HomeMy WebLinkAboutAGENDA REPORT 2006 0719 CC REG ITEM 10K11-FM 1 10. K .
` '..•r" iNG � >iJ dt T//{R.5'i4 4.�P'\�F! ��i 1,,.
Council Meetinq
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Deborah S. Traffenstedt, Administrative Services Director /City Clerk
DATE: July 12, 2006 (CC Meeting of July 19, 2006)
SUBJECT: Consider Cancellation of Employee Computer Loan Program
BACKGROUND AND DISCUSSION
On January 20, 1999, the City Council approved an amended computer loan program for
City employees (see attachment). Due to the many promotions offered by numerous retail
establishments for sale of computers and related equipment, including attractive financing
terms, staff is recommending discontinuation of a City computer loan program. The
amount of staff time involved in assisting with purchasing and ordering equipment and /or
software and preparing loan paperwork is another reason for discontinuing the program.
There are currently six loans with an outstanding balance of $5,060.27 as of June 30,
2006, that would continue to be paid off by the participating employees, consistent with the
January 1999 terms and conditions.
STAFF RECOMMENDATION
Cancel employee computer loan program.
Attachment: January 20, 1999 staff report
000211
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
ATTACHMENT
ITEM
01k 6k :�iUUI{1?1xk,1,11,IkUKY111
laity cuuncil Nleetiug
ncrlu,N: _"l'Youm ei _.
By: _011-11,
FROM: John E. Nowak, Assistant City Manager G�
DATE: 06 January 1999 (Council Meeting of 01- 20 -99)
SUBJECT: Consider Modifications to the City's Employee
Computer Purchase Loan Program
BACKGROUND: In 1994 the City Council modified a loan
program through which City employees could purchase
computers for their personal use. Employees have requested
the program to be modified to allow upgrades to the
computer be purchased through the loan program as well.
DISCUSSION• In 1994 the City Council modified a loan
program through which city employees could purchase
computers for their personal use. The current maximum loan
amount is $3,000 with a maximum three -year repayment
schedule through automatic payroll deduction. Interest is
charged at the 30 -year Treasury Note rate. The City holds
the equipment purchased as collateral interest until the
loan is repaid. $15,000 was initially appropriated from
the General Fund in January 1994 for the program with an
additional $15,000 appropriated in May 1994. From its
inception 15 employees have received and paid their loans
in full. An additional six employees have loans at this
time with outstanding balances totaling $8,625.28.
The purpose of the loan program was to encourage employees
to purchase computers for their home use which would
increase their skills in using the City's software programs
and thereby their productivity at work. In the past year
the City has changed its internal software program from
WordPerfect and Lotus to Microsoft Office including Word
000212
Modification to Computer Loan Program
Meeting of 20 January 1999
Page 02
and Excel. The new software requires more RAM, speed and
computer capacity to operate properly than the former
software.
Employees have requested that the loan program be expanded
and made available for them to upgrade the computers they
have purchased to handle the new software programs. The
cost for each computer would be less than $500. The City
would benefit from allowing employees to install the new
software at home for it provides additional opportunities
for them to learn the programs and applications for work
projects. Also, a number of employees are taking
additional training for the new software and having the
programs at home gives them an additional opportunity to
practice for their training classes.
The initial $30,000 appropriation would be sufficient to
allow the employees to purchase upgrades and still have
funds available for new computer purchases. The key factor
is that new computers now cost less than the $3,000 limit
initially established (a full system can now be purchased
for around $1,500).
Therefore the proposed modified employee computer purchase
loan program would be as follows:
1. Eligibility: Any full -time regular employee with at
least one (1) year of service with the City. The City
manager may grant less service time if in the interest
of the City.
2. Loan Amount: $2,500 per employee for an initial
purchase. $500 per employee for upgrade hardware.
3. Interest: One - quarter percent (0.25 %) above the most
recent quarterly interest rate paid on City funds by
the Local Agency Investment Fund (LAIF).
4. Maximum Term: 72 bi- weekly payroll installments for
new purchase. 12 bi- weekly payroll installments for
upgrades.
000213
Modification to Computer Loan Program
Meeting of 20 January 1999
Page 03
5. Eligible Purchase Ttema• DOS based computer (desk or
laptop), monitor, keyboard, mouse, printer, modem,
docking station, carry case, speakers, memory
upgrades, processing chips, hard drives, CD drives.
6. Eligible Software: Microsoft Office, MS -DOS. Other
associated business programs as approved by the City.
STAFF RECOI +NDATION• That the City Council approve the
modifications to the employee computer purchase loan
program as described in the staff report.
000214