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UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Theresa Slominski –Administrations Director <br />MEETING DATE: AGENDA ITEM NUMBER: <br />April 14, 2020 4.3 <br />SUBJECT: <br />2019 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 />) program with the <br />American Public Power Association’s Reliable Public Power Provider (RP <br />3 <br />addition of financial goals. As defined by policy, this company performance basedprogram 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 goals <br />and mission we can improve the delivery of value to our customers.” Divided into categories <br />representing core values of the company and again into sub-categories that are quantifiable, <br />this program is designed to track goals that require the companywide support of employees to <br />continually achieve. When the employees work together as a team to achieve these goals, the <br />company recognizes a corresponding increase in value to our customers. <br /> <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 the company performance metrics targets, except for two (the <br />Water Loss and Employee Turnover metrics). Per the policy, a multiplier of 85% would be used <br />and qualifying employees would be eligible for a 1.7% distribution. <br />FINANCIAL IMPACT: <br />Budgeted item. <br /> <br />ATTACHMENTS: <br /> ERMU Policy – G.4g1 – Performance Metrics and Incentive Compensation <br /> ERMU Performance Metrics and Incentive Compensation Policy Score Card - 2019 <br />______________________________________________________________________________ <br />Page 1 of 1 <br />160 <br />