1 STAFF REPORT
DATE: September 12, 2023
TO: Justin Hess, City Manager
FROM: Betsy McClinton, Management Services Director
VIA: Ryan Sizemore, 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 International Brotherhood of Electrical Workers from July 1, 2023 – June 30, 2027 , 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 INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS (IBEW ) FROM JULY 1, 2023 – JUNE 30, 202 7.
2. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A CITYWIDE SALARY SCHEDULE.
BACKGROUND
The International Brotherhood of Electrical Workers (I BEW) is a recognized employee organization that includes a total of 133 employees who play an integral role in providing reliable, affordable, and sustainable water and electrical utilities to residents and businesses of Burbank. IBEW ’s previous contract expir ed on June 30, 20 23.
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
2 determine earnable compens ation that is approved by the Council at a public meeting.
DISCUSSION
Negotiations with the IBEW began in April 2023. Since then, staff and the IBEW held 16 meetings to reach an agreement that will benefit both IBEW 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 .
The City and the IBEW reached a tentative agreement for the per iod of July 1, 2023 , through June 30, 2027 . This package includes changes in salary and benefits, as listed in the Summary of Contract Changes ( Attachment 4). Notable contract modifications include:
Salary Adjustment
Burbank’s relevant market includes comparable classifications in one private utility, as well as comparable municipalities with publicly owned utilities in Southern California. A salary survey was conducted during negotiations for valuation of relevant mar ket salaries. The survey revealed a challenging labor market for cities and other utilities , with agencies providing higher than usual increases in compensation over the next two to four years to remain competitive.
Based on the results of that survey, s taff is proposing an average salary increase of 7.92%, effective July 1, 2023. The average 7.92% increase will bring the salaries of IBEW classifications and the incumbent employees to the average of IBEW’s relevant market in Fiscal Year (FY) 2023- 24.
Furthermore, t o keep up with the increases in compensation in IBEW’s relevant market that will be higher than usual in FY 2024/25, staff is proposing an average salary increase of up to 5.5 %, based on the results of a salary survey, effective July 1 , 2024. To maintain parity with increases that staff estimates will occur in the market over time, staff is proposing to provide IBEW members with an average salary increase of up to 4%, effective July 1
st of FY 2025- 26, and July 1 st of FY
2026- 27.
Overtime Compensation
A survey of Burbank’s relevant market also revealed that the majority of the agencies in the survey pay double the hourly rate for all overtime for utility employees that are in comparable classifications to Burbank’s IBEW members.
As such , to remain competitive in a particularly challenging labor market , and to continue to recruit and retain highly qualified employees who play an integral role 3 in providing reliable, affordable, and sustainable water and electrical utilities to the Burbank community , staff recommends paying all overtime at twice the hourly rate to IBEW employees.
Medical
The City is among other public agencies in Southern California who contract with CalPERS to provide medical insurance to its employees. Since the COVID -19 pandemic, CalPERS medical premiums have increased at a higher than usual rate, from an average of 3% -4% per year to nearly 5% per year. As such, Council recently approved s taff’s recommendations to increase the City’s monthly maximum medical contribution for other Burbank employee groups to keep pace with CalPERS’ anticipated increases of approximately 5% per year .
To achieve parity with other employee groups , staff recommends increasing the City’s monthly maximum contribution for IBEW , effective July 1, 2023, and December 1, 2023, by the amounts necessary to align with other Burbank employee groups, as shown in Columns 1 and 2. Further, to keep pace with staff’s estimation that CalPERS premium rates will continue to increase by an average of 5% per year, staff recommends increasing the City’s monthly medical contribution for IBEW an additional 5% per year effective December 1, 2024, December 1, 2025, and December 1, 2026, as shown in Columns 3 through 5.
