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HomeMy WebLinkAboutItem 10e - False Alarm Program Management Services STAFF REPORT POLICE DEPARTMENT DATE: August 19, 2025 TO: Honorable Mayor and City Council FROM: Roy Nakamura, Chief of Police By: Amber Abeyta, Management Analyst SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH PHOENIX INFORMATION SERVICES GROUP FOR FALSE ALARM PROGRAM MANAGEMENT SERVICES FOR FISCAL YEARS 2025-26 THROUGH 2027-28, WITH THE OPTION OF THREE ONE-YEAR RENEWALS CEQA: Not a Project Recommendation: Approve SUMMARY The City’s Professional Services Agreement with PM AM Corporation (“PM AM”) for False Alarm Program Management Services expired on July 31, 2025. In compliance with the City’s procurement policy and to promote a transparent and competitive process, a Request for Proposals was issued in May 2025. Based on the proposals received, it is recommended that the City Council approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Phoenix Information Services Group for False Alarm Program Management Services for Fiscal Years 2025-26 through 2027-28, with the option of three one-year renewals. It is further recommended that the City Council delegate the authority to approve future renewals under this agreement to the City Manager, provided that any changes to the financial terms remain unchanged. BACKGROUND In 2008, the City entered a Professional Services Agreement with a third-party vendor to manage False Alarm Program services. These services included billing and collections, processing and tracking false alarms, and preparing and sending False Alarm Management Services August 19, 2025 Page 2 of 4 notification letters. Over time, the City has greatly benefited from its efforts to reduce false alarms in Arcadia. Since the program’s inception, false alarm activations have been reduced by 44%, from about 2,700 per year to 1,500. The Program has identified nearly 7,500 alarm systems, which is 47% more than the 4,000 initially expected by the City. DISCUSSION The Professional Services Agreement (“Agreement”) with the City’s current provider, PM AM, expired on July 31, 2025. Even though PM AM’s performance has been positive over the past six years, a Request for Proposals (“RFP”) was issued in May 2025, to ensure the best and most qualified company was being utilized to meet the false alarm needs of the City. A Notice Inviting Proposals was published on the City’s website and two proposals were received on May 27, 2025: one from PM AM and one from Phoenix Information Systems Group (“Phoenix”). A committee comprised of three City staff members reviewed and rated the proposals using a 100-point evaluation system. The proposals were evaluated according to thoroughness and understanding of work, related experience, references, quality of the proposal, and costs. Both companies have significant expertise in providing the requested services and met the requested criteria. However, the Professional Services Agreement is based on a revenue-sharing model, where a portion of the false alarm fees collected are retained by the company as compensation for their services. Phoenix proposed that the City would receive 84% of the fees collected, with Phoenix retaining 16% (84:16 split). Conversely, PM AM proposed a 79:21 split, which is the same ratio as the City’s most recent contract. As a result of the RFP process, the City now has the option to collect 5% more in false alarm program revenue, compared to what was available under the previous contract. Other favorable factors for Phoenix include their local client base, which includes providing false alarm services to over 250 clients in California, compared to PM AM’s customer base of over 140. Additionally, Phoenix’s corporate offices are in Santa Ana, California, whereas PM AM is based in Texas. For these reasons, the Phoenix proposal achieved a score of 100 points, with PM AM scoring at 95. False Alarm Management Services August 19, 2025 Page 3 of 4 Based on the foregoing information, it was determined that Phoenix best meets the Arcadia’s needs and has been selected as the City’s new service provider. Phoenix will provide the City with full-time, live operators to answer inquiries and complaints from Arcadia citizens, track all false alarms, send and collect all warning letters and bills, administer online alarm registration and bill pay, send follow-up letters for delinquent bills, provide all stationery material and postage, provide digital and printed false alarm educational materials, offer an online reinstatement test, and grant the City full access to its database and up-to-date status of all billing and collections. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Phoenix Information Services Group for False Alarm Program Management Services for Fiscal Years 2025-26 through 2027-28, with the option of three one-year renewals. It is further recommended that the City Council delegate the authority to approve any such one- year renewals to the City Manager, without having to return to the City Council for further authorization, provided that all financial terms remain unchanged. ENVIORNMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT Phoenix provides its service on a revenue sharing basis of all fees collected: 16% to Phoenix and 84% to the City. Phoenix does not charge maintenance fees and will provide all required services to run, collect, and maintain the false alarm program. After Phoenix’s 16% share, it is estimated that the City will receive approximately $182,000 in revenue during FY 2025-26. