Fort Walton Beach Council agenda — 02-28-12 regular — reading text

assistance of city staff. An outline of transition costs, concerns, and time lines based on currently available information is attached as an appendix to this proposal. 61 Page  BENEFITS OF CONTRACTING WITH THE OKALOOSA COUNTY SHERIFF' S OFFICE Benefits Include: Fully Accredited law enforcement agency Law Enforcement specific human resources functions Employee physical fitness programs including physical fitness standards, yearly wellness benefits, and state of the art gym facilities through a partnership with Northwest Florida State College Modern and well equipped vehicle fleet, cost savings and improved efficiencies o Proposal will reduce the fleet needed to sustain the city operation by 28 vehicles Electronic records management systems providing instant access to records from any location Communications: cost savings with personnel, equipment and office space, Collaborative management principal providing effective working relationship between the district commander and the city manager, city council attendance and activity briefings Increased specialty unit interaction with the exclusive service personnel More effective working relationships with county wide services such as Drug Task Force, large and complex investigations, professional dedicated crime scene investigations unit, meth lab response teams, traffic homicide investigations resources, marine unit and dive team Regional Domestic Security Special Response team, including regional assets Over 20 different crime prevention programs and 90 plus neighborhood watch programs already established Very strong commitment to open and transparent operations with numerous cutting edge public information initiatives 71 Pa g  CITY OF FORT WALTON BEACH POLICE BUDGET PROFILE The Fort Walton Beach law enforcement budget has grown despite reductions in the city' s population and calls for service over the past three years. Additionally, the police defined benefit pension plan has shown an increased unfunded liability trend during the same timeframe. t r. Calls for service i Police Budget '.. I I I i - - --> Linear (Population) Linear ( Calls For f— L s service) i— Linear( Police Budget) 2009 2010 2011 2492 2010 2411 Populations 20, 675 20, 355 19,534 Calls for service 39, 271 36, 145 34, 550 Police BudgeR $ 5,456,847 $ 5, 287,741 $ 5, 589, 287 As provided by Chief Litschauer in memo dated December 15th, 2011 Includes approximate CNA costs for 2009 & 2010 81 Page Police Pension Plan Unfunded Actuarial Accrued Liability ( UAAL) is an important number in gauging the fiscal well -being of a pension plan. The UAAL is a point in time snap shot of a plan' s liabilities less its assets. FWB' s Police Pension UAAL the last three years is: 9/ 30/ 08 - $ 3. 91M. Plan was 83% funded and UAAL was 155% of payroll. 9/ 30/ 09 - $ 4. 88M. Plan was 79% funded and UAAL was 190% of payroll. 9/ 30/ 10 - $ 5. 82M. Plan was 76% funded and UAAL was 265% of payroll. Est. 9/ 11- $ 7M. Plan funded at 7A and UAAL over 329% of payroll. During contract negotiations between the city and police union the city points out that difficult decisions" will have to be made regarding the city' s defined benefit pension plan. The document provides for a schedule for contributions by employees in the pension plan to increase from the current 5% contribution to an 11% contribution. Concerns about municipal defined pension plans are not just a Fort Walton Beach issue. Many municipalities are struggling with a lagging economy and ever increasing pension liabilities. In the city' s case employees and taxpayers are facing higher and higher costs associated with their pension plan. 9 l Pa g  Comparison - City of Fort Walton Beach Police Budget to OCSO Proposal City of Fort Walton Proposal By DRAFT Beach Budget Sheriff' s Office Personnel Expenses Salary 2, 912,450 1,812, 000 Over Time 110, 000 Sworn Incentive 121, 708 64, 500 Social Security Taxes 223, 563 138,618 Retirement Contributions 862, 373 255, 492 Worker' s Compensation 70, 335 138, 980 Insurance Benefits 451, 483 322, 500 Vacation Relief Costs 90, 300 Sick Relief Costs 45, 150 Total Personnel Expenses 4, 751, 912 2, 867, 540 Operating Expenses Professional Liability & Insurance 89, 964 59, 082 Auto Repair& Maintenance 66, 370 47, 300 Fuel 169, 700 172, 000 Uniforms 16, 070 15, 050 Facility Maintenance 2, 500 AII Other Expenses 209, 994 480,353 Total Operating Expenses 554,598 773, 785 Capital Expenses Vehicle Replacement Plan • 00506yr schedule 175, 000 179, 138 Other Capital 38, 268 Total Capital Expenses 213, 268 179, 138 Debt Service Expense Police Services Building 174, 379 Total Budget / Contract 5, 694, 157 3, 820,463 Less Revenue 104, 870 ) 104, 870) Total Cost of Law Enforcement 5, 589,287 3, 715,593 OCSO utilization of Police Services Building 174, 379) Net Contract Cost to the City 3, 541,214 101 Pa g  PROPOSAL This proposal provides a significant cost reduction to the current police department' s budget. Specifically, the cost for law enforcement will go from approximately $286 per resident in FY 2012 to $180 per resident in FY 2013. The primary reason for this reduction is the elimination of duplicate supervisory and support personnel. The sheriff' s office is able to use its economy of scale to provide that support within its current staffing model. The sheriff' s office proposes to maintain staffing levels at the field level similar to that of the current police deployment. This will maintain at least the current response times provided by the police department. Community redevelopment officers and detective' s allocation are also maintained at current staffing levels. Current community policing, crime prevention and street crimes missions will be combined with the sheriffs office current programs. This team approach will provide exclusive personnel to continue the city' s current programs while providing the benefits of a much larger team to augment those efforts. As an example the sheriffs office provides an award winning crime prevention program. A component of a services contract with the sheriff' s office is an administrative support cost allocation assignment. This cost provides for funding of the personnel who support the sworn members of the agency and includes numerous non -sworn personnel. You will notice that this proposal does not include support personnel costs as these costs are covered by the assignment charge. The sheriffs office estimates that eight full time support positions, as well as school crossing guards will be added to the agency due to a FWB contract. FBI reports indicate that law enforcement support costs are approximately 35% of an agency budget nationwide. This contract proposal would provide a support cost of approximately 12% of the contract price. Current police department employees will have the opportunity to become members of the sheriff' s office with credit for their experience and tenure. They will immediately become eligible for a variety of specialized units and assignments. Initial salary will be aligned with deputies and non -sworn employees of comparable time in service lengths 111 Page and experience levels. As the proposal requires a significant number of current police officers to come over the sheriff' s office, those officers will provide the local knowledge of the city. The sheriff's office would systematically integrate the former police officers into the existing deputy corps while maintaining the field level familiarity of the service levels expected by city residents. As noted in the budget comparison the Sheriff' s Office also proposes to utilize the Police Services building. The sheriff would house all of the central district operations personnel as well as other south county resources of the sheriff' s office including general investigations and special operations. This would also provide a public access front desk" operation which is currently housed at the Shalimar Annex. Citizens would still be able to get reports and paperwork, get fingerprints done, and make criminal complaints at the police department building. This component in particular requires the input and consent of the Board of County Commission. OVERVIEW OF THE OKALOOSA COUNTY SHERIFF' S OFFICE The Okaloosa County Sheriff s Office