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BACKGROUND The element of cost sharing with classic local police members of the City of Pleasanton was included in the previous MOU between the City and PPOA, with Council approving the first cost sharing payment through an ordinance adopted on September 1, 2015. On April 1, 2016, Council adopted a subsequent ordinance amending the contract between the City of Pleasanton and CaIPERS to increase cost sharing again, resulting in the current 10.5% employee contribution. The current 10.5% includes the full nine percent (9%) employee share and an additional one and one half percent (1.5%) of the employer's CaIPERS rate. The resolution of intention being presented today is providing for an increase to cost sharing payments for classic local police members, which will bring the total employee contribution to 12% effective June 2, 2018 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 remainder of the term of the contract. The contributions totaling an additional one and one half percent (1.5%) 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 police 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 twenty (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 20, 2018 City Council meeting. Following the required process, the effective date of the ordinance is April 19, 2018. The contract amendment is effective June 2, 2018. Contributions are scheduled to be recorded under the contract amendment effective June 2, 2018, in accordance with the effective date negotiated in the current MOU. Submitted by: Fisc Review: Approved by: 4/ 1/ - ebr 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