AddendumMEETING DATE: 6/16/15
ITEM NO: 12
i
!ps �ptOS' COUNCIL AGENDA REPORT ADDENDUM
DATE: JUNE 12, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LES WHITE, INTERIM TOWN MANAGER
SUBJECT: POLICE SERVICES AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND CITY OF MONTE SERENO
A. AUTHORIZE THE INTERIM TOWN MANAGER TO EXECUTE A TEN
YEAR AGREEMENT FOR POLICE SERVICES BETWEEN THE TOWN
OF LOS GATOS AND CITY OF MONTE SERENO IN THE AMOUNT OF
$812,800 FOR FY 2015/16, INCREASING ANNUALLY THEREAFTER
B. AUTHORIZE A FY 2015/16 BUDGET REVENUE ADJUSTMENT OF
$140,000 IN CONSIDERATION OF THESE ADDITIONAL REVNUES
REMARKS:
After the initial Staff Report was distributed on June 11, 2015, Staff received inquiries from
Council which are addressed below.
Also provided in Attachment 2 is public communication which was received after the Staff
Report was distributed.
1. Will Monte Sereno cover additional expenses attributed to union contract increases?
Answer: The proposed agreement is a fixed ten -year agreement, with an annual rate
increase. The annual increase is tied to the Employment Cost Index for Benefits, specific
to State and Local Government Workers, plus 2 %. The proposed agreement also
includes language which prevents the contract from increasing beyond 6% in any given
year. (Section S(f), page 13 of the staff report]. Staff is comfortable that negotiated
union contract increases for staff would be absorbed and accounted for in the annual
increase tied to the Employment Cost Index plus 2 %.
PREPARED BY: STEPHEN CONWAY
Finance and Administrative Services Director
Reviewed by: A4EAssistant Town Manager Town Attorney 15 -Finance
N_\MaR \AdminWorkFiles\20l5 Council Reports0une 16\Police Servieas Addendmn.doex
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: POLICE SERVICES CONTRACT BETWEEN THE TOWN OF LOS GATOS
AND CITY OF MONTE SERENO
JUNE 12, 2015
However, staff also recognizes that unanticipated costs may occur that are outside of the
Towns control. Therefore, language has been included in the proposed agreement
(Section 5(g), page 14 of the staff report], that allows for negotiating amended terns to
the agreement in the event of a "substantive change in personnel costs to the Town of Los
Gatos, including a reduction in police department workforce... " .
2. How was the 3 year number selected for no cancellation?
Answer: The City of Monte Serena requested an initial 3 year no cancellation agreement
to provide their community members with assurance that police protection would
continue in a similar manner as in the past. They also expressed a concern about the
Town contracting out services so this provided at least an initial safeguard. Upon
discussion and consideration of this request, staff determined that any change in service
model that the Town ofLos Gatos may shift to will require significant time for analysis of
the best model for the Town, transition, in terms of workforce reductions, determination
ofservice levels, negotiations with contracting agencies and any possible absorption of
staff, disposition of equipment and facilities, impact on highly valued volunteer services,
evaluation and comparisons of contract proposal costs and services to current service,
public meetings and hearings, etc. It is most likely that such a change in service model
would be a multi year process.
However, staff recognizes that there could be a more immediate reduction in police
services which would require reconsidering and negotiating a change in service levels
provided to Monte Sereno. As discussed above, section 5(g), page 14 of the staff report
allows for negotiating amended terms to the agreement in the event of a "substantive
change in personnel costs to the Town ofLos Gatos, including a reduction in police
department workforce... " These negotiations may occur at any point, regardless of the
three year no- cancellation provision. The Agreement further provides in Section 6 (b)
that after the initial three year period the agreement could be cancelled with a one Year
notice.
3. There are community members who have requested consideration of contracting
with the sheriff. Could such a move be allowable under the proposed contract?
Answer: There is no language in the proposed agreement that precludes the Town from
reviewing and considering contracting with the Sheriffs of ice. The three year no
cancellation provision commits the Town to provide some level of service (as service
levels maybe negotiated at any point) for the f rst three years; however for the reasons
mentioned above in answer 2, a transition to an outsourced service model would be a
multi -year process for the Town and could reasonably be expected to take up to three
years to implement or at a minimum fully phase out Town provided police services.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: POLICE SERVICES CONTRACT BETWEEN THE TOWN OF LOS GATOS
AND CITY OF MONTE SERENO
JUNE 12, 2015
4. Has the Monte Sereno Council approved this agreement?
Answer: The proposed agreement is scheduled to be heard by the City of Monte Sereno
at their June 16, 2015 Council meeting. The City Manager of Monte Sereno has been
fully informed of the Agreement (and offered input) and Town Council report.
