01-21-2003 - Authorization for Expansion of the West Covina Services Group•
TO:
FROM:
Andrew G. Pasmant, City Manager
And City Council
Frank J. Wills, Chief of Police
City of West Covina
Memorandum
AGENDA
ITEM NO. B-6f
DATE January`21, 2003
SUBJECT: AUTHORIZATION FOR EXPANSION OF THE WEST COVINA
SERVICE GROUP
RECOMMENDATIONS: It is recommended that the City Council:
1. Authorize the creation of three new City job classifications within the WCSG to include
Software Development Manager, Senior Software Developer, and User Support
Specialist:'' (See:' C',:.D and E of the WCSG business plan for proposed job
descriptions, and pay ranges:)'
2. Authorize tl 'e. WCSG to hire up to five additional personnel (1 existing vacancy, 4 new
positions) in any combination of the above job descriptions, with City Manager approval.
Provided the WCSG does not hire beyond this allocation and no costs to the General
Fund result, no further City Council action is required.
3. Provided no General Fund burden is created,authorize the WCSG (with City Manager
approval) to reclassify the existing WCSG sworn positions as needed due . to business
necessity or reassignment.
4. Authorize the WCSG to make "pass through" purchases of hardware and software on
behalf of client agencies and pass. those costs directly back to the respective client
agency. These "pass through" purchases will be exempt from the normal City bid
processes and purchasing procedures as the WCSG serves as a sole -source provider for
its client agencies. This provision will have no impact on the general fund.
5. Approve the attached West Covina Service Group Business Plan.
DISCUSSION:
On prior occasions, the City Council reviewed the, expanded development of the West
Covina Service Group. After careful analysis, the City Council indicated its desire to
keep the West Covina Service Group as a City enterprise and commit to a comprehensive
rewrite of the existing software'. Some confidential personnel matters were discussed.
With these issues resolved, the above recommendations need to be considered in an open
session of the City Council.
The commitment to keep the WCSG and rewrite the software was predicated on the
modification and streamlining of City financial and hiring processes. City Council
directed staff to complete a report outlining the specific requirements for efficient
business operation and complete a Business Plan for the West Covina Service Group.
The specific recommendations are contained in this staff report and a copy of the West
Covina Service Group Business Plan is attached.
All three of the proposed new job classifications were reviewed and approved by the City
of West Covina Personnel Commission at their December 11, 2002 meeting.
Two of the existing Programmer Analyst II positions will be converted to User Support
Specialist positions, maintaining current benefits and salary ranges.
The two existing Computer Systems Administrator positions will be converted to Senior
Software Developer,�maintaining current benefit and salary ranges.
_.(S. --_.r-
The Software Development Manager position is a new job classification. The City of
West Covina Human Resources Department has conducted a market data comparison
analysis utilizing private sector data to support the recommended salary level.
The complete rewrite of the CAD/RMS/Mobile system is an extremely complex and time
consuming project. It is anticipated that the rewrite and transition of all clients will take
between 3; 5 years. In addition to designing, coding, testing, and transitioning clients, the
West Covina Service Group staff must maintain the current system and provide all
related support.
While the software rewrite is underway, WCSG will aggressively market to new clients
with a goal of adding 2 clients per year. New clients can start their systems under the
current computer platform and transition to the new software when it is ready.
The software and technology industries are in a constant state of change. The WCSG
needs to be in a position to quickly and efficiently adapt to unanticipated changes in the
technology and general business environment. The proposed modification and
streamlining of city purchasing and personnel procedures will allow the WCSG to
quickly adjust for the unexpected and competitively position itself similar to a private
business without sacrificing the important checks and balances of City Government.
Authorizing the WCSG to make "pass through" purchases will mark a return to a
procedure utilized by the City of West Covina with success from 1995 to 2001.
The City's Job Classifications for the WCSG have been revised to reflect the current
business environment. This restructuring will help attract and retain the most qualified
personnel. There will be periods when authorized positions are intentionally kept vacant
in order to utilize personnel funds for service contracts or to keep business costs at a
minimum.
Keys to Success:
The success of the West Covina Service Group will be dependent on its ability to:
• Implement business decisions in a timely manner.
• Modify and streamline city purchasing and hiring procedures.
• Adjust current job classifications/salaries/benefits.
• Provide timely, responsive service to our clients.
• Adapt to the swiftly changing; technology.
• It is important for WCSG clients to perceive full City support and commitment
for the WCSG, its goals, and its longevity.
There are four important areas to keep in mind when considering the recommendations:
• The recommendations apply only when spending West Covina Service Group
Enterprise Funds — not General Fund moni CS.
• The recommended modifications and streamlining procedures require City
Manager approval.
• The City of West Covina Finance Departrrr<;nt will continue to handle all WCSG
revenue and expenses.
• Independent annual audits of the WCSG will continue.
FISCAL IMPACT:
It is anticipated that the software rewrite will have no impact on the General Fund.
There are sufficient funds in the current WCSG budget (Fund 375) to fund the existing
vacancies under the new personnel classifications. The four additional positions will be
budgeted in fiscal year 2003-2004, although there are sufficient retained earnings to hire
them immediately.
f
The following chart displays a conservative estimate of growth with associated revenues
and costs. The figures are estimates based upon current market conditions and should be
."viewed as a potential scenario. Revenue could be significantly more or less.
Fiscal
Funding
Estimated
Estimated Operating Costs
Estimated
Year
Income
(with description)
Profit or
Loss
2002 - 2003
WCSG Estimated
$1,472,250
$1,000,000
$472,250
Annual Income
(Hire two programmers and.contract
for additional software support)
2003.- 2004.
WCSG Estimated "
$1,500,000
$1,450,000
$50,000
Annual Income
(hire or contract for 3 new additional
programmers)
2004 = 2005
WCSG Estimated
$1,500,000
$1,450,000
$50,000
Annual Income
200.5'- 2006
WCSG Estimated
$1,700,000
$1,550,000
$150,000
-Annual Income (add
(assumes GUI upgrade is operational
2 new clients)
— does not include approx $300,000
hardware upgrade paid from retained
earnings)
2006-2007 .
