10-06-2020 - AGENDA ITEM 09 CONSIDERATION OF A SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE WEST COVINA MAINTENANCE AND CRAFTS EMPLOYEES’ ASSOCIATION12/1 /2020
Print Staff Report
AGENDA ITEM NO. 9
DATE: October 6, 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 WEST COVINA MAINTENANCE AND CRAFTS EMPLOYEES'
ASSOCIATION
RECOMMENDATION:
It is recommended that the City Council adopt the following Resolution:
RESOLUTION NO.2020-79 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING THE SIDE LETTER OF AGREEMENT
BETWEEN THE CITY AND THE WEST COVINA MAINTENANCE AND CRAFTS
EMPLOYEES' ASSOCIATION REPRESENTED BY CITY EMPLOYEES ASSOCIATES (CEA)
BACKGROUND:
The West Covina Maintenance and Crafts Employees' Association represented by City Employees' Association
(CEA) Memorandum of Understanding expired on June 30, 2019. The City and the West Covina Maintenance
and Crafts Employees' Association met and conferred on eleven (11) occasions and have reached a side letter
of agreement.
DISCUSSION:
The City and the West Covina Maintenance and Crafts Employees' Association (WCMCEA) represented by
CEA have memorialized a side letter of agreement. The terms and conditions agreed upon address personnel -
related cost -saving measures immediately needed as a result of the City's dire financial condition, as declared
on May 19, 2020. The terms and conditions agreed upon were ratified by the employee group and such cost -
savings measures include the suspension of certain employment benefits for 6 months following City Council
ratification.
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
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12/1/2020 Print Staff Report
Fiscal Impact
FISCAL IMPACT:
Anticipated savings is approximately $25,200 of benefits reduction suspended for a period of 6 months.
Attachments
Attachment No. I - Resolution 2020-79 (MCEA)
Attachment No. 1 - Exhibit A - WCMCEA Side Letter Agreement Signed
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL
GOALS &
OBJECTIVES:
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RESOLUTION NO. 2020-79
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING THE SIDE
LETTER OF AGREEMENT BETWEEN THE CITY AND THE
WEST COVINA MAINTENANCE AND CRAFTS
EMPLOYEES' ASSOCIATION REPRESENTED BY CITY
EMPLOYEES ASSOCIATES (CEA)
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
West Covina Maintenance and Crafts Employees' Association represented by City
Employees Associates, have met and conferred in accordance with the Meyers-Milias-
Brown Act and Government Code § 3500; and
WHEREAS, the City and the West Covina Maintenance and Crafts Employees'
Association represented by City Employees Associates 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
HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The Side Letter of Agreement between the City and the West Covina
Maintenance and Crafts Employees' Association represented by City Employees
Associates, 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 6th day of October, 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. 2020-79 was duly adopted
by the City Council of the City of West Covina, California, at a regular meeting thereof
held on the 6th day of October, 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 MAINTENANCE & CRAFTS EMPLOYEES' ASSOCIATION
REPRESENTED BY CITY EMPLOYEES ASSOCIATES
JULY 1, 2019 — 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 Maintenance
& Crafts Employees' Association ("Association") (collectively, "Parties") with respect to
the following:
WHEREAS, the Parties entered into a Memorandum of Understanding (MOU) with
a term of July 1, 2017 to June 30, 2019; and
WHEREAS, the Parties agree to an extension of the MOU until 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 during the term stated, i.e. for the next six months
after ratification. After such time, the suspended benefits will resume pursuant
to previous terms.
3. CalPERS Employee's Contribution and Cost Sharing — Upon City Council
ratification of this Agreement, 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) for a six-month
period after the date of ratification. Should the City not have express agreement
from the Association to continue cost sharing beyond the six months, then cost
sharing shall cease after six months.
4. Suspend for six months from the date of City Council ratification of this
Agreement the $100.00 per month employer contribution to Retiree Health
Savings Plan. The employee contributions to the Retiree Health Savings Plan
are also suspended for six months. This is because all employees in the
Association must contribute to the Retiree Health Savings Plan for it to continue
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Attachment No. 1 - Exhibit "A"
alongside City suspension of the employer contribution, and not all employees
in the Association are contributing to the Retiree Health Savings Plan.
5. Suspend for six months from the date of City Council ratification of this
Agreement the Tuition Reimbursement Program provision.
6. Suspend for six months from the date of City Council ratification of this
Agreement Sick Leave Monetary Cash -Out at separation. Employees shall
have all unused accumulated sick leave converted to additional service credit
at retirement pursuant to Government Code section 20965.
7. Suspend for six months from the date of Council ratification of this Agreement
the one-time sixty (60) hours of sick leave cash -out in November of 2020. This
benefit will be reinstated, and employees shall be able to cash out up to sixty
(60) hours of sick leave in the next cash -out period in November of 2021. During
the period of suspension, if a unit member is subject to an involuntary
separation, then the member shall have all rights to cash -out sick leave
notwithstanding the suspension.
8. During the six month after Council ratification of this Agreement, if another
employee bargaining unit agrees to new set of cost savings that differ from the
initial set of cost savings agreed to with the City that are less than the equivalent
of cost savings agreed to with the Association through this Agreement, then the
Association may reopen the MOU, and the City agrees to provide the value of
the equivalent lesser cost savings to the Association.
9. The City agrees to not issue any notices of proposed layoffs to any Association
employees during the 30 days that immediately follow the date of City Council
ratification of this Agreement.
10. 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.
(SIGNATURE PAGE FOLLOWS.]
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Attachment No. 1 - Exhibit "A"
FOR THE ASSOCIATION AND CITY OF WEST COVINA:
I agree on behalf of the Association: I agree on behalf of the City:
Dave Branconier David Carmany
President City Manager
Date
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Date
Helen Tran
Director of HR/Risk Management
Date