HomeMy WebLinkAbout07-27-2020 Council Work Session PacketCouncil Work Session
Monday July 27, 2020 5:00 P.M.
Orono Council Chambers,
2780 Kelley Parkway, Orono, MN 55356
WORK SESSION AGENDA
The Orono Council Work Session is open to the public
1. FLSA Audit
2. Face Covering Discussion
3. Budget and CIP
Council Work Session
Monday July 27, 2020 5:00 P.M.
Orono Council Chambers,
2780 Kelley Parkway, Orono, MN 55356
Past Meeting Agendas
June 22, 2020
• 2021 Budget Discussion
June 8, 2020
• Spring Park Public Works Proposal
• Solicitor License Moratorium
• Elections Update
May 26, 2020
• Communications
Annual Discussions Timeframe:
• Budget: Part of June, All of July, August and October.
• City Administrator & Police Chief Update (3 times per year for 15 minutes)
CITY OF ORONO MEMORANDUM
DATE: July 27, 2020
TO: Mayor Walsh, City Council
FROM: Dustin Rief, City Administrator
RE: FLSA Audit Update
Background: In January of 2020, the City was notified by the United States Department of Labor that they
wanted to audit the time sheets for the Police Department. Staff met with the investigator shortly after
notification and have subsequently provided payroll data for evaluation for a period including all of 2018
and 2019. The data was reviewed for accuracy and compliance of the federal law.
After review of the records the Department of Labor (DOL) noted some discrepancies related to record
keeping and paying out overtime when an employee reaches 171 hours in a 28 day period. The DOL’s
response is below.
Dustin,
Thank you for your time this morning. I thought it might be helpful to provide a list of some of
the considerations that should be made in computing back wages.
1. We discussed updating the two year period to 7/16/2018 – 7/12/2020
2. For back wage purposes, a biweekly work period will be used and any hours over 86 will
be considered overtime hours
3. Clarifying hours worked on time sheets:
a. The 10-hour shifts recorded on time records should be counted as 10.25 hours
when computing weekly/biweekly total hours worked
b. Court hours – distinguish between court hours worked vs court stand-by (not
hours worked)
c. Comp hours – clarification as to the total hours worked these hours represent and
how many are at straight time and how many at time and a half (only comp hours
at time and a half can be credited toward overtime due)
4. Payroll Information
a. Rate of pay
b. Overtime hours paid (both regular overtime and 119 overtime)
c. Holiday premium hours paid at time and a half (not the Holiday pay at straight
time)
d. Comp hours accrued (This is to double check to see if the comp hours on time
records were actually credited the same)
5. I’ve attached a sample computation sheet. I do NOT expect the time sheet be transcribed
as it is shown (very time consuming). There should be a weekly total hours worked and
bi-weekly total hours worked column however. It will also be helpful to include the comp
hour columns as well. You do not need to use this template if you find an easier process.
It does, however, give an example of the components needed to compute the back wages.
I would like to see an example before all the computations are done in case there is any
correction needed.
Please keep me informed of the timeline and process being used to compute the back wages.
Thank you.
Information on police operations/scheduling: The Police department operates their schedule in 4
different shift lengths 8 hour, 10 hour (SGT’s only) 10.25 hour, 12 hour. Their schedule is set into 28 day
periods and rotates on 3 trimesters, of 16 weeks January thru April, 20 weeks April thru September, and
16 weeks September thru December , this follows the school schedule to accommodate shift changes for
the School Resource Officers. The police union contract states “Employees will be compensated at on and
on-half (1 ½) times the employee’s regular base pay rate for hours worked in excess of the employee’s
regularly scheduled shift.
The Police time sheets are the most complicated time sheets of all City staff. There are a number
of components that have been added over the years to get where we are today.
The pay components are regular pay, compensatory time at straight pay, overtime (x1.5), 119 overtime
pay (x1.5 reimbursed), compensatory time(x1.5), Time owed City(TOC), Court Standby time, Court
Time, Holiday premium pay and Field Training Officer pay(FTO). Other components include time off
earned such as, vacation, sick, holiday, compensatory straight, and compensatory at 1.5. Most of these
components have been institutionalized for over 30 years.