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and False Alarm Management Services August 19, 2025 Page 4 of 4 approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Phoenix Information Services Group for False Alarm Program Management Services for Fiscal Years 2025-26 through 2027-28, with the option of three one-year renewals. It is further recommended that the City Council delegate the authority to approve any such one-year renewals to the City Manager, without having to return to the City Council for further authorization, provided that the financial terms remain unchanged. Attachment: Proposed Professional Services Agreement 1 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT REGARDING FALSE ALARM PROGRAM MANAGEMENT SERVICES This Agreement is made and entered into as of ________________, 20____ by and between the City of Arcadia, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 240 West Huntington Drive, Arcadia, California 91066 (“City”), and Phoenix Group Information Systems a privately held C-Corporation, incorparted in California with its principal place of business at 2677 N. Main Street, Suite 440, Santa Ana, CA 92705 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A.City is a public agency of the State of California and is in need of professional services for the following project: False Alarm Program Management Services (hereinafter referred to as “the Project”). B.Consultant is duly licensed and has the necessary qualifications to provide such services. C.The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 2. Compensation. a.Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. Consultant shall submit to the City a monthly itemized statement which indicates total monthly collections, any City authorized adjustments, and the agreed upon revenue share calculation for the month based on the rates shown in Exhibit “C”. City shall, within forty- five (45) days of receiving such statement, review the statement and notify consultant of any discrepancies. 3.Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall DR A F T 2 be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 4. Maintenance of Records. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 5. Term The term of this Agreement shall be for a period of three (3) years from the contract implementation date as herein after defined unless earlier terminated as provided herein. As used herein, the term contract implementation date shall mean the first day of the calendar month for which Consultant commences billing for its services to city here under following the installation of the False Alarm Management Program; provided, however, that such monthly billing shall commence such installation promptly following the full execution of this Agreement and diligently and continuously proceeds to completion of such installation. Consultant shall complete the services within the term of this Agreement and shall meet any other established schedules and deadlines. The term of this agreement may be extended by mutual agreement of the parties on a year-by-year basis for a maximum of three (3) one(1)-year additional terms no later than 30 days prior to the expiration of the then current term. If such option is exercised, the terms and conditions quoted herein (with the exception of pricing) are to remain firm for the term extensions of this Agreement. Any adjustment to pricing shall be agreed to by the parties in writing prior to the commencement of any term extensions. 6. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 7. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. DR A F T 3 c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 8. Standard of Care Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 9. Assignment and Subconsultant Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 10. Independent Contractor Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: (1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability DR A F T 4 (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Agreement (8) Property Damage (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c. Workers’ Compensation/Employer’s Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of DR A F T 5 California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. d. Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the DR A F T 6 insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. h. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. DR A F T 7 i. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 12. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. b. To the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s obligations under the above indemnity shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, but shall not otherwise be reduced. If Consultant’s obligations to defend, indemnify, and/or hold harmless arise out of Consultant’s performance of “design professional services” (as that term is defined under Civil Code section 2782.8), then upon Consultant obtaining a final DR A F T 8 adjudication that liability under a claim is caused by the comparative active negligence or willful misconduct of the City, Consultant’s obligations shall be reduced in proportion to the established comparative liability of the City and shall not exceed the Consultant’s proportionate percentage of fault. 