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ATTACHMENT #1 CITY OF DOVER FINANCIAL POLICIES Community Leader and Organization Recognition Policy I. PURPOSE The purpose of this policy is to provide guidance on recognition gifs-er- awards provided to outside agencies and organizations. As a general rule, the City of Dover will not normally give gifts or awards. However, there are occasions when recognition in the form of a gift and/or award is are in the best interest of the local community. On these occasions, the City Council, Mayor, or their designee may recognize, by give gifts or awards, te individuals, organizations, or entities who/which provide a written request and meet the following criteria: A) Charitable organizations or entities which provide or have provided donations of goods or B) Cc) D) services to the government of the City and/or for the benefit of all of the citizens of the City; or non-profit charitable fundraising events sponsored by organizations or entities which provide or have provided donations of goods or services to the government of the City and/or for the benefit of all of the citizens of the City; Special guests of the City, including representatives from other government entities, visitors from other countries, retiring local business and community leaders, and departing local business and community leaders who have made a significant contribution to the City. Retiring members of the armed forces stationed at Dover Air Force Base and departing senior officers or senior enlisted members of the armed forces, or other service members at Dover Air Force Base who have made a significant contribution to the City. Elected City officials and appointees leaving City service. (No written request required) E) An y other individual, organization, or entity specifically approved by City Council or the Mayor. II. PERMITTED GIFTS/AWARDS & RESTRICTIONS A) Gifts and awards consist of plaques, Dover cups, coins, golf shirts, and certificates or any B) Cc) other item approved by City Council and the Mayor. No cash donations are permitted. Cash payments to any organization for the City’s use of their facilities are considered a business expense, not a recognition gift or award and therefore this policy does not apply to these payments. Unless otherwise approved by City Council and the Mayor, the aggregate value of any awards or gifts presented to any one individual, organization, or entity during any calendar year shall not exceed one-hundred dollars ($100.00).

DRAFT NO: LF&A 1/12/04 - 1 D) The value of any gift or award should be reasonable, proportional to the contribution made, and in accordance with other City policies and directives. E) No personal benefit should be provided to the grantor of the gift by the grantee. F) This policy shall is not intended-te restrict “get well” and sympathy expressions. Ill. REPORTING REQUIRMENT Gifts and/or awards given will be included in the monthly report issued by the Finance Department for public review. IV. CHARTER AND CODE OF CONDUCT All City of Dover policies are to subject to the City of Dover Charter Part II Code of Ordinances Chapter 2, Article 1, Division 4 “Code of Conduct”, which is “applicable to all elected and appointed officials and to all employees of the City of Dover.” V. POLICY ADHERENCE In consideration of these guidelines and policies, one’s interpretation should be on a strict, rather than loose, construction basis, and obviously, the objective should not be to rationalize ways and means for circumvention. VI. REVIEW & REVISION The City of Dover Community Leader and Organization Recognition Gif Policy will be reviewed every three years by the Mayor and City Council. DISTRIBUTION 1. Mayor, Council, City Manager 2. Department Heads 3. Finance Staff 3. Finance Policy Manual ADOPTED:

ATTACHMENT #2 City of Dover Performance Based Pay Policy For Non-Bargaining Employees January 7, 2004 I. Purpose The City of Dover Performance Based Pay Policy is intended to provide equitable compensation based on performance for all exempt and non-exempt positions when considered in relation to each other and to general pay ranges for similar employment elsewhere. This policy rewards excellence in core competencies, as well as the ability to get results. This will allow the City to maintain an effective, responsible and loyal work force, and allow us to recruit and retain high quality employees. The Policy establishes pay ranges and maintains an effective ongoing pay system for appropriate compensation recognizing the importance of results-based performance. . Il. Pay Plan Maintenance New market-based salary ranges shall be adopted at least every two years after consideration of a market survey that considers both external and internal movement in market salaries. The ranges shall establish an entry-level rate, market rate and a maximum rate. The City Manager will forward the results of the market survey and his recommendations to Council for consideration during the annual budget process. The increases in salary ranges shall not be considered as cost of living increases, but shall serve to keep ranges up to date so that employees’ performance is properly evaluated within the context of where their salary lies within the market place. II. Performance Evaluations and Advancement Guidelines Performance evaluations must be completed annually, prior to any consideration for an increase in pay. No supervisor shall receive an increase in pay until subordinate evaluations are complete. The evaluation will include measurement of the results of predetermined goals and objectives, unplanned assignment results and core competencies. The evaluations shall give goals and objectives for the coming evaluation year. Appendix A is the Pay-for-Performance Evaluation Form to be used for evaluations. The amount of the proposed pay increase will be determined by the overall Performance Score as applied to the Pay-for-Performance Worksheet. The Pay- for-Performance Worksheet shall be approved by City Council with the annual budget. Appendix B is the model Pay-for-Performance Worksheet; the areas where percentage increases will be placed have been left blank.

IV. In general, the percentage increase for employees scoring between 21 and 30 evaluation points whose current salary is within the market range (within the 2"4 third of their salary range) will receive an increase equivalent to market increases as determined by the bi-annual market survey. In general, employees with lower scores will receive lower percentage increases, and those with higher scores will receive higher percentage increases. To advance employees to the market rate, employees who are compensated at levels below market will receive increases that are higher than those who are at and above the market with similar performance scores. While it is the intent of the City to keep salaries competitive within the market place, the City Council reserves the right to set percentage increases based on what it determines the City can afford regardless of changes in the market. Evaluation Quality Control Systems To ensure quality control, the Human Resources Department will review the latest employee performance evaluations in August of each year to ensure that they have clear and concise goals and objectives with expected results that are aligned with the City’s Strategic Organizational Plan. Goals are to be S.M.A.R.T. (Specific, Measurable, Attainable, Realistically High, Target Date). The comments supporting the results achieved must be specific to the goals and/or competencies and not just a repetition of the goal or objective. Achievement or lack thereof of results and progression in core competencies are to be outlined in these comments. The Human Resources Department will also review the evaluators for unusual patterns such as consistently high/low patterns of scoring, as well as incomplete or unrelated comments to support the performance points associated with the goals and objectives. Feedback will be given to evaluators and their department heads to give them the opportunity to justify the perceived inequities or patterns and if necessary correct the problem(s). Procedures for New Job Titles/Grades and Re-grading and Retitling Existing Positions To establish new job titles, grade new positions, or re-grade and re-title existing positions where job responsibilities have changed, the following procedure must be followed: 1. Department heads must submit a proposed job description along with a completed Position Analysis Factor (PAF) Guide (Appendix D) to the Human Resources Department with an explanation outlining the reasons for the new title, re-grade or new position. The Human Resources Department will enter the Position Analysis into the Job Analysis Qualification (JAQ) software to determine the salary grade. The Human Resources Director shall compile all of the new positions, new titles and new grades and forward them to the City Manager for consideration within the annual budget. -2-

