TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
Peter Wingert, Chief of Police
DATE: November 3, 2016
DEPARTMENT: Police Department
Staff Contact Peter Wingert, 480-948-7418
End
AGENDA TITLE:
Title
Presentation of Alarm Monitoring Business Models
Body
Council Goals
Improve Public Safety Services including prevention, enforcement, communication and community/victim outreach.
SUMMARY STATEMENT:
The Town of Paradise Valley has been providing police alarm monitoring since 1984. The equipment purchased at inception has reached the end of its serviceable life. On October 22, 2015, the Town Council gave staff direction to seek a long term solution for the Alarm Monitoring Service.
On December 31, 2015 the equipment failed, causing an outage in service for our 450 subscribers. Town staff was able to revive the system and continue to offer this service. In late May 2016, staff conducted site visits to five municipalities in Texas in order to gather research on each municipality’s alarm monitoring service. In July 2016, staff requested a vendor to assist with creating business models for the monitoring service.
Four business models are included. Those models include:
• Best of variables model
• Recruitment driven sustainability model
• Rate driven sustainability model
• Capital protection exit model
Staff considered three other business models prior to concluding that they were not appropriate for this project. Those include:
• Fully subsidized model (costs approximately $6M over 10 years)
• Sunset model (expends nearly $500k prior to exit)
• Expenditure reduction sustainability (either staff or infrastructure must be cut to levels that do not provide the great customer service TPV aspires to provide)
This presentation will present the Paradise Valley Town Council with the four business model and request further direction.
ATTACHMENT(S):
Slides of Powerpoint presentation
Slides of Excel spreadsheets for business models