Agenda packet — Livermore City Council, April 11, 2022 (part 2 of 4)

EXHIBIT A
185
combination of primary and umbrella or excess insurance. The additional insured coverage under the Consultant’s/Contractor’s policy shall be primary and non-contributory and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as ISO Form CG 20 10 04 13. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City of Livermore before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

3. Any failure to comply with reporting or other provisions of the policy, including breaches of warranties, shall not affect coverage provided to the City of Livermore, its officers, officials, employees, or volunteers.

4. The Consultant’s/Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party before expiration of the policy unless notice is delivered in accordance with policy provisions.

6. It shall be a requirement under this agreement that any available insurance proceeds broader than, or in excess of, the specified minimum insurance coverage requirements and/or limits shall be available to the additional insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named Insured; whichever is greater.

7. Certificate Holder section of the insurance certificate should read: City of Livermore, 1052 S. Livermore Avenue, Livermore, CA 94550

Verification of Coverage
Consultant/Contractor shall furnish certificates of insurance and endorsement(s) effecting coverage to the City of Livermore for approval. The endorsements shall be on forms acceptable to the City of Livermore. All certificates and endorsements are to be received and approved by the City of Livermore before work commences. The City of Livermore reserves the right to require complete and certified copies of all insurance policies required by this Agreement.

Revised 9/21/2015 B3 – 3M

Page 2 ends

EXHIBIT A
186

CITY COUNCIL STAFF REPORT
ITEM NO. 4.8

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Paul Spence, Community Development Director
SUBJECT:

Resolution authorizing the execution of a subordination agreement with Fremont Bank for the City’s Deeds of Trust recorded on the properties located at 1031 and 1045 Bluebell Drive, and authorizing the City Manager to negotiate with the Livermore Housing Authority for new and restated loan and Regulatory Agreements on the properties

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution authorizing:
1 .

The City Manager to execute a Subordination Agreement with Fremont Bank, in substantially the form attached as Exhibit A to the Resolution, and subject to final form approval by the City Attorney for the City’s Deeds of Trust on 1031 and 1045 Bluebell Drive. 2 .

The City Manager or his designee to negotiate new and/or restated loan and Regulatory Agreements with the Livermore Housing Authority (LHA) for the properties located at 1031 and 1045 Bluebell Drive using the terms described in the letter agreement between the City and LHA, attached as Exhibit B to the Resolution.

SUMMARY
In 1995 and 1997, the City provided loans to assist the Housing Authority of the City of Livermore with the purchase of two five-unit multi-family buildings located at 1031 and 1045 Bluebell Drive, which are part of the 27-unit Bluebell Apartments community. The City recorded two Deeds of Trust on the properties located at 1031 and 1045 Bluebell to evidence the City’s loans totaling $643,670. The city also recorded a Regulatory Agreement which restricts units for very low-income households and families transitioning out of local shelters. Now, the Housing Authority has requested that the City subordinate its Deeds of Trust to a new first mortgage of $1,800,000 from Fremont Bank which will be used to substantially renovate all 27 Bluebell Apartments. The Housing Authority has further requested to negotiate an extension of the City's loans and affordability restrictions beyond the current expiration of December 2025.

Staff recommends City Council authorize the City Manager to execute a subordination agreement with Fremont Bank substantially in the form attached as Exhibit A to the Resolution with the final form subject 187
to City Attorney approval, and authorize the City Manager, or his designee, to negotiate extended and/or restated loan and regulatory agreements using the terms described in the letter agreement attached as Exhibit B to the Resolution.

DISCUSSION
In 1995, the City provided a loan of Federal HOME, former Redevelopment Agency and City Housing In- Lieu funds to the Housing Authority of the City of Livermore (“LHA”) to acquire two, five-unit multi-family buildings located at 1031and 1045 Bluebell Drive. These properties are among several acquisitions of the LHA which altogether comprise the 27-unit Bluebell Apartments community. Deeds of Trust totaling $643,670 were recorded on the 1031 and 1045 properties to secure the City’s loans, and the City also recorded a Regulatory Agreement which restricted seven units in those properties for Very Low-Income households (defined as at or below 50% of Area Median Income) who are transitioning from shelters, and three units for households at or below 110% of Area Median Income. The City’s loan and regulatory agreements established a due date/expiration of 30 years from recording in Alameda County records and therefore, the affordability terms are nearing conclusion.

LHA has developed a plan to substantially renovate and upgrade the interiors and major systems in all 27 units at Bluebell Apartments, along with making overdue exterior improvements, including painting.

They have secured a commitment for a new first mortgage in the amount of $1,800,000 from Fremont Bank to finance the renovations. The new first mortgage offers a 30-year amortization, with a 15-year repayment term at a 4% fixed interest rate for the first five years. These terms are reasonable and affordable for LHA. Fremont Bank requests that the City subordinate its existing Deeds of Trust to the new first mortgage which is a typical and customary condition among private lenders. The City's existing Regulatory Agreements controlling the affordability restrictions would not be subordinated to the new financing.

Since the City’s loan financing will become due during the term of the new first mortgage, the Housing Authority has requested to negotiate an extension in order to preserve affordable units in the project and ensure overall financial feasibility. Recommended terms for those future agreements are describe in the letter agreement attached as Exhibit B to the Resolution, and include among the following key provisions:

The city will require LHA to negotiate and execute an amended and restated promissory note and Regulatory Agreement restricting rents on at least the same number of existing units and at rent levels that are the same or lower than the existing rent levels described in the current Regulatory Agreements for 1031 and 1045 Bluebell Drive.

City financing would be provided in accordance with the City’s standard affordable housing financing, regulatory and underwriting terms, including a 55-year affordability period.

LHA and City will work on a plan that reflects mutual agency goals of prioritizing City-restricted units for homeless or at-risk households.

Staff recommends City Council authorize the City Manager to execute a subordination agreement with Fremont Bank for the City’s Deeds of Trust substantially in the form attached as Exhibit A to the Resolution with the final forms of those documents subject to City Attorney approval. Staff further recommends that the City Council authorize the City Manager to negotiate new and/or restated loan and regulatory agreements on the properties located at 1031 and 1045 Bluebell which reflect the terms set forth in the letter agreement included as Exhibit B to the Resolution. 188

FISCAL AND ADMINISTRATIVE IMPACTS

There will be no additional fiscal impact created by approval of the subordination of the existing Deeds of Trust for 1031 and 1045 Bluebell Drive. If approved, staff will process the subordination of the existing City Deeds of Trust and commence with negotiation of new and restated loan agreements for the 1031 and 1045 Bluebell Drive properties using the terms included in the letter agreement. Those new and restated agreements would be presented for City Council approval at a future meeting.

ATTACHMENTS

1. Resolution

2. Exhibit A - Form of Subordination Agreement

3. Exhibit B - Letter Agreement

Prepared by: Fran Reisner
Housing Programs Manager

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION AUTHORIZING A SUBORDINATION AGREEMENT WITH FREMONT BANK REGARDING CITY DEEDS OF TRUST ON 1031 AND 1045

BLUEBELL DRIVE, AND AUTHORIZING NEGOTIATION OF NEW AND

RESTATED LOAN AND REGULATORY AGREEMENTS FOR PROPERTIES
LOCATED AT 1031 AND 1045 BLUEBELL DRIVE
In 1995 and 1997, the City provided loans to assist the Housing Authority of the City of Livermore (“LHA”) with the purchase of two, five-unit multi-family buildings located at 1031 and 1045 Bluebell Drive, which are part of the 27-unit Bluebell Apartments community. The City recorded two Deeds of Trust on the properties at 1031 and 1045 Bluebell to evidence the City’s loans totaling $643,670. The City also recorded a Regulatory Agreement on each of the properties which restricts units for very low-income households and families transitioning out of local shelters.

Now, LHA has requested that the City subordinate its Deeds of Trust to a new first mortgage of $1,800,000 from Fremont Bank that will be used to finance the substantial renovation of all 27 units of Bluebell Apartments. The City will not subordinate its Regulatory Agreements to the new financing. LHA has further requested to negotiate an extension of the current term of City financing beyond February 2025 to preserve affordable units in the project. Both the City and LHA wish to negotiate new and/or restated loan documents to achieve mutual goals and objectives for preserving affordable units in the project.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore:

1. The City Manager is authorized to execute a Subordination Agreement with Fremont Bank, in substantially the form attached to the Resolution as Exhibit A, and subject to final form approval by the City Attorney for the City’s Deeds of Trust on 1031 and 1045 Bluebell Drive; and,

2. The City Manager, or his designee, is authorized to negotiate new and/or restated loan and Regulatory Agreements for 1031 and 1045 Bluebell Drive using the terms described in the letter agreement attached to the Resolution as Exhibit B.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:
190
RESOLUTION NO. ________
AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Kelly J. Trujillo
Marie Weber Kelly J. Trujillo
City Clerk Assistant City Attorney
Exhibit A – Form of Subordination Agreement with Fremont Bank Exhibit B – Letter Agreement with LHA
191
SUBORDINATION, RECORDED DEED OF TRUST TO DEED OF TRUST TO RECORD.

ORTIC-951 2/94 1 of 3

RECORDING REQUESTED BY

OLD REPUBLIC TITLE COMPANY
Escrow No.: 1117024417
APN:

WHEN RECORDED MAIL TO
,
SPACE ABOVE THIS LINE FOR RECORDER’S USE

A SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE

PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.

THIS AGREEMENT, made this 2nd day of February, 2022, by , owner of the land hereinafter described and hereinafter referred to as “Owner”, and , present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as “Beneficiary”:

WITNESSETH
THAT WHEREAS, did execute a deed of trust, dated , to , as Trustee, covering; See "Exhibit A" attached hereto and made a part hereof
to secure a note in the sum of , dated , in favor of , which deed of trust was recorded on , in Book/Reel , at Page/Image , Series/Instrument , Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $1,800,000.00, dated ____________________, in favor of , hereinafter referred to as “Lender”, payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a conditio n precedent to obtaining said loan that said d eed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbe fore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien of charge of the deed of trust first above mentioned and provided that Ben eficiary will specifically and unconditionally subordi nate the lien or charge of the d eed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties here to that Len der make such loan to Owner; and B eneficiary is willing that the d eed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned.

NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows:

EXHIBIT A
192

IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
(CLTA SUBORDINATION FORM “A”)

ORTIC-951 2/94 2 of 3

(1) That said deed of trust securing said note in favor of Lender, and any re newals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned; (2) That Lender would not make its loan above described without this subordination agreement; (3) That this agreement shall be t he whole and only agreement with regard to the subordinatio n of the lien or charge of the d eed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar a s would a ffect the priority between the d eeds of trust hereinbefore specifically described, any prior agreements as to such subordination, including, but not limited to , those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages.

Beneficiary declares, agrees and acknowledges that:

(a) He/She consents to and appr oves (i) all provisions of the n ote and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender’s loan; (b) Lender in making disbursements purs uant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for p urposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part;
(c) He/S he intentionally and u nconditionally waives, relinquishes and subordin ates the lien or charge of the deed of trust first above mentioned in favor of the lien o r charge upon said land of the d eed of trust in favor of Lender above referred to and understands that in reliance upon , and in consideration of, this waiver, relinquishment and subordination, specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and
(d) An endorsement has been placed upon the Note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subor dinated to the lien or charge of the deed of trust in favor of Lender above referred to.

NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON

OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.

Signature of Beneficiary(s) Signature of Owner(s)

EXHIBIT A
193

IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
(CLTA SUBORDINATION FORM “A”)

ORTIC-951 2/94 3 of 3

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of ____________________________
County of ___________________________

On _______________________ before me, _____________________________________________ a Notary Public, personally appeared
_________________________________________________________________________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _______________________________

Name: ___________________________________
(Typed or Printed) (Seal)

A notary public or other officer completing this certificate ver ifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of ___________________________
County of ___________________________

On _______________________ before me, _____________________________________________ a Notary Public, personally appeared
_________________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is t rue and correct.

WITNESS my hand and official seal.

Signature: _______________________________

Name: ___________________________________
(Typed or Printed) (Seal)

EXHIBIT A
194

EXHIBIT B
195
3/25/2022

EXHIBIT B
196

CITY COUNCIL STAFF REPORT
ITEM NO. 4.9

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Paul Spence, Community Development Director
SUBJECT:

Resolution authorizing a lease agreement with CityServe of the Tri-Valley for office space at the Multi-Service Center, 3311 Pacific Avenue

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution authorizing execution of a lease agreement with CityServe of the Tri-Valley for office space at the Multi-Service Center, 3311 Pacific Avenue.

SUMMARY
CityServe of the Tri-Valley has requested a lease of office space at the Multi-Service Center (MSC).

CityServe provides social safety net resource coordination for unsheltered and vulnerable individuals and families in the Tri-Valley. If approved, the lease agreement would provide the space at no cost to allow CityServe to establish a service headquarters at the MSC for three years, with a term ending February 28, 2025.

DISCUSSION
Since 1979, the City has provided office space to government agencies and non-profit organizations at the Multi-Service Center (MSC) at below-market rates to support the local availability of vital social services for low-income residents who would otherwise have to travel outside of the Tri-Valley. The MSC was originally constructed by the City with funds from the Federal Housing and Community Development Grant Act of 1974 to provide low or no-cost office space to qualified public service-oriented tenants within the community. The MSC is a 9,860 square foot building that includes a community medical clinic operated by Axis Community Health, private offices and cubical workspaces, a conference room, and a staff area/kitchen.

Seven agencies currently lease space in the Multi-Service Center, and numerous agencies have historically used the building’s conference room for activities that support the City’s social services network. Agencies at the MSC are typically charged rent based on a pro rata share of average monthly operating expenses incurred by the City which is currently $0.85 per square foot, while a comparable space at market rate would cost agencies approximately $2.25 per square foot. The City has historically 197
provided very low or no-cost space for community agencies that are establishing a new or expanded presence in Livermore, or who are able to use a free or reduced cost space as in-kind match for other agency grants. This subsidy has been a key source of City support for the non-profit community.

CityServe has become a critical provider of crisis stabilization services to unsheltered and vulnerable individuals and families in the Tri-Valley. In 2021, the agency provided services to over 1,500 clients with over 500 from Livermore. CityServe proposes to establish their headquarters at the MSC and provide such services as case management, outreach, housing navigation, safety net service referrals, and assistance with applications to access other public benefits. CityServe has been operating out of several temporary locations which do not adequately support their operations and create difficulty in providing confidential services to their clients. The City’s recent MSC construction project included upgrades to reconfigure and expand office capacity and accommodate approximately 12 CityServe staff. Establishing a headquarters in Livermore will provide an enhanced benefit to Livermore residents and visitors to the Multi-Service Center. These services will complement the mix of providers and bring an expanded services coordination capacity to the MSC.

As proposed, the lease includes 1,228 square feet of private office space and non-exclusive access to the MSC reception area space to support the public counter reception duties and service referrals to the public. CityServe has requested, and staff recommends, entering into a three-year lease with a term ending February 28, 2025. CityServe has also requested the space be offered at no cost to allow the agency to focus their limited financial resources towards expenses to set up and begin operating in the space, while maintaining their existing staffing levels in support of the Livermore community. Staff supports this proposal, which will allow CityServe to maintain existing operations while they work to identify additional ongoing sources of funding from State and County sources. The intent at the end of the three-year term will be for CityServe to transition to the reduced rent rate that most other tenants are asked to pay.

If approved, the lease would run through a three-year term beginning March 1, 2022 and ending February 28, 2025.

FISCAL AND ADMINISTRATIVE IMPACTS

The Multi-Service Center (MSC) is required to provide low-cost, below market rents for social service providers within the community by the Federal funding requirements used for the building's construction.

Operating costs for the MSC include janitorial, utilities, insurance, maintenance, repairs and building security and are budgeted annually through the General Fund. Sufficient operating have funds have already been appropriated to the MSC budget (Fund 5010) for FY 2021-22 and 2022-23. The City's operating expenses do not include services contracted directly by tenants such as phone and internet.

Any rent collected from non-profit agency tenants offsets the City's operating expenses.

If approved, the lease with CityServe would not generate any revenue during the term and the City would therefore subsidize CityServe's pro rata share of operating costs in the amount of approximately $12,525 per year and $37,575, over the three-year term. The subsidy based on market rents would be approximately $33,156, annually.

The City is required to implement provisions of the Government Accounting Standards Board (GASB) Statement No. 87, Leases, during current fiscal year. Based on the requirements for this Statement, the Finance Division has estimated that they will spend approximately 30 hours the first year to comply with 198
reporting requirements of this Statement for this lease, which equates to approximately $5,000 and 20 hours annually every year thereafter or approximately $3,000.

ATTACHMENTS

1. Resolution

2. Exhibit A - Multi-Service Center Lease with CityServe of the Tri-Valley

Prepared by: Fran Reisner
Housing Programs Manager

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT

FOR SPACE AT THE MULTI-SERVICE CENTER WITH CITYSERVE OF

THE TRI-VALLEY
The City’s Multi-Service Center, located at 3311 Pacific Avenue in Livermore, provides office space at below-market rates in order to facilitate access to social services for local residents. The City wishes to enter into a three-year lease with CityServe of the Tri-Valley for office space at the Multi-Service Center. CityServe provides social safety net resource coordination for unsheltered and vulnerable individuals and families in the Tri-Valley.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that the City Manager is authorized to sign on behalf of the City of Livermore a lease with CityServe of the Tri-Valley, attached as Exhibit A.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Tara M. Mazzanti
Marie Weber Tara M. Mazzanti
City Clerk Assistant City Attorney
Exhibit A – Multi-Service Center Lease with CityServe of the Tri-Valley 200

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CITY COUNCIL STAFF REPORT
ITEM NO. 4.10

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Paul Spence, Community Development Director
SUBJECT:

Resolution authorizing the acceptance for permanent maintenance and release of the security bonds for the Miscellaneous Corrective and Incomplete Work at the Civic Center Meeting Hall, Project 2004-3901.

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution authorizing the acceptance for permanent maintenance and release of the security bonds for the Miscellaneous Corrective and Incomplete Work at the Livermore Civic Center Meeting Hall, Project 2004-3901.

