Sparks City Council Meeting 3/25/2019 2:00:00 PM

    Monday, March 25, 2019 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th Street, Sparks, NV

General Business: 9.5

Title: Presentation, discussion and possible approval to amend Appendix A in the Executive Resolution updating the classification and compensation system following a review by HAY. The estimated cost to the General Fund is $0 in FY19, $7,510 in FY20 and $8,114 in FY21.
Petitioner/Presenter: Neil C. Krutz, ICMA-CM,City Manager/Mindy Falk, Human Resources Manager
Recommendation: The City Council approve the amendment to the Executive Resolution, Appendix A.
Financial Impact: The estimated cost to the General Fund is $0 in FY19, $7,510 in FY20 and $8,114 in FY21.
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

On September 10, 2018 City Council adopted a new method of classification and compensation using vendor, Korn Ferry Hay Group (HAY).  As part of the adoption an appeal process was created to give employees adversely impact by the new program opportunity to have their positions reconsidered.  This item presents the changes proposed to address the second round of appeals and includes position appeals where the new range maximum is between five and fifteen percent lower than the previous pay range maximum in the resolutions.  Twelve appeals were sent to Hay for relevelling.  Analysis of these positions necessitated adding five other positions for a total of seventeen, sixteen in mid-management resolution and one in the executive resolution. Nine positions changed levels while the remaining eight stayed the same.  These results are incorporated in the Appendix A in the Executive Resolution for Council’s approval with a recommended effective date of March 25, 2019.


On September 10, 2018, City Council adopted a systematic process of determining pay using the HAY classification and compensation method for all positions in the Executive Resolution.

As presented to Council on September 10, 2018, a natural step in the implementation of a classification and compensation system is to re-evaluate the classification (leveling) for positions where the compensation (new pay range) differs significantly from the existing pay range.  The City prioritized the order of leveling re-review by greatest adverse impact.  The first leveling re-review occurred in the fall of 2018 and results were approved by City Council on November 26, 2018.

The second group HAY reviewed consisted of seventeen positions and those with a level change are before Council today for approval. Of these, twelve were in the original group sent to HAY.  Eleven are mid-management positions and one is a department head position (presented today in a different agenda item).   Five additional positions from mid-management were included in the review because they were in job families or jobs in similar levels.  The effective date of these changes will coincide with Council approval of the Appendix A changes.


During the HAY re-review process, departments evaluated materials originally sent to HAY, updated the job description where applicable and updated the organizational chart.  The updated information was used as a foundation for the re-review and re-leveling by HAY.  In some instances, the nature of the work has changed since the original review.  In other cases, the job description did not have material changes.

The same HAY consultant who completed the first outlier review was commissioned to analyze the second outlier review and is independent of the original team.  When a position is reviewed by HAY, there are three possible outcomes.  The classification level may be adjusted up, it may stay the same or it may go down.  In this second round, the department head position went up.

The affected employee who now has more room from their current pay to the top of the new pay range as a result of this review will not see an immediate pay change.  They will be eligible for an increase at their individual merit review date.

Before you today are the classification and compensation changes for the department head position in the Executive Resolution, Appendix A that is a result from the HAY review process described above. The change is as follows:

Job Classification Levels and Pay Ranges to be changed in the Appendix A:


Pay Range:

Minimum           Maximum


Financial Services Director

 $ 125,466

 $ 188,178

20 to 22


The fiscal impact of this level change is estimated at $0 in the General Fund in FY19, $7,510 in FY20 and $8,114 in FY21.   

1.  The City Council may approve the Appendix A changes as presented.
2.  The City Council may not approve Appendix A changes as presented and direct staff to have the positions reviewed by HAY.
3.  The City Council may not approve Appendix A changes but provide direction or alternatives to the City Manager.

Recommended Motion:

I move to approve the amendment to the attached Executive Resolution, Appendix A effective March 25, 2019 as by presented by staff.

Attached Files:
     Executive - Appendix A 2019.03.25.pdf
     Hay costing - Outlier Mar 2019-DH.pdf
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