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MINUTES CITY OF PLEASANTON SPECIAL CITY COUNCIL MEETING January 31, 2012 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: None 4. INTRODUCTION OF A TENTATIVE AGREEMENT BETWEEN THE CITY OF PLEASANTON AND THE PLEASANTON POLICE OFFICERS' ASSOCIATION (PPOA) FOR A TERM ENDING MAY 31, 2014 City Manager Nelson Fialho introduced the item. He acknowledged the difficulties of the labor negotiation process as well as the willingness of PPOA to work with the City on these issues. The Tentative Agreement represents a significant step in implementing the pension policy approved by the Council. While it does shift a significant portion of the burden to the employee, essentially resulting in a pay cut, it allows for creation of a more sustainable pension program that will better serve employees in the long term. Assistant City Manager Julie Yuan-Miu, Chief Negotiator for the City, briefly reviewed the current memorandum of understanding of PPOA, which covers the period from June 1, 2008 through May 31, 2011. The City initiated negotiations on the new agreement following a public input period in August 2011. The negotiation process focused on the term of the agreement, wages, benefits, and operational issues within the scope of representation. Staff reached a tentative agreement with PPOA and is requesting public input before the item returns to the Council for action on February 7, 2012. The Tentative Agreement specifically establishes the following key points: • The agreement term runs through May 31, 2014; • No salary adjustments; • PPOA members agree to assume the full 9% Employer Paid Member Contribution (EPMC) by July 2013; • Tier two retirement benefits are payable at 3% at age 55, with the retirement calculation based on an average of the three highest paid years (as opposed to the single highest paid year); • Retiree medical benefits for new hires include single party coverage only and end when the employee becomes Medicare eligible. The total fiscal impact resulting from the agreement is a savings of$2.4 million for the City. City Manager Fialho introduced John Bartel, President and Chief Actuary of Bartel & Associates. Mr. Bartel has a long history representing Pleasanton as well as other cities. He is an authority on pension plan structures, is cited in a number of related documents both labor friendly and not, and has spoken before legislature on this very issue.