RPVCCA_CC_SR_2011_11_15_03_Employee_Incentive_Program_Results_FY10-11CITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCI~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION~
TECHNOLOGY
NOVEMBER 15,2011
EMPLOYEE INCENTIVE PROGRAM R.~EUUIL TS FOR FY10-11
CAROLYN LEHR,CITY MANAGER elY-
Kathryn Downs,Deputy Director of Finance &Information 1/11
Technology I1AJ
RECOMMENDATION
1.Receive and file the Analysis of Accepted Suggestions prepared by attorney Mark
Meyerhoff of Liebert Cassidy Whitmore dated October 20,2011.
2.Authorize the City Manager to distribute,at her discretion,employee incentive
payments from the FY10-11 merit program,as a result of employees identifying a total
of $553,729 of new revenue and cost savings.
DISCUSSION
During the May 22,2010 Budget Workshop,Council Member Misetich introduced the idea
to implement a Performance-Based Employee Compensation Plan (the "Plan")for FY1 0-
11.Upon completing its discussion,the City Council directed Staff to develop a framework
of the Plan for FY10-11.
On June 15,2010,the City Council approved the framework for the Plan for FY10-11,
which set forth a process and standards to compensate employees based on the
achievement of goals set by the City Council.The City Council set a goal of $150,000 of
new revenue or cost savings for employees to earn an incentive pool of $81,100.As an
added incentive,the City Council agreed to add $50,000 to the incentive pool if new
revenue and cost savings identified by employees reached $250,000.
As this'was a new initiative that had not yet been vetted,Management Staff was careful to
develop detailed parameters and instructions for employees.A standardized form was
developed to facilitate employee submissions.Management Staff was able to roll-out the
Employee Incentive Program (the "Program")to employees on February 7,2011.To
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EMPLOYEE INCENTIVE PROGRAM RESULTS FOR FYi 0-11
November 15,2011
Page 2 of 3
facilitate the reporting of results prior to the end of the fiscal year and timely payments to
employees,the Program year was set to run from May 1st to April 30th
.Employees
submitted hundreds of suggestions for service enhancements,new revenue,and cost
savings.
To help validate the overwhelming number of employee submissions,the City Manager
established an internal Goal Achievement Committee comprised of the Deputy City
Manager,the Human Resources Manager,and 3 additional non-management employees
appointed by the City Manager from 3 departments.The Committee was tasked to
determine if employee suggestions met Program objectives.The Review Committee
recommended 29 service enhancements and 17 new revenue and cost savings ideas
totaling more than $600,000.A Spotlight on Achievements was presented to the City
Council as part of the Mayor's Announcements on May 3,2011.Staff highlighted a
number of the ideas submitted by employees.
The City Council directed Staff to hire an independent third party to review the program and
the cost savings and new revenue figures.As a first step,the employee submissions were
forwarded to the Deputy Director of Finance &Information Technology,a Certified Public
Accountant,to validate the suggestions including calculations relating to any savings or
revenue.The Deputy Director validated 25 service enhancements and 16 new revenue
and cost savings ideas totaling $553,729 (see attached Schedule of FY10-11 Employee
Incentive Program Results).The validated employee submissions include:
~Twenty-five (25)Service Enhancements;
~One-time new revenue of $23,500;
~Ongoing new revenue of $58,000;
~One-time cost savings of $314,143;and
~Ongoing cost savings of $158,086.
Staff inquired with several consultants (independent auditors,law firms,and other
consultants)about conducting a third-party review.Consulting fees for a thorough "audit"
were estimated to be in excess of $10,000.Staff turned to the law firm of Liebert Cassidy
Whitmore for an analysis of Program submissions.Liebert Cassidy Whitmore is a
recognized leader in the field of public sector employment law,compensation,and
benefits.The review included documents such as staff reports to City Council,budget
resolutions,vendor invoices,and other corroborating evidence to demonstrate program
results for the validated employee submissions.The review also included two meetings
with Staff to discuss documents provided and ask questions.The results of the
independent analysis are summarized in the attached report from partner Mark Meyerhoff,
a Rancho Palos Verdes resident.Based on Mr.Meyerhoff's report,Staff recommends the
City Council approve distribution of incentive payments to employees at the City Manager's
discretion.
FISCAL IMPACT
The FY10-11 budget allocation for incentive payments was carried forward from FY10-11
to FY11-12 with City Council approval on September 20,2011.Due to staffing vacancies
and the resulting employee benefit savings,Staff expects that the FY11-12 Employee
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EMPLOYEE INCENTIVE PROGRAM RESULTS FOR FY10-11
November 15,2011
Page 3 of 3
Benefits program budget will be able absorb the additional $50,000 allocation for reaching
the higher goal.Therefore,no budget adjustment is requested.The FY11-12 budget is
sufficient to distribute FY10-11 incentive payments up to $131,100.
ATTACHMENTS
Schedule of FY1 0-11 Employee Incentive Program Results
Analysis of Accepted Suggestions from attorney Mark Meyerhoff of Liebert Cassidy
Whitmore dated October 20,2011
3-3
Schedule of FY10-11 Employee Incentive Program Results
NR=New Revenue,CS=Cost Savings,SE=Service Enhancements
New patrol car purchased with ALPR (Automatic License Plate
Recognition)with use of restricted CLEEP funds:Allowed the City to buy
the latest equipment for the Lomita Sheriff's at a significant savings.
Intentionally waited six months to obtain best pricing and equipment for the
1 vehicle.CS 4,068 One-Time
Re-bid solid waste hauler for Service Area No.1 reducing rates for
2 residents.SE -Ongoing
Re-bid ancillary employee insurances and contracted with different carriers
for Employee Medical Insurance Renewal.Secured 2-3 rate guarantees.
3 Full year of savings estimated at $22,272.CS 11,136 Ongoing
Eliminated use of temporary employees in the Community Development
4 Department for FY10-11 only.CS 2,000 One-Time
Annual Cost-based fee increase:Finance &IT staff worked with the City
Attorney tQ develop a legally defensible method to increase cost-based
5 fees by the same percentage increase as employee wages.NR 18,000 Ongoing
Withdrawal from Municipal Area Express (MAX)Due to concerns about a
downward trend of transit revenues and the necessity of using General
Fund money in the future for MAX.Council approved withdrawing effective
June 30,2011.The savings is related to the 4th quarter payment for FY10-
6 11.CS 13,126 One-Time
Paid off the pension side-fund liability using excess General Fund Reserve.
With cash reserves earning historic interest lows of less than 1%and the
City's $1.5 million employee pension side-fund liability accruing interest at
7.75%,paying the liability was financially advantageous now and for the
7 foreseeable future.CS 146,950 Ongoing
CalPERS Pre-Payment for FY10-11:The City received a 3.66%discount
on its estimated employer contribution for FY10-11 by requesting a pre-
payment calculation from CaIPERS,and paying the lump sum by July 1,
82010.CS 17,546 One-Time
Business License Gross Receipts:Require business to attach
documentation sUbstantiating their "gross receipts"when they pay the
9 business license tax.NR 23,500 One-Time
Negotiated with contractor to have the City Hall parking and access road
10 resurfaced at no cost in exchange for providing staging area at City yard.CS 4,000 One-Time
During FY10-11 the Public Works Department completed the residential
resurfacing project.Twenty-six tons of left-over aggregate were used to
11 complete the pVle overflow lot at no cost.CS 2,168 One-Time
Ask residential haulers to provide a fixed annual recycling
12 revenue/recycling rebate.Previous revenues were inconsistent.NR 40,000 Ongoing
Coordination of 25th Street mud/debris cleanup with local agencies -
Allowed the City of Los Angeles to temporarily deposit debris at the
Abalone Cove parking lot for later removal.This saved money for City of
Los Angeles and engendered good will.It also saved the City the cost of
13 removing the debris.CS 5,000 One-Time
San Ramon Canyon Drainage Project Banners -The banners were created
by a graphic designer at no cost (as a donation to the City),and were used