5. How much will M.S. pay if hours exceed 900?
Answer: Under section 5(d) [pg. 13 of the staff report], Monte Sereno would pay for
additional investigation hours at the "actual cost to Los Gatos to provide the services. "
Activation of this provision requires satisfying two elements and is intended to protect the
Town from incurring substantial additional costs as in prior years, most recently with the
homicide investigation in 2013:
First —the City of Monte Sereno must incur a "significant crime or crimes"
(defined to include but not be limited to kidnapping, homicide, hostage event, serial
assault /robbery and /or other high level critical incident). When investigation of this
crime or crimes exceeds 320 hours, the Town will immediately notify the City of Monte
Sereno and discuss staffing levels.
Second —If at the end of the fiscal year, the Town provided more than the 900
hours of investigative services built into the base of the contract, Monte Sereno will then
pay for the additional hours provided over the 320 for the significant crime or crimes.
This payment will be at the town's actual cost, with no limit or cap on the hours that will
be reimbursed should both elements be met.
6. Page 7 Fiscal Impact unclear: $1.4 - 1.7 million over 10 years? Or $10.1 million?
Answer: Staff has estimated a range of anticipated "additional" revenue that Town can
anticipate to receive under the proposed agreement. This additional revenue is above
what the Town would receive if we kept the existing agreement. The proposed agreement
is an increase over the existing agreement of $140, 000 in year one (7/1/15- 6/30/15)
alone. Staff estimated the CPI increases each year for the ten years of the contract and
determined that under the proposed agreement the Town would receive anywhere from
$1.4 million to $1.7 million in additional revenue above what would be received under
the existing agreement. In total, over the ten- ears of the proposed agreement from July
1, 2015 —June 30, 2025, staff estimates the Town would receive $10.1 million to provide
police protection services to the City of Monte Sereno (of which the $1.4 million to $1.7
million would be the new revenue from this agreement adjustment should it be approved).
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: POLICE SERVICES CONTRACT BETWEEN THE TOWN OF LOS GATOS
AND CITY OF MONTE SERENO
JUNE 12, 2015
What services would our Community Service Officer provide? By way of example,
that officer may be handling noise, illegal signs, leaf blowers in Los Gatos. What
would s/he do in M.S.?
Answer: Section 2(A) of the proposed agreement [page 9 of the staff'reportj, outlines
general services provided under the agreement. Community Service Officer (CSO)
services may account towards patrol hours by responding to Monte Sereno for low level
misdemeanor crimes that involve no suspect information, including traff c reporting with
property damage only, tragic hazards, reports of misdemeanor vandalism as well as petty
theft and fraud. The hours spent in in Monte Sereno by the CSO will contribute towards
the contracted 80 hours of patrol time spent in Monte Sereno per week. Assigning a CSO
to respond to these types of calls affords the Chief of Police the ability to utilize a CSO
when appropriate, leaving Officer hours available for Los Gatos residents.
8. Will M.S. contribute to all Workers' Compensation expenses associated with our
police department? Please explain yes or no answer.
Answer: No, the City ofMonte Sereno will not be contributing to all workers'
compensation expenses. The workers' compensation rate built into the overhead will
reimburse the Town at a rate commensurate with the service hours provided to Monte
Sereno. This is the same manner in which the Town's Departments contribute towards
workers' compensation. However, should a Town employee incur an on the job injury,
requiring a leave from duty for recovering, this will be treated just as any other
insurance claim.
Attachment I (Previously received with Staff Report on June 11, 2015):
1. Proposed Agreement for Law Enforcement Services Between the Town of Los Gatos and
City of Monte Sereno
Attachment 2 received with this Addendum:
2. Public comment received from 11:01 am Thursday, June 11, 2015 through 11:01 a.m. Friday,
June 12, 2015
From: John Shepardson <shepardsonlaw @me.com>
Sent: Thursday, June 11, 2015 10:50 PM
To: Marcia Jensen; BSpector; Steven Leonardis; Marico Sayoc; Rob Rennie; Council; Les
White; Laurel Prevetti; Matt Frisby; Matt Morley; Lisa Petersen; Mike Wasserman; Carl
Guardino; Barry Chang 4 Cupertino City Council; bloventhal @cityofmontesereno.org;
whuff @cityofmontesereno.org; lallan @cityofmontesereno.org;
manstandig @cityofmontesereno.org; bcraig @cityofmontesereno.org;
sgarner @cityofmontesereno.org; hmiller @saratoga.ca.us; mcappello @saratoga.ca.us;
elo @saratoga.ca.us; mlbernald @saratoga.ca.us; rkumar @saratoga.ca.us; City Council;
rsinks @cupertino.org; gwong @cupertino.org; svaidhyanathan @cupertino.org;
dpaul @cupertino.org; pierluigi .oliverio @sanjoseca.gov; Rick Sung;
manager @cupertino.org; Debbie Bretschneider
Subject: Police Foundation Donations
Should the Town accept donations from an entity that is adverse to a third party review of the
Police Budget and supportive of a budget that is hurting the Town (ex. AG Streets).
