The City of Sparks, Nevada, enters into labor agreements with its various bargaining units. The City of Sparks (City) and Operating Engineers Nonsupervisory Unit, entered into a multi-year agreement covering July 1, 2012 through June 30, 2015. The parties began meeting early 2015, and continued to meet on a regular basis to discuss the terms and conditions of the agreement. The bargaining agreement proposed today is the result of those meetings, and will cover the period July 1, 2015 through June 30, 2017. The City and the Unit believe the attached agreement fairly represents a good faith effort to reach agreement on labor issues related to this multi-year agreement involving wage rates and benefits. Both negotiating teams are positively recommending ratification/approval of the proposed agreement by their respective authorizing bodies.

SECTION 1   ADMINISTRATION

Article D:  DURATION OF AGREEMENT

This Agreement shall take effect from July 1, ,2015 and shall continue in force until June 30, 2017.

Article J:  JOB STEWARDS/UNION BUSINESS

Job Steward/Union Business is allowed above in lieu of a one percent (1.0%) pay increase effective July 1, 2015, in accordance with N.R.S.  Union time is not to exceed 1% of salary and salary driven benefits each fiscal year.

Article M:  WORK WEEK/HOURS OF WORK

Breaks may not be combined, nor taken during the first or last hour of the shift without the approval of the Department Head.  Employees shall be permitted an additional fifteen (15) minute break for each additional four (4) hour period in addition to any regular shift.

 LUNCH BREAK - Meal Periods - Employees will have one of three meal period assignments, as determined by the Supervisor: A ‘straight shift’ where employees do not take a lunch period (or); A lunch period of up to one hour unpaid lunch period (or);Operations employees of TMWRF will be paid for a half hour lunch period.

SECTION 2:  PAY

Article A:  PAY RATES

            Effective the first full pay period following July 1, 2015, base pay rates and individual employee pay rates will be increased two percent (3.0%) over the base rates in effect prior to this agreement.

           Effective the first full pay period following July 1, 2016, base pay rates and individual employee pay rates will be increased two percent (2.0%) above base pay rates in effect June 30, 2016.

PROMOTIONS - When an Employee is promoted to a position allocated to a higher pay range, the Employee shall receive the minimum of the new salary range or rate of five percent (5%)above the rate of pay received immediately prior to the promotion, whichever is greater not to exceed the top step of the pay range.  The employee will be placed on a ‘promoted’ probation, and upon successful completion may be eligible for a merit increase.

Upon movement from from a levels 1 to a level 2 within a classified position, the Employee shall receive a five percent (5%) salary increase in addition to any merit increase that may be granted on the same date.  Upon such movement, the employee will maintain an annual performance review schedule and the employee is not put on a probationary status.

Long-term acting promotions.  Should the long-term acting employee be promoted into the position for which they are in a long-term acting role, the employee will receive no reduction of pay upon promotion, but will retain the 10% pay.  Employees subject to the 10% promotion from long-term acting will not receive a probationary 5% increase in pay.  In no case shall the employee make less than range minimum.

Article B:  PAY INCREASES

Promotional Probationary Period -.  The employee will be placed on a ‘promoted’ probation, and upon successful completion may be eligible for a merit increase.

Article L: TOOL ALLOWANCE

TOOL ALLOWANCE - Designated Employees in the Public Works Division shall receive a reimbursement for tools purchased, provided receipts for actual purchases are submitted.  The maximum reimbursement shall be as follows:

Equipment Service Worker              $180.00 per quarter

Equipment Mechanic I/II/III            $360.00 per quarter

SECTION 3   BENEFITS

Article A:  GROUP HEALTH INSURANCE

1.         ELIGIBILITY - All Employees, are eligible for group health insurance may on the first of the month following hire, be eligible to enroll in the City's group health insurance plan, provided, however, such Employee is not excluded from enrollment by conditions of the Group Health Plan Document.

3.        Group Health Care Committee: The purpose of this Committee is to discuss cost containment measures and to recommend to the City Council any benefit changes to the City's self-insured Group Health and Life insurance plan.

The Committee shall be comprised of one (1) voting members and one (1) alternate member from each of the following represented groups:

Operating Engineers (OE3)

Sparks Police Protective Association (SPPA)

International Association of Firefighters (IAFF)

The Committee shall also be comprised of one non-voting member and one alternate member from each of the following represented and non-represented groups to provide input to voting members:

Operating Engineers Supervisory Unit

Confidential

Management Professional/Appointed

Classified Chief Officers

One (1) retired employee and alternate will serve to provide input on the effect of any changes upon retirees.

The Committee Chairperson and Vice-chairperson will be appointed by the City Manager and will not have a vote on the Committee.

The voting member of each recognized bargaining unit shall have the authority to bind said    bargaining unit to any modification in benefits recommended to the City Council subject to ratification of at least two of the voting members (OE3, SPPA, IAFF).  Any two (2) of the listed three (3) bargaining units can bind the remaining bargaining units to changes to the City’s self-insured Group Health and Life insurance plans.  Any modification in benefits agreed to by the City Council on recommendation of the committee shall be binding upon each represented and non-represented group.