in meetings in Washington DC and subsequent meetings with
14 officials/agencies.CS 960 One-Time
Page 1 of 3
3-4
,•.",':",,:','''',1
Schedule of FY10-11 Employee Incentive Program Results
:Em~MP;;,,,,;,rll<'._,,'.:;!d]®I[,JJlvsIW1tW1!tr!illilJ§IK
Paintbrush Canyon Detention Basins Cleaning -Used a City maintenance
contractor at $110/hr compared to the market rate of $157/hr (savings of
$5,225).Inspection of work performed in-house for additional savings of
$8,000.Removed soil used to address erosion at Burma Road eliminating
the need for additional hauling to a landfill.Soil hauling savings of $22,800
(estimate to haul and dump $32,400,less actual city cost of $9,600 to rent
15 truck).CS 36,025 One-Time
Palos Verdes Drive South (PVDS)Roadside Stabilization -Negotiated with
the Portuguese Bend Club contractor to use soil to install buttress along
PVDS.This eliminated need to purchase 40,000 cubic yards of soil and
16 minimized hauling costs.Inspection performed in-house.CS 218,000 One-Time
Purchased Proposition A money from Rolling Hills for 75 cents on the
dollar.The purchased restricted monies replaced the City's FY10-11
17 General Fynd contribution to the Transit program.CS 11 ,250 One-Time
:iii:i~iitB,llr.AB'_illY~Jl.&f.fflfl"~JJ]i~fiR~~J~!~]
Changes to view guidelines ensures that cost of hiring consulting biologists
for bird nest activity determination is borne by view applicants,not the City
(and therefore,the public at large).SE
Re-organized the REACH program to reduce costs consistent with City
Council direction.Increased use of part-time staff,restructured fees for
resident &non-resident,and increased fund raising efforts.SE
Update the City's solicitation signage to include to bilingual signage and
new forms for residents to send to solicitors to help prevent unwelcome
solicitations.SE
Election materials provided in multiple languages.Ensured that all City
residents received correct and accurate election materials.SE
Retention and Destruction Schedules and Biennial Clean-Up Days -the
City Clerk has increased the frequency of updates from every two years to
annually.Biennial cleanup days creates opportunities for staff to properly
dispose of records and free up storage space,which helps protect the City
against litigation.SE
Upon request by Staff,the City Council initiated an amendment to CUP #68
for Lunada Pt.removing the Planning Commission from reviewing certain
landscape plan requests,thereby saving applicanUhomeowner costs and
City processing costs.SE
Airspace Issues -Staff continues to monitor significant airspace issues.
Staff efforts have positively impacted City residents and helped mitigate
potentially negative outcomes.SE
Voluntary and prominent disclosure of staff and elected officials salaries
and benefits,which improves public confidence and access.SE
Information available on the City's web site about construction of new cell
towers,which improves public information.SE
Traffic calming measure installed by Staff to address safety concerns along
Palos Verdes Drive East.Staff received a letter of appreciation received
from a resident.SE
New Recreation Event -Pitch Hit and Run SE
Page 2 of3
3-5
Schedule of FY10·11 Employee Incentive Program Results
:J~~"',"
Developed online Recreation Activity Guide to increase awareness and
participation in events,programs,classes as well as use of park sites.SE
Youth Career Workshop -New program for youth ages 11-14 teaching
them about career opportunities,resume writing,and team building skills.
Mock job interview to be videotaped by RPVTV to improve their interview
skills.SE
New Recreation Event -Halloween Spooktacular SE
Paddle Tennis Tournaments -Partner with the U.S.Paddle Tennis
Association and South End Racquet Club to hold paddle tennis
~urname~s.SE
Night Hikes in the Palos Verdes Nature Preserve -Cooperative venture
with City contracted park rangers to offer recreational/educational hikes.
