PURPOSE:

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

BACKGROUND:

As is consistent with past negotiations, the BFF-COU requested to meet and confer after the Burbank Firefighters (BFF) and the City reached agreement on the BFF MOU.  This agreement was finalized last month and as such, staff began negotiations with BFF-COU at that time.  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 already projecting a deficit in 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 the BFF-COU reached agreement on compensation in the negotiation process which was not based on a market survey.

Staff met with the representatives of the BFF-COU on three (3) occasions.  The parties engaged in good faith bargaining and reached a tentative agreement which was then taken to the BFF-COU membership for ratification.  Staff was informed on November 8, 2004 that the membership had ratified the proposed agreement.  Thus, the proposed MOU is before the City Council for approval.

ANALYSIS AND CONCLUSION:

Within this difficult financial framework staff is proposing City Council approval of the economic package for the BFF-COU for Fiscal Year 2004-2005.  The cost of this package will not exceed 2.50% for FY 2004-05.

HIGHLIGHTS OF THE BFF�COU MOU

• Effective July 1, 2004 the salaries of the BFF-COU positions will be increased by 2.40%.

• Effective January 1, 2005 the salaries of the BFF-COU positions will be increased by 0.10%.  It should be noted that this increase will result in a recurring annual cost for the BFF-COU package of 2.60%.

• The amount shown for the 125 Flex Benefit Plan will be changed to reflect the current amount of $ 556.17 to correct a previous clerical error.

Additionally, the City and the BFF-COU 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-COU package for Fiscal Year 2004-2005 is 2.50% or $26,756.  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 0.10% was added to the salary effective January 1, 2005, the true recurring annual 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 -Chief Officer�s Unit and amend the 2004-05 Annual Budget as necessary.

Respectfully submitted,

Judie Sarquiz

Management Services Director

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