13. California Labor Code Requirements. a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). b. If the services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor. 14. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. DR A F T 9 15. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Los Angeles, State of California. 16. Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 19. Organization Consultant shall assign Claire Murphy as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 20. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 21. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to: CITY: City of Arcadia CONSULTANT: Phoenix Group Information Systems DR A F T 10 240 West Huntington Drive Arcadia, CA 91066 Attn: Roy Nakamura, Chief of Police Arcadia Police Department 2677 N. Main Street, Suite 440 Santa Ana, CA 92705 Attn: Claire Murphy, Executive Vice President and shall be effective upon receipt thereof. 22. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 24. Entire Agreement This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement. 25. Severability The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal. 26. Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 27. Non-Waiver None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. DR A F T 11 28. Time of Essence Time is of the essence for each and every provision of this Agreement. 29. City’s Right to Employ Other Consultants City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 30. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. [SIGNATURES ON FOLLOWING PAGE] DR A F T 12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND SHARP PERFORMANCE INC. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA PHOENIX GROUP INFORMATION SYSTEMS By: By: Dominic Lazzaretto Robert Murphy City Manager President Date: Date: ATTEST: By: Claire Murphy Executive Vice President By: City Clerk Date: APPROVED AS TO FORM CONCUR: By: By: Michael J. Maurer Roy Nakamura City Attorney Chief of Police DR A F T 13 EXHIBIT A Scope of Services Consultant shall be responsible for the daily operations of the Program. This will include, but may not be limited to: 1. Permit Tracking a) The Consultant shall be responsible for working with alarm companies to ensure that alarm permits are acquired for existing and new alarm holders. b) The Consultant shall be responsible for issuing notices to alarm-holders when there is evidence that an alarm-holder has failed to secure the required permit for an alarm system. c) The Consultant shall be responsible for providing information on a frequency to be determined by the City, which includes the name of the alarm-holder and address of the property where the required permit has not been obtained. d) The Consultant shall be responsible for the billing and collection of any fees associated with the failure of the alarm holder to secure a permit. e) The Consultant shall be responsible for providing the City online, web- based access to the data associated with permits for audit and ad-hoc reporting purposes. f) The Consultant shall provide for the ability to register alarm systems and obtain alarm permits by connection to an Internet-based portal that is integrated (i.e. linked to) with the City of Arcadia existing website. The Consultant will also be responsible for providing the ability for mail-in registration. 2. Billing a) The Consultant system shall receive data sent on a daily basis from the City's Computer Aided Dispatch (CAD) System that identifies false alarm events for the previous calendar date. This process shall be automatic and not require City staff intervention. b) The Consultant shall be responsible for producing bills on a frequency specified by the City (daily/weekly) to businesses/residents who owe a false alarm service fee based on a fee structure articulated by City Ordinances and Resolutions. DR A F T 14 c) Flexibility shall be inherent in the Consultant's system should the false alarm fee structure change. d) The Consultant shall provide a local or toll-free phone number to assist citizens and businesses and answer questions as to the administration and billing of this program. e) The Consultant shall provide a secure and user-friendly online system for bill payment as well as provisions for those without internet access. The online payment process must be PCI compliant. 