Established policies for three types of night-time Preserve use:1)Park
Ranger-led private hikes;2)Park Ranger-led public hikes;and 3)
Organization-led hikes.SE
Identify and partner with local organizations to offer additional recreation
opportunities (YMCA,Peninsula Seniors,and Los Verdes Golf Course).SE
New Recreation Event ,.,Eggstravaganza SE
Junior Docent Program -Incorporates local high school students into the
Docent Program.Students attend training and make a 36-hour
commitment.SE
Junior Ranger Program -New nature program overseen by the City-
contracted park rangers designed for youth 7-12 years old.SE
New Recreation Event -Night at the Museum at Point Vicente Interpretive
Center SE
Free co-sponsored outdoor movie event at Upper Point Vicente with
Outdoor Cinema and a variety of gourmet food trucks.SE
Hesse/Ryan Park athletic field improvements -Revised section of the
Capital Improvement Plan to improve the existing fields at Hesse Park and
Ryan Park.The decision was made to improve the existing field at Hesse
Park to make it usable for little league,softball and tee-ball while leaving
the grass section available for soccer and lacrosse.SE
Established a Palos Verdes Nature Preserve Web Page to provide online
information to visitors.SE
Page 3 of3
3-6
__LIEBERi'CASSIDY WHITMORE
6033 WEsTCBNTURYBOULEVARD,5"'FLOOR
Los ANGELES,CAUPORNIA 90045
T:(310)981·201lO F:(310)337-0837
October 20,2011
VIA E-MAIL ERICM@RPV.COM
VIA FIRST CLASS U.S.MAIL
Eric Mausser
Human Resources Director
City ofRancho Palos Verdes
30940 HaWthorne Boulevard
Rancho Palos Verdes,California 90275
Re:Analysis ofAccepted Suggestions
Client-Matter:RA025-004
Dear Mr.Mausser:
MMEYBRHOFF@LCWLEGAL.COM
(310)981-2026
The City of Rancho Palos Verdes (City)has implemented an Employee Incentive
Program (program)that seeks to encourage employees to submit to the City suggestions to save
costs,raise revenues,or improve the efficiency of City operations.Employees who submit
suggestions that meet the criteria set forth in the Program are eligible to receive monetary
compensation from the City.
During the City's 2010-2011 fiscal year,the City has preliminarily accepted seventeen
(17)suggestions as satisfying the criteria set forth in the Program.The City has asked this finn
to independently assess whether the information and/or data supporting these seventeen
suggestions meet the Program's criteria.
In performing this assessment,the City provided this firm with documentation and/or
information relating to either the revenue generation or cost savings associated with each
suggestion.In making this assessment,this firm reviewed the provided documentation and/or
information for the purpose of verifying that the supporting documentation and/or information
exists and to determine if the documentation and/or infonnation contains any obvious defects,
cause for suspicion or illegalities.The scope ofthe firm's review was not a fmancial audit,nor
should it be construed as an audit in conformance with generally accepted auditing standards.
This finn accepted the City's determinations and estimates of savings or increased revenues as
presented to it without further calculation,inquiry or analysis.
Review of Suggestion #1
The City received a suggestion from Deputy City Manager Carolynn Petru for a one-time
purchase of a new patrol car equipped with Automatic License Plate Recognition technology for
the Lomita Sheriffs Station.The purchase was made by using grant funding.The City
534414.3 RA025-004 Los Angeles 1San Francisco I Fresno I San Diego
www.lcwlegal.com 3-7
Eric Mausser
October 20,2011
Page 2
determined the suggestion allowed the City to realize one-time savings of $4,068 and to retain
left over grant funds for future purchases.
To document the savings,the City provided a detailed explanation from Ms.Petru which
stated that the timing ofthe purchase,and the City's ability to negotiate a favorable price for the
vehicle resulted in a cost savings to the City even though the vehicle contained up-to-date
technology.The City also provided an "Account Activity Listing"showing that the cost of the
patrol vehicle during Fiscal Year 2010-11 was less than the cost during Fiscal Year 2008-09.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more ofthe criteria set forth in the Program.
