2.103.040 Awards.
A. The mayor is authorized to pay awards upon recommendation of the suggestion award board; provided that the mayor’s decision to award and the amounts of award shall be final, subject to Sections 2.103.050 and 2.103.070. The suggestion award board and mayor may use as a guide to determine the amount of award the estimated first year savings anticipated after adoption of the suggestion with a minimum award of $25:
1. Estimated first-year net savings up to $1,000. $25 for the first $250 in benefits plus $5 for each additional $50 of benefits or fraction thereof (10% of cost savings);
2. $1,001—$10,000. $100 for the first $1,000 benefits plus $5 for each additional $100 or fraction thereof (10%—5.5% of savings);
3. $10,001—$20,000. $550 for the first $10,000 in benefits plus $5 for each additional $200 or fraction thereof (5.5%—4% of savings);
4. $20,001—$100,000. $800 for the first $20,000 in benefits plus $5 for each additional $1,000 or fraction thereof (4%—1.2% of savings);
5. $100,001 or More. $1,200 for the first $100,000 in benefits or more plus $5 for each additional $5,000 or fraction thereof (1.2%—.1% of savings).
Monetary awards for suggestions will be based on their relative worth. In addition to or in lieu of a monetary award, the employee submitting an accepted suggestion may receive a certificate of merit. Suggestions may be awarded a certificate of merit and/or monetary award if the suggestion prompts any action by management, even if the proposed solution is not totally implemented.
B. Supplemental Awards. City council may authorize supplemental awards if the savings realized through implementation are greater than originally estimated.
C. Income. Suggestion awards are classified as income under Internal Revenue Service and state of Washington rulings, and as such are subject to withholding tax, social security and pension deductions. Separate award checks will be issued to award winners for the gross amounts. The award amounts will then be entered into the pay cycle as a pay adjustment with appropriate deductions reflected in the employee’s subsequent earning records. (Ord. 1001-84 § 4, 1984.)