2012-27947 Reso ( -�
RESOLUTION NO.; 2012 -27947
j A RESOLUTION .OF THE MAYOR AND CITY COMMISSION OF THE CITY
i OF :MIAMI ;BEACH, - FLORIDA APPROVING, PURSUANT TO SECTION .2-
} 367 (d) OF THE MIAMI. BEACH CITY CODE, THE SOLE SOURCE
PURCHASE OF •A MOBILE INVENTORY MANAGEMENT SYSTEM FROM
4 MOTOROLA - SOLUTIONS INC, WHICH INTEGRATES WITH CITYWORKS,
IN"THEESTIMATED TOTAL AMOUNT>OF $137,067.
}
}
I WHEREAS, the implementation of Cityworks from.Azteca Systems, Inc. was part of
the original .proposal for an Infrastructure 'Management System (IMS) in the Public Works
'Department, which included .a Computerized Maintenance Management System (CMMS)
integrated with a Geographic Information:System (GIS). A Request for Proposals (RFP) was
`issued in 2004; and
WHEREAS, the contract for the development of the CMMS portion of the project was
awarded Ito Camper :Dresser, McKee, Inc. (CDM) in 2005_ Cityworks from Azteca was
:selected to - be 'the best software system 'based on this RFP; Cityworks software was
f purchased 'for the City as part of the CMMS project; and
E WHEREAS, Cityworks is operational and has been in use by the following Public
Works' Divisions: Water, - - Storm Water, Sewer, Streets, Street .Lights, 'Sanitation and GIS
since'May.2006, and has been in use- in:Engineering since June 2010;.and
-WHEREAS, . Cityworks has the Public Works Department's requirements for
the past five (5) years. Recently, 'Cityworks was successfully - implemented for . the
Convention Center, sand is .currently being implemented for the Property Management
Division :of Public Works; _and .
'WHEREAS, Motorola Solutions represented the Cityworks product over nine (9)
years. Motorola Solutions commitment to the product has allowed `the establishment of a
strong relationship with Azteca Systems, and that success' has been expanded into the
current relationship.they have in place with Miles Technology; iand
WHEREAS, `Miles Technologies INVision Software is used to interface the
. 'Motorola's handheld mobile computers -to Azteca Cityworks StoreRoom Module; and
WHEREAS, =this :partnership ',is unique and provides the Mobile 'Inventory
Management System 'offering exclusive to Cityworks, which is _the only experienced
implanter of the 'Mobile Inventory 'Management. 'System that integrates with Cityworks
Storeroom.
f
( WHEREAS, .theWobile Inventory Management System will - solve'these: problems by
bringing the data entry .device and bar .coding to the location of , the materials; the 'total
inventory of Public Works Operations Warehouse is on an average $2,600,000.00 with a
total 'of'$1;100,000.00 materials issued to work orders.in a year; ,and
WHEREAS, 'Motorola 'Solutions lnc.'s proposal includes the Invision 'for Cityworks
Site ;License, On -site and Off -site Implementation .Services, purchase of :six (6) Motorola
Solution MC9.0.90 °Mobile•Handheld Computer devices, .One (1) Bar Code `Printer, Wireless
Infrastructure Hardware, and three (3) years of annual support and maintenance. The total
amount including the three (3) years of support and maintenance is $137,067.00; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, :FLORIDA, that the Mayor and City Commission hereby
accept the recommendation of the City Manager approving pursuant to .Section .2 -367 (d) of
the Miami Beach City code, the sole source purchase of a Mobile Inventory Management
System from Motorola Solutions Inc, which integrates with Cityworks, in the estimated total'
amount of $137,067.
PASSED AND ADOPTED THIS DAY OF J KI 201
E
ATTEST:
... Bs
CITq CLERK —t7
:INOOROr3FaT'U
1 i
2 j 44, L
T:\AGENDA \2012 \7 -18 -12 \M0bi1e Inv esolution.doc
H 2E
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida Approving, Pursuant
To Section 2 -367 (d) Of The Miami Beach City Code, The Sole Source Purchase Of A Mobile Inventory
Management System From Motorola Solutions Inc., Which Integrates with CityWorks, In The Estimated Total
Amount Of $137,067.
key Intended Outcome Supported:
Maintain City's Infrastructure and Improve Storm Drainage Citywide
Supporting Data (Surveys, Environmental Scan, etc.):N /A
Issue:
Shall the Mayor and City Commission adopt the Resolution?
Item Summa /Recommendation:
The implementation of Cityworks was part of the original proposal for an Infrastructure Management System
(IMS) in the Public Works Department, which included a Computerized Maintenance Management System
(CMMS) integrated with a Geographic Information System (GIS). Cityworks is operational and has been in
use by the following Public Works' Divisions since May 2006, and has been in use in Engineering since June
2010. Cityworks has fulfilled the Public Works Department's requirements for the past five (5) years.
Azteca Systems, Inc. designs, creates, and owns the Cityworks software, including the copyright and
trademark ownership. Azteca Systems, Inc. is the sole source provider and licensor of the software and
therefore, the sole source provider for software maintenance services within the United States. Motorola
Solutions has represented the Cityworks product over nine (9) years. Motorola Solutions commitment to the
product has allowed the establishment of a strong relationship with Azteca Systems, and that success has
been expanded into the current relationship they have in place Miles Technology.
Miles Technologies INVision Software is used to interface the Motorola's handheld mobile computers to
Azteca Cityworks StoreRoom Module. This partnership is unique and provides the Mobile Inventory
Management System offering exclusive to Cityworks, which is the only experienced implanter of the Mobile
Inventory Management System that integrates with Cityworks Storeroom. This system has been installed in
.. the maintenance warehouse of O'Hare Airport in Chicago and it has increased the efficiency and reliability of
the asset management system.
The Mobile Inventory Management System will solve these "problems by bringing the data entry device and
bar coding to the location of the materials. The total inventory of Public Works Operations Warehouse is on
an average $2,600,000.00 with a total of $1,100,000.00 materials issued to work orders in a year.
THE ADMINISTRATION RECOMMENDS ADOPTING THE RESOLUTION.
AdvisoKy Board Recommendation:
The case was presented to the IT Steering Committee on July 20, 2011 and it was approved without any
further recommendations.
Financial Information:
Source of Amount Account
Funds:. 1 $ 45,689 Public Works Funding - 425 - 0410 - 000343
2 $ 45,689 Public Works Funding - 425- 0420- 000343
3 $ 45,689 Public Works Funding - 427 -0427- 000343
O PI Total $137,067
Financial Impact Summary:
City Clerk's Office Legislative Trackin
Raul Aguila
Sign-offs:
Department Director Ass's ity Manager City M a r
FB JGG PDW KGB
T:V1GE A\2012V -18 -12 \Mobile Inventory Management System - Summary final.docx
AGENDA ITEM C 7 MIAMIBEACH
DATE l8 Z,
m MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie G. Brooks, City Manager
DATE: July 18, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA APPROVING, PURSUANT TO SECTION 2 -367 (d) OF
THE MIAMI BEACH CITY CODE, THE SOLE SOURCE PURCHASE OF A MOBILE
INVENTORY MANAGEMENT SYSTEM FROM MOTOROLA SOLUTIONS INC,
WHICH .INTEGRATES WITH CITYWORKS, IN THE ESTIMATED TOTAL AMOUNT
OF $137,067.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENTDED OUTCOME SUPPORTED
Maintain City's Infrastructure and Improve Storm Drainage Citywide.
FUNDING
The funding of $137,067 will be evenly split between the following accounts:
425- 0410 - 000343 - $ 45,689
425- 0420 - 000343 - $ 45,689
427- 0427- 000343 - 45,689
$137,067
ANALYSIS
The implementation of Cityworks from Azteca Systems, Inc. was part of the original
proposal for an Infrastructure - Management System (IMS) in the Public Works
Department, which included a Computerized Maintenance Management System
(CMMS) integrated with a Geographic Information System (GIS). A. Request for
Proposals (RFP) was issued in 2004.
