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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Theresa Slominski—Finance & Office Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> April 9, 2019 4.3 <br /> SUBJECT: <br /> 2018 Utilities Performance Incentive Compensation Distribution <br /> ACTION REQUESTED: <br /> Award the Performance Metrics and Compensation Distribution of 1.7%to qualifying <br /> employees per the terms of the policy. <br /> BACKGROUND: <br /> The Commission adopted a Performance Metrics program in December 2012, for <br /> implementation January 1, 2013, and revised October 11, 2016. This program was based on the <br /> American Public Power Association's Reliable Public Power Provider (RP3) program with the <br /> addition of financial goals. As defined by policy, this company performance based program is <br /> designed to incentivize employee commitment towards the company's success. "The successful <br /> performance of ERMU is measured in terms of the Utilities'ability to meet our strategic goals <br /> and mission. By improving our efficiency and level of performance in meeting our strategic <br /> 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 <br /> quantifiable, this program is designed to track goals that require companywide support of the <br /> employees to continually achieve. When the employees work together as a team to achieve <br /> these goals, the company 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. The program works exactly as intended <br /> as we witness employee motivation and efforts align to improve company performance for <br /> deficient criteria. Attached are the finalized results of the score card on which the employees <br /> have successfully achieved all of the company performance metrics targets, except for two (the <br /> Customer Satisfaction and Employee Turnover metrics). Per the policy, a multiplier of 85% <br /> would be used and qualifying employees would be eligible for a 1.7%distribution. <br /> FINANCIAL IMPACT: <br /> Budgeted item. <br /> ATTACHMENTS: <br /> • ERMU Policy—P.13—Performance Metrics and Incentive Compensation Policy <br /> • ERMU Performance Metrics and Incentive Compensation Policy Score Card - 2018 <br /> Page 1 of 1 <br /> 157 <br />