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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office <br /> John Dietz, Chair Manager <br /> Allan Nadeau,Vice-Chair <br /> Daryl Thompson, Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> February 10, 2015 2.4 <br /> SUBJECT: <br /> 2015 Pay Equity Report <br /> BACKGROUND: <br /> Local Government Pay Equity Act,M.S. 471.991-471.999 and Minnesota Rules, Chapter 3920 <br /> requires local jurisdictions to submit a pay equity report to the State of Minnesota every three <br /> years. The basis of the reporting requirement is to ensure that male and female employees are <br /> fairly compensated for comparable work. To determine this pay equity,jobs are assigned a point <br /> value that is compared to the gender and wage of the employee(s) and a statistical analysis is <br /> performed. The filing requirement is done online (which is also where the statistical analysis is <br /> performed) and is summarized in a one-page Compliance Report, which needs to be brought to <br /> the governing body for approval. 2012 was the last time that we filed, and our 2015 report was <br /> due January 31, 2015, which reports payroll information as of December 31, 2014. <br /> DISCUSSION: <br /> There are two statistical tests used to determine compliance, an Underpayment Ratio, and a T- <br /> test. To be in compliance, an Underpayment Ratio of 80.00 or above must be met. If this ratio is <br /> too low, a low enough T-test result must be met in order to be in compliance. Our calculated <br /> Underpayment Ratio is 56.47, and our T-test result is 1.536 (which needs to be lower than <br /> 1.697.) Therefore, we are out of compliance by the first test,but in compliance with the second <br /> test. If you will recall, we were monitoring compliance throughout 2014 with the Wage and <br /> Benefits Committee. In December 2014 the Commission approved the pay range adjustment <br /> resulting in the compliant report test results above. Attached is the 2015 Compliance Report we <br /> filed and a copy of the Notice we are required to post. <br /> ACTION REQUESTED: <br /> Staff recommends that the Elk River Municipal Utilities Commission approve this pay equity <br /> report filing for 2015,per state requirements. <br /> PxONEREO BY <br /> NATURE <br /> Reliable Public P O W E R E D T o S E R V E <br /> Power Provider <br /> 50 <br />