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Memorandum of Understanding between the City of Santa Ana and the Service <br />Employees International Union Local 721 Full-Time Employees Unit <br />June 6, 2023 <br />Page 2 <br />3 <br />5 <br />1 <br />4 <br />Other key terms of the agreement include: updated grievance procedure; reducing the <br />number of unused sick leave hours that may be converted to CalPERS service credit to <br />eighty (80) for current employees and eliminating the option to convert unused sick leave <br />hours to CalPERS service credit for future employees; modifying the maximum amount <br />of sick leave that may be converted upon non-disciplinary separation to employees’ <br />retirement health savings or 457 deferred compensation accounts from one thousand <br />sixty-seven (1,067) hours to one thousand six hundred (1,600) hours after fifteen years <br />of full-time service with the City; new employees hired after City Council approval of the <br />MOU will accrue a maximum of seven hundred (700) sick leave hours with any accrued <br />hours over the maximum cashed out into employees’ retirement health savings accounts <br />in January each year; and clarifying language on issues of employment. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />The estimated annual cost of the agreement during the three (3) year period is $1,420,377 <br />for FY 2022-23, $4,525,805 for FY 2023-24, and $6,364,609 for FY 2024-25, for a total <br />estimated cost of $12,310,791. Approximately 46% is paid by the General Fund. <br />The FY22-23 budget includes sufficient funding for the first-year cost of the <br />agreement. The proposed FY23-24 budget includes an allocation of $3,417,952 for SEIU <br />negotiations. If the City Council adopts this MOU, the FY23-24 budget will be short <br />$1,107,853 ($4,525,805 estimated cost, less $3,417,952 allocated); and staff will need to <br />develop a recommendation to address the shortfall in a future quarterly budget report. <br />EXHIBIT(S) <br />1. Memorandum of Understanding between the City of Santa Ana and SEIU Local 721 <br />Submitted By: Jason Motsick, Executive Director of Human Resources <br />Approved By: Kristine Ridge, City Manager