1 STAFF REPORT
DATE: February 14, 2023
TO: Justin Hess, City Manager
FROM: Betsy McClinton, Management Services Director
VIA: Brady Griffin , Acting Assistant Management Services Director BY: Julie Chaidez , Senior Administrative Analyst
SUBJECT: Adoption of a Resolution to Approv e a Memorandum of Understanding between the City of Burbank and the Burbank Fire Fighters Association from July 2022 – June 2025 and Adoption of a Resolution to Approve a Citywide Salary Schedule.
RECOMMENDATION
1. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK
APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE
CITY OF BURBANK AND THE BURBANK FIRE FIGHTERS ASSOCIATIO N (BFF) FROM JULY 1 , 2022 – JUNE 30, 2025 .
2. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A CITYWIDE SALARY SCHEDULE.
3. Amend the Fiscal Year 2022/ 23 Adopted Budget to appropriate $2,085,509 from revenue account 001.ND000.30010.0000.000000.00000 (General Fund, Non- Departmental, Unassigned Fund Balance) to expenditure account 001.ND01A.60018.0000.000000.00000 (General Fund, Non- Departmental, Salaries Holding).
BACKGROUND
The BFF is a recognized employee organization that currently includes a total of 113 Fire Fighters, Fire Engineers, and Fire Captains who play an integral role in providing reliable emergency and safety services to residents and businesses of Burbank. Serv ices include fire prevention, fire suppression, emergency medical
2 services (EMS), emergency management, fire apparatus and equipment, and training. BFF’s previous MOU expired on June 30, 2022.
The City and the BFF have reached a tentative agreement for a new MOU that includes changes in salary and benefits that are outlined below and reflected in the updated citywide salary schedule (Attachment 2, Exhibit A) . An amendment to the Fiscal Year 2022/23 Adopted Budget is necessary to cover the costs associated with the negotiated terms of the new BFF MOU , which will ensure that the City of Burbank can continue to provide exceptional services and keep its community safe by remaining competitive in the relevant market to recruit and retain highly qualif ied fire fighters .
DISCUSSION
Negotiations with the BFF began in June 2022. Since then, staff and the BFF held 19 meetings to reach a tentative agreement that will benefit both BFF members and the City . Negotiations centered on the Council’s adopted financial policy to compensate employees at a level commensurate with the average of Burbank’s relevant market . Negotiations also focused on how to most effectively address unprecedented recruitment and retention challenges faced industry wide and within the Burbank Fire Department (BFD) .
Over the last two years, the BFD has lost 18 employees to other agencies, 11 of whom were Paramedics . These losses have not only caused a negative impact on morale, but have added significant financial strain on the department; in fact, BFD estimates spending $2.25M on academies and paramedic training over last two year s, only to lose new staff to other agencies .
Throughout negotiations, the parties analyzed Burbank’s standing within its relevant market to help identify potential reasons for these losses and to work toward meaningful solutions. To assist in this analysis, a total compensation survey was conducted f or valuation of relevant market compensation items.
Burbank’s relevant market includes comparable classifications in the following 11 comparable municipalities in Southern California: City of Anaheim, City of Costa Mesa, City of Glendale, Los Angeles Count y, City of Long Beach, City of Newport Beach, Orange County Fire Authority, City of Pasadena, City of Riverside, City of Santa Monica, and City of Torrance.
Based on the results of that survey, the parties recognized that key compensation items were miss ing from BFF’s total compensation. Additionally, the parties negotiated enhancements to existing items to have the most impact toward ensuring BFD is competitive in its relevant market.
3 The City and the BFF have reached a tentative three year agreement covering the period of July 1, 2022 , through June 30, 2025 . This package includes changes in salary and benefits, as listed in Attachment 4, intended to make BFF’s total compensation package more competitive in its relevant market. Notable contract modifications include:
Salary Adjustment
To immediately address recruitment and retention challenges and to keep pace with the upward trend reflected in recently settled contracts in BFF’s relevant market , staff is proposing to provide salary increases to BFF members over three years as follows: 3% effective July 1, 2022; 4% effective July 1, 2023 ; and 4% effective July 1, 202 4.
Medical
The City of Burbank is among other public agencies in Southern California who contract with PERS to provide medical insurance to its employees . PERS increased their 2023 medical premiums an average of 6.8% over 2022, and staff calculated that PERS medical premiums have increased an average of close to 5% per year since the COVID pandemic .
Therefore, staff proposes to increase the City’s monthly maximum medical contribution by 6.8% to match PERS’ average premium increase in 2023, effective the pay period containing December 1, 20 22, as shown in Table 1, Column 1.
Additionally, s taff proposes to increase the City’s monthly maximum medical contribution an additional 5% per year over the next two years based on historical data and to maintain pace with increasing medical costs . These increases would be effective the pay period containing December 1, 2023 , and the pay period containing December 1, 2024, as shown in Table 1, Columns 2 and 3.
Table 1: BFF Medical Contributions
Column 1 Column 2 Column 3
Effective 12/01/ 2022 Effective 12/01/ 2023 Effective 12/01/ 2024 1 Party From $620 to $662 From $662 to $695 From $695 to $730 2 Party From $1,240 to
$1,324
From $1,324 to
$1,390
From $1,390 to
$1,459
Family From $1,610 to
$1,720
From $1,720 to
$1,805
From $1,805 to
$1,895
4 Paramedic Special Assignment Pay
For over 50 years, t he Burbank Fire Department has provided an EMS program that is recognized as one of the best in California, and among the leaders in the United States . Unfortunately, agencies throughout the state, including Burbank, have experienced staffing shortages of Paramedic Firefighters. BFD has lost 11 paramedics to other agencies over the last two years while E MS incidents continue to account for about 80% of the department’s call volume.
