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HomeMy WebLinkAbout1998-11-10; City Council; 14933; Employee Computer Purchase Program- fi CITY OF CARLSBAD - A&A BILL 77 0 co 2 \ . . g 2 d Y s AB# jr;%3 m: MTG. //-/o - ‘i8 ADOPTION OF COUNCIL POLICY FOR AN EMPLOYEE -----*.--- -..--..-a- -----am- DEPT. CM GUMPU I tK PUKGHAYt PKUUKAM 1 ClTYMGR= RECOMMENDED ACTION: That the City Council adopt Council Policy Number 60, to establish an Employee Computer Purchase Program. ITEM EXPLANATION: The City of Carlsbad City Council has demonstrated its concern for employee productivity by making a significant commitment in the area of computer technology. In-place technology includes the high availability of computer equipment, networks to help share information, and many types of software. The City will experience increases in employee productivity in direct ratio with the employees’ ability to use these tools. However, productivity does not come from technology alone. People must learn how to use that technology for it to be effective. The City has continuously provided training and other assistance to give employees the required basic knowledge. This training takes time, and money. And, even though training has been a high priority, the full capabilities of the available equipment and software remain, at least in part, untapped. Accessing these capabilities requires that employees have expertise beyond the fundamentals. Formalized training during work hours to obtain this expertise is very expensive, and is often impractical. It would require weeks of training and lost work time with the accompanying cost. Employers have found that many of the people who now have this advanced expertise have acquired it on their own time using their own computers. Therefore, the staff is proposing that the City Council consider a program that will take advantage of this off-site learning opportunity. This program is an employee computer purchase plan that allows the City to provide interest free loans to employees who are willing to update their home computers, and to use these new computers to significantly improve their knowledge of software applications used by the City. Local governments across the state of California have implemented programs similar to the one proposed by staff. Locally the cities of Encinitas, Escondido, Poway, La Mesa and the County of San Diego all have similar programs. Under the proposed Council Policy, the City Manager would be charged with developing an administrative plan for the implementation of the employee computer purchase program. The general concept is to have the City Council approve the establishment of a revolving fund, or pool of money which will be used to fund purchases. As repayments come back to the City, those funds would be loaned out to other employees interested in the program. The funds are never expended - only loans are made. The primary cost to the City is the loss of interest on any outstanding funds, and the administrative costs of running the program. If Council concurs with the staff recommendation, a computer purchase fund would be established, the appropriation described below would be placed in the fund, and the program would begin making loans as quickly as possible. FISCAL IMPACT: Staff is recommending that the Council begin the fund with a balance of $150,000. Assuming that all funds are loaned consistently during any given fiscal year, the fiscal impact on the Ctiy would be the loss of interest revenue on these funds. That cost is estimated to be less than $9,000, at current interest rates The actual reduction in interest should be mitigated somewhat by the following factors, many of which are addressed in the administrative order which will implement the program: l the number of employees is finite - the number of eligible employees will not grow substantially l the amount of the loans are limited - the maximum loan amount in similar programs is typically PAGE 2 OF AGENDA BILL NO. /q 9’33 $3,000 per employee 0 an employee would be allowed only one current loan . employees must pay-off a loan completely before borrowing more money . even if an employee takes advantage of the maximum repayment period, he or she will be unlikely to apply for another loan to buy another computer immediately after this period. The original principal amount will continue to be returned to the city through loan repayments via payroll deduction. As repayments are made, the City, to earn interest on any balances in the fund EXHIBITS,: 1. Council Policy Statement No. 60. .t CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: EMPLOYEE DEVELOPMENT Specific Subject: Employee Computer Purchase Program - EXHIBIT 1 Page 1 of 1 Policy No. 60 Date Issued November 10, 1998 Effective Date Navember 10, 1998 Cancellation Date Supersedes No. Copies to: City Council, City Manager, City Attorney, Department Heads and Division Heads, Employee Bulletin Boards, Press, File BACKGROUND: Wany city and county governments throughout this and other states have developed an interest free computer purchase program for their employees, in order to improve productivity by encouraging employees to purchase and use home computers. The loan program places the primary financial Dbligation on the employee for the purchase price of the computer hardware and software, with ‘Financial assistance from the City in the form of a no-interest loan repaid through automatic payroll deductions. ‘URPOSE: To support City Council employee development goals by establishing a program which will assist employees in purchasing computers for personal use. ‘OLICY: t is the policy of the City Council to encourage the effective use of technology as one of the key ;trategies available in achieving goals of delivering quality services to customers and improving ,roductivity. In order for technology to realize this goal, it is critical that employees be well-trained in :s use. An employee interest-free computer purchase program will contribute to meeting this goal. ‘ROCEDURE: $9 idministration of this policy will be as directed from time to time by the City Manager.