10.a. Consolidated Police ServicesMEMORANDUM
TO: CITY COLlNClL
FROM: STEVEN N. ANNIBALI, CHIEF OF POLlC
SUBJECT: CONSIDERA'rION OF A COST PROPOSAL FOR PROVIDING
CONSOLIDATED POLICE SERVICES TO THE ClTY OF GROVER
BEACH
DATE: MAY 8, 2012
RECOMMENDATION:
It is recommended the City Council direct staff to forward the proposed cost
proposal and process for providing consolidated police services through an
Agreement for Joint Law Enforcement Services to the City of Grover Beach.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposal will generate a minimum annual increase of $341,200 of revenue to
the General Fund. If the proposal is accepted, it is recommended that a new part-
time Personnel Assistant position be created, which is estimated to cost $30,000.
Therefore, the net annual increase in General Fund revenue would be $31 1,200.
An additional $53,766 in revenue would be created to pay a portion of costs for the
new police building, which would result in increased revenue remaining in the Local
Sales Tax Fund. Lastly, $30,000 would be received annually to amortize the
liability cost for leave banks assumed that should be added to the City's reserves.
BACKGROUND:
On February 22, 201 1, the City Council was provided with a report of options regarding
provisions of joint fire and police dispatch services. One of the alternatives provided to
Council at that time was a broad overview of the concept of full police consolidation and
the potential cost savings that may result if such a concept was implemented. Council
directed staff to return with a more detailed analysis of the costs associated with providing
police services to the City of Grover Beach.
On May 11, 201 1, the City Council was provided with a more detailed cost estimate of
providing consolidated police services to the City of Grover Beach. At that time, the
City Council directed staff to invite the City of Grover Beach to participate in a joint council
meeting to discuss contracting police services from the City of Arroyo Grande. The City of
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 2
Grover Beach accepted the invitation contingent upon consideration of all consolidation
options, but at a later discussion instead requested Arroyo Grande to submit a formal
written proposal.
ANALYSIS OF ISSUES:
Over the past thirty years there has been much discussion and research as to the benefits
of full police consolidation in the Five Cities Area. Although past efforts may have had
merit, the collective sta,Ffing, budget, and/or community interest were not aligned in order to
make the concept a reality.
A comprehensive review of the current climate as it relates to police consolidation efforts
indicates the following window of opportunity that exists:
Both the cities of Grover Beach and Arroyo Grande are facing sizable budget deficits
in FY 2012-1 3.
PERS rates will be climbing dramatically for safety members.
The need to consolidate fire dispatch services is pending.
There are a number of potential vacancies in positions due to retirements and
potential retirements.
The proposed new Arroyo Grande Police Station building will be large enough to
provide for a full consolidation of police services.
Current Staffinq Comparisons
The Arroyo Grande Police Department operates with the following authorized positions:
26 sworn officers (Including management, supervision and line officers)
8 non-sworn civilians (Including. dispatchers, records, property and executive
secretary)
1 5 part-time positions (Including dispatchers crossing guards, neighborhood services,
cadets and reserve police officers)
There are current vacancies and the potential for additional vacancies in the next six
months.
The Grover Beach Police Department operates with the following authorized positions:
19 sworn officers (Including management, supervision and line officers)
8 non-sworn civilians (Including dispatchers, records, property and secretary)
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 3
There are two police officer vacancies and a minimum of three potential retirements within
the next year.
Proposed Conceptual Model
In January 201 1, both Chief Annibali and Chief Copsey met and developed a conceptual
model for consolidated police services for the service area that would include the cities of
Arroyo Grande and Grover Beach. Calls for service, minimum staffing levels, workload
analysis, operating budgets and demographics were all taken into account when identifying
the ideal proposed conceptual model.
The Conceptual Model Police Department has beer1 revised since that initial project and
currently is proposed to operate with the following authorized positions:
38 sworn officers (Including management, supervision and line officers)
12 non-sworn civilians (Including dispatchers, records, property and secretary)
16 part-time positions (Including dispatcher, crossing guards, neighbohood sen/ices,
cadets and reserve police officers)
The current Conceptual Model would result in the combined elimination of seven sworn
positions and three non-sworn positions. The non-sworn position reductions include two
dispatchers, one records clerk and one secretary.
