Item# 4.1. C., S:\DIRECfOR\City Council\City Council - Aug 6, 2013\ Policc Staffing t\ugmcntation\ CC mtg - Police Staffing t\ugmcntation.

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Bernard Watts
5 years ago
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1 City Council Agenda Report Meeting Date: 8/6/2013 TO: City Council FROM: Chris Constantin, Administrative Services Director ( ) RE: Police Staffing Augmentation REPORT IN BRIEF: During the June 18, 2013 City Council budget study session, the City Council requested city staff come forward with options to fund six officer positions for FY The budget does not support funding six positions; however, unanticipated reductions in benefits expenditures offers the opportunity to support two sworn and two non-sworn positions. Two Recommendations: Motion to approve authorizing staff to make the necessary budget transfers and personnel actions to: 1) Maintain two Community Service Officers previously identified for layoff, and 2) Restore funding and authorize recruitment and hiring of two sworn Police Officer positions. FISCAL IMPACT: The estimated cost for two Community Service Officers and two Police Officers is about $327,000. This action would transfer $65,990 from several departments' benefit expenditures into the Police Department's salaries and benefits line items. Additionally, the action would add to police salaries and benefits while reducing overtime expenditures by about $134,500. According to the Police Department, this equates to approximately 270 overtime patrol shifts that may not be back filled. Further, the remaining amount for these expenditures would come from reductions in benefits for the Police Department resulting from reductions in estimated benefit costs- approximately $127,000. It should be noted that the timing of the hiring as well as the type of positions - entry level versus experienced law enforcement - will have an impact on position costs. While the funding appears to allow for this action in , the City will have to identify replacement funding to the extent overtime savings do not occur. Funding for these positions may be onetime, as benefit costs savings is not likely sustainable. To the extent benefit costs increase in , as has been in past history, the City will need to identify alternative funding to maintain the positions. BACKGROUND: Sworn police staff fell from 102 in to 81 in This represented a reduction in 17 police officer positions, 3 sergeant positions, and 1 administrative staff position. As a result, the Police Department eliminated specialized units, such as Traffic, Street Crimes, School Resource Officers, and TARGET, and placed responsibilities for these units onto patrol. Item# 4.1. C., S:\DIRECfOR\City Council\City Council - Aug 6, 2013\ Policc Staffing t\ugmcntation\ CC mtg - Police Staffing t\ugmcntation.docx

2 The reduction of two Community Service Officers would remove an efficient resource, which previously freed up patrol resources. As a result, more and more police officers engage in booking and transporting prisoners to the County jail in Oroville - further temporarily reducing available officers for patrol activities. During the June 18, 2013 budget study session, the City Council requested staff identify options to restore six sworn Police Officer positions for FY There are several factors impacting the viability to hire and operationalize six positions in FY , which include: Difficulty for the Police Department to successfully identify and background six sworn police officer candidates while planning for appropriate field training; Concerns regarding the ability for all city departments to maintain anticipated FY reductions in order to keep a balanced budget; and Impact on other city services and priorities. S1vorn Officer Recmitmmt a11d Trai11i11g Sworn officer recruitments are challenging. Officer candidates undergo significant background investigations including polygraph, medical, and psychological screening. While applicant pools are far greater than the positions available, the rigorous standards reduce qualified candidates to a handful or less. After hiring, officers require a minimum of 23 weeks of field training, and in the case of an untrained recruit, the prerequisite of completion of a certified law enforcement academy which spans over 900 hours. In the end, some candidates may not successfully complete the field training program. According to the police department, it is unlikely to recruit, train, and have available the six officers requested by the City Council in time to benefit , though three potential candidates are currendy under review for the background process. Mai11tai11i11g a Balanced Budget The budget included $4.8 million in reductions. The reductions included eliminating 53 positions, which resulted in layoffs of 19 filled positions. The budget reductions were presented by each department director to the City Manager and incorporated into the draft budget. On June 18, 2013, the City Council approved the final budget with the reductions. The ability for the City to augment current police staffing hinges on the City's ability to maintain a balanced budget. To the extent City departments do not achieve their reduction targets or expenditures and revenues fail to meet projections, the City Council will be forced to identify areas for reductions. Under this potential scenario, increasing staff becomes risky. While it is too early tell how reality compares to projections, this risk should be considered in any hiring decision. F11rther Reductio11s to other City Departments Options for generating the funding for these positions include reductions to other departments. These options include additional service reductions in addition to those already implemented. Every department took reductions, and each department is currendy grappling with the impacts. Departments continue to adjust; however, any further reductions will most likely lead to continued erosion of public serv1ces. Reductions should be matched with a consideration of the service priorities of the City and a public discussion of the impacts of reductions to those public services targeted for further reduction. S: \ DIRECI'OR \ City Council\City Council - Aug 6, 2013\ Police Staffing Augmentation \ CC mtg- Police Staffing t\ugmcntation.docx

