REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute the 2025-2029 Memorandum of Understanding Between the City of Santa Clara and the Police Officers Association (Unit 2) that Incorporates the Terms of the Joint Mediation Recommendation and Approve a Resolution for the Updated Classified Salary Plan
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency.
BACKGROUND
The Police Officers Association (hereafter, “Unit 2”) Memorandum of Understanding (hereafter, “MOU”) is set to expire on December 31, 2025.
Given the upcoming events the City is hosting in calendar year 2026, the City and Unit 2 engaged in early discussions on a successor MOU. The City and Unit 2 began negotiations on a successor MOU in February 2025 and met approximately eight (8) times. Both parties agreed to retain a mediator in an effort to move both parties and reach an agreement. Mediation sessions were scheduled for June 10, 2025, and June 13, 2025. On June 13, 2025, the parties reached a Joint Mediation Recommendation. The Joint Mediation Recommendation was ratified by the Unit 2 membership on or about June 26, 2025.
DISCUSSION
The recommended action authorizes the City Manager to execute a successor Memorandum of Understanding with a term of August 1, 2025, through and including December 31, 2029, that incorporates the terms of the Joint Mediation
Recommendation reached between both parties.
The following is a summary of the notable provisions of the Joint Mediation Recommendation:
Term:
August 1, 2025 - December 31, 2029
Wages:
Effective the first pay period after August 1, 2025, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 5.0%.
Effective the first pay period after July 1, 2026, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 3.0%.
Effective the first pay period of calendar year 2027, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 3.0%.
Effective the first pay period of calendar year 2028, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 3.0%.
Effective the first pay period of calendar year 2029, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 3.0%.
Additionally, the salary adjustment form and total compensation survey shall remain suspended for the terms of the MOU.
Recruitment Incentive
If a Police Officer, Police Sergeant, or Police Lieutenant refers an applicant, and the applicant is hired as a Public Safety Dispatcher I/II or Senior Public Safety Dispatcher, the employee will receive 10 hours of compensatory time off (CTO) at time of hire, 10 hours of CTO once the employee completes the training program, and 10 hours of CTO once the employee passes probation.
Field Training Officer (FTO) Sergeant
Beginning the pay period following City Council adoption, up to three (3) FTO Sergeant’s will receive a 5% training premium pay.
Vacation Cashout
During calendar years 2026, 2027, and 2028 the vacation cash out will be increased from 60 hours to 90 hours.
Additional Items
As soon as practicable, but no later than January 2026, all MOU overtime will include base pay, holiday in lieu, Peace Officer Standard Training (POST) pay, and Crisis Intervention Training (CIT). In addition, double time for all NFL events and compensatory time off cashouts will be eliminated.
Workers’ Comp Fast Track Sideletter
Employees who suffer a work-related injury or illness and are seeking treatment through Kaiser are immediately approved for all relevant diagnostic testing as defined by the Fast Track Program. This program is in place in an effort to expediate employee care through the workers’ compensation system and get employees back to work.
Minimum Staffing and Sabbatical Sideletter
In recognition of the staffing Unit 2 members will provide to support Super Bowl and FIFA in calendar year 2026, the City and Unit 2 have agreed upon a Sideletter to incentivize employees to sign up for special event staffing. Employees who agree to sign up for events will receive 30 hours of sabbatical leave for every two (2) week block of work performed. The sabbatical hours cannot be cashed out and must be used during the term of the MOU.
Approve a Resolution for the Updated Classified Salary Plan
The Classified Salary Plan has been updated to reflect the modifications to classifications represented by the Police Officers’ Association (Unit 2). The changes that are requested to be approved by City Council on the Classified Salary Plan are highlighted in yellow on the salary plan.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The City regularly budgets the total compensation cost for its current employees and integrates known and projected cost increases from MOUs in the City’s annual budget. The costs of the Unit 2 MOU are within budget authority approved by the City Council through the negotiation process. In FY 2025/26, the costs associated with the negotiated agreement are approximately $2.19 million, all of which is in the General Fund. It is anticipated that this amount will be covered within the existing departmental budget in FY 2025/26. Expenditures will be monitored throughout the year, and a budget action will be brought forward to Council if necessary. There is sufficient funding in the unrestricted ending fund balance to address any additional costs that cannot be absorbed. In future years, the costs for this contract will be factored into future forecasts and annual budgets.
The chart below reflects the estimated changes in costs in the General Fund as well as all funds over the term of the Unit 2 MOU.
|
Item |
Description |
Estimated All Funds Cost |
|
On-going Costs |
|
Wages (Aug. 2025) |
5.0% increase |
$2.19M |
|
Wages (July 2026) |
3.0% increase |
$1.38M |
|
Wages (Jan. 2027) |
3.0% increase |
$1.42M |
|
Wages (Jan. 2028) |
3.0% increase |
$1.46M |
|
Wages (Jan. 2029) |
3.0% increase |
$1.51M |
|
FTO Sergeant ongoing cost |
5.0% premium pay |
$37K |
|
|
Total |
$8.00M |
|
One-time Costs |
|
Vacation cash out 2026 |
Additional 30 hours |
$479K |
|
Vacation cash out 2027 |
Additional 30 hours |
$493K |
|
Vacation cash out 2028 |
Additional 30 hours |
$508K |
|
|
Total |
$1.48M |
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute the Memorandum of Understanding between the City of Santa Clara and the Police Officers Association with effective dates of August 1, 2025 - December 31, 2029, that incorporates the terms of the Joint Mediation Recommendation; and
2. Approve a Resolution for the Updated Classified Salary Plan.
Staff
Reviewed by: Aracely Azevedo, Director of Human Resources
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Joint Mediation Recommendation between the City and Unit 2
2. Resolution for the Classified Salary Plan
3. Classified Salary Plan effective 08-03-2025 (for Council 07-15-2025)