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08-04-2020 - AGENDA ITEM 06 CONSIDERATION OF A SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE NON-SWORN SAFETY SUPPORT EMPLOYEES’ UNION12/1 /2020 Print Staff Report AGENDA ITEM NO. 6 DATE: August 4, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF A SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE NON -SWORN SAFETY SUPPORT EMPLOYEES' UNION RECOMMENDATION: It is recommended that the City Council adopt the following Resolution: RESOLUTION NO.2020-76 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE NON -SWORN SAFETY SUPPORT EMPLOYEES' UNION REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 1932 BACKGROUND: The West Covina Non -Safety Support Employees' Memorandum of Understanding (MOU) expired on June 30, 2017. Terms and conditions of employment were imposed and adopted to cover Fiscal Year 2017-2018, and have been in operation since that time. The City and the West Covina Non -Safety Support Employees Union, represented by Teamsters Local 1932 Union, met and conferred on ten (10) occasions and have reached a side letter of agreement. DISCUSSION: The City and the Non -Sworn Safety Support Employees' Union have memorialized a side letter of agreement. The terms and conditions agreed upon address the necessary cost -saving measures as a result of the City's dire financial condition, as declared by the City Council on May 19, 2020. As part of the side letter of agreement, the parties agree to continue discussions as to the preparation of a comprehensive memorandum of understanding that includes the terms of this side letter of agreement and prior side letters of agreement and addresses non -substantive clean-up of MOU language. LEGAL REVIEW: The City Attorney's Office has reviewed the resolution and approved it as to form. Prepared by: Helen Tran, HR/Risk Management Director https://destinyhosted.com/print_ag_memo.Gfm?seq=903&rev_num=0&mode=6demal&reloaded=true&id=93782 1/2 f 2/1 /2020 Print Staff Report Fiscal Impact FISCAL IMPACT: Anticipated savings is approximately $63,000 of benefits reductions suspension for a period of 6 months. Attachments Attachment No. 1 - Resolution No. 2020-76 Attachment No. 1 - Exhibit A to Resolution No. 2020-76 CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.Gfm?seq=903&rev_num=0&mode=6demal&reloaded=true&id=93782 2/2 RESOLUTION NO. 2020-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE SIDE LETTER OF AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF WEST COVINA AND THE WEST COVINA NON -SWORN SAFETY SUPPORT EMPLOYEES' UNION REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 1932 WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency through the adoption of Resolution No. 2020-46; and WHEREAS, in declaring the fiscal emergency, the City Council directed the City Manager to take any and all actions necessary to address the fiscal emergency, including, but not limited to, measures relating to personnel and benefit costs, operations, and reductions in service levels, and reviewing and negotiating changes to labor agreements, service agreements, and franchise agreements, to the extent permitted by law; and WHEREAS, the City of West Covina, hereinafter referred to as the "City," and the Non -Sworn Safety Support Employees' Union represented by the International Brotherhood of Teamsters Local 1932 have met and conferred in accordance with the Meyers-Milias-Brown Act and Government Code § 3500; and WHEREAS, the City and the Non -Sworn Safety Support Employees' Union represented by Teamsters Local 1932 have memorialized the agreement in a written side letter of agreement, which is attached hereto as Exhibit "A". NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA HEREBY RESOLVES AS FOLLOWS: SECTION 1. The Side Letter of Agreement, attached hereto as Exhibit "A," is hereby approved. SECTION 2. The City Manager is authorized to sign the Side Letter of Agreement. SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED AND ADOPTED this 4th day of August, 2020. Tony Wu Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-76 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 4th day of August, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk EXHIBIT A SIDE LETTER OF AGREEMENT Attachment No. 1 - Exhibit "A" SIDE LETTER OF AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF WEST COVINA AND WEST COVINA NON -SWORN SAFETY SUPPORT EMPLOYEES' UNION REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 1932 JULY 1, 2020 — JUNE 30, 2021 THIS SIDE LETTER OF AGREEMENT ("Agreement") memorializes an agreement entered into between the City of West Covina ("City') and the West Covina Non -sworn Safety Support Employees' Union ("Union") (collectively "Parties") with respect to the following: WHEREAS, the Parties agree to side letter of agreement for a period of one year from July 1, 2020 to June 30, 2021; and WHEREAS, the Parties agree that the amendments set forth in this Agreement shall be incorporated into the MOU; and WHEREAS, all other terms and conditions of the MOU shall remain in full force and effect. NOW THEREFORE, the Parties have agreed to amend the MOU as follows: 1. The term of the MOU shall be extended through June 30, 2021. 2. "Suspend" as used throughout this Agreement shall mean that the stated benefits will not be provided for the period of six (6) months from the date of Council ratification of this Agreement. After the end of the 6-month period, the suspended benefits will resume pursuant to previous terms. 3. CalPERS Employee's Contribution and Cost Sharing — Upon ratification, all employees shall pay an additional 3% of compensation earnable towards the employer contribution pursuant to cost sharing in accordance with Government Code Section 20516(f). The Parties agree that should the MOU expire without a successor agreement in place, the cost sharing contribution as described shall continue. 4. Suspend for 6 months from the date of Council ratification of this Agreement the $100.00 a month employer contribution to Retiree Health Savings Plan. 5. Suspend for 6 months from the date of Council ratification of this Agreement the Tuition Reimbursement Program provision. 6. Suspend for 6 months from the date of Council ratification of this Agreement Sick Leave Monetary Cash -Out at separation. Employees shall have all unused Attachment No. 1 - Exhibit "A" accumulated sick leave converted to additional service credit at retirement pursuant to Government Code section 20965. 7. Suspend for 6 months from the date of Council ratification of this Agreement the 'one-time" 10-hour vacation and one-time sick leave cash -out. 8. During the term of this Agreement, if another employee bargaining unit is subject to cost savings that are less than the equivalent of cost savings agreed to with the Union, the City agrees to provide the value of the equivalent lesser cost savings to the Union. 9. During the term of this Agreement, the Parties agree to continue discussions as to the preparation of a comprehensive memorandum of understanding that includes the terms of this Agreement and prior side letters of agreement and addresses non -substantive clean-up of MOU language. FOR THE UNION AND CITY OF WEST COVINA: I agree on behalf of the Union: I agree on behalf of the City: 4YAk, heri Orellana David Carmany Teamsters Local 1932 City Manager Date Date