Productivity Initiative -- King County Wastewater Treatment Division

Productivity Initiative

The Productivity Initiative is a
10-year program launched by the King County Wastewater Treatment Division to make sure that ratepayers are getting the best return for their investment in wastewater treatment services.

Wastewater Treatment Division employees

Pilot Program Library

Details about actions taken by employees to achieve savings are available in annual reports.

Our Vision:
Creating Resources
from Wastewater

1965-2005
40 Years of Clean Water

WTD Accomplishments

Home | Measuring Results -- Balanced Scorecard | Annual Reports

On this page:
Background | Components | News releases | More information

The Productivity Initiative Pilot Program is a ten-year incentive program that applies certain private-sector business practices, including the establishment of an incentive-based cash payment to employees in the wastewater program, to cut operating costs, increase productivity and continue a high level of service and environmental protection for our customers.

Background

The Productivity Initiative Pilot Program was conceived as an opportunity for a traditional utility to be managed and operated more like a business. For King County’s wastewater treatment employees, this means providing the same high-quality services to the public that King County has always provided, and doing it with the right technology, human resources and fiscal planning found in the business world today. To the public, this means WTD is committed to being more efficient, reducing costs and meeting the county’s obligations to protect public health and the environment.

The Productivity Initiative Pilot Program identifies specific levels of service, cost reductions and efficiencies over the period 2001 to 2010 that will result in an estimated $75.9 million savings (see graph Appendix 1, Page 37 of 2006 Annual Report) for ratepayers, while increasing levels of service to these same customers. Savings are achieved by undertaking an intensive review of current business practices, identifying and implementing cost savings practices, working to increase employee involvement in business decisions and ensuring that the wastewater program receives the best possible services from its partner agencies within and outside the county.

The Productivity Initiative links management decisions about employees with labor, and it requires that management and labor cooperate to identify new ways of getting business done, meet the bottom line, protect public health and safety and allow employees to share in the financial rewards and risks of operating the program more like a business.

>>back to top

Components of Pilot Program

The Productivity Initiative was developed in 2000 and approved by the King County Executive and Council as a pilot program for the operating program in 2001. An important part of the program is establishing an Incentive Fund, which captures a portion of the savings that employees have generated by meeting and exceeding target budgets. Since the program was launched, it has also expanded to include three smaller pilot programs within the capital program: Major Capital Projects Pilot, Small In-House Capital Construction Projects Pilot and Asset Management Pilot.

Components of the Productivity Initiative

Operating Program Pilot (active since 2000)	All savings in the Incentive Fund were generated from the Operating Program Pilot until 2006. Incentive Fund contributions are managed by a committee comprised of wastewater employees representing their respective labor organizations plus management representatives. Participants in the program contribute to the Incentive Fund by creating savings that are greater than the target budgets.
Major Capital Projects Pilot (active since 2005)	All capital projects over $1 million are eligible to participate. Participation is decided on a case-by-case basis. A target budget (cost at completion) is set by an external, independent third party for each eligible capital project. Staff is challenged to deliver the capital project at a lower cost than the target.
Small In-House Capital Construction Projects Pilot (active since 2005)	Under certain conditions, savings created by doing work in-house rather than by outside contractors can be documented and applied to the Incentive Fund. An independent estimate is required as part of any proposal by in-house staff to do the work at a lower cost than using an outside contractor.
Asset Management Pilot (launched January 1, 2006)	Using a suite of 153 assets at South Plant, maintenance, refurbishment and replacement decisions are based on reducing overall costs by balancing maintenance and repair, replacement and refurbishing costs to extend the useful life of an asset. Savings in this pilot can occur only when staff successfully extend the useful life of equipment beyond the anticipated replacement date. In 2006, savings of $37,600 were generated for the Incentive Fund.

>>back to top

News releases

News release, June 18, 2003 -- Productivity Initiative to expand reducing costs of wastewater treatment
This Week, Sept. 3, 2002 -- Wastewater Treatment employees use new ways to do business, save $2.8 million
News release, Aug. 7, 2002 -- Employees use new ways to do business, save $2.8 million in cost-cutting program
News release, April 9, 2001 -- Sims pleased his Productivity Initiative supported
News release, Feb. 21, 2001 -- Executive Sims, employees and unions unveil innovative new program to 'Do Business Differently'

>>back to top

Want to know more?

Refer to the Pilot Program Library for documents and legislation, union contracts, and other information related to this program.
For questions about the Productivity Initiative or this Web site, please contact the productivity communications coordinator by e-mail or at 206-684-1161.

>>back to top

For questions about the Wastewater Treatment Division Web site, please send an e-mail message. For general information about the division, contact us at:

Department of Natural Resources and Parks
Wastewater Treatment Division
201 S. Jackson St.
Seattle, WA 98104-3855
Phone: 206-684-1280
Fax: 206-684-1741
Telecommunication device for the deaf (TTY): 711

Updated: Aug. 15, 2007

Related Information:
King County Benchmark Reports

Measuring for Results, the Department of Natural Resources and Parks' Performance Measures Report

Wastewater Treatment Division Benchmarking Project

The Business We Do -- 24/7

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.