RPVCCA_CC_SR_2014_04_29_01_Proposed_Open_Public_Employee_Neogtiations_OrdCrTYOF RANCHO PALOS VERDES
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR AND CITY COUNCIL MEMBERS
CAROL W. LYNCH, CITY ATTORNEY
APRIL 29, 2014
PROPOSED OPEN PUBLIC EMPLOYEE NEGOTIATIONS
("OPEN") ORDINANCE
CAROLYNN PETRU, ACTING CITY MANAGE~
RECOMMENDATION
INTRODUCE ORDINANCE NO._, AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES, ADDING NEW CHAPTER 2.48 TO TITLE 2 OF THE RANCHO
PALOS VERDES MUNICIPAL CODE REGARDING OPENNESS IN
NEGOTIATIONS AND THE PROCEDURE FOR ADOPTING OR AMENDING A
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND AN
EXCLUSIVELY RECOGNIZED EMPLOYEE ORGANIZATION.
BACKGROUND
At the study session on April 15, 2014, Councilmember Campbell introduced the
concept of having the City adopt an ordinance requiring open public employee
negotiations ("OPEN ORDINANCE") that would govern the City's labor negotiation
process, similar to ordinances that were adopted by the cities of Costa Mesa and
Beverly Hills. At the conclusion of the study session, the City Council unanimously
directed that the City Attorney's Office draft an ordinance for the City Council to
consider that would implement procedures designed to increase public awareness
of negotiations with recognized City employee organizations and proposed
memoranda of understanding with a City employee organization before those
memoranda are adopted.
DISCUSSION
The City Attorney reviewed the ordinance that was adopted by the City of Beverly
Hills, which was prepared by another attorney in the City Attorney's Office
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Proposed Open Public Employee Negotiations (OPEN) Ordinance
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April 29, 2014
(Richards, Watson & Gershon), and the ordinance that was adopted by the City of
Costa Mesa that was prepared by Liebert, Cassidy, Whitmore, which is the same
law firm that is representing Rancho Palos Verdes in its labor negotiations. Both
of those ordinances are attached to this report for the City Council's information.
Following input from Mayor Duhovic and discussions with Councilman Campbell,
they generally preferred the more streamlined ordinance that was adopted by the
City of Beverly Hills, so the draft ordinance that was prepared for Rancho Palos
Verdes is generally modeled after the Beverly Hills version of the ordinance, with
one exception, which is discussed in paragraph 1 below.
The proposed ordinance includes the following provisions:
(1) The City's Finance Department will prepare a fiscal impact analysis
of any written meet and confer proposal that has been submitted to
the other party to the negotiations. Such fiscal impact analysis will
be reviewed by an independent certified public accountant with
Government expertise. Previous written meet and confer proposals
that have been rejected and are no longer being considered, along
with their corresponding fiscal analyses, will be made public and shall
be posted on the City's website. This is the principal difference
between the draft ordinance and the Beverly Hills ordinance.
(2) A decision to adopt or amend a memorandum of understanding with
a labor organization will require that the matter be placed on the
agendas of two City Council meetings. The meetings shall be at
least two weeks apart.
(3) In accordance with the provisions of the Brown Act, the proposed
memorandum of understanding, or amendment, will be posted on the
City's website at least seventy two hours before the Council meetings
when the memorandum will be on the City Council's agenda.
(4) The proposed memorandum of understanding or amendment may
not be adopted on the consent calendar.
(5) Unless reported by the City Council as provided in paragraph (6)
below, the following procedures will be followed for the adoption or
amendment of a memorandum of understanding:
a. The lead negotiator for the City will not be an employee of
the City and will have expertise in labor negotiations. The City Council may appoint
one or more City employees or other individuals to assist the lead negotiator.
b. The City's Finance Department will prepare a fiscal impact
analysis, which will be reviewed by an independent certified public accountant with
governmental expertise, of any tentative agreement that will be considered for
adoption at a City Council meeting. The fiscal analysis will be made public and
posted on the City's website at least seventy two hours prior to the first meeting at
which the agreement is placed on the City Council's agenda.
