1. City of Jacksonville Information Technologies Division Cost Allocation Model
July 2013

2. COJ – ITD Cost Allocation Model
About Jacksonville
1968 – Consolidated City, County
840 square miles
Largest city by area in contiguous US
125 square miles of navigable waterways
Population – 827,908
11th largest city by population
City Government – 8,000 employees
FY13 Operating Budget - $945M
11/13/2018
COJ – ITD Cost Allocation Model

3. St. John’s River flows through it all…
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COJ – ITD Cost Allocation Model

4. COJ – ITD Cost Allocation Model
You May Recognize Us…
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COJ – ITD Cost Allocation Model

5. Four Seasons in Jacksonville, FL
Winter
Spring
Summer
Fall
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COJ – ITD Cost Allocation Model

6. INFORMATION TECHNOLOGY
Government Structure
State
County
City
County
MAYOR
Library
Clerk of Court
Supervisor Elections
State Attorney
Technology
Salaries
Technology
Sheriff
City Departments
Judges/ Court
Tax Collector
Public Defender
INFORMATION TECHNOLOGY
Property Appraiser
Boards & Commission
School Board
JEA- Electric
JAA - Aviation
JTA- Transportation
JPA- Ports
City Council (19)

7. COJ – ITD Cost Allocation Model
City of Jacksonville - Information Technology
Infrastructure – Architect, design, secure, build/buy and manage/support
24 X 7 technology support
Emergency Operations Center support
6500 desktops/laptops
Radio towers, radio equipment, 10.5K radios
Fiber Infrastructure
Connectivity between 220+ City locations
6000 Telephones, Cell phones, network devices
Data Center – Ed Ball and JFRD
Applications - Architect, design, build/buy and integrate/support
300+ applications
Mobile apps
Website, Intranet
25 active projects
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COJ – ITD Cost Allocation Model

8. Balancing Act
All Expenses in ITD have to be recouped with a chargeback model
Cost Allocation/Billing is a balancing act
There is a cost for IT services
Preferred method: Bill by usage for all IT services
Expenses related to billing have to be recouped
Goal is to provide transparency and billing fairness with the least amount of operating expense

9. Our Current Model Direct billing to agencies for specific charges
Example: Software Maintenance agreements
Telecom, Radio charges billed out by device counts
Application Support and development charges billed out by hours
Infrastructure charges – Network, Desktop based on pooled expenses then billed by PCs
Challenges:
Too many charges are pooled and allocated by PCs
Lack of transparency
Not very defendable
Does not give customers insights into their real charges
Customers cannot control their technology charges

10. Cost Allocation Due Diligence
Talked to 25+ cities and counties
Narrowed it down to Seattle and Tacoma’s models
EA’s worked on a method to breakdown costs by Products and Services
Created a more transparent DRAFT Cost allocation model based on Seattle and Tacoma’s models

11. Concepts for Proposed Model
Direct Bill as many items as possible
Maintenance contracts, specialized systems, record storage, etc.
Calculate total cost of Enterprise systems (not all 300+) and bill
, Oracle HRMS, FAMIS, JAXPRO, Citrix, TAS, EIS, etc.
Includes Labor, Hardware (network, server), Software, Maintenance
Bill by # of employees benefiting from the applications
Bill by “items” should be meaningful and controllable by customers
Ex. boxes, Phones, Data circuits, Ports, # of Employees, etc.
NEW** - All items to include a sustainability charge directed to a new fund for technology refresh similar to our current PC Refresh

12. System Charges

13. Cost Model Unit Sources

14. Service Catalog

15. Sample Customer Cost Allocation

16. Next Steps & Discussion
First year with new model
Work in progress, collect feedback and improve model each year moving forward
Parallel Billing for all agencies
Continued reduction of pooled costs

17. COJ – ITD Cost Allocation Model
Contact Information
Enterprise Architecture Group City of Jacksonville, Fl (office)
11/13/2018
COJ – ITD Cost Allocation Model