PURPOSE:

The purpose of this report is to request City Council approval of the proposed resolution for the Fiscal Year (FY) 2004-2005 Memorandum of Understanding (MOU) between the City of Burbank and the Burbank Fire Fighters (BFF).

BACKGROUND:

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

The City looks at the condition of the economy as reflected by the Consumer Price Index (CPI) for Los Angeles-Riverside-Orange County Urban Wage Earners and Clerical Workers from April to April, 2004.  This year that CPI was 2.40%.

As for the capacity in the City�s approved budget, suffice to say, the City has been addressing significant budget deficits for the past two fiscal years and is expected to deal with a deficit in excess of $2 million for FY 2005-06.  To mitigate this budget deficit situation, in FY 2004-05 each department implemented two to four percent budget reductions.  As such, the City�s tight fiscal restraints were a determining factor in the compensation package proposed for this Fiscal Year.

A commitment to pay for performance is an ongoing philosophy for the City in order to recruit and maintain quality employees to serve the needs of the Burbank community.  It is important that the City attempt to maintain this commitment even in the face of fiscal adversity.

In addition to the City�s own fiscal issues as cited above, the State is still grappling with a huge budget deficit which will continue to impact local governments.  As such, the ability to pay market wages is and continues to be hampered by these budgetary considerations.  As a result of these constraints, the City and BFF reached agreement on compensation in the negotiation process which was not based on a market survey. 

During the months since April, the BFF and the City negotiating teams have held numerous meetings.  The parties have met and conferred in good faith bargaining.  A tentative agreement was reached in October and was then taken to the BFF membership for ratification.  Staff was informed on October 20, 2004 that the membership had ratified the proposed agreement.  Thus, the proposed MOU is before the City Council for approval.

ANALYSIS CONCLUSION:

Within this difficult financial framework, staff is proposing City Council approval of the economic package for the BFF for Fiscal Year 2004-2005. The cost of this package will not exceed 2.50%.

                                   HIGHLIGHTS OF THE BFF MOU

The BFF compensation package ratified by the members is divided into two components: a 2.40% increase in base salary effective July 1, 2004 and increases in compensation for employees performing Paramedic and Hazardous Material assignments. The increase in the compensation for paramedics and employees who perform duties related to hazardous materials was based on a survey of these two assignments. The increase is equivalent to 50% of the market survey average effective January 1, 2005 and represents a 0.10% increase for FY 2004-2005.  It should be noted that the recurring annual cost for the BFF package will be 2.60%.

In addition to the compensation increases, there were certain other agreements reached  in the BFF negotiations. The parties agreed to restructure the practice that compensates employees on 40-hour per week assignments for being available during their off hours. Currently three employees receive pager pay. The parties agreed that the total amount currently paid to the three employees would be equally divided among the six employees assigned to the 40-hour assignments. It was further agreed that all six employees shall remain in communication with the department in their off hours. This restructuring did not result in an increase in cost to the City.

The parties agreed to enter into a pilot program that allows the BFF employees to buy up to 72 hours of vacation time. It is hoped that this program, which will negate the need to backfill employees while on vacation, will result in a reduced amount of overtime pay. The pilot program has a sunset date of December 31, 2005. At the end of the pilot program, the City will evaluate its effectiveness and cost savings to ascertain if it would be in the best interest of the City to work with the BFF to continue the vacation buy pack program.

Additionally, the City and the BFF agreed to a number of language changes relative to working conditions that will improve the application and implementation of the provisions of the MOU.

FISCAL IMPACT:

The cost of the BFF package for Fiscal Year 2004-2005 is 2.50% or $349,360. This proposed salary increase was anticipated in the FY 2004-2005 Budget preparation. However, the funds were not appropriated at the time of the budget adoption. As such, a budget amendment is required to appropriate the necessary funds from the Unappropriated General Fund Balance.

In addition, since the two increases in the Paramedic and Hazardous Material assignments will be implemented on January 1, 2005, the true recurring cost of the package is 2.60%.

RECOMMENDATION:

It is staff�s recommendation that the City Council adopt the proposed resolution approving the Fiscal Year 2004-2005 Memorandum of Understanding with the Burbank Fire Fighters.

Respectfully submitted,

Judie Sarquiz

Management Services Director

JS:RB:jj

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