5.4. ERMUSR 06-16-2015 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:
June 16, 2015 5.4
SUBJECT:
Wage & Benefits Committee Update
BACKGROUND:
On April 14, 2015, the W&BC met to review some 2015 personnel changes due to retirements,turnover,
and growth. During this review it was identified that adjustments were likely warranted for the Customer
Service Manager position due to growth in responsibilities relating to the new billing software. Further
evaluation was needed for review at a later date.
DISCUSSION:
On June 12, 2015,the W&BC met to follow up and review the position points for the Customer Service
Manager position as well as review commissioner compensation and Electric Technician certification
requirements.
Customer Service Manager
Upon review of the position points, it was determined that points in three of the five job evaluation
system categories used for the ERMU pay plan should be adjusted. The scope of decision making for this
position has expanded beyond department focus to include some judgments involving multi-department
policy interpretation. Similarly, thinking challenges and problem solving related to this position have
become more complex relating to broad operating policy. Interaction and communications relating to this
position have grown beyond department focus to include intergovernmental and external representation of
ERMU direction and message.
The growth of this job position occurred during the transition to the billing software,but was also
apparent with the authority and responsibility relating to billing city services. The implementation of a
city franchise fee and storm water utility involved significant decision making authority from this
position. The revamping of the garbage and recycling programs also involved a higher level of decision
making that the position previously had. These city services also require a greater level of authority to act
on behalf of ERMU with our outside vendors. This position will play a significant role in the
communication and decision making associated with the customer account data migration from the
upcoming electric service territory acquisition.
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The review of these changes in this position,applied with the job evaluation system,result in a change in
points shifting from a pay grade five in the manager pay plan group to a pay grade seven. It is well
understood that the number of direct reports and quantity of work load do not directly factor into the job
evaluation system calculations in the pay plan. However, observation is that the proposed change is
consistent with other departments with consideration for size and work load. This is also consistent with
market as well.
Commission Compensation
At a previous commission meeting the commission requested that staff look into the commission pay
level. At a subsequent commission, legal counsel updated the commission that changes to the base
commission monthly stipend would require council approval.
Staff has reviewed 2014 data collected by Minnesota Municipal Utilities Association. The data included
information from Shakopee Public Utilities, a municipal utility very similar to ERMU. The Shakopee has
commission compensation structured differently than other commissions with levels related to
responsibility. The W&BC discussed conducting a more detailed survey of the Minnesota Municipal
Power Association utilities,which includes Shakopee,to determine if there is justification to propose
changes to the current compensation levels. If determined that a change is justified, the W&BC would
bring that back for commission consideration in the budgeting process with council approval needed prior
to 2016.
Electric Technician
A request was made by an employee to evaluate how certifications are compensated for. Specifically,
ERMU employees a master electrician and has registered that license. The license is required when
ERMU works on the ball field lights or street lights which are behind the meter for the City of Elk River.
The license is not used to take market share away from local electricians. This employee is not being
compensated for the use of the license but the fees associated with maintaining the license are being paid
for by ERMU. The license is not a requirement of the position either. However,this is something that
ERMU needs to have in house.
The rapid change in technology will greatly impact the future of the Electric Technician position as well
as the Technical services department. This position dealt with mechanical meters and overcurrent
protective devices only a few short years ago. More recently,the industry has computerized and so is
ERMU. Similar to the lineworker's in-house apprentice training program managed through MMUA, we
now have a Meter Technician and a Substation Technician apprentice programs available. Currently two
employees in the Technical Services department have entered into theses apprentice programs. These
programs will become a requirement going forward.
The W&BC agreed that there is justification to further evaluate the request regarding compensation for
the master electrician license,review the apprentice programs as a part of the minimum requirement for
the position, and review the market. The W&BC will bring the results to the commission at a future date.
ACTION REQUESTED:
The W&BC recommends the Commission approve adjusting the Customer Service Manager pay grade to
level 7 of the manager pay group.
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