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Councilmember McGovern asked if any of the language pertains to retiree medical benefits. Mr. Bartel said there might be some limitation prohibiting agencies from paying more in retiree medical benefits for management than for rank and file employees, but he is not entirely clear on this. Councilmember McGovern requested an update on where the City stands in terms of benefits for department heads, managers and confidential employees. Mr. Fialho said he has been paying the full member contribution for several years. All department heads management and confidential employees will begin paying the full EPMC effective the first pay period in September, and police and fire employees will pay their full 9% at the end of 2013. The latest PCEA contract is at 4% of the EPMC with clear direction to increase to 8% upon conclusion of the contract. In terms of pension, he noted that it is dependent on when an employee was hired and under which contract they fall. For new employees the 3% at 55 formula was implemented for management last year, police this year and the Council is about to enact the same for fire. Councilmember Cook-Kallio said this is a short-term contract that obviously only begins to address the long-term plan. She said she commented the previous week about hearing chatter at the State level and is delighted to see the State has acted so quickly. She reminded the public that those who work for the City of Pleasanton are providers of services, not just consumers of tax dollars and that any conversation about a decrease in expenditures needs to be accompanied by an acknowledgement of what the public is willing to give up. She stated that all employees across the City have tightened their belts and taken on less for more because they know it is what is needed. She also asked that the public keep in mind that these are human beings whose job brings them face to face with tragedy on a daily basis, and that the cumulative effect of this carries a higher cost than most can begin to comprehend. She noted that Pleasanton's operating budget for LPFD is just under $14 million, which amounts to around $203 annually per capita, and thought this a small price to pay for anyone who has ever needed their services. She appreciated the conversations she has had with the public, including Mr. Hughes, but that what the public says at the podium and what the Council is tasked with balancing are somewhat different. She thanked everyone involved for their effort in negotiating a contract that does what is best for employees and the City as a whole. Councilmember Thorne added his thanks to staff, the negotiating team and everyone who offered their input. He said he felt the agreement takes a big step forward and in the short-term, has the biggest impact possible on the year-to-year budget. In terms of the long-term liability, he said he has never been in favor of a two-tiered system because the meaningful impacts are deferred, the base of employees in the retirement system will continue to grow while we wait for these changes to catch up, and he believed they create potential morale issues. However, it is one of the few tools the State has allowed as a means to address the long-term liability. He said he has indicated that he will continue to follow this legislation as it moves forward and would be happy to meet with anyone who would like an update following his conference call on Thursday. This contract is not the end and that they need to continue the dialogue with both the bargaining teams and the public. Councilmember Sullivan thanked Mr. Fialho and staff for providing the information he requested at the last meeting. He said he believed this to be a good plan that begins to address what the City and public have voiced as being important, including changes to the EPMC, retirement Special City Council Minutes Page 4 of 5 August 28, 2012