Alarm Monitoring Systems cessation
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MEMORANDUM
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July 6, 2005
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TO:
The Honorable Mayor and City Council Members
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FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Alarm Monitoring Equipment
Emergency Communications Manager Sandi Hutchcroft is providing information on the
history of the City of Dubuque providing alarm monitoring business since 1973. Due to
the cost to replace the equipment, the low number of current subscribers, and the
availability of private alarm companies to provide these services, Emergency
Communications Manager Sandi Hutchcroft recommends City Council approval to
cease providing monitoring of burglar and fire alarms effective September 1, 2005.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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ichael C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Sandi J. Hutchcroft, Emergency Communications Manager
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MEMORANDUM
June 28, 2005
TO: City Manager Michael Van Milligen
FROM: Sandi J. Hutchcrofl. 911 Center Manager~J >
SUBJECT: Purchase of Alarm Monitoring Equipment
Introduction
As you requested at our April meeting, a letter was sent out to all of the businesses
currently being monitored on the alarm board located in the 911 Center. The letter
detailed the progress up to this point in replacing the equipment as well as asking for
input regarding the City of Dubuque getting out of the alarm monitoring business
altogether.
Subscribers were invited to attend a meeting to discuss the equipment upgrade in
greater detail; as well as the higher costs associated with the purchase of new
equipment. It was explained that vendors would be present at this meeting to assist
them in their decision making process. A survey was attached to the letter asking the
subscriber to complete the questionnaire and return it to me if they (the subscriber)
were unable to attend the meeting. A copy of the letter and the survey are enclosed.
Background
In the spring of 2003 RFP's were sent out to six vendors requesting proposals on the
replacement of the existing alarm board. The alarm board was purchased in 1973 when
the Law Center was built. The equipment was upgraded in 1989 at a cost of $18,000.
ADT Security Services was the only vendor who responded to the RFP. The purchase
and installation price were quoted at $49,879. Since the bid grossly exceeded the
budgeted money of $26,000, the project was delayed until another funding source could
be found.
An application for grant money from Homeland Security was applied for as funding
became available. Because the Center monitors Federal, County, and City buildings
the application met the grant requirements. A total of $23,585 was awarded to the 911
Center to be added to the existing $26,000.
Several conversations with ADT took place regarding the purchase and installation of
the equipment. ADT representatives attended the March meeting of the Public Safety
Committee to discuss their proposal. The current cost of equipment and installation is
$51,839. In addition there would be an annual maintenance fee of $7,665.00.
Currently there are 41 subscribers left on the alarm board. Subscribers are charged a
one time hook-up fee of $150.00 to the city derk. Subscribers pay a monthly phone bill
of $60.00 for a dedicated phone line that is terminated at the Law Center. This bill is
sent directly to the subscriber for the dedicated line from the telephone company. In
addition they are billed an annual fee of $50.00 from the 911 Center for monitoring their
alarm. Listed below is the declining number of subscribers over the last several years.
Year # of Subscribers
1985 135
1989 122
1995 114
1999 102
2000 81
2005 51
Initially when the alarm board was purchased; private alarm companies were non-
existent. Today there are several options for a business to be monitored and/or
alarmed. Alarm Companies are now capable of offering many enhancements to the
systems besides just the monitoring of burglar and fire alarms.
Some examples would be door cards that provide the monitoring of employees as they
arrive and leave the premises. There are security alarms to detect various sectors of a
large building as well as a variety of different levels of alarms that could be monitored by
an answering center. Many of those options would be available at a lower cost than
what the city would be charging for routine alarm monitoring.
Discussion
Owest Telephone Company had been contacted prior to the meeting to discuss the
dedicated telephone lines that exist between the businesses and the Law Center.
Owest stated they will continue to lease existing dedicatecllines. However; no new
dedicated lines will be installed and the lines currently in existence could become cost
prohibited. This effectively blocks any growth of subscribers on the alarm system.
All of this information was presented at the meeting on April 27th. The meeting was held
at the Five Flags Civic Center. Ten surveys were returned prior to the meeting date.
Of the five alarm vendors that were contacted; four were present at the meeting. Only
three of the fifty-one alarm subscribers that were connected at that time were present.
Each vendor gave a presentation on their particular monitoring features. All the vendors
were provided a list of the current subscribers. The vendor's intent was to contact each
subscriber personally.
