MEMORANDUM. Robert V. Belleman, City Manager. FROM: Michael J. Cecchini, Police Chief Karey Prieur, Interim Fire Chief. DATE: May 10, 2012

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1 MEMORANDUM TO: Robert V. Belleman, City Manager FROM: Michael J. Cecchini, Police Chief Karey Prieur, Interim Fire Chief DATE: May 10, 2012 RE: Consolidation Plan for the Fire and Police Departments ISSUE: The current combined operating budget for the Bay City Police and Fire Departments is $10,487,461. The Police Department s operating budget is $5,377,768, which is allocated to services including Patrol Operations, Community Policing, and Criminal Investigations. The Fire Department s operating budget is $5,109,693 for services including Fire Fighting / Suppression and Fire Prevention. Other Post Employee Benefits (OPEB) liability for both departments is $1,533,817. The Police Department s OPEB liability is $805,275 and the Fire Department OPEB liability is $728,542. The OPEB liability for each department would decrease in direct proportion to the reduction of employees. The projected budget based solely on property tax revenue for police and fire services is $8,600,000. This results in a projected operating budget deficit of $1,887,461. FACTS: A Police and Fire Reorganization Committee was formed to research different options of cost cutting measures and revenue enhancements. This committee consisted of members of both the Police and Fire Departments. Several of the options that were explored include the following: Cutting Infrastructure: Due to prior recent budget cuts, the Bay City Police and Fire Departments have been forced to make extensive cuts in infrastructure and equipment. This has resulted in cuts in services to the citizens of Bay City. To maintain the functionality of the departments, no further cuts can be made to operating costs. Any further significant budget cuts can only be made by reducing personnel costs.

2 Robert V. Belleman, City Manager 2 Cutting Police Staffing: The Bay City Police Department is currently operating at its lowest level. Patrol Operations has been cut to 27 officers and 6 sergeants to provide 24 hour services. Support Operations has been cut to 3 detectives and 1 sergeant to conduct criminal investigations. The drug enforcement team was reduced from 6 to 4 officers as of January Any additional staffing reductions will result in drastic cuts to police services. 12 Hour Shifts for the Police Department: This is a contractual issue and will be implemented shortly. Crime Reporting via the Internet or Phone: This is used to report minor property crimes for insurance purposes. A police officer or a civilian would be required to sit at the station to take these reports. This method of taking criminal reports is used by larger police departments due to very slow response times to property crimes. It is unknown what, if any, cost savings this method would provide. Part-Time Police : There is a potential cost savings due to lower wages and no fringe benefits. There may be training issues with part-time police officers. In addition, it costs the same to hire a part time officer as a full time officer and there is a concern with possible turnover rates. This is a contractual issue that may be implemented in the future and the recently approved contract with P.O.A.M. allows for up to ten part time police officers. It is unknown what all the cost savings this method would provide. Absorbing Departments / Responsibilities: The possibilities that were explored included assuming some of the Parks Department s duties, Code Enforcement activities, and flushing water hydrants to alleviate the Water Department. This option does not appear to provide any significant cost savings but it could help other city departments to provide additional services elsewhere. Contracting Law Enforcement with Bay County Sheriff Department: This option is possible. The level of service provided would depend on what the City of Bay City would be willing to fund. Other than what is negotiated in the contract, the city would be relinquishing control of law enforcement. The current wages, fringes, and OPEB for the Bay City Police Department is $3,370,895 for patrol and $1,131,478 for command for a total of $4,502,373. The wages and fringes for an entry level deputy is $62,060 and rises to $79,183 after six years of employment. The wages and fringes for a sergeant is $83,142 and $87,101 for a lieutenant. The total cost of wages and fringes for 40 deputies, 2 lieutenants, and 8 sergeants (our current staffing levels minus the administration) would be between $3,321,738 and $4,006,658. This cost does not include OPEB, which could not be researched or obtained in time due to the hard deadline. This cost also does not include patrol vehicles, uniforms, or equipment, which would need to be purchased directly by the city. In addition, this cost does not include the overtime budget that would be required if the city contracted for minimum staffing. Finally, the Sheriff indicated that additional administrative and clerical personnel would be required to maintain services. Current contracts the Bay County Sheriff Department has to provide law enforcement services can be terminated by either party with 60 days notice. The cost to reestablish the Bay City Police Department is unknown but would be substantial.

