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Page 1 of 7 Ogden City Council Meeting: January 3, 2017 PROPOSED MID-YEAR FEE AMENDMENTS Actions: 1. Adopt/not adopt Ordinance 2016-64 Mid-year fee amendments for security alarms 2. Adopt/not adopt Ordinance 2016-65 Mid-year fee amendments for general fee schedule Executive Summary The Ogden City Administration is proposing mid-year fee amendments for security alarm permits and false alarm calls that request a police response, and to incorporate a reference of these fees into the citywide fee schedule. The Administration is also proposing to modify the returned check fee in the general fee schedule in order to have the ability to charge for additional costs associated with collection. Background December 20, 2016 The Council set public hearings for consideration of mid-year fee amendments for security alarms and the general fee schedule. December 6, 2016 A Council work session was held to discuss amendments to the initial proposal. This discussion included amending the ordinance to further define how it applies to businesses, clarifying the responsibility of residential tenants to pay false alarm fees and options to ensure accuracy in the permitting process. As follow up to the discussion, the following amendments have been incorporated into the proposed ordinance: Amending the definition of “alarm user” to any person who owns or leases an alarm system. ---PAGE BREAK--- Page 2 of 7 Ogden City Council Meeting: January 3, 2017 Clarifying that an additional permit is only required if an additional alarm system is separate in its use. Clarifying that the $25 fee must be filed with business licensing prior to the installation of a system and on or before the business license renewal due date. Prorating an initial user’s permit fee by half if submitted within six months of business license renewal. The addition of a $25 late penalty for all unpaid permit fees on or before the date due, with no late penalty charge if there is proof that the alarm system was installed after obtaining an initial business license but prior to annual renewal. November 15, 2016 A Council work session was held to discuss proposed fee changes. The following information was provided and discussed during the meeting: These fee changes are being proposed mid-year as an effort to streamline alarm permit fees with the business licensing process, because many businesses will begin renewing their licenses in January. The Administration described that the city responds to an average of 1,100 alarms each year and about 97% of these are false alarms. The fee changes are being proposed to reduce the overall false alarm calls for police service. The majority of false alarm calls are produced by commercial entities. With the Council discussion, there was an expressed desire to modify the requirement for commercial entities to obtain a permit and to possibly broaden this to non- residential entities. The Council discussed how to ensure accuracy in businesses self-reporting their number of alarm systems as part of the business licensing process. The Council discussed the possibility of including language to clarify residential tenant responsibilities for false alarm fees. The Administration described that the amendment to the dishonored check fee ultimately aligns with state law and ---PAGE BREAK--- Page 3 of 7 Ogden City Council Meeting: January 3, 2017 allows the city to recoup any additional costs required to obtain funding from a dishonored check. Checks are acceptable for all city services that require payment and currently checks are the most used method of payment. The city processes an average of 6,000 checks a month, and handles about 11 dishonored checks a month and more than 100 each year. Additional Background Fee changes are typically addressed in the budget process, but in some instances a pressing need may necessitate that these changes occur mid-year. FY 2017 City Council Budget Guidelines The Council recognizes that some fees are impacted by the calendar year, by seasonal activity, or by the calendars or scheduling constraints of other government agencies or businesses. Certain fees may need to be amended during the fiscal year and therefore cannot be amended with the annual budget process. Mid-year fee increase requests are due October 1 accompanied by sufficient rationale and justification. Fees to be implemented in January (excluding utilities) will be considered by the Council in December if all applicable information is received. Approximately 18 months ago, the City Treasurer’s office began working with the Police Department to actively bill for residential and commercial security alarm permits. Prior to this effort, permits were paid for and issued only if property owners contacted the Police Department directly to gain a permit. These efforts resulted in learning more about who has been issued permits and how many false alarms are occurring in different entities. Although residential entities have more than half of the issued permits, comparatively these only produce a small portion of the false alarm calls. Entities % of Issued Permits % of False Alarms Residential 62% 9% Non-residential 38% 91% There are more than 80 alarm companies in Ogden and so it has been difficult for the City to establish and maintain relationships ---PAGE BREAK--- Page 4 of 7 Ogden City Council Meeting: January 3, 2017 with each company. Aside from permits received, the City has no way of knowing whether an alarm is