REGULAR MEETING

1. CALL TO ORDER The meeting of the City Council was called to order by Mayor John Marchand at 7:05 pm, in the City Council Chambers, 3575 Pacific Avenue, Livermore, California.

1.01 ROLL CALL Present: Mayor John Marchand, Vice-Mayor Stewart Gary, and Councilmembers Doug Horner, Laureen Turner and Bob Woerner.

1.02 PLEDGE OF ALLEGIANCE

1.03 REPORT OF ACTION TAKEN IN CLOSED SESSION

City Attorney John Pomidor reported the City Council authorized compensation to the Citys sales tax consultant, HdL Companies, in the matter arising out of the Fillmore/Owens sales tax dispute, amounting to 15% of the first $1 million recovered, 10% on the next $1.5 million recovered and 5% on any recovery above that.

2. PROCLAMATIONS AND PRESENTATIONS

Mayor Marchand introduced Interim Police Chief Randy Sonnenberg.

2.01 PRESENTATION OF WATER AWARENESS MONTH POSTER CONTEST WINNERS

Mayor Marchand presented the awards to the contest winners.

2.02 PRESENTATION OF EXCELLENCE IN WATER RESEARCH AWARDS

Mayor Marchand presented the awards to the contest winners.

2.03 HISTORIC PRESERVATION COMMISSION ANNUAL UPDATE

Historic Preservation Commission Chairperson John Daley presented the annual update.

2.04 PROCLAMATION DECLARING MAY 10-19 AS WORKFORCE HOUSING WEEK

Mayor Marchand presented the proclamation to Executive Director Milly Seibel, Tri-Valley Housing Opportunity Center, declaring May 10-19, 2013 as Workforce Housing Week.

3. CITIZEN FORUM

Jaqueline Stamps, Livermore, spoke regarding the benefits of rowing and requested assistance from the City in the establishment of a recreational rowing program at Lake Del Valle. In response to questions by Mayor Marchand, City Manager Marc Roberts said Lake Del Valle was operated by the East Bay Regional Park District through a contract with the Department of Water Resources.

Adam Ruggles, Livermore, spoke regarding the lack of tenants rights related to rental prices and annual rent increases without any enhancements to the property.

Bill Aboumrad, Livermore, said the Little League World Series would be hosted July 28 August 5, 2013 at Max Baer Park in Livermore. He said this would be the first Little League World Series to be held in California.

Michael T. Martin, Livermore, said he was an umpire for the Little League World Series. He spoke of his involvement with Little League baseball and the positive impact hosting an international event would have on the Livermore community.

Monica Baucki, Livermore, said Little League provided real world values, sportsmanship, and an opportunity to build community with other families. She said the Little League World Series was a family friendly event that celebrated kids and their accomplishments, and requested the Citys assistance in hosting the event.

Steve Fields, Livermore, said the Little League World Series would be the most significant youth sporting event in the state of California. There would be positive economic impact to the Livermore business community by hosting the event.

Tom Bates, Livermore, spoke in support of the Little League World Series and the establishment of a recreational rowing program at Lake Del Valle. He requested the Councils support in contacting the East Bay Regional Park District to establish a rowing program.

Pat Nichols, Livermore, read a statement from Judy Nichols regarding the benefits of rowing and in support of establishing a rowing program at Lake Del Valle.

Don Meeker, Livermore, spoke regarding excerpts from the Citys incorporation papers regarding the history of the first town prison.

Marnie Steel, Livermore, Save Our Hill group, spoke in opposition to the potential Garaventa Hills development. She said the draft environmental impact report identified several significant impacts that had been mitigated. She expressed concerns specifically related to the San Joaquin kit fox.

Joel Skaliotis, Livermore, requested Council support and assistance, along with the East Bay Regional Park District, to establish a recreational rowing program at Lake Del Valle. He described many benefits from rowing and said a rowing center would offer instruction and training for juniors and adults.

Pat Ferguson, Livermore, expressed her concerns regarding One Bay Areas attempt to make Livermore one regional large city and regional agencies making decisions for the City.

Judy Galletti, Citizens Alliance for Property Rights, Livermore, expressed concern for local government losing power and spoke regarding the Plan Bay Area, MTC and ABAG meeting she attended. She said the public should be allowed to vote on this plan and the Council should embrace their power and tell them no.

