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 Public Safety Non-Sworn Employees’ Association (Unit 10) that Incorporates the Terms of the Tentative Agreement
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency.
BACKGROUND
The Public Safety Non-Sworn Employees’ Association (hereafter, “Unit 10”) Memorandum of Understanding (hereafter, “MOU”) is set to expire on December 20, 2025.
Given the upcoming events the City is hosting in calendar year 2026 and the high vacancy rate for the Public Safety Dispatcher classifications, the City and Unit 10 engaged in early discussions on a successor MOU. The City and Unit 10 began negotiations on a successor MOU in April 2025 and met approximately nine (9) times. On July 10, 2025, the parties reached a Tentative Agreement. The Tentative Agreement was ratified by the Unit 10 membership on or about July 22, 2025, and accepted by the City.
DISCUSSION
The recommended action authorizes the City Manager to execute a successor Memorandum of Understanding with a term of August 31, 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 31, 2025 - December 31, 2029
• Wages:
Effective the first pay period after Council adoption, the salary ranges for employees holding positions in Public Safety Dispatcher classifications (Public Safety Dispatcher I (Job Code 339), Public Safety Dispatcher II (Job Code 340), and Senior Public Safety Dispatcher (Job Code 725)), assigned to Unit 10 shall be increased by approximately 5.0%. All other classifications assigned to Unit 10 shall receive a $1,500 lump sum payment.
Effective the first pay period of calendar year 2026, all salary ranges for employees holding positions in classifications assigned to Unit 10 shall be increased by approximately 4.0%, except Public Safety Dispatcher classifications (Public Safety Dispatcher I (Job Code 339), Public Safety Dispatcher II (Job Code 340), and Senior Public Safety Dispatcher (Job Code 725)).
Effective the first pay period after July 1, 2026, the salary ranges for employees holding positions in Public Safety Dispatcher classifications (Public Safety Dispatcher I (Job Code 339), Public Safety Dispatcher II (Job Code 340), and Senior Public Safety Dispatcher (Job Code 725)), assigned to Unit 10 shall be increased by approximately 3.0%
Effective the first pay period of calendar year 2027, the salary ranges for employees holding positions in Public Safety Dispatcher classifications (Public Safety Dispatcher I (Job Code 339), Public Safety Dispatcher II (Job Code 340), and Senior Public Safety Dispatcher (Job Code 725)), assigned to Unit 10 shall be increased by approximately 3.0%. The salary ranges for all other classifications assigned to Unit 10 shall be increased by approximately 4.0%.
Effective the first pay period of calendar year 2028, all salary ranges for employees holding positions in classifications assigned to Unit 10 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 10 shall be increased by approximately 3.0%.
• Peace Officer Standards and Training (POST) Incentive
Effective August 31, 2025, increase the POST incentive pay for all classifications assigned in Public Safety Dispatcher classifications (Public Safety Dispatcher I (Job Code 339), Public Safety Dispatcher II (Job Code 340), and Senior Public Safety Dispatcher (Job Code 725)) from 2.5% to 3.0% for both Intermediate POST certification and Advanced POST certification for a maximum total of 6.0% (up from a maximum of 5.0%). Increase Police Records Supervisor (Job Code 644) POST incentive pay from 2.5% to 3.0%.
• Holidays
Effective December 21, 2025, all Public Safety Dispatcher classifications assigned to Unit 10 shall receive Holiday in Lieu pay of 7.5% of their base pay. Employees in these classifications shall be ineligible for receiving holiday time off.
• Vacation Cashout
Effective December 21, 2025, increase the vacation cap to 480 and institute a hard cap. During calendar years 2026, 2027, and 2028 the vacation cash out shall be increased from 60 hours to 90 hours.
• Training Premium
Effective August 31, 2025, employees in the classification of Jail Service Officer (Job Code 353) assigned as a Field Training Officer and employees in the classification of Public Safety Dispatcher II (Job Code 340) assigned to train other City employees will be entitled to a premium training pay of 5.0% for actual hours worked performing those duties. The existing Side Letter Agreement for training premium pay for employees in the classification of Senior Public Safety Dispatcher (Job Code 725) shall continue.
• Compensatory Time Off
Effective December 21, 2025, employees shall be ineligible to cash out compensatory time off.
• Minimum Staffing and Sabbatical Side Letter
In recognition of the staffing Unit 10 members will provide to support Super Bowl and FIFA World Cup events in calendar year 2026, the City and Unit 10 have agreed 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.
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 10 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 $623K, all of which are 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, all of which are in the General Fund, over the term of the Unit 10 MOU.
|
Item |
Description |
Estimated General Fund Cost |
|
On-going Costs |
|
Wages (Aug. 2025) |
5.0% increase (Dispatch) $1,500 lump sum (Non-Dispatch) |
$186K $77K |
|
Wages (Jan. 2026) |
4.0% increase (Non-Dispatch) |
$317K |
|
Wages (July 2026) |
3.0% increase (Dispatch) |
$117K |
|
Wages (Jan. 2027) |
3.0% increase (Dispatch) 4.0% increase (Non-Dispatch) |
$120K $329K |
|
Wages (Jan. 2028) |
3.0% increase |
$381K |
|
Wages (Jan. 2029) |
3.0% increase |
$392K |
|
POST Incentive |
Max of 6.0% and 3% premium pay (up from a max of 5.0% and 2.5%) |
$162K |
|
Holiday in Lieu (Dispatchers) |
7.5% in base pay (cost reflects increase from 5.0% associated with the current value of vacation days) |
$467K |
|
|
Total |
$2.5M |
|
One-time Costs |
|
Vacation cash out 2026 |
Additional 30 hours |
$142K |
|
Vacation cash out 2027 |
Additional 30 hours |
$147K |
|
Vacation cash out 2028 |
Additional 30 hours |
$152K |
|
|
Total |
$441K |
The training premium costs will vary depending on the needs within the department and the actual training assignments.
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
Authorize the City Manager to execute the Memorandum of Understanding between the City of Santa Clara and the Public Safety Non-Sworn Employees’ Association (Unit 10) with effective dates of August 17, 2025 - December 31, 2029, that incorporates the terms of the Tentative Agreement.
Staff
Reviewed by: Marco Mercado, Acting Director of Human Resources
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Tentative Agreement between the City and Unit 10
2. Resolution for Classified Salary Plan
3. Classified Salary Plan effective 08-17-2025 (for Council 08-19-2025)