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Mr. Brozosky referred to the changes in calculating overtime and asked what amount would be saved. Ms. McKeehan said that amount is not quantifiable at this time and staff did not want to make a guess. There are also issues regarding Workers' Compensation, which have more impact than any issue related to this retirement/salary package. One piece of this contract involves a return to work program, which helps get employees back to work. There is a dollar savings, but that is also not quantifiable at this time. Staff can track it over time. Mr. Brozosky said according to his calculations there is a 35% increase in retirement benefits retroactively. Over the eight-year contract, there would be a 40% increase in salaries if you compound the 4% annual increase. The net income to the city over eight years will be $5 million, but this contract will actually add $18 million of expense. He asked the city to post on the website the average salaries and the benefits. He felt taxpayers had the right to know. Ms. Ayala asked for clarification about the employees who have served at other cities. If they are at another city for ten years with a 2% at 55 formula and they work at Pleasanton for ten years with the 2.7% at 55 formula, then they get 2% from the other city and 2.7% from Pleasanton? Ms. McKeehan said that was correct and explained how that is calculated by PERS. Jerry Thorne, 5144 Hummingbird, presented a chart to demonstrate how the economy and pay relate over time. He believed the City Manager had done a good job in dealing with compensation packages over the years. He was surprised the staff only uses nine other cities for comparison. The private sector uses at least fifteen other companies and not necessarily similar companies. He believed this was a case of micromanagement. The City hires good management staffto negotiate contracts and he felt Council should trust and rely on their good judgment. He indicated he had met Strom Thurman at the Brookings Institute and quoted him as saying the difference between a private company and the government is that the private company is not a democracy. He agreed the public has a right to know the numbers, but does not have a right to micromanage the managers who do the job. Brian Arkin, 3740 Newton Way, asked if the retirement plan was indexed with inflation? Ms. McKeehan said it is indexed at the rate of 2%. Mr. Arkin asked if the City Councilmembers get a retirement plan? Ms. McKeehan said Councilmembers are eligible for any City benefits. The retirement would use the same formula, so if they chose to participate, and many Councilmembers choose not to participate, it would be a percentage of their pay for the number of years they were in service. It would be unusual for a Councilmember to receive more than $50. Pleasanton City Council 14 10/01/02 Minutes