TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Matt Henry, Chief of Police
PREPARED BY: Dawnn Jackson, Management Analyst - Administration
SUBJECT:
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Approve Agreement with Alarm Program Systems, LLC (APS) for False Alarm Billing for the Police and Fire Departments
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RECOMMENDATION
recommendation
Approve an agreement with Alarm Program Systems, LLC for false alarm billing for the Police and Fire departments.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Provide a high level of innovative public safety.
BACKGROUND
Currently, the false alarm program is administered in-house by the Police Department’s Dispatch Supervisor and an Accounting Specialist in the Finance Department. This manual process is highly labor-intensive and inefficient, with a collection rate of only 10-15%. The current false alarm billing system lacks automation, tracking, and efficient enforcement, resulting in low compliance and revenue recovery.
Contracting with APS will professionalize and automate the alarm program. APS specializes in municipal alarm management services and will implement a comprehensive system to administer permits, monitor false alarm activity, handle billing and collections, and generate required reports. The key benefits of contracting with APS include:
• Improved Efficiency and Automation:
o APS will install and operate a full-service alarm management platform to streamline the entire process, eliminating the manual workload for City staff.
o Automated generation and delivery of registrations, renewals, notices, and invoices.
o Real-time tracking of violations, payment status, and appeals.
• Increased Revenue Recovery:
o APS provides robust billing and online payment systems, which are expected to significantly improve the City’s current 10-15% collection rate.
o All payments are tracked and reconciled monthly with detailed revenue reporting.
• Cost-Neutral Implementation:
o APS covers all start-up and implementation costs, including data conversion, software integration, and training.
o Program expenses (postage, materials, credit card fees) are paid from gross revenues before revenue sharing.
• Fair Revenue Sharing:
o The City retains the majority of collected revenue:
§ The City will retain 74% of the first $60,000 in annual program revenue and 82% of revenue beyond $60,000.
• Enhanced Transparency and Reporting:
o APS’s system will generate a wide range of customized reports on registrations, collections, false alarms, and enforcement activity to support data-driven decision-making.
• Customer Support and Accessibility:
o APS maintains a dedicated support line and provides online payment options, improving customer service and compliance.
• Ordinance Review and Best Practices:
o APS offers consultation on ordinance updates and provides access to best practices used by other cities.
Two other companies were also consulted; however, APS offered the most favorable terms, including the highest revenue share to the City and a more comprehensive suite of products and services to support the Alarm Management Program.
Outsourcing the alarm management and billing to APS will enhance operational efficiency, increase revenue recovery, and reduce the administrative burden on City staff. Staff recommends approval of the agreement with APS to administer the City's Alarm Management Program, subject to the meet-and-confer process with labor associations regarding the change in duties, as required by the Meyers-Milias-Brown Act (MMBA), Government Code §3500 et seq.
FISCAL IMPACT
The program is expected to be self-sustaining, with costs covered by collected revenues. APS will only be compensated from a percentage of funds successfully collected, incentivizing performance and reducing the City’s financial risk. Revenue for this program will continue to post to the Crime Prevention Fund Revenue account 1193120-45534.
ATTACHMENTS
1. Agreement with Alarm Program Systems, LLC