PLEDGE OF ALLEGIANCE

PROCLAMATIONS AND PRESENTATIONS

CITIZENS FORUM

CONSENT CALENDAR

PUBLIC HEARINGS

MATTERS FOR CONSIDERATION

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

ADJOURNMENT

July 27, 2015

________________________________________________________________

REGULAR MEETING

1. CALL TO ORDER PLEDGE OF ALLEGIANCE - The meeting of the City Council was called to order by Mayor John Marchand at 7:04 pm, in the City Council Chambers, 3575 Pacific Avenue, Livermore, California.

1.01 ROLL CALL - Present: Mayor John Marchand and Council Members Stewart Gary, Steven Spedowfski, and Bob Woerner. Vice Mayor Turner was absent/excused.

1.02 PLEDGE OF ALLEGIANCE

2. PROCLAMATIONS AND PRESENTATIONS PROCLAMATIONS AND PRESENTATIONS/a>

2.01 Presentation of commemorative plaques by the Historic Preservation Commission.

Mayor Marchand presented the commemorative plaques.

3. CITIZENS FORUM CITIZENS FORUM

Anne Giancola, Livermore, spoke regarding the importance of supporting visual artists in the community.

Dan Songey, Livermore, spoke regarding the white traffic stakes downtown near the old theater and suggested implementing an alternative such as potted plants.

In response to questions by Mayor Marchand, Community and Economic Development Director Stephan Kiefer said the streetscape near the old theater would ultimately extend further west, although funding was not presently identified. He said by creating a bulb-out, the white stakes helped enhance traffic and pedestrian safety at the corners.

Don Meeker, Livermore, spoke regarding the history of bicycling in Livermore.

John Stein, Livermore, spoke in support of recent City Council actions on the Sunset Plaza item, the increase in his garbage bill, and bringing BART to Livermore including alternatives to high density housing and involving the community in the process.

Jed Bennett, Livermore, expressed concerns regarding excessive traffic speeds on Garaventa Ranch Road.

4. CONSENT CALENDAR CONSENT CALENDAR

Item 4.09 Sherry Nigg, Livermore Downtown Inc. (LDI), spoke regarding the past successes of LDI and expressed appreciation for the Citys support and partnership to enhance the vitality of the Downtown.

ON THE MOTION OF CM GARY, SECONDED BY CM WOERNER, AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL APPROVED THE CONSENT CALENDAR.

4.01 Resolution 2015-097 affirming actions from the July 13, 2015, City Council meeting denying the General Plan Amendment 13-005 and denying the Vesting Tentative Tract Map 8144 (Subdivision 13-005, Sunset Crossing).

4.02 Resolution 2015-098 appropriating $40,000 of Gas Tax Prop 111 funds to the 2015-2106 ADA Access Ramps Project in Fiscal Year 2015-2016; and authorizing execution of an agreement with Breneman, Inc., in the amount of $139,346, for construction of the 2015-2016 ADA Access Ramps, Project No. 2014-07.

4.03 Resolution 2015-099 appropriating $68,000 of Measure B Bike/Pedestrian funds in Fiscal Year 2014-2015 to Fiscal Year 2015-2016, for the Annual Crosswalk Safety Improvements Project; and authorizing execution of an agreement with Tim Paxins Pacific Excavation, Inc., in the amount of $66,300, for the Annual Crosswalk Safety Improvements, Project No. 2014-06.

4.04 Resolution 2015-100 appropriating $7,000 of Airport funds to the 2015 Slurry Seal Project in Fiscal Year 2015-2016; and authorizing execution of an agreement with American Asphalt Repair and Resurfacing Co, Inc., in the amount of $973,972, for construction of the 2015 Slurry Seal, Project No. 2015-04.

4.05 Resolution 2015-101 authorizing execution of a two-year agreement with JR Structural Engineering, Inc., in an amount not to exceed $250,000, for on-call project management services for capital improvement projects.

4.06 Resolution 2015-102 authorizing execution of a two-year agreement with Ruggeri-Jensen-Azar, in an amount not to exceed $600,000, for on-call engineering services.

4.07 Resolution 2015-103 authorizing execution of a right-of-way agreement with Zayo Group LLC, for the installation and maintenance of broadband data communication infrastructure within the City's public right-of-way.