WCSG Estimated
$2,000,000
$1,700,000
$300,000
Annual Income (add
2 new clients)
There are risks associated with any technology enterprise.
Specifically:
• WCSG clients migrate to new CAD/RMS. systems perceived as
technologically superior.
• Key technology staff continually moves to other positions.
• Competitors with significant financial assets seek to harm the WCSG by
hiring key technology support personnel away in an attempt to cripple the
enterprise.
• The law enforcement profession moves to an industry standard CAD/RMS
system, effectively ending WCSG.
• The public discourse and numerous, but important, checks and balances
inherent in government result in an enterprise incapable of maintaining agility
and flexibility in "the marketplace:
• On -going State and federally mandated changes regarding encryption,
reporting, and data transfer in criminal justice databases increase operational
costs.
However, the Police Department believes that regardless of potential business setbacks,
the WCSG can be managed so that no General Fund burden is created in the foreseeable
future.
ATTACHMENTS:
Attachment A: Copy of the proposed West Covina Service Group Business Plan.
Prepa ed by: Frank ] Wills
Chief o 1Police
Reviewed & Approved by:
Finance C. Attorney Human Resources
iS
H
Business Plan
West Covina Service Group
An Enterprise of the City of West Covina
TABLE OF CONTENTS
BUSINESSPLAN............................................................................................................................................1
WEST COVINA SERVICE GROUP.....................................................................................................................1
AN ENTERPRISE OF THE CITY OF WEST COVINA.............................................................................................1
EXECUTIVESUMMARY..................................................................................................................................
3
Objectives..............................................................................................................................................
4
Mission..................................................................................................................................................4
Keysto Success......................................................................................................................................4
ORGANIZATIONSUMMARY.............................................................................................................................
5
OrganizationOwnership.......................................................................................................................
S
Locationand Facilities..........................................................................................................................
S
PRODUCTSAND SERVICES.............................................................................................................................6
Product and Service Description ............................... :...........................................................................
6
CompetitiveComparison...............................................:.......................................................................
7
Technology......................................................................................................................................:......
7
MARKET ANALYSIS SUMMARY.................................................................................................................:......
8
MarketSegmentation......................................................................................................................:......
8
TargetMarket Segment..........................................................................................................................
8
PrimaryCompetitors.............................................................................................................................
9
STRATEGY AND IMPLEMENTATION SUMMARY......................................................................................:.........9
CompetitiveEdge...................................................................................................................................
9
MarketingStrategy................................................................................................................................
9
PricingStrategy...................................................................................................................................10
Personnel Requirements ............................ .....................................................................................
..... 11
OPERATIONALPLAN..............................................................................................................................
....12
SoftwareRewrite..................................................................................................................................12
Location..............................................................................................................................................13
LegalEnvironment...............................................................................................................................13
Personnel.............................................................................................................................................14
FinancialManagement....................................................................................................................;
...14
FINANCIALHISTORY...................................................................................................................................15
ATTACHMENTS...........................................................................................................................................15
2
Executive Summary
The West Covina Police Department, in partnership with a private company, started
developing Records Management, Computer -Aided Dispatch, and networking systems
over 20 years ago. As time progressed, so did the software. Unfortunately the original
private company developing the software ran into financial problems and eventually filed
for bankruptcy. That bankrupcty led to the CAD/RMS software being sold off to a series
of different private companies. The West Covina Police Department attempted to do
business with each subsequent company, relying on them for support. Each company
that took over the software eventually failed until the software was finally abandoned,
leaving the West Covina Police Department without support.
The unreliability in the industry prompted the City of West Covina to establish the West
Covina Service Group as a dependable, cost effective alternative for public safety.
The West Covina Service Group is a division of the West Covina Police Department.
The City of West Covina established the WCSG as an Enterprise Fund in 1995. WCSG
client revenue is paid directly into the Enterprise Fund. WCSG currently operates on its
own separate budget with all operating costs paid out of the Enterprise Fund. There is no
impact on the City's General Fund.
The West Covina Service Group (WCSG) provides Computer Aided Dispatch (CAD),
Records Management Software (RMS), and Mobile Digital Computer (MDC) solutions
for law enforcement agencies. Software is written and maintained in house by WCSG
staff programmers. The majority of clients lease time on the WCSG HP3000 mainframe
computer. Client agencies pay annual support and lease payments for service. We have
adopted the Application Service Provider (ASP) business model. The target market has
been and will continue to be small to mid -size law enforcement agencies within
California.
As the WCSG expanded and grew, so did expectations from the clients and the West
Covina Police Department. "WCSG members desired a new Windows Graphical User
Interface (GUI) front end for the software and agreed to a substantial increase in fees to
pay for the development. A plan was drafted to write a new Windows GUI front end for
the software.
In November 2001, Hewlett Packard announced the elimination of the HP3000 operating
platform. All HP3000 users (including WCSG) were given a five year window to move
onto a new platform. The elimination of the HP3000 made the CAD/RMS software
obsolete in its current format and the system unsupported by 2006.
This business plan is offered as a method to help secure the longevity of the West Covina
Service Group and provide the software enhancements paid for by clients. The goal of
the WCSG is to increase revenue by maintaining its existing client base and aggressively
marketing to new clients.
3
WCSG plans to accomplish this by maintaining and supporting the existing HP3000
system while the new system is developed. Once the new system is operational, clients
will begin transitioning to the new software. All clients will be transitioned to the new
software no later than 2006. Once the transition is complete, the HP3000 operation will
cease.
While development is underway, WCSG will continue to market to new clients with a
goal of adding 2 clients per year. New clients can start their systems under the HP3000
platform and transition to the new software when it is ready.
Objectives
• Maintain and support the existing CAD/RMS system.
