HomeMy WebLinkAboutMINUTES - 09272006 - SD.7 TO: BOARD OF SUPERVISORS Contra
FROM: Warren E. Rupf, Sheriff - - Costa
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DATE: September 27: 2006 0-•____
SrA �Oi'K"� County
SUBJECT: Housing Facility for Lateral Deputy Sheriffs rJ D.
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SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION:
1. ACKNOWLEDGE that the Board of Supervisors, on July 25, 2006, authorized the
i Sheriff to explore real estate in the County to provide low-cost part-time housing for newly
hired lateral Deputy Sheriffs and to return to the Board with cost estimates for facilities and
maintenance, proposed eligibility criteria, and long-term cost impacts.
2. RECOGNIZE that the feasibility of the proposal is substantially dependent on the
housing facility costs and the project scope, and meaningful cost estimates cannot be j
determined without first estimating those costs. i
3. ACKNOWLEDGE that the Sheriff has identified a newly constructed 12-unit facility in
Rodeo that appears to be suitable to house between 30 to 50 lateral Deputies. Remodeling
would be required to convert the garage spaces into a dormitory-like setting, sleeping two to
five lateral Deputies, while the upstairs areas would be utilized for all other activities, such
as cooking, bathing and common recreational space.
4. Therefore. APPROVE and AUTHORIZE the General Services Director, with the
i assistance of the Sheriff, County Administrator, County Counsel, and Community
Development Departments, to enter into negotiations for the lease, purchase, or
lease/purchase of real estate located at 701 San Pablo Avenue, Rodeo area, for use to i
provide low-cost part-time housing for newly hired lateral Deputy Sheriffs.
5. REQUEST the Sheriff to return to the Board with a comprehensive program proposal i
including facilities costs and ongoing operational and maintenance costs, project scope (i.e.,
recommended short- and long-term occupancy, criteria for eligibility, duration of incentive,
incidental costs), offsetting rental fees, financing plan, and budget impacts (estimates of net
ongoing costs/savings).
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II. FINANCIAL IMPACT:
The Sheriff has identified a newly constructed facility in Rodeo that appears suitable to
house between 30-to-50 lateral Deputies. Small, private sleeping areas would be located on
the first floor, and common areas (kitchens, rec. rooms, etc.) would be located on the
second floor. (Continued on next page.)
CONTINUED ON ATTACHMENT: x❑ YES SIGNATURE:
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U3*ECOMMENDATION OF COUNTY ADMINISTRATOR ❑ RECOMMENDATION OF BOARD COMMITTEE
[a'QPPROVEOTHER �
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SIGNATURE(S): /
ACTION OF 134D)N 10ln-Z Zn Co
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APPROVED AS RECOMMENDED [ OTHER [I A�� Q(.1/� ��• (�D
VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND l
CORRECT COPY OF AN ACTION TAKEN AND ENTERED
UNANIMOUS(ABSENT ) ON THE MINUTES OF THE BOARD OF SUPERVISORS
ON THE DATE SHOWN.
AYES: NOES: i
ABSENT: ABSTAIN: ATTESTED
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Contact: Lt Dennis Kahane 335-1537 JOHN CULLEN,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
cc: Office of the Sheriff � I
CAO—Justice System Administration
By: Deputy
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FINANCIAL IMPACT (CONTINUED):
The 16,910 square foot facility, which was completed last year, consists of twelve living
units; each of which could house 2-to-5 Deputies. The landlord is willing to negotiate either
the sale or the lease (or a lease-to-buy). He has advised that he has $2.750 million
invested in the project and will sell the facility at its appraised value, which he expects will
allow him a small profit above this amount. Alternatively, he is willing to enter into a "triple
net" lease at $1.00 per square foot per month (the "triple net" cost would be approximately
$1.29% per square foot or $19,100 per month). Additionally, there will be costs for i
furnishings and incidentals. Deputies utilizing the facility will pay the County a rental fee,
which will offset some part of the costs. i
III. BACKGROUND:
The high cost of housing in Contra Costa County has adversely impacted the Sheriffs
recruiting efforts. In recognition of the difficulty of recruiting in this economic environment,
the Board on July 25, 2006, gave the Sheriff the authority "to explore real estate in the
County available for use as multiple housing for newly hired lateral Deputy Sheriffs." I
Attached, for reference, is a research paper prepared by the Office of the Sheriff,
"Comparison of Lateral Recruiting Incentives." That paper, at pages 3 through 6 discusses
in significant detail the necessity for, and benefits of, the current proposal.
