5.3. ERMUSR 05-14-2013 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski—Finance & Office
John Dietz—Chair Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
May 14, 2013 5.3
SUBJECT:
Performance Metrics Update
BACKGROUND:
The Commission adopted a Performance Metrics program in December 2012, for
implementation January 1, 2013. This is a company performance based program designed to
incentivize employee commitment towards the company's success. Divided into categories
representing core values of the company and again into sub-categories that are quantifiable, this
program is designed to track goals that require companywide support of the employees to
continually achieve. When the employees work together as a team to achieve these goals, the
company recognizes a corresponding increase in value to our customers.
DISCUSSION:
At close of the fiscal 2013 year, and completion of the audit, the final score card would be
evaluated and presented to the Commission for awarding the related bonus in 2014. We will
track the progress of the company and the related score card quarterly throughout 2013. This will
help to keep the Commission and employees informed of our success/failure throughout the year
and will also help with budgeting for the 2014 year. The scorecard is attached, projecting scores
that have known components at this date, and with some notes for the first quarter results.
ACTION REQUESTED:
None, this is for information only.
ATTACHMENTS:
• Performance Metrics and Incentive Compensation Policy Score Card - 2013
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Elk River Municipal Utilities
Performance Metrics and Incentive Compensation Policy Score Card-2013
Possible
Awarded
Category Percent Sub-Category Sub-Percent Goal Score Multiplier
Percentage 1st Quarter Results/Notes
Water Quality Standards 15 Meet
Requirements tbd
Safety,Reliability CAIDI 5 <120 Min
and Quality of 30 5 21.768 minutes
Utility Services SAID! 5 <90 Min
5 0.29305 minutes
SAIFI 5 <0.5 5 0.01346 minutes
Customer Satisfaction 10 >85% the survey distributed June
Customer Service Employee Turnover 10 <7.5%
10 zero turnover yid
and Employee 30
Development
Participation in Recommended
and Mandatory Trainings 10 >95%
10 95%of 36 employees is 34.2
Margins/Net Profit 20 >Budget 20 YTD Electric projection 20%above,Water 16%above
Financial Goals 40 Reserves 10 ?Target 10 Targets met:$6,131,963 Electric,and$1,121,283 Water
Inventory Accuracy 10 >95% 10 Electric 99.27%,Water 98.97%,Security 98.68%
Total Multiplier:
Approved December 12,2012