To: MAYOR AND CITY COUNCIL
From: JOE HOFFMAN, CHIEF OF POLICE
TITLE
title
APPROVE AN AGREEMENT WITH PHOENIX GROUP INFORMATION SYSTEMS FOR FALSE ALARM PERMIT MANAGEMENT AND FEE COLLECTION SERVICES FOR AN AMOUNT NOT TO EXCEED 16% OF THE FEES COLLECTED FOR THE TERM AUGUST 19, 2025 TO AUGUST 19, 2027
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EXECUTIVE SUMMARY
Approval of the proposed Agreement Phoenix Group Information Systems (Phoenix Group) would allow the City to more effectively manage the renewal and cost recovery process for fire and burglar alarm permits by utilizing a more efficient and streamlined fee collection process. The proposed Agreement would replace the existing Agreement with Central Square and lower the administrative service cost from 30% to 16% of the fees collected.
BACKGROUND
On July 12, 2022, the City of Redondo Beach entered into a three-year agreement with Central Square Technologies to manage alarm permits for both residential and commercial properties with monitored burglar and/or fire alarms. The Agreement allowed for two one-year extensions. The Agreement is in accordance with the City's Alarm Ordinance outlined in Title 3 Public Safety of the Redondo Beach Municipal Code. The Ordinance establishes requirements for permit applications and imposes fees for emergency responses to more than three false alarms within a 12-month period.
From inception, the City has received numerous complaints, from both the public and internal staff, concerning the quality of customer service provided by Central Square. In addition to these concerns, numerous errors have been identified, which have resulted in delayed payment processing, billing inaccuracies, unresolved account issues, and lost revenue for the City. Furthermore, the company's representatives have demonstrated a significant lack of responsiveness, leading to considerable staff time being spent on supporting affected residents. These ongoing issues have prompted staff to explore long-term corrective measu...
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