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17-0926_MISSION VIEJO, ET AL._E9_Agenda ReportTO: FROM: SUBMITTED BY: DATE: SUBJECT: City of San Juan Capistrano Agenda Report Honorable Mayor and Members of the City Council %n Siegel, City Manager Jacob Green, Assistant City Manager September 5, 2017 9/5/2017 E9 Memorandum of Understanding for Evaluation of Orange County Sheriff's Department Contract Law Enforcement Services RECOMMENDATION: 1) Authorize the City Manager to execute the Memorandum of Understanding between the City of Mission Viejo and the Orange County Sheriff's Department Contract Cities for the Orange County Sheriff's Department Contract Law Enforcement Cost and Efficiency Study; and, 2) Approve an appropriation of funds from General Fund Reserves for the Contract Law Enforcement Cost and Efficiency Study in the amount of $16,878. DISCUSSION/ANALYSIS A total of thirteen Orange County cities contract with OCSD for law enforcement services (Aliso Viejo, Dana Point, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Mission Viejo , Rancho Santa Margarita, San Clemente, San Juan Capistrano, Stanton, Villa Park, and Yorba Linda). The City's Five-Year Law Enforcement Services Agreement with OCSD was initiated on July 1, 2015, and will terminate on June 30, 2020. The third year financial obligation of the Five-Year Law Enforcement Agreement for Fiscal Year 2017-18 is $9,729,656, which is an 8.44% increase as compared to the Fiscal Year 2016-17 amount of $8,972,187, excluding year end credits. The Fiscal Year 2017-18 contract provides direct staffing of 30 full-time Orange County Sheriff's employees, which is the same as Fiscal Year 2016-17. In addition to the City's allocation of employees, the City also shares law enforcement resources with the other City Council Agenda Report September 5, 2017 Page 2 of 3 South Orange County cities. In Fiscal Year 2017-18, the City will share resources of 17.90 full-time employees, a slight increase from Fiscal Year 2016-17. With the exception of the number and classifications · of the direct positions funded by each individual city, the terms of the respective agreements and cost assumptions are, for the most part, uniformly applied to each contract city. Given the escalating costs for public safety services and the cost sharing structure of the contract, a group representing all City Managers of contract cities was formed to explore potential cost saving measures. The thirteen contract cities have come to the conclusion that it is timely and appropriate to evaluate the current agreement model, including assumptions and methodologies, and explore options and efficiencies to ensure the long-term sustainability of the OCSD law enforcement services contract. The thirteen contract cities are proposing to collectively hire an independent third party to review and analyze the existing contract service model, cost assumptions , and methodologies and allocations of costs to identify possible opportunities to stabilize costs. To that end , the cities have prepared an MOU, with the City of Mission Viejo assuming the role as the lead agency, in soliciting the Request for Proposals (RFP) and administering the related consultant contract. Additionally, the contract cities anticipate collectively hiring a contract project manager to oversee the contract work (Attachments 1 & 2). The OCSD provides outstanding law enforcement services to the residents, businesses and visitors of San Juan Capistrano, and deserves credit for maintaining the City's position as a safe community with a very low crime rate. Nonetheless, examining escalating contract costs and searching for efficiencies and best practice deployments would be of benefit to the entire community. The Sheriff and the County Chief Executive Officer have been briefed on the study and have expressed their support. FISCAL IMPACT: The initial estimate to complete the project is $300,000 with costs allocated proportionately based upon percentage of population among the contract cities . Based on the City's pro-rata portion, the City 's share of the cost is $16,878, or 5 .63% of total project costs (Attachment 3). This amount will be due and payable to Mission Viejo by September 22, 2017. The City's operating budget does not including funding for the proposed study and staff is recommending the Council appropriate funds from General Fund Reserves. However, it is noted the study will likely result in cost savings in future law enforcement contracts. ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA) the recommended action is exempt from CEQA per Section 15061(b)(3), the general rule that the CEQA City Council Agenda Report September 5, 2017 Page 3 of 3 applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Approval of a Memorandum of Understanding for Evaluation of Orange County Sheriff's Department Contract Law Enforcement Services would not be an activity with potential to cause significant effect on the environment and is therefore exempt from CEQA. PRIOR CITY COUNCIL REVIEW: • On June 15, 2015, the Council approved the Five-Year Agreement for Law Enforcement Services between the City of San Juan Capistrano and the County of Orange. • On June 21, 2016, the Council approved the First Amendment to the Five-Year Agreement for Law Enforcement Services between the City of San Juan Capistrano and the County of Orange . • On June 6, 2017, the Council approved the Second Amendment to the Five-Year Agreement for Law Enforcement Services between the City of San Juan Capistrano and the County of Orange. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable . NOTIFICATION: Lt. Scott Spalding, Chief of Police Services Dennis Wilberg, City Manager, City of Mission Viejo ATTACHMENT(S): Attachment 1 -Draft Memorandum of Understanding Attachment 2 -Draft Scope of Work Attachment 3 -Cost Allocation Summary MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF MISSION VIEJO AND THE CITIES OF ALISO VIEJO, DANA POINT, LAGUNA HILLS, LAGUNA NIGUEL, LAGUNA WOODS, LAKE FOREST, RANCHO SANTA MARGARITA, SAN CLEMENTE, SAN JUAN CAPISTRANO, STANTON, VILLA PARK, AND YORBA LINDA FOR THE ORANGE COUNTY SHERIFF'S CONTRACT LAW ENFORCEMENT SERVICES EVALUATION THIS MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is effective this ____ day of _______ , 2017, by and between the CITY OF MISSION VIEJO, a municipal corporation organized and existing under the laws of the State of California ("MISSION VIEJO") and the CITIES OF ALISO VIEJO, DANA POINT, LAGUNA HILLS, LAGUNA NIGUEL, LAGUNA WOODS, LAKE FOREST, RANCHO SANTA MARGARITA, SAN CLEMENTE, SAN JUAN CAPISTRANO, STANTON, VILLA PARK, AND YORBA LINDA all municipal corporations organized and existing under th~ laws of the State of California (the "CITIES"). The foregoing will hereinafter also be referred to singularly as a "Party" and collectively as "Parties." RECITALS WHEREAS, the Parties individually contract (the "Agreement") with the Orange County Sheriff's Department (the "Sheriff') for law enforcement services; and 1 ATTACHMENT 1 WHEREAS, with the exception of the number and classification of direct positions purchased, the terms of the Agreement and the cost assumptions, methodologies and allocations of indirect costs, regional/shared staffing, other cost/revenues are universally and uniformly applied to each Parties Agreement with the Sheriff; and WHEREAS, over the last ten fiscal years, costs charged by the Sheriff have increased on average by 33%, with approximately 26% of the increase occurring in the last five years; and WHEREAS, most changes to cost are not within the Parties control, but are within the control of the Orange County Board of Supervisors, the Sheriff, other County agencies, and the Orange County Employees Retirement System; and WHEREAS, the cost of the Sheriff's Agreement is becoming a greater percentage of the Parties General Fund budgets and threatens the provision of other vital municipal services; and WHEREAS, the Parties recognize that the provision of law enforcement services and overall public safety are a primary role of local government and agree that it is in the best interests of the Parties and the Sheriff to explore options and efficiencies that will ensure the long-term sustainability of the Sheriff's contract law enforcement services; and WHEREAS, the Parties also recognize the need to have an independent third party review and analyze the existing Agreement model, cost assumptions, methodologies and allocations, and cost-benefit of certain programs; and 2 WHEREAS, the Parties have expressed an interest to collaborate on retaining the services of a professional firm/team to evaluate the Agreement, analyze alternative service delivery models within the Agreement, review cost assumptions, methodologies and allocations, and determine the cost-benefit of certain programs and issue a final report with recommendations (hereinafter collectively referred to as the "PROJECT"); and WHEREAS, the Parties have agreed, in principle, to mutually and proportionally share