4.08 Resolution 2015-104 authorizing execution of an agreement with Carollo Engineers, in the amount not to exceed $207,326, in connection with the Water Reclamation Plant Rehabilitation and Process Improvements -Phase 1, Project No. 2012-13.

4.09 Resolution 2015-105 authorizing execution of an agreement with Livermore Downtown Inc., in the amount of $100,000, for downtown economic development services and related operating expenses for Fiscal Year 2015-2016.

4.10 Resolution 2015-106 authorizing the destruction of certain City records no longer needed or required for City business.

5. PUBLIC HEARINGS PUBLIC HEARINGS

5.01 Hearing to receive protests related to the annual fire hazard abatement program and confirm the 2015 fire hazard abatement assessments on the County tax roll.

Recommendation: Staff recommended the City Council consider adoption of a resolution overruling protests and confirming the placement of the assessments on the County tax roll.

Fire Marshal Ryan Rucker presented the staff report.

Mayor Marchand opened the public hearing.

There were no speakers and the hearing was closed.

In response to questions by Mayor Marchand, Fire Marshal Rucker confirmed that the total number of parcels requiring abatement had dropped from twelve in the previous year to only five this year.

ON THE MOTION OF CM GARY, SECONDED BY CM WOERNER AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED THE FOLLOWING RESOLUTION:

Resolution 2015-107 overruling protest and confirming assessments - fire hazard abatement.

5.02 Hearing to consider approval of a vesting tentative tract map to subdivide an approximately 4.9-acre site for development of 49 two-story, single-family residential units, and adoption of a Planned Development-Residential zoning district to establish standards necessary to enable the development. The project proposal includes a General Plan Amendment to change the land use designation from Neighborhood Mixed Use Medium Density, which requires both a commercial and residential component, to the residential-only Urban High 2 designation with a density range of 8 to 14 dwelling units per acre. The project will include demolition of one existing on-site residence (previously determined as not historically significant by Certificate of Appropriateness 07-017). The project includes a Development Agreement incorporating various off-site improvements. To facilitate the project, the City would vacate portions (on an as needed basis) of East Avenue and South Vasco Road right-of-way no longer needed for roadway purposes.

Location: The southwest corner of East Avenue and South Vasco Road
Applicant: Ponderosa Homes II, Inc.
On-site and off-site public improvements: Utilities including but not limited to sewer, water, storm drainage, landscaping, lighting, streets, sidewalk, curb, and gutter; modifying public street medians in East Avenue and South Vasco Road; completing widening improvements on East Avenue west of the project site to Research Drive, including related transit improvements; extending approximately 80 feet of public sidewalk southward from the project along South Vasco Road to the northwest corner of Graham Court; street frontage landscaping on East Avenue and South Vasco Road; and work to complete an approximately 1,300-foot trail segment on the east side of South Vasco Road from East Avenue southward to the existing trail terminus.
Site Area: 4.9 acres
Zoning: Planned Development (PD)
General Plan: Transferable Development Credit (TDC) Receiver Site (R) - Neighborhood Mixed-Use Medium (NMM) Density (Commercial: maximum floor area ratio 0.30; Residential: [without TDC] 3.0-4.5 dwellings/acre or [with TDC] 15 24 dwellings/acre)
Historic Status: None. One on-site home was previously determined as not historically significant by Certificate of Appropriateness 07-017
CEQA: A Mitigated Negative Declaration under the provisions of the California Environmental Quality Act (CEQA) will be considered.
Application Numbers: General Plan Amendment (GPA) 14-002; Vesting Tentative Tract Map (VTTM) 8195 (SUB14-011); Planned Development - Residential (PD-R) 14-005; Site Plan Design Review (SPDR) 14-022; and Development Agreement (DA) 15-001

Recommendation: The Planning Commission and staff recommended the City Council:

a) Adopt a resolution adopting and certifying the Mitigated Negative Declaration;

b) Adopt a resolution approving General Plan Amendment 14-002, as proposed;

c) Introduce an ordinance establishing development standards for Planned Development-Residential District 14-005 and amending the Zoning District Map, and approving a development agreement between the City, Righetti Partners, Limited Partnership, and Ponderosa Homes II, Incorporated; and

d) Adopt a resolution approving Vesting Tentative Tract Map 8195 (Subdivision 14-011) and Site Plan Design Review 14-022, and the summary vacation of portions of the public right-of-way on East Avenue and South Vasco Road adjacent to the project.