3 Robert V. Belleman, City Manager 3 Public Safety Millage: A Public Safety Millage could be introduced to alleviate the current budget deficit. According to the City Attorney, a millage request would be a headlee override, which for Bay City would be 2 mills and raise approximately $1,145,416 in the first year that the millage is levied. Police Department move to City Hall: With annual lease and utility expenses this option would save approximately $91,000 annually. However, it may be cost prohibitive due to remodeling expenses. An estimated figure to accommodate the Police Department would be between $750,000 and $1,000,000 to accomplish the move. It would be 8 to 11 years before cost savings became apparent. Impound Fees: Building an impound yard for the city would be cost prohibitive. Research into the expenses involved was attempted but information could not be obtained in time due to the hard deadline. It should be noted that an impound yard would require staffing twenty four hours a day. Fees could be imposed for 24 and 48 hour impounds as well as impounds incident to arrest. However, these fees would provide minimal impact to the current budget deficit. Hiring a Grant Writer: Three options were explored for the city to seek grant opportunities to alleviate the current budget deficit. First, the city could hire a grant writer who would be compensated for each successful grant obtained. Secondly, the city could hire a part time employee whose sole purpose is writing grants. Finally, a current city employee could be sent to specialized training for grant writing to explore grant opportunities for all city departments. Metropolitan Police Department: As outlined in draft enabling legislation, the transition to a metropolitan government would be phased in over time and it would include three important steps: (i) enactment of enabling legislation and approval by voters; (ii) establishment of electoral districts for the new legislative body of the metropolitan government and election of metropolitan government officials; and (iii) transfer of the powers, duties, and functions of the qualified county and qualified city and implementation and organization of the new metropolitan government by newly elected officials. Currently, transitioning to a metropolitan police agency is unconstitutional until the above criteria is met. EMS Transport: Currently the Fire Department is licensed as a Basic Life Support (BLS) non-transport agency. An upgrade to Advanced Life Support (ALS) transport could provide for revenue. Recent quotes for an ambulance are between $123,141 and $125,000. Equipment upgrade costs would be $40,000 for each ambulance. There are minimal license standards and additional training would be needed. There are no cost estimates at this time for the needed training. If additional paramedics are needed, the classes are 1000 to 1200 hours and cost between $4,200 and $4,500 per student. It would be recommended that The AccuMed Group handle the revenue process. They can handle every step of the billing process and have advised they have a 66-68% collection rate. Although this option could provide revenue and financial relief for the city, there are significant upfront costs.

4 Robert V. Belleman, City Manager 4 Discontinue Medical Runs: There would be a cost savings in fuel. Approximately 75% of the calls that the Fire Department responds to are medical calls. For FY 2012/2013 $27,500 is budgeted for fuel consumption. Identifying cost savings with the reduction of wear and maintenance related issues for the apparatus is difficult to identify or quantify. Eliminating medical runs would also reduce the daily workload of the on duty crews. There would be some savings in State Licensing fees and license renewal fees of current employees with a medical license. It would also eliminate the need for EMT licenses and the 1.5% incentive pay equaling a $37,516 reduction in wages. This option would only provide minimal savings and is not recommended. Fire Authority: Michigan Law provides that local government may cooperate with any other local government to perform jointly any function which they have the power to perform individually. This option consists of creating a Fire Authority with one or more of Bay City s neighbors such as Bangor Township and / or Hampton Township. The level of interest would depend greatly on the level of savings, if any, and support from the taxpayers. The levels of savings are generally seen through attrition, apparatus purchases, and administrative positions. The potential also exists to increase the pool of paid on call firefighters. Other issues that would need to be addressed are the millage to be levied, tax structure, the creation of the Authority s governing board, and labor agreements. Another consideration is the liability, damages, allowable overhead costs, equipment and property disposition if the Authority were to be terminated. Public Safety: This option consists of combining the Police and Fire Departments and cross training the employees to perform both police and fire services. Several municipalities have made the transition to this model and have realized significant cost savings due to the ability to provide public safety services with reduced personnel. There is also a cost savings in appointing a Public Safety Director and eliminating one Department Head / Chief position. Paid on call Firefighters: This option consists of hiring employees who can be utilized on a part time basis or be called in when needed for fire response. The cost to hire, train, and equip paid on call firefighters is nominal. In addition, when a significant pool is established they eliminate the need for as many full time firefighters. This program is currently underway. RECOMMENDATION: Personnel costs can be greatly reduced with cross trained Public Safety who can serve citizens in a dual role providing both police and fire services. This would result in additional police on the street who can also respond to the scene of a fire. There would be no reduction in fire services while the personnel assigned to the fire stations are greatly reduced. Kalamazoo Public Safety has made the complete transition and has estimated it saves $6 million a year.