• Transition the existing CAD/RMS system off of the HP3000 MPE/IX onto a
new platform.
• Develop new Windows GUI CAD/RMS software.
• Transition clients onto new CAD/RMS system.
• Actively market the existing system and new system when it becomes
operational.
Mission
The mission of the West Covina Service Group is to provide state of the art computer
related technology solutions for public safety agencies. We will accomplish our mission
by continually adapting to changing technology. The West Covina Service Group exists
to support its client agencies, and will uphold the tradition of providing the highest
standard of professionalism long held by the West Covina Police Department.
As a division of the West Covina Police Department, we understand our clients' needs,
because our software was designed by law enforcement FOR law enforcement. `Our
clients are not only clients; they are our partners and peers. As partners, all our clients
receive and use the same software solutions. As peers, all are treated with equal respect
and support.
Keys to Success
The success of the West Covina Service Group is dependent on its ability to:
• Implement business decisions in a timely manner.
• Streamline normal city purchasing and hiring requirements.
• Adjust current job classifications and descriptions to reflect current job functions
and salary/benefit adjustments.
• Provide timely, responsive service to our clients.
• Adapt to the swiftly changing technology.
• It is important for WCSG clients to perceive full City support and commitment
for the WCSG, its goals, and its longevity.
4
Organization Summary
Organization Ownership
The West Covina Service Group is a division of the West Covina Police Department,
City of West Covina, California.
Location and Facilities
The offices of the WCSG are currently located in the lower level of the West Covina
Police Department. The majority of the office space is also designated as Office of
Emergency Service (OES) operational command center. The Department will have
difficulty creating enough space for additional WCSG personnel.
The WCSG training room is located in a converted storage room approximately 200
yards away from the police department under the city parking structure. The training
room has no bathrooms or running water.
The Police Department and City Managers Office will need to explore alternatives to
increase the office space available to WCSG.
5
Products and Services
Product and Service Description
Computer Aided Dispatch (CAD)
The WCSG CAD system is a computer based module for accepting police/fire calls for
service, dispatching appropriate public safety personnel, and tracking the status of
available resources. The CAD system includes interfaces to Records (RMS), Mobiles
(MDC), emergency telephone systems (E911), and all available external law enforcement
databases.
Multiple open windows allow dispatchers to perform varied tasks while still being aware
of changes that take place with units in the field. CAD software allows for Police, Fire,
and multi jurisdictional dispatching.
The CAD software is fully integrated into the Mobile Digital Computer system, which
allows for extensive information availability to the units/officers in the field.
CAD is fully integrated into the Records Management System. All available information
is immediately transferred to the RMS system. Response time analysis, officer
productivity, and free -time analysis reports are all based on the CAD data and provide an
immediate and timely overview of efficiency.
From within CAD, dispatchers have full access to county databases, California ILaw
Enforcement Telecommunications System (CLETS), and National Crime Information
Center (NCIC).
Records Management System (RMS)
The WCSG RMS system is a computer based module for entering and storing crime
report information, citation information, field interview information, narcotic and sex
registrant information and CAD information associated with crime and other incidents
reported to the police.
The West Covina Service Group Records Management System is fully integrated. There
are over 500 options in the CAD/RMS system. Information from CAD (Computer Aided
Dispatch) is automatically forwarded into the RMS (Records Management System) and
becomes a permanent part of the record. As the system data increases, data entry
becomes faster as record information that is the same doesn't have to be re-entered.
Information is available to all employees and is controlled by menus.
All RMS and booking information is integrated into the MCI (Managing Criminal
Investigations) module that allows investigative personnel to have automated access to all
records information. Investigative personnel have online access to all of their cases and
can handle the disposition of their cases, property, and case notes with ease.
0
The Crime Analysis Module is extensive yet simple to use. This allows investigative
personnel (and others where deemed appropriate) to be able to do extensive searches of
records information without having to have a specialized Crime Analyst perform those
functions.
An extensive Personnel Module allows online availability, varied training records and
personnel information (again access is controlled by menus). Report Modules provide an
array of statistical data ranging from response times to range scores.
Mobile Digital Computers (MDC)
The West Covina Service Group provides complete mobile computer systems for Patrol
or Investigative use out in the field.
The MDC system provides complete access to local, state, and NCIC databases, a
messaging system, and seamless integration with CAD. Field units are provided the
same level and detail of information that the dispatchers have entered into the CAD
system.
The MDC software runs on any Windows based computer. It is currently available for
laptops, fixed mounted MDC's, and handheld Pocket PC's.
Competitive Comparison
Technology
The CAD/RMS system currently runs on an HP3000 mainframe computer. The
computer system software and hardware are proprietary to Hewlett Packard. Hewlett
Packard has announced an "end of life" to that system effective in 2006.
The WCSG CAD/RMS software rewrite will move the existing system onto a new state
of the art operating platform.
VA
Market Analysis Summary
Market Segmentation
• Small to medium size law enforcement agencies.
• Limited technology budgets.
• Minimal staffing or expertise assigned to technology.
Target Market Segment
The target market is law enforcement agencies with 300 or fewer sworn personnel, within
the State of California.
According to the California Commission on Peace Officer Standards and Training, there
are 394 Police/Sheriff's Departments in California. Of the 394 agencies, 28 have 300 or
more sworn officers. The remaining 366 law enforcement agencies have 300 or fewer
sworn officers.
This leaves a target market for West Covina Service Group of 92.89% of the law
enforcement agencies within California.
Law Enforcement agencies in California:
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
s
kt
x
2y
Over 300 or
300 Fewer
Sworn Sworn
IN Over 300 Sworn, 7.11 %
of California Law
Enforcement Agencies
■ WCSG Target Market,
92.89% of Law
Enforcement Agencies
within California - 300
or fewer sworn
Primary Competitors
There are very few established CAD/RMS vendors that pursue our target market. Most
vendors rely on substantial licensing and startup costs to keep their cash flow positive.
