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