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Retained the services of a legal firm with expertise in employee benefits, labor and employment law to advise on employee benefit and tax implications of pre funding an irrevocable trust. Evaluated investment options for meeting GASB 45 and the cost of City OPEBs. Set aside funding each year since 1990 to accumulate reserves for the purpose of pre- funding retiree medical benefits. It is estimated that by the end of the current fiscal year the total of these reserves will be approximately $48.2 million. Made presentations to IAFF, POA, and management employees to inform them of the new accounting rule and how it illustrates the long term cost of the retiree medical benefit. Evaluated various long term funding options including continuing the current pay as- you -go practice, partially pre- funding a trust, or fully pre- funding the City's entire liability by issuing debt. Held discussions with the City of Livermore regarding the cost sharing for Livermore Pleasanton Fire Department (LPFD) employees under the existing Joint Powers Agreement. Implemented health care plan design reform as described in the following section Health Care Plan Design Reform Retiree health care plan design reforms negotiated for two of three bargaining groups, and the unrepresented Management and Confidential group, are as described in the following section: Management Confidential o Employees hired after January 2009 will have a two tiered program limiting the benefit to the single rate lowest HMO medical plan which will terminate at age 65 when they are eligible for Medicare. In addition, employees hired after January 2009 will no longer receive the option to count prior municipal service credit toward their retiree health benefit. For employees retiring from service after January 1, 2009, the City shall pay for each year of service, four percent (4 of the City's monthly premium based on the lowest HMO medical plan (instead of Kaiser) for the employee and one dependent. Also, effective July 1, 2009 co -pays for office visits and prescription drugs were increased. Police Officers Association (POA) o Employees hired after January 2009 will have a two tiered vesting requirement limiting the benefit to the single party premium for new employees who retire with less than 20 years of Pleasanton service. Page 4 of 13