Associate Planner Frank Guido presented the staff report.

In response to questions by Mayor Marchand, Mr. Guido confirmed that the projects plum trees would be fruitless and clarified the cornice materials were typically wood. He said staff would work with the applicant and the landscape architect to see if it were possible to transplant the historic rose bush that was on site.

In response to questions by CM Spedowfski, Mr. Guido identified the placement and number of guest parking spaces in the project. He said the no-parking areas were marked with signage, not red curbs, and said the private access ways would be maintained by a home owners association. He confirmed there would be striping and signal changes at the East Avenue turn onto Vasco Road.

Jeff Schroeder, Applicant, Ponderosa Homes, presented an overview of the project. He said traffic had been analyzed to address the neighborhood concerns, and said further analysis had determined that retail was not viable on the site.

Mayor Marchand opened the public hearing.

John Stein, Livermore, said he was generally supportive of the project. He spoke regarding sound and odor impacts of nearby industrial uses and said the historical rose bush should be preserved.

Kaira, Livermore, presented a petition signed by neighbors in the nearby Birchwood Commons neighborhood expressing concerns regarding population growth and traffic impacts from the Ponderosa project and others, particularly during commute hours. She asked for a temporary moratorium on housing development.

Marie Andreini, Livermore, said she could not imagine forty-nine homes on the project location. She expressed concerns regarding parking and traffic, and compared the project density to buildings in Dublin.

Dan Songey, Livermore, expressed concerns regarding the density of the Ponderosa project and other developments coming into the area.

There were no more speakers and the hearing was closed.

In response to questions by CM Gary, City Engineer Cheri Sheets stated the General Plan provided for future buildout of the community including the North Vasco major arterial. She said both the Traffic Improvement Plan and the General Plan identified improvements along the corridor to accommodate full buildout; she said the project included enhancements of the I-580 interchange and widening along the route.

In response to questions by CM Gary, Community and Economic Development Director Stephan Kiefer said the last General Plan update was in 2003; the property was designated as mixed-use/residential and allowed higher density than what was proposed. He said the applicant had asked for lower density and removal of the commercial portions. City Manager Marc Roberts said the prior plan of 1976 had designated high-intensity commercial development on that corner. He said the intensity of the use on the site had been dropped and would be very similar to development in the area.

In response to questions by CM Gary, Mr. Roberts said the General Plan in 2003 estimated a buildout of nearly 110,000 people; Livermore was presently around 87,000.

In response to questions by Mayor Marchand, Mr. Roberts said the density of the Birchwood Commons neighborhood was about ten units to the acre; the Ponderosa project was slightly less dense.

In response to questions by Mayor Marchand, Mr. Kiefer said the general density of the four- and five-story units in Dublin was typically over 100 units to the acre; in comparison, the Ponderosa project was ten units to the acre. In response to questions by CM Spedowfski, Mr. Kiefer spoke regarding retail and grocery space in the vicinity of the project, saying he expected at some point a grocery store would move into the old PW Market site. Mr. Roberts said the grocery format was a difficult market and more small grocery stores might move in as provided by zoning.

In response to questions by CM Woerner, Mr. Kiefer said different cities used different zoning designation terminology; the project was essentially a small lot, single-family detached neighborhood and was similar to the neighborhood across the street.

In response to questions by CM Woerner, Mr. Guido said the Planning Commission had reviewed the sound walls and determined that six-foot sound walls would meet the General Plan standards due to the intermittency of the noise; further, the applicant had requested that the back walls not be too tall.

In response to questions by CM Woerner, Ms. Sheets said traffic modeling had been performed during the General Plan update; based upon that modeling, staff could identify traffic patterns and establish levels of service. She said necessary upgrades were identified and programmed through the Capital Improvement Program in two-year, five-year, and twenty-year projections; additionally, the Traffic Impact Program was updated roughly every five years, which included review of the improvements. She said traffic studies considered the impact of regional traffic and implemented gateway policies to limit the bypass traffic capacity.

Mr. Roberts said traffic was impacted by how well the regional system worked; the answer was not building more local capacity, but to build appropriate systems both on and off the freeway.

Mayor Marchand expressed concerns regarding noise impacts in lots No.1 and No. 13, saying noise mitigation would be easier to do before the homes were built.

In response to questions by Mayor Marchand, Mr. Guido said the homes would use STC-31 in the windows to address traffic and industrial noise; he said the scale was logarithmic and a small increase might be sufficient. Mr. Kiefer said staff would work with the applicant to improve the windows on those lots.

In response to questions by Mayor Marchand, Mr. Guido said the lot frontage by the alley was smaller than typical lots; people placing their garbage bins would have less distance to travel.

Mayor Marchand requested that the rose bush relocation be incorporated into the plan.

CM Gary expressed support of the staff recommendation, saying the City was approaching a unique growth cycle where the General Plan, developed in 2003 with community collaboration and input, had traded infill development for not developing the north valley and creating sprawl.

Mayor Marchand said the Urban Growth Boundary had been established in 2002; the 110,000 population figure was based upon the assumption that BART would come to Livermore. He said if BART did not come to Livermore, the number would be closer to 95,000.

ON THE MOTION OF CM GARY, SECONDED BY CM SPEDOWFSKI AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED THE FOLLOWING RESOLUTIONS AND INTRODUCED THE FOLLOWING ORDINANCE:

Resolution 2015-108 adopting a Mitigated Negative Declaration and certifying the environmental document. General Plan Amendment (GPA) 14-002; Vesting Tentative Tract Map (VTTM) 8195 (SUB14-011); Site Plan Design Review (SPDR) 14-022; and Development Agreement (DA) 15-001.

Resolution 2015-109 approving General Plan Amendment 14-002.

Ordinance introduced establishing development standards for Planned Development - Residential (PD-R) District 14-005 and amending the Zoning District Map of the City of Livermore and approving a development agreement between the City and property owners, Righetti Partners, Limited Partnership, and Ponderosa Homes II, Incorporated. (Planned Development - Residential (PD-R) 14-005 and Development Agreement 14-002).

Resolution 2015-110 approving Vesting Tentative Tract Map (VTTM) 8195 (SUB14-011); Site Plan Design Review (SPDR) 14-022; and the summary vacation of portions of the public right-of-way on East Avenue and South Vasco Road adjacent to the project.

6. MATTERS FOR CONSIDERATION MATTERS FOR CONSIDERATION

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

6.02 Resolution adopting the Host Community Impact Fees Reserve policy.

Recommendation: Staff recommended the City Council adopt the resolution.

Administrative Services Director Douglas Alessio presented the staff report.

In response to questions by CM Gary, City Manager Marc Roberts said base case assumed that San Francisco would eventually leave the landfill. He said some of the scenarios included keeping San Francisco indefinitely, but staff did not believe that was likely.

In response to questions by CM Woerner, Mr. Roberts said the time to be most careful was the present when the outstanding balance was large; as the balance dropped, the variability of the interest rates on that portion became more manageable, while the maintenance portion would become less manageable with time. He confirmed there should be no expectation that there would be any excess money.

Mayor Marchand invited public comment.

John Stein, Livermore, spoke in support of conservatively protecting the general fund, and spoke regarding the Citys unfunded liabilities such as health care, pensions, and deferred maintenance. He asked what the interest earnings on the fund would be, stating that any interest earned should go back into the fund.

Scott Kenison, Executive Director, Livermore Valley Performing Arts Center, spoke regarding a visitors center at the Bankhead Theater and asked if the City Council could locate funds to assist.

Jean King, Chair, Livermore Valley Performing Arts Center (LVPAC), spoke regarding benefits of a visitors center and a newly configured theater lobby. She suggested doing the catch-up over twelve, eighteen, or forty-two years to make more funds available for Bankhead improvements, and requested $40,000 from HCIF or other sources to make the configuration changes to the lobby for a visitors center.

In response to questions by Mayor Marchand, Mr. Alessio said the multi-party settlement agreement required that any HCIF agreement have the treasury earn interest at the Local Agency Investment Fund rate which was a fraction of a percent.