5 Robert V. Belleman, City Manager 5 The majority of post industrial mid-size cities have a full time police officer to full time firefighter ratio of at least two to one. Fire Departments which have a lower ratio utilize paid on call firefighters. Bay City currently has 52 full time police officers and 43 full time firefighters. The following cities have comparable size, population, and budget to that of Bay City. Holland, MI - 57 full time police officers and 22 full time firefighters (30 paid on call firefighters) Jackson, MI - 48 full time police officers and 23 full time firefighters Muskegon, MI - 91 full time police officers and 36 full time firefighters Port Huron, MI - 48 full time police officers and 40 full time firefighters Average of these four municipalities - 61 full time police officers and 30 full time firefighters This proposal includes the cross training of police officers and firefighters over a three year period. In less than five years the city will reach the needed reduction of personnel to stay within budget through retirements and attrition. This process could be expedited with early buyouts. Monies from the CDBG Grant, state revenue sharing, and other sources would be required to supplement police and fire services until the transition is complete. By 2017 Bay City would have 51 employees assigned to police services, 24 of which who would be cross trained, and 21 employees assigned to fire services. Bay City would have equal if not greater police services and no loss of fire services with the reduction of personnel of 24 to 25 employees. The first part of this proposal involves utilizing paid on call firefighters and is already in the early stages of implementation. Six paid on call firefighters have graduated from the Fire Academy and are currently being integrated into the department on a part time basis. As firefighters either retire or are cross trained as public safety officers additional paid on call firefighters will be hired. Four paid on call firefighters graduate from the academy in May 2012 and ten more are budgeted for in FY 2012/2013 for a total of twenty paid on call firefighters. The cost to hire and train one paid on call firefighter is $9,517. These part time employees, in conjunction with the transition to public safety, will offset the gradual loss of full time firefighters and will maintain fire services to the community. Over the course of the research that was conducted three municipalities were visited. The first of which was the East Grand Rapids Public Safety Department. East Grand Rapids began the transition by cross training police officers and firefighters and drafting a new Public Safety contract to take effect the following fiscal year. When the Public Safety contract took effect it voided the separate police and fire contracts. This was because East Grand Rapids now had a joined Public Safety Department and the separate police and fire departments no longer existed. The next municipality visited was the Holland Public Safety Department. Holland is in the early stages of the transition to Public Safety and has only begun the cross training of administrative personnel. A Director of Public Safety was appointed and they organized their

6 Robert V. Belleman, City Manager 6 department so the cross training of all personnel could begin at any time. Their organizational chart became the model to develop a draft of the proposed Bay City Public Safety Department organizational chart. The final municipality visited was the Kalamazoo Public Safety Department. Every Public Safety Officer is cross trained and is a model for where Bay City could be in five to ten years. Kalamazoo has greatly reduced staffing while providing public safety services and has estimated it saves $6 million a year. Research has been conducted into the cross training of police officers and firefighters. The following is a breakdown of all the costs involved: Cost to Cross-train a Firefighter to become a Certified Police Officer: Michigan Commission on Law Enforcement Standards (MCOLES) testing Physical testing $45 Reading and writing test $65 Delta College Northeastern Police Academy (17 weeks) $5,672 Average Bay City Firefighter salary $18,265 Police equipment $3,536 Bay City Police Department Field Training Program Field Training Officer $1,750 Field Training Officer overtime $2,122 Probationary Officer salary $16,116 Probationary Officer overtime $2,257 Total Cost - $49,828 Cost to Cross-train a Police Officer to become a Certified Firefighter: Bay County Fire Academy (180 hours) $550 Average Bay City Police Officer salary $4,788 Essentials of Firefighting with workbook $122 average wages (BCFD orientation) With EMS (8 weeks) $8,512 Without EMS (6 weeks) $6,384 Equipment $3,034 Written & agility $119 Physical $362 EMT training (optional) EMT class $800 average wages $6,384 State license fee $25 Total Cost with EMS - $24,696 Total Cost without EMS - $15,359

