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promotion into the Electric Superintendent position. It would be difficult to fill the Electric <br /> Superintendent position from the outside because of the extensive system knowledge required. <br /> For a pay plan structure to be successful and allow for the development and promotion from <br /> within, there needs to be adequate separation between positions and especially between a <br /> supervisor and direct reports. <br /> Second, the Commission had also discussed in 2012 having staff review the pay plan in 2013. <br /> This review may include: analyzing how cost of living adjustments are applied, separation of <br /> work classes, and benchmarking of positions. Through the analysis of the longevity pay as well <br /> as previous wage analyses, a number if pay plan issues have been identified. It has been <br /> discussed that these pay plan issues may be the result of a static pay plan structure in a dynamic <br /> market. To maintain the integrity of a static pay plan in a dynamic market, the pay plan needs to <br /> be reviewed every few years. This pay plan is going on 4 years and is due to be reviewed. <br /> Typically in midyear Minnesota Municipal Utilities Association conducts an extensive wage <br /> survey of water, wastewater, gas, and electric municipal utilities within Minnesota. American <br /> Public Power Association typically has wage data available around the same time. An analysis <br /> on the pay plan can be conducted after this information is available. <br /> Longevity pay can be an effective way to compensate employees for institutional knowledge and <br /> promote employee retention. Longevity pay essentially works like pay grade steps extending <br /> farther into a career. This type of incentive works better applied across the board. The concerns <br /> that non-lineworker positions would not need longevity pay because there is not currently <br /> employee turnover in those positions is justification to review the pay plan. Fixing the root of <br /> the problem would be better in the long run rather than using longevity pay as a corrective <br /> adjustment for specific positions. <br /> ACTION REQUESTED: <br /> Staff recommends tabling the consideration of longevity pay, giving direction for a review of the <br /> pay plan, and directing staff to bring back the results of the pay plan analysis with longevity pay <br /> information later in 2013. <br /> Oft,SA i P0u/�EAEDIT <br /> I. Page 2 of 2 'POWERED <br /> Reliable Public <br /> Power Provider P OWERED To SERVE <br />