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HomeMy WebLinkAbout06/04/1991, C-5 - EMPLOYEE SUGGESTION AWARD PROGRAM MEETING DATE: 1111111111111110111lcity of San WIS OBISp0 6/04/91 COUNCIL AGENDA REPORT UM 1ll11►1IIIII121" ll city Of San La>IS OBISp0 1WIN== COUNCIL AGENDA REPORT Employee Suggestion Award Program Page 2 FISCAL IMPACT: The fiscal impact, if any, of this program cannot be determined at this time. Without knowing the potential savings that will be generated by the approved suggestions, staff is unable to project costs. It should be noted that awards are given for eWmated savings and disbursed prior to the realization of the savings. Therefore, even though the award program should result in significant savings to the City in the long run, there may be some short term costs associated with the cash awards that will be incurred prior to the actual savings. Any such costs can be funded through Ventures and Contingencies. ALTERNATIVES: 1. Fund awards only after the savings resulting from the suggestion have been realized. The Committee does not recommend this alternative because a significant period of time would pass between approval of the suggestion and its implementation. This was seen as a "demotivator" and would discourage employees from participation. 2. Reduce the amounts of the cash awards not to exceed $1,000. The Committee supports awarding suggestions at the higher level not to exceed $2,500 to provide a significant incentive to employees to come up with substantial savings ideas. A $2500 cash award means a suggestion resulted in a savings of over $25,000. Again, the cash awards are designed to encourage a high level of participation. ATTACHMENTS: Exhibit 1: Resolution Establishing an Employee Suggestion Award Program Attachment A: Employee Suggestion Award Program RESOLUTION NO. (1991 Series) RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING AN EMPLOYEE SUGGESTION AWARD PROGRAM WHEREAS, the City Council desires to recognize employees who make suggestions which contribute to more efficient and effective City operations, and WHEREAS, an Employee Suggestion Award Policy is designed to encourage employees to take and active and integral part in improving City operations, and WHEREAS, an Employee Suggestion Award Program defines a process for recognizing an rewarding such employees, and WHEREAS, the employees of the City of San Luis Obispo have reviewed and endorsed an Employee Suggestion Program and are committed to participating, and WHEREAS, the success of such a program can best be measured by the level of savings realized which shall be analyzed through a comprehensive review of the program by the City Council. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of San Luis Obispo does hereby establish the Employee Suggestion Award Program to become effective July 1, 1991 and will comprehensively review the program in June of 1993. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: Resolution No. (1991 Series) Page 2 the foregoing resolution was adopted this day of 1991. Resolution No. (1991 Series) Mayor Ron Dunin ATTEST: Pam Voges, City Clerk APPROVED: Admini trative Officer i Orr-,&' EMPLOYEE SUGGESTION AWARD PROGRAM POLI It is the policy of the City of San Luis Obispo to recognize employees who make noteworthy suggestions which contribute to more efficient and effective City operations. Employees whose suggestions have been reviewed by the Suggestion Review Committee and approved by the City Administrative Officer will be appropriately recognized as provided for in this policy statement. The Employee Suggestion Award Program, as described in the following outline, is designed to encourage employees to take an active and integral part in improving City operations. The program shall become effective July 1, 1991 and be comprehensively reviewed by the City Council by June 30, 1993. PROGRAM PROCEDURES I. Eli i ilAny employee, whether regular, part-time, temporary, or under contract, is eligible to submit suggestions for consideration. The Management Team is ineligible. II. Eligible Succestions: Any suggestion which accomplishes one or more of the following objectives is eligible for consideration: a. The saving of time, money, labor, materials, or supplies. b. An improvement in the quality of a specific public service. C. An improvement in methods and procedures which results in increased efficiency. d. The elimination of unnecessary and costly procedures which results in time, labor, or material savings. III. Ineligible Suggestions: Some suggestions are not appropriate for review by the Suggestion Review Committee and are not eligible for awards. Examples of such ineligible suggestions are: 1. Suggestions dealing with "housekeeping" matters such as routine repair 1 and maintenance. 2. Suggestions that point out problems without offering -solutions. 3. Proposals in the nature of grievances, salary adjustments or matters within the scope of employee/employer relations. 4. Proposals for minor improvements in working conditions that the employee or immediate supervisor can correct through normal or customary action. IV. Suggestion Review Committee: The Suggestion Review Committee shall consist of one representative from each City department, and the Program Coordinator. All appointments to the Committee, including that of the Program Coordinator, shall be made by the City Administrative Officer, and shall be for a term of two years. The Committee shall be representative of all levels of employees in the organization. The Committee will meet as necessary to act as a screening and review body for all properly submitted suggestions. The Committee may solicit advice or technical assistance as needed. The functions of the Committee shall be as follows: a. To review and assess all properly-submitted suggestions. b. To receive input and advice from all departments affected by a given suggestion. C. To determine if a suggestion should be or has already been adopted. d. To review and assess possible and actual cost savings. V. Program Coordinator: The Program Coordinator, appointed by the City Administrative Officer, shall administer the program and all of its rules and regulations. Specific responsibilities of the Coordinator include: a. To receive, acknowledge, and process suggestions. b. To assist the Suggestion Review Committee in obtaining needed information. C. To maintain all program files and records. 