4.2 ERMUSR 07-11-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission ERMU Wage & Benefits Committee
MEETING DATE: AGENDA ITEM NUMBER:
July 11, 2017 4.2
SUBJECT:
Wage & Benefits Committee Update
ACTION REQUESTED:
Approve the organization staffing change to replace the Lead Electrical Technician with the
proposed Distribution Engineer.
BACKGROUND:
The Wage & Benefits Committee (W&BC) was created to help the Commission develop and
maintain a pay plan structure and benefits package. The W&BC also helps the Commission with
succession planning and to review pay equity compliance. The W&BC evaluates and
recommends to the Commission. The W&BC does not have the authority to act without prior
Commission delegation of authority. I
DISCUSSION:
The W&BC met on June 30 regarding two organization staffing issues: the vacant Key Accounts
Specialist position and the retirement announcement from the Lead Electrical Technician.
Key Accounts Specialist: This budgeted position has been vacant since March 2017. Staff
recommended to the Commission that this position remain vacant, if workload permitted, until
an implementation plan for the transition away from load management programs had been
developed and approved by the Commission. In June the Commission approved the direction for
development of this transition plan which now includes moving from load management to time
of use rates and behavior modifying programs.
Another significant variable that directly impacts the filling of this position had been identified
and was presented to the W&BC. Staff is currently working on an initiative for transition from
one billing cycle per month to four billing cycles per month. This multi-billing cycle initiative
will balance call volume and workload for office staff. This may dramatically alter the level at
which the CSRs and Specialists can contribute to addressing conservation program questions on
the phone. Management is optimistic that the multi-billing cycle initiative will positively impact
this workflow.
Because of this workload unknown, management recommended to the W&BC to hold on filling
this position until after multi-billing cycles has been implemented. This is scheduled for late
2017 or early 2018. The anticipated change in office workload and workflow would allow for the
responsibilities and overall position description to be re-evaluated. It was the consensus of the
Page 1 of 2
168
W&BC to not fill the Key Accounts Specialist position at this time and to re-evaluate the needs
and related skill-sets required after the implementation of multi-billing cycles.
Management has held several meetings regarding the current workload levels and has identified
numerous options to manage the workload while this position remains vacant. If the ability to
cover this workload changes prior the implementation of multi-billing cycles, this vacancy would
be re-addressed by the W&BC and then by the Commission.
Lead Electrical Technician: On June 19, ERMU's Lead Electrical Technician provided formal
retirement notice stating his last day would be July 10. This position, the related responsibilities,
and required skills had last been revised when ERMU's current pay plan structure was adopted
by the Commission nearly 10 years ago. This position is a direct report of the Technical Services
Superintendent and part of the Technical Services Department.
The W&BC has discussed the succession planning for this position for three years identifying the
potential for updating the position at the time of a retirement. With the announcement from the
current Lead Electrical Technician,the opportunity to change this position and address
department skill set needs can be accomplished through the hiring process.
W&BC's staff representatives worked with the Technical Service Superintendent to identify
department and company skill sets needed and work load concerns relating to this vacancy.
Those discussions resulted in the consensus that the position should be changed to a Distribution
Engineer. This position change makes it possible to shift and balance system design workload
freeing up the Electric Superintendent and the Assistant Electric Superintendent to focus their
efforts on more leadership responsibilities rather than design tasks. This proposed change would
also allow ERMU to bring in house some engineering analysis work that is currently being
outsourced to consultants. The Technical Services Superintendent believes that the current
workload covered by the Lead Electrical Technician would be able to be covered during the
hiring process and beyond as tasks and workload are balanced and redistributed. The draft
position description was developed by staff and presented to the W&BC receiving consensus
supporting the change.
The proposed change of replacing the Lead Electrical Technician with a Distribution Engineer
does not negatively impact the ERMU pay equity report; we still pass even under the most
conservative hiring scenario. ERMU is not required to file the pay equity report until January
2018.
FINANCIAL IMPACT:
The Finance and Office Manager and the General Manager have analyzed the impact of the
proposed Distribution Engineer on the Commission approved ERMU Pay Plan. Using the
Commission adopted Riley, Dettmann& Kelsey Job Evaluation System, and the changes in the
position result in a change in from Field Group Grade 9 to Field Group Grade 10. The potential
impact to the 2017 budget if a highly qualified applicant were to be hired at the top pay step
would be approximately $3,000 greater than the current position. However, the hiring process
will result in a delay in filing which will produce an approximately saving of$14,000 (w/o
benefit considerations, wages only) for the 2017 annual budget. There is also anticipated
consulting expense savings related to the change. And although a midyear recommendation, this
proposed change has been in discussion for three years.
Page 2 of 2
169