5.2. ERMUSR 05-12-2015 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 12, 2015 5.2
SUBJECT:
Performance Metrics Update
BACKGROUND:
Following adoption of the Commission adopted Performance Metrics program in December
2012, we will be tracking the progress for 2015,to be awarded in 2016. 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 2015 year, and completion of the audit, the final score card will be
evaluated and presented to the Commission for awarding the related bonus in 2016. We will be
tracking the progress of the company and the related score card quarterly throughout 2015. The
first quarter scorecard is attached, with some notes for the first quarter results.
At the time of preparing this memo, the water testing has been completed and submitted but the
final results have not been returned. Also, the electric reliability report numbers were not
available; we'll give an update at the commission meeting on these actual numbers. Given that
these are annual goals, it would be unlikely that these reliability numbers would already be
greater than the targets in the first quarter and so it is anticipated that the company is on target
for these.
ACTION REQUESTED:
None, this is for information only.
ATTACHMENTS:
• Performance Metrics and Incentive Compensation Policy Score Card- 2015
P O W E R E D BY
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Reliable Public
Power Provider P O W E R E D T O S E R V E
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Elk River Municipal Utilities
Performance Metrics and Incentive Compensation Policy Score Card-2015
Awarded
Category Percent Sub-Category Sub-Percent Goal Score Multiplier
Percentage Notes as of 3/2015
Water Quality Standards 15 Meet
Requirements tbd Results available later in May
Safety,Reliability CAIDI 5 <120 Min
and Quality of 30 tbd Report Os unavailable,anticipated on target
Utility Services SAIDI 5 <90 Min
tbd Report#s unavailable,anticipated on target
SAIFI 5 <0.5
tbd Report its unavailable,anticipated on target
Customer Satisfaction 10 >85% tbd Customer Satisfaction survey still to be completed for 2015
Customer Service Employee Turnover 10 <7.5%
on target 0.0%
and Employee 30
Development
Participation in Recommended 10 >95%
and Mandatory Trainings
on target 98%
Margins/Net Profit 20 >Budget
on target Electric 288%ahead of budget,Water 30%ahead of budget
Financial Goals 40 Reserves 10 >Target
on target Reserves at required levels,per policy
Inventory Accuracy 10 2,95% tbd as of 1st qtr water(100%),electric(98.8%),security tbd
Total Multiplier:
Approved December 12,2012
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