1 STAFF REPORT
DATE: June 6, 2023
TO: Justin Hess, City Manager
FROM: Betsy McClinton, Management Services Director
VIA: Brady Griffin, Acting Assistant Management Services Dire ctor BY: Julie Chaidez, Senior Administrative Analyst
SUBJECT: Adoption of a Resolution to Approve a Memorandum of Understanding between the City of Burbank and the Burbank Management Association from Jul y 1, 2022 – June 30, 2025, and Adoption of a Resolution to Appr ove a Citywide Salary Schedule.
RECOMMENDATION
1. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK
APPROVING A MEMORA NDUM OF UNDERSTANDING (MOU) WITH THE
CITY OF BURBANK AND THE BURBANK MANAGEMENT ASSOCIATION
(BMA) 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 $486,222 from revenue account 001.ND000.30 010.0000.000000.00000 (General Fund, Non-Departmental, Unassign ed Fund Balance) to expenditure account 001.ND01A.60018.0000.000 000.00000 (General Fund, Non- Departmental, Sal aries Holding).
BACKGROUND
The Burbank Management Association (BMA) is a recognized employ ee organization that represents appr oximately 228 managers citywid e who have a
2 high level of responsib ility. BMA’s previous contract was in ef fect from January 1, 2019, through June 30, 2022.
The City and the BMA have reached a tentative agreement for the period of July 1, 2022, through June 30, 2025. T he tentative agreement include s changes in salary and benefits, as listed i n the Summary of Contract Chang es (Attachment 4) and reflected in the updated citywide salary schedule (Attac hment 2, Exhibit A).
In accordance with Government Cod e Section 20636 and California Code of Regulations Section 570.5, the Ca lifornia Public Employees’ Ret irement System (PERS) requires public agencies to post a publicly available sa lary schedule to determine earnable compensation th at is approved by the City Co uncil at a public meeting.
An amendment to the Fiscal Year 2 022/23 Adopted B udget is neces sary to cover the costs associated with the neg otiated terms of the new BMA M OU, which will ensure that the City of Burbank can continue to provide excepti onal services by remaining competitive in the rel evant market to recruit and ret ain a highly qualified workforce.
DISCUSSION
Negotiations with the BMA began in May 2022. Since then, staff and the BMA held 27 negotiation meetings to reac h a tentative agreement that wil l benefit both BMA employees and the City. Negotia tions centered on the Council’s adopted financial p o l i c y t h a t s t a t e s , “ i n o r d e r t o recruit and retain a well-qual ified workforce to provide exceptional se rvices, we will compen sate employees at a level commensurate with the average o f Burbank’s relevant labor marke t.”
As such, negotiations focused la rgely on establishing salary su rveys that best approximate the relevant labor ma rkets for both BMA’s utility a nd non-utility titles, thereby most effectively preser ving Burbank’s ability to recrui t and retain highly qualified employees. T he surveys revealed a challenging labor m arket for cities, with agencies providing higher t han usual increases in compensa tion over the next two to three years to remain competitive.
The City and the BMA have reached a tentative agreement for the period of July 1, 2022, through June 30, 2025. T his package includes changes i n salary and benefits, as listed in Attachmen t 4. Notable cont ract modificat ions include:
3 Salary Adjustments
Burbank’s relevant market includ es comparable classifications i n comparable municipalities in Southern Califo rnia, and a salary survey was conducted during negotiations for valuation o f relevant market salaries.
Based on the results of that surve y, a vast majority of BMA cla ssifications are significantly below the survey a verage. On average, the BMA is approximately
6.39% below the July 2022 market average, reflecting the increa ses provided by comparable municipalities to rem ain competitive in the challeng ing labor market.
To align immediately with the City’s financial policy to pay ma rket wages to recruit and retain a well-qualified workforce, staff proposes an averag e salary increase of 6.39%, based on survey, effective July 1, 2022. The increase provided to the classifications and the incumbent employees is 100% of the tota l salary increase necessary to move the salary ranges to the market average as of July 1, 2022.
These salary increases are refle cted in Column 3 of Attachment 3 (pages 93-96).
