2.3 ERMUSR 05-14-2024Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Melissa Karpinski — Finance Manager
MEETING DATE:
AGENDA ITEM NUMBER:
May 14, 2024
2.3
SUBJECT:
2024 First Quarter Utilities Performance
Metrics Scorecard Statistics
ACTION REQUESTED:
None
BACKGROUND:
Following the Commission's adoption of the Performance Metrics program in December 2012
and the latest revision in 2023, we will be tracking the progress for 2024, to be awarded in
2025. 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 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 2024 year, and completion of the audit, the final scorecard will be
evaluated and presented to the Commission for awarding the related distribution in 2025. We
will be tracking the progress of the company and the related scorecard quarterly throughout
2024. The first quarter scorecard is attached, with some notes for the first quarter results.
FINANCIAL IMPACT:
None, until awarded the following year.
ATTACHMENTS:
• Performance Metrics and Incentive Compensation Policy Scorecard — 2024 First Quarter
Page 1 of 1
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Elk River Municipal Utilities
G.4gla - Performance Metrics and Incentive Compensation Policy Score Card - 2024
Awarded
Category
Percent
Sub -Category
Sub -Percent
Goal
Score
Multiplier
Percentage
Water Quality Standards
5
Meet
Requirements
Lead and Copper quality
5
90th percentile
Bacteria Detection
5
0 positive
samples
Safety, Reliability
CAIDI
5
<120 Min
and Quality of
40
Utility Services
SAIDI
5
<90 Min
SAIFI
5
< 0.5
Line Loss
5
<5%
Water Loss
5
<12%
Clean Energy Choice Program
Participation
5
+30 net
Employee Turnover
10
< 7.5%
Workforce
Development
25
Participation in Recommended
and Mandatory Trainings
10
> 95%
Margins/Net Profit
20
> Budget
Reserves
10
> Target
Financial Goals
35
Inventory Accuracy
5
> 95%
Total Multiplier:
Adopted December 12, 2012
Revised October 11, 2016
Revised December 17, 2019
Revised December 14, 2021
Revised December 13, 2022
Revised December 13, 2023
Current
Notes Result
met requirement
met requirement 90
on target 0
off target
152.359
on target
11.24
on target
0.074
on target 2.9%
on target 6.1%
on target 11
on target 0.0%
on target 95%
on target
on target
on target 99.97%