For City Council Meeting [August 10, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Mark P. Kling, Chief of Police
Title
Request City Council to Approve a Purchase Order in the Amount of $19,984.74 with PMAM Corporation for False Alarm and Permit Collection Services for Fiscal Year 2021.
Body
BACKGROUND
PMAM Corporation (PMAM) is the industry leader in false alarm management and has been the provider of false alarm management for the City of Rialto since 2015. The company’s approach is to increase alarm permits, increase compliance with city ordinances, maximize cost recovery and reduce officers responding to reoccurring false alarms. PMAM is a contracted company with direction from the police department for bill and collection services.
ANALYSIS/DISCUSSION
On June 24, 2014, City Council approved a Professional Service Agreement with PMAM Corporation for a period of 3 years piggybacking on the City of Placentia awarded contract which states that PMAM will collect 18% of monies collected.
The Rialto Department has contracted with PMAM for five (5) years. The current contract expired in June 2020 and the department is working on a proposal to bring to Council a revised permit and false alarm program. The staff is working with the City Attorney’s Office to determine an equitable fee schedule and a modification of this program.
Rialto Municipal Code Ordinance 5.66.070 requires every Rialto resident or commercial business with an alarm system to obtain an annual permit from the City of Rialto at a rate of $19.40 for residential and $25.90 for commercial properties. The purpose of the permit is to maintain a system that is used to ensure updated emergency contact information for alarm owners and provides the Rialto Police Department with current alarm company information for responses.
Rialto Municipal Code Section 7.01.040 allows a fine to be charged to property owners and tenants who have excessive false alarms. This system was established to encourage property owners and tenants to maintain their systems in good working order and to have procedures in place to reduce habitual false alarm incidents.
Residents and business owners pay for their permits and fines via the website, via mail or in person at the City Treasurer’s office. The criteria for violating the alarm ordinance mirror the City policy. PMAM is responsible for all billing, payment, and collections on false alarms and is paid a flat rate of 18% on monies collected.
REVENUE GENERATED BY FALSE ALARM PROGRAM
|
YEAR |
REVENUE |
PMAM’S EXPENSE |
ACTUAL REVENUE EARNED |
|
2021 |
$157,482 |
$33,011 |
$124,471 |
|
2020 |
$197,012 |
$35,056 |
$161,956 |
|
2019 |
$197,299 |
$41,357 |
$155,942 |
|
2018 |
$211,604 |
$42,961 |
$168,643 |
In FY2021 the department used PMAM for their billing and collection services for the City’s False Alarm Program. To date, the Police Department has paid PMAM $13,026.20 for their monthly services. Staff is requesting a purchase order in the amount of $19,984.74 to cover unpaid invoices for services rendered in fiscal year 2021.
ENVIRONMENTAL IMPACT
The proposed action does not meet the definition of a project as defined by Section 15378 California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and excludes the following:
1) Continuing administrative or maintenance activities, such as purchases for supplies, personnel-related actions, general policy and procedure making.
2) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
The City of Rialto has outlined key goals and objects relating to public safety. The purchase of this service is consistent with meeting these objectives.
Goal 5-8: Provide effective and comprehensive policing services that meet the safety needs of Rialto.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
Billing and collection expenses are budgeted in the FY2021 General Fund Account No. 010-500-6150-2021 in the amount of $19,984.74 for services performed by PMAM Corporation.
Per Rialto Municipal Code Section: 2.48.145 a vendor disclosure form is attached.
Capital Improvement Budget Impact
This report does not impact the Capital Improvement Budget.
Licensing
This action does not trigger a requirement for a business license.
RECOMMENDATION
Staff recommends that the City Council approve a purchase order in the amount of $19,984.74 with PMAM Corporation for false alarm and permit billing and collection services for Fiscal Year 2021.