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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 23, 2017 <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 <br /> <br />RECOMMENDATION <br />Waive the second reading and adopt the ordinance to amend the contract between the <br />City Council of the City of Redwood City and the Board of Administration of the <br />California Public Employees' Retirement System to provide Section 20516(a) Employee <br />Sharing Cost of Additional Benefits for Tier 1 and Tier 2 members of the International <br />Association of Fire Fighters (I.A.F.F.) Local 2400 bargaining unit, and Tier 1 and Tier 2 <br />members of the Redwood City Police Officers' Association (P.O.A.) bargaining unit <br /> <br />BACKGROUND <br />At the regular City Council meeting on November 28, 2016, City Council approved <br />Resolution #15539, 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 /> <br />ANALYSIS <br />This is the second reading of the Ordinance which was introduced at the regular City <br />Council meeting held on November 28, 2016. The proposed Ordinance would authorize <br />an amendment to the contract between CalPERS and the City of Redwood City. <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) have been required to contribute 4% toward the <br />City’s required contribution to CalPERS through Government Code Section 20516(f), <br />and an additional 2% through Government Code Section 20516(a) (6% total employee <br />cost share). The 4% cost sharing arrangement was accomplished outside the City’s <br />CalPERS contract, and the 2% arrangement was accomplished by Council approval on <br />March 28, 2016, of a CalPERS contract amendment. In addition, the IAFF MOU <br />requires the City to amend its contract with CalPERS once again to require an <br />additional 1% (3% total) toward the City’s required CalPERS contribution in 2017 <br />pursuant to Government Code Section 20516(a). <br />8.D. - Page 1