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Home My WebLink About1991/06/18 Item 29 COUNCIL AGENDA STATEMENT Meeting Item4- Date 6/18/91 ITEM TITLE: a) Public Hearing to Consider Establishing Fees for Security Alarm Permits Increasing Fees for False Alarms and Establishing Late Fee ,/ llfffD~ b) Resolution Amending Master Fee Schedule c) ordinancJL~lnding Chapter 9.06 of the Municipal Code Relating to Regulation of security Alarm Permits SUBMITTED BY: Chief o~~ice REVIEWED BY: City Manage1 (4/sths Vote: YeS_No x ) Currently, the Police Department is responding to 550 security alarms every month. This is very time-consuming for patrol officers and for the office staff who must monitor these alarms and apply the provisions of the Alarm Ordinance 9.06 CVMC. Staff plans to alleviate this problem with changes in the Alarm Ordinance and contracting with an alarm tracking company to monitor the Alarm Ordinance. RECOMMENDATION: 1) Conduct a Public Hearing pursuant to Government Code section 66018 to hear testimony regarding the proposed fees 2) Adopt the Resolution Amending the Master Fee Schedule, effective the same date the Ordinance Amendment becomes effective 3) Place Ordinance on First Reading 4) That Council agree in concept to entering into an agreement with Enforcement Technology, Inc. and staff return with the formal agreement at a later Council meeting DISCUSSION: When the Security Alarm Ordinance was adopted in 1981 we were averaging 150 alarms each month. In 1991 the monthly average has climbed to 550 and this coupled with a false alarm rate of 99.5% dl9-1 Page 2, Item Meeting Date 6/18/91 results in a significant drain on the time of patrol officers. staff has determined that on the average, an officer spends 16.5 minutes on each alarm. Based on an hourly rate of $26.00, (salary plus fringe benefits), the annual cost is $47,190 (16.5 minutes X 550 calls per month X 12 months = 108,900 minutes ~ 60 = 1,815 hours X $26.00). This does not account for the fact that two officers are sent on many alarms; the time it takes to process the call in the Communications Center; and the staff time to monitor the alarm ordinance. The current ordinance is designed to discourage false alarms by creating a penalty/fine system after a given number of false alarms has occurred. Traditionally, the Alarm Ordinance has been monitored by the two employees assigned to the Crime Prevention unit. The rapid escalation in alarm responses has created a significant work load increase for the unit. currently, the unit is spending almost 50% of their time monitoring the Alarm Ordinance. Even with this significant allotment of time the billing process for false alarms is two to four months delayed. To reduce the staff time and the number of false alarms, staff is recommending the following changes: 1) Require an initial fee of $10 for an alarm permit and a two year renewal fee of $2. The current Ordinance does not require any fee for an alarm permit. staff reviewed the alarm ordinances in fourteen jurisdictions in San Diego County and twelve of them required a fee. The average fee is $18.00. This initial fee pays for the staff time involved in placing the new alarm permit in the system. Staff is also recommending a nominal fee of $2. to renew the alarm permit bi-annually. In the current ordinance the alarm permit does not have to be renewed. This renewal will provide the department with an opportunity to obtain updated information on the permit especially as it applies to the name, address and phone number of the person who can respond to emergencies such as alarm activations. If this change is approved, all the 2,750 current alarm permit holders would be required to pay the $2. renewal fee at this time and new permits would require a fee of $10. 2) The false alarm fining system would be increased and simplified. J f-J. Page 3, Item Meeting Date 6/18/91 The current ordinance reads as follows: B. 1. a and b. CVMC 9.06.130 "a. More than two in any thirty-day period, or more than three within any ninety-day period; or more than four within any one-hundred-eighty-day period; or more than six in anyone-year period shall result in a penalty assessment to twenty-five dollars; b. Each additional alarm after the twenty-five dollar penalty assessment for any given time period shall result in a penalty assessment of fifty dollars." This system has proven to be very confusing for the public and complicated for the staff to administer. The fines have not changed since 1981 and they need to be increased to send a stronger message to decrease false alarms. The new language, which would be included in the Master Fee Schedule would be as follows: "The first two (2) false alarms within a twelve (12) month period shall be considered accidental and no fee shall be charged. The alarm permit applicant shall be notified in writing after the occurrence of the second false alarm, notifying him/her that any further false alarms will result in penalty assessments. For false alarms exceeding the initial two (2) false alarms within a twelve (12) month period: Third (3rd) false alarm - Twenty-Five Dollars ($25.00) . Fourth (4th), Fifth (5th) and Sixth 6th) false alarms - Fifty Dollars ($50.00). All additional false alarms Dollars ($100.00) each." One Hundred 3) Whenever an alarm activation is called into the police communications center by the alarm monitoring company, they will provide the police dispatcher with the alarm permit number. This will allow the department &19 -3 Page 4, Item Meeting Date 6/18/91 to initiate activity to monitor that permit number and also insure that all monitored alarms have obtained permits from the city as required by the Ordinance. 