HomeMy WebLinkAbout107-07 RESOLUTIONRESOLUTION NO. 107-07
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT
IN AN AMOUNT NOT TO EXCEED $27,884.00
WHEREAS, the City has discovered that an hourly employee, Ramiro Dominguez, who
worked at the Yvonne Richardson Community Center had had some of his hours worked
underreported by his supervisor, Lance Fisher, for about a two year period; and
WHEREAS, a continuing investigation including extensive sworn statements from both
the supervisor and employee, witness interviews and other efforts indicate that at least some of
the assertion of the employee that he is owed some back pay for previously unreported work
hours is probably correct. •
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the attached budget adjustment in the amount of $27,884.00 to fund a not to exceed amount of
$27,884.00 as potential back pay for Ramiro Dominguez.
PASSED and APPROVED this 5th day of June, 2007.
APPROVED:
By:
DA COOD , Mayor
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SOSMITH, City Clerk/Treasurer
City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2007
Department:: General Government
Division: Miscellaneous
Program: Miscellaneous
Date Requested
6/5/2007
Adjustment Number
Project or Item Added/Increased:
$27,884 is requested in the Personnel Services category
of the Yvonne Richardson Community Center (YRCC).
Project or Item Deleted/Reduced:
None. $27,884 from the General Fund Use of Fund
Balance account.
Justification of this Increase:
The funding is needed to cover a payout oh a YRCC
employee.
Justification of this Decrease:
There is sufficient reserves remaining to comply with City
Policy and 2007 Objectives.
Increase Expense Budget (Decrease Revenue Budget)
Account Name Account Number Amount Project Number
Salaries and wages 1010 5280 5100 00 24,565
FICA taxes 1010 5280 5105 00 1,879
Retirement savings plan 1010 5280 5109 06 1,440
Account Name
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
Use of fund balance
1010 0001 4999 99
27,884
Project Number
Approval Signatures Budget Office Use Only
—!U '0 Type: A B C
Requested By /f Date
S it6
Date Posted to General Ledger
S l? 07
epartmen Director Date Posted to Project Accounting
Paaai 4 LS... 5 • I8.07
Date Entered in Category Log
Mayor Date
Initial Date
Initial Date
Initial Date
Missy Lefler
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
6/5/2007
City Council Meeting Date
Agenda Items Only
Human Resources
Division
Action Required:
C0/5/67.
7
Ami' yu2 jM4
Operations
Department
Staff requests approval of back pay paid to an employeetdho4 approve 'rite, laudse+ adju3+rhen+ in the
allotan'� 4� Y.2?, 881. °°.
27,884.00
Cost of this request
1010.5280.51##.##
Account Number
Project Number
Budgeted Item
X
78,512.00
Category / Project Budget
31,483.00
Funds Used to Date
$ 47,029.00
Remaining Balance
Budget Adjustment Attached
Personnel Services
Program Category / Project Name
YRCC
Program / Project Category Name
General
Fund Name
Department
•
•
irector
City Attomey
Finance and Internal Service Director
Mayor
JIB 0-7
Date
LI -o7
Date
5- )1.67
Date
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City
Clerk's Office
Comments:
Revised April 16, 2007
aY ARKANSAfie .tev �le
S
CITY COUNCIL AGENDA MEMO: June 5, 2007 Meeting
TO:
THRU:
FROM:
DATE:
SUBJECT:
Mayor Dan Coady and the City Council
Gary Dumas, Operations Director
Missy Leflar, Human Resources Division Manager
May 17, 2007
Back pay owed to employee
Recommendation
Staff recommends approval of back pay owed to an hourly employee.
Background
It was recently discovered that the Yvonne Richardson Community Center ("YRCC") owes back
pay to an employee. The YRCC differs from all other programs staffed by City employees in
that it has been run by its own Board of Directors with minimal interference from the City and
with no clear lines of demarcation as to control and responsibility. The exception to this is
payroll: since its inception, the YRCC payroll has been fully funded by the City. It is therefore
the City that owes back pay if an employee is underpaid.