SUMMARY
On May 4, 2021, the City Manager awarded a contract for construction of the Miscellaneous Corrective and Incomplete Work at the Livermore Civic Center Meeting Hall (City Project No. 2004-3901) to Integra Construction Services Inc. for $407,909 plus a $50,000 contingency.

The project has been substantially
completed and is now ready to accept for permanent maintenance.

The City can begin releasing the
contractor's security bonds.

DISCUSSION
On December 11, 2017, the City Council awarded the original contract for construction of the Livermore Civic Center Meeting Hall, Project No. 2004-39, to D.L. Falk Construction, Inc. (D.L. Falk). The original contract, which was reduced to reflect work not performed by D.L. Falk, was accepted by City Council on November 23, 2020. Final completion was a result of the City’s final notice to take back all remaining incomplete work via Contract Change Orders #35, #37, #38, #39, #40, #42, and #43, which occurred on September 28, 2020.

In November 2020, City staff started negotiations with Integra Construction Services Inc. to complete the miscellaneous corrective and incomplete work at the Civic Center Meeting Hall. In order to expedite completion of this work, Resolution No. 2021-011 was approved by the City Council on January 26, 2021, authorizing the City Manager to execute any and all contracts and agreements necessary for the completion of the Livermore Civic Center Meeting Hall Project No. 2004-39 within the limits of the 228
approved FY 2020-21 budget and authorizing a supplemental appropriation of $235,000 from the General Fund in FY 2020-21 for the Livermore Civic Center Meeting Hall Project. On May 4, 2021, the City Manager awarded a contract for construction of the Miscellaneous Corrective and Incomplete Work at the Livermore Civic Center Meeting Hall, City Project No. 2004-3901 to Integra Construction Services Inc.

During the course of performing this work, the Contractor discovered additional minor work items under D.L. Falk's contract that were incomplete or needed correction plus a few additional minor items that were not included in the original project design. Staff is negotiating general services contracts to address these remaining deficiencies.

The Miscellaneous Corrective and Incomplete Work at the Livermore Civic Center Meeting Hall was completed in accordance with the contract documents in a manner acceptable to the City Engineer. The project is ready to be accepted by the City for permanent maintenance.

At time of award, the contractor provided a faithful performance bond guaranteeing completion of the project, and that bond must now be released. Six months after the date of the resolution accepting the project, the labor and materials bond guaranteeing the improvements should be reduced to an amount equal to any claims filed and of which notice has been given. The balance of the bond will be released upon the settlement of all claims and obligations for which the security was given. There are no known claims at this time. The security for the guarantee and warranty of work shall remain in effect for one year from the date of the resolution.

FISCAL AND ADMINISTRATIVE IMPACTS

The original construction contract amount was $407,909 plus a $50,000 contingency. The final project amount was $405,226.39, which is less than 1% percent below the original contract based on final bid item quantities and 15 change orders. The total value of change orders was $42,962.26, which consisted primarily of extension of bid item work required to complete the work due to unforeseen conditions discovered during construction and reduction of bid item work.

Funding for this work is included in the 2021-23 Capital Improvement Plan. There is sufficient funding budgeted to close out work on the Integra contract. Additional budget to complete the remaining deficiencies listed above will be proposed in the June 2022 update to the Capital Improvement Plan.

Ongoing maintenance and operational costs for the Civic Center Meeting Hall are estimated at $72,000 and $44,000 respectively per year in annual replacement costs, including sidewalks, streets, lighting, landscape, and utilities (water, electricity).

ATTACHMENTS

1. Resolution

2. Exhibit A - Notice of Completion

Prepared by: Mike Stamm
Construction Inspection Manager

229

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION AUTHORIZING ACCEPTANCE FOR PERMANENT

MAINTENANCE AND RELEASE OF SECURITY
Miscellaneous Corrective and Incomplete Work at the Civic Center Meeting Hall, Project No. 2004-3901
The City Engineer of the City of Livermore has filed with the City Clerk his report in writing that all work on the Miscellaneous Corrective and Incomplete Work at the Civic Center Meeting Hall, Project No 2004-3901 (“Project”), has been completed to City standards. The Project is ready for acceptance by the City of Livermore for routine maintenance.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that:

1. The faithful performance bond guaranteeing the Project is hereby released.

2. The labor and materials bond guaranteeing the Project shall, six months after the date of this resolution, be reduced to an amount equal to the amount of all claims filed and of which notice has been given. The balance of the bond shall be released upon the settlement of all such claims and obligations for which the security was given;

3. The security for the guarantee and warranty of work shall remain in effect for one year from the date of this resolution. The contractor is required to reconstruct any deficiencies that occur and repair or replace defective materials during the maintenance period; and

4. The City hereby accepts the improvements.

5. The City Manager is authorized to take whatever actions are appropriate and necessary to carry out the purpose and intent of this resolution.

On motion of Council Member seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
231
RESOLUTION NO. ________
ATTEST: APPROVED AS TO FORM:
/s/ Tara M. Mazzanti
Marie Weber Tara M. Mazzanti
City Clerk Assistant City Attorney
Exhibit A- Notice of Completion
232

EXHIBIT A
233

CITY COUNCIL STAFF REPORT
ITEM NO. 4.11

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Scott Lanphier, Public Works Director
SUBJECT:

Resolution directing the City Engineer to file the Annual Engineer’s Report for the City’s Landscape Maintenance Districts

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution directing the City Engineer to file the Annual Engineer’s Report for the City’s Landscape Maintenance Districts.

SUMMARY
In order to levy and collect annual assessments for landscape maintenance districts under the Landscape and Lighting Act of 1972, the City must follow certain legal procedures. The initial procedures consist of directing the filing of annual report(s), approving the report(s), and then passing resolutions of intention and authorizing the levy and collection of assessments.

DISCUSSION
A consolidated Engineer’s Report will be prepared for 92 districts for Fiscal Year 2022-2023 in accordance with the requirements of the Landscape and Lighting Act of 1972. The districts are Maintenance District No. LL-1: Annexation Nos. 1989-1, 1989-2, 1989-4, 1990-1, 1990-2; Maintenance District No. LL-2; Maintenance District No. LL-2 (1992-0): Annexation Nos. 1992-1, 1993-1, 1993-2, 1994 1, 1994-2, 1994-3, 1994-4, 1994-6, 1994-7, 1994-8, 1995 1, 1995-2, 1995-3, 1995-4, 1995 6, 1995-7, 1996-1, 1996-2, 1996-3, 1996-5, 1996 6, 1996-7, 1996-8, 1996-9, 1997-2, 1997 3, 1997-4,1997-5; and Maintenance District Nos. LL-801, LL-802, LL-803, LL-804, LL 805, LL 806, LL-807, LL-808, LL-809, LL- 810, LL-811, LL-813, LL-814, LL-815, LL-817, LL-818, LL-819, LL-820, LL-821, LL 822, LL-823, LL-824, LL-826, LL-827, LL-828, LL-829, LL-830, LL-831, LL-832, LL 833, LL-835, LL-836, LL-837, LL-838, LL- 839, LL-840, LL-841, LL-842, LL-843, LL 844, LL-845, LL-846, LL-847, LL-848, LL-849, LL-850, LL-851, LL-852, LL-853, LL 854, LL-855, LL-857, LL-858, LL-859, LL-860, LL-861, LL-862, and LL-863. These reports will include estimates of expenditures and revenues for Fiscal Year 2022-2023.

Proposed Schedule for the Levy of Assessments for Fiscal Year 2022-2023

234
Staff will return to the Council to ask for the approval of the Engineer’s Report and then to pass a Resolution of Intention to levy assessments that will establish the date, time, and place of the public hearing for these actions. The following tentative schedule is proposed:

June 13, 2022 - Council adopts a resolution approving the Engineer’s Report and then passes a Resolution of Intention to Levy Annual Assessments for the Landscape Maintenance Districts for Fiscal Year 2022-2023 and establishing a public hearing date of June 27, 2022.

June 27, 2022 - Council holds a public hearing and considers levying the assessments for the City’s landscape maintenance districts.

August 10, 2022 - Deadline to file assessments with Alameda County Assessor’s Office.

FISCAL AND ADMINISTRATIVE IMPACTS

Property owners within each maintenance district pay assessments to cover the cost of landscape maintenance, utilities, operation, and maintenance of equipment. Maintenance operations are performed by City staff and supplemented by private contractors under the direction of City staff. Preparing and filing the annual Engineer’s Report will only utilize staff time and consultant time which has been previously budgeted.

ATTACHMENTS

1. Resolution

Prepared by: Sean Prevette
Management Analyst II

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION DIRECTING THE CITY ENGINEER TO FILE AN ANNUAL REPORT

FOR LANDSCAPE MAINTENANCE DISTRICTS ORGANIZED UNDER THE LANDSCAPE AND LIGHTING ACT OF 1972
MAINTENANCE DISTRICT NO. LL-1: ANNEXATION NOS. 1989-1, 1989-2, 1989-4, 1990-1, 1990-2
MAINTENANCE DISTRICT NO. LL-2: ANNEXATION NOS. 1992-0, 1992-1,1993-1, 1993-2, 1994-1, 1994-2, 1994-3, 1994-4, 1994-6, 1994-7, 1994-8, 1995-1, 1995-2, 1995-3, 1995-4, 1995-6, 1995-7, 1996-1, 1996-2, 1996-3, 1996-5, 1996-6, 1996-7, 1996-8, 1996-9, 1997-2, 1997-3, 1997-4, 1997-5
MAINTENANCE DISTRICT NOS. LL-801, LL-802, LL-803, LL-804, LL-805, LL-806, LL- 807, LL-808, LL-809, LL-810, LL-811, LL-813, LL-814, LL-815, LL-817, LL-818, LL-819, LL-820, LL-821, LL-822, LL-823, LL-824, LL-826, LL-827, LL-828, LL-829, LL-830, LL- 831, LL-832, LL-833, LL-835, LL-836, LL-837, LL-838, LL-839, LL-840, LL-841, LL-842, LL-843, LL-844, LL-845, LL-846, LL-847, LL-848, LL-849, LL-850, LL-851, LL-852, LL- 853, LL-854, LL-855, LL-857, LL-858, LL-859, LL-860, LL-861, LL-862, LL-863 There are 92 Landscape and Lighting Districts within the city of Livermore. Under the regulations governing Landscape and Lighting Districts, the City Council must follow certain procedures to levy annual assessments. The first step in this process requires the preparation and filing of the Annual Engineer’s Report for the City of Livermore’s Landscape Maintenance Districts (“Annual Engineer’s Report”) for each of the 92 districts. Any proposed new improvements, or substantial changes in existing improvements, must also be described.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that the engineer of record is directed to file with the City Clerk the Annual Engineer's Report for the maintenance districts. The improvements are the same as the ones described in the prior Engineer’s Report, and no new improvements or substantial changes to existing improvements, are proposed.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
236
RESOLUTION NO. ________
ATTEST: APPROVED AS TO FORM:
/s/ Tara M. Mazzanti
Marie Weber Tara M. Mazzanti
City Clerk Assistant City Attorney
237

CITY COUNCIL STAFF REPORT
ITEM NO. 4.12

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Tina Olson, Administrative Services Director
SUBJECT:

Resolution approving the City of Livermore Cybersecurity Policy

RECOMMENDED ACTION

Staff recommends City Council approve the City of Livermore Cybersecurity Policy.

SUMMARY
A cybersecurity policy is necessary for an organization to establish and support cybersecurity, cyber risk management, and cyber resiliency operations and capabilities. Cybersecurity policies are required by many standards, agreements, and regulations in addition to cyber insurance requirements. A cybersecurity policy demonstrates Council due diligence, commitment to, and prioritization of, cybersecurity and can potentially have a positive impact on a City’s bond rating.

The City of Livermore Cybersecurity Policy:
establishes guiding principles for the City’s cybersecurity and cyber risk management programs assigns key cybersecurity responsibilities
adopts the National Institute of Standards and Technology (NIST) Cybersecurity Framework

DISCUSSION
There are a number of requirements for organizations to have cybersecurity policies. First, the Criminal Justice Information Services (CJIS) Security Policy requires law enforcement organizations to adopt cybersecurity policies. Second, as a condition of accepting credit and debit card payments, the Payment Card Industry Data Security Standard (PCI-DSS) requires organizations that store, process, or transmit payment card to adopt cybersecurity policies. Finally, there are a number of industry best practices and standards that recommend the adoption of cybersecurity policies such as, the COBIT® governance framework, the National Institute of Standards and Technology (NIST) Special Publication 800-53 Security and Privacy Controls for Information Systems and Organizations, and ISO/IEC 27002:2022 Information security, cybersecurity and privacy protection.

Benefits
238

Adopting a cybersecurity policy demonstrates commitment to, and prioritization of, cybersecurity and cyber resiliency for the City of Livermore. In addition, a Council approved cybersecurity policy may have a positive impact on the City’s bond rating and cyber insurance rates, as providers set bond ratings and determine insurance rates based on having an adopted policy.

Cybersecurity Standard

With this policy, the City adopts the National Institute of Standards and Technology (NIST) Framework for Improving Critical Infrastructure Cybersecurity (CSF) as the standard for cybersecurity. The CSF is a set of best practices recommended for businesses to protect critical IT infrastructure. According to NIST, “The Framework enables organizations – regardless of size, degree of cybersecurity risk, or cybersecurity sophistication – to apply the principles and best practices of risk management to improving security and resilience.” The CSF uses the City’s mission, goals, and objectives as drivers to guide cybersecurity activities and to consider cyber risks as part of the City’s risk management processes. The framework will help the City align and prioritize its cybersecurity activities with its business/mission requirements, risk tolerances, and resources.

The NIST Cybersecurity Framework is recommended for use by local governments by the Department of Homeland Security, Cybersecurity & Infrastructure Security Agency (CISA), the American Water Works Association (AWWA), and most recently by the Western Governors Association.

Finally, the City has been voluntarily reporting to The Nationwide Cyber Security Review (NCSR) on how well our practices align with the Cybersecurity Framework. Although reporting to the NCSR is voluntary, some Federal grants require local governments to report to the NCSR as a condition of receiving Federal funding.

Adopting an industry standard, especially one recommended for local governments and critical infrastructure, will allow the City to adapt to changes without the need to continuously update policy.

NIST will revise the Cybersecurity Framework as needed to meet future demands of yet unforeseen cyber threats. The City will adapt as NIST updates that standard without the need for a policy revision. In essence, the policy is made to have a long shelf life by pointing to a standard that will keep pace with the rapid and ever-changing technology and risks.

Cybersecurity Policy

The Cybersecurity Policy lays the foundation for the City’s Cybersecurity Program as a whole and articulates executive level support for the effort. The Cybersecurity Policy supports the City’s Cybersecurity Program established to:
• protect City’s critical infrastructure,
• protect the sensitive information entrusted to the City, • manage cyber risk,
• continuously improve our ability to detect and respond to cybersecurity events, • contain and eradicate compromises, restoring information resources to a secure and operational status, • ensure cyber security aligns with the City’s operations, mission, and risk management strategies, • facilitate cybersecurity awareness of risks to City operations and mission, and • comply with external and regulatory data protection requirements. 239
The requirements identified in the policy apply to all information resources operated by or for the City, its departments, and advisory bodies. This includes all software, devices, and services that process, store, or transmit data, or anything that connects to a City device, systems, or network.

Elected officials, employees, consultants, and vendors working on behalf of the City of Livermore will be required to comply with this policy.

The policy requires the City to:
• Assign cybersecurity responsibilities to the Cybersecurity Manager to coordinate citywide cybersecurity efforts
• Adopt the National Institute of Standards and Technology (NIST) Cybersecurity Framework as a methodology to secure information resources
• Use other NIST guidelines as applicable (csrc.nist.gov) • Implement and assess cybersecurity compliance or regulatory controls, such as Payment Card Industry Data Security Standard (PCI DSS), Criminal Justice Information (CJIS), Protected Health Information (PHI), and other security and privacy requirements.
• Conduct and update, at least annually, a cybersecurity risk assessment or with major changes to systems
• Develop and update, at least annually, Cyber Incident Response Plan. • Conduct cybersecurity, risk, and compliance assessments.

If approved, the policy will guide subsequent administrative regulations, procedures, and plans that will address specific compliance requirements and identified cyber risks.

FISCAL AND ADMINISTRATIVE IMPACTS

The financial impact is difficult to quantify, however, the adoption of a Cybersecurity Policy can result in:
a more favorable bond rating,
saving money on cyber insurance premiums, and
access to Federal grants.

ATTACHMENTS

1. Resolution

2. Exhibit A - City of Livermore Cybersecurity Policy

Prepared by: Donald Hester
Cybersecurity Manager

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION APPROVING THE CITY OF LIVERMORE CYBERSECURITY POLICY
In the age of automation, digitization, big data, artificial intelligence, and machine- to-machine learning, the City of Livermore’s capabilities to prevent, detect and respond to cyberattacks is of ever-growing importance. Modernizing the City’s systems to be more resilient to minimize vulnerabilities and protect against cyberattacks is a priority.

The City of Livermore Cybersecurity Policy is intended to build a strong cybersecurity program to support, maintain, and secure critical infrastructure and data.

The policy is intended to establish key elements of a citywide cybersecurity program.

This policy establishes guiding principles for the City’s cybersecurity and cyber risk management programs. The policy assigns key cybersecurity responsibilities and adopts the National Institute of Standards and Technology (NIST) Cybersecurity Framework as a methodology to secure information resources and critical infrastructure.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that it hereby approves the City of Livermore Cybersecurity Policy attached as Exhibit A.

BE IT FURTHER RESOLVED that the City Manager, in coordination with the City Attorney, is authorized to take all necessary actions to implement the policy.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Jason R. Alcala
Marie Weber Jason R. Alcala
City Clerk City Attorney
Exhibit A – City of Livermore Cybersecurity Policy
241
I. PURPOSE
The City of Livermore (City) is dedicated to building a strong cybersecurity program to support, maintain, and secure critical infrastructure and data. The following policy is intended to maintain and enhance key elements of a citywide cybersecurity program.

