5.2. ERMUSR 12-12-2012 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager John Dietz—Chair Daryl Thompson —Vice Chair Al Nadeau—Trustee MEETING DATE: AGENDA ITEM NUMBER: December 12, 2012 5.2 SUBJECT: Performance Metrics and Incentive Compensation Policy BACKGROUND: The Wage and Benefits Committee reviewed and supported a Performance Metrics and Incentive Compensation Policy. The Committee submitted this idea to the Commission for discussion at the November 13,2012, Utilities Commission meeting. The Commission directed staff to make a number of changes and bring a policy back to the Commission in December 2012. DISCUSSION: This is a company performance base 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 of 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. The Commission requested revision to the program are reflected in the attached policy and score card. FINANCIAL IMPACT: If approved and implemented January 1, 2013, the financial impact to the Utilities would have an approximate maximum of a$46,000 expense in 2014. A more accurate estimate would be available near the end of 2013 during the 2014 budgeting process. ACTION REQUESTED: Staff recommends the Commission adopt the Performance Metrics and Incentive Compensation Policy for implementation on January 1, 2013. ATTACHMENTS: • 7.5 Performance Metrics and Incentive Compensation Policy • Performance Metrics and Incentive Compensation Policy Score Card - 2013 Page 1 of I [ OMEREi 1 NATUR Reliable Public Power Provider P OW E R E D T o S E R V E •