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IV. CONSEQUENCE OF NEGATIVE ACTION:
We cannot understate the negative impact of unaffordable housing prices on our ability to
recruit lateral Deputies. A failure to address this problem with an innovative solution would
likely cause us to fall short of our recruiting goals, thus jeopardizing our ability to provide
expeditious, first-rate service to our communities. The property at 701 San Pablo Avenue,
Rodeo, is unique in its design, size, location, and affordability, and failing to place this
building under lease or contract on an expedited basis would likely foreclose the opportunity
to pursue this innovative approach to recruiting lateral candidates.
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COMPARISON OF LATERAL RECRUITING INCENTIVES
Introduction
To maintain minimum staffing levels and operational mandates, the Office of the
Sheriff must rely on hiring a sufficient number of `lateral" Deputy Sheriffs. The
pool of 'recruit' (non-experienced) candidates has dwindled statewide, and the
lengthy training time prevents any immediate relief from staffing shortages. In
fact, given a 3-4 month period for testing and hiring, a 6 month academy and on- i
the-job training, it takes a full year to hire and train a recruit candidate.
With a significantly shorter testing period (no written or agility tests) and no need
to repeat the academy, a lateral candidate can be :'operational" in 3-4 months.
When vacancies are high and overtime is necessary to maintain minimum
staffing, the additional nine months to hire and train the recruit translates to over
$50;000 in overtime per Deputy position. Another benefit of lateral hires is the
ability to select individuals who have already demonstrated superior performance
as law enforcement officers.
Most agencies attempt to attract laterals. and the competition is heated.
Following is an evaluation of a number of lateral recruiting incentives, including a
proposal by the Sheriff to provide a 'rental subsidy' for out-of-area candidates.
Non-Monetary Incentives
Every agency has a 'brand." A number of factors define that brand: level of
professionalism; promotional and assignment opportunities, commitment to
training. management support of line officers. etc. Based on interviews through i
past years; the Sheriff's Office has a very favorable "brand" among candidates.
These factors are mostly `fixed in place," and any changes are made only
gradually. One non-monetary incentive that has demonstrable positive impact is
to allow the lateral some flexibility in the initial assignment. For many years. our
contract with the DSA required all new hires to begin work in the Custody
Division. This is a distinct "disincentive" to many lateral officers. Four years ago.
the Sheriff was able to modify the DSA contract to allow a lateral candidate the
possibility to begin his/her career with a patrol assignment.
While this option remains a valuable recruiting tool in specific cases, it can only
be exercised sparingly. For every lateral hire assigned immediately to Patrol.
either a Deputy with a few years of service must be denied the opportunity to I
transfer from Custody to Patrol, or a veteran Patrol officer must be involuntarily
reassigned away from Patrol. Clearly a serious morale issue would be created if
this option were used too frequently.
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Monetary Incentives
The primary lateral recruiting incentives have involved some type of monetary
advantage to the new hire. Following are the two most common incentives i
utilized by Contra Costa and other agencies.
Starting pay can be adjusted for laterals. For many years, we have offered
laterals a higher initial step in the pay range if they were currently being paid
above our first step. In certain cases, we have offered a lateral the top step of
the pay range. While this incentive is a powerful tool, it has become almost i
mandatory: it would be difficult to recruit a lateral who would be required to begin
with a pay reduction, while moving to one of the most expensive counties in the
state. There are also issues with the higher step job offer. A Deputy with more
seniority than the lateral and working side-by-side. could be earning far less than
the lateral. Additionally, a person hired above first step has fewer remaining
merit increases to act as motivation and incentive. Finally. lateral candidates
have often become upset at not being offered a higher step, even when the
guidelines have been explained. Thus raising the starting pay has become a
necessary tool, but one limited to swaying hiring decisions.
The hiring bonus (often packaged as moving expenses.' or a `training
differential') has become a staple in the arsenal of lateral recruiting. Agencies
competing for recruits must pay some form of bonus for lateral hires. Contra
Costa began offering this incentive four years ago, and the $3,000 lateral hiring
bonus has been helpful in recruiting candidates. Most large agencies. however,
offer a similar, or greater bonus.
The shortcomings of a hiring bonus and increased starting pay are that they do
not address any specific need and they have no lasting benefit. The officer
expects the added money, as these incentives have become standard in the
field. The more routine these incentives become. the less positive impact they
have on influencing an officer's ultimate career decision.