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Proposed Open Public Employee Negotiations (OPEN) Ordinance
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April 29, 2014
(6) If the City Council chooses not to follow any of the procedures set forth
in paragraph (5) above, the City Council shall report this fact in writing at each
meeting when the agreement is placed on the City Council's agenda.
The requirement for a fiscal impact analysis will apply to a written meet and confer
proposal or to the adoption of memoranda of understanding with labor
organizations, and amendments to those memoranda, that are not governed by
California Government Code Section 7507. Government Code Section 7507
requires almost identical procedures to be followed when the City Council
considers changes to retirement plan benefits or other post-employment benefits.
However, because Government Code Section 7507 addresses changes to future
obligations (i.e., post-retirement benefits), Section 7507 requires an actuarial
analysis to be performed and made public, rather than a fiscal impact analysis.
FISCAL IMPACT
To the extent that the City engages an independent certified public accountant with
governmental expertise to review the fiscal impact analysis of a written meet and
confer proposal, proposed memorandum of understanding, or an amendment to a
memorandum of understanding, the proposed ordinance would create a
commensurate fiscal impact to account for the cost of this independent review.
Similarly, engaging a lead negotiator or an assistant to the lead negotiator who is
not a City employee also will have a fiscal impact. However, the City already has
followed this practice in conducting negotiations with the employee organization.
Attachments:
1) Draft Ordinance for the City of Rancho Palos Verdes
2) Title 2, Chapter 5, Article 5 (Labor Negotiations) of the Beverly Hills Municipal
Code
3) Title 2, Chapter VI, Article 2 (Civic Openness in Negotiations) of the Costa Mesa
Municipal Code
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES ADDING NEW CHAPTER 2.48 TO TITLE 2 OF THE
RANCHO PALOS VERDES MUNICIPAL CODE
REGARDING OPENNESS IN NEGOTIATIONS AND THE
PROCEDURE FOR ADOPTING OR AMENDING A
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY AND AN EXCLUSIVELY RECOGNIZED EMPLOYEE
ORGANIZATION
THE COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY
ORDAINS AS FOLLOWS:
Section 1. The City Council hereby adds Chapter 2.48 to Title 2 of the
Rancho Palos Verdes Municipal Code to read as follows:
2.48.010:
2.48.020:
2.48.030:
2.48.040:
2.48.050:
2.48.010:
Applicability
Definitions
"Chapter 2.48
LABOR NEGOTIATIONS
City Representative
Economic Analysis
Adoption of a Memorandum of Understanding
Applicability:
This Chapter shall apply when the City Council considers a written meet and confer
proposal to be presented to, or received from, any recognized employee organization or
the adoption or amendment of a memorandum of understanding ("MOU").
2.48.020: Definitions:
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For the purposes of this Chapter, the following words and phrases shall be defined as
follows:
A. MEET AND CONFER PROPOSAL shall mean a written proposal that is presented
to or received from any recognized employee organization.
B. MEMORANDUM OF UNDERSTANDING shall mean a formal signed agreement
between the City and an exclusively recognized employee organization.
2.48.030: City Representative:
A. · Unless reported as provided below, the lead negotiator on behalf of the City
during the negotiation of a memorandum of understanding or amendment to a
I
memorandum of understanding shall not be an employee of the City and shall have
demonstrated expertise in negotiating labor and employment agreements on behalf of
municipalities. The City Council shall designate one or more City management
employees or other individuals to be present during negotiations to assist the lead
negotiator as the City Council and lead negotiator deem appropriate.
B. If the lead negotiator of the City does not meet the requirements of this
Section, then this fact must be reported in writing at the meetings of the City Council at
which the memorandum of understanding or amendment is considered.
