Anda di halaman 1dari 63

Kansas City Fire Department

Overtime Analysis and Dashboard Prototype Development

February 8, 2017
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Table of Contents

1. Executive Summary. 2
2. Engagement Details 4
2.1 Engagement Scope and Approach. 4
2.1.1 General Overtime Data Analysis and Dashboard Development.. 4
2.1.2 Collective Bargain Agreement Analysis. 5
2.1.3 Additional External Research Conducted.. 5
2.1.4 Report Development........... 5
2.2 Engagement Staffing. 6
3. Trends, Outliers, and Possible Issues Related to Fire Department Overtime. 7
3.1 Overtime Budget Analysis.... 7
3.2 Overtime Worked Analysis... 11
3.2.1 Question 1: What are the major trends in KCFD overtime over the past few years? 12
3.2.2 Question 2: What are the major outliers in KCFD OT over the past few years?... 22
3.2.3 Question 3: What are the main drivers of the OT outliers?.....28
3.2.4 Question 4: How is OT correlated with the number of calls? What is the trend
versus actual service level received?.... 39
3.2.5 Question 5: What is the trend of OT as a share of total fire pay?....43
3.3 External Research on Budgeting and Management Practices... 49
3.3.1 Budgeting Practices........ 49
3.3.2 Management Practices 50
4. Assessment of the Collective Bargaining Agreement... 52
4.1 Force Reduction.....52
4.2 CBA Pay Structure Leading to Elevated Overtime Costs... 52
4.3 Comparison of Old and New CBAs.... 55
4.4 Areas Where Overtime Could Be Decreased... 56
5. Analysis of the Process Used by Battalion Chiefs to Ensure
Overtime/Special Pay Hours Are Being Worked/Earned by Employees 59
6. Test of Employees Paid From Only One Employee Account... 60
7. Opportunities..... 61
7.1 Implement an Ongoing Overtime Monitoring and Analysis Approach...61
7.2 Conduct Additional Analysis and Consider Policies and Processes for
Updating.. 61
7.3 Conduct a Staffing and Deployment Analysis... 61
1. EXECUTIVE SUMMARY

Mr. Randall Landes, Director


Kansas City Finance Department
414 East 12th Street, 3rd Floor City Hall
Kansas City, MO 64106

Dear Director Landes:

BKD, LLP (BKD) was engaged by the City of Kansas City (City) to provide analysis of Fire Department
overtime expense and to develop a prototype of a Fire Department dashboard. The analysis of overtime
expense is included in this report, and the dashboard that was developed in Tableau based on the data
provided by the City has been concurrently presented. The intent of the report and the dashboard are to:

Enable the City to further develop its understanding of the key drivers of overtime;

Identify outliers at various levels (region, battalion, shift, etc.); and

Determine if there are instances in which the use of overtime may be inconsistent with the
requirements of the Collective Bargaining Agreement (CBA).

The findings and options in this report are the result of the analysis of the Kansas City Fire Departments
overtime data from May 1, 2011 through May 31, 2016. Highlights include:

Overtime shows consistent annual increases;

The overtime overages against budgeted amounts have consistently increased;

There are individuals who are accruing a greatly disproportionate share of overtime;

There is significant variation across battalions and functions relating to overtime accrual that may
represent outcomes in differing management approaches; and

In general, the rate of increase in overtime is rising at a much faster rate than emergency calls.

This report identifies some options that the City may seek to implement in order to provide greater
transparency and control of the issue, including:

The development and implementation of a real-time dashboard for monitoring and analysis;

Modifying policies and processes in areas that may represent opportunities to reduce overtime;
and

Reviewing its staffing and deployment model for conformance with innovative approaches
elsewhere.
Mr. Randall Landes
Kansas City Finance Department
Page 2

We appreciate the opportunity to provide this report and dashboard and thank you for your cooperation.

Sincerely,

BKD, LLP

February 8, 2017
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

2. ENGAGEMENT DETAILS

2.1. Engagement Scope and Approach


In an effort to assist the Finance Department through the preparation of the Report and the
Dashboard, BKD completed the following tasks.

2.1.1 General Overtime Data Analysis and Dashboard Development


Once the contract had been executed, the City compiled and provided to BKD approximately five
years worth of data (May 1, 2011 May 31, 2016)1 from its PeopleSoft payroll, TeleStaff payroll,
and KCFD Response Data. While that data was being pulled, the KCFD Collective Bargaining
Agreements (CBAs) were delivered to the City.
BKD took the following major steps to prepare the data received from the City for analysis:
1. Joined the PeopleSoft and TeleStaff data and excluded lines that did not have a shift
associated with them.
2. Identified:
a. Correct Time Reporting Codes (TRC) codes for Overtime (OT);
b. Dynamic employees; and
c. Employee Type 40 hour (40H) versus 99 hour (99H).
3. Applied correct OT calculations based on employee type and TRC codes.
4. Conducted account testing:
a. Identified those who have been paid from multiple accounts over the years; and
b. Analyzed and kept only those that for whom Hours Worked did not match the account
they were paid from.
BKD staff then began the analysis of the payroll data and the Fire Pay codes for both PeopleSoft
and TeleStaff. The initial results of the BKD analysis were used as the basis for on-site interviews
performed by BKD Director Julia Mast with two of the Battalion Chiefs to better understand how
overtime (OT) is actually assigned and worked on a day-to-day basis.
BKD staff then executed an exploratory analysis of the historical payroll data. Using Tableau,
BKD team members created multiple dashboards to organize and analyze the data. The dashboards
were organized in response to the following five basic questions, each with multiple different views
in order to identify trends and outliers:

What are the major trends in KCFD OT over the past few years?

What are the major outliers in KCFD OT over the past few years?

What are the main drivers of the OT outliers?

How is OT correlated with the number of emergency calls?

1
The Citys fiscal year begins May 1st.

4
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

What is the trend of OT as a share of total fire pay?


BKD presented the draft dashboard prototypes to the City for feedback on 12/16/2016.2 Key points
made by City staff included:

The dashboard provides useful views to better understand where OT is being accrued.

It would be helpful to understand the relationship between sick time, workers


compensation, and OT.

