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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 Page 2 of 4 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 Extension of Ring Security Camera Subsidy Program October 16, 2018 Page 3 of 5 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. Extension to the Ring Security Products Subsidy Program October 16, 2018 Page 4 of 4 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. Extension of Ring Security Camera Subsidy Program October 16, 2018 Page 5 of 5 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 Page 2 of 7 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. Page 3 of 7 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 Page 4 of 7 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 Page 5 of 7 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. Page 6 of 7 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