RPVCCA_CC_SR_2012_01_17_E_Agency_Shop_AgreementCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ERIC MAUSSER,HUMAN RESOURCES MAN~
JANUARY 17,2012 ~P"v
AGENCY SHOP AGREEMENT BETWEEN THE CITY OF RANCHO
PALOS VERDES AND THE RANCHO PALOS VERDES EMPLOYEES
REVIEWED:::::::::R,CITY MANAGER ail
RECOMMENDATION
Adopt Resolution No.2012-_,approving an agency shop agreement and authorizing the
City's labor relations representative to implement the agreement.
DISCUSSION
California public sector labor law,as applicable to cities,expressly provides for the
establishment of an agency shop in a bargaining unit represented by a union recognized as
the exclusive representative.The exclusive representative has an obligation to represent
all employees in the unit.An agency shop requires unit employees to either join the union
or to pay a service fee for representation.An agency shop may be implemented pursuant
to agreement between the public agency and union or without agreement by petitioning the
California Division of Conciliation of the Department of Industrial Relations for an election.
The City Council recognized the Rancho Palos Verdes Employees Association
("Association")on October 18,2011,as the majority representative in a unit of non-
management,full-time employees.The Association requested implementation of an
agency shop agreement in November 2011.Subsequently,the Association submitted
proof that well over half of the employees in the bargaining unit support establishment of
an agency shop.The City Attorney's Office prepared a draft agreement which has been
accepted by the Association with one minor change.The change adds the words "upon
request"in Paragraph 9 of the agreement.This is the only change to the draft agreement
distributed to the City Council on December 20,2011.
"The Association will keep an adequate itemized record of its financial
transactions and shall make available annually,.upon request to the City
and to the employees who are members of the Association,within 60
days after the end of its fiscal year,a detailed written financial report
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Agency Shop Agreement
January 17,2012
Page 2 of 2
thereof in the form of a balance sheet and the opening statement,certified
as to accuracy by its president and treasurer or corresponding principal
officer or a certified public accountant,as provided in Government Code
§3502.5(f)."
In this case,over 90%of the employees in the unit signed the petition requesting an
agency shop.Once it is clear that employees want an agency shop,the advantage of
implementation by agreement is that the parties can provide for the administrative
procedures to be used,reducing the potential for disagreements.It also avoids the need
for employees to take time away from work for election activities.
CONCLUSION
.
Employees have the right to implement an agency shop.An employer's interest is
generally limited to procedural issues.The proposed agency shop agreement sets
reasonable procedures,as typically adopted by California cities,for implementation of the
agency shop.Having met the requirements under law,Staff recommends the City Council
approve the agreement and authorize implementation.
Attachments
Resolution No.2012-_,
Agency Shop Agreement
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RESOLUTION NO.2012·
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,APPROVING AN AGENCY SHOP AGREEMENT BETWEEN THE
CITY OF RANCHO PALOS VERDES EMPLOYEES ASSOCIATION AND THE
CITY OF RANCHO PALOS VERDES AND PROVIDING FOR ITS
IMPLEMENTATION.
WHEREAS,the City of Rancho Palos Verdes recognized and certified the
Rancho Palos Verdes Employees Association (Association)on October 18,2011
as the recognized employee organization for the designated non-management
employees of the City for purposes of employer-employee relations under the
Myers-Milias-Brown Act (MMBA),government Code Section 3500-3511 and
regulations of the Public Employment Relations Board (PERB).8 Cal.Code Reg.
Section 31001-3297;and,
WHEREAS,the MMBA expressly provides for adoption of an agency shop
agreement in a bargaining unit with a recognized exclusive representative;and,
WHEREAS,the Association has requested implementation of an agency".
shop agreement and provided proof that well over half the eligible employees in
the unit desire an agency shop;and,
WHEREAS,representatives of the City and the Association have mutually
agreed to tentative terms,pending City Council approval,for the agency shop
agreement.
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND,DETERMINE AND RESOLVE AS FOLLOWS:
Section 1:The Agency Shop Agreement between the City of Rancho Palos
Verdes and the Rancho Palos Verdes Employees Association,a copy of which is
attached to and incorporated by reference into this resolution,is hereby
approved.
Section 2:The Human Resources Manager,as the City's labor relations
representative,shall implement and administer the terms of the Agency Shop
Agreement on behalf of the City.
Section 3:This resolution shall take effect immediately.
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PASSED,APPROVED,and ADOPTED this 1ih day of January 2012.
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,hereby
certify that the above Resolution No.2012-_was duly and regularly passed
and adopted by the said City Council at a regular meeting thereof held on
January 17,2012.
City Clerk
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Agency Shop Agreement
City of Rancho Palos Verdes and
Ranchos Palos Verdes Employees Association
1.The City of Rancho Palos Verdes (City)and the Rancho Palos Verdes Employees
Association (RPVEA or Association)enter into this Agreement to implement an agency shop
agreement,pursuant to California Government Code §3502.5 and other applicable law.The
City is a "public agency"and the Association is recognized as the exclusive or majority
representative in the appropriate unit established by the City.Employees in the unit have
demonstrated their support for an agency shop by presenting a written petition for an agency
shop signed by a majority of the employees in unit.
2."Agency Shop,"as used in this Agreement,means "an arrangement that requires an
employee,as a condition of employment,either to join the recognized employee organization or
to pay the organization a service fee in an amount not to exceed the standard initiation fee,
periodic dues and general assessments of the organization."The "service fee"may also be
referenced as an "agency fee"or "agency shop fee"under applicable law and in this Agreement.
