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6.4.A. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> August 22, 2011 <br /> SUBJECT <br /> Resolution and Ordinance to amend contract between the Board of Administration of <br /> CALPERS and the City of Redwood City <br /> RECOMMENDATION <br /> 1.Adopt resolution of intention to approve an amendment to contract between the Board <br /> of Administration of the California Public Employees' Retirement System (CaIPERS) <br /> and the City Council of Redwood City (ATTACHMENT 1). <br /> 2. Waive First Reading and Introduce an Ordinance authorizing an amendment to the <br /> contract between the Board of Administration of CaIPERS and the City Council of <br /> Redwood City (ATTACHMENT 2); and <br /> BACKGROUND <br /> As part of a multi-year approach to put the City on a sustainable financial foundation, <br /> the bargaining units entered agreements which will help reduce the City budget and <br /> minimize long-term pension costs. The new labor agreements recently approved by the <br /> City Council include provisions whereby the City will amend its contract with CaIPERS <br /> to provide a second tier retirement benefit for all new hires. The retirement formulas will <br /> be reduced as follows: <br /> • Miscellaneous - from 2.7% at 55, single-highest year <br /> to 2% at 60, 3-year final-average-pay; and <br /> • Safety — from 3% at 50, single-highest-year <br /> to 3% at 55, 3-year final-average-pay. <br /> In order to implement a contract amendment with CaIPERS, the City Council must <br /> adopt a resolution giving notice of its intention to approve an amendment to the <br /> contract, which resolution shall contain a summary of the changes proposed in the <br /> contract, and adopt an ordinance implementing the amended contract. Pursuant to <br />