VI. To ensure that existing job titles and grades are kept current, as part of the yearly performance review process each Department Head/supervisor will give the employees a copy of their current job description and ask the employees to review the description for accuracy. The employees will return the job descriptions within one (1) week of receiving them from the Department Head/supervisor and discuss the changes (if any) with the Department Head/supervisor. The Human Resources Department will review the submitted information within one (1) week from receiving it from the Department Head for appropriateness and use the Position Analysis Factor Guide to reevaluate the position. The Human Resources Department will enter the Position Analysis into the JAQ software to determine the salary grade. The Human Resources Department will notify the Department Head of the outcome of the review and the Department Head/supervisor will discuss this information with the employee during the performance review. The Department Head will submit any final recommendations to the Human Resources Department. Hiring, promoting and re-grading an employee to a new or open position will be done in accordance with established procedures outlined in the Employee Handbook. Establishing the hiring salary or salary increase associated with a promotion or re-grading will be derived as follows: a. Employees will be placed within the approved salary range at the entry level or above. Consideration will be given to the applicant/employee’s education, equivalent experience, related experience and past performance. Recognizing that the current salary ranges are based on a 20-year period between the entry salary and maximum salary the individual will be placed within the salary range using the following guidelines: (1) The employee will be given credit for equivalent experience year for year; (2) Credit for related experience will be % year for year; (3) Year for year equivalent experience credit will be given for college experience beyond the minimum required where a related Master’s or related Bachelor’s Degree has been obtained. Personnel Evaluation Appeal Process Employees dissatisfied with evaluations are entitled to dispute the evaluation through the following appeal process. 1. Employees may request an appeal of the evaluation within seven (7) days of receiving the evaluation. The appeal must be filed with the employee’s immediate supervisor, in writing, stating the reason(s) for the dispute. The contents of the appeal request must include the specific categories being appealed, the rating sought, and the justification for the change. The immediate supervisor’s decision will be rendered to the employee, in writing, within seven (7) days. 3-

VIII. IX. 3. If an employee is dissatisfied with the immediate supervisor’s decision, then the appeal will be forwarded within seven (7) days to the next level of supervision for that division along with a copy to the Human Resources Director. 4. If the employee is still dissatisfied with the decision, the process will continue through each level of supervision up to the City Manager or the Mayor and Council depending on the reporting relationship. City Manager and Council Appointee Department Heads shall have final decision on employees within their departments. Mayor and Council shall hear any appeals by the City Manager or Council Appointed Department Heads. Any appeal going as far as the City Manager, Council Appointed Department Heads, or Mayor and Council will be first submitted to the Human Resources Director. Instructions for Using the Pay-for-Performance Evaluation The explanation and detailed instructions for using the Pay-for-Performance System are outlined in Appendix C. Evaluator Training All evaluators will receive detailed training in setting S.M.A.R.T. goals and objectives, preparing for and giving Pay-for-Performance evaluations, using the Pay-for-Performance Worksheet and completing the Position Analysis Factor Guide prior to implementation of this new system. Ongoing and refresher training will take place as needed but not less than two (2) times each fiscal year. Training will be mandatory and will include the following subjects: introduction of policy, purpose, guidelines, components of policy, evaluation, appeal process, S.M.A.R.T. goals and objectives, JAQ scoring system and plan administration. 4. Feta Tae AT 58 OEE Bao I Ce EATER SPE Sg HESS DIAS ORC at NNER OE LE

Appendix A Evaluation Date: CITY OF DOVER PAY-FOR-PERFORMANCE EVALUATION Employee: Type of Review: Department: Annual Probationary Date Employed: Other TF Interim/Special Evaluation Period Covered: Date of Appointment to current position: From to Current Annual Salary: [_] Below Market [| aAtMarket [_] Above Market TABLE 1 __ SCORING __ Penormonce x Weight** = Weighted Score* | PART 1 - Planned Goal and Unplanned x = Assignment Results | PART 2 - Core Competencies x = OVERALL SCORE (Part 1 + Part 2) * Round to the nearest tenth ** From Table 2 — Grade: Class Title: Weight Classification: TABLE 2 PERFORMANCE WEIGHTING Weighting Classification | PART | - Planned Goal and Unplanned Assignment Results PART 2 - Core Competencies NOTE: See page four for instructions only for Table 1. Pay for Performance Evaluation - DRAFT -l- Last Updated: 1/7/04

NON-BARGAINING WEIGHTING The following table identifies the grades and titles for all non-bargaining unit employees in the city. Each position was evaluated and weights were assigned that determined the degree of responsibility and control it contained versus recurring or scheduled tasks as identified in the position description. For example, If a position was determined to have fairly low responsibilities and required the same duties on a recurring basis, the core competencies weight will be greater than the planned goals and unplanned assignment results weight. Conversely, a department director's position would receive the highest weight for planned goals and unplanned assignment results and the lowest weight for core competencies since the position has a much higher level of autonomy and responsibilities. Grade Class Title Weight Grade Class Title Weight Accountant | Field Supervisor | City Engineer ‘ant | Assistant Inspections Dir/Plan 1 Bidg Maintenance Supervisor — rdi perator Pay for Performance Evaluation — DRAFT -2- Last Updated: 1/7/04

PERFORMANCE RATING DEFINITIONS OUTSTANDING: This level of performance represents the achievement of significant and exceptional results. The employee consistently achieved additional, significant results beyond established targets and significantly exceeds position requirements. The employee actively and continuously exhibits initiative and innovation and serves as a model for others. COMMENDABLE: Demonstrates above-average knowledge, skills, abilities and effort. Performance goes beyond the position requirements and exceeds expected results. Performance measurably exceeds expectations. Employee exhibits initiative and resourcefulness in going beyond expectations of job performance in accomplishing goals and objectives. GOOD: The employee is effective, with good, solid performance as demonstrated by achieving a majority of results and demonstrating most competencies successfully. Job performance is accomplished in an efficient and competent manner. This performance is fully satisfactory and meets acceptable or expected standards for the job. Work efficiency and effectiveness support the overall productivity of the work unit. Employee accomplishes assigned tasks with expected direction and assistance. NEEDS IMPROVEMENT: The employee has not met the basic expectations and has failed to perform the assigned duties in an acceptable and fully competent manner. Requires additional supervision or assistance by others. Inefficiency and/or ineffectiveness inhibits the productivity of the work unit. Does not consistently demonstrate the required knowledge, skills, abilities and/or effort for this position. Higher level of performance may be possible through increased effort, training and guidance. Performance at this level will be subject to continued careful assessment of impact on the effectiveness of the work unit. UNSATISFACTORY: Minimum standards for the job are not met; job duties are performed at a marginal level or not performed, or must be performed by others. There is minimal contribution to work unit productivity. Employee is unwilling or unable to improve. A need for further improvement is clearly recognized, identified and must occurimmediately. Employee requires constant and close supervision. Continued performance at this level, absent any potential or evidence of immediate improvement will lead to progressive discipline up to and including termination. Pay for Performance Evaluation - DRAFT -3- Last Updated: 1/7/04 mest utramunnnuete wens septamt a. anean gue nay ge remnant: tpenner tea Ere emanate siete menape ener chpmalenmoagae ert eee