3 DISCUSSION: The cost of employee positions vary based on the type of position and whether an applicant has law enforcement experience. For example, the cost difference in a sworn position between an experienced officer from another agency and an entry level, new recruit is about $16,000. This does not take into account any special pays, overtime, or other compensation, which can vary officer to officer. The estimated cost of different positions includes the following: Community Service Officer- $80,400, Entry Level Police Officer- $93,500, and Experienced Police Officer- $109,000. There are a number of options to consider in achieving the savings necessary to increase police staffing. However, the limitations of recruiting, budget risks, and impact of reducing other city services should be weighed in any decision. Some of the options include: 1) Employee Bargaining - negotiating concessions to cover the cost of six positions. This option involves obtaining agreement with bargaining units, which currently have no obligation to negotiate for Any negotiations will be a multi-month process and subject to fair consideration of concessions to obtain employee savings available for new positions. As a result, tlus option may not yield a successful result, nor a timely result to impact public safety in ) Service Reductions - further reduction of other service priorities and transferring funds for sworn police staffing. This option involves further eroding of services and staffing leading to tangible public impacts. Every department is a likely target for service reductions. If tlus option is tl1e direction of City Council, the City Council should have a robust discussion to prioritize City activities. From tl1ere, City staff can evaluate where to identify reductions based on City Council priorities. 3) Phased Staffing Approach -adding positions in a strategic manner as funding is available or opportunities exist. This option balances some of the factors impacting tl1e viability of hiring during a fiscally difficult time. One or two positions are added in a manner that is offset by other employee related costs, as well as a strategic use of new revenue. RecomiJJmded Option for the Ciry Co1111cil The City Council can consider a balanced option by phasing staff increases based on available funding and weighing increases with the Police Department's ability to recruit and hire. With this approach, the Department can retain two Community Service Officers (which were slated for layoff) and restore two sworn Police Officer positions. S:\DIREC J'O R\Cit) Councii\ City Council- :\ug 6, 201 3\ Policc Staffing Augmcnt.1tion\ B-6-13 CC mtg- Police Staffing Augmcntation.docx

The 2013-14 final budget includes a number of estimates in both anticipated revenues and projected expenditures. Finance staff are diligent to project the resources available conservatively.

benefits to reduce volatility in rate increases. The projection was conservative based on previous years' expenditures.

4 The final budget includes a number of estimates in both anticipated revenues and projected expenditures. Finance staff are diligent to project the resources available conservatively. In the case of health benefit cost, the City projected an increase taking effect on January 1, 2014 due to information indicating the City's benefit pool, a collection of jurisdictions pooling benefits to reduce volatility in rate increases. The projection was conservative based on previous years' expenditures. Further, our benefits consultants indicated rates may increase up to 7 percent of the rate paid last year depending on how the City's benefit utilization compared to other jurisdictions. Recently, our health benefit consultants provided the actual rate for , which indicated a 5. 7 percent reduction in cost from prior years effective on January 1, This reduction is abnormally low, but accurate based on the City of Chico's lower utilization statistics as compared to other cities pooled with Chico's health benefit providers. As such, the budget includes about $300,000 more in projected health benefit expenditures than anticipated based on new information. This savings creates an opportunity without impacting other city services or relying upon employee concessions. It should be noted that in future years, if benefit cost increase, the City will have to identify an alternative source to cover the employee costs of these positions or the benefit cost increases. Further, the City will have to adjust if overtime savings is not realized or the selection of an officer (e.g. experience officer at a higher pay rate instead of a new recruit) results in more cost than projected. Approved by: Chris Constantin, AdmliDS Director Brian Nakamura, City Manager DISTRIBUTION: City Clerk ATTACHMENT: Exhibit A - Budget Transfer Action S:\DIRECf O R \City Councii\City Council- Aug 6, 20 13\Policc Staffing t\ugmcntation\ CC mtg - Police Stafling t\ ugmcnta ti un.d oc.~