The contract for the development of the CMMS portion of the project was awarded to
Camper Dresser, McKee, Inc. (CDM) in 2005. Cityworks from Azteca was selected to
be the best software system based on this RFP. Cityworks software -was purchased for
the City as part of the CMMS project.
Commission Memorandum — Cityworks Mobile Inventory Management System Sole
Source
July 18, 2012
Page 2
Cityworks is operational and has been in use by the following Public Works' Divisions:
Water, Storm Water, Sewer, Streets, Street Lights, Sanitation and GIS since May 2006,
and has been in use in Engineering since June 2010. Cityworks has fulfilled the Public
Works Department's requirements for the past five (5) years.
Azteca- Systems, Inc. designs, creates, and owns the Cityworks software; including the
copyright and trademark ownership. Azteca Systems, Inc. is the sole source provider
and licensor of the software and therefore, the sole source provider for software
maintenance services within the United States.
Motorola'Solutions has represented the Cityworks product over nine (9) years. Motorola
Solutions commitment to the product has allowed the establishment of a strong
relationship with Azteca Systems, and that success has been expanded into the current
relationship they have in place with Miles Technology.
Miles Technologies INVision Software is used to interface the Motorola's handheld
mobile computers to Azteca Cityworks StoreRoom Module. This partnership is unique
and provides the Mobile Inventory Management System offering exclusive to Cityworks,
which is the only experienced implanter of the Mobile Inventory Management System
that integrates with Cityworks Storeroom. This system has been installed in the
maintenance warehouse of O'Hare Airport in Chicago and it has increased the efficiency
and reliability of the asset management system.
This purchase will obligate the City to continue using Cityworks and the Mobile Inventory
Management System from Azteca System Inc. and pay our yearly maintenance fee.
The City's site license allows for unlimited amount of users of the software. If the City
would decide purchasing other available software modules, these modules will. have to
be purchased from Azteca Systems, Inc. and /or Motorola_Solutions.
Sole Source Justification
After an in -depth investigation of the business needs the GIS Manager together with the
Executive Director Enterprise Solutions, Mr. George Mastakas of Azteca, Inc. created
the technical specification and presented these specifications to Motorola Solutions, Inc
only. Based on these specifications Motorola Solutions, Inc. presented the Cityworks
Mobile Inventory Management Implementation Proposal.
The City's GIS Manager and Azteca Systems Inc. compared this proposal to other
systems on price and capabilities. Since no other system exists with the unique
integration of this system, a full comparison analysis could not be done, however, it was
concluded that the price for this system is fair and reasonable.
Since January 27, 2011, the date the first budgetary proposal was received, the GIS
Manager had several conversations and e-mail exchanges with the Enterprise Asset
Management (EAM) Product Manager from Motorola Solutions, Inc to discuss the total
cost of the proposal and the different cost components of the total solution. With the use
of the Miami Beach WIR network and development support of the GIS development
2
Commission Memorandum — Cityworks Mobile Inventory Management System Sole
Source
July 18, 2012
Page 3 .
staff, we were able to contain the cost of the system under the available budget for this
project. .
The City's internal Auditor reports indicated that the current process to issue materials in
the Public Works Operations Warehouse had some major problems. To illustrate,
issued materials are not directly entered into the system, but recorded on a paper form.
The data from this form is later entered into our Computerized Maintenance
°Management System (CMMS) Cityworks; this.process can lead to omissions and errors.
Please refer to the "automation of forms" in findings 1 and 2 of the enclosed Audit
Report.
The Mobile Inventory Management System will solve these problems by bringing the
data entry device and bar coding to the location of the materials. The total inventory of
Public Works Operations Warehouse is on an average $2,600,000.00 with a total of
$1,100,000.00 materials issued to work orders in a year.
Motorola Solutions Inc.'s proposal includes the Invision for Cityworks Site License, On-
site and Off -site Implementation Services, purchase of six (6) Motorola Solution MC9090
Mobile Handheld Computer devices, One (1) Bar Code Printer, Wireless Infrastructure
Hardware, and three (3) years of annual support and maintenance. The total amount
including the three (3) years of support and maintenance is $137,067.00. Please. see
attached Motorola Solutions Inc.'s proposal and letters.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of
Miami Beach, - Florida, adopt the attached resolution, herein approving pursuant to
Section 2 -367 (d) of the Miami Beach City code, the sole source purchase of a Mobile
Inventory Management System from Motorola Solutions Inc, which integrates with
Cityworks, in the estimated total amount of $137,067.
TAAGENDA\2012 \7 -18 -12 \Mobile Inventory Management System- Memo 1a final.docx
3
i
i
CITY WORK MOB ILE
E
F
NVENTORY, MANAGEMENT
IM PLEMENTATION TATION SAL
FOR
T CITY OF
M IAMI BEAC
�:u t k
March 22, 201.2
The design, technical, and cost information furnished with this
� y
proposal is to be considered proprietary information of Motorola
Solutions, Inc. Such information is submitted with the restriction
that it is to be used only for the evaluation of the Proposal, and is
not to be disclosed publicly or in any manner to anyone other
than those required to evaluate the Proposal without the express
y ; ; written permission of Motorola Solutions, Inc.
� d
3 MOTOROLA, MOTOROLA SOLUTIONS, MOTO and the .
Stylized M Logo are registered in the U.S. Patent &Trademark
Office. All other product or service names are the property of
their respective owners.
MOTOROLA "SOLUTIONS. Inc. 2012
RIM
MOrCROLA SOLUTIONS
March 22, 2012
Bert Dorrestyn
GIS Manager, Public Works Department
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Tel: 365- 673 -7000 Ext 6347
Subject: Mobile Inventory. Management Proposal for the�City�of Miami Beach.
Dear Mr. Dorrestyn: -
Motorola Solutions is pleased to present the City of Miami Beach the following proposal for
the expansion of Cityworks Storeroom to including mobile bar - coding technology into the
warehouse. Cityworks is the market leading GIS -based asset and work order management f
system, with a fully integrated inventory'management module, deployed in over four hundred
(400) unique customer locations worldwide. The implementation of Motorola's Mobile
Inventory Management with bar- coding technology will offer improved efficiencies for
materials management and work order management within the City's warehouse operations.
-i
Motorola has represented the Cityworks .product for over nine years. -Our commitment to the
.. product has allowed us to establish a strong relationship with Azteca'Systems, and that
success has-been expanded into the.current relationship we'have in place with Miles
Technologies. These partnerships are unique in that they come.togetherto provide.the
Inventory Management offering exclusive to Cityworks that is described within this
proposal. As part of these Motorola remains as the -only; authorized •reseller
of-Cityworks software and to date is the only experienced'implementer of the.Mobile
Inventory Management system that'integrates with Cityworks Storeroom.
We invite you to review the contenYof the Mobile Inventory Management and bar - coding
proposal and look forward to discussing the details of it with you in the near future. This
proposal is being submitted on'a firm -fixed price basis and is subject to the terms and
conditions of Motorola Solutions' existing. contract (number BW8127- 5 /12 -OTR) in place . {
with Miami Dade County. This Motorola Solutions proposal - is "valid for sixty (60) days. If
9
you have any questions regarding this proposal, please contact Jeff Ceg'ielski, 262 - 253 =1416
or at Jeff. cegielski2motorolasolutions .com
Sincerely,
Motorola Soluti ns, Inc. I
Jets' — '
ko Ludlow l
Director, Advanced Solutions Team
4 f
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential 'Proprietary
E
1 1
i
M070ROLA SOLUTIONS ;
BACKGROUND
Miami Beach has an enterprise -wide labor and materials tracking solution called Cityworks,. I
created by Azteca'Systems. While Cityworks handles the material details, it does not offer an
out -of- the -box wireless solution for inventory management. INVision for Cityworks is a
Wireless Mobile Inventory Control solution that bridges that gap and enables Miami Beach to use
barcode scanning.and realAime"transaction and materials tracking in their warehouse:
t
The INVision developers and Motorola - Solutions have partnered up to create the INVision for
-Cityworks solution to add mobile wireless real -time inventory control to Cityworks' Storeroom
functionality. INVision for Cityworks has been fully implemented and successfully deployed at
the second largest airport facility in the U.S. by the City of Chicago Department of Aviation.
