Resolution No. 97191
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RESOLUTION NO. 9719
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND ADOPTING A REVISED COMPUTER
PURCHASE PLAN, A FORM PERSONAL PARTICIPATION LOAN
APPLICATION AND AGREEMENT, A FORM PERSONAL COMPUTER
SPECIFICATION SHEET AND A FORM COMPUTER LOAN
VERIFICATION FROM DEPARTMENT HEAD AND PAYROLL AND
ESTABLISHING AN EMPLOYEE COMPUTER PURCHASE LOAN
PROGRAM
WHEREAS, by Minute Order on September 6, 1988, the City
Council of the City of Vernon authorized the establishment of an
employee computer purchase plan; and
WHEREAS, the City Council of the City of Vernon believes that
encouraging the purchase and use of home computers and software
elevates the computer literacy of City employees, thereby enhancing job
performance which benefits the City; and
WHEREAS, the City Council desires to update and revise its
current computer loan program and forms and establish an Employee
Computer Purchase Loan Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon does
hereby find and determine that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the City of Vernon hereby
establishes an Employee Computer Purchase Loan Program for the 2008-
2009 fiscal year.
SECTION 3: The City Council of the City of Vernon hereby
approves and adopts the City of Vernon Computer Purchase Plan (the
"Plan"), a copy of which is attached hereto as Exhibit A and
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lincorporated by reference. Said Plan will become effective October 6,
11:
SECTION 4: The City Council of the City of Vernon hereby
approves and adopts the form Personal Participation Loan Application
and Agreement (the "Agreement"), form Personal Computer Specification
Sheet and form Computer Loan Verifications of Department Head and
Payroll (collectively, the "Loan Forms") in accordance with the Plan,
copies of which are attached hereto as Exhibit B and incorporated by
reference. Said Loan Forms shall be effective October 6, 2008. It is
the intent of the City Council that the form Agreement shall be a
binding contract between the City and the employee upon acceptance by
the Director of Human Resources, or her designee.
SECTION 5: The City Council of the City of Vernon hereby
authorizes and empowers the Director of Human Resources, or her
designee, to execute individual copies of the form Personal
Participation Loan Application and Agreement, on an as -needed basis and
to make whatever nonsubstantive and administrative changes, upon advice
of counsel, to the Loan Forms as are necessary to carry out the intent
of this Resolution. Such additions, deletions and other changes
therein as the Director of Human Resources, or her designee, executing
the Agreement may approve; are conclusively evidenced by the execution
and delivery of the Agreement.
SECTION 6: The City Council of the City of Vernon hereby
allows those employees currently enrolled under any prior program to
continue with the prior program under the guidelines and agreement
under which the prior program existed.
SECTION 7: All resolutions, parts of resolutions, or minute
orders in conflict with this Resolution are hereby repealed.
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1 SECTION 8: The City Clerk of the City of Vernon shall
2 certify to the passage of this resolution, and thereupon and thereafter
3 the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 6th day of October, 2008.
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8 Name: Leonis C. Malburg
9 Title: Mayor / M pr-E='Fe r
10 ATTEST:
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MA UELA GIRON, i y Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9719, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, October 6, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
MANUELA GIRON, ity Clerk
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EXHIBIT A
CITY OF VERNON
COMPUTER PURCHASE PLAN
(Revised October 6, 2008)
0RJFCTTVF
The objective of the Computer Purchase Plan is to elevate the computer literacy of the City
employees and officers of all Departments through encouraging the purchase and use of home
computers and software.
ELIGIBILITY
Any full-time City employee or officer who has completed his/her initial probationary period and
a minimum of one year of service period beyond the initial evaluation period is eligible to apply
for a loan under the program. Employees must agree to comply with the requirements and
provisions of the Plan, and each employee is eligible to finance only one computer. Participants
will be eligible to finance upgrades to their system and additional software through this Plan.
Any additional purchases would require a new Application and Agreement.
Employees who are temporary, provisional, on leave of absence, probation, or who have returned
to probationary status, or are not eligible to apply for this loan.
