It is recommended that the Mayor and City Commission approve the terms of an agreement with PMAM-ATB Corporation, pursuant to Request for Proposals (RFP) 2022-005-ND for fire and police false alarm billing system; and authorize the City Manager and City Clerk to execute the agreement with PMAM-ATB Corporation.

Pursuant to City Ordinance Section 42-81 – 42-92 and Section 50-15, the City's Police and Fire Departments are required to maintain a false alarm billing system to track false alarms received by the departments.  A false alarm is the accidental or intentional activation of a burglar or fire alarm system that results in the Police or Fire Department needing to unnecessarily deploy resources.

The Police and Fire Departments report approximately 2,807 false intrusion alarms and 2,639 false fire alarms annually. For burglar alarms, a fee ranging from $50 (for the fourth false alarm) up to $ 200 (for the sixth and subsequent false alarms) is assessed for false alarms in an annual period. For fire alarms, a fee ranging from $250 (for the third false alarm) up to $1,000 (for the thirteenth and subsequent false alarm) is assessed for each false alarm in an annual period.

For approximately five years, the City of Miami Beach (the "City") has had an agreement for the management of the City's false alarm billing system with PMAM-ATB Corporation.  The current agreement expired on October 25, 2021.  The Mayor and City Commission approved a month-to-month extension at its October 13, 2021 meeting until a new agreement is executed.  The current agreement is based on a revenue-sharing split of 81% to the City.

On October 13, 2021, the Mayor and City Commission authorized the issuance of Request for Proposals (RFP) 2022-005-ND for Fire and Police False Alarm Billing System.  RFP responses were due and received on December 10, 2021.  The City received a total of three (3) proposals from the following firms: Alarm Program Systems, LLC, CentralSquare Technologies, LLC, and PMAM-ATB Corporation.  The proposal from CentralSquare Technologies, LLC was deemed non-responsive for failure to include a minimum monthly percentage of gross revenue, as required in the RFP, and could not be further considered.  On January 4, 2022, an evaluation committee appointed by the city manager convened to consider proposals received.

The evaluation process resulted in the ranking of proposers in the following order:

1st – PMAM-ATB Corporation

2nd – Alarm Program Systems

On April 6, 2022, via Resolution 2022-32108, the Mayor and City Commission authorized the Administration to enter into simultaneous negotiations with PMAM-ATB Corporation, the top-ranked proposer, and Alarm Program Systems, the second-ranked proposer. The Resolution provided that the final negotiated agreement be subject to the prior approval of the Mayor and City Commission.

As directed by the City Commission, staff proceeded with simultaneous negotiations with both firms. Pursuant to staff’s request, on June 9, 2022, the firms submitted their best and final offers for revenue share.  While Alarm Program Systems initially submitted the highest revenue share to the City (81%), negotiations with the firm became protracted over the matter of the interface required between the false alarm system and the New World computer-aided dispatch (CAD) system utilized by the fire and police departments, particularly because the RFP required the system provider to pay for the integration. The interface did not affect PMAM-ATB as its system had been previously integrated. After several meetings with Alarm Program Systems and New World, in late January 2023, New World provided a quote of $32,000 to interface the City’s CAD system with Alarm Program Systems’ false alarm system. On February 16, 2023, Alarm Program Systems, LLC withdrew its bid.

As a result of the withdrawal by False Alarm System, staff finalized negotiations with PMAM-ATB Corporation and drafted the terms of an agreement, attached as Exhibit A.

Since 2016 PMAM has provided the City an 81% of monthly gross revenue (approximately $ 20,250 annually) as a revenue share.  Due to certain cost escalations (e.g., office lease increases, increased salaries, health and other employee benefits) experienced by PMAM-ATB over the last two (2) years, as well as a lower number of false alarms than expected, PMAM is now offering a revenue share of 76% of gross revenue, which will result (based on current false alarm reports) approximately $19,000 annually.

Despite the slightly reduced revenue, the Administration is recommending awarding a contract to PMAM-ATB as there is a limited number of system providers in this market. Further, awarding a contract to PMAM-ATB will not require Police and Fire Department staff to expend the resources to implement a new system if one were to be selected.

The RFP is intended to be revenue-generating and should not create any operational costs for the City. 

After reviewing the negotiation process and the proposal from PMAM-ATB, it is recommended that a contract be awarded to PMAM-ATB to continue the current false alarm billing system. The current system has been implemented for approximately five years with minimal issues or complaints from residents. Further, PMAM-ATB has been timely with the revenue payments due to the City.

Therefore, it is recommended that the Mayor and City Commission adopt the Resolution approving the material terms of an agreement, pursuant to Request for Proposals (RFP) 2022-005-ND for fire and police false alarm billing system; and authorizing the City Manager and City Clerk to execute an agreement with PMAM-ATB Corporation.