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BACKGROUND The Memorandum of Understanding (MOU) between the Livermore-Pleasanton Fire Department Joint Powers Authority and the International Association of Fire Fighters, Local 1974 (IAFF) expired on June 30, 2014. Representatives from the Union and the Cities met and conferred in good faith to develop a successor agreement. One element of the contract is the establishment of an employee cost sharing of the CaIPERS pension costs. Classic employees currently pay the full 9% employee share and will begin paying a portion of the employer's CaIPERS rate, increasing their contributions towards pensions to 12% by July 1, 2017. This added percentage is in alignment with PEPRA's goal of classic local firefighters paying 50% of the normal cost of their pensions up to a maximum of 12%. DISCUSSION Additional employee contributions towards pension costs, as negotiated in the recently adopted MOU, will result in significant savings to the Cities over the term of the contract. The contributions totaling an additional 3% for classic employees are scheduled to be implemented in four installments, with the first commencing upon the conclusion of the contract amendment process with CaIPERS. To implement this change using the CaIPERS contract amendment process, CaIPERS requires that the City adopt a resolution of intention to amend the contract to provide Section 20516 (Employees Sharing Additional Cost) of .5% for classic local fire members. In addition, an ordinance to that effect must also be adopted. Both the resolution of intention and introduction of the ordinance may take place at the same City Council meeting. Pursuant to Government Code Section 20471, there must be a 20 day waiting period between the adoption of the resolution of intention and the adoption of the final ordinance. Therefore, the final ordinance will be presented at the June 2, 2015 City Council meeting. Following the required process, and provided there are no delays in scheduling, the effective date of the contract amendment is July 2, 2015. The earliest the contributions can begin is the start of the pay period following the effective date of the contract amendment. Contributions are scheduled to begin July 4, 2015. Sub • -d by: - Fiscal eview: Approv d by: i De.ra Gill Tina Olson Nelson Fialho Director of Human Resources Director of Finance City Manager and Labor Relations Attachments: 1. Resolution 2. Ordinance 3. Contract Amendment Page 2 of 2