INSTRUCTIONS 1. Indicate how the employee has performed in terms of the key listed below. Remarks are required for all "Result Achieved” sections under Part 1 and for all Core Competency Elements under Part 2. Specific reasons/examples must be noted for “Outstanding”, “Needs Improvement” and “Unsatisfactory.” KEY OUTSTANCING ....eeecceccesecsseeceeteesseseeseees 5 Needs Improvement ........cccccese 2 COMMENCADIE 1.00... cc eeeeseeseeseeseteeeee 4 UNSATISFACTOLY.... ce cecccececceseeseseeeeeseees ] GOO veecccecsceetecseeeees 3 Not-Applicable......ccceccsseeeeeee N/A 2. At the end of each section, total the points given for each planned goal and unplanned assignment (Part 1) or core competency (Part 2) and place on appropriate line. 3. Divide the total points by the number of planned goals and unplanned assignments (Part 1} or core competencies (Part 2} for each section and round the result to the nearest tenth. Place this average on the line “Performance Score” for each part. 4. To find the Weight value for Table 1, Scoring, refer to the list of positions on page two. Locate the position being graded and fill in the information in the section between Table 1 and 2 on page one. Use the performance weighting information in Performance Weighting, Table 2 to fill in the Weight column in Table 1, Scoring. PART 1: Planned Goals and Unplanned Assignments GOAL/OBJECTIVE: Write clear, concise statements relative to the principal goals/objectives for the position. Establish the relative importance (priority) of each goal/objective. These planned goals and objectives are listed on the most recent evaluation completed for the employee. RESULT ACHIEVED: Comment on the degree and quality of the results achieved and note any extenuating circumstances affecting the resulis. When performance is “Outstanding”, “Needs Improvement” or “Unsatisfactory,” specific reasons/examples must be included or attached. PRIORITY: List the major planned goals and unplanned assignments in order of priority, with number one being the highest priority. 1. PLANNED GOAL/OBJECTIVE PRIORITY RESULT ACHIEVED: Performance Points: Pay for Performance Evaluation — DRAFT ~4- Last Updated: 1/7/04 ee mee pee ee iy carne tee = ata pce inet ma pate ok sp nape pe Rename <capetn ee AaRper ee Mesa ee stig ena ate ett re anne pnt em

2. PLANNED GOAL/OBJECTIVE PRIORITY RESULT ACHIEVED: Performance Points: 3. PLANNED GOAL/OBJECTIVE PRIORITY RESULT ACHIEVED: Performance Points: 4. PLANNED GOAL/OBJECTIVE PRIORITY | RESULT ACHIEVED: Performance Points: 5. PLANNED GOAL/OBJECTIVE PRIORITY RESULT ACHIEVED: Performance Points: 6. PLANNED GOAL/OBJECTIVE PRIORITY RESULT ACHIEVED: Performance Points: Pay for Performance Evaluation - DRAFT -5- Last Updated: 1/7/04 cr itt oe ce Sein hee

ADD UPDATED INFORMATION REGARDING MAJOR UNPLANNED ASSIGNMENTS AS APPROPRIATE THAT OCCURRED DURING THE REVIEW PERIOD THAT WERE NOT CITED ABOVE. (Attach additional sheets as necessary). | MAJOR UNPLANNED ASSIGNMENTS Title: Performance Points: Title: Performance Points: T Title: Performance Points: Title: Performance Points: Title: Performance Points: Title: Performance Points: TOTAL POINTS FOR PART 1 NUMBER OF PLANNED GOALS AND UNPLANNED ASSIGNMENTS-PART 1 TOTAL PERFORMANCE SCORE FOR PART 1 (Divide the total points by the number of Planned Goals and Unplanned Assignments, round the result to the nearest tenth, and place this figure on Page |, Table 1) Pay for Performance Evaluation — DRAFT -6- Last Updated: 1/7/04

PART 2: Core Competency Elements (Use KEY on Page 3) | Accountability | Performance Points: / e Accepts responsibility for actions and results. e Accepts responsibility for work assignments and their completion in a timely manner. ¢ Reports to work regularly and is on time for work and meetings in accordance with department/personnel policy: schedules appointments at appropriate times. * Ensures proper use, care, maintenance and record-keeping of all equipment necessary for the job in accordance with established procedures. * Maintains and ensures that City vehicles and equipment are maintained in a way to promote a positive and professional impression of self, department and the City. | i | | | | « Always maintains a highly professional demeanor. i i | 1 | | Remarks/Example: | : Communication Performance Points: ¢ Demonstrates effective oral communication skills and conveys ideas and information in a clear and concise manner. ¢ — Listens to and understands information being conveyed. : ¢ Demonstrates effective written communication skills; clearly conveys ideas and information in a written format using proper | grammar and punctuation when preparing written reports that are comprehensive, well-organized, clearly written and timely. i ¢ Reads and understands information being conveyed. H e Ensures that appropriate staff are provided with all relevant information. | ¢ Accepts criticism and feedback. Remarks/Example: Continuing Education Performance Points: ¢ Maintains current required certifications, if applicable. e When made available to the employee, employee participates in training programs, takes advantage of other continuing education opportunities, and/or reads professional publications to keep current on techniques or methodologies appropriate to the job. e Seeks developmental opportunities and forwards information to supervisor for review. Remarks/Example: Employee Development Performance Points: (Not applicable to employees who do not supervise) © Communicates and explains performance standards, organizational goals and objectives to subordinates. © Provides and evaluates training for personnel to ensure effective and consistent job performance and to instruct personnel in new methods or techniques to be utilized. Provides and evaluates sufficient orientation or training of new personnel. H ¢ Involves subordinates in formulating objectives and planning work activities as appropriate. Understands and explains the City’s Strategic Organizational Plan to the employee. ¢ Develops a work climate conducive to subordinates’ productivity; encourages two-way communication, provides proper tools, equipment and training, and provides leadership to encourage self-sufficiency. e Actively supports the City’s cultural diversity programs and policies. Remarks/Example: Pay for Performance Evaluation - DRAFT -7- Last Updated: 1/7/04

Employee Evaluation Performance Points: (Not applicable to employees who do not supervise) © Uses evaluation process as a management tool to improve employee skills and performance. * Supervises and assists with the evaluation process of subordinates accurately, fairly, thoroughly and timely. * Clearly communicates employee performance expectations and the impact of these on departmental goals and objectives. ¢ Documents ongoing employee performance, especially in critical areas. ¢ Completes accurate, well thought through employee evaluations in a timely manner. | Remarks/Example: Financial Management Performance Points: (An employee has direct control of receipts and expenditures of monies. Not applicable to employees who do not have financial responsibilities.) i e Budget development and control done in accordance with overall City policies and procedures. : e Analyzes expenses in an effort to decrease City expenditures and to increase revenue efficiencies. ¢ Ongoing fiscal management of all financial facets in keeping with the approved budget and procedures of the Purchasing i Policy. Remarks/Example: Innovation Performance Points: e Continuously analyzes current department operations, identifies areas where improvement may be made to better serve the public, reduces City expenses, increases revenue efficiency and implements these improvements where appropriate. For Example: Suggestions/ideas that improve City operations, eliminate safety hazards, improve procedures or will improve customer service, elimination of consultant fees, reduce need for temporary help or elimination of unnecessary travel. | Remarks/Example: Job Knowledge Performance Points: Has knowledge of and complies with applicable City policies, procedures, and regulations. e Possesses, demonstrates and applies the knowledge of relevant laws, rules, regulations and state of the art equipment, when available, within the profession and uses appropriate resources to make knowledgeable decisions. ¢ Combines job knowledge and judgment to diagnose and solve problems. « Demonstrates creativity in using job knowledge to accomplish assigned tasks. e Complies with established policies and procedures and observes federal, state and local legal requirements. e Demonstrates skill and prudence selecting and using resources in own profession. Remarks/Example: Leadership Performance Points: © Demonstrates effective decision-making skills. Works effectively under pressure conditions with productivity remaining consistent with given conditions. Seeks ways to improve efficiency or productivity of unit. Inspires and motivates others in addition to leading by example. Efficiently and effectively meets needs of employees and citizens with available resources in an effort to accomplish the City’s vision and mission statement. Remarks/Example: Pay for Performance Evaluation — DRAFT -8- Last Updated: 1/7/04

