Item 17 - Memorandum of Understanding Related to SEIU

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Human Resources Department www.santa-ana.org/HR Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report January 20, 2026 TOPIC: Memorandum of Understanding between the City of Santa Ana and Service Employees International Union Local 721 AGENDA TITLE Memorandum of Understanding Establishing the Terms and Conditions of Employment for Classifications Represented by the Service Employees International Union Local 721 RECOMMENDED ACTION Authorize the City Manager to execute a Memorandum of Understanding with the Service Employees International Union Local 721 ("SEIU") regarding wages, hours, and other terms and conditions of employment effective July 1, 2025 through December 31, 2025 and authorize non -substantive changes which may be necessary to implement the agreement (Agreement No. A-2026-XXX). GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City recently reached a tentative agreement with SEIU on a six (6) month successor Memorandum of Understanding ("MOU") effective July 1, 2025 through December 31, 2025. The tentative agreement has been ratified by SEIU membership. The major provisions of the agreement include: salary increase of five percent (5%) retroactive to July 13, 2025; and increasing City medical contributions by one hundred and fifty dollars ($150) per month in January 2026. Other key terms of the agreement include: providing up to eight (8) weeks of paid parental leave for employees and increasing the annual safety shoes/boot allowance to three hundred and fifty dollars ($350) per fiscal year. ENVIRONMENTAL IMPACT There is no environmental impact associated with these actions. FISCAL IMPACT The estimated annual cost of the agreement during the six (6) month period is $1,674,104 and $2,046,085 for the remainder of FY 2025-26, for a total estimated cost of $3,720,189. The FY25-26 budget included a 4% set -aside for increased compensation. Based on