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026-1995 DM . DEPARTMENT MEMORANDUM #26-1995 r MEMORANDUM FROM: All ACM's, Executive Assts, and Dept. Directors Jose GarCia-pedrosl city Manager July 2, 1995 TO: DATE: Subject: Overtime procedures effective immediately As we have discussed at various staff meetings over the last month, overtime costs have escalated this fiscal year beyond any prior projection, and every senior staff member has therefore been asked to take steps to avoid further overtime expenditures. I have now received a report that indicates that -- for the first 9 months of the current fiscal year alone -- overtime costs approximate $3.3 million. Not coincidentally, that figure is not substantially different from the projected budgetary shortfall in this fiscal year of over $3.8 million, especially if one annualizes the 9-month overtime expenditures. The report also notes non- uniform procedures for approval of overtime (including the after- ~ the-fact approval of overtime) and even the use of personnel from one department to work overtime in another department. One of the many procedural changes being studied for implementation as part of my restructuring of City government deals with the entire area of overtime, including specification of criteria for use of overtime, standardization of procedures, clear guidelines, proper supervisory approval, adequate documentation, and computerization of all record-keeping. These changes cannot be designed and implemented immediately; yet the City's budgetary deficit requires that further steps be taken to reduce this type of expenditure dramatically in the last quarter of this fiscal year. Accordingly, effective immediately, the following procedures will be in effect: 1. Absent an emergency, all overtime is to be approved in advance and in writing by the appropriate Department Director. Emergencies shall be documented promptly and in writing by the appropriate Department Director. Until a standardized, computerized reporting form is devised, a simple memorandum will suffice. .- 2. No Department Director shall approve overtime unless, in the judgment of that Department Director, such expenditure is absolutely necessary and unavoidable. Any question or doubt concerning need should be brought to the attention of the appropriate ACM or Executive Director, or of the City Manager. , r Memorandum July 2, 1995 Page 2 3. Every effort should be made to minimize the amount of overtime expenditures. For example, changes in an employee's "normal schedule" should be considered in lieu of paying overtime to that employee; use of lower-paid personnel (with lower overtime rates) is preferable where appropriate; no personnel from one department should be used by another department (with the consequent loss of supervision and accountability) without the approval of the City Manager. 4. No later than the lOth calendar day of each month, beginning with July 10, 1995, and for the immediately preceding calendar month (e.g., June 30, 1995), each Department Director shall submit to the Office of Management and Budget, with copy to the city Manager and the appropriate ACM or Executive Assistant, a report detailing all overtime approved, by date, employee, amount, and reason. All written approval memoranda shall be attached to each report. The fundamental watchwords to be remembered are efficiency, ~ reasonableness, common sense, and accountability. Any extended use of overtime by one department or employee is usually indicative of larger, systemic problem: inefficiency, poor scheduling, understaffing, or propensity for abuse. Recurring cases must be reviewed carefully by the appropriate Department Director for corrective action, including the replacement of inefficient or non- productive personnel. In these difficult budgetary times, we must work "smarter", do more with less, and demonstrate that we are as careful with the pUblic's money as the public expects us to be and that we are proud professionals every bit as efficient as anybody in the private sector. Nothing less will suffice to achieve the goal of making Miami Beach a paragon of governmental efficiency in this state. Please feel free subordinates who you feel thank you for what I know to disseminate this Memorandum should be apprised of its contents, will be your complete cooperation. to and JGP:rr c: Honorable Mayor and City Commissioners r rr\wp51 \momos\oemo. ot CITY OF MIAMI BEACH OFFICE OF MANAGEMENT & BUDGET "..... DATE: June 23, 1995 TO: Peter Liu Executive Assistant to City Manager PROM: m -"oseph P. Reilly \..