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°q`.Fost CITY COUNCIL STAFF REPORT
Date: January 3, 2018 NEW BUSINESS
Subject: APPROVAL OF AMENDMENT NO. 1 TO THE ALLOCATED POSITIONS
AND COMPENSATION PLAN — ADDING FOUR POLICE OFFICERS,
TWO COMMUNITY SERVICE OFFICERS, SIX FIRE
FIGHTER/PARAMEDICS, AND ONE ACCOUNTANT
From: David H. Ready, City Manager
Initiated By: Department of Human Resources, Police Department, Fire Department,
Department of Finance and Treasurer
SUMMARY
The City Council will consider an amendment to the current fiscal year Allocated
Positions and Compensation Plan, adding four Police Officers (sworn), two Community
Service Officers (non-sworn), six Fire Fighter/Paramedics, and one Accountant. The
total cost (salary and benefits) to add these 13 positions will range between $1.55
million and $2.08 million dependent upon salary range at hire date and related benefits.
Sufficient funding for this action is directly related to the successful passage of the
Measure D '/20 sales tax measure on November 7, 2017, that is estimated to generate
an additional $7 million annually in General Fund revenue for the City.
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS APPROVING AMENDMENT #1 TO THE ALLOCATED
POSITIONS AND COMPENSATION PLAN FOR FISCAL YEAR 2017-2018,
ADOPTED BY RESOLUTION 24237;" and
2. Authorize the City Manager to execute all documents necessary to effectuate this
action.
BACKGROUND:
During discussions of the City's current 2017/2018 fiscal year budget earlier this year,
staff identified the need for additional public safety resources to accommodate the City's
continuing growth in population and tourism. In light of continuing increases in PIERS
ITEM NO. 5�,, 'C=_
City Council Staff Report
January 3, 2018-- Page 2
Amendment No. 1 to Allocated Positions/Compensation Plan
costs, the City lacked sufficient revenue to support additional public safety resources in
the absence of a corresponding increase in General Fund revenue.
To that end, on July 26, 2017, the City Council introduced an ordinance imposing a
general transactions and use tax (i.e. '/2¢ sales tax) and submitted the general tax
measure to the voters for the November 7, 2017, general municipal election. As noted in
the accompanying staff report, the anticipated revenue of $7 million annually would, in
part, help the City increase firefighters, paramedics and police officers to improve
neighborhood and downtown safety, and maintain rapid 9-1-1 emergency response
times.
The ballot measure was identified as "Measure D — Palm Springs Essential
Services/Public Safety Measure," with the specific stated intention "To maintain
essential services, including rapid 911 emergency response, fire/police protection, add
paramedic services, keep fire stations open/staffed, address homelessness, repair local
streets/potholes, improve rapid response to assault, burglaries/crimes, keep public
areas safe%lean, maintain senior services, attract/retain jobs/businesses, increase
water conservation." At the November 7, 2017, election, Measure D passed by a vote of
6,849 in favor out of 12,138 votes cast — or 56.4%. As a general tax measure, a simple
majority was required for passage, and on December 6, 2017, the City Council certified
the election results, and Ordinance No. 1945, imposing an additional and permanent '/20
sales tax was adopted and ratified.
STAFF ANALYSIS:
Measure D will generate sustained additional revenue that will allow the Council to
consider adding new public safety positions, as well as an Accountant position for the
Finance Department, as further explained below.
Police Department
The completion of the new Downtown development and opening of the Rowan Hotel,
require additional officers to be assigned to the Downtown area of Palm Springs.
Currently, two officers are assigned to the Downtown corridor; generally these officers
rely on patrol officers to assist in addressing calls for service and incidents during busy
evening and weekend hours, drawing resources that would typically be assigned to
patrol the rest of the City. Patrol officers routinely respond to various calls for service in
the Downtown area, and assist the assigned Downtown officers by providing a visible
presence. Adding four additional police officers and two non-sworn community services
officers assigned specifically to the Downtown area will ensure that Downtown officers
are more self-sufficient and would no longer rely on patrol officers to respond to routine
calls for service. It is the Police Chiefs opinion that the assignment of additional
personnel to the Downtown area will mitigate impacts on patrol officers throughout the
City, improving the Department's ability to conduct focused enforcement, resulting in a
reduction of overall response times. The additional personnel will also ensure expanded
02
City Council Staff Report
January 3, 2018-- Page 3
Amendment No. 1 to Allocated Positions/Compensation Plan
coverage across the week and increase the number of personnel assigned during the
busiest hours and days, allowing officers to proactively address concerns and issues
unique to the Downtown area.