3.This Agreement will be placed in effect for the first full month following execution by
the Association and approval by the Rancho Palos Verdes City Council.Unless otherwise
agreed,all dues,service fees or charitable contributions (if eligible)for the month will be
deducted from the second paycheck of each month.
4.The parties recognize that employees in the unit have the right to join or not to join the
Association.Pursuant to an agency shop agreement,as provided under State law and this
Agreement,employees must either voluntarily join the Association or must pay a service fee.
The amount of the service fee will be a uniform amount established by the Association and
limited as provided by law.The amount of the service fee and any changes in the fee will be
certified in writing to the City by the President of the Association.
5.Any employee who is a member of a bona fide religion,body or sect that has historically
held conscientious objections to joining or financially supporting public employee organizations
shall not be required to join or financially support any public employee organization as a
condition of employment.
a.The employee will be required,in lieu or periodic dues,initiation fees,or agency
fees,to pay sums equal to the dues,initiation fees or agency fees to a nonreligious and
nonlabor charitable fund exempt from taxations under Section 501(c)(3)of the Internal
Revenue Code.The employee may choose the organization from a list of at least three
qualifying organizations designated by written agreement between the City and
Association or,ifnot so designated,then any qualifying charity chosen by the employee.
If the employee refuses to choose a qualified charity,the City and Association will
mutually designate the charity.
b.In the event of a dispute between the employee and Association regarding
religious exemption status,the Association will provide for an adjudication process,at
Association expense,before a neutral hearing officer who is not associated with the
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Association or its representatives.In the event of such a dispute,the charitable deduction
will commence but will be held in escrow pending resolution of the dispute.
6.Covered employees will execute written authorization for either Association dues
deductions,the agency fee,or,if eligible,the charitable contribution.In the absence of a written
authorization,the employee will be deemed an agency fee payer and City will deduct the agency
fee from the employee's paycheck.
7.Dues and service fees withheld by the City will be transmitted to the Treasurer of the
Association as the person authorized to receive such funds,at the address specified in writing.
The Association agrees to promptly refund to the City any amounts paid in error.Charitable
contributions,if applicable,will be transmitted to the applicable charity.
8.The employee's earnings must be regularly sufficient after other legal and required
deductions are made to cover the amount of the dues or fees authorized.When an employee is in
non-pay status for the entire second pay period of the month,no withholding will be made to
cover that month from future earnings,nor will the employee be permitted to deposit the amount
with the City that would have been withheld.When an employee is in non-pay status for part of
the second payroll period of the month and the salary is insufficient to cover the full withholding
after other deductions,no deduction will be made.All other legal and required deductions
(including group medical and insurance plans)and limits on withholding will have priority over
Association dues and service fees.Payment of dues or service fees during non-pay status or
where earnings are insufficient are to be addressed directly between the member and
Association.
9.The Association will keep an adequate itemized record of its financial transactions and
shall make available annually,upon request,to the City and to the employees who are members
of the Association,within 60 days after the end of its fiscal year,a detailed written financial
report thereof in the form of a balance sheet and the opening statement,certified as to accuracy
by its president and treasurer or corresponding principal officer or a certified public accountant,
as provided in Government Code §3502.5(t).
10.The Association will establish and thereafter provide the City with a copy of its current
"Hudson Procedure"for the determination and protest of its agency fees.The Hudson Procedure
will,at a minimum,comply with the minimum requirements of Public Employment Relations
Board regulations 32992 -32994.The Association will provide a copy of the Hudson Procedure
to every service fee payer within one month of this Agreement going into effect,annually
thereafter and as a condition of any change in the agency fee.The Association will provide a
copy of its Hudson Procedure to each employee newly covered as an agency fee payer after the
implementation of this Agreement,upon learning the identity of such fee payer.
11.Except as expressly provided in this Agreement,the procedures for voluntary dues
deductions,as agreed between the City and Association,will remain in effect.
12.Following implementation,this Agreement (including the agency shop)may be rescinded
by a majority of all votes cast by employees in the unit.In the event the agency shop is
rescinded pursuant to a majority vote of employees,the Association agrees not to request,
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R6876-1076\1409283vl.doc E-6
petition for,negotiate for or otherwise seek an agency shop for one calendar year from the date
of the final agency fee payroll deduction following the rescission vote.Rescission will be
subject to the following conditions:
a.A request for such a vote must be supported by a petition,filed with the City's
designated labor relations representative,containing the signatures of at least 30 percent
of the employees in the unit;
b.The vote is by secret ballot;and
c.The vote may be taken only once per year measured from the latter of the date this
Agreement becomes effective or the date of the last rescission election.
13.The Association agrees to defend,indemnify and hold harmless the City and its officers,
employe.es and agents against any and all claims,demands,proceedings,suits and liability
arising,directly or indirectly,out of any action taken or not taken by or on behalf of the City in
any way related to this Agreement or the City's compliance with the agency fee obligations.The
City reserves the right to select and direct legal counsel,at Association expense,in the event of
any challenge to the City's compliance with the agency fee obligation.
12.Representatives of the City and Association have reached agreement on the above terms
in response to the Association's request for an agency fee agreement and written proof of
majority support for such an agreement.The terms outlined above represent a joint
recommendation to the City Council for its determination and approval.This Agreement will
not be effective unless and until approved by the City Council.
Association
President
Treasurer
City
Principal Management Representative
Date:_______,2011
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Date:_______,2011
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