FORM GEN. 160

CITY OF LOS ANGELES INTER-DEPARTMENTAL CORRESPONDENCE

Date: May 07, 2018 Memo No. 154 REVISED

To: Budget and Finance Committee

From: Richard H. Llewellyn, Jr., City Administrative Office~ Subject: REVISED - LOS ANGELES POLICE DEPARTMENT - FUNDING TO AVOID

BANKING OVERTIME

During its consideration of the Police Department's (LAPD) 2018-19 Proposed Budget, the Budget and Finance Committee requested LAPD to report on the amount of funding needed to avoid banking sworn overtime in 2018-19. The Department states in its response (Attached) that $24.0 million is needed to achieve this result. The Department considered current and prior usage levels; the July 1, 2018 cost of living adjustment (COLA) (two percent) for officers; and, special purpose allocations ("carve outs") within the Overtime Sworn account that are included in the Proposed Budget as follows:

Sworn Overtime Expense Within Sudget Proposed Total Increase

Non-Reimbursable Overtime $67,223,000 $17,700,000 $84,923,000

July 1, 2018 Cost of Living Increase - 1,815,540 1,815,540

Subtotal $67,223,000 $19,515,540 $86, 738,540

Reimbursable Overtime Front-Funding $48,092,926 $ - $48,092,926

Special Purpose "Carve Outs" 2,777,000 4,316,920 7,093,920

Total $118,092,926 $23,832,460 $141,925,920

Several items should be noted relative to the Department's analysis:

• The $24.0 million requested increase consists of $17.7 million for additional LAPD-related overtime to perform non-specialized deployments; $1.82 million to offset the July 1, 2018 COLA increase for officers; and, $4.32 million for specialized deployment "carve outs" such as illegal cannabis enforcement;

• The COLA calculation was applied to existing non-reimbursable funding ($70 million) and $17.7 million of the $24 million requested increase and totals $1.82 million; and,

• The Department's calculations bifurcates the $7 .09 million of carve outs included in the Proposed Budget into those currently in place ($2.78 million), less $635,000 for Bandit Taxi enforcement which has been operational for several years, with those that are new in 2018-19 ($4.32 million) plus the Bandit Taxi funding.

For comparison purposes, the Proposed Budget provides approximately 956,480 overtime hours for LAPD-related overtime at the average COLA adjusted hourly rate of $83.64. It should be noted that since many officers make less than the average hourly rate it is likely

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that the number of available hours will be higher than 956,480. Since 2014-15, officers have chosen to bank an average of 200,271 unpaid overtime hours annually. If that pattern continues, a combined paid and banked overtime budget of 1.16 million LAPD-related overtime hours will be available in 2018-19. In addition, approximately 455,439 hours for Los Angeles County Metropolitan Transportation Authority (LACMTA)-related overtime are provided for a total of 1.62 million hours. An unknown additional number of hours will be worked for off-budget reimbursed deployments such as special events. Between 2010 and 2014, when most overtime hours were banked rather than paid, there was an average of 1.23 million hours of sworn overtime for all sources; from 2008-09 through 2016-17, the average number of hours was 1.42 million annually.

FISCAL IMPACT STATEMENT

The General Fund impact of funding the costs identified by the Department will be $24 million. Should these costs be funded, offsetting General Fund revenue or reductions to appropriations will need to be identified.

RHL:TJM:04180117

Question No. 131

Attachment

LOS ANGELES POLICE DEPARTMENT Attachment

P. 0. Box 30158 CHARUEBECK Chief of Police

Los Angeles, Calif. 90030 Telephone: (213) 486-8590 TDD: (877) 275·5273

May 3, 2018

ERIC GARCETTI Mayor

The Honorable Budget and Finance Committee cl o Richard Williams Office of the City Clerk Room 395, City Hall Los Angeles, California 90012

Ref#: 3.5

Subject: Budget Impact Letter No. 131-Funding to Avoid Banking Overtime

Honorable Members:

In conjunction with the Fiscal Year 2018-19 Budget, your Committee requested a report on the amount of funding needed in the budget to avoid banking overtime in 2018-19.

To determine the funding needed to avoid banking overtime, the Department considered the following factors:

• Usage in the current fiscal year and previous fiscal years • July 2018 Cost of Living Adjustment (COLA) • Additional carveouts included in the Proposed Budget

As such, it was determined that an additional appropriation of approximately $24 million is needed to avoid banking overtime in 2018-19. It is important to note that Memorandum of Understanding (MOU) 24 allows employees to choose cash or compensated time for overtime hours worked. As such, the projection is based on the trend prior to banking overtime in 2017-18. This projection does not account for unusual occurrences, such as natural disasters and protests.

If you have any questions regarding this information, please feel free to contact me at (213) 486-8410.

JO~. v£LE~ssistant Chief Director, Office of Administrative Services

AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER www.LAPDonline.org www.joinLAPD.com