Cityworks will track the PO's, the receipts, the transfers, the requisitions, and the labor for the
work orders they apply to while the Storeroom application will act as a repository for the
available inventory within Cityworks. .
INVision will enable Cityworks to maintain an accurate inventory of what is in the warehouse
through barcode scanning to enable real -time posting of Purchase Order receipts, Material
Requisition issues to persons or Work Orders, and Transfers of materials within the warehouse
or from Warehouse to satellite Storerooms, as the transactions occur. It will also enable a free-
standing cycle and physical count process to maintain inventory accuracy.
INVis[ON SOFTWARE :INTRODtJCTIO.N .
INVision is.a real -time, Windows - based, inventory control system that addresses all of the
commonly -used functions in atypical warehouse environment. It incorporates the latest in
wireless data collection technologies and a powerful PC database to provide timely and accurate .
inventory data.
While INVision was created to manage the complexities of inventory control, it was designed to
make those tasks very simple. INVision is a state -of -the -art, feature -rich Inventory Control
Solution -that his priced to be the most affordable solution in the industry. .
With a comprehensible GUI interface for PC workstations and an easy -to -use prompt -and-
response'interface for wireless.data collection. terminals, INVision was designed to manage and
record all inventory stock movements, such as Receiving, Put Away, Moves and Picks. The
system also - includes Locator and Cycle functionality and provides historical and real-
'time reporting for all of these transactions. -
INVision.makes.use of:both wireless data collection terminals and PC workstations. Warehouse
- transactions are performed on wireless handheld terminals, and data queries, reporting and
adjustments.are managed -on PC workstations. INVision will provide the visibility -and inventory
accuracy required to make informed business decisions.
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
. 2
M070ROLA SOLUTIONS
The INVision system is comprised of.three major components:
• INVision Client (Workstation PC App)
INVision Server (Database, RF Communication Server, Integration Server-Software)
• Radio Frequency Terminals ,
'Vtfire€oss t3evices
INVision, erver= Host System �
'. Access Point;
Cl ient PC C €i nt PC Ghent PC Client PC Client PC
Client PC's are used to run the INVision Desktop Client program. From this, program, a user can
lookup inventory, modify system settings, run reports, and adjust quantities. This part of.the
application was designed to allow multiple users to query the same database. Each client PC '
must be connected to the network to allow the program to function properly.
The INVision. server has multiple responsibilities. First, the INVision database will reside on this
machine, allowing multiple RF and Client programs to query for results. Second, the INVision
RF Communications Program allows you to configure handheld behavior, monitor RF activity,
and ensure database connectivity from each of the handheld devices. Finally, their. may also be
an INVision Server program which is responsible for'importing.and exporting.to your host
system. .
The Radio Frequency (RF) terminals. These devices run the INVision mobile application. This .
application or program . allows users to Receive, Put Away, Pick, Ship, Move, Count, and- Lookup ;
inventory from the warehouse floor via radio connection. Although the devices are not physically
connected to your network, the RF connection allows these devices to update your database in
real -time; giving the Desktop Client program instant and real, inventory results.
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
3
MOTOROLA SOLUTIOIVS
SCOPE OF WORK
The intent of this section is to initially identify the responsibilities of Motorola'Solutions and the
City regarding the scope of work, deliverables and schedule of the project described herein.
This Scope of Work describes. the work for professional services to be performed by Motorola
Solutions for:the City of Miami Beach (Customer). It delineates responsibilities between
Motorola Solutions and the Customer agreed to by the contract. Services shall be provided in
accordance with,.a mutually agreed to consulting timeframe. The final Statement of Work,,
project.timeframe, cost, and starting date are contingent on agreement from both parties.
Motorola Solutions shall on -site Business Systems Analyst consulting time to the City of
Miami Beach for deployment of the Mobile Inventory Management system. The on '-site
consulting must take place in consecutive weeks. Details of the type of work to be performed
can be found under 'Anticipated Project Tasks ".
GENERAL, REQUIREMENTS
Motorola Solutions and the Customer will each provide a single point of contact for all
administrative, technical,.and scheduling issues related to the project.
MOTOROLA'S PROJECT RESPONSIBILITIES (C ENFRA.L)
Provide a single point of contact responsible for managing all Motorola'Solutions
activities, deliverables, and schedule during the period of the contract,
➢ - Schedule the delivery of professional services consulting in agreement with the
Customer,
➢ Work with the Customer Project Manager in the- resolution of project issues,
➢ Motorola Solutions will provide:a summary of the hours expended on the project,
Maintain and report overall project action 'items for Motorola Solutions,and Customer
required activities, and
➢ Bring Azteca Systems into review the final configuration.
CITY OI MIAMI Bl ACII PROEct, REsI .S (GE NI +,RAI )
The City of Miami Beach shall be responsible for the performance of all equipment and software
provided by.the Customer'for use by Motorola in the performance of this contract.
Customer's responsibilities on this project are further= defined in the SOW. If the Customer
Use or disclosure of this proposal is subject to the restrictions on the tide page.
Motorola Solutions ConfidentialProprietary
" 4.
moroROLA SOLUTIONS
employs an outsourced IT vendor to perform certain Customer identified responsibilities, the
Customer is responsible for managing the outsourced IT vendor and assuring; delivery according
to the project.plan. Customer's general responsibilities include the following:
➢ Provide a customer Project Manager as .a primary point of contact,
➢ Provide access.to key personnel in a timely manner,
➢ Provide access to facilities and equipment and,
➢ "Provide timely responses to Motorola Solutions requests for information necessary for
the - performance of this contract,
➢ Cooperate in the scheduling any system changes so as to minimize the downtime ofthe
system and the impact to the Customer,
➢ Support a:safe work environment for all activities,
➢ Work with the Motorola Solutions point of contact in the resolution of.project issues,
➢ Participate in and support overall project scheduling,
➢ Be responsible for timely execution of Customer responsibilities as defined in this SOW,
➢ Provide,all required IT infrastructure to include servers, Oracle or.SQL Server -and ESRI
Other specific tasks as defined in this SOW.
PROJECT TASKS
"Out -of -the= box ", the baseline INVision inventory control software is designed for integration
with host system that supplies the Purchase Order and Sales Order information, and processes
the receipts and issues acknowledgements that INVision provides. INVision retains the
knowledge of precisely where in the warehouse all 'inventories are located, and .the host system is
only updated with information pertaining to receipts and issues.
Originally, to simplify the implementation costs, streamline deployment, "and avoid feature-
changes to the baseline system, fNVision , as will be implemented at Miami Beach
With this baseline functionality for the desktop application and device screens, with only the
receipts /issues interface with Cityworks as. "CUSTOM" development.
• INVision RF Client and Desktop will be used for searching, cycle counting and
maintaining.the physical inventory in the Warehouse, and in the Storerooms (when
applicable).
+ All inventory transactions in INVision are reflected real -time in Cityworks,. and
historicallyrecorded there.
