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LETTER OF UNDERSTANDING October 31, 1996 This letter will confirm the following understandings reached on October 29, 1996, regarding the Livermore-Pleasanton Fire Department. The following items will apply to the employees who are Livermore Fire Department employees; A. TUITION REIMBURSEMENT AND EDUCATIONAL INCENTIVE PAY PLANS Effective October 1, 1995, the City's Tuition Reimbursement Plan as outlined in the Personnel Rules and Regulations and detailed in the City Manager's Administrative Regulation Number 14, is available to all members of the bargaining unit except those eligible for and participating in the Educational Incentive Pay plan (EIP). Effective with City Council adoption of this agreement, the Educational Incentive Pay plan will be available only to the following employees: a) those employees hired prior to December 28, 1992, and who are receiving EIP as of the date of City Council adoption of this agreement or; b) those employees who were eligible and denied access to the EIP prior to August 1, 1995. The EIP refers to two permanent levels of pay. Level One EIP pay is $25.00 per month for the attainment of an AA/AS degree. Level Two EIP pay is $50.00 per month for the attainment of either a BA/BS degree or 180 total units of college credit. As outlined above, once an employee who is receiving EIP elects to convert to the City's Tuition ' -un.ursemen = : • that employee's monthly EIP pay will cease and s/he will no longer be eligible for EIP compensa '•n. Employees eligible for the EIP plan , may make a one time irrevocable decision to c s nvert to the Tuition Reimbursement Plan prior to a budget cycle. For example, for the 1996/98 budget cycle, each employee's decision must be in writing and be submitted to the Fire Chief's Office on or before December 31, 1995. The prior EIP conditions stay in full force and effect as long as employees are participating in that program. B. HEALTH, MEDICAL AND DENTAL CARE BENEFITS Effective for the premium payments required for October 1995 coverage, the City shall contribute an amount not to exceed the below listed maximums per covered employee toward the monthly premium costs for employees enrolled in health care programs or covered by health or dental programs or alternative programs as the City shall establish, revise, sponsor, or make available to all eligible employees; provided, however that in no event shall the City be obligated to contribute an amount in excess of that stated below. 24