Consolidation PP 05-08-12 (2)City of Arroyo Grande COST PROPOSAL FOR CONSOLIDATED POLICE SERVICES
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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 $311,200. 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.
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BACKGROUND
On February 22, 2011, 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.
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BACKGROUND
On February 22, 2011, 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.
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BACKGROUND
On May 11, 2011, 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 Grover Beach initially accepted the invitation contingent upon consideration of all consolidation options, but at a later discussion requested Arroyo Grande to submit a formal written
proposal.
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ANALYSIS
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 staffing, budget, and/or community interest were not aligned in order to make the concept a reality.
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ANALYSIS
A comprehensive review of the current climate as it relates to police consolidation efforts indicates the following window of opportunity that currently exists:
Both the
cities of Grover Beach and Arroyo Grande are facing sizable budget deficits in FY 2012-13.
PERS rates will be climbing dramatically for safety members.
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ANALYSIS
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.
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CURRENT STAFFING 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)
16 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.
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CURRENT STAFFING COMPARISONS
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)
There are two police officer vacancies and a minimum of four potential retirements within the next year.
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PROPOSED CONCEPTUAL MODEL
In January 2011, 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.
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PROPOSED CONCEPTUAL MODEL
The Conceptual Model Police Department has been 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)
15 part-time positions (Including dispatcher,
crossing guards, neighborhood services, cadets and reserve police officers)
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PROPOSED CONCEPTUAL MODEL
Arroyo Grande authorized sworn = 26
Grover Beach authorized sworn = 19
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Conceptual model authorized sworn = 38
Reduction of sworn staff = 7*
*Includes GBPD retirements of Chief, Lieutenant, Sergeant and two sworn vacancies. AGPD includes two sworn vacancies
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PROPOSED CONCEPTUAL MODEL – SWORN STAFF
Arroyo Grande authorized sworn = 26
Grover Beach authorized sworn = 19
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Conceptual model authorized sworn = 38
Reduction of sworn staff = 7*
*Includes GBPD retirements of Chief, Lieutenant, Sergeant and two sworn vacancies. AGPD includes two sworn vacancies
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PROPOSED CONCEPTUAL MODEL – NON- SWORN STAFF
Arroyo Grande authorized non- sworn = 8
Grover Beach authorized non-sworn = 8
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Conceptual model authorized non-sworn = 12
Reduction of sworn
staff = 4*
*Includes GBPD layoffs of three and a AGPD anticipated retirement vacancy
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PROPOSED HIGHLIGHTS/ SERVICE LEVELS/ ASSUMPTIONS
The current proposed Conceptual Model would provide for the following:
Five Year Costing 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.
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PROPOSED HIGHLIGHTS/ SERVICE LEVELS/ ASSUMPTIONS
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.
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PROPOSED HIGHLIGHTS/ SERVICE LEVELS/ ASSUMPTIONS
Professional, experienced and responsive police management:
Provides for administrative management skilled in the delivery and management of consolidated services in like sized
communities.
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PROPOSED HIGHLIGHTS/ SERVICE LEVELS/ ASSUMPTIONS
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 Command Post; Mobile Emergency Response Vehicle; Tactical Operations Vehicle and state of
the art mobile data communications in every patrol vehicle.
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PROPOSED HIGHLIGHTS/ SERVICE LEVELS/ ASSUMPTIONS
Increased and stable workforce:
Provides for minimum available staffing to either city of 5 to 6+ patrol officers and 5 full-time detectives. Increases police/fire communications
to the staffing level of nine full-time equivalents (two supervisors and seven full-time and two part-time dispatchers) which would allow for consolidation 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.
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PROPOSED HIGHLIGHTS/ SERVICE LEVELS/ ASSUMPTIONS
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.
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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.
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COST METHODOLOGY
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.
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.
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COST METHODOLOGY
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.
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COST METHODOLOGY
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.
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COST METHODOLOGY
The following is a summary of the cost proposal:
Personnel: $2,116,406
12 Police Officers
1 Support Services Supervisor
3 Support Services Technicians (SST)
1 Part-Time Support Services Technician
30% Direct Cost for Command Staff $182,470
7.5% Administrative Overhead $158,730
Animal Control $84,000
Narcotics / Bomb Task
Forces $24,000
Liability Insurance $67,659
Equipment, Services and Supplies $143,693
Facility Fee $53,766
Amortization of Leave Liability $30,000
Five Cities
Fire Authority Revenue ($92,872)
Total $2,767,852
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SUMMARY OF COST PROPOSAL
The following is a summary of the five-year cost proposal:
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SUMMARY OF COST PROPOSAL
A detailed cost proposal is attached. Based on staff's 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 2012-13, 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 successful were factored in. Therefore,
projected savings are relatively consistent between the two cities when compared to base budgets.
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SUMMARY OF COST PROPOSAL
It is staff’s 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.
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FIVE CITIES FIRE AUTHORITYJOINT DISPATCH PROPOSAL
It 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.
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FIVE CITIES FIRE AUTHORITYJOINT DISPATCH PROPOSAL
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 $1,108,741, 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.
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FIVE CITIES FIRE AUTHORITYJOINT DISPATCH PROPOSAL
Therefore, the net effect for Arroyo Grande and Grover Beach is as follows:
Arroyo Grande Fire Authority dispatch revenue (54%) $107,769
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
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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.
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START UP COSTS
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, software, data migration cost $8,000
Total estimated start up costs $173,612
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HIRING OF GBPD 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.
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HIRING OF GBPD STAFF
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.
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HIRING OF GBPD STAFF
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 Chief’s Secretary. Dispatchers and/or the records clerk could fill two part-time dispatcher positions.
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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.
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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.
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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.
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ALTERNATIVES
It is 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.
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ADVANTAGES
It 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.
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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.
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