2.7. ERMUSR 12-16-2014 - Laserfiche WebLink

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L-4- -- Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Name—Theresa Slominski, Finance and Office John Dietz—Chair Manager Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: Date December 16, 2014 2.7 SUBJECT: Review and Approve Pay Equity Compliance BACKGROUND: In January 2015 we will be required to file our 2013 Pay Equity Compliance Report,per Local Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter 3920 requiring local jurisdictions to submit a pay equity report to the State of Minnesota every three years. The Wage and Benefits Committee has reviewed the information that would be filed as of 12/31/2014 and has determined that we would be out of compliance, however has identified a proposal to bring us back into compliance without any immediate pay awards. DISCUSSION: The wage committee met this fall and reviewed the pay equity compliance reporting pro-actively to identify any issues early enough to implement any corrective measures by year end. A number of different scenarios were examined and the proposed scenario involves making a range change but has no effect on any pay to be awarded or changed in order to bring us into compliance. When the current General Manager was hired it was determined that the pay would be separate from the rest of the pay scale and would be reviewed annually with the performance review process. The General Manager position currently is in a separate pay grade from the rest of the pay plan with a set pay at the top step. This is different from the rest of the plan and positions that have increasing pay grades, and related step increases of 1 through 5,based on the Riley, Dettmann&Kelsey Job Evaluation System. In treating the pay for this position as a separate item, and without a range, it arbitrarily limits the pay scale of the plan when evaluated as a whole through pay equity. By assigning a range instead of a cap, we are able to bring the plan into compliance without adjusting anyone's pay. It leaves the possibility for a pay increase to be awarded, or not, at a future date and still have plan compliance. I have attached the reports for the non-compliance and compliance scenarios for your review. As a reminder, compliance is achieved when the Statistical Analysis Test's Underpayment Ratio is IIE PYOwEIED 11 Page 1 of 2 NATURE Reliable Public Power Provider P O W E R E D T o S E R V E 51