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MINUTES CITY OF PLEASANTON SPECIAL CITY COUNCIL MEETING May 19, 2011 1. CALL TO ORDER Mayor Hosterman called the special meeting to order at the hour of 6:00 p.m. 2. ROLL CALL Present: Councilmembers Cook-Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Absent: None 3. PUBLIC COMMENT Bart Hughes and David Miller addressed Council concerning the outcome of the re-negotiated contract with PCEA; felt it was a good start to fixing personnel costs associated with pensions and benefits. 4. PUBLIC HEARINGS AND OTHER MATTERS a. Tentative Agreement between the City of Pleasanton and Pleasanton City Employees Association/AFSCME 955 City Manager Fialho presented the agenda report stating that 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, the need for additional PERS contributions beyond the previously negotiated 2% employee contribution through March 31, 2013; and secondly, 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. • New 2ntl-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. It was m/s by McGovern/Cook-Kallio to approve the tentative agreement between PCEA/AFSCME as presented. Motion passed by the following vote: Ayes : Councilmembers Cook-Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: None 5. ADJOURNMENT: The special meeting adjourned at 6:15 p.m. Respectfully submitted, Karen Diaz City Clerk