It would be helpful to understand the relationship between the assumption of ambulance


duties3 and increases in training on OT.

The recent changes to Overtime @ Hourly Rate (OTR) should be isolated from overall OT
trends.

It would be helpful to identify OT coding and give recommendations that would be an


improvement over the current practices.
Using an additional file of payroll data provided on 12/12/2016, BKD tested to confirm that City
employees were not paid from multiple employee accounts for the same pay period during the
period under study [KCMO Regular Employee Account (KCC), KDMO Fire Account (KCF), or
KCMO Personnel Services Contracts Account (KCS)].
Finally, BKD identified and displayed the expended OT versus budgeted OT funds in order to
show projections versus actuals over the past few years.

2.1.2 Collective Bargain Agreement Analysis


In order to address the question of whether there may be inconsistences between the Collective
Bargain Agreements (CBAs) and the accrual and payment of overtime by Fire Department
personnel, BKD Director Julia Mast analyzed the CBAs in place during the scope period. See
Section 4 for this analysis.

2.1.3 Additional External Research Conducted


BKD also performed research seeking to identify best practices in overtime budgeting and
management practices as well as reserves to provide sufficient vacation and sick leave coverage.
This was accomplished by conducting internet research on efforts taken by comparable cities and
the resources available through other credible sources.

2.1.4 Report Development


The BKD team developed this report featuring various findings and options. Once the draft report
was completed, BKD provided it to the City to review for accuracy and responsiveness. The City
returned the draft report to BKD with feedback, and BKD incorporated the feedback, completing
the final draft.
BKD placed full reliance upon information provided to us for review or through conversations with
relevant parties inclusive of City management, employees, and external stakeholders. We are not

2
Attended by Randy Landes, Eric Clevenger, Tammy Queen, and Scott Huizenga.
3
The City Auditors report, Performance Audit Citywide Overtime, November 2013 noted that Fire
Department overtime hours jumped from 63,084 in FY2010 to 102,827 hours in FY2011. The
department took over ambulance service five days prior to the end of the FY2010.

5
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

responsible for the accuracy and completeness of the information and are not responsible to
investigate or verify it.
This engagement was not designed to prevent or discover errors, misrepresentations, fraud or
illegal acts. We have not been engaged to provide an opinion with respect to the effectiveness of
the Citys internal controls or the Citys compliance with its policies, procedures and applicable
laws and regulations.

2.2. Engagement Staffing


Michael Brink, Julia Mast, Jeremy Clopton, Maureen Birchler, Tom Haldiman, and Erin Rickert of
BKD, LLP served as the primary developers of this report.

6
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3. TRENDS, OUTLIERS, AND POSSIBLE ISSUES RELATED TO FIRE


DEPARTMENT OVERTIME

3.1 Overtime Budget Analysis


Data provided by the City4 indicates that budgeted overtime as compared to actual overtime and double
time costs were as follows over the past several fiscal years. This reveals that the amount of overage
versus the budget is increasing in recent years. Despite the fact that the overtime budget has increased by
38% from 2013 to 2016, the annual overage has increased from 34% in FY2013 to 59% in FY2016.

Figure 1

4
From Joe Pehlman, Senior Analysis, Budget Division, 9/20/2016.

7
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Captured by month for each year versus the budgeted monthly amount (shown by the black line), the
overtime actuals were as follows.

Figure 2: FY2013

Figure 3: FY2014

8
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 4: FY2015

Figure 5: FY2016

9
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 6: FY2017 year-to-date

Finally, when it comes to double overtime, the FY2017 actuals year-to-date versus budgeted are as
follows:

Figure 7: FY2017 YTD

Reviewing the overages versus budgeted amounts on a month-to-month basis reveals little in the
way of a consistent pattern. While in the later years of the period, under review the period
October December accounts for a disproportionate share of the overage, the earlier years do not
show likewise.

10
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.2 Overtime Worked Analysis


The data provided by the City (May 1, 2011 May 31, 2016) were analyzed in a number of
different ways using Tableau. The presentation of the data was organized around the five key
questions identified in Section 2.1.1 above:

What are the major trends in KCFD OT over the past few years?

What are the major outliers in KCFD OT over the past few years?

What are the main drivers of the OT outliers?

How is OT correlated with the number of emergency calls?

What is the trend of OT as a share of total fire pay?


The dashboards developed by BKD and presented in draft form to the City on December 16, 2016,
illustrate the identified trends, outliers, and possible issues. The visuals within this section are
taken from those dashboards, which can be accessed using Tableau Reader.5 The overtime hours in
this report are paid at regular hourly rate, at time and one half, and at double time, depending on
the circumstances of the individual working the overtime and the time in which it is worked.6

For the final version of this Report, the data that follows is presented consistent with the Citys fiscal
years (May 1 April 30). Thus, only a single month of FY2017 is included.

5
Tableau Reader can be downloaded here: http://www.tableau.com/products/reader. BKD has
provided to the City the accompanying visualization files to the City in .twbx format.
6
It should be noted that not all of the overtime is paid at a rate that exceeds the employees normal pay
rate. For example, a Fire Fighter (99H employee) who works over his or her 99 hour shift is paid OTR (at
regular pay) until he or she exceeds 212 hours in a 28-day period. Another example is a 40H employee
who utilizes sick or vacation time during a work week and who is only paid OTP after he or she has been
present at work for over 40 hours. If he or she is present at work for 42 hours and used 8 hours of sick
time (for a total of 50 hours), he or she would be paid regular time for 40 hours, OTR (at regular pay) for
8 hours, and OTP (at time and one half) for 2 hours.

11
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.2.1 Question 1: What are the major trends in KCFD overtime over the past few years?
Timeline
A review of the more than five years of overtime data shows a significant year-over-year increase.
Comparing the first full fiscal year of data received (2012) with the last full year of data (2016), the
increase in overtime hours is 156%.

Figure 8

12
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

One can review the highest OT months by quarter, month, and day. The distribution throughout
the year is fairly consistent, with spikes coming in the months of May, October, and December,
consistent with the longer months (31 days), holidays, and special events, such as the World Series
in fiscal years 2015 and 2016.
Figure 9

Finally, when it comes to days of the week, Saturday is by far the biggest day for overtime, making
up a full 22% of overtime hours during the period under study.