7 Robert V. Belleman, City Manager 7 One decision that will need to be made is whether to make Public Safety EMS responders. In 2010 Bay City Fire / Rescue responded to 3,435 EMS calls for service with an average response time of 4:49 minutes. In 2010 McLaren Bay Regional Medical Center (MBRMC) responded to 3,018 calls for service with an average response time of 4:14 minutes. MBRMC has a comparable if not faster response time for medical calls. It would be more cost effective not to train Public Safety as EMS responders. This could be reevaluated should MBRMC modify their ambulatory services. Three police officers can be cross trained to every one firefighter. Firefighters who are cross trained will be assigned to the Patrol Operations Division to fill the vacant positions left by retired police officers. Police who are cross trained will respond to assist at the scenes of structure fires. This proposal would require the elimination of 20 positions for the needed reduction of $1,887,461 to the annual budget. This can be accomplished in less than five years utilizing attrition with no early retirements and no need for layoffs. In fiscal year 2011/2012 the Fire Department has had three resignations and has two additional eligible retirements and the Police Department has already had two retirements. In fiscal year 2013/2014 the Fire Department has two eligible retirements. In fiscal year 2014/2015 the Fire Department has four eligible retirements. In fiscal year 2015/2016 the Fire Department has four eligible retirements and the Police Department has four eligible retirements. In fiscal year 2016/2017 the Fire Department has three eligible retirements and the Police Department has one eligible retirement. This is a total reduction of 25 positions by fiscal year 2016/2017. This process could be expedited by early buyouts. Personnel within the new Public Safety Department would include three Administrative employees, five clerical / administrative assistant employees, police personnel, fire personnel, and public safety personnel. In fiscal year 2012/2013 this proposal would require the cross training of six police officers and two firefighters. With the projected retirements the resulting staffing levels would be 44 police personnel, 38 fire personnel, and 8 public safety personnel. In fiscal year 2013/2014 six police officers and two firefighters would again be cross trained. With the projected retirements the resulting staffing levels would be 38 police personnel, 34 fire personnel, and 16 public safety personnel. In fiscal year 2014/2015 the final six police officers and two firefighters would be cross trained. With the projected retirements the resulting staffing levels would be 32 police personnel, 28 fire personnel, and 24 public safety personnel. By fiscal year 2015/2016, with the projected retirements, the total staffing level for the Bay City Public Safety Department would be 84 employees. The ratio of personnel assigned to the police department and the fire department will also now be in line with other comparable municipalities. By fiscal year 2016/2017, with the projected retirements, the total staffing level for the Bay City Public Safety Department would be 80 employees. At this time the city may want to re-evaluate the need for any further cross training. The city could continue to cross train the remaining police officers and firefighters or simply

8 Robert V. Belleman, City Manager 8 cross train newly hired employees who are MCOLES certified or hire fully trained public safety officers. The first required step to begin the five year Public Safety Plan would be to appoint a Public Safety Director. Legal research would then be needed to void the existing police and fire contracts and the creation of new public safety contracts. Cross training would need to begin in fiscal year 2012/2013. Two new public safety unions; public safety and public safety command, need to be created. The new public safety contracts would require equalization of rank and pay scale, 12 hour shifts for employees assigned to patrol duties, and an incentive for those who are cross trained as public safety officers. The personnel available for fire response would remain the same during this process. Currently, a minimum staffing level of nine full time firefighters, off duty firefighters who can be called in, and mutual aid are available for fire response. During the 5 year plan, as firefighters retire police officers are cross trained to assist with fire response. By fiscal year 2016/2017 the fire response would consist of a minimum of 4 full time firefighters, a minimum of 4 to 5 public safety officers, 20 or more paid on call firefighters, off duty firefighters who can be called in, off duty public safety officers who can be called in, and mutual aid. The personnel available for police response would actually increase during this process. This would be a result of 12 hour shifts and firefighters being cross trained. Currently, the personnel available for police response are a minimum of 3 officers and 1 sergeant for first shift and a minimum of four officers and one sergeant for second and third shift. By fiscal year 2016/2017 the police response would consist of a minimum of 4 to 5 officers and 1 sergeant for day shift and a minimum of 5 to 6 officers and 1 sergeant for night shift. The Public Safety Model has been successful in many municipalities and many others are currently in the transition. It is a proven method to maintain public safety services with lower staffing levels. If staffing levels are simply lowered to cover the budget deficit police and fire services will decline. The most difficult aspects of the Public Safety Proposal are the legal ramifications of the union contracts and the revenue needed to maintain staffing during the first three years of the plan. Once these obstacles are overcome then the merger of the police department and the fire department into the Bay City Public Safety Department is the most viable option for the City of Bay City. Attachment: Draft of the proposed Bay City Public Safety Department Organizational Chart

9 PROPOSED CITY OF BAY CITY DEPARTMENT OF PUBLIC SAFETY Chief of Public Safety Administrative Assistant Deputy Public Safety Director Police Fire Chief or Deputy Public Safety Director Fire Department Clerical VIPER Sergeant Patrol Operations Lieutenant Support Operations Lieutenant Fire Marshall Lieutenant Training Lieutenant Front Desk Clerical Central Records Clerical Detective Bureau Clerical Fire Awareness Officer Patrol Sergeants Patrol Sergeants Detective Sergeant Fire Station 1 Shift A Fire Station 2 Shift A Fire Station 3 Shift A COPS Detectives Identification Bureau Fire Station 1 Shift B Fire Station 2 Shift B Fire Station 3 Shift B SRO S P.S. P.S. P.S. P.S. Fire Station 1 Shift C Firestation 2 Shift C Fire Station 3 Shift C DRAFT