CC SR 20160606 09 - OPEN Policy Staff Report FinalRANCHO PALOS VERDES CITY COUNCIL
MEETING DATE: 06/06/2016
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to approve an OPEN Policy and introduce an
Ordinance revoking the current OPEN Ordinance
RECOMMENDED COUNCIL ACTION:
(1) Give direction regarding the proposed OPEN Policy and direct Staff to meet and
confer with the RPVEA, as required by the Meyers-Milias-Brown Act; and,
(2) INTRODUCE ORDINANCE NO. , AN ORDINANCE OF THE CITY OF
RANCHO PALOS VERDES, CALIFORNIA, REPEALING CHAPTER 2.48 OF
TITLE 2 OF THE RANCHO PALOS VERDES MUNICIPAL CODE
REGARDING OPEN PUBLIC EMPLOYEE NEGOTIATIONS AND THE
PROCEDURE FOR ADOPTING OR AMENDING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND AN EXCLUSIVELY
RECOGNIZED EMPLOYEE ORGANIZATION (THE RPV "OPEN
ORDINANCE").
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Dave Aleshire, City Attorney
REVIEWED BY: Gabriella Yap, Deputy City Manager.
APPROVED BY: Doug Willmore, City ManagerVvuj
ATTACHED SUPPORTING DOCUMENTS:
A. Draft OPEN Policy (page A-1)
B. Draft Ordinance No. , AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES, CALIFORNIA, REPEALING CHAPTER 2.48 OF TITLE
2 OF THE RANCHO PALOS VERDES MUNICIPAL CODE REGARDING
OPEN PUBLIC EMPLOYEE NEGOTIATIONS AND THE PROCEDURE
FOR ADOPTING OR AMENDING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND AN EXCLUSIVELY
RECOGNIZED EMPLOYEE ORGANIZATION (THE RPV "OPEN
ORDINANCE") (page B-1)
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EXECUTIVE SUMMARY:
On March 16, 2016, the City Council suspended its Open Public Employee Negotiations
("OPEN") Ordinance, which set forth rules regarding the conduct of the City's labor
negotiations. The City Attorney's office was directed to return with options for the
development and implementation of an OPEN Policy. The City Attorney's office has
prepared a draft OPEN Policy including many of the requirements of the OPEN
Ordinance (Public Contract Code §22174, et seq.). Should the City approve the OPEN
Policy, it would need to meet and confer with the Rancho Palos Verdes Employees'
Association (RPVEA) prior to adopting the rule that rejected meet and confer proposals
must be posted on the City's website.
BACKGROUND AND DISCUSSION:
A. BACKGROUND
OPEN Ordinance
On May 6, 2014 the City adopted its Open Public Employees Negotiation (OPEN)
ordinance. The OPEN Ordinance included the following requirements for the City's
labor negotiations:
(a) City Representative. The City's lead negotiator may not be a City
employee. The City Council shall designate one or more City
management employees or other individuals to be present during
negotiations to assist the lead negotiator.
(b) Economic Analysis. The City's Department of Finance shall prepare a
fiscal impact analysis of any meet and confer proposal, proposed
Memorandum of Understanding, or proposed amendment to a
Memorandum of Understanding unless the City Council directs that a
fiscal impact analysis shall not be obtained. The fiscal impact analysis
shall be reviewed by an independent certified accountant who is not a
public employee. If the meet and confer proposal is rejected by the party
to which it is presented, the proposal and the fiscal impact analysis must
be posted on the City's website.
(c) Adoption of a Memorandum of Understanding. The City Council may
adopt or amend a Memorandum of Understanding or amendment only
after the Memorandum or Amendment has been placed on the agenda at
a minimum of two City Council meetings that are held at least two weeks
apart. Adoption of a Memorandum of Understanding shall not be placed
on the City Council's consent calendar.
The OPEN Ordinance, as currently written, is a Civic Openness in Negotiations
("COIN") ordinance, as defined by the Civic Reporting Openness in Negotiations
Efficiency ("CRONEY") Act. The CRONEY Act requires that, effective January 1, 2016,
cities which have adopted a COIN ordinance follow certain additional procedures for the
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negotiation and approval of goods and services contracts within an enumerated list of
subject areas that are valued at $250,000 or more. These additional procedures
include additional audits of the contract costs, public disclosure of all offers and
counteroffers within 24 hours, and the placement of the contract on two public meeting
agendas. On March 16, 2016, the City Council suspended the COIN or OPEN
ordinance and directed our office to explore the development and implementation of an
OPEN Policy in lieu of the ordinance.
B. ANALYSIS
Develoament of an OPEN Poli
The CRONEY Act only establishes the additional contract procedures and requirements
for cities that have implemented a COIN ordinance. Should the City Council wish to
continue to require the City's labor negotiations to be subject to the OPEN
requirements, while not triggering the requirements of the CRONEY Act, the City could
adopt an OPEN Policy. The Policy could mirror the OPEN Ordinance, or it could have
revised requirements.
