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02-05-2019 - AGENDA ITEM 10 RING RESIDENTIAL REBATE PROGRAMAGENDA ITEM NO. 10 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: February 5, 2019 TO: Mayor and City Council FROM: Chris Freeland City Manager SUBJECT: RING RESIDENTIAL REBATE PROGRAM RECOMMENDATION: It is recommended that Council provide staff direction. DISCUSSION: At the December 18, 2018 City Council Meeting, the City Council approved Councilwoman Letty Lopez- Viado's request to conduct research into a potential partnership with Ring Home Security. Ring is one of several businesses that have created high tech products to help provide better security of homes and businesses. Ring is known for their Video Doorbell System that has been installed on homes throughout the nation. The Ring Video Doorbell is installed as a replacement to a household door chime bell. The Ring Doorbell allows the resident to have continued video footage of their front porch and other areas of their yard/driveway. There are various options and accessories available from Ring to provide one-on-one interaction with visitors through a mobile application, security lights, and chime alarms. With the invention of the Ring Video Doorbell System, communities have expressed an interest to find opportunities to partner with Ring to help deter crime in their community. As a result, the Ring Residential Rebate Program has been embraced by several Southern California cities, including La Habra, Alhambra, Arcadia, Diamond Bar, Temple City, and Monrovia. This program allows residents to receive a $100 credit on the purchase of select products from Ring, with cities providing $50 per household and Ring matching the $50, for a full $100 discount. As a bonus, residents would then receive additional credit or discounts on other products purchased. Staff contacted Arlo, Nest, Ring and Canary, who have similar products for home safety, to see if they were interested in a partnership with the community. Ring was the only company to respond that they were interested. Ring Product Discount Program If the City of West Covina was to partner with Ring on the Residential Rebate Program, it would be structured similar to the City of La Habra, where the following discounted products would be eligible through the $100 rebate program: • One (1) product per household can be purchased with the $100 ($50 City/$50 Ring) discount off the retail price through the Ring website. *The discounted prices are subject to change: o Video Doorbell 2- $99 o Video Doorbell Pro- $149 o Spotlight Cam Battery- $99 o Spotlight Cam Wired- $99 o Floodlight Cam- $149 • Up to two (2) additional products per household can be purchased with a $30 discount, from Ring off the retail price. *The discounted prices are subject to change: o Video Doorbell 2- $169 o Video Doorbell Pro- $219 o Spotlight Cam Battery- 169 o Spotlight Cam Wired- 169 o Floodlight Cam- $219 • Up to three (3) accessories per household can be purchased at 20% off the retail price through Ring's website. The initial $100 Residential Rebate Program is provided via promotional code, one per household address, valid for a single -use and cannot be used towards previously purchased Ring products. Receiving a promotional code does not guarantee a discounted price as it is on a first -come -fast -served basis. Also, there are additional fees for the Ring subscription to record and save video footage from the Ring Video Door Bell and to have access to the video through the Ring mobile application if a resident wants this optional service. Ring requires a minimum investment of $10,0000 from the City of West Covina to launch the Ring Residential Rebate Program is $10,000. OPTIONS: The City Council has the following options: 1. Appropriate $10,000 for the Ring Residential Rebate Program for Fiscal Year (FY) 2018-19 from Fund Balance; 2. Incorporate program into the FY 2019-20 Budget discussion; 3. Receive and file; or 4. Provide alternative direction. Prepared by: Nikole Bresciani, Assistant City Manager/Public Services Director Additional Approval: Shawn Granger, IT Manager Fiscal Impact Fiscal Year: 2018-19 Budgeted Y/N: N FISCAL IMPACT: The impact to the General Fund for FY 2018-19 would be $10,000 if Council's directive is to proceed with the Ring Residential Rebate Program. The program is not eligible to be funded with Community Development Block Grant funds. CITY COUNCIL GOALS & OBJECTIVES: