Oakland councilmember concerned city isn't appropriately addressing overtime pay error

OAKLAND, Calif. (KGO) -- The City of Oakland has found that it was overpaying overtime to some employees, totaling more than $1.5 million. Despite knowing the problem, the city is not going to fix it - just yet.

"When we talk about where (do) our tax dollars go, this an example of wastage in the city," says Oakland City Council member Janani Ramachandran, who is also Chair of the Finance Committee.

ABC7 News first reported in February that a city audit found an error where overtime was being paid at higher rate for some employees in the Department of Public Works between 2018 and 2024.

RELATED: Audit finds Oakland paid $1.6M in excessive overtime pay over 6 years in several departments

"I was shocked to hear that the response to my question, 'Well, have we fixed problem now that it's been identify by the auditor?' And the answer was, 'No.' And we are not going to until we hire an outside consultant to doublecheck the auditor's numbers," said Ramachandran.

Ramachandran isn't suggesting that any malicious activity was involved. And she acknowledges that city auditor office has a shoestring budget and small team. But she is concerned of misspending at a time when the city is facing a $140 million budget deficit.

"We all know that, if this problem exists in our Public Works Department, it is probably there in other departments as well," said Ramachandran.

The city responded to ABC7 News with this statement: "The City Attorney's Office is contracting with the firm Liebert Cassidy Whitmore to help advise the City Administration related to the City Auditor's report. To preserve the attorney-client privilege and the City Administrator's ability to act in the best interest of the City, we are unable to describe the exact advice that is being sought."

MORE: Barbara Lee holds 1st press conference as Oakland mayor-elect after winning tight race

"And now our city administration is doubting what the auditor is saying? And saying, no we need a consultant. And more time and whatever to see it if it's actually true and then fix the problem? That just seemed ridiculous to me!" said Ramachandran.

Union leaders were not available for an interview, but did point out how this money could be used to prevent layoffs that are being proposed in next city budget. Mayor-elect Barbara Lee is calling for an audit of all city contracts in her first 100 days.

"(We are) going to root out corruption, and usher in a new era of ethics and transparency and accountability," says Mayor-elect Lee.

Ramachandran suggests an audit of other departments is likely. Interim Mayor Kevin Jenkins is expected to present Oakland's new budget next week.