Figure 10

13
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Title/Rank
When it comes to Title/Rank, the positions generating the most overtime in FY2016 include:

Firefighter (174,011 hours)

Fire Captain (54,470 hours)

Paramedic (36,873 hours)

Emergency Medical Technician (EMT) (28,235 hours)

Region
Region data show the trends by region (the operational function within the Fire Department beyond
the standard shifts) over the time. Significant trends include:

Medical Bureau Field is by far the biggest OT function since 2012.

Figure 11

14
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Hazardous Materials is a consistent driver of overtime, yet in recent years it is trending


flat to lower. Medical Bureau Field increased by 28% from FY2013 to FY2016
(16,781 hours to 21,589 hours).

Figure 12

Stand By Staffing7 (SBO) is a major driver of overtime, spiking in FY2016. The Fire
Department indicates that increased SBO was related to the Royals playing in the World
Series as well as increases in Sprint Center and Sporting KC activity.

Figure 13

7
SBO includes Honor Guard, Fire Guard and Medical Stand-by time.

15
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Training as a source of overtime saw an enormous increase, up from 1,052 hours in


FY2015 to 8,881 hours in FY2016.

Figure 14

Aircraft Rescue and Fire Fighting (ARFF) overtime was also up substantially in FY2016.

Figure 15

16
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Battalion
Battalion data allow a review of the trends for each battalion. Over the period of study, they have
all been trending upwards, but there are significant variations across battalions over the years. For
example, Battalion 107 went from being middle of the pack for most of the period to accruing
the most overtime in FY2015 and FY2016. Conversely, Battalion 102 moved from near the
middle of the pack to the lowest number of OT hours in FY2016. These data may lead to questions
concerning scheduling and staffing at the various battalions. One appropriate area of investigation
may be whether practices from the battalions with relatively lower levels of overtime that can be
adopted elsewhere? Why was growth from FY2014 to FY2015 either modest or negative for four
of the seven battalions, only to increase dramatically from FY2015 to 2016?

Figure 16

17
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Time Reporting Codes


A breakdown of the TRC types shows:

Overtime @ Hourly Rate (OTR) is by far the most frequently used code, increasing 73%
from FY2013 to FY2016. For 40H workers, OTR is always paid at the regular pay rate,
but for 99H workers, it is sometimes paid at regular rate and sometimes at one-and-a-half
times the regular rate. Overtime @ 1.5 (OTP) has historically been the second most
frequently used code, though it has declined substantially in recent years as other, more
specialized codes began to be used instead. The City began using OTR for employees in
FY2012. Before this, all overtime was paid as OTP across the Fire Department.8 In
addition, the way that City overtime is tracked for 40H employees9 and Static
employees10 changed during our scope period.

Figure 17

8
Until April 2011, the Fire Department did not pay Firefighters strictly based on the Fair Labor Standards
Act (FLSA), which only requires overtime for hours worked in excess of 212 hours in a 28 day period.
Instead, the City paid overtime to Fire Fighters for all hours in addition to their regular shift (more than
198), a more generous policy than the FLSA requires.
9
This change included paying overtime for 40 hour employees when they use sick time or vacation time
in a week. After the change, OTP pay is limited to hours over 40 that they are present at work. Time
during the week over 40 hours where they are present for less than 40 hours is paid at OTR, or at their
regular hourly rate.
10
Time in excess of regular shift for Static employees (new during the scope period) is all entered as
OTP. The time and one half portion of their pay is entered separately during a look-back process by Fire
Payroll.

18
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

FLA40, which is hours in excess of work period for 40 hour employees, shows a major
increase from FY2015 to FY2016, more than doubling. It is our understanding that in
2016, there were employees that moved from Static to a 40H employee classification. This
change causes their overtime to be classified as FLA40 rather than OTR. Three of these
employees accounted for over 1,000 hours of the increase shown for FY2016. For these
employees, there would be a decrease in OTR hours of approximately the same amount
during FY2016.

Figure 18

Special assignments - Stand By (SBO) demonstrates a major increase from FY2015 to


FY2016, up almost 30%. As mentioned earlier, the Fire Department attributes this
increase to a greater number of special events attended.

Figure 19

19
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Static Overtime @ 1.5 (SOTP), makes its first appearance in FY2016. The Fire
Department reports that the Static employee classification will be phased out over
time through attrition.

Figure 20

20
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Shift Group
Finally, analyzing the data by shift group clearly shows that the growth of OT in A, B, and C shift
groups is driving the year-over-year increase. Shift C is shows the greatest rate of growth from
FY2015 to FY2016 at 48%. Notably, Other and 13 Hour shift groups showed substantial
FY2015 to FY2016 growth, at increases of 81% and 70%, respectively.

Figure 21

21
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.2.2 Question 2: What are the major outliers in KCFD OT over the past few years?
Individual Employees
An analysis of the outliers begins with the specific individuals. For the period under study, a
number of leading individuals are consistently among the number of top overtime earners for a
good portion of the time under study.

Of the top ten OT earners during the period under study, four are EMTs, four are
paramedics, one is a Fire Captain, and the other one is a Firefighter.

Employee 100244 (Firefighter) is the top OT earner for all years, averaging over 2,000
hours in OT earned for each year, with a high of 3,240 hours in FY2016. That employee
has worked 67% more OT hours than the nearest employee during the period under study.

The top OT earners are exclusively 99H employees, but they all worked a mix of 99H and
40H shifts.

Looking at individual years, the same employees show up consistently, including 602876,
602813, 602814, and 602833.

Figure 22

22
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Individual Employees TRC Breakdown


For the employees, one can review the composition of the overtime pay. Most of it is OTR, with
the second largest amount being OTP.

Figure 23

23
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Title/Rank
Reviewing the OT by position indicates the top four positions as being:

Firefighter (from 56,797 hours in FY2012 to 174,011 hours in FY2016 an 206%


increase)

Fire Captain (from 24,766 hours in FY2012 to 54,470 hours in FY2016 a 120% increase)

Paramedic (from 13,466 hours in FY2012 to 36,873 hours in FY2016 a 174% increase)

Emergency Medical Technician (from 9,819 hours in FY2012 to 28,235 hours in FY2016
a 188% increase)
Although small relative to the OT earned by the 99H employees, it should be noted that 13,438
hours of OT pay for Accounting Clerks was incurred over the period under study.

