title
APPROVE MOTION TO AWARD A STANDARD AGREEMENT TO ALARM PROGRAM SYSTEMS LLC FOR ALARM INTRUSION PROGRAM SERVICES (PUR 25-013)
recommended action
RECOMMENDATION
It is recommended that the City Council by motion:
1. Approve findings pursuant to Stockton Municipal Code §3.68.070(A)(3) in support of an exception to the competitive bidding process by allowing negotiated contracts following the solicitation of competitive proposals (RFP).
2. Authorize the City Manager to execute a Standard Agreement to outsource the monitoring of the Alarm Intrusion Program to Alarm Program Systems LLC of Pleasant Hill in the estimated revenue share amount of $103,000 for each year of the contract term, which is three (3) years through May 2028, with the option to renew for two (2) additional - one-year extension through May 2030. The Standard Agreement includes an 18% revenue sharing fee structure from permit and permit renewal fees and false alarm fees.
3. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
body
Summary
Since 1984, the Stockton Police Department's (SPD) Neighborhood Services Section (NSS) has managed the Alarm Intrusion Program with the goal to reduce SPD’s response to false alarms. However, due to the industry trend of continued growth of installation of alarm system, the City continues to experience a high level of false alarm calls. The current program generates approximately $571,000 in revenue.
The Alarm Intrusion Program utilizes the Police Alarms Database Software (PADS), integrated with SPD's records management system, to manage alarm permits, billing, and responses. Despite the program efforts, false alarm rates remain high, per the following:
|
Time Period |
# of Alarm Calls |
# of False Alarm Calls |
% of False Alarms |
|
FY 2021 -2023 |
22,925 |
20,637 |
90% |
This high rate significantly strains resources of the SPD and impedes efficient responses to genuine emergencies.
To address these challenges, SPD conducted an RFP to outsource the Alarm Intrusion Program so SPD staff can focus on true emergencies within the community. Outsourcing the program offers the following benefits:
1. The specialized vendors can often reduce false alarms by 30-50% through enhanced verification procedures and customer education.
2. The reduced false alarms allow officers and dispatchers to focus on genuine emergencies and proactive policing.
3. Outsourcing enables SPD to concentrate on core law enforcement duties, improving overall efficiency.
4. The selected vendor offers a revenue-sharing pricing structure, which can lead to some cost recovery and cost optimization for the program.
DISCUSSION
Background
Due to the excessive rate of responses to false alarms, SPD issued an RFP to hire a qualified supplier to assume the Alarm Reduction Program. On January 16, 2025, the City issued RFP PUR 25-013 for Alarm Intrusion Program Services. Three proposals were received by the due date of February 13, 2025, from the following firms:
|
Firm Name |
Firm Location |
|
Alarm Program Systems LLC |
Pleasant Hill, CA |
|
Phoenix Group Information Systems |
Santa Ana, CA |
|
Municipal Alarm Tracking dba Munipal |
Escondido, CA |
The Selection Committee was comprised of four (4) members of the Neighborhood Services Section (NSS) staff. The selection committee reviewed all proposals and independently scored each proposal based on the evaluation criteria in the RFP, which included firm's qualifications, professional experience, industry expertise, capacity, and cost. The cost was evaluated separately by Procurement, based on all evaluation factors, Alarm Program Systems LLC was determined to be the most qualified and highest-ranked firm. The intent to award was issued to Alarm Program Systems LLC and contract negotiations were successfully conducted with the supplier.
It is recommended that the City Council authorize the City Manager to execute a Standard Agreement to outsource the monitoring of the Alarm Intrusion program to Alarm Program Systems LLC of Pleasant Hill in the estimated revenue share amount of $103,000 for each year of the contract term, which is a three (3) year contract term through May 2028, with the option to renew two (2) additional - one-year extensions through May 2030 (Attachment A). The Standard Agreement includes an 18% revenue sharing fee structure from permit & renewal fees and false alarm fees, which provides a cost-effective and potentially revenue-enhancing solution to offset the cost of managing the program.
Findings
Pursuant to Stockton Municipal Code (SMC) Section 3.68.070(A)(3), the City Council may approve findings that support an exception to the competitive bidding process by allowing negotiated contracts following the solicitation of competitive proposals (RFP). The following findings are presented:
1. The City lacks sufficient staff resources to effectively manage the Alarm Intrusion Program in its entirety; therefore, SPD is requesting to outsource the management of the program.
2. Outsourcing the Alarm Intrusion Program will provide enhanced customer -education, resulting in a reduction of false alarm calls and allowing police officers and dispatchers to prioritize core law enforcement duties.
3. The revenue-sharing model includes an 18% revenue sharing fee structure offered by the selected vendor. The revenue sharing fee structure provides a cost-effective and potentially revenue-enhancing solution to offset the cost of managing the program for the City.
4. The use of the RFP process is appropriate for services type Contract and was conducted in line with procurement best practices through an open, competitive, and transparent solicitation process, adhering to all applicable procurement laws and regulations. The evaluation of proposals was based on each firm’s professional qualifications, experience, industry expertise and cost as the basis for the awarding to the best value proposals. Use of the evaluation criteria ensures the selection of a vendor that will provide the highest quality services, which is in the public interest.
5. The City successfully negotiated the Standard Agreement with Alarm Program Systems LLC following solicitation and evaluation of competitive proposals in accordance with SMC §3.68.070(A)(3).
FINANCIAL SUMMARY
The Fiscal Year 2025-26 budget for the Alarm Intrusion Program is appropriated within the SPD’s General Fund. An 18% revenue-sharing model with Alarm Program Systems LLC will offset operational costs, with the City retaining 82% of generated revenue, estimated at approximately $468,000. This model aims to improve financial sustainability and reduce the burden on the SPD's General Fund, which includes Officer response times. Future expenditures and revenue projections will be included in the annual budget appropriation process.
Attachment A - Standard Agreement