2. ImDlementation of an OPEN Polic
The Meyers-Milias-Brown Act ("MMBA") governs labor relations between cities and their
unions. Under the MMBA, the City would be required to meet and confer with the
RPVEA prior to adopting certain rules about labor negotiations. If the City Council
adopts an OPEN Policy that mirrors the OPEN Ordinance, the City must meet and
confer with the RPVEA prior to adopting the rule that the rejected meet and confer
proposals must be posted on the City's website. In analyzing a similar County of
Orange ordinance, a Public Employment Relations Board (PERB) Administrative Law
Judge (ALJ) found that determining the confidentiality of negotiations was a ground rule,
and the County was not allowed to unilaterally implement the ground rule without first
meeting and conferring with the employee organizations.
In addition to meet and confer requirements, the MMBA also requires action by the
governing body on a tentative agreement within 30 days of the reaching of the tentative
agreement. If the City Council adopts a rule that the MOU must be on two City Council
meeting agendas prior to adoption, theoretically the two meetings can take place within
30 days and the rule would not violate the MMBA, per se. However it would be
important to build into the policy that if the meetings are not held within 30 days of the
reaching of a tentative agreement, that the Council must take action at the first meeting
or call the second meeting as a special meeting within the 30 days.
3. Draft Policv Terms
In order to comply with state law while still preserving many of the requirements of the
OPEN Ordinance, the City could adopt a policy with the following terms:
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(a) Negotiations Team. The City's lead negotiator may not be a City
employee. The City Manager may select the members of the negotiations
team and present them to the City Council for consent.
(b) Fiscal Analysis. The City's Department of Finance shall prepare a fiscal
impact analysis of any meet and confer proposal, Tentative Agreement,
proposed Memorandum of Understanding, or proposed amendment to a
Memorandum of Understanding unless the City Council directs that a
fiscal impact analysis shall not be obtained. If the City Council so directs,
the fiscal impact analysis may be reviewed by an independent certified
accountant who is not a public employee.
(c) Publication of Refected Meet & Confer Proposals. If a meet and confer
proposal is rejected by the party to which it is presented, the proposal and
the fiscal impact analysis shall be posted on the City's website.
(d) Action on Tentative Agreement. The City Council may take action to
accept or reject a Tentative Agreement only after the Tentative Agreement
has been placed on the agenda at a minimum of two City Council
meetings that are held at least two weeks apart. If the implementation of
this rule would result in the City Council failing to act on a Tentative
Agreement within 30 days of the Tentative Agreement, the City Council
may waive this requirement or call the second meeting as a special
meeting within the 30 days.
(e) Agenda Posting. A Tentative Agreement shall not be placed on the City
Council's consent calendar.
4. Other Public Aaencies
The County of Orange suspended its COIN ordinance due to the threat of litigation.
Beverly Hills and Costa Mesa also adopted Labor Negotiation Ordinances that were
described as COIN ordinances in the CRONEY legislative history.
Costa Mesa has maintained its COIN ordinance and has decided to comply with the
CRONEY requirements. It has obtained a consultant to evaluate the anticipated cost of
its incoming contracts. It has also developed an internal form to be used in its
contracting process which allows staff to evaluate whether the contract in question will
be subject to the CRONEY requirements. It should be noted that Costa Mesa does not
contract for public safety services, so the only contract this year that it anticipates will
fall under the CRONEY requirements is its landscaping contract.
Beverly Hills took the position that its Labor Negotiations Ordinance did not fit the
definition of a COIN ordinance under CRONEY. Beverly Hills nonetheless amended its
COIN ordinance to make it clear that an economic analysis would only be required for
the final proposed MOU, rather than at any earlier point in the labor negotiations. With
this change, Beverly Hills took the position that it would not need to comply with the
CRONEY requirements.
El
5. Inclusion of OPEN Policv in EmDlover-EmDlovee Relations Resolution
The City does not currently have an Employer -Employee Relations Resolution
("EERR"). The purpose of an EERR is to implement Chapter 10, Division 4, Title 1 of
the Government Code of the State of California (Sections 3500 et seq.) captioned
"Public Employee Organizations", to promote full communication between the City and
its employees by providing orderly procedures for the administration of employer-
employee relations between the City Management and its employee organizations and
for resolving disputes regarding wages, hours, and other terms and conditions of
employment. The purpose of an EERR is also to promote the improvement of
personnel management and employer-employee relations by providing a uniform basis
for recognizing the right of City employees to join organizations of their own choice and
be represented by such organizations in their employment relationships with the City.
