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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 8, 2014 5.4 <br /> SUBJECT: <br /> Utilities Performance Incentive Compensation Distribution <br /> BACKGROUND: <br /> The Commission adopted a Performance Metrics program in December 2012,for implementation January <br /> 1,2013. This program was based on the American Public Power Association's Reliable Public Power <br /> Provider(RP3)program with the addition of financial goals. As defined by policy,this company <br /> performance based program designed to incentivize employee commitment towards the company's <br /> success. "The successful performance of ERMU is measured in terms of the Utilities'ability to meet our <br /> strategic goals and mission. By improving our efficiency and level of performance in meeting our <br /> strategic goals and mission we can improve the delivery of value to our customers." Divided into <br /> categories representing core values of the company and again into sub-categories that are quantifiable, <br /> this program is 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 recognizes a <br /> corresponding increase in value to our customers. <br /> DISCUSSION: <br /> The performance metrics were monitored and provided as updates to the employees and commission on a <br /> quarterly basis throughout the year. This allowed for corrective action to be taken in order to meet the <br /> targets for the program. The program work exactly as intended as we witness employee motivation and <br /> efforts align to improve company performance for deficient criteria. Management is proud to announce <br /> and present to the commission the finalized results of the score card on which the employees have <br /> successfully achieved all of the company performance metrics targets. Per the policy,qualifying <br /> employees would be eligible for the full 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 /> ATTACHMENTS: <br /> • ERMU Policy 7.6 -Performance Metrics and Incentive Compensation Policy <br /> • ERMU Performance Metrics and Incentive Compensation Policy Score Card-2013 <br /> to PAAEAEI II <br /> s rN Page 1 of 1 NATURE <br /> owerPrvi POWERED To SERVE <br /> Reliable Public <br /> Power Pmvider <br /> 127 <br />