Proposal Hig hliq htslservice LevelsIAssumptions
The current proposed Conceptual Model would provide for the following:
Five Year Costinn Model: The City proposes a five-year agreement. This will provide
for fiscally predictable law enforcement services and a long-term commitment for both
parties. It is proposed that the City would commit to the five-year cost proposal.
However, the City of Grover Beach would be responsible for increases to PERS
costs, pooled liability and workers' compensation insurance cost increases above the
base year for number of staff identified, as well as other unforeseen expenses that
will be outlined in the proposed agreement.
Agreement For Joint Law Enforcement Services: It is proposed the service be
provided through an Agreement for Joint Law Enforcement Services. The Agreement
will outline the services, terms and conditions. It is proposed to be structured similar
to the original joint services agreement for Fire when the Chief and Battalion Chief
positions were jointly funded, but this agreement will be much more extensive given
the complexity of the shared services provided.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 4
Professional, experienced and responsive police management: Provides for
administrative management skilled in the delivery and management of consolidated
services in like sized communities.
The resources of a larger, well equipped and trained Police Department: Provides for
the full resources of a department of 38 sworn and 12 full-time civilian personnel with
specialized response equipment including 2 traffic motorcycle units; 2 canine units; a
new Mobile Field Corr~mand Post; Mobile Emergency Response Vehicle; Tactical
Operations Vehicle and state of the art mobile data communications in every patrol
vehicle.
Increased and stable workforce: Provides for minimum available staffing to either city
of 5 to 6+ patrol officers and 5 full-time detectives. Increases policelfire
communications to the staffing level goal of nine full-time equivalents (two supervisors
and seven full-time and two part-time dispatchers) which would allow forconsolidation
of fire dispatch and achieve two dispatchers per shift at most times. Additionally, it
includes the sharing of a part-time training coordinator, community relations specialist,
high tech crimes specialist, dedicated traffic enforcement and in-house training
instructors.
Advisory Board: It is recommended that an advisory board be established with
representatives of both cities to provide coordination and input on policy issues. This
will help address potential concerns over loss of local control.
Cost Methodology
'The proposed cost is based on the actual salary and benefit costs for additional
staffing necessary to provide the service. Costs are based on top step of the salary
range so there will initially be additional savings before employees reach top step.
A charge of 30% the cost of command staff (Chief and two commanders) is included.
This is based on the calculation that the staffing charged to the City of Grover Beach
will account for approximately 30% of the work force in the Department.
A 7.5% administrative overhead cost is included to cover payroll, personnel, IT, and
other administrative costs.
The projected increase in equipment, services and supplies accounts is included.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 5
A facility usage fee is charged based on 30% of the cost of leasing a 14,500 square
foot building at $1.03 per square foot. The rental cost is based on the current rent
received from the old City Hall building.
It is proposed to accept current sick leave, vacation and compensation time balances
for Grover Beach employees hired. However, this results in a potential liability of up to
$450,000. It is proposed to amortize this liability cost over a 15-year period by
charging an annual fee of $30,000 for a 15-year period. The rate that the funds would
be accumulated should be sufficient to address any cash out of leave on an ongoing
basis.
With consolidation of dispatch services, it is also proposed to establish a charge to
the Five Cities Fire Authority, which is recommended to be based on the percentage
of calls for fire response. The percentage is applied to the dispatch staffing costs.
The cost proposal then includes a credit to Grover Beach from the revenue based on
the percentage of dispatch costs they would be paying.
Costs include provision of the animal services contract, narcotics and bomb task force
contributions.
The full cost of three leased patrol vehicles and one detective vehicle are
incorporated in the plan.
There is a 2% increase assumption in year three and a 3% increase assumption
planned into years four and five.
