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Vice-Mayor Brown noted there were not speakers to address this item. Councilmember Narum said she was again pleased to see strong financial prudence and accountability, as is reflected in the quality of these reports. Councilmember Pentin thanked Ms. Wagner for another clear and interesting presentation. MOTION: It was m/s by Olson/Brown to accept the Comprehensive Annual Financial Report (CAFR) and Other Related Audits for the Year Ending June 30, 2014. Motion passed by the following vote: AYES: Councilmembers Narum, Olson, Pentin, Vice Mayor Brown NOES: None ABSENT: Mayor Thorne Mr. Fialho stated that this would be Ms. Wagner's last presentation as the Director of Finance. He thanked her on behalf of both the Council and city staff for her exceptional work, noting that she is by far the best finance director he has ever had the privilege of working with. He also thanked her for being such an excellent steward of city finances, particularly during such difficult economic times. He explained that Ms. Wagner would continue on with the city until October 1, 2015, albeit in a different capacity, while her responsibilities are transitioned to the new Director of Finance. Ms. Wagner shared her appreciation over her fortune to have worked for Pleasanton both early in and towards the end of her career. 15. Introduction of proposed Memorandum of Understanding between the Livermore-Pleasanton Fire Department Joint Powers Authority and the International Association of Firefighters Local 1974 with term ending June 30, 2018 Assistant City Manager Yuan-Miu presented the staff report, introducing the proposed Memorandum of Understanding (MOU) and tentative agreement which was ratified by the International Association of Firefighters (IAFF) in December 2014. Following introduction tonight both the Cities of Pleasanton and Livermore will be asked to adopt the final MOU, February 3rd and January 26`h respectively. The IAFF membership covers a total of 104 employees including Captains, Engineers, Firefighter Paramedics, Firefighters and Fire Inspectors. Parties to the MOU, including representatives from the IAFF and Cities of Pleasanton and Livermore, met and conferred in good faith over the four major items within the scope of representation —term, wage adjustments, benefits and operational issues. Ms. Yuan-Miu briefly reviewed the elements negotiated in the previous 2.5 year terms: • No cost of living adjustments given; • Employee payment of full CaIPERS Member Contribution (9%); • Lower tier retirement formula — 3% at 55 for"classic" employees (lateral hires); • Retiree medical limited to employee only, up to the age of 65; • Incremental increase of 2% to certification incentives; • Minor increase to uniform allowance; • Employer HSA contribution of$75 for employees in lower tier retiree medical program; As an aside, the enactment of PEPRA in 2013 required that all new employees to the CaIPERS system be subject to a lower retirement formula of 2.5% at age 57, based on an average of the 3 highest years' earnings. Key elements of the current negotiations include: • A longer contract term of July 1, 2014 to June 30, 2018; • Cost of living adjustments of 3% in January 2015, July 2015, July 2016 and July 2017; City Council Minutes Page 10 of 12 January 20,2015