Purpose and Scope
The Cybersecurity Policy lays the foundation for the City’s Cybersecurity Program as a whole and articulates executive level support for the effort. The Cybersecurity Policy supports the City’s Cybersecurity Program established to:
• protect City’s critical infrastructure,
• protect the sensitive information entrusted to the City, • manage cyber risk,
• continuously improve our ability to detect and respond to cybersecurity events, • contain and eradicate compromises, restoring information resources to a secure and operational status,
• ensure cyber security aligns with the City’s operations, mission, and risk management strategies,
• facilitate cybersecurity awareness of risks to City operations and mission, and • comply with external and regulatory data protection requirements.

The requirements identified in this policy apply to all information resources operated by or for the City, its departments, and advisory bodies. This includes all software, devices, and services that process, store, or transmit data, or anything that connects to a City device, systems, or network.

Elected officials, employees, consultants, and vendors working on behalf of the City of Livermore are required to comply with this policy.

II. POLICY STATEMENT
The City shall:
• Assign cybersecurity responsibilities to the Cybersecurity Manager to coordinate citywide cybersecurity efforts
• Adopt the National Institute of Standards and Technology (NIST) Cybersecurity Framework as a methodology to secure information resources
• Use other NIST guidelines as applicable (csrc.nist.gov) • Implement and assess cybersecurity compliance or regulatory controls, such as Payment Card Industry Data Security Standard (PCI DSS), Criminal Justice Information (CJIS) , Protected Health Information (PHI), and other security and privacy requirements. • Conduct and update, at least annually, a cybersecurity risk assessment or with major changes to systems
• Develop and update, at least annually, Cyber Incident Response Plan. • Conduct cybersecurity, risk, and compliance assessments.

EXHIBIT A
242
Cybersecurity Framework
In order to adequately protect information resources, systems and data must be properly categorized based on information sensitivity and criticality to operations. A risk-based methodology standardizes security architecture, creates a common understanding of shared or transferred risk when systems and infrastructure are connected, and makes securing systems and data more straightforward.

The NIST Cybersecurity framework provides five elements to a cybersecurity program:
• Identify: Develop the organizational understanding to manage cybersecurity risk to systems, assets, data, and capabilities.
• Protect: Develop and implement appropriate safeguards to ensure delivery of infrastructure services.
• Detect: Develop and implement appropriate activities to identify the occurrence of a cybersecurity event.
• Respond: Develop and implement appropriate activities to respond to a cybersecurity event.
• Recover: Develop and implement appropriate activities to maintain plans for resilience and to restore any capabilities or services impaired by a cybersecurity event.

Cybersecurity Risk Assessment
A cyber risk assessment is the process of identifying, estimating, and prioritizing information security risks. Assessing risk requires the careful analysis of threat and vulnerability information to determine the extent to which circumstances or events could adversely impact the City and the likelihood that such circumstances or events will occur.

The purpose of a cyber risk assessment is to inform decision makers and support risk responses by identifying:

1. Relevant cyber threats to the City,

2. Internal and external vulnerabilities both internal and external,

3. Impact (i.e., harm) to the City that may occur given the potential for threats exploiting vulnerabilities, and

4. Likelihood that harm will occur.

The result is a determination of risk (i.e., typically a function of the degree of harm and likelihood of harm occurring). Risk assessments enable the City to determine current cybersecurity capabilities, set individual goals for a target state, and establish a plan for improving and maintaining cybersecurity program.

III. ROLES AND RESPONSIBILITIES

• Executive Team shall:
o Promote a culture of cybersecurity awareness and compliance with the City’s cybersecurity policy. Department heads must remind their employees and contractors about the City’s Cybersecurity policies, standards, procedures, guidelines, and best practices.

EXHIBIT A
243
o To the extent resources allow, ensure that all systems procured, operated, or contracted by their departments and the data contained by them are protected. o To the extent possible, adequately support and fund cybersecurity operations based upon risk to City operations and mission.
o With the aid of the City Attorney, determine the requirements and execute necessary breach disclosures.
o Collaborate with the Information Technology Division and Cybersecurity Division on all technology procurements to ensure the technology will meet cybersecurity standards, compliance requirements, and that a cyber risk assessment has been completed.
o Department and Division heads shall be responsible for any compliance requirements of City data being used for their respective operations and shall collaborate with the Cybersecurity Division to ensure compliance and reporting. • Cybersecurity Manager shall:
o Lead enterprise governance of information and technology efforts throughout the City.
o Establish and maintain a security team and function with the ability to identify, protect, detect, respond, and recover from attacks against City information resources.
o Develop and maintain a cyber incident response plan capable of addressing major compromises of City information resources.
o Organize and coordinate the City Cyber-Incident Response Team. o Ensure that Departments and the Information Technology Division programs employ a risk-based assessment and treatment program, and regularly report the status of the City’s cybersecurity status and efforts to City Council. o Select, design, monitor, and assess cybersecurity controls for all City systems. o Perform cyber risk assessments on all technology purchases and cloud-based services.
o Inform the City Manager, City Attorney, and Risk Manager when there is an event which compromises the confidentiality, integrity, or availability of a system or data involving Personally Identifiable Information (including payment card information), Regulatory Protected Information (such as but not limited to, CJIS, HIPAA or Social Security Numbers), and/or data that is not considered public as soon as practicable.
o Establish necessary procedures to support the cybersecurity program such as but not limited to, cybersecurity awareness, business continuity, incident response, access control, configuration management, change control, etc. o Monitor current cyber threats and trends and recommend any necessary changes.
o Report to Council twice a year on current cyber risks and cybersecurity activities. • Risk Manager shall:
o Work with the Cybersecurity Manager to ensure the cybersecurity program aligns with the City’s operations, mission, and risk management strategies. o Collaborate with the Cybersecurity Manager to identify and understand the cyber risks associated with the City’s operations and then: (1) identify and implement insurance language in the City’s transactional documents commensurate with the

EXHIBIT A
244
risk related to the transaction; (2) issue appropriate insurance requirements for City operations involving third parties; and (3) maintain cyber insurance for the City and its operations for the identified cyber risks. o Coordinate with the Cybersecurity Manager to file cyber insurance claims so the Cybersecurity Manager can direct the resources provided by cyber insurance as well as gather documentation to substantiate the City’s cyber insurance claims. • Information Technology Manager shall:
o Work with the Cybersecurity Manager to develop and maintain the necessary policies, procedures, and programs to maintain the confidentiality, integrity, and availability of City systems and data.
o Implement, operate, and maintain cybersecurity controls for all City systems. • Emergency Manager shall:
o Activate the city emergency operations center to coordinate response to emergency level cyber event as outlined in Emergency Support Function 18 Unified Cyber Command.
o Support cybersecurity emergency exercise for City leaders in coordination with the Cybersecurity Manager.
• City Clerk shall:
o Work with the Cybersecurity Manager to develop and maintain an information classification system and support departments in their data classification efforts. • City Employees, contractors, and vendors shall:
o Comply with cybersecurity practices, requirements, and acceptable use Administrative Regulation.
o Promptly report any incidents to the IT Service Desk. o Report suspicious emails.
o Attend cybersecurity training at least annually.

IV. EXCEPTIONS

City cybersecurity requirements shall not supersede State or Federal requirements that may apply to certain specific data or systems.

No exceptions to this policy will be approved.

V. DEFINITIONS

For a list of definitions please refer to: https://csrc.nist.gov/glossary

VI. AUTHORIZATION

Adopted by City Council: [Date]

Lead Division: Cybersecurity Division with support from Information Technology.

VII. REFERENCES

EXHIBIT A
245
• NIST Computer Security Resource Center - https://csrc.nist.gov/ • NIST Cybersecurity Framework Website - http://www.nist.gov/cyberframework • Payment Card Industry - https://www.pcisecuritystandards.org • Criminal Justice Information Services (CJIS) Security Policy (latest version) https://www.fbi.gov/
• California Emergency Support Function 18 Cybersecurity, Annex to the California State Emergency Plan https://www.caloes.ca.gov/
• Health Information Privacy https://www.hhs.gov/hipaa/for-professionals/index.html • Cybersecurity & Infrastructure Security Agency https://www.cisa.gov/

EXHIBIT A
246

CITY COUNCIL STAFF REPORT
ITEM NO. 4.13

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Tina Olson, Administrative Services Director
SUBJECT:

Resolution approving the City of Livermore Salary Plan as of May 2022 in accordance with California Code of Regulations, Title 2, Section 570.5.

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution approving the City of Livermore Salary Plan as of May 2022, in accordance with California Code of Regulations, Title 2, Section 570.5.

SUMMARY
A summary of the changes to the Salary Plan are as follows:

1 .

Incorporate wage related adjustments associated with the approved Livermore Police Officers Association (LPOA) Memorandum of Understanding (MOU) effective May 9, 2022; 2 .

Establish a new classification, Finance Manager, Assistant (Class Code 137), and assign it to the Management Salary Schedule with a maximum salary of $12,484.55 per month.

DISCUSSION

1. On April 26, 2021, the City Council adopted a successor MOU with the LPOA. The MOU provides for a base salary increase of 3.5% effective May 9, 2022.

2. Management of the Finance Division of the Administrative Services Department currently includes the Administrative Services Director, the Finance Manager, and three Accounting Supervisors. The Division handles a wide variety of services for the public and City departments. They oversee and monitor the internal controls of the City to protect City assets, prepare the City's financial statements, assist in the development and administration of the City's financial plans, coordinate independent audits, submit required reports and documents with the State Controller's Office, coordinate preparation of the budget and the financial transactions report, and complete utility billing and dog licenses. The general management structure of the division has gone unchanged since 2012, while the regulations, reporting, 247
and audit requirements have advanced, and become more complex. To ensure accurate and timely compliance with changing regulations, the division seeks to add a new classification of Finance Manager, Assistant. This new position will assist the Finance Manager in the management of the Division and supervise a section of the Division.

FISCAL AND ADMINISTRATIVE IMPACTS

The fiscal impact of the wage increase for the LPOA was included in the 2021-23 Financial Plan approved by the City Council.

There will be no net increase in Full Time Equivalent (FTE) positions to add the Finance Manager, Assistant. Any position filled this fiscal year will be done so within the authorized FTE's included in the 2021-23 Financial Plan staffing allocations by converting a currently vacant Administrative Accounting Technician position. The annual incremental fiscal impact of adding this classification and converting the currently vacant position is $87,500 which includes salary and benefits.

ATTACHMENTS

1. Resolution

2. Exhibit A - Salary Plan effective May 2022

Prepared by: Kaylin Larson
HR Analyst II

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION ADOPTING THE CITY OF LIVERMORE SALARY
PLAN DATED MAY 2022, IN ACCORDANCE WITH CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
The proposed City of Livermore Salary Plan, attached as Exhibit A, is intended to make the following amendments:
 Incorporate wage related adjustments associated with the approved Livermore Police Officers Association Memorandum of Understanding effective May 9, 2022;
 Establish a new classification, Assistant Finance Manager (Class Code 137), and assign it to the Management Salary Schedule with a maximum salary of $12,484.55 per month.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that the amended Salary Plan attached as Exhibit A, is hereby approved in accordance with California Code of Regulations, Title 2, Section 570.5.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Jason R. Alcala
Marie Weber Jason R. Alcala
City Clerk City Attorney
Exhibit A – Salary Plan dated May 2022
249

Salary
Plan

May 2022

EXHIBIT A
250
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E 221 01 ACCOUNT CLERK 61,523.80 64,573.17 67,765.55 71,117.56 74,637.17 Sch=M22 5,126.98 5,381.10 5,647.13 5,926.46 6,219.76
1,183.15 1,241.79 1,303.18 1,367.65 1,435.33

29.57875 31.04479 32.57959 34.19113 35.88325
225 02 ACCOUNT CLERK, JUNIOR 55,638.30 58,383.95 61,266.88 64,293.95 67,472.37 Sch=M22 4,636.53 4,865.33 5,105.57 5,357.83 5,622.70
1,069.97 1,122.77 1,178.21 1,236.42 1,297.55

26.74918 28.06921 29.45523 30.91055 32.43864
222 03 ACCOUNT CLERK, SENIOR 67,045.67 70,361.68 73,843.49 77,499.39 81,338.09 Sch=M22 5,587.14 5,863.47 6,153.62 6,458.28 6,778.17
1,289.34 1,353.11 1,420.07 1,490.37 1,564.19

32.23350 33.82773 35.50168 37.25932 39.10485
224 04 ACCOUNTING TECHNICIAN 71,281.49 74,809.30 78,513.49 82,402.89 86,486.77 Sch=M22 5,940.12 6,234.11 6,542.79 6,866.91 7,207.23
1,370.80 1,438.64 1,509.87 1,584.67 1,663.21

34.26995 35.96601 37.74687 39.61677 41.58018
223 05 ADMINISTRATIVE 75,222.35 78,947.20 82,858.29 86,964.93 91,276.91 Sch=M22 ACCOUNT TECH 6,268.53 6,578.93 6,904.86 7,247.08 7,606.41 1,446.58 1,518.22 1,593.43 1,672.40 1,755.33

36.16459 37.95538 39.83572 41.81006 43.88313
213 14 ADMINISTRATIVE 74,741.38 78,442.18 82,328.02 86,408.15 90,692.29 Sch=M22 ASSISTANT 6,228.45 6,536.85 6,860.67 7,200.68 7,557.69 1,437.33 1,508.50 1,583.23 1,661.70 1,744.08

35.93336 37.71259 39.58078 41.54238 43.60206
206 06 ADMINISTRATIVE 74,741.38 78,442.18 82,328.02 86,408.15 90,692.29 Sch=M22 TECHNICIAN 6,228.45 6,536.85 6,860.67 7,200.68 7,557.69 1,437.33 1,508.50 1,583.23 1,661.70 1,744.08

35.93336 37.71259 39.58078 41.54238 43.60206
471 01 AIRPORT SERVICE 65,218.11 68,442.75 71,828.62 75,383.78 79,116.70 Sch=PS1 ATTENDANT 5,434.84 5,703.56 5,985.72 6,281.98 6,593.06 1,254.19 1,316.21 1,381.32 1,449.69 1,521.48

31.35486 32.90517 34.53299 36.24220 38.03688
473 02 AIRPORT SERVICE 70,060.11 73,526.85 77,166.92 80,989.00 85,002.18 Sch=PS1 ATTENDANT SENIOR 5,838.34 6,127.24 6,430.58 6,749.08 7,083.52 1,347.31 1,413.98 1,483.98 1,557.48 1,634.66

33.68275 35.34945 37.09948 38.93702 40.86643
290 07 ANIMAL CONTROL 74,142.55 77,813.41 81,667.81 85,714.92 89,964.39 Sch=M22 OFFICER 6,178.55 6,484.45 6,805.65 7,142.91 7,497.03 1,425.82 1,496.41 1,570.53 1,648.36 1,730.08

35.64546 37.41029 39.26337 41.20910 43.25211
465 66 ASSET MANAGEMENT 100,357.68 105,339.30 110,570.00 116,062.23 121,829.06 Sch=M22 SPECIALIST 8,363.14 8,778.28 9,214.17 9,671.85 10,152.42 1,929.96 2,025.76 2,126.35 2,231.97 2,342.87

48.24888 50.64389 53.15865 55.79915 58.57166

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021

EXHIBIT A
251
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
281 08 BUILDING INSPECTOR I 88,085.42 92,453.42 97,039.82 101,855.54 106,912.05 Sch=M22 7,340.45 7,704.45 8,086.65 8,487.96 8,909.34
1,693.95 1,777.95 1,866.15 1,958.76 2,056.00

42.34876 44.44876 46.65376 48.96901 51.40002
282 09 BUILDING INSPECTOR II 94,758.27 99,459.91 104,396.64 109,580.20 115,022.94 Sch=M22 7,896.52 8,288.33 8,699.72 9,131.68 9,585.25
1,822.27 1,912.69 2,007.63 2,107.31 2,211.98

45.55686 47.81726 50.19069 52.68279 55.29949
277 56 BUILDING INSPECTOR III 97,572.81 102,415.18 107,499.66 112,838.37 118,444.02 Sch=M22 8,131.07 8,534.60 8,958.31 9,403.20 9,870.34
1,876.40 1,969.52 2,067.30 2,169.97 2,277.77

46.91000 49.23807 51.68253 54.24922 56.94424
288 10 BUILDING INSPECTOR, 102,415.18 107,499.66 112,838.37 118,444.02 124,329.95 Sch=M22 SENIOR 8,534.60 8,958.31 9,403.20 9,870.34 10,360.83 1,969.52 2,067.30 2,169.97 2,277.77 2,390.96

49.23807 51.68253 54.24922 56.94424 59.77401
249 11 CIVIL ENGINEER, 105,318.22 110,547.86 116,038.98 121,804.66 127,858.63 Sch=M22 ASSISTANT 8,776.52 9,212.32 9,669.92 10,150.39 10,654.89 2,025.35 2,125.92 2,231.52 2,342.40 2,458.82

50.63376 53.14801 55.78797 58.55993 61.47050
254 12 CIVIL ENGINEER, 114,167.48 119,839.59 125,795.30 132,048.80 138,614.98 Sch=M22 ASSOCIATE 9,513.96 9,986.63 10,482.94 11,004.07 11,551.25 2,195.53 2,304.61 2,419.14 2,539.40 2,665.67

54.88821 57.61519 60.47851 63.48500 66.64182
247 13 CIVIL ENGINEER, JUNIOR 92,469.59 97,056.79 101,873.36 106,930.76 112,241.03 Sch=M22 7,705.80 8,088.07 8,489.45 8,910.90 9,353.42
1,778.26 1,866.48 1,959.10 2,056.36 2,158.48

44.45653 46.66192 48.97758 51.40902 53.96203
292 17 COMMUNITY 65,298.88 68,527.55 71,917.67 75,477.28 79,214.88 Sch=M22 SERVICE SPECIALIST 5,441.57 5,710.63 5,993.14 6,289.77 6,601.24 1,255.75 1,317.84 1,383.03 1,451.49 1,523.36

31.39369 32.94594 34.57580 36.28715 38.08408
294 19 CRIME ANALYST 85,396.72 89,630.29 94,075.53 98,743.04 103,643.92 Sch=M22 7,116.39 7,469.19 7,839.63 8,228.59 8,636.99
1,642.24 1,723.66 1,809.14 1,898.90 1,993.15

41.05612 43.09149 45.22862 47.47262 49.82881
296 62 CRIME PREVENTION 70,572.45 74,064.81 77,731.78 81,582.10 85,624.93 Sch=M22 SPECIALIST 5,881.04 6,172.07 6,477.65 6,798.51 7,135.41 1,357.16 1,424.32 1,494.84 1,568.89 1,646.63

33.92906 35.60808 37.37105 39.22216 41.16583
208 21 DIVISION CLERK 63,023.02 66,137.91 69,408.54 72,842.69 76,448.57 Sch=M22 5,251.92 5,511.49 5,784.05 6,070.22 6,370.71
1,211.98 1,271.88 1,334.78 1,400.82 1,470.16

30.29953 31.79707 33.36949 35.02052 36.75412

EXHIBIT A
252
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
234 64 ECONOMIC DEVELOPMENT 82,142.93 86,213.81 90,488.24 94,976.38 99,688.92 Sch=M22 SPECIALIST 6,845.24 7,184.48 7,540.69 7,914.70 8,307.41 1,579.67 1,657.96 1,740.16 1,826.47 1,917.09

39.49179 41.44895 43.50396 45.66172 47.92737
467 38 ELECTRICIAN 81,809.70 85,863.91 90,120.84 94,590.61 99,283.88 Sch=PS1 6,817.48 7,155.33 7,510.07 7,882.55 8,273.66
1,573.26 1,651.23 1,733.09 1,819.05 1,909.31

39.33159 41.28073 43.32733 45.47625 47.73263
255 23 ENGINEER, ASSISTANT 100,357.67 105,339.29 110,569.99 116,062.22 121,829.05 Sch=M22 8,363.14 8,778.27 9,214.17 9,671.85 10,152.42
1,929.96 2,025.76 2,126.35 2,231.97 2,342.87

48.24888 50.64389 53.15865 55.79914 58.57166
256 24 ENGINEER, JUNIOR 88,100.82 92,469.60 97,056.80 101,873.37 106,930.77 Sch=M22 7,341.74 7,705.80 8,088.07 8,489.45 8,910.90
1,694.25 1,778.26 1,866.48 1,959.10 2,056.36

42.35616 44.45654 46.66192 48.97758 51.40902
273 63 ENGINEERING SPECIALIST 100,357.67 105,339.29 110,569.99 116,062.22 121,829.05 Sch=M22 8,363.14 8,778.27 9,214.17 9,671.85 10,152.42
1,929.96 2,025.76 2,126.35 2,231.97 2,342.87

48.24888 50.64389 53.15865 55.79914 58.57166
284 25 ENGINEERING 86,151.86 90,423.18 94,908.07 99,617.21 104,561.80 Sch=M22 TECHNICIAN, ASSIST 7,179.32 7,535.27 7,909.01 8,301.43 8,713.48 1,656.77 1,738.91 1,825.16 1,915.72 2,010.80

41.41916 43.47268 45.62888 47.89289 50.27010
275 26 ENGINEERING 92,469.59 97,056.79 101,873.36 106,930.76 112,241.03 Sch=M22 TECHNICIAN, ASSOC 7,705.80 8,088.07 8,489.45 8,910.90 9,353.42 1,778.26 1,866.48 1,959.10 2,056.36 2,158.48

44.45653 46.66192 48.97758 51.40902 53.96203
279 28 ENGINEERING 96,108.21 100,877.35 105,884.95 111,142.93 116,663.81 Sch=M22 TECHNICIAN, SENIOR 8,009.02 8,406.45 8,823.75 9,261.91 9,721.98 1,848.23 1,939.95 2,036.25 2,137.36 2,243.53

46.20587 48.49873 50.90623 53.43410 56.08837
410 40 FACILITIES MAINTENANCE 55,328.92 58,059.09 60,925.78 63,935.80 67,096.32 Sch=PS1 TRAINEE 4,610.74 4,838.26 5,077.15 5,327.98 5,591.36 1,064.02 1,116.52 1,171.65 1,229.53 1,290.31

26.60044 27.91302 29.29124 30.73837 32.25785
411 41 FACILITIES MAINTENANCE 62,099.06 65,167.74 68,389.85 71,773.07 75,325.46 Sch=PS1 WORKER I 5,174.92 5,430.65 5,699.15 5,981.09 6,277.12 1,194.21 1,253.23 1,315.19 1,380.25 1,448.57

29.85532 31.33064 32.87974 34.50628 36.21416
412 42 FACILITIES MAINTENANCE 66,679.23 69,976.92 73,439.50 77,075.21 80,892.70 Sch=PS1 WORKER II 5,556.60 5,831.41 6,119.96 6,422.93 6,741.06 1,282.29 1,345.71 1,412.30 1,482.22 1,555.63

32.05732 33.64275 35.30745 37.05539 38.89072

EXHIBIT A
253
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
413 43 FACILITIES MAINTENANCE 70,060.11 73,526.85 77,166.92 80,989.00 85,002.18 Sch=PS1 WORKER, SENIOR 5,838.34 6,127.24 6,430.58 6,749.08 7,083.52 1,347.31 1,413.98 1,483.98 1,557.48 1,634.66

33.68275 35.34945 37.09948 38.93702 40.86643
414 20 FACILITIES MAINTENANCE 78,989.99 82,903.22 87,012.11 91,326.44 95,856.50 Sch=PS1 WORKER, SUPERVISING 6,582.50 6,908.60 7,251.01 7,610.54 7,988.04 1,519.04 1,594.29 1,673.31 1,756.28 1,843.39

37.97596 39.85732 41.83275 43.90694 46.08486
950 18 FAMILY THERAPIST 86,677.76 90,975.38 95,487.88 100,226.00 105,201.03 Sch=M22 7,223.15 7,581.28 7,957.32 8,352.17 8,766.75
1,666.88 1,749.53 1,836.31 1,927.42 2,023.10

41.67200 43.73816 45.90763 48.18558 50.57742
444 51 FLEET SERVICES WORKER 55,328.96 58,059.14 60,925.83 63,935.85 67,096.37 Sch=PS1 4,610.75 4,838.26 5,077.15 5,327.99 5,591.36
1,064.02 1,116.52 1,171.65 1,229.54 1,290.31

26.60046 27.91305 29.29126 30.73839 32.25787
274 59 GIS SPECIALIST 100,357.67 105,339.28 110,569.98 116,062.21 121,829.04 Sch=M22 8,363.14 8,778.27 9,214.17 9,671.85 10,152.42
1,929.96 2,025.76 2,126.35 2,231.97 2,342.87

48.24888 50.64388 53.15864 55.79914 58.57165
420 11 GROUNDSKEEPER 55,328.92 58,059.09 60,925.77 63,935.79 67,096.31 Sch=PS1 TRAINEE 4,610.74 4,838.26 5,077.15 5,327.98 5,591.36 1,064.02 1,116.52 1,171.65 1,229.53 1,290.31

26.60044 27.91302 29.29124 30.73836 32.25784
421 12 GROUNDSKEEPER I 62,099.06 65,167.74 68,389.85 71,773.07 75,325.46 Sch=PS1 5,174.92 5,430.65 5,699.15 5,981.09 6,277.12
1,194.21 1,253.23 1,315.19 1,380.25 1,448.57

29.85532 31.33064 32.87974 34.50628 36.21416
422 13 GROUNDSKEEPER II 66,679.23 69,976.93 73,439.50 77,075.21 80,892.70 Sch=PS1 5,556.60 5,831.41 6,119.96 6,422.93 6,741.06
1,282.29 1,345.71 1,412.30 1,482.22 1,555.63

32.05732 33.64275 35.30745 37.05539 38.89072
423 14 GROUNDSKEEPER III 70,060.11 73,526.85 77,166.92 80,989.00 85,002.18 Sch=PS1 5,838.34 6,127.24 6,430.58 6,749.08 7,083.52
1,347.31 1,413.98 1,483.98 1,557.48 1,634.66

33.68275 35.34945 37.09948 38.93702 40.86643
424 04 GROUNDSKEEPER, 78,989.99 82,903.22 87,012.11 91,326.44 95,856.50 Sch=PS1 SUPERVISING 6,582.50 6,908.60 7,251.01 7,610.54 7,988.04 1,519.04 1,594.29 1,673.31 1,756.28 1,843.39

37.97596 39.85732 41.83275 43.90694 46.08486
228 16 INFORMATION 72,521.65 76,111.46 79,880.77 83,838.54 87,994.19 Sch=M22 TECHNOLOGY TECHNICIAN 6,043.47 6,342.62 6,656.73 6,986.55 7,332.85 1,394.65 1,463.68 1,536.17 1,612.28 1,692.20

34.86618 36.59205 38.40422 40.30699 42.30490

EXHIBIT A
254
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
271 57 INFORMATION TECHNOLOGY 79,701.28 83,650.07 87,796.30 92,149.85 96,721.07 Sch=M22 TECHNICIAN, SENIOR 6,641.77 6,970.84 7,316.36 7,679.15 8,060.09 1,532.72 1,608.66 1,688.39 1,772.11 1,860.02

38.31792 40.21638 42.20976 44.30281 46.50051
426 52 LANDSCAPE MAINTENANCE 74,996.75 78,710.32 82,609.56 86,703.77 91,002.68 Sch=PS1 SPECIALIST 6,249.73 6,559.19 6,884.13 7,225.31 7,583.56 1,442.25 1,513.66 1,588.65 1,667.38 1,750.05

36.05613 37.84150 39.71613 41.68450 43.75129
263 29 LIBRARIAN I 67,433.64 70,769.06 74,271.24 77,948.53 81,809.68 Sch=M22 5,619.47 5,897.42 6,189.27 6,495.71 6,817.47
1,296.80 1,360.94 1,428.29 1,499.01 1,573.26

32.42002 34.02359 35.70733 37.47525 39.33158
260 30 LIBRARIAN II 74,888.88 78,597.05 82,490.63 86,578.89 90,871.56 Sch=M22 6,240.74 6,549.75 6,874.22 7,214.91 7,572.63
1,440.17 1,511.48 1,586.36 1,664.98 1,747.53

36.00427 37.78704 39.65896 41.62447 43.68825
242 32 LIBRARY ASSISTANT 63,417.44 66,552.04 69,843.37 73,299.28 76,927.97 Sch=M22 5,284.79 5,546.00 5,820.28 6,108.27 6,410.66
1,219.57 1,279.85 1,343.14 1,409.60 1,479.38

30.48915 31.99617 33.57854 35.24004 36.98460
243 33 LIBRARY ASSISTANT, 71,281.49 74,809.30 78,513.49 82,402.89 86,486.77 Sch=M22 SUPERVISING 5,940.12 6,234.11 6,542.79 6,866.91 7,207.23 1,370.80 1,438.64 1,509.87 1,584.67 1,663.21

34.26995 35.96601 37.74687 39.61677 41.58018
241 34 LIBRARY CLERK 55,638.34 58,383.99 61,266.92 64,293.99 67,472.42 Sch=M22 4,636.53 4,865.33 5,105.58 5,357.83 5,622.70
1,069.97 1,122.77 1,178.21 1,236.42 1,297.55

26.74920 28.06923 29.45525 30.91057 32.43866
400 16 MAINTENANCE 55,328.92 58,059.09 60,925.77 63,935.79 67,096.31 Sch=PS1 TRAINEE 4,610.74 4,838.26 5,077.15 5,327.98 5,591.36 1,064.02 1,116.52 1,171.65 1,229.53 1,290.31

26.60044 27.91302 29.29124 30.73836 32.25784
401 17 MAINTENANCE 62,099.06 65,167.74 68,389.85 71,773.07 75,325.46 Sch=PS1 WORKER I 5,174.92 5,430.65 5,699.15 5,981.09 6,277.12 1,194.21 1,253.23 1,315.19 1,380.25 1,448.57

29.85532 31.33064 32.87974 34.50628 36.21416
402 18 MAINTENANCE 66,679.23 69,976.92 73,439.50 77,075.21 80,892.70 Sch=PS1 WORKER II 5,556.60 5,831.41 6,119.96 6,422.93 6,741.06 1,282.29 1,345.71 1,412.30 1,482.22 1,555.63

32.05732 33.64275 35.30745 37.05539 38.89072
403 19 MAINTENANCE 70,060.11 73,526.85 77,166.92 80,989.00 85,002.18 Sch=PS1 WORKER III 5,838.34 6,127.24 6,430.58 6,749.08 7,083.52 1,347.31 1,413.98 1,483.98 1,557.48 1,634.66

33.68275 35.34945 37.09948 38.93702 40.86643

EXHIBIT A
255
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
442 22 MECHANIC 77,413.31 81,247.71 85,273.82 89,501.24 93,940.04 Sch=PS1 6,451.11 6,770.64 7,106.15 7,458.44 7,828.34
1,488.72 1,562.46 1,639.88 1,721.18 1,806.54

37.21794 39.06140 40.99703 43.02944 45.16348
440 23 MECHANIC SENIOR 84,168.63 88,340.79 92,721.56 97,321.37 102,151.17 Sch=PS1 7,014.05 7,361.73 7,726.80 8,110.11 8,512.60
1,618.63 1,698.86 1,783.11 1,871.56 1,964.45

40.46569 42.47153 44.57767 46.78912 49.11114
251 15 NEIGHBORHOOD 92,469.59 97,056.79 101,873.36 106,930.76 112,241.03 Sch=M22 PRESERVATION OFFICER 7,705.80 8,088.07 8,489.45 8,910.90 9,353.42 1,778.26 1,866.48 1,959.10 2,056.36 2,158.48

44.45653 46.66192 48.97758 51.40902 53.96203
407 03 PARTS AND INVENTORY 65,049.31 68,265.51 71,642.51 75,188.37 78,911.52 Sch=PS1 CONTROL WORKER 5,420.78 5,688.79 5,970.21 6,265.70 6,575.96 1,250.95 1,312.80 1,377.74 1,445.93 1,517.53

31.27371 32.81996 34.44351 36.14825 37.93823
287 37 PERMIT TECHNICIAN 66,268.87 69,546.04 72,987.08 76,600.16 80,393.90 Sch=M22 5,522.41 5,795.50 6,082.26 6,383.35 6,699.49
1,274.40 1,337.42 1,403.60 1,473.08 1,546.04

31.86003 33.43560 35.08994 36.82700 38.65091
291 60 PERMIT TECHNICIAN II 70,856.89 74,363.46 78,045.37 81,911.36 85,970.66 Sch=M22 5,904.74 6,196.96 6,503.78 6,825.95 7,164.22
1,362.63 1,430.07 1,500.87 1,575.22 1,653.28

34.06581 35.75166 37.52181 39.38046 41.33205
252 38 PLAN CHECK ENGINEER 114,070.49 119,737.75 125,688.36 131,936.52 138,497.08 Sch=M22 9,505.87 9,978.15 10,474.03 10,994.71 11,541.42 2,193.66 2,302.65 2,417.08 2,537.24 2,663.41

54.84158 57.56623 60.42710 63.43102 66.58513
258 41 PLANNER, ASSISTANT 92,185.78 96,758.80 101,560.47 106,602.23 111,896.07 Sch=M22 7,682.15 8,063.23 8,463.37 8,883.52 9,324.67
1,772.80 1,860.75 1,953.09 2,050.04 2,151.85

44.32009 46.51865 48.82715 51.25107 53.79619
257 42 PLANNER, ASSOCIATE 106,602.23 111,896.07 117,454.60 123,291.06 129,419.34 Sch=M22 8,883.52 9,324.67 9,787.88 10,274.26 10,784.95
2,050.04 2,151.85 2,258.74 2,370.98 2,488.83

51.25107 53.79619 56.46856 59.27455 62.22084
261 22 PLANNER, SENIOR 111,896.09 117,454.62 123,291.08 129,419.36 135,854.06 Sch=M22 9,324.67 9,787.89 10,274.26 10,784.95 11,321.17 2,151.85 2,258.74 2,370.98 2,488.83 2,612.58

53.79620 56.46857 59.27456 62.22085 65.31445
231 43 POLICE CLERK 61,288.28 64,316.42 67,495.98 70,834.51 74,339.96 Sch=M22 5,107.36 5,359.70 5,624.67 5,902.88 6,195.00
1,178.62 1,236.85 1,298.00 1,362.20 1,429.61

29.46552 30.92136 32.44999 34.05505 35.74037

EXHIBIT A
256
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
229 20 POLICE CLERK, 64,316.49 67,496.05 70,834.58 74,340.03 78,020.77 Sch=M22 SENIOR 5,359.71 5,624.67 5,902.88 6,195.00 6,501.73 1,236.86 1,298.00 1,362.20 1,429.62 1,500.40

30.92139 32.45002 34.05509 35.74040 37.50999
230 52 POLICE CLERK, 76,197.57 79,971.18 83,933.47 88,093.88 92,462.30 Sch=M22 SUPERVISING 6,349.80 6,664.27 6,994.46 7,341.16 7,705.19 1,465.34 1,537.91 1,614.11 1,694.11 1,778.12

36.63345 38.44768 40.35263 42.35283 44.45303
237 55 POLICE IDENTIFICATION 77,663.04 81,509.92 85,549.15 89,790.34 94,243.59 Sch=M22 TECHNICIAN 6,471.92 6,792.49 7,129.10 7,482.53 7,853.63 1,493.52 1,567.50 1,645.18 1,726.74 1,812.38

37.33800 39.18746 41.12940 43.16843 45.30942
215 36 PROPERTY AND EVIDENCE 65,298.88 68,527.55 71,917.67 75,477.28 79,214.88 Sch=M22 SPECIALIST 5,441.57 5,710.63 5,993.14 6,289.77 6,601.24 1,255.75 1,317.84 1,383.03 1,451.49 1,523.36

31.39369 32.94594 34.57580 36.28715 38.08408
236 54 PROPERTY AND EVIDENCE 73,999.36 77,663.06 81,509.94 85,549.17 89,790.36 Sch=M22 SPECIALIST, SUPERVISING 6,166.61 6,471.92 6,792.50 7,129.10 7,482.53 1,423.06 1,493.52 1,567.50 1,645.18 1,726.74

