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 � Chief Officers Unit (BFF-COU).

BACKGROUND:

Beginning in March 2005, the City began negotiations with the six bargaining groups.  Pursuant to the request of the BFF-COU, negotiations were suspended until the conclusion of the Burbank Fire Fighters (BFF) agreement.  In early July, Council approved a 4.50% Memorandum of Understanding (MOU) with the BFF.  During the months of July and August, staff met with the BFF-COU on a number of occasions.  On August 23, 2005, a tentative agreement similar to the BFF agreement was reached.  The BFF-COU has ratified this agreement.  Approval of this agreement will conclude the third settlement for this year�s 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.  In 2005, 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, promote 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-COU was not mutually agreed upon.  Thus, like the BFF, a true market survey was not used as the basis for determining the compensation for the BFF-COU. However, the traditional four-city survey (Glendale, Pasadena, Santa Monica, and Torrance) 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, promote and retain the most qualified Battalion Chiefs that this agreement was reached.  As was previously stated, although a true market survey was not used as the basis for determining the compensation package to be provided to the BFF-COU, the four-city survey was completed and indicated that Burbank�s salary was 6.74% below the average salaries in those cities.  The four-city survey number was reviewed in context with the current CPI, the amount forecasted in the FY 2005-06 budget, and the salary compaction between the ranks of Fire Captain (BFF) and Fire Battalion Chief.

The negotiated package will provide all BFF-COU members with a 4.50% salary increase effective July 1, 2005.   This proposal is consistent with the BFF agreement and will provide some relief to the salary compaction problem by increasing the base salary for Battalion Chief by one half percent more than that provided the Fire Captain.  This would increase the spread between a Fire Captain with differentials and a Battalion Chief from 2.04% to 6.47%. 

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

• One year agreement from July 1, 2005 to June 30, 2006

• Establish a Retirement Health Savings (RHS) Plan at no cost to the City

• Agreement on an expanded market survey for future negotiations by December 31, 2005

• Review of alternate retirement options (including PARS) for informational purposes only. 

• Development of a committee to eliminate MOU language that is addressed in the Department Policy Manual and other non-economic language changes so as to conform to current Department practice

FISCAL IMPACT:

The compensation package of 4.50% is a total cost to the General Fund of $47,768.  Salary increases 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 Fighter-Chief Officers Unit for Fiscal Year 2005-06.

Respectfully submitted,

Judie Sarquiz

Management Services Director