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HomeMy WebLinkAboutMinutes - 2/21/2011 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING �- Monday, February 21, 2011 Alderman Conference Room, 6:30 p.m. In Attendance: Committee Members: Chairman Alderman Schaefer, Alderman Blake and Alderman Wimmer. Absent: None. Also in Attendance: Alderman Santi, City Administrator Black, Assistant City Administrator Hobson, Chief of Police Jones and City Clerk Jones. Alderman Peterson arrived at 6:40 p.m. Mayor Low arrived at 6:45 p.m. Also in Attendance: Chief Huemann, McHenry Township Fire Protection District Asst. Chief Majercik, McHenry Township Fire Protection District Phil Bartmann, Trustee, McHenry Township Fire Protection District Chairman Alderman Schaefer called the meeting to order at 6:30 p.m. Discussion Re�ardin�Wireless Alarm Monitorin� Svstem Assistant Administrator Hobson informed the Committee that the system currently in use ,,� is antiquated. It is approximately 30 years old and difficult to maintain. Norshore Alarm currently owns and maintains the alarm monitoring system in the City's dispatch center. Businesses in the City currently have the option of having their alarms monitored by the City (via Norshore), which utilizes a telephone land line, or using a private alarm monitoring service. Assistant Administrator Hobson noted that the building code requires approximately 200 commercial and industrial businesses, located in the City, to have fire alarms. Of those 200, an estimated 130 alarms are monitored by the City dispatch center. Assistant Administrator Hobson stated that moving to a wireless system provides several public safety benefits including a reduced number of false alarms and improved response times for fire calls. He noted that with the current system false alarms frequently occur during power outages and power surges. The use of a wireless system would significantly reduce false alarms allowing staff, dispatchers and public safety personnel to respond to actual calls. Improved response times to fire alarm calls would occur since all businesses with fire alarm systems would eventually be required to have them monitored by the City dispatch center. Fire Chief Huemann noted that improved response times to fire alarm calls would occur because currently when the central alarm accepts an alarm, they must forward them to the dispatch center, slowing emergency response. The current process may take up to ten � Finance and Personnel Committee Meeting L- February 21, 2011 Page 2 minutes from the time of the alarm to the arrival of an emergency responder, which is much longer than alarms monitored directly by the dispatch center. Police Chief Jones stated that currently it is necessary to address all alarms, including false alarms, during bad weather. Frequently, bad weather will trigger numerous false alarms. Alderman Peterson arrived at 6:40 p.m. It is the consensus that from a safety factor wireless technology is more efficient. Responding to an inquiry from Alderman Schaefer, Assistant Administrator Hobson stated that the system has a built-in redundancy. If one of the alarms happens to not be functioning, with the wireless alarm system, it automatically sets off another alarm. Responding to an inquiry regarding how the system would be funded, City Administrator Black stated that if the City moves forward with the project a new fund separate from the General Fund would be established. �, Mayor Low arrived at 6:45 p.m. Assistant Administrator Hobson informed the Committee that the City would not be charged the installation fee of$195.00 per install for the first six months that the City has the system. Only the monthly fee would be charged. After six months any installation would cost $195.00. Assistant Administrator Hobson informed the Committee that area municipalities that have implemented wireless systems have passed an ordinance requiring all alarms to be monitored by the governmental entity. In the City of McHenry, this would result in all businesses currently using central alarm service being required to have their alarms monitored by the City within a specified period of time. Currently the monthly phone line charge may be as high as $100 per month and monitoring cost as high as $40 per month, if the business has both a fire and a burglar alarm. Staff has examined the potential fees for the wireless alarm system and feels that $90 per month will be an equitable amount, which affords the best service to existing as well as potential customers. Assistant Administrator Hobson noted that all users would benefit from fewer false alarms and better response time, with many seeing no increase or perhaps even a decrease in the rate they are currently paying. \... Finance and Personnel Committee Meeting `- February 21, 2011 Page 3 Installing a wireless system has an upfront cost for the purchase and installation of equipment, which includes the wireless alarm receiver (head end equipment) and radio equipment for each end user and outgoing costs primarily for hardware, software and radio maintenance. In October of 2009, the City of McHenry solicited bids for a wireless alarm inonitoring system. The bids were received and opened in November 2009. Fox Valley Fire Safety was the low bidder on the project with a price of $263,260. Staff recently spoke with a representative from Fox Valley Fire Safety and they are willing to honor all original price quotes through July 31, 2011. Assistant Administrator Hobson noted a key factor in the consideration of the proposal to