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Resolution No. 2014-055RESOLUTION NO. 2014-55 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 47 FOR THE PERIOD OF JULY 1, 2014 THROUGH JUNE 30, 2016 WHEREAS, the International Brotherhood of Electrical Workers Local 47 ("IBEW") has been recognized as an employee organization pursuant to the City of Vernon Employer -Employee Relations Resolution (Resolution No. 4027); and WHEREAS, on July 15, 2014, the City Council of the City of Vernon adopted Resolution No. 2014-45 approving a Memorandum of Understanding ("MOU") setting forth certain terms and conditions for employment of City of Vernon employees in classifications represented by the IBEW, for the period of July 1, 2014 through June 30, 2016; and WHEREAS, representative members of the IBEW and the City have agreed to execute an Amendment No. 1 to the MOU (the "Amendment") relating to the DuPont schedule; and WHEREAS, the City Council desires to approve the Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3: The City Council of the City of Vernon hereby approves the Amendment No. I to the Memorandum of Understanding between the City of Vernon and the International Brotherhood of Electrical Workers Local 47, in substantially the same form as attached hereto as Exhibit A. SECTION 4: The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Amendment attached herein. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk's designee, to send a fully executed Amendment to Stan Stosel, IBEW Local 47 Senior Assistant Business Manager. - 2 - SECTION 6: The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk's, or Deputy City Clerk's, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 2nd day of September, 2014. Name: W. Michael McCormick Title: Mayor ATTEST: A arci -Ctt7-CI-7Z / Deputy City Clerk APPROVED AS TO FORM: Zayna V o ssa, Deputy City Attorney - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Ana Barcia --ett -r�/ Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2014-55, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, September 2, 2014, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this __�L day of September, 2014, at Vernon, California. (SEAL) - 4 - A arcia -^ ty ^ � Deputy City Clerk EXHIBIT A AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 47 July 1, 2014 through June 30, 2016 AMENDMENT NO.1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON Il►rc INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 47 Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code and Resolution No. 4027, the Resolution for the administration of Employer -Employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the International Brotherhood of Electrical Workers Local 47 (hereinafter "IBEW"). This Amendment to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the IBEW, to be submitted to the City Council of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the IBEW have agreed that they will jointly urge the City Council of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages, hours, and other conditions of employment agreed upon in this Amendment. If approved, the terms agreed upon by this Amendment to the MOU shall take effect on July 1, 2014 and shall expire at midnight on June 30, 2016. The terms agreed upon by this Amendment to the MOU are pursuant to California Code of Regulations (CCR) 571(a) and (CCR) 571 (b). CCR 571 (a) regulations state that the Fair Labor Standards Act (FLSA) overtime compensation paid as "normal work schedules" is a statutory 1 item and therefore must be considered as the normal work schedule for employees assigned to DuPont shifts. The "normal work schedule" for DuPont Schedule employees is an average of 42 hours per week, with eight (8) hours of overtime built into each pay period. The FLSA premium pay (.50 overtime) portion of the eight (8) overtime -hours must be reported as the normal full- time work schedule for CalPERS classic members on the DuPont Schedule (under current CalPERS regulations, no special compensation can be reported for new/PEPRA members). The additional premium pay compensation is reportable to Ca1PERS as special compensation. Pursuant to CCR 571 (b), items reportable to CalPERS as "Special Compensation" must be contained in a written labor contract or policy. The agreement reached by both parties relative to this specific section is now being incorporated into the MOU. All other items in the MOU shall remain in full force and effect. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the IBEW and the City of Vernon agree as follows: ARTICLE THIRTEEN WORK SCHEDULE AND WORKING CONDITIONS Section 3: DuPont Schedule The DuPont rotating shift plan provides 24/7 coverage of critical operational positions. This type of schedule has been utilized successfully in several United States industries in order to enhance workplace safety, provide sufficient rest for staff, decrease call backs and allow for more efficient shift coverage. 