CC Resolution 13309 - Amending Compensation and Working Conditions for Classified Non-Management Employees (CMEA)A RESOLUTION OF THE CITY OF CAMPBELL CITY COUNCIL AMENDING
COMPENSATION AND WORKING CONDITIONSFOR CLASSIFIED NOW
MANAGEMENT .. r BY THE CAMPBELLMUNICIPAL
EMPLOYEES ASSOCIATION
WHEREAS, the Campbell Municipal Employees Association (CMEA) is a recognized
employee organization representing employees; and
WHEREAS, the City of Campbell (City) City Council retains sole authority to enter into a
Memorandum of Understanding (MOU) with recognized employee organizations
representing employees; and
WHEREAS, the City is currently operating pursuant to a 3-year MOU with CMEA, dated
August 16, 2022, that expires on June 30, 2025; and
WHEREAS, in the fall of 2024, in anticipation of a budget deficit for Fiscal Year
2025/2026, the City included on the local ballot a general half -cent sales tax known as
"Measure K" which Campbell voters passed on November 5, 2024; and
WHEREAS, on January 6, 2025, before the City and CMEA could formally enter into
negotiations regarding terms and conditions of employment, the Silicon Valley Taxpayers'
Association and ®avid H. Wolen (together, "SVTA") filed a lawsuit against the City
challenging the validity of Measure K; and
WHEREAS, as a result of the lawsuit, the tax revenue scheduled to be collected
beginning in April 2025 was required to be held in an escrow account pending the
outcome of the lawsuit; and, the City is not able to access the tax revenue unless and
until said lawsuit is resolved in the City's favor; and
WHEREAS, as of March 2025, the City was forecasted to face a budget deficit in Fiscal
Year 2025/2026 of $3.23 million, and
WHEREAS, the City and CMEA have since met and conferred in good faith and worked
together to ensure the City does not increase its budget deficit, remains fiscally
responsible, and attempted to preserve permanent full-time positions, and
WHEREAS, on June 3, 2025, the City and CMEA reached a tentative agreement by way
of a Side Letter Agreement providing as follows:
• The term of the current MOU between the City and CMEA shall be extended from
June 30, 2025 to June 30, 2026.
• Should the above -referenced lawsuit resolve in the City's favor during the term of
the extension, resulting in the release of the escrow funds to the City, the parties
would commence successor MOU negotiations in accordance with State law.
• Effective January 1, 2026, the monthly Cafeteria Plan Allowance will be set at the
Kaiser Permanente Region 1 rates for 2026 at the employee's selected level of
coverage unless the 2026 rates are eight percent (8%) higher than the City's 2025
contribution. If the year -over -year rate increase exceeds 8% of the City's 2025
contribution, the City's Cafeteria Plan Allowance shall be eight percent (8%) higher
than the 2025 contribution. Employees who select a plan with rates higher than the
City's Allowance will be required to make up the difference through salary
redirection.
• Meet and confer discussions regarding increases to employee compensation
during or following the extension of the respective MOUs may include a proposal
that said increases would be retroactive to July 1, 2025.
• Should the above -referenced lawsuit not result in the release of the escrow funds
during the term of the extension, the parties would meet to discuss the extension
prior to its expiration-, and
WHEREAS, the City has satisfied its obligation under Government Code Section 3500,
et. seq., and the City's Employer -Employee Relations resolution 10016 to meet and
confer over the terms and conditions of employment contained in the recommended Side
Letter Agreement with CMEA; and
WHEREAS, the Side Letter Agreement with CMEA has been approved and executed
by the authorized representatives of CMEA and City Council representatives; and
WHEREAS, the City Council desires to ratify and adopt the provisions included in the
Side Letter Agreement with CMEA.
NOW, THEREFORE, BE IT RESOLVED, that the City of Campbell City Council does
hereby approve and ratify the Side Letter Agreement between the City and CMEA,
attached hereto as Attachment A.
BE IT FURTHER RESOLVED, the City Manager and his delegates have the authority to
take any necessary administrative actions to implement the provisions of this resolution.
PASSED AND ADOPTED this 17th day of June, 2025, by the following roll call vote:
AYES:
Councilmembers: Bybee, Hines, Scozzola, Furtado, Lopez
NOES:
Councilmembers: None
ABSENT
Councilmembers: None
APPROVE[
Sergio Lopez, Mayor
ATTEST
Andrea Sorlders, City Clerk
Side Letter Agreement
Between
City ofCampbell
And
Campbell Municipal Employees Association
This Side Letter Agreement (Side Letter) between the City of Campbell (City)and the
Campbell Municipal Employees Association (CMEA), collectively referred to as "Parties," is
hereby entered into with respect to the following:
WHEREAS, the August 1G,2O22"Memorandum ofUnderstanding onWages,
Employee Benefits, Hours and Other Terms and Conditions of Employment" (MOU)
between the Parties will expire onJune 3O,2D25;and
WHEREAS, a lawsuit has been filed against the City challenging the validity of the
City's Measure K; and
WHEREAS, oaaconsequence ofsaid lawsuit, the tax revenue being collected
beginning April 2025 will be held in an escrow account pending the outcome of the lawsuit;
and
WHEREAS, the City is not able to access the tax revenue until said lawsuit is
resolved in the City's favor; and
WHEREAS, the City is forecasted to face a budget deficit in FiscaL Year 2025 / 2026;
NOW THEREFORE, the Parties have met and conferred in good faith and agree to the
following:
1. The term ofthe MOUisextended from June 3D,2O25 toJune 3O.2O2G.
2. Should the above -referenced lawsuit resolve in the City's favor during the term of
the extension, resulting \nthe release ofthe escrow funds tothe City, the Parties
will commence successor MOU negotiations in accordance with State law. The
Parties agree to meet to commence said successor negotiations within fourteen
(14) calendar days of the escrow funds being released to the City.
3. Absent negotiated changes tothe MOUpursuant toparagraph two above, the
terms and conditions inthe M0Uwill remain status quo for the duration ofthe
extension, with the exception of those benefits provided for in Section III.B.2 of
the MOUentitled "Cafeteria Plan AUnvvanoe."
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/i With regard to the benefits provided for in Section III.B.2 ofthe MOU, the Parties
agree that effective January 1, 2026, the monthly Cafeteria Plan At[owance Witt
beset atthe Kaiser PernnenenteRegion 1natoofor2O2GaLtheernp(oyae's
selected level of coverage unless the 2026 rates are eight percent (8%) higher
than the Qty'e2O25 contribution. |fthe year-over-yearrate increase exceeds 8%
of the City's 2025 contribution, the City's Cafeteria Plan Allowance shall be eight
percent (8%) higher than the 2025 contribution. Employees who select a plan
with rates higher than the City's Allowance will. be required to make up the
difference through salary redirection.
5. The Parties understand that meet and confer discussions regarding increases to
employee compensation during or foLtowing the extension of the MOU may
include a proposal that said increases will, boretroactive toJuly 1'2O25.
G. Should the above -referenced lawsuit not result in release of the escrow funds
duringtheterm ufthe extension, the Parties will meet todiscuss the extension
no later than May 11, 2026,
l This Side Letter is subject toCMEAratification and subsequent approval bvthe
City Council.
FOR THE CITY OF CAMPBELL
2)?
Brian Loventhal., City Manager Date
FOR Campbell Municipal Employees Association (CMEA)
R eiO8 /\ntOnio ~ June5. 2825
President ofCMEA Date
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