2.48.040: Economic Analysis:
A. Unless reported as provided in paragraph C below, the City Council shall
obtain from the City's Department of Finance, a fiscal impact analysis of a meet and
confer proposal, a proposed memorandum of understanding or an amendment to a
memorandum of understanding. The fiscal impact analysis shall be reviewed by an
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independent certified public accountant with governmental experience who is not a City
employee. If a statement of actuarial impact is required by California Government Code
Section 7507 or its successor for any change to retirement or other post employment
benefits, then the fiscal analysis required by this Section need not address the benefit
changes analyzed in the statement of actuarial impact.
8. If a meet and confer proposal is rejected by the party to which it is presented
and is no longer being considered, then the rejected meet and confer proposal and the
fiscal impact analysis that was prepared for that meet and confer proposal will be posted
on the City's website.
C. If a fiscal impact analysis is not obtained as required by this Section, then
this fact must be reported in writing at the meetings of the City Council at which the meet
and confer proposal or memorandum of understanding or amendment is considered.
2.48.050: Adoption of a Memorandum of Understanding:
A. The City Council may adopt or amend a memorandum of understanding
only after the memorandum or amendment has been placed on an agenda at a minimum
of two (2) City Council meetings that are held at least two (2) weeks apart.
8. A proposed memorandum of understanding or amendment to a
memorandum of understanding, as well as any fiscal impacts analysis prepared pursuant
to Section 2.48.040 of this Chapter, shall be posted on the City's official website at least
seventy-two (72) hours before the first City Council meeting at which the proposed
memorandum of understanding or amendment is considered.
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C. The adoption or amendment of a proposed memorandum of understanding
shall not be placed on the City Council's consent calendar.
Section 2. If any provision or clause of this ordinance or the application
thereof to any person or circumstances is held to be unconstitutional or otherwise invalid
by any court of competent jurisdiction, such invalidity shall not affect other provisions or
clauses or applications of this ordinance which can be implemented without the invalid
provisions, clause, or application; and to this end, the provisions of this ordinance are
declared to be severable.
Section 3. The City Clerk shall cause this Ordinance to be posted in three
(3) public places in the City within fifteen (15) days after its passage, in accordance with
the provisions of Section 36933 of the Government Code. The City Clerk shall further
certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and
its certification, together with proof of posting, to be entered in the Book of Ordinances of
the Council of this City of Rancho Palos Verdes.
Section 4. Effective Date. This Ordinance shall go into effect and be in
full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.
MAYOR
ATTEST:
City Clerk
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Sterling Codifiers, Inc.
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Article 5. Labor Negotiations
2-5-501: APPLICABILITY:
This article shall apply when the city council considers adopting or amending a
memorandum of understanding. (Ord. 13-0-2651, eff. 1-17-2014)
2-5-502: DEFINITION:
Page 1 of 2
For the purposes of this article, the following words and phrases shall be defined as follows:
MEMORANDUM OF UNDERSTANDING: A formal signed agreement between the city and
an exclusively recognized employee organization. (Ord. 13-0-2651, eff. 1-17-2014)
2-5-503: ADOPTION OF A MEMORANDUM OF UNDERSTANDING:
A. The city council may adopt or amend a memorandum of understanding only after the
memorandum or amendment has been placed on an agenda at a minimum of two (2) city
council meetings that are held at least two (2) weeks apart.
B. A proposed memorandum of understanding or amendment to a memorandum of
understanding, as well as any fiscal impacts analysis prepared pursuant to section 2-5-
505 of this chapter, shall be posted on the city's official website at least seventy two (72)
hours before the first city council meeting at which the proposed memorandum of
understanding or amendment is considered.
