Executive Summary

Information Technology -Infrastructure Needs & Funding Approach

April 20, 2010

Prepared by
David Delacalzada, Director -Information Technology

BACKGROUND

The school district's information technology "infrastructure" life cycle is at end on major
telecommunication components. This Includes routers, switches, and servers that are located
at the district office and school sites. Therefore, in order to ensure acceptable service level
operations, various enterprise IT projects are recommended to address risk and capacity issues.
As presented to the Board (March 9,2010), initial priority projects include: enhance MDF/IDF
locations - enterprise wide, re-engineer the telecommunications and network infrastructure
(voice & data), and implement a virtualized server management system that addresses
contemporary email, applications software, and remote management of the infrastructure at
EUSD. This summary provides the prioritization recommendation for these projects and the
proposed funding approach.

ANALYSIS & FINDINGS

Project Identification and Prioritization

The analysis and findings presented herein address enterprise infrastructure control points and
redesign of the districts local area network and applications support components that are
required for daily operations. Recommended IT Projects will include, but not limited to, the
following:

• Re-engineer and design the network to accommodate 21st Century technology, in line with
the EUSD Strategic Plan, the National Education Technology Plan, and the IT Strategic Plan-
3 to 5 Years.
• Improve and replace all out-of-date (warranty) telecommunications, network, and server
equipment.
• Ensure manageability (local and remote) of all critical components of EUSD's infrastructure.
• Incorporate real-time monitoring to ensure performance, security, and system availability
to all departments and schools.

Information Technology- Executive Summary Page 1

---~----------------------
• Develop an infrastructure that is saleable and flexible - one that will be able to support the
current (and future) educational goals of the school district.

Preliminary review and analysis (from several vendors) have indicated that IT projects, to
address the aforementioned, would cost in the range of 1.4 to 2 million dollars. The current
financial and economic landscape has made it difficult to fund this initial infrastructure
enhancement in its entirety. Therefore, the solution that is proposed will be phased in over
time. The following represents the priority areas for this initial phase:

Phase I: Establish a strong IT infrastructure foundation.

~ Operationalize the new Network MDF (in the Information Technology area) and adjacent
office and operations areas.

~ Operationalize the new Server Room and adjacent work/storage areas.-

~ Develop a network design that will accommodate current and future needs, to include a
new LAN/WAN, VolP (Voice Over Internet Protocol), and Wireless infrastructure.

~ Replace all outdated routers, switches, and servers that are located at the District Office
and at all campus School sites.

~ Implement the necessary remote access and support components to support the entire
EUSD enterprise.

~ Implement various computer standards, to include but not limited to, server configuration
and management using virtualization technology.

~ Upgrade all enterprise software applications, such as AD (Active Directory), Outlook,

Websense, and Firewall components.

~ Implement the first phase of an enterprise district "intranet" and associated interfaces
(for school sites and district office).

~ Implement enhanced backup and recovery processes and procedures, to include

hardware and software components, storage, and overall upgrades.

The aforementioned is strongly recommended, minimally, to establish a solid foundation to

which all EUSD projects will be built upon. The other priority phases include:

Information Technology- Executive Summary Page 2

Phase II: Establish a VolP Design/Structure and Build-out School's Intranet System

~ Incorporate necessary wiring and equipment to support the "design" of the VolP
network.

~ Establish API integration to accommodate current and future school applications and
functionality, such as Berbee InformaCast Software.

~ Design and Implement File sharing and Security System(s) to address inter and intra-
school collaboration/communication goals.

~ Engineer necessary components to establish "single portal" access to all EUSD systems.

Phase III: Enhance the Wireless System

The current system will not support contemporary wireless protocol (N specification) for
improved performance and throughput. We will need to initiate phase in of new access points
(and phase out of current APs). Furthermore, consolidation ofthe wireless controllers will be
pursued (Le. standardize on 5508 controller and replace/phase out 4402 controllers). All
wireless networks will need to be evaluated. Establishing core wireless schemes will improve
manageability of the network and improve access.

Phase IV: Implement New Phone System

Rollout new VolP system through phased approach. Establish pilot school (i.e. school with
oldest phone key system). During this implementation transition, training, help desk, and
support procedures be refined and adjusted based on findings from the pilot school. Once
complete, the next stage will be to implement new system at two schools. Rollout to all
campuses will occur over two years, dependent school priority and district goals.

Phase V: Incorporate DataWarehouse System (or Re-engineer APls to Current Application

Systems)

All application systems will need to be evaluated. This includes enterprise applications (Le.
Student Information System) as well as school applications (Le. student assessment tools). The
systems will be analyzed to improve system access and network use; to improve data integrity
and reliability (i.e. establish automated synchronization processes); and to streamline all
associated processes for data input, process, and output (i.e. six sigma lean - process
efficiencies).

Information Technology- Executive Summary Page 3

Financial Considerations and Funding Approach

As was reported at the March 9, 2010 Board Meeting, the next two fiscal years will be difficult,
with anticipated improvement in year three. Given this premise, the financial ability to defer
cost over the first two years of the project is preferred - the later three years (i.e. years three,
four, and five) carrying the bulk of the financial cost of the recommended project(s). The Cisco
Capital leasing Option, for Public and Education entities, can address this requirement and
approach.

The following outlines the financial implications, by fiscal year, based on the total project (i.e.
Phases 1, 2 and 4 above). (The recommended project(s)/phases still need to be determined.
This financial example is presented for the purpose of depicting how the payments ~i,ll be
deferred in the first two years.)

$ 988,179.88
($ 45,627.28)
$ 279,423.10
$ 32,036.50
$ 253,807.98
$ 82,473.35
$ 1,590,293.53

Payment
Amount to be Leased Interest Rate Payment Date Amount I

$1,590,293.53 4.73% 7/112010 $265,478.53

7/112011 $297,788.35
7/112012 $404,223.41
7/112013 $404,223.41
7/112014 $404,223.41
Total Expenditure: $1,775.937.11

Year one will be $265K.

Year two will be $300K.

Years three to five will be approximately $404K annually.

The lease proposed includes a $1 transaction that will take place at the end of the lease,
transferring title to EUSD. No further financial considerations are required nor expected for
these stipulated projects.

Information Technology- Executive Summary Page 4

Other considerations and comments:

.:. There is a prepayment penalty of approximately 2% based on the remaining balance of

the project.

•:. Depending on the financial landscape in year three (and on), the District can exit the
project and receive whatever funds are in escrow, with no penalty. The project can be
implemented in phases - distributing the project cost over five years.

•:. Based on financial considerations provided by Cisco, a single lease is recommended,

locking in on a solid interest rate for EUSD.

RECOMMENDATION

In order to support the mission and vision of the Encinitas Union School District, it is strongly
recommended that the Information Technology infrastructure be enhanced as assessed above.
The life cycle for the existing IT network and telecommunications structure is at end - with end-
of-life issues (i.e. system warnings and failures) occurring more frequently. As we attempt to
prolong the viability of these out-dated components, there is an increased risk of potential
system outages and down time for the district offices and schools. Furthermore, current (and
future) EUSD projects that are implemented (without these recommended changes) will be
built on a foundation that requires improvement. As a result, the aforementioned tactical plan
to enhance and revitalize the enterprise IT infrastructure is recommended.

Information TechnoIogy- Executive Summary Page 5