4.1. ERMUSR 10-11-2016 - Laserfiche WebLink

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account the estimated unmetered usage, only the metered usage, and this measurement has been between 8.01%and 15.39%,with an average of 11.60%. It would be non-transparent to set the bar at 10% and allow the measurement to contain estimated data. It would also be unfair to set the bar at 10% and dismiss this unmetered component. Therefore,perhaps the bar needs to be set at a higher percentage,benchmarked against the appropriate industry standard. According to the Key Performance Indicator(KPI) library,the industry range is 11.36%to 19.07%with an average target of 11.28%. Given this information, I ask the commission to set the Water Loss criteria at no less than 11.28%. Additionally it was discussed implementing a physical fitness incentive, and staff was directed to seek legal advice for implementation compliance. After consulting with our attorney,we have been advised that this would not be an appropriate metric for our organization. Two concerns were noted. The first concern is a Minnesota law prohibiting physical examinations unless a business necessity can be proven, and evaluation of a performance metric would not be deemed a business necessity. The other concern was compliance with EEOC regulations regarding disability accommodations. It would be "hopelessly complex"to try and incorporate that with our job descriptions since they are so varied. Given the legal advice,this metric suggestion should not be considered. Also,the Customer Satisfaction sub-category goal could be increased to 90%instead of 85%. We strive for excellent customer service and that is better represented at the higher percentage. Finally, with the introduction of a new Line Loss and Water Loss items worth 10 points in the Safety,Reliability and Quality of Services category, a redistribution of points is needed, otherwise we have 110%percent,not 100%. A suggestion of making the same category 40%, and reducing the Financial Goals category to 30%(with the sub-percent changing to 15 for Margins/Net Profit and 5 for Inventory Accuracy) has been presented. The commission would need to make this final determination. Presented is a revised score card with the suggested options for consideration, and suggested points distribution. ACTION REQUESTED: Approval of a revised Performance Metrics criteria with a determination of Water Loss%, and the points determination with the related Score Card. ATTACHMENTS: • Performance Metrics and Incentive Compensation Policy Score Card ifPOWEREO Al . ;; Page 2 of 2 NATURE Reliable Public Power Provider POWERED To SERVE 119