4.3 ERMUSR 04-11-2023��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Melissa Karpinski — Finance Manager
MEETING DATE:
AGENDA ITEM NUMBER:
April 11, 2023
4.3
SUBJECT:
2022 Utilities Performance Incentive Compensation Distribution
ACTION REQUESTED:
Award the Performance Metrics and Compensation Distribution of 2.0% to qualifying
employees per the terms of the policy.
BACKGROUND:
The Commission adopted a Performance Metrics program in December 2012, for
implementation January 1, 2013, and revised January 14, 2020. This program was based on the
American Public Power Association's Reliable Public Power Provider (RP3) program with the
addition of financial goals. As defined by policy, this company performance based program is
designed to incentivize employee commitment towards the company's success. "The successful
performance of ERMU is measured in terms of the Utilities' ability to meet our strategic goals
and mission. By improving our efficiency and level of performance in meeting our strategic goals
and mission we can improve the delivery of value to our customers." 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 the companywide support of 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:
The performance metrics were monitored and provided as updates to the employees and
Commission on a quarterly basis throughout the year. The program works exactly as intended
as we witness employee motivation and efforts align to improve company performance for
deficient criteria. Attached are the finalized results of the score card on which the employees
have successfully achieved all the company performance metrics targets. Per the policy, a
multiplier of 100% would be used and qualifying employees would be eligible for a 2.0%
distribution.
FINANCIAL IMPACT:
Budgeted item.
ATTACHMENTS:
• ERMU Policy — G.4g1— Performance Metrics and Incentive Compensation
• ERMU Performance Metrics and Incentive Compensation Policy Score Card - 2022
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