Figure 24

24
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Region
These data show the preponderance of overtime hours from Medical Bureau Field over the period
of study with hours increasing from 1,675 in FY2012 to 21,589 in FY2016, up by more than 12
times. Also up significantly was Stand by Staffing, from 8,571 in FY2012 to 25,484 in FY2016.
By contrast, Hazardous Materials trended only modestly during the period, from 6,812 in FY2012
to 9,536 in 2015.

Figure 25

25
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Battalion
The Battalion data view for the period under study reveals the aggregate overtime accrued by the
Battalions during the period, with Battalion 107 as the leader with 134,484 hours of OT paid versus
99,883 for Battalion 104.

Figure 26

A year by year analysis in Figure 16, shows significant variation over the years, with different
Battalions at the top and bottom of the list for different years.

26
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Time Reporting Codes


An analysis of the TRC from FY2012-FY2016 shows the preponderance of OTR and OTP over the
years in our scope period.

Figure 27

27
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Incorporating the ambulance service into the Fire Department, and changing the way that 40H
employees were paid overtime led to a substantial increase in OTR in the later years. By FY2012,
OTR is the most frequently used OT TRC and remains so throughout the period under study. In
the latter years (2014-2016), OTP usage has substantially decreased, overtaken in usage codes like
Holdover (HOR)11, Static Overtime (SOTP), Double Overtime (OTD), and Stand-by-Staffing
(SBO). The example below features the FY2016 data.

Figure 28

11
HOR is incurred when personnel must stay on following the completion of their shift because a
replacement is not available.

28
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Shift Groups
The Shift Groups view allows for determining the specific shifts within the Shift Groups that are
generating the most OT. While this does not provide greater visibility within the Shifts A-C as to
specific shifts within the shift group, it does allow for drilldown on the other types of shifts within
a shift group. For example, selecting the Other category for FY2016 allows one to see its
composition. One can see the significance of Stand-By as a component of Other.

Figure 29

29
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.2.3 Question 3: What are the main drivers of the OT outliers?


From these views, one can drill down deeper and look at specific components of the OT hours paid,
switching variables and looking for trends.
Employee/TRC
Looking at the leading OT employee, 100244, one is able to isolate and look at precise composition
such as the TRC by year. Tableau allows a user to Keep Only one individual and to drill down
into the specifics. In this view, one can see how the composition of overtime by TRC varies from
year to year. In the case of 100244, it does not vary much, with OTR being, by far, the leading
category. One can further break down the individual and the TRC by Region. For example, just
under half of 100244s overtime in FY2016 was in OTR from Battalion 107.

Figure 30

30
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Shift/Region/TRC
Using this view, one can isolate by Shift Group in order to analyze the composition. For example,
one could select FY2016 and Battalion 107 and analyze the OT attributable to various shifts.
For example, showing both the FY2015 and FY2016 for the Battalion shows the substantial growth
in Shift C overtime from year-to-year (up 63%), whereas overtime for the other shifts grew much
more modestly.

Figure 31

31
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Additionally, in FY2016 Overtime Double (OTD) varies substantially in Battalion 107, with much
less being accumulated in Shift A (188) versus the other two shifts (B 369 and C 365).

Figure 32

32
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

33
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Region/Rank/TRC
These views allow for drilling down on the composition of OT for particular regions. For example,
selecting Medical Bureau Field provides an understanding of the particular Region by
composition of OT by Rank and Title. For example, in FY2012, the vast majority of Medical
Bureau Field OT was for EMTs and Paramedics, with Firefighters making up only a small
percentage (7%).

Figure 33

34
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

However, by FY2016, the biggest earners of OT hours were Firefighters (27% of the total), with
many more hours for firefighters overall versus FY2012 (6,946 in FY2016 versus 137 in FY2012).

Figure 34

35
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Battalion/Rank/TRC
The Battalion view allows for drill down on composition, with the Battalion as the leading variable.
The data for these views tend to be pretty consistent, with little change in the Rank/Title of
individuals drawing the most OT pay during the period under study Firefighter, Fire Captain,
EMT, and Paramedic. The composition of the OT pay does show significant change over time,
other than for OTR, with Static Overtime and Holdover Detail increasing and OTP decreasing, as
previously discussed.

Figure 35

Selecting individual regions within the Department allows for analysis of the composition of
growth among specific battalions.
For example, for all years, questions of interest might include why is Battalion 107 relatively lower
with Shift A OT hours versus overall? Or, more specifically, why does Battalion 107 have so
many more OT hours on Shift B than other Battalions?

36
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Department/Rank/TRC
The Department view shows the change in OT at the aggregate, department level. In all years, the
vast majority of OT is from the Emergency Operations Bureau.
In FY2012, there were 89,172 hours of overtime for the Emergency Operations Bureau.
Figure 36

37
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

That increased by 188%, to 256,978 in FY2016.


Figure 37

38
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.2.4 Question 4: How is OT correlated with the number of calls? What is the trend versus
actual service level received?
It is understood that overtime is driven by the need to meet staffing operational requirements, not
emergency calls directly. Whether or not the Fire Department resources actually have to respond
to a call, such resources need to be available to take any calls when the public is endangered.
However, for the average resident, it makes intuitive sense that the Fire Departments overall
growth in resource needs should at least be roughly correlated with the growth in emergency calls.
If the growth in overtime is not at least roughly correlated with the growth in emergency calls over
the long term, that may invite consideration as to whether staffing reflects actual operational
requirements.
Hours vs Calls
By comparing the slopes of the two lines, one can see that while both are increasing calls and OT
- the amount of overtime, represented in orange, is increasing at a substantially faster rate than the

Figure 38
volume of calls (light blue). Mathematically, the slope of the increase in calls is 1.89, while the
slope of the increase in overtime hours is 7.99.

39
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Breaking it out, one can see there is substantial variation across battalions, with the rates of
increase in OT versus emergency calls approximately the same for Battalion 102 (Figure 39) and
just a little faster for Battalion 104 (Figure 40).