in the costs of the PROJECT; and WHEREAS, the Parties wish to enter into this MOU for the purpose of formalizing an agreement between the Parties in order to facilitate completion of the PROJECT; and WHEREAS, each Party hereby commits that it shall designate a responsible individual(s) to act as the lead for the respective Party and that each Party shall further commit to attend regular meetings as agreed to by the Parties and to diligently and actively participate and cooperate with each and every other Party in order to facilitate the timely completion of the PROJECT. NOW, THEREFORE, the Parties enter into this MOU with respect to the matters set forth herein as follows: AGREEMENT 1. Coo pera t ion. The Parties agree to cooperate and coordinate to the extent practicable in the performance of the work required for the PROJECT. Furthermore, the Parties agree that each will cooperate and coordinate with the other in all duties, obligations, and activities covered by this MOU. Further, the Parties agree to 3 work diligently together and in good faith, using their best efforts in the performance of this MOU. 2. Designated Personnel. In order to ensure prompt and continued cooperation and coordination between the Parties, the Parties agree to each designate and authorize a responsible individual to act on behalf of and as the lead for the Party and to perform any administrative tasks needed as part of this MOU. Each Party shall designate its City Manager or the City Manager's designee as the responsible individual. The intent of the Parties is that the responsible individual shall possess the relevant experience and authority to address the various issues that may arise during the term of this MOU. Notwithstanding Section 3 below, all communications relating to this MOU or the PROJECT shall be exchanged between the designated individuals for each Party. 3. Term. This MOU shall continue in full force and effect through December 31, 2018, unless terminated earlier by mutual written consent of the Parties. The term of this MOU may only be extended upon mutual written agreement of the Parties. 4 . Contract Law Enforcement Services Evaluation . The Parties agree that the most efficient way to accomplish the goals of this MOU and explore various options and recommendations to improve efficiencies and control costs is to retain the services of a qualified professional firm/team to conduct a comprehensive Contract Law Enforcement Services Evaluation. A. As the lead agency, MISSION VIEJO will conduct a Request for Proposal (RFP) process and contract with a professional firm/team to undertake 4 and complete the PROJECT. A copy of the draft Scope of Work to be included in MISSION VIEJO's RFP is attached hereto as Exhibit A. The CITIES will assist MISSION VIEJO in the selection process. B. As the lead agency, MISSION VIEJO will hire an outside consultant to act as PROJECT MANAGER to coordinate the RFP process, oversee the work of the professional firm/team hired by MISSION VIEJO to undertake and complete the PROJECT and coordinate the activities and efforts of the Parties pertaining to the PROJECT. C. The Parties will share mutually and proportionally in the cost of the PROJECT and the PROJECT MANAGER. Exhibit B to this MOU shows a Cost Allocation Summary for each of the Parties based on an initial budget of $300,000. 5 . Ini tial Pa yment. The Parties agree to have the MOU approved no later than September 15, 2018. Upon approval, the CITIES agree to send executed copies of the MOU to MISSION VIEJO along with an initial payment equal to each Parties pro- rata cost share shown in Exhibit B. 6 . Final Tru e-up. Upon final completion of the PROJECT, MISSION VIEJO will provide a final accounting of all PROJECT and PROJECT MANAGER Expenditures (hereinafter, "COSTS") to the CITIES . Upon review and agreement of the final accounting of all COSTS, the CITIES will issue a notice of acceptance to MISSION VIEJO. If final COSTS exceed the initial PROJECT budget of $300,000, MISSION VIEJO will invoice each Party their pro-rata share of the excess COSTS pursuant to the Cost Allocation Summary in Exhibit B. CITIES agree to pay MISSION VIEJO within 5 sixty (60) days of receipt of said invoice. If final COSTS are less than the initial budget of $300,000, MISSION VIEJO will refund each Party their pro-rata share of the budget savings pursuant to the Cost Allocation Summary in Exhibit B. MISSION VIEJO agrees to issue said refunds within sixty (60) days after notice of acceptance of the final accounting by CITIES. 