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Resolution Number 01-3-20-2RESOLUTION NO. 01-3-20-2 AMENDING FISCAL YEAR 2000-2001 CLASSIFIED MEMORANDUM OF UNDERSTANDING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AMENDING FISCAL YEAR 2000-2001 OF MEMORANDUM OF UNDERSTANDING - SAN JUAN CAPISTRANO CITY EMPLOYEES ASSOCIATION WHEREAS, a Memorandum of Understanding has been entered into between the San Juan Capistrano City Employees Association and the City of San Juan Capistrano, for the period of July 1, 2000 to June 30, 2002; and, WHEREAS, the City now desires to amend said Memorandum of Understanding in orderto implementthe provisions of an agency shop, in accordance with Senate Bill No. 739. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby amend the Memorandum of Understanding between the City of San Juan Capistrano and the San Juan Capistrano City Employees Association by the attached Side Letter of Agreement, instituting the provisions of an agency shop in accordance with Senate Bill No. 739. PASSED, APPROVED, AND ADOPTED this March .2001. WYA HART, MAYOR ATTEST: -1- 20th day of 34 3 346 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 01-3-20-2 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 20th day of March , 2001, by the following vote: AYES: Council Members Bathgate, Greiner, Swerdlin, and Mayor Hart NOES: None ABSTAIN:Council Member Gelff ABSENT: None (SEAL) DAWN SCHANDERL, ACTING CITY CLERK -2- 349 SIDE LETTER OF AGREEMENT BETWEEN THE SAN JUAN CAPISTRANO CITY EMPLOYEES ASSOCIATION (The Association) AND THE CITY OF SAN JUAN CAPISTRANO (The City) DEALING WITH "AGENCY SHOP" Legislative Authority The parties mutually understand and agree that as a result of State of California adoption of Senate Bill 739, all employees represented by the San Juan Capistrano City Employees 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. Supervisory employees, however, shall not be compelled to join the Association. 2. Association Dues/Service Fees (a) Effective April 1, 2001, the Personnel Office shall provide all current bargaining unit employees and all employees hired thereafter and whose positions are designated to the bargaining unit, with an authorization notice advising them that Agency Shop forthe 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 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 City's Personnel Office. (b) 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. 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. (c) " ne employee's earnings must be sufficient after the other legal and required 350 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 have priority over Association dues and service fees. 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 evidence 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 the United Way, through payroll deductions. (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 successfully challenged the deduction to the United Way shall commence and be made by regular payroll deductions. 3. Rescission The agency shop provision in this memorandum of understanding 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 petitiSn containing the signatures of 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 memorandum of understanding, but in no event shall there be more than one rescission 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 'rescission vote" is approved by unit members during the term of a current memorandum of understanding, the Association agrees not to petition for or seek 2 ATTACHMENT Agency Shop status for the duration of the current memorandum of understanding. 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 including claims relating to the Association's use of monies collected under these provisions [Section 3502.5(b)]. 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. 7. Election The City and the Association have jointly conducted a secret ballot election on February 7, 2001, to which all eligible bargaining unit members were invited, in writing, whether or not s/he is a current Association dues paying member. All eligible unit members in attendance were allowed to participate in voting, irrespective of current membership in the Association. Ballots were counted, in an open meeting, at the appointed time, by the City Clerk, with representatives of the City and the Association present. A majority of the votes cast (38 to 11) were in favor of the institution of the agency shop. 3 ATTAt HA= 351 352 8. City Council Approval With the foregoing agency shop provisions approved by the eligible bargaining unit employees on February 7, 2001, authorization to approve this side letter agreement shall be submitted to the City Council at its regular meeting of March 20, 2001. The Partiehereto have caused this Side Letter of Agreement to be executed on the k day of'Aa 2001. City of San Juan Capistrano Dated: Z©9 San Juan Capistrano City Employees Association s 1. /I��,Id ✓/ 12 ATTACHAEN P