Figure 39: Battalion 102

Figure 40: Battalion 104

40
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

However, there are substantially higher rates of growth for OT hours versus the calls for the
Battalions such as 107 and 108.

Figure 41: Battalion 107

Figure 42: Battalion 108

41
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

These call data that were provided to BKD were not broken out by battalion, so there may be
certain geographic or operational factors driving the need for the substantially higher overtime at
Battalions 107 and 108. However, if the data exist, a more detailed analysis of calls versus
resources may be used to assist in making decisions about how to allocate staff and
equipment most effectively across battalions based on actual call response need.
Battalion Trends vs Calls
This view allows one to break out OT by battalion and by year, showing the relationship with
emergency calls (represented by the gray horizontal bar).

Figure 43

Further classification on emergency call type (structural fires, medical aid, false alarms, etc.)
beyond what BKD received for analysis could allow for a more detailed analysis of resource needs
by Battalion.

42
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.2.5 Question 5: What is the trend of OT as a share of total fire pay?


Battalion Regular vs OT Trend
For FY2016, regular hours have been decreasing while OT hours continue to rise. This is likely
attributable, in part, to the expansion of the use of OTR in recent years, with a significant portion of
that being paid at the regular employee pay rate (for example, for the hours worked by Firefighters
between 198 and 212 hours).

Figure 44

43
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

This trend of decreasing regular hours and increasing OT hours is evident in every Battalion except
for 102.

Figure 45: Battalion 102

Figure 46: Battalion 103

44
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 47: Battalion 104

Figure 48: Battalion 105

45
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 49: Battalion 106

Figure 50: Battalion 107

46
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 51: Battalion 108

Compensation View
The portion of all compensation that is for OT substantially increased from FY2012 to FY2016,
shown in the visuals below.

Figure 52

Additionally, double overtime has increased from $252,752 in FY2012 to $921,116 in FY2015.

47
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Hours View
Overtime hours, as share of all hours, also substantially increased, from 3.83% in FY2012 to 8.57%
in FY2016.

Figure 53

The partial year data shows that the growth in overtime as a percentage of all hours worked is
unabated in FY2017, with OT at 10.26% of the hours.

Figure 54

48
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

3.3. External Research on Budgeting and Management Practices


Some level of overtime for fire service operations is appropriate and necessary, for example, to
address emergencies, deliver essential services, and provide holiday coverage. However, in many
communities across the United States, the rate of increase in fire department overtime is a serious
issue, negatively impacting city budgets and crowding out other important municipal expenditures.
For this analysis, the City specified that BKD identify national best practices for normal overtime
budgeting and management practices as well as reserves that would be sufficient for vacation and
sick leave coverage.
The Great Recession brought substantial budget pressures to most communities across the country.
Non-public safety municipal government programs generally experienced significant budget cuts.
While public safety operations also received scrutiny and reductions, the degree to which they were
reduced was generally less than other areas of city government. Almost ten years from the
beginning of the Great Recession, there are numerous communities in which the public safety
budget exceeds 75 percent of the general fund.12 While funding for public safety operations has
begun to rise again, it is unlikely that rates of growth will return to pre-2007 levels for most
communities, especially with very limited expectations of increases in federal funding.
The specific issue of fire department overtime has been publicly raised within the last five years in
many communities, such as St. Paul, MN13; Portland, ME14; Los Angeles, CA15; Washington,
DC16; and Scottsdale AZ17 and has prompted a number of different strategies to address the issue.
There have been a number of cities that have reduced fire department overtime, including Dallas,
Scottsdale and Cleveland18, using various strategies.

Budgeting Practices
The general practice followed by communities comparable to Kansas City when it comes to
budgeting for fire department overtime is to do as Kansas City does set an annual overtime target
based on historical rates of overtime pay. The actuals are normally monitored throughout the year
and reported against the budget on a periodic basis to general city management, finance, and fire
department personnel. Despite referencing various International City-County Management
Association (ICMA) and Government Financial Officers Association (GFOA) documents and
websites, we were unable to identify any standard ratios or rules of thumb relative to best
budgeting practices for fire department overtime.
Specific approaches to achieving budgeted overtime levels include:

12

http://webapps.icma.org/pm/9508/public/cover.cfm?title=Is%20the%20Current%20Model%20for%20P
ublic%20Safety%20Service%20Delivery%20Sustainable%3F%20&subtitle=Fiscal%20realities%20may%20
require%20operational%20changes&author=Leonard%20Matarese
13
http://www.firehouse.com/news/12274501/city-fire-chief-looking-into-overtime-costs-response-
times-and-staffing-firefighter-news
14
http://bangordailynews.com/2013/01/18/news/portland/portlands-new-fire-chief-faces-department-
review-looks-to-overcome-past-budget-overruns-and-fireboat-accidents/
15
http://www.dailynews.com/article/ZZ/20090418/NEWS/904189899
16
https://www.washingtonpost.com/local/dc-politics/dc-firefighters-47-million-overtime-bill-roils-city-
budget/2015/01/26/7dca31ba-a572-11e4-a7c2-03d37af98440_story.html?utm_term=.098d42568968
17
http://www.scottsdaleaz.gov/Asset38724.aspx
18
http://www.cleveland.com/metro/index.ssf/2012/09/cleveland_fire_department_spen.html

49
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

One practice employed by Scottsdale, AZ, involves the setting of overtime limits per
public safety employee in order to minimize fatigue and other workplace issues associated
with excessive hours worked. For example, the Fire Department limits overtime hours to
25% of scheduled hours for individual employees. Overtime beyond this amount is
supposed to be allowed only with special, documented approval by the City Manager or
Designee.19

Other communities limit the number of shifts that can be traded.20

Some have found that individuals in exempt level positions within the Fire Department
receive overtime pay and have eliminated that practice.21

Others modify current policy to realign with the requirements of FLSA that only time
actually worked is counted towards overtime, excluding vacation, sick, and holiday pay
which are not hours worked, but earned.22

