§4604-01 Compensation for Operation of Auxiliary Fire Alarm Systems (Effective July 1, 2009)

   (a)   Scope. This section sets forth the compensation required to be paid to the City of New York pursuant to Administrative Code §15-127(a)(1) by a central station company or a proprietary central station, as those terms are defined in R901-02(b), for operation of an auxiliary fire alarm system.

   (b)   Definition. The following term shall, for purposes of this section and used elsewhere in the rules, have the meanings shown herein:

Auxiliary Fire Alarm System. The re-transmission or other reporting to the Department of alarm signals from the monitoring of fire alarm systems by a central station company, proprietary central station, or any other person or company that receives compensation or derives any other financial benefit therefrom.

   (c)   Required Compensation. Each central station company shall pay to the Department, on an annual basis, or such other basis as the Department may require or authorize, its proportionate share of the cost associated with its use of the Department's fire alarm communications system, as calculated in accordance with the provisions of this section.

   (d)   Computation of Compensation.

      (1)   The Department will calculate, not less frequently than on an annual basis, the compensation each central station company is required to remit to the Department, in accordance with the computation set forth in this subdivision.

      (2)   Compensation shall be based on the costs of operating the Department's communications offices for the preceding fiscal year, allocated according to the number of fire alarm systems monitored by each central station company as of July 1st of the preceding fiscal year, and the volume of central station company alarm traffic generated by each central station company in the preceding fiscal year.

      (3)   Step One: Calculation of Total Central Station Company Cost. This amount will be calculated as follows:

            (A)   the total alarm traffic handled by the Department's communications offices is calculated for the preceding fiscal year;

            (B)   the alarm traffic generated by all central station companies ("total central station alarm traffic") is calculated as a percentage of the total alarm traffic for the preceding fiscal year; and

            (C)   the total cost of operating the Department's communications offices is calculated for the preceding fiscal year ("total operating cost") and is multiplied by the percentage representing the total central station alarm traffic in the preceding fiscal year, to obtain the cost attributable to the total central station alarm traffic for the preceding fiscal year ("total central station cost").

      (4)   Step Two: Calculation of Individual Central Station Compensation Amounts. These amounts will be calculated as follows:

            (A)   the total number of fire alarm systems monitored by central station companies as of July 1st of the preceding fiscal year, and the number of fire alarm systems monitored by each central station company as of such date, are tabulated, and the percentage of the total number of monitored fire alarm systems is calculated for each central station company ("alarm system allocation");

            (B)   the total central station alarm traffic generated by each central station company is separately tabulated for the preceding fiscal year, and each central station company's percentage of the total central station alarm traffic is calculated ("alarm traffic allocation");

            (C)   the two percentages representing the alarm system and alarm traffic allocations are averaged (added together and divided by two) to obtain a single combined percentage for each central station company ("total allocation"); and

            (D)   each central station company is charged the percentage representing its total allocation of the total central station cost for the preceding fiscal year.

   (e)   Billing and Payment.

      (1)   The Department will bill each central station company on or about October 1st for the coming year, or such other date as the Department may designate.

      (2)   Each central station company shall remit payment in full no later than 60 days of receipt of the invoice.

      (3)   Any central station company that fails to timely remit payment shall additionally be liable to the Department for interest on the compensation due and owing to the Department. Such interest shall be computed for the period from the date of the bill to the date of payment, based on the amount of the bill and the rate of interest set forth in Section 5004 of the New York Civil Practice Law and Rules. Such interest shall constitute part of the compensation required by this section.