5.4. ERMUSR 02-14-2012Elk 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
There are some different options that we can consider for compliance and I would like to propose that we
have the wage committee gather and review the online filing system and inputs, look at various options,
discuss the implications, and bring a recommendation back to the commission.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission approve this pay equity report filing
for 2012, per state requirements. Staff further recommends that the wage committee work to provide
recommendations for becoming compliant.
Compliance Report
Jurisdiction: Elk River Municipal Utilities Report Year: 2012
13069 Orono Parkway Case: 1 - 2012 DATA (Private (Jur Only))
PO Box 430
Elk River MN 55330
Contact: Theresa Slominski Phone: (763) 441-2020 E-Mail: tslominski@elkriverutilities.com
The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information
from your pay equity report data. Parts II, III and IV give you the test results.
For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports.
I. GENERAL JOB CLASS INFORMATION
Male Female Balanced All Job
Classes Classes Classes Classes
# Job Classes 16 4 1 21
# Employees 25 9 3 37
Avg. Max Monthly
Pay per employee 5,941.35 4,289.17 5,446.68
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 75.00 "
Male Female
Classes Classes
a. # At or above Predicted Pay 7 1
b. # Below Predicted Pay 9 3
c. TOTAL 16 4
d. % Below Predicted Pay 56.25 75.00
(b divided by c = d)
'(Result is % of male classes below predicted pay divided by % of female c lasses below predicted pay.)
B. T-test Results
Degrees of Freedom (DF) = 32 Value of T = 1.790
a. Avg. dill. in pay from predicted pay for male jobs = $7
b. Avg. dill. in pay from predicted pay for female jobs = ($82)
III. SALARY RANGE TEST = 100.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 5.00
B. Avg. # of years to max salary for female jobs = 5.00
IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A)
A. % of male classes receiving ESP 0.00
B. % of female classes receiving ESP 0.00
"(If 20% or less, test result will be 0.00)
Print and Post This Notice
Posting date: // j l~Z~`
Jurisdiction Name: ~~~~ K/VGY /VIG(~GL/Ct`OGt,~ ~%1(l f7~l,s
NOTICE
2012 Pay Equity Report
This jurisdiction is submitting a pay equity implementation report to Minnesota
Management & Budget as required by the Local Government Pay Equity Act, Minnesota
Statutes 471.991 to 471.999. The report must be submitted to the department by January
31.2012.
The report is public data under the Minnesota Government Data Practices Act, Minnesota
Statutes, Chapter 13. That means that the report is available to anyone requesting this
information.
This notice is being sent to all union representatives (if any) in this jurisdiction. In
addition, this notice must remain posted in a prominent location for at least 90 days from
the date the report was submitted.
For more information about this jurisdiction's pay equity program, or to request a copy of
the implementation report, please contact:
7-/~--@s a. c1 Yam i n.ck~-
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i3 a ~ 9 Oran ~ f~,~wN ~, Ml~~
7G3- `~'~/-LOZO
(local contact person's name, address, telephone)
For more information about the state pay equity law, you may contact:
Pay Equity Coordinator
Minnesota Management & Budget
400 Centennial Office Building
658 Cedaz Street
St. Paul, MN 55155