Overtime Study
Report of the
1999-2000 San Francisco Civil Grand Jury
SUMMARY
The Civil Grand Jury investigated overtime compensation, the way overtime is awarded to employees, its fiscal impact, its use by and effect on various departments, the manner in which overtime is controlled, and its short-term and long-term consequences for the City.
Some employees receiving overtime are able to substantially enhance their pensions due to overtime worked. Over the life of the employee’s pension, the City pays or incurs a pension obligation approximately 10 times the employee’s regular hourly rate for each hour of overtime worked. The cost of overtime in this instance is grossly disproportionate to the benefits received by the City and results in a huge windfall to the employee. The amount received by the employee can be approximately 20 times the employee’s regular hourly rate.
Causes of excessive overtime are identified, and examples of impact to the Retirement System are presented. Both department-specific and general recommendations are presented.
BACKGROUND
1. OVERTIME COSTS AND PRODUCTIVITY IN GENERAL
In its simplest form, overtime generally results in the City paying one and one-half times the usual hourly pay for each hour of work. While there are some savings from not having to incur the cost of fringe benefits and employment taxes when the City does not hire additional employees to perform needed tasks, the cost to the City for most overtime is approximately 30 percent greater than the employee’s regular hourly compensation. It is generally recognized that excessive overtime can decrease employee work performance and productivity.
2. PENSION ENHANCEMENT AND COST
Some employees receiving overtime are able to substantially enhance their pensions due to overtime worked. The cost of this overtime lasts as long as the employee receives pension benefits. The pension benefit received by the employee is more than the cost to the City due to accrual of pension plan earnings (e.g., interest or dividends) that reduce the amount the City is required to contribute to the City pension plan. City pension plan costs are based on an assumed 8.25 percent return; if the pension plan investments return more than 8.25 percent, as they have in recent years, the cost to the City is reduced accordingly.
Over the life of the employee’s pension, the City pays or incurs a pension obligation approximately 10 times the employee’s regular hourly rate for each hour of overtime worked. The cost of overtime in this instance is grossly disproportionate to the benefits received by the City and results in a huge windfall to the employee. The amount received by the employee can be approximately 20 times the employee’s regular hourly rate.
3. TIER 1 - EMPLOYEES ELIGIBLE FOR PENSION ENHANCEMENT
Certain employees have the ability to increase their pensions by working overtime. In 1976, the City Charter was amended to preclude overtime from being considered in calculating a subsequently hired employee’s pension. Currently only Miscellaneous Employees (everyone other than Police and Fire Department employees) employed prior to November 2, 1976, are eligible for pension enhancement due to overtime. As provided by the San Francisco Retirement System, as of July 1, 1998, there were 2,782 employees in this category (also known as Tier 1 Employees), broken out as follows:
|
Employee Type
|
Number of Employees
|
|
Municipal Railway
|
312
|
|
Craft Workers (Department of Public Works, Water Department)
|
320
|
|
Other
|
2150
|
|
TOTAL
|
2,782
|
Pensions for these employees are based upon age, years of service and "final" salary. Final salary consists of the employee’s highest compensation in any year of employment.
4. OPPORTUNITY FOR PENSION ENHANCEMENT
Institutionalizing practices at certain City departments results in overtime opportunities being afforded to those employees on the verge of retirement, thereby making an enhanced pension benefit opportunity available to the employee. Usually that results in overtime hours being worked by a soon-to-be-retired employee, which are far in excess of the overtime hours worked in previous years by that employee. The awarding of an overtime opportunity to an employee may be controlled by a MOU (Memorandum of Understanding) between a City department and the employee’s union. In some instances, the department MOU provides for rotating overtime amongst department employees and in other instances provides for senior employees (usually the highest paid) to have priority in the awarding of overtime. During investigation, the Civil Grand Jury was told that in some cases cronyism may be used as the basis for awarding overtime. A senior employee on the verge of retirement may thus be given the opportunity for pension enhancement. An existing practice affords an employee who is about to retire the opportunity to receive overtime assignments in his or her final years of employment. An employee then accrues overtime pay, resulting in a pension benefit that has been substantially increased over the amount of the benefit that would otherwise have been paid to the employee.
The Civil Grand Jury was informed that another method that can be used by Tier 1 Public Transportation Department (Municipal Railway) employees to increase pension benefits is to switch from supervisory positions back to regular driver positions in the year prior to retirement. Regular driver positions can offer greater chances for overtime, and also offer a greater variety of job tasks, than do supervisory positions.
