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BACKGROUND The Pleasanton Police Officers Association represents 79 employees in the sworn job classifications of Police Officer and Police Sergeants. The current Memorandum of Understanding (MOU) between the City of Pleasanton and the Pleasanton Police Officers Association (PPOA) expired on May 31, 2008. In accordance with the Meyers- Milias-Brown Act, representatives from both parties are expected to meet and confer in good faith to discuss items covered within the scope of representation such as wages, hours, and other terms and conditions of employment. In recent years, the City's practice has been to present the matter in public session to allow for open discussion in two sessions. The first session provides an opportunity to introduce the matter and receive input from the City Council and the public prior to the start of negotiations. Upon receiving input and Council direction, representatives from the City are given the authority to negotiate with the PPOA. All agreements reached between the parties during this meet and confer process are tentative until the contract is ratified by the PPOA and approved by the City Council. On February 19, 2008, staff held the first public session to obtain input. As discussed that evening, items of general concern for many agencies, Pleasanton included, are: • The cost of providing health care, and in particular, the cost for retiree medical benefits; • Balancing the need to maintain competitive wages in order to recruit and retain sworn police officers while being fiscally prudent; and • Developing a competitive package within budgetary parameters. Representatives of the City have met and conferred in good faith with representatives of the PPOA and developed a successor agreement covering the period June 1, 2008 through May 31, 2011. The key elements of the tentative agreement are as follows: DISCUSSION Term of Agreement: Three (3) years starting June 1, 2008 through May 31, 2011. The contract that recently expired was for a period of seven (7) years. A shorter contract allows the City greater flexibility to make adjustments should the economic environment change significantly. Therefore a three year contract was negotiated. Wage Adjustments: 4% wage increase each year, effective the first pay period of June for the two classifications of Police Officer and Police Sergeant. A salary survey prepared at the commencement of negotiations (see Attachment 1A and 16) showed that the Pleasanton classifications were essentially at the mean compared to the survey cities. The survey cities are composed of neighboring cities similar in size to Pleasanton. They include: Antioch, Concord, Fremont, Hayward, Livermore, Milpitas, San Leandro, Union City and Walnut Creek. The upcoming wage adjustment of survey cities ranged from 2.75%-9.39%. The City also considered the Consumer Price Index Page 2 of 4