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AYES: Councilmembers Narum, Olson, Pentin, Vice Mayor Brown NOES: None ABSENT: Mayor Thorne 14. Introduction of proposed Memorandum of Understanding between the City of Pleasanton and the Pleasanton Police Officers' Association with term ending May 31, 2017 Director of Human Services Debra Gill presented the staff report. She stated that the previous Memorandum of Understanding (MOU) covering the 73 sworn officers in the Pleasanton Police Officers' Association (PPOA) expired May 31, 2014. In early 2014, staff began the process to meet and confer with the bargaining unit over wages, hours and other terms and conditions of employment. City and PPOA representatives met and have prepared a Tentative Agreement that they believe meets the four identified objectives: • To provide reasonable cost of living adjustments; • To increase employee contributions to the CaIPERS pensions; • To provide a means of compensation that is not subject to roll ups, which was identified as deferred compensation; • To increase employee contributions to medical premiums. Ms. Gill reviewed the following key elements of the Tentative Agreement: • An expiration date of May 31, 2017; • Wage adjustments of 3% each in January 2015, June 2015 and June 2016; • Increase employee contributions to PERS pensions by 1% (for a total of 10%) in June 2015 and an additional 0.5% (total of 10.5%) in June 2016; • Introduce deferred compensation contributions for employees at 0.5% of base pay beginning June 2016; • Any employee not paying towards their medical contributions will begin paying $25 per month. This represents approximately 90% of the bargaining group; • Deferral of the 20 hour reduction in paid time off from 2015 to 2017. The overall financial impact of the proposed MOU is approximately $1.85 million through the 2015-16 FY, with $260,000 of that in the current Fiscal year. As is the city's practice, the proposed MOU is being brought forward tonight for public input and Council comment and will return to the Council on March 24`h for consideration and potential adoption. Councilmember Narum asked when the bargaining unit last received a cost of living increase. Ms. Gill said there were none in the previous contract, so it would have been prior to 2011. Vice Mayor Brown asked and Ms. Gill confirmed that cost of living increases are typically in the range of 3% according to the Consumer Price Index. Vice Mayor Brown invited public comment. Ken McNeill, PPOA President, thanked city staff for the sometimes arduous but always cooperative effort. He said the proposed MOU represents a good, fair and equitable contract for both parties, as evidenced by 90% of the membership voting in support of the agreement. He thanked the city for recognizing the needs of its officers and their continued willingness to help the city overcome its rising medical care and pension cost hardships. He urged the Council to vote in support of the agreement and assured them that all officers would continue to provide the high level of service and protection that residents have come to expect of Pleasanton. Vice Mayor Brown closed public comment. City Council Minutes Page 7 of 9 March 17,2015