3. Collections a) The Consultant shall be responsible for the collection of the fees. All fees collected shall be deposited in an account controlled by the City or the Consultant. Deposits shall be disbursed monthly, based on a mutually agreed­ upon schedule, to the City and the Consultant. The City and the Consultant shall receive their respective percentages of the revenues collected as provided by the contract between the City and the Consultant. b) To enhance public convenience and program perception, it is preferred that the Consultant provide a nearby (within 50 miles) program mailing address and mail-in payment processing. c) The Consultant shall be responsible for seeking collections from delinquent accounts and shall receive a percentage of the delinquent revenue as provided by contract between the City and the Consultant. d) The Consultant shall be responsible for providing information on a frequency to be determined by the City that includes the name of the alarm-holder and address of the property where false alarm service fees are delinquent. e) The Consultant shall be responsible for providing the City online web- based access to the data associated with collections for audit and ad-hoc reporting purposes. The City requires that the database utilized falls within City IT standards. f) The Consultant shall support the billing/suspension/revocation appeals process. g) The Consultant will be responsible for providing the City access to the data associated with collections for audit and ad-hoc reporting purposes. DR A F T 15 h) The Consultant shall obtain at its own expense, regular, independently- certified (e.g. SSAE16) audits of internal financial controls, data security and alarm management services. The reports on such audits shall be shared with the City. 4. Interface with Computer-Aided Dispatch (CAD) System [ Note, this Section 4 is open pending Consultant's understanding of City's system and its compatibility with Consultant's system] a) To minimize technical issues related to the sharing of alarm data, short- listed Consultants must have successfully implemented their False Alarm Management Solution with an agency that currently uses Executive Information Services (EIS) Computer Aided Dispatch System. Prospective Consultants will be required to provide at least one reference for an agency utilizing an EIS CAD system. b) The Applicant shall also have demonstrated experience automatically notifying selected City manager(s) of alarm program performance metrics. Such metrics must include active permits by City-specified location types, billings, collections and false alarms. These notifications are required on a scheduled basis, e.g. daily, as specified by the City. c) Should Consultant be selected for the administration contract but fail to provide and maintain a database capable of sharing information with the City's CAD system, as it may be upgraded, changed or modified over time, shall be considered a material breach of contract and grounds for immediate termination of Consultant's contract. 5. Customer Service a) The Consultant shall provide an internet based portal which will provide public interactivity for purposes of education, registration, and support services, as well as an automated or personnel staffed telephone system with similar attributes for those needing alarm program services, but without internet access. b) The Consultant will develop written educational materials for citizens and businesses, coordinate a public education notification plan and provide alarm user training and education via the Internet and other methods for those without computer access. c) The Consultant shall provide the City current, online access to the alarm program data with the ability to search accounts by multiple search criteria, view supporting documents such as letters and invoices, generate management reports, and create ad-hoc (custom) reports where the DR A F T 16 custom report template can be saved and re-generated on demand. d) The Consultant shall have a track record demonstrating experience and expertise in advising agencies on alarm ordinance provisions. e) It is preferred that the Consultant have nearby company representation to facilitate in-person meetings and better support the program and the City. 6. Data Security and Reliability a) The Consultant shall ensure the security and reliability of the City's public safety data maintained by the Consultant. Please describe the policies, processes and systems the Consultant has in place to protect the data. b) The Consultant shall follow generally accepted practices to ensure that its alarm management services are provided with adequate internal controls. Please describe these practices. c) The Consultant shall provide gratis System enhancements as they become available and backup system/disaster recovery functions. 7. City of Arcadia's Alarm Permit Subsidy Program a) Consultant shall communicate with residents and update their accounts after receiving information from the City regarding new subsidy program participants, including names, addresses, and contact information. Consultant shall send renewal letters to program participants informing them of their updated account status and projected renewal date so they can be informed so they can be informed when their next payment is due. b) Payment for each subsidy shall be taken from the program revenues. Consultant shall track the program participants and provide a report of the number of subsidies issued as part of the monthly accounting record. CITY RESPONSIBILITES 1. Appointing an Arcadia Alarm Administrator ("Administrator") who will be the primary point of contact between Consultant and Arcadia. The Administrator is responsible for overseeing Consultant's operation of the False Alarm Program Management services ("Program") and accessing Program information, as needed, via Consultant's provided online access; 2. Making any and all decisions about alarm call response, determining whether calls are false alarms, providing any on-scene communication of alarm related DR A F T 17 information to alarm users, and for documenting alarm related information within the Arcadia CAD/911 system; 3. Extracting false alarm incident data from the CAD/911 System and transferring this data electronically to Consultant (via email or Consultant's website). 