Discussion
In March members of the YRCC Board and City staff began meetings discussing staffing issues
at the Center. These meetings were initiated as a result of a voluntary resignation being
contemplated by one of the YRCC staff. It appeared that the voluntary resignation was the
result of personal issues between the two employees at the Center. On April 9th, in separate
meetings the Parks and Recreation Director and the Operations Director, met with the two
Center employees to determine if the issues were personal or if there were other issues. During
these meetings it became apparent that wage and hour issues were likely and that supervisory
responsibility had been lacking. Subsequent to a meeting with several YRCC Board members
the YRCC was placed under the direct supervision of the Parks & Recreation Division.
A thorough investigation by Human Resources ("HR"), the Internal Auditor, and a trained
investigator began immediately. This included sworn statements which were incorporated into
the investigatory services of the Internal Audit. Internal Audit has issued a lengthy investigation
report on the back wages issue, which is attached to this memo. The employee's allegations of
being owed back pay for wages under -reported by his supervisor to City payroll are supported
by his sworn testimony, a written reconstruction of dates and times worked covering the time
period in question, and the fact that the YRCC could not open its doors unless either he or his
supervisor were physically present. The fact that the Center was open during the normal hours,
was open for special events occurring after hours, was open for scheduled league play after
normal hours, and was open two additional hours (8:00 a.m. to 10:00 a.m.) on weekday
mornings to accommodate additional youth access, indicates that the alleged additional
(unpaid) hours were indeed worked. The sworn testimony of the supervisor was to the effect
that he could neither confirm nor deny the employee's allegations. Neither the YRCC Board nor
the supervisor kept adequate records to refute the employee's allegations of underpayment for
hours actually worked.
The failures that lead to this wage issue are being addressed. The first response has been to
place the Center under the direct supervision of the Parks and Recreation Division. This will
require some changes in the role of the YRCC Board as it relates to the operational issues of
the Center. In addition, personnel issues will be addressed to assure that this incident is not •
1
repeated. Further, an additional half-time employee will be requested for the Center to help
cover the hours of operation without requiring excessive overtime.
It should be noted that in February, two months prior to this matter being brought to light, the
City's Fair Labor Standards Act Compliance Committee approved HR's plans to begin annual
wage & hour self -audits, with the first one scheduled to take place this summer when the City's
more accurate job descriptions are in place. In March the City Administration approved a
proposal by HR to develop an ongoing, in-house, mandatory attendance training program for all
City supervisors, which was announced to supervisors in early March and is scheduled to roll
out in October. This program incorporates a legal compliance module taught by an attorney
(the HR Division Manager) that includes wage and hour compliance training. In March the City •
also added a "Guide to Human Resources" to its employee intranet and employee newsletter
that directs employees to contact the HR Division Manager (direct line and e-mail provided) for
any wage & hour questions or issues. In April the City rolled out its revamped New Employee
Orientations, which now include a strong message to new employees from the HR Administrator
concerning the importance of keeping accurate timesheet records, of neither under nor over
reporting hours worked, and what to do if a paycheck does not appear to reflect hours worked.
•
In summary, despite this frustrating setback, the City has been and will continue to be pro -active
in battling wage & hour compliance issues.
Budget Impact
The back pay in question totals $27,884.00 (covering back wages from May, 2005 through April,
2007) and would come out of the General Fund.
2
RESOLUTION NO.
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT
IN THE AMOUNT OF $27,884.00
WHEREAS, the City has discovered that an hourly employee, Ramiro Dominguez, who
worked at the Yvonne Richardson Community Center had had his hours worked underreported
by his supervisor, Lance Fisher, for about a two year period; and
WHEREAS, after a complete investigation including extensive sworn statements from
both the supervisor and employee, the evidence supports the assertions of the employee that he is
owned back pay for previously unreported work hours.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the attached budget adjustment in the amount of $27,884.00 as back pay for Ramiro Dominguez.
PASSED and APPROVED this 5th day of June, 2007.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA E SMITH, City Clerk/Treasurer
•
City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2007
Department:
Division:
Program:
General Government
Miscellaneous
Miscellaneous
Date Requested
6/5/2007
Adjustment Number
Project or Item Added/Increased:
$27,884 is requested in the Personnel Services category
of the Yvonne Richardson Community Center (YRCC).