Initial one time start up costs would be approximately $173,612. These costs are
based on processing and testing incoming employees, equipping all officers and
vehicles and information technology hardware and software. Start up costs could be
recovered from the sale of Grover Beach Police Department assets, COPS funding or
other consolidated savings.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 6
Summarv of Cost Proposal
The following is a summary of the cost proposal:
Personnel:
12 Police Officers
1 Support Services Supervisor
3 Support Services Technicians (SST)
1 Part-Time Support Services Technician
30% Direct Cost for Command Staff
7.5% Administrative Overhead
Animal Control
Narcotics 1 Bomb Task Forces
Liability Insurance
Equipment, Services and Supplies
Facility Fee
Amortization of Leave Liability
Five Cities Fire Authority Revenue
Total
The following is a summary of the five-year cost proposal:
Contract Proposal Costs
Year 3 Year 4 Year 5
Year 1 Year 2 2% increase 3% increase 3% increase
Line Item Account
Salaries and Benefits $2,457,606 $2,457,606 $2,506,758 $2,581,961 $2,659,420
Supplies and Services $373,118 $373,118 $380,580 $391,998 $403,758
Other (net) (61,804) (61,804) (63,640) (64,558) (67,395)
Total $2,768,920 $2,768,920 $2,887,339 $2,973,959 $3,063,177
A detailed cost proposal is attached. Based on staffs analysis, this will result in
comparable savings to the City of Grover Beach. It is estimated that their savings will be
significantly less when compared to their projected budget with budget savings from
additional cuts and concessions anticipated for FY 2012-1 3, but still remains well above
$100,000. The same would be true for the City of Arroyo Grande savings if likely
decreases that will be necessary if the consolidation proposal is not successf~~l were
factored in. Therefore, projected savings are relatively consistent between the two cities
when compared to base budgets.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 7
It is staffs understanding that the City of Grover Beach is considering additional staffing
reductions, which would further reduce or eliminate projected savings if compared to the
reduced cost. In that case, it would become a policy decision whether to achieve budget
savings through a reduction of public safety staffing in both agencies or to enhance service
levels by combining forces.
Five Cities Fire Authority Joint Dispatch Proposal
The Arroyo Grande Police Department currently dispatches fire calls for Arroyo Grande.
The Grover Beach Police Department dispatches fire calls for Grover Beach and Oceano.
This has been identified as a significant issue preventing the Fire Authority from realizing
some of the full benefits of consolidation. As a result, one of the most significant
benefactors of the consolidation proposal will be the Five Cities Fire Authority due to
enhanced dispatch services.
It is recommended that a charge to the Five Cities Fire Authority be developed. The
proposed charge is based on the percentage of total calls that are for fire response applied
to the total dispatch staffing cost. This equals 18% of the total cost of $1 ,I 08,741, which is
$199,573. It is then recommended that the City of Grover Beach be reimbursed for their
share of this revenue based upon the percentage of dispatch staff that they will pay for,
which is 46%. This reimbursement is included in the cost proposal. The Fire Authority fee
will also increase for each agency by the percentage share that each city pays for fire
services.
Therefore, the net effect for Arroyo Grande and Grover Beach is as follows:
Arroyo Grande Fire Authority dispatch revenue (54%) $1 07,769
Arroyo Grande increased Fire Authority cost (45%) $89,808
Arroyo Grande net effect of Fire Authority dispatch charge $17,961
Grover Beach Fire Authority dispatch revenue (46%) $91,804
Grover Beach increased Fire Authority cost (35%) $69,851
Grover Beach net effect of Fire Authority dispatch charge $21,953
Start Up Costs
In order to ensure the success of the consolidation and avoid disparate equipment, it is
essential that integrating members receive the same equipment and materials that are
currently issued in the Arroyo Grande Police Department. It is anticipated that the recovery
of start up costs could be obtained by the City of Grover Beach through the sale of police
department assets (i.e. vehicles, equipment, furnishings, etc.) and the potential use of
COPS funds.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 8
The proposed Conceptual Model start-up costs are estimated to be as follows:
Testing and evaluations on thirteen officers and six SST $23,850
Fully outfit fourteen sworn officer per AGPD standards $59,800
Equipment and installation on three patrol vehicles $30,000
Equipment and installation on one unmarked vehicle $4,000
Additional IT hardware including three Mobile Data $47,960
Computers, server upgrades, software, data migration cost $8,000
Total estimated start up costs $173,612
Hiring of Grover Beach Staff
The following terms and conditions are proposed with regard to hiring existing staff from
the City of Grover Beach:
No layoffs of sworn staff would be necessary.
