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HomeMy WebLinkAbout03. Consider increasing annual contribution to Employee Activities Organization (EAO) Page 1 of 3 Item 3. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: NOVEMBER 15, 2018 SUBJECT: CONSIDER INCREASING THE ANNUAL CONTRIBUTION TO THE EMPLOYEE ACTIVITIES ORGANIZATION (EAO) FROM $4,000 TO $6,000 PER YEAR SUBMITTED BY: INITIATING DEPARTMENT: SUZETTE L. CRAYTON, EXECUTIVE ADMINISTRATION-FINANCE ASSISTANT REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ANN SASAKI, DEPUTY GENERAL MANAGER Roger S. Bailey General Manager ISSUE Approval from the Board is sought for an increase in the annual contribution from Central San to the EAO from $4,000 to $6,000 going forward. BACKGROUND The EAO is a non-profit organization run by volunteer Central San employees who organize activities for the benefit of Central San employees. On October 20, 2011, the Board agreed to contribute $4,000 per year to the EAO holiday party, the primary activity funded by the EAO. This decision was made because the EAO was no longer going to be able to utilize proceeds collected from Central San's metal recycling. The metal recycling included damaged manhole covers and other metals that were not useable to Central San but had a salvage value. Central San counsel determined that the metal recycling revenue should be going directly to Central San. Counsel further recommended at that time that if Central San wished to make an annual contribution to the EAO to further employee morale and support the holiday November 15, 2018 Regular Board Meeting Agenda Packet- Page 26 of 254 Page 2 of 3 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. The Board agreed at that time to contribute $4,000 annually in place of the metal recycling. The EAO is making a request to increase the contribution to $6,000 per year. Since 2011, the cost to host the holiday event has risen and the EAO would like to continue to provide this luncheon to all employees at no charge. Further, the EAO would also like to look at other venues for the event in order to give the event a unique feel every year, but are unable to branch out to venues that may be a little more expensive. Although the holiday event is well attended, and the EAO has received positive feedback about the holiday event from Central San employees, some employees suggested hosting the event at a different venue. The event has been held at the same venue for four years. Throughout the year, the EAO holds several fundraising events, including potlucks, new member drives, holiday candy sales, coupon discount events, bake sales, ice cream socials, breakfast burrito sales, and a host of other events. Employees have also been very generous in making payroll deductions throughout the years toward EAO activities. However, with retirements of some employees who consistently donated, the EAO has not been able to replace those funds. Even with all of the EAO activities to raise funds for the holiday event, the payroll deductions, and the Central San contribution, the EAO cannot continue to sponsor the event in future years, at no cost to employees and at the same level of service, without additional resources. We would like to continue to offer the event free of charge to any employee who would like to attend. Team events such as the holiday event allow employees to interact in an informal setting and can improve cohesiveness, and special events are also a way to recognize employees and let them know that their work is valued by their employer, both of which can positively impact workplace performance. ALTERNATIVES/CONSIDERATIONS Central San could continue its $4,000 annual contribution. However, it is recommended that Central San increase its contribution to $6,000 per year so the EAO can continue to offer this event to employees free of charge. This event is an opportunity to recognize employees for their contributions to Central San throughout the year. FINANCIAL IMPACTS I n Fiscal Year(FY) 2018-19, $4,000 was budgeted for this event. The additional funds for this fiscal year, $2,000, and the $6,000 total in future years should not have a material effect on Central San's overall operations and maintenance budget. The cost for the holiday party in 2017 was $10,527. COMMITTEE RECOMMENDATION The Administration Committee reviewed this position paper on November 6, 2018 and recommended Board approval. RECOMMENDED BOARD ACTION Authorize the General Manager to provide the EAO an annual contribution of$6,000 beginning FY 2018- 19 to partially defray the cost of the annual EAO holiday party. Strategic Plan Tie-In GOAL ONE: Provide Exceptional Customer Service November 15, 2018 Regular Board Meeting Agenda Packet- Page 27 of 254 Page 3 of 3 Strategy 2- Foster employee engagement and interdepartmental collaboration November 15, 2018 Regular Board Meeting Agenda Packet- Page 28 of 254