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BACKGROUND The International Association of Firefighters, Local 1974 (IAFF) covers a total of 104 sworn fire personnel, which includes 99 suppression and five prevention employees. The recently expired Memorandum of Understanding (MOU) with this group covered the period July 1, 2014 through June 30, 2018. In accordance with the agreement between Livermore and Pleasanton creating the Livermore-Pleasanton Fire Department (LPFD), the Joint Powers Authority Board (Agency) and the City Councils of Livermore and Pleasanton are the appropriate agencies to approve labor agreements with employees covered by bargaining units. Representatives of the partner cities met and conferred with representatives of IAFF and developed a successor agreement with term ending December 31, 2021. 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 December 31, 2021, a three and one half (3.5) year term. The term of this contract, the same as the recently expired agreement allows for flexibility as well as stability for both employees and employers as the successor agreement will not necessitate negotiations until 2021. Wage adjustments: Historically, the two primary factors considered in wage adjustment discussions are: market data obtained from certain agreed upon neighboring agencies that are similar in size and perform municipal fire services, the consumer price index (CPI), which reflects the general cost-of-living increase in the San Francisco-Oakland- San Jose area (an average of 3.88% in 2018), financial forecasts and internal parity with other bargaining units and employees. The proposed contract includes 3% increases in January 2019, July 2019, a 3.5% increase in July 2020 and a 1% increase in July 2021. 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 2018/2019 this rate is 45.6%). The second is the contribution for which members are responsible. The passage of the Public Employees' Pension Reform Act (PEPRA) in 2013 resulted in significant changes to requirements associated with member contributions. Members joining CaIPERS after January 2013 are required by the law to pay 50% of the normal cost of the pension (the cost associated with the current year's earned benefits). "Classic Members", those already in the CaIPERS system as of January 2013 do not have this requirement. However, through previous bargaining Classic Members represented by IAFF currently pay Page 2 of 3