4.1. ERMUSR 10-11-2016 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski—Finance & Office John Dietz—Chair Manager Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: October 11, 2016 4.1 SUBJECT: Performance Metrics Evaluation Update BACKGROUND: December 2012 the Commission first adopted the Performance Metrics program. This is a company performance based 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. The goal is to have the employees work together as a team to achieve these goals, and the company recognizes a corresponding increase in value to our customers. DISCUSSION: At close of each fiscal year, and completion of the audit,the final score card is evaluated and presented to the Commission for awarding the related bonus. There has been some discussion of changing some of the metrics' measurements from those we started with in 2012. As the metrics need to be determined prior to the start of the fiscal year in which they are to be measured, we would need to decide what to implement/change prior to January 1,2017. Last month's meeting I presented the suggestions with proposed measurement means. After discussing them one by one,the changes identified having the most potential were 1) Changing the water metric from Water Quality Standards having 15 points,to breaking it out into three separate metrics worth 5 points each of Lead and Copper quality results in the 90th percentile, Bacteria no positive samples, and the remaining water quality measurements aggregated, and 2) Adding Line Loss below 5%and Water Loss below 10%. Since the meeting,there has been discussion among staff regarding the water loss percentage of 10%. Ten percent is an industry standard,however, it is a measurement that takes into consideration estimates provided by management to arrive at the 10%mark. These estimations are the unmetered use of water for hydrant flushing,backwashing, fire department use,water main preparation, etc. The measurement tracked in our audited financials does not take into P ® w E IBED 8 Y Page 1 of 2 ISA "URE POWEREDReliable Public Power Provider To S ERV E 118