Zaragoza Questions Cost-Cutting Effort

Questioning the fairness of a Parks and Facilities Department program that rewards some city parks employees for cost-cutting initiatives, Councilman John Zaragoza said Monday perhaps the Shared Savings Plan should end.

Tonight, Parks and Facilities Supt. Michael Henderson is scheduled to present a report on the program, detailing how the savings were realized and how seven employees were selected as members of the Shared Savings Committee.

Zaragoza, who asked Henderson to prepare a report on the program two weeks ago, said he is concerned that the Shared Savings Plan is not equitably distributed among all employees.

Since October 1994, half a dozen Parks and Facilities employees have each received more than $6,000 each in city money as members of the Shared Savings Committee. One employee received $1,757 as part of the plan.

Under the program, a total of more than $39,000 was paid to these employees, while the department’s budget was being cut by about $80,000, according to Henderson, one of the employees who received a check.

While about $47,000 worth of savings was returned to the city’s coffers, some council members have been asking why they were not informed on the details of these benefits and how these savings were reached.

Henderson’s report states that the Shared Savings Plan--and another employee-incentive program called pay-for-performance--have contributed to employees’ seeking ways of cost control and efficiency.

“The quarterly [bonus] check is by no means certain,” Henderson wrote. “It depends solely upon the increases in efficiency achieved by the employees.”