5.5. ERMUSR 05-20-2014 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 20, 2014 5.5
SUBJECT:
Performance Metrics Update
BACKGROUND:
Following adoption of the Commission adopted Performance Metrics program in December
2012, we will be tracking the progress for 2014, to be awarded in 2015. 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 2014 year, and completion of the audit,the final score card would be
evaluated and presented to the Commission for awarding the related bonus in 2015. We will
track the progress of the company and the related score card quarterly throughout 2014. 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 2015 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- 2014
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Elk River Municipal Utilities
Performance Metrics and Incentive Compensation Policy Score Card-2014
Awarded
Category Percent Sub-Category Sub-Percent Goal Score Multiplier
Percentage Notes as of 3/2014
Water Quality Standards 15 Meet
Requirements net requ
Safety,Reliability CAIDI 5 <120 Min
and Quality of 30 on target 21.77
Utility Services SAIDI 5 <90 Min
on target 0.29
SAIFI 5 <0.5
on target am
Customer Satisfaction 10 >85%
tbd Customer Satisfaction survey still to be completed for 2014
Customer Service Employee Turnover 10 <7.5%
on target 0.0%
and Employee 30
Development
Participation in Recommended 10 v 95%
and Mandatory Trainings
needs improvement 93%
Margins/Net Profit 20 >Budget
Maybe as of 3/14:electric below budget(PCAs are the impact),and water above budget
Financial Goals 40 Reserves 10 <Target
on target both electric and water reserves above target levels
Inventory Accuracy 10 >95% tbd as of 1st qtr water(100%),electric(91%),security tbd
Total Multiplier:
Approved December 12,2012
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