PURPOSE:

The purpose of this report is to request City Council approval of the proposed resolution which would approve the Fiscal Year (FY) 2004-05 Memorandum of Understanding (MOU) between the City of Burbank and the International Brotherhood of Electrical Workers (IBEW). The proposed MOU is attached for the review and consideration. 

BACKGROUND:

Beginning in February 2004, the City began the FY 2004-05 negotiations with the IBEW.  For many years, the City has adhered to the following four cornerstones when considering compensation issues for its employees: the condition of the economy reflected by the Consumer Price Index (CPI); the capacity of the City�s approved budget; the City�s commitment to pay for performance; and, equity in the marketplace as determined by survey. 

Although all of these compensation factors are important and are considered, the reality of the situation is that the City continues to experience significant reductions in our FY 2004-05 Budget.  In preparation of next year�s budget, departments considered two and four percent budget reduction scenarios.  In addition to the City�s own fiscal issues, the State continues to grapple with a huge budget deficit.   Until the State can resolve their budget issues, the strong possibility remains that they will continue to look at cities and counties to assist in this �balancing� dilemma.  As such, the ability to pay market wages is and continues to be hampered by this shaky economic outlook.

Understanding the financial difficulty that plagues the City, the IBEW stepped up to the table early and was willing to make a number of concessions in order to reach a timely and reasonable consensus.   One of these concessions was to continue a reduction in double (2 times) overtime for sick relief callouts for continuous operation employees on day shifts to 1� times overtime.  A second concession was an agreement to modify the survey to include anticipated increases for those agencies whose FY 2004-05 adjustments were unknown at this time, rather than wait for the actual settlements.   Although these concessions may not appear monumental, they were of significant value to the IBEW.  

As of June 7, 2004, Pasadena still has not established its IBEW salaries for July 1, 2003 (FY 2003-04) or July 1, 2004 (FY 2004-05).  However, the parties mutually agreed to use a 3% salary increase for Pasadena�s IBEW classification effective July 1, 2004.  This agreement was reached with the knowledge that Pasadena had recently settled with their utility�s Operating Engineer Unit for 5% retroactive to July 1, 2003 and another 3.47% effective July 1, 2004.  In addition, the City and the Union agreed to increase the comparable Glendale IBEW positions by 2% effective July 1, 2004.  The actual Glendale IBEW adjustment for FY 2004-05 turned out to be 2.3%.

The IBEW members are expected to ratify this proposed agreement on June 14, 2004. 

ANALYSIS AND CONCLUSION:

Within this difficult financial framework, staff is proposing City Council approval of the following economic package for the IBEW:

• Salaries � Salaries were set based on the modified salary survey outlined above.  The projected increases for the IBEW positions ranged from 1.13% to 3.60%.  Unit salaries as a whole will be increased by 3.25% ($323,902). 

• Accidental Death and Dismemberment (AD&D) � The City will provide $50,000 of AD&D insurance for all members represented by IBEW.   This is an additional $18,000 of AD&D coverage.  However, as the City is self-funding this policy there will be an actual cost savings as a result of not having to pay insurance premiums.

In addition to the economic portion of the package, there are some proposed non-economic changes which include the following:

•  Term of Agreement � A one year contract from July 1, 2004 to June 30, 2005.

• Joint Labor/Management Committee - The parties also agreed to establish Joint Labor/Management Committees to discuss policy issues relative to the following items:

1.  Workers Compensation Reform

2. Potential expansion of �125 options

• Language Changes - In addition, contract language was revised to clarify and to comply with current policies and procedures.

FISCAL IMPACT:

The total cost of the package is 3.25% ($323,902). The cost of this package will be funded by the Burbank Water and Power Department and will not have an impact on the City�s General Fund. 

RECOMMENDATION;

Staff recommends City Council adoption of the proposed resolution approving the FY 2004-05 Memorandum of Understanding between the City of Burbank and the International Brotherhood of Electrical Workers (IBEW) Local 18 � Unit 50.   In addition, it is recommended that the Financial Services Director be authorized to make such revisions, changes in summaries, fund totals, grand totals, and other portions of the budget document as necessary to reflect and implement this agreement. 

Respectfully submitted,

Judie Sarquiz

Management Services Director

Attachments

go to the top