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unilaterally as Council would not be changing the memoranda of understanding. 3. Allow groups who have signed the side letters to participate in PERS, including the management and confidential groups, and IAFF retain their current coverage but without an indemnity plan, as City has been unable to find a plan to cover only part of our employee group. Efforts would continue to find an indemnity plan and City would work with IAFF retirees. Council, City Attorney and staff discussed contractual obligations regarding the indemnity plan, options impacts on retirees, total participation versus partial participation and PERS requirements. Councilman Claire described misconception of some members of the health care committees that PERS required total participation, and had the members been aware that partial participation (entire bargaining units, but not ALL bargaining units) was acceptable they would not have supported Condition No. 1 establishing the "everyone or no one" policy. Councilman Murray expressed concern that those bargaining units who signed the side letters would have limitations that the IAFF retirees would not, and Council should not change the Condition regarding everyone or no one. The condition was established to assure that all employees and all retirees be treated the same, and an entirely unfair result will occur if Council does not standy by all seven Conditions. The group taking City to binding arbitration (IAFF), if included in PERS without signing the side letter to the MOU, will be receiving a benefit that was bargained away - during previous negotiations. Vice Mayor LaBergee assured Councilman Murray that no Councilmember supported unilateral inclusion of the IAFF in PERS participation at this point as they did not sign their side letter to the MOU. Councilman Claire described IAFF's desire to have PERS but not to pay administrative costs, and suggested approving PERS participation for all other units who have signed side letters and the management and confidential groups; it would be unfair for IAFF to deny the wishes of the majority of our employees. M /S: Claire /Buchan to approve PERS participation for the three bargaining units and the management and confidential groups and approve appropriate resolution and motions. Mayor Greenalch asked for discussion on the motion. Councilman Murray suggested that confusion might arise unless the contractual language is clear that the $1.9 million cap was based on the assumption that all active employees would participate and not just those now proposing to participate in the PERS plan. Human Resources Director Irizarry explained the side letters to the agreements indicate that the health care benefits fund is based on active -- employees so there can be a corresponding reduction; the $1.9 million is the maximum amount to be spent on all employee health care benefits will be paic Minute MINUTE BOOK NO. 49 9/19/89 Page No. 103 Page 2