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MINUTES CITY OF PLEASANTON SPECIAL CITY COUNCIL MEETING August 28, 2012 1. CALL TO ORDER Mayor Hosterman called the special meeting to order at the hour of 6:30 p.m. 2. ROLL CALL Present: Councilmembers Cook-Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Absent: None 3. PUBLIC COMMENT: None 4. APPROVE THE TENTATIVE AGREEMENT BETWEEN THE LIVERMORE- PLEASANTON FIRE DEPARTMENT JOINT POWERS AUTHORITY AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS LOCAL 1974 WITH TERM ENDING JUNE 30, 2014 City Manager Fialho introduced the item, noting that tonight's presentation is essentially a restatement of that from the last Council meeting. He called attention to two additional pieces of information requested by Councilmember Sullivan: The Pension White Paper adopted by the Council in August 2011, including the meeting minutes, and a memo highlighting the various meeting dates at which the topic was discussed. He acknowledged the questions that the Council and public may have regarding the new pension proposal released by the Governor's office today and offered a brief review by the Chief Actuary. Assistant City Manager Julie Yuan-Miu stated that the Memorandum of Understanding with the Livermore-Pleasanton Fire Department (LPFD), a Joint Powers Authority between the Cities of Livermore and Pleasanton, and the International Association of Firefighters (IAFF) Local 1974 expired on December 31, 2011. Negotiations, which began in January 2012 covered the term of agreement, wages, benefits, and operational issues. Members of the IAFF have ratified the Tentative Agreement, which was introduced on August 21s`. Tonight, is the second presentation and possible approval by the City Council. Ms. Yuan-Miu discussed the highlights of the Tentative Agreement that expires June 30, 2014. Major points include no cost of living adjustment, a 3% at 55 retirement based on three years highest earnings for new hires, an increase to the members share of the Employer Paid Member Contribution (EPMC) from 2% to 6% upon ratification of the agreement and the full 9% by July 2013. Retiree medical benefits are adjusted to single party coverage for new hires, with the City's obligation terminating at the then current Medicare eligible age. The net fiscal impact of savings, less expenses for the LPFD, is $1.3 million through Fiscal year 2013-14. Included in this figure is the net fiscal cost to the City of Pleasanton of $416,000. She noted that these figures do not include additional savings resulting in the significant change in pension and retiree medical programs for new hires. Chief Actuary John Bartel repeated the presentations from the previous meeting with the addition of on the actuarial caveat that all projections are based on the most recently available