April 19, 2018

Background• Council requested an OPP Costing in January 2015• The moratorium on costings was lifted in November 2015• First meetings with OPP occurred in April 2016• Site visit of our police station in July 2016• Various discussions, correspondence and site visits occurred with

the final proposal being received and presented at a public meeting of council on September 20, 2017

• November 9th, 2017 OPP attended council for a Q&A session on the proposal

• Building cost estimates received December 1, 2017• March 20, 2018 – OPP Presentation on billing model• Due to circumstances an extension was requested for Espanola’s

response time to be extended from March 20th, 2018 to May 22, 2018

Proposed Amalgamated Staffing

OPP Contract Proposal Costing Summary

OPP Contract Proposal Costing Summary

Salaries and Benefits

Uniform Members (Note 1) $/FTE Positions $ Inspector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155,356 0.20 31,071 Staff Sergeant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,918 0.20 25,984 Sergeant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,535 2.00 233,070 Constables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,826 9.00 889,434 Uniform Position (Rank to be determined). . . . . . . .

. . (Note 2) 98,826 1.00 98,826 Total Uniform Salaries 12.40 1,278,385 Overtime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Note 3) 69,161 Statutory Holiday Payout . . . . . . . . . . . . . . . . . . . . . . 3,499 43,388 Shift Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Note 4) 681 8,172 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Note 5) 345,902

Total Uniform Salaries & Benefits 1,745,007

Detachment Civilian Members (Note 1) Positions $ Detachment Administrative Clerk . . . . . . . . . . . . .

. . . Full-time 64,326 1.00 64,326 Total Detachment Civilian Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,326 Benefits (25.17% of Salaries) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Note 5) 16,191

Total Detachment Civilian Salaries & Benefits 80,517

Support Costs - Salaries and BenefitsCommunication Operators . . . . . . . . . . . . . . . . . . . . . 6,322 78,393 Prisoner Guards . . . . . . . . . . . . . . . . . . . . . . . . . . 1,698 21,055 Operational Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,520 56,048 RHQ Municipal Support . . . . . . . . . . . . . . . . . . . . . . . 2,358 29,239 Telephone Support . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 1,525 Office Automation Support . . . . . . . . . . . . . . . . . . . . . 628 7,787 Mobile and Portable Radio Support . . . . . . . . . . . . . . . 168 2,083

Total Support Staff Salaries and Benefits Costs 196,131

Total Salaries & Benefits 2,021,655

OPP Contract Proposal Costing Summary

OPP Contract Proposal Costing Summary

Other Direct Operating Expenses

Communication Centre . . . . . . . . . . . . . . . . . . . . . . . . . 203 2,517 Operational Support . . . . . . . . . . . . . . . . . . . . . . . . . . . 807 10,007 RHQ Municipal Support . . . . . . . . . . . . . . . . . . . . . . . . 219 2,716 Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,289 15,984 Mobile Radio Equipment Repairs & Maintenance . . . . . . 286 3,546 Office Automation - Uniform . . . . . . . . . . . . . . . . . . . . . 1,854 22,990 Office Automation - Civilian . . . . . . . . . . . . . . . . . . . . . . 1,689 1,689 Vehicle Usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,768 59,123 Detachment Supplies & Equipment . . . . . . . . . . . . . . . . . . . . . 505 6,262 Accommodation & Cleaning Contract. . . . . . . . . . . . . . . (Note 6) 1,188

-

Uniform & Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . (Note 7) 1,938 24,031

Total Other Direct Operating Expenses 148,865

Sub-total Estimated Gross Policing Costs 2,170,519

Uniform & Equipment Year-One Adjustment (Note 7/8) (23,644)

Estimated Annual Policing Costs $ 2,146,876

OPP Contract Proposal Costing Summary

OPP Contract Proposal Costing Summary

Salaries and BenefitsUniform Members (Note 1)

Total Uniform Salaries & Benefits 1,745,007 Detachment Civilian Members (Note 1)

Total Detachment Civilian Salaries & Benefits 80,517 Support Costs - Salaries and BenefitsTotal Support Staff Salaries and Benefits Costs 196,131 Total Salaries & Benefits 2,021,655 Other Direct Operating Expenses Total Other Direct Operating Expenses 148,865 Sub-total Estimated Gross Policing Costs 2,170,519 Uniform & Equipment Year-One Adjustment (Note 7/8) (23,644) Estimated Annual Policing Costs 2,146,876$ Uniform, Equipment and Vehicle Initial Costs (Note 8) 325,539 Total Estimated Policing Costs Including Initial Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,472,415$

OPP Contract Proposal Initial CostsUniform, Equipment and Vehicle Quantity Unit price Total price

