SANDY - Controversial and hefty bonus checks are getting capped in this southern Salt Lake County suburb.

On Tuesday, Sandy Chief Administrative Officer Byron Jorgenson proposed -- and the City Council endorsed -- limiting bonus amounts to 1 percent of an employee's salary. Workers who do something extraordinary also would be eligible for up to an additional 1 percent in "lightning strike" rewards.

And employees who have peaked in their salary ranges could earn an extra 5 percent lump-sum payment each year.

The council plans to formally sign off on the revamped program May 27 as part of the 2008-09 budget. A public hearing is scheduled May 20.

City administrators came under fire after recent revelations of a top-heavy bonus program that awards 20 percent of the incentive cash to less than 2 percent of employees: Mayor Tom Dolan and his 12-member leadership team.

Jorgenson said the new changes would help the city "avoid extremes" and add "consistency" to incentive payments across departments. Each department doles out 1 percent of its payroll as bonuses but there have been no limits on how much any one employee can receive.

With a 5 percent topped-out bonus and the two 1 percent incentive payouts, Jorgenson's lump-sum take would drop from the $12,500 after-tax bonus he received this year to a before-tax bonus of $10,600 at most, based on his 2007 salary of $151,000. Other Sandy administrators and department heads currently pocket roughly 5 percent to 7 percent in after-tax bonuses.

Jorgenson and some elected officials complained about reports in The Salt Lake Tribune about the bonus program - although some council members have called for a review of the payouts.

"I'm sad things have been said in the media that I think are false," said Council Chairman Chris McCandless. "I'm definitely in support of [the new bonus limits]. I'm definitely in support of the old program, as well."

Jorgenson and Dolan met earlier in the day with employees at Sandy's Parks and Recreation headquarters to discuss the bonus system. They asked whether workers remain comfortable with performance payments now that a judge has affirmed that those amounts, as with all compensation, are public information.

They did not ask whether employees were concerned about the lopsidedness of the program. Some workers questioned whether all the department heads were being equally generous with lower-ranking employees.

Jorgenson said the new limits would make the system fairer, and he defended giving bigger bonuses to employees who have maxed out their salaries.

"They start to lose the spring in their step and the sparkle in their eyes" without any monetary incentive, he said, noting that 28 percent of Sandy employees have hit salary ceilings.

Dolan told the workers "our conscience is clear" with regard to the incentive program, but questioned his own bonus, which is a rare reward for an elected official.

"I probably, in retrospect, shouldn't have taken a 1 percent bonus, but I haven't taken a raise in three years," he said.

Jorgenson reassured employees the bonus program will not go away.

"We're happy to provide it, and we think you deserve it."

rwinters@sltrib.com

The bonus program

* After a four-year legal fight, Sandy disclosed details of its decades-old bonus program this spring under court order.

* The records revealed that Mayor Tom Dolan and his top 12 administrators comprise less than 2 percent of city staff but consistently take home 20 percent of the incentive cash.

* Their most recent bonuses ranged from Dolan's $1,000 "automatic" perk to Chief Administrative Officer Byron Jorgenson's $12,500 after-tax payout.

* Last year, half the city's employees got a $300 bonus or less.