HomeMy WebLinkAboutItem 11a - Extension to the Ring Subsidy Program
DATE: October 16, 2018
TO: Honorable Mayor and City Council
FROM: Robert Guthrie, Chief of Police
By: Dr. Jennifer Brutus, Sr. Management Analyst
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH RING, LLC FOR THE
EXTENSION OF THE SUBSIDY PROGRAM FOR PRIVATE SECURITY
CAMERA SERVICES IN AN AMOUNT NOT TO EXCEED $25,000
Recommendation: Approve Supplemental Budget Appropriation of
$25,000 and Approve Subsidy Extension
SUMMARY
In November 2017, the City of Arcadia established a pilot program wit h Ring LLC
(“Ring”) to offer residents discounted security cameras. The City Council approved
$25,000 for 500 subsidies for which the City contributed $50 and Ring contributed $50
for a total discount of $100 off per household. In August 2018, the subsidie s were
exhausted and numerous Arcadia residents and business owners who did not have an
opportunity to participate expressed interest in the program. It is recommended that the
City Council allocate an additional $25,000 to extend the subsidy to an additional 500
participants, and approve, and authorize and direct the City Manager to execute a
Professional Services Agreement with Ring, LLC for the extension of the Subsidy
Program for private security camera services in an amount not to exceed $25,000.
BACKGROUND
From 2015 to 2016, there was a 22% increase in violent and property crimes in Arcadia.
The most significant increase by category was burglary and attempted burglary, which
increased by 66% when considering residential and commercial incidents combined. In
the past year, the City of Arcadia has experienced an overall decrease in crime. To
date, robbery decreased by 26% and residential burglary decreased by 27% in
comparison to last year’s levels. The Police Department is utilizing all of its community
resources to combat crime and, ultimately, arrest and adjudicate criminal offenders.
The Police Department’s partnership with Ring is one resource that has increased
resident safety, deterred suspects, and assisted with criminal investigations. In 2017,
the City established a pilot-program with Ring to offer Arcadia residents discounts on
Extension to the Ring Security Products Subsidy Program
October 16, 2018
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Ring’s private security camera products. Under the Agreement, Ring matched the City’s
$50 contribution for a total discount of $100 off per household.
Pilot-Program Outcome
In order to promote the program and allow an opportunity for residents to obtain the
subsidy in person, the Police Department held a Ring Security Products Subsidy Event
at the Arcadia Masonic Lodge on Wednesday, December 6, 2017. Over 500 residents
attended the event where they learned a bout Ring security products and had direct
contact with Ring representatives to ask questions and identify which security camera(s)
best fit the needs of their property. As a result, 277 Arcadia residents took advantage of
the subsidy and many residents purchased more than one security device resulting in
total sales of 336 devices.
After the event, the Police Department began distributing the remaining Ring
promotional discounts to residents via email and in-person. In addition to the $100 off
discount, Ring offered residents a $30 discount on additional security devices with a
maximum of two per household; as well as 20% off Ring accessories. By August 2018,
the last of 500 subsidies was exhausted and, in total, Arcadia residents purchased 741
security cameras, ranging from Video doorbell cameras to spotlight cameras to
floodlight cameras.
The City’s subsidy program offered residents the largest discount on Ring products.
Due to the City’s limited availability of subsidies, many residents opted to purchase a
camera at higher prices through Ring.com and other retailers such as Costco, Home
Shopping Network, and Amazon. In addition, many Arcadia residents purchased
cameras on July 12th - Amazon Prime Day. Overall, since the program’s inception, from
November 2017 through August 2018, 1,800 Ring security cameras have been installed
within the city limits of Arcadia. Due to Ring’s privacy policy, the company is unable to
share how many of the 741 cameras sold through the City’ program have actually been
installed. The assumption is that residents are taking steps to install their cameras in a
timely manner in order to enhance their safety and protect their property.
In addition, there have been incidents where res idents’ cameras aided criminal
investigations. In one incident, a resident’s Ring Video Doorbell camera captured
footage of four residential burglary suspects who were attempting to gain entry into his
residence. The Arcadia Police Department arrested three suspects at the time of the
incident; however, the fourth suspect was not detained. Afterwards, the resident
provided detectives with the Ring video clips and the Department was able to identify
the fourth suspect by the clothing worn by the suspect and the suspect was ultimately
arrested.
In another case, the Department arrested someone for residential burglary and put out
an informational bulletin after his arrest. After a resident reviewed the bulletin, he then
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October 16, 2018
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reviewed his surveillance footage and noted that the same individual in the bulletin
knocked on his front door approximately 30 minutes before the time of his committed
burglary. Although the Ring video footage did not lead to the suspect’s arrest (yet), it
has helped investigators on the back end of the investigation by showing how suspects
case neighborhoods and attempt to see who is and is not home.
