Citing Costs, Oakley Makes Case to Break Away from Sheriff’s Office Contract

The Oakley City Council was presented with a report from City Staff during a work session on the long-term delivery of Police Services.

In January 2014, under the direction of the City Council, staff began researching if it would be beneficial to break away from the Contra Costa County Sheriffs Office whom they have contracted services with since becoming a city. The goal was to see if breaking away would be a benefit to the citizens of Oakley with a greater police service at a reduced cost to taxpayers.

Last January, staff reported that the city started with 17 officers and a $2.5 million budget, as of last January, those figures have grown to 28 sworn personnel and $8.2 million. (Note – updated figures not provided in the presentation nor was a budget)

On Tuesday night, City Manager Bryan Montgomery highlighted the City has spent a year studying and investigating that breaking away from the Sheriffs contract would not reduce service to the citizens of Oakley and would allow the city to increase its police force.

Montgomery pointed out they are happy with the service they receive from the County, however, cost is the concern.

“The quality of services has been outstanding, we have never had a disagreement with the regard for the services we receive, especially with how lean the team is,” explained Montgomery. “We also have a community, more than any other that I have served, that is engaged in picking up the phone and calling dispatch and police department when there is something suspicious going on. 30 police officers is not adequate to patrol a community, but 40,000 people is and I think we need to continue to thank the community here in Oakley for that role they play that in fact, many other community’s nearby do not play that make Oakley such a safe place.”

Montgomery stated while as good as service had been, the City has had to deal with cost factors that the County has passed along to the city—through the General Fund.

“We have had to struggle quite frankly over the last several years to tackle these additional costs without having to add additional officers, but to have to continue to pay the costs as dictated by the county.” explained Montgomery.

According to Montgomery, the per-deputy cost in 2006 which was $164k has now increased in 2014 to $244k—a 50% increase in cost. He stated that the $244k is not what is paid to the deputies.

“We can’t afford due to these increase cost additional officers,” stated Montgomery.

Montgomery highlighted that while Oakley pays $244k per deputy, the actual direct pay of compensation and benefits to a deputy is roughly $177k.

Future Expectations:
This information highlighted what the City would expect to pay if it continues down the road with the county contract for police services.

• The County is not interested in adjusting its cost model or alternative models to ensure Oakley has more flexibility.
• The County Cost for police services were increased by $650k in 2014.
• Oakley is expected to be hit with another 5% increase this year—another $350k
• Over a 2-year period, Oakley would pay the county $1 million in added fees just to maintain the same service—no additional officers.

The Study:
Under the direction of the council, this began in January 2014 to see if Oakley could afford and create its own police department if they broke away from the County.

According to City Staff, a survey was conducted of other departments. In total, 27-agencies were surveyed and 30 components of police services were analyzed while trying to find out how agencies provided these services such as were they done in house, did they contract for some of these services, who did they contract with.

According to the survey data, Oakley formulated a police structure that they could create using data gathered from the 27-other agencies.

Montgomery stated that this model does not reduce service, but it increases service for the City of Oakley.

“This organizational has gone through the gauntlet of review and discussion,” said Montgomery.

The survey created a draft structure which includes:

• Two new supervisor positions
• One additional officer overall
• Two positions identified as “vacant” that would likely be filled after year one.
• One additional Police Services Officer
• Three-and-half FTE additional civilian staff
• Additional overtime cost/funding.

Montgomery then highlighted with salary and benefits, Oakley would need to be at the top end of salary to be able to attract and retain officers–Oakley would offer “2.7% at 57” retirement.

According to staff research, they estimate a one-time cost of $600k to convert Oakley to its own police department as there are some overlapping costs involved of the transition.

Montgomery stated that after the city concluded its research, they went back to the County stating they believed they could do it cheaper and with more officers to see if they would be willing to adjust. The County said they would not want to change the model and wished to maintain their current model.

