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<br />MEMORANDUM OF UNDERSTANDING <br />BETWEEN <br />THE CITYOF SAN LEANDRO <br />AND <br />SAN LEANDRO MANAGEMENT ORGANIZA nON <br /> <br />Section 1.0 Preamble <br /> <br />The understandings reached by this Memorandum are a result of meeting and conferring in good <br />faith between the Municipal Employee Relations Officer of the City of San Leandro (City <br />Manager) and the officers ofthe San Leandro Management Organization. <br /> <br />This Memorandum of Understanding shall be presented to the San Leandro City Council as the <br />joint recommendation of the undersigned parties for salary and employee benefit adjustments for <br />the period commencing January 1,2006 through December 31, 2008. <br /> <br />Section 2.0 Health and Welfare <br /> <br />Five Year Health & Welfare Vesting Requirement <br /> <br />Unless otherwise determined by the City Manager as part of the initial hiring agreement, <br />employees hired on or after January 1, 2005 must render five (5) years of continuous service <br />with the City of San Leandro in order to receive retiree medical and/or dental benefits under this <br />section. <br /> <br />2.1 Medical (Active) <br /> <br />The Internal Revenue Code (IRC), Section 125 (Cafeteria) plan shall continue. The plan <br />shall provide the following: <br /> <br />a. Pretax conversion of employee contribution toward medical premium. <br /> <br />b. Medical Flexible Spending Account with a maximum employee pretax <br />contribution of three thousand dollars ($3,000.00) per benefit plan year. <br /> <br />c. Dependent Care Flexible Spending Account with a maximum employee pretax <br />contribution of five thousand dollars ($5,000.00) per benefit plan year. <br /> <br />The City will maintain a "core flex" medical benefit plan. The core shall consist of the <br />PERS Medical Plan and the existing dental plan. <br /> <br />Under CalPERS rules, the City will contribute the following amounts as the "employer <br />minimum share" per employee per month towards the health plan: <br /> <br />2006 $64.60 <br />2007 $80.80 <br />2008 $97.00 <br /> <br />1 <br /> <br />slmo_OS-OI-06 JC <br />