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MEMORANDUM OF UNDERSTANDING The City of New Brighton and Law Enforcement Labor Services Local No.263 have reached an understanding regarding ARTICLE XVII Sections 17.1 and 17.5 of the 2015- 2017 Master Labor Agreement. The contract was approved with a health insurance reopener in ARTICLE XVII Section 17.2. The parties have agreed to the following language: ARTICLE XVII-INSURANCE 17 .1 Effective 1/01/17, The EMPLOYER will contribute $764/month for EMPLOYEES requesting single health insurance, $1035/month for EMPLOYEES requesting single +l coverage, and $1170 for EMPLOYEES requesting and qualifying for dependent (family) coverage for the policy period January 1, 2017 to December 31, 2017. EMPLOYEES that participate in the City of New Brighton Health Savings Account Program (HDHP-HSA Health Insurance Plan or Equivalent) will receive an (Per IRS regulations) annual deductible contribution from the City. The EMPLOYER will deposit the deductible into the EMPLOYEE'S Health Savings Account during the first payroll period of the New Year. All EMPLOYEE'S will receive a maximum deductible contribution of $1,150.00 per year for single coverage, $2,300.00 per year for single+ 1 coverage, and $2,300.00 per year for family coverage from the City and based upon the EMPLOYEES continued enrollment in the City's HDHP- Health Savings Account Insurance Plan. The EMPLOYER will fund the start-up fee and all monthly fees associated with the Health Savings Account (HSA) for those EMPLOYEES participating in the Health Savings Account (HSA). If an EMPLOYEE participates in the HDHP-HSA Health Insurance plan and then elects not to participate during the open enrollment period, he/she will not be eligible to receive the City's Health Savings Account contribution in future years. 17.5 Effective 1/1/07 employees have the ability to opt out of health insurance, provided proof of insurance coverage is provided from the other insurance carrier. The City will pay $380/month in 2017 to employees opting out, which would be eligible to be used within the cafeteria benefits program. This contract language shall be effective January 1, 2017 and shall remain in full force and effect until December 31, 2017. In witness whereof, the parties hereto have executed this AGREEMENT on this ____ day of _______________, 2017. FOR THE CITY OF NEW BRIGHTON FOR LELS LOCAL NO 263 _____________________________ ______________________________ Mayor LELS Business Agent _____________________________ ______________________________ City Manager LELS Union Steward