Process flow: Police officer time sheets are submitted by the officer, approved by the Sergeant,
reviewed by the Deputy Chief and submitted to Finance.
What is TOC?
It is time paid to officers prior to working them. A year ly schedule is built with TIOC hours
accumulating for each Trimester. Officers know the TOC hours for each shift in each Trimester prior to
bidding shifts. The TOC hours is placed into a bank. These hours are for training, community programs to
cover shifts at straight time in lieu of overtime. TOC provides opportunities for flexibility within the
schedule that provides value to both the city and employee.
What went wrong?
The FLSA violations occurred when a combination of actual hours worked, which includes
regular, straight comp, overtime, comp ½ and TOC, FTO, holiday premium, court time appearance and
standby, exceeded the 171 hours in a 28 day period. It was found that s ome officers when using a
combination of these they were paid for each hour worked however, with the use of a combination of
these pay components some officers did not get paid the .5 hours for hours exceeding the 171 hours in a
28 day period. However, we were in compliance with the union contract requirements.
The second violation was with record keeping. The 10-hour shifts recorded on time records
should be counted as 10.25 hours when computing weekly/biweekly total hours worked. Court
hours – distinguish between court hours worked vs court stand-by (not hours worked). Comp
hours – clarification as to the total hours worked these hours represent and how many are at
straight time and how many at time and a half (only comp hours at time and a half can be
credited toward overtime due)
Corrective Actions:
Corrective actions are currently being taken immediately to correct the record keeping errors. There was
no identified underpayment related to the 10 hours vs. 10.25 hours as shown on past time cards. The
Second component is to review and pay for any hours over the 171 hours in a 28 day period. The first
initial estimates were quite high based on the understanding and communications with the Department of
Labor. However, after we have reviewed the records in detail on the few identified by DOL that number
will be substantially decreased. We will complete a full analysis of all Police Department employees for
the previous 2 years to determine any additional oversight. Moving forward once the analysis is
complet ed we will present the outcome with potential solutions to the council with any policy or process
changes. At this stage of our analysis we feel the DOL analysis has some flaws that have bumped up our
actual liabilities and potentially given us the indication that our current processes and policy have grossly
underpaid our employees. Initial data analysis shows while there are some corrections a full analysis will
better guide the decisions to change any policies or processes. We have an additional understanding of
what needs extra review during the interim to ensure compliance and the management team will provide
extra oversight of those areas until a formal policy/process change is completed.
2020 Budget – Page 1
MEMORANDUM
To: Mayor Walsh and Orono City Council
From: Ron Olson, Finance Director
Subject: 2021 Budget
Date: July 24, 2020
Attachments: Budget Information – 6/22/20 Work Session
Staff has begun work on the 2021 budget. The expenditure information that has been provided
has been prepared by each department and reviewed with the City Administrator. The
information being proved tonight has a couple of minor changes made as updated numbers have
been received from service providers. Staff is looking for guidance from the Council about any
changes to make prior to the presentation of the preliminary budget. During the August work
session staff is planning on presenting information on the Enterprise Fund budgets.
Since the June work session we have received the proposed budget for the Long Lake Fire
Department which results in an $8,600 decrease in the proposed budget. However, the line for
meeting expenses is being increased by an equal amount based on the current costs of contracted
recording services.
Issues for discussion:
1. As discussed in June, the current budget includes a COLA increase in the amount of 3%
for employees. This is the increase in wages included in the 2021 police contract. The
contracts for Locals 12 and 49 are not set for 2021. What amount would the Council like
to include in the budget for Locals 12 and 14?
2. Members of both the police unions and Local 12 currently receive longevity pay. There
has been a request from the Police Department that non-union employees also be eligible
for longevity pay. The pay would be based on the Local 12 pay of $0.05 per year of
service for employee with more than 15 years of service. This would add $9,000 to the
budget.
3. At the June work session, Council was not in support of adding a Code Enforcement
Officer. However they indicated that they would like to discuss the matter when
Councilmember Printup was available. Would the Council like to discuss this now, or
schedule it for a future work session?
4. Are there initiatives that the Council would like to see funded that are not currently
included in the budget?
2020 Budget – Page 2