PURPOSE:

The purpose of this report is to request City Council approval of the proposed resolution which would adopt a one year Memorandum of Understanding (MOU) between the City and the Burbank Fire Fighters (BFF).

BACKGROUND:

Beginning in March 2005, the City began negotiations with the six bargaining groups.  In June 2005, the City and the BFF reached tentative agreement on a one year package.  The BFF members ratified this agreement, and staff is now requesting City Council approval.  Approval of this agreement will conclude the second settlement for this year�s labor negotiation process.

For many years, it has been the City�s policy to look at four basic cornerstones when considering compensation issues for its employees:

• The condition of the economy as reflected by the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County Urban Wage Earners and Clerical Workers from April to April 2005.  This year, that CPI was 4.90%.

• The capacity in the City�s approved budget is another criterion utilized in setting compensation for employees.  

• Commitment to pay for performance is an on-going philosophy for the City.  In order to recruit and maintain qualified employees to serve the needs of the community and citizens it is vital that the City maintain this commitment even in the face of fiscal adversity.

• Equity in the marketplace as determined by market survey is the fourth criteria the City utilizes in setting compensation for employees.  The City continues to grapple with the ability to pay market wages due to budgetary constraints.  Further, the issue of market wages was problematic because an appropriate survey for the BFF was not mutually agreed upon.  Thus, a true market survey was not used as the basis for determining the compensation for the BFF.  However, the traditional four-city survey (Glendale, Pasadena, Torrance and Santa Monica) used in past negotiations was completed to provide an idea of the marketplace.   

ANALYSIS AND CONCLUSION:

It is within the difficult balance between fiscal responsibility and the City�s commitment to maintain competitive wages in order to continually recruit and retain the most qualified employees that this agreement was reached.  As was previously stated, although a market survey was not used as the basis for determining the compensation package to be provided to the BFF, the four-city survey was completed and indicated that Burbank�s salary was 6.61% below the average salaries in those cities.  The four-city survey number was reviewed in context with both the current CPI and the amount forecasted in the FY 2005-06 budget to develop this years BFF compensation package.  

The negotiated package will provide all BFF members with a 4.00% salary increase effective July 1, 2005.  Also, in exchange for the creation of an Assessment Medic Pay the number of Paramedics will be reduced and the existing Paramedic Pay will be increased and made a percentage of salary.  The first Paramedic increase will go into effect on July 1, 2005, with the top pay at 14.50% of salary.  Effective January 1, 2006, the number of Paramedics will be reduced by six and the Assessment Medic Program will be implemented.   The top pay for the Assessment Medic will be 7.25% of salary.  Then on June 30, 2006, the top Paramedic Pay will be increased to 16.00% of salary and the top Assessment Medic Pay will be increased to 8.00% of salary.  Although this new Assessment Medic Program will reduce the number of Paramedics by six, it will greatly enhance the Department�s delivery of service over time.  A total of nine Assessment Medics (qualified Paramedics) will provide the resources to place a Medic on each engine company.  As such, each engine company will be able to respond immediately with a Medic and address medical emergencies while awaiting the arrival of a rescue ambulance.  The final pay component of the package is the establishment of a new differential of $100 per month for the 24 members of the Department�s Urban Search and Rescue (USAR) team.  The total cost for this package is 4.50% but will have an additional recurring cost of 0.26% going into the 2006-07 fiscal year due to the final portion of the Paramedic Pay increase (for Paramedics and Assessment Medics) that will go into effect June 30, 2006.  

In addition to the compensation portion of the package, the parties have also agreed to several language changes.  The major changes are as follows:

• The establishment of a labor/management committee to review the feasibility of a bid system, on a trial basis, for station assignments by January 2006;

• A change to the Fire Safety Officer (FSO) hiring practices that will require all BFF members to be trained and placed in the FSO card file without the option of withdrawing;

• The establishment of a trial period beginning no later than January 1, 2006 which will require a nine day hiring forecast to provide for the hiring of personnel three shifts prior to the assigned work day;

• Development of a committee to eliminate MOU language that is addressed in the Department Policy Manual; and,

• Agreement of the parties that an expanded survey to be used in future negotiations will be agreed to by December 31, 2005.

FISCAL IMPACT:

The compensation package of 4.50% is a total cost to the General Fund of $600,710.  Salary increases and equity adjustments were anticipated in the FY 2005-06 budget preparation.  However, the funds were not appropriated at the time of budget adoption.  As such budget amendments are required to appropriate the necessary funds from the Un-appropriated Fund Balance.

RECOMMENDATION:

Staff recommends City Council adoption of the proposed resolution approving the Memorandum of Understanding with the Burbank Fire Fighters for Fiscal Year 2005-06.

Respectfully submitted,

Judie Sarquiz

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