The target market for the majority of vendors is larger law enforcement agencies who can
afford very expensive systems. Typically, systems from established vendors require': 5 or
6 times more startup fees and they are generally 4 to 5 times more Iexpensive for annual
maintenance.
Strategy and Implementation Summary
Competitive Edge
As an Application Service Provider (ASP), WCSG is one of the only successful providers
of a completely hosted CAD/RMS system. There are currently no other private
companies providing hosted systems. Because WCSG is a division of the West Covina
Police Department, they are the only CAD/RMS/Mobile provider that is authorized to
maintain a direct connection and full integration into the California Law Enforcement
Telecommunications System (CLETS).
The WCSG offers a complete turn -key approach for smaller agencies. Since the WCSG
system is hosted, there are minimal hardware costs and the system is maintained by
professional staff for reasonable annual maintenance fees.
Marketing Strategy
Word of mouth from our clients is the best form of promotion. However, WCSG plans to
aggressively market through several industry trade shows that are held throughout the
year. These shows routinely draw very large crowds of decision making people in
government and law enforcement. It is necessary to get the WCSG name and products
talked about throughout the law enforcement community.
Annual Trade Shows
• COPSWEST
• GTC (Government Technology Conference)
• CLEARS (California Law Enforcement Association of Records Supervisors)
• APCO (Association of Public Safety Communications Officials)
• CALCHIEFS (California Police Chiefs Association)
At the moment, it is not necessary to pursue an expensive print ad campaign.
X
Pricing Strategy
There is currently a two tier pricing structure in place.
Pricing Prior to August, 2001
One - time Software Licensing:,
Records Management System (RMS) $35,000
Computer Aided Dispatch (CAD) $16,000
Externals License $15,000
Mobile Digital Computer (MDC) $20,000
Recurring Annual Processing Fees based on population:
Population: 50,000 and below $24,000
Above 50,000 up to 115,000 $36,000
Above 115,000 $48,000
Recurring Annual Software Maintenance Fees:
CAD/RMS Maintenance $23,500
Externals Maintenance $5,000
MDC Maintenance $5,000
Other one - time fees:
New CAD/RMS system installation fee $8,000
Formal on - site training (200 hrs) $20,000
Normal on - site assistance or training $100.00 per hour
Pricing After August, 2001 (prices reflect a 10% increase)
One - time Software Licensing:
Records Management System (RMS) $38,500
Computer Aided Dispatch (CAD) $17,600
Externals License $16,500
Mobile Digital Computer (MDC) $20,000
Recurring Annual Processing Fees based on population:
Population: 50,000 and below $26,400
Above 50,000 up to 115,000 $39,600
Above 115,000 $52,800
Recurring Annual Software Maintenance Fees:
CAD/RMS Maintenance $25,850
Externals Maintenance $5,500
MDC Maintenance $5,500
Other one - time fees:
New CAD/RMS system installation fee $8,000
Formal on - site training (200 hrs) $20,000
Normal on - site assistance or training $100.00 per hour
10
•
•
Personnel Requirements
The WCSG currently fills vacant positions based on the following City Job
Classifications/Titles:
Current Job Classifications/Titles:
• Computer Systems Administrator
• Programmer Analyst II
These Job Classifications are no longer a reflection of the WCSG business needs.
Current job classification, description; and structure need modification to reflect the
WCSG business environment. This restructuring will help attract and retain the most
qualified personnel in their field.
New Job Classifications:
• Software Development Manager
• Senior Software Developer
User Support Specialist
These new Job Classifications/Titles are a more accurate description of the job functions
within the WCSG.
Software Development Manager
See attachment C for the job description of this new management position. This position
will have supervisory responsibility for Senior Software Developer, User Support
Specialist, and other assigned positions. Pay ranges should be a minimum of 15% higher
in pay than Senior Software Developer with comparable benefits.
A market data comparison analysis with the private sector strongly supports this salary
level. This position may not be filled immediately.
Job Title
Salary Ranges
Salary Ranges
Salary Ranges
01-01-2002
07-01-2002
01-01-2003
Software Development
$5448 - $7354
$5610 — $7575
$5696 - $7689
Manager
11
West' Covina Ser' ce'Group
Comparative Statements of Revenues, Expenses and.Changes in Retained Earnings
11�
For the- years ended June 30, 2001 and 2000 ..
:2001
2000
OPERATING REVENUES:
Charges for services
y 2,168,138
$
1,343,717
Total operating revenues
21168,138
1,343,717
OPERATING EXPENSES:
Personnel services
619,587
597,642
Cost of sales, services and operations
485,463
j"
190,782
Depreciation
128,716
119,292
Total operating expenses
1,233,766
?I'�
907,716
OPERATING INCOME (LOSS)
934,372
436,001
NONOPERATING REVENUES (EXPENSES):
Investment income
54,992
29,426
Total nonoperating revenues (expenses)
54,992
29,426
NET INCOME (LOSS)
989,364
465,427
RETAINED EARNINGS:
Beginning of year, as restated
652,356
264,929
Ind of year
$ 1;641,720
$
iE
730,356
See. accompanying -notes to financial statements.
3
of
Senior Software Developer
The two existing Computer Systems Administrator positions, one of which is currently
held by John Cade, will be converted to Senior Software Developer. See attachment D
for the new job description. The Senior Software Developer position will adopt the
current Computer Systems Administrator pay ranges and benefits.
Job Title
Salary Ranges
01-01-2002
Salary Ranges
07-01-2002
Salary Ranges
01-01-2003
Senior Software Developer
$4737 - $6395
$4879 — $6587
$4953 - $6686
User Support Specialist
Two of the existing Programmer Analyst II positions, Terrie Richardson and Mary
O'Guinn, will be converted to the more accurate User Support Specialist position. See
attachment E for new job descriptions. The User Support Specialist position will adopt
the current Programmer Analyst II pay ranges and benefits.