5. UNFILLED POSITIONS USED TO FUND OVERTIME
Employees in various departments rely on being able to work overtime in order to supplement their income. Although this would suggest that those employees may be underpaid or otherwise in need of additional income, this need may create a disincentive to add employees when the requirement for additional staffing arises. Certain City departments have not filled authorized personnel positions and have used the amount budgeted for unfilled positions to pay overtime to existing employees, including those eligible for pension enhancement. Department heads have the latitude to shift budgeted employee compensation for unfilled positions to overtime pay.
METHODOLOGY
The Civil Grand Jury interviewed various City department administrators and reviewed fiscal year 1999 payroll records (July 1, 1998 through June 30, 1999) of all City Departments where overtime hours had exceeded 16 percent of regular hours. This report from the Controller’s Office reflects that approximately 2,600 employees reached this level of overtime.
Those departments with significant numbers of employees earning overtime pay substantially in excess of their base pay are the focus of this report. However, in order to reduce the data to a more manageable size, the following charts are limited to employees whose base pay is over $40,000 and whose overtime hours exceeded 25 percent of their regular hours.
MUNICIPAL RAILWAY
The Municipal Railway functions seven days a week. Employees who work a five-day workweek can call in sick or otherwise not show up on a regular employment day and come to work on one of their days off. This results in the employee being paid time and a half for the day worked. Even if pay is docked for the day not worked, the employee has increased his/her income for the week by the amount of extra overtime pay.
Of the 3,582 Municipal Railway-funded positions, 1,269 workers received overtime hours greater than 16 percent of their regular hours. Simply put, more than one of every three Municipal Railway workers fell into this category. This level of overtime may introduce a fatigue factor, and further studies may be able to show some linkage between personnel with significant overtime hours and those involved in traffic accidents.
It must also be noted that about 466 Municipal Railway employees in our current study had an annual salary above $40,000, and this amount was supplemented by overtime hours which was at least 25 percent of their regular hours. Just to highlight this situation, below is a listing of those employees who received more in overtime pay they received in their annual base pay.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
Jeffrey Chow
|
Transit Supervisor
|
$43,005
|
$90,368
|
2,046
|
|
Evette Geer-Stevens
|
Transit Supervisor
|
59,243
|
77,013
|
1,761
|
|
Wade Lee
|
Transit Operator
|
45,905
|
57,349
|
1,881
|
|
Danilo Farrales
|
Transit Supervisor
|
55,189
|
66,241
|
1,534
|
|
Edward Dennis
|
Transit Operator
|
44,981
|
53,572
|
1,742
|
|
Gene McClain
|
Transit Operator
|
44,058
|
52,842
|
1,697
|
|
James Rogers
|
Transit Operator
|
45,353
|
53,057
|
1,725
|
|
Stephen Dickson
|
Transit Operator
|
43,937
|
49,917
|
1,634
|
|
Udanial Hamilton
|
Transit Operator
|
45,371
|
50,657
|
1,662
|
|
Arturo Poblette
|
Transit Operator
|
45,837
|
50,987
|
1,672
|
|
Raymond Triplitt
|
Transit Supervisor
|
59,243
|
67,192
|
1,518
|
|
John Kantor
|
Transit Operator
|
44,997
|
46,865
|
1,537
|
|
Allan Buscaglia
|
Transit Supervisor
|
59,017
|
63,550
|
1,425
|
|
Leon Clark
|
Transit Operator
|
45,047
|
46,462
|
1,529
|
|
Robert Wiseman
|
Transit Operator
|
44,392
|
46,254
|
1,503
|
|
Prospero Sunga
|
Transit Supervisor
|
45,780
|
46,198
|
1,463
|
FIRE DEPARTMENT
There were 156 Fire Department employees who had overtime hours greater than 16 percent of their regular hours. Of this group, about 9 out of 10 were uniformed fire-fighters/paramedics. Again, this level of overtime may introduce a fatigue factor, and further studies might be able to uncover some linkages between front-line Fire Department personnel with significant overtime hours and those involved in street accidents or fire injuries.
