To: Honorable Mayor and Members of City Council
From: MJ Tueros, Interim Human Resources Director
Prepared By: Fernando Salinas, Management Analyst II
TITLE:
Title
Tentative Agreement between the City of Napa and the Napa City Employees’ Association - Service Employees International Union Local 1021
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and adopt the Tentative Agreement between the City of Napa (“City”) and the Napa City Employees’ Association - Service Employees International Union Local 1021 (“NCEA”) for the term of July 1, 2026, through June 30, 2030, and authorize the City Manager to finalize a successor Memorandum of Understanding (MOU).
Body
DISCUSSION:
In April of 2026, the City of Napa and NCEA/SEIU Local 1021 began negotiations on a new MOU. On June 3, 2026, the parties reached a Total Tentative Agreement on a package for a four-year agreement. NCEA/SEIU Local 1021 notified the City via email on June 9, 2026, that their membership ratified the agreement by a vote on June 8 and June 9, 2026.
The major terms of the agreement are as follows:
• Four Year Term, July 1, 2026, through June 30, 2030
• Salary increase of 2.0%, effective the pay period beginning July 4, 2026
• Salary increase of 2.5%, effective the pay period containing January 1, 2027
• Salary increase of 3.5%, effective the pay period containing July 1, 2027
• Salary increase of 3.25%, effective the pay period containing July 1, 2028
• Salary increase of 2.85%, effective the pay period containing July 1, 2029
• Added Juneteenth as a recognized holiday in lieu of a floating holiday
• Added 4 hours of Personal Leave for all employees in exchange for reducing the Elective Paid Leave program by half at each milestone, and makes employees hired on or after July 1, 2026, ineligible for the Elective Paid Leave program.
• Increase Compensatory Time Off (CTO) cap from 100 to 120 hours
• Increase monthly retiree’s health insurance reimbursement from $244 to $274 for employees who retire with more than ten years of service to the City.
• Added recognition of previous government work experience for vacation accrual
• Added limited Vacation Cash-out option
• Other language changes to reflect current practice, incorporate previously agreed upon side letters or otherwise provide additional clarity in the contract.
FINANCIAL IMPACTS:
The estimated cost for the General Fund in FY 2026-27 for implementation of this agreement is approximately $0.63 million ($628,000). The estimated cost for all funds is approximately $1,047,000 for FY 2026-27. The Adopted FY 2026-27 Budget included a COLA assumption for all groups. This TA would incur an additional, unbudgeted cost of approximately $285,000 to the General Fund. A more detailed costing will be done at the employee level to calculate the needed budget increase. A Budget Amendment will be presented to the City Council at a future meeting after execution of the MOU, along with the adoption of updated salary schedules. Costs associated with changes to the terms of the MOU will be budgeted accordingly in future fiscal years.
CEQA:
The Assistant City Manager has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15378.
DOCUMENTS ATTACHED:
ATCH 1 - Total Tentative Agreement between City of Napa and NCEA/SEIU Local 1021
NOTIFICATION:
None