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Sparks City Council Meeting 11/26/2018

Public Hearing and Action Items Unrelated to Planning and Zoning: 10.1

Title: Presentation, discussion and possible approval of a Memorandum of Understanding between the City of Sparks and the Operating Engineers Local No. 3 to amend the Appendix A in the contract (AC-5510) for Non-Supervisory employees effective October 1, 2018 following a classification and compensation system review. The estimated cost to the General Fund is -$2,597 in FY19, $2,120 in FY20 and $1,907 in FY21.
Petitioner/Presenter: Neil C. Krutz, ICMA-CM/Assistant City Manager/Mindy Falk, Human Resources Manager
Recommendation: The City Council approve the Memorandum of Understanding (MOU) with the Operating Engineers Local No. 3.
Financial Impact: The estimated cost to the General Fund is -$2,597 in FY19, $2,120 in FY20 and $1,907 in FY21.
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

On September 10, 2019 City Council adopted a new method of classification and compensation using a vendor, Korn Ferry Hay Group (HAY).  A component of the implementation plan was to re-evaluate the classification (leveling) for positions where the compensation (new pay range) differs significantly from the existing pay range.  Those positions were submitted for re-review.  Based upon the results from HAY, changes to the pay ranges and additional titles in the Appendix A in the Operating Engineers Non-Supervisory contract are recommended effective October 1, 2018.  The estimated cost to the General Fund is -$2,597 in FY19, $2,120 in FY20 and $1,907 in FY21.



Background:

On September 10, 2018, City Council adopted a systematic process of determining pay using the HAY classification and compensation method for all positions in the Operating Engineers Non-Supervisory contract.

As presented to Council on September 10, 2018, a natural step in the implementation of a classification and compensation system is to re-evaluate the classification (leveling) for positions where the compensation (new pay range) differs significantly from the existing pay range.  The City prioritized the positions most negatively impacted as first to have their leveling re-reviewed.  Of 188 positions evaluated at the City, 16 were identified as outliers for immediate review because the new pay range was 15% or below the existing pay range.

These 16 positions spanned multiple resolutions and contracts.  The review of all 16 is complete.  However, as you will see in the tables below, a total of 24 positions had to be reviewed.  This is because new titles were added and because in some cases, the job family needed to be reviewed as a unit.

Here is a breakdown of the count of positions reviewed and the reason:

Contract/Resolution Outliers Outlier Job Family New Positions Never Leveled Grand Total
Attorney 3 4 - 7
Confidential 1 - - 1
Executive 1 - - 1
Management, Professional & Technical 9 - 2 11
Operating Engineers - Non Supervisory 2 2 - 4
Operating Engineers - Supervisory - - - -
Grand Total 16 6 2 24

In the review process, there are three possible outcomes.  The classification level may be adjusted up, it may stay the same or it may go down.  All three of these outcomes occurred.  Represented below are the results:

Contract/Resolution Down No Change Up Not Previously Leveled Grand Total
Attorney - - 7 - 7
Confidential - - 1 - 1
Executive - - 1 - 1
Management, Professional & Technical 1 4 4 2 11

Operating Engineers - Non Sup

1 1 2 - 4
Operating Engineers - Sup - - - - -
Grand Total 2 5 15 2 24

The effective date recommended is October 1, 2018 to make these changes consistent in timing with the adoption of the HAY method.



Analysis:

The HAY review process included upfront work with departments to review materials sent to HAY in the original review, update job descriptions and update the organizational chart.  Only after that work was done was the new information reviewed and re-leveled by HAY.  HAY provided a new consultant independent of the original team for the second review.  In some instances, the nature of the work has changed since the original review, or the organizational chart has changed or both.  In other cases, the job description and organizational chart did not have material changes.

Before you today are the classification and compensation changes for the positions in the Operating Engineers Local 3, Non-Supervisory contract, Appendix A that result from the Hay review process described above. The changes are as follows:

Job Classification Levels and Pay Ranges to be changed in the Appendix A:

Title:  Administrative Assistant           Pay Range:  $49,345 to $62,803                      Level:  10 to 11

Title:  Office Assistant                        Pay Range:  $43,109 to $54,866                      Level:  10 to 9

Job Classification Titles, Levels and Pay Ranges to be added to Appendix A:

Title: Police Operations Specialist     Pay Range:  $49,345 to $62,803                      Level:  11

Complement:  In the complement, the number of Administrative Secretaries is reduced by two to account for two moving to this new title.



Alternatives:

1.  The City Council may approve the Memorandum of Understanding (MOU) with the Operating Engineers, Local No. 3.

2.  The City Council may not approve the Memorandum of Understanding (MOU) with the Operating Engineers, Local No. 3.

3.  The City Council may not approve the Memorandum of Understanding (MOU) with the Operating Engineers, Local No. 3. but provide direction or alternatives to the City Manager.



Recommended Motion:

I move to approve the Memorandum of Understanding (MOU) with the Operating Engineers, Local No. 3.



Attached Files:
     OE Appendix A 2018-2021.pdf
     NRS 288 for Hay Outlier Review - OE.pdf
     2018.11 MOU with OE3 - Non Supervisory HAY Level Changes.pdf
     AC-5510 OPERATING ENGINEERS LOCAL UNION NO 3 NON-SUPERVISORY.pdf
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