Overall minimum performance evaluation within twelve months of the loan application date
must be 3.0 and/or A & B ratings for staff. Employees who receive below satisfaction or below
standard in any areas may not be eligible to apply. Supervisor performance evaluation ratings
must be an overall minimum of 3.50 and/or A & B ratings and may not be eligible to apply if
they receive any below standard or below satisfactory ratings.
LOAN LIMITS
Each employee is eligible to borrow up to a maximum of $3,000 with repayment over 24
months. Interest free loans will be made up to this limit for systems determined to be compatible
with or similar to (in capability and use of business software) current City microcomputer
systems. Participants who select a system that is not compatible with or similar to current City
microcomputer systems will be eligible for a loan with a maximum of $2,000. Upgrades to
systems purchased under the Plan or exclusive of this Plan, must fall within the original
maximum loan amounts of $3,000 or $2,000 and be repaid within one twenty-four month period.
Computer Purchase Plan
Adopted by ResolutionNo. 9719 on October 6, 2008
LOAN PAYMENTS
Loan payments will be made through payroll deduction on a bi-weekly basis. Employees are
responsible for monthly payments in the same amount as the total of the bi-weekly payroll
deduction even if the employee is on a leave of absence or otherwise not receiving a paycheck.
Loans are due and payable in full upon separation of employment for any reason. Any payments
made after separation from the City are subject to the payment amount plus interest at a rate of
5% per annum compounded daily or the maximum legal amount allowable, whichever is less.
The failure to make full payment will obligate the employee to pay the City's attorney's fees in
any restitution or collections process.
Loans will be made for a period of 24 months, but may be paid earlier at the employee's request.
STANDARD COMPUTER SYSTEM CONFIGURATION REQUIREMENTS
1. 512MB memory
2. Removable and/or recordable media drive (CD, DVD, Floppy, Zip, etc...)
3. 60GB Hard Drive
4. Software Operating System
5. One printer is optional
6. One Monitor is optional
7. Keyboard/Mouse is optional
To be eligible for this program, system components must be manufactured by established "brand
name" companies, i.e., Lenovo (formally IBM), HP/Compaq, Epson, Dell, Sony, Gateway,
Lexmark, ViewSonic, etc. No off -brands, inexpensive foreign look-alikes, or used components
will be considered. No game or entertainment software, unless specifically used by the city, will
qualify under this plan.
LIMITATIONS
Loans will be made to employees on a first -come, first -served basis, and as funds are available
for such loans.
Computer Purchase Plan
Adopted by ResolutionNo. 9719 on October 6, 2008
PROCEDURE
Participants in this plan will:
l . Obtain an application from the Treasurer's Department.
2. Obtain a quote and/or purchase receipt from the vendor(s) for the hardware and software to
be covered by the program and fill out Personal Computer Specification Sheet.
3. Submit the application and quote and/or purchase receipts to the Treasurer's Department for
determination on configuration eligibility.
4. The Treasurer's Department will verify employment and will coordinate with the employee's
Department Head and Payroll when reviewing the application.
5. The Treasurer's Department will submit the application to the Director of Human Resources
with a Loan Verification Sheet containing comments from Payroll and the employee's
Department Head.
6. Application may be denied, in which case the Director of Human Resources will
communicate with employee regarding the denial.
7. If approved by the Director of Human Resources, the Treasurer's Department will finalize
the Loan Agreement.
8. Warrants will be prepared in the name of the employee.
9. If only a quote is provided at time of submission, employee will provide proof of payment
within 14 days of receipt of warrant.
LOAN AGREEMENT
A written agreement between the City and the employee is required. The loan agreement will
outline the responsibilities of the employee, terms of the agreement, payroll deduction
arrangements, and other conditions of the plan.
RESTRICTION ON TRANSFER OR ASSIGNMENT
Each Participant in the plan agrees that usage of the equipment and software made available
under this plan will be restricted to the employee's own use and that of his/her immediate family.
Any reassignment or transfer of the equipment violates the agreement and cancels the right to
participate in the plan. If the loan is not used by the employee for the intended purpose as
outlined in this Agreement, the employee must immediately pay all money loaned under the plan
to the City with interest at a rate of 5% per annum compounded daily or the maximum legal
amount allowable, whichever is less.