Below is a listing of Fire Department personnel who had an annual salary over $40,000 and who additionally received overtime hours which amounted to more than 25 percent of regular hours.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
Larry Sinigiani
|
Firefighter
|
$57,258
|
$52,248
|
1,554
|
|
Charles Lesca
|
Firefighter
|
57,658
|
44,961
|
1,292
|
|
Robert Postel
|
Firefighter
|
56,057
|
42,810
|
1,272
|
|
Michael Arsanis
|
Fire Rescue Paramed
|
62,254
|
44,152
|
1,261
|
|
James Kenyon
|
Firefighter
|
56,857
|
39,907
|
1,188
|
|
Ray Crawford
|
Fire Rescue Paramed
|
62,554
|
42,893
|
1,153
|
|
Stephen Lynch
|
Firefighter
|
58,661
|
35,854
|
1,068
|
|
John Cavanaugh
|
Captain, EMS
|
63,822
|
40,082
|
900
|
|
Sebastian Wong
|
Captain, EMS
|
61,234
|
36,415
|
816
|
|
Patrick Gardner
|
Lt. FD
|
65,910
|
37,726
|
964
|
|
William Gunn
|
Plumber Sup.
|
72,372
|
40,673
|
782
|
|
James Beem
|
Fire Rescue Paramed
|
61, 856
|
34,220
|
920
|
|
M. Tragesser
|
Fire Rescue Paramed
|
63,139
|
33,938
|
916
|
|
James Dunson
|
Lt. FD
|
65,080
|
33,152
|
709
|
|
Michael Jones
|
Lt. FD
|
71,092
|
32,723
|
836
|
|
Timothy Howe
|
Fire Rescue Paramed
|
62,910
|
29,212
|
788
|
|
Ernest Ware
|
Lt. FD
|
65,538
|
29,046
|
744
|
|
Elyse Duckett
|
Firefighter
|
55,787
|
24,058
|
716
|
|
John Faulkner
|
Firefighter
|
56,057
|
24,179
|
720
|
|
Thaddeus Golas
|
Firefighter
|
57,258
|
18,200
|
540
|
|
George Bruce
|
Lt. FD
|
65,910
|
27,887
|
713
|
|
Sheila Reid
|
Payroll Clerk
|
45,159
|
19,050
|
592
|
|
Curtis Young
|
Lt. FD
|
76,913
|
33,433
|
721
|
|
M. Creedon
|
Firefighter
|
56,191
|
23,291
|
695
|
|
Conrad Brosas
|
Firefighter
|
56,057
|
23,197
|
688
|
|
Alfred Rizotto
|
Lt. FD
|
65,585
|
24,773
|
634
|
|
Rudolph Erler
|
Firefighter
|
65,960
|
26,438
|
677
|
|
M. Thompson
|
Firefighter
|
45,434
|
19,646
|
672
|
|
W. Demattei
|
Lt. FD
|
65,074
|
26,287
|
672
|
|
Vincente Cogal
|
Fire Rescue Paramed
|
62,722
|
19,064
|
516
|
|
Paul Wyrsch
|
Firefighter
|
56,857
|
22,541
|
672
|
|
Frank Agius
|
Firefighter
|
55,718
|
21,590
|
644
|
|
Gerald Coghlan
|
Firefighter
|
56,457
|
21,766
|
648
|
|
James Griffin
|
Lt. FD
|
65,073
|
24,844
|
636
|
|
D. Gerhardt
|
Firefighter
|
56,435
|
21,353
|
531
|
|
Eric Nylander
|
Fire Rescue Paramed
|
61,703
|
24,591
|
628
|
|
W. Landivar
|
Lt. FD
|
65,074
|
24,591
|
631
|
|
John Christy
|
Fire Rescue Paramed
|
74,049
|
24,534
|
663
|
HEALTH DEPARTMENT
Below is a listing of Public Health Department employees who had an annual base pay over $40,000 and whose regular pay was supplemented by overtime hours which were at least 25 percent of their regular hours.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
Charles Reinhart
|
Psych. Tech.
|
$48,914
|
$56,821
|
1,600
|
|
Frances Ye
|
Unit Clerk
|
45,251
|
39,541
|
1,264
|
|
William Riggs
|
Surgical Tech.
|
49,066
|
36,110
|
971
|
|
Josephine Perez
|
Surgical Tech.
|
49,101
|
33,350
|
967
|
|
Rose Coleman
|
Eligibility Worker
|
48,819
|
32,927
|
920
|
|
E. Anocleto
|
Lic. Voc. Nurse
|
47,474
|
31,699
|
882
|
|
Anene Ugbaja
|
Inst. Police Off.
|
45,980
|
29,693
|
838
|
|
R. Restauro
|
Inst. Police Off.
|
53,199
|
24,738
|
829
|
|
J. Ballanado
|
Lic. Voc. Nurse
|
48,118
|
24,738
|
819
|
|
Stanley Lee
|
Stores/Equip Asst Sup.
