The City of Sparks, Nevada, enters into labor agreements with its various bargaining units.  The Operating Engineers Local No. 3 Non-Supervisory contract expired June 30, 2017. The City of Sparks (City) and Operating Engineers Local No. 3 Non-Supervisory Unit, submit a one year agreement covering July 1, 2017 through June 30, 2018. The parties began meeting in the Spring of 2017, 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. The City and the Unit believe the attached agreement fairly represents a good faith effort to reach agreement involving wage rates and benefits. The Unit ratified the agreement.  Now both negotiating teams recommend ratification/approval of the proposed agreement by council.

Following is a Summary of Tentative Agreement reached between the parties.  This summary outlines the contract changes.  Also attached to this report are a strike out, the final version of the proposed agreement and a financial impact statement.

Summary of Tentative Agreements:

Section 1: Administration, Article D: Duration of the Agreement.   This section was changed to reflect the new contract period of July 1, 2017 thru June 30, 2018.  There is no direct cost related to this contract change.

Section 2: Pay, Article A: Pay Rates.  Operating Engineers Non-Supervisory and the City negotiating team have agreed to a two percent (2%) Cost of Living Adjustment (COLA) retroactive to the first full pay period after July 1, 2017.  The financial impact of the COLA is an estimated $244,000, as shown in the attached table, for the first year and continuing in future fiscal years.  Of that, $90,000 is from the General Fund and the remaining $154,000 is from other funds.

Section 2: Pay, Article D: Special Assignment Pay. This article reflects an increase to the special assignment for Emergency Communications Dispatcher Trainers and Police Assistants who train new employees from $50 to $75 biweekly or from $5 per to $10 per day.  The financial impact of the increase to the special assignment pay is an estimated $3,250 from the General Fund.

Section 2: Pay, Article G:  Stand by Pay In this section, there is a language change to replace the word “deemed” with “assigned”.  This contract language change has no financial impact.

Section 2: Pay, Article J: Safety Apparel, Uniform and Personal Item Allowance The parties agreed to increase the boot allowance from $275 to $300.  The increase of the boot allowance is an estimated $2,625 per year.  Of that amount, $350 is in the General Fund.

Section 2: Pay, Article K Tool Allowance.  The change in this article is that the tool allowance for the title of Equipment Service Worker increases from $180 per quarter to $400 per quarter.  For the titles of Mechanic I/II/II, the tool allowance increases from $360 per quarters to $400 a quarter.  The modification in the tool allowance is an estimated financial impact of $420 per year, with no impact to the General Fund. 

Section 3: Benefits, Article D Tuition Reimbursement. This section reflects that the parties agreed to an increase in the tuition reimbursement from $1,500 to $1,800.  The maximum financial impact of this increase is estimated at $51,300 per year if all employees covered under the contract received the maximum reimbursement.  Of that, up to $19,500 could be from the General Fund.  However, a more realistic financial impact estimate based upon historical utilization of the benefit is approximately $7,000 annually across all funds.

Section 4: Leave Benefits, Article B Annual Leave.  The modification in this article incorporates MOU language allowing employees in this group to take annual leave in any increment.  There is no financial impact to this change.  

Section 4: Leave Benefits, Article C Sick Leave.  The modification in this article incorporates MOU language allowing employees in this group to take sick leave in any increment.  There is no financial impact to this change.  

Section 4: Leave Benefits, Article D Sick Leave Bank.  The modification in this article is that the Committee to review requests for leave is changed from two (2) to three (3) members.  There is no financial impact to this change.

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

I move to approve the bargaining agreement between the City of Sparks and the Operating Engineers Local No. 3 Non-Supervisory Unit for the period from July 1, 2017 through June 30, 2018.