4. Arcadia staff is responsible for entering, or causing to be entered into the CAD/911 System any false alarm related information that Arcadia may choose to display to CAD/911 System operators through CAD/911 System; 5. Scheduling, conducting, and making appeal decisions for any false alarm hearings; 6. Conducting any general public education programs on false alarms; and 7. Transferring any and all financial information from the Program generated alarm reports to other Arcadia financial systems, as needed. The City shall be responsible for all costs of carrying out these responsibilities, including, but not limited to the costs of staff, facilities, computer equipment and consumable supplies. DR A F T 18 EXHIBIT B Schedule of Charges/Payments For performing and completing all services pursuant to the Scope of Services (Exhibit "A"), Consultant will obtain payment exclusively from the collected revenues. There will be no upfront systems development, licensing, conversion, equipment, travel, or other costs. The Consultant shall be compensated for its services by receiving sixteen percent (16%) of all Alarm Ordinance required collections after payment of any citizen refunds, designated-bank and credit card processing charges, and any postage/mailing costs incurred in connection with the Services rendered under this Agreement which shall be paid out of the collected revenues before determining the amount to be split between City and Consultant as set forth herein. Thus, eighty-four percent (84%) of such required collections will be paid to the City. This percentage also excludes any applicable California sales/use/income taxes. Collections include at a minimum amounts received for permit registration fees, renewal fees, and non-registrations; false burglary and robbery/panic system activations, reinstatement fees, late fees, alarm company civil penalties, and any other charges established by Resolution No. 6628, attached and incorporated herein as part of Exhibit "C". The Consultant will pay for all other costs including paper stock, education materials, set-up fees, equipment (including hardware, hosting charges, and software), tools, personnel, utilities, and any other costs not listed here that are required for administering the false alarm billing and tracking program for the City. In addition, as part of the City of Arcadia's Alarm Permit Subsidy Program, which began in November of 2018, the Consultant will receive sixteen percent of any renewals associated with the Subsidy Program according to the same compensation conditions set forth above. The amount shall be retained from the City's monthly revenue collections. This percentage of collected revenues is based on several assumptions: 1. That Resolution No. 6628 relating to false security alarm fees remains in substantially the same form; 2. Arcadia adopts a fair, but firm approach to appeals resulting in alarm fines generally being upheld on appeal; DR A F T 19 Updated Feb. 2020 Arcadia actively supports enforcement of Ordinance No. 2243, attached and incorporated herein as part of Exhibit "C", including support of proactive collection of all fine amounts owed. City acknowledges that Consultant is installing the Program at no cost to the City. Consequently, in the event the City terminates this Agreement before or within 12 months from the Contract Implementation Date for any reason other than the failure of Consultant to perform its Services hereunder that has not been cured by Consultant within 30 days of receipt of written notice of the problem, Consultant shall be entitled to receive, and City shall pay to Consultant, the fees that Consultant would have received hereunder for a period of the initial 12 months after the Contract Implementation Date less the number of months, if any, that Consultant was paid its fees hereunder prior to the termination of this Agreement (the "Guaranteed Period"). If this Agreement is terminated after the Contract Implementation Date, the amount of the fees to be paid to Consultant shall be the average of the monthly fees retained by Consultant prior to termination of this Agreement multiplied by the number of months remaining in the Guaranteed Period. If this Agreement is terminated prior to the Contract Implementation Date, the amount of fees to be paid to Consultant shall be the amount of the fees projected by the parties to be retained by Consultant during the Guaranteed Period at the time this Agreement was executed. The amount of any fees payable to Consultant pursuant to the provisions of this paragraph shall be paid by City upon termination this Agreement unless the parties agree to have such amount paid in equal monthly installments over an agreed period of time. The provisions of this paragraph shall survive the termination of this Agreement. In addition, in recognition of the fact that Consultant's Services under the Agreement and the expenses incurred