Independence police, for more than two decades, used uninsured police employees — on no-bid, unwritten contracts — to design, administer and complete “in-house” renovation projects at police headquarters, according to a new report from a special investigator hired by Independence city leaders.Special counsel Dan Nelson of Spencer Fane also found Independence police leadership opened the city to “great liability risk” and never received express permission to pay police officers overtime rates during the most recent 14-month renovation project for every floor of police headquarters.For that renovation, KMBC 9 Investigates found a master police officer received more than $169,000 pay in overtime last year, making him the city’s top paid employee with total earnings of more than $263,000. The officer worked as a de facto foreman at the request of his bosses, namely the department’s former Chief Brad Halsey. Four other sworn police employees — along with several independent contractors — contributed to the work at police headquarters, KMBC 9 Investigates found. KMBC is withholding the name the officers since they are not charged criminally, nor are they facing administrative sanctions. Nelson’s five-month investigation also found Independence city management staff failed to keep police command staff accountable for using police labor and overtime for the renovation work. City manager Zach Walker earlier this year told KMBC he approved the work but did not approve any sworn member of law enforcement doing renovation work at overtime rates. Walker ordered the independent investigation in February after a whistleblower brought forward concerns about the misuse of overtime funds for the construction. Headquarters construction project reveals vulnerability in city overtime and bidding practicesNelson’s report shows police employees received 3395.75 hours of overtime pay to renovate every floor of Independence police headquarters. The work started in 2020, continued into 2021, and stopped in January 2022 when city leaders halted the project.The construction project most likely saved taxpayers money by using in-house labor, according to Nelson’s analysis. But that did not make the work acceptable, he found.The total project cost about $397,800, Nelson found. The labor cost was about $200,590, he said.Nelson found most of the work took place to renovate the basement jail inside police headquarters. That work happened mostly offsite at four different locations while the jail was occupied. Nelson found police employees built a custom modular jail offsite on a replica wood template. It was reconstructed at the jail using 148 custom steel pieces to exact specifications. Nelson said the project was well executed and provided strong value to taxpayers. He also found no evidence of poor police performance as a result. Nelson said city leaders approved renovations at police headquarters, but only through verbal conversations. This created a significant miscommunication about renovations between Independence police and city management staff, Nelson found.Police also avoided important city bidding requirements by viewing the project as several small projects instead of one large project, Nelson said.“This was effectively an ‘end run’ around the City’s procurement policy,” Nelson wrote in a report.Nelson also recommended a new modern digital payroll system for Independence police to red flag unexpected trends in overtime. Currently, the department uses “outdated” paper overtime vouchers to document overtime. “No evidence of dishonesty” by police employees, but special counsel calls for pension audit The investigation found no evidence of dishonesty by police employees, according to Nelson’s report. He did not find evidence of fraudulent timekeeping or any attempt to hide the project from the city.However, Nelson called for a citywide audit of using overtime and how it could affect an officer’s pension, saying there could be incentive for officers to use overtime construction work to raise their eventual pension amounts. Independence participates in the Missouri LAGERS pension system. Police employees receive a retirement calculation based on the average of the highest three consecutive years within the last 10 years of employment.“Anecdotal evidence from the investigation suggests it is standard practice for Independence employees in multiple departments to seek extra overtime during their final three years in order to bolster their LAGERS pensions,” Nelson said. “Economies of scale may insulate the City from isolated pension padding, but if dozens or hundreds of employees are engaging in this practice, contribution rates become greatly inflated.”Nelson encouraged city leaders to review and establish policies to protect the city from pension padding, especially within the police department, fire department, and Independence Power and Light.This all comes after KMBC 9 Investigates uncovered multiple angles in this investigation.Last month, KMBC 9 Investigates obtained new video of the officer at the center of the investigation. The video, from a day in January of this year, shows a snapshot of a police officer working long hours on the jail construction project that took more than a year to complete.Former Independence city councilwoman Lucy Young was at a press conference Tuesday where Nelson announced his findings. She noted City Manager Zach Walker’s absence from the press conference, and Walker’s responsibility to be held accountable.“What a coincidence,” she said. “He should have been up at the podium.”Walker also told KMBC he was not at the press conference Tuesday since he had six pages of policy recommendations to review.“My time was better spent getting to work on fixing this organization than listening to a presentation I already received last night,” Walker said.The city of Independence on Tuesday released an unsigned statement about the investigation.“We would like to thank Dan Nelson and Spencer Fane for conducting a thorough investigation and complete audit of the renovations and overtime costs related to the work at police headquarters. We appreciate the independent evaluation of the situation to help city staff, the Mayor, and Council develop and implement better oversight to ensure this situation never repeats itself. City staff will be studying the specific policies and procedures that need to be reviewed, and likely changed, as a result of the information from the investigation. City staff intends to have a set of policy recommendations to the Council and Mayor for consideration within the next 60 days. Per city charter, any further review of personnel issues will be evaluated by city staff. It is clear, however, that we must have better systems in place that provide easy checks and balances across all our departments to ensure we do not have excessive overtime and policies are properly followed.” KMBC 9 Investigates is working to develop more angles on this story.If you have any tips about this investigation or any others, email [email protected].
