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Home My WebLink About03 SIDE LTR AG TPSSA 06-04-01AGENDA REPORT MEETING DATE: JUNE 4, 2001 540-20 NO. 3 06-04-01 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: HUMAN RESOURCES DEPARTMENT SUBJECT: APPROVE SIDE LETTER AGREEMENT WITH TUSTIN POLICE SUPPORT SERVICES ASSOCIATION RECOMMENDATION: Approve the Side Letter Agreement between the City of Tustin and the Tustin Police Support Services Association (TPSSA) authorizing provisions for an agency shop for the non-sworn police employees representation unit. FISCAL IMPACT: None. BACKGROUND AND DISCUSSION: On January 1, 2001 Senate Bill 739 (SB 739) became effective. SB 739 authorizes an agency shop arrangement without a negotiated agreement upon a signed petition by 30% of the employees in the applicable bargaining unit requesting an agency shop agreement (SB 739 does not apply to recognized employee organizations representing peace officers). In addition to the signed petition, to authorize an agency shop, the association must receive a majority approval of the employees voting in a secret ballot election on the issue. An agency shop means an arrangement that requires an employee, as a condition of continued 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 such organization. However, an employee who is a member of a bona fide religion, body, or sect which 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. Such employee may be required, in lieu of periodic dues, initiation fees, or agency shop fees, to pay sums equal to such dues, initiation fees, or agency shop fees to a nonreligious, nonlabor charitable fund exempt from taxation under Section 501 (c) (3) of the Internal Revenue Code. The City and the TPSSA have agreed upon the United Way, Community Health Charities and Tustin Community Foundation as the three funds from which an eligible employee may elect should he/she qualify for exemption pursuant to the conscientious objection provision. S:\City Council Agenda Items\TPSSA Agency Shop.doc AGENDA REPORT SIDE LETTER AGREEMENT-TUSTIN POLICE SUPPORT SERVICES ASSOCIATION JUNE 4, 2001 PAGE 2 The petition for an agency shop election was appropriately filed by TPSSA after 30 days of good-faith negotiations as required by law. The State Mediation & Conciliation Service conducted the agency shop secret ballot election by mail; ballots were counted on May 21, 2001. TPSSA received a majority approval of voters and is now eligible, pursuant to SB 739, to have an agency shop arrangement in the City of Tustin. The attached Side Letter Agreement outlines the rights of employees and the agency shop requirements, dues and/or service fees, exemptions, recession provisions, records requirements, and indemnification provisions. Arlene Marks, SPHR Director of Human Resources Attachment S:\City Council Agenda Items\TPSSA Agency Shop.doc SIDE LETTER OF AGREEMENT BETWEEN THE TUSTIN POLICE SUPPORT SERVICES ASSOCIATION (The Association) AND THE CITY OF TUSTIN (The City) DEALING WITH "AGENCY SHOP" 1. Legislative Authority The parties mutually understand and agree that as a result of State of California adoption of SB 739, all full time and part-time benefited employees represented by the Tustin Police Support Services Association have the right to join or not join the Association. However, the enactment of a local "Agency Shop" requires that as a condition of continuing employment, employees in the respective bargaining unit must either join the Association or pay to the Association a service fee in lieu thereof. Such service fee shall be established by the Association, and shall not exceed the standard initiation fee, periodic dues and general assessments of the Association. 2. Association Dues/Service Fees (a) Effective June 5, 2001, the Human Resources Office shall provide current full time and part-time benefited employees and any full time and part-time benefited employees hired thereafter, in the "Police Non-sworn" employees representation unit, with an authorization notice advising them that Agency Shop for the Association has been enacted pursuant to state law and an agreement exists with the Association, and that all employees subject to the Agreement must either join the Association, pay a service fee to the Association, or execute a wdtten declaration claiming a religious exemption from this requirement. Such notice shall include a form for the employee's signature authorizing a payroll deduction of Association dues, a service fee or a charitable contribution equal to the service fee. Said employees shall have 14 calendar days from the date they receive the form to fully execute it and return it to the City Human Resources Office. (b) If the form is not completed properly or returned within 14 calendar days, the City shall commence and continue a payroll deduction of service fees from the regular biweekly paychecks of such employee. The effective date of Association dues, service fee, or charitable contribution shall begin no later than the beginning of the first pay period commencing 14 calendar days after receipt of the authorization form by the employee. (c) The employee's earnings must be sufficient after the other legal and required deductions are made to cover the amount of the dues or fees authorized. When an employee is in a non-pay status for an entire pay period, no withholding will be made. In the case of an employee in a non-pay status during part of the pay period, whose salary is not sufficient to cover the full withholding, no deduction shall be made. In the case of an employee who is receiving catastrophic leave benefits during a pay period, no deduction shall be made. In this connection, all other legal and required deductions (including health care and insurance deductions) have priority over Association dues and service fees. S:\TPSSA~AGENCY SHOP- SIDE LE'I-rER OF AGREEMENT2.doc Page 1 of 3 3. Religious Exemption (a) 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 upon presentation of active membership in such religion, body, or sect, not be required to join or financially support any public employee organization as a condition of employment. The employee shall be required, in lieu of periodic dues, initiation fees or agency shop fees, to pay sums equal to the dues, initiation fees or agency shop fees to a nonreligious, nonlabor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from the following charities; United Way, Tustin Community Foundation, or Community Health Charities. Proof of the payments shall be made on an annual basis to the City as a condition of continued exemption from the requirement of financial support to the Association [Section 3502.5(c)]. (b) Declarations of or applications for religious exemption and any other supporting documentation shall be forwarded to the Association within 14 calendar days of receipt by the City. The Association shall have 14 calendar days after receipt of a request for religious exemption to challenge any exemption granted by the City. If challenged, the deduction to the charity of the employee's choice shall commence but shall be held in escrow pending resolution of the challenge. Charitable contributions shall be made by regular payroll deductions only. 4. Rescission The agency shop provision in this Side Letter Agreement may be rescinded by a majority vote of all the employees in the unit covered by the Side Letter Agreement, provided that: (a) A request for such a vote is supported by a petition containing the signatures at least 30 percent of the employees in the unit; (b) The vote is by secret ballot; (c) The vote may be taken at any time during the term of the represented units memorandum of understanding, but in no event shall there be more than one recission vote taken during that term. Notwithstanding the above, the City and the Association may negotiate, and by mutual agreement provide for, an alternative procedure or procedures regarding a vote on an agency shop agreement [Section 3502.5(d)]. (d) If a "recission vote" is approved by unit members during the term of a current memorandum of understanding, the Association agrees not to petition for or seek Agency Shop status for the duration of the current of the memorandum of understanding. S:\TPSSA~AGENCY SHOP- SIDE LETTER OF AGREEMENT2.doc Page 2 of 3 5. Records The Association shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City, and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an operating statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or by a certified public accountant. 6. Indemnification The Association shall indemnify, defend, and hold the City harmless against any liability arising from any claims, demands, or other action relating to the City's compliance with the agency fee obligation. 7. City Council Approval Authorization to approve this side letter of agreement shall be submitted to the City Council at its regular meeting on June 4, 2001. The Partie§ hereto have caused this Side Letter of Agreement to be executed the ~ ;J '"" day of May 2001. City of Tustin Dated: ,,~/2'.~ / ~ ! Tustin Police Support Services Association Dated: By: Arlene Marks, Director of Human Resources ~rmott, TPSSA President .... S:\TPSSA~GENCY SHOP- SIDE LETTER OF AGREEMENT2.doc Page 3 of 3