Job Title
Salary Ranges
01-01-2002
Salary Ranges
07-01-2002
Salary Ranges
01-01-2003
User Support Specialist
$4512 - $6091
$4648 — $6274
$4717 - $6368
In the future, the WCSG in conjunction with the Human Resources Department should
explore the business advantages of "pay for performance" type merit bonuses to
encourage exemplary performance, accelerate implementation timetables, and create
incentives more consistent with private sector enterprises.
Operational Plan
Software Rewrite
The CAD/RMS system is written and maintained by WCSG staff programmers. They are
responsible for development and maintenance of CAD/RMS, MDC, and all other
interfaces.
Software design will be completed through team effort of the programming staff Each
member of the staff will be contributing their specific expertise.
Certain aspects of the design and production may be contracted out to suitable
P � p Y
companies. That decision will be made on a case by case basis.
12
West'Covina Service Group
Comparative. Statements of Cash Flows
For the years ended June 30, 2001 and 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation
Prior period adjustments
Net effect of changes in:
Accounts receivable
Interest receivable
Due from other agencies
Prepaid items
Accounts payable
Other accrued liabilities
Deposits
Compensated absences payable
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES. -
Principal paid on long-term debt
Acquisition or disposal of property and equipment
Net cash provided (used) by capital
and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Investments income
Net cash provided (used) by investing activities
Net increase (decrease) in cash and investments
CASH AND INVESTMENTS:
Begiumiig of year
End of year
2001
2000
$ 934,372 $
436,001
128,716
119,292
(78,000)
-
46,101
(83,944)
(2,531)
(5,817)
-
124,568 .
-
2,843
(12,198)
(10,620)
1,355
41707
-
(27,418)
(107,055)
29,449
910,760
589,061
(14,781)
(171,816)
30,879
(124,896)
16,098
(296,712)
54,992
29,426
54,992
29,426
981,850
321,775
578,778 4
257,003
$ 1,560,628 $
578,778
See accompanying notes to financial statements.
4
• West Covina Service Group
Notes to Financial Statements
For the years ended June 30, 2001 and 2000
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying Balance Sheet, Statement of Revenues, Expenses, and Changes in
Retained 'Earnings, and Cash Flows were presented in a format required by the Computer
Service Enterprise Fund (Fund), West Covina Service Group (WCSG), of the City of West
Covina (City). The purpose of the statements is to present in. summary for the financial
position, the revenues and expenses, and cash flows of the WCSG.
The accompanying financial statements are not intended to present the financial position or
results of operations of the City.
Reporting Entity — The WCSG operates as a division of the West Covina Police Department
and is an enterprise fund of the -City. The WCSG provides crime data management, software
and network support services to about 30 clients, who include other cities, counties, and
consortiums, both inside and outside of California.
Basis of Accounting - The accounting .and reporting treatment applied to the; WCSG is
determined by its measurement focus. The WCSG is accounted for on an "economic
resources" measurement focus, which means that all assets and liabilities (whether„current or
non -current) associated with the activity are included on the balance sheet. The reported
fund equity presents total net assets. The operating statement presents increases (revenues)
and decreases (expenses) in total net assets.
The WCSG is accounted for using,the accrual basis of accounting. Accordingly, revenues are
recognized in the accounting period in which they are earned, while expenses are recognized
in the period 'in which the liability is incurred.
Pooled Cash and Investments - The WCSG participates in the City's cash and investment
pool: The City.'s cash and investment pool includes cash balances and authorized
investments of the City which the City Treasurer invests to enhance interest earnings. The
pooled interest earned is allocated to the WCSGbased on average month -end cash and
investment balances.
Property and Equipment - Property and equipment are capitalized at historical cost if
purchased.. Contributed. assets are recorded at the fair market value as of the date of receipt.
Depreciation has been provided on a straight-line basis over the following useful lives:
Years
Buildings and structures 50-65
Improvements, mains and hydrants 15-50
Transportation equipment 5-25
Other equipment 5-30
5
The software rewrite will take place in phases.
• Phase 1 — The existing CAD/RMS system will be moved off of the HP3000 and
onto a new operating system platform.
• Phase 2 — The new Windows GUI software will be written to act as the "front
end" of the new operating platform.
• Phase 3 — One at a time, client agencies will be moved onto the new system.
• Phase 4 — Once the migration is complete, the HP3000 will be taken out of service
and sold at market value.
Location
The West Covina Service Group will have an office location in West Covina, preferably
located at or near the West Covina Police Department. The desired office space',will
include the following requirements.
• Reasonable workstation space for entire staff and private office space for WCSG
management.
• A conference/meeting room for planning and holding meetings with staff, clients,
and potential clients.
• Separate dedicated training classroom area.
• Storage area for supplies and equipment.
• Alarm system with well lit access to building and adequate security.
• Ample parking and convenient access for clients.
The West Covina Police Computer Room will continue to house the CAD/RMS system
and all associated equipment.
Legal Environment
The West Covina Service Group is represented by the City Attorney for the City of West
Covina.
The West Covina Service Group will work with the City Attorney to draft an acceptable
Confidentiality Agreement for WCSG employees. This will help to preserve intellectual
property rights to the WCSG software for the City of West Covina.
13
Personnel
• One Police Commander to oversee the WCSG operation.
• One Police Lieutenant to provide the day to day, hands ' on management. and
supervision of the WCSG operation.
• One Police Corporal or other sworn position to provide day to day system
support. The Corporal will also continue to train as the backup for the Police
Lieutenant so that operational continuity can always be maintained.
• Two Software Development Managers will manage and provide hands on
assistance with the software design, coding, and maintenance.
• Four Senior Software Developers will provide the actual software design, coding,
and maintenance.
• Two User Support Specialist positions provide ongoing system supportand
training.
• The above combination of positions can change at any time as long as no General
Fund burden is created, with approval of the Chief of Police and City Manager.
See attachment B for the proposed organizational chart.
Financial Management
As with current practice, all financial matters involving the WCSG will be handled by the
City of West Covina Finance Department. The West Covina Service Group staff ,does
not directly handle any Accounts Receivables or Expenditures.