2 d. To record actions and decisions which are made by the Suggestion Review Committee. e. To notify employees of the Committee's recommendations. f. To prepare all necessary Committee communications to the CAO, the City Council, and City employees. VI. Procedure for Submitting Suggestions: Suggestion proposals must contain the following essential information: a. A brief description of the present method, operation, or problem. b. What exactly the suggestion aims to accomplish. C. How the suggestion will affect City operations. d. Who or what department is affected, and who will gain or benefit from the suggestion's implementation. e. How the suggestion could be implemented, including descriptive materials, drawings, and/or photographs. f. The estimated cost of implementing the suggestion, and the probable first year savings to the City. The employee's signature, address and telephone number should be included. All .suooestions remain confidential until a determination-is made by the Committee. Suggestions may be submitted jointly by more than one employee. The signatures of all relevant employees must be included in the proposal. Employees should use their own materials, resources, and time to the greatest extent possible when preparing suggestions. Ail suggestions should be submitted on a Suggestion Award Submittal Form to: Program Coordinator Employee Suggestion Award Program City of San Luis Obispo P.O. Box 8100 San Luis Obispo, California 93403 3 VII: Analysis and Awards: The suggestion will be forwarded to the affected department and every effort will be made to maintain confidentiality. The department will provide comments on the suggestion within 30 days which will be reviewed by the Suggestion Review Committee at the next regularly scheduled meeting. The employee will be noted of the committee meeting, date and time. The Suggestion Review Committee shall determine the merit of the suggestion and, if there is a net savings to the City, the Committee shall recommend an appropriate award to the CAO who has final approval. All adopted suggestions will receive awards. The awards will be presented by the City Council at a regular Council Meeting. a. Cash awards will be made for suggestions which result in a tangible one- time savings of $500.00 or more per year. The award shall consist of 10% of the first year's estimated net savings, with a maximum award of $2,500. All cash awards are subject to state and federal income tax deductions. A certificate of commendation shall also be presented, and placed in the employee's personnel file. The CAO can approve awards that exceed the $2,500 limit where an approved suggestion results in extraordinary cost savings to the City. b. A cash award of $25 and a certificate of commendation will be given to an employee, and a copy placed in his/her personnel file, for suggestions which result in City savings of $500 or less. C. An employee may specify an alternative award such as additional time off subject to CAO approval. 4 C-s � 4UGGESTION AWARD SUBMITTAL .-ORM Please complete and return to: Program Coordinator Employee Suggestion Award Program City of San Luis Obispo P.O. Box 8100 Sen Luis Obispo, CA 93403 EXISTING METHOD OR CONDITION: SUGGESTION: AFFECTED DEPARTMENTS AND/OR INDIVIDUALS: ADVANTAGES OF SUGGESTION: IMPLEMENTATION PROCEDURE ESTIMATED START-UP COSTS: ESTIMATED COST SAVINGS - INITIAL YEAR: PER YEAR THEREAFTER: AC=h&Mdond papa It naaeaeery and Induda daaorlptbn of nutwWa,draw6pa and or fhotoWaphL NAME: DEPARTMENT: TELEPHONE: JOB TITLE.- The ITLE:The City of San Luis Obispo is hereby granted full rights to use this suggestion. Employee.Signature Date q CITY OF SAN LUIS OBISPO EMPLOYEE SUGGESTION AWARD PROGRAM GUIDELINES Suggestions which accomplish any of the following are eligible: 1. The saving of money, time, labor, material, or supplies. 2. Improvement in the quality of a specific public service. 3. An improvement in methods and procedures which results in increased efficiency. 4. The elimination of unnecessary and costly procedures which results in time, labor or material savings. Types of suggestions that are ineligible: 1. Suggestions dealing with "housekeeping" matters such as routine repair and maintenance, 2. Suggestions that point out problems without offering solutions. 3. Proposals in the nature of grievances, salary adjustments or matters within the scope of employee/employer relations. 4. Proposals for minor improvements in working conditions that the employee or immediate supervisor can correct through normal or customary action. PLEASE NOTE: Your suggestion will be .forwarded to the affected department and every effort will be made to maintain confidentiality, The department will provide comments on your suggestion within 30 days which will be reviewed by the Suggestion Review Committee at their next regularly scheduled meeting. You will be notified of the committee meeting, date and time. Thank you for thinking creatively to develop ideas that result in tangible benefits to the City, cut costs, improve service, increase efficiency and eliminate safety and health hazards. RETURN TO: CITY OF SAN LUIS OBISPO EMPLOYEE SUGGESTION AWARD PROGRAM ATTENTION: PROGRAM COORDINATOR P.O. BOX 8100 SAN LUIS OBISPO, CA 93403-8100 CONFIDENTIAL