|
46,333
|
25,602
|
767
|
|
Marjorie Rubio
|
Lic. Voc. Nurse
|
48,443
|
26,826
|
763
|
|
F. Garcia
|
Health Team Leader
|
45,277
|
24,161
|
725
|
|
Yuan Hsu
|
Op. Room Nurse
|
63,002
|
41,290
|
820
|
|
Eric Cranston
|
Inst. Police Off.
|
51,176
|
28,568
|
705
|
|
Johnnie Chavez
|
Psychiatric Tech.
|
44,212
|
23,007
|
657
|
|
Adlaida Samson
|
Surg. Proc. Tech.
|
49,097
|
25,085
|
720
|
|
Delmy Hinds
|
Hosp. Eligibility
|
49,832
|
25,509
|
713
|
|
Mylene Espiritu
|
Lic. Voc. Nurse
|
42,109
|
18,519
|
648
|
|
E. Palacios
|
Truck Driver
|
41,879
|
20,846
|
568
|
|
Moises Tiglao
|
Radiologic Tech.
|
52,690
|
27,379
|
640
|
|
Samuel Cherry
|
Inst. Police Off.
|
47,796
|
19,980
|
581
|
|
N. Gammad
|
Lic. Voc. Nurse
|
46,189
|
15,281
|
568
|
|
John Majka
|
Inst. Police Off.
|
47,446
|
21,898
|
639
|
|
Judy Chou
|
Hosp. Eligibility
|
49,645
|
21,032
|
563
|
|
Marisa Allen
|
Lic. Voc. Nurse
|
43,899
|
18,482
|
578
|
|
V. Alibutod-Romabile
|
Lic. Voc. Nurse
|
40,606
|
16,546
|
541
|
|
Larry Prosper
|
Inst. Police Off.
|
53,610
|
21,277
|
542
|
|
M. Barquero
|
Lic. Voc. Nurse
|
47,552
|
16,955
|
518
|
POLICE DEPARTMENT
Of the 2,595 Police Department funded positions, 614 employees (or approximately one of every four employees) received overtime hours greater than 16 percent of their regular hours.
About 220 Police Department employees had an annual salary above $40,000 and this compensation was supplemented by overtime hours of at least 25 percent of their regular hours. To highlight this situation, below is a listing of those employees whose overtime hours exceeded 50 percent of their regular hours.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
James Gaan
|
Police Officer
|
$63,921
|
$71,361
|
1,566
|
|
M. Thompson
|
Sergeant
|
67,737
|
71,361
|
1,440
|
|
John Fewer
|
Inspector
|
68,990
|
61,796
|
1,248
|
|
Curtis Dowling
|
Police Officer
|
59,425
|
53,152
|
1,245
|
|
A. Johnson
|
Police Officer
|
59,425
|
52,084
|
1,219
|
|
Robert Ramos
|
Police Officer
|
56,114
|
49,072
|
1,220
|
|
A. La Rocca
|
Police Officer
|
55,573
|
48,400
|
1,202
|
|
P. Schlotfeldt
|
Police Officer
|
62,361
|
53,695
|
1,201
|
|
Ross Laflin
|
Police Officer
|
59,480
|
51,061
|
1,195
|
|
James Hickson
|
Police Officer
|
63,489
|
54,269
|
1,191
|
|
D. Clennell
|
Police Officer
|
63,183
|
53,827
|
1,181
|
|
Michael Gaynor
|
Inspector
|
68,398
|
57,831
|
1,167
|
|
Phillip Frenkel
|
Police Officer
|
56,110
|
46,394
|
1,152
|
|
Edward Weaver
|
Police Officer
|
62,410
|
49,311
|
1,100
|
|
Dominic Yin
|
Police Officer
|
58,408
|
46,184
|
1,101
|
|
Edbert Dare
|
Police Officer
|
63,837
|
49,960
|
1,095
|
|
M. Simmons
|
Police Officer
|
58,076
|
45,404
|
1,083
|
|
G. Constantine
|
Police Officer
|
59,198
|
46,224
|
1,082
|
|
Robert Bonnet
|
Police Officer
|
63,362
|
49,060
|
1074
|
|
Joseph Toomey
|
Inspector
|
68,990
|
52,356
|
1,059
|
|
J. Ongpin
|
Police Officer
|
59,767
|
45,035
|
1,055
|
PARKING AND TRAFFIC DEPARTMENT
Below is a listing of Parking and Traffic Department personnel who had an annual base pay in excess of $40,000 and whose base pay was supplemented by overtime hours which were at least 25 percent of their regular hours. We were surprised to find that painters dominated this category.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
