The City negotiates and enters into labor agreements with its various collective bargaining units.  The current agreement expired June 30, 2018. The City and Operating Engineers Local No. 3 Supervisory Unit submit for your consideration a three (3) year Agreement covering July 1, 2018 through June 30, 2021.

The negotiation teams for both parties began meeting in February 2018 and continued to meet regularly to discuss the terms and conditions of this Agreement. The Agreement proposed today is the result of those meetings. The City and Operating Engineers Local No. 3 Supervisory Unit believe this Agreement to be a fair, good faith effort between both parties. Operating Engineers Local No. 3 Supervisory Unit ratified this Agreement with their membership and now the City’s negotiating team recommends ratification and approval by council.

Following is a summary of the Agreement reached between the parties.  This summary outlines negotiated contract changes. Also attached to this agenda item are a strike-out version of the proposed Agreement and the final version of the proposed Agreement.

Summary of Tentative Agreement

Section 1: Administration, Article D: Duration of the Agreement

This section reflects the new contract period of July 1, 2018 through June 30, 2021.  There is no direct cost related to this contract change.

Section 1: Administration, Article J: Job Stewards and Union Business

New language was added to increase communication between the Union and the City.  Once per month the City will provide to the City and the Operating Engineers Local No. 3 Supervisory Unit Business Representative a list of new employees hired by the City into positions listed in Appendix A. There is no direct cost related to this contract change.

Section 2: Pay, Article A: Pay Rates

There are two (2) changes to this article in the new agreement. First, consideration of a classification and compensation system to establish pay levels and their associated pay bands. With council approval of an item heard earlier today, changes are needed in the contract to implement the system. Second, this article contains the agreed upon Cost of Living Adjustment (COLA) for each of the three (3) year contract term.

New Classification and Compensation System

A new section of the Agreement and a new Appendix A were added to implement the City’s new classification and compensation system effective October 1, 2018.

The new section of the Agreement explains that pay ranges are to be established utilizing a systematic classification and compensation system. The actual pay rates established through the classification and compensation system are listed by position in the Appendix A. This information also addresses how to handle an employee’s salary when either above or below the new pay range.

The updated Appendix A incorporates the agreed upon changes with Operating Engineers Local No. 3 Supervisory unit effective October 1, 2018.

The total cost for the three (3) year term of the contract related to the implementation of HAY effective October 1, 2018 is $33,500 to the General Fund and $69,500 to all other funds.  The below table details the cost per year per fund:

1. The Council may choose to approve the proposed Collective Bargaining Agreement.
2. The Council may choose not to approve the proposed Collective Bargaining Agreement.
3. The Council may choose not to approve the proposed Collective Bargaining Agreement and direct the City Manager toward another alternative.

I move to approve the Collective Bargaining Agreement between the City of Sparks and the Operating Engineers Local No. 3 Supervisory Unit covering the period of July 1, 2018 through June 30, 2021.