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Posted on July 17, 2015 at 8:06 AM by City Staff
City Manager’s Report
May 20, 2015
MCSO Law Enforcement Service Agreement – FY 2016
We are in receipt of an updated FY 2016 Cost Worksheet from MCSO in reference to the provision of law enforcement services to the City of Litchfield Park. In March of 2015, we were advised that the cost for MCSO services would be $687,277 for FY 2016. The updated calculation from MCSO sets Litchfield Park’s FY 2016 cost at $680,909; an adjustment to lower the annual cost by $6,368. MCSO discovered an error in the overtime and shift differential data used to calculate the contract rate.
Refuse/Recycling Collection Contract
I have completed the final DRAFT of the Refuse/Recycling Collection Service License Agreement specifications, to be bid on July 30, 2015. The Agreement commences on November 1, 2015, and ends on October 31, 2020; with up to two additional one-year terms. Currently, our City Attorney is reviewing the final DRAFT.
The Request for Proposals will be advertised on Friday, July 3 and Friday, July 10; with a mandatory pre-proposal conference on Thursday, July 16, 2015.
There will be no opt-out provisions for recycling, although participation in the actual recycling efforts is optional. We are attempting to communicate the message that greater participation in the recycling program reduces the tonnage of waste taken to the landfill; which in turn, reduces the monthly cost of refuse collection to all residents. Litchfield Park makes its recycling program easy for the resident, but its impact on the cost of refuse collection is only outweighed by the environmental impact of reducing the waste stream from our community. Currently, Litchfield Park recycling efforts only diverts approximately 18 % of its waste; which is low. We are hopeful that our educational efforts raise the diversion rate to at least 33% within the next two years.
Land Purchase from Dragon and Crane
We are continuing with the previously discussed schedule of acts to be in compliance with the Purchase Agreement to secure the 16.67 acres from Dragon and Crane; including financing options as directed by the Mayor and City Council.
A brief summary of recent activity related to the purchase includes:
It is expected that a Staff recommendation for financing will be presented at the June 17, 2015 Council Meeting for discussion and possible action. If approved on June 17, closing and receipt of funds is anticipated to be completed by mid-July, 2015.
Acacia Circles and Vista Verde Circles
Staff is continuing to work with the Peninsula HOA to meet the requirements to facilitate conveyance of the five (5) existing HOA tracts to the City as rights-of-way. The HOA has hired its own engineer to obtain title reports, research deeds and record property data, conduct field survey to create boundaries, and prepare a map of dedication. The HOA is also working with a title insurance company.
MCSO Pension Funding and Unfunded Liability
The Arizona Public Safety Personnel Retirement System shows that MCSO has an unfunded pension liability of 44.5%, or equivalent to approximately $235 million, which started in circa 2001. Our Agreement for Law Enforcement Services includes a substantial portion attributed to retirement, with an even larger ratio of costs attributed potentially to the unfunded liability. Staff members of the Maricopa County contract municipalities have met to discuss possible approaches to manage said costs with the Sheriff’s Office.
The unfunded liabilities must be paid; there is no option not to pay. It is essentially a debt which must be repaid, like any other debt. If MCSO and the municipalities were to continue paying the debt off in the existing format, it will take 22 years to pay off the debt; that is assuming that each municipality utilizing MCSO services remain as contract entity.
The discussions have included the following issues:
The MCSO contract municipalities, Maricopa County and MCSO will continue to meet to discuss the options for paying this unfunded liability and the sharing of said costs.
Darryl H. Crossman