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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />November 28, 2016 <br />SUBJECT <br />Resolution and Ordinance to amend contract between the Board of Administration of <br />the California Public Employees' Retirement System (CalPERS) and the City of <br />Redwood City <br /> <br />RECOMMENDATION <br />(1) Adopt a Resolution of Intention to approve 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; <br />(2) Introduce and waive the first reading of an ordinance authorizing an amendment to <br />the contract between the City Council of Redwood City and the Board of <br />Administration of the California Public Employees' Retirement System to provide <br />Section 20516(a) "Employee Sharing Cost of Additional Benefits: for Tier 1 and Tier <br />2 members of the International Association of Fire Fighters (I.A.F.F.) Local 2400 <br />bargaining unit, and Tier 1 and Tier 2 members of the Redwood City Police Officers' <br />Association (P.O.A.) bargaining unit; and <br />(3) Set the proposed ordinance for a second reading and adoption at the City Council <br />meeting of January 9, 2017 <br /> <br />BACKGROUND <br />Included in the 2014-2017 MOU between the City of Redwood City and the International <br />Association of Fire Fighters (IAFF) Local 2400, and the 2008-2015 MOU Redwood City <br />Police Officers Association (POA), and consistent with other employee groups, the <br />employee contributions to pension were increased in order to address rising retirement <br />costs. Incrementally over the course of their MOUs, the employee retirement benefit <br />contributions increased or will have increased from 9% to 16% of salary. <br /> <br />IAFF <br />As a part of the IAFF agreement, all IAFF members (Tier 3 “PEPRA” employees and <br />Tier 1 and 2 “Classic” employees) are required to contribute 4% toward the City’s <br />required contribution to CalPERS through Government Code Section 20516(f). This 4% <br />cost sharing arrangement was accomplished outside the City’s CalPERS contract. In <br />addition, the IAFF MOU requires the City to amend its contract with CalPERS to require <br />an additional cost sharing by Tier 1 and Tier 2 Classic employees to contribute an <br />6.4.A. - Page 1