Uniform and equipment - non-commissioned 12 $ 4,207 $ 50,481

Firearms (including use of force equipment) - uniform 12 $ 1,112 $ 13,339

C8A2 close quarter battle carbine per vehicle 4 $ 2,455 $ 9,820

Taser 6 $ 1,550 $ 9,302

Taser air cartridge operational - four per taser 24 $ 53 $ 1,279 Taser X2, Power Magazine, PPM - two per taser 12 $ 94 $ 1,122

Patrol vehicle 4 $ 37,555 $ 150,221 Mobile radio package opp-2 with repeater includes initial installation 4 $ 13,101 $ 52,404

Portable radio 12 $ 863 $ 10,356

Dragon eye technologies speed lidar (handheld laser) 2 $ 2,990 $ 5,980 Decatur genesis ii select dual antenna radar moving radar 2 $ 2,967 $ 5,934

Dräger 7410 glc - alcohol screening device 4 $ 575 $ 2,300 Intoxilyzer 8000c instrument 1 $ 9,880 $ 9,880

Simulator require 2 2 $ 1,560 $ 3,120

Total Uniform, Equipment and Vehicle Costs $ 325,539

Espanola Police Service2017

Administration (budget)

Main office Operations

Police Services Board 18,970

Police Chief 215,500

Office Operations 70,500

Civilian Personnel 470,720

775,690

Officers

Officers 1,261,240

Ride 8,902

Community Policing Program 146,650

Safe Communities Program 146,600

Court Security 21,908

1,585,300

Espanola Police Service cont’dFacility Maintenance (Utilities, Janitorial, Bldg Mtce) 43,800

Stores & Supplies(Equipment, Firearms, Drug Prevention & Training) 16,000

59,800

OtherEnforcement (Gas, Oil, Licence, record checks, commun equip, snow mach) 46,340

Revenues:Enforcement (parking, bylaw, alarm fees, misc.) (10,100)Civilian (Criminal Record Checks $9,000, dispatch & 911) (55,737)RIDE (8,902)Community Policing Program (30,000)Safe Communities Program (70,000)Court Security & Prisoner Tspt (21,908)

(196,647)

Net Department Costs 2,270,483

Transition Period Comparison (Years 1 -3)

Transition Period Comparison (Years 1 -3)

2018 2019 2020 2021

EPS - Status Quo 2,511,250 2,565,550 2,616,860

OPP 2,173,450 2,216,520 2,260,480

Net savings - 337,800 349,030 356,380 One-Time Transition Costs

Uniform, equipment and vehicle 325,539 Severance, pension, other costs 1,219,936 Legal - OCPC Hearing 25,000 Building Renovation/Construction 450,000

2,020,475 - - -

Cumulative savings (cost) (2,020,475) (1,682,675) (1,333,645) (977,265)

Post-transition/OPP Billing Model

Billing Model Components• Base Calls• Calls for Service• Overtime• Court Security• Prisoner Transportation • Accommodation/Cleaning Services• Enhancements

Base Service

HH Cost 2022

Estimated costs under OPP Billing Model

Base ($191.35 for 2018 * 2% CPI) $ 191.35

Households 2,437

Commercial & Industrial 157 2,594 $516,220

Calls for Service

• Utilized the OPP Tool for estimating based on current UCR codes

Calls for Service• EPS logs an average of 3,470 calls/incidents under the Uniform Crime

Reporting system• Approximately 1,677 of these are counted in the OPP Calls for Service Cost

Estimate (48%) the remainder do not transfer over to the OPP template• This is the result of

– Highway Traffic Act calls included in the Base Service – items which are logged into the UCR system but may not necessarily be

considered a Call for Service i.e. Criminal Record Checks– Other items which may be considered a provincial responsibility

• Approximately 52% of items recorded in the UCR system do not correspond to the OPP Calls for Service Estimate, this supports the rationale for a 3 year transition period to obtain consistent reporting

• There is a risk that actual calls for service could be recorded differently by OPP and actual costs could vary significantly than estimated

Billing Model• Calls for Service - Indexed 2% per year from 2018

– 2022• Overtime estimated at OPP provincial average of

5.41%• Court Security – assumed 1 Full-time equivalent

(FTE)• Prisoner Transportation – indexed at 2% per year

to year of transition• Contract enhancements – provincial average of

6.5% of total base plus calls for service

Billing Model (Year 4 -10)Estimated costs under OPP Billing Model HH 2022 2023 2024 2025 2026 2027 2028

Base ($191.35 for 2018 * 2% CPI) $ 191.35 Households 2,437

Commercial & Industrial 157 2,594 516,220 526,540 537,070 547,810 558,770 569,950 581,350

Calls for Service 766,780 782,120 797,760 813,720 829,990 846,590 863,520

Overtime 5.41% 69,410 70,800 72,210 73,660 75,130 76,630 78,170

Court Security (1 FTE) 136,480 139,210 141,990 144,830 147,730 150,680 153,690

Prisoner Transportation (2018 cost - $2.19) $ 2.19 6,140 6,260 6,390 6,520 6,650 6,780 6,920

