City Council
MEETING DATE: 1/27/2016
TITLE:
Title
Contract Renewal with CitySupport for False Alarm Program Administration
End
FROM:
George Crum, Police Chief
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the continuance of the Alarm Permit Application and Fee/Fine Schedule, as part of the modified Security Alarm Systems Ordinance and approve a new contract for professional services with CitySupport and enter into a contract with CitySupport, LLC, dba CathedralCityAlarm.com and AlarmSchoolOnline.com (CCA) to perform the billing and reconciliation of alarm permits, permit renewals, false alarm billings, and incorporating the “Online Alarm Diversion Program.
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BACKGROUND:
During the period from 2005-2009, Cathedral City Police Department received 20,478 burglary alarm calls. Of those calls, fifty-six alarms resulted in some type of report with 47 actual burglaries occurring. Approximately 99.98% of all the alarm calls received during this period were false alarms. All of these alarms were responded to by the Police Department at taxpayer’s expense, costing an estimated $30,000 per year in wages/salaries and a loss of over 300 staff hours per year.
Police Departments across the country are being asked to reduce already stretched budgets. For many departments, the reduction in budgets results in being unable to replace lost employees, purchase new equipment, and keep up with technological advances. The Cathedral City Police Department is no different, and is looking for ways to continue providing high levels of service to the community with consideration for the City’s budget. Law enforcement has long recognized the burden placed on a police department’s resources associated with responding to false burglary alarm calls.
In 2007, it was estimated that there were approximately 36 million false alarms in the United States, costing law enforcement agencies about $1.8 billion. Nationally, alarm and security monitoring is a $100 billion for-profit industry, which relies upon local law enforcement to respond to alarms at taxpayer’s expense.
On August 1, 2010, after careful research and consideration of national and local law enforcement alarm response policies, including current economic conditions throughout California and our lack of personnel to adequately respond to false alarms, the Cathedral City Police Department implemented a new Verified Alarm Response Policy (VAR). With the new VAR Policy, the Police Department continued to respond with the highest priority to manually activated panic, duress, robbery, medical, and fire alarms triggered by citizens, while requiring a visual non-police on-site verification of suspicious or criminal activity for all other mechanically activated burglar alarms before officers would respond.
Mechanically activated alarms are entry/motion alarms that rely on sensors to activate the alarm, and these types of alarms make up the majority of residential and business alarms that the Police Department encounters. On-site verification does not mean proving that a crime has been committed, only that there are suspicious visual signs, activities, persons, or vehicles associated with the residence or business with an active alarm.
The former VAR Policy was a positive way for Cathedral City Police to “do more with less” while coping with the current economic crisis and providing better service and response to emergency calls to the community, allowing current patrol staffing levels to focus on crime related issues. However, this policy raised some concerns from the community and alarm industry about exactly what types of alarm calls the Police Department would or would not respond to, and how this affects the underlying safety of our community. In order to address these concerns, the Police Department re-examined our ability to respond to all burglary alarms, and identified a solution that requires a cost recovery component, providing the necessary sworn personnel to adequately respond to alarms.
That solution was adopted in 2011-2012 and a contract with Pyranet (now known as CitySupport, and dba CathedralCityAlarm.com) was executed.
DISCUSSION:
The current Cathedral City Municipal Code Security Alarm Systems Ordinance, Chapter 8.28, provides definitions, alarm regulations and false alarm fees imposed for excessive false alarms. Additionally, since January 2012 the City of Cathedral City has had an alarm permit fee ordinance.
Efforts have been made to bring awareness to, and deter habitual false burglary alarms from occurring by imposing fines which are established in the Cathedral City Municipal Code. The current false alarm fine schedule is graduated to address habitual false alarm offenders and recover costs associated with responding to false alarms.
The current Security Alarm Systems Ordinance requires all residential and business locations within the City with alarm systems to have a valid alarm permit. The permit fee guarantees a police response. The ordinance would also allow the City to impose fines for police and fire response to false alarms. The intention of the alarm ordinance is to reduce false alarms through educating the public on how to avoid these violations and by imposing a fine for any false alarms beyond the first violation. Under the modified ordinance, the first incidence of a false alarm does not result in a penalty. The second incidence requires a $100 fine; the third incidence is $150 and then $200 for each false alarm thereafter (in any 12 month period).
In researching false alarm programs and policies, staff learned that Palm Springs Police Department had been successfully utilizing a private vendor to administer and manage their false alarm and alarm diversion programs. The vendor (CitySupport) handles all aspects of alarm permitting from issuing and renewing permits to billing for false alarms, and administers the educational component in the form of an Online Alarm Diversion Program. CitySupport has demonstrated successful implementation and management of the program in Palm Springs since 2006, and since January 2012 with the City of Cathedral City.
CitySupport is the only vendor in the marketplace who is currently providing the type of service required to administer and manage the False Alarm Program. Prior to the 2012 contract, CitySupport invested their own time and resources into creating the API with our Records Management System. In 2011, City Support provided Staff with a service contract proposal that meets the needs of the Department. Under this proposal, CitySupport would issue and renew all residential and business alarm permits in the City, and provide billing for false alarms as established by City Ordinance. The Police Department will forward all false alarm information to CitySupport on a daily basis, as a direct download from our Records Management System. The vendor generated and mailed violations for false alarms within an established timeframe.
CitySupport receives $11.00 for every permit fee it collects and remits the remaining alarm permit fee balance back to the City
CitySupport retains $15.00 of each false alarm fine
If a citizen elects to take the Online Diversion Program, the City receives $9.00 of the $20.00 fee
The following will need to be continued in totality for the proposed False Alarm Program to be successful, effective and efficient. In January 2012 the following changes were adopted by council.
Modified the then existing Security Alarm Systems Ordinance
Established an Alarm Permit Fee
Imposed a New False Alarm Fine Schedule
Contracted with CitySupport to Administer Program
The alarm permit fee was established by evaluating the costs associated with administering the alarm permit program, and is intended to fully recover all the City’s costs in connection to the program.
FISCAL IMPACT:
The fiscal impact to the city after the first year of the program (FY 2012) showed gross receipts totaling $92,160 from alarm fees and permits. Net receipts to the city totaled $64,771.
In 2009, the total loss in personnel salary based on time spent receiving calls from alarm monitoring companies and responding to false burglary alarm calls was $32,262.00. This number represents both police officers and dispatchers. During the first six months of 2010, the loss was consistent with the previous year, so the Police Department moved to a short lived VAR Policy. Even with the VAR Policy, we continued to receive false alarms. False alarm response still costs the Police Department in lost time; with dispatchers who field those calls, and the officers who still respond to those false alarms. It was clear the current false burglary alarm problem would continue.
The implementation of the current Security Alarm Systems Ordinance and contract with CitySupport has allowed the city to recoup lost revenue as a result of false burglar alarms. From ordinance inception in January 2012 total gross revenue generated as a result of the alarms fees has been $345,596. Net revenue received has been $241,731.
As a disincentive for unnecessary police response, the ordinance has shown some success in reducing the total number false alarms. After the first year of the program (FY 2012) gross revenue from alarm permits and fees were reported as $92,160. For FY 2015, gross revenue was $81,170. This represents a 11.9% reduction in overall fee collection.
ATTACHMENTS:
Professional Services Agreement for Administration of False Alarms Program by CitySupport, Inc.
Support Exhibit B - Schedule of Compensation.