PURPOSE:

The purpose of this memorandum is to request City Council approval of the proposed resolution which would adopt a three year Memorandum of Understanding (MOU) between the City and the Burbank Fire Fighters (BFF) and amend the Fiscal Year (FY) 2006 - 07 budget.

BACKGROUND:

Beginning in June 2006, the City began the FY 2006 - 07 negotiations with the Burbank Fire Fighters (BFF) and the Burbank Fire Fighters � Chief Officers Unit (BFF �COU).  All other recognized bargaining groups are currently in the midst of multiple year agreements.  In September 2006, the City and the BFF reached a tentative agreement on a three year agreement.  The BFF members ratified this agreement on September 22, 2006 and it is now being brought before the City Council for adoption. 

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 4.50%.

• The capacity in the City�s approved budget.

• 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 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 the past negotiations and an expanded 12 city survey (Anaheim, Costa Mesa, County of Los Angeles, Glendale, Long Beach, Newport Beach, Orange County Fire Authority, Pasadena, Riverside, Santa Ana, Santa Monica, and Torrance) were completed to provide an idea of the marketplace.

ANALYSIS & 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, both a four-city and twelve-city survey was completed and indicated that Burbank�s salary was 0.62 % to 6.65% below the average salaries in the comparable cities.  The survey data was reviewed in context with both the current CPI and the amount forecasted in the FY 2006-07 budget to develop this years BFF compensation package. The package is detailed as follows:

 Three Year Agreement � Total Cost of 15.50%

Year 1 � 5.82% Annual Cost

4.50% salary increase

$15 match to all employees into a retiree health insurance savings account (0.15%)

$15 match to all employees into a 401 (a) account (0.15%)

Medical benefits up to approximately 75% of PORAC (1.02%)

Year 2 � 5.50% Annual Cost

4.00% salary increase

Increase to medical benefits (1.09%)

Dental insurance (City would pay a maximum of $42 per employee) (0.41%)

Year 3 � 4.18% Annual Cost

4.00% salary increase

Increase to medical benefits (0.18%)

Beyond the salaries and benefits the City and the BFF agreed on several language changes including: a mandatory wellness-fitness program; an overtime selection penalty for illness or other reasons; and the establishment of a joint labor/management committee to review the feasibility of a bid system for station assignments, review of the fitness program trainer�s workload, potential use of Prop 172 funds, review of annual evaluation forms, and investigation of a trail period for alternate work schedules.  In addition, the parties agreed to remove the Urban Search and Rescue (USAR) differential of $100 per month in exchange for an increase in educational bonuses from $15 to $60 depending on the degree or certification. 

FISCAL IMPACT:

The final cost for this package is 15.50% over the three year period from July 1, 2006 through June 30, 2009.  

The first year impact of 5.82% is a total cost to the General Fund of $ 805,975.  Salary increases and equity adjustments were anticipated in the FY 2006 � 07 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 2006 � 2009 and amending the Fiscal Year 2006 � 07 budget.

Respectfully submitted,

Judie Sarquiz

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