5.2 ERMUSR 07-13-2021 - Laserfiche WebLink

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______________________________________________________________________________ Page 2 of 2 The Committee favored a longevity incentive that is the same dollar amount awarded to all employees, and not dependent on rate of pay. The Committee also considered that we have current long-term employees that we did not want to be negatively affected in implementing a plan now that would have no reward available for them. To minimize this the Committee chose to extend the program beyond 25 years. We reviewed multiple scenarios specific to our employee population and are recommending a longevity plan starting at 8 years of service, increasing in four-year increments, through 32 years of service. The Committee is recommending one-time payments starting at $1,200 with a gradual increase in dollar amounts as the tenure increases, with a maximum of $4,000 at 32 years of service. The dollar amounts would be awarded monthly by handing out a physical check to the employee at the Commission Meeting, with the opportunity for Management and Commissioners to thank the employee for their service. The longevity plan proposed is below: 8 years $1,200 12 years $1,400 16 years $1,600 20 years $2,000 24 years $2,400 28 years $3,500 32 years $4,000 2. Vacation – Currently, the vacation maximum is 25 days, which is reached after 19 years of service. It was requested to change the schedule so that staff earns 26 days in year 20, 27 days in year 22, and 28 days in year 24 (increasing the maximum by 3 days). The Committee reviewed data from the 33 utilities surveyed and was open to increasing the vacation accrual as requested. Additionally, the Committee discussed the recent change to the City of Elk River’s vacation schedule to be more competitive in attracting and retaining talent. That change was 15 days of vacation at the start of employment, through year 5. Utility employees receive 10 days in years 1-3, 12 days in year 4, 13 days in year five, and 15 days in years 6-9. The Committee is proposing to start employees at 12 days of vacation in years 1-4, with years 5-9 remaining the same accrual (15 days). The vacation changes proposed are below: 0-4 years 12 days 20-21 years 26 days 22-23 years 27 days 24+ years 28 days ACTION REQUESTED: The Committee recommends the Commission take the following actions: • Approve Longevity Pay per proposed schedule and amounts. • Approve additional vacation accruals beyond 25 days and change the beginning accrual as proposed. 110