Sparks City Council Meeting 9/10/2018 2:00:00 PM

    Monday, September 10, 2018 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

Public Hearing and Action Items Unrelated to Planning and Zoning: 10.13

Title: Public Hearing, consideration and possible approval of Resolution No. 3344 for the Executives for the period of July 1, 2018 to June 30, 2021 for an estimated amount to the City of $21,000 for FY19, $49,000 for FY20 and $120,000 in FY21 and repeal prior Resolution No. 3328.
Petitioner/Presenter: Stephen W. Driscoll, ICMA-CM, City Manager/Neil Krutz, ICMA-CM, Assistant City Manager
Recommendation: The City Manager recommends approval of Executive Resolution for the period of July 1, 2018 through June 30, 2021.
Financial Impact: The financial impact in FY19 is estimated at $18,000 to the General Fund and $3,000 to other funds; FY20 is estimated at $45,000 to the General Fund and $4,000 to other funds; and FY21 is estimated between $77,000 and $103,000 to the General Fund and between $8,000 to $17,000 to all other funds.
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

This agenda item includes City Manager proposed Resolution for the Executive employees for the period of July 1, 2018 to June 30, 2021 and providing for the repeal of all prior Resolutions related to these employees in the designated titles; and providing other matters properly related thereto.

The City Manager requests that this Resolution be approved to implement the City’s classification and compensation system, known to employees in this Resolution as HAY; and change the term dates to coincide with contract term dates of other collective bargaining agreements and employee resolutions within the City.



Background:

The City of Sparks, Nevada provides Resolutions defining salaries and benefits for employees not covered by a Collective Bargaining Agreement as defined in NRS 288. The City’s Executive Resolution employees are covered by the Resolution under consideration. The Department Heads are covered in this Resolution distinct from Resolutions covering other types of employees at the City of Sparks.

The proposal contained herein updates the provisions for providing said salary and benefits for this group of employees for the remaining Resolution term and requests an extension of the current Resolution term from June 30, 2020 to June 30, 2021.



Analysis:

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

Summary of Changes

Section 1: Administration, Article C: Effective Date.

This section was changed to reflect the new resolution period of July 1, 2018 through June 30, 2021.  This reflects a one-year extension from June 30, 2020 to June 30, 2021.

Section 2: Pay, Article A: Pay Rates

There are two (2) changes to this article in the amended 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 a proposed Cost of Living Adjustment for the third-year extension of the Resolution term.

New Classification and Compensation System

A new section 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 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 $127,000 to the General Fund and $11,000 to all other funds.

The below table details the cost per year per fund:

 

Hay Implementation

 

FY19

FY20

FY21

General Fund

$18,000

$45,000

$64,000

All Other Funds

$3,000

$4,000

$4,000

Total

$21,000

$49,000

$68,000

 

Cost of Living Adjustments (COLA)

For the third-year extension of the Resolution, effective the first full pay period after July 1 of FY21, the City Manager recommends a COLA will be applied to 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 in FY21

The COLA’s estimated fiscal impact in FY21 to the General Fund will range from a minimum of $13,000 to a maximum of $39,000. In all other funds for FY21, the estimated cost will range from $4,000 - $13,000.



Alternatives:
  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 Resolution and direct the City Manager toward another alternative.


Recommended Motion:

I move to adopt Resolution No. 3344 between the City of Sparks and the Executive employees for the period of July 1, 2018 through June 30, 2021 and repeal Resolution No. 3328.



Attached Files:
     Executive Resolution 2018-2021 Redline Version Updated 08.28.18.pdf
     Executive Resolution 2018-2021 Final Version Updated 08.28.18.pdf
     NRS 288 calcs for DH extend to FY21 Updated 08.29.18.pdf
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