4.2. ERMUSR 12-14-2010 - Laserfiche WebLink

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Elk River ~ . Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.5099 TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations John Dietz, Chair Jerry Gumphrey, Vice Chair D 1 Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: December 14, 2010 4.2 SUBJECT: 2011 Wa e Pro oral BACKGROUND: The process for annual wage increase proposals is handled over two separate commission meetings. At the November Commission meeting, management provided industry comparisons, economic trends, and financial impact information. Included was the metro average survey of seven predetermined peer utilities. Also, the Consumer Price Index (CPI) was provided. The employees were provided the opportunity to address the Commission with suggestions and requests. At that time, a request was made for the Commission to consider adopting a storm pay policy. This submitted proposed policy is attached. The Commission then requested additional benefits analysis is done. Staff also was to provide an additional comparison analysis of municipal utilities' wages. DISCUSSION: Not all of the metro seven utility's used in our metro average provided benefits information. Staff was able to establish a relatively complete "big picture" of where ERMU's benefits package compares with these other Utilities. Many of the benefits were handled similarly with all of these utilities including ERMU. The minimum call-out time, provisions for double time, sick days per year, holidays/personal days, life insurance, and long term disability benefits were very similaz. There are a few azeas within the benefit packages that aze worth highlighting. Of the seven, only one of the other utilities handles promotions and layoffs based only on merit as does ERMU. The other six have seniority provisions as a primary part on those types of labor decisions. This is important because under the current practice at ERMU, employees that work hard and want to advance have equal opportunity as those with more years experience. Some of the utilities have paid time off in lieu of vacation sick time. But the application of these different methods of time off is similar. The total time off amount [hat can be "banked" at ERMU is more similar to that of the other municipal utilities than the cooperative utilities in the survey. All the utilities have retirement plans of one form or another. The other municipal utilities and ERMU have PERA and the cooperatives have private retirement plans. The cooperative utilities have some other benefits that the municipals do not have. There aze some provisions for meal tickets/per diem, storm pay, laundry service. One of the cooperatives has an annual bonus that can range up to 10% which is based on multiple criteria including system reliability, company financial strength, and customer satisfaction. There is at least one out-state