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RPVCCA_CC_SR_2014_05_06_H_Ord_556_Open_Negotiations_Between_City_and_Emp_AssocCITY OF RANCHO PALOS VERDES MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR & CITY COUNCIL MEMBERS CAROL W. LYNCH, CITY ATTORNEY MAY 6, 2014 ADOPTION OF ORDINANCE N0.556-AN ORDINANCE ·OF THE CITY OF RANCHO PALOS VERDESADDING 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 ANDAN EXCLUSIVELY RECOGNIZED EMPLOYEE ORGANIZATION CAROLYNN PETRU, ACTING CITY MANAGE~ RECOMMENDATION Adopt Ordinance No. 556, an Ordinance of the City of Rancho Palos Verdes, Amending the Rancho Palos Verdes Municipal Code regarding City Negotiations with Recognized Employee Organizations. 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, similar to ordinances that were adopted by the cities of Costa Mesa and Beverly Hills. The City Attorney worked with Mayor Duhovic and Councilman Campbell and drafted an ordinance that contains concepts that were incorporated from both the Beverly Hills and Costa Mesa Ordinances. The Ordinance was presented to the City Council at the at the following City Council meeting on April 29, 2014. At that meeting, the City Council introduced Ordinance No. 556, as amended, to include a modification that was suggested by Council Member Knight to clarify that the City Council would determine whether the City's Finance Staff would prepare a fiscal impact analysis of any written meet and confer proposal. The Ordinance is on the agenda this evening for adoption by the City Council. H-1 Adoption of Ordinance No. 556 Page 2 of 2 May 6, 2014 DISCUSSION The procedures in the Ordinance are designed to increase public awareness of negotiations with recognized City employee organizations. The Ordinance gives the public an opportunity to review and comment upon proposed memoranda of understanding or amendments to memoranda of understanding with a City employee organization by placing these documents on two City Council agendas before such memoranda or amendments are adopted. At the direction of the City Council, 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. The Ordinance also requires that 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. The proposed ordinance is now on the agenda for a second reading and adoption. It will be effective thirty (30) days following its passage. Attachment: Ordinance No. 556 1709305 H-2 ORDINANCE NO. 556 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: R6876-000l\1706408v4.doc -1- H-3 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 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 the City Council directs that a fiscal impact analysis shall not be obtained, which shall be reported as provided in paragraph C below, the City's Department of Finance shall prepare a fiscal impact analysis of a meet and confer proposal, a proposed memorandum of understanding or an amendment to a R6876-000l\1706408v4.doc -2- H-4 memorandum of understanding. The fiscal impact analysis shall be reviewed by an independent certified public accountant with governmental expertise 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. B. 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. B. A proposed memorandum of understanding or amendment to a memorandum of understanding, as well as any fiscal impacts analysis prepared pursuant to Section 2.48.040 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. R6876-000I \l 706408v4.doc -3- H-5 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 R6876-0001\l 706408v4.doc -4- H-6