7. Applicab le Laws. This MOU shall be governed by and construed according to all applicable federal, state and local laws, statutes, rules, regulations, and ordinances. The Parties warrant that in the performance of this MOU, each shall comply with all applicable federal, state and local laws, statutes, rules, regulations, and ordinances promulgated thereunder. 8. Com p lete Agre e me nt. This MOU, including all exhibits and documents incorporated herein and made applicable by reference, constitutes the complete and exclusive statement of the term(s) and condition(s) of the agreement between the Parties and it supersedes all prior representations, understandings, and communications. The invalidity in whole or in part of any term or condition of this MOU shall not affect the validity of any other term(s) or condition(s). 9. Amendments. This MOU may only be modified or amended in writing by agreement of the Parties. All modifications , amendments , changes , and revisions of this MOU, in whole or in part, and from time to time, shall be executed by each Party and shall be binding upon all Parties. 10 . Counterparts . This MOU may be executed in one or more counterparts, all counterparts shall be valid and binding on the party executing them, 6 and all counterparts shall together constitute one and the same document for all purposes. 11. Effective Date. The above understandings shall serve as a guide to the intent and expectations of the parties involved in this MOU. This MOU shall be effective upon execution of all Parties. 7 IN WITNESS WHEREOF, the Parties hereto have caused this Memorandum of Understanding to be executed on the date first above written. MISSION VIEJO: CITY OF MISSION VIEJO By : ___________ _ Dennis Wilberg City Manager ATTEST: By: _________ _ Karen Hamman City Clerk APPROVED AS TO FORM: William P. Curley, City Attorney 8 CITIES: CITY OF ALISO VIEJO By : ____________ _ David Doyle City Manager ATTEST: By: ____________ __ Mitzi Ortiz City Clerk APPROVED AS TO FORM : Scott C. Smith, City Attorney CITY OF DANA POINT By: ___________ _ Mark Denny City Manager ATTEST: By: __________ ___ Kathy Ward City Clerk APPROVED AS TO FORM: Patrick Munoz, City Attorney CITY OF LAGUNA NIGUEL By : ____________ _ City Manager ATTEST: By: __________ ___ Eileen Gomez City Clerk APPROVED AS TO FORM : Terry Dixon, City Attorney 9 CITY OF LAGUNA HILLS By: ___ ----,-________ _ Bruce E. Channing City Manager ATTEST: By: _____________ __ Melissa Au-Yeung Assistant to City Manager/ City Clerk APPROVED AS TO FORM: Gregory E. Simonian, City Attorney CITY OF LAGUNA WOODS By: ____________ _ Christopher Macon City Manager ATIEST: By: ____________ __ Yolie Trippy Deputy City Clerk APPROVED AS TO FORM: David Cosgrove, City Attorney CITY OF LAKE FOREST By: __________ _ Debra Rose City Manager ATTEST: By: __________________ _ Stephanie Smith City Clerk APPROVED AS TO FORM: Matthew E. Richardson, City Attorney CITY OF SAN CLEMENTE By: ______________ _ James Makshanoff City Manager ATTEST: By: _______________ _ Joanne Baade City Clerk APPROVED AS TO FORM : Scott Smith, City Attorney 10 CITY OF MARGARITA RANCHO SANTA By: ____________ _ Jennifer M. Cervantez City Manager ATTEST: By: ___________________ __ Amy Diaz City Clerk APPROVED AS TO FORM: Gregory E. Simonian, City Attorney CITY OF SAN JUAN CAPISTRANO By: ____________ _ Benjamin Siegel City Manager ATTEST: By: _____________________ __ Maria Morris City Clerk APPROVED AS TO FORM : Jeff Ballinger, City Attorney CITY OF STANTON By: __________ _ James A. Box City Manager ATTEST : By : __________________ _ Patricia A. Vazquez City Clerk APPROVED AS TO FORM : Matthew E. Richardson, City Attorney CITY OF YORBA LINDA By: ___________________ _ Mark Pulone City Manager ATTEST: By: __________________ _ Marcia Brown City Clerk APPROVED AS TO FORM: Todd Litfin, City Attorney 11 CITY OF VILLA PARK ' By : ________________________ _ Steve Franks City Manager ATTEST: By: _____________________ __ Jarad Hildenbrand City Clerk APPROVED AS TO FORM : Todd Litfin, City Attorney ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY REQUEST FOR PROPOSALS SCOPE OF WORK ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY BACKGROUND Thirteen cities currently contract with the Orange County Sheriff-Coroner Department (OCSD) for law enforcement services: • Aliso Viejo • Lake Forest • Stanton • Dana Point • Mission Viejo • Villa Park • Laguna Hills • Rancho Santa Margarita • Yorba Linda • Laguna Niguel • San Clemente • Laguna