Planning and Organization Performance Points: Plans, schedules, and directs work activities to accomplish defined goals and objectives. Sets priorities and meets deadlines for work activities. Maintains accurate record-keeping systems. Reviews work flow, workload and resources on a regular basis and makes modifications as necessary. Allows for flexibility in work activities to meet changing needs for unusual situations and anticipates variations in work flow and plans accordingly for unexpected situations. Remarks/Example: Problem Solving/Decision Making Performance Points: Ability to devise effective solutions to problems or identify effective measures and procedures for accomplishing objectives. © Includes appropriate people in decision-making process. * Thoroughly analyzes facts and considers multiple options by weighing the advantages and disadvantages of each before making a decision or recommendation. Remarks/Example: Relationships within the Organization Performance Points: e Works cooperatively with fellow employees and other departments in order to accomplish work effectively and efficiently as well as in accomplishing the City’s goals. ¢ Demonstrates good judgment in handling confidential information. Follows established City policies and procedures regarding access to information. e Follows appropriate organizational guidelines. Contributes to good working relationships with fellow employees; involves fellow workers in formulating department objectives and planning work activities as appropriate. « Cooperates with and supports the activities of other departments in the City to accomplish the City’s mission. Supports the City’s goal of valuing diversity within the workforce. Remarks/Example: Relationships with the Public and Customers Performance Points: Promotes a positive and professional impression of self, department, and City in working for the public/customer. Responds promptly and effectively to citizen questions, concerns, and complaints. Displays objectivity in dealing with the public/customer; does not allow personal attitudes, values and moods to adversely influence public/customer relations. Treats citizens/customers with courtesy and respect under all circumstances. Recognizes that the primary mission of the city is to provide effective services to the public and to promote customer satisfaction. e Supports the City’s goal of valuing diversity within the community. Remarks/Example: Pay for Performance Evaluation - DRAFT -9- Last Updated: 1/7/04

Supervisory Skills | Performance Points: (Not applicable to employees who do not supervise) e Uses effective management tools. Properly manages personnel and resources. Skilled at identifying problems and providing solutions. Exercises consistent and equitable treatment of all employees. seeks advice of the Human Resources Department when appropriate. Is familiar with established personnel policies, procedures and labor agreements, operates in a consistent manner with these and e Investigates complaints made against subordinates and takes appropriate action to resolve them in a manner that is fair and consistent to all concerned within established guidelines. e Delegates responsibilities to subordinates and monitors their progress. Remarks/Example: Work Habits Performance Points: e Maintains a work area organized in such a way to allow the individual and their backup and supervisor to retrieve pertinent information in a timely manner. Demonstrates the ability to work independently and make decisions within established guidelines. Learns and adapts to new methods, conditions, and changes. © Observes safety rules, reports, and corrects conditions and/or practices in work environment that are or may become unsafe. Remarks/Example: Work Management Performance Points: e Completes work assignments within established deadlines and guidelines. Delegates responsibilities to co-workers as appropriate, and establishes a follow-up plan. Willingly accepts additional assignments when it supports the City’s goals and objectives. Works effectively under pressure conditions, such as heavy workloads or deadline situations. Plans and schedules work activities effectively; arranges and relates workload and resources to meet desired results. Demonstrates skill in selecting and utilizing professional resources to accomplish assigned tasks with available resources. Remarks/Example: TOTAL POINTS FOR PART 2 NUMBER OF CORE COMPETENCIES EVALUATED - PART 2 TOTAL PERFORMANCE SCORE FOR PART 2 (Divide the total points by the number of Core Competencies, round the result to the nearest tenth, and place this figure here and on Page 1, Table 1.) OVERALL COMMENTS: A detailed narrative should be included to express any comments or concerns that were not addressed previously in the evaluation. Pay for Performance Evaluation - DRAFT -10- Last Updated: 1/7/04

PART 3: Major Responsibilities for Next Year LIST GOALS/OBJECTIVES FOR THE COMING YEAR TO BE RATED DURING THE NEXT EVALUATION. {Attach additional sheets as necessary). Goals are to be $§. M. A. RT (Specific, Measurable, Attainable, Realistically High, Target Date) GOAL/OBJECTIVE PRIORITY GOAL/OBJECTIVE PRIORITY PO GOAL/OBJECTIVE PRIORITY GOAL/OBJECTIVE PRIORITY GOAL/OBJECTIVE PRIORITY i EEE EERIE Sere = er parser Cw 77-7 EE Pay for Performance Evaluation - DRAFT “V- Last Updated: 1/7/04

SIGNATURES The employce and the evaluator are to sign in the space below after they have reviewed the evaluation. The employee's signature does not necessarily indicate agreement with the evaluation. Any written comments made by the employee must be attached. Evaluator | have explained this evaluation to the employee and attest that the information contained herein represents my best judgement of fhe employee's performance. O_sthave attached an addendum to this evaluation. [Ls The employee and | have reviewed his or her current job description. A signed copy is attached. Employee ! have had this evaluation explained to me. 1 thave attached comments to this evaluation, but | do not wish to appeal. (1 thave reviewed my current job description with my evaluator and do not wish to appeal. C1! wish to appeal this evaluation. Signature of Evaluator Date Signature of Employee Date Department Head Human Resource Director | if Signature Date Signature Date | Pay for Performance Evaluation —- DRAFT -12- Last Updated: 1/7/04