Fire Department
The Fire Chief has outlined his request to staff and equip a rapid response paramedic
unit to be located at Fire Station #1 in the Downtown area — restoring the paramedic unit
that was eliminated in 2010 during the economic recession. This paramedic unit would
be staffed twenty-four hours each day which requires the addition of six full time
professional firefighter/paramedics. Medical incidents account for 73% of all calls for
service made to the Fire Department.
From 2010 to 2016, calls for service have increased by 35% from 7,211 to 10,125 —
placing a higher demand for response on the existing Fire Department response units.
Fire Station #1 located at 277 N. Indian Canyon Dr. has the highest number of calls in
its primary response area, and it is the Fire Chiefs opinion that locating an additional
rapid response paramedic unit here will have the greatest impact on reducing overall
response times.
Finance Department
The additional Accountant's position requested by the Finance Department reflects
increased requirements for City fiscal accounting assistance. As part of the overall
loss/reduction in positions during the recession (2010), an accountant's position was
eliminated. Restoring the position at this time is critical for ongoing increased finance
workloads and maintaining appropriate fiscal checks and balances.
ENVIRONMENTAL IMPACT:
The requested City Council action is not a "Project" as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the
whole of an action, which has a potential for resulting in either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the
environment. The requested action is exempt from CEQA pursuant to Section
15378(b)(5) Organizational or administrative activities of governments that will not result
in direct or indirect physical changes in the environment.
FISCAL IMPACT:
The fully burdened cost (salary and benefits) will vary depending upon the salary step at
which each new City employee is hired, and whether the employee is considered a
"Classic" PERS employee or a "New" PERS employee. Benefit costs are directly related
to the salary and the type of PERS employee. Staff has identified the fully burdened
cost of these additional positions based on the entry salary (Step 1) of the salary range
City Council Staff Report
January 3, 2018 -- Page 4
Amendment No. 1 to Allocated Positions/Compensation Plan
as well as the top salary step (Step 7), including related benefit costs, as identified in
the following tables.
Fully burdened cost (based on Step I salary range):
Poptlic 'i!�!IHIVI!!8ase Entry E-Senefit Cost PERS Cost,, Ahnu6l,
Salary,
--Police Officer $64,392.00 $27,328 $31,821 $123,541.00
Community Service $46,956.00 $17,919 $13,213 $ 78,808.00
Officer
Fire Fighter/Paramedic $69,360.00 $28,574 $34,276 $132,210.00
Accountant =$68,664.00 $15,913 $19,322 1 $103,899.00
4 Police Officers $ 494,164
2 Community Service Officers $ 156,176
6 Fire Fighters/Paramedics $ 793,260
1 Accountant $ 103,899
Total Estimated (first year) $195479499
Fully burdened cost (based on Step 7 salary range):
Pion s nefit'Colst'--P-EIRS I
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Police Officer $86,508.00 $36,714 $42,751 $165,973.00
Community Service $63,096.00 $24,079 $17,755 $104,930.00
Officer
Fire Fighter/Paramedic $93,300.00 $38,436 $46,107 $177,843.00
Accountant $92,304.00 $21,391 1 $25,974 $139,669.00
4 Police Officers $ 663,892
2 Community Service Officers $ 209,860
6 Fire Fighters/Paramedics $1,067,058
1 Accountant $ 139,669
Total Estimated Cost $2,080,479
Also noted in the June 7, 2017, staff report for Council's adoption of the current
2017/2018 fiscal year budget, was an explanation on growing PERS costs. Beginning in
fiscal year 2018/2019 PERS costs will begin increasing more significantly as new
investment earnings assumptions, known as the "discount rate" (or PERS anticipated
20-year average rate of return on investments) are being implemented system wide,
resulting in several years of much higher required employer contributions.
The illustration on the following page was provided to Council to identify the significant
increase of PERS costs over the next 6 year period.
