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CITY COUNCIL AGENDA ITEM NO. 6

Meeting Date: May 22, 2007

Subject/Title: Adopt a Resolution amending City Council Administrative Policy No. 10-8, Employee Computer Loan Purchase Program

Prepared by: Liz Ybarra, Accountant

Submitted by: Pamela Ehler, Director of Finance and Information Systems

RECOMMENDATION
Adopt a Resolution amending City Council Administrative Policy No. 10-8, Employee Computer Loan Purchase Program.

PREVIOUS ACTION
On December 14, 1999, Council approved Policy 10-8, Employee Computer Loan Purchase Program.

On September 11, 2001 Council amended Policy No. 10-8, Employee Computer Loan Purchase Program, eliminating the requirement that employees may only borrow once every three years.

BACKGROUND
The Employee Computer Loan Purchase Program was established in an effort to improve the productivity of City employees. The program encourages the purchase and use of home computers by providing an affordable repayment plan through zero percent (0.00%) interest loans which are repaid to the City as automatic payroll deductions.

The use of the program has experienced tremendous growth since it’s inception. When the program was initiated in 1999, the Information Services Division routinely assisted employees with the purchase of computer equipment associated with this program. As the use of the program has increased, the Information System Division can no longer devote resources to assist in the purchase the employee’s computer systems. They will however continue to provide assistance with information regarding the City’s hardware and software configurations. The policy now reflects that change.

In addition, the following changes have also been made to the policy:

 A minimum loan requirement of $500 has been added and the loan can only be increased in $500 increments.
 A termination clause has been added that requires employees to authorize the payoff of the loan at termination.
 The purchase of peripheral products such as certain oversized monitors and projectors in certain instances have been added.
 Section 4.4 Return for Refunds has been added to ensure that if a computer system is returned, the City receives repayment for the loan within 15 days.

These changes will allow the Finance and Information Systems Department to continue to administer and process the loans as efficiently as possible. In order to facilitate your review, changes to the Policy have been displayed in red.

FISCAL IMPACT
This policy amendment has no budget impact. The maximum allowable funding for this program will continue at $45,000.

Attachments:
Resolution
City Council Administrative Policy No. 10-8
Employee Computer Loan Purchase Program

RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AMENDING CITY COUNCIL ADMINISTRATIVE POLICY NO. 10-8, CITY OF BRENTWOOD EMPLOYEE COMPUTER LOAN PURCHASE PROGRAM

WHEREAS, on December 14, 1999, Council enacted a Computer Purchase Program to improve productivity by encouraging employees to purchase and use home computers by providing them with a financial incentive to do so; and

WHEREAS, on September 11, 2001, Council amended Council Policy No. 10-8, Employee Computer Loan Purchase Program, eliminating the requirement that employees may only borrow once every three years; and

WHEREAS, the City Council desires to further amend the policy to:

(1) add a minimum loan requirement of $500 and provide that the loan can only be increased in $500 increments;

(2) add a termination clause that requires employees to authorize the payoff of the loan at termination;

(3) add Section 4.4 Return for Refunds to ensure that if a computer system is returned, the City receives repayment for the loan within 15 days;

(4) add provisions regarding the purchase of peripheral products such as certain oversized monitors and projectors in certain instances; and

(5) make other minor revisions.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby amend City Council Administrative Policy 10-8 updating the City of Brentwood Employee Computer Loan Purchase Program, as shown on the attached revised policy; and authorize the City Manager or her designee to execute all documents, including the Computer Loan Agreement included in the Policy, in furtherance of the program.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 22nd day of May, 2007 by the following vote:

1. PROGRAM PURPOSE AND OVERVIEW
The goal of this program is to improve productivity by encouraging employees to purchase and use home computers by providing them with a financial incentive to do so.

To benefit the City and the employees, the loan program allows an employee to acquire personal computer equipment and software similar to what the City uses. This program details the term and conditions between the City and employee for financial assistance from the City in the form of a no zero percent (0.00%) interest loan repaid through automatic payroll deductions.

2. Goal and Policy Links
The effective use of technology is one of the key strategies available to us in achieving our goals of delivering quality services to our customers and improving productivity. In order for technology to accomplish this, it is critical that employees be well trained in its use.

3. Program Benefits to the City
While the City is committed to an ongoing program of formal training, the skill development will be much faster, and will occur in greater depth, if employees have computers at home with similar software that the City uses. This allows employees (on a voluntary basis) to use these applications more frequently, explore their features in greater detail, and to do so at their own leisure and pace in a comfortable environment. From a City cost perspective, it would be extremely expensive for employees to devote this kind of time to training during work hours. By providing an incentive for employees to have a computer at home with applications similar to one those at work, the City will benefit significantly in making more effective use of information technology resources.

