REPORT TO COUNCIL
SUBJECT
Title
Action on Approval of the 2019-2024 Memorandum of Understanding Between the City of Santa Clara and the Miscellaneous Unclassified Management Employees (Unit 9)
Report
COUNCIL PILLAR: Enhance Community Engagement and Transparency
BACKGROUND
On or about March 2020, the City of Santa Clara and Miscellaneous Unclassified Management Employees (Unit 9) agreed to terms on a first Tentative Agreement for a successor Memorandum of Understanding (MOU); Unit 9's MOU had expired on December 14, 2019. The tentative agreement, among other things, had included wage increases over the next several years as well as enhancements to healthcare. However, prior to the Tentative Agreement being both ratified by Unit 9 membership and approved by City Council, the unprecedented COVID-19 pandemic situation arose leading to sizeable challenges to the City and community, including adversely impacting the City's fiscal situation.
Given the ongoing challenges related to the pandemic, the City and Unit 9 engaged in further discussions on a successor MOU in an effort to reduce the City's estimated General Fund deficits. When the FY 2020/21 budget was adopted in June 2020, the ongoing budget deficit was estimated at approximately $34 million over the next four years. This figure included $22.7 million in FY 2020/21 that was solved on a one-time basis with the use of the Budget Stabilization Reserve. Since the adoption of the budget in June, General Fund revenues have continued to decline as a result of COVID-19 impacts and are not expected to meet the budgeted estimate.
As previously noted, the City of Santa Clara's collective bargaining agreement with the Unit 9 expired on December 14, 2019. The City and Unit 9 has since negotiated a five (5) year MOU effective December 15, 2019 through December 31, 2024. This bargaining group currently represents approximately 136 full-time equivalent positions in all departments across the City.
On or a...
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