HomeMy WebLinkAboutAGENDA REPORT 2010 0421 CC REG ITEM 10D ITEM 10.D.
City Council Wieetino
ACTION
MOORPARK CITY COUNCIL A o.�Y. e h,
AGENDA REPORT
TO: Honorable City Council
FROM: Deborah S. Traffenstedt, Administrative Services Director
DATE: April 13, 2010 (CC Meeting of 4/21/10)
SUBJECT: Consider Cancellation of Program for Employee Resourcefulness
and Creativity (PERC)
BACKGROUND
The City Council established the PERC on August 1, 2001. The intent of the PERC was
to promote employee efforts to reduce operating expenses, increase revenues,
enhance service delivery, and improve safety; and the Program included the opportunity
for employees to submit suggestions and receive monetary awards based on savings or
revenues resulting from their suggestions.
DISCUSSION
Since establishment of the PERC in 2001, there have been no applications submitted
for a PERC award. Employees have demonstrated that the promise of additional
compensation is not the primary motivation for making recommendations for
improvements, because there have been many employee suggestions that have
resulted in improvements to City policies and procedures during the years that the
PERC has been in effect.
Given the current fiscal issues facing the City of Moorpark, eliminating the PERC and
the budget allocation would appear appropriate. The maximum award under the
Program was $10,000 (for an ongoing measurable cost savings or additional revenues,
representing a cash award of 20 percent of the first year's annual net savings or
revenues). The budget allocation for the current fiscal year is actually minimally funded
at $500 (which under the PERC would have paid for a suggestion that improves service
delivery or safety without producing measurable savings or additional revenues, not to
exceed $500).
The merit raise system for City employees will remain in effect, and employees who are
not at the top step in their salary range are able to receive the maximum of a 5 percent
raise for commendable performance.
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Honorable City Council
April 21, 2010, Regular Meeting
Page 2
FISCAL IMPACT
None (no applications for awards have been filed since establishment of the PERC in
2001).
STAFF RECOMMENDATION
Cancel PERC effective April 21, 2010, and direct staff to not budget funds to support
this program in the next fiscal year.
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