R. Galarce
|
Painter
|
$50,081
|
$32,625
|
945
|
|
Victor Garcia
|
Painter
|
50,667
|
32,838
|
925
|
|
Romulo Ratola
|
Painter
|
50,667
|
30,534
|
871
|
|
Michael Hart
|
Painter
|
50,667
|
24,555
|
707
|
RECREATION AND PARK DEPARTMENT
Below is a listing of those employees who had an annual salary in excess of $40,000 and had their pay supplemented by overtime hours at least 25 percent of their regular hours.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
Roger Revel
|
Gardener
|
$42,447
|
$28,962
|
965
|
|
F. Halldorson
|
Gardener
|
41,753
|
27,166
|
906
|
|
Michael Bagdon
|
Gardener
|
41,753
|
17,466
|
585
|
|
Joseph Caputo
|
Gardener
|
41,753
|
18,651
|
622
|
|
S. Grech
|
Groundkeeper
|
45,955
|
17,689
|
537
|
SHERIFF’S DEPARTMENT
There were 117 Sheriff’s Department personnel who had overtime hours greater than 16 percent of their regular hours. Of this group, almost 97 percent were sworn deputies. Therefore, it seems that future studies should be made to determine whether some of the current Deputy assignments could be appropriately and adequately performed by non-law enforcement personnel.
Below is a listing of Sheriff’s Department employees who had an annual salary over $40,000 and who had supplemented their pay by overtime hours at least 25 percent of their regular hours.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
T. Bradley
|
Deputy Sheriff
|
$55,747
|
$52,244
|
1,350
|
|
M. Turner
|
Deputy Sheriff
|
43,449
|
39,880
|
1,287
|
|
Charles Gatson
|
Deputy Sheriff
|
50,318
|
40,387
|
1,116
|
|
Barry Bloom
|
Deputy Sheriff
|
45,351
|
34,167
|
1,026
|
|
Harry Lee
|
Deputy Sheriff
|
41,708
|
30,696
|
1,013
|
|
Malechi Burris
|
Sr. Deputy Sheriff
|
55,539
|
40,629
|
1,015
|
|
K. McConnell
|
Deputy Sheriff
|
42,967
|
31,234
|
1,007
|
|
Carolyn Gage
|
Deputy Sheriff
|
50,322
|
35,295
|
989
|
|
David Johnson
|
Deputy Sheriff
|
42,798
|
29,681
|
966
|
|
F. Dimapasoc
|
Deputy Sheriff
|
50,324
|
32,750
|
916
|
|
Dwight Hall
|
Deputy Sheriff
|
41,876
|
27,884
|
907
|
|
Lloyd Jones, Jr.
|
Deputy Sheriff
|
50,317
|
27,498
|
760
|
|
Sarah James
|
Deputy Sheriff
|
46,086
|
24,736
|
753
|
|
R. Johnson
|
Deputy Sheriff
|
41,949
|
22,584
|
621
|
|
Kevin Warren
|
Deputy Sheriff
|
50,317
|
26,717
|
742
|
|
April Johnson
|
Deputy Sheriff
|
42,202
|
22,135
|
743
|
|
Ernest Smith
|
Deputy Sheriff
|
50,322
|
26,159
|
727
|
|
D. Carter, Jr.
|
Deputy Sheriff
|
50,317
|
24,513
|
679
|
|
T. Catchings
|
Deputy Sheriff
|
41,950
|
19,977
|
565
|
|
A. Carrasco
|
Deputy Sheriff
|
50,317
|
23,073
|
646
|
|
Anna Payne
|
Sr. Deputy Sheriff
|
55,747
|
25,158
|
631
|
WATER DEPARTMENT
Of the 67 Water Department employees who received overtime hours greater than 16 percent of their regular hours, more than one third had a total annual income exceeding $100,000. Below is a listing of only those who had an annual base pay of more than $40,000 and who had their pay supplemented by overtime hours of at least 25 percent of their regular hours.