• " Cityworks is the interface for performing Inventory Adjustments and Work Order posting
(and back - flushing the Storeroom inventories in Cityworks and INVision for the
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
5
MOrONOLA SOLUTIONS
materials consumed "on the job"). Any such adjustments in Cityworks will be reflected
- near- real -time in INVision.
• All Purchase Orders are maintained by and within Cityworks; INVision validates receipts'
against those PO's and reports the receipts back to Cityworks for auditing.
• Cityworks will be the primary reporting •interface for the warehouse data for those ,
associates and tradesmen of Miami Beach who do not. work in the warehouses:
INViS1ON INTEGRATION
There are two primary areas of system design changes between INVision "baseline" and
INVision for Cityworks.". The first involves multiple kinds of orders that INVision system
needs to support in conjunction with Cityworks, and the necessity to post all inventory moves
and adjustments from INVisionto'Cityworks.
Cityworks and INVision are both built on SQL databases, so sharing data between the two
systems is a matter of utilizing queries, stored procedures, views, triggers, and SOAP methods to .
ensure that all inventory transactions and information is bi- directionally shared (when
applicable). For example, adds and changes to the MATERIALLEAF table'in Cityworks should
trigger an insert or update'into.the ItemMaster table in INVision. This' integration is subject to
the limitations of the ODBC links :between the platforms; :Cityworks SQL services supported by
Oracle, INVision is supported by MS -SQL. Communications between the two systems is
managed by an INVision Data Server. application that manages the required bidirectional polling.
Receipts '
Cityworks has record of Purchase Order Requisitions (POReq) which are be "exposed" for the
• INVision system to query against whemperforming a Receiving Transaction in the Main
Warehouse.
When.materials are received in the main Warehouse though INVision, the receipts will be posted,
against the POReq in Cityworks.= Cityworks' Storeroom will be updated with the additional stock
quantities for the Warehouse /Storeroom for the default Bin Location for that item.
All receipts will be put away by Part Number to random'Bin Locations in the Warehouse in
'INVision.
Moves
Moves performed using INVision within the :warehouse from one bin location another will be
reflected as a Transaction in Cityworks, but Cityworks STORERIVMSTOCK•tables will not be
updated because there is no net change in material quantity for an intra- warehouse move.
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
6
ROLA SOLUTIONS
Transfers
When material is transferred from the Warehouse to a Storeroom using IN,Vision, the inventory
will automatically transfer within INVision to the default Bin Location for that storeroom as
defined in the Cityworks STORERMSTOCK table, and will also post the transfer transaction for
Cityworks to make a parallel update.
Issues
INVision has a transaction called.ISSUE which enables INVision to capture the transfer of
materials to a Person (as defined as a Cityworks EMPNAME), and /or to a Work Order
(explicitly defined in Cityworks) directly from the warehouse or storeroom, based on :a Manual
Material Requisition form. The;MaterialCostlD for this transaction to be posted against will have
to.be audited by the Work Management Center via the submitted paper work after the fact.
Issues do not have a "bill of materials" (BOM) to validate against until the material is actually
pulled. - So all issues are being "recorded as the materials are being pulled for the issue;
inventory is not decremented in INVision or posted to Cityworks until the Issue is "closed" as
completed in INVision— any items can be returned to stock before closure via the Put -Away
function after the items has been : "rejected" instead of issued.
Work. Order Back Flush
The.inventory quantities in INVision and Cityworks would remain up -to -date if INVision's
ISSUE transaction was used to post ALL material issues, including Work Orders. However, this
would require a serious change in workflow for the Trades, the Work Management Center, and
for the Warehouse. Work Order issues will be the exception and not the rule. Currently all issues
are material issues to a Person, not.a Work Order.
When posting a Materials Issue in Cityworks (for a. Work Order or to an individual) against the
inventory in a storeroom, this should decrement the inventory in the Cityworks
'STORERMSTOCK table and trigger a parallel decrement of the INVision Inventory table for the
Part Number at the Bin Location recorded in Cityworks STORERMSTOC via an XML
Document transaction posted through integration.
If INVision has only one bin location for that item in that store room, the back flush will result in
identical and accurate inventory records in both INVision and Cityworks; if the inventory is
stored in more than one location in INVision and the inventory was not pulled from.the Primary
Location (which is specific to each warehouse), then the back flush will incorrectly decrement
the.entire issued quantity from the storeroom's primary location.and possibly drive the inventory .
negative for that bin location -- however, the aggregate quantity of that part number in the
warehouse should match exactly-with Cityworks Storeroom qty for that,part number in the
warehouse. Any discrepancies in INVision will be cleared up during cycle counting and
reconciliation via moves to correct the INVision variance reports. Any Adjustments required to
account for overall discrepancies between the aggregate physical,count and the aggregate
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietarv.
OF"OMOLA SOLUTIONS
recorded inventory will need to be manually adjusted in Cityworks; such adjustments to the
material quantities in Cityworks' Storeroom will be reflected in.a -parallel . adjustment in
INVision for the inventory count primary location for.the storeroom via the XML integration.
Sales Orders
INVision has existing functionality to support a sales order process for shipping 'inventory out of
the warehouse to an end -user customer. This functionality is .useful to a distribution center, but is
not applicable to the warehouse operations via Cityworks, and is suppressed and not available in'
the INVision for Cityworks.
IMPLEMENTATION PLAN
PHASE 1: START -UP
INVision for Cityworks may be run in a stand -alone fashion, where the POR'.s and issues are
handled in a "blind" manner, where they are recorded and.tracked in INVision,'but not validated
or posted against the host system. This enables INVision to'build and maintain an accurate
inventory separate from any host system. It Tacks the richness of the full product, but is sufficient
to get the warehouse operations up and running.
This is,also used to .test the implementation prior to completing the integration hookups with
Cityworks. In order for Cityworks to function it needs, as a baseline, current; complete and
accurate inventory information for the warehouse. Until they have accurate, inventory
information, they cannot even "turn the key ":to get the Cityworks system started. This will
require the developers to supply a one -time (or reproducible) export of the Item,
Warehouse and Location master files from the existing databases set baseline.
The warehouse users will then need to perform a:complete.physical count of all materials in the
warehouse,. Audit the inventory using INVision's Variance. Report and perform any adjustments
required in Cityworks to handle.the discrepancies.
Then Miami Beach can begin using INVision,to -track all of their receipts and issues and moves
into, within and out of the warehouse.
PRASE II:: INVISION AND CITYWORKS
Once the inventory information is deemed accurate The INVision Implementers will return and
assist Motorola with transferring a copy of the.current inventory information into Cityworks, and
then apply the integration tools to link up INVision and Cityworks via the issues /receipts
transactions, so that -all Work Orders and Purchase Orders in- Cityworks will be visible and
validated against in INVision.
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
8
miaromOLA SOLUTIONS
Alternatively, Cityworks could export the current inventory -by= location information (if it is
available), and Miami Beach's main warehouse could begin using INVision in for inventory
control, using cycle - counting over a periods of weeks, and gradually work towards acceptable
inventory accuracy. -All transactions would be performed using INVision, but the inventory
`would NOT be accurate at the beginning.
At tliis point in time, Cityworks and.INVision will be integrated, and'in such a manner that either
system could be temporarily shut down for maintenance without causing undue or unacceptable
harm to either system.... Files and transactions would just queue up until such time as the shut-
down was ended and normal processing would occur. This can be implemented using XML
transfers via stored procedure calls to INVision from Cityworks.
Sy 51 [",M COMPONENTS:
Hardware: Win Server or a dedicated .WinXPPro 'Applications Server
Motorola /Symbol WLAN
6 x Motorola / Symbol MC909x Mobile Computers
Software: MCL- Net=10
6 x MCL - Clients
Seagull ScientifiCs BarTender Enterprise Automation (BT-EA-3)
Applications: INVision RF Device Application (s) (MCL Project)
INVision Desktop Client
Custom Integration. with Cityworks
Implementation
Services: System Requirements Definition
System Integration, Implementation .
