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CONTRACT 3298 - PERM Other CLOSED3298 LETTER OF AGREEMENT BETWEEN THE CALIFORNIA TEAMSTERS LOCAL 911/ EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES ASSOCIATION AND THE CITY OF EL SEGUNDO REGARDING IMPLEMENTATION OF AGENCY SHOP PROVISIONS Legislative Authority The City of EI Segundo (City) and the EI Segundo Supervisory and Professional Employees Association (Association) mutually understand and agree that as a result of State of California adoption of SB 739 and AB 1141, all full time benefited employees represented by the Association have the right to join or not join the Association. However, the enactment of a local "Agency Shop," pursuant to California Government code Section 3500 et.seq., 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 January 21, 2004, the Human Resources Division shall provide all current full-time benefited employees, and any full-time benefited employees hired thereafter, with an authorization notice advising them of the following information: (1) an Agency Shop arrangement for the Association has been enacted pursuant to state law; and (2) and that all employees subject to the Agency Shop arrangement must either join the Association, pay a service fee to the Association, or execute a written 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 (February 4, 2004) from the date they receive the form to fully execute it and return it to the Human Resources Division. (b) When the form is completed properly authorizing the deduction of Association dues or the service fee, and returned during the stated time period, the City shall begin the applicable deduction of Association dues or the service fee no later than the beginning of the first pay period commencing after receipt of the authorization form by the Human Resources Division. If the form is not completed properly and/or not returned within the stated time period, the City shall begin the deduction of the service fee no later than the beginning of the first pay period commencing after the expiration of the stated time period. If the authorization form is properly completed claiming the religious exemption and returned during the stated period, the procedure provided in Paragraph 3(b) shall be followed. (c) No deductions shall be made during any pay period when an employee's earnings are insufficient, after all other deductions are made, to cover the amount of the dues, or fees, or charitable contributions. When an employee is in a non -pay status for an entire pay period, no withholding will be made to cover the pay period from future earnings. In the case of an employee in a non -pay status only 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 any part of a pay period, no deduction shall be made. 3. Reiic6ous 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 financially support any public employee organization as a condition of employment. The employee may be required, in lieu of service fees, to pay sums equal to the service fees to a non -religious, non -labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three of these funds, designated in a memorandum of understanding between the City and the Association, or if the memorandum of understanding fails to designate the funds, then to any such fund chosen by the employee. (b) Written declarations of or applications for religious exemption and any supporting documentation may be submitted to the Human Resources Division. Within fourteen (14) calendar days of receipt of any such written request for religious exemption, the City shall forward a copy of it to the Association. After receipt of such a request, the City shall begin a deduction of the charitable contribution no later than the beginning of the first pay period commencing after the receipt of the request by the Human Resources Division. The charitable contribution shall be held in escrow pending receipt of the Association's written determination on the request for the religious exemption. Upon approval of the religious exemption by the Association and upon identification of an appropriate charity by the employee, the City shall remit the escrowed amount to the designated charity and thereafter remit the charitable deductions to the designated charity. Upon denial of the religious exemption by the Association, the City shall convert the charitable contribution to a service fee deduction and remit the escrowed amount to the Association as service fees. Charitable contributions shall be made by regular payroll deductions only. 4. Recision The agency shop arrangement may be rescinded by a majority vote of all the employees in the unit covered by the memorandum of understanding, provided that: (a) A request for such a vote is supported by a petition containing the signatures of at least thirty percent (30%) 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 memorandum of understanding, but in no event shall there be more than one recision vote taken during that term. (d) If a "recision vote" is approved by unit members eligible to vote in such matters 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 memorandum of understanding between the City and the Association. 5. 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 including claims relating to the Association's use of monies collected under these provisions. The Association shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City, and to its employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report 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. The City and Association agree that the City Council shall approve this letter of agreement prior to implementation of Agency Shop provisions provided for by California Government Code Section 3500 et. Seq. City of El Segundo: Dated By: 41ayorike Gordon Dated: B y C, C( Chester Mordasini, Teamsters Local 911 Approved as to form: Mark Hensley, City Attorney ATTEST: City C erg