It would be necessary for the City of Grover Beach to offer the CalPERS Golden
Handshake program to their Police Chief.
All staff hired would be required to pass a physical exam, psychological exam and a
background investigation as required for any new hire employee.
Grover Beach Sergeants would be offered Senior Officer positions, which will result in
a net increase in their salary and benefits.
One Lieutenant would be offered an Administrative Sergeant position and his salary
would be Y-rated to avoid any reduction in pay.
Staff would be placed in the next highest pay step when compared to their current
salary.
Leave balances would be transferred and an annual fee would be charged in the
agreement in order to amortize the cost of this liability over a 15-year period.
The City of Arroyo Grande would provide the CalPERS Golden Handshake program
to dispatchers. One employee is anticipated to participate.
Positions would not be available for one City of Grover Beach dispatcher, one records
clerk and the existing Chiefs Secretary. Dispatchers and/or the records clerk could fill
two part-time dispatcher positions.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 9
Labor Unions
A number of meetings have been held with representatives from both the Arroyo Grande
and Grover Beach police officers' associations. The Arroyo Grande Police Officers
Association has indicated they support the proposal as outlined. The Grover Beach Police
Officers' Association has not yet taken a position.
Facility
This recommended proposal is contingent upon the approval of Measure A-12. If the
measure fails, the terms of the agreement would need to be reconsidered.
Process
It is recommended the City Council authorize staff to submit the proposal to the City of
Grover Beach. It is anticipated that it would be presented to and considered by the Grover
Beach City Council. If they chose to proceed, it is then recommended they identify any
issues of concern and a joint committee be established to address remaining items, which
would consist of the police chiefs, city managers, and two representatives from each city
council. If agreement on all issues is reached, staff would then draft the final agreement
for consideration by each city council.
One of the issues of greatest concern regarding consolidation is often how to maintain
identity of both agencies. As a result, it is recommended that recommendations regarding
identification of the Department and equipment be developed by the joint committee.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
Recommended Alternative: It is recommended that the City Council direct staff
to submit a formal proposal to the City of Grover Beach for contract police
services provided by the City of Arroyo Grande;
Direct staff to modify the terms and submit to the City of Grover Beach;
Direct staff to instead develop a proposal for joint dispatch services as a first
step and reconsider full police consolidation in the future;
Direct staff to take no further action at this time regarding police consolidation;
Provide direction to staff.
ADVANTAGES:
The consolidation of police services with the City of Grover Beach would provide for
economy of scale, operational efficiencies and increased service levels for both cities.
Additionally, a reduction in the duplication of like services and significant cost efficiency
benefits would be realized. This will provide increased revenue that can be instrumental in
addressing the projected budget shortfall.
Agenda Item 10.a.
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ClTY COUNCIL
CONSIDERATION OF A COST PROPOSAL FOR PROVIDING CONTRACT
POLICE SERVICES TO THE ClTY OF GROVER BEACH
MAY 8, 2012
PAGE 10
DISADVANTAGES:
Consolidation efforts may present concerns on the part of Grover Beach regarding local
control and identity, but staff believes there are ways to address these concerns. The
Grover Beach City Council and Police Officers' Association will also likely have concerns
regarding the probable need for layoffs of positions that would not be hired by the City of
Arroyo Grande.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICA'TION AND COMMENTS:
The agenda was posted in front of City Hall on Thursday, May 3, 2012 and public notice
posted on the City's website on Friday, May 4,2012. No public input has been received to
date.
Attachments:
1. Cost Proposal
2. Organization Chart
Agenda Item 10.a.