|
NAME
|
JOB
|
BASE PAY
|
OVERTIME PAY
|
OVERTIME HOURS
|
|
Samuel Botza
|
Inspector
|
$65,029
|
$43,689
|
937
|
|
Carl Spirz
|
Operating Engineer
|
60,116
|
41,327
|
887
|
|
Thomas Sutter
|
Plumber Supervisor
|
77,854
|
47,019
|
840
|
|
Norman Nelson
|
Plumber Supervisor
|
72,373
|
41,013
|
770
|
|
Patrick Shea
|
Truck Driver
|
49,137
|
28,273
|
740
|
|
William Teahan
|
Plumber Supervisor
|
72,372
|
39,285
|
742
|
|
Michael Lyons
|
Plumber Supervisor
|
72,233
|
37,807
|
709
|
|
Michael Reidy
|
Plumber Supervisor
|
72,373
|
37,406
|
697
|
|
Robert Tusch
|
Plumber Supervisor
|
72,373
|
34,457
|
661
|
|
Gerald Lyons
|
Plumber Supervisor
|
77,854
|
36,697
|
656
|
|
D. Gramberg
|
Stationary Engineer
|
65,251
|
30,777
|
632
|
|
John Teahan
|
Plumber Supervisor
|
72,373
|
33,607
|
630
|
|
Phil Marovich
|
Plumber Supervisor
|
72,373
|
32,468
|
624
|
|
L. Contreras
|
Plumber Supervisor
|
72,372
|
33,033
|
616
|
|
M. Spillane
|
Plumber Supervisor
|
72,373
|
32,934
|
613
|
|
Robert Sexton
|
Operating Engineer
|
59,360
|
28,052
|
590
|
|
W. Mecham
|
Truck Driver
|
49,137
|
22,282
|
569
|
|
Angus Pera
|
Truck Driver
|
50,492
|
23,712
|
587
|
|
R. McClean
|
Plumber Supervisor
|
72,373
|
29,921
|
572
|
|
Jorge Vicente
|
Truck Driver
|
49,157
|
22,825
|
565
|
|
Ralpheal Hale
|
Plumber Apprentice
|
60,485
|
24,619
|
560
|
|
D. McCarthy
|
Plumber Supervisor
|
72,373
|
29,556
|
552
|
|
Dennis Oneil
|
Operating Engineer
|
60,116
|
25,553
|
552
|
|
John Rincon
|
Truck Driver
|
50,677
|
20,473
|
533
|
|
Ronald Craig
|
Operating Engineer
|
59,829
|
24,646
|
532
|
|
T. Wortmann
|
Plumber Supervisor
|
72,373
|
28,548
|
533
|
POTENTIAL BENEFITS AND COSTS DUE TO OVERTIME PENSION ENHANCEMENT
Once a pension is awarded, it is based on the life of the retiree and of the retiree’s qualified survivor (spouse or domestic partner). The retiree has the right to make certain pension benefit selections, which result in different pension amounts based upon the survivor benefit selected. The City is responsible for funding the benefit selected. A Tier 1 employee generally earns a substantially higher pension as a result of working overtime in his/her final years of employment. The annual cost to the City of the pension benefit is increased as a result of pension enhancement.
Using representative overtime hours as reflected in the previous tables, the following table shows the potential for pension enhancement and the potential cost to the City where overtime is earned by Tier 1 employees. The table assumes that the employee is 60 years of age with a 20.6 year life expectancy, that no survivor benefit was selected, that the overtime earnings represents the employee’s highest compensation in the final year prior to retirement, that the base pay in the final year is the highest base achieved by the employee during his/her employment, that all earnings, including overtime in prior years do not exceed the base pay during the final year of employment, and that the retirement fund earns 8.25 percent annually.
| |
BASE PAY
|
OT PAY
|
YEARS
OF SERVICE
|
MONTHLY BENEFIT WITHOUT OT*
|
OT HOURS
|
MONTHLY BENEFIT WITH OT
|
LIFETIME BENEFIT ENHANCED BY OT*
|
LIFETIME COST OF ENHANCED BENEFIT*
|
|
1
|
$65,029
|
$43,689
|
42.8
|
$4,064
|
937
|
$6,830
|
$683,787
|
$330,042
|
|
2
|
44,392
|
46,254
|
37.4
|
2,700
|
1,503
|
5,547
|
703,882
|
339,741
|
|
3
|
45,354
|
53,057
|
35.3
|
2,333
|
1,725
|
5,090
|
681,439
|
328,908
|
|
4
|
41,753
|
27,166
|
32.8
|
2,083
|
585
|
3,464
|
341,354
|
164,760
|
|
5
|
45,905
|
57,349
|
32.1
|
2,454
|
1,881
|
5,543
|
763,625
|
368,577
|
|
6
|
77,855
|
47,019
|
29.8
|
3,867
|
840
|
6,214
|
580,084
|
279,988
|
|
7
|
43,005
|
90,368
|
27.7
|
1,726
|
2,046
|
7,645
|
1,463,291
|
706,283
|
|
8
|
41,753
|
18,561
|
25.2
|
1,315
|
622
|
1,911
|
147,109
|
71,005
|
|
9
|
45,372
|
50,657
|
24.8
|
1,427
|
2,255
|
3,044
|
399,767
|
192,954
|
* Benefit calculations by Retirement System
CONCLUSIONS
The following causes of excessive overtime are identified by department. We note that some of the causes may be beyond the control of the department.