Project or Item Deleted/Reduced:
None. $27,884 from the General Fund Use of Fund
Balance account.
Justification of this Increase:
The funding is needed to cover a payout on a YRCC
employee. .
ustification of this Decrease:
There is sufficient reserves remaining to comply with City
Policy and 2007 Objectives.
Increase Expense Budget (Decrease Revenue Budget)
Account Name
Salaries and wages
FICA taxes
Retirement savings plan
Account Name
Account Number
1010
1010
1010
5280
5280
5280.
5100
5105
5109
00
00
06
Amount
24,565
1,879
1,440
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
Use of fund balance
1010
0001 .4999 99
27,884
Project Number
Project Number
Approval Signatures
Requested By
udget Manager
epartmen Director
Finance & Internal Services Director
Mayor
Date
51167
Date
S-1?). o7
Date
Date
Date
Type: A
Budget Office Use Only
B C
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
Initial
Initial
E
Date
Date
Initial Date
Sri -Tank
THE CITY OF FAYETTEVILLE, ARKANSAS
Departmental Correspondence
To: William Golbuff, Audit Committee Chairman
Adam Motherwell, Audit Committee
Anton C. Uth, Jr., Audit Committee
Brenda Thiel, Audit Committee, Alderman
Adella Gray, Alderman
Kyle B. Cook, Alderman
Nancy Gordon Allen, Alderman
Robert K. Rhoads, Alderman
Robert Ferrell, Alderman
Shirley Lucas, Alderman
Lioneld Jordan, Alderman
Anthony Hicks, SEFCC Board President
Paul Becker, Finance Director
Gary Dumas, Operations Director
Missy Leflar, Human Resources Manager
Greg Tabor, Police Chief
Tracey Risley, Deputy Police Chief
Susan Thomas, Public Information & Policy Advisor
Kit Williams, Ci Attorney
Sondra Smith City Clerk
Through: Mayor Da
From: Vicki D. Deaton, Internal Auditor
Date: 5/23/07
Subject: Yvonne Richardson Commu
enter Pay Issue Special Project
Audit Scope:
Problem
In April of this year, Gary Dumas, Operations Director, reorganized the Yvonne Richardson Community
Center (YRCC) under the supervision of the Parks & Recreation Director, Connie Edmonston. During the
transition period, it came to management's attention that the Activities Coordinator at the YRCC, Ramiro
Dominguez, had never completed a time card/sheet since his hire in May, 2005. The employee claimed
that he had not been paid for all the hours he has worked since his hire, and that the Center Director,
Lance Fisher, has falsified the employee's time record. Gary Dumas requested an internal audit of the
back pay issue.
Procedures
City policies related to pay and time keeping procedures were reviewedand an attempt was made to
locate relevant YRCC pay records. Job descriptions of Center employees were reviewed to determine
responsibilities. A trained investigator took the sworn statements of both the Center Director and the
Activities Coordinator in relation to hours worked, timekeeping, and pay of Center employees. City YRCC
documents and Southeast Fayetteville Community Center (SEFCC) Board minutes dated as early as
1994, prior to Center construction, were reviewed for associated information.
Findings:
Noncompliance with City Policies
Policy and Procedure HR 09 Hours of Work, Timekeeping & Payroll Deductions (eff. 2/21/90, rev. 8/1/05)
YRCC employees have not been recording their total hours worked each day, then turning a signed time
record in to the Center Director to signify that the hours were complete and accurate The Activities
Coordinator claims that he has not been paid for all hours worked since his hire. He states that he did
report the pay error to the Center Director once, but did not review his paychecks promptly and try to
resolve pay issues with upper management or the Human Resources division. The Center Director did
not require employees to turn in a signed record of their daily time for his review and approval. There are
allegations that the Center Director falsified the Activities Coordinator's time record which the Center
Director prepared.