Independent financial audits of the West Covina Service Group will continue to be
conducted annually.
Use caution against charging ongoing General Fund expenses against the WCSG budget
as operating expenses. To insure the financial health of the WCSG, minimize and seek to
eliminate those instances when new charges are assessed unless they are clearly business
costs.
It is expressly acknowledged that WCSG revenues may be used to offset some General
Fund costs. This should be accomplished via fund transfers of retained earnings and not
charged as WCSG business expenses.
14
y
4
Anticipated Revenue and Expenses
Fiscal
Funding
Estimated
Estimated Operating Costs
Estimated
Year
Income
(with description)
Profit or
Loss
2002 - 2003
WCSG Estimated
$1,472,250
$1,000,000
$472,250
Annual Income
(fill two vacant programmer
ositions for remaining '/z fiscal ear
2003 - 2004
WCSG Estimated
$1,500,000
$1,450,000
$50,000
Annual Income
hire 3 new additionalprogrammers)
2004 - 2005
WCSG Estimated
$1,500,000
$1,450,000
$50,000
Annual Income
2005 - 2006
WCSG Estimated
$1,700,000
$1,550,000
$150,000
Annual Income (add
(assumes GUI upgrade is operational
2 new clients)
— does not include approx $300,000
hardware upgrade paid from retained
earnings) .
2006-2007
WCSG Estimated
$2,000,000
$1,700,000
$300,000
Annual Income (add
2 new clients
Financial Histor
Attached is a copy of the most recent financial audit of the West Covina Service Group
conducted by Caporicci, Cropper & Larson, LLP, Certified Public Accountants.
Attachments
Attachment A Financial Audit
Attachment B Proposed Organization Chart
Attachment C Software Development Manager Job Specs
Attachment D Senior Software Developer Job Specs
Attachment E User Support Specialist Job Specs
15
West'Covina Service Group
Comparative Balance Sheets
June 30, 2001 and 2000
2001 2000
ASSETS
Current assets:
Pooled cash and investments
Receivables:
Accounts
Interest
Total current assets
Property and equipment:
Equipment
Less accumulated depreciation
Total property and equipment, net
Total assets
LIABILITIES AND FUND EQUITY
Liabilities:
Current liabilities:
Accounts payable
Other accrued liabilities
Capitalized lease obligations
Total current liabilities
Noncurrent liabilities:
Compensated absences payable
Total liabilities
Fund Equity:
Retained earnings, unreserved
Total fund equity
Total liabilities and fund equity
$ 1,560,628
71,322
9,260
1,641,210
$ 578,778
.117,423
6,729
702,930
642,370 673,249
(459,013) (330,297)
183,357 342,952
1,824,567 $ 1,045,882
$ .28,785
$ 40,983
13,499
12,144
-
14,781
42,284
67,908
140,563
247,618
182,847
315,526
1,641,720
730,356
1,641,720
730,356
$ 1,824,567
$ 1,045,882
See accompanying; notes to financial statements.
2
0
West Covina. Service
Group
Computer Service Enterprise -Fund
West Covina, California.
Financial Statements and
Independent Auditors' Report
For the years ended June 30, 2001 and 2000
C G
Caporicci, Cropper & Larson, LLP
Certified Public Accounlarets
West Covina Service Group
Financial Statements
For the years ended June 30, 2001 and 2000
Table of Contents
Page
IndependentAuditors' Report........................................................................................................1
Financial Statements:
Comparative Balance Sheets.................................:.................................................................2
Comparative Statements of Revenues, Expenses and Changes
in Retained Earnings........................................................................................................3
Comparative Statements of Cash Flows............................................................................... 4
Notes to Financial Statements ........................................ .... ................................ ........... ... ............ 5
West Covina Service Group
Notes to Financial Statements, Continued
.For the years ended June 30, 2001 and 2000
i
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Compensated Absences —Compensated absences are "reported as,a long-term liability when
the benefits vest and are earned. As of June 30, 2001, the balance of compensated absences
was $140,563.
Capitalized Lease Obligations,..- Fixed assets acquired through long-term lease contracts are
capitalized at the time the contract is executed. The related assets and liabilities, are
recorded.
Use of Estimates The preparation of' financial statements in `conformity with; generally
accepted accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results could differ
from those estimates.
Reclassifications - Certain reclassifications have been made to the prior year totals in order
to conform with the current year presentation.
2. POOL CASH AND INVESTMENTS
The WCSG participates in the City's cash and in pool for maximum .yield: At
Julie 30, 2001, the balance of pool cash and investments was $1,560,628. See the City of West
Covina general purpose financial statements for the yearendedJune 30, 2001, for additional
disclosures on cash and investments.
3. Capitalized Lease Obligations
The WCSG was leasing; a computer system under a 'financing lease., The lease expired in July
2000. The amount of capitalized lease obligations was paid in full at June 30, 2001.
4. PRIOR PERIOD ADJUSTMENT
The WCSG determined that certain property and equipment -were accounted for incorrectly in
prior years: Accordingly, fund equity as,of July 1, 2000 have been restated as follows',
Fund equity, as previously reported' $ 730,356
Prior period adjustment (78,000)
Fund equity, as restated $ 652,356
6
West' Covina ServictGroupachment B
Organizational Chart
Proposed January, 2003 JA—
t: —
LO —
gllpqllgqqpHN H =
Frank J. Wills —_
Chief of Police
� IIIIIIIIII IIIIIIIIII
Ross Heaton
Commander
I
Dennis Edwards
Lieutenant
Bob Tolich
Corporal
Vacant Vacant
Software Software
Development /F— 17
Development
Manager..... ; Manager.... .