installed unless the alarm goes off. Alarm Permits Currently, all security alarm users (commercial, non-commercial and residential) are required to submit a permit and to pay a one- time permit fee of $25. Users of alarm systems with both a robbery and an intrusion alarm system are required to obtain separate permits for each system. Because permits are non- expiring, there is no current mechanism to update property owner contact information. A full name, address and telephone number are provided as part of the permit along with the name of the company installing, maintaining and/or servicing the alarm. The application also includes the names, addresses and telephone numbers of three individuals who know how to operate the alarm, and these individuals may be contacted by responding police on an as needed basis. The Police Department also furnishes a copy of the alarm permit to the named licensed alarm business or company that will monitor, maintain and service the system. The revenues for Security Alarm Permit Fees were approximately $8,850 for FY 2016, which is more than double of what was collected in FY 2015. This is likely a result of the City’s concentrated efforts to get more alarm users to submit permits. Security Alarm Permit Revenues FY 2016 $8,850 (as of May 2016) FY 2015 $3,575 FY 2014 $2,925 FY 2013 $4,250 FY 2012 $4,925 False Alarm Response Fee Ogden City charges a fee for excessive false burglary and robbery alarms that request a police response. Currently, false alarms are considered to be excessive if there are more than three false alarms from any one source within a 12-month period, and at this point a $100.00 service fee is charged. ---PAGE BREAK--- Page 5 of 7 Ogden City Council Meeting: January 3, 2017 The Police Department estimates a $50 cost in wages and overhead costs for each false response, in addition to other administrative costs to bill and collect the false alarm fee. False alarms also result in having less police officers available to address legitimate dispatch calls. An alarm permit may be revoked if a user has more than six false alarms within a 12-month period or if the alarm user fails to pay an assessed service fee. Once a permit has been revoked, the Police Department no longer responds to alarm system activities. A user can reinstate police response to an alarm by submitting a new permit and paying a reinstatement fee of $200.00, in addition to paying any unpaid service fees. Between FY 2015 and FY 2016 there has been a substantial increase in the revenues for False Alarm Response Fees. This is also a likely result of city efforts to work with alarm users. False Alarm Response Fee Revenues FY 2016 $10,425 (as of May 2016) FY 2015 $5,700 FY 2014 $3,900 FY 2013 $10,150 FY 2012 $8,240 Returned Check Fee The City currently allows personal checks to be used for various city payments. As permitted by Utah State Law, any checks that are returned are currently assessed a $20 service charge. Current Proposal The Administration has expressed that these proposed fee changes are intended to reduce the frequency of police calls for false alarms. Alarm Permits The proposal includes a change to the permitting process that would require only commercial users to submit a permit with an annual fee of $25, versus the current one-time permit fee that is currently required. ---PAGE BREAK--- Page 6 of 7 Ogden City Council Meeting: January 3, 2017 In conjunction with this change, the Administration intends to coordinate efforts with business licensing to have submitting an annual alarm permit included in the existing process to license a business. False Alarm Response Fee The proposal entails that a false alarm response fee will continue to apply to all users, regardless of whether an entity is commercial or non-commercial. This also entails that after a second false alarm occurs within a 12-month period a fee of $150 will be charged for each consecutive false alarm, as opposed to $100 that is now charged after a third false alarm. Returned Check Fee The proposal is to change the language from “returned check” to “dishonored check.” The proposal also includes having the $20 amount continue to be listed as the charge with the addition of an undefined amount of applicable collection costs. This change is being proposed to align with Utah State Code § 7-15-1, which allows for additional remedies and fees to recover the cost of collections for dishonored checks. The Administration anticipates that the fiscal impact of adding the returned check fee is immaterial and intended only to offset some of the staff costs for handling returned checks. ---PAGE BREAK--- Page 7 of 7 Ogden City Council Meeting: January 3, 2017 Alarm Fee Benchmark Comparison with Other Communities City Permit Fee Applicable Users Number of False Alarms in 12 months and Associated Fees 1 2 3 4 5 6 7+ Ogden City (current) $25 one-time All alarm users (residential, commercial and non- commercial) $0 $0 $0 $100 $100 $100 Revoke w/$200 to reinstate Ogden City (proposed) $25 annual Commercial $0 $0 $150 $150 $150 $150 Revoke w/$200 to reinstate South Ogden $50 one-time All alarm users $0 $0 $50 $100 Revoke w/$150 to reinstate Salt Lake City None All alarm users $100 $150 $250 $350 $450 $450 $450 Midvale (An $80 fee is also charged for 3+ false alarms in a month) None All alarm users $0 $0 $0 $0 $80 $80 Revoke and misdemeanor Sandy None All alarm users $0 $0 $0 $110 $110 $110 $110 Orem None All alarm users $0 $0 $0 $50 $75 $100 7 to 9 I $100 10+ I $200 