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2010 LQ City Employees' Association - Agency ShopAGENCY SHOP AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES' ASSOCIATION The La Quinta City Employees' Association ("Association") requested to meet and confer on the implementation of an agency shop in the City of La Quinta ("City") pursuant to California Government Code Section 3502.5. "Agency Shop" is defined in that statute as "an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization." The City and Association failed to reach an agreement on implementing an agency shop through the meet and confer process, and so Association exercised its right to petition for an election on this issue. An election was held on January 14, 2010 under the supervision and control of a representative from the State Mediation and Conciliation Services, and at that election a majority of the employees represented by the Association voted in favor of an agency shop. That vote is binding on the City. Therefore, the City and the Association have agreed on the implementation of an agency shop as set forth in this Agency Shop Agreement. All current employees and all employees who are hired after the effective date of this Agreement, which date shall be January 14, 2010, and who are in a job classification represented by the Association, shall within thirty (30) working days, become members of the Association or pay a service fee. Each fiscal year, Association shall inform the City in writing of the membership dues per pay period (prorated from the date an employee is hired). Employees shall be required to sign a Payroll Deduction Fonn authorizing the deduction of the dues or service fee from payroll. The requirement to pay dues or a service fee shall not apply to employees not represented by the Association. Dues or service fees withheld by the City shall be transmitted to the Association Officer designated in writing by the Association. The parties further agree that the failure of any employee represented by the Association to remain a member in good standing of the Association or to pay the service fee during the term of this Agency Shop Agreement shall constitute just and reasonable cause for termination of employment by the City, as required by Government Code Section 3502.5. The City shall not be obligated to put into effect any new, changed, or discontinued deduction until an Association membership card or signed Payroll Deduction Form is submitted to the City's Finance Department in sufficient time to permit normal processing of the change or payroll deduction. No employee shall be required to join the Association or to make a service fee payment if the employee is an actual, verified member of a bona fide religion, body or sect which has historically held conscientious objections to joining or financially supporting employee organizations as a condition of employment. This exemption shall not be granted unless and until such employee has verified the specific circumstances with the Association by filing a letter from the local head of the religion, body or sect. Such employee must instead arrange with the 397/015610-0005 1066779.01 e0128/10 Association to satisfy his/her obligation by donating the equivalent amount of the agency shop fees to anon-labor, non-religious charitable fund which is tax exempt under Section 501(c)(3) of the federal Internal Revenue Code. The employee shall be allowed to determine the charitable Fund, but must provide written proof of the donation to the Association and City monthly. The Association shall be fully responsible for expending funds received under this Agency Shop Agreement consistent with all legal requirements for expenditures of employees' dues, which are applicable to public sector labor organizations. Whenever an employee shall be delinquent in the payment of dues or service fees, Association shall give the employee written notice thereof and fifteen (15) days to cure the delinquency. A copy of said written notice shall be given to the City's Finance Department at the same time. In the event that the employee remains delinquent for a period of sixty (60) days, Association shall request in writing that the City initiate termination proceedings in accordance with the applicable City Personnel Rules governing termination from employment. These termination proceedings are specifically excluded from the City's grievance procedures. Association shall keep an adequate itemized record of its financial transactions. Within sixty (60) days after the end of the fiscal year, Association shall make available to the City and all represented employees a detailed written financial report thereof in the form of a balance sheet and operating statement, certified as to accuracy by the Association President and Treasurer, or corresponding principal officer, or by a certified public accountant. If the Association is required to file financial reports under the Labor-Management Disclosure Act of 1959 (29 U.S.C. 401 et seq), or is required to file financial reports under Government Code Section 3546.5, then Association may satisfy its financial reporting requirements with those financial reports. This Agency Shop Agreement shall become null and void if rescinded by a vote of the majority of the employees in the Association pursuant to Government Code Section 3502.5(d). Association shall defend, indemnify, and hold harmless the City and its elected and appointed officials, employees, and attomeys from any claim, demand, loss, liability, or cause of action, whether in a court of law or an administrative proceedings arising out of the City's compliance with its agency fee obligations under this Agency Shop Agreement. Upon commencement of such legal action or proceedings before an administrative agency, or the filing of a claim against the City, Association shall have the right to decide and determine whether any claim, lawsuit, or other action against the City, its elected or appointed officials, employees, or attomeys because of the City's enforcement of this Agency Shop Agreement shall be compromised, resisted, defended, tried, or appealed. Any such decision shall not diminish Associations defense or indemnification obligations under this Agency Shop Agreement. Upon the receipt of any lawsuit, claim, or other cause of action naming the City, City shall within two (2) business days inform the Association, and provide a copy of any such lawsuit, claim or other cause of action. During the pendency of any legal proceedings, City shall provide Association with all the information, documents and assistance reasonably necessary for the Association to defend or settle the matter, and shall fully cooperate with the Association in providing all necessary employees as witnesses. The cost of any such assistance shall be paid by the Association. 397/015610-0005 1066779.01 a0I28/10 -2- Upon the conclusion of any legal action involving the City's compliance with this Agency Shop Agreement, by judgment, compromise, appeal, or settlement, Association shall immediately pay the parties to such action all sums due under the judgment, compromise, appeal or settlement. This specifically includes any award of damages or costs to a City employee who has named the City in any legal or administrative proceeding. The provisions of this Agency Shop Agreement shall become null and void during the period of any violation by Association of the no-strike provisions of the current Memorandum of Understanding. Date: '~ - ~ , 2010 Date: Z ~ y , 2010 CITY OF LA QUINTA ..~/n/ Its: f~,,c ~..~t l~f~.° t P LA QUINTA CITY EMPLOYEES' ASSOCIATION By: ~!. _ Its: P+t~; a c.. ~ 397/015610-0005 1066779.01 a01R8/10 -3-