Independence police, for more than two decades, used uninsured police employees — on no-bid, unwritten contracts — to design, administer and complete “in-house” renovation projects at police headquarters, according to a new report from a special investigator hired by Independence city leaders.
Special counsel Dan Nelson of Spencer Fane also found Independence police leadership opened the city to “great liability risk” and never received express permission to pay police officers overtime rates during the most recent 14-month renovation project for every floor of police headquarters.
For that renovation, KMBC 9 Investigates found a master police officer received more than $169,000 pay in overtime last year, making him the city’s top paid employee with total earnings of more than $263,000.
The officer worked as a de facto foreman at the request of his bosses, namely the department’s former Chief Brad Halsey. Four other sworn police employees — along with several independent contractors — contributed to the work at police headquarters, KMBC 9 Investigates found. KMBC is withholding the name the officers since they are not charged criminally, nor are they facing administrative sanctions.
Nelson’s five-month investigation also found Independence city management staff failed to keep police command staff accountable for using police labor and overtime for the renovation work. City manager Zach Walker earlier this year told KMBC he approved the work but did not approve any sworn member of law enforcement doing renovation work at overtime rates.
Walker ordered the independent investigation in February after a whistleblower brought forward concerns about the misuse of overtime funds for the construction.
Headquarters construction project reveals vulnerability in city overtime and bidding practices
Nelson’s report shows police employees received 3395.75 hours of overtime pay to renovate every floor of Independence police headquarters. The work started in 2020, continued into 2021, and stopped in January 2022 when city leaders halted the project.
The construction project most likely saved taxpayers money by using in-house labor, according to Nelson’s analysis. But that did not make the work acceptable, he found.
The total project cost about $397,800, Nelson found. The labor cost was about $200,590, he said.
Nelson found most of the work took place to renovate the basement jail inside police headquarters. That work happened mostly offsite at four different locations while the jail was occupied. Nelson found police employees built a custom modular jail offsite on a replica wood template. It was reconstructed at the jail using 148 custom steel pieces to exact specifications.
Nelson said the project was well executed and provided strong value to taxpayers. He also found no evidence of poor police performance as a result.
Nelson said city leaders approved renovations at police headquarters, but only through verbal conversations. This created a significant miscommunication about renovations between Independence police and city management staff, Nelson found.
Police also avoided important city bidding requirements by viewing the project as several small projects instead of one large project, Nelson said.
“This was effectively an ‘end run’ around the City’s procurement policy,” Nelson wrote in a report.
Nelson also recommended a new modern digital payroll system for Independence police to red flag unexpected trends in overtime. Currently, the department uses “outdated” paper overtime vouchers to document overtime.
“No evidence of dishonesty” by police employees, but special counsel calls for pension audit
The investigation found no evidence of dishonesty by police employees, according to Nelson’s report.
He did not find evidence of fraudulent timekeeping or any attempt to hide the project from the city.
However, Nelson called for a citywide audit of using overtime and how it could affect an officer’s pension, saying there could be incentive for officers to use overtime construction work to raise their eventual pension amounts.
Independence participates in the Missouri LAGERS pension system. Police employees receive a retirement calculation based on the average of the highest three consecutive years within the last 10 years of employment.
“Anecdotal evidence from the investigation suggests it is standard practice for Independence employees in multiple departments to seek extra overtime during their final three years in order to bolster their LAGERS pensions,” Nelson said. “Economies of scale may insulate the City from isolated pension padding, but if dozens or hundreds of employees are engaging in this practice, contribution rates become greatly inflated.”
Nelson encouraged city leaders to review and establish policies to protect the city from pension padding, especially within the police department, fire department, and Independence Power and Light.
This all comes after KMBC 9 Investigates uncovered multiple angles in this investigation.
Last month, KMBC 9 Investigates obtained new video of the officer at the center of the investigation. The video, from a day in January of this year, shows a snapshot of a police officer working long hours on the jail construction project that took more than a year to complete.
Former Independence city councilwoman Lucy Young was at a press conference Tuesday where Nelson announced his findings. She noted City Manager Zach Walker’s absence from the press conference, and Walker’s responsibility to be held accountable.
“What a coincidence,” she said. “He should have been up at the podium.”
Walker also told KMBC he was not at the press conference Tuesday since he had six pages of policy recommendations to review.
“My time was better spent getting to work on fixing this organization than listening to a presentation I already received last night,” Walker said.
The city of Independence on Tuesday released an unsigned statement about the investigation.
“We would like to thank Dan Nelson and Spencer Fane for conducting a thorough investigation and complete audit of the renovations and overtime costs related to the work at police headquarters. We appreciate the independent evaluation of the situation to help city staff, the Mayor, and Council develop and implement better oversight to ensure this situation never repeats itself.
City staff will be studying the specific policies and procedures that need to be reviewed, and likely changed, as a result of the information from the investigation. City staff intends to have a set of policy recommendations to the Council and Mayor for consideration within the next 60 days. Per city charter, any further review of personnel issues will be evaluated by city staff. It is clear, however, that we must have better systems in place that provide easy checks and balances across all our departments to ensure we do not have excessive overtime and policies are properly followed.”
KMBC 9 Investigates is working to develop more angles on this story.
If you have any tips about this investigation or any others, email [email protected].