Policy and Procedure HR -11, Overtime Compensation (eff 11/15/00, rev. 9/26/05)
The Center Director should have. approved all overtime worked by Center employees. The Activities
Coordinator is claiming pay for overtime worked, but the Center Director says that he never authorized
overtime and that the employee just "did things on his own." The Center Director said there was never a
record of overtime kept in order to award comp time to the employee either.
Policy and Procedure HR -32, Leave Policies & Work Schedules (eff. 6/13/05)
The Center Director should have gotten written approval by City upper management for any changes in
operating hours or changes that would materially effect the work schedules of employees. The Activities
Coordinator claims that at the beginning of the summer of 2006, the SEFCC Board extended the Center
hours from an opening of 10am to 8am to accommodate children out of school for the summer and the
Head Start program during the school year. This continued until spring 2007. The Center Director says
that Center hours were never extended.
•
Policy and Procedure HR -33, Volunteering (eff. 6/13/05)
The Center Director should have made sure that all non-exempt Center employees were not performing
services at events that were the same type of services which the individuals were employed to perform.
Lance Fisher, Center Director, stated that he considered Ramiro Dominguez to be a volunteer at certain
Center events which Ramiro is claiming as work time. Ramiro performed the same type of services at the
Center events that he performs as the Activities Coordinator, such as hosting community events,
interacting with the public, and maintaining the cleanliness of the building and grounds. The Center
Director seems to have no understanding of this policy and the Fair Labor Standards Act which the policy
enforces.
All of the above policies became effective or were revised within a few months of Ramiro Dominguez's
hire with the City. Lance Fisher, as the YRCC Director, receives new and revised City policies and
procedures. Since August of 2005, all policies are maintained on the City's intranet, CityNet, so that
current versions may be accessed. Staff was notified that all policies would be kept electronically on the
CityNet only. The Activities Coordinator did not have access to the CityNet, where the City's current
policies and procedures reside. The Center Director did have access to the CityNet on his office
computer. In June of 2005, Lance Fisher received HR -9, HR -32, and HR -33 with a memo from Human
Resources requiring that a copy of the policies be provided to all employees and an acknowledgement
form be signed by each employee stating that they received, read, and understood the policies. Lance
Fisher did not return any acknowledgement forms to Human Resources.
It is the Center Director's responsibility to become familiar with City policies and notify employees as
necessary. The Center Director is responsible for complying with City policies and applicable laws. The
Center Director did not comply with and enforce the City's policies relating to work time recordkeeping,
overtime, work schedules and volunteering. The Activities Coordinator did not comply with the City policy
relating to work time recordkeeping.
Lack of Adequate Documentation
The Center Director did not provide a written work schedule for Center employees and did not require
employees to turn in a signed record of their daily time for his review and approval. Besides City policy to
guide the Center Director, there is documentation from 1997 to the present showing management's
direction regarding hours and staffing of the YRCC. The Center Director was made aware by both City
supervisors and the SEFCC Board that employee hours should be scheduled in the most efficient manner
to cover Center operating hours and minimize staff overtime. There is also documentation showing that
the Center Director was instructed at various times in the past concerning record keeping for time sheets
and comp time, the City's administrative procedures, and how the YRCC employees should report their
time for payroll processing. Policy noncompliance and not heeding the direction of supervisors has
resulted in a lack of proper documentation by the Center Director. Policy noncompliance has resulted in
'a lack of proper documentation by the Activities Coordinator.
•
•
SEFCC Board minutes and financial records were reviewed to get information concerning facility usage
and events at the Center, approval of which is currently the responsibility of the Board. Facility use
records and event records are not kept in any kind of orderly format by the Center Director. The SEFCC
Board relies on the Center Director to provide them with facility usage requests, event information, and
fee payments. There is not a clear record of events at the Center to compare to the Activities
Coordinator's back pay claims. Division of responsibilities between the City and the SEFCC Board and
inadequate record keeping have resulted in a lack of proper documentation regarding facility usage and
Center events.