POLICE DEPARTMENT:
- Understaffing
- court appearances by arresting officer after shift ends or on day off
- report writing when an arrest is made near end of shift
- arrested person in need of medical treatment is routinely rejected by the Sheriff’s Department causing the officer, who may be at the end of his shift, to accompany the prisoner to medical facility and to wait until the facility accepts the prisoner
- City emergencies
- unplanned protests
- visits by VIPs
- supplying officers for private events*
- street fairs*
- sporting events*
- filming of movies and commercials*
- private security needs of businesses.*
(*in some instances, the City may receive reimbursement of some of the overtime costs)
FIRE DEPARTMENT:
- Understaffing
- emergencies
- absences due to fraudulent worker’s compensation claims
- illness
- work rules requiring minimum staffing at stations and to operate equipment
- general discontent by rank and file with management is believed to be responsible for some absenteeism
- Overtime paid to employees who participate in the delivery of toys during the Department’s Toys for Tots program
- Alleged incidents of racism directed at the Chief may have resulted in overtime abuses in order to call into question the Chief’s management skills.
MUNICIPAL RAILWAY:
- Understaffing
- unexcused absenteeism
- overtime abuses
- fraudulent worker’s compensation claims
- outdated management information systems
- special events
- poor hiring practices
- labor agreements which limit management’s ability to terminate employees for poor attendance.
RECOMMENDATIONS
General Comments
A close analysis of the Controller’s overtime report/compilation of 2,600 City government employees revealed there are some job classifications that could provide additional job opportunities while reducing overtime hours. Additional persons hired into these job classifications could significantly reduce the risks and expenses involved with the dependency on overtime used to deliver necessary City services. One possibility is the General Laborer (7514) job classification, which appears in the Port Authority, Water Department, and rather extensively in the Department of Public Works. The other consists of the Security Guards (8202), Institutional Police Officers (8204) and even Museum Guards (8226) who received significant overtime hours in various City departments.
Furthermore, in order to elevate the issue of overtime to the proper priority level, overtime reduction should be connected to two existing monetary controls. One is to affix overtime reduction to the bonuses which City executives generate through the goals they set in Management Performance Reviews. The other is to assign a measurable value to overtime reduction which should be reflected in Performance Measures of departmental budgets.
Finally, the Civil Grand Jury cannot dismiss the widely held general opinion that significant overtime contributes to a fatigue factor in individuals which markedly reduces their peak performance. Therefore, claims against the City should also be compared against the overtime listing in order to determine if those City employees involved in some claims also happen to be recipients of significant overtime hours.
Police/Sheriff
1. Police Officer court appearances should be coordinated with the District Attorney’s Office and the courts to attempt to arrange appearances on a scheduled workday with a realistic time scheduled for the appearance.
Required Response
Police Department
District Attorney
2. The Sheriff’s Department should be responsible for custody of all prisoners delivered to the jail or to a medical facility while awaiting treatment. Individual officers should be relieved of this responsibility.
Required Response
Police Department
Police Commission
Sheriff’s Department
3. Street fairs consume substantial overtime and the entity conducting the fair is only responsible to contribute a maximum of $2,500 toward the costs incurred by the City. This contribution is sometimes waived by the Board of Supervisors depending on political considerations. The fee should be increased and guidelines established for the uniform waiver of fees.
Required Response
Police Department
Board of Supervisors
4. The use of police officers for private functions under Administrative Code section 10b results in some reimbursement to the City for overtime incurred. The Board of Supervisors recently repealed the requirement that a 20 percent fee be charged in addition to the overtime incurred. The repealed fee was not uniformly charged and that served as a reason for its repeal. Currently no charge is assessed for the cost of administering the program or for the use of City equipment by police officers hired under the 10b program. The 20 percent fee should be reinstated and assessed equally in all instances. If a waiver is justified it should be pursuant to established guidelines and not waived on the basis of political considerations.
