20091127UWI to Staff 69-71.pdf

McDevitt & Miller LLP
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[phone]
[phone] (Fax)
420 W. Bannock Street 54
P.o. Box 2564-83701 20ß9 NOV 25 PH 2:
Boise, Idaho 83702
November 25, 2009
Chas. F. McDevitt
Dean J. (Joe) Miler
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Commssion
472 W. Washigton St.
Boise, Idaho 83720
Re: Case No. UWI-W-09-01
General Rate Case Fil
Dear Ms. Jewell:
Enclosed for fig, please fid thee (3) copies of United Water Idaho's Four Response to
Commssion Staffs Thd Production Request Nos. 69, 70 and 71.
Kidly retu a fie staped copy to me.
Very Truy Yours,
McDevitt & Mier Ii~tJ
Dean J. Mier
DJM/hh
Encl.
Dean J. Miler (ISB No. 1968)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]
joeßYmcdevitt -miler .com
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OR\G\NAL
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Attorneys for United Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
UNITED WATER IDAHO INC., FOR )
AUTHORITY TO INCREASE ITS RATES AND ~
CHARGES FOR WATER SERVICE IN THE )STATE OF IDAHO )
)
CASE NO. UWI-W-09-01
UNITED WATER IDAHO INC'S
FOURTH RESPONSE TO
COMMISSION STAFF'S THIRD
PRODUCTION REQUEST
United Water Idaho Inc, ("United Water") by and through its undersigned attorneys,
hereby submits its Fourth Response to the Commission Staffs Third Production Request Nos.
69, 70 and 71.
DATED this tr day of November, 2009.
UNITED WATER IDAHO INC.
BY~~
Dean J. Miler
McDevitt & Miler LLP
420 West Banock
Boise, Idaho 83702
P: 208.343.7500
F: 208.336.6912
Attorney for United Water
UNITED WATER IDAHO INC'S FOURTH RESPONSE TO COMMISSION STAFF'S THIR
PRODUCTION REQUESTS- 1
CERTIFICATE OF SERVICE
I hereby certify that on the~ay of November, 2009, I caused to be sered, via the
methodes) indicated below, tre ana correct copies of the foregoing document, upon:
Jean Jewell, Secretar
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, ID 83720-0074
jjewell(fpuc.state.id. us
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
Brad M. Purdy
Attorney at Law
2019 N. 17th Street
Boise, ID 83702
bmpurdy(hotmail.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
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UNITED WATER IDAHO INC'S FOURTH RESPONSE TO COMMISSION STAFF'S THIR
PRODUCTION REQUESTS- 2
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 69:
Please provide a written description of the process related to the determination of
compensation (executive and non-executive/union and non-union) levels for United Water
Idaho employees. Please include within your response the timeline (calendar dates)
associated with compensation studies, budgetary reviews, contract negotiations, and eventual
rates of pay authorized/negotiated for the years 2007, 2008 and 2009 to date.
RESPONSE NO. 69:
United Water Idaho's compensation with regard to bargaining unit positions is determined
through a negotiation process with the United Association of Joureymen and Apprentices of
the Plumbing and Pipe Fitting Industry of the United States and Canada U.A. Local Union
296 (''the Union"). The most recent Union negotiations occured in Februar and March of
2008 resulting in a three-year Agreement which runs from April 1, 2008 through March 31,
2011. All components of the Agreement relating to compensation were arrved at through
ars-length negotiations between the Company and the Union. A copy ofthe previous and
Agreements wage rate schedules is attached.
On an anual basis, the Company paricipates in the following salar surveys: Hay Utilities
Sector, Towers Perrn General Industry, Mercer (entire suite of surveys), Sage Consulting
Investor Owned Water Utility Survey and American Waterworks. As the surey results are
received the Company analyzes the market survey salar data to United Water's salary
structure and if necessar, wil adjust salary strctures to align with the market we are
competing in.
As the survey results are reviewed for structure adjustments, the Company also performs a
market analysis ofprojected salary increases for the next year. This analysis is done in the
fall of each year and the proposal and cost impact is presented to the Compensation Advisory
Committee for the approval of the overall salar increase budget. The actual increases for
the non-union population take effect April 1 sl of each year (or the start of the pay period
closest to April 1).
Attached are the bargaining unit wage rates for the periods requested.