Vacant John Cade Mary O'Guinn Vacant Vacant Terrie Richardson
Senior Software Senior Software User Support Senior Software Senior Software User Support
Developer Developer Specialist Developer Developer Specialist
........... I........ ...................:
!'n iia
1 1
.�------ .. L
' ! ATTACHMENT C
CITY OF WEST COVINA MID -MANAGEMENT
CLASS SPECIFICATION
December 2002
SOFTWARE DEVELOPMENT MANAGER
Job Summary
Under general supervision, develop and maintain complex applications; analyze systems and
specifications and recommend program structure and logic; conduct technical and financial
studies for the design and justification of information technology systems; coordinate and
perform the most advanced systems analysis/assignments; and act as project or team leader in the
enhancement and or maintenance of computer applications. May be required to supervise and
provide .leadership to lower level positions. An employee in this classification is involved with
one or more applications utilizing different database concepts and programming languages.
Work includes the design and program maintenance of databases and telecommunications, which
are integrated with other complex information technology systems; financial analysis of
alternative approaches; advanced system analysis;. and presentation of findings to customers,
supervisors, and City management. Work is performed and technical decisions are made with a
high degree of independence.
Essential Functions
1. Plans, assigns, oversees, and reviews the performance of personnel assigned to projects
and those in lower classifications.
2.. Prepares comprehensive project plans and schedules.
3. Establishes and oversees schedules of time and costs for each phase in developing new
computer applications.
4. Prepares and presents written and oral reports to management of proposed information
technology systems, including the effect on all users, impact on computer resources,
anticipated costs and benefits, and equipment, times, and personnel needs.
5. Provides problem analysis support to diagnose and remedy problems in operating
procedures, computer hardware, system software, and computer application programs.
6. Oversees the writing of operating procedures for user and computer operating personnel.
7. Conducts systems analysis and design studies and prepares concept and design
specifications.
Class specs: Software Development Manager
Software Development Manager
Page 2
8. Serves as project leader and monitors and reviews the work performance of personnel
also assigned to projects.
9. Presents oral reports to management on proposed computer applications.
10. Writes reports to management on proposed computer applications, including the effect on
all users, the impact on computer resources, anticipated costs and benefits, and
equipment, time, and personnel needs.
11. Analyzes the most complex work procedures and job methods and presents concepts to
simplify procedures.
12. Analyzes departmental systems needs, makes recommendations and designs the most
effective means to satisfy those needs.
13. Analyzes existing computer programs to improve computer productivity.
14. Plans and conducts training sessions for users and computer operating personnel.
15. Demonstrates continuous effort to improve operations, decrease turnaround times,
streamline work processes, and work cooperatively and jointly to provide quality
seamless customer service.
QUALIFICATIONS
Knowledge, Skills and Abilities:
Knowledge of:
• Capabilities, limitations, and functional applications of information technology.
• Mini and' large scale, computer systems and applications.
• Local Area Networks (LANS) and Wide Area Networks (WAN).
• Research techniques and methods of presentation.
• High level computer programming languages.
• Office procedures, equipment, and methods.
• Data communications security and privacy techniques. .
• Project management and organization, including monitoring time and dollar expenditures
for tasks performed.
• Principles and practices of personnel management and supervision.
• Principles and application of statistical methods.
Class specs: Software Development Manager
Software Development Manager
Page 3
Ability to:
• Analyze, interpret, and report research findings to prepare design specification.
• Design effective information technology systems.
• Facilitate work groups and design teams.
• Maintain multiple information technology systems that may have different databases and
use different programming languages and operating systems.
• Instruct others in complex technical subjects and processes.
• Perform a broad range of supervisory responsibilities over others.
• Develop data and process models using structured analysis and design and information
engineering techniques.
• Analyze information technology systems and procedures accurately and logically to
implement improvements.
Additional Requirements:
• Appointments to positions in the Police Department are subject to meeting appropriate
polygraph and background standards.
• Some positions require the use of personal or City vehicles on City business. Individuals
must be physically capable of operating the vehicles safely, possess a valid driver's
license and have an acceptable driving record. Use of personal vehicle for City business
will be prohibited if the employee does not have personal insurance coverage.
• Some positions will require the performance of other essential and marginal functions
depending upon work location, assignment, or shift.
Education and Experience Guidelines:
Three years of experience in applications analysis and programming, systems analysis and
design, including project leader responsibility, and a bachelor's degree in computer science,
computer information systems, business administration, mathematics, or related field. Other
combinations of experience and education, which meet the minimum requirements, may be
substituted.
Class specs: Software Development Manager
ATTACHMENT D
CITY OF WEST COVINA MID -MANAGEMENT
CLASS SPECIFICATION
December 2002
SENIOR SOFTWARE DEVELOPER -
Job Summary
Performs systems analysis and applications programming involving single or multiple
information technology systems; assists in the overall analysis and design of information
technology systems; conducts financial studies for the justification of information technology
systems; and assists lower level employees in the development and maintenance of information
technology subsystems and programs. Employees in this class are responsible for multiple
information technology subsystem conceptualization, design, planning; implementation, and
maintenance, and for user and computer operations personnel training. Work includes
conceiving, designing, and maintaining databases and telecommunications integrated with other
systems; translating specifications into computer language; testing results; designing or assisting
in the design of file structures. Incumbents are expected to bring projects to conclusion,
including development of operating procedures, instruction and training, and required
documentation. Work is performed and technical decisions made with some latitude for
independent judgment, under general supervision.
ESSENTIAL FUNCTIONS:
1. Work effectively with customers to learn specific design requirements and perform
analysis and design of computer applications.
2. Analyzes problems and prepares functional workflow diagrams, input and output forms,
and detailed requirements of computer program specifications.
3. Writes, corrects, and makes modifications to computer programs;
4. Successfully develops and executes test plans that thoroughly test applications and allow
for quality implementations of new or modified applications and reviews results;
5. Prepares and maintains documentation of applications;
6. Plans and conducts training sessions for information technology systems customers;
7. Evaluates improvements and benefits which could be derived from modifications of
existing systems;
8. Conducts systems analyses and design studies for functional systems and design
specifications.
