2.2 EMRUSR 12-10-2024 - Laserfiche WebLink

Home Browse Search

5.07 Wage & Benefits Committee Proposals Mr. Hanson presented his memo beginning with the information only topics of the Annual Wage Adjustment Process and how it is calculated for Commission approval. He then reviewed the revised organizational chart. During discussion of the wage adjustment, Chair Dietz expressed his preference that the Commission retain the ability to differentiate wage adjustment based on the respective groups within staff; lineworker, non-lineworker field, office, and managers. There was discussion. Chair Dietz stated his perspective that the increase should not include the peer utility's 2025 pay step increase which brough the average from the 3.85% reviewed by the Wage & Benefit Committee to 4.54%, explaining his stance that ERMU's wage adjustment should only calculate other wage adjustments, not wage step increases. Commissioner Westgaard sought clarity on the rationale for including the step increase. Mr. Hanson explained that the stated goal of the compensation study approved earlier in the year was to set staff pay at 2% above the median; including the step increase maintained that rate. He went on to explain that had the peer utility provided the step increase a year earlier it would have been calculated in the compensation study. There was discussion about how increases are captured over the cycle of rate calculations year to year. Mr. Hanson provided context on how the adjustment is calculated, explaining the rates of lineworker pay across the peer utilities is gathered and the average percent change is what is presented for approval to the Commission. Commissioner Bell stated his opinion that step increases should not be included in the calculation. There was discussion. There was consensus to select a point between 3.85% and 4.54% for the wage adjustment. Moved by Chair Dietz and seconded by Commissioner Westgaard to set a 2025 wage adjustment of 4.0% for all staff. Motion carried 5-0. Mr. Hanson handed out a spreadsheet with a proposed tiered payout system (standard goal, stretch goal) and blue -highlighted changes for the Utilities Performance Metric Incentive Compensation (UPMIC) policy. The spreadsheet also featured five years of calculations showing ERMU's hypothetical completion rate based on the new tiers and standards. Mr. Hanson highlighted bottom line numbers which show an increase in percentage every year since 2019 if the proposed standards had been in place. Mr. Elk River Municipal Utilities Commission Meeting Minutes November 12, 2024 Page 5 34