5.7. ERMUSR 04-14-2009Elk River -=~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
Apri17, 2009
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
Subj: Review and Consider the 2009 Wage Request
5.7
Phone: 763.441.2020
Fax: 763.441.8099
In years past, the employees of Elk River Municipal Utilities would attend the April Utility
Commission meeting to present an annual wage proposal. Due to technicalities in this practice,
it has been recommended by the attorneys of Gray Plant Mooty that ERMU management present
the employee wage proposal this year and reevaluate the process for the future.
Submitted for Commission review is the attached metro survey of seven area utilities and the
2009 wage proposal as prepared by the employees.
Of the seven utilities surveyed, Connexus and North St. Paul are still in general negotiations.
Making a very conservative assumption that both Connexus' and North St. Paul's labor
negotiations would agree to a 0% wage increase for 2009, the resulting metro average for a
Lineperson would be $34.63. The ERMU Lineperson pay class would need to increase 2.78% to
maintain this metro average. If Connexus' and North St. Paul's labor negotiation both agree to a
3% wage increase for 2009, the resulting metro average for a Lineperson would be $34.92. The
ERMU Lineperson pay class would need to increase 3.64% to maintain this metro average.
It is likely that when the labor negotiations are done, the metro average would fall closer to the
latter. This said, the employees have submitted for Commission consideration a wage proposal
requesting a more conservative increase of 2.78%.
Elk River ,~,_
Municipal Utilities
2009 Wage Proposal
Elk River Municipal Utilities employees are requesting a
2.78% wage increase as to the attached lineman wage
survey to keep up with the metro average wage pay scale.
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Benefit Comparison-Feb 2009
~--~~ S, ~
City of Elk River Elk R v `1 I I~Ic~ ~~~'~~-S
I er Municipal Ulllilies
Health and Dental Insurance Health and Dental Insurance
Single Single +1
$25 copay plan Family Slnyle Single +1 Family
City cost/month 438 640 860 ERMU cosUmonlh 424.65 890
63 1336
65
Employee cost/mo. 96.48 488.68 826.92 .
.
Employee cosUrno. 106.16 222.66 334
16
Cost to City per hour 2.53 3.69 4.96 .
Cosl to ERMU/Dour 2.45 5.14 7.71
$500 Deductible plan
City cost/monlh 438 640 860
Employee cosU-no. 36.83 358.12 629.75
$2300 HDHP Plan
City cost/month 407.46 640 860
Employee cosUrno. 0 200.83 392.2
Sick Pay Benefit
8 hours/rno. At severance, employees with more than 8 hours/rno. Maximum accumulation of 960 hours.
two years of service yet 50% of blance to a max imum Hours unused over 960 In a given year are contributed
of 480 Fours.
.~~I ~ Inl..~~ll i11P~P at 50% to Flealllr Savings Account.
Life Insurance
$25,000 coverage. Employee pays $4.50/rrro. Insured for 2.5 times salary. ERMU pays
$18.70/mo./ employee ($.11/hour)
Disability Insurance
,
None Long lerrn disability.ERMU cost is $1290.52
per month (about $37 per employee).
Contribution to.Pension Plan .._...
Other than PERA, none ERMU matches employee contributions up
to 3% of base salary, capped at $2000.
11 Paid Holidays- ~11 Paid Holidays-One paid personal day.
Vacation Schedule
0-5 years 11 days 16-17 yrs 19 days 0-3 years 10 days 11 years 17 days
6-7 years 14 days 18 years 20 days 4 years 12 days 12 years 18 days
8-9 years 15 days 19 years 21 days 5 years 13 days 13 years 19 days
10-11 yrs 16 days 20 years 22 days 6-9 years 15 days 14-18 yrs 20 days
12-13 yrs 17 days 21 years 23 days 10 years 16 days 19+ years 25 days
14-15 yrs 18 days 22+ years 24 days