John Stein, Livermore, said he hoped the Council would offer constructive input on the One Bay Area plan. He said the One Bay Area plan was not economically sustainable for small suburban communities and expressed his many concerns about the plan.

4. CONSENT CALENDAR

Item 4.05 John Stein, Livermore, said he hoped MidPen Housing Corporation realized the need for air conditioning and landscaping for the proposed units to meet the climate needs of the area. He said there should be sound walls since the location was adjacent to the railroad tracks.

Item 4.08 John Stein, Livermore, suggested renting the buildings to generate income as opposed to being demolished. He said the funds accrued from rent could be used to improve the parking in that area.He said the landscaping across the street owned by Barry Swenson Builders was in dire need of water as the plants and bushes were dead and the trees were dying.

In response to questions by Mayor Marchand, Community and Economic Development Director Stephan Kiefer said the buildings scheduled to be demolished were vacant and being vandalized.

KFC did not exercise a lease extension because the buildings needed too many repairs. He said repurposing the buildings for a short period of time would be at a substantial cost.

Mayor Marchand directed staff to contact Barry Swenson Builders regarding landscape maintenance on his property.

ON THE MOTION OF CM WOERNER, SECONDED BY VM GARY, AND CARRIED ON A 5-0 VOTE, THE CITY COUNCIL APPROVED THE CONSENT CALENDAR.

4.01 Approval of minutes - April 22, 2013 regular City Council meeting and April 29, 2013 special joint workshop with Livermore Area Recreation and Park District.

4.02 Resolution 2013-042 authorizing execution of an agreement with Maze & Associates, in an amount not to exceed $118,680, with an option to extend the contract for one additional fiscal year in an amount not to exceed $122,390, for auditing services.

4.03 Resolution 2013-043 adjusting the Airport Rates and Charges for Fiscal Year 2013-14 by the regional Consumer Price Index increase of 2.4 percent effective July 1, 2013.

4.04 Resolution 2013-044 authorizing execution of a two-year agreement with Express Employment Professionals, in an annual amount not to exceed $250,000, to provide temporary staffing services.

4.05 Resolution 2013-045 authorizing execution of an exclusive negotiating rights agreement with MidPen Housing Corporation, allowing the parties to enter into negotiations to develop the City-owned parcels located at 217 North N Street and 1625-1763 Chestnut Street as mixed-income, rental, and ownership residential projects; and appropriation of up to $50,000 in City Housing Trust Funds to MidPen Housing Corporation to be provided through the exclusive negotiation rights agreement for predevelopment costs necessary to evaluate the development site and assess project feasibility.

4.06 Resolution 2013-046 accepting for permanent maintenance and releasing of security for the 2012 Street Resurfacing, Project No. 2012-01.

4.07 Resolution 2013-047 accepting for permanent maintenance and releasing of security for the Sanitary Sewer Industrial Trunkline Rehabilitation, Project No. 1997-57.

4.08 Resolution 2013-048 appropriating funds in the amount of $133,000 for the demolition of buildings located at 2121 and 2139 Railroad Avenue (Kibler/Harris site) and 50 South L Street (KFC site).

4.09 Resolution 2013-049 appropriating $550,000 in unallocated Water Replacement Funds in Fiscal Year 2012-2013 to the Water System Corrosion Protection Project 2013-12; and authorizing execution of an agreement with Advanced Industrial Services, Inc., in the amount of $476,000, for construction of the Water System Corrosion Protection, Project No. 2013-12.

4.10 Resolution 2013-050 authorizing execution of an agreement with Cazadores Construction Inc., in the amount of $88,035, for implementation of the 2012-2013 Sidewalk Repair and Curb and Gutter Replacement Programs.

4.11 Resolution 2013-051 authorizing execution of a two-year agreement with Kier & Wright Civil Engineers & Surveyors, Inc., in an amount not to exceed $250,000, to provide on-call surveying, engineering, and drafting services.

5. PUBLIC HEARINGS None.

6. MATTERS FOR CONSIDERATION

6.01 Discussion and direction regarding City Council appointments to Intergovernmental Agencies. None.

6.02 HOUSING ELEMENT ANNUAL PROGRESS REPORT FOR 2012

Recommendation:

Staff recommended the City Council the City Council review the Housing Element Annual Progress Report for 2012.

