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BACKGROUND The Pleasanton Police Officers' Association membership includes all of the City's 73 sworn law enforcement personnel, comprised of 13 police sergeants and 60 police of- ficers. The most recent Memorandum of Understanding (MOU) with the PPOA covered the period June 1, 2014, through May 31, 2017. Representatives of the City met and conferred with representatives of PPOA and developed a successor agreement with a three-year term ending May 31, 2020. DISCUSSION In accordance with the Meyers-Milias-Brown Act, the parties are required to meet and confer in good faith over items covered within the scope of representation, including wages, hours and other terms and conditions of employment. The significant results of the negotiations include: Term of Agreement: The expiration date of the proposed MOU is May 31, 2020. The term of this contract covers the same time period as the recently expired agreement and is consistent with previous contracts secured with the PPOA. Wage Adjustments: Historically, the two primary factors considered in wage adjustment discussions are: market data obtained from neighboring agencies that are similar in size and perform law enforcement services, and the consumer price index (CPI), which reflects the general cost-of-living increase in the San Francisco-Oakland-San Jose area (approximately 2.9 percent in August 2017). The recently expired MOU provided three separate wage adjustments of 3 percent in January 2015, June 2015 and June 2016. The proposed contract includes three separate wage adjustments of 3.5 percent effective after adoption of the contract, 3 percent June 2018 and 3 percent June 2019. One-time Stipend: A one-time payment of$2,000 per employee will be granted upon adoption of the proposed contract and in recognition of the department's completion of Crisis Intervention Training by all police officers and sergeants. This payment will not be used in the calculation of other earnings afforded in the MOU and will not be subject to CaIPERS payments. Benefits: Modifications to benefits include the following: Pension — Employee Contributions: The cost to fund the California Public Employees' Retirement System (CaIPERS) pension program is comprised of two parts. The first is a variable employer rate which is expressed as a percentage of salary for covered employees (in FY 2017/2018 this rate is 36.4 percent for the 3 percent @ 50 formula, and 16.9 percent for the 3 percent @ 55 formula). The second is the contribution for which members are responsible. Page 2 of 4