1 STAFF REPORT
DATE: June 24, 2025
TO: Justin Hess, City Manager
FROM: Betsy McClinton, Management Services Director
VIA: Julie Chaidez, Human Resources Manager
BY: Joy Casucci, Senior Administrative Analyst
SUBJECT: Adoption of a Resolution Approving a Memorandum of Understanding between the City of Burbank and the Burbank Management Association from July 1, 2025 – June 30, 2028
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING
A MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF BURBANK AND THE BURBANK MANAGEMENT ASSOCIATION ( BMA) FROM JULY 1 , 202 5 – JUNE 30, 2028.
BACKGROUND
The BMA is a recognized employee organization that represents approximately 2 49 managers citywide who have a high level of responsibility. BMA’s previous contract was in effect from January 1, 2022, through June 30, 2025.
The City and the BMA have reached a tentative agreement for the period of July 1, 2025, through June 30, 2028. The tentative agreement includes changes in salary and benefits, as listed in the Summary of Contract Changes ( Attachment 3) and reflected in the BMA Biweekly Salaries Chart (Attachment 3 Exhibit F).
DISCUSSION
Negotiations with the BMA began in October 2024. Since then, staff and the BMA held 24 negotiation meetings to reach a tentative agreement that will benefit both BMA employees and the City. Negotiations centered on the Council’s adopted financial policy that states, “in order to recruit and retain a well-qualified workforce to provide exceptional
MANAGEMENT
SERVICES
2 services, we will compensate employees at a level commensurate with the average of Burbank’s relevant labor market.”
As such, negotiations focused largely on establishing salary survey s that best approximate the relevant labor markets for both BMA’s utility and non-utility titles, thereby most effectively preserving Burbank’s ability to recruit and retain highly qualified employees. The surveys revealed a challenging labor market for cities, with agencies providing higher than usual increases in compensation 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, 2025, through June 30, 2028. This package includes changes in salary and benefits, as listed in Attachment 3. Notable contract modifications include:
Salary Adjustments
Burbank’s relevant market includes comparable classifications in comparable municipalities in Southern California, and a salary survey was conducted during negotiations for valuation of relevant market salaries.
Based on the results of that survey, a vast majority of BMA classifications are significantly below the survey average. On average, the BMA is approximately 9.06% below the July 2025 market average, reflecting the increases provided by comparable municipalities to remain competitive in the challenging labor market.
To align immediately with the City’s financial policy to pay market wages to recruit and retain a well -qualified workforce, staff proposes an average salary increase of 8.65%, based on survey, effective July 1, 2025. The increase provided to the classifications and the incumbent employees is 100% of the total salary increase, with a minimum increase of 2%, necessary to move the salary ranges to the market average as of July 1, 2025 , except for the title Administrative Analyst I. To mitigate the overall cost, the Administrative Analyst I classification and its incumbent employees will be adjusted to 67% of the average of the market salary survey in effect as of July 1, 2025. These salary increases are reflected in Column 3 of Attachment 2 Exhibit F.
To keep pace with the upward trend reflected in recently settled contracts in BMA’s relevant markets, staff proposes two additional increases over the course of the proposed term of the MOU. First, effective the pay period containing July 1, 202 6, all BMA classifications and incumbent employees will receive a 4 % salary increase, with the exception of the Administrative Analyst I classification and its incumbent employees. The remaining 33% of the average market salary for the Administrative Analyst I classification and its incumbent employees will be adjusted to 100% of the average of the market salary survey in effect as of July 1, 2025, and receive an additional four percent (4%) increase . 3 Second, effective the pay period containing July 1, 202 7, all BMA classifications and incumbent employees will receive a 3% salary increase
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 other City employee groups, effective December 1, 2025, December 1, 2026, and December 1, 2027. To maintain equity and alignment with those adjustments, staff recommends increasing the City’s monthly maximum medical contributions for BMA employees by 5% each December 1 throughout the term of the contract, as shown in Table 1, Columns 1, 2, and 3.
Table 1: BMA Medical Contributions
Special Pay
The proposed MOU also includes additions to differentials to address recruitment and retention challenges specific to certain BMA titles, and to incentivize employees to achieve certifications that enhance the services they provide for the City. These changes are detailed in both the BMA Redline MOU (Attachment 2) and the Summary of Contract Changes (Attachment 3), and include the establishment of the following:
• Certified Utility Safety Professional (CUSP) or Certified Safety Professional (CSP) differential;
• Building Inspector II/III differential;
• Real Estate State License or Certified Economic Developer (CEcD) differential; • Certified Park and Recreation Professional (CPRP) differential; • Certified Aquatic Facility Operator (AFO) differential; and • Certified Therapeutic Recreation Specialist (CTRS) differential.
Retirement Benefits
• 457 Plan-Matching Funds for PEPRA Employees
Under the Public Employees’ Pension Reform Act (PEPRA) of 2013, employees hired on or after January 1, 2013, receive significantly lower PERS retirement benefits than Column 1 Column 2 Column 3
Effective 12/01/2025 Effective 12/01/2026 Effective 12/01/2027 1 Party From $730 to $767 From $767 to $805 From $805 to $845 2 Party From $1,459 to $1,532 From $1,532 to $1,609 From $1,609 to $1,690 Family From $1,895 to $1,990 From $1,990 to $2,089 From $2,089 to $2,195 4 “Classic” members hired before that date. Currently, approximately 56% of all City employees—and 58% of BMA members—are PEPRA members.
To promote greater parity among all City employees and help address the retirement benefit gap between Classic and PEPRA BMA employees, staff recommends the following:
o Effective July 1, 2025: City will match PEPRA employee contribution up to 3% of employee’s base pay.
o Effective July 1, 2026: City will increase its match for PEPRA employees to up to 4% to of employee’s base pay.
Finally, the proposed MOU contains minor revisions including clean- up language, which are detailed in the BMA Redline MOU (Attachment 2).
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 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 compensation and benefit changes associated with the proposed BMA MOU is $17,520,466 ($8,609,530 General Fund).
For Fiscal Year ( FY) 2025-26, the cost associated with the proposed changes is $3,879,199 ($1,939,741 General Fund). Sufficient funds are available in the FY 2025-26 Adopted Budget to account for the cost; therefore, an additional budget appropriation is not required.
The ongoing fiscal impact associated with the proposed changes in FY 2026-27 is $6,048,292 ($2,983,784 General Fund), and $7,592,975 ($3,686,005 General Fund) in FY 2027-28, which will be incorporated in the Five-Year Financial Forecast.
CONCLUSION
The City and the BMA have tentatively agreed to the provisions contained in the MOU (Attachment 2), pending City Council approval. Staff recommends the City Council adopt the resolution approving the BMA MOU. Adoption of the attached Resolution will support the City Council’s goal of operating the City in a fiscally and managerially responsible manner and will support the City Council’s adopted compensation policy to recruit and retain a well-qualified workforce to provide exceptional services to the City of Burbank.
5 ATTACHMENTS
Attachment 1 – BMA MOU Resolution
Attachment 2 – BMA Redline MOU
Attachment 3 – Summary of Contract Changes