A telephone contact was made to every business that was not in attendance to insure
that the letter had been received as well as answer any questions. I also advised the
subscriber that a listing of our alarm hook-ups had been given to out to alarm vendors
and that those vendors would be contacting them.
None of the subscribers expressed strong reservations about being connected to
another vendor. Once they compared the prices of other alarm monitoring services to
what they are currently paying, the decision to move became even easier for them to
make.
A tentative termination of service was discussed for September 1St, 2005. Everyone
involved felt this was amble enough time to investigate other options of alarm
monitoring. All subscribers would be notified by certified mail of the effective date.
Recommendation
With the Owest limitations not having the ability to add additional future users, the cost
to upgrade the system of $51,839.00, and the availability of local vendors to provide
equal or better service at a less costly rate, I recommend that the City of Dubuque
cease the monitoring of burglar and fire alarms effective September 1st. I feel that the
current subscribers will migrate to private alann monitoring companies.
Police Chief Kim Wadding and Fire Chief Dan Brown are both in agreement with this
recommendation.
Budget Impact
The revenue that is generated annually from monitoring the current number of alarms is
$2,450.00. That revenue would be lost. There is currently $26,000 in the Capital
Improvement Fund to replace the existing equipment. That money would no longer be
needed. The grant money will be used to buy additional Air Purifying Respirators
(APR's) for the Dubuque Police Department.
Action Step
I would ask that you concur with my recommendation. At that time notice will be sent out
to each of the subscribers informing them of the decision. Thank you for your
consideration on this subject.
April 15, 2005
(Subscriber Name)
REGARDING:
Direct Connection to Law Center Alarm Board
Burglar and Fire Alarms
The Alarm Monitoring board located within the 911 Center is in need of
replacement. Initially the equipment was purchased in 1973 when the Law Center
was built. The circuitry was upgraded in 1989 at a cost of $18,000. The cost of
replacing the new board will be paid from funds that have been allocated to the
project as well as funding that was received from grant money.
To absorb the additional cost of the maintenance fee; subscribers who are
currently being monitored by the 911 Center would see an increase in their
annual fee. At the current number of subscribers this would add an additional
$150.00 to the existing $50.00 a year monitoring fee. Adding in the monthly
dedicated phone line change, a subscriber would be paying approximately $920
a year monitoring fee.
Currently there are 51 subscribers on the alarm board. Subscribers are charged
a one time hook~up fee of $150.00 to the city clerk. Subscribers pay a monthly
phone bill of $60.00 for a dedicated phone line that is terminated at the Law
Center. This bill is sent directly to the subscriber for the dedicated line from the
telephone company. In addition they are billed an annual fee of $50.00 from the
911 Center for monitoring their alarm. Listed below is an example of the
declining numbers of subscribers over the last several years~
Year
1985
1989
1995
1999
2000
2005
# of Subscribers
135
122
114
102
81
51
Initially when the alarm board was purchased; private alarm companies were
non..existent. Today there are several options for a business to be monitored
and/or alarmed. Alarm Companies now are capable of offering many
enhancements to the systems besides just monitoring burglar and fire alarms
Due to the upgrade costs in comparison to local vendor's ability to provide the
same or enhanced service at the current price or less, consideration for the
elimination of the service is being considered.
Please plan on attending the meeting to be held at the Five Flags Center on
April 27th, 2005 @ 10:00 am. It is important to have your input before making
any decisions. If you are unable to attend, kindly fill out the attached
questionnaire and return to the 911 Center.
I can be reached at the number listed below for your RSVP and any questions
you might have.
Sandi J. Hutchcroft
911 Center Manager
(563) 589-7856
Please complete the following questionnaire regarding your alarm
service,
1) How long have you had your current alarm service?
1 - 5 years 0
5 -10 years 0 10 -15 years 0 more than 15 0
2) Are you aware of all the costs involved in the service you are currently
receiving?
Yes 0
No 0
3) How many times a year is your alarm activated to the
911 Center?
1-3 0
4-6 0
6-10 0
4) Would you be willing to move your alarm service to a private vendor if the costs
are comparable or less to what you are currently paying?
Yes 0
No 0
5) Based upon the estimated increased costs; are you still willing to continue the
service with the 911 Center?
Yes 0
No 0
If you are unable to attend the meeting on April 27th; please return the survey to my
office.
Thank you