ARTICLE 10
WAGE RATES AND PA YDA YS
Section 10. I. Beginning with the first payroll period in January 2000, normal paydays shall be every two
(2) weeks.
Wage ScheduleWage schedule, except for individuals who were employed after April 1,2003 as Meter Reader, Customer Service
Person or Utility Person:
Hourly Rates
Eff.4/103
$23.4J
$22.14
$21.6
$21.09
$21.09
$22.14
$21.71
$21.09
$18.16
$21.82
$17.68
$21.83
$20.62
$18.93
$21.82
Job Classification
Foreman
Inspector/Crew Chief
Utilty Person I
Utility Peron
Mêchanic
Chief Operator
Operatorl
Operator
System Optor
Conh'ol System Technician
Meter Rèader
Field Service Foreman
CUstomer Service Person
Digitizer
Cross COnnection Control Spec.
Hourly Rates
Eff, 4/l04
$23.73
$22.46
$21.68
$21.41
$21.41
$22.46
$22.03
$21.4J
$18.48
$.22.14
$18.00
$22.15
$20.94
$19.25
$22;14
Hourly Rates
Eff, 4/105
$24.10
$22.83
$22.05
$21.78
$21.78
$22.83
$22.40
$21.78
$18.85
$22.51
$18.37
$22.52
$21.31
$19.62
$22.51
Hourly Rates
Eff.4/1/06
$24.52
$23.25
$22.47
$22.20
$22.20
$23.25
$22.82
$22.20
$19.27
$22.93
$18.79
$22.94
$21.73
$20.04
$22.93
Hourly Rates
Eff 4/1/07
$24.94
$23.67
$22.89
$22.62
$22.62
$23.67
$23.24
$22.62
$19.69
$23.35
$J9.2J
$23.36
$22.15
$20.46
$23.35
The wage rate .ofthe one individual lìsted below wil be as follows during ihis contrattas long as she
remains in her currnt job classification. Shoiildshe change classifications her wage rate wil be
according to the schedule for that new classification.
Charleen Lawrence $19.52
Lump Sump Payments $1,315
$19.84 $20.21
$800
Lump Sum Payments
$700
$20.63
$800
$21.05
$900
Lump Sum payments do not apply to any employee in any classification who is paid less than Joo%ofthe base rate
for their classification at the time the lump sums are paid.
A new hire after April 1,2003, is not eligible for any lump sums.
Lump Sum payments wil be made in April of the year due.
For new employees hired after April i, 2003, into the following classifications, the following hourly rates and
conditions will apply:
AGREEMENT:
UWi and Local 296 (April I, 2003 to March 3 J, 2008)
H:\Contract\2003_BU Negotialions\2003_ Working Copy.doc Page 13
Hourly Rates Hourly Rates Hourly Rates Hourly Rates Hourly RatesJob Classification Eff.4/1/03 Eff.4/1/04 Eff 4/1/05 Eff.4/1/06 Eff4/Jl07Meter Reader $14.00 $14.25 $14.55 $14.90 $15.25Customer Service Person S15.50 S15.75 S16.05 $16.40 $16.75Utility Person $16.00 $16.50 $16.80 $17.15 $17.50
The staring pay for such new employees bi~d into the Meter Reader, Customer Service Person and Utility Peron
job classifications shall be one dollar ($ I .(0) an hour less than the established rate for the first year of employment
and shall be fifty cents ($0.50) an hour less thån the established rate for the second year of employment.. If in the
opinion of the Company special circumstances warrant placing an employee at an advanced step of this progression,
the employee wil be placed in that advanced step.
Employees hired into established classifications between January l, 1999 and March 31, 2003, wil be paid 75% of
the established Wage for one (I) year following employment. After one. (I) year, they wil be increased to 8001ó of
the established wage rate, after two (2) year 85%, after three (3) year 90%, after four (4) year 95%, and after five
(5) yeal' 100% of the established wage rate. The employee may not exceed these percentages for any job
c1assi fication into which they. may trnsfcr duting the first five (5) years of employment with the Company. If in the
opinion of the Company special circumstaces warant placing an employee at an advanced step of this progrion,the employee willbe placed in that advanced step.
New employees hired into aU established elassifications after April I, 2003, except Meter Reader, Customer Service
Person, and Utility Peron wil be paid 75% of the established wage rate for one (I) year following employment.