35.57662 37.33801 39.18747 41.12941 43.16844
235 44 PUBLIC SAFETY 76,197.57 79,971.18 83,933.47 88,093.88 92,462.30 Sch=M22 DISPATCHER 6,349.80 6,664.27 6,994.46 7,341.16 7,705.19 1,465.34 1,537.91 1,614.11 1,694.11 1,778.12

36.63345 38.44768 40.35263 42.35283 44.45303
245 31 PUBLIC SAFETY 79,971.14 83,933.43 88,093.84 92,462.26 97,049.11 Sch=M22 DISPATCHER, SENIOR 6,664.26 6,994.45 7,341.15 7,705.19 8,087.43 1,537.91 1,614.10 1,694.11 1,778.12 1,866.33

38.44766 40.35261 42.35281 44.45301 46.65823
238 45 PUBLIC SAFETY 88,144.14 92,515.08 97,104.56 101,923.52 106,983.42 Sch=M22 DISPATCHER, SUPERVISING 7,345.35 7,709.59 8,092.05 8,493.63 8,915.29 1,695.08 1,779.14 1,867.40 1,960.07 2,057.37

42.37699 44.47840 46.68488 49.00169 51.43434
220 46 PURCHASING SPECIALIST 72,095.96 75,664.49 79,411.44 83,345.75 87,476.77 Sch=M22 6,008.00 6,305.37 6,617.62 6,945.48 7,289.73
1,386.46 1,455.09 1,527.14 1,602.80 1,682.25

34.66152 36.37716 38.17858 40.07007 42.05614
233 65 RECYCLING SPECIALIST 82,142.92 86,213.79 90,488.22 94,976.36 99,688.90 Sch=M22 6,845.24 7,184.48 7,540.69 7,914.70 8,307.41
1,579.67 1,657.96 1,740.16 1,826.47 1,917.09

39.49179 41.44894 43.50395 45.66171 47.92736
214 49 SENIOR CLERK 59,737.92 62,688.54 65,786.70 69,039.77 72,455.48 Sch=M22 4,978.16 5,224.05 5,482.23 5,753.31 6,037.96
1,148.81 1,205.55 1,265.13 1,327.69 1,393.37

28.72015 30.13872 31.62822 33.19220 34.83437

EXHIBIT A
257
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
405 39 TRAFFIC SIGNAL 67,468.14 70,805.28 74,309.27 77,988.46 81,851.62 Sch=PS1 TECHNICIAN TRAINEE 5,622.35 5,900.44 6,192.44 6,499.04 6,820.97 1,297.46 1,361.64 1,429.02 1,499.78 1,574.07

32.43661 34.04100 35.72561 37.49445 39.35174
406 24 TRAFFIC SIGNAL 72,140.14 75,710.87 79,460.15 83,396.89 87,530.47 Sch=PS1 TECHNICIAN 6,011.68 6,309.24 6,621.68 6,949.74 7,294.21 1,387.31 1,455.98 1,528.08 1,603.79 1,683.28

34.68276 36.39946 38.20200 40.09466 42.08196
408 53 TRAFFIC SIGNAL 75,710.99 79,460.26 83,397.00 87,530.58 91,870.85 Sch=PS1 TECHNICIAN, SENIOR 6,309.25 6,621.69 6,949.75 7,294.22 7,655.90 1,455.98 1,528.08 1,603.79 1,683.28 1,766.75

36.39951 38.20205 40.09471 42.08201 44.16868
248 53 TRANSPORTATION 114,167.48 119,839.59 125,795.30 132,048.80 138,614.98 Sch=M22 ENGINEER, ASSOCIATE 9,513.96 9,986.63 10,482.94 11,004.07 11,551.25 2,195.53 2,304.61 2,419.14 2,539.40 2,665.67

54.88821 57.61519 60.47851 63.48500 66.64182
211 50 TYPIST CLERK 55,638.34 58,383.99 61,266.92 64,293.99 67,472.42 Sch=M22 4,636.53 4,865.33 5,105.58 5,357.83 5,622.70
1,069.97 1,122.77 1,178.21 1,236.42 1,297.55

26.74920 28.06923 29.45525 30.91057 32.43866
396 44 WASTEWATER COLLECTIONS 55,328.92 58,059.09 60,925.77 63,935.79 67,096.31 Sch=PS1 SYSTEMS TRAINEE 4,610.74 4,838.26 5,077.15 5,327.98 5,591.36 1,064.02 1,116.52 1,171.65 1,229.53 1,290.31

26.60044 27.91302 29.29124 30.73836 32.25784
397 45 WASTEWATER COLLECTIONS 62,099.06 65,167.74 68,389.85 71,773.07 75,325.46 Sch=PS1 SYSTEMS WORKER I 5,174.92 5,430.65 5,699.15 5,981.09 6,277.12 1,194.21 1,253.23 1,315.19 1,380.25 1,448.57

29.85532 31.33064 32.87974 34.50628 36.21416
398 46 WASTEWATER COLLECTIONS 66,679.23 69,976.92 73,439.50 77,075.21 80,892.70 Sch=PS1 SYSTEMS WORKER II 5,556.60 5,831.41 6,119.96 6,422.93 6,741.06 1,282.29 1,345.71 1,412.30 1,482.22 1,555.63

32.05732 33.64275 35.30745 37.05539 38.89072
399 47 WASTEWATER COLLECTIONS 70,060.11 73,526.85 77,166.92 80,989.00 85,002.18 Sch=PS1 SYSTEMS WORKER III 5,838.34 6,127.24 6,430.58 6,749.08 7,083.52 1,347.31 1,413.98 1,483.98 1,557.48 1,634.66

33.68275 35.34945 37.09948 38.93702 40.86643
445 15 WATER DISTRIBUTION 59,151.14 62,072.43 65,139.79 68,360.51 71,742.27 Sch=PS1 OPERATOR TRAINEE 4,929.26 5,172.70 5,428.32 5,696.71 5,978.52 1,137.52 1,193.70 1,252.69 1,314.63 1,379.66

28.43805 29.84251 31.31721 32.86563 34.49148
446 32 WATER DISTRIBUTION 66,395.96 69,679.48 73,127.18 76,747.28 80,548.37 Sch=PS1 OPERATOR I 5,533.00 5,806.62 6,093.93 6,395.61 6,712.36 1,276.85 1,339.99 1,406.29 1,475.91 1,549.01

31.92113 33.49975 35.15730 36.89773 38.72518

EXHIBIT A
258
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
447 33 WATER DISTRIBUTION 76,246.53 80,022.59 83,987.45 88,150.55 92,521.80 Sch=PS1 OPERATOR II 6,353.88 6,668.55 6,998.95 7,345.88 7,710.15 1,466.28 1,538.90 1,615.14 1,695.20 1,779.27

36.65699 38.47240 40.37858 42.38007 44.48163
448 34 WATER DISTRIBUTION 82,288.20 86,366.34 90,648.40 95,144.55 99,865.50 Sch=PS1 OPERATOR III 6,857.35 7,197.20 7,554.03 7,928.71 8,322.13 1,582.47 1,660.89 1,743.24 1,829.70 1,920.49

39.56163 41.52228 43.58096 45.74257 48.01226
470 05 WATER DISTRIBUTION 86,366.36 90,648.42 95,144.57 99,865.52 104,822.53 Sch=PS1 SENIOR OPERATOR 7,197.20 7,554.04 7,928.71 8,322.13 8,735.21 1,660.89 1,743.24 1,829.70 1,920.49 2,015.82

41.52229 43.58097 45.74258 48.01227 50.39545
469 06 WATER DISTRIBUTION 94,930.46 99,640.72 104,586.48 109,779.54 115,232.25 Sch=PS1 SUPERVISING OPERATOR 7,910.87 8,303.39 8,715.54 9,148.30 9,602.69 1,825.59 1,916.17 2,011.28 2,111.15 2,216.00

45.63964 47.90419 50.28196 52.77863 55.40012
456 37 WATER RESOURCES 87,483.43 91,821.32 96,376.12 101,158.66 106,180.32 Sch=PS1 COORDINATOR 7,290.29 7,651.78 8,031.34 8,429.89 8,848.36 1,682.37 1,765.79 1,853.39 1,945.36 2,041.93

42.05934 44.14487 46.33467 48.63397 51.04823
463 25 WR INSTRUMENT 81,809.70 85,863.91 90,120.84 94,590.61 99,283.88 Sch=PS1 CONTROL TECHNICIAN 6,817.48 7,155.33 7,510.07 7,882.55 8,273.66 1,573.26 1,651.23 1,733.09 1,819.05 1,909.31

39.33159 41.28073 43.32733 45.47625 47.73263
462 26 WR LABORATORY 72,333.59 75,914.01 79,673.44 83,620.84 87,765.62 Sch=PS1 TECHNICIAN 6,027.80 6,326.17 6,639.45 6,968.40 7,313.80 1,391.03 1,459.88 1,532.18 1,608.09 1,687.80

34.77576 36.49712 38.30454 40.20233 42.19501
458 27 WR MECHANIC I 74,481.86 78,169.68 82,041.89 86,107.71 90,376.83 Sch=PS1 6,206.82 6,514.14 6,836.82 7,175.64 7,531.40
1,432.34 1,503.26 1,577.73 1,655.92 1,738.02

35.80859 37.58158 39.44322 41.39794 43.45040
459 28 WR MECHANIC II 83,740.44 87,891.18 92,249.47 96,825.67 101,630.67 Sch=PS1 6,978.37 7,324.27 7,687.46 8,068.81 8,469.22
1,610.39 1,690.22 1,774.03 1,862.03 1,954.44

40.25983 42.25538 44.35071 46.55080 48.86090
451 29 WR OPERATOR - GRADE I 75,733.92 79,484.34 83,422.29 87,557.13 91,898.71 Sch=PS1 6,311.16 6,623.70 6,951.86 7,296.43 7,658.23
1,456.42 1,528.55 1,604.27 1,683.79 1,767.28

36.41054 38.21363 40.10687 42.09477 44.18207
453 48 WR OPERATOR - GRADE II 79,474.28 83,411.72 87,546.04 91,887.06 96,445.15 Sch=PS1 6,622.86 6,950.98 7,295.50 7,657.26 8,037.10
1,528.35 1,604.07 1,683.58 1,767.06 1,854.71

38.20879 40.10179 42.08944 44.17647 46.36786

EXHIBIT A
259
CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E

CITY OF LIVERMORE

ASSOCIATION OF LIVERMORE EMPLOYEES
EFFECTIVE 10/11/2021
452 30 WR OPERATOR - GRADE III 85,884.42 90,142.37 94,613.22 99,307.60 104,236.71 Sch=PS1 7,157.04 7,511.86 7,884.44 8,275.63 8,686.39
1,651.62 1,733.51 1,819.49 1,909.76 2,004.55

41.29059 43.33768 45.48713 47.74404 50.11380
455 31 WR OPERATOR - TRAINEE 63,782.37 66,935.22 70,245.71 73,721.73 77,371.55 Sch=PS1 5,315.20 5,577.94 5,853.81 6,143.48 6,447.63
1,226.58 1,287.22 1,350.88 1,417.73 1,487.91

30.66460 32.18039 33.77198 35.44314 37.19786
457 49 WR SENIOR OPERATOR 90,155.51 94,627.02 99,322.10 104,251.93 109,428.26 Sch=PS1 7,512.96 7,885.59 8,276.84 8,687.66 9,119.02
1,733.76 1,819.75 1,910.04 2,004.84 2,104.39

43.34400 45.49376 47.75101 50.12112 52.60974
461 35 WR SOURCE CONTROL 83,352.07 87,483.41 91,821.30 96,376.10 101,158.64 Sch=PS1 INSPECTOR 6,946.01 7,290.28 7,651.78 8,031.34 8,429.89 1,602.92 1,682.37 1,765.79 1,853.39 1,945.36

40.07311 42.05933 44.14486 46.33466 48.63396
460 36 WR SOURCE CONTROL 79,448.03 83,384.16 87,517.10 91,856.68 96,413.24 Sch=PS1 TECHNICIAN 6,620.67 6,948.68 7,293.09 7,654.72 8,034.44 1,527.85 1,603.54 1,683.02 1,766.47 1,854.10

38.19617 40.08854 42.07553 44.16187 46.35252
464 50 WR SUPERVISING 99,091.95 104,010.27 109,174.51 114,596.97 120,290.54 Sch=PS1 OPERATOR 8,257.66 8,667.52 9,097.88 9,549.75 10,024.21 1,905.61 2,000.20 2,099.51 2,203.79 2,313.28

47.64036 50.00494 52.48775 55.09470 57.83199
952 51 YOUTH SERVICES CASE 79,051.78 82,968.10 87,080.24 91,397.98 95,931.62 Sch=M22 COORDINATOR 6,587.65 6,914.01 7,256.69 7,616.50 7,994.30 1,520.23 1,595.54 1,674.62 1,757.65 1,844.84

38.00566 39.88851 41.86550 43.94134 46.12097

EXHIBIT A
260
Schedule = P14

CLASS SALARY RANGE @ ANNUAL, MONTHLY, WEEKLY, HRLY RATES

CODE RANGE CLASSIFICATION STEP A STEP B STEP C STEP D STEP E 604 01 POLICE OFFICER 102,065.14 107,168.40 112,526.82 118,153.16 124,060.82 8,505.43 8,930.70 9,377.24 9,846.10 10,338.40
1962.79 2060.93 2163.98 2272.18 2385.79

49.06978 51.52327 54.09943 56.80440 59.64463
603 02 POLICE SERGEANT 127,003.32 133,353.49 140,021.16 147,022.22 154,373.33 10,583.61 11,112.79 11,668.43 12,251.85 12,864.44
2442.37 2564.49 2692.71 2827.35 2968.72

61.05929 64.11225 67.31787 70.68376 74.21795
606 03 POLICE TRAINEE 35.75003 - - - -
(Non-Sworn)

CITY OF LIVERMORE

POLICE OFFICER'S ASSOCIATION
EFFECTIVE 05/09/2022

2. LPOA May 9, 2022
3/25/2022 Page 1 of 1

EXHIBIT A
261

MANAGEMENT SALARY SCHEDULE
$7,216 - $16,449/month
Effective July 5, 2021
Class
Code Classification Monthly Salary Range
$13,158.43 - $16,448.04
119 Assistant Administrative Services Director*
100 Assistant City Attorney
132 Assistant Community Development Director
129 Assistant Public Works Director
124 City Engineer
$12,240.66 - $15,300.83
250 Assistant City Engineer
289 Building Official
218 Finance Manager
125 Maintenance and Golf Operations Manager
118 Planning Manager
$11,636.56 - $14,545.70
123 Housing & Human Services Manager
449 Water Resources Division Manager
$11,515.30 - $14,394.13
246 Senior Transportation Engineer
$11,049.86 - $13,812.33
283 Permit Center Manager
$11,027.64 - $13,784.55
253 Senior Civil Engineer
$10,895.92 - $13,619.89
269 Cyber Security Manager*
268 Information Technology Manager*
$10,717.20 - $13,396.50
127 Risk Manager
$10,578.56 - $13,223.20
472 Airport Manager
136 City Clerk
134 Housing Programs Manager
135 Human Services Programs Manager
297 Police Support Services Manager
259 Principal Planner
951 Youth and Family Services Manager - Clinical
$9,987.64 - $12,484.55
137 Assistant Finance Manager**
130 Assistant Library Director*
120 Economic Development Manager*
278 Inspection & Neighborhood Preservation Manager
450 Water Resources Operations Manager
474 Water Resources Technical Programs Manager
953 Youth and Family Services Manager - Programs

CITY OF LIVERMORE

EXHIBIT A
262

MANAGEMENT SALARY SCHEDULE
$7,216 - $16,449/month
Effective July 5, 2021
Class
Code Classification Monthly Salary Range

CITY OF LIVERMORE
$9,494.17 - $11,867.71
232 Information Technology Coordinator
148 Management Analyst, Senior
133 Public Works Manager
270 Systems Administrator
468 Water Distribution Operations Manager
$9,393.40 - $11,741.75
272 Construction Inspection Manager
$9,350.52 - $11,688.15
128 Deputy City Attorney
295 Police Business Services Manager
293 Police Facility & Equipment Manager
$8,873.51 - $11,091.89
217 Accounting Supervisor
131 Assistant City Clerk
150 Management Analyst II
298 Police Media & Community Relations Analyst*
126 Public Works Supervisor
$7,216.24 - $9,020.30
207 Deputy City Clerk
152 Management Analyst I
264 Supervising Librarian
466 Water Resources Communications Representative
*Added/Changed 8/2/2021
**Added 4/11/2022

EXHIBIT A
263
Class
Code Classification
113 Assistant City Attorney, Senior (Confidential) $14,186.62 - $17,733.27 104 Assistant to the City Manager (Confidential) $11,636.56 - $14,545.70 122 Human Resources Manager (Confidential) $12,240.66 - $15,300.83 154 Human Resources Analyst, Senior (Confidential) $9,494.17 - $11,867.71 155 Human Resources Analyst II (Confidential) $8,873.51 - $11,091.89 156 Human Resources Analyst I (Confidential) $7,216.24 - $9,020.30 149 Management Analyst, Senior (Confidential) $9,494.17 - $11,867.71 151 Management Analyst II (Confidential) $8,873.51 - $11,091.89 153 Management Analyst I (Confidential) $7,216.24 - $9,020.30

CITY OF LIVERMORE
Monthly Salary Range
Effective July 5, 2021
$7,216 - $17,734/month

MANAGEMENT CONFIDENTIAL SALARY SCHEDULE

EXHIBIT A
264

CITY OF LIVERMORE

POLICE MANAGEMENT SALARY SCHEDULE
$12,830 - $19,891/month
Effective July 5, 2021
Class
Code Classification Salary Range
605 Police Captain $15,912.39 - $19,890.48
602 Police Lieutenant $12,831.06 - $16,038.83

