May 22, 2017
CALL TO ORDER / PLEDGE OF ALLEGIANCE - The meeting of the City Council was called to order by Mayor John Marchand at 7:00 pm, in the City Council Chambers, 3575 Pacific Avenue, Livermore, California.
1.01 ROLL CALL - Present: Mayor John Marchand, Vice Mayor Steven Spedowfski, and Council Members Robert W. Carling and Bob Coomber. Council Member Bob Woerner was absent/excused.
1.02 PLEDGE OF ALLEGIANCE
1.03 REPORT OF ACTION TAKEN IN CLOSED SESSION
City Attorney Jason Alcala said there was no reportable action.
PROCLAMATIONS AND PRESENTATIONS
2.01 Proclamation declaring June 2017 as Safety Awareness Month.
Mayor Marchand presented the proclamation to Risk Manager Janet Hamilton.
2.02 Historic Preservation Commission annual update.
Historic Preservation Chair Jeff Kaskey presented the annual update.
2.03 Presentation of Historic Preservation plaques to property owners selected by the Historic Preservation Commission.
Mayor Marchand presented the plaques to Chris and Lyndsey Guenther and to Denise Lenz.
Jim Mansour, Pleasanton, spoke regarding the sewage collections fees being charged to Ruby Hills residents by Pleasanton and Livermore.
Bruce Shore, Livermore, spoke regarding the Key to the City program and the need for a new community meeting facility that would accommodate an Emergency Operations Center (EOC) in addition to providing adequate facilities for Council and other public meetings.
Item 4.04 CM Carling requested Item 4.04 be removed from the Consent Calendar for separate discussion and action.
ON THE MOTION OF VM SPEDOWFSKI, SECONDED BY CM COOMBER AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED ITEMS 4.01, 4.02 AND 4.03 ON THE CONSENT CALENDAR.
4.01 Approval of minutes - May 8, 2017 regular City Council meeting.
4.02 Resolution 2017-063 accepting for permanent maintenance and releasing of security for the 2016 Centralized Irrigation System, Project No. 1994-73.
4.03 Resolution 2017-064 Intention to Levy Annual Assessments for the Landscape Maintenance Districts for Fiscal Year 2017-18, approval of the Annual Engineer's Report, and establishing June 12, 2017 as the public hearing date for the Annual Levy of Assessments.
In response to questions by CM Carling, City Manager Marc Roberts and Water Resources Division Manager Helen Ling explained the purpose and reasons for repealing the Stage 1 voluntary water conservation measures.
ON THE MOTION OF CM COOMBER, SECONDED BY VM SPEDOWFSKI AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL APPROVED CONSENT CALENDAR ITEM 4.04 AND ADOPTED THE FOLLOWING RESOLUTION:
4.04 Resolution 2017-065 repealing Stage 1 Voluntary Water Conservation measures.
5.01 Hearing to determine if the rates requested by Livermore Sanitation, Inc. to be effective July 1, 2017 comply with the approved rate methodology.
Recommendation: Staff recommended the City Council adopt a resolution authorizing and updating Exhibit H of the Amended and Restated Agreement with Livermore Sanitation, Inc., to include rate year eight rate adjustments.
Public Works Manager Judy Erlandson presented the staff report.
Mayor Marchand opened the public hearing. There were no speakers and the hearing was closed.
ON THE MOTION OF CM CARLING, SECONDED BY CM COOBER AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED THE FOLLOWING RESOLUTION:
Resolution 2017-066 authorizing and updating Exhibit H of the Amended and Restated Agreement with Livermore Sanitation, Inc., to include rate year eight rate adjustments.
5.02 Hearing to receive protests and consider introduction of an ordinance amending Chapter 13.36 Sewer Service and Use Charges and introduction of an ordinance adjusting residential, commercial and institutional Sewer Service and Use Charges.