Senior Planner Ingrid Rademaker presented the staff report.

Mayor Marchand invited public comment.

There were no speakers.

In response to questions by CM Horner, Community and Economic Development Director Stephan Kiefer said staff had been able to leverage the in-lieu fees collected and continue to build affordable units. City Manager Marc Roberts said in order to certify the Citys Housing Element, the State required the City to suspend the must build requirement until a complete review of the Affordable Housing Program had been completed. He said the program would be presented to Council later in the year and mandatory inclusion could be included as one of the options for consideration and approval.

THE CITY COUNCIL ACCEPTED THE REPORT.

6.03 SOLID WASTE AND RECYCLING RATE DISCUSSION

Recommendation:

Staff recommended the City Council provide direction.

Public Works Manager Judy Erlandson presented the staff report.

In response to questions by CM Turner, Ms. Erlandson said the decision for the timing on the income based discount and reductions to Rate Year 4 was at the discretion of the Council. She said increases to the smaller residential container sizes would take steps in the right direction for mandatory recycling and incorporating organics program. Public Works Director Dan McIntyre said over the entire program, $2 million of revenue would be accelerated in the first four years then $2 million would be credited against cost in the last three years so it would be revenue neutral. He said those costs and credits could be allocated amongst different users. City Manager Marc Roberts said 85% of ratepayers were using the smaller containers; the vast bulk of the revenue would return to those that had paid the fees. He said the Councils policy direction would be retained in the later part of the contract to deal with the distribution of the benefits.

CM Woerner said he was concerned with the proposed rate smoothing. He also said the simple indexing formula was not reflecting what the real cost was.

In response to questions by CM Woerner, Ms. Erlandson said the option for a 96 gallon container would be eliminated and removed from the contract in later years. Mr. McIntyre said Livermore Sanitation would not be able to indiscriminately increase cost as there were still obligations in the contract for justification. He said the income based discount would not apply to 96 gallon carts since that size was being eliminated. Mr. Roberts said there was the option to write into the contract the right for the City to request actual cost information from Livermore Sanitation at intervals in addition to Rate Year 7. He said the smoothing could be conditional upon the results of those reviews.

In response to questions by VM Gary, Mr. McIntyre said the gap between revenue and contractor payments was made up by Livermore Sanitation owners/ shareholders. He confirmed rate smoothing was fronting money now to be reconciled in Rate Year 8, and if smoothing were to be successfully negotiated and implemented prior to, the smoothing money would go to the contractor during the next four years. He said the contractor would then pay that money back as a credit to the ratepayers in the following three years; it would be money held by Livermore Sanitation. City Manager Marc Roberts said at the end of the contract, the contractor did not end up with one penny more than they would have without rate smoothing. He said rate smoothing was a negotiated item.

VM Gary said he would support the rate smoothing discussion with the contractor, the focus on the Rate Year 4 revenue increase on the smaller sizes, incentives on the organics, and recycling for the large containers. He opposed further increases to the small and medium sized businesses.

CM Woerner said he was most interested in the impact rate smoothing would have on the potential real costs. He said there needed to be a limit established on the real costs.

Mayor Marchand opened the public hearing.

Kent Kenney, Livermore Sanitation, said the issues faced by Livermore Sanitation over the past several years were unprecedented resulting from customer migration, number of customers, and levels of service.

He said five years ago there were 3,000 20-gallon containers and today the number had increased to 7,400. He said the increase in 20-gallon customers impacted them by losing $1.3 million in revenue. He said the trend in changing to the 20-gallon container was 100 containers per month resulting in a negative impact of $200,000 annually. He said Livermore Sanitation would be focusing on the 20 and 32 gallon containers. He said the workload was the same; the rate structure and relationships between the rates needed to be looked at to meet the Citys future 80% diversion goals.

In response to questions by CM Woerner, Mr. Kenney said Livermore Sanitation was committed to working with staff to focus on the real cost. He said the contract required Livermore Sanitation to give the City audited financial statements annually. There were no more speakers and the hearing was closed.