4. PROGRAM FEATURES

4.1 Minimum and Maximum Loan Amount. The City will loan employees 90% of the total purchase amount of the computer hardware and software. up to $3,000 in a three-year period. During that three year period a loan can be increased but not to exceed $3,000. A maximum amount not to exceed $3,000 in a three-year period and a minimum purchase of $500.00 is required. A loan can be increased in $500.00 increments during the three (3) year period, but can not exceed $3,000.

4.2 Priority Lists. The maximum amount of funds available for the computer loan program is $45,000. If a loan request is received and funds are not available in the program, a waiting list will be established. As the outstanding loans are paid, employees on the waiting list will be notified on a first come first serve basis that the funds have become available for the loan program. and they may utilize the loan program. The employee will be advised at that time they have four weeks to purchase their equipment and complete the loan process. If the loan is not completed in the allotted time, the next employee on the list will be notified of the availability of funds. The employee will be advised at that time of available funds and they have 30 days to purchase their equipment and complete the loan process. If the loan is not completed in the allotted time, the next employee on the list will be notified of the available funds and the employee must request to be put back on the waiting list

4.3 Loan repayment. Repayment will be made through equal bi-monthly payroll deductions over a maximum period of 24 twenty-four (24) months. So long as the participant of the program is an employee of the City, bi-monthly payment will be required even if a payroll check is not being generated. Repayment in full will be accepted at any time without penalty to the employee.

4.4 Returns for Refunds. It is the responsibility of the employee to notify the City in the event that the computer system was returned for a refund. The balance of the loan will become due and payable within fifteen (15) days of the refund.

4.5 Interest. No Zero percent (0.00 %) interest will be charged on the loan under
this program.

4.6 Payment upon termination. Any remaining loan balance is due and payable upon termination, and will be deducted from the employee's final check. The employee will be required to authorize the deduction from the final paycheck at the time of termination. Should a loan amount remain unpaid, the employee will be required to pay the City within fifteen (15) days of termination.

4.7 Eligibility. Only full or part time regular employees who have successfully passed their probationary period as new employees, and have no garnishments for credit or tax purposes, or similar liens in place at the time of application are eligible to participate in this program.

4.8 Usage. The predominate use of any computer equipment or software purchased under this program is restricted to participants and their immediate family members. The predominate use of any computer equipment or software purchased under this program is for the employee. Any items so purchased will not be sold or otherwise transferred for the use of others until such time as the City's loan is paid in full.

5. HARDWARE AND SOFTWARE REQUIREMENTS

5.1 Hardware. There are no specific hardware configuration requirements; however, the employee's home computer must at least meet the City’s computer system minimum specifications and be capable of running the City's standard office applications and desktop operating systems. Eligible hardware purchases include new computers, upgrades to existing computers, printers, scanners, and digital cameras. Related taxes, shipping charges, and extended warranty agreements offered at the time of purchase are also included.

Monitors of any type must be purchased with the intent of use with a computer. The monitor can not exceed twenty one (21) inches. Projectors will also be allowed as long as the employee can show that it is related to his/her position and will increase knowledge and skill level.

5.2 Software. Employees must purchase (or show other proof of ownership) the City's standard office applications and desktop operating systems as established by the Information Services Division. Applications at home must be compatible with applications at work. No other software purchases are eligible under this program. All participating employees must comply with all software licensing requirements for their use of any hardware purchased under this program.

5.3 Non eligible purchases. Costs related to installation, training, repairs, telephone lines, on line services, furnishings, or any other initial or ongoing costs are not eligible for funding under this program, and are the sole responsibility of the employee. The City has no responsibility for support and or maintenance for any purchases funded by this program.

6. PURCHASE AND LOAN PROCEDURES

There are two options available to employees in receiving loan funds under this program:

Purchase through the City. With Information Service's approval of the vendor, employees may purchase hardware and software through the City in accordance with City's standard purchasing policies and procedures. Any such requests must be consolidated at one time in a format approved by the Finance/Information Services Department for order placement. These items will be delivered to the employee's home whenever possible. Upon receipt of all ordered items, the final costs will be consolidated into one loan amount.

