To: HONORABLE MAYOR AND From: Suggestion Award

CITY COUNCIL Commission

Subject: APPROVAL OF TWO EMPLOYEE SUGGESTION AWARDS IN THE TOTAL AMOUNT OF $12, 884.84

Date: 11/20/03

RECOMMENDATION

Approval of two Employee Suggestion Program awards in the total amount of $12,884.84. The first award of $7,988.84 is to James F. Olson, for Employee Suggestion #6614, based upon an estimated annual savings to the City of $53,358.90 in energy costs. The second award of $4,896 is to Bryan Berdeen, for Employee Suggestion # 6604 which produces an annual energy savings of $32,640.

BACKGROUND

The Employee Suggestion Program was established by resolution in 1965 to encourage City employees to submit original and constructive suggestions for the improvement of City operations. Each year, approximately 33 suggestions are received by the program, evaluated by departmental staff, and approved for award/non-award by the Suggestion Award Commission. To be considered for monetary award, suggestions must evidence independent, creative thought outside the suggestor’s job specifications or any work or project assigned to the suggestor.

The program recognizes three types of suggestions:

· Tangible suggestions that will generate measurable cost savings or increased revenue – award amount is calculated at 15% of estimated first year savings/increase;

· Intangible suggestions for improvements in service, working conditions or general efficiency, where cost savings/increased revenue cannot be measured – award ranges from $25-$100, based on departmental assessment of benefits;

· Safety improvements – award ranges from $25-$100, based on departmental assessment of benefits.

By ordinance, Council must authorize payment for any single award recommendation exceeding $2,500.

The Employee Suggestion Award Program is currently being reviewed for opportunities to streamline processes and to align the focus of the program with the “Getting Families Back to Work” initiative and other efforts to facilitate recovery of the local economy. A report and recommendations will be provided to the Mayor and Council in February 2004.

HONORABLE MAYOR AND CITY COUNCIL

November 20, 2003

ANALYSIS

Suggestion #6614 addresses the use of a 40 hp three-phase 480-volt electric motor that is used to

supply cooling-water circulation to the co-generation engine that produces electricity at the

Convention Center. This motor was installed at the suggestion of a consultant in 1997 during testing to solve a chronic engine problem. The problem turned out to be related to the chemical content of the engine lubricating oil and not the water circulation. Re-connecting the existing mechanically driven pump in the co-generation engine allows for the electric motor to be disconnected. The award amount of $7,988.84 is based on estimated annual energy savings of $53,358.90 from disconnection of the electric motor. The annual savings estimate was based on analysis of 20 months of actual energy cost data.

Suggestion # 6604 addresses the energy costs associated with production of processed air at the Water Pollution Control Plant. The Plant has three buildings that convert gas or electricity into processed air. In the secondary sewage treatment system, this air is used in the Biological Nutrient Removal (BNR) process. Approximately 40% of all air produced is used in the channel aeration which keeps solids in suspension. Through this suggestion, the airflow for channel aeration was reduced by 20% and the BNR process is operating satisfactorily. The reduced need for processed air results in an annual energy savings of $32,640.

The awards will be distributed to the employee as a payroll disbursement.

PUBLIC OUTREACH

The suggestion and award recommendation were reviewed and approved by the Suggestion Award Commission.

COORDINATION

Suggestion #6614 and all savings calculations were reviewed and approved by David Bevans, General Manager, at the Convention Center, as an officer of the implementing department. Suggestion #6604 and all savings calculations were reviewed and approved by John Gibbs and Patrick Kwok, Principal Sanitary Engineers at the Water Pollution Control Plant. Employee Suggestion Program staff verified savings calculations.

BUDGET REFERENCE

Fund: General Fund (001)

Appropriation: Employee Suggestion Award

Amount: $25,000

Budget Document: 2003-04 Adopted Operating Budget, page 706

Brooke Myhre

Suggestion Award Program Manager