Staff is currently updating the City's Personnel Rules and will be preparing a draft EERR
to present to the City Council as well. At that time, the City Council could give direction
as to whether the OPEN Policy should be included in the draft EERR.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternatives are available for the
City Council's consideration:
The City Council could amend the OPEN Ordinance to remove the
requirement that a fiscal analysis be prepared for meet -and -confer
proposals. This would likely revise the OPEN Ordinance sufficiently to
remove it from the definition of a COIN ordinance under the CRONEY.
The City would still be required to meet and confer regarding the
publication of rejected meet and confer proposals. [Beverly Hills
Approach.]
2. The City Council could re -institute the OPEN Ordinance and direct Staff to
develop protocols to comply with CRONEY.
3. The City Council could revoke the OPEN Ordinance and not implement a
replacement policy.
4. The City Council could extend the suspension of the OPEN Ordinance
until Staff has met and conferred with the RPVEA regarding the OPEN
Policy.
5. The City Council could direct Staff to revise the proposed OPEN Policy.
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CITY OF RANCHO PALOS VERDES
ADMINISTRATIVE INSTRUCTION
NUMBER
SUBJECT: LABOR RELATIONS
Background/Purpose
This Policy shall apply when the City Council considers (i) a written meet and confer proposal to
be presented to, or received from, any recognized employee organization, (ii) a Tentative
Agreement, or (iii) the adoption or amendment of a memorandum of understanding ("MOU").
II. Policy
A. Negotiations Team. The City's lead negotiator may not be a City employee. The
City Manager may select the members of the negotiations team and present
them to the City Council for consent.
B. Fiscal Analysis. The City's Department of Finance shall prepare a fiscal impact
analysis of any meet and confer proposal, Tentative Agreement, proposed
Memorandum of Understanding, or proposed amendment to a Memorandum of
Understanding unless the City Council directs that a fiscal impact analysis shall
not be obtained. If the City Council so directs, the fiscal impact analysis may be
reviewed by an independent certified accountant who is not a public employee.
C. Publication of Refected Meet & Confer Proposals. If a meet and confer proposal
is rejected by the party to which it is presented, the proposal and the fiscal impact
analysis shall be posted on the City's website.
4k
D. Action on Tentative Agreement. The City Council may take action to accept or
reject a Tentative Agreement only after the Tentative Agreement has been
placed on the agenda at a minimum of two City Council meetings that are held at
least two weeks apart. If the implementation of this rule would result in the City
Council failing to act on a Tentative Agreement within 30 days of the Tentative
Agreement, the City Council may waive this requirement or call the second
meeting as a special meeting within the 30 days.
E. Agenda Posting. A Tentative Agreement shall not be placed on the City Council's
consent calendar.
01203.00011298173.2
A-1
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES,
CALIFORNIA, REPEALING CHAPTER 2.48 OF TITLE 2 OF THE RANCHO
PALOS VERDES MUNICIPAL CODE REGARDING OPEN PUBLIC
EMPLOYEE NEGOTIATIONS AND THE PROCEDURE FOR ADOPTING OR
AMENDING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
AND AN EXCLUSIVELY RECOGNIZED EMPLOYEE ORGANIZATION (THE
RPV "OPEN ORDINANCE")
WHEREAS, on May 6, 2014 the City Council of the City of Rancho Palos Verdes
adopted Ordinance No. 556 adding Chapter 2.48 of Title 2 of the Rancho Palos Verdes
Municipal Code regarding open public employee negotiations and the procedure for adopting or
amending a Memorandum of Understanding between the city and an exclusively recognized
employee organization (the RPV "OPEN Ordinance");
WHEREAS, on March 15, 2016 the City Council suspended the OPEN Ordinance for
ninety (90) days and directed staff to prepare a Labor Negotiations policy;
WHEREAS, on June 6, 2016 staff presented a proposed Labor Negotiations policy to the
City Council;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES DOES ORDAIN AS FOLLOWS:
SECTION 1. The facts set forth in the Recitals of this Ordinance, are true and correct.
SECTION 2. Chapter 2.48, "Labor Negotiations" is hereby repealed in its entirety.
SECTION 3. Severability. If any section, subsection, subdivision, sentence, clause,
phrase, or portion of this Ordinance or the application thereof to any person or place, is for any
reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance. The
City Council hereby declares that it would have adopted this Ordinance, and each and every
section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the
fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or
portions thereof be declared invalid or unconstitutional.
SECTION 4. Effective Date. This ordinance shall be in effective on the thirtieth (30th)
day after the day of its adoption.
SECTION 5. Certification. The City Clerk shall certify to the adoption of this
Ordinance and shall cause the same to be posted in the manner required by law.
Page 1 of 2 B-1
01203.0004/298009.2
PASSED, APPROVED AND ADOPTED this day of June 2016, by the following
vote to wit:
Ken Dyda
Mayor
ATTEST:
Carla Morreale
City Clerk
APPROVED AS TO FORM:
David J. Aleshire
City Attorney
Page 2 of B_2
01203.0004/298009.2