To keep pace with the upward trend reflected in recently settle d contracts in BMA’s relevant markets, staff pr oposes two additional increases over the course of the proposed term of the MOU. First, effective the pay perio d containing July 1, 2023, all BMA classifications and incumbent employees will r eceive a 3% salary increase. Second, effective the pay period containing July 1, 2 024, all BMA classifications and incumbent emp loyees will receive a 3% salar y increase
Medical Contribution
The City of Burbank is among othe r public agencies in Southern California who contract with PERS to provide medical insurance to its employee s. PERS increased their 2023 medical prem iums an average of 6.8% over 2 022, and staff calculated that PERS medical premiums have increased an average of close to 5% per year since th e COVID pandemic.
Therefore, staff proposes to increase the City’s monthly maximu m medical contribution by 6.8% to match PERS’ average premium increase in 2023, effective the pay period containing Decem ber 1, 2022, as sh own in Table 1 , Column 1.
Additionally, staff proposes to increase the City’s monthly max imum medical contribution an additional 5% per year over the next two years based on historical data and to maintain pace with in creasing medical costs. These increases would be effective the pay period cont aining December 1, 2023, and th e pay period containing December 1, 2024, as shown in Table 1, Columns 2 and 3.
4 Table 1: BMA Medical Contributions
Additional Benefits
The proposed MOU contains additio nal revisions to benefits inte nded to elevate or align Burbank’s standing withi n its relevant market and to a chieve parity among Burbank employees citywide. Thes e revisions are detailed in bot h Exhibit C (BMA Redline MOU) and Exhibit D (Summary of Contract Changes), and i nclude, but are not limited to:
Six weeks of paid Parental Leave;
Addition of Juneteenth Nationa l Independence Day as a holiday; Universal Leave accrual rate increase;
Percentage-based match to PEPRA employees’ deferred compensati on.
Special Pay
The proposed MOU also includes rev isions or additions to differ entials, overtime, and premium pay to address recrui tment and retention challenges specific to certain BMA titles, and to incentivize employees to achieve cer tifications that enhance the services they provide for the City. These changes a re detailed in both Exhibit C (BMA Redline MOU) and Exhibit D (Summary of Cont ract Changes), and include:
Establishment of a Certified P ublic Accountant d ifferential; Establishment of a Co llection Systems Maintenance differential ; Additional and expan ded eligibility for professional certifica te differentials; Reimbursable Overtime Pay for the Assistant Fire Marshal; Premium Pay for BWP El ectrical Engineers.
Finally, the proposed MOU contai ns minor revisions including cl ean-up language, which are detailed in Attach ment 3 (BMA Redline MOU).
ENVIRONMENTAL IMPACT
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical chan ge in the 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
5 environment, and such as, is not a “project” subject to the req uirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
Over the next three Fiscal Years, the cost of the compensation and benefit changes associated with the propos ed BMA MOU is $10,650,584 ($3 ,291,914 General Fund).
For FY 2022/23, the cost associa ted with the proposed changes i s $2,450,313 ($726,251 General Fund). To account for the FY 2022/23 cost, st aff requests Council approval to amend the FY 2022/23 Adopted Budget to appr opriate $486,222 from account 001.ND000.30010.0000.000000.00000 (Genera l Fund, Non-Departmental, Unassigned Fun d Balance) to expenditure accou nt 001.ND01A.60018.0000.000000.0000 0 (General Fund, Non-Department al, Salaries Holding).
The cost associated with the proposed changes in FY 2023/24 is $3,544,613 ($1,096,127 General Fu nd), and $4,655,658 ($ 1,469,536 General F und) in FY 2024/25. The cost for FY 2023/24 and FY 2024/25 will be incorpo rated in the Proposed Budget and Five- Year Financi al Forecast.
CONCLUSION
The City and the BMA have tentatively agreed to the provisions contained in the MOU (Attachment 3), pending City Council approval. Staff recomm ends the City Council adopt the resolution a pproving the BMA MOU. Adoption of the attached Resolution will support the Ci ty Council’s goal of operating th e City in a fiscally and managerially responsible ma nner and will support the City C ouncil’s adopted compensation policy to recruit and retain a well-qualified work force to provide exceptional services to the City of Burbank.
ATTACHMENT
Attachment 1 – BMA MOU Resolution
Attachment 2 – Resolution Approv ing the City’s Salary Schedule Attachment 3 – B MA Redline MOU
Attachment 4 – Summary of Contract Changes