Lack of Adequate Supervision
It is the Center Director's responsibility to become familiar with City policies and notify employees as
necessary. According to the job description of the Community Center Director, he should carry out
supervisory responsibilities in accordance with the City's policies and applicable laws. The Center
Director should plan, assign, and direct the work of the subordinates. The Center Director did not instruct
Center employees on proper procedures per City policies. The Center Director did not provide a written
work schedule for Center employees and did not require employees to turn in a signed record of their
daily time for his review and approval.
Lack of Proper Authorization
The Center Director did not properly authorize and approve Center employee work schedules. The
Center Director did not properly authorize and approve employee overtime work. Work schedules and
authorization of overtime are complicated by the authority of the SEFCC Board to approve operating
hours, activities, and facility usage which affect the work hours of City staff, even though the Board is not
responsible for the payment of City staff for hours worked.
Conclusion:
The Activities Coordinators' back pay claims and allegations of time record falsification by the Center
Director cannot be proved or disproved by written documentation. There is sworn statement evidence
given by Ramiro Dominguez, the Activities Coordinator, that he did work certain hours in excess of the
hours for which he has been paid. The sworn statement of the Center Director, Lance Fisher, does not
dispute Ramiro Dominguez's' claims.
Action Plans:
Human Resources Response
The failures that lead to this wage issue are being addressed. The first response has been to place the
Center under the direct supervision of the Parks and Recreation Division. This will require some changes
in the role of the YRCC Board as it relates to the operational issues of the Center. In addition, personnel
issues will be addressed to assure that this incident is not repeated. Further, an additional half-time
employee will be requested for the Center to help cover the hours of operation without requiring
excessive overtime.
It should be noted that in February, two months prior to this matter being brought to light, the City's Fair
Labor Standards Act Compliance Committee approved HR's plans to begin annual wage & hour self -
audits, with the first one scheduled to take place this summer when the City's more accurate job
descriptions are in place. In March the City Administration approved a proposal by HR to develop an
ongoing, in-house, mandatory attendance training program for all City supervisors, which was announced
to supervisors in early March and is scheduled to roll out in October. This program incorporates a legal
compliance module taught by an attorney (the HR Division Manager) that includes wage and hour
compliance training. In March the City also added a "Guide to Human Resources" to its employee
intranet and employee newsletter that directs employees to contact the HR Division Manager (direct line
and e-mail provided) for any wage & hour questions or issues. In April the City rolled out its revamped
New Employee Orientations, which now include a strong message to new employees from the HR
Administrator concerning the importance of keeping accurate timesheet records, of neither under nor over
reporting hours worked, and what to do if a paycheck does not appear to reflect hours worked.
In summary, despite this frustrating setback, the City has been and will continue to be pro -active in
battling wage & hour compliance issues.
•
RESOLUTION NO.
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT
IN THE AMOUNT OF $27,884.00
WHEREAS, the City has discovered that an hourly employee, Ramiro Dominguez, who
worked at the Yvonne Richardson Community Center had had some of his hours worked
underreported by his supervisor, Lance Fisher, for about a two year period; and
WHEREAS, a continuing investigation including extensive sworn statements from both
the supervisor and employee, witness interviews and other efforts indicate that at least some of
the assertion of the employee that he is owned some back pay for previously unreported work
hours is probably correct.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the attached budget adjustment in the amount of $27,884.00 to fund a not to exceed amount of
$27,884.00 as potential back pay for Ramiro Dominguez.
PASSED and APPROVED this 5th day of June, 2007.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
6.8.07) Clarice Pearman - Res. 107-07
Page 1
From:
To:
Date:
Subject:
Attachments:
Clarice Pearman
Leflar, Missy
6.8.07 11:08 AM
Res. 107-07
107-07 Dominguez back pay.pdf
CC: Audit; Fell, Barbara
Missy,
Attached is a copy of the above resolution passed by City Council, June 5, 2007. I will forward the original budget adjustment to
Budget & Research. Please let me know if anything else is needed.
Have a good day.
Thanks.
Clarice
Clarice Buffalohead-Pearman, CMC
City Clerk/Treasurer Division
113 West Mountain
Fayetteville, AR 72701
479-575-8309
cpea nna n(a)ci.favetteville. ar. us
•