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TWO-YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING, AS AMENDED, BETWEEN THE CITY OF SANTA ANA AND SANTA ANA MANAGEMENT ASSOCIATION FOR FISCAL YEARS 2010-1 l AND 2011-12 The City of Santa Ana (CITY) and the Santa Ana Management Association (SAMA) have met and agreed to amend the previously amended Memorandum of Understanding (MOU) between the CITY and SAMA for Fiscal years 2004-05 through 2009-10 by extending this amended MOU for an additional two (2) years. The existing MOU provisions will remain unchanged unless addressed by this addendum. The new expiration date of the MOU will be June 30, 2012, and the MOU will be amended as follows: AMENDED ARTICLE V (new language in bold; deleted provisions lined out) 5.3 Salaries. E. .Effective July__ 1, 2008, the base salaries of classifications covered by this Agreement shall be increased by approximately four percent (4%). F. Effective January 1, 2009, the base salaries of classifications covered by this Agreement shall be increased by approximately two and one-half percent (2.5%). • , ° • , ° G. Effective July 1, 2010, the bnse salaries of classifications covered by this Agreement shall be increased by approximately four percent (49'0). H. Effective January 1, 2011, the bnse salaries of classifications covered by this Agreement shall be increased by approximately two and one-half percent (2.59'0). I. Effective July 1, 2007, Miscellaneous employees covered by this Agreement shall contribute 2% of their salary toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this 2% contribution shall be implemented through payroll deduction on a pre-tax basis. J. Effective July 1, 2008, Miscellaneous employees covered by this Agreement shall contribute an additional 2% of their salary (for a total of 4%) toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CaIPERS and 25B-3