CITY COUNCIL AGENDA ITEM
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
Adopt a Resolution amending City Council Administrative Policy No. 10-8,
Employee Computer Loan Purchase Program.
On December 14, 1999, Council approved Policy 10-8, Employee Computer Loan
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.
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
This policy amendment has no budget impact. The maximum allowable funding
for this program will continue at $45,000.
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
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
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
6. PURCHASE AND LOAN PROCEDURES
There are two options available to employees in receiving loan funds under
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
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
7.1 Amount and term of the loan, and the resulting amount of payroll
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
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
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
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.
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
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
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
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
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.
______________________________ CITY OF BRENTWOOD, a general law Employee
Signature City duly organized and existing under the
laws of the State of California
Title: Director of Finance & Information Systems
Address: 150 City Park Way
Brentwood, CA 94513