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Mr. Fritsch with Current Compass was in attendance and provided some background on his <br /> experience in the utility business. Mr. Fritsch presented the compensation study as <br /> outlined in his report. Current Compass had several recommendations based on findings, <br /> analysis, and their experience with utility compensation. Mr. Fritsch walked through each <br /> of the recommendations. Following his presentation, Mr. Fritsch asked the Commission if <br /> they had any questions or comments. <br /> Commissioner Stewart stated that she had a few comments she would like to share. She <br /> said that based on her previous work experience and working closely with human <br /> resource (HR) individuals and market comparisons, using a top five salary comparison is <br /> not typical. She explained the importance of also taking into consideration details such as <br /> revenue size, customer size, amount of services, and complexity of job responsibilities, to <br /> help ensure an apples to apples comparison. Commissioner Stewart shared that she <br /> supported the recommendation of hiring an HR Manager, and noted the benefits of <br /> having someone in house. <br /> Commissioner Bell agreed that other factors besides salary should be considered for the <br /> market comparison; he noted size of utility and geographical location as important <br /> factors. Commissioner Bell agreed that the addition of an HR Manager is an excellent idea. <br /> He also commented that increasing the compensation on positions that are below market <br /> within a two-year time period may be aggressive. <br /> Commissioner Westgaard asked for further clarification on the philosophy of using a <br /> salary range of 85%to 120%of midpoint; the midpoint being defined as fully qualified. <br /> Mr. Fritsch responded. Commissioner Westgaard had some additional questions regarding <br /> the top five municipals that were used for benchmarking the positions, and wanted to <br /> know if there was any consideration given to length of time in the position or <br /> geographical location. He stated if not, it skews the numbers. Mr. Fritch responded that <br /> the American Public Power Association (APPA) data did take into account region and <br /> population, while the Minnesota Municipal Utilities Association (MMUA) data did not. <br /> There was discussion. <br /> Chair Dietz stated that in his opinion we really only have issues with five positions;the General <br /> Manager, Electric Superintendent,Technical Services Superintendent, Finance&Office <br /> Manager, and Assistant Electric Superintendent. As for the compression issue with the Electric <br /> Superintendent and the Assistant Electric Superintendent, Chair Dietz thought that it may be a <br /> good idea to consider adding the Operations Director(COO) position.There was discussion on <br /> how this would impact the current organizational structure, and discussion on succession <br /> within that department. <br /> Chair Dietz noted that when considering any adjustments in pay to the Technical Services <br /> Superintendent position, it would be important to take into consideration that this position <br /> typically requires a four-year degree,which the person currently in the position does not have. <br /> Elk River Municipal Utilities Commission Meeting Minutes <br /> July 9, 2019 <br /> Page 3 <br />