6.1 Reimbursement of costs Employees may directly purchase items and submit requests for reimbursement. All expenditures must be made within a 30 day period of time, and submitted in one consolidated request for payment. While not a requirement of this program, employees are encouraged to review their proposed purchase with Information Services to ensure that they will be eligible for reimbursement. No funds will be advanced to employees for the purchase of loan items. Employees can purchase the computer system from a retail or online store. To submit a request for reimbursement, employee must provide a store receipt or an online receipt and proof of delivery (packing slip). A packing slip is only required with an on line purchase.

Computer systems must be purchased within a 30 day period of time, and submitted in one (1) consolidated request for payment. While not a requirement of this program, employees are encouraged to review their proposed purchase with the Information Services Division to ensure that they will be eligible for reimbursement. Any questions with regard to the City’s specifications can be discussed with the Chief Information Systems Officer. No funds will be advanced to employee. Employee must provide receipts and sign the Loan Agreement prior to reimbursement.

6.2 Installation and maintenance. Employees are solely responsible for installing, maintaining, and supporting items funded under this program, resolving vendor or delivery problems with the hardware and/or software purchased under this program is the sole responsibility of the employee.

7. LOAN AGREEMENT

Employees will enter into a loan agreement in substantially the same form as that attached to this policy as Exhibit “A” (“Loan Agreement”) that fully sets forth:

7.1 Amount and term of the loan, and the resulting amount of payroll deductions.

7.2 Employee's authorization for the payroll deduction to occur.

7.3 Equipment and software funded under the loan.

7.4 Employee’s understanding and agreement with all the terms of the City’s employee computer loan program.

7.5 Approval of the Loan Agreement by the Director of Finance and Information Systems.

8. INSURANCE

For your own protection, employees should provide adequate insurance coverage to protect their purchase. against damages due to theft, fire, flood and lightning. The City does not assume any liability for damage or theft of items purchased under this program. All agreed upon payroll deductions will continue through final payment even if the items funded from through this program are not available for the employee's use for any reason whatsoever.

9. TAX IMPLICATIONS

Questions regarding tax consequences of participation in this program should be directed to a reputable tax advisor and the City takes no position on this issue.

10. PROGRAM ADMINISTRATION

The Finance and Information Services Department is responsible for administering this program. The Finance and Information Services Department is authorized to make minor administrative changes to the program and Loan Agreement to ensure the efficiencies of the program provided that any such change does not affect the program objectives or key features. which will make it run more efficiently or reflect changes in policies and procedures in other areas of the City's operations, provided that any such changes do not affect program objectives or key features.

EXHIBIT “A”
COMPUTER LOAN AGREEMENT

This Computer Loan Agreement (“Agreement”) is made by and between the City of Brentwood, a general law City duly organized and existing under the laws of the State of California (“City”), and XXXXXXX an individual (“Employee”), (collectively The “Parties”) with reference to the following facts and objectives:

A. The City has made available an Employee Computer Purchase Program (“Program”) which would allow employees to acquire personal computer equipment and software compatible with that used by the City; and

B. Employee is an a full or part time employee of the City who has successfully completed Employee’s probationary period. Employee desires to acquire certain computer hardware and/or software under the Program pursuant to the Computer Loan Application (“Application”) attached hereto and made a part hereof and as stated in the City Council/Administrative Policy No 10-8 (Employee Computer Purchase Program).

NOW, THEREFORE, the parties agree as follows:

1. Loan. The City hereby loans to Employee and Employee hereby borrows from the City X,XXX.XX and XX Cents ($X,XXX.XX) (“Loan”).

2. Use of Proceeds. Employee agrees that the proceeds of the Loan will be used to purchase, or represents reimbursement to Employee for the purchase of, some or all of the specific items itemized on the Application (collectively the “Equipment”). No proceeds shall be used for costs related to installation, training, repairs, telephone lines, on-line services, furnishings or any other initial or ongoing costs associated with the Equipment.

3. Terms of Loan. The Loan shall be repaid in equal semi-monthly payments without interest over a period of Twenty-four (24) months (“Repayment Period”) commencing not less than ten (10) nor more than thirty (30) days after the Loan Date. As used herein, “Loan Date” means the date (a) the City, at Employee’s request, places the order for the Equipment with the City’s approved vendor, or (b) the City delivers a check to Employee following Employee’s submission of a reimbursement request for payment. Requests for reimbursement must be made within thirty (30) days of the expenditure and submitted in one (1) consolidated request for payment with copies of invoices or receipts.
The Loan shall be repaid in equal semi-monthly payments at zero percent (0.00%) interest over a period of XXXXXX (XX) months (“Repayment Period”) commencing not less than ten (10) nor more than thirty (30) days after the Loan Date.
As used herein, “Loan Date” means the date the Computer Loan Agreement was signed. A check will be issued within two (2) weeks of the Agreement date.
Employee may prepay all or part of the outstanding balance of the Loan at any time without penalty. Any prepayments shall be applied to and shall reduce or eliminate future payments in the reverse order of their due date, commencing with the payment which would be last due.