Mayor Marchand noted that other cities providing funding for theaters and the arts had control over their parks; however, in Livermore, there was a separate park district managing the recreation.

CM Gary spoke in support of the policy, saying protecting the general fund was conservative and responsible.

ON THE MOTION OF CM GARY, SECONDED BY CM WOERNER AND CARRIED ON A 4-0 VOTE, THE CITY COUNCIL ADOPTED THE FOLLOWING RESOLUTION:

Resolution 2015-111 approving a Host Community Impact Fee (HCIF) Reserve Policy.

Mayor Marchand declared a five minute recess.

All Council Members were in attendance when the meeting reconvened.

6.03 Discussion and direction regarding the Requests for Proposals for the marketing, sale, and development of Downtown Specific Plan catalyst sites.

Recommendation: Staff recommended the City Council provide direction.

Principal Planner Steve Stewart presented the staff report.

David Orozco, Consultant, DTZ, spoke regarding the project.

There was discussion regarding the marketing, timeline, and content of the Request for Proposal (RFP). CM Gary requested the RFP include information regarding facilitation of including ancillary parcels in the plan if they so desired, and said to emphasize that there was flexibility within the broad framework to consider other options.

In response to questions by CM Spedowfski, Mr. Stewart said the RFP timeline was an estimate provided by the brokers and was based on standard market response times. Planning Manager Paul Spence stated that RFPs were generally issued without a specific end date and more time could be added if necessary.

In response to question by CM Spedowfski, Community and Economic Development Director Stephan Kiefer said several attachments and a video would accompany the RFP to highlight the Downtown and market the entire City and surrounding area, along with typical demographic information.

City Manager Marc Roberts spoke regarding the balance between catching peoples attention and providing enough data to help them effectively and efficiently determine if they would like to participate. He said the consultant had an international reach and Livermores reputation with the development community would be a benefit.

CM Woerner said the proposal contained many of the elements, but was not quite there. He suggested improving the enticement, painting the picture more broadly with additional focus on the hotel, including more information on the mixed use of retail and residential, and showcasing the hotel as a unique and exciting opportunity. He said the five-page summary needed to pop.

Mr. Kiefer said when RFPs were presented to developers the project was typically either forwarded to an estimator or to the firms principals. He said staffs objective in creating the narrative and supporting documents was for the project to go to the principals.

Mayor Marchand said the proposal needed to be more exciting, such as referring to development of an iconic hotel in a remarkable community. He said the proposal was by no means finished; rather, there would be public workshops and the proposal was intended for developers to provide their best ideas.

In response to questions by Mayor Marchand, Mr. Spence said there were close to four hundred parking spaces at the site if the unstriped old Lucky site was included. He confirmed that the parking structure would replace the eliminated parking and add about one hundred spaces.

CM Gary said much of the content was already present in the RFP but the flow needed to be adjusted. He said the videos were very good, but were too long.

Mayor Marchand invited public comment.

Pushpa Krishnan, President, Cantabella Childrens Chorus, said the proposed multipurpose Council Chambers facility should be located downtown rather than near City Hall and said the venue would be good for a choral festival.

Scott Kenison, Executive Director, Livermore Valley Performing Arts Center, said the report needed to consider future needs and spoke regarding the impacts of Livermores tourism businesses and including information from neighboring cities, the outlets, the laboratories, and local arts organizations.

Jean King, Livermore, spoke in support of an upscale full-service destination hotel conference center as large as the San Ramon Marriott with conference rooms and over three hundred hotel rooms, and said tourism needed to be more completely evaluated in the RFP.

Jim McGrail, McGrail Wineries, Livermore, said building condos or townhomes would be a waste and the property should be used to enhance the Downtown. He said the study needed to address tourism and a large hotel with a conference center rather than residential.

Bill Zagotta, Livermore, said the project could be the Citys jewel in the crown and said the RFP needed to be revised to attract the best for the Downtown.

Sherry Nigg, Livermore Downtown Inc., spoke in support of allowing developers to submit projects based upon feasibility and economic viability.

Heather McGrail-Lorier, President, McGrail Vineyards and Winery, said the RFP needed to address tourism and said she agreed with Mr. Kenisons comments.

