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HomeMy WebLinkAbout14-Police Department CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Keith L. Kilmer, Chief of Police Subject: Resolution of the Gty of San Bernardino Authorizing a Omtract with PMAM CDrporation of Irving, Texas, for Police False Alarm Billing Services Dept: Police Department Date: September 28, 2010 M/ CC DATE: October 4, 2010 Synopsis of Previous CDuncil Action: None. Recommended Motion: Adopt Resolution. ~~~ MARK A GAROA, istant Chief of Police J~~Director CDntact person: Public Safety Systems Mgr Michael Eckley Phone: 384-5947 Supporting data attached: Yes Staff Report/Resolution Ward: All FUNDING REQUIREMENTS: Amount: Source: $40,500 001-210-5505-0000-0049 Finance CDuncil Notes: Agenda Item No. f-/ /0-0'-/ - 2rJ/O kf/f/flP/uud PClje CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect Resolution of the City of San Bernardino authorizing a contract with PMAM Corporation of Irving Texas, for police false alarm billing Services. Backl!:round Early in 1998, the Information Technology Department's Public Safety Systems Group was called upon by the San Bernardino Police Department to create a temporary billing mechanism for false alarm responses and annual alarm permit invoicing. A simple program was created and placed into service using a desktop Microsoft software package. The product has grown to a point that it cannot support the number of alarm users and the number of annual invoicing transactions. The workflow process for billing involves several steps that must be coordinated between the Police Department and the IT Department to produce invoices. The alarm software has no accounts receivable reports and every transaction is paper based. The software was only intended to be used for a short period and does not allow for online e- Government services for our residents and business owners. The software is being replaced in order to provide better financial control, improve the effectiveness of our false alarm ordinance, and to improve our service to the public. Staff evaluated the feasibility and cost of purchasing new software and keeping alarm program management in-house. Specialized alarm management software would cost approximately $30,000 to purchase with maintenance costs ranging from $8,000 to $10,000 annually. This option requires the City to purchase software and an annual maintenance upfront; however, it does not address the need for a web-based interface for alarm permit holders. In-house software packages do not perform collection services. The Information Technology Department also researched the possibility of using the existing "Permits-Plus" permitting software to manage this project; while technically possible, this is not an effective option and would be costly. In late 2009, the Police Department began researching two large firms who provide outsourced "total management" packages that provide false alarm billing, alarm permit tracking, false alarm reduction training, and Internet based e-Government services for our customers. The Police Department contacted the vendors, viewed presentations, discussed revenue sharing models, and checked local and regional references. One of these vendor's, PMAM Corporation, of Irving, Texas, provides a product line and revenue sharing model that was superior. The following strategic goals and objectives are part of this modernization plan: 1. Provide a high quality Internet based interface for alarm permit holders 2. Reduce the number offalse alarm incidents through improved public education 3. Identify problem response locations and offer training/education to stop responses 4. Improve Accounts Receivable reporting and increase collection on overdue fees The proposed action will approve an agreement with PMAM Corporation to provide a full line of services associated with the Police Department's existing false alarm project. PMAM Corporation will provide the following services to all of our alarm permit holders: I. Interactive e-Government web-based Alarm Permit account for each alarm permit holder. Alarm holders will be able to view their account, make payments, renew annual permits, and make modifications to "key holder" and/or "responsible party information." Users will be able to access free educational material about the alarm program. All of these features are provided at no cost to alarm permit holders. Paper based services will be available to all permit holders who choose not to use the web-based options. 2. Per event billing services with options for alarm permit holders to receive paperless electronic invoices. Billing services allow permit holders to select options to receive warnings when they are near the point of suspension for too many false alarm responses. 3. When an alarm permit holder has been identified as a repeat offender, PMAM Corporation will provide training materials and advice to the permit holder to reduce the number of false alarm events coming from the permit holder's account. 4. Access to helpdesk staff to enable permit holders to discuss any issue surrounding false alarm responses, their accounts, and their alarm systems. PMAM Corporation will provide the Police Department with the following services: I. Monthly remittance of collected permit fees and false alarm fines along with web-based access to financial tracking/auditing reports. 2. Full access to all permit holder account data. 3. Interactive control over account suspensions and reinstatements. 4. PMAM Corporation will use their corporate contacts with some of the larger alarm monitoring agencies to identify customers in our city who do not have the required alarm permits. The Police Department determined that the quality of services provided by PMAM Corporation exceed the features offered by the other large scale alarm permit management vendor. Specifically, the quality of the citizen's web interface and the free training tools for the public were viewed as far superior. Based on these issues and the confirmation of positive performance from reference agencies, it is recommended pursuant to San Bernardino Municipal Code 3.04.0IO(b)(3), that the Mayor and Common Council approve a selected source justification for the establishment of a contract for false alarm billing services from PMAM Corporation, ofIrving Texas. Financial Impact There are no start-up costs for this contractual service from PMAM Corporation. PMAM will retain 22% of the permit revenue and false alarm fines that they collect. A conservative estimate, based on improved collection practices, suggests that the City will receive approximately a 30% increase in gross revenue. A banking account exclusively for funds collected from San Bernardino will be established and through the recommended agreement, a monthly detailed summary of revenues will be provided. PMAM will retain 22% of collected revenues and send the City a remittance for the balance on a monthly basis. The City will also be provide with a monthly reconciliation statement so that collected revenues can be balanced with alarm account activity. The Police Department will track revenues with a series of financial reports that are included in the alarm program software. This reimbursement process is similar in style and procedures to the process used by the San Bernardino Fire Department for invoicing for paramedic services. Consistence with the process workflow which has been reviewed and approved the City Finance Department, the Police Department's staff will work with the City Finance Director, the City Treasurer and the vendor to produce monthly revenue accountability documents based on City audit procedures. The FY 10-1 I Police budget includes $81,400 for alarm contract costs and $269,400 for gross alarm revenues. The expenditure is included in the Support Services program budget (account: 001-210-5505-0000-0049). Net revenues are projected to total $269,000 which represents no increase over budgeted FY 09- I 0 alarm revenues. Staff anticipates that services from PMAM Corporation will begin on or about February 1,201 I. As a result, the FY 20 I 0- II Police budget alarm permit and fine revenues are expected to increase by about $7,500. Alarm contract costs are not expected to exceed $41,000 for the remainder ofFY 2010-1 I. The City will save an additional $7,000 in printing and postage costs because the outsource vendor provides all stationery, envelopes and postage. Based on the experience of other entities, the Police Department estimates that false alarm incidents may fall by about 10% annually due to public education and collection services offered by this vendor. The reduction in calls for service achieves additional man-hour savings, which generates more time for officers to respond to other critical calls for service. Funds for the annual purchase order of $41,000 are appropriated in the FY 2010-11 General Fund Police Department Support Services Program budget for professional services (001-210- 5505-0000-0049). Account: 001-210-5505-0000-0049 Budget Total $214,800 Balance as of September 9, 2010: $180,624 Balance after approval of this item: $139,624 Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred but not yet processed. Recommendation Adopt Resolution.