1 SIDE LETTER AGREEMENT AMENDING
THE JANUARY 1, 2021 TO DECEMBER 31, 2023
MEMORANDUM OF UNDERSTANDING BETWEEN
THE REDONDO BEACH TEAMSTERS PUBLIC, PROFESSIONAL &
MEDICAL EMPLOYEES, UNION LOCAL 911
AND THE CITY REDONDO BEACH
The Redondo Beach Teamsters, Union Local 911 (“Teamsters”) and the City of Redondo Beach (“City”), having previously negotiated and executed a Memorandum of Understanding for the Teamsters Unit for the period January 1, 2021 to December 31, 2023 (“MOU”), do hereby agree and adopt this side letter agreement (“Side Letter Agreement”) amending the MOU related to MOU ARTICLE III- SECTION 2 - MERIT PAY and in the following specific particularities only.
TERM OF SIDE LETTER AGREEMENT
This Side Letter Agreement shall commence the first full pay period after City Council adoption and upon execution and approval by both the Redondo Beach Teamsters and City, and unless earlier terminated as specifically provided herein, shall expire at 12:01am on December 31, 2023 ("Term"). This stated expiration of Term is an essential and material condition of this Side Letter Agreement, and may not be waived by any implied conduct of either party. Irrespective of any application of PERB Decision No. 2213-E, this Side Letter Agreement shall expire at 12:01am on December 31, 2023.
MOU ARTICLE III, SECTION 2 – MERIT PAY
Amendment of Section 2: During the Term of this Side Letter Agreement, Section 2 Merit Pay of the MOU shall be amended with an additional Section 2.02 added as follows:
Section 2.02.
A recruitment and retention bonus program is established to support the attraction and retention of maintenance employees in the Teamsters bargaining unit.
Sign-On Bonus for New Teamster Employees
The Sign-On Bonus shall apply to all new permanent, full-time members of the Teamsters bargaining unit.
$5000 will be payable in two $2500 installments after hire, contingent upon employee agreeing to remain employed for one year. The first installment will be paid the first full pay period after hire. The second installment will be paid the first full pay period after nine months of employment. This bonus is fully taxable and not reportable to CalPERS as pensionable compensation.
An employee is not eligible or becomes ineligible for the Sign-On Bonus if:
2 • The employee has been previously employed by City of Redondo Beach (rehire);
• The employee separates voluntarily or involuntarily from the agency before the completion of his/her probationary period;
• The employee subsequently transfers to another department before the completion of his/her probationary period.
A newly hired employee who participates in the sign on bonus program and remains employed will not be able to participate in the Existing Employee Retention Bonus #1 and #2 outlined below. However, such newly hired employees that remain employed, will be able to participate in subsequent Existing Employee Retention Bonus Programs #3 and #4 based upon meeting the attendance standards for those bonus periods.
Retention Bonus Program for Existing City Employees
Current City employees in Teamsters classifications may participate in the Retention Bonus program. Participation would become effective upon Council adoption of this side letter and will be based upon attendance as follows:
Existing Employee Retention Bonus #1
$5000 payable after side letter adoption. This bonus is fully taxable and not reportable to CalPERS as pensionable compensation. The Retention Bonus shall be paid in one lump sum on the first regularly scheduled pay date after side letter adoption, and with a minimum of 1630 (including base and overtime) hours worked in the previous twelve month period (Fiscal Year 2021-2022 payroll periods).
Existing Employee Retention Bonus #2
$5000 payable the first full pay period after December 31, 2022. This bonus is fully taxable and not reportable to CalPERS as pensionable compensation. This Retention Bonus shall be paid in one lump sum on the first regularly scheduled pay date following the first full pay period after December 31, 2022 and will be based on a minimum of 910 base (union leave, jury duty, and authorized bereavement leave included in base) and overtime hours worked during Pay Periods 2214 – 2226, from June 18, 2022 through December 16, 2022.
Existing Employee Retention Bonus #3
$5000 payable the first full pay period after June 30, 2023. This bonus is fully taxable and not reportable to CalPERS as pensionable compensation. This Retention Bonus shall be paid in one lump sum on the first regularly scheduled pay the first full pay period after June 30, 2023 and will be based on a minimum of 860 base (union leave, jury duty, and authorized bereavement leave included in base) and overtime hours worked during Pay Periods 2301 – 2313, from December 17, 2022 through June 16, 2023. 3 Existing Employee Retention Bonus #4
$5000 payable the first full pay period after December 31, 2023. This bonus is fully taxable and not reportable to CalPERS as pensionable compensation. This Retention Bonus shall be paid in one lump sum on the first regularly scheduled pay the first full pay period after December 31, 2023 and will be based on a minimum of 910 base (union leave, jury duty, and authorized bereavement leave included in base) and overtime hours worked during Pay Periods 2314 – 2326, from June 17, 2023 through December 15, 2023.
Existing employees that did not meet the attendance criteria to obtain Retention Bonus #1 after adoption of this side letter, but remained continuously employed and subsequently met the attendance criteria to obtain Bonuses #2, #3 and #4 as outlined above, will earn an additional bonus of $5000 on the first regularly scheduled pay the first full pay period following December 31, 2023.
Vacation Accrual
During the period of time this side letter is in effect, vacation accrual will not be capped as currently listed in Article VI, Section 2 of the MOU.
INCORPORATION CLAUSE
This Side Letter Agreement contains the entire agreement between the parties related to the amendment and restatement of MOU ARTICLE III- SECTION 2- MERIT PAY during the Term. There are no other, and neither the Teamsters nor City have relied upon any, agreements, understandings, or representations related to the subject matter of this Side Letter Agreement not specifically set forth in writing herein. In the event of a conflict between any term or condition of this Side Letter Agreement and the MOU, this Side Letter Agreement shall control. This Side Letter Agreement may be amended only by a written document executed by both parties. No act or omission of a party shall be construed or implied to be a waiver of any term or condition of this Side Letter Agreement.
SAVINGS CLAUSE
The terms of this Side Letter Agreement have been reached by the parties after negotiations and fulfillment of all legally required meet and confer obligations. In the event of any dispute as to the meaning of any term or condition of this Side Letter Agreement, the parties shall meet in good faith to resolve such dispute. If any such dispute is not resolved within a reasonable period of time, the exclusive resolution of such dispute shall be by determination of the City Manager. The parties agree that in the event any term or condition of this Side Letter Agreement violates (now or in the future) any applicable state or federal law, the City Manager shall have the power to reform this Side Letter Agreement, but only to the extent so that it is fully compliant with such state or federal law; provided, however, the City Manager shall not have any power to reform, declare, order or award that the MOU shall supersede or control any term or condition this Side Letter Agreement.
4 NO OTHER AMENDMENT OR MODIFICATION
Except as specifically provided herein, no other term or condition of the MOU is modified or amended by this Side Letter Agreement.
FOR THE ASSOCIATION: FOR THE CITY:
_____________________________ ______________________________ Carlos Rubio, Teamsters Representative William C. Brand, Mayor APPROVED AS TO FORM BY:
_____________________________ ______________________________ Jerry Galbez, Chief Steward Michael W. Webb, City Attorney ATTEST:
______________________________
Eleanor Manzano, City Clerk