Installation and Training
Pre - Req's: SQL Server
Cityworks Developer Cooperation
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
MC)rOROLA SOLUTIONS
PROJECT OVERVIEW AND SCOPE
F - WIRELESs NETWORK
Miami Beach has a municipal WIFI network in place that may supply sufficient wireless
coverage for this application. However, an infrastructure specific to the warehouse may be
required for to ensure proper implementation of the mobile computing system in the warehouse:
Regardless, a.cursory RF Site Survey is required to validate the existing wireless infrastructure to
assure proper 802.11 b/g wireless coverage. (The INVision Implementers is not responsible for'
cell phone coverage.— see the cellular network provider.) The INVision Implementers will
perform this as an implementation step to assure that the warehouse has complete RF coverage,; .
and to alert Miami Beach of any dead spots or holes in the coverage. Any additional wireless
infrastructure or services will be quoted separately.
WIRELESS INVENTORY CONTROL SOFTWARE
+ INVision — Deliver, install, site specifically configure, test and load customer data into, the
INVision Inventory Control software on Miami Beach's supplied server. Install, .configure
and test up to 3 Windows 2000 or above client PC's.
• Cityworks Integration - Install, configure and test bi- directional 'aransactions .betweeni
INVision and Cityworks using SQL and SOAP =based methods.
• Seagull Scientific's BarTender — Deliver, install, . configure and test BarTender Label .
Software for customer, for "Part Number" label automation -at receiving.
PROFESSIONAL SERVICES
• Project Management Services — The scope of this project includes all'the services related to
successfully implementing INVision in ]Miami _Beach's warehouse operations. This includes ,
system requirements definition (SRD), solution engineering, _project kick off meeting, site
specific configuration, data base loading, testing, system certification, resource coordination,
training, process automation consulting, and on- going support.
'• ..Cityworks Integration — Install, configure and test bi- directional transactions between
INVision and . Cityworks using SQL and SOAP -based methodologies.
HARDWARE
• Included in the scope of this project is the recommendation of wireless bar .code printers,
`related labeling stock and supplies, scanners and wireless terminals for.use with INVision for
Cityworks. Also included is the delivery, set up, configuration of Bar Code Printers,
Scanners, Mobile Computers, and Wireless Network components:
• Please note that hardware provided under this proposal will support current industry
standards for wired Ethernet using CATS cabling and Wireless .802.1 b/g standards.
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential 'Proprietary'
10'
10 M07 7 0NOLA-SOLUTIONS
IMPLEMENTATION STEPS
There are four steps to, the basic INVision for Cityworks implementation plan:
L System Requirement Definition (SRD) - is : a critical step" in a successful implementation.
The Project Leader will detail the. software configuration requirements, data flow with other
systems involved and RF site survey for layout 'of the Wireless network to be used in the
inventory control process, as apart of the SRD. This also details how the .integration between
INVision and Cityworks will occur.: (Includes certification . of customer supplied
infrastructure such as servers, PC's, network and software component such as MS SQL
Server.) This process includes .a Gap Analysis to ensure that INVision for Cityworks will
meet the functional needs for warehouse inventory control for Miami Beach:
'2. Project Kick Off Meeting will 'be established with leaders and ,qualified participants Miami
Beach, and Motorola's INVision for Cityworks implementers._ The meeting will focus on
tasks, responsibilities, inilestones with associated dates for the project.
3. Coordination of. all activities; warehouse prep, any setup and or process :improvements, IT
- infrastructure coordination, installation, testing, training, certification and.sign -off.
4. System Live,.
a. Standalone .INVision implementation. phase. On the cut over day, your INVision
Project Leader will be on -site the first day the system goes live, to assist with learning
curve and system performance issues.
b. Cityworks Integration implementation phase. On the cut over day, .your INVision
Project-Leader will - be on -site the first day the system goes live, to assist with learning
curve, integration, and system performance. issues.
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
m0roROLA SOLUTIONS
Assn VIPTIONS AND CUSTQMER RESPONSIBILITIES
The'following are issues that must be addressed by Miami Beach:
SYSTEM INFRASTRUCTURE
It is the responsibility of the customer to acquire all the additional hardware, software (including
MS SQL Server and client licenses),and network components required by the INVision
Inventory Control Solution. PC clients must be MS Windows 2000 or above and free of defects
or operational anomalies as The INVision Implementers cannot be responsible for reconfiguring
or reloading OS and end user applications.
INVi SION SERVER REQUIREMENTS
_ A server running Windows 2003 (or higher) is required for INVision and the supporting utilities.
This PC should be dedicated to INVision with the following minimum hardware, profile; Pentium
4 processor, 256 MB of system RAM, I OGBytes ofhard disk, CD, Fast Ethernet Network
adapter, Super VGA graphics and Monitor, Mouse, Keyboard, Modem and Microsoft Office
2007/XP. Please note that a tape back up system is not included, it is assumed that the IT group
(not Motorola) will be responsible for backup and recovery procedures with their existing
processes. Please check with IT'to make sure that this can be done and that they have the `open
database' tape backup agents, which allows for backup of the database while it "is open or being
used.
_.
14
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Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
12
MOTIOMOLA SOLUTIONS
HOST AND NETWORK INTERFACE
From time to time the .project team will need to .consult with the organization or persons
responsible for setting up the customer's host system:and IT infrastructure: The customer is
responsible 'for providing access .to these resources. Additionally, the IWision implementers
= request `supervisor- level' network ' access I security clearance or the. customer must provide
equivalent support to.the INVision implementers- during .installation and all site work.
PROJECT ASSUMPTIONS:
➢ An 802.11 a/b /g Wireless roaming- supporting infrastructure with complete and necessary
coverage is required to support this project. Q.uantities:and configurations presented
above are for estimates, .and may change based upon the results of the RF Site Survey,
and assume coverage requirements for a small warehouse.
➢ . The, City will have all hardware. available and loaded with any necessary software'
required for Cityworks and /or Storeroom.
The consulting will - take .place within an .eight (8) week period.
➢ The City will work with Motorola`Solutions to- determine a schedule for the project and
will .give :a minimum of three weeks'advance notice for all work to be - performed.
t
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
1 3
MOrOROLA SOLUTIONS
PRICING TABLE
Component Units Description Price
INVisiorrfor Site License INVision for Cityworks (Site License) -- The fully $ 25,000.00
Cityworks Customized MCL -RF Client with INVision Desktop
and Seagull's BT -EA -3
On -site On -site implementation services for INVision $ 37,000.00
Implementation implementation including:
Services SRD
• RF coverage validation
• Installation
Training
Travel
Off -site Off -site implementation services for INVision $ 18,800.00
Implementation implementation including: .
Services Development of bidirectional.interface
Testing
Annual Support Three (3) Annual maintenance agreement for INVision $ 9,600.00.
and Years software. Support includes software upgrades,.
Maintenance technical phone support and bug.fixes.
Agreement
Motorola Six (6) Six (6) Motorola Solutions MC9090 Mobile $ 28,667.00
" Solutions Motorola Handheld Computers Including:
MC9090 Mobile Solutions 3 7 year bronze lev_ el,service
Handheld MC9090 Spare Battery
Computers devices Cradle Kit
Cables
INVision software installed and prepared to be
configured for use with Cityworks Storeroom
Bar Code One (1) Bar Zebra 105SL Printer w/ Internal Print Server and $ _3,000.00
Printer Code Printer US Line Cord
Wireless Wireless Infrastructure Hardware and on -site $ 1.5,000.00
- Infrastructure Services to include:
Site Survey
Wireless 802.11 Switch
Access Port
Antennas
Installation Services
Travel
Total Mobile inventory Management Implementation Proposal :$`137,067:00
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
14
M070FIOLA SOLUTIONS,
PAYME T S CHEDU L
The following payment schedule describes three (3) payment milestones. -Payment is due.Net 30
days from the date of invoice.
