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to implement an additional .5% cost sharing for classic local police members of the Pleasanton Police Department. FINANCIAL STATEMENT The total savings of .5% employee cost sharing contributions by classic local fire members is approximately $65,000 per year which is shared equally by the City of Pleasanton and the City of Livermore. The total savings of .5% employee cost sharing contributions by classic local police members is approximately $42,500 per year for the City of Pleasanton. BACKGROUND The element of cost sharing with classic fire members of the Livermore - Pleasanton Fire Department was originally brought to the Council on May 5, 2015 when Council adopted the Resolution of Intention to amend its contract with CalPERS to implement the first of four scheduled cost sharing payments, and then again on June 2, 2015 when the Council adopted an Ordinance changing the contract between the City of Pleasanton and CalPERS to increase employees' contributions to 10 %, the full 9% employee share and an additional 1 % of the employer's CalPERS rate. The resolution of intention being presented today is providing for the third of four scheduled cost sharing payments by local fire members of the Livermore - Pleasanton Fire Department increasing employee contributions to 10.5% effective July 2, 2016 and in accordance with the current MOU. In addition, City representatives and representatives of the Pleasanton Police Officers' Association negotiated an agreement in 2015. One element of the current contract is employee cost sharing of the CalPERS pension costs. Classic employees are currently paying 10 %, the full 9% employee share and an additional 1% of the employer's CaIPERS rate. The resolution of intention being presented today is providing for the second of two scheduled cost sharing payments bringing contributions of Classic police members to 10.5% effective June 4, 2016. This added percentage moves towards the California Public Employees' Pension Reform Act's (PEPRA) goal of classic local police members paying 50% of the normal cost of their pensions up to a maximum of 12% of their PERSable wages. CalPERS allows for only one contract amendment to be in process at any given time. With the most recent MOUs, there are several cost sharing elements in each MOU requiring the City to initiate several contract amendments with CalPERS, sometimes in close timing to one another. As the contract amendment process is lengthy, executing the contract amendments in close proximity to the scheduled dates of contributions can be challenging. Although contributions will begin June 4, 2016 for police members, and July 2, 2016 for classic local fire members, the City has worked with CalPERS to combine both current contract changes for fire and police into one contract amendment process, therefore only one resolution and one ordinance is presented for your consideration. Page 2 of 3