In summary; Contra Costa County has been on the cutting edge of recruitment
strategies for the last 15 years. Our"brand." and its presentation, has been well
received by both recruit and lateral candidates. We have a positive professional
reputation; a wide variety of assignments, shifts. and healthy promotional
opportunities: candidates are processed respectfully in a streamlined manner:
laterals may be considered for direct assignment to patrol; and we offer"above
first step" hiring and a lateral hiring bonus. Our staff has served on the advisory
committees of both Peace Officer Standards and Training Recruitment Projects,
and we have a reputation for"outside the box' recruitment techniques. We were
the first Sheriffs Office to hire a private industry Recruitment Manager, and we
have utilized every available strategy to encourage outside applicants. I
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Yet we have struggled in the competitive market of lateral hiring. It can be
theorized that we continue to ignore "the elephant in the living room-.-- the simple
fact that out-of-area lateral candidates have a very difficult time locating i
affordable housing in areas in which our officers might choose to live. We have
documented in previous reports how out-of-area new hires often do not move
closer to the county. and eventually transfer to an agency with a shorter
commute. We have also documented the very high percentage of deputy sheriffs
who live outside the county. Yet we have not, to this point. formulated a strategy
or plan that would directly address what is essentially a root problem in attracting i
quality law enforcement personnel.
Current Proposal
In an effort to address our most difficult lateral recruiting hurdle, the Sheriff has
proposed a strategy that is aimed directly at the high cost of housing in the
county. The concept is simple and straightforward: provide out-of-area lateral
hires with a "rent subsidy' in the form of a living arrangement specifically for law
enforcement officers in a housing facility provided by the county. The idea; much I
like the arrangements for military personnel. is to provide a "dormitory"
environment for incoming officers. Newly hired lateral Deputy Sheriffs would
make a small rental payment, and the county would subsidize the remainder.
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A survey of rents in Contra Costa indicates that average rates for a one bedroom
apartment in moderately affordable areas run from $1.000—$1,200 per month,
with many areas exceeding these averages. Much, if not all, of the salary benefit
in transferring to Contra Costa County is erased when the new officer seeks i
housing. Oftentimes our new hires have difficulty even finding appropriate
housing, at any price within their range.
To be effective, this proposal would require that the subsidized rentals be both
attractive and well maintained. in an area located within the county and within a
reasonable commute distance to those work locations generally assigned to new
hires. For example, the commute time from Brentwood. Antioch or Richmond to
Martinez would make subsidized housing in these areas inconvenient, and thus i
far less attractive as an incentive to new lateral hires.
The Sheriff has located an apartment complex that has recently been
constructed in Rodeo. The commute time from Rodeo to either Martinez or i
Richmond is very reasonable, and the officers would be moving into clean, new,
safe units. i
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The property, completed in April 2005 and located at 701 San Pablo Avenue.
Rodeo, consists of twelve units, ranging in area from 1.136 to 2.056 square feet i
each. Each unit is an attached. two-story apartment. with a garage on the first
floor and the primary living areas on the second floor. We would change this
configuration, changing the garage space into a dormitory-like setting, sleeping i
two-to-five lateral Deputies. The upstairs areas would be utilized for all other
activities: such as cooking, bathing, and common recreational space. It is our
view that thus utilized the building can house thirty-to-fifty Deputies. The building
has a total of 16.910 square feet. There are twenty-two exterior parking spaces.
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The owner and developer. Tom Gozzano, a local Realtor, is willing to either sell
or lease to the County. He is also amenable to entering into a lease/purchase i
agreement. Mr. Gozzano has advised that he has $2.750.000 invested in this
project. which includes $2.400.000 —$2,500,000 in land and construction costs
and ±$250.000 in post-construction debt service, insurance. and other costs.
These costs are accruing at approximately $12.000 per month. Mr. Gozzano is
willing to sell at the fair market value as appraised, an amount which he expects !
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L aIER.-iL HIRING INCENTIVES
is at, or only slightly above, his total costs to date. He is also willing to enter into
a "triple net" lease arrangement at $1.00 per square foot per month. The monthly
rental will vary according to the length of the lease. The 'triple net" costs would
result in an actual monthly cost in the vicinity of $1.29'/2 per square foot. In the i
event a long-term lease is agreeable, he is willing to provide an early termination
window (after a few years), in case the project does not meet our expectations.
All of these figures are necessarily approximations; as the actual numbers will
not emerge until the parties engage in negotiations.
Summary and Conclusion
So many larger agencies are now offering a lateral hiring bonus that lateral
candidates have come to expect such a payment. Our bonus keeps us in the
game. but does not advance the ball. Providing an affordable dormitory-style
housing alternative to usual sky-high housing costs, however, has the following
strategic advantages: i
• Addresses the key issue of affordable accommodations:
• Provides a financial incentive. (County Counsel will review whether this
incentive is, or is not. taxable.):
• Places the new officer in a living arrangement with brother and sister
officers; thus creating a `law enforcement village' atmosphere:
• Involves a unique, outside-the-box concept that would create immediate
interest among potential candidates throughout the state.