3.3.2 Management Practices


While budgeting appropriately for overtime expenditures is important, the approach for many
departments in attacking the root cause of some of overtime involves reviewing the overall staffing
model employed. Fire departments have traditionally used constant staffing even though demand
for service fluctuates. Using basic analytics, many departments find that calls for service,
population, and overall community risk vary significantly throughout the day, week, and month.
Strategies such as using peak unit staffing and revising the service model to be consistent with the
level of risk assessment are viewed by some departments to be valid responses to such issues.23
Greater use of civilians to provide some services, may be appropriate.24
Revised Staffing Models.
EMS-related calls are the greatest source of demand on fire resources. More than half of all calls to
a typical fire department are EMS-related.25 In many communities, medical calls constitute some
80% of call volume for the fire department.26 Despite this, many departments use a staffing and
deployment model originally designed for structural fire responses, even though this might not be
the most appropriate based on the actual emergency call data.27 Improved fire codes, sprinklers,

19
http://www.scottsdaleaz.gov/Asset38724.aspx
20
Wiss, Thomas L., Time Trading: Kansas City Kansas Fire Department. Office of the Legislative
Auditor: March 2016.
21
http://cjonline.com/news-local/2013-08-20/city-scraps-practice-paying-ot-fire-department-
management
22
http://www.cstx.gov/Modules/ShowDocument.aspx?documentid=18375
23
Ibid.
24
http://okgazette.com/2016/08/10/city-holds-special-election-over-firefighter-pay-negotiation/
25
David N. Ammons, Municipal Benchmarks (Thousand Oaks, CA: Sage Publications, 2001), 141.
26

http://webapps.icma.org/pm/9508/public/cover.cfm?title=Is%20the%20Current%20Model%20for%20P
ublic%20Safety%20Service%20Delivery%20Sustainable%3F%20&subtitle=Fiscal%20realities%20may%20
require%20operational%20changes&author=Leonard%20Matarese
27
http://www.governing.com/columns/smart-mgmt/col-fire-departments-rethink-delivery-emergency-
medical-services.html

50
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

and other tools will continue to drive down the number of actual structural fires, which were
estimated at about 4% of all emergency calls nationwide in 2015.28
In the interest of reducing healthcare costs, the ACA and other insurance considerations will
continue to push traffic to out-of-hospital care and treatment. This will ultimately reduce the
number of patients going to the hospital emergency departments. Some fire departments around the
country are seeking to respond in creative ways. Some are using a single medic to assess low risk
calls and to conduct follow-up. Others are implementing transitional response vehicles
that include nursing personnel to provide treat-and-release service.
For example, one fire station found that developing an adaptive response program with minimum
staffing and an appropriate response vehicle reduced base staffing needs by 12% in addition to
cutting overtime.29 The City of Tucsons Human Services Alpha Truck program serves at-risk and
vulnerable populations who request emergency services. The smaller truck is staffed by two
firefighters/EMTs with their equipment; they are trained to address minor injuries and to provide
referrals to social services, where appropriate.30 The unifying factor in these approaches is
developing and deploying operational models that provide for tiered levels of service based on the
severity of the issue. Some departments are finding that these tiered levels of service can provide
improved cost-effectiveness without diminishing service quality.
In addressing the overall issue of rising overtime cost, Kansas City could commission a review of
its EMS staffing versus the evidence-based practices explained in the document, Emergency
Medical Services Evidence-based System Design White Paper for EMSA.31 That document,
authored by nationally-recognized experts in EMS operations and emergency medicine, includes
relevant topics such as: response configuration and modality; response time standards; basic and
advanced life support considerations; scheduling deployment models; and staffing and clinical
efficiency. This document has received national recognition as to its value for appropriately
structuring EMS operations, including citation in ICMA publications on the subject.
Workers Compensation Management Strategies
Workers Compensation (WC) injuries can be a significant factor in the driving overtime needs and
costs for major fire departments. To address the issue, the City of Tulsas Fire Department created
an Injury Review Board (IRB) to review injuries, detect patterns, and find root causes. It brings
together a supervisor, fitness counselor, WC rep, and medical doctor to break down barriers and
improve communication. The IRB is completely focused on the goal of making work safer for
firefighters. Since the institution of the IRB, recordable injuries within the City of Tulsa Fire
Department have dropped 30% over the period of two years.32

28
http://www.nfpa.org/news-and-research/fire-statistics-and-reports/fire-statistics/the-fire-
service/fire-department-calls/fire-department-calls
29

http://transformgov.org/Wiki/Fiscal_Fixes_Resilient_Responses_to_the_Fiscal_Crisis/Reengineer_Organ
ization
30
http://www.jems.com/articles/2008/08/alpha-trucks-work-tucson-not-p.html
31
http://www.ucma-utah.org/pdf/LM10-
OUDEM%20EMS%20System%20Design%20White%20Paper%20FINAL%20for%20July%202011%20Relea
se.pdf
32
TulsaOK_Fire Injury Review Board_TLG2016app.pdf available at transformgov.org

51
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

4. ASSESSMENT OF THE COLLECTIVE BARGAINING AGREEMENTS


There are three Collective Bargaining Agreements (CBAs) which impact overtime. The
agreements are between the City and the following unions:

International Association of Fire Fighters Local No. 42 (Local 42)

International Association of Fire Fighters, Local 3808 (Local 3808)

Local 500 of the American Federation of State, County and Municipal Employees, AFL-
CIO (Local 500)
Our procedures were to assess certain aspects of the Collective Bargaining Agreements and analyze
their effect on overtime. We assessed if the negotiated force reduction took place, required staffing
levels, and how overtime was handled in keeping with the CBAs. We also considered if there were
areas in which the pay structure may lead to elevated OT cost and if there were issues to be
monitored going forward. Finally, we compared the new CBAs with the CBAs existing during the
scope period and identified areas where OT cost may have increased.

4.1 Force Reduction


The force reductions agreed upon in the 2012 Local 42 CBA, which included reducing the 20
ranked positions from two Fire Companies (Pumper 1 and Pumper 32) and the three positions
(RSM Coordinator, WMD Coordinator, and EMT Certification Coordinator) took place. Fire
Payroll was able to provide information as to where the employees were reassigned.