Mayor Marchand said he supported the rate smoothing. He said customers did not remember there had not been a rate increase for a three year period but they did remember the 15% increase at the end. He supported the baseline use costs too. He said his bill from 2007 was $44.58 and 2013 increased only $6 to $50.28 for a 20-gallon container.

CM Horner said he agreed with staff recommendations; particularly using the increased pricing on the smaller cans to build up a small war chest to ease the 15% bump in rates. He said he would like to see the prognosis as to the size of the increase.

In response to questions by VM Gary, Ms. Erlandson said staff would do community outreach to encourage residents to self-identify for qualification for and income based discounts.

ON THE MOTION OF VM GARY, SECONDED BY CM WOERNER AND CARRIED ON A 5-0 VOTE, THE CITY COUNCIL DIRECTED STAFF TO:

1. FOCUS THE REQUIRED RATE YEAR 4 REVENUE INCREASE OF 0.8% ON THE 20- AND 32-GALLON RESIDENTIAL CONTAINERS;

2. SMOOTH RATES THROUGH A CASH FLOW ADJUSTMENT WITH A FOCUS ON THE 20- AND 32-GALLON RESIDENTIAL CONTAINERS THROUGH NEGOTIATIONS WITH THE CONTRACTOR;

3. PROVIDE A 50% DISCOUNT ON ORGANICS AND RECYCLING SERVICES FOR LARGER COMMERCIAL CUSTOMERS; AND OFFSET THE REVENUE LOSS BY REDUCING THE DISCOUNT FOR MEDIUM-SIZE COMMERCIAL CUSTOMERS; AND

4. INSTITUTE AN INCOME-BASED DISCOUNT.

6.04 REGARDING CITY OF LIVERMORE PARTICIPATION IN THE ALAMEDA COUNTY WASTE MANAGEMENT AUTHORTITY (STOPWASTE.ORG) Joint Exercise of Powers Agreement (JEPA) for the Energy Council.

Recommendation:

Staff recommended the City Council provide direction.

Principal Planner Susan Frost presented the staff report.

CM Turner, the Citys representative on Stopwaste.org, said originally the membership supported the establishment of a JEPA to consolidate resources in the pursuit of energy grant funds; however, over the last 1½ years, there had been mission creep. She said there was also a discrepancy in the voting structure of the JEPA so that four member agencies could carry a vote. She said she did not support participation by the City in the JEPA.

CM Woerner said he did not like seeing organizations having mission creep nor did he like losing local control. He said he would support CM Turners and staff recommendation.

VM Gary said the Tri-Valley cities worked well together, and if needed in the future, the collective staffs could work together on one or more actions. He supported the recommendation to not approve the JEPA.

Mayor Marchand referred to the Tri-Valley City Council meetings and Federal legislative agenda as examples of successfully working together with the surrounding communities.

ON THE MOTION OF CM TURNER, SECONDED BY CM WOERNER AND CARRIED ON A 5-0 VOTE, THE CITY COUNCIL VOTED NOT TO PARTICIPATE IN THE STOPWASTE.ORG ENERGY COUNCIL.

6.05 Discussion and direction REGARDING PENDING STATE OR FEDERAL LEGISLATION

Assistant City Manager Troy Brown spoke regarding AB 210 that would provide framework to allow Alameda County and Contra Costa County to move forward with sales tax measures between the years 2014-2020. If approved, the bill would allow cities to exceed the established cap of 10% for specific infrastructure projects.He said the Alameda County Transportation Commission (ACTC) was currently drafting a regional letter asking all Alameda County cities to become signatures to that letter in support of AB 210.

In response to questions by Mayor Marchand, Mr. Brown said AB 210 would not violate the Federal policy on fair share allocation; policies related to transportation represented the cities fair share. He added that the Transportation Expenditure Plan not yet been developed for any future measures from ACTC.

Mayor Marchand spoke regarding AB 1235 that would require a local agency that provided any type of compensation, salary, stipend, or reimbursed a member of a local agency, to require those people receive training in financial management.

Mayor Marchand spoke regarding SB 268 that would repeal requirements of the Political Reform Act of 1974, and would require a candidate or committee who made or received a contribution of over $100 or more to report to specific filing officers within 24 hours of receiving the contribution.