~r. Management Analyst co; '-'-- ) SUBJECT: Overtime Review - Selected City Employees , ,', ,- \"', A review of overtime paid during fiscal year 1994/95 as of 4/16/95 has . -."\ been performed. A two-stage selection process was employed to review high volume and relatively large transactional overtime. The purpose of this review was to ensure that overtime transactions are being accurately paid, as supported by documented approvals and justification. SCOPE OP REVIEW ~ All employees with over $10,000 in overtime, fiscal-to-date as of April 16, 1995, were selected. This resulted in the selection of 59 employees (approximately 4% of the full-time workforce) from eight (8) different city departments. The majority of those selected (52 of the 59) were from the Police Department. The other seven (7) employees were from seven (7) different departments, as follows: City Clerk, Computers & Communications, Fire, Human Resources, Parking, Public Works, and Recreation. Fiscal-to-date overtime, it should be noted, includes "holiday" overtime. The fiscal-to-date total, including holiday overtime, for these 59 employees was $803,613. Tbis represented 24% or tbe city-wide total or $3,295,759 ror tbe same period. All payroll periods after January 1, 1995, were then reviewed where any of the 59 employees selected were paid for more than 40 hours of overtime. This stage of the selection/review included "non-holiday" overtime only. All supporting documents for the selected transactions were then reviewed for completeness and authorization/approval. In addition, the documentation process as well as specific examples of overtime assignments were discussed with the respective departments. ,--. BACKGROUND Fiscal 94/95 has been an unusual year for the City of Miami Beach in -- terms of special events. Most notable were the Summit of the Americas, Super Bowl, and the Pavarotti on the Beach Concert. These events required the services of the city for police security, as well as parking, recreation, and sanitation services. It is estimated that the total overtime costs for these events was approximately $ 233,000. Only about 10% of this is expected to be "reimbursed" by outside agencies. As part of this review it was estimated that the total overtime cost for the eight (8) departments reviewed will exceed their total budget by over $2 million for the 94/95 Fiscal Year. This estimate does not include "holiday" overtime, and compares with approximately $770,000 over budget for fiscal 93/94. Much of the increase in overtime was reported by the various departments as being due to staffing shortages, Most of the departments reviewed had vacancies. However, many of the departments had an increase in normal pay (fiscal-to-date) over the same period in FY 93/94, even after adjusting for the 6% across the board increase effective 10/3/94. This indicated that as a year-to-year comparison, based on actual staffing levels, these departments were staffed at, or above the prior fiscal -- year's levels. One notable exception was the City Clerks Office, where the fiscal to date normal pay was below the prior year's. Virtually all of the departments involved in this review also stated that they were experiencing increased activity, meaning assignments or "details", during the 94/95 fiscal year. SUMMARY OF FINDINGS &; RECOMMENDATIONS 1. Departments are using customized forms for their own preferred method of documenting overtime. Generally, overtime is approved after the fact at a supervisory level. That is, the employee is requested (volunteers) to work overtime, then after the work is done, it is documented and approved. The documentation includes a brief description and the number of hours worked. All of the overtime transactions reviewed, wi th minor exception, were documented/approved in this manner. o It is recommended that when overtime is assigned, the supervisor document the hours for which the employee will be paid. This would be, of course, with the exception of true emergencies, such as a police chase, or a water main break. r- -- -- 1'""', o It is recommended that a database application be designed for city wide use to detail departmental overtime by employees, dates, times/hours, type and explanation. It should be noted that the Police Department already uses a database application for this purpose. Their database form can be used as a model, although the specific application design, software tools to be used, etc. should be determined by Computers & Communications. This database concept could also incorporate the supervisor overtime log, as discussed above. In addition, this database concept could be broadened to be the "front end" for the payroll entry program. With the proper application of security some, if not all, of the paper documents ("time sheets", etc.) could be eliminated. 