24-hour operational staff shall work a 12-hour shift. Employees assigned to the DuPont Schedule work an average of 42 hours per week and 84 hours per pay period. In. each pay period, employees work 36 hours one week and 48 hours the other week. • The DuPont schedule consists of 4 two -person crews assigned to 12-hour shifts in accordance with the following 4-week cycle: • 4 consecutive night shifts, followed by 3 consecutive days off duty; • 3 consecutive day shifts, followed by 1 day off duty; • 3 consecutive night shifts, followed by 3 consecutive days off duty; • 4 consecutive day shifts, followed by 7 consecutive days off duty. • Day 1 typically begins on a Monday, but it can be any day of the week. At the end of the 2 cycle, the entire sequence starts over. • Crews are able to review schedules in advance for planning. • Vernon Gas & Electric Utilities Dispatchers & Electric Operators are assigned to these shifts. • For CalPERS Classic Member employees assigned to the DuPont Schedule, up to 2,184 base annual hours worked shall be compensable hours reported to CalPERS. Within the 2,184 annual hours, compensation associated with FLSA premium pay (0.5 overtime portion) shall be reported as Special Compensation. • For CalPERS New/PEPRA Member employees assigned to the DuPont Schedule, up to 2,184 base annual hours worked shall be compensable hours reported to Ca1PERS. 3 SIGNATURE PAGE CITY OF VERNON IBEW LOCAL 47 Mark Whitworth City Administrator / "MERR" Teresa McAllister Director of Human Resources Kristen Enomoto Deputy City Administrator Alex Kung Economic Development Manager APPROVED AS TO FORM: Hema Patel, City Attorney APPROVED AND ADOPTED BY CITY COUNCIL ON RESOLUTION NO. ATTEST: Ana Barcia, Deputy City Clerk 11 Pat Lavin Business Manager/Financial Secretary Stan Stosel Senior Assistant Business Manager John Baca IBEW Business Representative Willie Carram Committee Member Jorrie Estrada Committee Member Michael Hendrickson Committee Member TRANSMITTAL COMMUNICATION CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: October 2, 2014 TO: Teresa McAllister, Director of Human Resources FROM: Deborah Juarez, Records Management Assistant RE: Resolution No. 2014-55 — A Resolution of the City Council of the City of Vernon Approving Amendment No. 1 to the Memorandum of Understanding by and Between the City of Vernon and the International Brotherhood of Electrical Workers Local 47 for the Period of July 1, 2014 Through June 30, 2016 Please find attached for your file a copy of the above -referenced resolution which was approved by City Council on September 2, 2014, and one fully executed original amendment for your transmittal to the appropriate party. The City Clerk's Office has retained an original for the file. Please ensure that a copy of the transmittal correspondence is sent to my attention. Thank you. Attachments c: Resolution No. 2014-55 Agreement No. 14-077 FULLY EXECUTED AGREEMENT CONTRACT/AMENDMENT SIGNATURE ROUTING FORM CONTRACTOR: International Brotherhood of Electrical Workers Local 47 CONTRACT PURPOSE: Amendment No. 1 to Memorandum of Understanding CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE ❑ COMPETITIVE SELECTION & NOTICED RFP ❑ COMPETITIVE BID & NOTICED INVITATION TO BID VEXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED) ❑ SERVICES MATERIALS AUDGETED o NOT BUDGETED TOTAL CONTRACT VALUE: $ /% A-/'/LJz— Charge Acct. No(s) Amendment Value $ ❑ Contract is an Amendment to Contract No. (if applicable) RESPONSIBLE DEPARTMENT PERSON: Teresa McAllister PHONE: ext 239 AUTHORIZATION: [Approved by Council on (Check One) Resolution No,1,2O / y S(if applicable) ❑ Approved by City Administrator on Note: Attach supporting documentation amendment Approved by City Council 09/02/2014 ROUTING SEQUENCE: (Please Follow In Order - Do not use N/A) (1) Responsible Department Person Checks substance of contract and assembles two (2) copies of contract, insurance & bond documents, certifies compliance with Competitive Bidding and Purchasing Ordinance (2) Liability and Claims Approves insurance and sureties, if bonds required (3) Finance (Purchasing) Checks compliance with Competitive Bidding & Living Wage Ordinances and reflected in current budget (4) City Attorney Approves contract as to form, verifies bonds and insurance included (5) City Signatory Signs all copies on behalf of City (6) City Clerk Attests signatures, numbers, files contract, insurance and bonds, and transmits duplicate original to contractor, notifies IT to remove related RFP/bid notice, notifies any "consultant' of duties to file Form 700, if applicable Initials Date Rev. l27/14 AMENDMENT NO.1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON :z1 INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 47 July 1, 2014 through June 30, 2016 AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON I:NE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 47 Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code and Resolution No. 4027, the Resolution for the administration of Employer -Employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the International Brotherhood of Electrical Workers Local 47 (hereinafter "IBEW"). This Amendment to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the IBEW, to be submitted to the City Council of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the IBEW have agreed that they will jointly urge the City Council of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages, hours, and other conditions of employment agreed upon in this Amendment. If approved, the terms agreed upon by this Amendment to the MOU shall take effect on July 1, 2014 and shall expire at midnight on June 30, 2016. The terms agreed upon by this Amendment to the MOU are pursuant to California Code of Regulations (CCR) 571(a) and (CCR) 571 (b). CCR 571 (a) regulations state that the Fair Labor Standards Act (FLSA) overtime compensation paid as "normal work schedules" is a statutory 1 item and therefore must be considered as the normal work schedule for employees assigned to DuPont shifts. The "normal work schedule" for DuPont Schedule employees is an average of 42 hours per week, with eight (8) hours of overtime built into each pay period. The FLSA premium pay (.50 overtime) portion of the eight (8) overtime -hours must be reported as the normal full- time work schedule for Ca1PERS classic members on the DuPont Schedule (under current CalPERS regulations, no special compensation can be reported for new/PEPRA members). The additional premium pay compensation is reportable to Ca1PERS as special compensation. Pursuant to CCR 571 (b), items reportable to Ca1PERS as "Special Compensation" must be contained in a written labor contract or policy. The agreement reached by both parties relative to this specific section is now being incorporated into the MOU. All other items in the MOU shall remain in full force and effect. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the IBEW and the City of Vernon agree as follows: ARTICLE THIRTEEN WORK SCHEDULE AND WORKING CONDITIONS Section 3: DuPont Schedule The DuPont rotating shift plan provides 24/7 coverage of critical operational positions. This type of schedule has been utilized successfully in several United States industries in order to enhance workplace safety, provide sufficient rest for staff, decrease call backs and allow for more efficient shift coverage. 24-hour operational staff shall work a 12-hour shift. Employees assigned to the DuPont Schedule work an average of 42 hours per week and 84 hours per pay period. In each pay period, employees work 36 hours one week and 48 hours the other week. • The DuPont schedule consists of 4 two -person crews assigned to 12-hour shifts in accordance with the following 4-week cycle: • 4 consecutive night shifts, followed by 3 consecutive days off duty; • 3 consecutive day shifts, followed by 1 day off duty; • 3 consecutive night shifts, followed by 3 consecutive days off duty; • 4 consecutive day shifts, followed by 7 consecutive days off duty. • Day 1 typically begins on a Monday, but it can be any day of the week. At the end of the 2 cycle, the entire sequence starts over. • Crews are able to review schedules in advance for planning. • Vernon Gas & Electric Utilities Dispatchers & Electric Operators are assigned to these shifts. • For CalPERS Classic Member employees assigned to the DuPont Schedule, up to 2,184 base annual hours worked shall be compensable hours reported to CalPERS. Within the 2,184 annual hours, compensation associated with FLSA premium pay (0.5 overtime portion) shall be reported as Special Compensation. • For CalPERS New/PEPRA Member employees assigned to the DuPont Schedule, up to 2,184 base annual hours worked shall be compensable hours reported to CalPERS. SIGNATURE PAGE CITY OF VERNON 22z�� Ma Whitworth Ci Administrator / "MERR" Teresa McAllister Director of Human Resources iste 4--- oto Deputy City Administrator Alex Cun Economic Development Manager L'/►11 � _tiorney I�1 IBEW LOCAL 47 Pat Lavin Business Manager/Financial Secretary_ Stan Stosel Senior Assistant Business Manager Baca IBEW Business Representative Willie Carrara Committee Member Committee Member , e &, mt xz, 5 6:� Michael Hendrickson Committee Member APPROVED AND ADOPTED BY CITY COUNCIL ON q 19 / 14 PER RESOLUTION NO. 2014-55 ATTEST: Ana Barcia, De uty-City Cle/rk ' Dated: LI Ili_ STAFF REPORT DATE: September 2, 2014 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator RE: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 47 Recommendation It is recommended that the City Council: 1) Find that approval of the resolution proposed in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. 2) Adopt the attached resolution approving Amendment No. 1 to the 2014-2016 Memorandum of Understanding by and between the City of Vernon and the International Brotherhood of Electrical Workers Local 47 as it relates to the DuPont work schedule. Backeround The City and the International Brotherhood of Electrical Workers Local 47 ("IBEW") concluded labor negotiations on June 18, 2014, regarding wages, benefits and working conditions for the 2014-2016 Memorandum of Understanding ("MOU"). On July 15, 2014, City Council adopted Resolution No. 2014-45 approving the MOU by and between the City of Vernon and IBEW for the period of July 1, 2014 through June 30, 2016. Pursuant to California Code of Regulations (CCR) 571(a) and (CCR) 571(b), the Fair Labor Standards Act (FLSA), overtime compensation paid regularly as part of an FLSA-exempt employee's `normal work schedule" is a statutory item and therefore must be considered part of the normal work schedule for employees assigned to DuPont shifts. The `normal work schedule" for DuPont Schedule employees is an average of 42 hours per week, with eight (8) hours of overtime built into each pay period. The FLSA premium pay (.50 overtime) portion of the eight (8) overtime -hours must be reported as the normal full-time work schedule for CAPERS classic members working the DuPont Schedule (under current CalPERS regulations, no special compensation can be reported for new/PEPRA members). The additional premium pay compensation is reportable to CAPERS as "Special Compensation". Pursuant to CCR 571(b), items reportable to CAPERS as "Special Compensation" must be contained in a written labor contract or policy. The agreement reached by both parties relative to the DuPont Schedule is recommended to be incorporated into the MOU to comply with California Code of Regulations (CCR) 571(a) and (CCR) 571(b). All other items in the MOU shall remain in full force and effect. The proposed amendment to the MOU covers the period of IBEW's current MOU term, which is effective July 1, 2014 through June 30, 2016. Fiscal Impact The approximate cost for the additional Ca1PERS employer contributions for the remainder of this fiscal year to adopt Amendment No. 1 to the 2014-2016 Memorandum of Understanding between the City and the International Brotherhood of Electrical Workers Local 47 is approximately $41,000 ($20,500 per fiscal year) and can be absorbed within the Gas and Electric Department's current budget.