Column 1 Column 2 Column 3 Column 4 Column 5
Effective
07/01/23
Effective
12/01/23
Effective
12/01/24
Effective
12/01/25
Effective
12/01/26
1 Party From $649 to
$662
From $662
to $695
From $695
to $730
From $730
to $767
From $767
to $805
2 Party From $1,298
to $1,324
From $1,324
to $1,390
From $1,390
to $1,459
From $1,459
to $1,532
From $1,532
to $1,609
Family From $1,685
to $1,720
From $1,720
to $1,805
From $1,805
to $1,895
From $1,895
to $1,990
From $1,990
to $2,089
Longevity Pay for Line Mechanics
Burbank offers a four -year state- certified apprenticeship program that equips aspiring Line Mechanics with highly specialized skills. Line Mechanics take on crucial responsibilities, often working at heights and with energi zed voltage systems, to ensure the safe and efficient construction and maintenance of the City’s overhead and underground power transmission and distribution lines . Given the exceptional demands and training required for their role, Line Mechanics are in h igh demand.
4 To retain Burbank’s Line Mechanics once they complete the city -funded apprenticeship program, and to compete with the high demand for trained Line Mechanics industry -wide, staff recommends implementing a tiered longevity pay system for employees in Burbank’s Line Mechanic series, as follows:
• 4% of base salary upon completion of Burbank’s apprenticeship program ; and
• Additional 1% of base salary per year thereafter, up to 8%.
Tool and Uniform Allowance
Currently, the City provides annual tool and uniform allowances to certain IBEW classifications. To address increasing material costs, staff proposes increasing the tool and uniform allowances for eligible IBEW employees by up to 4% in each year of the contract. This increase will be based on the average of salary survey data effective July 1 st of each year of the contrac t.
Additional Benefits
The proposed Memorandum of Understanding ( MOU) contains additional revisions to benefits intended to elevate or align Burbank’s standing within its relevant market and to achieve parity among Burbank employees citywide. These revisions are detailed in both the IBEW Redline MOU ( Attachment 3) and the Summary of Contract Changes ( Attachment 4 ), and include, but are not limited to:
• Six weeks of paid Parental Leave,
• Addition of Juneteenth National Independence Day as a holiday , • Increase to the City’s matching contribution toward CalPERS New Members ’ 457 Deferred Compensation plan; and
• Increase of the maximum tuition reimbursement to 75% of the cost up to $5,000 per employee per fiscal year.
Special Pay
The proposed MOU also includes new differentials and increases to existing differentials to address recruitment and retention challenges specific to certain IBEW titles, and to incentivize employees to achieve certifications that enhance the services they provide for the City. These changes are detailed in both the IBEW Redline MOU (Attachment 3) and the Summary of Contract Changes (Attachment 4), and include, but are not limited to:
• Establishment of a Streetlight Patrol/Troubleman Assignment Differential , • Establishment of a Welding Assignment Differential ; and • Increase to the existing Water Certificate Differential .
Additionally, the proposed MOU contains minor revisions including clean- up language, which are detailed in the IBEW Redline MOU (Attachment 3) . 5 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 course of the four Fiscal Years contained in the IBEW MOU, the cost of the compensation and benefit changes associated with the proposed MOU is $25,255,044; this cost will not result in further rate increases for BWP customers beyond those adopted by Council as part of the Fiscal Year 2023- 24 budget.
The cost associated with the proposed changes in FY 2023 -24 is $ 867,258.
Sufficient funds are available in the existing budget to account for the FY 2023- 24 cost. In addition, the cost associated with the proposed changes in FY 2024- 25 is $ 5,654,566, $ 7,134,400 in FY 2025 -26, and $8,721,431 in FY 2026- 27. The cost for FY 2024 -25, FY 2025- 26, and FY 2026 -27 will be incorporated in the Five - Year Financial Forecast. Therefore, an additional budget appropriation is not required for the total cost of the proposed MOU.
CONCLUSION
The City and the IBEW have tentatively agreed to the provisions contained in the MOU (Attachment 3), pending Council approval. Staff recommends the Council adopt the resolution approving the IBEW MOU. Adoption of the attached Resolution would support the Council’s goal of operating the City in a fiscally and managerially responsible manner while ensuring the City maintains its ability to recruit and retain a highly qualified workforce capable of continuing to provide reliable, affordable, and sustainable water and electrical utilities to residents and businesses of Burbank .
ATTACHMENT
Attachment 1 – IBEW MOU Resolution
Attachment 2 – Resolution Approving the City’s Salary Schedule Attachment 3 – IBEW Redline MOU
Attachment 4 – Summary of Contract Changes