POTENTIAL INCOME TAX CONSEQUENCES
Participants in the plan should be aware that certain legislation has been passed which could
potentially cause the interest foregone by the City to be treated as income to the Participant, for
tax purposes, in the year the loan is made.
Computer Purchase Plan - 3 -
Adopted by ResolutionNo. 9719 on October 6, 2008
While the City expects that the IRS will treat the loans under the Plan as falling within a de
minimis exception applying to small interest sums, employees should refer questions to their
tax advisor.
Any tax consequences that arise as a result of this loan shall be the exclusive liability of the
employee.
PROTECTION AGAINST DAMAGE AND THEFT
Participants in the plan should ensure that their home insurance policy provides adequate
protection of their equipment from theft, fire, flood and lightning. The City does not assume any
liability for damage or theft of equipment.
RECEIVED, REVIEWED AND ACCEPTED BY:
Employee
Computer Purchase Plan
Adopted by ResolutionNo. 9719 on October 6, 2008
Date
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EXHIBIT B
Name
Address
PERSONAL PARTICIPATION LOAN
APPLICATION AND AGREEMENT
(COMPUTER LOAN)
(Revised October 6, 2008)
Department
The above -named employee or officer ("Participant") of the City of Vernon ("City") has been
provided a copy of the City of Vernon Personal Participant Computer Loan Application and
Agreement ("Agreement") and hereby elects to purchase a personal computer and certain related
equipment and software ("Equipment") and participate in the financing arrangement offered
under City of Vernon's Computer Loan Plan ("Plan"), and further agrees to and accepts the
following terms and conditions:
The price of the Equipment to be purchased is $
attached Specification Sheet.
and is identified on the
2. The City agrees to make an interest -free loan to the Participant in the amount of
$ for a period not to exceed 24 months or as long as the Participant is
employed by the City (whichever is less in length of time) to purchase specified
equipment.
Participant authorizes the City to deduct $ from each paycheck of the
Participant beginning until the amount identified in Paragraph 2 above
has been paid. If Participant does not receive a paycheck from the City because they are
on a leave of absence or otherwise, Participant agrees to continue to make monthly
payments in the same amount as would have been deducted from their paycheck on a
monthly basis. Participant may elect to pay the remaining unpaid balance at any time
prior to the last payroll deduction.
4. Participant agrees not to sell trade or otherwise dispose of the Equipment until the loan
has been paid in full. Participant also agrees the usage of the Equipment will be limited
to the Participant's own use and that of his/her immediate family and any reassignment or
transfer of the Equipment will be a violation of this Agreement. Violation of these
provisions will require Participant to immediately pay to the City the remaining amount
due on the loan plus interest at a rate of 5% per annum compounded daily or the,
maximumlegal amount allowable, whichever is less.
Upon separation of Participant from employment with the City for any reason, the
remaining amount to be paid to the City under this Agreement shall immediately become
due and payable to the fullest extent permitted by law, and Participant hereby authorizes
Agreement and Application - 1 -
Adopted by ResolutionNo. 9719 on October 6, 2008
the City to withhold from his/her final pay any sums regularly due to be paid under the
Agreement, and to execute a written Agreement providing for the repayment for all
amounts remaining under this Agreement. The failure to make repayment will obligate
the employee to pay the City's attorney's fees in any restitution or collections process.
6. Not withstanding the above, this Agreement will survive the employment period of the
Participant and therefore will be enforceable without any further executed written
Agreement between the Participant and the City.
7. All warranties and service or maintenance contracts shall be between the vendor and
Participant. Participant shall deal directly with the vendor and in no event shall
Participant look to the City for any claims relating to warranty, service or maintenance.
8. This Agreement may be changed only by a written document signed by the City and the
Participant and supersedes any and all written or oral agreements, proposals and
communications concerning the Plan.