4.2 CBA Pay Structure Leading to Elevated Overtime Costs


Areas ripe for elevated overtime costs include situations where the City pays overtime for a
minimum certain number of hours. These areas should be monitored by City management. These
areas include:

Medical Standby (SBO), Fire Guard (FGOTP) and Honor Guard (HGOTP) - Eligible off-
duty members who perform certain duties to ensure public safety for public or private
events, for emergency protection ordered by the Fire Marshall, or for representation of the
Fire Department (ceremonial, funerals, etc.) are paid a minimum of four hours at the time
and one half overtime rate. Therefore, if an employee performs these duties for one hour,
they are paid an additional three hours of overtime.

Figure 55

52
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Call Back Time (CBF) - A member who is called back to work after leaving his or her
regular shift is compensated for at least four hours of work at the rate of time and one-half
regardless of the actual time worked. Following a spike in 2013, the amount of CBF has
been creeping upward.

Figure 56

As described in Section 5 below, holdover time is created when there are not enough
employees to meet minimum staffing, and the current employee is held-over until a
replacement employee arrives. This appears to be an area in which City management
should monitor and a potential area where work could be done to minimize this type of
overtime. This could come in the form of scheduling more employees than are needed for
minimum staffing based on the historical trend of employees who call in.
Below, Figure 57 and 58, are broken down by the length of time holdover is paid, over and under
one hour. The distinction should help identify the quantity of employees who are being paid the
minimum holdover time (held over for more than 30 minutes is an automatic full hour), and the
quantity of employees who are held over for more than an hour. The CBAs allow an employee
who is called in 90 minutes to arrive to take over the position, which permits longer amounts of
holdover time. Holdover time is generally increasing for both types over and under one hour.

53
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 57

Figure 58

54
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 59

4.3 Comparison of Old and New CBAs


We analyzed the CBAs that were in place during the period under study, comparing the two for
changes as it relates to overtime. The following changes were noted:

The new Local 42 CBA created a 24-Hour Employee (Non-207K) which allowed
personnel assigned to a 24 hour shift on a static ambulance to be assigned to a schedule
that uses a three shift system and an N-Day every nine shift days. This is similar to what
the 99 hour Fire Fighters receive. N-Days do not count towards the minimum 212 hours
before overtime is paid, therefore, this will likely be neutral with regards to overtime.

The new Local 42 CBA gives significantly more detail around Specialized Unit Overtime.
While the old Local 42 CBA addressed ARFF and Hazmat, the new Local 42 CBA
addresses the following in this section:
o Rescue Units
o Single Role EMS
o ALS Pumper and Squad Units
o Communications Center
o Logistics and Fleet
o Training Academy
o Fire Prevention
o Fireguard and EMS Standby

55
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

The new Local 42 CBA created minimum staffing of eight bargaining unit members (non-
supervisory members) for the KCFD Communications Center. In addition, the new Local
CBA created minimum training for Communications between one and four hours each
month, which will be paid at a rate of time and one half of regular rate. This will likely
cause an increase in overtime pay.

There are no reductions of force required in the new Local 42 CBA.

In the second year of the new Local 3808 CBA, the employees working on a three shift
system will receive 12 N-days per year. This is a decrease from 14 a year. As N-days do
not count towards the 212 minimum, this could cause an increase in overtime pay.

In additions, the new Local 3808 CBA allows for Assistant Division Chiefs who are
working on a three shift system to be paid overtime at a rate of time and one half for all
hours actually worked in excess of 40 hours in a seven day cycle. This relates to three
EMS Assistant Division Chiefs. This will likely increase the amount of overtime pay for
these individuals.

The new Local 3808 CBA moves Assistant Division Chiefs assigned to the
Communications Divisions from an 80 hour pay period schedule to a 40 hour work week
schedule. It is our understanding that this was a change in writing to reflect how the
employees have been treated in practice. There is no anticipated increase in overtime
related to this change.

4.4 Areas Where Overtime Could Be Decreased


There is overtime pay being incurred and paid which is not required by the current CBA. Pay
codes for this overtime are:

ARFOT (Arrival and departure from KCI fire station) Fire personnel who work at the
airport are paid 1 hour at 1.5x hourly wage for the 20 min at the start and end of their shift
due to the required escort across tarmac.

56
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 60

EAROT (Early Show) Fire Captains for Hazmat and ARFF divisions performing certain
Battalion Chiefs duties prior to shift change are paid .5 hour work out of class at 1.5x
hourly wage.

Figure 61

FAR or FAO (Fire Dept. Assessment Off- Duty) Fire personnel performing assessments
for promotional process are paid 1.5x hourly wage

57
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

Figure 62

PFOT and PFT (Peer Fitness Training Overtime) Administer the annual fitness assessment
that applies to all emergency response personnel, are paid 1.5x hourly wage

Figure 63

OTR for Recruiting: Individuals assisting at a recruitment event are paid at individual
overtime rate with a minimum of 4 hours. Unfortunately, there is no specific pay code for
this type of OTR. Therefore, we are not able to track the usage.
Although the City has always paid overtime for these activities, in an effort to reduce overtime pay,
these are areas for which the City could consider changing policy, as overtime is not required per
the CBA.

58
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

5. ANALYSIS OF THE PROCESS USED BY BATTALION CHIEFS TO ENSURE


OVERTIME/SPECIAL PAY HOURS ARE BEING WORKED/EARNED BY
EMPLOYEES
BKD met with Battalion Chiefs Grundyson and Walker on July 29, 2016 to discuss the process
used to ensure that overtime and special pay hours are being worked and earned by employees.
The following information came from the discussion with the Battalion Chiefs:

The Battalion Chiefs get a list of the staffing for the shift for their Battalion, taking into
account employees who have called in sick.33 The Deputies move people around in an
attempt to make the minimum staffing for each fire truck, pumper, etc. By 7:00 am, these
movements have been decided, communication is made with the Captains, and
understaffed locations are considered to be in hiring mode.34

When a location is in hiring mode, the Battalion Chiefs start making calls to fill positions.
Per our interview, Battalion Chiefs typically make over 100 calls in one day to fill the open
positions.

Until the positions are filled, the current firefighter is held over until the replacement
arrives. The Battalion Chiefs are notified by the Captains when the replacement arrives,
which allows the Battalion Chiefs to record the exception into the TeleStaff system. There
are no policies surrounding how the records of these replacements are maintained. Some
Battalion Chiefs dispose of the notes when they enter the information into TeleStaff, while
some keep the logs for a year.

