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Alarm Monitoring Systems cessation DUB~E ~YN-~ MEMORANDUM r. , , '-, July 6, 2005 \ i ~. ') TO: The Honorable Mayor and City Council Members \..L) J 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. /}ll{;,~ iL ichael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Sandi J. Hutchcroft, Emergency Communications Manager ~~ ~~~ 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