Woods • San Juan Capistrano OCSD services the contract cities over three patrol areas; North Patrol, Southeast Patrol, and Southwest patrol. Over the last ten fiscal years, costs charged by OCSD for law enforcement services have increased on average by 33%, with approximately 26% of the increase occurring in the last five years. During the last four fiscal years, average growth in contract costs has ranged from 5.69% to 7.40% where prior years experienced growth ranging from 0.31% to 3.00%. While contract costs may change due to changes in service hours in a given year or changes in staffing levels requested by the contracting City, most changes to cost are not within a contracting City's control. Most changes are within the control of the Orange County Board of Supervisors (BOS), OCSD, other County agencies such as the County's Auditor Controller or Risk Management Unit , and agencies outside the County such as the Orange County Employees Retirement System (OCERS). The primary driver of increased costs over time has been increases in salaries and benefits. New programs implemented by OCSD have also impacted direct charges and allocated overhead. The cost model used by OCSD was developed prior to 2002 with minimal changes until approximately 2006 to 2008 when allocations for new programs or modifications for changes to existing programs began to be implemented. Changes include (but are not limited to) charges for Patrol Video Systems (PVS), addition of the Field Training Bureau, addition of the Southeast Substation including addition of positions, addition to Command Staff impacting allocated overhead. Costs for certain services have seen significant growth including salaries and benefits, enhanced helicopter services, and increased overhead costs being allocated to contract 12 ATTACHMENT 2 ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY REQUEST FOR PROPOSALS cities. At the same time, credits to cities from citation revenues have significantly decreased. The average rate of cost increases over the last four years (5.69%, 6.83%, 6.81 %, and 7.40%) significantly outpace growth in cities' revenues and changes in the Consumer Price Index for All Urban Consumers (CPI_U) for the region . Cost increases at current rates are no longer sustainable. Cities are looking to partner with OCSD and the County of Orange to develop solutions toward stabilizing costs while continuing the quality service that OCSD is known for. It is understood and agreed that the protection of our region, and each City specifically, is the primary role of government. To that end, the attraction, and more vital, the retention of top quality law enforcement personnel is of primary importance. Yet, costs must balance the ability to afford the expected service levels. OBJECTIVE All thirteen cities contracting with OCSD for law enforcement services desire to gain a more detailed understanding of the trends and issues resulting in annual increases in the cost of service, which continue to exceed 5% on an ongoing basis. The County leadership, including our Sheriff and County of Orange Executive Staff, also support the completion of this exercise. To this end, the cities desire to understand the underlying methodology of calculating and allocating specific costs and revenues charged or credited by OCSD to the contract cities. SCOPE OF WORK Project tasks shall include, but are not necessarily limited to, the following. If the Proposer feels that additional tasks are warranted, they must be clearly identified in the proposal. The Proposer is encouraged to recommend other tasks that it deems appropriate to achieve the objectives set forth in this RFP. 1. Meet with cities to understand their concerns related to the cost of law enforcement services . 2. Review the current internal cost study (compliant with Title 2, Code of Federal Regulations, Part 225 Cost Principles for State, Local and Indian Tribal Governments) and document changes occurring over the last ten years that have had significant impact (1% or more) on law enforcement costs charged to contract cities. Changes may include operational changes, rate changes, and changes to cost capture and allocation methodologies. 3 . Review a copy of Orange County Board of Supervisors Resolution No. 89-1160 dated August 8, 1989, directing the Sheriff-Coroner as to what services are to be provided county-wide to all Orange County cities at no-cost, and allowing recovery of 13 ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY REQUEST FOR PROPOSALS costs from contract cities to the extent that the level-of-service requested by the city is greater than that given to other Orange County cities free-of-charge. 