05/15/18 Page 1 Item #16 CITY OF DANA POINT AGENDA REPORT Reviewed By: DH X CM X CA DATE: MAY 15, 2018 TO: FROM: HONORABLE MAYOR AND CITY COUNCIL MARK DENNY, CITY MANAGER SUBJECT: ORANGE COUNTY SHERIFF S DEPARTMENT CONTRACT FOR FY19 RECOMMENDED ACTION: That the City Council consider the Law Enforcement Services Agreement with the County of Orange for law enforcement services for the 2018-19 Fiscal Year and authorize the City Manager to execute the agreement upon approval. DISCUSSION: The City of Dana Point contracts with the Orange County Sheriff s Department ( OCSD ) for dedicated law enforcement services. The OCSD is responsible for providing professional, responsive law enforcement services to our residents, businesses and visitors. Attached is the proposed Law Enforcement Services Agreement ( OCSD Agreement ) for FY2018-19. The proposed fiscal year 2018-19 contract is $12,671,000, an increase of $598,000 or 5% over the 2017-2018 contract of $12,073,000. The increase is due primarily to increased costs for Salaries (+$117,000) and Benefits (+$261,000), Annual Leave Cash Outs (+85,000), Training (+$78,000), and Department Overhead (+$69,000). As mentioned in the past, pension costs are a major driver of OCSD cost increases, as it is for most public safety agencies. Pensions are the largest component of benefit costs in the OCSD contract, and are funded by applying an overhead rate to payroll. The FY18 pension rate applied to payroll for deputies is 73.8%, for sworn management is 73.9%, and for general employees is 32.1%. For deputies, the overhead rate charged to pay for all benefits including pension is over 104% of salaries, and for non-sworn positions it is roughly 60%. The Police Services contract alone accounts for over 36.6% of the City s adopted General Fund FY19 General Fund operating budget, up from 35% in FY18. The OCSD contract includes 41 direct report OCSD staff dedicated to Dana Point, including 34 fulltime sworn positions, 5 non-sworn community service officers (one reimbursed by OC
05/15/18 Page 2 Item #16 Harbor), a crime prevention specialist and an investigative assistant, along with 1 parttime extra help position. In addition, the contract includes costs shared with other OCSD contract cities for a group of sworn and non-sworn support positions totaling 18 positions that are assigned to serve South Orange County. The annual contract cost also includes allocated costs covering County and OCSD Department Overhead, OCSD Field Training Bureau and the South Division Command, among others. On average, over the 11 years spanning from FY08 to the coming FY19, costs for the Police Services contract will have increased $4.4 million. This amounts to 53%, or 4.8% per year. Given scheduled pay raises, increasing pension costs and forthcoming costs to implement body-worn cameras, it is assumed that the City s costs for the OCSD contract will continue at this same historical pace for the coming years. The cost of policing has been the fastest growing component of most cities budgets for decades, but particularly since enhanced pensions came about in the late 1990 s. Aimed at finding solutions to possibly slow the rate at which costs are escalating, all cities that contract with OCSD for policing services have funded a project that has a consultant reviewing OCSD finances in an attempt to find efficiencies. The study is expected to be completed this Summer, and the results will be presented to the City Council and discussed with the County. OCSD continues to provide outstanding service to the City that our residents and businesses have come to expect, and for which our visitors certainly appreciate. Dana Point is a world class destination for our visitors that contribute considerably to the local economy, and it is imperative that the City maintain its identity as a safe community. OCSD, operating as the City s Police Services Department, is a community partner and has established their Community Oriented Policing philosophy by being an integral part of City operations. FISCAL IMPACT: The proposed FY19 contract amount is $12,671,207, or 5% higher than the FY18 contract total of $12,072,713 and is included in the proposed FY19 budget. ACTION DOCUMENTS: A. Law Enforcement Services Agreement....3 Attachment A: Regular Services By County Subsection C-3.. 27 Attachment B: Payment Subsection G-2...28 Attachment C: City of Dana Point Ordinance No. 90-07 Licensing...29 Attachment D: County Billing Policy..30 Attachment E: Policy for Distribution of Forfeited And Seized Assets.34 Attachment F: Resolution No. 00-07-25-03..36
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05/15/18 Page 27 Item #16 Attachment A. Regular Services By County Subsection C-3
05/15/18 Page 28 Item #16 Attachment B: Payment Subsection G-2
05/15/18 Page 29 Item #16 Attachment C: City of Dana Point Ordinance No. 90-07 Licensing
05/15/18 Page 30 Item #16 Attachment D: County Billing Policy
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05/15/18 Page 34 Item #16 Attachment E: Policy for Distribution of Forfeited And Seized Assets.
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05/15/18 Page 36 Item #16 Attachment F: Resolution No. 00-07-25-03
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05/15/18 Page 43 Item #16 Attachment G: Orange County Traffic Violator Apprehension Program.