Moreover, several Arcadia residents have expressed to the Department their
satisfaction with the program and gratitude toward the City for making subsidies
available. Residents are glad that the City Council is putting public safety at the forefront
of City priorities and would like to see the program extended.
Due to the success of the program, it is recommended that the City Council allocate an
additional $25,000 to extend the program to an additional 500 participants.
By allocating an additional $25,000, the City will be able to offer discounted security
devices to 500 more households and also business owners. The pilot program was
originally geared toward resident households; however, several business owners have
expressed interest in the program. In support of the business community, the
Department will promote the subsidy through our Business Watch Program.
DISCUSSION
The City would sign a new Professional Services Agreement with Ring for the extension
of the subsidy program. The Program will continue to operate out of the Arcadia Police
Department and will encourage residents and business owners to take a proactive
approach toward preventing crime in their communities.
Under the Program, the savings available for residents and business owners are as
follows:
Model Retail Price
City's
Incentive
Ring's Product
Discount
Arcadia Resident’s
Price
Video Doorbell 2 $199 $50 $50 $99
Video Doorbell Pro $249 $50 $50 $149
Spotlight Cam Battery $199 $50 $50 $99
Spotlight Cam Wired $199 $50 $50 $99
Floodlight Cam $249 $50 $50 $149
The company also agrees to continue providing participants with additional discounts
including $30 off on up to two (2) additional devices per household. In addition, Ring
agrees to provide Residents an additional discount of 20% off Ring Accessories. This
does not apply to the Ring Video Recording Services or non-Ring accessories.
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October 16, 2018
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The Department plans to hold another community event with Ring in December 2018
where residents and business owners will be given the opportunity to purchase a device
in-person. A total of 500 subsidies will be available on a first-come-first-serve basis.
However, if subsidies are remaining after the event, Ring will provide the City with
promotional codes as it did in the past and all sales will be completed on the company’s
website www.ring.com. In order to ensure the code is p rovided to qualified residents
and business owners, participants will be required to sign a General Release
Agreement, which covers use of the promotional code, a general release, release of
unknown claims (waiver of Civil Code 1542), and disclaimer of representation and
warranties.
In regards to payment, Ring will continue to invoice the City on a monthly basis for the
City’s portion ($50) for each resident household that redeems the promotional code.
When the invoiced amount reaches the agreed upon total for the program, w hich in this
case is $25,000, the promotional code would no longer provide the discount until
additional funds are made available from the City. Staff and Ring will also continue
working together to monitor the program’s progress and respond to residents’ questions
about the program and/or Ring products.
Overall, extending the program with Ring for discounted private security cameras for
use by Arcadia residents and business owners will further enhance safety in Arcadia
neighborhoods and around businesses. Ring’s company mission, vision, and goals also
align with the Arcadia Police Department’s – to help stop crime before it happens.
Therefore, it is recommended that the City Council allocate an additional $25,000 for
private security cameras with Ring in order to extend the discount to another 500
households or businesses.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will hav e no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
It is recommended that the City Council make a supplemental budget appropriation in
the amount of $25,000 from the General Fund Reserve to the Police Department’s
Community Affairs FY 2018-19 Operating Budget for the City’s contribution of $50 per
Ring device. The City’s financial obligation will be a maximum of $25,000, which is
variable depending on actual community interest.
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October 16, 2018
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RECOMMENDATION
It is recommended that the City Council approve a supplemental budget appropriation in
the amount of $25,000 to provide discounts for private security cameras services; and
approve, and authorize and direct the City Manager to execute a Professional Services
Agreement with Ring, LLC for the extension of the Subsidy Program for private security
camera services in an amount not to exceed $25,000.
Attachment: Proposed Professional Services Agreement
Page 1 of 7
PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN
THE CITY OF ARCADIA AND RING LLC
This Agreement is made and entered into this ____ day of ____________, 2018
by and between the City of Arcadia , a charter city organized under the Constitution and
laws of the State of California with its principal place of business at 240 West
Huntington Drive, Arcadia, California 91066-6021 (“City”) and Ring LLC, a Delaware
limited liability company, with its principal place of business at 1523 26th Street, Santa
Monica, California 90404 (“Consultant”) (herein “Agreement”). City and Consultant are
sometimes hereinafter individually referred to as “Party” and hereinafter collectively
referred to as the “Parties”.
RECITALS
WHEREAS, Consultant produces security cameras and video doorbells for
residential use which link smartphone users to their doorbell when the camera is
activated by motion or someone ringing the doorbell.
WHEREAS, with this technology, the homeowner has the capability to see, hear
and speak to visitors through their smartphones, tablets or desktops.
WHEREAS, the City desires to collaborate with Consultant to establish a grant
program whereby City residents can purchase Consultant’s security cameras and video
doorbells for use at residences within the City at a discounted price to enhance security
and safety in the community.
