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there has been a lot of discussion regarding recycled water at the golf course. He explained that while the city is looking at that in the future, the infrastructure is not yet there and it will not be part of the phase one project discussed earlier. Councilmember Brown asked if he anticipated expanding recycled water to the golf course in time to be eligible for the state financing. Mr. Smith estimated that some funding would be available when the project is ready for consideration. MOTION: It was m/s by Narum/Brown, to waive full reading and adopt Urgency Ordinance No. 2092 to amend the Pleasanton Municipal Code Chapter 9:30 Water Conservation Plan and 14.04 Regulation of Water System to update the Urban Water Management Plan, and waive full reading and adopt Resolution No 14-666 approving an amendment to agreement with Zone 7. Motion carried by the following vote: Ayes: Councilmembers Brown, Cook-Kallio, Narum, Pentin, Mayor Thorne Noes: None Absent: None 14. Introduce upcoming negotiations with Pleasanton Police Officers' Association (PPOA) and International Association of Firefighters Local 1974 (IAFF) and receive public input Assistant City Manager Yuan-Miu provided a brief introduction to the item, which relates to two Memorandums of Understanding (MOU) with the Pleasanton Police Officers' Association (PPOA) and the International Association of Fire Fighters, Local 1974 (IAFF). The city's tradition has been to publicly introduce the item, provide background information and obtain public input before starting formal labor negotiations. Labor relations law requires that the two parties to each agreement meet and confer in good faith over the items covered in the scope of representation. The primary areas covered include the term of agreement, wage adjustments including incentive pays, benefits and operational issues. Following agreement on all items and ratification by the association's membership, a Tentative Agreement will be brought forward for Council review and consideration at one meeting and then ratification at a second. In the case of IAFF, the City of Livermore will also be asked to approve the MOU. The current MOU with PPOA, which became effective June 1, 2011 and expires May 31, 2014, covers a total of 73 employees comprised of police sergeants and officers. The MOU with IAFF is two and a half year contract covering a total of 107 fire captains, engineers, paramedics, fire fighters and inspectors serving the two cities of Pleasanton and Livermore. Recent negations have resulted in all employee groups paying the full CaIPERS Member Contribution, which for Public Safety is 9%. Police and Fire groups also implemented a lower retirement formula tier of 3% at 55 for what are known as "classic employees," or lateral employees who have passed the probationary period at another agency. Retiree medical benefits for new employees were also reduced to only cover the employee until age 65. While no general cost of living adjustments were made, the city did provide some increases to the certification incentive and uniform allowance. Lastly, several changes were made to address operational issues and scheduled time off. Ms. Yuan-Miu introduced the city's actuary, John Bartel. Mr. Bartel began his presentation with a review three notable CaIPERS issues that will impact the city's overall liability. He explained that in April of 2013 CaIPERS adopted what is referred to as "direct rate smoothing," which is designed to transition the calculation of contribution rates from an actuarial to market value of assets over a five year period. As part of that, CaIPERS is adjusting the amortization to City Council Minutes Page 12 of 18 March 18,2014