Paul Thompson, Livermore, spoke regarding his concerns for the site including the need for a hotel/convention center, adequate parking, space for cultural events, retail and commerce, and said there was no place for residential in the Downtown area.

Mary Anne Rozsa, Livermore, spoke in support of a hotel and said as a realtor, her customers wanted a hotel/conference center in the Downtown.

Barbara Steinfeld, President, Visit Tri-Valley, provided information regarding hotel occupancy rates in the Tri-Valley and spoke in support of emphasizing tourism in the RFP and building a hotel and conference room.

Paul Brown, Livermore, read excerpts from an email from Dick Brown and said the RFP needed to emphasize retail. He expressed concerns regarding the size of the hotel and conference center and said the City was moving too fast on the process.

Todd Dibs, Visit Tri-Valley, spoke in support of a destination hotel with meeting space for 1,000 people. He spoke regarding his efforts to bring in regional events and said bigger hotels were needed in Livermore.

John Fletcher, Livermore, expressed concerns regarding the RFP process and said the City needed to slow down, raise their standards, and if necessary get new consultants. He said the priorities should be putting the hotel/conference center first, parking, commercial, and then residential.

John Shirley, Livermore, spoke in support of a first-class hotel with conference space and parking; he said there was not much room for residential in the Downtown.

Don Meeker, Livermore, suggested supporting local artists by incorporating local art on the interior walls of the proposed facility.

Maryann Brent, Livermore, spoke in support of a large hotel and conference center. She said Livermore could be an outstanding tourism destination and spoke regarding the economic impacts of overnight stays at hotels.

Karen Long, Livermore Downtown Inc., spoke regarding prioritizing parking and attracting and retaining the hospitality workforce.

Crystal Burke, Livermore Downtown Inc., spoke regarding the development of the Downtown as a creator of jobs for the hospitality workforce. She spoke in support of a hotel and conference center.

Nick Liang, Livermore, spoke in support of a high-end, high-quality project to make Livermore a more complete and remarkable destination.

Carol Eicher, Livermore, spoke on behalf of former Livermore Mayor Milo Nordyke, saying future plans should include the new Council Chambers located Downtown and made available for other uses such as an art gallery or small theater for choral groups.

Jeff Kaskey, Livermore, spoke regarding marketing Livermores revitalized Downtown and wine industry in the RFP. He suggested driving Livermores prosperity through other means than by population growth and said tourism data needed to be included in the study.

David Best, Shea Homes, said as a residential developer, he supported a hotel downtown. He said the RFP did a good job of allowing the development community to be creative and would allow them to convey what would be feasible. He said marketing of Livermore would be very important.

Linda Milanese, Shakespeares Associates, spoke in support of a good-sized hotel and a conference center with a multiuse space that could accommodate 120-150 seat theater productions. She expressed opposition to condos at the location and said diversity Downtown would be important.

Dale Kaye, Chief Executive Officer, Innovation Tri-Valley, read a letter on behalf of John Sensiba, Chairperson, Innovation Tri-Valley Board of Directors, saying all possibilities should be considered within the constraint of market demand, including high-quality hotel accommodations and potentially a multipurpose conference center.

Patricia Munro, Shakespeares Associates, expressed support for a conference center with seats for 150-250 that would continue developing the arts, businesses, and vineyards; and said she would not want to see more residential in the Downtown. She said such a facility could be built with retractable seats and be used as a banquet hall or Council Chambers.

Jean Shuler, Livermore, read a letter on behalf of William Goldstein, Director, Lawrence Livermore National Laboratory, supporting exploration of a quality hotel and conference center that could accommodate 200-500 guests in the Downtown.

David Jonas, Livermore, expressed concerns that the City Councils position was prematurely skewed toward building condos and a small hotel. He spoke in support of a conference center and said the only feasible location would be Downtown.

Chris Chandler, Livermore Valley Winegrowers Association, spoke in support of a full-service hotel with marketing and tourism adjustments in the RFP. She expressed support for residential development in the area in conjunction with the hotel without reducing the hotels footprint.

Denise Leddon, President, Livermore-Amador Symphony, expressed support for a new multifunctional Council Chambers located downtown with 150 seat capacity. She said such a venue would allow the Symphony to offer specialty projects.