Pa menu 3 1✓st�mated Completion
Milestone Desert' tion Payment
- Milestone p Date
1 Contract Signing TBD $ 35,000.00
.2 Software Delivery TBD, $ 35,000.00
On -Site Hardware and
3 Infrastructure Installation TBD $ 67,067.00
Total 100%
Use or disclosure of this proposal is subject to the restrictions on the title page.
Motorola Solutions Confidential Proprietary
M OTOROLA SOLUTIONS
May 10, 2012'
Patricia Walker
Chief Financial. Officer
City of Miami Beach
17.00 Convention Center Drive
Miami Beach Fl 33139
Dear Ms. Walker:
Azteca systems, Inc. provides an Enterprise. -GIS asset maintenance management system,
Cityworks to The City of Miami Beach. Cityworks is the market leading GIS =based asset and
work order management system, with a fully integrated inventory management module,
? deploved in over four hundred (400) unique customer locations worldwide.
The implementation of Motorola's Mobile Inventory Management with bar- coding technology
will offer improved efficiencies for materials management and work order management within
the City's warehouse operations.
Motorola has represented the Cityworks product for over nine years. Our commitment to the
product has allowed us to establish a strong relationship with Azteca Systems, and that success
has been expanded into the current relationship we have in place with Miles Technologies. These
partnerships are unique in that they come together to ;provide the Mobile Inventory Management
offering exclusive to Cityworks.
Motorola is the only implementer of the Mobile Inventory Management system that integrates
with Cityworks Storeroom. Please feel free to contact Jeff Cegielski at 262 -25 3 -1416 or
'e� ff .ceg_ielski(a?motorolasolutions .corn if you have any questions or need any additional
information.
Regards,
}
of la Solutions, Inc.
John Thompson — MSSSI Vice President
Motorola Solutions Confidential Proprietary
`
Systems, Inc,__
....~~. S St '~../~^.~~.
Suite 24 FAX: (801)523-3734
Sandy, Utah 84U7O
May 9,Z012
Patricia Walker
Chief Financial Officer
City of Miami Beach
l7O0 Convention Center Drive
Miami Beach, F|33139
Dear Ms. Walker,
Z".�i ^ Azteca systems, Inc. prov an Enteqxrbe'G|S asset maintenance management system,
[itywodotn the City of Miami Beach. As with all software applications developed by,Azteca
' -
Systems, Inc., Azteca retains ownership of the copyright and trademark of such software and is in
the sole source provider and licensor of the software and maintenance services. '
The City of Miami Beach has been a licensed user of[byworkx since May 1, 2006. Your license
includes an add-on module named Cityworks Storeroom for inventory management.
This module is e desktop application and to enhance its use we have partnered with Motorola,
who is the only provider of4z eca approved software that enables users of[ityworko Storeroom,
to perform inventory tasks through wireless mobile devices using bar-coding technology.
Feel free 1m contact mp with any questions.
Regards,
'George
^ ^
\/
George M.K4astakas— VP, Enterprise Solutions
Az ecaSystems Inc.
11075 South State Street, #24
SandKUT84O70
main: 801.523.2751 '
fax: 801.523.3734
` |
�
MIAMIB
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO: Jorge M. Gonzalez, City Manager
VIA: Kathie G. Brooks, Budget and Perforalance Improvement Director
FROM: James J. Sutter, Internal Auditor` /`�
DATE: - November.20, 2009
AUDIT: Public Works.Department inventory Processing Audit
PERIOD:' October 1,.2008.- July 31,2009
This report is the result of a .specially requested audit by City Managementto reviewthe processes
used in the receipt, storage and distribution of inventory by the Public Works "Department's
warehouse. This audit did not include an inventory count as that will be atfiscal,year
end.
I
INTRODUCTION
The Public Works warehouse located at 451 :Dade Boulevard, supplies materials for Public Works
Water, Sewer, Streets, Streetlights:and Stormwater divisions. These materials are received for.and
issued to the various divisions (water, sewer, storm water, etc.) and are either charged to specifically
assigned,job orders and individuals or to the receiving department's designated budget code.
Job order numbers were created to track the cost .of labor, - materials, and equipment used in
(' projects performed by the Public Works Department; to allow the Department to-know the cost of the
projects; and to recover the cost of repair or replacement of City property damaged by or.caused by
an outside party. Meanwhile, small materials and equipment as tools, raincoats, etc. that are not job
i specific as they are used repeatedly at more than one location are charged to the individual crew
truck account to show disbursement at no charge to the -employee. Finally, like paper cups
and towels that are used by other City departments are..charged out directly to the receiving
departments indicated budget code.
Received parts are accepted by warehouse staff and compared - .to the packing. slip, purchase
requisition, etc. for completeness. In- addition, the charged prices are checked against those quoted
to confirm their agreement. Once approved, the inventory is accepted, entered into the Cityworks
system and ultimately paid '.through normal procurement channels.
I Conversely, parts are issued to authorized- upon`the:proper completion.of.Public Works
originated inventory issuance (MX -1) forms. Among other information, these pre- numbered
— sequential forms printed by Central Services require the preparer to enter date, .job .order
number, part number, quantity, part description, job location and issuer name. The cost assigned to
the item is based on the Cityworks calculated weighted average cost which 'factors in each
corresponding purchase made since 1984_
The MX =1 form's white copy is maintained internally by warehouse and filed.by associated
number to help ensure that all are .accounted for. The yellow copy is sent to the operations
supervisors (Water, Sewer, .etc.) typically at week , end and the final (pink) copy is . given - to the
employee receiving_ the inventory at - the - time the materials are charged out. The operations
supervisors are to .periodically match the _yellow and pink copies to ensure agreement and
investigate any - differences.
We are commilled to providing excellent public service and safely to all who live:, evork, and play in our vibrant, Irapical, historic community.
I
Internal Audit
Public Works Warehouse Inventory Processing Audit
November 20, 2009
A similar sequential pre- numbered three part MX -2 form is occasionally used to record the receipt of
goods whose exact quantity is initially unknown .(rock, sand, asphalt, propane, etc.). The actual
amount received is determined at delivery and is documented along with such other things as the
items received, their stock numbers, items descriptions, the quantities received and their cost.
Warehouse staff input directly from these MX -2 forms into Cityworks with a printout attached to
confirm that the information entered was correct. This supporting documentation is stored in folders
. by the month in which the items were received.
Warehouse personnel currently consists of a Warehouse Supervisor, a Storekeeper III, two
Storekeeper Ils, a Municipal Service Worker I and an Administrative Aide I. These personnel
- interact with the Procurement Division, Office of Budget and Performance Improvement, Finance
Department, and vendors in the purchase, receipt, and issuance of goods as well as their
corresponding payment. They all have the ability to disburse inventory from the Cityworks System
implemented in April 1, 2006 but only the Warehouse Supervisor and Storekeeper III have the ability
- to add inventory.
The Public Works Department had 115 purchase and change orders with 80 different vendors.to
provide services and materials totaling - $1,942,010.23 for the 2008/09 fiscal year. Examples of
approved vendors include Aaron Industrial Safety, Condo Electric Motor Repair, Mercedes Electric
Supply Inc., 'Sensus Metering Systems and Universal Signs & Accessories.
The ordering of needed inventory is done by the Warehouse Supervisor and /or Storekeeper III upon
notification by the .staff, review of Cityworks listed quantities or upon his /her site inspections. All
parts,are received at the warehouse so that someone is present to inspect it for completeness and
to attest to its receipt. Afterwards, the items are brought into inventory and stored until they are
charged out.