Contract Enhancements (6.5%) 83,400 85,100 86,800 88,500 90,300 92,100 93,900

OPP Costs 1,578,430 1,610,030 1,642,220 1,675,040 1,708,570 1,742,730 1,777,550 Estimated Policing Costs including Board and facility costs 1,646,140 1,678,710 1,711,890 1,745,720 1,780,280 1,815,490 1,851,380

Other on-going costs

Bylaw enforcement 88,320 90,090 91,890 93,730 95,600 97,510 99,460

Total Costs 1,734,460 1,768,800 1,803,780 1,839,450 1,875,880 1,913,000 1,950,840

Revenues: 2022 2023 2024 2025 2026 2027 2028Enforcement (parking, bylaw, alarm fees, misc.) (11,150) (11,370) (11,600) (11,830) (12,070) (12,310) (12,560)Criminal Record Checks (9,930) (10,130) (10,330) (10,540) (10,750) (10,970) (11,190)RIDE (9,830) (10,030) (10,230) (10,430) (10,640) (10,850) (11,070)Court Security & Prisoner Tspt (27,660) (28,210) (28,770) (29,350) (29,940) (30,540) (31,150)

(58,570) (59,740) (60,930) (62,150) (63,400) (64,670) (65,970)

Net Department Costs 1,675,890 1,709,060 1,742,850 1,777,300 1,812,480 1,848,330 1,884,870

Billing Model (Year 4 -10)

Post-transition/OPP Billing Model

2022 2023 2024 2025 2026 2027 2028

EPS - Status Quo 2,632,170 2,718,520 2,812,900 2,777,370 2,884,920 2,942,590 3,000,380

OPP 1,675,890 1,709,060 1,742,850 1,777,300 1,812,480 1,848,330 1,950,840

Net savings 956,280 1,009,460 1,070,050 1,000,070 1,072,440 1,094,260 1,067,020

Cumulative savings (cost) (20,985) 988,475 2,058,525 3,058,595 4,131,035 5,225,295 5,651,763

KPMG independently reviewed the projections and verified the key assumptions utilized in the analysis.

Cumulative Costs/Savings

(3,000,000)

(2,000,000)

(1,000,000)

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

OPP Projected Costs in Comparison to Other Communities

OPP Projected Costs in Comparison to Other Communities

• If Espanola was an OPP policed community that fell under the existing model, it is estimated our per property costs would be $572/property

• 2018 OPP policed communities range from $245 -$721/property

• A sample of six similar sized Section 10 communities ranged from $269 - $632

• The current estimate appears reasonable in comparison

• Another measure to consider in determining where Espanola may fall within the range of other OPP policed communities in terms of cost is a long-term comparison of the overall crime severity index

OPP Projected Costs in Comparison to OPP Projected Costs in Comparison to Other Communities

2030405060708090

100110

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Crime Severity Index Averages for - Espanola, Municipal, OPP, and Ontario

Espanola OPP AverageOntario Average Municipal Average

Crime Severity Index

• Overall Crime Severity Index is comparable to OPP policed communities, the Ontario average and a sample of municipalities

• Espanola’s statistics may fluctuate a little more due to a smaller population size than the larger groups in the comparison

• Espanola’s crime statistics do not indicate a significant need for calls for service which would negatively impact the projected costs

OPP Utilization of Facilities

• It is expected that the following positions would physically be located at the current EPS Facility– Detachment Commander (.2 FTE)– Analyst– Crime Unit Detective Sergeant (.2 FTE)– Administrative– Community Safety Officer– Court Officer/Court Security– 2 Detective Constables

• The Highway 17 location would be the reporting location for which the Constables would report in/out

Contacting Police

• The current Espanola Police Station is open to the public 24/7

• If OPP is providing the service the office would be open for regular office hours and there would be a phone outside which will automatically call police if the visit is outside of these hours

• Criminal reference checks for residents can be requested during regular office hours.

Summary• EPS is a community based police service• OPP provides an integrated policing model• One time transition costs are estimated to be $2,020,475• Bylaw enforcement will be required• Savings during the Transition period will range from $337,800 in

2019 to $356,800 in 2021• It is estimated the transition costs will be fully recovered in Year 5

(2023)• Savings under the current billing model could be approximately $1

million per year after the transition period• Approximately 90% of policing costs are wages and benefits, Year 4

cost reductions may come with a reduction in FTE’s

• Estimated savings over the 10 year period amount to $5,651,763

• This assumes the billing model will remain the same or similar for the period

• There will be no significant impact to policing costs or grants

• Financial projections are best estimates at a point in time and subject to changes

Summary Cont’d

Cynthia Townsend, CPA,CA,CMACAO/Treasurerctownsend@espanola.ca705-869-1540 ext. 2102