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BACKGROUND The Pleasanton Police Officers' Association membership includes all of the City's 73 sworn law enforcement personnel, comprised of 13 police sergeants and 60 police of- ficers. The most recent Memorandum of Understanding (MOU) with the PPOA covered the period June 1, 2011 through May 31, 2014. Representatives of the City met and conferred with representatives of PPOA and developed a successor agreement with a two-year term ending May 31, 2017. DISCUSSION In accordance with the Meyers-Milias-Brown Act, the parties are required to meet and confer in good faith over items covered within the scope of representation, including wages, hours and other terms and conditions of employment. The significant results of the negotiations include: Term of Agreement: The expiration date of the proposed MOU is May 31, 2017, approximately two (2) years from the date the document becomes operationally effective. The term of this contract covers the same time period as the recently expired agreement and is consistent with previous contracts secured with the PPOA. Wage Adiustments: Historically, the two primary factors considered in wage adjustment discussions are: market data obtained from neighboring agencies that are similar in size and perform law enforcement services, and the consumer price index (CPI), which reflects the general cost-of-living increase in the San Francisco-Oakland-San Jose area (approximately 2.7% in December 2014). The recently expired MOU did not provide wage adjustments for the entire term of the contract. The proposed contract includes three separate wage adjustment of 3% effective January 2015, June 2015 and June 2016. Benefits: Modifications to benefits include the following: Pension — Employee Contributions: The cost to fund the California Public Employees' Retirement System (CaIPERS) pension program is comprised of two parts. The first is a variable employer rate which is expressed as a percentage of salary for covered employees (in FY 2014/2015 this rate is 27.8% for the 3% @ 50 formula, and 21.4% for the 3% @ 55 formula). The second is the contribution for which members are responsible. The passage of the Public Employees' Pension Reform Act (PEPRA) in 2013 resulted in significant PERS retirement changes including requirements associated with member contributions. As such, PPOA members new to the program are required by the law to contribute 11.5% of their salary towards retirement. "Classic Members," those already in the CaIPERS system, do not have this requirement and instead their contribution is fixed at 9%, which PPOA Page 2 of 4