C. The adoption or amendment of a proposed memorandum of understanding shall not be
placed on the city council's consent calendar. (Ord. 13-0-2651, eff. 1-17-2014)
2-5-504: CITY REPRESENTATIVE:
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Sterling Codifiers, Inc. Page 2 of2
Unless reported as provided below, the lead negotiator on behalf of the city during the
negotiation of a memorandum of understanding or amendment to a memorandum of
understanding shall not be an employee of the city and shall have demonstrated expertise in
negotiating labor and employment agreements on behalf of municipalities.
If the principal representative of the city does not meet the requirements of this section, then
this fact must be reported at the meetings of the city council at which the memorandum of
understanding or amendment is considered. (Ord. 13-0-2651, eff. 1-17-2014)
2-5-505: ECONOMIC ANALYSIS:
Unless reported as provided below, the city council shall obtain from a consultant who is not
an employee, a fiscal impact analysis of the proposed memorandum of understanding or
amendment to a memorandum of understanding. If a statement of actuarial impact is
required by California Government Code section 7507 or its successor for any change to
retirement or other postemployment benefits, then the fiscal analysis required by this section
need not address the benefit changes analyzed in the statement of actuarial impact.
If a fiscal impact analysis is not obtained as required by this section, then this fact must be
reported orally at the meetings of the city council at which the memorandum of
understanding or amendment is considered. (Ord. 13-0-2651, eff. 1-17-2014)
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Costa Mesa, California, Code of Ordinances » TITLE 2 -ADMINISTRATION » CHAPTER VI. -
PERSONNEL» ARTICLE 2. CIVIC OPENNESS IN NEGOTIATIONS>>
ARTICLE 2. CIVIC OPENNESS IN NEGOTIATIONS
Sec. 2-236. Applicability.
Sec. 2-237. Independent economic analysis.
Sec. 2-238. Civic openness in the meet and confer process.
Sec. 2-239. Adoption of memorandum of understanding.
Secs. 2-240-2-244. Reserved.
Sec. 2-236. Applicability.
This article shall apply to all meet and confer processes undertaken pursuant to the Meyers-
Milias-Brown Act, where either a recognized employee organization or the city, through their
respective representatives, propose changes in wages, hours, or any other terms or conditions of
employment. In an effort to avoid inherent conflicts of interest, the principal representative
negotiating on behalf of the city 1) shall not be an employee of the city, 2) shall not be a member of
any retirement system providing a defined benefit to the member, and 3) shall have a demonstrated
expertise in negotiating labor and employment agreements on behalf of municipalities. The city
council shall designate one or more executive employees to be present during negotiations and to
assist the principal negotiator as the city council and/or principal negotiator deem appropriate.
(Ord. No. 12-7, § 2. 9-4-12)
Sec. 2-237. Independent economic analysis.
(a) In order to implement the requirements of section 2-236, the city shall have prepared on its
behalf, by an independent auditor in cooperation with the finance director, a study and
supplemental data upon which the study is based, determining the fiscal impacts attributed to
each term and condition of employment made available to the members of all recognized
employee organizations.
(b) The above report and findings of the independent auditor shall be completed and made
available for review by the city council and the public at least thirty (30) days before
consideration by the city council of an initial meet and confer proposal to be presented to any
recognized employee organization regarding negotiation of an amended, extended,
successor, or original memorandum of understanding.
(c) The above report shall be regularly updated by the independent auditor to itemize the costs
and the funded and unfunded actuarial liability which would or may result from adoption or
acceptance of each meet and confer proposal. These measurements shall display the fiscal
impacts of the employee association and/or city proposals. The report shall be prepared in
the following format, including all benefit and or pay aspects of each MOU, and shall include
written council member acknowledgement that the report has been read and considered by
the signing council member.