2. The documentation/approval is based on an "honor system". Only one (1) of the seven (7) departments sampled, Public Works, uses a time clock for its operation. However, the one employee selected, based on the above criteria, is a supervisor and not required to punch the clock. Generally, overtime hours are those in excess of the employee's "normal schedule". This is the general defini tion of overtime in the city's labor contracts. It is also the way in which the Payroll System was designed. Generally speaking, unless an employee is being "docked" for time within the "normal schedule, the system will calculate the OT rate for any hours entered as overtime, Certain instances of the overtime reviewed gave the "appearance of abuse", somewhat because the type of work documented did not appear to be something that had to be performed outside of the "normal schedule". In some of the cases reviewed there did not appear to be any attempt to adjust the employee's "normal schedule" because of a regular activity that requires the employee to work on hours outside of the "normal schedule". o It is recommended that whenever an employee is required to work a regular, ongoing activity such as overseeing sports activities at the parks, or assisting in the Communications/Dispatch Center, that the employee's "normal schedule" be changed as necessary to accommodate the activity. o It is recommended that a ci ty policy be established wi th regard to compensatory ("comp") time in lieu of overtime for all "non-exempt" employees; that this policy describe the proper assignment of "camp" time and the system for maintaining such time records. Further, it is recommended that the maintenance of "comp" time be incorporated into the database application described above. 3. Wi th the exception of the Police Department, the departments reviewed do not have a formal review process to evaluate overtime levels. r o It is recommended that all departments that pay overtime produce a monthly report, detailing the amount, type and explanation of overtime. This report should be submitted to the Office of Management & Budget in order to ensure appropriate funding sources for the overtime. The following addenda are attached to provide a summary listing the employees selected as part the review, and selected overtime examples reviewed with the departments (in alphabetical order): ADDENDUM 1 List of employees selected. ADDENDUM 2 Examples of overtime reviewed with the department head(s), The followina is a brief analvsis of the examoles of overtime as reviewed with the departments (in alphabetical order) included in the sarnole: r- , CITY CLERK One employee from this department was selected as part of the sample. It was reported that the purpose of the overtime was to catch up on a back- log in Commission Memoranda due to staff shortages, As of June 6, 1995 this Office was noted as having only eight (8) filled out of 13 budgeted positions. All of the overtime records examined were documented and approved by the City Clerk. COMPUTERS & COMMUNICATIONS One employee from this department was selected as part of the sample. It was reported that the purpose of the overtime was to install hardware/software at various city departments. As of June 6, 1995 this department was noted as having all of their budgeted positions filled. r All of the overtime records examined were documented and approved by the division head. FIRE -- One employee from this department was selected as part of the sample. It was reported that the purpose of the overtime was to assist in the Communications/Dispatch Center. Overtime forms were approved by varying supervisory personnel from the Communications/Dispatch Center. The overtime hours for this employee were documented as being outside of the "normal schedule", which in this case was a firefighter's A/B/C schedule. These overtime hours were charged to the Police Department, as these are reflective of staffing shortages in the Communication/Dispatch Center, HUMAN RESOURCES The employee selected from this department did not receive more the 40 hours of overtime during any of the payroll periods within the dates reviewed. Therefore, the overtime documentation was not examined. As of June 6, 1995 this department was noted as being staffed at the FY 94/95 authorized budget level. PARKING r One employee from this department was selected as part of the