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Home My WebLink AboutAGENDA REPORT 2001 0801 CC REG ITEM 11L-7b5.3g ITEM I/. L - CITY OF'+ OORPARX, CALIFORNIA City Cmincil ;Meeting of ACTION:. 11212 no uet_l MOORPARK CITY COUNCIL AGENDA REPORT BY. TO: Honorable City Council FROM: Kim C. Chudoba, Senior Management Analyst % G DATE: July 18, 2001 (CC Meeting of 8/1/01) SUBJECT: CONSIDER ESTABLISHING PROGRAM FOR EMPLOYEE RESOURCEFULNESS AND CREATIVITY BACKGROUND At the suggestion of Mayor Pro Tem Harper, staff has developed an employee incentive program for consideration by City Council. The Program for Employee Resourcefulness and Creativity (PERC) is intended to promote employee efforts to reduce operating expenses, increase revenues, enhance service delivery, and improve safety. PERC seeks innovative ideas by offering employees awards based on savings or revenues resulting from proposals. The attached guidelines explain the suggestion process, eligibility criteria, award calculation, and program management. DISCUSSION All employees are eligible to participate in PERC except the City Manager, Assistant City Manager, Department Heads, PERC Coordinator and Committee Members, and employees that offer suggestions within their regular scope of work. The PERC Committee is comprised of four members appointed by the City Manager: a PERC Coordinator, two department heads, and one other management employee. The Committee analyzes suggestions and makes recommendations regarding implementation, subject to final approval by the City Manager. Honorable City Council July 18, 2001 Page 2 For one -time measurable cost savings or additional revenues, a cash award of 10 percent of the savings or revenues is presented. The minimum cash award is $500, and the maximum cash award is $5,000. For ongoing measurable cost savings or additional revenues, a cash award of 20 percent of the first year's annual net savings or revenues is presented. The minimum cash award is $1,000, and the maximum cash award is $10,000. Suggestions that improve service delivery or safety without producing measurable savings or additional revenues are recognized with a gift certificate not to exceed $500 from a local merchant /restaurant, or cash award, or two days vacation. Cash awards are considered wages subject to state and federal taxes. Such awards are made through the payroll system and included as wages on the employee's W -2 form. If a suggestion results in a patentable idea, the employee is responsible for filing the patent application and fees. The employee maintains ownership of the patent rights, but permits the City to utilize the patented product or idea without cost. The City reserves the right to terminate or modify the program, including award amounts, without prior notice. STAFF RECOMMENDATION Approve Program for Employee Resourcefulness and Creativity and authorize the City Manager to approve and implement Program Guidelines. Attachment 1: Draft Program Guidelines for Employee Resourcefulness and Creativity 0 . 0 21 Fe-'i ATTACHMENT 1 CITY OF MOORPARK EMPLOYEE RESOURCEFULNESS AND CREATIVITY PROGRAM GUIDELINES PURPOSE The Program for Employee Resourcefuln( encourage City employees to find ways to City revenues, enhance service delivery, ar innovative proposals by offering employees revenues that result from the ideas. ss and Creativity (PERC) is designed to reduce City operating expenses, increase i increase employee safety. PERC solicits awards based on the savings or additional The following guidelines explain the suggestion process, eligibility of employees /ideas, calculation of awards, and program administration. SUGGESTION PROCESS Employees are encouraged to develop innovative ideas for evaluation by the PERC Committee. The following steps must be taken to submit the proposal and determine the eligibility and merit of the suggestion: The employee must submit his /her idea to the PERC Coordinator on an official PERC Suggestion Form. The Coordinator will determine the eligibility of the proposal. If the suggestion is not eligible, the Coordinator will inform the employee in writing within 10 days of receiving the submission. The Coordinator shall be appointed by the City Manager. 2. If the Coordinator deems the idea eligible, the Suggestion Form will be forwarded to the department head of the department the suggestion will potentially impact. 3. The department head will review the Suggestion Form and complete a PERC Evaluation Form. The department head must return the Evaluation Form to the Coordinator within 30 days of receiving the idea. 4. Upon receiving the Evaluation Form, the Coordinator will schedule a PERC Committee meeting to discuss the suggestion and make a recommendation on whether to implement the proposal. The Committee must meet within 60 days of the date the employee submitted his /her suggestion. The Coordinator will inform the employee of the Committee's decision. 