EXHIBIT A
265
Class
Code Classifications
216 Administrative Receptionist $4,779.70 - $5,974.62
203 Administrative Specialist I $5,532.36 - $6,915.45
227 Administrative Specialist II $6,222.13 - $7,777.66
200 Executive Assistant $7,965.27 - $9,956.59
226 Human Resources Clerk I $5,532.36 - $6,915.45
212 Human Resources Clerk II $6,086.22 - $7,607.77
219 Human Resources Technician $6,678.18 - $8,347.72
201 Law Office Supervisor $7,965.27 - $9,956.59
204 Legal Assistant $6,614.70 - $8,268.38
Monthly Salary Range

CITY OF LIVERMORE

CONFIDENTIAL SALARY SCHEDULE
$4,663 - $9,714/month
Effective July 5, 2021

EXHIBIT A
266
Class
Code Classification Monthly Salary Range
109 Administrative Services Director $15,343.01 - $19,178.76 103 Assistant City Manager $16,550.85 - $20,688.56
105 Community Development Director $15,343.01 - $19,178.76 106 Deputy City Manager** $12,837.50 - $16,448.04
114 Innovation and Economic Development Director $15,343.01 - $19,178.76 121 Library Services Director* $15,343.01 - $19,178.76
107 Police Chief $17,990.95 - $22,488.69
111 Public Works Director $15,343.01 - $19,178.76

CITY OF LIVERMORE

EXECUTIVE MANAGEMENT SALARY SCHEDULE
$12,837.50 - $22,488.69/month
Effective December 6, 2021

EXHIBIT A
267

CITY OF LIVERMORE

APPOINTED MANAGEMENT
Class
Code Classification Annual Salary Effective
102 City Manager $296,851 12/6/2021
112 City Attorney $279,010 12/6/2021

EXHIBIT A
268

CITY OF LIVERMORE

UNCLASSIFIED AND HOURLY SALARY SCHEDULE
Class
Code Classification Salary Range Effective Date
210 Department Assistant $15.00 - $25.25 Hourly 12/20/21 438 Field/Maintenance Aide $15.00 - $25.25 Hourly 12/20/21 240 Law Clerk $15.00 - $25.00 Hourly 07/05/99
915 Temporary Librarian $19.00 - $23.50 Hourly 05/11/07 916 Temporary Library Assistant $17.00 - $22.50 Hourly 05/11/07 917 Temporary Library Clerk $15.75 - $19.00 Hourly 05/11/07 920 Library Aide $15.00 Hour 12/20/21
961 Police Cadet $15.00 - $19.00 Hourly 12/20/21
963 Reserve Police Officer Hourly equivalent to Police Officer Step A 956 Special Projects Coordinator $20.00 - $100.00 Hourly 12/20/21

EXHIBIT A
269

CITY COUNCIL STAFF REPORT
ITEM NO. 4.14

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Christine Martin, Assistant City Manager
SUBJECT:

Resolution terminating the proclamation of local emergency (COVID-19) and the temporary suspension and revision of the City Council Meeting Rules of Procedure in Response to the COVID-19 pandemic

RECOMMENDED ACTION

Staff recommends City Council adopt a resolution terminating the proclamation of local emergency, the temporary suspension and revision of the City Council Meeting Rules of Procedure, and all unexpired emergency orders, declared in response to the spread of COVID-19.

SUMMARY
On March 16, 2020, the City Council adopted a resolution ratifying the Proclamation of the Director of Emergency Services concerning the existence of a local emergency (Resolution No. 2020-033). From March 16, 2020 through March 28, 2022, consistent with California Government Code section 8630, the City Council adopted resolutions of continuing local emergency at least once every 60 days. The local emergency was required for both public safety and to engage assistance from county, state, and federal resources.

While it is evident that health risks from COVID-19 continue and some protective measures against that risk will need to remain in place, the actual and threatened condition of extreme peril to the safety of persons within the City of Livermore due to spread of COVID-19 no longer exists and there is no need to further extend the state of local emergency. The termination of the local emergency warrants the termination of the temporary suspension and revision of the City Council Meeting Rules of Procedure in response to the COVID-19 pandemic.

DISCUSSION
An outbreak of coronavirus disease (COVID-19) caused by the novel coronavirus (SARS-CoV-2) began in Wuhan, Hubei Province, China in December 2019, and has now spread throughout the world.

On March 1, 2020, the Health Officer of Alameda County declared a public health emergency throughout 270
the County of Alameda.

On March 4, 2020, the Governor of California proclaimed that a state of emergency exists in California after making determinations that:

1 .

The conditions caused by COVID-19 are likely to require the combined forces of a mutual aid region or regions to appropriately respond; and,
2 .

Local authority is inadequate to cope with the threat posed by COVID-19.

On March 12, 2020, the Alameda County Department of Public Health confirmed evidence of community-acquired transmission.

On March 13, 2020, the President of the United States of America declared a national state of emergency in response to the spread of COVID-19 within the United States of America.

On March 13, 2020, the City Manager declared a Local Emergency. The declaration was based upon the Alameda County Department of Health confirming evidence of community-acquired transmission within Alameda County and the President of the United States declaring a National state of emergency.

On March 16, 2020, the City Council adopted a resolution ratifying the declaration of local emergency (Resolution No. 2020-033).

On June 8, July 27, September 14, November 9, December 14, 2020, February 8, March 22, May 10, June 28, July 26, September 13, October 25, November 22, December 13, 2021, January 10, February 14, February 28, and March 14, 2022, the City Council adopted resolutions of continued local emergency (Resolution Nos. 2020-78, 2020-133, 2020-166, 2020-207, 2020-235, 2021-018, 2021-037, 2021-063, 2021-112, 2021-140, 2021-155, 2021-179, 2021-195, 2021-217, 2022-006, 2022-016, 2022-022, and 2022-027 respectively).

In addition, the City Council also adopted resolutions to temporarily suspend and revise its Meeting Rules of Procedure in response to the COVID-19. The rules were first modified by Resolution No. 2020- 061, which was later repealed and replaced by Resolution No. 2021-139.

For the past two years, the City has balanced pandemic response with ongoing local government operations. The City has executed numerous local emergency orders, shifted to virtual City Council and advisory body meetings, collaborated with Alameda County to bring vaccine and testing resources to Livermore, consistently reported to the City Council on the state of the pandemic in Livermore, and engaged staff in their capacity as Disaster Service Workers, among many other activities. Consistent with state and federal mandates, the City scaled emergency response to continuously evolving public health needs. The local emergency was required for public safety to support rapid decision-making in response to a rapidly evolving emergency situation, and to engage assistance from county, state, and federal resources.

All Emergency Orders that depend on the local emergency will also be terminated by this action.

Emergency Order 20-5.1 (addressing outdoor dining) is the only Order currently in effect. New permanent regulations related to outdoor dining will be considered with a separate agenda item at this same meeting.
271
Health risks from COVID-19 continue, as evidenced by the emergence of new variants and continued reliance on health systems. However, at this point in the COVID-19 response, with vaccines, boosters, and testing widely available to the public and treatment options expanding, staff recommends the City Council end the state of declared local emergency, and the temporary changes to its Meeting Rules of Procedure in response to the COVID-19 pandemic.

FISCAL AND ADMINISTRATIVE IMPACTS

There are no fiscal or administrative impacts associated with the resolution.

ATTACHMENTS

1. Resolution

Prepared by: Christine Martin
Assistant City Manager

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA A RESOLUTION TERMINATING THE CITY OF LIVERMORE’S

PROCLAMATION OF LOCAL EMERGENCY AND ALL UNEXPIRED
EMERGENCY ORDERS, AND TERMINATING RESOLUTION 2021-139
(COVID-19)
In December 2019, an outbreak of coronavirus disease 2019 (COVID-19) caused by the 2019 novel coronavirus (SARS-CoV-2) began in Wuhan, Hubei Province China, and then spread throughout China and to numerous other countries and territories, including the United States.

In March of 2020, in response to the spread of COVID-19 the President of the United States of America declared a national state of emergency, the Alameda County Health Officer declared a countywide health emergency, and the Governor for the State of California proclaimed a statewide state of emergency.

On March 13, 2020, based upon the national, state, and county declarations of emergency in response to the spread of COVID-19, and following the notification of an outbreak and person-to-person transmission of COVID-19 in Alameda County, the Director of Emergency Services for the City of Livermore determined pursuant to Livermore Municipal Code sections 2.56.020 and 2.56.060 that COVID-19 presented an actual and threatened condition of extreme peril to the safety of persons within the City, and he proclaimed the existence of a local emergency.

On March 16, 2020, the City Council adopted Resolution No. 2020-033 Ratifying the Proclamation of the Director of Emergency Services Concerning the Existence of a Local Emergency.

On July 26, 2021, the City Council adopted Resolution No. 2021-139 to temporarily suspend and revised certain portions of the City Council Meeting Rules of Procedure in response to the COVID-19 pandemic.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that it hereby finds the actual and threatened condition of extreme peril to the safety of persons within the City of Livermore due to the spread of COVID-19 no longer exists and that it hereby terminates the proclamation of local emergency ratified by Resolution No. 2020-033, effective immediately.

BE IT FURTHER RESOLVED by the City Council of the City of Livermore that all unexpired emergency orders issued by the Director of Emergency Services, and ratified by the City Council, based upon the now terminated proclamation of local emergency are likewise terminated, effective immediately.

BE IT FURTHER RESOLVED by the City Council of the City of Livermore that Resolution No. 2021-139, and its temporary suspension and revision of the City Council 273
RESOLUTION NO. _______
Meeting Rules of Procedure in response to the COVID-19 pandemic, is hereby terminated effective immediately.

On motion of Council Member seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Jason R. Alcala
Marie Weber Jason R. Alcala
City Clerk City Attorney
274

CITY COUNCIL STAFF REPORT
ITEM NO. 5.1

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Scott Lanphier, Public Works Director
SUBJECT:

Hearing to consider proposed Livermore Municipal Water rates and charges for calendar years 2023 through 2027

RECOMMENDED ACTION

Staff recommends that the City Council:
1 .

Conduct a public hearing for proposed water rates;
2 .

Determine if a majority protest exists; and
3 .

If a majority protest does not exist, adopt a resolution amending water rates and charges for calendar years 2023 through 2027.

SUMMARY
The City operates the Livermore Municipal Water distribution system as an Enterprise Fund which is designed to be funded through user fees with no General Fund support. The City recently retained the services of IB Consulting, LLC to review the utility’s financial position and recommend rates that are adequate to fund operation, maintenance, and replacement activities. Following completion of this cost of service study, staff provided the required public noticing as required by Proposition 218 to water customers which allows the submission of protests prior to the closing of the public hearing.

DISCUSSION
The City of Livermore’s water utility, Livermore Municipal Water, provides potable (drinking) water service to properties in northern and eastern Livermore and recycled water service to commercial properties in northwest Livermore. The potable water system stores and distributes water that is purchased from Zone 7 Water Agency (Zone 7). The recycled water system stores and distributes recycled water that is produced at the Livermore Water Reclamation Plant. Combined, these systems include 180 miles of pipe, six storage tanks, and six pump stations. The City of Livermore operates these two distribution systems as a single municipal Enterprise Fund. As an Enterprise Fund, the activities of Livermore Municipal Water activities are funded through user fees.

City service and distribution charges are used to fund the operation and maintenance (O&M) of the 275
distribution systems and to generate funds to replace system assets over time. These charges are not used to fund expansions of the distribution systems to serve new developments. Developers pay separate development and connection fees to fund any infrastructure needed to connect new developments to the existing distribution system.

The wholesale cost of purchasing water from Zone 7 has been funded by a direct "pass-through" of costs to potable water customers since 2012. Zone 7 wholesale water costs include both fixed and variable components, which appear as separate line items on customer bills. Staff recommends that Council approve the continuation of the "pass-through" Zone 7 wholesale water costs for an additional 5-year period. Livermore Municipal Water provides its customers with a notice at least 30 days prior to Zone 7 rate adjustments taking effect.

Every five years City staff and financial consultants review Livermore Municipal Water’s current financial position and recommend rate adjustments when necessary. City Council last approved potable and recycled water rates in August 2017, setting rates for fiscal years 2017-18 through 2021-22. The City recently retained the services of IB Consulting, LLC (Consultant) to review the utility’s financial position and recommend rates that are adequate to fund operation, maintenance, and replacement activities.

After completing an evaluation of the revenue requirements of the utility, the Consultant completed a cost-of-service study. This cost-of-service study functionalizes the various costs incurred by the utility and recommends a methodology by which to recover the required revenue.

Staff and the Consultant agree that Livermore Municipal Water is currently in a strong financial position with healthy operational and capital reserves. If the proposed rates are approved, the utility will use some reserve balance over the course of the next five years to minimize rate increases while continuing to meet the target reserve levels set in the City’s fund balance policy. This policy requires minimum operational reserves equal to 120 days of operational costs and minimum capital reserves equal to two years of depreciation.

Proposition 218, passed by voters in 1996, gives property owners the right to protest increases in property-related fees. To meet this mandate, staff prepared a notice of public hearing which included all of the proposed rates and charges and distributed it to customers and property owners via US Mail on February 25, 2022. If a majority of the properties served (approximately 4,700) submit protest letters prior to the conclusion of the public hearing, the proposed rates may not be adopted by the Council.

The proposed rate structure is almost identical to the existing structure, aside from a proposed change to the multi-family property rate structure. Staff recommends that multi-family properties be converted from a two-tier structure to a uniform rate in which each unit of water is the same cost. This will improve the equity of the rates since multi-family complexes can vary widely in size and usage.

Staff also recommends that the City change the effective date of Livermore Municipal Water rate adjustments from July 1st to January 1st each year to align with potential Zone 7 pass-through rate changes. This will mean that Livermore Municipal Water customers will only see one rate change per year instead of the current two changes per year.

The proposed rate adjustments will result in approximately 2% increases per year following equity adjustments in the first year. Since customer bills are composed of City and Zone 7 charges, the overall impacts to customers from these City changes will be about 1% increase to their total bill (as noted in the rate study). During the first year of rate changes, the dollar impact will vary by water use, account type, 276
and meter size. Over 90% of the properties in Livermore Municipal Water’s service area are single-family homes. These property types use an average of 13 units of water per month. A single-family home that uses 13 units of water would see a total increase of $2.04 per month on its water bill (moving from $93.22 to $95.26 per month). However, a single-family home that only used seven units of water per month would see an increase of about $0.78 per month on its water bill. Multi-family complexes will see minor reductions in their bills during the first year, assuming similar water use patterns. Non-residential customers with monthly use of 70 units of water would see an increase of about $9.82 per month (1.7% of their bill).

FISCAL AND ADMINISTRATIVE IMPACTS

The proposed rates will increase water revenue, leading to about $1 million more revenue per year in fiscal year 2026-27 compared to fiscal year 2021-22. This will allow Livermore Municipal Water to continue to fully fund all operational expenses, set aside funds for future capital improvements, and meet all required minimum reserve levels over the next five years.

When setting aside the pass through revenues and expenditures associated with the purchase of water from Zone 7, staff estimates that total reserve balances will reduce over the five year rate period by approximately $600,000 per year in a structured approach to slowly spend down reserves that are above the targeted amounts. This will help ensure rate stability in future terms.

The attached rate study includes an annual inflation in overall expenditures of approximately 2.9% (inflation in the model is calculated for each major category of expenses based on historical data).

Overall reserve balances may also be further reduced by increased inflation in the costs of goods and services.

Staff does not anticipate any administrative impacts should the proposed rates be adopted.

ATTACHMENTS

1. Protest Letters Received

2. Resolution

3. Exhibit A - Water Rate Study

Prepared by: Anthony Smith
Management Analyst II

Approved by:
____________________________________
Marc Roberts
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
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ATTACHMENT 1
280
RESOLUTION NO. ________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA A RESOLUTION ADOPTING THE APRIL 2022 WATER RATE STUDY,

APPROVING WATER RATE INCREASES AS IDENTIFIED IN THE STUDY,

AND AMENDING WATER RATES AND CHARGES FOR CALENDAR
YEARS 2023 THROUGH 2027
The City of Livermore operates the municipal water system as an Enterprise fund with all costs being borne by the users of this system.

Water rates and charges must be adjusted to continue to provide adequate financial resources to operate, maintain, and replace the municipal water system.

Council action is also required to continue to pass through all costs related to the wholesale purchase of water from the Zone 7 Water Agency and to pass through future increases on Zone 7 costs beginning on January 1, 2023, and continuing for five years.

IB Consulting, LLC, in conjunction with City staff has completed a comprehensive cost of service study which identifies the revenue necessary to fund expected expenditures of the municipal water system.

The April 2022 Water Rate Study, attached as Exhibit A, is complete and indicates the need to increase the rates for the City’s water service charges and to establish surcharges that may be implemented when necessary to safeguard against significant financial losses resulting from reductions in water usage by City customers as a result of declared water shortage conditions to enable the water utility to meet its projected operations and maintenance costs, including debt service obligations and capital repair and replacement costs;
Notices for a public hearing were distributed in late February 2022, to all property owners and current customers being served by the Livermore Municipal Water system as required by the provisions of Proposition 218.

The notices were mailed on February 25, 2022, to approximately 13,000 affected customers and property owners representing approximately 9,500 parcels.

Notice of the time and place of the public hearing was published in The Valley Times on March 29, 2022, and April 5, 2022, and the Water Rate Study with the calculated rates was made available on the City’s website on February 25, 2022, and placed on file with the City Clerk.

The City Council conducted a public hearing on this matter on April 11, 2022, not less than forty-five days after the notice was mailed, and at the public hearing, the City Council heard all oral testimony and considered all written materials and written protests 281
RESOLUTION NO. ________
concerning the adoption and imposition of the proposed increases to rates for the water service charges.

At the close of the public hearing, the City did not receive written protests against the establishment and imposition of the proposed increases to the rates for water service charges from a majority of the affected property owners or tenants directly liable for the payment of the water service charges.