Oakley Key Considerations

• Maintain or improve current level and quality of service
• Determine whether over the long-term service levels can be better maintained financially under a City model or by remaining with the County contract (not just saving money in year 1 or year 2)
• Identify and estimate one-time conversion costs for the City model
• Identify, quantify the risk transfer component that is inherent in evaluating the potential costs of a City model
• Consider the likelihood of being able to add sworn personal as needed in the future under the County contract or the City model

“We wanted to consider the likelihood of being able to add sworn personnel as needed in the future. In fact, that is the most compelling argument in our opinion is that the county cost model will not allow us to keep up or maintain the level of service we enjoy,” explained Montgomery. “What would happen if we continue to grow in the service demand, yet we don’t have the service to maintain the service levels, then we are in trouble. It’s very obvious to us that the county model is not the most cost effective approach. Not only now, but in the long-term.”

Montgomery stated that there cost will increase just as the county’s does, but Oakley would be at a flatter acceleration rate.

“The fundamental question as we move ahead , how can we best add additional police officers that we know are needed to at least maintain, hopefully improve our services?” asked Montgomery.

Montgomery then told the council there is a one-time cost of $600k, that staff believes they will be able to recoup that cost in year-1 and utilize the funds as directed by the Council to add officers.

Councilman Kevin Romick asked when was the last time Oakley added an officer to the force. Montgomery stated 2007-2008. He noted that with the county’s cost, Oakley has not been able to add officers.

Montgomery highlighted that even with this year’s $350k increase that is an equivalent to Oakley’s property tax increase of 5-6%. All new revenue would go to pay for the county and that Oakley would not get 1-new officer.

Romick also noted that Oakley is paying unfunded liability to the county for officers who have never worked in the city.

“I’ve always been a big fan of the contract, it’s a favorable way to do it, but it’s come time now to look at it and say what are we getting from it,” said Romick. “Obviously we are not adding officers or growing as a police department. The definition of insanity is doing the same thing over and over again and expecting a different result and the last thing I want to be is to confirm I am crazy trying to do the same thing.”

Councilman Randy Pope appreciated that they were not putting out numbers because the city might be negotiating with numbers in the future until they become more concrete.

“I am a CALPERS member, I don’t want us to go the CALPERS route, once you are in PERS you are hooked and can’t get out without paying a ransom,” said Pope. “I think if in the future we decided, we can always get in, but you can’t get out without the ransom. PERS is not the ultimate that it used to be. We are seeing court decisions that PERS pensions can be modified when cities are in financial hardship.”

Pope encouraged staff to continue to research on retirement highlighting that even if they increase the dollar in salary for the money the city would be saving, they would be putting it into the officers. He favored letting the police officer decide where they are going to invest their money.

“That would be an attractive recruiting tool,” said Pope.

Mayor Doug Hardcastle asked if the city saved the $600k, how many officers it could bring. Montgomery stated it would be a few officers.

“I know you guys have really researched this like good detectives,” said Hardcastle. “I do appreciate the time put into this.”

Hardcastle requested a timeline of when the City could bring this to the public for a meeting.

“I am sure you have seen emails, Facebook saying we are not being transparent and doing things behind the scenes and that is not the fact because the public always has the chance to have their input known. This is a big item and we really need to go big and explain this item and would appreciate the public’s input,” said Hardcastle.

Romick asked about the City of Oakley’s unfunded liability at the moment where Montgomery stated the last number he heard was around $1.3 million—but noted it was a moving target on a variety of variables.

Councilwoman Vanessa Perry stated this was good to see the research that has been done.

“it seems like the overhead that we have been paying with the county, it seems like the only way to increase our police force is to go this route and I do think it would be good to have a public discussion and a workshop to let them know this is out there that this is not some idea that has just come up,” said Perry. “This is a good start to let people know what has been going on and why this might be the best way to go”.

The City is planning to host a public meeting at some point in the next 2-to-3 weeks so the public can participate in the process. The city is also encouraging comments via email.

Click here for the Staff Report.