October 12, 2004

SUBJECT: Award of Contract to Conduct an Optimal Staffing Study for the Department of Public Safety and Budget Modification No. 3

Approval is requested for the award of a contract to Matrix Consulting Group of Palo Alto in the amount of $99,000 to conduct an analysis of staffing in the Department of Public Safety. The study will review the cost effectiveness and quality of service provided by the Department through current staffing levels and assignments and make recommendations for improvements as appropriate. The Special Project (823800 – Optimal Public Safety Staffing Study) created in FY2002/03 has $34,319 available to partially fund the study. Approval is also requested of Budget Modification No. 3 which appropriates $60,588 from the Asset Forfeiture Fund and $4,093 from the General Fund Non-recurring Events Reserve to Special Project 823800 to provide complete funding for the study.

The Department of Public Safety is unique in its approach to the provision of police and fire services. When the Department was created over fifty years ago, utilizing patrol officers to provide support for fire suppression was a cost-effective method of providing service to the community. Since the Department’s inception, major changes have taken place in the fields of police and fire directly impacting the Department of Public Safety’s operations. For example, a number of state and federal mandates regarding the training for, and the provision of, police and fire services have been instituted. Changes in society and advances in technology have presented new challenges for the Department and altered expectations from the community. The Department has also undergone radical changes in upper management over the last five years. While the Department of Public Safety has adapted over the years and been able to maintain a high quality of service, the opportunity has not been available to look back at the changes made out of necessity and evaluate the effectiveness of the resulting organization.

Initially, the Optimal Staffing Study was created at the direction of the Office of the City Manager to find the optimal balance between patrol full staffing and the use of overtime to create operational efficiencies to help offset increases in officer recruitment costs. As the study evolved, it was realized that it is impossible to look at Police Services without including the rest of the Department due to the unique integration that is Sunnyvale Public Safety. Initial research was completed by the Finance Department indicating that while there was possibly potential for service improvements, the study would need to be completed by someone with analytical skill and expertise in the fields of police and fire operations. Utilization of experts would ensure an unbiased review and provide the report a level of credibility acceptable to both labor and management. The study was put on hold by the City Manager pending outcome of the budget reductions being reviewed by Council for the FY 2003/2004 Budget. At that time, concerns about efficient utilization of resources in Dispatch also arose as a result of reductions in that program.

As the Council considered various alternatives to deal with the City’s continuing financial problems for the FY 2004/2005 Budget, the Departments of Finance and Public Safety were once again directed to resume the Optimal Staffing Study of the Department of Public Safety including police, fire and dispatch operations, in the hope of affirming that current management and staffing practices are resulting in the highest possible level of service for the dollars invested.

As the largest portion of the City’s Annual General Fund Budget, it is essential that the City take steps to ensure that the dollars are being well spent. The majority of the Department of Public Safety’s budget is expended on personnel costs. Because the deployment and management of personnel in Public Safety has not been objectively evaluated in a number of years, it is important that the Optimal Staffing Study be undertaken to provide empirical data upon which to make staffing decisions. In order to ensure the information provided to Council is credible, unbiased and based on proven best practices, the use of an outside consultant is imperative. The Department of Finance, while capable of providing analytical expertise, does not have the capacity to do so in a timely manner due to staffing shortages. Matrix Consulting Group brings analytical expertise, knowledge of nationwide best practices in the field of public safety, experience conducting this type of staffing study in multiple other jurisdictions, and sufficient staff to meet the necessary timelines.

The City issued Request for Proposals (RFP) No. F0305-72 in May 2004 which invited proposals from consultants interested in performing an Optimal Staffing Study for the Department of Public Safety in the areas of police, fire and communications.

The scope of the project is to analyze all aspects of emergency service provision, including police, fire, and dispatching activities as outlined below, and present alternatives to improve or maintain current levels of service delivery within the available resources.

POLICE SERVICES: The selected consultant will analyze:

• The effectiveness of patrol staffing levels while maintaining a 4 day/11 hour schedule. Topics for consideration will include, but not be limited to: staff assignments, planned leave, worker’s compensation leave, disability, call volume, response to fire calls, non-directed patrol time and training.

• The organization and staffing of specialty assignments, including traffic, crime prevention, and investigations. Analysis will address rotation policies, skill requirements, training, and workload.

• The use of overtime vs. straight-time to achieve cost savings without jeopardizing the health and safety of employees or the community.

• Clearance rates, benchmarks and other objective indicators of program effectiveness.

• Minimum staffing requirements to support fire in light of call load.

FIRE SERVICES: The selected consultant will analyze:

• The effectiveness of current apparatus location, staffing levels and division organization. Topics for consideration will include, but not be limited to: staffing assignments, planned and unplanned leaves, skill levels, and training.