After one (I) year, they wiUbe increased to 80% of the established rate, after two (2) year 90%, after thee (3)years 95%, after four (4) years 95%, and after five (5) years 100% of the established wage rate. The employee maynot exceed these percentages for any job classification into which they may trnsfer during the first five
(5) year ofemployment with the Company. Ifin the opinion of the company special circumstanes warntpJacmg an
employee at an. advanced step of this progression, . the employee wil be placed in that advanced step.
Bargaining unit wil be notified in accordance to Section 3.2 at least ten (10) days prior to posting newcJassi fications.
Section 10.2. Any individual employed after January i, i 999, in the job classification ofInspector/C~w
Chief, Utility Person, Chief Operator, or Operator wil be required to achieve thefoUowing certification:
· A LevellI certification or the certification required by the Idaho Water and Wastewater CertficationBoard (whichever is higher)within one ( i) year after the minimum time frame as established by the
Board.
· Control Systems Technician(s)shaJl have a Level ii certification from the International Society for
Measurement ándControl within one ( i) year after the minimum time frame as established by the
Society.
To exceed 95%ofthe established wage scale, an existing employee as of January I, 1999, must obtain the
applicable Level IJ certification or the certification required by the Idaho Water and Wastewater Certificatíon Board
(whichever is higher).
The Company normally shaH pay the annual fee for maintaining one class of certfication for all employees.If the Company requires an employee to maintain multiple certifications, the Company shaH pay the annual fees for
each certification level required.
The Company shall continue certification pay to existing employees as of January i, 1999, at the level they
currently hold or achieve by June 30, 2000, up to a Level II.
· Level I ($0.15), level II ($0.30), level IU($O.4S), level IV ($0.60);
· Control System Technician - Level I ($0.25), Level II ($0.50).
AGREEMENT:
uwi and Local 296 (April i, 2003 to March 31, 2008)
H:\Contract\200J _ BU Negotiations\200J _ Working Copy.doc Page 14
The Company shan pay a one-time payment to employees who achieve certification levels higher than the
certitìcation level they currently hold, and which certification is required in their job classifications, according to the
following schedule:
· Water Operator Certification or Distribution Operator Certitication
. Level ii $400
. Level ii $400
. Level iv $400
· Control Systems Technician Certification
. Level ii $400
. Level II $400
Section lO.3. Temporary and Probationary Employment.
(a) Probationary Employee. A new employee who is a candidate for a regular job opening and without
prior job experience shall be required to serve in a probationary status for a four (4) month period.
(b) Temporary Employee. "Temporary employees"shaJl mean those employees hired only
for the duration of a specifically limited job or specific period of time. . This per of time is not to exceed six (6)
months without the written approval of the Union. The rate of pay shall be at the discretion of the Company, but no
less than seventY-five (7S)percent of the established wage scale for thejobcJassification in which thy are
employed. . A temporary employee may be trnsferred, laidoffordischarged by the Company without such action
being subject to the grievance procedure or arbitration.
(c) A temporary- employee who has worked four (4) consecutive months or more and is hired as a
regular employee in the job classification in which the employee worked within six (6) months of the employee'stemporary employm~nt period will not be required to work in probationary stiitus.
Section lOA. One and one-half(l-ll2) times the regular hourly rate shall~ paid for all hours worked in
excess offort (40) in anyone (I) week and any hours worked in excess ofthe customary scheduled shift
Section. 10.5. Overtime pay oDshiftwork shall be computed as follows: the regular rate of pay, plus the
shift premium, times the overtime rate of pay for the shift worked or any extension theeof.
Section 10.6. Shift employees working the second shift shall be paid a shiftpreniiumin the amount of
fort-five cents (4S~) per hour. Shift employees working the third shift shall be paid a shift premium in the amount
of fifty-five (SS~) per hour.
Section i 0.7. Employees peifonning maintenane and repair of hoi water facilties not including nonnal
production duties shall be paid a premium in the amount of sixty cents (60~) per hour.
AGREEMENT:
UWI and Local 296 (April i, 2003 to March 3 i, 2008)
H:\Contract\2003_BU Negotiations\2003_ Working Copy.doc Page 15
ARTICLE.IO
WAGE RATEs AND PAYDAYS
Se\tion 10. I. Normal payday~ shall be every two (2) weeks.