Article B:  HEALTH INSURANCE UPON RETIREMENT

1.         Eligibility: Employees who elect to have sick leave payoff in cash at retirement, in accordance with this Agreement are not entitled to elect conversion of accumulated sick leave to an insurance benefit. Employees electing sick leave conversion to an insurance benefit are not entitled to sick leave payoff in cash. This benefit is subject to a three thousand two hundred fifty (3,250) hour at twenty-five (25) years of service maximum conversion of accumulated sick leave to an insurance benefit.

2.         Conversion of Accumulated Sick Leave: Employees qualifying for retirement under Nevada PERS with a minimum of twenty (20) years of total service with the City of Sparks may elect to convert sick leave up to a three thousand two hundred fifty (3,250) hours. maximum to an unfunded City account for the purpose of paying for medical coverage under the City's group health insurance plan on a monthly basis.

3.         Employees qualifying for retirement under Nevada PERS may elect to convert the following percentages of the Employee's accumulated sick leave up to a three thousand two hundred fifty (3,250) maximum to an unfunded City account for the purpose of paying for medical coverage under the City's group health insurance plan on a monthly basis.

Sick Leave Cash Out Provision: As an alternative to Sick Leave Conversion, employees, upon retirement, may elect a cash out of this benefit, as follows.

     Years of Service                                  Cash Out Percentage

               10                                                                       10%

               15                                                                       15%

               20                                                                       65%

               21                                                                       75%

               22                                                                       85%

               23                                                                       90%

               24                                                                       95%

               25 years or more                                             100%

If the account is valued at less than $15,000, and cash out elected, full amount will be paid upon termination of employment,

Employee may elect an annual payment of conversion dollars

• In annual payments that provide equal payout over time
• Maximum annual payment will not exceed $25,000
• Once election is made, it may not be changed
• Upon death of the employee, payments cease

If the cash out option is selected, the employee opts out of City Health Insurance plan for themselves and dependents.  Employee may return per NRS on any even year and pays full cost of coverage and annual payments continue as selected.

Article D:  TUITION REIMBURSEMENT

TUITION REIMBURSEMENT.  Upon proof of course completion with either a grade of “C” or better or a certificate of completion for pass/fail courses, the City shall pay one hundred percent (100%) of tuition, lab fees, required textbooks, and ancillary written course materials, not to exceed one thousand five hundred dollars ($1,500) per fiscal year for job related courses which are approved in writing in advance by the Department Director and Human Resources Manager.  Reimbursement is subject to all courses being acceptable determined by the appropriate Department Head or designee and/or Human Resources.

Adding New Article:

Article E:  MATCHING DEFERRED COMPENSATION

Each employee that is an active participant and contributes a minimum of twenty five  dollars ($25.00) per pay period to a City approved Deferred Compensation program, will have their contributions matched by the City, not to exceed twenty five ($25.00) dollars per pay period, capped at the Internal Revenue Service (IRS) capped amount.  If an employee does not have a City authorized Deferred Compensation account the City will not be required to provide any matching monies.

SECTION 4 – LEAVE BENEFITS

Article A:  HOLIDAYS AND HOLIDAY PAY

If the holiday falls on a scheduled workday and the employee takes the day off, the employee will be compensated at straight time (paid holiday) for their normal scheduled hours. The normal scheduled work hours is determined by the shift at the beginning of the pay period.  This time counts toward the overtime calculation for the FLSA period.

Holiday hours will be associated with the day the shift begins. For example, if an employee comes to work 10:00pm on January 1st and works until 8:00am on January 2nd, that employee would receive the holiday premium for ten hours worked.

If an employee is on a flexible work schedule, with prior notice the Supervisor may change the employees work schedule to accommodate business needs the week of the holiday.

HOLIDAY ON DAY OFF - Holidays occurring during an Employee's annual leave period shall not be counted as annual leave; however, the Employee shall be compensated at straight time.  Where one of the authorized holidays falls on the first day of a covered Employee's scheduled days off, the preceding day shall be observed as a holiday, and where one of these holidays falls on the second or succeeding days of consecutive scheduled days off, the next succeeding work day shall be observed as a holiday.

WORKED HOLIDAY - If an Employee is required to work on a day observed as a holiday, the Employee shall be compensated at two and one-half (2 ½) times his or her regular hourly rate for the actual hours worked, in cash or compensatory time off subject to Section 2, Article C.

Article B:  ANNUAL LEAVE

Annual Conversion: Once per fiscal year, an employee may elect to cash out annual leave in the amount of forty (40) hours.  The employee must have a minimum of one hundred sixty (160) hours to utilize this benefit.

Article J:  COMPENSATORY TIME

When an employee has worked overtime and would like to add the time to their compensatory bank instead of being paid overtime, it must be noted on the employee time sheet.

Settlement for Unused Compensatory Time:  Payment for unused compensatory time is authorized to be paid in the event of termination, retirement or death. Employees are able to cash out Compensatory Time by submitting an email to Payroll or completing a compensatory cash out form and submitting to payroll at any time during the fiscal year.

1. The Council may choose to approve the proposed bargaining agreement as outlined by staff. 2. The Council may choose not to approve the proposed bargaining agreement as outlined by staff. 3. The Council may choose not to approve the proposed bargaining agreement as outlined by staff and direct staff toward another alternative.

I move to approve the bargaining agreement (AC-5185) between the City of Sparks and the Operating Engineers Nonsupervisory Unit July 1, 2015 through June 30, 2017.