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DISCUSSION <br />Additional employee contributions towards pension costs, as agreed upon in the current <br />MOUs, result in significant savings over the term of their contracts. The contributions <br />totaling an additional 3% for classic local fire members and an additional 1.5% for <br />classic local police employees is in alignment with the cost sharing goals of PEPRA. <br />To implement these changes using the CalPERS contract amendment process, <br />CalPERS requires that the City adopt a resolution of intention to amend the contract to <br />provide Section 20516 (Employees Sharing Additional Cost) of an additional .5% for <br />classic local fire members and an additional .5% for classic local police members. In <br />addition, an ordinance to that effect must also be adopted. Both the resolution of <br />intention and introduction of the ordinance may take place at the same City Council <br />meeting. Pursuant to Government Code Section 20471, there must be a 20 day waiting <br />period between the adoption of the resolution of intention and the adoption of the final <br />ordinance. Therefore, the final ordinance will be presented at the May 17, 2016 City <br />Council meeting. <br />Following the required process, the effective date of the contract amendment is July 2, <br />2016. The earliest the contributions can be recognized under the contract amendment is <br />the start of the pay period following the effective date of the contract amendment. <br />Contributions are scheduled to be recorded under the contract amendment effective <br />July 2, 2016. <br />Subm a by: <br />De a Gill <br />Director of Human Resources <br />and Labor Relations <br />Attachments: <br />1. Resolution <br />2. Ordinance <br />Fiscal Review: <br />Tina Olson <br />Director of Finance <br />Page 3 of 3 <br />Approved y: <br />Nelson Fialho <br />City Manager <br />