Changes in Colorado Springs Utilities’ bonus program lowered the cost only slightly, falling far short of predictions that it would be cut by more than a third.Utilities today will pay $9.6 million to its employees in performance pay for 2007, a drop of less than a million from last year’s $10.3 million payout for 2006.The reduction fell short of a predicted 36 percent drop in response to the City Council’s directives to alter a program that cost ratepayers $49 million from 2003 to 2007.The biggest paycheck went to CEO Jerry Forte at $28,505, 10.3 percent of his $276,750 annual salary.Second in line with $27,056 was Kelly Means, an officer who oversees customer operations.Lower-level managers Michael Hancock and Daniel Higgins each received 17 percent of their annual salaries, the highest percentage among the top 10 payouts.Utilities officials emphasized in a release that “performance pay is not a bonus.”Rather, it’s tied to plans set in advance and is considered part of total compensation.”By making employees accountable to meet and exceed their work goals, the performance of the entire organization is improved,” spokesman Dave Grossman said in a statement.”The outcome is a utility that offers extremely reliable service, some of the lowest rates in the nation and excellent customer service.”Councilman Randy Purvis called pay for performance “generally a good program.””It’s a pay at risk program,” he said.”It prompts utility employees to do their best to meet the standards for performance set by the Utilities Board and senior management.”The program started in 1998 when Utilities reduced salaries and substituted performance pay.In 2003, the program was adjusted to factor in the department’s overall performance, which in recent years has boosted payouts by millions of dollars.In 2006, the program cost ratepayers $12.6 million, a record high.That triggered changes put in place in 2007.The council directed that overall performance be eliminated, a move projected to save $2.5 million.Had that been in place last year and if Utilities had achieved the goal, today’s payout would have been higher, Grossman said.The chief change that drove down the total payout was the council’s directive for workers to be paid percentages based on actual pay rather than top of scale as in past years.Another factor was a five-point instead of a threepoint evaluation, making it more difficult to qualify for payments.Payments went to 1,732 employees; 78 didn’t get them – 52 because they were hired after July 1, 2007, and 26 because of low performance or leaves of absence.The average payout was $5,531, almost the same as last year’s average of $5,536.That’s because last year 1,872 employees received the pay.Utilities is in the midst of a four-year plan to reduce payroll by 200 workers.

Boston College forward Nathan Gerbe, right, scored on North Dakota goalie Jean-Philippe Lamoureux in the first period Thursday in Denver. Gerbe had a hat trick. Photo by THE ASSOCIATED PRESS