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to implement an additional 1% cost sharing for classic local police members of the <br /> Pleasanton Police Department. <br /> FINANCIAL STATEMENT <br /> The total savings of .5% employee cost sharing contributions by classic local fire <br /> members is approximately $65,000 per year which is shared equally by the City of <br /> Pleasanton and the City of Livermore. The total savings of 1% employee cost sharing <br /> contributions by classic local police members is approximately $85,000 per year for the <br /> City of Pleasanton. <br /> BACKGROUND <br /> The element of cost sharing with classic fire members of the Livermore-Pleasanton Fire <br /> Department was brought to the Council on May 5, 2015 when Council adopted the <br /> Resolution of Intention to amend its contract with CaIPERS to implement the first of four <br /> scheduled cost sharing payments, and then again on June 2, 2015 when the Council <br /> adopted an Ordinance changing the contract between the City of Pleasanton and <br /> CaIPERS. The resolution of intention being presented today is providing for the second <br /> of four scheduled cost sharing payments by local fire members of the Livermore- <br /> Pleasanton Fire Department and in accordance with the recently adopted Memorandum <br /> of Understanding (MOU). <br /> In addition, City representatives and representatives of the Pleasanton Police Officers' <br /> Association met and conferred in good faith to develop a successor agreement. One <br /> element of the recently adopted contract is the establishment of an employee cost <br /> sharing of the CaIPERS pension costs. Classic employees currently pay the full 9% <br /> employee share and began paying a portion of the employer's CaIPERS rate, <br /> increasing their contributions towards pensions to 10% effective June 6, 2015. Their <br /> contributions will increase to 10.5% by June 4, 2016. This added percentage moves <br /> towards the California Public Employees' Pension Reform Act's (PEPRA) goal of classic <br /> local police members paying 50% of the normal cost of their pensions up to a maximum <br /> of 12% of their PERSable wages. <br /> CaIPERS allows for only one contract amendment to be in process at any given time. <br /> With the recent MOUs, there are several cost sharing elements in each MOU requiring <br /> the City to initiate several contract amendments with CaIPERS, sometimes in close <br /> timing to one another. As the contract amendment process is lengthy, executing the <br /> contract amendments in close proximity to the scheduled dates of contributions can be <br /> challenging. Although contributions began June 6, 2015 for police members, and July 1, <br /> 2015 for classic local fire members, the City was already in a contract amendment <br /> process with CaIPERS and was unable, until now, to begin the contract amendment <br /> process for the current contributions. Because of this limitation, the City has worked with <br /> CaIPERS to combine both current contract changes for fire and police into one contract <br /> amendment process, therefore only one resolution and one ordinance is presented for <br /> your consideration. <br /> Page 2 of 3 <br />