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	Aug. 7, 2002 Employees use new ways to do business, save $2.8 million in cost-cutting program King County Executive Ron Sims today applauded employees of the County’s Wastewater Treatment Division, who, by exploring ways of doing business differently, in 2001 saved more than $2.8 million in an innovative cost-cutting pilot productivity program modeled on the business practices of private industry. Employee actions achieved savings in salaries and benefits totaling more than $1.1 million. The actions included reorganizing work groups, cutting positions and reassigning job responsibilities. In addition, approximately $1.7 million was saved through more efficient chemical and energy use, as well as a variety of other efficiency measures. "Our Wastewater Treatment Division is operating more like a private business," Sims said. "Employees have been given the freedom to run their business with specific productivity goals and business targets. They're showing they can be more efficient without compromising our high standard for protecting public health and the environment." Sims added that the productivity program resulted from a cooperative effort begun in 1999 with three unions that represent wastewater workers. Working with King County to develop the program are the Service Employees International Union, Local 6; International Brotherhood of Teamsters, Local 117; and Washington State Council of County and City Employees, Council 2. While serving as a model countywide for new efficiencies and savings, Sims said, the Productivity Initiative could save more than $67 million cumulatively in operations over 10 years. Some examples of these savings include: Employees at the West Point Treatment Plant in Seattle determining they could decrease salary costs and save money by working effectively with nine employees instead of 10 during each 12-hour shift, 24 hours a day, seven days a week. Employees further reducing expenditures by cutting other operating and maintenance costs, primarily from energy reductions at the West Point Plant and the South Treatment Plant in Renton as plant personnel responded when faced with the skyrocketing costs of electricity in 2001. South Plant employees in Renton developing conservation plans with Puget Sound Energy that saved about 5 million kilowatt-hours (kwh), plus an additional 500,000 kwh by severely reducing plant heating and lighting during high-cost periods. In addition, they generated up to 30 percent of the plant's electricity needs during high-cost periods by leasing diesel-fueled generators. These savings are directed to the productivity incentive fund, which is a special fund established to track the use of these savings, with an initial $1.4 million which will be used to offset the need to borrow for capital improvement projects. Other funds will be set aside in: a special rainy day fund which can be used only to cover potential future shortfalls in reaching budget targets; a flexible fund for future investments, such as seed money for activities that support the program goal; and, a special employee incentive fund. Division Manager Don Theiler said the goal of the program is to make the division the most efficient publicly operated treatment system in the nation within five years and to be competitive with the industry's best private operations within 10 years. That goal will be accomplished, Theiler said, by having the executive and council set the direction and guiding principles for the wastewater system and by letting employees "tell us how to get there." Changes and savings resulting so far from the Productivity Initiative include the following: An increased number of employees become involved in setting productivity targets. Increased cross training of employees will result in saved time and money. More efficient use of capital investments. Reduced "micromanaging" of employee tasks by managers. Reduced number of both management staff and consultants for savings. A 12-member employee committee evaluated employee cost-saving efforts for 2001 and recommended to Division Manager Don Theiler and King County Executive Ron Sims distribution of the Productivity Incentive Fund. A private consulting firm, HDR Inc., evaluated the productivity program and determined the recommendation was reasonable and appropriate. Separate from the King County general fund, the wastewater treatment program is funded by ratepayers primarily for wastewater treatment services. All revenue is used for wastewater treatment operations, maintenance, construction and related activities. Updated: Aug. 7, 2002 Executive's home Executive's news Executive's site map | E-mail the Executive King County | Executive | News | Services | Comments | Search Links to external sites do not constitute endorsements by King County. By visiting this and other King County web pages, you expressly agree to be bound by terms and conditions of the site. The details.