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.

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:

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.

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.

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.