5.4 ERMUSR 08-13-2019 - Laserfiche WebLink

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position pay identified in the Current Compass report was related to that difference in minimum position requirements and that the ERMU position's pay did not need to be adjusted at this time. The committee also noted that if the Technical Service Superintendent had interest earning the applicable four-year engineering degree, the committee would support the re- evaluation of that position's pay, but earning the degree would not be required. With consideration for commission's direction regarding "apples to apples" comparison utilities, the committee reviewed a "Muni 7" benchmarking analysis philosophy. This methodology benchmarked ERMU against similar Minnesota municipal utilities with consideration to population, number of meters, services, governance, generation, employee unions, and growth rate. This differs from the Current Compass benchmarking philosophy which compared ERMU management positions to the top five Minnesota salaries regardless of utility similarity. The Muni 7 methodology also intentionally excludes Rochester Public Utilities. The Muni 7 benchmarking identified similar inequities to the Current Compass report; however, the magnitudes of the differences were significantly lower. The results of this benchmark and the potential Utility Performance Metrics & Incentive Compensation (UPMIC) 2% incentive were considered and factored into the recommendations of the committee. The commission also gave direction to develop an implementation plan to add an additional layer of leadership within the existing organizational chart. The consideration of an additional layer of leadership would provide an opportunity to structure ERMU for the future. The committee discussed options and had consensus on a proposed plan to create two director positions: an Operations Director and an Administration Director. The terminology used during the commission meeting was chief operations officer (COO) and chief financial officer (CFO); however, the term director was selected as a better fit for use in the municipal business model. This change to the organizational structure creates pathways within the organization for succession planning, one of the initiatives yet to be completed as a result of the adoption of the new governance policies. This proposed structure allows for the two directors to gain needed cross -departmental experience to be better positioned for succession into the general manager position. And, the director role also creates multiple pathways for the managers to be successors to the director. This structure increased the potential for managers to develop and advance over their careers to potentially fill the general manager position. The proposed change in structure also creates the opportunity to address the pay inequities identified. In the field, the plan to add the director position would be accomplished through the internal promotion of the Electric Superintendent to the Operations Director. The Operations Director would oversee all field operations, including electric, water, and technical services. The Assistant Electric Superintendent was originally created as a temporary succession planning solution in preparation for an anticipated future retirement of the Electric Superintendent. In the proposed plan, the Assistant Electric Superintendent would be promoted to the Electric Superintendent position and the Assistant Electric Superintendent position would be left unfilled indefinitely. Through action of the commission, the proposed organizational restructuring can be done without requirement for posting or interviews. Page 2 of 4 104