Lauren Buellen, Risk Manager in the City of Oxnard Human Resources Department, presented a proposed three-year successor memorandum of understanding with Service Employees International Union Local 721 on a city agenda item. The MOU would cover approximately 371 employees in recreation, engineering and administrative support positions and is intended to "remain competitive in the labor market while exercising sound fiscal management," Buellen said.

The agreement, as described by Buellen, would increase the city's contribution to its medical cafeteria plan by an additional 5% annually. Buellen said that increase is intended "to keep pace with the annual insurance premium increases to maintain affordability," noting the average HMO premium is rising by about 6.6%.

Salary provisions described in the presentation call for a 3% solid range adjustment each year—about 9% over three years—along with in-range salary progression. The MOU would also replace the existing compensation language at the end of the agreement term with annual one-time cash payments. Buellen said the one-time cash payments "are not reported to CalPERS and do not affect the employees' base rates of pay."

Staff told the council the bargaining unit was offered a 2% signing bonus if the unit ratifies the agreement by October 2025. Buellen reported that bargaining began on 05/12/2025.

On budgetary impact, staff presented two costing methodologies that produced the same totals: a three-year cost of $5,835,959 (reported as about 20.3% in staff materials) and a net ongoing fiscal impact of $3,774,424 (about 12.95%) beginning in fiscal year 2028-29 after one-time cash payments expire. Buellen said the costs were assumed in the city's budget forecast and that no additional appropriations are required under the assumptions shown.

The presentation noted broader uncertainty at federal and state levels and that voter-approved Measure O local funding is ending soon; Buellen framed the MOU's provisions as an effort to balance market competitiveness with fiscal prudence. Staff concluded by saying they were available to answer questions.