4. For services received by cities per Resolution No . 89-1160 (per item 3 above), meet with OCSD staff to gain an understanding of how OCSD defines when contract cities are provided greater service than given to other Orange County cities. Document how the OCSD defines when a city "requests" greater service, and how OCSD tracks or monitors usage. 5 . Review and document the methodology used to measure and allocate costs for significant changes (as identified in item 2 above), and other programs as summarized below: a. Division, Department and County-wide overheads . i. Are supervision, administrative and other costs related to units falling under Resolution No. 89-1160 removed from total overhead costs allocated? ii. What has been the impact of increased staffing (both sworn and civilian) in overhead support units in terms of cost and performance? Have stated goals supporting staffing increases been met? b . Substations serving North, Southeast , and Southwest patrol areas . i. Is there opportunity to consolidate regional teams and share supervisory positions (e.g.: shared lieutenant and/or sergeants)? ii. Are any costs included in the Southeast Substation operating lease capital in nature that should be charged through the Countywide Cost Allocation Plan (CWCAP) and not direct as an operating lease cost? iii . Would it be feasible to allocate substation costs on a County-wide model versus the current regional model and what would be the cost impact on individual cities? c. Helicopter Services . i. What costs are included and excluded from helicopter services allocated? ii. How have services provided and costs changed since the agreement with ABLE (a joint agreement for maintenance with the cities of Costa Mesa and Newport Beach) was discontinued? 14 ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY REQUEST FOR PROPOSALS iii. Has there been a change in philosophy in what is base level service over the last five years? iv. Are calls for fire support, other law enforcement agency support, unincorporated support, etc. appropriately removed from city allocations? v. Do flight logs, calls for services, and priority level of calls, support the enhanced services allocations? vi. Is there a more accurate methodology for allocating enhanced helicopter services, such as square miles covered, calls for service, or other method compared to allocating by the number of deputy FTEs (see item six below). d. Field Training Bureau . i. Review program statistics for pass and fail rates for all participants broken out by first time and repeat participants since program inception. ii. Determine the number of participants who drop out and do not return . iii. Are program goals being met based on current statistics? iv. Do program statistics justify all costs allocated as patrol training that should be allocated, and are allocation methods appropriate? v. How do other County Sheriff operations (e.g.: Los Angeles, San Diego, Riverside, San Bernardino) allocate cost for training with contracting agencies? e. General Liability and Workers Compensation Annual Insurance Costs . i. Document the last five year history of annual costs charged to OCSD by the County Executive Office, Risk Management Unit. ii. Document whether the impact of jail claims and patrol claims on costs can be segregated or reasonably estimated? iii. Review claims over the last five years to determine if new programs are reducing risk and costs, e.g. do programs such as the Field Training Bureau appear to have a positive impact? f. Traffic Citation Revenue . 15 ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY REQUEST FOR PROPOSALS i. Document the collection, reporting and allocation methods for citation revenues. ii. Obtain traffic citation statistics for the last five years by city to include the number of citations issued and the value of fines charged. iii. Obtain a list of collections and outstanding fines for the last five years . iv. Review the statistics collected against revenues credited to cities to determine if allocations appear reasonable. g. Cost of Sworn Staff. i. Confirm that sworn staff are charged to contract cities at top step . ii. Determine if there is a more representative methodology of charging sworn staff to contract cities, such as an individual's actual rate of pay or an average rate of pay. iii. Determine if retirement rates passed through appropriately reflect rates for new sworn staff subject to lower benefit retirement plans. Review rate calculations projected by the County Executive Office for reasonableness. 