Appendix B P.F.P. Salary Calculation Worksheet (Adopted by City Council Instructions: The total PFP adjustment is calculated by carrying forward the Overall Score from page 1 and finding the range in the two left-hand columns of the following matrix in which the score falls. The PFP adjustment is found in the right-hand column. Employee Above Maximum OVERALL SCORE ADJUSTMENT Employee | Employee | Employee FROM To Below At Above Market"? Market" Market"? 0 10 %- %- - %--- h----- 11 20 % %- %-- %-—- 21 30 Mt % %- %—- 31 40 Yot+ Yt % %- 44 50 Yot++ tt %t % “Below Market = first third of salary range; At Market = second third of salary range; Above Market = top third of salary range. Performance , Weight** . Weighted Score* Score* PART 1 « Planned Goal & Unplanned Assignment Result x = PART 2 e Core Competencies x = OVERALL SCORE (Part 1 + Part 2) * Round to the nearest tenth ** From Table 1 Employee Name: Employee Number: Current Salary: (annually) Recommended Salary: (annually) Current Date: Effective Date: Recommended Salary Based on the P.F.P. Worksheet: $ X40 )=8 Current Salary New Salary Recommended Bonus Based on the P.F.P. Worksheet: X 1( = $5. Current Salary Bonus Authorized Signature Date ¢:\Tony\Pay for Performance\Final Drafts\Appendix B PFP Worksheet.doc Pay for Performance Evaluation - DRAFT Last Updated: 1/7/04

Appendix C Instructions for the Performance Review Cycle Please realize that annual reviews are due to the Human Resources Director by May 31. A supervisor shall arrange to meet with the employee to discuss the employee’s evaluation no earlier then May I and no later than May 25 of each year. Failure to provide a completed evaluation for an employee by May 31 will cause the effective date of the Department Head’s pay-for-performance pay increase, if one was granted, to be extended by the number of days the evaluation was not received. For example, if pay-for- performance increases are effective July 1 and the Department Head submits the evaluation on June 5 (five days late), the Department Head’s pay-for-performance increase would be granted, if he or she was entitled to one, on July 6. The employee’s increase, if one was granted, would not be affected. Before conducting a performance evaluation, a supervisor must give an employee a reasonable time to demonstrate performance. THROUGHOUT THE YEAR Observe and document the employee’s performance and give immediate feedback whenever possible. Documentation at this point can be somewhat informal, but try to keep a record of what the employee does, both good and bad. This record will be very helpful in completing the remarks/example section of the evaluation as well as ensuring the employee is not being evaluated on a short timeframe. Ask the employee for input about their performance during the year. This is important because the performance review should be based on two-way communication, so that it is not merely a “report card.” The employee’s input can be any combination of the following: e A draft performance appraisal prepared by the employee e A list of accomplishments and significant events « An informal discussion between the employee and supervisor QUARTERLY REVIEW (generally October, December and March) Meet informally with the employee to discuss progress toward the goals and objectives as outlined in Part 3 of the Pay-for-Performance Evaluation for the previous year. Indicate any additional comments by the supervisor or employee in the supervisor’s log/journal. PROBATIONARY REVIEW All new employees shall receive a formal probationary review for no less than six months of active service and no more than seven months of active service. Goals are to be established for the new employee to complete doing the probationary period.

ANNUAL REVIEW Employees hired between July 1 and November 30 of each year shall receive a probationary review for no less than six months of active service and no more than seven months of active service in addition to an annual review in May. It is at this time that the employee would be eligible for a pay-for-performance increase. Employees hired between December | and June 30 shall not receive an annual review in May; however, they would receive a probationary review upon completion of six months of active service and no more than seven months of active service. Employees would be eligible for a pay-for-performance increase at their one-year employment anniversary. These employees would then receive an annual review the following May and be eligible for a pay-for- performance increase. The pay-for-performance evaluation instructions and form will be available electronically. For assistance, please contact the Human Resources Department. It is important to inform the employee that his or her yearly evaluation is due. The supervisor is to set a meeting date and time with the employee to review the evaluation. This will ensure that everyone has ample time to prepare for the evaluation. The employee shall be given a copy of a blank evaluation so that he or she may prepare a self-evaluation. A self-evaluation is not required by the employee; however, it is strongly encouraged. Ifa self-evaluation is completed, the self-evaluation is not to be submitted to the supervisor until the formal presentation of the evaluation by the supervisor. A self- evaluation will allow the employee the opportunity to provide information to the supervisor that could have been overlooked. JOB DESCRIPTION Obtain the current job description for the employee’s position to be reviewed by the employee and supervisor during the annual review process. The job description is to be reviewed by the employee and the supervisor individually one week prior to review and then jointly during the performance review. Reviewing the job description annually will ensure that the job description remains up to date with current job duties. All changes must be submitted to the Human Resources Director for consideration and final approval. A copy of the job description that was reviewed must be attached to the evaluation with the supervisor’s and employee’s signature and date indicated on it. If appropriate, the HR Director may recommend the position be re-graded. COMPLETING THE PAY FOR PERFORMANCE EVALUATION FORM Page One The top portion of Page 1 of the evaluation form is information that can be obtained from the employee’s personnel file that is maintained within the department or in the Human Resources Department. Place an “X” in the appropriate box for type of review. If you need assistance, please contact the Human Resources Department. To determine an employee’s weighted score, Table 1, review page (wo of the evaluation. Locate the individual’s current job title. After locating the job title, determine the employee’s weighting classification. For each weighting classification, a weight has been assigned to planned goals and unplanned assignment results and for core competencies. This information is located in 2-

Table 2 on page |. The weights assigned in Table 2 should be inputted on Table | under the “Weight” column. PART I: Pianned Goal and Unplanned Assignment Results Indicate the goals and objectives that were included in the most recent performance evaluation in priority order. Comment on the degree and quality of the results achieved and note any extenuating circumstances affecting the results. It should also be noted how well an employee did in accomplishing the objectives and if they were completed in a timely manner. Assign performance points based upon the Performance Rating Definitions and the Key as noted in the instructions on the evaluation form. The performance score is to be indicated in the Performance Score box. Narrative information is very important in the review process; therefore, include remarks and whenever possible, specific examples. After completing the Planned Goals and Objectives section, proceed to the Major Unplanned Assignments contained in Part 1. This section should be completed in the same manner as Planned Goals and Objectives. Major unplanned assignments are assignments which were not included on the previous year’s evaluation, were not scheduled for completion throughout the fiscal year and required 40 hours to complete. Once you have completed the entire Planned Goals and Unplanned Assignments section, total the performance points given to each goal and assignment and place the number on the line titled “Total Points for Part 1.” Indicate the total number of Goals and Unplanned Assignments that were evaluated. Place this number on the line titled “Total Planned Goals and Unplanned Assignments for Part 1.” To determine the performance score, divide the sum of the points by the number of Planned Goals and Unplanned Assignments and round the result to the nearest tenth. This figure should be placed on the line titled “Total Performance Score for Part 1” as well as on page 1, Table 1, Part 1 under Performance Score for Planned Goal and Unplanned Assignment Result. Determine the weighted score on page | by multiplying the performance scores by the weights. PART 2: Core Competency Elements Each employee is to be evaluated on all the core competencies indicated in Part 2 with the exception of categories that pertain to employees who supervise or assume financial management. These categories are indicated. The supervisor should review the Performance Rating Definitions on page 3 of the evaluation form prior to completing this section. The Key indicated on page 4 of the evaluation form should once again be used for assigning performance points. Specific examples are to be provided in addition to remarks in the space provided. The examples provided for each competency on the evaluation form should be used as guidelines in developing the narrative in the remarks/example section rather than merely copied. Upon the completion of evaluating all core competencies, total the performance points given to each core competency and place the number on the line titled “Total Points for Part 2.”