A majority of the 'Public Works inventory. is stored inside the warehouse located at 451 Dade
Boulevard. It is the largest and most secure facility as it is protected by cameras and locked
alarmed doors. Other inventory locations on the property also protected by cameras include the
following:
Yard 1, a secure area with.a covered roof, is located directly south of the warehouse
at the bottom of the loading dock This secure area is used to safeguard such larger,
'frequently issued items as selected clamps, valves, glands, "etc.
Yard.2 is.another secure fenced area located further south of.yard.1 by the water tanks and
bordering Miami Beach Senior High School. The items stored.in this area consist primarily
of light poles, hydrants, offsets, and.caps.
City vehicles, and assorted equipment and inventory are stored outside in the middle of the
_yard.
Finally, large slow moving inventory is presently stored at' -the gated facilities located at 75 Street
and:Dickens Avenue and 81 Street and Hawthorne Avenue. Examples of inventory stored in these
facilities are selected bends, sleeves, light poles and concrete bases.
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Page 2 of 8
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Internal Audit Report
Public Works Warehouse Inventory Processing Audit
November 20, 2009
OVERALL OPINION
The Public Works warehouse maintains and safeguards approximately $2 million in inventory at any
given time at several locations and is continually receiving and issuing needed items. As.a result, it
is imperative to keep accurate, complete documentation and to follow sound.internal controls to help
ensure that all inventoried goods are accounted for. Internal Audit's testing showed that-operations
and systems appear to be functioning as'intended but a number of opportunities for improvements
were discovered as shown by the following:
• Completed pre - numbered sequential MX-1 forms that record the issuance of inventory were
I. not all accounted for, were not completed in a manner so as to - prevent subsequent
I unauthorized changes and were not properly controlled to ensure that all issued parts were
delivered to and used at the job site.
A comparison of the manually prepared MX -2 forms to record the receipt of inventory with
the corresponding Cityworks entries found differences in 71% (5/7) of those sampled with no
known means to verify which is correct.
Cityworks has not been fully implemented and needs system revisions to better satisfy
Public Works warehouse's operational needs.
The Public Works Department has not updated its policies and procedures to better detail
I the newly instituted warehouse and Cityworks_practices.
The Finance Department prepares timely monthly manual journal entries to record the .
issuance of materials as the Cityworks and Eden Systems do not interface well thereby .
increasing the possibility of mistakes.
PURPOSE
The purpose of this audit is to determine whether transactions are economically and efficiently
processed, accurately and promptly recorded, reported and followed up; whether City assets and
key forms, records, files and systems are properly safeguarded and controlled, and access thereto
is restricted in accordance with management's criteria; and whether final disposition of:these
properties was in compliance with department policies and procedures.
I
.j
SCOPE
-I
1. Confirm that documented operating policies, standards .and procedures exist to ensure
efficient and effective administration of the warehouse and that there is compliance with
these policies, standards and procedures, as well as.all law.s.and regulations.
2. -Confirm that the CityWorks System is being fully utilized to'facilitate daily operations and to
accurately compile, value, and record the inventory.
i
3. Confirm that a proper segregation of duties and sound internal controls exist.
4. Confirm that all tested inventory transactions (addition and removal) were accurately valued,
approved and processed..
5. Confirm that well organized, complete and sufficient documentation is maintained to support .
! all tested transactions.
Page 3 of 8
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Internal Audit Report
Public Works Warehouse Inventory Processing Audit
November 20, 2009
FINDINGS,:RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. finding = MX -1 Forms Completion
All the sequentially pre- numbered MX -1 s that recorded the issuance of materials on the four .
randomly selected dates of 12/01/08, 03/12/09, 06/26/09 and 07108/09 by Public Works
warehouse staff were tested. These forms are manually prepared to record such pertinent
information as the date in which the materials were issued, the work or job order number,
I who issued the materials and who received them, the part number, the quantities issued and
descriptions of the items, the signatures of the employees issuing and receiving the items,
etc.
MX -1 forms have three copies with the white being maintained by the warehouse; the yellow
is given by the warehouse periodically.to the corresponding operational supervisor for review
and the pink is kept by the employee receiving the goods. These white copies are ultimately
stored inside a warehouse cabinet.attached to a printout confirming entry into the Cityworks
system.
The following deficiencies were noted during the and review of the corresponding
121 MX -1 forms sampled (includes forms labeled as "void') which could among other
things helped cause the noted discrepancies between past fiscal years' end physical counts
and the recorded Cityworks counts:
i
r
a. The manual :completion of the MX -1 forms in their. present format .and their
subsequent entry into Cityworks is a duplication-of work, entries can be later
unknowingly changed, entries on the yellow and pink carbon copies canoe difficult
to read, etc.
b. Two forms numbered 79704 and 84809 of the 121 tested or 1.65% could not be
located as of the conclusion of.this'audit.
I
C. .85% or 1 of the 119 MX -1 forms reviewed (numbered 79714) was missing the
issuing employee's signature, while all properly contained the signatures of the
individuals authorizing the issuance.
d. Such important information as the part numberand /or quantity issued were changed
by crossing out, writing over, whiting out, etc. the listed information in 14 of the 117
or 11.97% of the MX -1 forms reviewed. They did not contain any notations as to
who made the changes -and the reasons why.
e. The reviewed forms did - not always indicate the 'last item charged out to prevent
materials from being subsequently added that were not issued.
f. The quantities of the items`issued that were entered in Cityworks appeared to differ
from - those listed on the MX -1 forms for 2 of the 117 reviewed or 1.71 %. The
corresponding 'MX -1 forms numbered 85035 and 85038.were written over making it
difficult to determine exactly which figure is correct.,
Recommendation(s):
The implementation of the following recommendations concerning the completion and
storage of MX -1 forms should help resolve the listed shortcomings:
d.
a. The MX -1 forms should be - automated . to save workers' time, to help prevent
someone - from later changing entries, to help ensure that duplicate copies are
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Internal Audit Report
Public Works Warehouse Inventory Processing Audit
November. 20, 2009
easily read, etc.
b. . The missing forms or a copy thereof should be.located and added to Public Works
warehouse's existing files so that a complete set is maintained to help substantiate
L , the issuance of materials. In the future, greater care should-be.taken to help ensure
that all MX -1 forms are'accounted for.
j
C. All MX -1 forms should be fully completed at the time of- issuance so that when both
parties' sign they attest to the accuracy of the listed information and no changes
should be forthcoming.
d. If the MX -1 form is automated then any future changes would have to be entered into
the computer so that a new form would be created -requiring both parties to sign
again. In the interim, any changes should be clearly noted, initialed.by.both parties
and sufficiently explained to avoid any confusion when entered into the Cityworks
system or a new form should be prepared:
e. Under the current format, submitted forms�should always contain a line drawnfrom
the last items charged out to the bottom to help prevent others from subsequently
adding parts.
f. A designated warehouse employee independent of the entering process should
periodically compare the entries in Cityworks with the data on the MX -1 forms for
agreement. Any differences should be further investigated immediately.
Management Response:
+ A meeting was recently held between Public Works and the City's GIS 'Manager where it
was agreed upon that a bar code inventory system should be implemented in the-Cityworks
warehouse module by October 2010.
j 2. Finding — MX -2 Form Entry
Public Works warehouse staff occasionally orders via telephone such commonly.used items
as asphalt, rock, sand, propane, etc. as needed. The exact quantities to be received are not
f known until received. At this time, pre - numbered MX -2 forms are prepared listing among
other things the items received, their stock numbers, items descriptions, the quantities
received and their cost. The corresponding entries into Cityworks are then printed and
attached to the applicable, MX-2 form to confirm accurate input.
