CalPERS 2 nd Pension Tier City of Sausalito City Council Meeting December 11, 2012

Process to Implementation Resolution of Intent to Approve an Amendment to CalPERS Contract – Tonight’s CC Action Introduction and 1rst Reading of an Ordinance Authorizing the Amendment of the CalPERS Contract – November 27, 2012 Adoption and 2 nd Reading of an Ordinance Authorizing the Amendment of the CalPERS Contract – December 11, 2012

Labor Agreements Implement New Pension Tier Pension Reform – Current employees start paying FAC1 (one year average compensation premium) portion of Employer Share (Employees already pay 100% of Employee share) – Future Police employees hired after July 1, 2012 in new Pension Tier – 50, three year average compensation – Future non-safety employees hired after July 1, 2012 in new Pension Tier – 55, three year average compensation OPEB (Other [than pensions] Post-Employment Benefits) Reform – Replace Defined Benefit (DB)-OPEB for current employees with 3 years or less service with Defined Contribution (DC)-OPEB – One-time offer to all employees with > 3 years services to opt out of DB-OPEB and replace with DC-OPEB – Eliminate all OPEB for all future employees hired after July 1, 2012 Health Care Reform – Eliminate health care benefits for City Council members – Cap Employers Share of Medical Health Care 90% of Kaiser Health Plan Wage Reform – Lower starting wages 10% by adding two lower steps to former five step salary range

Best Practices 2012 CALPELRA “Moving Forward” Award – Demonstrated commitment and leadership in the field of California public sector labor and employee relations. – Emphasis on a series of accomplishments within the last 12 months that provided a unique approaches to labor problems GFOA Awards for Excellence – The GFOA's Awards for Excellence in Government Finance recognize innovative programs – contributions to the practice of government finance that exemplify outstanding financial management. The awards stress practical, documented work that offers leadership to the profession and promotes improved public finance.

Pension Tiers Tier 2 (tonight’s CC action) Miscellaneous Employees – 55 – FAC 3 Police Safety Employees – 50 – FAC 3 Tier 1 (existing pension plan) Miscellaneous Employees – 55 – FAC 1 Police Safety Employees – 55 – FAC 1

Cost Comparisons

Pension Tiers Tier 2 (tonight’s CC action) Miscellaneous Employees – 55 – FAC 3 Police Safety Employees – 50 – FAC 3 Tier 1 (existing pension plan) Miscellaneous Employees – 55 – FAC 1 Police Safety Employees – 55 – FAC 1 Tier 3 PEPRA Miscellaneous Employees – 62 – FAC 3 Police Safety Employees – 57 – FAC 3 Tier 2 guarantees that employees with CalPERS reciprocity hired after January 1, 2013 will go into a lower cost pension tier. PEPRA will only honor Tier 2 contracts that have MOUS negotiated and CalPERS contract amendments effective 12/31/2013.

Recommended Motion Move to waive further reading, read by title only and adopt Ordinance No. 1211, “An Ordinance of the City Council of the City of Sausalito Authorizing an Amendment to the Contract between the City Council of the City of Sausalito and the Board of Administration of the California Public Employees’ Retirement System” Move to waive further reading, read by title only and adopt Ordinance No. 1211, “An Ordinance of the City Council of the City of Sausalito Authorizing an Amendment to the Contract between the City Council of the City of Sausalito and the Board of Administration of the California Public Employees’ Retirement System”