Indicate the total number of core competencies that were evaluated. Place this number on the line titled “Number of Core Competencies Evaluated for Part 2.” This number cannot be more than 16. To determine the Part 2 performance score, divide the sum of the points by the number of core competencies and round the result to the nearest tenth. This figure should be placed on the line titled “Total Performance Score for Part 2” as well as on page 1, Table 1, Part 2 under Performance Score for Core Competencies. Determine the weighted score by multiplying the performance score by the weight. Once the weighted scores for planned goal and unplanned assignment results and core competencies have been calculated and entered, determine the employee’s overall score. This is calculated by adding the two weighted scores together and entering on the “Overall Score” line on Page 1, Table 1. Overall Comments A detailed narrative is be included in the Overall Comments section (located at the end of Part 2, Core Competencies) of the evaluation. This section should be used for the supervisor to express any comments or concerns that were not addressed previously in the evaluation. PART 3: Major Responsibilities for Next Year List goals and objectives for the coming year that are to be evaluated during the next evaluation. Goals are to be written in the S.M.A.R.T. (Specific, Measurable, Attainable, Realistically high, and Target date) format. These goals are to be discussed with the employee during the formal evaluation process and reviewed quarterly to determine the employee’s progress toward reaching them. For information regarding $.M.A.R.T., please contact the Human Resources Department. Review with the Employee Once the supervisor has completed the evaluation, the supervisor is to meet with the employee at the time and date originally scheduled at the beginning of the evaluation process. The supervisor may provide a copy up to two days prior to the meeting for the employee to preview the evaluation. At this time, the employee may give the supervisor a preview of the self-evaluation. During the review, the individual’s performance, strengths, and developmental needs are to be discussed. Explain the reasons for the review. For example, probationary, annual, special or for another reason. During the review, an open line of communication should be maintained. This is when the employee’s self-evaluation should be compared with the supervisor’s evaluation. The supervisor as well as the employee being evaluated should be open-minded toward comments made. After the formal review with the employee, the supervisor may need to modify the original evaluation to include information the employee presented during the review process. Signatures The employee and the supervisor must sign the evaluation once it has been reviewed together. The employee’s signature does not necessarily indicate agreement with the evaluation. If the employee refuses to sign a performance evaluation, the supervisor must make a notation on the evaluation to indicate that the employee refused to sign the evaluation. The employee and supervisor may attach an addendum. The evaluation is to be presented to the Department Head -4-

for review and signature. The Department Head shall then forward the evaluation to the Human Resources Director for final review. Once the evaluation has been finalized, make a copy of the evaluation for the employee. The employee is to be informed that the evaluation will be placed in the employee’s personnel file maintained in the Human Resources Department. Evaluations become a permanent record in the employee’s file. -5-

II. ATTACHMENT #3 CITY OF DOVER Bonus Policy January 7, 2004 Purpose The Bonus Policy is intended to formally recognize individual as well as group initiative, ideas, commitment, and accomplishments. It supports the City Vision and Mission and is intended to foster personal and group achievement. To qualify for a bonus, an individual or group must demonstrate these characteristics. Communication and fairness are essential. All submissions are recognized as valuable. Feedback in a timely manner is key to everything from recognition of the initial submission to notifying the community after the award is received. Research indicates individual programs become stale with time. The Bonus System needs periodic reviews, updates and promotion to remain effective. Administration This policy establishes a City Bonus Committee (CBC) for administration purposes. The administration of this policy is important for awarding bonuses as well as ensuring the longevity of the bonus programs. Research indicates that bonus systems work best when managed from the top of the organization with input from all levels (internal as well as from the community). The following people are to be active on the CBC: - Mayor - City Council President - City Manager - Finance Director - Human Resources (HR) Director - Two employees (to be nominated by department heads and selected by the rest of the committee) The two employees will have a term limit of two years and will not be permitted to serve consecutive terms. It is recognized that certain bonus programs may not require committee administration. For this reason, the CBC may delegate routine administration to the HR Director for programs as appropriate. The members of the CBC are responsible for performing the following duties: - Review candidate submissions. - Provide immediate feedback to those who provide the submissions. Research indicates that expedient delivery increases success and longevity of a program. - Determine bonus amounts where there is a variable in the guideline. - Present awards. -l-

Ii. IV. - Market and promote the system and each of its bonus programs as further outlined below. - Review effectiveness biannually of all bonus programs and categories and revise the system accordingly. The CBC is to meet monthly or as needed. The driving principle is to reward people as quickly as possible. It is recognized that the positive effect of a bonus diminishes with the lapse of time. For the bonus system to be beneficial for the City and its employees, everyone must know that each bonus program exists and that it is active. The CBC is responsible for performing the following marketing duties: - Publicly announce the establishment of this new bonus system and each bonus program. - Present each bonus program on our Web pages (Internet and Intranet) with on- line submission forms and guidelines as appropriate. - Highlight all recipients who receive bonuses in the monthly newsletter, Web page, and monthly reports to City Council. - Quickly recognize each and every submission and the submitter as valuable to the City. - Provide educational classes in line with bonus programs. Examples: methods for weight reduction and benefits of tobacco free living. Origin of Bonus Candidates Bonus rewards come in a variety of shapes and sizes. Likewise their source may come from a variety of people. We recommend the following as acceptable sources: - Citizens - Employees - Managers - Peers Bonus Categories This policy defines three categories of bonuses and includes specific bonus programs within these categories. The three categories are: Health, Suggestions & Ideas, and Performance. The categories defined here are neither static nor exhaustive. The CBC may consider category changes, deletions, or additions Health Bonuses According to a Reuters article on October 28, 2003, Dr. Julie Gerberding, Director of the Center for Disease Control and Prevention, the number one health threat in the United States today is obesity. She is quoted as going on to say “Unfortunately, poor diet and a lack of exercise have almost caught up with tobacco as being the leading cause of death in the United States.” -2-

The Bonus System Policy recognizes the health of our employees as highly valued. Appendix A lists programs within the Health Category. Performance Bonuses The Performance Category recognizes extraordinary achievements of varying sizes by both teams and individuals. Appendix B lists programs within the Performance Category. Suggestions/Ideas Bonuses The Suggestions and Ideas Category invites employees as well as citizens to make a difference. We want our city to be a place where citizens are not only heard but also rewarded when their input improves how we serve. Appendix C lists programs within the Suggestions/Ideas Category. Budgeting The successful implementation and adoption of the Bonus System will lead to net savings versus increased expenses. Although an amount may be required to start the system, it is anticipated that those monies will be recovered within the first twelve months. This Bonus System is intended to be self funding out of a portion of the cost savings and cost avoidances that are attained from it. The City Manager shall budget for the Bonus Programs each year. Except in the start up year, the amount budgeted for bonus programs shall not exceed the estimated savings realized as a result of bonus initiatives from the previous year. -3-