The City Council is authorized and has determined to approve the proposed water rate increase and act accordingly on the matter.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore, as follows:

1. The City Council has evaluated and adopts pursuant to Chapters 13.08,

13.16, 13.20, and 13.26 of the Livermore Municipal Code, the following deposits, meter testing fees, service reconnection fees, water rates, and charges for meters and water furnished by the City of Livermore:

DEPOSITS
The amount of deposit required for water service for an applicant who is not the owner of the premises shall be as follows:
5/8” or 3/4" Meter $100.00
1” or 1 1/2" Meter $100.00
2” or 3” Meter $200.00
4” or Larger Meter $400.00
The amount of deposit required for a temporary use hydrant meter shall be as follows:
1” Meter or Smaller $300.00
3” Meter or Larger $1,500.00
The cost of any damage to hydrant meters will be deducted from the deposit. Failure to return a meter will forfeit the total amount of the deposit.

METER TESTING FEES
The meter testing fee shall be $100.00 for meters up to and including 2 inches in size and $200.00 for meters large than 2 inches.

RECONNECTION FEES
The service reconnection fee shall be $60.00 for first-time restoration and $80.00 for any subsequent restoration in a 12-month period for all restorations during regular 282
RESOLUTION NO. ________
business hours of 8:00 a.m. to 5:00 p.m., Monday through Friday. The reconnection fee shall be $100.00 if the water meter is removed during regular business hours. The reconnection fee shall be $250.00 if reconnection occurs outside of normal business hours.

VOLUMETRIC RATES
These charges are per unit of water, which is equal to 100 cubic feet.

RECYCLED WATER
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Recycled Water $2.74 $2.77 $2.80 $2.83 $2.86
Recycled water volumetric rates are not affected by water shortage stages.

POTABLE WATER IN NORMAL SUPPLY CONDITIONS
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$1.35 $1.39 $1.43 $1.47 $1.51
Single Family
Residential
Tier 2 (8+ units)
$1.95 $2.00 $2.05 $2.10 $2.15
Multi-Family
Residential $1.58 $1.62 $1.66 $1.70 $1.74
Non-Residential* $1.55 $1.59 $1.63 $1.67 $1.71
Irrigation $1.76 $1.80 $1.84 $1.88 $1.92
*Temporary use of fire hydrant meters shall pay the non-residential rates. 283
RESOLUTION NO. ________
POTABLE WATER IN STAGE 1 SHORTAGE
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$1.54 $1.58 $1.63 $1.67 $1.72
Single Family
Residential
Tier 2 (8+ units)
$2.14 $2.19 $2.25 $2.30 $2.36
Multi-Family
Residential $1.77 $1.81 $1.86 $1.90 $1.95
Non-Residential $1.74 $1.78 $1.83 $1.87 $1.92
Irrigation $1.95 $1.99 $2.04 $2.08 $2.13
POTABLE WATER IN STAGE 2 SHORTAGE
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$1.76 $1.81 $1.87 $1.92 $1.97
Single Family
Residential
Tier 2 (8+ units)
$2.36 $2.42 $2.49 $2.55 $2.61
Multi-Family
Residential $1.99 $2.04 $2.10 $2.15 $2.20
Non-Residential $1.96 $2.01 $2.07 $2.12 $2.17
Irrigation $2.17 $2.22 $2.28 $2.33 $2.38
284
RESOLUTION NO. ________
POTABLE WATER IN STAGE 3 SHORTAGE
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$2.05 $2.11 $2.17 $2.23 $2.29
Single Family
Residential
Tier 2 (8+ units)
$2.65 $2.72 $2.79 $2.86 $2.93
Multi-Family
Residential $2.28 $2.34 $2.40 $2.46 $2.52
Non-Residential $2.25 $2.31 $2.37 $2.43 $2.49
Irrigation $2.46 $2.52 $2.58 $2.64 $2.70
POTABLE WATER IN STAGE 4 SHORTAGE
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$2.44 $2.51 $2.58 $2.65 $2.72
Single Family
Residential
Tier 2 (8+ units)
$3.04 $3.12 $3.20 $3.28 $3.36
Multi-Family
Residential $2.67 $2.74 $2.81 $2.88 $2.95
Non-Residential $2.64 $2.71 $2.78 $2.85 $2.92
Irrigation $2.85 $2.92 $2.99 $3.06 $3.13
285
RESOLUTION NO. ________
POTABLE WATER IN STAGE 5 SHORTAGE
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$2.99 $3.07 $3.16 $3.24 $3.33
Single Family
Residential
Tier 2 (8+ units)
$3.59 $3.68 $3.78 $3.87 $3.97
Multi-Family
Residential $3.22 $3.30 $3.39 $3.47 $3.56
Non-Residential $3.19 $3.27 $3.36 $3.44 $3.53
Irrigation $3.40 $3.48 $3.57 $3.65 $3.74
POTABLE WATER IN STAGE 6 SHORTAGE
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
Single Family
Residential
Tier 1 (1-7 units)
$3.75 $3.86 $3.96 $4.07 $4.18
Single Family
Residential
Tier 2 (8+ units)
$4.35 $4.47 $4.58 $4.70 $4.82
Multi-Family
Residential $3.98 $4.09 $4.19 $4.30 $4.41
Non-Residential $3.95 $4.06 $4.16 $4.27 $4.38
Irrigation $4.16 $4.27 $4.37 $4.48 $4.59
286
RESOLUTION NO. ________

METER SERVICE CHARGES
The following are per month, per meter charges:

Meter Size
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
5/8” $22.92 $23.40 $23.88 $24.37 $24.86
3/4" $30.22 $30.89 $31.57 $32.26 $32.95
1” w/ Fireline $22.92 $23.40 $23.88 $24.37 $24.86
1” $44.81 $45.87 $46.94 $48.02 $49.12

1.5” D* $81.28 $83.32 $85.38 $87.46 $89.56

1.5” T** $95.87 $98.30 $100.75 $103.23 $105.73
2” D* $125.05 $128.26 $131.50 $134.77 $138.08
2” T** $146.94 $150.73 $154.56 $158.43 $162.34
3” $325.67 $334.24 $342.90 $351.64 $360.47
4” $555.46 $570.17 $585.03 $600.04 $615.20
6” $1,175.53 $1,206.82 $1,238.42 $1,270.34 $1,302.58
8” $2,050.93 $2,105.62 $ 2,160.86 $2,216.65 $2,273.00
10” $3,072.23 $3,154.22 $3,237.03 $3,320.67 $3,405.14
12” $3,874.68 $3,978.12 $4,082.59 $4,188.11 $4,294.68
*Displacement type meter
**Turbine type meter
Private fire protection service charges
The following are per month, per meter charges:

Meter Size
Effective
January 1,
2023
Effective
January 1,
2024
Effective
January 1,
2025
Effective
January 1,
2026
Effective
January 1,
2027
5/8” $1.27 $1.29 $1.31 $1.33 $1.35
3/4" $1.52 $1.54 $1.56 $1.58 $1.60
1” $2.02 $2.05 $2.08 $2.11 $2.14

1.5” $3.03 $3.07 $3.11 $3.15 $3.19
2” $4.04 $4.09 $4.14 $4.19 $4.24
3” $6.06 $6.13 $6.20 $6.27 $6.34
4” $8.08 $8.17 $8.26 $8.35 $8.44
6” $12.12 $12.25 $12.38 $12.51 $12.64
8” $16.16 $16.33 $16.50 $16.67 $16.84
10” $20.20 $20.41 $20.62 $20.83 $21.04
12” $24.24 $24.49 $24.74 $24.99 $25.24
287
RESOLUTION NO. ________

PASS-THROUGH CHARGES
The cost of purchasing water from the Zone 7 Water Agency will be passed through to Livermore Municipal Water customers for the period of January 1, 2023, through December 31, 2027. Adjustments to these pass-through charges will be made each year beginning on January 1. Variable rates will be passed through directly and fixed charges will be calculated on the number of active water meters using the same meter equivalent methodology used in the calculation of City meter service charges.

1. The Livermore City Council resolves to pass through without further Council action any increase in Zone 7 Water Agency rates for the five-year period beginning on January 1, 2023, through December 31, 2027.

2. The matters set forth above are true and correct statements and are made legislative findings and determinations of the City Council, and by this reference made an operative part of this Resolution.

3. The City Council has evaluated and adopts the water service charges at the maximum rates and on the effective dates set forth in Exhibit A to this Resolution and incorporated by this reference.

4. The City Council finds that the revenues derived from the water service charges established by this Resolution: (1) do not exceed the funds required to provide water services; (2) shall not be used for any other purpose than that for which the rates and charges are imposed; (3) do not exceed the proportional cost of the service attributable to each parcel upon which the charges are imposed; (4) provide services which are immediately available to the customer; and (5) are not levied for general governmental purposes.

5. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the City Council has determined that the increases in the water service charges are exempt from CEQA pursuant to Section 15378 and Section 15273 of the CEQA Guidelines and Public Resources Code section 21080(b)(8) because: (i) the increased charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services; and (ii) the charges constitute the creation of a funding mechanism/other governmental fiscal activity which does not involve any commitment to any specified project which may result in a potentially significant physical impact of the environment. The documents and materials that constitute the record of proceedings on which these findings have been based are located in the Office of the City Clerk located at 1052 South Livermore Avenue, Livermore, CA 94550. The custodian for these records is the City Clerk.

6. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. 288
RESOLUTION NO. ________
The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

7. All resolutions, ordinances, or administrative actions by the City Council, or parts thereof, that are inconsistent or in conflict with any provision of this Resolution, are hereby superseded only to the extent of such inconsistency or conflict.

8. The City Manager is authorized and directed to take all appropriate actions to carry out the purpose and intent of this Resolution and the approvals set forth herein.

9. This Resolution shall take effect immediately upon its adoption.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Tara M. Mazzanti
Marie Weber Tara M. Mazzanti
City Clerk Assistant City Attorney
Exhibit A – April 2022 Water Rate Study
289
IB Consulting, LLC
31938 Temecula Parkway, Suite A #350
Temecula, CA. 92592
Water Cost-of-Service Rate Study
Public Hearing
April 11, 2022

EXHIBIT A
290
City of Livermore – Water Rate Study

Page | 2

TABLE OF CONTENTS
Executive Summary ....................................................................................................................... 5 Water Enterprise .......................................................................................................................... 10 Financial Plan Overview .............................................................................................................. 15 Proposed Financial Plan .............................................................................................................. 23 Cost-of-Service Analysis .............................................................................................................. 27 Rate Design ................................................................................................................................. 35 Cost-Based Rates Summary........................................................................................................ 42 Appendix A – Conservation Surcharges ...................................................................................... 48

EXHIBIT A
291
City of Livermore – Water Rate Study
Page | 3
TABLES
Table 1: Proposed Monthly Fixed City Service Charges by Meter Size .......................................... 7 Table 2: Proposed Monthly Zone 7 Fixed Charges ....................................................................... 8 Table 3: Proposed Dedicated Fire Line Charges............................................................................ 8 Table 4: Proposed City Distribution Rates ...................................................................................... 9 Table 5: Proposed Zone 7 Variable Rates .................................................................................... 9 Table 6: Meters by Meter Size ..................................................................................................... 11 Table 7: FY 2022 Monthly Fixed Charges .................................................................................... 13 Table 8: FY 2022 Monthly Fire Line Charges ............................................................................... 13 Table 9: FY 20222022 Variable Rates ($/CCF) ............................................................................ 14 Table 10: Assumptions for Forecasting Revenues ....................................................................... 16 Table 11: Assumptions for Forecasting Expense Requirements .................................................. 16 Table 12: Calculated Rate Revenues ........................................................................................... 18 Table 13: Projected Revenues ..................................................................................................... 19 Table 14: Projected O&M Expenses ............................................................................................ 19 Table 15: Reserve Requirements and Targets ............................................................................. 20 Table 16: Proposed Financial Plan – Projected Reveues and Expenses Through FY 2027 ......... 24 Table 17: FY 2022 Revenue Requirements ................................................................................. 28 Table 18: System Peaking Factors and Distribution Basis ........................................................... 31 Table 19: Fire Flow Requirement within City’s Service Area ........................................................ 32 Table 20: Fire Flow Demand as Percentage of Max Day and Max Hour ...................................... 32 Table 21: Water Supply Expense Allocation to Cost Components (%) ......................................... 32 Table 22: Water Supply Expense Allocation to Cost Components ($) .......................................... 33 Table 23: O&M Expense Allocation to Cost Components (%) ...................................................... 33 Table 24: O&M Expense Allocation to Cost Components ($) ....................................................... 33 Table 25: Other Funding to Cost Components (%) ...................................................................... 34 Table 26: Other Funding Allocation to Cost Components ($) ....................................................... 34 Table 27: FY 2023 Cost-of-Service Requirements by Cost Component ....................................... 34 Table 28: Accounts and Meter Equivalents .................................................................................. 36 Table 29: Usage and Peaking Factors by Customer Class .......................................................... 36 Table 30: Usage (CCF) and Peaking Factors for Tiers................................................................. 37 Table 31: Zone 7 Calendar Year 2022 Fixed Cost Monthly Unit Rate .......................................... 38 Table 32: FY 2023 Account Services Monthly Unit Rate .............................................................. 38 Table 33: FY 2023 Meter Capacity Monthly Unit Rate.................................................................. 38 Table 34: FY 2023 Fire Flow Demand Allocations ....................................................................... 39 Table 35: FY 2023 Fire Flow Demand Monthly Unit Rate ............................................................ 39 Table 36: FY 2023 Dedicated Fire Line Monthly Unit Rate per Diameter Inch .............................. 40 Table 37: Zone 7 Calendar Year 2022 Supply Cost Unit Rate per CCF ....................................... 40 Table 38: FY 2023 Delivery Cost Unit Rate per CCF ................................................................... 40 Table 39: FY 2023 Peaking Allocation to Customer Classes........................................................ 41 Table 40: FY 2023 Peaking Unit Rate by Tier .............................................................................. 41 Table 41: FY 2023 Recycled Water Cost Unit Rate ..................................................................... 41 Table 42: FY 2023 City Service Charges by Meter Size ............................................................... 44 Table 43: FY 2023 Zone 7 Fixed Charges .................................................................................. 45 Table 44 FY 2023 Dedicated Fire Line Monthly Fixed Charges ................................................... 45

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Table 45: City Monthly Service Charges – FY 2023 through FY 2027 .......................................... 46 Table 46: Monthly Dedicated Fire Line Fixed Charges – FY 2023 through FY 2027 .................... 46 Table 47: FY 2023 Variable Rates by Customer Class and Tier .................................................. 47 Table 48: City Distribution Rates – FY 2023 through FY 2027 .................................................... 47 Table 49: Total Usage Reductions by Conservation Stage .......................................................... 48 Table 50: Usage Reductions by Customer Class and Tier ........................................................... 49 Table 51: Remaining Usage by Conservation Stage .................................................................... 49 Table 52: Projected Revenue and Potential Revenue Loss ......................................................... 50 Table 53: Water Loss Expense – Cost Savings ........................................................................... 50 Table 54: FY 2023 Net Impact from Conservation Stages ........................................................... 50 Table 55: FY 2023 Conservation Surcharges .............................................................................. 51 Table 56: FY 2024 Conservation Surcharges .............................................................................. 51 Table 57: FY 2025 Conservation Surcharges .............................................................................. 51 Table 58: FY 2026 Conservation Surcharges .............................................................................. 51 Table 59: FY 2027 Conservation Surcharges .............................................................................. 51

FIGURES
Figure 1: City of Livermore Water System.................................................................................... 10 Figure 2: Capital Improvement Plan ............................................................................................. 11 Figure 3: Water Sales .................................................................................................................. 12 Figure 4: Financial Plan Key Elements ........................................................................................ 15 Figure 5: Water Utility Reserves .................................................................................................. 20 Figure 6: Current Operating Financial Position ............................................................................ 21 Figure 7: Projected Ending Reserves at Existing Rates ............................................................... 22 Figure 8: Proposed Operating Position ........................................................................................ 25 Figure 9: Capital Improvement Plan with Funding Sources .......................................................... 25 Figure 10: Proposed Ending Reserves ........................................................................................ 26 Figure 11: Cost-of-Service Process ............................................................................................. 27 Figure 12: Cost Components ....................................................................................................... 29 Figure 13: Distribution Basis and Units of Service by Cost Component ....................................... 37

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Executive Summary
T
he City of Livermore (City) periodically reviews its rates to determine if adjustments are required to continue meeting its operational costs, system improvements, and to adequately fund reserves based on adopted reserve policies. The last cost-of-service study in 2017 set rates for Fiscal Year (FY) 2018 through FY 2022.

With the City at the end of its previously noticed rates, the City hired IB Consulting to conduct a comprehensive cost-of-service water rate study. This study was developed using industry recognized water rate setting principles and the base-extra capacity methodology outlined in the American Water Works Association (AWWA) M1 Manual (Base-Extra Capacity Methodology). In addition, this Report provides a basis for developing and implementing water rates which are cost-based, equitable and in compliance with the requirements of California Constitution Article XIII D, section 6 (Proposition 218).

The City’s Municipal Code (Municipal Code) also includes a Water Conservation Contingency Plan (Chapter

13.26) with six different conservation stages reflecting reduced water usage. The City Council may enact conservation surcharges during water shortage events to recover the appropriate amount of revenue to fund water system operations from a reduced volume of water sold. Therefore, conservation surcharges are included as Appendix A for each conservation stage.

This Report provides a proposed financial plan for the City’s water utility from FY 2023 through FY 2027 (Financial Plan Period) and corresponding rates for each fiscal year.

Water Utility
Updating the water utility’s long-term financial plan and performing a comprehensive cost-of-service analysis is a prudent business practice to ensure the City can fully fund its revenue needs through FY 2027 and beyond. As part of reviewing and updating water rates, the first step is to conduct a thorough review of the financial health of the City’s water utility. Based on a financial review of the water utility, the City is in a strong financial position with a healthy reserve balance that currently exceeds the recommended target. The capital replacement reserves have built up because of reduced annual capital spending than planned. However, the previously planned capital still remains outstanding, and as the City continues to address ongoing capital repair and replacement, capital replacement reserves will be utilized as a funding source. Therefore, the proposed financial plan includes an increase in capital spending and the use of capital replacement reserves as a primary funding source over the next ten years. Using reserves coupled with annual rate revenue to fund capital replacement will minimize rate increases and draw down reserves over the Financial Plan Period.