sample. It was reported that the purpose of the overtime was to catch up on a back- log in Parking related receipts, etc. due to staff shortages. As of June 6, 1995 this office was noted as having 66 filled out of 71 budgeted posi tions. Some of the overtime hours for this employee involved filling in as a parking attendant, when one or more parking attendants didn't come in to work. The overtime examples reviewed were noted as not being specifically approved on a separa te form or log. However, the overtime hours were placed on the department's weekly time sheets and approved by the department head. This does not detail the purpose for the overtime activity. Subsequent correspondence was supplied by the department head in the way of explanation. POLICE As mentioned above, most of the employees selected for review are in the Police Department. It was reported that a great deal of this -- department's overtime was caused by staff shortages due to "minimum staffing" levels, These "minimum staffing" levels were established by the Police Department years ago with the intention of providing a constant, acceptable level of police coverage for the city. Information supplied by the Police Department indicates that this type of overtime ("Manpower Shortage") accounts for approximately 40t of the total. - A separate Management & Budget analysis as of June 14, 1995 indicates that the total "sworn" personnel was 310 out of 356 budgeted for FY 94/95. The Police Department also provided information that, even though actual staffing levels are about the same level as last year, there are special details that were begun in FY 94/95 which require approximately 20 full-time police officers. Court overtime, based on the Police Department I s information, is estimated to be approximately 35t of the total overtime. The remaining 25t is due to activi ties such as: "administrative duties", "special details", "ongoing investigations, and "training". One of the examples reviewed with the department involved a "sworn" employee who has been assigned to an administrative function who, because of his computer expertise, was approved for overtime hours while working on his home computer because this activity fell outside of his "normal schedule". One of the computer projects the employee worked on overtime involved assisting the Public Information Office in the preparation of the "City Newsletter". PUBLIC WORKS r One employee from this department was selected as part of the sample. It was reported that the purpose of the overtime was to supervise the work crew for water main repairs. Overtime was documented on "Job Order" forms and also on the payroll timesheets. The documents were approved by the appropriate division/department heads, The employee selected is in a supervisory posi tion, al though enti tIed to overtime because of the job "classification". The specific examples of overtime which were reviewed with the department head involved a 3 day period in which the employee earned 45.5 hours of overtime. When asked to explain the number of hours, the Water & Sewer Superintendent stated that there were staff shortages and that the department had to rely heavily on a few good employees to perform these critical jobs. As of June 6, 1995 it was noted that the Water Division had 38 filled out of 42 budgeted positions. r RECREATION One employee from this department wa selected as part of the sample. It - was reported that the purpose of the overtime was to oversee and assist with sports activities at Flamingo ark. In this particular employee's case, there was no supporting docume ts to explain the overtime hours. It was discovered that this e ployee has had a longstanding "arrangement" for a regular amount of overtime, ostensibly because of the nature of the work and the diffi ulty in keeping track of the hours. This employee signed the timesheets as the "Attendance Supervisor". It appears that the employee also campi ted the time sheets for "exception" hours , incl uding overtime, for t e employees in the uni t which he supervises. This employee, it was no ed, is the supervisor for the parks maintenance at Flamingo Park. When questioned about the overtime the employee produced a written explanat'on relating to the times of various sporting events during the period in question. The employee stated that he actually worked more hours than hose submitted on the time sheets. Again, the overtime hours entered a e accepted and paid at the OT rate because they are assumed to be outs 'de of the normal schedule. As of June 6, 1995 the Recreation Vi ision was noted as