Wage ScheduleWage schedule. except for individuals who Were employed aftr April 1.2003 as Meter Reader. Custome Service
Person or Utility Person:
10 I. . fie
Foreman
InspelOr
Crew Chief
Utilty Persn I
Utility Pers
Meihanic
Chief Oprator~atol
Opeator
Contrl System Technician
Mete Reader
Custome Seice Per
çross Conition Control Spe.
Hourly Rates
Ef .l
$25.69
524..52
$24.42
$23.64
$23.37
$23.37
524.52
523.99
$23.37
$24.10
SI9.96
$22.90
$24.10
Hourly Rates
E' 110
'626.44
525.37
$25.17
$24.39
$24.12
$24.12
S2$.J7
524.74
S24.12
$24.85
$20.71
$23.65
$24.85
Lump Sum Payments
Lump Sum Pâyments $0 so
Hourly RatesE III
$27.19
526.27
S25.92
$25.14
$24.87
524.87
526.27
$25.49
524.87
$25.60
$21.46
$24.40
$25.60
$0
Lump sum payments do not aply to any
employee in any classification who is paid less than 100 of the basraifortJir classifiation at th time th lump sums ar paid.
Lump Sum payments wil be made in Apl of tbeyear due.
For new employee hired aftr April I. 2003. into th following classifications. til following hourly rates and
conditions wil apply:
Jug. Classjtjelltion
Meter Reader
Customer Service Person
Utilty Person
Hourly Ras
Eft.4l11U8
$16.15
$17.65
$18.40
Houry Rates
Eft 41110
$17.05
$18.55
$19.30
Hourly Rate
Eff. .llIO
517.95
$19.45
$20.~O
The staing pay for ~uch new employees hire into the Meter Reader. CUstoin Service Pern an Utility Person
jobdassifiations shall be one dollar ($1.00) an hour less than th establishe rate tor the tirs year of emplo)ment
and shall be fifty Cents (SO.5O) an hour less than the esrablished rate for th
second year of emplnyrnenL If in theIlpinion of the CompanY'lpecialcircumsrances warant placing an employee at an advanced step ot'this progression.
the employee will be placed in that advalked step.
:'ew employee hired into all established classifications aft April i. 2003. e:wep Meter Reader. Customer Service
Person. and Utilty Person will ~ paid 75% of th established wage rate for nne I " year following employment.
After one I i ) year. they wil be increased to 80% of the established rate. after two (2) )ears 'J)%. after three i J)
)'ears 95%. after four (4) years 95tl. and af tive 15) years inO% of t~ established wage rate. The employee mayont exi.eed thse percentages for any job c1assitication into which they may transfer during the tirst ti\ie (5) year "f
employment with the Compau)'. If in the opinion of the Company. after dISCussion with the Union. ..peial.
AGREEfvIENT:
líWI and Local 296 i April i. 2CX)S to ~(arch 3 I. 20 i I)
Page 13
drcumstances warrant placing an employee at an :idvalled step of this progression. the employee wil be placed
inthat advanced step. Any such advancement in step shall take place only during or immeiatelf UpllD the ci)mpletiontlf the new employee's ttlur 14, im..nrh probationar status as referened in Article 10. Section 10.3(a. of this
Agreement.
Bargaining unit wil be oo.tified in accordance to Section 3.2 at least ten ( 10) days pnor to posting new
dassiticatioß.'.
Section 10.2. Any individual employed after Janua I. 199. in the job c1assitication of Inspetor. Crew
Chiet. Utílty Persn. Chief Operator. Opeator. or Control Systems Technician wil be require to achieve the
tollowing. certitication:
· A Level 11 cenification or the cenification. require by the Idaho Bureau of Occupational. Licenses
(whichever is highr) within one ( I) year after. the minimum time frame as established by th~Board.
· Contrl Systems TechnicianfS shall haVe II Level II certitiCation tim the International Society
forMeaW'mentand Control within one 1 i ) year after the minimum time frame
as eståblished by thSoiety.
To excee 95% of th estalishe wage scale. an existingemploýee as of Janua I. 199. must obtin the
applicable Leve.IU eertiticatiOor thecenfication requir by the Idah Burau of Occupational License
/ whichever is higher,.
The Company shall pay the annùal f~ for maintaining one clas of certificationforalJ Cerifiernlòyee.