Appendix A - Health Category Bonus Programs DROPS (Dover Reduces Our People Sensibly) PROGRAM Description - Individuals can receive rewards for losing excess weight. Employees who volunteer for this program participate in monthly weigh-ins while working toward reducing their weight from month to month. The employee’s target is to weigh within the respective normal BMI (Body Mass Index) weight range. The BMI is an accepted height sensitive measurement used by the medical community for weight management. Although BMI is not a measure of fitness, employees reducing their weight to within the accepted normal BMI range may see an increase in their energy level, overall well being, self esteem, and personal productivity. Sick time usage as well as risk of long-term illnesses related to obesity may also be reduced. Measurement of weight loss is based on the lowest weight for that employee on record. If an employee has been out of the program for four or more years and wants to try again, a new base weight is established at the start of the new weigh-in. Award — One hour of time off for every pound lost for full-time employees. A prorated amount of time can be awarded to part-time employees. Time off is to be used within 60 days of the weigh-in at which the weight loss is recorded. Scheduling of the absence must be approved by the employee’s immediate supervisor. If the time off is not used after 60 days, the award expires. It cannot be accrued. Eligibility — All employees who are above the minimum BMI for their height. # of Employees Eligible Each Time — All who volunteer for the program. Frequency — Weigh-in once per calendar month. Individual or Group — This program is for individuals. Participating in an ad hoc group may provide additional incentive and support. Who Qualifies - Employees who volunteer for weigh-ins from month to month. Who does not Qualify: - Employees who are already at or below their BMI range. - Employees who have a medical condition that could conflict with weight loss. All employees are advised to consult their physician before participating in this program. References that Support this Program — The City of Dover has a similar program. -4-

BREATHE PROGRAM Description — Individuals can receive rewards for stopping tobacco usage. This program is for individuals who have a history of smoking or chewing tobacco for a year or more and have felt the need to improve their health by quitting. Sick time usage as well as risk of long-term illnesses related to tobacco use may also be reduced. This program requires both integrity and trust as monitoring success relies heavily on the honor system. Volunteers need only to check in periodically to report on their progress. Award ~— Frozen turkey after 45 consecutive days, dinner for 2 at a restaurant within City limits after 6 consecutive months, $100 savings bond after a complete year, and $200 savings bond after two years of living tobacco free. Eligibility — All full-time employees who have been active tobacco users for one year or more. A prorated award can be earned by part-time employees. # of Employees Eligible Each Time — As many tobacco users as want to volunteer. Frequency — Employees can volunteer at any time. Repeat Eligibility — None. Who Qualifies - Tobacco users for one year or longer. Who does not Qualify - Those who resume tobacco use. References that Support this Program — The City of Dover previously had a similar program. SHAPE (So Have A Physical Exam) PROGRAM Description - Individuals can receive rewards for maintaining a healthy weight, living a tobacco free life, and keeping an annual physical exam. This program is for individuals who are within the BMI range and work at staying there. This can also serve as a continuation of rewards for those who lost sufficient weight within the DROPS program. Maintaining a healthy weight, living tobacco free, and getting annual physical exams not only helps the individual, but ultimately can save costs related to health insurance and use of sick leave, particularly if the annual exam results in early detection of a disease. It is also a positive influence on those who attempting to lose weight or quit using tobacco. Employees may enroll in this program and have their annual physical exam sixty days prior to their annual evaluation. Evidence of their physical exam including their weight at the time of the exam must be submitted to the Human Resources Department. The Human Resource Department will authorize release of the reward. -5-

Award — $50 added to the first pay after annual evaluation, $100 at each continual five year anniversary of staying in the program. Eligibility — All full-time employees. A prorated award can be earned by part-time employees. Frequency ~ Employees can volunteer at any time. Repeat Eligibility — Continual, but if an employce misses an annual physical, he/she cannot participate again for 12 months. Who Qualifies - Individuals who are within the normal BMI range, have an annual physical exam and live tobacco free. Who does not Qualify: - Individuals who do not get an annual physical exam. - Individuals who are tobacco users. - Individuals who are actively participating in the DROPS program. References that Support this Program - Redmond, Washington has multiple wellness programs and provides gift certificates for participation. -6-

Appendix B - Performance Bonus Programs “On the CASE” (Cost And Savings Excavation) Program Description — Individuals or groups may receive rewards for demonstrating excellence by making a major improvement in methods, organization, procedures or products that results in tangible savings or cost avoidance. Frequency of Awards — Quarterly. # of Employees Qualify — All. Repeat Eligibility — As often as cost savings are achieved. Individual or Group — Individuals as well as groups may be candidates. Award — Cash award in the amount of 25% of the demonstrated savings/cost avoidance for the first year up to a maximum of $5,000. If a group is the recipient, the amount is shared equally by all participants in the group. Monetary awards will be included on the employee’s payroll check paid in the regular City payroll cycle. If an employee terminates employment before the bonus is approved by the committee, it will not be paid to the former employee. However, there are two (2) exceptions to this rule: (1) When terminations occur due to a reduction in force, or (2) Retirement. What Qualifies: The CBC will consider but is not limited to considering those reductions in expenditures made possible by such items as the following: - Reduction in overtime. - Elimination of consultant fees. - Less temporary help. - Elimination of budgeted positions. - Improved methods of communication. - Improved systems and procedures. - Better development and utilization of manpower. - Elimination of unnecessary travel. - Elimination of unnecessary printing and mailing. - Elimination of unnecessary payments for advertising, memberships, dues, and subscriptions. - Elimination of waste, duplication, and operations of doubtful value. - Improved space utilization. - Proven cost reduction techniques. - Any other items considered by the CBC as representing true savings. What does not qualify: - Implementing a suggestion that has qualified for a bonus under the Suggestion/Idea Category. -7-

- Lowering of the level or quality of the service rendered. - No recurrence of expenditures which were single outlay, or one-time expenditures in the preceding fiscal year. - Failure to reward deserving employees through promotions, reclassifications, performance increases, or salary increases authorized by salary range revisions. - Postponement of normal purchases and repairs to a future fiscal year. - Stockpiling inventories in the immediately preceding fiscal year so as to reduce requirements in the eligible fiscal year. - Unreasonable postponement of payments of accounts payable until the fiscal year immediately following the eligible fiscal year. - Shifting of expenses to another department. - Any other practice, event, or device which the CBC decides has caused a distortion which misrepresents that a savings or increase in level of service has occurred. References that Support this Program: - State of Oklahoma, Office of Personnel Management, “Productivity Enhancement Program” http://www.opm.state.ok.us/c-pep.pdf - Bloomington, Indiana “Dillman Road Gainsharing Pilot Program” http://www.city.bloomington.in.us/council/meetings/2002/legislation/ordinance/or d0207.htm1 “DUCS in a Row” (Doing Useful Community Service) Program Description — This program rewards individuals and groups who have volunteered their time for providing services to the community at large. Although this award can be received regardless of the community where it is being performed, the intent is that most recipients will be contributing of themselves to make Dover a place where people want to live. Frequency — Monthly. # of Employees Qualify — All. Period of Eligibility — Submissions can be considered for up to six months from time of submission. After that time, it can be resubmitted for the same community service. Repeat Eligibility — No limit. Individual or Group — Individuals as well as groups can be candidates for this bonus. Award - Mayor Proclamation or other recognition by City Council at a public meeting. What Qualifies — At the discretion of the CBC. What does not Qualify — Paid or court mandated community service. References that Support this Recommendation: - MBNA Community Service Recognition Program -8-

