Morris

Yes in my opinion the IT upgrade was needed, but it should have been done gradually over years. Not left to a big bill and crisis at the very last minute. Re Southern Pipeline, the business case was built upon strong growth in Tauranga West, and smaller section sizes. Now that it has been determined that the market is asking for 'larger' sections ( 500sqm+), the total number of dwellings (once the urban growth areas are developed) will be less. That means less money from development to pay for the pipeline so the debt becomes rates funded. The pipeline may never reach full capacity on current population projections out to 2063 too. The fundamental question "what if growth or intensification doesn't happen as projected?" wasn't given due weight in my opinion. Re stormwater, yes the levy is a rates increase tagged specifically for core infrastructure.


@ Steve - Southern Pipeline

Posted on 26-06-2014 11:34 | By YOGI BEAR

You say "what if growth or intensification doesn't happen as projected?". I would put it to you that the "planned" growth can not happen as it assumed that the 2005-2007 level of growth would continue as "normal" every year for 50 years. Sadly that is not going to happen and never was. What we have here is a financial, ecological and planning nightmare of biblical proportions for Tauranga Ratepayers.


before you draw and quarter them

Posted on 28-06-2014 10:12 | By NRG-TGA

http://www.computerworld.co.nz/article/548199/ministries_dhbs_spend_more_than_2_million_xp_extended_support/?utm_source=www.computerworld.co.nz&utm_medium=rhs_editor_recommendatons I think I would rather pay for the upgrades than pay these prices for extended support and still be on an obsolete system which still needs an upgrade! Good on you TCC it makes sense and turns out to be more fiscally responsible than many other Government agencies.


A deal has surfaced

Posted on 28-06-2014 17:51 | By Jeromy Murkin

The decision was made days before local body elections that ousted seven councillors from office. A confidential $1.34 million city council computer deal has surfaced in the committee records months after the event. What else is hidden away that has already been confidentially agreed to by council, an unelected board maybe, Tauranga council is in dept up to the arm pits but keeps spending, an unelected board made up from local iwi will stop the spending!, yes,no, yes???.


NRG

Posted on 30-06-2014 13:50 | By YOGI BEAR

Don't think that is the whole story here, the $1.35m secret deal is for a lot of new toys as well, the XP thing is just a simple OS upgrade, nothing more.


New Toys

Posted on 01-07-2014 18:37 | By YOGI BEAR

So what really happened is that the plan was tabled at the last minute for Councilors just before most were sent out the door bags packed and one way trip. But sadly they left the bill behind when they left, just typical.


Who's accountable

Posted on 22-07-2014 10:12 | By Mike Lehan

Every business needs to keep abreast of technology to operate competitively so this is a good thing. What I can't understand is why this was kept under wraps for so long by mayor Crosby, what was he and the exiting council hiding....the other question is now that this has surfaced is Crosby going to be held accountable - full disclosure, mr Crosby, is what the ratepayers demand, you wouldn't last in private business operating like this, Tauranga city council you need to sort this out!


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