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MINUTES Page 9 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-Apri120, 2009 Human Resources Director Justinian Caire gave a short presentation, describing the two years additional service credit benefit, commonly referred to as the "Golden Handshake," and the legal process required to implement it. The benefit would be offered to 37 positions in 17 employee classifications, with eligible employees being 50 years of age or over with five or more years of City service. Mr. Caire responded to questions from the Council. Vice Mayor Stephens asked whether the estimate included a calculation of the employees who would normally retire. Mr. Caire replied that it did not. • Minute Order No. 2009-025, Motion Accepting Report Giving Public Notice of the Cost Estimate to Provide the Two Years' Additional Service Credit Benefit Provisions of the City of San Leandro's Contract with CaIPERS, Pursuant to Government Code Section 20903. (1092) The City Council accepted the report giving public notice of the cost estimate to provide the two years' additional service credit benefit provisions of the City of San Leandro's contract with Ca1PElZS, pursuant to Government Code Section 20903. M/S/C Prola and Starosciak. Ayes: 6; Noes: 0; Abstain: 1(Stephens) B. Report on Closed Session Actions Taken City Attorney Jayne Williams reported that the City Council met in closed session this evening to discuss the matter of the NORCAL v. City of San Leandro litigation. The Council authorized the City Attorney to enter into a settlement agreement that would resolve the litigation. The vote was 6-0, with Vice Mayor Stephens absent. The settlement would involve the property located at 1550 East 14~' Street, the former Albertson's grocery store building. The terms of the settlement, which would be memorialized in a purchase agreement, will be brought back to the City Council, at its May 4 meeting. The purchase agreement would facilitate the sale of the property to the City and the Redevelopment Agency for a total amount of $6,175,000. This would include the demolition of the building by the property owners. The City and Agency would then use the property for temporary replacement parking during the construction of a City garage. At the close of escrow, all of the pending litigation would be dismissed. Mr. Hollister added that after the property is no longer needed for parking, the City would seek to have the site developed pursuant to the Downtown Transit Oriented Development Strategy. Vice Mayor Stephens stated that, although he was unable to attend the closed session due to a work commitment, he supports the action that was taken by the Council.