• Significantly, it also provides us with the ability to recruit quality lateral
officers from lower-paying agencies in rural or semi-urban counties.
These officers would not need to sell their homes or move their families.
but could commute here on a weekly basis. working a three-day a week
schedule (three 12-hour days), and be able to return to their homes for the
remainder of the week. i
The long term goal. of course, would be to diminish the crippling number of
vacancies caused by the current lack of qualified candidates. This would also be
the financial rationale for the county purchase of the property. Deputy Sheriff
vacancies are at a level where they are requiring mandatory overtime, on an
almost hour-for-hour basis. As of this writing, we have 41 Deputy vacancies. 21
of which are unbudgeted. As we have observed repeatedly, when overtime
becomes excessive; its assignment becomes a disincentive, and more vacancies i
may be created as officers look for work in other agencies. '
The Sheriffs Office has assisted the Peace Officer Standards and Training
Commission (POST) in its last two recruiting seminars. and our staff has i
authored several 'best recruiting practices: articles. The critical message from
the POST seminars has been very clear: agencies must develop recruiting
incentives that are fresh and creative. We cannot compete without continuous
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L aTER.xL HIRISG INCENTIVES
innovation. The Sheriff's current proposal of subsidized housing addresses one
of our major recruitment shortcomings with a unique, thoughtful concept. i
This Office is dealing with the largest number of sworn vacancies in our history,
and the current situation dictates an affirmative approach that creates recruitment
opportunities. We believe that the subsidized housing proposal is a very
attractive lateral incentive that deserves authorization. i
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The subject facility in Rodeo provides us with a unique opportunity to implement
the proposed housing subsidy incentive. The property remains on the market for
sale or lease. and thus it is necessary to move promptly in order not to lose this
opportunity. Thus. we wish to obtain the Boards authority to negotiate its lease,
purchase, or lease/purchase without delay.
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ADDENDUM to SD.7
October 3, 2006
On this day. the Board of Supervisors considered authorizing the General Services
Director to enter into negotiations for the lease. purchase_ or lease.purchase of propem
located at 701 San Pablo venue. Rodeo area, to provide low-cost temporary housing for
newly hired lateral Deputy Sheriffs. and taking related actions.
Obie Anderson of the Sheriff-s Department presented this item to the Board. He said that
General Services is looking to enter into negotiations to find the most advarnageous way
to proceed with a lease or purchase agreement. He added that the figures provided in the
Board's materials are estimates. and that the actual figures«ill come out during the
negotiations.
Supervisor Piepho asked if there is an example of this proposal an--«-here else in the
nation. or would this be a"test case." i
Commander Anderson responded that this. with slight modifications. is an example of
what works in the Fire Districts.
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Supervisor Piepho said there will be distinct differences from Fire Houses. such as the
treatment of families and guests to the housing facilities. and the potential for issues of I
liability-. She asked if the issue has been looked at across a wide spectrum with room for
consideration of other avenues, such as increasing incentives or housing subsidies.
Chair Gioia asked why the specific financial costs were not brought to the Board first. so
the potential value could be made clear. and then the specifics could be worked out.
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Commander Anderson responded that they didn't want to lose the property during the j
process.
Chair Gioia said that it is one thing to provide affordable housing if the goal is to have the
deputies Iive closer. but another to provide temporary housing to deputies who are still
going to lire with their families far away. He wondered if this issue would be better
placed in another far-reaching program that can help people afford to move to Contra
Costa.
Commander Anderson. noting that the entire profession is having a hard time recruiting.
agreed that the goal would be to see the deputies eventually move into the Count-.
Supervisor DeSaulnier asked how this proposal would fit into the already-final budget.
Chair Gioia requested that the Sheriff come back with financial information tas specified
in REQUEST No. 5 on the Board Order) so that the board can have that for a fuller
discussion.
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Supervisor t ilkema said this proposal should be looked at in terms of short-term. mid-
term, and long-term ramifications. She also noted that she would not want the residents of i
Rodeo to have a false impression about what this proposal would mean to them. She
sue-gested that as the proposal progresses, a presentation could be made to involve the
community of Rodeo.
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The Chair called for public comment. There were no speakers. The Chair confirmed that
this item should be returned to the Board in 4-6 weeks. i
By a unanimous rote bitty Supervisor Glover absent. the Board of Supervisors took the
follolving action:
APPROVED and AUTHORIZED the General Services Director. with the assistance of
the Sheriff. County Administrator. Count- Counsel. and Community Development. to
enter into negotiations for the lease,purchase, or lease purchase of real estate located at i
-01 San Pablo Avenue. Rodeo area. for use to provide low-cost temporary housing for
newlx-hired lateral Deputy- Sheriffs.
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