4. Repayment of Loan. Employee hereby authorizes the City to make regular payroll deductions (generally on the fifteenth [15th] and the last day of each month) from Employee’s wages commencing not less than ten (10) nor more than thirty (30) days after the Loan Date and continuing for the Repayment Period. The amount of each payroll deduction is approximately
$XXX.XX.

So long as Employee is an employee of the City, semi-monthly payment will be required even if a payroll check is not being generated. While loan is outstanding, it is also the responsibility of the Employee to notify the City in the event that the computer equipment was returned for any reason. The balance of the loan will become due and payable within fifteen (15) days following any such return.

If Employee terminates his or her employment prior to the repayment of the Loan in full, only the regular deduction (or as much as is still outstanding if less than the regular deduction) will be made to Employee’s final paycheck. Any balance still owed will only be deducted upon the execution of a written agreement signed by Employee at the time of the final paycheck. If Employee, in Employee’s discretion, decides not to sign such an agreement or if an agreement is signed but the final paycheck is insufficient to pay the balance of the Loan, Employee shall pay the balance owed within fifteen (15) days after Employee’s termination. Payment must be received by the City at the address indicated at the end of this Agreement
If Employee terminates his or her employment prior to the repayment of the loan in full, any remaining loan balance is due and payable upon termination, and will be deducted from the employee's final check. Any balance still owed will be deducted upon the execution of a written agreement signed by Employee at the time of the final paycheck

Employee shall pay the balance owed within fifteen (15) days after Employee’s termination if final payroll check is insufficient to pay the balance of the loan. Payment must be received by the City at the address indicated at the end of this Agreement. Should this loan go into default, the City will take all necessary legal means to collect the balance due.

5. Use of Equipment. Employee represents that the Equipment is being acquired primarily for use by the Employee and Employee’s immediate family. Employee agrees not to sell or otherwise transfer any of the Equipment acquired with the Loan prior to the repayment of the Loan.

6. Indemnity. Employee will defend, indemnify and hold harmless City and its officers, agents, employees and volunteers from and against all claims damages, losses and expenses including attorney fees arising out of the Agreement or use of the Equipment, except where caused by the active negligence, sole negligence or willful misconduct of City.

7. Installation and Maintenance. Employee acknowledges and agrees that Employee is solely responsible for installing, maintaining and supporting the Equipment acquired and that the resolution of vendor, delivery or other problems related to the Equipment is the sole responsibility of Employee.

8. Disclaimer of Warranties. Employee acknowledges that the City is not the manufacturer of the Equipment nor the manufacturer’s agent, and Employee represents that Employee has selected the Equipment based upon Employee’s judgment prior to submitting the Application to the City. Employee agrees that the City has made and makes no representations or warranties of any nature, directly or indirectly, expressed or implied, including but not limited to any representation or warranties with respect to suitability, durability, fitness for use of any Equipment.

9. Entire Agreement. This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the Parties.

10. Modification; Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both the Parties. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by both the Parties.

11. Assignment. This Agreement shall be binding on, and shall inure to the benefit of, the Parties to it and their respective heirs, legal representatives, successors and assigns. No Party may assign this Agreement without the written consent of the other Party.

12. Notices. Any notice to the Parties required or permitted under this Agreement shall be given in writing. The notice shall be deemed to have been given at the following times: (a) on the date of service if served personally on the party to whom notice is to be given; or (b) on the second day after mailing if mailed to the Party to whom notice is to be given by first class mail, postage prepaid, addressed to the Party at the Party’s address indicated below.

13. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California, exclusive of its laws regarding the conflict of laws.

14. Costs. Employee agrees to pay the following costs, expenses and attorneys’ fees paid by the City or adjudged by a court: reasonable costs of collection and costs, expenses and attorneys’ fees paid or incurred in connection with the collection or enforcement of this Agreement, whether or not suit is filed.

Dated: XXXXXXXXXXXX

EMPLOYEE: CITY:
______________________________ CITY OF BRENTWOOD, a general law Employee Signature City duly organized and existing under the
laws of the State of California
XXXXXXX

Address: By:

Title: Director of Finance & Information Systems

Address: 150 City Park Way
Brentwood, CA 94513

 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov