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• New hires to pay 50% of normal costs (10.5%) - PEPRA requirement; • Classic employees to pay 50% of normal costs up to 12% by 2017; • Employer contribution of 0.5% in deferred compensation in 2016; • Employer contribution of $25 towards medical benefits for active employees not currently making any contributions; • Employer HSA contribution increased to $150 per month (full match); • Vacation cash out of up to 48 hours and employees are allowed to reach the next level of accrual one or two years in advance; • Acting assignments — the city will be allowed to make acting assignments for vacancies that exceed 10 shifts. The total financial impact for the term of the contract is $4.9 million, with Pleasanton's share totaling $2.45 million. Costs for the current Fiscal Year are a little under $200,000 and will be supported by the General Fund Contingency Fund. Councilmember Narum requested clarification on when the provisions of the MOU take effect, noting an effective date of January 2015 but also that staff stated earlier it would not be approved by the Council until February 2015. Ms. Yuan-Miu clarified that the MOU will actually be retroactive to July 1, 2014, with compensation and certain employer contributions retroactive to the first pay period in January 2015. The pension contributions however, are adopted by amendment and will not take effect until adoption of the MOU. Vice-Mayor Brown opened the item for public comment. Erik Anderson, Local IAFF chapter President, thanked the cities of Pleasanton and Livermore and their staff. He shared his appreciation for the professional negotiations that all parties engaged in and said he looks forward to maintaining this positive relationship moving forward. Peter Richert, IAFF President-Elect, also commended staff for the hard work that went into crafting the agreement. He said the proposed MOU represents a lot of give and take on all sides and frankly passed by only the narrowest of margins. He urged the Council to support the draft agreement. Councilmember Brown asked if he could disclose how narrow the margin was. Mr. Richert said that if even one individual had voted differently, this version of the MOU would not have come forward. Vice-Mayor Brown closed public comment. Councilmember Narum stated her support for the contract, which she felt was both good and fair. She recognized that the previous agreement contained no wage adjustments or cost of living increases and said she was pleased with the level of compromise achieved in this agreement. Councilmember Olson commended all parties involved, acknowledging the difficult and stressful process involved in negotiating labor contracts. Councilmember Pentin echoed their comments. He thanked city staff as well as LPFD representatives. He said he felt this was a good contract and that he was pleased to see that some sort of middle ground was reached. He commended both Pleasanton and Livermore for granting what is a much deserved wage increase and the employees for stepping up to assume the full 12% pension contribution. City Council Minutes Page 11 of 12 January 20, 2015