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4.2a EMRUSR 02-11-2025Elk River Municipal Utilities COMMISSION POLICY Section: Governance Category: Commission — Management Connection Policies Policy Reference: Policy Title: General Manager Performance Planning G.3e and Evaluation PURPOSE: With this policy, the Commission describes the manner in which it will routinely establish performance expectations for and evaluate the performance of the General Manager. POLICY: During the second quarter of each fiscal year, the Commission will evaluate the General Manager's performance for the preceding fiscal year and establish performance expectations for the next fiscal year. The General Manager's performance will be evaluated by comparing the organization's results and methods, as well as the General Manager's personal performance and conduct in relation to Commission policies and other expectations, as established and communicated by the Commission for the time period that coincides with the immediately preceding fiscal year. The Commission will conduct its evaluation within the boundaries of the Commission's policies and its Employment Agreement with the General Manager. The Commission is responsible for the performance of the General Manager and may evaluate the General Manager's performance at any time the Commission determines that it is in the best interests of ERMU to do so. The evaluation of the General Manager will be based on: ERMU's operational performance and conduct in comparison to the Commission's Results Policies and Delegation to Management Policies, and consistent with Authority and Purpose Policies. 2. ERMU's operational and fiscal performance and conduct in comparison to the ERMU Strategic Plan, Annual Business Plan (with budget), Financial Plan, and any other critical success factors established by the Commission. The General Manager shall propose with each Annual Business Plan the specific performance criteria that represent his/he their reasonable interpretation of the Commission's performance expectations for the following fiscal year. The Commission and General Manager will discuss and agree in advance on the criteria to be used. Page 1 of 2 52 ERMU Commission Policy — G.3e General Manager Performance Planning and Evaluation 3. The General Manager's personal performance and conduct in interactions with the Commission, the Commission's independent advisors, customers, elected officials, employees, regulators, and representatives of other allied organizations or any other area deemed appropriate by the Commission and communicated to the General Manager. POLICY HISTORY: Adopted May 9, 2017 Revised February 11, 2025 Page 2 of 2 53