2.6. ERMUSR 01-09-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski—Finance & Office Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 9, 2018 2.6
SUBJECT:
2018 Pay Equity Report Filing
ACTION REQUESTED:
Approve 2018 pay equity report filing,per state requirements.
BACKGROUND:
The Local Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter
3920 require 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. 2015 was the last time that we filed, and our 2018 report is due
January 31, 2018, which reports payroll information as of December 31, 2017.
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 85.56, and our T-test result is .963 (which needs to be lower than 1.684.)
Therefore,we are in compliance by the first test. If you will recall, we were monitoring
compliance throughout 2017 with the Wage and Benefits Committee. Attached are the 2018
Implementation Report, 2018 Compliance Report, and the 2018 Predicted Pay Chart we will file;
as well as a copy of the Notice we are required to post. Approval from the governing body is
required to submit a report, and so the report and action request is presented here for such
approval.
ATTACHMENTS:
• 2018 Pay Equity Implementation Report
• 2018 Pay Equity Compliance Report
• 2018 Pay Equity Predicted Pay Chart
• 2018 Pay Equity Notice posting
Page 1 of 1
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Pay Equity Implementation Report 1/3/2018
Part A:Jurisdiction Identification
Jurisdiction:Elk River Municipal Utilities Jurisdiction Type: Utility
13069 Orono Parkway
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 Municipal Utilities Office
system was used for all classes of employees.
(prominent location)
The system used was:
informing employees that the Pay Equity
Description: Riley, Dettmann&Kelsey, LLC Implementation Report has been filed and is
Job 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 0 Checking this box indicates the following:
-signature of chief elected official
-approval by governing body
$3,394,987.93 -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: 1/9/2018
39
Compliance Report
Jurisdiction: Elk River Municipal Utilities Report Year: 2018
13069 Orono Parkway Case: 3-2017 Feb Status wkg cpy(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, III 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 18 7 1 26
#Employees 28 14 2 44
Avg. Max Monthly 7,283.13 5,317.51 6,570.59
Pay per employee
II.STATISTICAL ANALYSIS TEST
A. Underpayment Ratio= 85.56 *
Male Female
Classes Classes
a.#At or above Predicted Pay 7 2
b.#Below Predicted Pay 11 5
c.TOTAL 18 7
d. % Below Predicted Pay 61.11 71.43
(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)= 40 Value of T= 0.963
a.Avg.diff. in pay from predicted pay for male jobs= $17
b.Avg.diff. in pay from predicted pay for female jobs= ($47)
III.SALARY RANGE TEST= 95.56 (Result is A divided by B)
A. Avg.#of years to max salary for male jobs= 4.78
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)
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NOTICE
•
2018 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 by
January 31, 2018.
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:
Vitt-Pi-Pt, sI -,
/3 06 9 Or-apo
1103 - '/9/ --2020
(local contactperson'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
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