Two employees cannot be paid at the same time for the same position. The held-over
employee is paid until the new employee arrives.35 Time reported for two employees for
the same position should be flagged by the Senior Administrative Assistant who reviews
the rosters daily. In addition, the employees monitor their paychecks very closely for
holdover time. Per the Battalion Chiefs, this creates a system that is relatively self-
policing.

The exception to this is when there is a call while the held-over employee is still on duty,
and is out on an active call when the replacement employee arrives. These situations are
not very common, and are described in TeleStaff to let Fire Payroll know why two
employees are being paid for the same position.
As a result of our discussion with the Battalion Chiefs, we did not identify areas of concern where
it appears that employees are being paid for time that they have not worked or earned. Holdover
time will always be needed given the short amount of notice required. If a battalion is
understaffed, overtime will be much more prevalent, as the battalion will always be in hiring mode.

33
Employees need only provide 30 minutes notice that they will be out sick.
34
Hiring mode results in employees working additional hours towards the 212 hour threshold, for which
an excess of 212 hours worked in a 28-day period is paid at 1.5 times normal pay. Vacation and sick
time do not count towards the 212 hours worked.
35
The holdover employee is paid at a rate of 1.5 times normal pay. If the holdover time exceeds 30
minutes, they are paid a minimum of one hour of holdover pay.

59
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

6. TEST OF EMPLOYEES PAID FROM ONLY ONE EMPLOYEE ACCOUNT


The City asked BKD to confirm that employees are paid from only one employee account for a
given pay period:

KCMO Regular Employee Account (KCC) 40 hour

KCMO Fire Account (KCF) 99 hour

KCMO Personnel Services Contracts Accounts (KCS)


This was accomplished by separating the data to show the two different types of shifts (40 hour and
99 hour) and the corresponding accounts from which employees are paid (KCF or KCC).
Our analysis of the 2011-2016 data found that, in accordance with City policy, no employee was
paid from multiple accounts during a single pay period. Employees can designate the account that
they will be paid from at the beginning of the pay period. Although 99 hour employees may work
40 hour shifts during a pay period, those employees are still paid from only one account.
However, there are instances in which individuals work a majority of time in 99 hour shifts during
a pay period, but continued to be paid from the 40 hour account (KCC). Examples include:

Figure 64

The employees above include a Deputy Director, an Accounting Clerk, and two Firefighters
respectively.

60
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

7. OPPORTUNITIES

7.1 Implement an On-going Overtime Monitoring and Analysis Approach


Consistent with the recommendation of the Auditors 2013 report, we believe that the improved
setting explicit targets, tracking, monitoring, and rewarding success will lead to better outcomes
when it comes to overtime management.36 To generate the best results, the Fire Department
management personnel who are closest to the issue should be equipped to analyze the issue and
develop approaches that could be shared with others. They are the ones best suited to analyze and
determine whether there are opportunities to reduce overtime without sacrificing public safety
concerns.
To do so, the City could create dashboards specifically targeted at the battalion and region level to
allow departmental management to drill down in order to better understand the specifics of how
overtime is being accrued. The visuals incorporated throughout this document represent just a
portion of what could be done to analyze the overtime issue. We have also identified questions that
might be asked about the relative performance of battalions and special overtime codes.
This would require the right technology and training to be provided to Fire Department
management, but this upfront investment could yield significant results, especially if the City were
to make this an on-going focus for discussion of approaches and best practices across all
participating Fire Department elements. A data analyst set aside for this task might be necessary to
support the effort. Rewarding and publicizing success could further improve the identification,
promulgation, and adoption of best practices in overtime management across KCFD.

7.2 Conduct Additional Analysis and Consider Policies and Processes for Updating
Further analysis of the relationship between sick time, workers compensation, and overtime is
required in order to develop actionable conclusions. As noted earlier in this document, the City of
Tulsa has been able to reduce WC reportable incidents by 30% over two years through the creation
of a review board. While employee safety is the main reason for seeking to reduce WC incidents,
the City would likely reduce overtime occurrences if it were able to reduce such instances.
Section 4 identifies areas in which overtime could potentially be trimmed, either through
renegotiated CBAs, closer monitoring of certain types of overtime, and ceasing to pay overtime
that is not required by law or the CBAs. Potential savings can be calculated for each of these
opportunities.
Furthermore, implementing overtime limits could be considered, most importantly from an
employee and public safety perspective. The levels of overtime worked by the Fire Departments
top overtime earners are likely well outside the recommended limits for those involved in such
public safety work. While limiting levels of overtime for certain high accruing individuals may
place a greater strain on others, it could also further raise the visibility of the issue and force a
greater focus on addressing the drivers of overtime.

7.3 Conduct a Staffing and Deployment Analysis


Ultimately, overtime accrual is significantly driven by the size of the workforce and the
organizations specific staffing needs. The changing composition of emergency calls and the
existence of tools that allow for advanced analyses should inform the evolution of every fire
departments staffing model. To the extent that if City and Fire Department management feel it
appropriate, the City could commission an effort to look at the staffing approaches in use elsewhere

36
Jones, Douglas. Performance Audit: Citywide Overtime, November 2013. Kansas City, MO:
November 25, 2013.

61
Kansas City Fire Department // Overtime Analysis and
Dashboard Prototype Development
February 8, 2017

to determine whether its staffing and deployment model could be further improved to match
available resources while maintaining the necessary level of public protection.
Areas of focus might include:

Further breaking down emergency call data to allow for more granular analysis of the type
of calls by type and geography

An analysis of strategies to reduce false alarms

Benchmarking against other communities with similar volumes and demographics

Target levels of productivity

Geographic distribution of resources

Adoption of community-appropriate response standards

Differential responses to medical calls based on assessment of risk

Conforming processes, procedures, and protocols to reflect best practices

Opportunities to mitigate safety and legal risks associated with the services

Development of performance measures that include both response effectiveness and


efficiency
Several resources and case studies have been mentioned throughout this document that might be of
value as a starting point for this analysis.

62