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	June 18, 2003 Productivity initiative to expand reducing costs of wastewater treatment King County Executive Ron Sims today proposed expansion of an innovative and highly successful productivity pilot program that has saved nearly $10.3 million in operating costs for wastewater treatment during the past two years. Employees in the Wastewater Treatment Division have already reduced costs in operations by reorganizing work groups, reassigning job responsibilities and making other changes to improve efficiency through the pilot program. "Our wastewater treatment utility is operating more like a private business," Sims said. "Employees have the freedom to run their business with specific productivity goals and business targets. They are showing they can be more efficient without compromising our high standard for protecting public health and the environment." Sims said he now wants to extend that success and that productivity to capital programs, with a goal of saving even more money in ways that will benefit ratepayers. Under Sims' proposal, the productivity initiative pilot program would be expanded to other parts of the wastewater program including building treatment plants, pump stations, and pipelines; and maintaining, repairing and replacing equipment and facilities. "Our pilot program will set cost targets for the design and construction of major capital projects and develop financial incentives for consultants and contractors," Sims said. "The strategy builds in our expectation for high-quality projects delivered at a lower price." The proposal would allow alternative methods of procuring services for capital projects. That change could improve staff's ability to deliver quality projects on time and at lower cost. For example, the utility could contract with a company to both design and build a facility. The existing ordinance limits that possibility. In addition, wastewater could, under the proposal, discuss and negotiate construction methods proposed by companies bidding on a project. King County would benefit by learning the assumptions used in bids and then pick the most cost-effective offer based on selection criteria. The proposed pilot project for asset management includes setting targets and creating procedures to measure savings from maintenance, repair and replacement of capital equipment assets. The division would closely track maintenance activities and costs to determine the best level of repair and replacement. For the proposed major capital projects pilot, the division would revise the ways it plans and manages construction projects, including selection of contracting methods best suited for a particular project. Savings will rely not only on the actions of staff, Sims said, but also on actions of design consultants and contractors. As a result of the productivity initiative, wastewater employees saved about $5.4 million in operating costs in 2001 and about $7.1 million in 2002. So far, ratepayers have benefited by nearly $10.3 million in the form of reduced future rate increases and need to borrow for capital improvement projects. A part of the savings that can be directly attributed to actions by employees has been placed in an Incentive Fund for distribution to wastewater employees who made the savings possible. That fund includes a "rainy day" fund to cover potential future budget shortfalls and an investment fund for future actions to increase productivity savings. About $1.5 million has been paid out to employees from the fund since the program began. King County's Wastewater Treatment Division protects public health and water quality by serving 18 cities, 15 sewer districts and more than 1.4 million residents in King, Snohomish and Pierce counties. Updated: June 18, 2003 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.