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Agreement with the Service Employees International Union September 20, 2010 Page 2 7) Computation of Workweek for Overtime: Amend overtime language to more closely mirror FLSA guidelines. 8) Medical Insurance: Effective January 1, 201 1 , the City will pay 100% of the lowest available CALPERS approved HMO health plan. Employees hired after January 1, 2012 shall reimburse the City in an amount equal to the lesser of 10% of the value of the lowest available CALPERS approved HMO medical plan or $50 per month. 9) Assignment Pay: Current employees already receiving assignment pay, and who continue to meet the qualifications described in the applicable MOU sections, shall continue to receive said pay under the current assignment pay formulas. Future employees shall not receive assignment pay. 10)Medical Retirement Subsidy Plan: The City will reduce the Medical Retirement Subsidy Plan contribution scheduled for October 2010 from 1.75% to 1 The City will also reduce the subsidy contribution from 1.75% to 1% in each subsequent year of this contract. The contribution will revert to 1.75% at the expiration of this contract. 1 1 )Sick Leave Cash Out: Current vested employees retain full rights to existing Sick Leave cash-out program (maximum of 427 hours). The number of maximum Sick Leave cash- out hours for non-vested employees and new hires shall be reduced by 102 hours to 325 hours maximum. 12)Longevity Vacation Cash Out: Current and re-employed vested employees shall retain rights to the existing longevity leave cash-out program. Longevity vacation leave accrual is eliminated for all new hires. 13)Re-opener: If due to budget overruns or revenue shortfalls the City anticipates that it will be operating under a budget deficit in fiscal years 2011 -2012 or 2012 -2013, the union agrees that upon request of the City made after March 1, 2011, the union will reopen this Agreement for negotiation on the subjects of modifying employee furloughs and employee CalPERS contributions. 14)Layoff Protection: There shall be no layoffs of members of this bargaining unit through December 31, 201 1 . FISCAL IMPACT It is anticipated that the new contract will result in savings in the first year of $2,300,000 and $5,440,00`0 during the 3-year term of the agreement. Kathie S. Gonzalez Francisco Gutierrez Executive Director Executive Director Personnel Services Department Finance & Management Services Agency 25F-2