Recommendation: Staff recommended the City Council determine that a majority protest to increasing the sewer service charges does not exist; introduce an ordinance amending Chapter 13.36 Sewer Service and Use Charges, and introduce an ordinance adjusting residential, commercial and institutional Sewer Service and Use Charges; and direct staff to prepare a policy of annual sewer charge increases to offset depreciation and to maintain rate increases measured by the Consumer Price Index.
Public Works Director Darren Greenwood and consultant Habib Isaac, Raftelis, presented the staff report.
Mayor Marchand opened the public hearing.
Russ Greenlaw, Livermore, protested the proposed three-year adjustment to the sewer service charges.
Anthony Godrich, Livermore, protested the proposed three-year adjustment to the sewer service charges and against the Prop 218 process.
Ken Bradley, Livermore, protested the proposed three-year adjustment to the sewer service charges.
Francis Valente, Livermore, protested the proposed three-year adjustment to the sewer service charges. He said there were too many rate increases.
There were no more speakers and the hearing was closed.
CM Carling said there had not been an increase for a number of years and now there was a gigantic increase. He said the rate increase should be modified to something more reasonable.
VM Spedowfski spoke regarding the Prop 218 process and that it was supported by the Howard Jarvis group. He said he was disappointed there had not been annual increases to address the aging infrastructure. It was critical for the City to get back on track and there should be a policy of annual increases to keep up with the CPI. He said there should be annual check-ins if a three-year rate were approved.
Mayor Marchand said rate increases were not popular, but were necessary. He said sewer service was a critical piece of the City's infrastructure and the rate increase was not for profit. He said selling water to farmers in North Livermore would cost $85 million to construct the pipeline. He said if the charges had been increased by the CPI, today's cost would be significantly more than the proposed increase. He supported the increase.
CM Coomber said it seemed all rates were increasing. He said he did not like spending money on frivolities but this increase should have been taken in smaller increments over time. He said he wanted to have the infrastructure to handle what was delivered and did not want to experience failure of the sewer system. He said this was maintenance and repairs for a system that was old and failing. He supported the increase for the good of the community.
CM Carling said while he recognized the need, the increase of 30% was too hard to understand. He said this increase was too large.
City Manager Marc Roberts said per Government Code section 5471, adjustments to sewer service charges must be conducted via an ordinance approved by a two-thirds vote of the Council. Due to CM Woerner's absence, a unanimous vote of the Council in attendance was required to introduce the ordinance.
IT WAS MOVED BY VM SPEDOWFSKI AND SECONDED BY CM COOMBER TO INTRODUCE THE ORDINANCES. THE MOTION FAILED ON A 3-1 VOTE, CM CARLING VOTING NO.
The City Council discussed various options to the rate increase that were permissible under the terms of Prop 218.
VM Spedowfski suggested increasing the rate 7% for the first year only and then re-evaluate one year from now.
IT WAS MOVED BY CM CARLING AND SECONDED BY CM COOMBER TO DETERMINE THAT A MAJORITY PROTEST TO INCREASING THE SEWER SERVICE CHARGES DID NOT EXIST, TO DIRECT STAFF TO PURSUE A POLICY OF REGULAR, ANNUAL SEWER CHARGE INCREASES IN THE FUTURE WITH THE GOAL OF OFFSETTING DEPRECIATION AND ACHIEVING AND MAINTAINING RATE INCREASES COMPARABLE WITH INFLATION AS MEASURED BY THE CONSUMER PRICE INDEX, AND TO INTRODUCE THE FOLLOWING ORDINANCES TO INCLUDE THE AMENDMENT OF THE RATE INCREASE TO BE 7% EACH YEAR FOR THE NEXT THREE YEARS. THE MOTION CARRIED ON A 4-0 VOTE, AND THE CITY COUNCIL INTRODUCED THE FOLLOWING ORDINANCES:
An ordinance amending Livermore Municipal Code Chapter 13.36 Sewer Service and Use Charges to remove obsolete sections, to update the condominium customer class, and to update commercial and institutional charges, and
An ordinance adjusting residential, commercial, and institutional user charges - sewer services as amended.
