HomeMy WebLinkAbout09 - PH-1 - Special-Community Event Rates for Sworn - 7/5/2011CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 5, 2011
ITEM NUMBER:
SUBJECT: SPECIAL/COMMUNITY EVENT RATES FOR SWORN (POLICE AND FIRE)
PERSONNEL
DATE: JUNE 29, 2011
FROM: FINANCE DEPARTMENT /FINANCIAL PLANNING DIVISION
PRESENTATION BY: BOBBY YOUNG, BUDGET AND RESEARCH OFFICER
FOR FURTHER INFORMATION CONTACT: BOBBY YOUNG, BUDGET AND RESEARCH OFFICER
(714)754-5241
RECOMMENDED ACTION
Provide direction to staff when calculating the City's rate determination for sworn
personnel, used when billing for special/community events, by excluding overhead and
indirect costs, and to amend Administrative Regulation 2.13.
BACKGROUND
As set forth under Administrative Regulation 2.13, City staff annually determines personnel
rates charged to users for both special events and non -special events and these rates are
approved by the Chief Executive Officer (CEO). This listing of rates also includes both
sworn and non -sworn personnel. In determining the rates, staff begins with the regular
hourly top step rate and adds all benefit costs associated with each position. These benefit
costs include PERS, health benefits and Medicare. As allowed within the administrative
regulation, staff also includes administrative costs (overhead and indirect). The total of this
calculation is the Straight Time Hourly Rate. Staff then calculates a Special Event/
Overtime Rate at one and a half (11/2) times the straight time hourly rate.
ANALYSIS
Given recent City Council desire to make the City more attractive for special events, staff
conducted a survey of hourly rates charged by other cities in the county for sworn (Police)
personnel — Attachment 1. Upon noticing the City of Costa Mesa was the highest of those
surveyed, Finance staff was requested in March to review the current calculations to
determine if the hourly rates could be altered to more closely align with other cities in the
county. Finance staff currently calculates the rate using a full cost reimbursement method,
which includes the top step hourly amount plus an overhead and indirect cost amount.
Therefore, staff recommends excluding just the overhead and indirect cost rates from the
calculation, thereby reducing the overall hourly rate to be charged. Even though under the
current administrative regulation, the CEO has authority to approve the hourly rates, the
CEO desired this item be presented to City Council. Unfortunately, staff was not able to
bring this item before City Council any earlier, and therefore requests any new rates to be
effective as of April 1, 2011.
1
The table below provides examples of the current rate and how the rate would change
under the recommended option.
Table A
Rate Determination - Special
Event OT Rate
Calculation
Current
(excluding
Calculatio
OH and ID
Percent
n Method
cost rates)
Difference
Change
Police Officer
$ 151.90
$ 107.86
($44.04)
( 29.0%)
Police Officer - Motorcycle
157.11
112.29
( 44.82)
( 28.5%)
Senior Police Officer
159.22
113.08
( 46.14)
( 29.0%)
Sr Police Officer - Motorcycle
164.69
117.73
( 46.96)
( 28.5%)
Police Corporal
166.91
118.56
( 48.35)
( 29.0%)
Police Sergeant
183.94
130.70
( 53.24)
( 28.9%)
Police Sergeant - Motorcycle
190.30
136.10
( 54.20)
( 28.5%)
Police Lieutenant
224.90
159.96
( 64.94)
( 28.9%)
Fire Fighter
119.30
91.87
( 27.43)
( 23.0%)
Fire Fighter/ Paramedic
140.44
104.35
( 36.09)
( 25.7%)
Fire Engineer
141.69
107.83
( 33.86)
( 23.9%)
Fire Captain
164.57
124.62
( 39.95)
( 24.3%)
Battalion Chief
199.54
147.79
( 51.75)
( 25.9%)
As seen, the average decrease compared to the current rates is about 27%. Since the
hourly rate is charged for Special Events, any changes that would lower the rate might also
lower the expected revenue from events including the Orange County Fair and OC
Marathon. However, the City's revenue amount could be increased should the City attract
more special events requiring a fee.
