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ADDENDUM TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN LEANDRO AND THE SAN LEANDRO POLICE OFFICERS' ASSOCIATION This addendum is to the Memorandum of Understanding entered into between the Municipal Employees Relations Officer of the City of San Leandro (City Manager) and the San Leandro Police Officers' Association for the period March 1, 1998 through February 28, 2001. This addendum implements certain changes to wages, benefits and duration as described herein. SECTION 1.00 — TERM OF AGREEMENT The term of the Memorandum of Understanding is hereby extended for one additional year covering the period March 1, 2001 through February 28, 2002. SECTION 2.00 WAGES Section 6, "Pay and Classification" is hereby revised to reduce the wage increase effective March 1, 2000 from a 4.5% increase to a 4.0% increase. Effective March 1, 2001, for the period covering March 1, 2001 through February 28, 2002 there shall be a wage increase of 3.0% SECTION 3.00 — RETIREMENT Section 24, "Retirement Plan" is hereby revised to provide that the City shall amend its contract with the Public Employees' Retirement System to provide the "3% at 50" retirement optional benefit pursuant to Government Code Section 21362.2. The parties acknowledge that there is no additional employer cost associated with the option for the period commencing July 1, 2000 through June 30, 2001. The City shall amend the contract to provide this benefit as soon as possible after ratification by the parties, subject to the provision of the rules and regulation of the Public Employees' Retirement System. SECTION 4.00 — SICK LEAVE Section 14, "Sick Leave" is hereby revised to provide that an employee retiring after the effective date of the change in the retirement benefit described in Section 3.00 above, shall convert their accrued sick leave to service credit pursuant to Government Code Section 21024. This provision shall not apply to an employee whose retirement benefit