Review of Suggestion #2
The City reviewed a suggestion from Ray Holland,Interim Director of Public Works
relating to cost savings from the selection of a residential solid waste provider (Athens Services)
to provide single-family and multi-family residential waste solid services in Service Area 1.
This selection is estimated to save the City 40%over its current rates for the same services in the
previous year.The selection ofAthens was carefully vetted by the Public Works Department as
well as the City Attorney's Office
To document the savings,the City provided a November 4,2009 Staff Report to the City
Council that discussed,in detail,Staffs recommendation for selecting a solid waste provider.
The Staff Report contained a detailed explanation of the services and costs associated with the
companies that were bidding on the services.The Staff Report also contained the proposal
evaluations and draft agreements reached with the two fmal bidders that the City was
considering.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #3
The City received a suggestion from Eric Mausser,Human Resources Manager,Carolynn
Petrie,Carolyn Lebr,City Manager,and Christy Brummett,Executive Assistant,regarding the
bidding of the City's ancillary insurance coverage (dental,vision,life,long term disability and
employee assistance programs).By bidding the ancillary insurance coverages,the City was able
to secure multi-year rates for these insurances and to also bid the insurances for a lower annual
cost.This action resulted in an estimated cost savings to the City of $22,272.The securing of
multi-year packages also may result in additional savings for the City as the costs for insurance
are trending up over the past several years.
To document the savings,the City provided a November 9,2010 Staff Report to the City
Council which discussed~in detail,the City'S efforts to renew the City's current health care
premiums as well as the bid for providing the ancillary insurance coverage.The same
534414.3 RA02S-004 3-8
Eric Mausser
October 20,2011
Page 3
memorandum explains the increase in the City's cost for healthcare premiums effective January,
2011 due to a trending pattern of health insurance companies raising premiums.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #4
The City received a suggestion from Marsha Zents,Administrative Assistant in the
Community Development Department,to eliminate the use of temporary employees.The City
has accomplished this cost savings by utilizing existing staff to fill-in for employees who are
absent or on vacation.The estimated cost savings from this action were $2000.
To document the savings,the City provided computer I'screen shots"of a purchase order
from June,2010 showing a purchase requisition for temporary help from AppleOne,Inc.The
City also provided a second 'Iscreen shot"from July,2010 which shows that the purchase
requisition for the temporary help was cancelled.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #5
The City received a suggestion from Kathryn Downs,Deputy Director of Finance &IT,
to develop a modified procedure to increase cost~based fees that allowed the City to realize a
slight increase of its cost-based fees revenue.In addition,the City's budgeted cost per full-time
employee (salary and benefits)increased by 2.46%.Accordingly,the City adopted several new
fees and adjusted existing fees that may increase revenue by up to $18,000 annually.
To document this revenue,the City provided a September 7,2010 Staff Report to the
City Council.The Report contains a detailed explanation ofhow the increase in cost-based fees
was determined,as well as a list ofthe new and adjusted fees.
The documentation and the City's conclusion regarding revenue generation appear
reasonable and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #6
The City received a suggestion from Adam Raymond (Senior Administrative Analyst),
Dennis McLean (Director ofFinance.and IT),Kathryn Downs (Deputy Director of Finance and
IT)and Judy Huey (Senior Administrative Analyst),to withdraw from the Municipal Area
Express (MAX).Due to concerns raised by City Staff over how MAX charged member
agencies,the City saved between $13,000 to $26,000 after MAX reformulated the fees it charged
member agencies.The City's decision to withdraw from MAX will save the City approximately
$264,000 over the next seven (7)years.
