CONTRACT 2886 - PERM Other CLOSEDLETTER OF AGREEMENT
BETWEEN THE EL SEGUNDO CITY EMPLOYEES ASSOCIATION
ANDTHE CITY OF EL SEGUNDO REGARDING IMPLEMENTATION OF
AGENCY SHOP PROVISIONS
Lecislative Authoritv
The City of EI Segundo (City) and EI Segundo City Employees' Association (Association)
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 EI Segundo City Employees'
Association have the right to join or not join the Association. However, the enactment of a local
"Agency Shop," pursuant to SB 739, 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 15, 2001, the Human Resources office shall provide all current full-time
and part-time benefited employees, and any full-time and part-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 from the date they receive the form to fully
execute it and return it to the Human Resources office.
(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 office. 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.
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(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 office. 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
office. 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 City reserves the right to select and direct legal counsel in the case of any
challenge to the City's compliance with the agency fee obligation, and the Association agrees to
pay any attorney, arbitrator or court fees related thereto.
6. Records
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.
7. Citv Council Accroval
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 SB 739.
City of EI Segundo:
Dated: b -1 3 -'C I
Mayor Vik
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EI Segundo City Employees' Association
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Dated: By:
Ja 4�r5r. President
Approved as to form;
Mark Hensley, City Attorney
ATTEST:
Deputy City Clerk