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Kurt Schlehuber, PPOA Board Member, said he is grateful to work in the City of Pleasanton. The officers' contribution of the full 9% EPMC will affect every officer and their families. He voiced his support for the contract. Dirk Hooper, PPOA Vice President, said the Tentative Agreement provides the City with public contributions and some level of pension reform while at the same time honoring the hard work and dedication of its officers. Pleasanton's officers care deeply about this community and have proven that with contract before the Council. He asked the Council to not let rhetoric laden contrarians convince them otherwise. Kristie Fountain, PPOA, respectfully requested that the Council show its support for Pleasanton officers by approving the proposed contract. Mark Gwin, PPOA, said it is unfortunate to hear the public minority continue to belittle and question the value of Pleasanton's police officers. These officers work hard to protect this city and are fully committed to serving its citizens. Richard Trovao, PPOA, asked the Council to support the Tentative Agreement, which saves the City millions of dollars and prevents the loss of vital services. Tim Martens, PPOA, thanked all parties for the hard work put into developing this contract. PPOA officers have made significant concessions because they love Pleasanton and value its future. He said it is clear that no amount of concessions would please those who claim to be the express representatives of Pleasanton taxpayers. He guessed that if polled, very few citizens would support an all out attack on the pay and benefits of Pleasanton officers. Lisa Cavellini, PPOA, noted that this is the only bargaining unit to date that has agreed to pay the full 9% towards PERS. Despite what equates to a $1,000 monthly pay cut and the fact that the City has healthy General Fund reserves, officers support the contract for the valuable services it allows them to provide. The following PPOA members registered their support for the agreement: Jason Hunter, Ryan Tujague, Michael Rossilon, Archie Chu, and Mark Reimer. Mayor Hosterman closed the public comment. City Manager Fialho responded to several of Mr. Hughes' questions. He stated that the salary schedule presented by the Tentative Agreement is the same as has been in effect for the last 12 months. While there are no overall schedule increases, officers do still have the opportunity to advance within the stepped continuum based on appropriate performance evaluations. As for contingencies, the City's best tool is to advance short-term contracts such as this. While he has received no indication from any bargaining groups that they would not be willing to sit down with the City and address any tough fiscal issues that may arise, there are also two economic recession reserves in place to cover the gap until these shorter-term contracts collapse. He stated that negotiations focused on the 5 objectives identified by Council through Closed Session discussions; tier one benefits were not included in this strategy. He stressed that the discussion has not come to an end, but rather ebbs and flows based on the economy. He explained that the more important issue associated with tier one employees is that they are considered vested under California law. Legal counsel has advised that while the City can certainly make changes to the retirement formula, a like benefit must then be provided to the employee and this does not create the kind of operational cost reduction intended. He referred to the comprehensive annual financial report for information on unfunded liabilities. Special City Council Minutes Page 3 of 4 January 4,2012