- US Department of Energy, Office of Economic Impact and Diversity, http://diversity.doe.gov/Secretary_of Energy Community /secretary of energy | community .html Caught Doing It Right Program Description — This program promotes employee productivity and creativity by quickly providing positive feedback with a tangible reward to those who make notable contributions to the City. Employees who are eligible for this bonus are employees who are caught doing the right thing in the right way at the right time by their management. The employee is recognized as taking steps toward achieving goals that may not meet the requirement for other bonus programs, but the contribution is seen as providing noteworthy value to the City. Another example of productivity that qualifies for this bonus is constructive participation in completing unplanned projects. No submission of candidates or nomination process is involved. The intent of this program is to provide the reward rapidly. The manager only needs to observe the right things and quickly check out what awards are on-hand at the Human Resources Department. Frequency — As often as noteworthy incidents are observed. # of Employees Qualify — All full-time non-bargaining employees. Repeat Eligibility — Limited to $150 of rewards per person per fiscal year. Individual or Group — Individuals. Award - Individual awards are not to exceed $75 in value. Items may include but are not limited to: City merchandise, gift certificates, movie tickets, and non-perishable gifts. A centralized inventory of purchased items for this program will be maintained by the Human Resources Director. The manager may choose from what is available and also make recommendations on future purchases. The awards are to be purchased from businesses within the City limits and also include City merchandise from Central Services. What Qualifies: Examples include, but are not limited to: - Employee contributions within or outside job responsibilities that result in exceptional courtesy, responsiveness, and quality service. - A one-time noteworthy achievement that might otherwise not qualify for other bonus programs. - Volunteering for extra or emergency assignments while maintaining their own work load. - Using initiative and creativity to solve an unusual problem. - Planning a special event which is particularly successful. - Completion of a short-term project. - Handling an unusually heavy workload. -9-

What does not Qualify: The same recurring contribution. References that Support this Recommendation: Bay Health Corporation’s “Staff Appreciation Tool Kit” Federal Highway Administration’s “Red Tool Box Award,” http://www.opm.gov/perform/articles/020.htm US Department of Commerce, Office of Human Resources Management’s “On- The-Spot Award”, http://ohrm.doc.gov/managers/how_reward_empl.htm US Department of Health and Human Services, Food and Drug Administration, “On The Spot Cash Award” -10-

Appendix C - Suggestions/Ideas Bonus Programs “PAYS” (Program Awarding Your Suggestions) Program Description — This program recognizes, encourages and rewards the talents of citizens and employees to develop innovative ideas which will enhance the efficiency and effectiveness of City government through reduced or eliminated expenditures, conserved energy, generation of revenues, increased productivity, better customer service, enhanced safety, health, betterment of the community and/or improved quality of government operations. The goal of the program is to create a continuously improving and responsive government through an environment of open communication of ideas that maximize the participation of citizens and employees at all levels. Individuals or groups who are eligible for this bonus must complete a written proposal that clearly states the current condition and a specific recommendation for improvement either by generating revenue, saving money, streamlining work processes or by benefiting the City in other ways. This program is different from the cost savings/avoidance program detailed in the performance category because the person or group making the suggestion may not have the authority or skill to actually perform the tasks required to realize the savings and makes the suggestion before implementation. If the person or group who qualifies for this award may also qualify under the performance category, only one bonus is awarded. Frequency — One award per month. Eligibility — All employees as well as Dover citizens. Repeat Eligibility — No limit. Individual or Group — Both. Award — Monetary award of up to $5,000 or non-monetary recognition (examples: plaque, lapel pin, logo items, etc.). When a suggestion is implemented, a monetary reward of 25% of the cost savings for the first year, not to exceed $5,000, will be awarded. If the suggestion was submitted by multiple parties, the award is shared. If no cost savings are created but the suggestion is still a betterment, an award of up to $75 in value can be made. If an employee terminates employment before a suggestion award has been paid, it will not be paid to the former employee. However, there are two exceptions to this rule: (1) When terminations occur due to a reduction in force, or (2) Retirement. -l1-

Monetary rewards for a citizen are contingent upon their completion of a W-9 tax form and are subject to IRS regulations for tax purposes. What Qualifies: Suggestions/ideas submitted on appropriate forms. Suggestions/ideas that are the submitter’s own thoughts. Suggestions/ideas that are a new application of an old principle. Suggestions/ideas that improve City operations and/or procedures. Suggestions/ideas that increase revenue. Suggestions/ideas that eliminate safety hazards and/or improve safety conditions in the work area. Suggestions/ideas that create an efficiency for a job. Suggestions/ideas that save the City money. Suggestions/ideas that will improve customer service and customer satisfaction. Suggestions/ideas that decrease lost work time. Suggestions/ideas that reduce the use of hazardous materials. Suggestions/ideas that promote health issues. What does not Qualify? Suggestions/ideas pertaining to conditions over which the organization has no control. Suggestions/ideas that are already established by OSHA or another agency. Suggestions/ideas that violate OSHA or other agency regulations. Suggestions/ideas regarding changes in the pay or classification of a position, departmental reorganization, staffing levels, and transfer of services from one department to another. Suggestions/ideas that were under active consideration by management prior to their submission. Duplications of suggestions/ideas that have been adopted or previously considered within the past twelve months. Suggestions/ideas that have received other bonus awards under this category. Suggestions/ideas expressing personal grievances or proposing salary increases or job reclassifications. Tasks that were specifically assigned to the employee for improvement or problem-solving as a part of his/her job duties and responsibilities that do not go “beyond the call of duty.” Suggestions/ideas that do not propose a method or way to make the improvement. Suggestions/ideas that do not adequately solve the identified problem. Complaints or suggestions involving personal grievances. Anonymous suggestions/ideas. Incomplete or vague suggestions/ideas. Suggestions/ideas concerning normal maintenance and repairs of buildings, equipment or grounds, unless such suggestions/ideas contribute to a solution of maintenance problems. Corrections to obvious errors. Suggestions/ideas that recommend additional revenues at the expense of a segment of taxpayers seen to be classified as unjust or inequitable. Suggestions/ideas that recommend “study,” “survey” or “review” with the course of action to be taken with the findings. -12-

When two or more suggestions are submitted stating the same condition and the same recommendation for improvement, the suggestion with the earliest date is eligible for award consideration. When two or more duplicate suggestions are received on the same date, the suggestions will be combined and signers of the suggestions will be considered co-suggesters, with any resulting award divided equally between the suggesters. References that Support this Recommendation: - State of California, Department of Personnel Administration FAQs http://www.dpa.ca.gov/benefits/merit/fags.shtm - Fort Worth, Texas “Program Awarding Your Suggestion PAY$” http://www. fortworthgov.org/hr/prr/recognition.htm - Washoe County, Nevada, “County Suggestion Program” http://207.228.25.168/suggestions/index.php?choice=rules - South Tidewater Association of Ship Repairers, Inc. (STASR) - Air National Guard -13-