by Consultant in performing such Services are incurred in advance of Consultant receiving a percentage of the fees collected under this Agreement and that the City shall have the benefit of such work as may have been completed up to the time of such termination, City agrees to continue to pay Consultant its percentage of fees collected for a period of 90 days after the termination of this Agreement on fees collected during such period that are attributable to amounts billed by Consultant to permit holders prior to the date of termination of this Agreement. This provision shall survive the termination of this Agreement. The share of the revenues payable to Consultant and the City in accordance with the provisions of this Exhibit "C" shall be determined and paid monthly within forty-five (45) days after the end of each calendar month during the Term hereof based upon the amount of collections during the immediately preceding calendar month, adjusted for any outstanding authorized reimbursements or expenses payable to Consultant in accordance with the terms of this Agreement DR A F T 20 Updated Feb. 2020 EXHIBIT C Activity Schedule The Schedule of Services shall be performed for a period of three (3) years from the Contract Implementation Date as defined in Section 5 of this Agreement and may be extended by mutual agreement of the Parties on a year-by-year basis for a maximum of three (3) one (1) year additional terms, pursuant to Section 5 of this Agreement. Attached are Resolution No. 6628 and Ordinance No. 2243 DR A F T I RESOLUTION NO. 6628 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY i OF ARCADIA, CALIFORNIA, AMENDING RESOLUTION NO. 6489 RELATING TO FALSE SECURITY ALARM ~ FEES FOR THE ARCADIA POLICE DEPARTMENT ' WHEREAS, the Police Department charges certain fees for and related activities based on reasonable costs incurred; and WHEREAS, based on the cost allocation study performed by the Police Department, the fees set forth in this Resolution are necessary for the purposes set forth in this Resolution and said fees do not exceed the estimated costs for providing the service; the fees set forth in this Resolution bear a relationship to the cost of the respective service or program involved; the fees bear a fair and reasonable relationship to the benefit the payer obtains from paying the fees or the burden caused; and the fees are not being imposed for general) revenue purposes, but instead for partially recovering the cost of providing said NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: SECTION ] . Pursuant to Arcadia Municipal Code Section 3,907, the cost assessments for false security alarm responses are amended as A) For the first and second false security alarm in any consecutive three hundred sixty-five (365) day period - No cost assessment. 1 DR A F T B) For the third false security alarm in any consecutive three sixty-five (365) day period -One Hundred Dollars ($100.00). C) For the fourth false security alarm in any consecutive three sixty-five (365) day period -Two Hundred Dollars ($200.0 D) For the fifth and subsequent false security alarm in any three hundred sixty-five (365) day period -Three Hundred Dollars 300.00). E) For each false security alarm which specifically signals a robbery or panic false alarm, there shall be a cost assessment of Two Dollars ($200.00), commencing with the second false robbery or panic alarm in any three hundred sixty-five (365) day period. SECTION 2. Pursuant to Section 3906 of the Arcadia Municipal Code, the annual (365 days) alarm permit fee shall be $40.00. SECTION 3. Pursuant to Section 3908.1 of the Arcadia Munici Code the reactivation fee for a security alarm system shall be $150.00. SECTION 4. All fees set forth in this Resolution shall be Ibecome effective August 15, 2008. SECTION 5 Resolution. The City Clerlc shall certify to the adoption of this 2 'I 6628 DR A F T Passed, approved and adopted this 15th day of July ~, 2008. ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 5~-/~a2~G Mayor of the City of 3 6628 DR A F T STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) SS: CITY OF ARCADIA ) I, JAMES H. BARROWS, City Clerk of the City of Arcadia, hereby] certifies that the foregoing ResolutionNo. 6628 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at ~a regular meeting of said Council held on the 15th day of July, 2008 and that said was adopted by the following vote, to wit: AYES: Council Member Chandler, Harbicht and Kovacic NOES: Council Member Amundson and Wuo ABSENT: None Clerk of the City of 4 6628 DR A F T ORDINANCE NO. 2243 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING VARIOUS SECTIONS OF ARTICLE III, CHAPTER 9 OF THE ARCADIA MUNICIPAL CODE CONCERNING FALSE SECURITY ALARMS THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Sections 3901 subsection E, 3906, 3906.1 and 3907 of Chapter 9 of Article III of the Arcadia Municipal Code are hereby amended in their entirety to read as follows: 3901 (E). "Security alarm user" is any person using a security alarm system at his /her residence or place of business. This includes any person inside the residence or business with permission. 