5.6 ERMUSR 11-10-2020UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –Finance Manager
MEETING DATE: AGENDA ITEM NUMBER:
November10, 2020 5.6
SUBJECT:
2020 ThirdQuarter Utilities Performance Metrics Scorecard Statistics
ACTION REQUESTED:
None
BACKGROUND:
Following the Commission’s adoptionof the Performance Metrics program in December 2012
and the revision in 2016 and 2019, we will be tracking the progress for 2020, to be awarded in
2021. 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 fromthe 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 2020 year, and completion of the audit, the final score card will be
evaluated and presented to the Commission for awarding the related distribution in 2021. We
will be tracking the progress of the company and the related score card quarterly throughout
2020. The third quarter scorecard is attached, with some notes for the third quarter results.
The metrics for 2021 will be the same unless the Commission wishes to change any of them.
Changes would need tobe in place before theyear of measurement starts, so any adjustments
would have to be approved in December.
FINANCIAL IMPACT:
None, until awarded the following year.
ATTACHMENTS:
Performance Metrics and Incentive Compensation Policy Score Card – 2020 Third
Quarter
______________________________________________________________________________
Page 1 of 1
84
0
31
7%
0.146
3.31%
98.30514.361
17.15%97.28%99.95%
Result
Current
Notes met requirementmet requirementon targeton targeton targeton targeton targetoff target - water main breakson targeton targeton targeton targeton targeton target
Awarded
Multiplier
Percentage
Score
85
+15 95% 95%
<5% 7.5%
Goal
< 0.5
<12%
Meet
Target
>>
Budget
<
<90 Min
>
samples
>
<120 Min
0 positive
Total Multiplier:
Requirements
90th percentile
555555
5555
10
102010
Sub-Percent
Sub-Category Water Quality StandardsLead and Copper qualityBacteria DetectionCAIDISAIDISAIFILine LossWater LossClean Energy Choice Program ParticipationEmployee TurnoverParticipation
in Recommended and Mandatory TrainingsMargins/Net ProfitReservesInventory Accuracy
402535
Percent
Category
Workforce
Development
and Quality of
Utility Services
Financial Goals
Safety, Reliability
Elk River Municipal Utilities
G.4g1a - Performance Metrics and Incentive Compensation Policy Score Card - 2020
Adopted December 12, 2012Revised October 11, 2016Revised December 17, 2019