WHEREAS, the grant program will be operated on a first-come-first-served basis.
WHEREAS, the City Council finds that the dedication of public funds under this
Agreement will serve the safety of City residents, an issue of important public purpose.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and
covenants made by the Parties and contained herein and other consideration, the
value and adequacy of which are hereby acknowledged, the Parties agree as
follows:
1. Recitals are Part of Agreement. The preceding Recitals are part of this
Agreement.
2. Consultant Services. Consultant will perform the following Services:
a. Consultant will collaborate with the City on the distribution and
marketing of the Ring Video Doorbell 2, Ring Video Doorbell Pro,
Ring Spotlight Cam Wired, Ring Spotlight Cam Battery, and Ring
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Floodlight Cam and any other accessories (each, a “Product” and
collectively, the “Products”) to residents of Arcadia (“Residents”).
b. During the Promotional Period, as defined in Section 4 below,
Consultant will directly provide 500 unique promotional codes
(Promotional Codes) to Residents with a $100.00 discount of the
sales price for one (1) of the following products at checkout:
i. Ring Video Doorbell 2;
ii. Ring Video Doorbell Pro;
iii. Ring Spotlight Cam Wired;
iv. Ring Spotlight Cam Battery; or
v. Ring Floodlight Cam.
Each Resident is entitled to only one Promotional Code. Each
Promotional Code may only be used once per household. Only
codes sent to the resident through Consultant communications
channels will be valid. In order to apply the Promotional Code, the
zip code of the shipping address for the Product must be 91006,
92007, 32077, 91732 or 91780.
Residents who are interested in obtaining the Promotional Code
must contact the City’s Program Administrator in order to receive
the code.
Ring reserves the right to cancel or change the Promotional Code
or limit the number of order per household in the event it suspects
that the Promotional Code is being abused (including bulk
purchases).
The Consultant shall notify City in writing when 300 (60%) of the
Codes have been redeemed.
c. During the Promotional Period, as defined in Section 4 below,
Consultant will directly provide Residents with a discount code
valued at $30.00 dollars per product to apply towards the purchase
of any of the products listed in section 2.b above with a limit of two
products per checkout.
d. During the Promotional Period, as defined in Section 5 below,
Consultant will directly provide Residents with an accessories
discount valued at a twenty percent (20%) discount towards any 3
accessory listed on the company’s website. This does not apply to
the Ring Video Recording Services or non-Ring accessories.
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e. Consultant will fulfill orders for Products when Residents provide
information and payment required using the information required for
Consultant to complete delivery of the Product (including name,
address, email address, etc.). Standard delivery shall be in
accordance with Ring.com (as of the date hereof, orders over
twenty dollars ($20.00) ship free of charge). Consultant will use
commercially reasonable efforts to ship the Products within three
(3) business days from date the order was placed.
f. Consultant will provide product and user support to Residents who
purchase Products, including warranty for the security device(s)
and, if the resident chooses to, the option to hire someone to install
the device(s). These options will be provided at checkout at the
user’s expense.
g. Consultant will provide marketing support and materials for City to
distribute to Residents, such as brochures and flyers.
h. Consultant shall contribute fifty dollars ($50.00) of the one-hundred
dollar ($100.00) discount specified in section 2.b above.
i. Within thirty days after the end of the Promotional Period, as set
forth in Section 4 below, Consultant will provide the City with an
accounting statement (the “Accounting Statement”) setting forth the
number of Products purchased using the Promotional Code during
the Promotional Period, as set forth in Section 4 below, and such
other information reasonably requested by City to enable the
Parties to determine the City’s required City contribution amount, as
specified in Section 3.a below.
3. City Obligations. The City agrees to do the following in furtherance of this
Agreement:
a. Within 30 days of its receipt of the Accounting Statement from
Consultant, City shall pay Consultant an amount equal to fifty
dollars ($50.00) of the one-hundred ($100.00) discount specified in
section 2.b above for the first Product sold to each Resident
household during the Promotional Period using a Promotional
Code. No other Product is eligible for a City contribution. The
maximum contribution payable by the City to Consultant shall not
exceed twenty-five thousand dollars and no cents ($25,000.000)
under this Agreement.
b. City may, at its own cost and expense, audit Consultant’s
applicable sales data to confirm the amount of the sales made
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under section 2.b above within one year of the end of the
Promotional Period.
c. During the Promotional Period, as defined in Section 4 below, t he
City agrees to make reasonable efforts to promote the program
provided in this Agreement on the City’s website, social media
platforms, such as Facebook and Twitter; issue press release(s),
and/or have brochures and flyers available at City Hall for the
public.
4. Promotional Period. The Promotional Period shall commence on a date
mutually agreed by the Parties. The Promotional Period shall expire upon
the earlier of the following:
a. 120 days after the commencement of the Promotional Period; or
b. The maximum contribution payable by the City of $25,000.00 has
been reached, as set forth in Section 3.a above.