Required Response
Police Department
Board of Supervisors
5. Studies should be made to determine whether some of the current Deputy assignments could be appropriately and adequately performed by non-law enforcement personnel.
Required Response
Sheriff’s Department
Fire Department
6. Work rules should be re-examined to determine whether the current requirements unnecessarily contribute to overtime requirements.
Required Response
Fire Department
Fire Commission
7. The Department should increase its vigilance in curtailing and prosecuting fraudulent sickness and compensation claims.
Required Response
Fire Department
Fire Commission
8. Investigate incidents determined to be a tactic to discredit the chief, responsible personnel should be identified and disciplined or terminated.
Required Response
Fire Department
Fire Commission
9. While Fire Department personnel understandably wish to witness the joy of a child receiving a toy, the City could arrange for the toys to be delivered in a less costly manner.
Required Response
Fire Department
Fire Commission
10. A comprehensive study ought to be made of Fire Department activities and policies to determine the root causes of its continuing heavy use of overtime.
Required Response
Fire Department
Fire Commission
11. An independent committee should be appointed to work with the Department to establish controls aimed at reducing overtime.
Required Response
Fire Department
Fire Commission
Municipal Railway
12. Legislation is required that would limit payment for overtime only where the workweek exceeds 40 hours. Employees should not be able to be absent during a regular workday and then receive overtime for working on their regular day off during the same workweek.
Required Response
Board of Supervisors
Public Transportation Department
13. Overtime incurred for special events should be budgeted separately thereby allowing management to focus on other root causes of overtime not related to special events.
Required Response
Public Transportation Department
14. Management has a problem obtaining current data due to its use of technologically outdated information systems. Other departments have similar complaints. The City should analyze its information systems and include in its budget funding for a state-of-the-art management information system that potentially can be shared with all departments having similar needs.
Required Response
Public Transportation Department
Human Resources Department
General Recommendations
In addition to the specific recommendations above, we have the following general recommendations that cover all departments. Department heads are responsible for controlling overtime. The budget process consists of departments budgeting for overtime by generally basing the request upon the prior year’s experience. As a result, overtime has become institutionalized as part of the budget. Common experience suggests that a department will find ways to use overtime funds awarded to it in the budget. The City will not be able to control overtime unless the systemic institutionalized process can be diverted to a process which views overtime as an extraordinary expenditure and there is an independent review for all overtime awarded.
15. The Civil Grand Jury believes that there are several job classifications that could provide additional employment opportunities while reducing overtime hours. One possibility is the General Laborer (7514) job classification, which appears in the Port Authority, Water Department, and rather extensively in the Department of Public Works. The other consists of the Security Guards (8202), Institutional Police Officers (8204) and even Museum Guards (8226) who received significant overtime hours in various City departments. Additional persons hired into these job classifications could significantly reduce the risks and expenses involved with the dependency on overtime used to deliver necessary City services.
Required Response
Mayor
Board of Supervisors
Controller
16. Discretionary and emergency overtime should be budgeted separately. Only unforeseen events should be considered in the emergency category.
Required Response
Board of Supervisors
Controller
17. Currently biannual reports are required where overtime for an employee exceeds 16 percent of base pay. Departments should be required to submit the report at the end of each month. The report should document the name of the employee, the amount of overtime pay earned, the reasons for the overtime and the department’s plan of action to eliminate future discretionary overtime.
Required Response
Mayor
Board of Supervisors
Controller
18. Although the offices of the mayor and the controller have recently initiated monthly overtime expenditure reports, monitoring of the report requires that it be submitted for review by an independent body, the responsible commission, the mayor and the Board of Supervisors. Overtime expenditures for all departments should be reviewed by an independent oversight committee appointed by the Board of Supervisors. If the overtime expenditure is found to be excessive, the department head and oversight committee should work together to develop a plan to control future overtime expenditures. Multiple incidents of excessive overtime expenditures should be brought to the attention of the mayor for possible counseling of the department head.
Required Response
Mayor
Board of Supervisors
19. The Mayor, who has the power to hire and who can influence his or her appointed commissioners to fire department heads, has the ultimate responsibility for controlling overtime abuses. The cycle of overtime use, abuses and pension enhancement can be broken if the Mayor exerts leadership by letting department heads know it is City policy that the need for overtime is an extraordinary event and is to be kept to a minimum. It should be the City’s goal to have appropriate staffing to fill the justifiable employee needs of the City, to budget for appropriate staffing, and to seek to reduce overtime as a way of life for City employees.
Required Response
Mayor