2.2 EMRUSR 08-13-2024 - Laserfiche WebLink

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$135,000. Mr. Hanson estimated that would allow the plan to begin around mid -August. There was no dissent from the Commission. Commissioner Zerwas inquired as to what it would look like to hold the $135,000 budgeted funds to be put towards a January 1, 2025, effective date. Mr. Hanson replied that approach negates the data in the table as it would require the full implementation cost for the first year of the plan with the addition of any wage adjustment. Mr. Hanson restated that the cost advantage in implementing the current step plan in 2024 is the budgeted amount limits the total first year implementation cost to only the last four months of the year. Ms. Towne explained that the cost advantage is due to the one-time cost to change people over to the new plan. She added that wage data is perishable and delaying implementation could mean going from meeting the market to an estimated lag of about 5 percent. There was discussion about how step increases would be initiated going forward; whether they would occur on a calendar year cycle or at the anniversary date as they currently occur. This is to be decided after plan approval. Commissioner Westgaard proposed the Commission consider selecting a market leading plan, with the current step implementation, and an effective date of August 27 based on pay periods and budget calculations. Chair Dietz stated that he was not prepared to vote until he receives more information on the comparable utilities' performance incentive programs. He asked to see a chart of the actual percentage of payout from previous years and be provided details about the other six comparable utilities performance compensation plans. Commissioner Stewart asked the rest of the Commission if they were prepared to vote. Commissioner Zerwas stated he was fine with the August 2024 start to the plan but added that he doesn't want to force a vote if a member does not feel prepared to vote. Commissioner Bell stated he would like to discuss the UPMIC further. Chair Dietz reiterated that he wanted to hear more about other utilities. Ms. Towne again recommended keeping base pay and benefits decisions separate. Commissioner Stewart reminded the group that any changes to the UPMIC could not be made until later in 2024 for a 2025 measurement period, suggesting the UPMIC could be updated even with an approved payment plan. Elk River Municipal Utilities Commission Meeting Minutes July 9, 2024 Page 7 36