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would result in a reduction in 2017 COLA,the Committee does not support this benefit <br /> addition at this time. <br /> COLA and Market Adjustment—John Dietz shared that the W&BC had done some wage <br /> benchmarking for the lineworkers group. The wage survey results indicated a 2.75% <br /> increase trend in lineworker pay for 2017. John noted that this is higher for the lineworker <br /> group than other benchmarked positions. He shared that after much discussion from the <br /> Committee, the consensus of the Committee was to recommend between a 2%to 2.5% <br /> COLA for all four pay groups, and a market adjustment in addition to the COLA to bring <br /> the lineworker group to a total increase of 2.75%. <br /> Salary Compression—Due to salary compression from past market adjustments for the <br /> lineworker pay group it had been identified last year that the lineworker pay group has been <br /> compressed with the manager pay group. John provided some examples specifically related <br /> to the lineworker group and the Electric Superintendent and Assistant Electric <br /> Superintendent.John shared that the Committee had discussed benefit options for the <br /> manager pay group that would help relieve the salary compression. The option they came <br /> up with was that the manager pay group receives an additional 40 hours vacation annually <br /> which would be separate from the vacation already earned per the existing policy. If <br /> unused by the end of the year it was issued,the balance of this additional 40 hours vacation <br /> would covered at 100%base rate wage and paid out to the employee. John informed the <br /> Commission and the W&BC,that after further consideration he was not in favor of <br /> recommending this additional benefit for all of the managers; only the Electric <br /> Superintendent and the Assistant Electric Superintendent. John explained the rationale <br /> behind his decision. There was discussion on the additional benefit for just the two <br /> managers and what the ramifications would be in doing so. Peter Beck recommended <br /> running this past the employment attorney to ensure the legality in doing so. <br /> Daryl Thompson asked staff if they knew what the cost-of-living was. Staff responded <br /> 1.5%. After discussion, consensus of the Commission was a 2.25%COLA for all four pay <br /> groups, a .50%market adjustment in addition to the COLA to bring the lineworkers group <br /> to total increase of 2.75%, and an additional 40 hours vacation for the Electric <br /> Superintendent and Assistant Electric Superintendent. <br /> Daryl Thompson made a motion to approve a 2017 COLA of 2.25% for all four pay <br /> groups, a .50% market adjustment in addition to the COLA for the lineworker group, <br /> and an additional 40 hours vacation annually with an option for an annual payout at <br /> 100% if unused during the calendar year for the Electric Superintendent and the <br /> Assistant Electric Superintendent; pending review from legal counsel. Al Nadeau <br /> seconded the motion. Motion carried 3-0. <br /> 4.2 2017 Budget and Rates <br /> Troy Adams presented the 2017 Budget. Troy shared that we had received favorable news <br /> on the 2017 wholesale power rate increase from Great River Energy(GRE) which results <br /> Page 3 <br /> Regular Meeting of the Elk River Municipal Utilities Commission <br /> December 13,2016 <br /> 26 <br />