Budget Transfer Request/ Budget Modification INSTRUCTIONS: Each department shall submit a budget transfer request prior to any purchase requiring funding.

/Capital expense report, operating budget printout, etc.) as attachments.

5 Budget Transfer Request/ Budget Modification INSTRUCTIONS: Each department shall submit a budget transfer request prior to any purchase requiring funding. Identify the appropriate type of transfer request, appropriation information, and explanation/ justification for the transfer request. Provide any additional information (Dept. /Capital expense report, operating budget printout, etc.) as attachments. T Ly pe o ft rans f, er R equest: Transfer Detail Authorizations Amount Fund Transfer (FI) Appropriation transfer between Over SO (f'd, 0!, CC) funds. Personnel to Non- t\ ppropriation between personnel Over SO (I'D, CM, C:C} personnel (I'Nl') and non-personnel catc)!ories. Depanrnent Transfer Appropriation transfer,; between Under S 10,000 (I'D) (D'l) departments. 510,000 to 550,000 (rd, CM) $65,990 Over 550,000 (fod, Cl\1, CC) Category Transfer (0) 1\ppropriation transfers between Umler 525,000 (f'd) expenditure categories. 525,000 to 550,000 (FD, CM) O ver 550,000 (FD, CM, CC)...., TOTAL $65,990 I '... T rans er o fa ppropnatton: GL/ Account # Account Description Type of T ransfer Increase available Decrease av:tilable (if capital, incl project #) (Category I object detail) Request expense budget expense budget Police DcpL - Salaries - Permanent DT 65, Fire Dept - Employee Benefits O ther DT (60,990) OOI--4WO Other Depts. -Employee Benefits Other DT (2,612) ()(JI Animal Services - Employee Benefits O ther DT (2,388) TOTALS $65,990 ($65,990) The Budget adjustment requested above is required to permit the effective functioning of this department. Specific explanation and justification of tlus request is as follows: Attachments Re~: Dept/ Capital expense report. The City's health benefit consultants provided revised information regarding the City's benefit cost increase. The new rate is a reduction of 5.7% where before it was projected to increase no more than 7%. As such, d1ere are expenditures included in the budget tl1at 'vill exceed tl1e actual rates given by our consultants. The net impact of tlus is to provide funding to temporarily cover some positions in d1e police department. The agenda action would retain two CSOs and add two police officers at an estimated cost of$327,1 80. In order to fund the positions, staff requests reducing tl1e benefit expenditures o f several departments by $65,990 and increase tl1e police department's Salaries-Permanent line item by the same amount. The remaining amount for the four positions requested 'vill be made up by the excess benefit expenditures anticipated in police as well as a conversion of $134,500 reduction in police overtime to police salaries. APPROVALS: A roval Transfer lniti:u or (AuthorizeJ lnitiarur) Department Director Admin Services Director/Finance Director City Manager ADMIN SERVICES DEPARTMENT USE ONLY Budget Tram fer No.: 2014-PD-001 Date added to Index i\djed by _ Included on Supplemental: Docs this create fund deficit? _ Datc added to financial management ~ys tcm Added by

Budget Study Session. June 9, 2010

Budget Study Session. June 9, 2010 Budget Study Session June 9, 2010 What is needed from Council? Listen to update on Labor Union concessions & negotiations Listen to presentation on proposed General Fund budget reduction plans Labor Concessions