In comparison with the budget, the City normally conservatively budgets Special Policing
revenue. In the FY 11-12 budget, staff is proposing a total of $400,000 in revenue from
Special Policing fees. Based on a recent review of the current year revenues, the estimated
amount to be received for FY 10-11 is approximately $500,000. Therefore, the proposed
budget for FY 11-12 is about 20% lower than the current year estimated actual.
ALTERNATIVES CONSIDERED
The City Council could provide other methods in determining the hourly rate amounts,
however the rate may not exceed the cost of providing the service (the current full cost
reimbursement method).
FISCAL REVIEW
As presented, the recommendation of excluding overhead and indirect costs when
determining the rate will reduce the rate by approximately 25%. This will have an impact on
the revenues the City would have otherwise received. However, for the 2011-12 fiscal year,
staff was conservative with its proposed revenue amount. Upon review of current estimated
ending revenue in FY 10-11, it would appear staff was about 20% less in its estimate for the
coming fiscal year.
E
Outside of this analysis, determining an exact revenue reduction amount is difficult given
that revenue is based on the number of events and the overall staffing needs of those
events in a given fiscal year. It should be noted, that an increase in events requiring sworn
personnel's assistance, could increase total revenue for Special Policing Fees.
LEGAL REVIEW
Legal review is not required.
CONCLUSION
Recently there has been a desire to try and make Costa Mesa more attractive to use for
special events. One element to a large special event is the potential need of sworn
personnel and therefore the event coordinators would reimburse the City for such costs. In
comparison to some other cities, it was concluded that Costa Mesa's current rate for sworn
services are higher than other cities. Therefore, staff is recommending to exclude any
overhead or indirect costs when calculating these rates with the effective date as of April 1,
2011. This will reduce the hourly rate by approximately 27% and potentially reduce revenue
compared to previous years. However, having a lower special events rate then previously
calculated, may entice more events to come to Costa Mesa and thereby increase future
revenue.
BOBBY YOUNG
Budget & Research Officer
Attachment(s):1 - Administrative Regulation 2.13
2 - Survey of Other Orange County Cities Traffic Related Event Fees
3
ADMINISTRATIVE REGULATION
CITY OF COSTA MESA
A. R. 2.13 (Revised)
Section 1-4
September 1, 1990
SPECIAL EVENT CITY SERVICES: Fees and Remuneration
I. Purpose:
The purpose of this regulation is to establish the policy
and procedure regarding: 1) the payment of personnel
performing special event duty and 2) the establishment of
fees to be collected from the party receiving the service.
SII. Policy:
A. The Director of Finance will compute the rate charged
and submit it to the City Manager for approval..
B. Coverage for all special events will require a
four --hour minimum charge.
C. Requests for more than four sworn Police Officers will
require one Sergeant position and requests for more
than three Sergeants will require one Lieutenant
position.
D. The following variables will be used to compute the
per -officer hour fee charges to the party receiving
the service:
1. The current top, hourly pay step of positions
involved at time and one half.
2. The current applicable fringe benefit percentage
rate.
3. The current administrative and collection costs.
E. The rates will be reviewed periodically, and if
needed, will be revised by the City Manager as
variables within the rate structure change.
F. The personnel performing the requested services will
receive pay at their appropriate overtime rates.
n
d
ADMINISTRATIVE REGULATION
CITY OF COSTA MESA
III. Procedure:
A. R. 2.13 (Revised
Section 1-4
September 1, 1990
Page 2 of 2
A. All requests for special event coverage involving
police personnel only must be submitted in writing on
Form PD34, "Request for Police Service." These forms
will be obtained from the Police Department. For all
other involved departments, use Form XXXX, "Request
for City Services." These forms can be obtained from
the Finance Department.
B. After the services have been rendered, the involved
Department(s) shall transmit the completed written
request(s) with the appropriate information to the
Finance Department.
C. The Finance Department/Revenue Division shall be
responsible for invoicing and collecting the
appropriate fee from the party receiving the services.
IV. Effective Date:
The effective date of this Administrative Regulation is
September 1, 1990.
