SPECIAL MEETING NOTICE - Laserfiche WebLink

THE CITY OF CITY COUNCIL AGENDA REPORT pLEEASA4NTON. Special Meeting May 19, 2011 City Manager TITLE: TENTATIVE AGREEMENT BETWEEN THE CITY OF PLEASANTON AND PLEASANTON CITY EMPLOYEES ASSOCIATION/AFSCME LOCAL 955 SUMMARY The attached agenda report, dated January 18, 2011, summarizes recently negotiated employee concessions reached in a tentative agreement with Pleasanton City Employees Association/AFSCME Local 955 (PCEA/AFSCME). On February 15, 2011 representatives from PCEA/AFSCME agreed to reopen negotiations with the City. In doing so, the City requested that two outstanding issues be addressed. First, to address the need for additional contributions beyond the previously negotiated 2% employee contribution through March 31, 2013. Secondly, to address the need for the implementation of a 2nd Tier retirement formula for new hires within a predictable timeframe to address long-term structural reform and unfunded liabilities. Discussions between both parties have now concluded and the provisions outlined in the January 18th report remain in place; however, the following significant exceptions have been incorporated: • Revised PERS Contribution — PERS contributions by represented employees will be amended as follows: all employees begin paying 2% on 7/1/11; all employees begin paying 3% on 12/1/11; and all employees begin paying 4% on 7/1/12. The cumulative budgetary savings through March 31, 2013 associated with the proposed employee contributions is approximately $1.05 million (see exhibit A). • New 2nd-Tier Retirement Formula — Implement pre-2001 retirement formulas for new hires no earlier than March 31, 2013 and following negotiations with police and fire to implement pre-2001 retirement tiers for new public safety personnel. Upon implementation, this change will reduce the City's unfunded liability by $3.4 million for the miscellaneous group (see exhibit B). The impact will also have the effect of extending retirement ages and reducing annual pensions for new personnel hired after the implementation date (see exhibit C).