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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager <br /> John Dietz—Chair <br /> Al Nadeau—Vice Chair <br /> Daryl Thompson—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> April 14, 2015 ; 5.4 <br /> SUBJECT: <br /> Utilities Performance Incentive Compensation Distribution <br /> BACKGROUND: <br /> The Commission adopted a Performance Metrics program in December 2012, for <br /> implementation January 1, 2013. This program was based on the American Public Power <br /> Association's Reliable Public Power Provider(RP3)program with the addition of financial goals. <br /> As defined by policy, this company performance based program designed to incentivize <br /> employee commitment towards the company's success. "The successful performance of ERMU <br /> is measured in terms of the Utilities'ability to meet our strategic goals and mission. By <br /> improving our efficiency and level of performance in meeting our strategic goals and mission we <br /> can improve the delivery of value to our customers. " Divided into categories representing core <br /> values of the company and again into sub-categories that are quantifiable, this program is <br /> designed to track goals that require companywide support of the employees to continually <br /> achieve. When the employees work together as a team to achieve these goals, the company <br /> recognizes a corresponding increase in value to our customers. <br /> DISCUSSION: <br /> The performance metrics were monitored and provided as updates to the employees and <br /> commission on a quarterly basis throughout the year. This allowed for corrective action to be <br /> taken in order to meet the targets for the program. The program work exactly as intended as we <br /> witness employee motivation and efforts align to improve company performance for deficient <br /> criteria. We present to the commission the finalized results of the score card on which the <br /> employees have successfully achieved all of the company performance metrics targets, except <br /> for one (the CAIDI metric). Per the policy, qualifying employees would be eligible for a 95% <br /> distribution. <br /> ACTION REQUESTED: <br /> Staff recommends the commission award the Performance Metrics and Incentive Compensation <br /> distribution per the terms of the policy. <br /> INATUREI <br /> Page 1 of 2 <br /> Reliable Public Power Provider P O W E R E D T O S E R V E <br /> 128 <br />