9. I have received and reviewed a copy of the Computer Loan Plan.
Please answer the following questions which will be evaluated when assessing your loan
application:
10. Have you ever filed for Bankruptcy:
(Circle one) YES NO
11. Have your wages ever been garnished:
(Circle one) YES NO
12. Have you ever defaulted on a loan:
(Circle one) YES NO
13. Has any personal debt of yours ever
(Circle one) YES NO
gone to collections:
Accepted by:
Participant/Employee
City of Vernon
ATTEST:
By:
Manuela Giron, City Clerk
Agreement and Application
Adopted by ResolutionNo. 9719 on October 6, 2008
Date
Date
!WM
Name:
Address:
CITY OF VERNON
PERSONAL COMPUTER SPECIFICATION SHEET
(October 6, 2008)
Dept:
Work Phone:
Transaction Type: ( ) New System
( ) Add to existing system (see NOTE below)
ITEM (Specific items to be acquired)
Subtotal 1
Discount
Subtotal 2
Tax
Grand Total
Treasurer Department Approval
PRICE
Note: If this application is for an addition to an existing system, detail the configuration on the
reverse of this application whether purchased under the plan or not. If the system for which the
additions are being sought was acquired under the City of Vernon Personal Computer Purchase
Plan, indicate the date of the initial acquisition or ( ) existing system was,
not acquired under the City of Vernon Personal Computer Purchase Plan.
Participant Signature Date:
Computer Specification Sheet - 1 -
Adopted by ResolutionNo. 9719 on October 6, 2008
TO:
FROM:
RE:
DATE:
COMPUTER LOAN
(Department Head)
Director of Human Resources
(Name of Employee)
(Employee's) Computer Loan Application
has applied for a computer loan from the City of Vernon.
In an effort to assist the Department of Human Resources in performing its due diligence
with respect to the viability of the loan, please provide the following information.
Date of Last Performance Review
Score or Rating received on the last Performance Review.
Number of Disciplinary Issues in the last 12 months
Verbal Written
Number of Pending Disciplinary Issues
Other Comments:
Department Head Name
Date
Please Circle:
Department Head Computer Loan Verification - 1 -
Adopted by ResolutionNo. 9719 on October 6, 2008
COMPUTER LOAN
TO: Payroll
FROM: Director of Human Resources
RE: (Employee's) Computer Loan Application
DATE:
has applied for a computer loan from the City of Vernon.
(Name of Employee)
In an effort to assist the Department of Human Resources in performing its due diligence
with respect to the viability of the loan, please provide the following information.
Does this employee currently have any other loans with the City: Please Circle One:
YES NO
If YES, please provide the following details:
Type of Loan
Loan Amount
When Commenced
Balance Due
Does this employee have any garnishments on their paycheck: Please Circle One: YES
NO
Are their any deductions to employee's payroll other beyond the standard deductions and
beyond insurance deductions?
Please Circle One: YES NO
If YES, please provide details:
Other Comments:
Payroll Clerk
Date
Payroll Computer Loan Verification
Adopted by ResolutionNo. 9719 on October 6, 2008
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: October 21, 2008
TO: Rory Burnett, Finance Director
Sharon Duckworth, City Treasurer,
Masami Higa, Internal Control Manager/Controller
Avigal Horrow, Human Resources Director
Joaquin Leon, Assistant Finance Director
Donal O'Callaghan, Director of Light & Power
Lewis Pozzebon, Director of Environmental Health
Steve Towles, Chief of Police
Martha Valenzuela, Director of Personnel/Purchasing Agent
Mark Whitworth, Fire Chief
Kevin Wilson, Director of Community Services & Water
Willard Yamaguchi, Chief Deputy City Attorney/Risk Manager
FRO Nelly Giron, City Clerk
RE: Resolution No. 9719 - A Resolution of the City Council of
the City of Vernon Approving and Adopting a Revised Computer
Purchase Plan, a Form Personal Participation Loan
Application and Agreement, a Form Personal Computer
Specification Sheet and a Form Computer Loan Verification
From Department Head and Payroll and Establishing an
Employee Computer Purchase Loan Program
Transmitted herewith is a copy of Resolution No. 9719 referenced
above, which was approved by City Council on October 6, 2008.
Thank you.
NG:dr
c: Resolution File No. 9719