If we keep the present humongous PD budget, in my view say good bye Town of Gatos and hello
City.
JS
ATTACHMENT 2
J
From: John Shepardson <shepardsonlaw @me.com>
Sent: Thursday, June 11, 2015 11:07 PM
To: Marcia Jensen; BSpector; Steven Leonardis; Marico Sayoc; Rob Rennie; Council; Les
White; Laurel Prevetti; Matt Frisby, Matt Morley; Lisa Petersen; Mike Wasserman; Carl
Guardino; Barry Chang 4 Cupertino City Council; bloventhal @cityofmontesereno.org;
whuff @cityofmontesereno.org; lallan @cityofmontesereno.org;
manstandig @cityofmontesereno.org; bcraig @cityofmontesereno.org;
sgarner @cityofmontesereno.org; hmiller @saratoga.ca.us; mcappello @saratoga.ca.us;
elo @saratoga.ca.us; mlbernald @saratoga.ca.us; rkumar @saratoga.ca.us; City Council;
rsinks @cupertino.org; gwong @cupertino.org; svaidhyanathan @cupertino.org;
dpaul @cupertino.org; pierluigi .oliverio @sanjoseca.gov, Rick Sung;
manager @cupertino.org; Debbie Bretschneider
Subject: Re: Police Foundation Donations
3 year no cancellation provision. So any
possible switch to Sheriff is gutted for 3 years.
At most 1 year cancellation provision (like
existing contract ?). Why a 3 year provision
when MS was disinclined to share on extraordinary
costs?
JS
M
MEETING DATE: 06/16/15
ITEM NO: ! Z
'B COUNCIL AGENDA REPORT
DATE: JUNE 8, 2015
TO: MAYOR AND TOWN COUNCIL
if
FROM: LES WHITE, INTERIM TOWN MANAG
SUBJECT: POLICE SERVICES CONTRACT BETWEEN THE TOWN OF LOS GATOS AND
CITY OF MONTE SEREIN
A. AUTHORIZE THE INTERIM TOWN MANAGER TO EXECUTE A TEN YEAR
AGREEMENT FOR POLICE SERVICES BETWEEN THE TOWN OF LOS
GATOS AND CITY OF MONTE SERENO IN THE AMOUNT OF $812,800 FOR
FY 2015/16, INCREASING ANNUALLLY THEREAFTER
B. AUTHORIZE A FY 2015/16 BUDGET REVENUE ADJUSTMENT OF $140,000
IN CONSIDERATION OF THESE ADDITIONAL REVENUES
RECOMMENDATION:
1. Authorize the Interim Town Manager to execute a ten year agreement for police services
between the Town of Los Gatos and City of Monte Sereno in the amount of $812,800 for FY
2015/16, increasing annually thereafter.
2. Authorize a FY 2015/16 budget revenue adjustment of $140,000 in consideration of these
additional revenues.
BACKGROUND:
Effective September 1, 1995 the Town of Los Gatos entered into a 29 year, ten month agreement with
tite City of Monte Sereno to provide police protection services within the city's boundaries through
June 30, 2025. However, with tire growing complexity of police work combined with the
recessionary impacts and reductions incurred by the Town, the Town Council directed staff to
analyze the existing agreement for police services and its impact to the Town of Los Gatos.
Staff determined that the Los Gatos Monte Sereno police services agreement facilitates more efficient
patrol and other police services due to the close proximity of the two communities. Since 2007/08,
the revenues received by the Town to cover these services averaged $580,000 annually. These
Reviewed by: LM Assistant Town Manager own Altorne --
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PREPARED BY: T Y d
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n Chief of Police
Director of Fin ce
Reviewed by: LM Assistant Town Manager own Altorne --
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