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Attachment 1
Line
ltem Llne ltem Account
Salaries and Benefits
Supparl Service Supv (1) I Techs (3)l Part-bme (1)
Police Omcers (13)
Overtime (5% of Salaries)
Wohers Compensation
VacaUon Buyback
Sick leave Buyback
ShiR Differential (8 posiUons x 12 hours per day 9.50)
30% Direcl Cost
7 5% lndired AdminislraUve Overhead
Direcl and indired costs
Supplies and Services
Ofnce Expenses
Poslage
Special DeparLmenl Supplies
Safely Equiprnenl I Clolhing
Conlraclual Services
Preemployment Physicals
Job Reuuibnenl Expense
Animal Conlml Semces
Canine Pmgram
Semces - Mandated Forensic
Task Form Sem'ces
Uve Scan Fingerprinting Expenses
Telecammunication
TraveUConferencesTTra~ning
TuiUon Reimbursement
Memberships 8 Subscriptions
Public Relations
Rent - Buildings and Land
Liability Insurance - JPA
Mainlenance of Vehicles
Maintenance of OBce Equipment
Maintenance I Repair of Machinery and Equipment
Maintenance of Buildings
Maintenance of Gmunds
Maintenance of Communications
Maintenance of Automated Sem'ces
Gas and Oil
Debt Service
Lease Purchase payments
Data Pmcessing Equiprnenl
Subtotal
Liability for Leave Banks
Revenue from FCFA for dispatch sewices
Final Total
Contract Proposal Costs
Law Enforcement and Public Safety Communications Center
May 8,2012
201212013 Start up
Sub Totals Budget Costs Comments
Shared cost of management personnel
indirect wst of uly services such as HR. Finance. P~yroli and IT
$59.800 13 Police Ofncers x 94.600
$23.850 13 Police Omcer evals and 5 Supparl Service Employees evals x $1.325
Venzon Bmadband and T-1 P-lop line added (8528)
Based on 30% of wsl for 14500 sqfl building @ 1.03 per sql7
$346300 3 new Dodge Chargers and 1 new Dodge Avenger
85.962 3 new Dala 91 1 MDCIMDVs. 8.000 dala upgrade
873.1 18 873.1 18
$2,830,724 $173.61 2
30.000
(91.804)
$2,708,920
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Arroyo Grande I Grover Beach
Consolidated Police Conceptual Model
(Revised May 3,2012)
(1) Secretary h
Patrol Services
Commander 4 Support Services
Commander I
Sergeant
(1) School
Resource Ofcr Sergeant
Investigations
Igeant I (1) Neighborhood
Services Tech I
(4) Ofcr
(2) K-9
0 fcrs (2) Support Svcs Supervisors
(1) Sr. Ofcr
(4) Ofcr H (1) Training I Permits
(Part-time) I
(7) support
Svcs Tech
(Dispatchers)
Squad 3 Squad 4
Sergeant Sergeant
(2) Reserve
Ofcrs
(1 ) Property I
Evidence
Support Svcs
(2) Motor
Ofcrs
(1) Reserve
Detective
High Tech
Crimes
(~art-time) n (1) Sr. Ofcr (1) Sr. Ofcr 1 (4) Ofcr 1 1 (4) Ofcr I (2) support
Svcs Tech
(Dispatchers)
(~art-time)
Guards The pro~osed conceptual model is as follows:
1 Chief of Police
1 Secretary
2 Commanders
6 Sergeants
5 Senior Officers
24 Police Officers
2 Dispatch1 Records Support Svcs Supervisors
7 Support Svcs Tech (Dispatchers)
1 Records Support Svcs Tech
1 PropertylEvidence Support Svcs Tech
2 Support Svcs Tech (Dispatchers) (Part-time)
1 Reserve Detective - High Tech (Part-time)
1 TraininglPermits (Part-time)
1 Community Relations (Part-time)
1 Neighborhood Svcs Tech
2 Cadets
6 Crossing Guards
(1) Records
Support Svcs I Tlch 1
(2) Cadets
(Part-time) I I
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