HomeMy WebLinkAbout03. Consider Increasing the Annual Contribution to the Employee Activities Organization (EAO) Holiday Lunch From $6,000 to $8,000 Per Year Page 1 of 2
Item 3.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: APRIL 25, 2024
SUBJECT: CONSIDER INCREASING THE ANNUAL CONTRIBUTION TO THE
EMPLOYEE ACTIVITIES ORGANIZATION (EAO) HOLIDAY LUNCH FROM
$6,000 TO $8,000 PER YEAR
SUBMITTED BY: INITIATING DEPARTMENT:
SUZETTE CRAYTON, EXECUTIVE ASSISTANT GENERAL MANAGER
TO THE GENERAL MANAGER
VELISA PARKS, ADMINISTRATIVE SERVICES
SUPERVISOR
Roger S. Bailey
General Manager
ISSUE
Approval is sought from the Board for an increase in the annual contribution from Central San to the EAO
Holiday Lunch from the amount of $6,000 to $8,000 going forward.
BACKGROUND
The EAO is a nonprofit organization run by Central San employees who volunteer their time to organize
activities and events for Central San employees. To have free events for employees, the EAO must have
fundraising events. Throughout the year, the EAO holds several fundraising events, including candy and
bake sales, silent auctions, and potlucks. The EAO also raises funds by asking employees to participate
in a payroll deduction program. Funds raised from events and the payroll deduction programs are put
towards the annual holiday event, which is free to all employees, including temporary staff, and the EAO's
largest event of the year.
I n previous years, Central San would contribute to the EAO holiday event by utilizing proceeds collected
from Central San's metal recycling, which were metals from damaged maintenance access covers
(MACs), and other metals that were no longer usable to Central San but had salvage value. I n 2011, legal
counsel advised that the funds from metal recycling should be going directly to Central San instead of the
EAO holiday event. Counsel further recommended that if Central San wished to make an annual
contribution to the EAO holiday event, it would be legal and appropriate. On October 20, 2011, the Board
approved a $4,000 contribution towards the EAO holiday event from Central San. Then, on November 15,
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2018, the Board approved an increase of $2,000 towards the EAO holiday event contribution, for a total of
$6,000 moving forward.
The EAO is requesting to increase the yearly Central San contribution from $6,000 to $8,000. Since
2018, the cost to host the holiday event has increased, and the EAO would like to continue to provide this
event to all employees at no charge. Further, the EAO would like to look at hosting the event at other
locations to give the event a unique feel during the holidays. With all the fundraising activities and
employee payroll deductions, without an increase, the EAO cannot continue to sponsor the holiday event
in future years at a high level. Changes would have to be made which could include charging employees.
Team events such as the EAO holiday event allow employees to interact in an informal setting and can
improve cohesiveness. Special events like the EAO holiday event is a way to recognize staff and let them
know that their work is valued by Central San and their peers, both of which can positively impact workplace
morale performance.
ALTERNATIVES/CONSIDERATIONS
Central San could continue its $6,000 annual contribution. However, it is recommended that Central San
increase its contribution to $8,000 per year so the EAO can continue to offer this event to employees free
of charge and improve this event. This event is an opportunity to recognize employees for their
contributions to Central San throughout the year. Moreover, the EAO can continue to run the event on
behalf of the District.
FINANCIAL IMPACTS
In Fiscal Year(FY) 2023-24, $6,000 was budgeted for this event. The additional funds for this fiscal year,
$2,000, and the $8,000 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 2023 was $14,914.50 for which
$9,817.50 was expensed for food, not including dessert or beverage. The current donation amount of
$6,000 is included in the General Manager's budget each year, and if this request is approved, $8,000
would be budgeted every year.
This requested increase amount is in line with the inflation of food and beverage costs in the Bay Area.
COMMITTEE RECOMMENDATION
The Administration Committee reviewed this item at its April 2, 2024 meeting and recommended Board
approval.
RECOMMENDED BOARD ACTION
Consider Increasing the Annual Contribution to the Employee Activities Organization (EAO) Holiday Lunch
From $6,000 to $8,000 Per Year.
Strategic Plan re-In
GOAL THREE: Workforce Diversity and Development
Strategy 4- Foster a culture of diversity, equity, and inclusion
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