2.3 ERMUSR 08-08-2023______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
August 8, 2023
AGENDA ITEM NUMBER:
2.3
SUBJECT:
2023 Second Quarter Utilities Performance Metrics Score Card Statistics
ACTION REQUESTED:
None
BACKGROUND:
Following the Commission’s adoption of the Performance Metrics program in December 2012
and the revision in 2016, 2019, 2021, and 2022, we will be tracking the progress for 2023, to be
awarded in 2024. 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 from employees to continually
achieve. When 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 2023 year, and completion of the audit, the final score card will be
evaluated and presented to the Commission for awarding the related distribution in 2024. We
will be tracking the progress of the company and the related score card quarterly throughout
2023. The second quarter score card is attached, with some notes on the results.
FINANCIAL IMPACT:
None, until awarded the following year.
ATTACHMENTS:
• Performance Metrics and Incentive Compensation Policy Score Card – 2023 2nd Quarter
45
Elk River Municipal UtilitiesG.4g1a ‐ Performance Metrics and Incentive Compensation Policy Score Card ‐ 2023Category Percent Sub‐CategorySub‐Percent Goal ScoreAwarded Multiplier PercentageNotesCurrent ResultWater Quality Standards5Meet Requirementsmet requirementLead and Copper quality5 90th percentilemet requirement90Bacteria Detection50 positive sampleson target0CAIDI5 <120 Minon target53.51SAIDI5 <90 Minon target3.895SAIFI5< 0.5on target0.073Line Loss5<5%off target5.7%Water Loss5<12%off target13.0%Clean Energy Choice Program Participation5 +15 netoff target13Employee Turnover10 < 7.5%on target4.3%Participation in Recommended and Mandatory Trainings10 > 95%on target95%Margins/Net Profit20 > Budgeton targetReserves10 > Targeton targetInventory Accuracy5> 95%on target99.975% Total Multiplier:Adopted December 12, 2012Revised October 11, 2016Revised December 17, 2019Revised December 13, 2022Revised December 14, 2021Safety, Reliability and Quality of Utility Services40Workforce Development25Financial Goals 3546