REPORT FORMAT
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lA.SSOCIATION
BENEFIT /PAY VALUE OF EXISTING PROJECTED EXISTING PROJECTED EXISTING PROJECTED
BENEFIT/PAY ~OST TO tOSTTO UNFUNDED UNFUNDED FUNDED FUNDED
~ITY tlTY _!ABILITY LIABILITY LIABILITY LIABILITY
COST COST
Base Salarv
Pension I Retirement
Benefit
Cafeteria-Health
Benefits
Bilingual Pay
Shorthand Pay
Holiday Allowance Pay
Longevity Pay
Class A/B License Pav
Shift Differential Pay
Shift Differential Pay-A/ M
Emergency Med
Dispatch Pav
tanine Care Pay
!Motor Officer
IMaintenance Pav
!Motor Officer
lA.sshmment Pav
Motor Training Officer
Assism Pav
POST Advanced
Certificate Pav
POST Intermediate
Certificate Pav
Uniform Pav·Patrol-2.5%
Paramedic
Assignment Pay
1st Medic Re-Certification Pay
2nd Medic Re-Certification
3rd Medic Re-Certification Pay
Medic Recertification
Bonus Pav
Investigator II
Certification Pay
Instructor II
Certification Pay
Instructor Ill
Certification Pay
Prevention Officer 11
Certification Pay
Prevention Officer Ill
Certification Pay
Public Education
Officer Certification Pav
Driver /Operator
Certification Pay
Rescue Specialist
Certification Pay
Confined Space Oper
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rrech Certification Pav
Specialized Rescue
!Tech Certification Pav
Firefighter II
Certification Pav
Fire Officer
Certification Pav
Chief Officer
Certification Pay
Fire Certification Pay-60 Units
Fire Certification Pav-120 Units
Fire Certification Pay-180 Units
Fire Certification Pay-AS/ M
Degree
Fire Certification Pay-BS/BA
Degree
Fire Certification Pay-MS/MA
Degree
Others as deemed necessary
COUNCIL MEMBER ACKNOWLEDGMENT
Council member (initials) Dated ;daterule;
Council member (initials) Dated ;daterule;
Council member (initials) Dated ;daterule;
Council member (initials) Dated ;daterule;
Council member (initials) Dated :daterule·
(Ord. No. 12-7. § 2. 9-4-12)
Sec. 2-238. Civic openness in the meet and confer process.
(a) Government Code section 3505, as it currently exists, mandates that changes in wages,
hours and other terms and conditions of employment be preceded by participation of
representatives from both the recognized employee organization and the city in good faith
"meet and confer." Government Code section 54957.6 authorizes the city council to meet in
closed session with its designated representatives for the purpose of reviewing its meet and
confer position and instructing its designated representatives as to how to participate in the
meet and confer process. The city council shall report out from such closed session the
facts, including their significance and impacts, relating to any and all prior offers,
counteroffers, and meet and confer-related bargaining positions made by either the city and
representatives of any employee organization, which were communicated to the city council
during the closed session and are no longer being considered. City council representatives
shall have a duty to advise the city council during any such closed session of offers,
counteroffers, information, and/or statements of position discussed by employee organization
and city representatives participating in the meet and confer process since the last such
closed session. This section shall not mandate publication of city council-directed future
proposals and/or the analytical thought process utilized by the city council in addressing
issues subject to the meet and confer process.
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(b) Each city council member shall disclose both publicly and during closed sessions, the
identity of any and all employee association representatives with whom the city council
member has had any verbal, written, electronic or other communication(s) regarding a
subject matter of a pending meet and confer process.
(Ord. No. 12-7. § 2, 9-4-12)
Sec. 2-239. Adoption of memorandum of understanding.
Excepting the resolution of any meet and confer impasse, the rendering of a final city council
determination regarding adoption of a memorandum of understanding shall only be undertaken
after the matter has been heard at a minimum of two (2) city council meetings wherein the public
has had the opportunity to review and comment on the matter. Not less than seven (7) days prior to
the first city council meeting where the matter shall be heard, the city shall post on its website those
materials explaining the basis for the memorandum of understanding under consideration for
adoption.
(Ord. No. 12-7. § 2, 9-4-12)
Secs. 2-240-2-244. Reserved.
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