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2.4. ERMUSR 02-10-2015 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office John Dietz, Chair Manager Allan Nadeau,Vice-Chair Daryl Thompson, Trustee MEETING DATE: AGENDA ITEM NUMBER: February 10, 2015 2.4 SUBJECT: 2015 Pay Equity Report 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 needs to be brought to the governing body for approval. 2012 was the last time that we filed, and our 2015 report was due January 31, 2015, which reports payroll information as of December 31, 2014. 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 56.47, and our T-test result is 1.536 (which needs to be lower than 1.697.) Therefore, we are out of compliance by the first test,but in compliance with the second test. If you will recall, we were monitoring compliance throughout 2014 with the Wage and Benefits Committee. In December 2014 the Commission approved the pay range adjustment resulting in the compliant report test results above. Attached is the 2015 Compliance Report we filed and a copy of the Notice we are required to post. ACTION REQUESTED: Staff recommends that the Elk River Municipal Utilities Commission approve this pay equity report filing for 2015,per state requirements. PxONEREO BY NATURE Reliable Public P O W E R E D T o S E R V E Power Provider 50 ATTACHMENTS: • 2015 Pay Equity Compliance Report • Pay Equity Report Notice • INPXerEeEO er INURE Reliable Public P O W E R E D T O S E R V E Power Provider 51 Pay Equity Implementation Report 1/15/2015 Part A:Jurisdiction Identification Jurisdiction: Elk River Municipal Utilities Jurisdiction Type: Utility 13069 Orono Parkway PO Box 430 Elk River MN 55330 Contact: Theresa Slominski Phone: (763)441-2020 E-Mail: tslominski @elkriverutilities.com Part B:Official Verification 1. The job evaluation system used measured skill,effort 3. An official notice has been posted at: responsibility and working conditions and the same Elk River Muncipal Utilities Offices system was used for all classes of employees. (prominent location) The system used was: Consultant's System informing employees that the Pay Equity Description: Riley, Dettman,&Kelsey LLC Job Implementation Report has been filed and is Evaluation System available to employees upon request. A copy of the notice has been sent to each exclusive representative,if any,and also to the public library. The report was approved by: Elk River Municipal Utilities Commission 2. Health Insurance benefits for male and female classes of (governing body) comparable value have been evaluated and: John Dietz There is no difference and female classes are not at a (chief elected official) disadvantage. Commission Chair (title) Part C: Total Payroll © Checking this box indicates the following: -signature of chief elected official -approval by governing body $2,840,075.92 -all information is complete and accurate,and -all employees over which the jurisdiction has is the annual payroll for the calendar year just ended final budgetary authority are included December 31. Date Submitted: , 01/15/2015 I 52 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 4,854.38 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 Degrees of Freedom(DF)= 37 Value of T= 1.536 a.Avg.diff.in pay from predicted pay for male jobs= $13 b.Avg.diff. in pay from predicted pay for female jobs= ($96) Ill.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) 53 & 0 ♦ C >, ai o a- o -0 10 El? a. • I 0 0 N to .0 m r a) 0 To O a To 1 m 0 N_ d C • C U _ o O c 7 x a W W al � L. , o v- e N co 0 'L • ,0 c a c V O a ccU I F a (.0 j i t, c a 0 o V C n . c O o °) U GP c o • � N 0 O O O 0 0 CD 0 0 N 0) CO` d' Cr x- e- r IeIBS Posting date: f 612.0 Jurisdiction Name: em V4a'' f (,t,�2/G/�Q(,l '/•61 � NOTICE 2014 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, 2014. 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: Jl6.4141 d• 43069 Ors pkwy) bk ,1 vf,MN 143- 435-/326' (local contact person's name, address, telephone) For more information about the state pay equity law,you may contact the Pay Equity Office at: pay.equity@state.mn.us Pay Equity Office Minnesota Management&Budget 400 Centennial Office Building 658 Cedar Street St.Paul,MN 55155 Pay Equity Report Notice— 11/13 55 Page 12