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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 CaIPERS to implement the first of four scheduled cost sharing payments Since that time, cost sharing with classic fire members has been brought to Council two additional times, on June 2, 2015 and May 17, 2016 On those dates, Council adopted Ordinances changing the contract between the City of Pleasanton and CaIPERS to increase employees' contributions to 10%, and 10 5%, respectively The current 10 5% includes the full 9% employee share and an additional 1 5% of the employer's CaIPERS rate The resolution of intention being presented today is providing for the final of four scheduled cost sharing payments by local fire members of the Livermore-Pleasanton Fire Department, increasing employee contributions to 12% effective July 1, 2017 and in accordance with the current MOU DISCUSSION Additional employee contributions towards pension costs, as agreed upon in the current MOU, result in significant savings over the term of their contracts The contributions totaling an additional 3% for classic local fire members is in alignment with the cost sharing goals of the Public Employees' Pension Reform Act (PEPRA) To implement these changes 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 an additional 1 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 March 7, 2017 City Council meeting Following the required process, the effective date of the ordinance is April 6, 2017 The contract amendment is effective July 1, 2017 Contributions are scheduled to be recorded under the contract amendment effective July 1, 2017, in accordance with the effective date negotiated in the current MOU Subm -d by Fisc ( e iew Approv_ by i4 /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 Page 2 of 2