ASSOCIATE VICE CHANCELLOR BARONE
Information Technology

SUBJECT: Budget and Oversight for the Network 2l Project

Dear Carole:

As we recently discussed, serious concerns have again arisen concerning the cost of the Network 21 Project. The concerns have taken on special importance since the Project Committee recently began consideration of individual requests from deans and vice chancellors to add back to the list of buildings to be connected to the network some of the buildings that were removed from the list last spring by the Special Committee chaired by Vice Chancellor Shelton. Professor Karl Romstad, Chair of the Davis Division of the Academic Senate expressed some of these concerns in his letter of October 13, 1994 to me (a copy of Professor Romstad's letter is enclosed, together with my response). Vice Chancellors and Deans and other members of the Administration have voiced similar worries about the mechanisms to contain the cost of the project and to provide for appropriate and informed decisions about the trade-offs required to keep the project within budget.

You and I have considered a number of measures that could be taken to reduce the cost of the.project and to ensure that the costs are actually capped.,We have also discussed the mechanisms for advice and oversight required to make, as wisely as possible, the hard decisions that will be required to reduce and contain costs. And we have come to Understand that in these times of serious fiscal restraint, and the heightened tensions that accompany this circumstance, we must take extra measures to ensure that all interested citizens of the campus are well informed about a large and expensive project that.is of such major importance to our academic mission.

Accordingly, we have agreed that the following actions regarding the Network 21 Projectare now to be taken:

1. The budget for the Network 21 project will be capped at $23 million. This ceiling is consistent with the approximately 14% reduction recommended by the Shelton Committee last spring. The Budget and Policy Oversight Committee (see next item) will decide on the alterations necessary to keep the costs of the project below the cap.

2. A Budget and Policy Oversight Commiffee-will be established. Members of the committee, which you will chair, will include Vice Chancellor Hamilton, Vice Chancellor Shelton, Associate Vice Chancellor Meisinger, Associate Vice Chancellor Ralls, Librarian Sharrow, Special Assistant Hallee, and 3 members of the Academic Senate. A charge to the committee is attached. The Budget and Policy Oversight Committee replaces the previously appointed Network 21 Project Committee. You may find it necessary to form committees to coordinate the management of the project, but all decisionsmth significant budgetary implications or that affect the service levels provided to administrative or academic units are to be considered by the Budget and Policy Committee.

3. A detailed Network 21 Completion and Utilization Plan will be developed by May 1, 1995. This plan is to address (1) ultimate build-out of the network, and (2) the equipment required for full utilization of the network, as well as (3) the financial costs of (1) and (2). The first component is necessary because it is altogether likely that some sectors of the campus cannot be networked with the fiberoptic backbone in this first phase. The second element is a matter of serious concern: Evety facet of activity in the university is increasingly dependent upon networked computing. The backbone provided by the Network 21 project is not in itself sufficient to provide UC Davis with capacity for leadership, or even competence, in our academic and administrative enterprises. It is a matter of urgency that we identify the equipment and software required for the campus to function effectively in the 21 st century and to plan accordingly. Like all universities, we have come to understand that information technology is now a basic and essential utility. And like all universities, we are coming to understand that it is an expensive utility, one for which we must carefully plan and budget. One early responsibility of the Budget and Policy Oversight Committee will be to develop a charge to a subcommittee to consider carefully and in detail the probable needs and costs of networked computing beyond the establishment of the network backbone.

4.Detalled'reports on the Network 21 project, especially to include budget and policy matters, are to be made to the Executive Vice Chancellor and Provost on a quarterly basis. Special Assistant Gerald Hallee, who Will be a member of the Budget and Policy Oversight Committee, will have responsibility for preparation of these reports.

5.Regular reports on the Network 21 project, including budget and policy mafters, Will be made to the entire campus community on a regular basis. These reports are to be published in Dateline and sent directly to the Chair of the Davis Division of the Academic Senate. They should be made as warranted by developments in the project, but at least three times during the academic year.

I very much appreciate the major effort and dedication that you and the staff of Information Technology have given to the Network 21 project. The project continues to be of utmost importance to the future of UC Davis. We cannot expect to undertake and complete a project of this magnitude without encountering bumps in the road. You and your colleagues in Information Technology are usually the first to feel them, but all of us have a responsibility to get beyond them and to ensure that the project succeeds. Much is at stake, and I am confident that the provisions described in this letter will contribute to that success.

Sincerely,

Robert D. Grey
Interim Executive Vice Chancellor and Provost

Enclosures

c:
Chancellor Vanderhoef
Vice-Chancellor Hamilton
Vice Chancellor Shelton
Associate Vice Chancellor Melsinger
Associate Vice Chancellor Ralls
Librarian Sharrow
Special Assiitant Hallee
Executive Officer Ramey
Academic Senate Chair Romstad

Carole Barone, Chair
Jerry Hallee
Janet Hamilton
Alan Jackman
Jay Lund
Dick Meisinger
Darrell Ralls
Marilyn Sharrow
Robert Shelton
Wes Wallender

The Network 21 Oversight Committee reports to the Executive Vice Chancellor and Provost. The Committee is responsible for assuring planning and implementation of the Network 21 Project consistent with the Project Planning Guide and the recommendations of the Special Advisory Committee. Specific responsibilities include:

1. Managing the project within the budget established by the Executive Vice Chancellor and Provost;

2. Assuring project management responsibilities are appropriately assigned and competently performed;

3. Reviewing, and approving if appropriate, all proposed project modifications that may impact on service levels or that have significant budget implications; and

4. Communicating to the Campus Community on a regular basis project progress, including advising about changes that may affect service levels.

MEETINGS

Initially, the Oversight Committee shall meet at least once every two weeks. This level of participation will allow Committee members to attain the breadth and depth of knowledge necessary to effectively oversee Network 21 Project planning and implementation.

REPORTING

The oversight Committee shall provide quarterly progress reports to the Executive Vice Chancellor and Provost and to the Chair of the Academic Senate. The reports shall include schedule and financial information and identify significant project changes.