Internal Audit tested seven completed MX -2s and compared their listed information'to the
Cityworks entries and found the following differences:
MX -2 number 22555 dated 11/26/08 listed six more .ZREC -12 parts than were
entered. Additionally, Cityworks contained entries for sand and rock were not
present on the manually prepared MX -2 form.
MX -2 number 22556 dated 11/25/08 contained sand, rock and mega lugs that were
not entered into Cityworks.
MX -2 number 22580 dated 03/27/09 listed a $.30 less unit cost than entered into
Cityworks for propane.
• MX -2 number 22584 dated 04/10/09 recorded less asphalt than the amount - entered
into the Cityworks System.
• MX -2 number.22589 dated 04/29/09 listed different quantities of rock -and sand
received. Furthermore,` review of the Cityworks report showed other entries of
asphalt, concrete, rock and sand that did not appear on the MX -2 form.
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Internal Audit Report
Public Works Warehouse.Inventory Processing Audit
November 20, 2009
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Recommendation (s):
As shown above, a number of differences existed in the comparison of the manually
prepared MX -2 forms' data and the corresponding entries into the Cityworks system.
Internal Audit had no known way to confirm which entries were correct. Going forward, the
! -two should show agreement to facilitate independent reconciliation and they should be
periodically reviewed for accuracy with any differences investigated. Finally, the MX-2 forms
should also be automated to save workers' time, to help prevent someone from later
changing entries, to .help ensure that all duplicate copies are-easily read, etc.
' Management Response:
j The incorrectly entered items - specified above -were minor in nature and were caused by a
warehouse employee not paying attention to his work which at present time, is no longer
entering items in MX or onto Cityworks. Also, the automation of MX -2 forms will be
discussed with Azteca, Inc. and the City's GIS Manager to determine its feasibility.
3. Finding — Cityworks Inventory System
The current Public Works warehouse inventory computer . system called Cityworks was
implemented April 1, 2006. Although this system contains many improvements over the
previous PWK system, the following shortcomings were identified:
a. Inventory items continue to be valued using .a weighted average costing approach
that includes all purchases made of the item since 1984. Technology advancements
j and component materials' price changes have caused some parts' most recent
purchase prices to vary both negatively and positively from the recorded .weighted
average prices. As .a result, fiscal year end inventory valuations continue to be
impacted. Public Works Administration is currently researching the materiality of the
conversion to FIFO (First In First Out) - method of inventory valuation and plans to
implement this new method pending the approval of the Finance Department.
b. Maximum and minimum quantities have not yet been recorded in Cityworks to
facilitate ordering. in their absence, ordering continues to be done manually which
could lead to inadvertent stockouts or overstocks thereby negatively affecting
carrying costs and inventory turns.
C. Such important information as the quantity of items disbursed, the MX -1 number and
the truck number are combined in one field .under the "Comments" section in
Cityworks. Consequently, this data cannot be easily separated so that it can. be
sorted and the desired information found quicker. For example, someone currently
has to scan .each. entry to determine how many tools, rain coats, etc. have been
charged out to a truck crew to try to determine if any abuses occurred.
! d. 'Cityworks does not alert the.user as to a input error when entering inventory .
quantities that exceed the.amounts designated in the previously prepared requisition..
Conversely, the system does inform the enterer when the quantity is less and those
items are on back order.
Recommendation (s):
The implementation ofthe - following recommendations should help the City better realize
Cityworks capabilities:
a. Plans to convert from the weighted average inventory valuation method to first -in-
first- out'should be continued in an effort to more accurately reflect the actual value of
the inventory currently in stock.
b. Ordering should be automated to help, ensure that inventory levels stay within
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Internal Audit Report
Public Works Warehouse Inventory Processing Audit
November 20, 2009
desired parameters.
c & d. All known Cityworks desired changes should be prioritized and sent to the vendor for
their review and comments. This listing should include separating the data entered
in the "Comments" section to facilitate sorting and locating and installing warnings to
alert the enterer when the quantity entered exceeds the amount listed on the
requisition.
Management Response:
A meeting was recently held between Public Works and the City's GIS Manager to further.
discuss these recommendations where it was agreed that implementation should occur no
later than October 2010_ Azteca "Corp. will be contacted for discussion on Cityworks
weighted average changes to first -in -first out which may.be a major task /change. .
4. Finding - Policies and Procedures
Although descriptive and covering a wide array of topics, the Public Works Department's
policies and procedures were last revised (effective 10/01/02) and did not fully address
warehouse operations. Some of the previous procedures changed with the implementation
of the Cityworks System in April 2006. This process is known entirely by few and should be
better documented to avoid - further difficulties if personnel change.
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Recommendation (s):
The Public Works Department's operating policies and procedures should be updated.as
soon as. possible and should more descriptively outline current warehouse operations.
_ Policies and procedures serve both as a benchmark to measure individuals' performance
and as an instruction manual in .the event employees' change.
Management Response:
Departmental policies and procedures will�be reviewed and revised as needed. They are
expected to be completed by mid - January 2010.
j 5. finding Financial System Entries
Public Works warehouse staff runs the Cityworks created Warehouse issue Report
Summary at month end to capture the total value.of.inventory issued for each applicable
general ledger account. This report is then forwarded to the, Finance Department for review
and entry into the City's Eden System as the two systems do not interface to allow entries to
be automatically uploaded. Review of March 2009 through July 2009's journal entries and
supporting documentation found the following shortcomings:
1 Up-to five separate instances were found in a given month whereby general ledger .
account entries into Cityworks varied for the same account causing duplicate entries.
For example, general ledger account number 427 -0427- 000342 showed a $1,229:18
balance, while there was another entry - for the same account listed as
427.0427.000342 with a $1,685.50 balance. All duplicate accounts reviewed were
correctly combined and entered into Eden by the Finance Department but their
existence creates additional work for someone to identify and total these accounts.
• June 2009 Cityworks report incorrectly reported a total of $499.95 for general ledger
account number 011- 0840- 0000342, which contains one too many digits (an.extra
zero). The Finance Department identified the rnistake and made the correct journal
entry.
There was a $65.28 entry a non - existent general ledger account number of 425-
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_ Internal Audit Report
Public Works Warehouse Inventory Processing Audit
November 20, .2009
0342- 000342 in July 2009. The Finance Department correctly identified.the mistake
and properly- included the amount -in 425 - 0410- 000342 in journal entry numbered
010 -005.
Recommendation(s): -
Efforts should be undertaken to determine if Cityworks can be uploaded directlyInto Eden to
prevent the future need for these journal entries. if not possible, then Cityworks should be
contacted to determine if it can be revised so that all general ledger account entries are
standardized and /or City personnel should be instructed on the need for uniformity. Finally,
- someone designated in Public Works should review the=Cityworks entries for accuracy and
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correct any identified mistakes.
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Management Response:
The City's GIS Manager will discuss this.request with Azteca Corp., as well as Eden Corp.
A follow -up response will be provided by mid- January, 2010.
EXIT CONFERENCE -
An exit was held on November4,.2009 in- the'Public Works - Department. Participants
included Michael Alvarez (Assistant Public Works = Director), Elie Fakie (Water and Sewer
Superintendent), Martha Torres (Warehouse Supervisor), George Corchado (Storekeeper III),
James Sutter (internal Auditor) and Mark Coolidge.(Senior Auditor). All parties were in agreement
as to the contents of this report. Management responses Were solicited, and included in our report.
y JJS:MC:mc
Audit performed by Mark Coolidge (Senior Auditor) -
F: \obpi\$AUD \INTERNAL AUDIT 'FILES \D0008 -09 \REPORTS- FINAL \PUBLIC WORKS INV PROCESSING.doc
cc: Jorge Gomez, Assistant City'Manager
Fred - Beckmann, Public Works Director
Michael Alvarez, Assistant Public Works 'Director
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Patricia Walker, Chief Financial Officer
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