9. Assists in the overall analysis and design of information technology systems.
Class specs: Senior Software Developer specs
Senior Software Developer
Page 2
10. Analyzes job procedures and makes recommendations on simplifying those procedures;
11. Analyzes systems dumps and reports to isolate program problems and takes appropriate
actions to correct them;
12. Demonstrates continuous effort to improve operations, decrease turnaround times,
streamline. work processes, and work cooperatively and jointly to provide quality
seamless customer service.
QUALIFICATIONS.
Knowledge, Skills and Abilities:
Knowledge of:
• Capabilities, limitation, and functional application of information technology.
• Mini and large scale computer systems and applications.
• Local Area Networks (LANs) and Wide Area Networks (WANs).
• Flowcharting, data modeling, process modeling, form design, and control procedures.
• Research methods and techniques including structured system analysis and design, and
information engineering.
• Data input methods and control techniques for computer processing.
• Data communications security and privacy techniques.
• Principles for conducting a business system analysis, including the analysis of
procedures, equipment, and methods.
Forms design and report design.
• At least one type of database organization access and retrieval technique.
High level computer programming languages.
Ability to:
• Analyze, interpret, and present research findings to prepare design specification.
• Analyze specifications and instructions to develop appropriate systems and programs.
• Design effective information technology subsystems and develop appropriate programs.
• Conduct analysis, interpret research findings, conceive a variety of solutions to functional
problems, and reduce abstract ideas to easily understood procedures.
• Maintain multiple information technology systems using different programming
languages and operating systems.
Monitor and/or observe data to determine program problems.
• Develop logical code for efficient program execution.
Debug new and existing programs.
Class specs: Senior Software Developer specs
Senior Software Developer
Page 3
Additional Requirements:
Appointments to positions in the Police Department are subject to meeting appropriate
polygraph and background standards.
• Some positions require the use of personal or City vehicles on City business. Individuals
must be physically capable of operating the vehicles safely, possess a valid driver's
license and have an acceptable driving record. Use of a personal vehicle for City business
will be prohibited if the employee does not have personal insurance coverage.
• Some positions will require the performance of other essential and marginal functions
depending upon work location, assignment, or shift.
Education and Experience Guidelines:
Two years of experience in computer applications programming and development and systems
analysis and a bachelor's degree , in computer science, computer information systems,
mathematics, or a related field. Other combinations of experience and education that meet the
minimum requirements may be substituted.
Class specs: Senior Software Developer specs
ATTACHiMENT E
CITY OF WEST COVINA
CONFIDENTIAL
CLASS SPECIFICATION
December 2002
USER SUPPORT SPECIALIST
Job Summary
Assist computer users with hardware, software, and network problems or questions. Assistance is
usually provided over the phone, but can involve field troubleshooting, training assistance, or
other support. Depending on the assignment, this class provides support for: mainframe
applications, systems software, local area network (LAN) connections, computer hardware (such
as network servers, printers, terminals, and modems), and commercial software packages (such
as word processing, spreadsheets, electronic mail, and calendaring applications). Incumbents use
a variety of online monitoring and diagnostic software tools, reference manuals, vendors, and on-
the-job experience to solve problems and provide "how-to" instructions. Work is performed
under the supervision of a Software Development Manager, Senior Software Developeror other
supervisor.
ESSENTIAL FUNCTIONS:
1. Responds to requests from computer users regarding hardware, software, or network
connection problems or questions.
2. Prioritizes requests or problems according to established criteria and enters retevant data
into a computerized user -request tracking system.
3. Resolves problems or provides "how-to",instructions using a variety of online monitoring
and diagnostic software tools, reference manuals, vendors, and on-the-job experience.
4. Refers the more difficult problems or non -routine requests to other technical support staff
or supervisors.
5. , Places service calls with vendors and coordinates service for the user.
6. Advises users of the on -going status of their request, and places follow-up calls to ensure
that satisfactory service was provided.
7. Assists computer training functions, such as providing feedback to instructors on
common problems/questions, preparing training materials, or scheduling:; users for
classes.
8. Reviews records to check hardware/software inventory, update service calls, ',and verify
or modify user identification records.
9. Updates and revises reference materials and work procedures.
Class specs: User Support Specialist specs
10. Learns the functions and operation of new products, systems, or equipment by attending
training or through tutorials or self -instruction.
11. Produces basic statistical or work -activity reports by generating, computer queries or
gathering and assembling data.
12. Demonstrates continuous effort to improve operations, decrease turnaround times,
streamline work processes, and work cooperatively and jointly to provide quality
seamless customer service:
QUALIFICATIONS
Knowledge, Skills and Abilities:
Knowledge
• Computer operating systems, equipment, peripherals, and application packages',
• Microcomputer, minicomputer, and network troubleshooting techniques.
• Diagnostic tools and online monitoring software.
• Principles and methods of computer training and documentation.
1
Ability to:
i
• Communicate by phone or in person in a one-to-one or group setting regarding technical
or non -technical subjects.
• Comprehend and make inferences from written material.
• Observe, compare, or monitor data to diagnose problems.
• Input data or information into a computer terminal, PC or other keyboard device.
• Work cooperatively with users, coworkers, vendors, and other City. employees:
• Remain in a sitting position for extended periods of time.
• Watches and reads from a computer screen for extended periods of time.
• Learn job -related material through verbal instruction, observation, and reading.
• Maintain accurate records and logs.
• . Diagnose technical problems and recommend solutions.
• Work independently within established procedures and policies.
• Work safely without presenting a direct threat to self or others. '
Additional Requirements:
• Some positions will require the performance of other essential and marginal functions
depending upon work location, assignment or shift.
• Appointments to positions in the Police Department are subject to meeting+ appropriate
polygraph and background standards.
Class specs: User Support Specialist specs
User Support Specialist
Page 3
Education and Experience Guidelines:
Two years of experience in computer operations, production control, or providing technical
computer support for users. Other combinations of education and experience thatmeet the
minimum requirements may be substituted.
i