3.2 ERMU MINUTES 09-08-2009 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission August 11, 2009 4.1 Review and Consider Salary Structure Study At the August 12, 2008, Elk River Municipal Utilities Commission meeting, the Commission authorized Riley, Dettmann & Kelsey, LLC, to perform a salary structure study similar to the study they had performed for the City of Elk River. The purpose of this study was to ensure internal equity within ERMU's pay structure between the different positions and pay grades, and also meet the pay equity requirements. ERMU employees filled out Job Description Questionnaires (JDQ's). From these JDQ's, Rod Kelsey established points for each position and point ranges that were based on Riley, Dettmann & Kelsey, LLC's job evaluation system. Under the direction of the ERMU Commissioner John Dietz, the City of Elk River staff has generated proposed salary ranges for ERMU employees based on the proposed Job Evaluation Summary. John Dietz reviewed the Job Evaluation Summary outlining the proposed positions, point ranges, and future step changes. Troy Adams and Wade Lovelette's new positions were evaluated and will receive retroactive pay back to April 1, 2009. John Dietz stated that if the Commission approves the salary range study, they would also need to determine what step in the pay scale to place Troy Adams and Wade Lovelette. John Dietz also commented that some of the positions' pay ranges increased while others are currently higher than the top of the ranges proposed in the new pay plan. He proposed that to even out the pay structure and adjust the wages for those currently being paid more than the top of the new pay range, that those particular individuals be given 2/3 of any future pay increase until their pay matches the top of their pay grade. Based on current projections it will take four to seven years for those individuals to come back into compliance with the top of their pay class. John Dietz also addressed the step plan process for employees moving between steps stating that no pay adjustments would be made now. Instead, employees would be placed in their appropriate pay range by slotting in their current pay where ever it fell in the pay plan. More employees would fall in between two steps. At the employee's anniversary date of employment, the employee would move up the equivalent of one step. For instance, if an employee's current pay was $500 above Step A, on his or her anniversary date he or she would move up to Step B plus $500. Lori Johnson explained the process used to develop the pay plan. She stated it was developed based on the top pay, which was determined after discussion between Riley, Dettmann & Kelsey, LLC, and Commission President John Dietz. The bottom pay was taken from the current ERMU pay plan. The other pay grades were placed in between the previously detemmined top and bottom pay. The direction given was to set the top of the pay grades so they matched existing pay as closely as possible. The main intent of the plan is to maintain internal equity within ERMU's positions and pay grades. The proposed pay plan as presented meets the State's pay equity requirement and passes the pay equity test. Troy Adams commented that since his position is new and with changes in the industry he would like his position and salary range to be re-evaluated in two to three years. Daryl Thompson asked what would happen if Troy's position was raised to a higher pay grade. Lori Johnson stated the point structure would still be in place so if he received more points the