5.2. ERMUSR 11-18-2014 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Wage and Benefits Committee:
John Dietz—Chair John Dietz, Troy Adams, Mark Fuchs, Theresa
Al Nadeau—Vice Chair Slominski
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
November 18, 2014 5.2
SUBJECT:
Wage and Benefits Committee Update: Cost of Living Adjustment
BACKGROUND:
In October 2011,the Utilities Commission formed a Wage and Benefits Committee. The
Utilities Commission created the committee to be comprised of one appointed Commissioner,
currently John Dietz—Utilities Chair, and three Utilities managers, Troy Adams—General
Manager, Theresa Slominski—Finance and Office Manager, and Mark Fuchs—Electric
Superintendent. The intent for the creation was to have the committee review and analyze wage
and benefits information, receive comments and questions from employees relating to wage and
benefits, function as a forum for discussion, and ultimately present select wage and benefit
information to the Utilities Commission for action.
DISCUSSION:
On November 6,the Committee reviewed cost of living adjustments (COLA)numbers from our
market. Although some numbers were still preliminary, the comparable sample indicates some
market stability with all samples falling within a very tight range. The range of the comparable
Municipals sampled runs from 2.0%to 3.5%with the average COLA for the comparable
Municipals sampled falling between 2.75%and 2.88%. The average COLA of the adjacent
cooperatives sampled should fall between 2.80% and 2.88%. The neighboring investor owned
utility will have a 2.5% COLA for 2015. The"metro-average" should fall between 2.71%and
2.79%.
The Committee discussed the recently created pay plan groups which were created to allow
flexibility for the adjusting to the multiple workforce markets. Because of recent corrective
adjustments made, the Committee felt that the pay plan is currently providing market equality for
all four groups. The Committee believes that because of this current equality,the 2015 COLA
should be applied equally to all four pay plan groups.
Because of the work that went into recent pay plan group adjustments, the Committee discussed
maintaining pace with the comparable market trend. This would result in a COLA of 2.75%.
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The preliminary expense budget presented in October reflected a 3% COLA as an estimate. The
difference between the 2.75% and 3% COLA would be an approximate $6,000 impact to the
overall budget.
This year there were not any miscellaneous or additional issues or items brought to
management's attention to be discussed by the Committee. If the Commission would like any
additional information or would like the Committee to research any additional issues,the
Committee would bring that information to the December Commission meeting for consideration
in the 2015 budget. Unless there are significant changes to the market before December, it is
likely the Committee would support a 2.75% 2015 COLA for all four pay plan group to be
approved in December with the 2015 budget.
ACTION REQUESTED:
No action requested.
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