MATTERS FOR CONSIDERATION
6.01 Discussion and direction regarding revisions to the Downtown Steering Committee meeting schedule and Rules of Procedure, and extending the Exclusive Negotiation Rights Agreement (ENRA)with Presidio Companies for a downtown hotel to November 28, 2017.
Recommendation: Staff recommended the City Council adopt resolutions approving the revised Downtown Steering Committee Rules of Procedure; and authorizing the extension of the Exclusive Negotiation Rights Agreement with Presidio Companies.
Planning Manager Steve Stewart presented the staff report.
Mayor Marchand invited public comment.
Rakesh Patel, Presidio, spoke regarding the continued interest by Presidio to develop a hotel on the Downtown site.
David Rounds, Livermore, said the ENRA should not be approved until after the May 25, 2017 Downtown Steering Committee meeting and be extended only a few months.
Maryanne Brent, Livermore, said the ENRA should not be extended. Presidio did not submit plans for a hotel on the west; they only submitted plans with the hotel on the east side with the hotel jammed up against the Bankhead Theater.
Jean King, Livermore, said the ENRA should only be extended until the completion of the Downtown Steering Committee on July 31, 2017.
Jeff Kaskey, Livermore, said the ENRA should only be extended until the conclusion of the Downtown Steering Committee meetings.
Mayor Marchand said Presidio was a partner that was committed to work with the community and the City, and he was not ready to let them go. He wanted to keep Presidio on-board because they were committed and he did not want to chance losing the hotelier. Presidio was committed to working to get what the community wanted and to be successful.
CM Carling agreed with Mayor Marchand's comments. He said it was Lennar's plan that had the hotel on the east side. He said Presidio should be given the opportunity to present to the Downtown Steering Committee and extending the ENRA would be a good faith effort on the City's part. He supported extending the ENRA to November 28, 2017.
CM Coomber agreed with Mayor Marchand's comments. He said he was looking forward to the outcome from the Downtown Steering Committee first; and he did not want to chance losing the City's hotel partner through this process. He supported extending the ENRA to November 28, 2017.
VM Spedowfski spoke regarding the purpose of the Downtown Steering Committee and estimated the public outreach would begin in September 2017 with a plan possibly being presented to Council late 2017. He supported extending the ENRA to November 28, 2017.
ON THE MOTION OF CM CARLING, SECONDED BY VM SPEDOWFSKI AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED THE FOLLOWING RESOLUTIONS AND AUTHORIZED THE EXTENSION OF THE EXCLUSIVE NEGOTIATION RIGHTS AGREEMENT WITH PRESIDIO COMPANIES TO NOVEMBER 28, 2017.
Resolution 2017-67 amending Resolution 2017-041 and
Resolution 2017-068 approving the Rules of Procedure for the Downtown Steering Committee.
6.02 Discussion and direction regarding remarketing and extension of Letter of Credit for the City's 2014 Variable Rate Demand Certificates of Participation. Series 2014A - Livermore Valley Performing Arts Center Refunding and Series 2014B - Livermore 2008 Certificates Refunding.
Recommendation: Staff recommended the City Council adopt a resolution authorizing the remarketing of the City's Variable Rate Demand Certificates of Participation, execution of related documents, directing certain actions, and approving supplement to Official Statements.
Accountant Erik Peterson presented the staff report.
In response to questions by the City Council, City Manager Marc Roberts explained the rate differentials between the daily and weekly rates and rate stabilization. He said the existing Series A bonds are $9.38 million of original principal that does not include any of the anticipated interest over the 27-year life of the debt. Mr. Roberts referred to the City's Host Community Impact Fee (HCIF) reserve policy that required staff to report annually the status of the fees and the balance. He explained the variances in the total repayment costs based on Securities Industry and Financial Markets Association (SIFMA) and estimated the total repayment in the amount of $14.8 million. He said the City was the owner of the Bankhead building. He said the City took out a loan (Certificates of Participation) to purchase the building, and was utilizing HCIF funds for repayment.
