City looks into museum lease, labor dispute
by Sarah Cooper
Oct 26, 2009 | 329 views | 0 0 comments | 4 4 recommendations | email to a friend | print
The Sparks City Council meets today to revisit some old items as well as discuss some new topics.

The 2 p.m. meeting at city hall will bring a disputed lease agreement for the Sparks Heritage Museum back to the table along with talk of a settlement in a labor union lawsuit.

The council will consider extending its lease agreement with the museum. The amended lease agreement was not approved at the council’s last meeting, with three council members voting. In order for the amended lease agreement to pass, the item would have needed the unanimous approval of those council members present.

The city currently pays the bills for all power, sewer, water and other utilities at the museum.

The museum has been operating on a month-to-month lease agreement with the city since 2006, receiving free rent and utilities in exchange for its cultural contributions to the community. However, museum officials say they want an agreement that is a little more permanent.

The new lease agreement fell at the Oct. 12 meeting under a 2-1 vote with councilmembers Julia Ratti and Ron Smith saying “yes” to the lease and Schmitt casting a “no” vote. Schmitt claimed the lease didn’t track city funds efficiently enough. Councilmen Phil Salerno and Mike Carrigan were absent that day.

The council will also consider a settlement agreement that would bring to rest a dispute with Laborers International Union of North America Local 169 and union business manager Richard Daly.

The dispute started in May when Daly challenged the city's right to rebid a multi-million dollar sewer project without a vote of the city council. According to the city's purchasing manager, Dan Marran, the project had changed significantly after it first went out for bid and had received offers from hungry contractors wanting the work. These changes meant that the project would have to be rebid in order to properly inform potential contractors of the project’s new timeline and its financial consequences. So 10 bids were tossed out by the purchasing manager and the process opened up anew. According to Daly, only the city council has the power to rebid a project of such multi-million dollar magnitude.

According to staff reports prepared for today's meeting, the Nevada Supreme Court's mandated mediation between the city and Daly took place on Oct. 7.

Staff is suggesting, as stated in the reports, that in order to avoid "the delay, expense, inconvenience and uncertainty of protracted litigation of the instant claims, a settlement in this matter may be reached with each party to bear their own costs and expenses with no award of damages to the union or Daly."

The alternative, if the settlement is not approved, would be to continue down a path of appeal and litigation.

In other action, the council will consider the city's proposed voluntary separation plan, a buyout option that allows city employees to leave their jobs voluntarily in times of city economic hardship. The plan could cost the city $1.6 million to implement.

The meeting is today at 2 p.m. in the city council chambers at 745 Fourth St.
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