534414.3 RA025-o04 3-9
Eric Mausser
October 20,2011
Page 4
To document this cost savings,the City provided a March 15,2011 Staff Report to the
Council which detailed the City's actions in tenns of withdrawing from MAX and questioning
the formula MAX used to charge member agencies.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Sugeestion #7
The City received a suggestion from Dennis McLean and Kathryn Downs to payoff the
Citt s side-fund liability (i.e.a risk pool mandated by Cal-PERS)by using Excess General Fund
Reserves.The interest rate that was being charged to the sideNfund liability compensation was
thus eliminated allowing the City to realize an annual pension expense savings of$146,950.In
addition,the payoff allowed the City's employer contribution rate to decrease from 13.202%to
10.263%of covered payroll.
To document this cost savings,the City provided a May 4,2010 Staff Report to the City
Council documenting the City's plan and the savings.The memorandum also attached the
FY09-10 Statement of Estimated General Fund Reserves.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #8
The City received a suggestion from Kathryn Downs and Selena Wright,Accounting
Technician,documenting the receipt of a discount from Cal-PERS after the City paid its
employer contributions early.The City's employer contribution rate for FY10-11 is 10.263%.
The City received a 3.66%discount for making an early payment which equates to
approximately $18,000 in savings.
To document this cost savings,the City provided a copy of the check sent to Cal-PERS
on July 6,2010 to pay the employer's Cal-PERS contribution for FYlO-11.The City also
provided a communication from the Actuarial Office for Cal-PERS showing the represented
savings.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #9
The City received a suggestion from Linda Gan-Vanderlinde (Senior Accountant)and
Kathryn Downs,to recoup underpaid business license fees from the Terranea Resort.This
underpayment resulted in the receipt of an additional $23,500 to the City.
534414.3 RA025-004 3-10
Eric Mausser
October 20~2011
PageS
To document this revenue generation,the City provided two computer "screen shots"
from the City's accounting system.The screen shots show that the business license fees received
from the Terranea Resort in 2010 was $26,068 while the business license fees received in 2011
was $63,587 which included a payment of the previous underpayment in 2010.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more ofthe criteria set forth in the Program.
Suggestion #10
The City received a suggestion from Bindu Vaish,Associate Engineer,who negotiated
.with a contractor to perfonn road resurfacing of the City Hall Back Parking and access road at no
cost in exchange for the City providing a staging area for the contractor at the City Yard.The
cost savings was approximately $4000.
To document this savings,the City provided a "Bid Schedule"from the contractor,All
American Asphalt~which shows that the contractor gave certain credits to the City because the
City allowed the Contractor to use the City Yard as a staging areas for materials and equipment.
According to the City,the Contractor perfonned work on the City Hall Parking Lot and Access
Road,but credited the City for the value of some of the work,thus amounting to the claimed
savmgs.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #11
The City received a suggestion from Emilio Blanco,Maintenance Supervisor,to use
aggregate material left at the City Yard to complete the overflow lot at the Point Vicente
Interpretive Center.The aggregate was obtained at no cost,resulting in a cost savings of
approximately $2,168.
To document this cost savings,the City provided documentation showing a labor quote
from Oak Springs Nursery.The quote identified the cost of labor,materials and equipment to
perfonn the job that was completed by using the aggregate material.The City also realized a
labor cost because the work was performed by City employees who were already "on-site."
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more ofthe criteria set forth in the Program.
Suggestion #12
The City received a suggestion from Lauren Ramezani~Senior Administrative Analyst,to
request that residential haulers provide ftxed annual recycling revenue/recycling funds (CRV)as
opposed to funds that fluctuate based upon the weight of materials collected.The suggestion
534414.3 RA025-004 3-11
Eric Mausser
October 20,2011
Page 6
resulted in a stable,as opposed to fluctuating CRY revenue to the City.In addition,the fixed
revenue was based on historic years where volume of recovered beverage containers was high as
opposed to recent years.The estimate armual savings for the City is $40,000 to $50,000
annually.
The City provided documentation consisting of a May 7,2009 Staff Report to the City
Council which notes a downward trend in the amount of Cali fomi a Refund Value (CRV)funds
the City was receiving during FY 2008-09.The report further explains that the CRY revenue
rate has decreased in recent years.