Mayor Marchand invited public comment.
Jean King, Livermore, (LVPAC) spoke regarding the buy-out of the loan for the Bankhead Theater and that no City General Funds had been used. She said a memo was being submitted to the City to formalize her remarks.
Mayor Marchand said the City was bearing the risk for the repayment of the loan.
ON THE MOTION OF CM CARLING, SECONDED BY CM COOMBER AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED THE FOLLOWING RESOLUTION:
Resolution 2017-069 approving, authorizing, and directing the remarketing of the City's Variable Rate Demand Certificates of Participation, Series 2014A (Livermore Valley Performing Arts Center Refunding)(Qualified 501(c)(3) certificates) and City of Livermore variable rate demand Certificates of Participation, Series 2014B (Livermore 2008 Certificates Refunding)(Governmental Certificates) in a daily interest rate mode, authorizing execution of certain documents, approving a supplement to Official Statement, and authorizing and directing certain action with respect thereto.
COUNCIL COMMITTEE REPORTS AND MATTERS INITIATED BY THE CITY MANAGER, CITY ATTORNEY, STAFF, AND COUNCIL MEMBERS
7.01 Council Committee Reports and Matters Initiated by City Manager, City Attorney, Staff, and Council Members. A verbal report may be given.
Livermore Amador Valley Transit Authority (LAVTA) CM Coomber said he had attended several meetings and the testing of new three-point fastening devices in buses.
Key to the City CM Carling said on May 16, 2017 he attended the 2017 Graduation and Reunion of the City's local government academies. He said Key to the City was a wonderful program and hoped it would continue into the future.
Civic Appreciation Dinner CM Carling said on May 18, 2017 he attended the annual dinner honoring the City's volunteers.
Pedrozzi Foundation CM Carling said on May 22, 2017 he attended the program and that the Foundation provided financial support to 112 high school students in the amount of $400,000.
Downtown Steering Committee (DSC) CM Carling, as Chair to the DSC, reported that PlaceWorks had launched the website yourlivermore.org to keep the community informed of the Downtown project. The last meeting of the DSC pertained to parking, traffic and pedestrian circulation. The next DSC meeting date is May 26, 2017 and invited the public to attend.
Livermore Amador Valley Transit Authority (LAVTA) VM Spedowfski said he attended the meetings where the new three-point versus four-point fastening devices in buses were tested and proved to provide more security.
Local Agency Formation Commission (LAFCO) Mayor Marchand said he attended the meeting on May 11, 2017. There were discussions on the Raymond tract and the annexations for Pleasanton.
Livermore-Pleasanton Fire Department (LPFD) Mayor Marchand said on May 12, 2017 he attended the Joint Powers Authority meeting. There were discussions on budget and operations.
Key to the City Mayor Marchand said on May 16, 2017 he attended the 2017 Graduation and Reunion of the City's local government academies. He spoke of the benefits of engaging the community with their local government.
Civic Appreciation Dinner Mayor Marchand said on May 18, 2017 he attended the annual event for the City's volunteers.
WAVE Mayor Marchand said on May 19, 2017 he attended the grand opening of the $43 million water park in Dublin.
Livermore High School Mayor Marchand said on May 20, 2017 he attended the celebration of the 125th anniversary of Livermore High School.
Letter from City of Pleasanton Mayor Marchand requested and received consensus from the Council for staff to provide background and information pertaining to the letter received on May 22, 2017 regarding the Ruby Hill Project Area and the 1993 Agreement for Wastewater and Disposal Services.
ADJOURNMENT - 10:02 pm to a regular City Council meeting on June 12, 2017 at 7:00 pm, Council Chambers, 3575 Pacific Avenue, Livermore.
JOHN P. MARCHAND, MAYOR
SUSAN NEER, CITY CLERK