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SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING <br />BETWEEN THE CITY OF SANTA ANA AND <br />THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 721 <br />The City of Santa Ana (City) and the Service Employees International Union, Local 721(SEIU) <br />have met and conferred over the terms of a successor Memorandum of Understanding (MOU). <br />This document represents the agreement of the parties reflecting all of those changes to the <br />parties' current MOU. These changes once ratified by the SEIU and then approved by the City <br />Council of the City will go into effect as set forth herein. It is then the intent of the parties to <br />incorporate these changes into their MOU (which will be a comprehensive MOU incorporating <br />all the parties agreements) which will include any and all side letters of agreement entered into <br />between the parties which are not currently contained in the MOU. This will include updating <br />language currently in the existing MOU which has been subsequently modified by side letters <br />entered into between the parties prior to the negotiations for the successor MOU but after the last <br />MOU was signed off by the parties. The parties anticipate there will also be updates to the MOU <br />language to sections other than those set forth below which are necessitated by the parties' <br />agreements below. <br />1. Term <br />28.1 Term <br />The term of this Agreement shall be from July 1, 2013 through June 30, 2015. <br />2. Salaries <br />4.3 Salaries. <br />A. Effective July 1, 2013 employees covered by this Agreement shall receive <br />a 1% salary increase. <br />3. Pers Contribution <br />12.6 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. <br />Effective January 1, 2009, the City agrees to amend its retirement contract with <br />Ca1PERS to provide Miscellaneous employees covered by this agreement with the <br />2.7% at 55 Service Retirement benefit. Pursuant to Ca1PERS regulations, this <br />new formula will apply to employees that are in active status on the date this <br />amendment takes effect. This new formula will apply to each year of eligible <br />service credited with the City of Santa Ana. <br />Employee Contribution for Retirement Benefit. Effective April 1, 2013 the <br />employee's contribution rate will be reduced from 13% to 9%. All employee <br />contributions for retirement benefits are paid to the employer cost (i.e., employer <br />contribution) in accordance with Government Code section 20516(f). The parties <br />acknowledge that this provision has been mutually negotiated and incorporated as <br />1 <br />25B -3 Attachment 1