To ensure that Burbank’s leading EMS program continues to thrive , staff recommends increasing Paramedic Pay from 16% of Firefighter’s base wage to 20% of Firefighter’s base wage. Additionally, staff recommends increasing Assessment Medic Pay from a tiered system of 6.5%, 7.25%, and 8% of Firefighter’s base wage depending on year s of experience, to 10% of Firefighter’s base wage.
Emergency Medical Technician (EMT) Pay
As part of the total compensation survey that was conducted during negotiations, the parties discovered many of the agencies in Burbank’s relevant market provide an EMT differential, including Los Angeles County, where Burbank has lost nine of its Fire Fighters . Therefore, based on the results of the survey and to enable Burbank to compete more effectively in its relevant market, s taff recommends establishing a 5% differential for Fire Fighters who possess and maintain EMT certification.
Longevity Pay
The total compensation survey also revealed that more than half of the agencies in Burbank’s relevant market provide Longevity Pay , or a dditional compensation to employees who have been with an employer, or in a specified job classification, for a certain period of time . Therefore, based on the results of the survey and to enable Burbank to compete more effectively in its relevant market , staff recommends establishing Longevity Pay for BFF employees based on years of service as sworn personnel, including years gained at another agency or agencies, as set forth in Table 2.
Table 2: BFF Longevity Pay
Years of Service as Sworn Personnel Percentage of Base Pay 5 Years 2.5%
10 Years 5.0%
15 Years 7.5%
5 HazMat Technician Special Assignment Pay
During negotiations, staff conducted a survey for valuation of relevant market compensation for HazMat Pay in 2022, which revealed that Burbank’s current HazMat Pay is significantly below the market. Therefore, staff recommends increasing HazMat Pay for up to 24 HazMat technicians who are regularly assigned to HazMat duty from $270 per month to 6% of base pay. Additionally, staff recommends increasing the pay for HazMat technicians who are not regularly assigned to HazMat duty from a rate of $6.75 per six -hour period to 3% of base pay for being qualified when needed for HazMat duty.
Working Out of Class Benefit
Staff also conducted a survey for valuation of relevant market compensation for Working Out o f Class paid to employees in BFF’s relevant market in 2022. Based on results from the survey, staff recommends increasing the Working Out of Class benefit from $50 per shift to $150 per shift.
All Leave Counts Toward Hours Worked for FLSA
The Fair Labor Standards Act (FLSA) requires that employees are paid an overtime rate once they work beyond a specified number of hours during a defined period of time. Currently, BFF employees may count certain Leave types, including Vacation Leave, toward their hours worked to meet the FLSA threshold for overtime pay. Staff conducted a survey and identified that many of the agencies in Burbank’s relevant market count additional Leave types as hours worked toward FLSA compensation. Therefore, to be competitive and remain compet itive with Burbank’s relevant market, staff recommends counting all types of Leave for BFF employees toward the FLSA threshold.
Juneteenth
On August 23, 2022, the City Council adopted Resolution Number 22-29, 343 designating Juneteenth National Independence Day, or Juneteenth, as a holiday for City employees.
The proposed MOU includes negotiated language implementing the City Council’s direction.
Additionally, the proposed MOU contains minor revisions including clean- up language, which are detailed in Attachment 3 (BFF Redline MOU) .
Citywide Salary Schedule
In accordance with Government Code Section 20636 and California Code of Regulations Section 570.5, the California Public Employees’ Retirement System (PERS) requires public agencies to post a publicly available salary schedule to determine earnable compensation that is approved by the City Council at a public meeting.
6 ENVIRONMENTAL IMPACT
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and such as, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs §15378.
FISCAL IMPACT
Over the next three Fiscal Years, the cost of the compensat ion and benefit changes associated with the proposed BFF MOU is $11,521,031.
For FY 2022/ 23, the cost associated with the proposed changes is $2,728,117.
To account for the current FY cost, staff requests Council approval to amend the FY 20 22/23 Adopted Budget to appropriate $2,085,509 from account 001.ND000.30010.0000.000000.00000 (General Fund, Non- Departmental, Unassigned Fund Balance) to expenditure account
001.ND01A.60018.0000.000000.00000 (General Fund, Non- Departmental, Salaries Holding).
The cost associated with the proposed changes in FY 2023/ 24 is $3,815,003, and $4,977,911 in FY 2024 /25. The cost for FY 2023 /24 and FY 2024 /25 will be incorporated in the Proposed Budget and Five -Year Financial Forecast.
CONCLUSION
The City and the BFF have tentatively agreed to the provisions contained in the MOU (Attachment 3), pending City Council approval , that staff believes are critical to support BFD’s efforts to overcome unprecedented and costly recruitment and retention challenges. As such, s taff recommends the City Council adopt the resolution approving the BFF MOU. Adoption of the attached Resolution will support the City Council’s adopted compensation policy to recruit and retain a well- qualified workforce to provide exceptional services t o the City of Burbank .
ATTACHMENT
Attachment 1 – BFF MOU Resolution
Attachment 2 – Resolution Approving the City’s Salary Schedule Attachment 3 – BFF Redline MOU
Attachment 4 – Summary of Contract Changes