4) All fees due to violations of the false alarm sections in the ordinance would be due and payable within 30 days of the billing date (CVMC 9.06.2130C); a late fee of fifteen (15%) of the false alarm Assessment shall be added to the unpaid balance of any assessments required by this section not paid within thirty days of the billing date (CVMC 9.06.1300); and the amount of any penalty assessment fee and late fee assessed pursuant to this section shall be deemed a debt to the City, and an action may be commenced by the issuing officer in the name of the city in any court of competent jurisdiction in the amount of the delinquent debt. Payment of any penalty assessment fees and late charges shall not prohibit criminal prosecution for the violation of any provisions of this Chapter (CVMC 9.06.130E). These three new sections will payments and further the goal of false alarms and compensating the staff services rendered. expedite reducing City for 5) That the City enter into an agreement with an alarm tracking company to monitor the security Alarm Ordinance. contracting with an Alarm Tracking Service would have the following advantages: a) Eliminate the significant staff hours now being performed by the Crime Prevention Unit in monitoring the Security Alarm Ordinance. b) Eliminate staff hours performed by Finance staff in billing for false alarm violation. P9- 1- Page 5, Item Meeting Date 6/18/91 c) Decrease false alarms by providing a more efficient monitoring of the system. d) Generate revenue to pay for staff costs in monitoring the program. staff has located three companies that provide alarm tracking services in San Diego and Orange Counties. They are Western Alarm Tracking (WAT) located in Fountain Valley, and Enforcement Technology, Inc. (ETEC) in Tustin, and Alarm Management Services (AMS) of San Diego. Staff has received offers from each company. WAT charges 40% of the money collected, AMS charges 33% of the money collected and ETEC charges a specified fee for each transaction they perform. Staff has analyzed these three proposals utilizing alarm experience during 1990 which included the following factors: Number of false alarm activations 6,530 Number of false alarm fines due 314 Number of false alarm payments received 208 Total fine payments received $25,650. EXAMPLES OF COSTS Currently, there are approximately 2,800 permits on file. Last calendar year, there were approximately 6,530 false alarm activations. There were 314 false alarm fines mailed to residents and businesses. only 208 fine payments were received. The following are examples of fees accrued from the past years transactions, using all three possible vendors. These examples do not include the proposed permit fee. J9-5 Page 6, Item Meeting Date 6/18/81 ETEC 6,530 false alarm activations @ $.35 each = $2,285.00 314 false alarm fines @ $.95 each = $298.30 208 payments processed @ $.20 = $41.60 Total dollar amount collected and deposited: $25,650.00 collected for city city Makes Service Payment Profit $25,650.00 - 3.600.00 $22,050.00 ($300 minimum monthly service charge - not to exceed $9,000 annually) WAT No fee for false alarm data recording, no fee for alarm fines, and no fee for payment processing 40% of amount collected for payment of services Percentage paid = $10,260.00 city Makes Service Payment Profit $25,650.00 -10.260.00 $15,390.00 AMS No fee for false alarm data recording, no fee for alarm fines, and no fee for payment processing 33% of amount collected for payment of services Percentage Paid = $8,464.50 city Makes Service Payment Profit $25,650.00 - 8.464.50 $17,185.50 c9cr-h Page 7, Item Meeting Date 6/18/91 If the Council approves the new fee schedule of $10 for new alarm permits, ETEC will charge $2.50 for including the new permit in the system and WAT will charge $4. and AMS will charge $3.30. staff concludes that it would be more profitable to enter into a service agreement with ETEC. FISCAL IMPACT: The $2.00 renewal fee applied to the current number of permits will yield $5,500 ($2.00 X 2,750). Staff estimates the number of new permits in a twelve month period would yield $300 ($7.50 X 400). The funds collected via false alarm fees includes several variables which do not allow for a specific fiscal estimate. ALARMl13 $-7 RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH THE SECURITY ALARM SYSTEM FEES The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the Ci ty of Chula Vista provides response to security alarm systems; and WHEREAS, rules service have previously these services; and and regulations, been established fees, for and charges the operation for of WHEREAS, it has been necessary to revise these rules, regulations, fees and charges from time to time; and WHEREAS, the false alarm assessment fee schedule was last revised by the City Council of Chula Vista on July 28, 1982; and WHEREAS, it is necessary to initiate a permit fee for the alarm user's application to recoup the costs of administering the ordinance; and WHEREAS, a system of graduated fees for successive false alarms in a twelve (12) month period would serve as an incentive for proper installation, maintenance, monitoring and use of such systems, thereby minimizing demands on law enforcement (and/or fire) services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the Master Fee Schedule by adding new sections thereto to read as follows: Sec. 9.06.050 Alarm User Permit - Fee A non-refundable fee shall accompany each application for an alarm user permit as follows: A. A fee of ten dollar s ($10.00) for both bus iness and residential applications. B. A two dollar ($2.00) renewal fee will be required every twenty-four (24) months. Sec. 9.06.130 False Alarm Fee Assessment When any notices are results in emergency alarms, messages, signals, or received by the Communications Center which a police response and in which the alarm -a=l~ &<f-~ proves to be a false alarm, the owner and/or occ~pier of the property shall pay a false alarm assessment to the city as follows: A. The first two (2) false alarms within a twelve (12) month period shall be considered accidental and no fee shall be charged. The alarm permi t appl ican t shall be notified in writing by the Crime Prevention Unit after the occurrence of the second false alarm, notifying him/her that any further false alarms will result in penalty assessments. B. For false alarms exceeding the initial two (2) false alarms within a twelve (12) month period: 1. Third (3rd) false alarm ($25.00). Twenty-Five Dollars 2. Fourth (4th), Fifth (5th) and Sixth (6th) false alarms - Fifty Dollars ($50.00). 3. All additional false alarms Dollars ($100.00) each. One Hundred BE IT FURTHER RESOLVED that the changes in these fees shall be effective on the same date Ordinance No. 2457 becomes effective June 20, 1991. Presented by Approved as to form by william J. winters, Chief of Police 8541a '\ n , C-}lJ 1.---'/ ';"'/ D. Richard Rudol ,~Assistant city Attorney _, ~ l;Fj-Cf