ALLAN L. ROEDER
CITY MANAGER
CITY OF COSTA MESA, CALIFORNIA
RATE DETERMINATION
Effective: March 1, 2010
In accordance with Administrative Regulation 2.13, the following is a list of frequently asked for hourly rates:
Rates are based on FY 08.09 Memorandums of Understanding.
1. Includes annual Salary at top step, Other Compensation, benefits, Overhead and Administrative costs divided
1,800 (productive) hours/annually.
2. Includes Straight Time hourly rate, plus 1/2 of the basic rate [(annual Salary, Other Comp, Workers' Comp,
and Medicare) divided by 2,080 hours. Other benefits, Overhead and Administrative costs are excluded from this
portion of the calculations.]
Submitted by:
Assistant Director of Finance
Approved by:
Cily(Manager
Date:
File: FY 09.10 Wkshts.xls 03/1112010 4:45 PM
Special
Event
Straight
Overtime
Other City Positions
Time'
Rate 2
Animal Control Officer
$ 74.68
$ 93.03
Assistant Engineer
91.62
114.54
Associate Engineer
107.17
134.28
Code Enforcement Officer
72.99
90,89
Combination Inspector
78.88
98.36
Communications Officer
70.70
87.97
Communications Supervisor
89.69
112.15
Community Services. Specialist
66.57
82.75
Construction Inspector
78.88
98.36
Crime Prevention Specialist
73.34
91.32
Crime Scene Specialist
79.15
98.73
Custody Officer
81.32
101.51
Equipment Mechanic II
66.85
83.09
Equipment Mechanic III
71.51
89.00
Facilities & Equip Supervisor
99.84
124.97
Facilities Maintenance Tech
65.12
80.89
General Aide II
18.29
25.06
Lead Equipment Mechanic
79.78
99.50
Lead Maintenance Worker
75.38
93.91
Maintenance Assistant
53.68
66.36
Maintenance Services Mgr
137.07
170.42
Maintenance Supervisor
87.27
109.02
Maintenance Worker
58.61
72.63
Office Specialist 1
52.09
64.35
Office Specialist II
55.64
68.86
Sr Maintenance Worker
63,20
78.46
Rates are based on FY 08.09 Memorandums of Understanding.
1. Includes annual Salary at top step, Other Compensation, benefits, Overhead and Administrative costs divided
1,800 (productive) hours/annually.
2. Includes Straight Time hourly rate, plus 1/2 of the basic rate [(annual Salary, Other Comp, Workers' Comp,
and Medicare) divided by 2,080 hours. Other benefits, Overhead and Administrative costs are excluded from this
portion of the calculations.]
Submitted by:
Assistant Director of Finance
Approved by:
Cily(Manager
Date:
File: FY 09.10 Wkshts.xls 03/1112010 4:45 PM
Special
Event
Straight.
Overtime
Fire/Police Positions
Time 1
Rate 2
Battalion Chief
$ 164.80
$ 199.54
Fire Captain
134.76
164.57
Fire Engineer
116.16
141.69
Fire Fighter
97.99
119.30
Fire Fighter (Paramedic)
114.99
140.44
Police Cadet
18.29
25.06
Police Corporal
137.49
166.91
Police Lieutenant
184,72
224.90
Police Officer
125.22
151.90
Police Officer (Motorcycle)
129.24
157.11
Police Officer (Reserve)
39.83
54.57
Police Recruit
39.06
53.52
Police Sergeant
151.41
183.94
Police Sergeant (Motorcycle)
156.32
190.30
Police Support Svcs Reserve
23.70
32.47
Sr Police Officer
131.20
169.22
Sr Police Officer (Motorcycle)
135,43
164.69
Rates are based on FY 08.09 Memorandums of Understanding.
1. Includes annual Salary at top step, Other Compensation, benefits, Overhead and Administrative costs divided
1,800 (productive) hours/annually.
2. Includes Straight Time hourly rate, plus 1/2 of the basic rate [(annual Salary, Other Comp, Workers' Comp,
and Medicare) divided by 2,080 hours. Other benefits, Overhead and Administrative costs are excluded from this
portion of the calculations.]
Submitted by:
Assistant Director of Finance
Approved by:
Cily(Manager
Date:
File: FY 09.10 Wkshts.xls 03/1112010 4:45 PM
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