REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with Superion, LLC, for Residential and Business Alarm Management Software and Related Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On January 9, 2020, the City Council approved an agreement with Superion, LLC (a subsidiary of CentralSquare) to manage the City’s residential and business alarm systems through a platform called CryWolf. For the purposes of this report, the third-party vendor will be referred to as Superion.
The agreement included three initial years of service with two optional one-year extensions, which are set to expire on February 20, 2025. There were no upfront costs of annual maintenance fees as part of this Agreement. Instead, the two parties agreed to a split of the estimated revenue, Superion (24%) and the City (76%). Per the Agreement, program costs, such as bank fees, citizen overpayments (if any), credit card fees (if any), and mailing costs (postage, paper and envelopes) at U.S. Post-Office first-class rate have been withheld from gross collections before revenue sharing percentages are applied. Any certified mail requirements have also been billed separately on a monthly basis and not subject to the revenue share division. The revenue estimates have been included in the Operating Budget, and Chapter 8.40 Security Alarm Systems and Municipal Fee Schedule was adjusted to reflect the third-party management of the program.
The services provided under the agreement also include:
• Secure 24/7 online access to account information through an agency dedicated website.
• Recording of program-related telephone calls through Superion’s call center, which ensures high level of customer service, consistent and courteous communications, support for 175 spoken languages, and options for the hearing impaired.
• Automated alarm disposition, eliminating the need for manual processing.
• Automated data collection and reporting.
In the original Report to Council (#19-809, December 10, 2019), staff stressed the operational efficiencies a third-party vendor such as Superion would provide to the Police and Finance Department’s in managing this program. The report referenced estimated revenue at $186,960 to the City annually. While the revenue actually received is less than this estimate, it is still a more efficient model than bringing the program in-house. It is important to note that the cost to the City to administer a false alarm regulatory program in-house would include multiple classifications in both the Police and Finance Department to manage.
The sheer volume of actions performed (71,363), notices prepared (42,302) and hearings conducted (1,217) combined with Superion’s 80% success rate on collection for invoices is an expertise and workload that a third-party effectively brings with subject matter expertise.
DISCUSSION
Program Data Since Inception of the Agreement
Prior to use of the Superion program, false alarm permit management and fee collection was a largely manual process conducted by in-house staff. This process was inefficient and ineffective. In late 2019, the City had 9,144 permits, split roughly evenly between residential and commercial permits, which included a large percentage of inactive systems. The Superion program went live on January 1, 2021. Since that time, the number of registrations to be managed (i.e., active registrations) has been reduced to 4,503 (again, split roughly evenly between residential and commercial).
|
Year |
Number of New Residential Registrations |
Number of New Non-Residential Registrations |
|
2020 |
8 |
15 |
|
2021 |
1,466 |
1,432 |
|
2022 |
358 |
267 |
|
2023 |
318 |
231 |
|
2024 |
240 |
168 |
|
TOTAL |
2,390 |
2,113 |
From January 1 through October 7, 2019, Public Safety Dispatchers received 2,973 alarm dispatch requests; 460 of these calls were cancelled while a police officer was en route (which reduces the draw on departmental resources), 2,498 were determined to be false alarms upon officer arrival and investigation on scene (e.g. user error, mechanical issue, etc.), and 15 were valid over the designated timeframe.
Since the inception of the program, as reflected in the table below, the number of false alarm calls has been significantly reduced, and the number of cancelled calls has significantly increased, resulting in increased efficiencies for the Department. For example, in calendar year 2024, the Police Department received 2,226 false alarm calls as compared with 2,973 in the first eight months of 2019. False Alarm calls cancelled en route increased from 460 to 554.
|
Year |
Number of Residential False Alarm Calls |
Number of Non-Residential False Alarm Calls |
Number of False Alarm Calls Cancelled |
Number of False Alarm Calls that Required a Police Report |
|
2021 |
415 |
1,408 |
527 |
12 |
|
2022 |
361 |
1,640 |
575 |
12 |
|
2023 |
351 |
1,667 |
580 |
12 |
|
2024 |
291 |
1,374 |
554 |
7 |
|
TOTAL |
1,418 |
6,089 |
2,236 |
43 |
Permit and False Alarm Fees and Revenue
Through December 31, 2024, Superion has billed a gross of $972,156. Of this gross amount, the amount collected by Superion is $749,532. From this collected amount, programmatic expenses were first subtracted, followed by a contractual split of the remaining balance between the City and Superion. This split resulted in $569,644 distributed to the City.
The proposed Fiscal Year 2025/26 Municipal Fee Schedule rates, tentatively scheduled to be adopted by City Council in April 2025, maintains the fees at the same rate as adopted at program inception in Fiscal Year 2019/20, as set forth in the table below. The fees associated with permits and false alarm calls have not changed since inception, and are not proposed to be increased in association with the proposed Amendment No. 1.
|
Fee Description |
Cost |
|
Alarm Permit (initial) |
$37.00 |
|
Alarm Permit (annual renewal or reinstatement) |
$15.00 |
|
Annual Renewal Late Fee |
$25.00 |
|
Penalty for Non-Registration |
$50.00 |
|
False Alarm (first offense) |
No charge |
|
False Alarm (second offense) |
$50.00 |
|
False Alarm (third offense) |
$115.00 |
|
False Alarm (fourth offense, $25.00 penalty) |
$140.00 |
|
False Alarm (fifth and subsequent offenses, $50.00 penalty) |
$165.00 |
|
Hold-up Alarm |
$125.00 in addition to alarm fees noted above |
Continuation of the Superion Program
Superion’s platform has streamlined processes, increased efficiency in managing alarm permits and responding to valid alarms and reduced the administrative workload for public safety departments caused by false alarms. To maintain these operational benefits, staff is seeking approval to execute Amendment No. 1 to the agreement with Superion to extend the term for an additional five years through February 20, 2030.
Compensation will remain as a fixed revenue-sharing split of 24% to Superion and 76% to the City. Program costs, such as bank fees, citizen overpayments (if any), credit card fees (if any), and mailing costs (postage, paper and envelopes) at the U.S. Post Office first-class rate, will be deducted from gross collections before revenue-sharing percentages are applied. Any certified mail requirements will be billed separately on a monthly basis and not subject to the revenue share division.
The original agreement with Superion was awarded on a sole-source basis due to its unique integration capabilities with the City’s Computer Aided Dispatch (CAD) system and the financial management system. Transitioning to a different system would require significant time, effort, and cost including reconfiguration and redevelopment to integrate with the CAD and the City’s financial management system.
Prior to the agreement’s expiration in February 2030, staff will review the Superion platform and evaluate whether it continues to meet the City’s requirements. If it is determined that that platform no longer aligns with the City’s needs, staff will initiate a competitive procurement process to identify alternative solutions.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There are no up-front costs or annual maintenance fees. Instead, Superion is compensated through a revenue-sharing split with 24% allocated to Superion and 76% allocated to the City of Santa Clara. The Amendment does not modify this percentage split. In addition, the Amendment does not necessitate any alteration of the existing applicable municipal fees. This agreement has been factored into the annual operating budget.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 1 to the Agreement with Superion, LLC for residential and business alarm management software and related professional services to add up to five additional one-year periods to extend the term of the agreement through February 20, 2030, in a final form approved by the City Attorney; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement with Superion, LLC and negotiate and execute amendments to add or delete services consistent with the scope of services, in a final form approved by the City Attorney.
Staff
Reviewed by: Cory Morgan, Chief of Police
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Amendment No. 1 to Agreement with Superion, LLC
2. RTC 20-26 and Executed Agreement with Superion, LLC