Notwithstanding the foregoing, the City shall have the option to extend the
Promotional Period if the maximum contribution payable by the City of
$25,000.00 has not been reached within 120days after the
commencement of the Promotional Period.
5. Termination. Each of the City and the Consultant reserves the right to
terminate this Agreement at any time, with or without cause, upon thirty
(30) days’ written notice to the other party, except that where termination
is due to the fault of the non-terminating party, the period of notice may be
such shorter time as may be determined by the terminating party.
6. Indemnification.
The Consultant shall indemnify, defend and hold harmless the City, its
officers, officials, employees and volunteers from and against any and all
third party claims, losses, liabilities, damages, costs or expenses, arising
out of Consultant’s negligence or willful misconduct in connection with
performance of this Agreement.
The City shall indemnify, defend and hold harmle ss the Consultant, its
officers and employees from and against any and all third party claims,
losses, liabilities, damages, costs or expenses, arising out of City’s
negligence or willful misconduct in connection with performance of this
Agreement.
7. Independent Consultant. Neither the City nor any of its employees shall
have any control over the manner, mode or means by which Consultant,
its agents or employees, perform the services required herein, except as
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otherwise set forth herein. City shall have no voice in the selection,
discharge, supervision or control of Consultant’s employees, servants,
representatives or agents, or in fixing their number, compensation or
hours of service. Consultant shall perform all services required herein as
an independent contractor of City and shall remain at all times as to City a
wholly independent contractor with only such obligations as are consistent
with that role. Consultant shall not at any time or in any manner represent
that it or any of its agents or employees are agents or employees of City.
City shall not in any way or for any purpose become or be deemed to be a
partner of Consultant in its business or otherwise or a joint venturer or a
member of any joint enterprise with Consultant.
8. Governing Law . This Agreement shall be interpreted, construed and
governed both as to validity and to performance of the parties in
accordance with the laws of the State of California. Legal actions
concerning any dispute, claim or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Los
Angeles, State of California, or any other appropriate court in such county,
and Consultant covenants and agrees to submit to the personal
jurisdiction of such court in the event of such action. In the event of
litigation in a U.S. District Court, venue shall lie exclusively in the Central
District of California, in the County of Los Angeles, State of California.
9. Notices. Any notice, demand, request, document, consent, approval, or
communication either party desires or is required to give to the other party
or any other person shall be in writing and sent by email, in the case of the
City, to bguthrie@arcadiaCA.gov and in the case of the Consultant, to
August Cziment at a@ring.com and legal@ring.com. Either party may
change its email address by notifying the other party of such change.
10. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, and such counterparts shall
constitute one and the same instrument.
11. Integration; Amendment. This Agreement including the attachments
hereto is the entire, complete and exclusive expression of the
understanding of the parties. It is understood that there are no oral
agreements between the parties hereto affecting this Agreement and this
Agreement supersedes and cancels any and all previous negotiations,
arrangements, agreements and understandings, if any, between the
parties, and none shall be used to interpret this Agreement. No
amendment to or modification of this Agreement shall be valid unless
made in writing and approved by the Consultant and by the City Council.
The parties agree that this requirement for written modifications cannot be
waived and that any attempted waiver shall be void.
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12. Severability. In the event that any one or more of the phrases, sentences,
clauses, paragraphs, or sections contained in this Agreement shall be
declared invalid or unenforceable by a valid judgment or decree of a court
of competent jurisdiction, such invalidity or unenforceability shall not affect
any of the remaining phrases, sentences, clauses, paragraphs, or sections
of this Agreement which are hereby declared as severable and shall be
interpreted to carry out the intent of the parties hereunder unless the
invalid provision is so material that its invalidity deprives either party of the
basic benefit of their bargain or renders this Agreement meaningless.
13. Corporate Authority. The persons executing this Agreement on behalf of
the parties hereto warrant that (i) such party is duly organized and
existing, (ii) they are duly authorized to execute and deliver this
Agreement on behalf of said party, (iii) by so executing th is Agreement,
such party is formally bound to the provisions of this Agreement, and (iv)
that entering into this Agreement does not violate any provision of any
other Agreement to which said party is bound. This Agreement shall be
binding upon the heirs, executors, administrators, successors and assigns
of the parties.
[SIGNATURES ON FOLLOWING PAGE]
Page 7 of 7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date and year first-above written.
CITY OF ARCADIA RING LLC
Dominic Lazzaretto Mel Tang
City Manager VP and Secretary
ATTEST:
___________________________
City Clerk
Date:_______________________________
___________________________________
Leila Rouhi
President
Date:
Stephen P. Deitsch
City Attorney
CONCUR:
_________________________________
Robert Guthrie
Chief of Police