13 - Rewarding Ideas ProgramProtecting our community's health and the environment by providing solid waste and sewer collection services.
www.cmsdca.gov
Costa Mesa Sanitary District
….an Independent Special District
Memorandum
T o: Board of Directors
From: Scott Carroll, General Manager
Date: September 26, 2013
Subject: Rewarding Ideas Program
Summary
Last year, the Board of Directors approved Administrative Regulations No. 20.40 to
help encourage employees to generate ideas for organizational improvements and
providing a system for answering and recognizing adopted ideas. Employees are
eligible to receive a monetary reward of up to $1,000 for ideas that generate significant
savings to the organization.
S ta ff Recommendation
That the Board of Directors approve s rewarding the following employees for their
ideas:
1. Anna Sanchez, $850 for saving $4,250.41 on copy machines.
2. Dyana Wick, $264 for enhancing revenues by increasing the penalty fees for
issuing late sewer permits.
Analysis
Anna Sanchez idea restructured HQ/Yard equipment for copy machines that will save
the District over $4,000 annually. Instead of buying a new plotter printer for the Yard at
a cost of $5,104.14, Ms. Sanchez suggested moving the existing copy/printer machin e
from HQ to the Yard to meet their color and plotting needs. In addition, HQ would
receive a new copying/printing machine that is faster and has the ability to fax
documents. The existing fax machine at HQ would be relocated to the Yard to meet
their faxing needs.
According to Administrative Regulations No. 20.40 approved ideas that provides
tangible benefits from either additional revenues or savings in materials, equipment,
overhead or deleted positions, a cash award of 20% of the first years revenues/savings
may be awarded. In no event will the monetary award to any one suggestion exceed
ITEM NO. 13
Board of Directors
September 26 , 2013
Page 2 of 3
$1,000. Ms. Sanchez suggested idea will save the District $4,250.3 1 in which 20% of
this savings is $850, which is the amount recommended for award. Below is ho w staff
calculated this reward amount.
Gross Savings
Yard Plotter Printer $5,104.17
HQ Copier (Joan) 256.00
Yard Copier 6.00
HQ Copier Up Cost 634.00
$6,000.17
Additional Expenses
HQ Copier Down Cost $1,749.86
Net Savings
$6,000.17 - $1,749.86 = $4,250.31
Rewards Idea
$4,250.31 x 20% = $850.06
Dyana Wick works in the front offic e at HQ and has regular contact with plumbers that
are performing private sewer lateral improvements. Sometimes, plumbers will arrive
at HQ to obtain sewer permits after the work was completed, which is a violation of
District Operations Code. To deter this practice, Ms. Wick suggested adopting penalty
fees for issuing late sewer permits.
In the past year, Ms. Wick has issued nearly a dozen lat e sewer permits. While Ms.
Wick’s suggestion is to double the $120 fee for each subsequent occurrence , up to a
maximum of $480, District Counsel believes the administrative citation procedure may
be the best course of action because of individual due proc ess rights. Under the
District’s administrative citation procedure, violators will be cited $250 for the first
offense, $500 for the second offense and $950 for the third and each additional
violation of the permit within one year.
The General Manager and District Counsel are still in discussion on how to use the
administrative citation procedures against sewer permit violators, but Ms. Wick’s idea
is warranted for deterring such behavior among plumbers and it could generate
additional revenue for the District. For those reasons, staff is rec ommending awarding
Ms. Wick $264 .00 for her idea. Below is how staff calculated this reward amount.
First time penalty: $120
Number of first time penalties in the past year: 11
$120 x 11 = $1,320
Rewards Idea
$1,320 x 20% = $264.00
Board of Directors
September 26 , 2013
Page 3 of 3
Strategic Plan Element & Goal
This item complies wi t h the objective and strategy of Strategic Element 5.0,
Administrative Management , which states the following:
5.0 Administrative Management
Objective: To create, maintain and implement policies and procedures to ensure
sound management of the District.
Strategy: We will conduct periodic reviews, refine and implement policies and
procedures, and assure the General Manager has the direction and tools necessary for
successful Di strict operations.
Legal Review
Not applicable
Financial Review
The two reward s total $1,164 . There is sufficient funding available in the Rewarding
Ideas Program budget to approve this award. There is $10,000 budgeted in the FY
2013 -14 Budget under Incentive P ay.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for
the September 26 , 201 3 Board of Directors regular meeting at District Headquarters
and on District’s website.
Alternative Actions
1. Approve a lessor amount to Dis trict employee s Anna Sanchez and Dyana Wick .
2. Do not approve the reward s .
Attachment s A: Ms. Anna Sanchez - Completed Rewarding Ideas Program
Suggestion Form
B: Ms. Dyana Wick - Completed Rewarding Ideas Program
Suggestion Form
Reviewed by:
Stacey Cuevas
Finance Manager