5.4. ERMUSR 02-14-2012 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 www.elkriverutilities. com TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski -Finance and Office John Dietz, Chair Manager Daryl Thompson, Trustee Al Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: Febru 14,2012 5.4 SUBJECT: Review Pa E ui Re ort BACKGROUND: Local Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter 3920 requires local jurisdictions to submit a pay equity report to the State of Minnesota every three years. The basis of the reporting requirement is to ensure that male and female employees are fairly compensated for comparable work. To determine this pay equity, jobs are assigned a point value that is compared to the gender and wage of the employee(s) and a statistical analysis is performed. The filing requirement is done online (which is also where the statistical analysis is performed) and is summarized in a one-page Compliance Report, which also needs to be brought to the governing body for approval. 2009 was the last time that we filed, and our 2012 report was due January 31, 2012, which reports payroll information as of December 31, 2011. Attached is the 2012 Compliance Report we filed and a copy of the Notice we are required to post. DISCUSSION: There are two statistical tests used to determine compliance, an Underpayment Ratio, and a T-test. To be in compliance, an Underpayment Ratio of 80.00 or above must be met. If this ratio is too low, a low enough T-test result must be met in order to be in compliance. Our calculated Underpayment Ratio is 75.00, and our T-test result is 1.790 (which needs to be lower than 1.697.) Therefore, we are out of compliance. In prior years, we have been in compliance. We have had some changes since 2009, including a different job point system, pay plan, and staffing restructure. Some of the staffing changes are listed below: 1) bringing the meter reading in house and adding a meter reader (male) 2) rehiring a (male) maintenance person (previously a female ) 3) bringing the CIP position in house and adding a Conservation & Key Accounts Manager (male) My understanding of the process is that we will receive a notice from the state officially recognizing we are out of compliance and a time period of ninety days (from the date of the notice) to resubmit at report showing compliance. Any changes implemented to become compliant need to happen within thirty days of resubmitting the report. We may get a notice tomorrow and we may get a notice in six months. It would be advisable to begin discussing our compliance plans soon to be ready to respon ~ A /~E A E A pA r A tlf~~UR P O W E 0. F D T O S E R V E