Is this proposal basically a name change rather than something more serious? The article is vague on details and somewhat contradictory, while the article title goes way beyond what vague details are in the article.
The City of Sunnyvale, near where I live, does not have a police department. Some time in the distant past they organized their police and fire people into a Department of Public Safety. The policing and fire-fighting is real, just a different name. They have the traditional rank titles and uniforms on the police side.
So this proposal may be a doubling down on stupid, but it could also be largely cosmetic (except if street level officers are answerable to the politicians in the city council, a compounding of stupid).