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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />March 28, 2016 <br /> <br />SUBJECT <br />Second Reading of an Ordinance Authorizing an Amendment to the Contract Between <br />the Board of Administration of the California Public Employees’ Retirement System <br />(CalPERS) and the City Council of the City of Redwood City to Provide Section <br />20516(a) (2% Employee Cost Sharing) Applicable to Tier 1 (3% @ 50) and Tier 2 (3% <br />@ 55) International Association of Fire Fighters (IAFF) Local 2400 Members <br />RECOMMENDATION <br />Waive the second reading and adopt the ordinance to amend the CalPERS contract <br />providing for an additional 2% employee cost sharing payment to CalPERS for Tier 1 <br />and Tier 2 IAFF members in 2016 <br /> <br />BACKGROUND <br />At the regular City Council meeting on February 22, 2016, City Council approved <br />Resolution #15478, Resolution of Intention to Approve an Amendment to Contract <br />Between the Board of Administration of the California Public Employees’ Retirement <br />System and the City Council of the City of Redwood City. Staff has subsequently <br />completed the requisite steps in preparation for implementation of the Amendment, and <br />has submitted the required documentation to CalPERS. <br />ANALYSIS <br />This is the second reading of the Ordinance which was introduced at the regular City <br />Council meeting held on February 22, 2016. The proposed Ordinance would authorize <br />an amendment to the contract between CalPERS and the City of Redwood City. <br />This request amends the City’s contract with CalPERS in order to implement the City <br />Council’s February 9, 2015 adoption of the IAFF Memorandum of Understanding <br />(“MOU”). This agreement included a provision that all classic CalPERS member <br />employees (Tier 1 and Tier 2 plan members) will pay an additional 2% of the City’s <br />required contribution to CalPERS through Government Code Section 20516(a) in 2016. <br />The MOU also confirmed that all classic member employees will pay an additional 1% <br />effective in 2017. A separate resolution will be introduced later this year to implement <br />the one percent (1%) increase scheduled for January 2017. <br />With the adoption of this Ordinance by the City Council, the Amendment will become <br />effective May 2, 2016 (the first day of the payroll period following the effective date of <br />the Ordinance), and payroll will begin reporting the cost sharing to CalPERS. <br />8.B. - Page 1