06-21-2016 HUCMMINUTES
Special Meeting — Hutchinson Utilities Commission
Tuesday, June 21, 2016
Call to order — 8:00 a.m.
President Luhring called the meeting to order. Members present: President Donna
Luhring; Vice President Monty Morrow; Secretary Mark Girard; Commissioner Anthony
Hanson; Commissioner Robert Wendorff; General Manager Jeremy Carter.
Others Attending: John Webster, Director Natural Gas — Hutchinson Utilities
Commission; Brenda Ewing, HR Director - City of Hutchinson and Ann Antonsen of
Springsted Incorporated.
The purpose of the special meeting was to get feedback from the Commission on the
preliminary summary report of the classification and compensation study which Ann
Antonsen, consultant with Springsted Incorporated, presented.
Forty-two public and private sector organizations from the states of Minnesota, Iowa,
South Dakota and Wisconsin were selected to participate in the compensation and
benefits survey which included the 32 HUC positions. HUC received 22 responses out
of the 42 submitted. Twenty-five were included in the overall analysis. Seven were
excluded due to lack of, or inconsistency in, responses. Results showed RUC's
minimum salaries are 2% above average with minimum midpoints at .2% below market.
Maximum and actual salaries are 1.97% below the market. Industry standards indicate
salaries that are within 5% above or below the market are considered consistent with
the market. Therefore, all of RUC's average relationships are right on target relative to
the market.
After the evaluation, the consultant developed a proposed compensation plan designed
with 22 pay grades and a 6% spread between each grade. The midpoint corresponds
with market mid -point. Each grade has 9 steps with 3% between steps. There are 51 full
time employees at HUC, with 47 falling within the range assigned to their position and 4
employees which have a current maximum wage which falls above the proposed range
for their position. Discussion was held on options to consider such as maintaining the
employee's current salary until the market catches up with them, provide merit pay that
would not be applied to the base wage, or grandfather them in.
Discussion was held regarding the Board's compensation plan philosophy. HUC
currently has two systems — a negotiated hourly pay rate based system for the Union
employees and a performance based system for non -Union employees. The consensus
of the Board is to continue with a performance based system for non -Union employees
and agreed HUC needs to stay market competitive to attract and retain employees. The
current system should include compensation based on the industry standard of 100%
market.
The Board also agreed on moving toward an open range plan instead of a step plan
based on performance.
Ann Antonsen will be providing a final compensation plan for the Commission to
approve.
Adjourn
There being no further business, a motion was made by Commissioner Hanson,
seconded by Vice President Morrow to adjourn the meeting at 9:19 a.m. Motion was
unanimously carried.
Ma Girard, Secretary
ATTEST: ka-a—,�
Donna Luhring,`President