PURPOSE:

The purpose of this memorandum is to request City Council approval of the proposed resolution amending the Fiscal Year (FY) 2007-08 budget to provide for an increase in the salary ranges for Unrepresented Managers (�Z� Group members) effective July 1, 2007.

BACKGROUND:

In FY 2005-06 a three year agreement was reached for all of the miscellaneous bargaining groups.  In accordance with these agreements, staff implemented salary adjustments effective July 1, 2007 for the Burbank Management Association (BMA), Burbank City Employees Association (BCEA), and the International Brotherhood of Electrical Workers (IBEW).  In addition, the salary ranges for the Executives and Unrepresented Managers were adjusted. When the package for the Executives and Unrepresented Managers was approved in FY 2005-06, an inherent problem existed because in the third year the Executives received a budget cap of 4% and the Unrepresented Managers received a 3% budget cap.  The reason this poses a problem is due to the fact that all Unrepresented Managers have some form of an internal relationship to the Executives (except for the Administrative Analyst series and the Executive Assistants).  Thus, because the Executive package was one percent more, there is no way to maintain the existing internal relationships amongst the positions.

The Unrepresented Management group is an integral and valuable part of the organization. Over the next few years many of these employees will be sought out for promotional opportunities as employees retire as a result of the enhanced retirement that will go into effect in June, 2008.  It is also possible that these employees will be considered by other agencies as they slowly begin losing their baby boomer employment base.  As the retirements/vacancies begin to occur, the City will most certainly look to the Unrepresented Management group as key players who will maintain the existing workload and train others to step into positions.  Thus, due to their value in the organization, it is important that internal relationships be considered as well as maintaining a level of competitiveness so the City can retain the members of this group as well as recruit for the best qualified candidates to replace positions that will be lost over the next few years.  

As was previously stated, the Executive positions received a package in the third year that had a total budget impact of 4%.  Based on this dollar value, the Executive position ranges will be moved to 49.6% of the current survey (Exhibit A).  Conversely, the Unrepresented Managers (using the 3% budget cap) will receive 66% of survey (Exhibit B).  In reality, this is only 66% of the internal relationship to the Executive positions which are receiving 49.6% of survey.  As a result, the City is in the difficult position of not being able to bring the Executive position ranges to current survey which further impacts the salary ranges of the Unrepresented Management Group.  Based on this information, the reality of the situation is that in FY 2008-09 both the Executive and Unrepresented Managers will be significantly behind survey and the internal relationship ties will be considerably skewed.  This will not be an ideal circumstance at a time when the City will be losing employees at a higher than normal attrition rate due to the enhanced retirement.   

ANALYSIS & CONCLUSION:

Staff is requesting Council consideration of this additional 1% funding so that more ground is not lost between the long-standing relationships among the Executives and these key upper management positions.  The Unrepresented Managers are an integral part of the organization and their contributions should be recognized similar to those of the Executives, BCEA and IBEW.  All of these groups received range/salary increases on July 1, 2007 on a prorated basis pursuant to surveys with a total impact to the budget of 4%.     

FISCAL IMPACT:

Providing an additional 1% to the Unrepresented Management Group will cost $93,051.  This would allow these positions to get to an 88.2% tie to the Executive positions (which is based on the survey salary range movement outlined in Exhibit A) instead of the current 66% tie that was achieved with the 3% budget cap.  This would cost a total of approximately $93,051 to all funds and $81,784 to the General Fund.  This amount will be paid for by the Unappropriated Fund balance.

RECOMMENDATION:

Staff recommends City Council adoption of the proposed resolution to increase the salary ranges for Unrepresented Managers on a prorated basis pursuant to survey with a total salary impact to the budget capped at 4% as shown in Exhibit B and amend the Fiscal Year 2007-08 budget.