install and maintain the wireless alarm system is the relationship between the City of McHenry and the McHenry Township Fire Protection District ("MTFPD"). The MTFPD routinely performs the inspections of City businesses as it relates to the building code and fire safety. As a result, the MTFPD is positioned to assist with the installation, including education and contract implementation for the new system. In addition, the MTFPD would also perform ongoing maintenance on the system for issues that are outside the scope of the maintenance agreement. This includes inspection and installation of new batteries as required. City Staff and the MTFPD have reached an initial agreement regarding what the arrangement would entail which includes the following stipulations: � 1. Provide a 5-year contract; 2. The City will pay the MTFPD 20% of the monthly income for the first 3-years. The City will pay the MTFPD 25% for the remainder of the contract; 3. The contract may be extended on a year-to-year basis after the initial 5-year period; 4. The MTFPD will make the initial contact with the businesses after the City enacts an ordinance and notifies all affected businesses in the City through a mailing; 5. The MTFPD will coordinate the installation of the wireless devices with the businesses and the contractor; 6. The MTFPD will coordinate ongoing maintenance of the system between the contractor and the business. Any cost for the maintenance shall be bourn by the City or the business; 7. Wireless alarms will be checked and tested by the MTFPD inspectors during their routine inspection of businesses. When required, they will replace the batteries which would be provided by the City and billed to the business. 8. The MTFPD will have full authority to solicit and provide the above services to businesses outside of the City of McHenry and within the District for a fee with full access to the head end and equipment owned by the City and the alarms being answered by � the dispatch center. Finance and Personnel Committee Meeting �. February 21, 2011 Page 4 Assistant Administrator Hobson stated that based on estimates, subscriber revenue may recover the initial investment and operation costs in approximately three to four years and, thereafter, the system would provide annual revenue of approximately $100,000. These figures, including the initial payback, are based upon signing up the estimated 200 users currently on the City's alarm board and also account for the portion remitted to the MTFPD. Currently, Norshore Alarm charges customers $20 per month and pays to the City $5 per month for each customer. Under the current agreement with Norshore, the City receives approximately $7,800 in revenue annually. He noted that as some businesses have moved in recent years to the wireless central monitoring systems, alarm board revenue/monitoring has declined. Fire Chief Huemann reiterated that all the equipment would be owned by the City of McHenry and that the MTFPD would maintain service. Responding to an inquiry from the Committee, Chief Huemann opined a normal battery life is approximately 5 years. Staff is recommending approval of the bid received from Fox Valley Fire Safety for the wireless alarm monitoring system, to include the eight stipulations noted and to direct Staff to prepare an ordinance requiring all alarms to be monitored by the governmental entity. � Motion by Wimmer, seconded by Blake to approve the preparation for Council consideration a contract with Fox Valley Fire Safety for a wireless alarm monitoring system and with the McHenry Township Fire Protection District ("MTFPD") for installation, operation and revenue sharing, which includes the following eight stipulations: 1. Provide a 5-year contract; 2. The City will pay the MTFPD 20% of the monthly income for the first 3-years. The City will pay the MTFPD 25% for the remainder of the contract; 3. The contract may be extended on a year-to-year basis after the initial 5-year period; 4. The MTFPD will make the initial contact with the businesses after the City enacts an ordinance and notifies all affected businesses in the City through a mailing; 5. The MTFPD will coordinate the installation of the wireless devices with the businesses and the contractor; 6. The MTFPD will coordinate ongoing maintenance of the system between the contractor and the business. Any cost for the maintenance shall be bourn by the City or the business; 7. Wireless alarms will be checked and tested by the MTFPD inspectors during their routine inspection of businesses. When � Finance and Personnel Committee Meeting �. February 21, 2011 Page 5 required, they will replace the batteries which would be provided by the City and billed to the business. 8. The MTFPD will have full authority to solicit and provide the above services to businesses outside of the City of McHenry and within the District for a fee with full access to the head end and equipment owned by the City and the alarms being answered by the dispatch center. Aye: Blake, Schaefer, Wimmer. Nay: None. Absent: None. Motion carried. Motion by Blake, seconded by Wimmer, to direct Staff to prepare an ordinance for consideration by the Council requiring all alarms to be monitored by the City of McHenry. Aye: Blake, Schaefer, Wimmer. Nay: None. Absent: None. � Motion carried. New Business No new business was discussed. Adiournment Motion by Wimmer, seconded by Blake, to adjourn the meeting at 6:57 p.m. Aye: Blake, Schaefer, Wimmer. Nay: None. Absent: None. Motion carried. Respectfully submitte , J ey A. S aefer, Chai an �