Based upon staff recommendation,in November,2009,the City selected EDCO Disposal
Corporation as the City's designated exclusive solid waste provider for Service Area 1.The
contract with EDCO provided for a fixed CRY revenue that was substantially higher than the
CRY revenue the City received in previous years.The estimated revenue increase for the City
due to the increased CRY revenue is approximately $40,000 per year.The City also provided
account activity printouts showing that the CRY payments to the City have increased since the
City initiated its contract.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #13
The City received a suggestion from Andy Winje,Associate Engineer,and Ron Dragoo,
Senior Engineer,to allow the City of Los Angeles to temporarily deposit debris in the Abalone
Cove Shoreline Park parking lot for later removal by the Los Angeles County Consolidated
Sanitation Districts.Approximately $5000 was saved because the City of Rancho Palos Verdes
did not have to hire a contractor to remove the debris placed in the Abalone Cove lot.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Suggestion #14
The City received a suggestion from Ron Dragoo and the Public Works Team,to produce
banners,as opposed to foam boards,that could be taken to Washington D.C.to promote the San
Ramon Project.
The City provided documentation showing that the designer of the banners,Myrick
Designs,only charged the City for printing costs and waived labor costs.The invoice from
Myrick Designs reflects that the labor costs were $160/hr.for 6 hours ofwork.Thus,the savings
to the City came to $960.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the 'suggestion meets one or more of the criteria set forth in the Program.
534414.3 RA025·004 3-12
Eric Mausser
October 20,2011
Page 7
Suggestion #15
The City received a suggestion from Ron Dragoo and the Public Works Team,to use the
City's Maintenance Contractor to conduct the Paintbrush Canyon Detention Basins Cleaning
project,as opposed to using an operator and a skip loader.This eliminated the need to bid the
project,resulting in a cost savings of approximately $5,225 in construction and $8,000 in
inspection services.In addition,soil removed from the detention basins was reused along Burma
Road to widen the roadway,to fill a washed out section and to provide a cap.Hauling costs
were avoided as were soil disposal costs.
The City provided documentation showing that the City's Maintenance Contractor
.perfonned the work for much less than if the project had to be bid.The figures used by the City
to calculate the savings came from estimates provided by contractors that would have been used
to perform the work,such as the cost of equipment,soil hauling and dumping.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more ofthe criteria set forth in the Program.
SUlgestion #16
The City received a suggestion from Ron Dragoo and the Public Works Team,to use soil
generated by a Contractor performing grading at the Bend Club to install a buttress along P.V.
Drive South.Cost savings realized for eliminating the need to purchase approximately 40,000
cubic yards of soil resulted in savings of approximately $210,000.Staff also perfonned all
inspections which saved an approximate $8,000.
To document this savings,the City provided a June 1,2010 Staff Report to the City
Council which detailed the need to complete the grading project due to ongoing erosion in the
area.The Staff Report also mentioned using dirt located on the Bend Club property to complete
the work.The savings estimates were provided by the City.It should be noted that an October
5,2010 Staff Report identified some unanticipated costs that occurred during the project.
The documentation and the -City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more ofthe criteria set forth in the Program.
SUlgestion #17
The City received a suggestion from Carolyn Lebr and Kathryn Downs to purchase
Proposition A money from the City ofRoiling Hills at 75 cents on the dollar to replace the City's
FYI0-ll General Fund contribution to the Transit program.This resulted in a cost savings of
$11,250.
To document this savings,the City provided a September 21,2010 Staff Report to the
City Co~ncil.The Report discussed the recommendation to purchase Transportation
Development Act money from the City of Rolling Hills at a discount.This resulted in a savings
534414.3 RA025-004 3-13
Eric Mausser
October 20,2011
Page 8
of General Fund money in the amount of$11,250.
The documentation and the City's conclusion regarding cost savings appear reasonable
and the suggestion meets one or more of the criteria set forth in the Program.
Sincerely,
LIEBERT CASSIDY WHITMORE
~4
MHMlbtp
534414.3 RA025·004 3-14