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2.7. ERMUSR 12-16-2014 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 greater than 80.00 or the T-test Results Value of T is less than 1.684. Our noncompliance results were 56.47, and 3.355, respectively, and our compliance results were 56.47 and 1.536, respectively, (passing on the T-test Result). ACTION REQUESTED: Staff recommends that the Elk River Municipal Utilities Commission approve this proposal for compliance in pay equity report filing for 2014 by increasing the range of pay for the top pay grade. ATTACHMENTS: • Pay Equity Non-Compliance Report • Pay Equity Compliance Report r0 / FRED 01 Page 2 of 2 NATURE Reliable Public Power Provider P O W E R E D T O S E R V E 52 Compliance Report Jurisdiction: Elk River Municipal Utilities Report Year: 2015 13069 Orono Parkway Case: 5-2014 status Sept(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, Ill 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 17 6 1 24 #Employees 27 11 2 40 Avg.Max Monthly 6,855.17 4,800.97 6,061.06 Pay per employee II.STATISTICAL ANALYSIS TEST A. Underpayment Ratio= 56.47* Male Female Classes Classes a.#At or above Predicted Pay 9 1 b.#Below Predicted Pay 8 5 c.TOTAL_ 17 6 d.%Below Predicted Pay 47.06 83.33 (b divided by c=d) *(Result is%of male classes below predicted pay divided by%of female classes below predicted pay.) B. T-test Results Degrees of Freedom(DF)= 36 Value of T= 3.355 a.Avg.diff. In pay from predicted pay for male jobs= $25 b.Avg.diff.in pay from predicted pay for female jobs= ($115) III.SALARY RANGE TEST= 96.29 (Result Is A divided by B) A. Avg.#of years to max salary for male jobs= 4.76 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) 53 v o % (o r > co O tl 0 v. e— ) "L3 N a. • I O o N N- .0 0 0 = O To O 03 a v-- t0 '3 cm .0 N = � a'0 .- r y 0 m Q. x^ a, 6 16 as o Lo E, ■ o c .° N co a a ell • _a c a A 0 as a E 2 o li :5 "ii O IN CD 1 1 1 c 0 0 :P- o a3 NI- c 0 0 "'' 0 ( c 1 00 • I N 0 0 0 0 0 0 0 0© 0 0 0 0 Cr) CO N- (O IS) 'V' CO AieIeS Compliance Report Jurisdiction: Elk River Municipal Utilities Report Year: 2015 13069 Orono Parkway Case: 6-2014 status Dec proj (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, Ill 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 17 6 1 24 #Employees 27 12 2 41 Avg.Max Monthly 6,723.73 4,654.38 6,091.11 Pay per employee II.STATISTICAL ANALYSIS TEST A. Underpayment Ratio= 56.47* Male Female Classes Classes a.#At or above Predicted Pay 9 1 b.#Below Predicted Pay 8 5 c.TOTAL 17 6 d.%Below Predicted Pay 47.06 83.33 (b divided by c=d) *(Result is%of male classes below predicted pay divided by%of female classes below predicted pay.) B. T-test Results I Degrees of Freedom(DF)= 37 Value of T= 1.536 a.Avg. duff. in pay from predicted pay for male jobs= $13 b.Avg. diff, in pay from predicted pay for female jobs= ($96) 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) 55 et. o o ♦ • (00 g rn • • >. co 0 Q- o `[7 tt '6 P. a' 0 0 N v- . 51 .0 0 O M W3 O m N a 'C •• o . a 4 d X ro 0. -01 in v in 0 . R coo 0 o • .0 cu 2 ° o s A 0 aco u O mi o u' ;.J o a. o c 0 0 0 U asa M 71 t o • 1 • o N o 0 0 00 0 0 0 0 0 0 0 N 0 0) Qo 1- (o in d' M - e- r AMPS