7. COUNCIL COMMITTEE REPORTS AND MATTERS INITIATED BY CITY MANAGER, CITY ATTORNEY, STAFF AND COUNCILMEMBERS

7.01 Council Committee Reports and Matters Initiated by City Manager, City Attorney, Staff, and Councilmembers.

Tri-Valley Transportation Council (TVTC) CM Horner said he attended the meeting on April 25, 2013. He said the TVTC unanimously approved new rules for the Joint Powers Authority (JPA). He said a 6-1 majority vote was no longer needed to change the Strategic Energy Plan or to vote for a project. He said the new rules required ratification by all City Councils. He was appointed by Supervisor Scott Haggerty to the TVTC subcommittee to work on the Strategic Energy Plan.

League of California Cities (LOCC) CM Horner said on April 25, 2013 he attended the East Bay Division meeting of the LOCC.

Springtown Library CM Horner said on April 27, 2013 he attended the Open House at the Springtown Library for the new EZ Access program. He described the program and ease of use.

Livermore Area Recreation and Park District (LARPD) CM Horner said he attended the joint workshop between LARPD and the City Council on April 29, 2013.

Alameda County Mayors Conference CM Horner said he attended the meeting on May 9, 2013. He announced Mayor Marchand was appointed as President of the Mayors Conference.

Civic Appreciation Dinner CM Horner said he attended the event on May 9, 2013.

Livermore Amador Valley Transit Authority (LAVTA) CM Turner said on May 6, 2013 she attended the board meeting. She said there was a discussion pertaining to transportation efforts to support the Little League World Series event coming to Livermore this summer.

Doolan Canyon CM Turner said she attended the Doolan Canyon Tour on May 13, 2013.

Livermore Amador Valley Transit Authority (LAVTA) CM Woerner said he attended the meeting on May 6, 2013. He said there were continued discussions on employee compensation and benefits.

Livermore Area Recreation and Park District (LARPD) CM Woerner said on April 29, 2013 he attended the joint workshop. He looked forward to the entities working together more jointly in the future.

Civic Appreciation Dinner CM Woerner said he attended the event on May 9, 2013.

Livermore Area Recreation and Park District (LARPD) VM Gary said on April 29, 2013 he attended the joint workshop. There were several good discussions that would continue to build collaborative relationships between the two agencies.

Civic Appreciation Dinner VM Gary said he attended the event on May 9, 2013. He said the event was a great celebration of commitments by the volunteers to the Citys Advisory Bodies.

VM Gary requested and received consensus from the Council to receive an informational report regarding any regulatory mechanisms pertaining to rents.

VM Gary requested and received consensus from the Council for staff to arrange a meeting with staff and the organizers of the Little League World Series group to discuss the services available from the City for special events.

VM Gary requested and received consensus from the Council for staff to meet with Joel Skaliotis regarding the establishment of a rowing program for Lake Del Valle.

Alameda County Transportation Commission (ACTC) Mayor Marchand said on May 13, 2013 he attended the meeting. He said there were discussions on the I580 Express Lane and the ACTC Planning Policy on legislation.

Plan Bay Area Mayor Marchand said the Plan Bay Area draft document had been released with 70% of the funds going to Oakland. He said Livermore maintained local control and would receive minimal funding. He said LAVTA would receive $2 million.

Livermore Cultural Arts Council (LCAC) Mayor Marchand said on May 1, 2013 he attended the meeting; there would be displays from all member agencies at the Library

Local Agency Formation Commission (LAFCo) Mayor Marchand said on May 9, 2013 he attended the meeting and was appointed Vice Chair.

Doolan Canyon Mayor Marchand said on May 13, 2013 he attended the tour of Doolan Canyon with representatives from the East Bay Regional Parks District and the City of Dublin.

Civic Appreciation Dinner Mayor Marchand said he attended the event on May 9, 2013 honoring the Citys many volunteers.

Amgen Tour of California Mayor Marchand announced May 18, 2013 the Stage 7 of the Tour of California would be in Livermore.

8. ADJOURNMENT at 9:29 pm to a City Council Budget Workshop on May 20, 2013 at 7:00 pm, and a regular City Council meeting on Monday, June 10, 2013 at 7:00 pm, Council Chambers, 3575 Pacific Avenue, Livermore.

APPROVED: JOHN P. MARCHAND, MAYOR