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employee engagement survey and stay interviews as well as observations during recent <br />hiring efforts. Mr. Hanson clarified that a compensation study is different than a cost -of - <br />living adjustment (COLA) in that a COLA is specific to inflation whereas the compensation <br />study looks at wage comparisons for similar positions with similar responsibilities. <br />After reviewing the compensation study, Mr. Hanson presented the compensation study <br />data applied to the 2023 ERMU Pay Study spreadsheet. <br />Commissioner Bell acknowledged that the information presented provided a compelling <br />argument for reviewing employee pay. <br />Commissioner Stewart pointed out that the study didn't articulate the methodology <br />behind the pay scale of each comparable utility. Mr. Hanson replied that all comparable <br />positions followed a similar step process as ERMU. <br />Commissioner Zerwas asked if Mr. Hanson knew what it would cost to have an <br />independent consultant provide a market analysis. Mr. Hanson estimated $30K-$40K. <br />Commissioner Westgaard agreed that a compensation study is needed at this time using <br />an independent consultant. He recommended putting a $133K placeholder in the 2024 <br />budget for the first of Mr. Hanson's three-year distribution plan if the independent study <br />comes in at a similar level. Mr. Westgaard added his perspective that any changes would <br />be retroactive to January 1, 2024. <br />Commissioner Stewart noted ERMU would have to budget for the consultant as well. <br />Commissioner Bell asked if a motion was needed to move forward with finding a <br />consultant. Mr. Shepherd replied that consensus is sufficient at this time. <br />Chair Dietz expressed concern with the comparison utilities in Mr. Hanson's study. <br />Commissioner Stewart replied that the consultant would have expert knowledge in <br />gathering appropriate comparable utilities. <br />Chair Dietz complimented Mr. Hanson on his thorough report but stated his preference <br />for using a third -party consultant. <br />Chair Dietz requested staff bring a recommendation forward for a third -party consultant <br />including a compensation study timeline for commission approval. There was consensus <br />from the commissioners to proceed with finding an independent consultant and <br />budgeting for impacts to the 2024 budget for the consultant fee and possible wage <br />adjustments. <br />5.4 Wage & Benefit Committee Proposed 2024 Adjustments <br />Elk River Municipal Utilities Commission Meeting Minutes <br />October 10, 2023 <br />Page 7 <br />39 <br />