3906. APPROVAL OF SECURITY ALARM SYSTEMS /COMPLIANCE WITH STANDARDS. No person shall install any security alarm system without the prior approval of the City's Business License Officer of his/her designee after review by the police and other city departments as deemed necessary by the Business License Officer to assure compliance with the security alarm system standards as established by the City and without first making payment to the City of the 1 DR A F T established annual (365 days) alarm permit fee, as set by resolution of the City Council from time to time. 3906.1. COMPLIANCE WITH REGULATIONS. Whenever it is determined that a security alarm user has failed to meet any of the standards of this Chapter or related resolutions or regulations adopted by the City, the City's Business License Officer is authorized to direct in writing that the user of that security alarm system disconnect the system until it is made to comply with said requirements. Failure to comply with this direction shall constitute a misdemeanor. Any alarm company that continues to report the activation of an ordered disconnected or unpermitted alarm to the Police Department shall be in violation as well, and any such violation shall constitute a misdemeanor. It shall be a violation of this Code for any alarm company to report activation from an unpermitted alarm in the city, and any such violation shall constitute a misdemeanor. 3907. FALSE SECURITY ALARM COST ASSESSMENT /GRACE PERIOD. Any person or business having a security alarm system which results in an Arcadia Police Department response in which the security alarm proves to be a false security alarm, shall pay a cost assessment fee to the City of Arcadia as established from time to time by resolution of the City Council. There will be no penalty assessment for any false security alarms that occur within thirty (30) 2 2243 DR A F T calendar days of the initial completed installation of a new security alarm system. A false security alarm cost assessment shall be paid to the City after three (3) false security alarms have been received from any one (1) source from any one (1) security alarm system, in accordance with the following schedule: A. The first (lst) and second (2nd) false security alarms in any consecutive three hundred sixty -five (365) day period will incur no cost assessment. B. For the third ( 3rd) false security alarm in any consecutive three hundred sixty -five (365) day period, there will be a cost assessment as set forth by resolution of the City Council. C. For the fourth (4th) false security alarms in any consecutive three hundred sixty -five (365) day period, there will be a higher cost assessment than the third false alarm assessment, as set forth by resolution of the City Council. D. For the fifth (5th) and all subsequent false security alarms in any consecutive three hundred sixty -five (365) day period, there will be a higher cost assessment than the fourth false alarm assessment, as set forth by resolution of the City Council. E. Notwithstanding any provisions herein to the contrary, for each false security alarm which specifically signals a robbery or panic alarm regardless of any other crime, there shall be a cost assessment as set forth by resolution of the City Council, commencing with the second ( 2nd) false security alarm in any 3 2243 DR A F T consecutive three hundred sixty -five (365) day period. After one (1) "robbery" or panic" false security alarm, the City shall issue a warning notice to the security alarm user. As set forth in Penal Code Section 211, "robbery" means the felonious taking of personal property in the possession of another, from his person or immediate presence, and against his will, by means of force or fear. The purpose of Section 3907 is, in part, to assure that assessment shall apply to any person or business whose security alarm system results in at least three (3) false security alarms or two (2) robbery or panic alarms within any consecutive three hundred sixty -five (365) day period. Any false security alarm within any three hundred sixty -five (365) day period shall be counted as part of the calculation of cost assessments set forth by Resolution of the City Council. Accordingly, a person cannot be cleared of any false security alarms in this determination, unless that person's security alarm system does not register any false security alarms for at least three hundred sixty -five days (365) consecutive days." SECTION 2. The City Clerk shall certify the adoption of this Ordinance and shall cause a copy of the same to be published in the official newspaper of the City of Arcadia within fifteen (15) days after its adoption. This Ordinance shall take effect on the thirty -first ( 31St) day following its adoption. SIGNATURES ON NEXT PAGE] 4 2243 DR A F T Passed, approved and adopted this ATTEST: City Clerk APPROVED AS TO FORM: C?. Stephen P. Deitsch City Attorney 5 15th day of July , 2008. Mayor of the City of Arcadia 2243 DR A F T STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) SS: CITY OF ARCADIA ) I, JAMES H. BARROWS, City Clerk of the City of Arcadia, hereby certifies that the foregoing Ordinance No. 2243 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 15th day of July, 2008 and that said Ordinance was adopted by the following vote, to wit: AYES: Council Member Amundson, Chandler, Kovacic, Wuo and Harbicht NOES: None ABSENT: None on City Clerk c f the City of Arcadia 2243 DR A F T