2 accordance with Government Code § 20636 and California Code of Regulations § 570.5.
This schedule is used by PERS to determine earnable compensation for BCEA employees.
DISCUSSION
The tentative agreement reached between t he City and the BCEA align s with the Council’s adopted financial policy that states: “In order to recruit and retain a well-qualified workforce to provide exceptional services, we will compensate employees at a level commensurate with the average of Burbank’s relevant labor market.” T he agreement includes adjustments to compensation and benefits, as outlined in the Summary of Contract Changes (Attachment 4). Notable modifications include salary adjustments, medical contribution, retirement benefits, and special compensation and allowances.
Salary Adjustments
Burbank’s relevant labor market includes comparable classifications in similar Southern California municipalities. A salary survey was conducted as part of negotiations to evaluate how BCEA salaries compare to relevant market rates. Survey results showed that the majority of BCEA classifications currently fall below the market average. As of July 2024 , BCEA classifications are, on average, 6.74% below the market average, reflecting substantial increases provided by other agencies over the last three to five years to remain competitive in a challenging labor market.
To bring BCEA salaries in line with the Council’s financial policy to pay the average of market to recruit and retain a well -qualified workforce, staff recommends an average salary increase of 6.74%, based on survey, effective May 25, 2025 (the beginning of the pay period following Council approval). This increase represents 100% of the adjustment needed to bring salary ranges to the market average as of July 1, 2024, with increases for individual positions ranging from a minimum of 2% and a maximum of 15%. All salary changes effective May 25, 2025, including exceptions for certain classifications, are listed in Exhibit N of the BCEA MOU (Attachment 3).
To stay ahead of market trends reflected in recently settled contracts within BCEA’s labor market, staff also recommends an additional 4% salary increase for most BCEA classifications and incumbent employees , effective June 22, 2025 (the pay period that includes July 1, 2025). All salary changes effective June 22, 2025, including exceptions for certain classifications, are listed in Exhibit N of the BCEA MOU (Attachment 3).
Medical Contribution
The City of Burbank is among other public agencies in Southern California who contract with PERS to provide medical insurance to its employees. To address anticipated average increases in PERS premiums based on historical trends, the Council previously approved 5% annual increases to the City’s monthly maximum medical contributions for 3 other City employee groups, effective December 1, 2024, and December 1, 2025. To maintain equity and alignment with those adjustments, staff recommends increasing the City’s monthly maximum medical contributions for BCEA employees by 5% effective December 1, 2024, and by an additional 5% effective December 1, 2025, as shown in Table 1, Columns 1 and 2.
Table 1: BCEA Medical Contributions
Retirement Benefits
Under the Public Employees’ Pension Reform Act (PEPRA) of 2013, employees hired on or after January 1, 2013 receive significantly lower CalPERS retirement benefits than “Classic” members hired before that date. Currently, approximately 56% of all City employees (and 60% of BCEA members) are PEPRA members.
To promote greater parity among all City employees and align with Council -approved benefit enhancements for other groups, staff recommends the following adjustments to the City’s 457 Deferred Compensation Plan match:
• For Classic members: Increase the City’s biweekly match from $25 to $30, effective May 25, 2025, consistent with other employee groups. • For PEPRA members: Replace the current $25 biweekly match with a percentage- based match of up to 2% of base pay, or $30 per pay period, whichever is greater, effective May 25, 2025. Increase match up to 3% to of base pay, effective June 22, 2025. This change helps address the retirement benefit gap between Classic and PEPRA employees.
Special Compensation and Allowances
To address recruitment and retention challenges in specific job classifications, compensate for additional time or costs associated with certain job functions, and encourage employees to earn certifications that enhance the services they provide to the City, staff recommends increasing existing and establishing new special compensation and allowance items for certain classifications, effective May 25, 2025. These items are detailed in both the BCEA Redline MOU (Attachment 3 ) and the Summary of Contract Changes (Attachment 4), and include:
Column 1 Column 2
Effective 12/01/2024 Effective 12/01/2025
1 Party From $695 to $730 From $730 to $767
2 Party From $1,390 to $1,459 From $1,459 to $1,532
Family From $1,805 to $1,895 From $1,895 to $1,990
4 • Increases to Existing Items
o Holiday Pay
o Refuse Collection Assignment
o Hazard Pay
o Stand-by/Call-Out Pay
o Retention Pay
o Tool Allowance
• New Items
o International Municipal Signal Association (IMSA) Certification o Certified Public Accountant (CPA)
o American Institute of Certified Planners Certification (AICP) o Institute of Transportation Engineers (ITE) Professional Transportation Planner certification (PTP)
o International Code Council (ICC) Certification for Building Inspector I o ICC Underground Storage Tank Inspector Certification
o Water Truck Assignment
Finally, the proposed BCEA MOU contains minor revisions, such as clean- up language, as detailed in the Redline MOU (Attachment 3). Notably, this clean- up includes the addition of compensation for Automotive Service Excellence (ASE) certification - Article II.H.48 of the Redline MOU (Attachment 3). Although this provision was previously overlooked and not formally incorporated into the MOU, ASE certification pay has been provided to employees in the classifications of Fleet Maintenance Technician and Senior Fleet Maintenance Technician, since December 2007.
ENVIRONMENTAL REVIEW
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 as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
The total cost of the compensation and benefit changes associated with the proposed BCEA MOU over the two-year contract period is $13,152,290 ($7,686,445 General Fund).
Sufficient funds are available in the Fiscal Year (FY) 2024-25 Adopted Budget to account for the changes associated with the proposed BCEA MOU in FY 2024-25. The ongoing fiscal impact of the changes associated with the proposed BCEA MOU is $8,167,509 ($4,774,861 General Fund) in FY 2025-26, which will be incorporated into the Five-Year Financial Forecast.
5 CONCLUSION
The proposed MOU between the City of Burbank and the BCEA reflects a collaborative effort to align employee compensation and benefits with the Council’s adopted financial policies, address current market conditions, and support the City’s goals for recruit ment and retention of a well-qualified workforce. The recommended changes, including market- based salary adjustments, increased medical contributions, enhanced retirement match options, and targeted special pay , are consistent with recent agreements reached with other employee groups. Staff recommends that the Council adopt the resolutions to approve the new BCEA MOU and the updated citywide salary schedule.
ATTACHMENTS
Attachment 1 – Resolution Approving the BCEA MOU Effective 7/1/24 – 6/30/26 Attachment 2 – Resolution Approving a Citywide Salary Schedule Attachment 3 – BCEA Redline MOU Effective 7/1/24 – 6/30/26 Attachment 4 – Summary of Contract Changes