William Dunlop, Livermore, spoke in support of a hotel and conference center and suggested including information in the RFP regarding alternatives to hotel demand being driven by population growth.

CM Woerner said defining an appropriate mix of retail and residential in the RFP was important to make the location a destination.

In response to questions by CM Spedowfski, Community and Economic Development Director Stephan Kiefer said the hotel study was one of the documents developed to develop a sense of the hotel market and would not be part of the RFP. City Manager Marc Roberts said the report was a conservative document identifying areas of growth and informing how the RFP was crafted.

CM Gary said the proposal needed to be economically balanced and profitable for private development. He expressed opposition towards placing a Council Chambers and conference space Downtown, saying the site had a loan obligation of $14 million that had to be repaid to the housing trust fund. He said the Council understood the economics but had to pay municipal bills, maintain quality of life, and provide services. He expressed agreement with comments regarding tourism and future growth statistics and said to pump up the tourism, winery, and shopping center aspects while allowing the private sector to respond. He suggested that local arts groups might consider elementary schools with big parking lots as a better, cheaper option for small performances. He said the Council had not made up their minds; rather, the RFP was an opportunity for the private sector to show what they could do and if the proposals did not meet the quality of life and economic tests, they would say no.

Mayor Marchand said seven million people visited Livermore each year and the marketing of tourism, wineries, and the outlets needed to be enhanced in the RFP. He spoke regarding the residential portion in the Downtown and said the RFP was based upon the projected market demand. He said the RFP needed to go out and convey to developers the remarkable location and tremendous opportunity before them.

Mr. Roberts said staff would work to enhance the sizzle and visioning of the RFP; ensure developers knew both locations were available; provide the latest statistics available; proceed with the RFP now utilizing responses and rated responses to determine the appropriate cutoff time; and bring the best of the proposals back to the City Council to begin the public discussion process.

CM Woerner suggested rephrasing the focus away from residential and leading with the hotel first, followed by the retail, parking, and residential last.

CM Gary spoke regarding letting the developers know that the City Council was listening and willing to work with their needs such as a specific plan amendment or interest in an adjoining property.

In response to questions by Mayor Marchand, Mr. Roberts confirmed that the item would come back for additional opportunities to provide input.

THE CITY COUNCIL DIRECTED STAFF TO PROCEED WITH THE RFP AND TO INCLUDE THE FOLLOWING MODIFICATIONS: ENHANCEMENTS TO THE MARKETING AND VISIONING, INCORPORATING CURRENT STATISTICS, EMPHASIZING THE HOTEL OVER THE RESIDENTIAL COMPONENTS, AND EMPHASIZING THE SITES FLEXIBILITY TO MEET THE NEEDS OF DEVELOPERS.

The Council voted unanimously to continue the meeting after 11:00 pm to address the remaining items on the agenda.

6.04 Discussion and direction regarding execution of a Disposition, Development and Loan Agreement with MidPen Housing Corporation to initiate the development of the Chestnut Housing Site at 1635 Chestnut Street (217 North N and 1635-1763 Chestnut Street).

Recommendation: Staff recommended the City Council adopt a resolution authorizing execution of a Disposition, Development and Loan Agreement (DDLA) with MidPen Housing Corporation to initiate the development of the Chestnut Housing Site at 1635 Chestnut Street (217 North N and 1635-1763 Chestnut Street); appropriation of $525,000 in City Housing Trust Funds to MidPen Housing Corporation to be provided for the Predevelopment Loan described in the DDLA; and authorizing execution of purchase and sale agreement between MidPen Housing Corporation and Warmington Homes for the market rate portion of the Chestnut Housing Site.

Senior Management Analyst Frances Reisner presented the staff report.

Jan Lindenthal, Vice President of Real Estate Development, MidPen Housing, presented an overview of the project.

In response to questions by CM Woerner, Ms. Lindenthal confirmed that the photographs in her presentation were actual depictions of MidPens facilities.

In response to questions by CM Gary, Ms. Reisner said the housing trust fund contain roughly $6 million in unappropriated cash. She said a portion of funding would come in at the sale of the market-rate site, paying for a significant portion of the first phase to be completed over the next few years. She said the City had other housing agreements for projects with the anticipation that additional funds would come in.

