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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 20, 2016 <br />TITLE: <br />RESTATEMENT AND AMENDED OF <br />AGREEMENT WITH PUBLIC AGENCY <br />RETIREMENT SERVICES TO PROVIDE A <br />TRUST PLAN FOR A LIMITED NUMBER <br />RETIRED POLICE OFFICERS <br />ASSOCIATION MEMBERS <br />{STRATEGIC PLAN NO. 7,4) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />p .. 20171 co <br />177 <br />As Recommended <br />E] <br />As Amended <br />D <br />Ordinance on 18' Reading <br />® <br />Ordinance on 2nd Reading <br />❑ <br />Implementing Resolution <br />El <br />Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to restate and amend the agreement with <br />Public Agency Retirement Services, establishing a trust to provide supplemental retirement <br />benefits to a limited number of former Police Officers Association members for an extended <br />period in an amount not to exceed $125,000 per year, subject to non -substantive changes <br />approved by the City Manager and City Attorney,. <br />DISCUSSION <br />On April 18, 2011, the City Council authorized the establishment of a trust establishing a <br />Supplementary Retirement Plan for 25 Police Officers Association (POA) retirees administered <br />through Public Agency Retirement Services (PARS). This trust was the result of negotiations <br />between the POA and City. POA, at the request of the City, agreed to extend the Memorandum <br />of Understanding (MOU and defer salary increases scheduled for July 1, 2009 and January 1, <br />2010. However, it was agreed that members of the POA who had anticipated retiring during the <br />Extension would receive the salary increases per the original schedule and, in exchange, would <br />participate in an unpaid furlough program equivalent to the monetary value of the increases they <br />received. In August 2010, the City and the POA reached tentative agreement on another contract <br />extension, which also deferred salary increases except to those employees with a stated <br />intention to retire during the term of the agreement, in exchange for participation in an unpaid <br />furlough program. <br />Before Council approved the second contract extension and 12 months after the first employee <br />retired under the 2010-11 extension, the California Public Employees Retirement System <br />(CalPERS) notified the City that this provision was not consistent with the principles concerning <br />the awarding of pensions to public employees. Therefore, the City and POA negotiated an <br />25H-1 <br />