HomeMy WebLinkAbout08.a. District Contribution to Employee Activities Organization (EAO)Central Contra Costa Sanitary District
' BOARD OF DIRECTORS g.Q.
POSITION PAPER
Board Meeting Date: October 20, 2011
subject: DISTRICT CONTRIBUTION TO EMPLOYEE ACTIVITIES ORGANIZATION
Submitted By: Initiating Dept. /Div.:
Ann E. Farrell, Director of Engineering Engineering
REVIEWED AND RECOMMENDED FOR BOARD ACTION-
Ann E. Farrell 0—Va_r)?y7j1gravjs Kent Alm
General Manager
ISSUE: Concurrence from the Board is sought for an annual contribution from the
District to the Employee Activities Organization (EAO).
RECOMMENDATION: Authorize the General Manager to make an annual contribution
to the Employee Activities Organization to partially defray the cost of the food for the
annual holiday party. The amount would be $4,000 this year.
FINANCIAL IMPACTS: The amount to be contributed is nominal, on the order of
$4,000 per year, and should not have a material effect on District finances.
ALTERNATIVES /CONSIDERATIONS: An alternative would be for the District not to
contribute to the EAO. This is not recommended. There would be significant good will
engendered if the District were to make a nominal contribution to allow the District
holiday party to continue as an annual event that is free to all District staff.
BACKGROUND: The Employee Activities Organization (EAO) is a non - profit
organization that organizes activities for the benefit of District employees. The primary
activity each year funded by the EAO is the holiday party. The holiday party is free to all
District employees and is one of only two events each year, the other being the summer
student picnic, which bring together all District employees. Survey cards received by
the EAO each year following the party are always positive and appreciative for this
opportunity to gather all District employees together for a celebration.
The EAO sponsors other fund raising events throughout the year including the book
sale, bake sales, See's candy sales for Valentine's day and the holidays, with a
breakfast burrito sale, and spring and fall flower bulb sales incorporated this year as
well as money received from staff Big C participation. The EAO has also funded a
bagel day, ice cream day, and root beer float day at no charge to all employees as a
thank you and morale booster. The EAO has also sponsored prize money in the
amount of up to $100 each for staff events such as a bowling tournament, golf
tournament, bike races, and Halloween costumes. Whether the EAO will be able to
continue this practice is not clear as they continue to deplete their reserve funds.
NAENVRSEC \Position Papers \Farrell\2011 \Final EAO PP 10- 20- 11.doc Page 1 of 2
POSITION PAPER
Board Meeting Date: October 20, 2011
Subject: DISTRICT CONTRIBUTION TO EMPLOYEE ACTIVITIES ORGANIZATION
Historically, the EAO has funded its activities through these fund raising events
including payroll deductions from generous employees. In addition, for many years the
District had generously donated the funds received from District metal recycling to the
EAO. The metal recycling includes damaged manhole covers and other metals that are
not useable but have a salvage value. The metal recycling had been generating about
$4000 per year for EAO functions. Two years ago, District counsel determined that the
metal recycling revenue should be going to the District. Counsel further recommended
that if the District wished to make an annual contribution to the EAO to further employee
morale and support the District wide holiday party, this would be entirely legal and
appropriate. However, it should be done in a transparent fashion and not as a diversion
of revenue from another unrelated activity.
This matter was discussed with the Budget and Finance Committee approximately one
year ago but no recommendation was developed. The matter was not brought to the
full Board and the EAO operated at a deficit last year, pulling money from EAO reserves
to fully fund the holiday party. As we approach this year's holiday party, the EAO has
again approached the District for a contribution. If such a contribution is not approved,
the EAO will need to re- examine the holiday party and consider charging for
attendance. The EAO is concerned that this will result in a significant decrease in
attendance which will detract from employee morale and the positive feelings that
accrue from the holiday party each year.
Therefore, staff recommends that the District commit to a contribution of $4,000 this
year, and a similar contribution each year going forward, at the General Manager's
discretion, to subsidize the food for the EAO holiday party.
RECOMMENDED BOARD ACTION: Authorize the General Manager to make an
annual contribution to the Employee Activities Organization to partially defray the cost of
the food for the annual holiday party. The amount would be $4,000 this year.
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