2.2 ERMUSR 11-15-2016 - Laserfiche WebLink

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findings or recommendations. There was discussion on the scheduling of the upcoming W&BC meetings. Staff will provide a staff update on what was discussed and will inform employees of the next open W&BC meeting once a firm time and date has been set. 4.0 OLD BUSINESS 4.1 Performance Metrics Evaluation Update At last month's meeting, Theresa Slominski presented a list of suggested changes and the proposed means in which they could be measured. After discussing them one by one, the changes identified having the most potential where: changing the water metric from Water Quality Standards having 15 points, to breaking it out into three separate metrics worth 5 points each, and adding a Line Loss below 5% and a Water Loss below 10%. Theresa presented a revised score card with the suggested options for consideration, and suggested points distribution. Theresa stated that since the last meeting there has been discussion among staff regarding the water loss percentage of 10%. Theresa explained that although 10% is an industry standard, it's a measurement that takes into consideration estimates of unmetered water use to arrive at the 10%mark. She noted that the measurement tracked in our audited financials does not take into account the estimated unmetered usage, only the metered use which is averaging 11.60%. In an effort to remove any estimations, Theresa suggested setting the bar at a higher percentage and benchmarking it against the appropriate industry standard. Theresa and Eric Volk presented the average percentages based on the Key Performance Indicator(KPI) library and suggested the Commission set the Water Loss criteria at 12%. With the introduction of the new Water Loss and Line Loss items worth 10 points, a redistribution of points was suggested to bring the total percentage back down to 100%. For the Customer Satisfaction sub-category goal; staff suggested it be increased from 85% to 90%. There was discussion on how we measure customer satisfaction. In order to increase the Margins/Net Profit sub-percentage from 15 to 20, John Dietz recommended lowering the Customer Satisfaction sub-percentage from 10 to 5. The Commission was in consensus. John Dietz asked for further clarification on why our attorney recommended not using a physical fitness criterion in our metrics. Staff responded. Al Nadeau made a motion to approve the revised Performance Metrics Incentive Compensation Score Card with the breakdown of Water Quality Standards, the 5% Line Loss,the 12% Water Loss, and with an increased Margins/Net Profits sub- percentage from 15 to 20, and a decreased Customer Satisfaction sub-percentage from 10 to 5 to take effect January 1, 2017. Daryl Thompson seconded the motion. Motion carried 3-0. Page 3 Regular Meeting of the Elk River Municipal Utilities Commission October 11,2016 19