City Council Staff Report
January 3, 2018-- Page 5
Amendment No. 1 to Allocated Positions/Compensation Plan
PERS Costs in Millions 16-17 17-18 18-19 19-20 20-21 21-22 22-23
Total PERS Costs
BEFORE Change
Discount Rate @ 7.5% $13.2 $14.4 $16.2 $18.2 $19.5 $20.8 $21.9
Total PERS Costs
AFTER Change $13.2 $14.4 $16.7 $19.2 $21.9 $24.1 $26.0
New Discount Rate 7.375% 7.25% 7.0% 7.0% 7.0%
The cumulative increase in PERS costs for the 6 year period (2017/2018 through
2022/2023) was estimated at $35.9 million, leading Council to submit Measure D to the
voters as a means of preserving essential services in light of these growing PERS
costs. As a way of approximating an increase to future PERS costs related to the 13
additional positions, staff has compared the $2.08 million fully burdened cost to the
$78.1 million total payroll (salaries and benefits) in the current 2017/2018 fiscal year
budget —which represents an increase of 2.7% to total payroll'.
Therefore, staff estimates the cumulative increase to PERS costs for the 6 year period
will increase by 2.7% ($0.7 million) from $35.9 million to $36.9 million.
Regarding increases to the City's total unfunded pension liabilities, it is the Director of
Finance's opinion that it is very difficult to accurately estimate the actuarial impact of
these additional positions on long-term CaIPERS obligations, but has estimated it would
result in an additional unfunded pension liability of approximately $4.1 million. Because
retiree health benefit costs were capped several years ago, the change in total
unfunded liability for retiree health benefits would be zero.
In addition to the fully burdened personnel costs, adding these new positions will require
the City to purchase additional vehicles and equipment. As part of a separate action in
the near future, staff will present a request for the Council to amend the 2017/2018
fiscal year budget to appropriate additional budget for acquisition of vehicles as follows:
Police Department
The four new police officers assigned to the Downtown area will provide for two officers
working simultaneously during each shift. Similarly, the two new community police
officers will provide for one such officer working during each shift. These additional
I Total payroll of $78.1 million provides budget for the 461 full time equivalent positions currently
authorized by Council for the 2017/2018 fiscal year. The proposed action will increase total full time
equivalent positions to 474—a similar increase of 2.8%to authorized positions.
05
City Council Staff Report
January 3, 2018 -- Page 6
Amendment No. 1 to Allocated Positions I Compensation Plan
positions will require the City to acquire three new patrol vehicles estimated to cost
$65,000 each —for a total of$195,000.
Fire Department
The new rapid response paramedic unit will require the acquisition of a new paramedic
unit at an estimated cost of $80,000 with associated medical equipment at an estimated
cost of $55,000 for a total estimated cost of $135,000.
SUBMITTED
Perry Mad Bryan Reyes
Director of uman Resources Police Chief
4v-n Nalder Marcus L. Fuller, MPA, P.E., P.L.S.
Fir,,, Chief Assistant City Manager
David H. Ready, Esq., PhD
City Manager
Attachments:
Proposed Resolution Amendment No. 1 to Allocated Positions Plan
06
Attachment 1
o�
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS APPROVING
AMENDMENT #1 TO THE ALLOCATED POSITIONS
AND COMPENSATION PLAN FOR FISCAL YEAR
2017-2018, ADOPTED BY RESOLUTION 24237.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That the Allocated Positions and Compensation Plan for
positions in the City Service is hereby amended as follows:
Department Action Classification FTE Unit/Range
Police Add Police Officer 4 PS/45
Police Add Coummity Service Officer 2 GU/36
Fire Add Firefighter 6 FF56/40
Finance Add Accountant 1 MX/51
SECTION 2. The Director of Human Resources is authorized and
directed to modify the Fiscal Year Allocated Positions Plan.
SECTION 3. The position change approved by this resolution shall be
effective on January 3, 2018.
Total Authorized positions 2017-2018 (As Adopted) 461.00
Total Authorized positions 2017-2018 (Amendment 1) 474.00
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 3 d DAY OF JANUARY, 2018.
David H. Ready, City Manager
ATTEST:
Anthony J. Mejia, MMC, City Clerk
Resolution No.
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on January 3,
2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Anthony J. Mejia, MMC, City Clerk
City of Palm Springs, California