State Land Office Royalty Administration and Revenue Processing System (RAPS) Status Update August 23, 2017 SLO presenters: George Rosenbaum, Executive Director Martin Davis, CIO
ONGARD Current State ONGARD stabilization successfully completed ONGARD is reliable and stable ONGARD system is currently collecting and distributing all revenue related to oil & gas, royalty and severance tax ONGARD will continue to collect and distribute oil & gas royalty revenues post-TRD severance tax implementation
ONGARD Recent History Date Activity 2012 LFC appropriates $6 Million to stabilize the ONGARD system and database (expired) 2016 LFC appropriates $10 Million to replace the ONGARD system (expires June 30, 2018) Apr. 2016 TRD signs a sole source contract with FAST for a severance tax replacement system Nov. 2016 OCD announced plans to change data interface by June 2018 Nov. 21, 2016 SLO submits Royalty Administration and Revenue Processing System (RAPS) RFP to State Purchasing for approval Jan. 20, 2017 State Purchasing publishes RAPS RFP Apr. 27, 2017 RAPS RFP cancelled due to funding considerations July 1, 2017 2017 House Appropriations and Finance Committee Bill 2 approves re-appropriation $5 Million of ONGARD Replacement Funds to SLO from TRD
Current Activities SLO and OSC are preparing to operate ONGARD post-TRD severance tax implementation Identifying data exchange requirements with TRD and OCD Building and testing data exchange system Adapting ONGARD to sustain operations during anticipated 30+ month royalty implementation project Transitioning ONGARD Service Center operations, services and personnel permanent to SLO Planning ONGARD decommissioning of TRD functionality from ONGARD Have to modify existing interfaces to ONGARD
Replacement Update Re-evaluated potential risks, costs, and timing of alternative solutions Identified preferred approach Requested reauthorization of existing funds and $5 Million additional project funding Preparing for RAPS Initiation and Planning PCC certification 4 ITB FTE vacancies filled Closed out LIMS Change in SMT leadership
Budget Overview Funding Sources Fiscal Year Amount Funding Source SFY 2017-2018 $10,000,000* Laws of 2016, Chapter 11, Section 7, Item5 *Laws of 2017 Chapter 11, Section 7, Item 7 - re-appropriates $5,000,000 of ONGARD Replacement Funds to SLO from TRD *Requesting reauthorization of existing $5,000,000 *Requesting $5,000,000 additional funding Budget Status Project Cost Budget $5,0000.00 Expenditures through 6/30/2017 -$130,827 Balance Available $4,869,173
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