Attachm 1. Alarm Permit Application Form 2. Administrative Transmittal 3. Draft ordinance for Alarm User Permit and False Alarms 4. Draft ordinance adding Alarms to the Fee Schedule and modifying the Dishonored Check Fee Administrative Memos Prepared by: Administrative Contact: Lisa Stout, [PHONE REDACTED] Administrative Contact: Brandee Johnson, [PHONE REDACTED] Administrative Contact: Gabe Johns, [PHONE REDACTED] Council Staff Contact: Amy Sue Mabey, (801)629-8629 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- 1 ORDINANCE NO. 2016-64 AN ORDINANCE OF OGDEN CITY, UTAH, AMENDING THE OGDEN MUNICIPAL CODE BY AMENDING SECTION 5-6-2 TO CHANGE THE DEFINITION OF ALARM USER; AMENDING SECTION 5-6-3 TO REVISE PERMIT REQUIREMENTS FOR ALARM USERS; AMENDING SECTION 5-6-6 TO REVISE SERVICE FEES AND PENALTIES FOR EXCESSIVE FALSE ALARMS; AND BY PROVIDING THAT THIS ORDINANCE SHALL BECOME EFFECTIVE IMMEDIATELY UPON POSTING AFTER FINAL PASSAGE. The Council of Ogden City hereby ordains: SECTION 1. Section amended. Section 5-6-2 of the Ogden Municipal Code is hereby amended to read and provide as follows: 5-6-2: [DEFINITIONS:] As used in this chapter: ALARM BUSINESS OR COMPANY: A person engaged in the sale, installation, maintenance, alteration, repair, replacement, servicing, or monitoring of an alarm system. "Alarm business or company" does not include the activities of: A. A person engaged in the manufacture and sale of alarm systems when that person is not engaged in the installation, maintenance, alteration, repair, replacement, servicing, or monitoring of alarm systems, and the manufacture or sale occurs only at a place of business established by the person engaged in the manufacture or sale and does not involve site visits at the place or intended place of installation of an alarm system; or B. An owner of an alarm system, or an employee of the owner of an alarm system who is engaged in installation, maintenance, alteration, repair, replacement, servicing, or monitoring of the alarm system owned by that owner. ALARM COMPANY AGENT: Any individual employed within the state of Utah by a person engaged in an alarm business. ALARM SYSTEM: Any equipment and devices assembled for the purpose of detecting and signaling unauthorized intrusion or entry into or onto certain premises, or signaling a robbery, burglary or other emergency in progress, and to signal the above occurrences either by a local or audible alarm or by a silent or remote alarm. The following devices shall not constitute alarm systems within the meaning of this definition: A. Devices which do not register alarms that are audible, visible, or perceptible outside the protected premises; B. Devices which are not installed, operated or used for the purpose of reporting an emergency to the Police Department; ---PAGE BREAK--- 2 C. Alarm devices affixed to motor vehicles; and D. Alarm devices installed on a temporary basis by the Police Department. ALARM USER: Any person who owns or leases an alarm system [in control of any building, structure or facility, or portion thereof, wherein an alarm system is maintained]. ANSWERING SERVICE: A telephone answering service providing among its services the receiving on a continuous basis through trained employees of emergency signals from alarm systems and the subsequent relaying of such messages by a live voice to the Police Department. AUTOMATIC DIALING DEVICE: A device which automatically sends over telephone lines, by direct connection or otherwise, a prerecorded voice message or code signal indicating the existence of an emergency situation that the alarm system is designed to detect. BURGLAR ALARM SECURITY AND LICENSING ACT: Burglar Alarm Security and Licensing Act, Utah Code Annotated section 58-65-101 et seq., as amended. BURGLARY OR INTRUSION ALARM SYSTEM: An alarm system signaling an entry or attempted entry into an area protected by the system. CENTRAL STATION: An office to which alarm systems are connected, where operators supervise the circuits, and where guards and/or servicemen may or may not be maintained continuously to investigate signals. CHIEF OF POLICE, CHIEF: Director of the Police Department of Ogden City or the Chief's designated representative. CITY COMMUNICATION CENTER: The City facility used to receive emergency and general information from the public to be dispatched to the respective police personnel. "City Communication Center" includes the dispatch facility operated by Ogden City as well as other governmental, dispatch facilities in the County used to receive emergency and general information from the public to be dispatched to the Police Department. EMERGENCY: The commission or attempted commission of a robbery, burglary or other criminal action. FALSE ALARM: Activation of any alarm system which results in a response by peace officers when a situation requiring a response by them or other emergency response unit in fact does not exist. It includes an alarm signal caused by condition of nature which are normal for that area and subject to control by the alarm business operator or alarm user. False alarm does not include an alarm signal caused by extraordinarily violent conditions of nature not reasonably subject to control. INTRUSION ALARM SYSTEM: An alarm system signaling an entry or attempted entry ---PAGE BREAK--- 3 into the area protected by the system. LOCAL ALARM: Any noise-making alarm device. PERMITTEE: The person to whom an alarm user permit is issued. POLICE DEPARTMENT: The Ogden City Police Department. ROBBERY