6. Identify potential alternatives to cost allocation methodologies for the programs identified in item five above and calculate an estimated cost impact to cities for identified alternatives. a. Is there an alternative or more appropriate base of allocation (e.g. allocation based on number of calls or full-time equivalents assigned to a City, etc.)? b . Is the calculation of credits for vacancies and overtime assumptions a fair methodology? How can this be refined to better show actual cost of services at the contract level? 7. Meet with OCSD contract and cost unit staff to determine new programs that may impact law enforcement costs over the next two to five years. Determine if there is a method to forecast potential costs impacts. Results might be a cost range, a percentage impact, or other method that will allow cities to plan for future increases. 8. Can efficiencies be found by consolidating the accounting, purchasing and human resources units between the OCSD and the County to reduce administrative overhead costs? 16 ORANGE COUNTY SHERIFF-CORONER DEPARTMENT'S LAW ENFORCEMENT COST AND EFFICIENCY STUDY REQUEST FOR PROPOSALS 9. An optional direct purchase position under the Agreement is the School Resource Officer (SRO). Some of the cities purchase this position, some share the cost of an SRO with other cities and a few cities have opted not to purchase an SRO. The number of SROs purchased by each city varies. As an alternative to the current structure, determine if an optional, regional/shared staffing approach could achieve operational and staffing efficiencies and cost savings. 10. The Sheriff offers a Drug Enforcement Team (DET) as an optional program. If a city opts into the program, then they are required to assign one of their DSII Patrol deputies to the DET team and are charged their pro rata share of one DET Sergeant and one DET Investigator. Calculate the total cost of the DET program and evaluate its effectiveness and determine if the program justifies the assignment of a DSII Patrol Deputy as opposed to reassigning the DSII Patrol Deputy to the normal patrol complement. 11. As an alternative to the current DET program structure, determine if Deputy staffing of the DET team should fall under the regional/shared staffing approach and if this could achieve operational and staffing efficiencies and cost savings. 12. Under the current contract model, Investigators are direct purchase positions and each city is required to purchase Investigators. The number of Investigators purchased by each city varies. Supervision of Investigators is not included in the regional/shared staff, but is instead allocated under Division Overhead. As an alternative to the current structure, determine if a regional/shared staffing approach could achieve operational and staffing efficiencies and cost savings. 13. Provide samples of various County Contract models for consideration by the group. Provide comments for discussion if other models value review and potential for consideration. The successful respondent shall be required to retain all working papers and related supporting documents, including records of professional time spent, for a period of five years after delivery of the required reports, unless notified in writing by City of Mission Viejo of the need to extend the retention period. The Proposer further agrees to allow City of Mission Viejo staff to review such documents upon written request at any time during the retention period. (END OF SCOPE OF WORK) 17 ~ f) I ~ m z --l c..> EXHIBIT B Orange County Sheriff-Coroner Department Contract Cities Law Enforcement Evaluation Study Cost Allocation Summary Estimated Costs: Aliso Viejo Dana Point Laguna Hills Laguna Niguel Laguna Woods Lake Forest Miss ion Viejo City Rancho Santa Magarita San Clemente San Juan Capistrano Stanton Villa Park Yorba Linda Totals * -CA DOF Population Estimates as of 01/01/2017 $ 300,000 Population* 50,312 33,699 31,544 66,689 16,319 84,931 96,763 48,602 65,975 36,262 39,611 5,944 67,890 644,541 Population % Pro-Rata Cost Share 7.81% $ 23,417.59 5.23% $ 15,685.12 4.89% $ 14,682.08 10.35% $ 31,040.23 2.53% $ 7,595.64 13.18% $ 39,530.92 15.01% $ 45,038.10 7.54% $ 22,621.68 10.24% $ 30,707.90 5.63% $ 16,878.06 6.15% $ 18,436.84 0.92% $ 2,766.62 10.53% $ 31,599.23 100.00% $ 300,000.00