If th Compay reir an employe to maintain multiple certifiations. th Company shall pay thannua fes foreach cenificatiøn'level required.
Tbe Company shall continue certification pay to existing eniPloyes as of Januar I. J 99. at the level thy
currently holdorachieveduring th te of this Agrment. up toaLevelN.
· L.vel r ($(.IS). Level n 1$0.301. Level m ($0.45), Level tv 1$0.60.),
· Contrl S)-stem Technia - Leven ($0.25). Level n ($0.5). LeveJtn ($0.60).
The CompanY$.hall payaone-time pa;Ýtnnt to employee hired aft Janua t. 199. \yho actiieve
i:enification levels higJ than th cenificatiøn level they curntly hold an higher th the cenitÏCrion which is
requir in their job classifcations. accordingro th following $CheduJe:
... wat Oparo Certilication or Distribution Optor Cenification
· LevelUl $60
· LevellV $750
· Control Systems TechnicianCenification
· Levelll $750
Section i 03; Tempora and Probationar Employment.
/ a) Probationar Employee. A new employee who is ac:indi(ite for a regular job opening and without
prior job experience ~hall be reqaired to serve in a probationar status tor a four (4) month period.
ib) . Temporay Employee. '"Temporar employees" ~haii mean th~o; employees hired
onlytl1 the duration of a speifically limited job or i;peifk peod of time. This peod of time is not toexi:ee six (6)
months without the written appival of the Union. The rare of pay ..hall be at the discretion of the Company. "Ut no
les,; than se..enty. tive 175, percent of the established wage si.ale for the Utility Person job da..,sification ~tablished
tèir new employees hired after April i. 2003. regardless of whkh job das~itkation in ""hkh they are emplú)led. A
iemplmiry empl(iyee may be transfered. laid off or discharged by th Company without such action being subject to
the grevani.e proedure or arbitration.
Ie) A temporar employee who has worked four /4, consecutive months or more and is hired as a
.\GRE~lENT:
lWI and Local 296 / April I. 2008 to March 31. 20 Ii.
Page 14
regular employee in ihe job da$sitJcation in which ihe employee. worked within six (6) months of the employee' $
iemporaremployment peiod wil be required. to work in probationa :otatus fora two (2) month period;
Section In.4. One and one-half (1.112) times the regular hourly rate shall be paid for aU hours worked inex.cess of lorty (40) in anyone ( i ) week and any hours worked in ex.cess of the customar S\heuled shift.
Section 10.5. Ovenime pay on shift work shall be computed as follows: lheregular rate of pay. plus theshif premium. times the overime rate of pay for the shift worked or any ex.tesion therenf.
Section 10.6. Shift employees working th seond shift shall be paid a shift premium in th amount of
f()rty. five cent (45~) pe hour. Shift employees working the third shift shall be paid a shift premium in the amount
of fifty-five (55,) pe hour.
AGREE~NT:
UWI and uX:.l1 296 (April I. 1008 10 March 31. 20 i l )
Page 15
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 70:
Please provide a wrtten description of any planned changes to the compensation process
described in response to the preceding request.
RESPONSE NO. 70:
There are no planned changes to the compensation process.
UNITED WATER IDAHO INC.
CASE UWI-W-09-01
THIRD PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Gregory P. Wyatt
REQUEST NO. 71:
Please provide a copy of all compensation studies (internal or external/formal or informal) used
to determine compensation levels for 2007, 2008, and 2009 to date. Please include within your
response the date any compensation studies that are currently underway or planed wil be
completed and update the Company's response to this request with a copy.
RESPONSE NO. 71:
Please refer to the two enclosed PDF fies which include the directory information on the Sage
Investor Owned Water Utility Survey outlning the paricipants, scope data of the utilities and
positions surveyed, as well as the Local United Water Idaho Total Compensation Market
Comparability Study prepared by BDP A, Inc. in May 2009. This study was performed in
response to employee concerns regarding their compensation. This study has no bearng on
current or contractual rates for bargaining or non-bargaining employees at United Water Idaho.
While United Water paricipates in the surveys indicated in response 69, the results ofthe
sureys are held in a web database that is proprietary to the survey owners and are accessed by
the Company through a user name and password. The Company is unable to share access to that
database without risk of losing its license.