ALARM SYSTEM: An alarm system signaling a robbery or attempted robbery or other physical endangerment. SECTION 2. Section amended. Section 5-6-3 of the Ogden Municipal Code is hereby amended to read and provide as follows: 5-6-3: [ALARM USERS; PERMITS REQUIRED:] A. [Required:] Every alarm user who is also engaged in any business within the city, as defined in section 5-1A-1 of this code shall obtain from the Police Department an alarm user's permit for each system prior to any installation of an alarm system. Users of alarm systems having both a robbery alarm system and a burglary or intrusion alarm system shall obtain separate permits for each system if they are distinct alarm systems. An application for a burglary or robbery alarm user's permit and an [initial] annual twenty five dollar ($25.00) fee shall be filed with the business license division prior to installation of the system and thereafter on or before the business license renewal due date, with a copy of the application to the Police Department. A fee for an initial user’s permit shall be prorated by half if within six months of business license renewal. Each permit shall bear the signature of the Chief of Police. The permit shall be physically upon the premises using the alarm system and shall be available for inspection by the police. B. [Information:] The alarm user's permit application shall set forth the full name, address and telephone number of both the owner or lessee on whose premises the system will be installed, operated or maintained and the name of the person or licensed alarm business or company installing, maintaining or servicing the alarm system, as well as the type of system to be installed, operated or maintained. The application shall further contain the names, addresses and telephone numbers of three individuals who may be contacted by police officers responding to an alarm. The person listed shall have authority to act for the alarm user in granting police officers access to any portion of the premises concerned and shall be knowledgeable in the basic operation of the alarm system. The application shall also contain such additional information as reasonably determined by the Chief of Police to be necessary to properly identify and locate the alarm user, the alarm business or ---PAGE BREAK--- 4 company installing, servicing or maintaining the alarm system, and the persons to be contacted in the event of the filing of an alarm report. C. [Copy Provided To Alarm Servicing Business:] The Police Department will furnish a copy of the alarm permit to the named licensed alarm business or company that will be monitoring, maintaining and servicing the system. The alarm user will notify the alarm business or company of any changes in names, addresses and telephone numbers of the individuals who may be contacted by police officers responding to an alarm. D. [Late Penalty; Exemption:] All permit fees shall increase by twenty five dollars ($25.00) if not paid on or before the date due. No late penalty shall be charged on an initial permit fee upon proof that the alarm system was installed after obtaining an initial business license but prior to annual renewal thereof. SECTION 3. Section amended. Section 5-6-6 of the Ogden Municipal Code is hereby amended to read and provide as follows: 5-6-6: [EXCESSIVE FALSE ALARMS; SERVICE FEES; PERMIT REVOCATION:] A. [Service Fees:] Whenever the City Communication Center receives an excessive number of false alarms from any one source, a service fee shall be assessed to the alarm user 1. The first [through third] and second false alarm in any twelve (12) month period shall not be considered excessive, and no service fee shall be assessed. 2. Upon receipt of the [fourth] third and any subsequent false alarm within any twelve (12) month period, the alarm user shall pay a service fee of one hundred fifty dollars ($[100.00] 150.00) for each false alarm to which the police respond. B. [Permit Revocation:] An alarm permit may be revoked for any of the following reasons: 1. An alarm user has more than six false alarms at the permitted address within any twelve (12) month period; or 2. An alarm user fails to pay an assessed service fee within thirty (30) days of the billing date. C. [Effect Of Permit Revocation:] Upon permit revocation, the Police Department shall cease police response to further activities of the alarm system. D. [Permit Issuance After Revocation:] Any alarm user whose user permit is revoked by the City and desires to reinstate police response, shall make new application for a ---PAGE BREAK--- 5 new alarm permit. Such new alarm permit shall not be issued until the alarm user pays: 1. A reinstatement fee of two hundred dollars ($200.00); and 2. Any unpaid service fees assessed under the revoked permit. SECTION 4. Effective date. This ordinance shall be effective immediately upon posting after final passage. PASSED, ADOPTED AND ORDERED POSTED by the Council of Ogden City, Utah this day of 2016. CHAIR ATTEST: CITY RECORDER TRANSMITTED TO THE MAYOR ON: MAYOR'S ACTION: Approved Vetoed MAYOR ATTEST: CITY RECORDER POSTING DATE: EFFECTIVE DATE: APPROVED AS TO FORM: __MAB 12/16/17___ Legal Date ---PAGE BREAK--- 6 * The headings, catchlines or catchwords suggested for use in the Ogden Municipal Code and which are bracketed at the beginning of sections or subsections, shall not be considered to be a part of the ordinance adopted herein. ---PAGE BREAK--- 2016-65 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---