5. The Suggestion Form and Evaluation Form will be placed in the employee's personnel file. Page 1 of 5 e 190 2 13& ELIGIBILITY The eligibility criteria are outlined below. Employees All employees are eligible to participate in PERC except for: 1. City Manager 2. Assistant City Manager 3. Department Heads 4. PERC Coordinator and Committee Members 5. Employees that make suggestions that are within their normal scope of duties and responsibilities Suggestions All ideas are eligible for consideration except those that: 1. Are similar or identical to successful suggestions offered in the previous two years 2. Advocate more stringent enforcement of existing rules and regulations 3. Increase City fees 4. Adjust salaries or job classifications 5. Compromise the quality of service and /or safety of Moorpark residents or employees 6. Relate to issues outside the jurisdiction of the City (i.e., a suggestion that requires a change in county, state, or federal law or court decisions) 7. Are generally accepted practices, such as replacing incandescent lamps with fluorescent lamps AWARDS Suggestions recommended for implementation will be classified as "tangible" or "intangible." Page 2 of 5 ��' Tangible Tangible suggestions will result in measurable cost savings or additional revenues for the City. The award will depend on whether the suggestion results in one -time savings or revenues, or ongoing savings or revenues. 1. One -time Savings or Revenues — A cash award of 10 percent of the savings or revenues will be presented upon receipt of the actual savings or additional revenues. The minimum cash award is $500, and the maximum cash award is $5,000. 2. Ongoing Savings or Revenues — A cash award of 20 percent of the first year's annual net savings or revenues will be presented. Awards will not be presented until at least one year after implementation of the idea. The minimum cash award is $1,000, and the maximum cash award is $10,000. Intangible Intangible suggestions improve service delivery or safety without producing measurable savings or additional revenues. Based on the PERC Committee's evaluation, intangible ideas may be recognized in one of the following ways: 1. A gift certificate not to exceed $500 from a local merchant or restaurant, or cash award, or two days vacation 2. A certificate of merit signed by the City Manager Other Regulations The following regulations also apply: 1. If a suggestion has both tangible and intangible merits, it will be considered a tangible suggestion eligible for a cash award. 2. If a suggestion results in a high one -time start up cost, the initial cost should not exceed one and one -half years worth of savings. 3. All employees that submit ideas that are implemented will receive a certificate of merit signed by the City Manager. 4. Employees that submit ideas that are not implemented will receive a letter of appreciation for their participation. 5. Awards to joint suggestors will be evenly divided between them. Page 3 of 5 e()G�;:o° .t. 6. Cash awards are considered wages and are subject to state and federal taxes. Such awards will be made through the payroll system and will be included as wages on the employee's W -2 form at the end of the year. PERC COMMITTEE AND COORDINATOR This section outlines the roles and responsibilities of the PERC Committee and Coordinator. Committee The PERC Committee shall consist of four members appointed for two -year terms by the City Manager: 1. PERC Coordinator 2. Two department heads 3. One other management employee All decisions and recommendations of the Committee regarding PERC suggestions are subject to final approval by the City Manager. Committee responsibilities include: 1. Analyze and evaluate PERC suggestions, ensuring each idea is fairly and thoroughly investigated 2. Make recommendations regarding implementation of suggestions 3. Request additional information from department heads or employees if needed Coordinator The PERC Coordinator, who is appointed by the City Manager, is responsible for the following: 1. Receive PERC Suggestion Forms 2. Forward Suggestion Forms to department heads for evaluation 3. Coordinate Committee meetings to discuss suggestions 4. Maintain records of Suggestion Forms and Committee minutes 5. Notify employee of suggestion status Page 4 of 5 CGOK,..' I 6. Forward Committee recommendations to City Manager for final approval 7. Track savings or revenues from implemented suggestions 8. Arrange awards for successfully implemented ideas 9. Market the program to employees 10. Coordinate retrieval of more information if necessary PATENTABLEIDEAS If an employee's suggestion results in a patentable idea, it is the responsibility of the employee to file the patent application and fees. The employee will maintain ownership of the patent rights, but shall permit the City to utilize the patented product or idea without cost. APPEALS If the Committee does not recommend implementation of a suggestion, the employee may appeal the decision within 30 days of the Committee's notification. The employee, on appeal, should submit further information regarding the suggestion to the Coordinator. The Coordinator will schedule a Committee meeting to review the appeal. The decision of the Committee regarding the appeal, with the endorsement of the City Manager, is final. CITY RIGHTS The City of Moorpark retains the following rights: 1. The City's use of any suggestion shall not form the basis of a future claim upon the City by the suggester. 2. The City will make no award for any suggestion that is not deemed eligible by the Committee and City Manager. 3. The City reserves the rights to terminate, amend, or modify the program, including award amounts, without prior notice. 4. The decisions of the Committee, with the endorsement of the City Manager, shall be final as to the eligibility of suggestions, adoption or nonadoption of ideas, the amount of awards, and all other matters concerning suggestions. Page 5 of 5 C.0 () K"`-1 Ok,