having 83 out of 105 budgeted positions. Some of the e are seasonal employees who adjust to a full-time schedule in the surnm r months. r Attachments: Addendum I Addendum II J cc: Jose Garcia-Pedrosa, City Mana er -- EMPLOYEES WITH OVER $10,000 AS OF APRil 16, 1995 ADDENDUM I .,,-. ?ARTMENT EMP-ID LAST-NAME FIRST-NAME OVERTIME FTD$ (Includes "HOl" ) CITY CLERK 10483 MERANTE DOROTHY 14,165,52 COMPUTERS & COMMUNICATION 14283 CONCEPCION JR SERGIO 10,996,89 FIRE 12242 KORB STEVEN 12,125,74 HUMAN RESOURCES 8218 ROTH JUDY 10,807,86 PARKING 12198 CARRASQUILLO CARMEN 10,219.85 POLICE 11007 BARNES JESSIE 10,564,85 POLICE 11046 BEJAR SAMUEL 21,565,71 POLICE 13963 BERG DEBRA 12,702,73 POLICE 3138 BERGQUIST JACK 10,194,64 POLICE 10393 BRITTON REGINA 19,715,39 POLICE 2887 CAPUTO ANDREW 10,190,92 POLICE 11502 CHAMBERS RAYMOND 14,014.49 POLICE 12000 CORLEY JOHN 14,710,95 POLICE 9376 DOUGLASS FLEATA 12,726,03 POLICE 13745 ESTRAVIZ ALBERTO 13,728,67 '~111CE 11079 FEIGENBLATT EDWARD 11,540,80 , ..)lICE 12654 FLATH BERNARD 15,318,76 POLICE 12798 FONSECA MARITZA 20,622,55 POLICE 9946 GAM SAMUEL 11,860,43 POLICE 6002 GARDNER BRIAN 19,804,04 POLICE 10849 GUILLEM WILLIAM 15,004,79 POLICE 10405 HANKOFF LAWRENCE ' 13,317,34 POLICE 13367 HERNANDEZ DAVID 12,216,30 POLICE 10419 HODGES CURTIS 21,917,35 POLICE 8090 HUNKER THOMAS 23,591,66 POLICE 10190 JENKINS ROBERT 16,283,72 POLICE 12952 JIMENEZ MADELINE 10,853,94 POLICE 12702 JOHNSON BRUCE 16,616,77 POLICE 13651 JORGE RAUL 10,182,66 POLICE 12647 KING LUIS 11,975,45 POLICE 3073 KROLAK JOHN 12,039.14 POLICE 12460 LEE LEBBIE 13,129,38 POLICE 13082 LONDON CHARLES 10,124,55 POLICE 8679 LUCIUS WOODROW 10,657,81 POLICE 10410 MARCUS PAUL 12,517,37 POLICE 11472 MARTINEZ JR JOSE 12,046,79 POLICE 9518 MASTERS PAUL 17,874.21 POLICE 1741 MATTHEWS JOSEPH M 11,375.37 POLICE 5023 MILLICAN JERRY 10,361,79 POLICE 11452 MORGAN RONALD 10,411,80 .-- ,LICE 12787 MORGAN III HARRY 16,290,57 , OllCE 12323 NOVICK BETH 16,170.49 POLICE 11058 O'REGAN CORNELIUS 11,751.40 POLICE 12698 ORTEGA FELIX 10,271,76 EMPLOYEES WITH OVER $10,000 AS OF APRIL 16, 1995 ADDENDUM I - 'ARTMENT EMP-ID LAST-NAME FIRST-NAME OVERTIME FTD$ (Includes "HOL" ) POLICE 8212 REID DOUGLASS 13,330.83 POLICE 11535 REID KELLY 14,926,85 POLICE 11464 RILEY III WILLIAM 14,817,35 POLICE 12797 RODRIGUEZ OOAL YS 13,815.40 POLICE 12648 ROJO MARIO 12,999.77 POLICE 13357 RUDER BERNIE 16,473,10 POLICE 12905 SILVAGNI ROBERT 12,316,65 POLICE 13369 SLlMAN BRIAN 15,587,07 POLICE 10999 SMOLYANSKI PETER 10,963,99 POLICE 12897 SOSA RONALD 10,657,94 POLICE 11453 STAMP BARRY 10,033,44 POLICE 10400 TRUJILLO HECTOR 14,718,47 POLICE 12645 ZACARIAS ELlSEO 15,807,79 PUBLIC WORKS (WATER) 7728 HOLTON WILLIAM 12,346,54 RECREATION 9750 NEWTON CHARLES 10,258,72 r ,,- CITY OF MIAMI BEACH IWERTIME REVIEW - MA Y 1995 SELECTED EXAMPLES OF OVERTIME - FOR DISCUSSION WITH DEPARTMENTS ADDENDUM /I DEPARTMENT EMPLOYEE NAME OT HOURS PERIOD DA YS A VG WORKED ELAPSED HRS CATEGORY APPROVAL SIGNATURE Dorothy Merante 51,3 April 3, 1995- A ri115, 1995 13 4 Commision Agenda R. Brown Sergio Concepcion 38,2 Nov, 3, 1994- Nov, 6, 1994 4 J,london 182 Nov, 19, 1994 - April 14, 1995 147 1 upervise Fire Dispatch various Police (dispatch) su r, staff Carmen Carrasquillo 226.4 Dec, 27, 1994- Feb, 19, 1995 55 4 Records back-log, F. Rodriguez accounting functions, S, Francis attended parking eme en Samuel Bejar 38 Mar, 2, 1995- 4 10 Survelliance T. Hunker March 5. 1995 Raymond Chambers 16 Jan,24,1995 1 16 Super bowl J, Scarberry Press Pa 264 Jan, 9, 1995 - 61 4 Special Reports, M, Zaworski April 2, 1995 Presentations, 10 & Business Cards at Analysis Ci Newsletter 59 Mar, 8, 1995- 12 5 Data Entry B, Gardner Mar, 19, 1995 Tickets M, Zaworski Harry Morgan 49,5 Feb, 27, 1995- 7 7 Survelliance T, Hunker Mar, 5. 1995 elly Reid 54 Dec, 15, 1994- 1 5 Noise Complaint S, Robbins . CITY OF MIAMI BEACH pllERTIME REVIEW - MA Y 1995 SELECTED EXAMPLES OF OVERTIME - FOR DISCUSSION WITH DEPARTMENTS ADDENDUM /I DEPARTMENT EMPLOYEE NAME OT HOURS PERIOD DA YS AVG WORKED ELAPSED HRS CATEGORY APPROVAL SIGNATURE 45,5 Mar, 3, 1995 - Mar, 5, 1995 3 15 Water line repairs Dan Shepard Charles Newton 40 Nov, 28, 1994- Dee, 11, 1994 14 3 Soccer & Football field set-ups, ete, NOTE: DAYS ELAPSED = ELAPSED DAYS IN PERIOD WORKED AVG HRS = DAILY AVERAGE OF HOURS OVER PERIOD (ROUNDED TO CLOSEST NUMBER) THE LONGER THE PERIOD, THE LESS HOURS ON DAILY BASIS WOULD BE EXPECTED DATA WAS REVIEWED TO FOCUS ON ACTIVITIES WHERE THERE WAS EITHER A LARGE NUMBER OF HOURS (WITHIN A SHORT PERIOD) OR WHERE THERE APPEARED TO BE A SUSTAINED ACTIVITY OVER A LONGER PERIOD /"""- I""'