REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute the 2026-2029 Memorandum of Understanding Between the City of Santa Clara and the Unclassified Police Management (Unit 9A) that Incorporates the Terms of the Tentative Agreement
Report
BACKGROUND
The Unclassified Police Management (hereafter, “Unit 9A”) Memorandum of Understanding (hereafter, “MOU”) is set to expire on December 31, 2025.
The City and Unit 9A began negotiations on a successor MOU in October 2025 and met approximately five (5) times. On December 5, 2025, the parties reached a Tentative Agreement. The Tentative Agreement was ratified by the Unit 9A membership on or about December 5, 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:
January 1, 2026 - December 31, 2029
• Wages:
Effective the first pay period of calendar year 2026, all employees holding positions in classifications assigned to Unit 9A, except Assistant Police Chief (Job Code 027) shall receive a salary adjustment of approximately 4.0%. All salary ranges will remain status quo.
Effective the first pay period of calendar year 2027, all salary ranges for employees holding positions in classifications assigned to Unit 9A 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 9A 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 9A shall be increased by approximately 3.0%.
• Lump Sum
Effective the first full pay period for calendar year 2026, the City shall issue a one-time Lump Sum payment of $5,500 to the Assistant Police Chief (Job Code 027).
• Deferred Compensation
Effective the first full pay period for calendar year 2026, the City shall increase its contribution to $330/month (from $150/month) to the employee’s deferred compensation. Once the 401(a) is established, the City’s prospective contributions after the 401(a) is established will go to the 401(a).
• Voluntary Employee Beneficiary Association (VEBA)
Effective the first full pay period for calendar year 2026, the City shall increase its contribution to $250/month (from $100/month) to the employee’s VEBA account.
• Vacation Cashout
The vacation cashout shall increase from 80 to 100 hours in calendar years 2026, 2027, and 2028. Elections for 2026 must be made by December 31, 2025. Effective the first pay period of Calendar Year 2029, employees shall be eligible for a maximum vacation cashout of 80 hours per year.
• Management Leave Program
Effective the first full pay period for calendar year 2026, the management leave accrual limit shall increase from 180 to 210 hours in calendar years 2026, 2027, and 2028. Effective the first pay period of Calendar Year 2029, employees shall have a management leave accrual limit of 180 hours.
For calendar year 2026, only, management leave credited to employees shall increase from 120 hours to 150 hours.
• Chemical Testing
The language shall be amended to align with the Police Officers Association (Unit 2).
• Workers’ Compensation Fast Track Program
The Side Letter Agreement the Workers’ Compensation Fast Track Program available to the Police Officers Association (Unit 2) shall be extended to employees represented by Unit 9A.
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 9A 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 $59K, 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 9A MOU.
|
Item |
Description |
Estimated General Fund Cost |
|
Ongoing Costs |
|
Wages (Jan. 2026) |
4.0% increase for Police Captains (salary range remains status quo) + $5,500 lump sum to the Assistant Police Chief |
$70K + $5.5K |
|
Wages (Jan. 2027) |
3.0% increase |
$66K |
|
Wages (Jan. 2028) |
3.0% increase |
$68K |
|
Wages (Jan. 2029) |
3.0% increase |
$70K |
|
Deferred Compensation |
Increase to $330/month |
$11K |
|
VEBA |
Increase to $250/month |
$9K |
|
|
Total |
$299.5K |
|
One-time Costs |
|
Vacation cash out |
Additional 20 hours |
$16K |
|
|
Total |
$16K |
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 Unclassified Police Management (Unit 9A) with effective dates of January 1, 2026 - 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 9A