• Use of mutual and auto aid agreements with surrounding entities.

• The organization and staffing of specialty assignments, including Fire Prevention and Hazardous Materials Response and Prevention. Analysis will address rotation policies, skill requirements, training, workload and effectiveness of current procedures.

• The use of overtime vs. straight-time to achieve cost savings without jeopardizing the health and safety of employees or the community.

• Benchmarks and other objective indicators of program effectiveness.

DISPATCH SERVICES: The selected consultant will analyze:

• The effectiveness of current staffing levels and configurations. Topics for consideration will include, but not be limited to: staffing assignments, planned and unplanned leaves, skill levels, training, hiring and retention of employees, and cost-effective shift scheduling.

• The use of overtime vs. straight-time to achieve cost savings without jeopardizing the health and safety of employees or the community.

• Benchmarks and other objective indicators of program effectiveness.

Potential consultants were notified about the Request for Proposals through direct mailings and through the DemandStar by Onvia public procurement network. Twenty-three firms received proposal solicitation documents. Six proposals were received, as follows:

A selection committee made up of representatives of the Departments of Finance and Public Safety as well as the Public Safety Officers Association reviewed the proposals. Each proposal was evaluated, based on the following criteria as outlined in the RFP:

1. Adherence to the requirements of the Request for Proposals.
2. Depth of the project team’s experience and its relevance to the project described in this Request for Proposal.
3. Proposer’s understanding of the project requirements.
4. Proposed methodology and management plan for the project.
5. Proposed timeline for completion of services.
6. Total cost to the City.

Following review of the written proposals, three consultants were selected to continue in the process and were interviewed by the committee. The committee has agreed that the proposal submitted by Matrix Consulting Group offers the best value to the City for the following reasons:

1. The consultant exhibited a strong analytical background and experience in the areas being studied.

2. The consultant's technical advisors are well accredited in their respective areas of expertise and have experience with similar studies in other agencies.

3. Review of studies prepared by the consultant for other agencies and contact with references indicate the consultant provides a high-quality product in a timely manner.

4. The consultant is able to meet the timeline at a reasonable cost.

5. The location of the consultant will aid in accessibility and ease of follow-up during the implementation stage.

Staff, therefore, recommends award of contract to Matrix Consulting Group of Palo Alto.

While the project will be under the management of the Department of Finance, a Steering Committee made up of members of both the Departments of Finance and Public Safety, including both Directors, and a representative from the Public Safety Officers Association will oversee the work of the consultant. The Request for Proposals requires the consultant to begin with a preliminary meeting with the Steering Committee within one month of the award of contract. In addition, the consultant will meet with the Steering Committee on an ongoing basis to provide progress reports, share information and get direction, when necessary. It is expected that the draft report will be completed within four months of the preliminary meeting.

The total cost of the study will not exceed $99,000. Special Project 823800 - Optimal Public Safety Staffing Study has funds in the amount of $34,319 remaining at the end of Fiscal Year 2003/04. In order to completely fund this study, a budget modification will be necessary. It is recommended that Budget Modification No. 3 be approved, as detailed below including approval of the carryover of funds from Special Project 823800 from FY 2003/04 to FY 2004/05. The Asset Forfeiture Fund can only be used for police related expenditures. The percentage of the study that will be charged to the Asset Forfeiture Fund is based on an analysis of the Public Safety Department budget, which indicates that 61.2% is attributable to police activities and the remainder to fire activities. Accordingly, staff is recommending that 61.2% of the optimal staffing study be paid for by Asset Forfeiture funds. This amounts to $60,588 which is available in the Federal Department of Treasury reserve in the Asset Forfeiture Fund.

An additional $4,093 is needed to fully fund this project. It is recommended that these funds be appropriated from the Non-recurring Events Reserve in the General Fund.

1. Award a contract in the amount of $99,000 to Matrix Consulting Group to conduct an optimal staffing study of the Department of Public Safety and approve Budget Modification No. 3

2. Award a contract to a firm other than Matrix Consulting Group to conduct the optimal staffing study and approve the necessary Budget Modification

3. Do not conduct an optimal staffing study of the Department of Public Safety and do not approve Budget Modification No. 3

It is recommended that Council approve Alternative 1, to award a contract, in substantially the same form as the attached draft and in an amount not to exceed $99,000, to Matrix Consulting Group to conduct an optimal staffing study of the Department of Public Safety and approve Budget Modification No. 3.

Prepared by:

Karen Miller
Department of Finance

Reviewed by:

Mary Bradley
Director, Finance

Reviewed by:

Patrick Dwyer
Interim Director, Public Safety

Approved by:


Amy Chan
City Manager

Attachment
Draft Consulting Services Agreement (.pdf format)