Mayor Marchand spoke in support of workforce housing saying it was a component of quality of life for the community. He said the average salary in the Bay Area did not cover the cost of rent and he welcomed this type of collaborative project to improve a blighted site.

Mayor Marchand invited public comment. There were no speakers.

ON THE MOTION BY CM WOERNER, SECONDED BY CM SPEDOWFSKI AND CARRIED ON A 4-0 VOTE, THE CITY COUNICL ADOPTED THE FOLLOWING RESOLUTION:

Resolution 2015-112 authorizing an appropriation of up to $525,000 in Affordable Housing Trust Funds (F611) to MidPen Housing for a predevelopment loan; authorizing the execution of a disposition, development, and loan agreement for the Chestnut Housing Site; and authorizing the City Manager to approve a purchase and sale agreement between MidPen Housing Corporation and Warmington Homes.

6.05 Discussion and direction regarding pending State or Federal legislation. None.

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

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 Council Members.

Wheels Comprehensive Analysis Workshop CM Spedowfski said on July 15, 2015, he attended the meeting where goals and objectives for the comprehensive analysis were discussed. He said there would be a public meeting on Tuesday, July 28, 2015, at the Robert Livermore Community Center to receive comments on the transit system.

Tri-Valley Transportation Commission (TVTC) CM Spedowfski said on July 20, 2015, he attended the meeting.

CM Gary had no report.

Water Policy Roundtable CM Woerner said on July 22, 2015, he attended the meeting which focused on developing a more robust and diverse supply of water.

White Traffic Stakes Downtown In response to comments made during Citizens Forum regarding alternatives to the white traffic stakes downtown, the City Council directed staff to provide an informational memorandum regarding low-cost interim options.

Bankhead Theater Visitor Center Lobby CM Woerner suggested exploration of ways to help the visitor center at the Bankhead Theater progress, such as matching fees up to $20,000 from the City. The City Council directed staff to prepare an informational memorandum to provide information from the tenant showing the economic solvency of the proposal including an operations plan, financing, and stakeholder agreement from others in the Downtown.

Livermorium and Bankhead Theater Plazas The City Council requested briefings regarding the Livermorium Plaza and exploration of enhancements of the Bankhead Plaza, including how the two plazas could work in conjunction for various events.

Alameda County Mayors Conference Mayor Marchand said on July 15, 2015, he attended the conference where there was a presentation on drought strategies by the East Bay Regional Park District and a presentation by East Bay Economic Development Alliance regarding the high level of venture capital investments in Alameda County.

San Francisco Business Times Panel Mayor Marchand said on July 16, 2015, he attended the session where the major issues discussed were housing costs and transportation gridlock.

Alameda County Transportation Commission (ACTC) Mayor Marchand said on July 17, 2015, he attended the retreat and panel where there was discussion on increasing the influence of the ACTC in funding and legislation. He said Congressman Swalwell spoke regarding the importance of BART to Livermore along the freeway.

Water Policy Roundtable Mayor Marchand said he attended the meeting with CM Woerner on July 22, 2015, where there was discussion regarding portfolio diversification and using reclaimed water to supplement drinking water.

Retirement of LPFD Deputy Chief Joe Rodondi Mayor Marchand said on July 23, 2015, he attended the Walk-Off ceremony for retiring Livermore-Pleasanton Fire Department Deputy Chief Joseph Rodondi after thirty years in the fire service.

Alameda County Transportation Commission (ACTC) Mayor Marchand said on July 23, 2015, he attended the board meeting where there was an update regarding legislation and projects.

8. ADJOURNMENT

ADJOURNMENT - at 11:22 pm, in honor and memory of Hayward Police Sergeant Scott Lunger. Mayor Marchand said the regular City Council meeting on August 10, 2015, was cancelled and the meeting was adjourned to a regular City Council meeting on Monday, September 14, 2015, at 7:00 pm, Council Chambers, 3575 Pacific Avenue, Livermore.

APPROVED: __
JOHN P. MARCHAND, MAYOR

ATTEST: __
SUSAN NEER, CITY CLERK

PREPARED BY: __
SARAH BUNTING, DEPUTY CITY CLERK