The City of Sparks, Nevada, enters into labor agreements with its various bargaining units and resolutions with groups not covered under collective bargaining.

The Confidential Employee Resolution (CF) is for employees, whose job duties are considered confidential under NRS 288. While the Confidential Resolution mirrors the Operating Engineers Local No. 3 Non-Supervisory Collective Bargaining Agreement, it must remain separate.  Therefore, this Resolution reflects corresponding language from the Operating Engineers Local No. 3 Non-Supervisory Unit’s proposed changes.

Following is a summary of the proposed changes to the Resolution. Also attached to this agenda item is a strike-out version of the proposed Resolution and the final version of the proposed Resolution.

Summary of Changes

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

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

Section 2: Pay, Article A: Pay Rates

There are two (2) changes to this article in the new Resolution. 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 Resolution to implement the system. Second, this article contains the proposed Cost of Living Adjustment (COLA) for each year of the three (3) year Resolution term.

New Classification and Compensation System

A new section of the Resolution 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 Resolution 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 proposed Resolution changes effective October 1, 2018.

The total cost for the three (3) year term of the Resolution related to the implementation of HAY effective October 1, 2018 is $36,000 to the General Fund.  The below table details the cost per year per fund:

Cost of Living Adjustments (COLA)

In the first year of the Resolution, and in accordance with the Operating Engineers Non-Supervisory Collective Bargaining Agreement, the City Manager proposes a 2.7% Cost of Living Adjustment (COLA) retroactive to the first full pay period after July 1, 2018.  The 2.7% COLA is derived from the Consumer Price Index (CPI) annual change in cost of living as of the most recent annualized calendar year period.  For FY19, the financial impact of the COLA is an estimated $17,000 from the General Fund.

For the second and third year of the Resolution, effective the first full pay period after July 1 of each year, and in accordance with the Operating Engineers Non-Supervisory Collective Bargaining Agreement, the City Manager proposes a Cost of Living Adjustment (COLA) will be applied to the pay rates of no less than 1.0% but not greater than 3.0%, based on the Consumer Price Index (CPI) as determined by the Bureau of Labor Statistics from comparing December to December of the previous year. The specific CPI agreed to by the parties is for the selected areas, all items index - Western Urban Size B/C - 50,000 to 1,500,000.  This CPI is a non-seasonally adjusted, annual index and will be rounded to the nearest one tenth decimal point (CPI Series ID: CUURN400SA0).

A new Appendix A will be issued including the COLA and the range adjustment when the information becomes available each year.

The below table details the cost per year per fund:

Section 2: Pay, Article C: Overtime

Clarification Language

The work supervisor was added to clarify who is authorized to approve overtime. There is no direct cost related to this Resolution change.

Section 3: Benefits: Article A:  Group Health Insurance

There are three Resolution changes in this Article. First, the schedule for sick leave conversion and sick leave cash out changed, allowing employees to become eligible for higher percentages of their sick leave earlier in their tenure with the City of Sparks. The cash-out conversion table has been changed to reflect a 20% payout after ten (10) years of service and a 35% payout after 15 years of service.

Second, upon nonservice related death of an employee, a section was added that allows the employee’s estate to receive a one-time payment of the employee’s sick leave balance subject to the cash-out schedule.

Finally, language was added in the cash out section that allows the Finance Director the discretion to pay out if the remaining balance is nominally over the $15,000 or $25,000 cap.  This has no fiscal impact because this does not increase the cash value already owed to the employee.  There is no additional direct cost for this language change.

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

I move to adopt Resolution No. 3340 between the City of Sparks and the Confidential Employees for the period of July 1, 2018 through June 30, 2021.