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SIDE LETTER AGREEMENT <br />BETWEEN THE CITY OF REDWOOD CITY AND <br />SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 521 <br />RE: DENTAL INSURANCE <br /> <br />Page 1 of 2 <br />This Side Letter Agreement (the "Agreement") is entered into by and between the City of <br />Redwood City ("City") and the Service Employees International Union Local 521 ("Union") <br />(collectively the “Parties”). This Agreement is intended to set forth the terms for Dental Insurance <br />for eligible employees represented by the bargaining unit for calendar year 2026. <br /> <br />WHEREAS, the City and the Union have a Memorandum of Understanding ("MOU") in effect that <br />governs terms and conditions of employment, which expires January 23, 2028; <br /> <br />WHEREAS, Section 22.3 of the MOU entitled “Dental Insurance” provides that, “The City shall <br />continue to provide to eligible employees and dependents dental insurance through the Delta <br />Dental Plan effective October 1, 2003 through the term of this agreement to include coverage’s <br />as follows: $2,000.00 annual cap for basic coverage and $2,000.00 lifetime cap for orthodonture, <br />provided however, that upon the request of the City, the parties will re-open this Article 22.3 to <br />meet and confer on modifying 22.3 to provide a different dental insurance plan. In the event the <br />City exercises this option to re-open, the provisions of Article 30, No Strike, will not be in effect <br />during the period of such re -opener discussions.” <br /> <br />WHEREAS, the calendar year 2025 the Delta Dental plan pays for 80% of the cost of approved <br />services, and the employee is responsible for 20% of the cost of approved services, subject to the <br />annual cap $2,000.00 annual cap for basic c overage and $2,000.00 lifetime cap for orthodonture, <br />and subject to other terms and conditions of the plan . <br /> <br />WHEREAS, the City agreed with other labor unions to form a dental committee to review dental <br />plan options, and as a result of the work of the commi ttee, determined that the City could opt <br />for plan improvements to the Delta Dental plan for calendar year 2026; <br /> <br />NOW, THEREFORE, the City and the Union agree as follows: <br /> <br />1. Subject to City Council approval of this side letter, effective January 1, 2026, the Delta <br />Dental plan will cover 90% of the cost of approved services provided by in-network <br />providers, and the employee will be responsible for 10% of the cost of approved services <br />provided by in-network providers. Effective January 1, 2026, the Delta Dental plan will <br />continue to cover 80% of the cost of approved services provided by premier and out-of- <br />network providers, and the employee will be responsible for 20% of the cost of approved <br />services provided by premier and out -of-network providers. <br /> <br />2. Subject to City Council approval of this side letter, effective January 1, 2026 , the annual <br />cap for dental care will increase to $2,500, and the and lifetime cap for orthodonture will <br />increase to $3,000, subject to all other terms and conditions of the plan. <br /> <br />10.A. - Page 8 of 19 <br />372