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Elk River <br />Municipal Utilities <br />COMMISSION POLICY <br />Section: <br />Governance <br />Category: <br />Commission — Management Connection Policies <br />Policy Reference: <br />Policy Title: <br />General Manager Performance Planning <br />G.3e <br />and Evaluation <br />PURPOSE: <br />With this policy, the Commission describes the manner in which it will routinely establish <br />performance expectations for and evaluate the performance of the General Manager. <br />POLICY: <br />During the second quarter of each fiscal year, the Commission will evaluate the General <br />Manager's performance for the preceding fiscal year and establish performance expectations for <br />the next fiscal year. The General Manager's performance will be evaluated by comparing the <br />organization's results and methods, as well as the General Manager's personal performance and <br />conduct in relation to Commission policies and other expectations, as established and <br />communicated by the Commission for the time period that coincides with the immediately <br />preceding fiscal year. The Commission will conduct its evaluation within the boundaries of the <br />Commission's policies and its Employment Agreement with the General Manager. The <br />Commission is responsible for the performance of the General Manager and may evaluate the <br />General Manager's performance at any time the Commission determines that it is in the best <br />interests of ERMU to do so. <br />The evaluation of the General Manager will be based on: <br />ERMU's operational performance and conduct in comparison to the Commission's Results <br />Policies and Delegation to Management Policies, and consistent with Authority and <br />Purpose Policies. <br />2. ERMU's operational and fiscal performance and conduct in comparison to the ERMU <br />Strategic Plan, Annual Business Plan (with budget), Financial Plan, and any other critical <br />success factors established by the Commission. The General Manager shall propose with <br />each Annual Business Plan the specific performance criteria that represent his/he their <br />reasonable interpretation of the Commission's performance expectations for the following <br />fiscal year. The Commission and General Manager will discuss and agree in advance on the <br />criteria to be used. <br />Page 1 of 2 <br />52 <br />