The City’s water rate structure includes a monthly fixed charge based on meter size and variable rates that differ by customer class. The City purchases water from Zone 7 Water Agency (Zone 7) and incurs annual fixed charges and variable costs based on total water purchased. Residential customers have a two-tiered rate structure. The Tier 1 allotment is seven hundred cubic feet (CCF), reflecting the minimum monthly winter usage as a proxy for indoor use as outdoor watering is minimal. The Tier 1 allotment is consistent with meeting State AB 1668 and SB 6060 efficiency targets to achieve 55 gallons per capita per day (gpcd) by 2023. Non- Residential, Irrigation, and Recycled customers have uniform rates.

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The proposed rate structure is similar to the existing rate structure with a slight adjustment to Multi-Family Residential customers. Multi-Family Residential will switch from a two-tiered rate structure to a uniform rate.

The change to the rate structure eliminates the need for the City to compile and keep track of dwelling units associated with each multi-family complex. In addition, certain multi-family complexes have multiple meters, which requires the City to assign the number of occupied dwelling units served by each meter.

The proposed financial plan within this Report projects revenue adjustments over the Financial Plan Period, with no adjustment in FY 2023 and 1% revenue adjustments each year for FY 2024 through FY 2027. Beyond the Financial Plan Period, the City will continue to use capital replacement reserves to fund a portion of its capital plan.

By adopting the proposed financial plan and approving rates through FY 2027, the utility will continue to generate positive net income above operating expenses, fully fund its capital projects and maintain healthy reserve balances. The 1% revenue adjustments over the Financial Plan Period, along with modest revenue adjustments between FY 2028 through FY 2031, will slowly increase annual rate revenue to cover capital spending as excess capital replacement reserves are used. This measured approach over the long term will mitigate future rate spikes and smooth out rate adjustments over multiple years.

The proposed rates have been incorporated into a Proposition 218 Notice and mailed to each customer. A Public Hearing is scheduled for April 11, 2022, on the proposed rates identified in Table 1 through Table 5.

Table 2 and Table 5 identify the current Zone 7 charges, and the City will continue to pass-through 1 any increases by Zone 7 for FY 2023 through FY 2027. If there’s not a majority protest, proposed rates for FY 2023 will go into effect on January 1, 2023, with subsequent adjustments occurring each January 1st thereafter.
1 Government Code 53756 allows an agency to authorize automatic adjustments that pass-through increases or decreases in wholesale charges for water established by the outside agency.

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Table 1: Proposed Monthly Fixed City Service Charges by Meter Size

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Table 2: Proposed Monthly Zone 7 Fixed Charges 2

Table 3: Proposed Dedicated Fire Line Charges

2 Zone 7 Fixed Charges shown in Table 2 are in currently in effect and applicable through December 2022. The Zone 7 Fixed Charges are subject to a pass-through from any adjustments by Zone 7 on January 1, 2023.

Zone 7 Fixed Meter Charges ($/Month)
Meter Size FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
5/8" $24.41
3/4" $36.62
1" w/Fire $24.41
1" $61.03
1 1/2" $122.05
1 1/2" T $146.46
2" $195.28
2" T $231.90
3" $530.92
4" $915.38
6" $1,952.80
8" $3,417.40
10" $5,126.10
12" $6,468.65
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
Fixed Dedicated Fire Line Charges ($/Month)
Connection Size FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 5/8" $1.27 $1.29 $1.31 $1.33 $1.35
3/4" $1.52 $1.54 $1.56 $1.58 $1.60
1" $2.02 $2.05 $2.08 $2.11 $2.14
1 1/2" $3.03 $3.07 $3.11 $3.15 $3.19
2" $4.04 $4.09 $4.14 $4.19 $4.24
3" $6.06 $6.13 $6.20 $6.27 $6.34
4" $8.08 $8.17 $8.26 $8.35 $8.44
6" $12.12 $12.25 $12.38 $12.51 $12.64
8" $16.16 $16.33 $16.50 $16.67 $16.84
10" $20.20 $20.41 $20.62 $20.83 $21.04
12" $24.24 $24.49 $24.74 $24.99 $25.24

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Table 4: Proposed City Distribution Rates

Table 5: Proposed Zone 7 Variable Rates 3

3 Zone 7 Variable Rate shown in Table 5 are currently in effect and applicable through December 2022. The Zone 7 Variable Rate is subject to a pass-through from any adjustments by Zone 7 on January 1, 2023.

Distribution Rates ($/CCF)
Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Single-Family
Tier 1 $1.35 $1.39 $1.43 $1.47 $1.51
Tier 2 $1.95 $2.00 $2.05 $2.10 $2.15
Multi-Family $1.58 $1.62 $1.66 $1.70 $1.74
Non-Residential $1.55 $1.59 $1.63 $1.67 $1.71
Irrigation $1.76 $1.80 $1.84 $1.88 $1.92
Recycled $2.74 $2.77 $2.80 $2.83 $2.86
Zone 7 Variable Rates ($/CCF)
Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Single-Family
Tier 1 $2.06
Tier 2 $2.06
Multi-Family $2.06
Non-Residential $2.06
Irrigation $2.06
Recycled N/A N/A N/A N/A N/A
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs
FY 2023 Charge + Annual Pass-Throughs

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Water Enterprise
Water System
The City provides potable and recycled water service to portions of the City, located in the eastern part of Alameda County in the Tri-Valley. The City’s water service area consists of three water service area zones:

Zone 1 is west of Isabel Avenue and covers portions on both sides of the I-580 freeway; Zone 2 is on the eastern side of the City north of I-580; and Zone 3 is on the eastern side of the City, south of I-580. The remaining areas of the City are served by California Water Service Company (Cal Water). The City serves a population of around 31,000 residents through approximately 10,000 potable and recycled connections. The City receives all of its potable water from Zone 7. The water system spans approximately 190 miles of transmission and distribution lines ranging from 2” to 24” in diameter. Recycled water is produced by the City’s Water Reclamation Plant and serves 15 business connections within Zone 1.

Figure 1: City of Livermore Water System

The City prepared an Asset Management Plan in 2016 (Asset Management Plan) and a Water Master Plan in 2017 (Master Plan). Through these two studies, the City developed a detailed Capital Improvement Plan (CIP) through FY 2025, with $3.5M in future years based on the Asset Management Plan. The City’s average annual capital spending has been less than $3.5M, and capital replacement reserves have increased above the recommended target. Therefore, the City plans to draw down its capital replacement reserve as part of the proposed financial plan over the next 5-10 years. Figure 2 shows the City’s capital plan through FY 2031. 190 miles of pipeline 31,000 population
Water Supply
Zone 7 9,957 meters
Water
System

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Figure 2: Capital Improvement Plan

Customers
The City serves 9,957 meters, with approximately 87% of accounts classified as Residential. Table 6 provides a summary of meters by meter size.

Table 6: Meters by Meter Size

Meter Size
Number of
Meters
5/8" 4,239
3/4" 102
1" w/Fire 4,482
1" 420
1 1/2" 219
1 1/2" T 105
2" 273
2" T 80
3" 28
4" 7
6" 1
8" -
10" -
12" 1
Total 9,957

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In 2015 the State issued mandatory conservation requirements to combat the effects of the prolonged drought on California’s water supplies. City customers responded by significantly reducing their water consumption.

Since eliminating the mandatory conservation, sales have slowly rebounded through FY 2019. FY 2020 and FY 2021 were impacted by the COVID-19 pandemic with an increase in residential water usage from “stay- at-home orders” and a larger remote workforce. Figure 3 shows historical and projected purchased water in Acre-Feet (AF). For FY 2022 and beyond, a slight reduction from FY 2021 is assumed and equals 6,531 AF of purchased water.

Figure 3: Water Sales

As previously mentioned, the existing rate structure consists of a monthly fixed meter charge and variable rates that vary by customer class. Current monthly fixed charges are identified in Table 7 and Table 8 , followed by variable rates shown in Table 9.

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Table 7: FY 2022 Monthly Fixed Charges

Table 8: FY 2022 Monthly Fire Line Charges

Fixed Meter Charges ($/Month)
Meter Size
City
Service Charge
Zone 7
Fixed Charge
5/8" $22.85 $24.40
3/4" $30.46 $36.60
1" w/Fire $22.85 $24.40
1" $45.66 $61.00
1 1/2" $83.68 $122.00
1 1/2" T $98.89 $146.40
2" $129.31 $195.20
2" T $152.12 $231.80
3" $338.42 $530.70
4" $577.95 $915.00
6" $1,224.29 $1,952.00
8" $2,136.79 $3,416.00
10" $3,201.35 $5,124.00
12" $3,838.11 $6,466.00
Fire Line Charges ($/Month)
Connection Size Fixed Charge
1" $2.82
1 1/2" $4.23
2" $5.63
3" $8.44
4" $11.25
6" $16.86
8" $22.48
10" $28.08

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Table 9: FY 2022 Variable Rates ($/CCF)

Variable Rates ($/CCF)
Customer Class
City
Distribution
Rates
Zone 7
Variable
Rate
Single-Family
Tier 1 $1.25 $2.06
Tier 2 $1.74 $2.06
Multi-Family $1.25 $2.06
Non-Residential $1.35 $2.06
Irrigation $1.74 $2.06
Recycled $3.30 N/A

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Financial Plan Overview

Financial Planning
Financial planning incorporates numerous considerations, including projecting revenues and forecasting expected costs using various inflationary adjustments. Utilities also need to account for changes in water demand driven by variations in weather, water availability, state mandates, growth, and economic factors. In addition, system maintenance and reinvestment, reserves, and debt compliance all influence the revenues needed in future years. Therefore, a comprehensive financial plan reviews the following:
1) Historical water sales and consumption patterns to determine an appropriate usage level for projecting future water demands.
2) Operational costs that may change over the planning period because of inflation and any new expenditures added to meet strategic goals, state mandates, or changes in operations. 3) Multi-year system improvement needs and scheduling based on priority. This review also considers available funding sources to complete projects such as pay-as-you-go (PAYGO), grants, loans, and debt financing.
4) Reserve funding to meet adopted reserve policies. The goal is to generate adequate cash on hand to mitigate financial risks related to operating cashflow needs, unexpected increases in expenses, shortages in system reinvestment, and mitigating potential system failures.

Figure 4 illustrates the key elements when developing a long-term financial plan.

Figure 4: Financial Plan Key Elements

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Financial Planning Assumptions
Developing a long-term financial plan requires understanding the utility’s financial position by evaluating existing revenue streams, ongoing expenses, how those expenses will change over time, existing debt requirements, and reserve policies. With these considerations, certain assumptions are required for projecting revenues, expenses, and expected ending fund balances. Through discussions with staff and their understanding of historical budget data and future obligations, Table 10 identifies assumptions used for forecasting revenues. Table 11 identifies assumptions used to forecast expense increases over the Financial Plan Period. Increases in purchased water are not assumed as the City will capture any increases or decreases from Zone 7 rate adjustments through a direct pass-through.

Table 10: Assumptions for Forecasting Revenues

Table 11: Assumptions for Forecasting Expense Requirements

Key Assumptions FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Revenue Escalation
Non-Rate Revenues 0% 0% 0% 0% 0% 0%
Reserve Interest 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
Account Growth 0% 0% 0% 0% 0% 0%
Water Sales (CCF) 2,860,942 2,860,942 2,860,942 2,860,942 2,860,942 2,860,942 Key Assumptions FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Expenditure Escalation
Benefits Budget Budget 3.0% 3.0% 3.0% 3.0%
Capital Construction Budget Budget 3.2% 3.2% 3.2% 3.2%
Energy Costs Budget Budget 5.0% 5.0% 5.0% 5.0%
General Costs Budget Budget 2.4% 2.4% 2.4% 2.4%
Non-Inflated Budget Budget 0.0% 0.0% 0.0% 0.0%
Retirement - CalPers Budget Budget 3.0% 3.0% 3.0% 3.0%
Salaries Budget Budget 3.0% 3.0% 3.0% 3.0%
Water Purchases (Fixed)
Water Purchases (Variable)
Water Loss 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Pass-Through
Pass-Through

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Current Financial Position
Revenues
Based on the forecasting assumptions, revenues were calculated using existing rates and account data, with projected total water sales shown in Table 10 as the baseline for usage. Table 12 shows the calculated rate revenues through the Financial Plan Period. The detailed calculations can be found in the rate model on file with the City. Table 13 summarizes calculated rate revenues and other non-rate revenues available through the Financial Plan Period with projections rounded to the nearest thousands.

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Table 12: Calculated Rate Revenues

Fixed Revenues FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 City Fixed Charge
Single-Family $2,356,833 $2,356,833 $2,356,833 $2,356,833 $2,356,833 $2,356,833 Multi-Family $218,427 $218,427 $218,427 $218,427 $218,427 $218,427 Non-Residential $601,827 $601,827 $601,827 $601,827 $601,827 $601,827 Irrigation $437,672 $437,672 $437,672 $437,672 $437,672 $437,672 Recycled $181,123 $181,123 $181,123 $181,123 $181,123 $181,123 Total City Fixed Charge $3,795,881 $3,795,881 $3,795,881 $3,795,881 $3,795,881 $3,795,881 Zone 7 Fixed Charge
Single-Family $2,301,264 $2,519,105 $2,519,105 $2,519,105 $2,519,105 $2,519,105 Multi-Family $299,845 $328,229 $328,229 $328,229 $328,229 $328,229 Non-Residential $803,310 $879,352 $879,352 $879,352 $879,352 $879,352 Irrigation $574,413 $628,788 $628,788 $628,788 $628,788 $628,788 Recycled $0 $0 $0 $0 $0 $0
Total Zone 7 Fixed Charge $3,978,833 $4,355,473 $4,355,473 $4,355,473 $4,355,473 $4,355,473 Fireline Revenue $144,916 $144,916 $144,916 $144,916 $144,916 $144,916 Variable Revenues FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 City Variable
Single-Family
Tier 1 $707,841 $707,841 $707,841 $707,841 $707,841 $707,841 Tier 2 $1,255,507 $1,255,507 $1,255,507 $1,255,507 $1,255,507 $1,255,507 Single-Family Variable Revenue $1,963,349 $1,963,349 $1,963,349 $1,963,349 $1,963,349 $1,963,349 Multi-Family
Tier 1 $14,129 $14,129 $14,129 $14,129 $14,129 $14,129
Tier 2 $325,556 $325,556 $325,556 $325,556 $325,556 $325,556 Multi-Family Variable Revenue $339,684 $339,684 $339,684 $339,684 $339,684 $339,684 Non-Residential $603,003 $603,003 $603,003 $603,003 $603,003 $603,003 Irrigation $1,092,022 $1,092,022 $1,092,022 $1,092,022 $1,092,022 $1,092,022 Recycled $991,455 $991,455 $991,455 $991,455 $991,455 $991,455 Total City Variable $4,989,514 $4,989,514 $4,989,514 $4,989,514 $4,989,514 $4,989,514 Zone 7 Variable
Single-Family
Tier 1 $1,180,339 $1,166,522 $1,166,522 $1,166,522 $1,166,522 $1,166,522 Tier 2 $1,504,011 $1,486,405 $1,486,405 $1,486,405 $1,486,405 $1,486,405 Single-Family Variable Revenue $2,684,351 $2,652,928 $2,652,928 $2,652,928 $2,652,928 $2,652,928 Multi-Family
Tier 1 $23,560 $23,284 $23,284 $23,284 $23,284 $23,284
Tier 2 $389,993 $385,428 $385,428 $385,428 $385,428 $385,428 Multi-Family Variable Revenue $413,553 $408,712 $408,712 $408,712 $408,712 $408,712 Non-Residential $920,138 $920,138 $920,138 $920,138 $920,138 $920,138 Irrigation $1,292,854 $1,292,854 $1,292,854 $1,292,854 $1,292,854 $1,292,854 Recycled $0 $0 $0 $0 $0 $0
Total Zone 7 Variable $5,310,896 $5,274,632 $5,274,632 $5,274,632 $5,274,632 $5,274,632 Total Rate Revenue $18,220,039 $18,560,415 $18,560,415 $18,560,415 $18,560,415 $18,560,415

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Table 13: Projected Revenues

Expenses
The biennial FY 2022 / FY 2023 budget was used as the baseline expenses of the utility and adjusted in subsequent years based on the escalation factors shown in Table 11 . Table 14 provides projected Operational & Maintenance (O&M) costs through FY 2027 with projections rounded to the nearest thousands.

Each expense category includes detailed line-item expenditures that were discussed with staff to determine the appropriate escalation factor to use for forecasting how costs will increase over time. The price of purchased water is held constant because any increase will be captured through the pass-through provisions of Government Code section 53756.

Table 14: Projected O&M Expenses

Revenue Summary FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Rate Revenues
City Fixed Charge $3,796,000 $3,796,000 $3,796,000 $3,796,000 $3,796,000 $3,796,000 Zone 7 Fixed Charge $3,979,000 $4,355,000 $4,355,000 $4,355,000 $4,355,000 $4,355,000 Fireline Revenue $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 City Variable $4,990,000 $4,990,000 $4,990,000 $4,990,000 $4,990,000 $4,990,000 Zone 7 Variable $5,311,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 Subtotal Rate Revenues $18,221,000 $18,561,000 $18,561,000 $18,561,000 $18,561,000 $18,561,000 Operating Revenues
Sale Of Water Mtr-Taxabl $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 Misc Sales-Taxable $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Contract Recycled Revenue $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 Subtotal Operating Revenues $88,000 $88,000 $88,000 $88,000 $88,000 $88,000 Other Revenues
Interest Income (F250) $44,000 $44,000 $27,000 $28,000 $28,000 $28,000 Cell Tower Rent $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 Administrative Cost Rvry $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Miscellaneous Revenue $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Subtotal Other Revenues $94,000 $94,000 $77,000 $78,000 $78,000 $78,000 Total Revenues $18,403,000 $18,743,000 $18,726,000 $18,727,000 $18,727,000 $18,727,000 O&M Expenses FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Purchased Water Costs
Purchase of Water - Fixed $3,975,000 $4,357,000 $4,357,000 $4,357,000 $4,357,000 $4,357,000 Purchase of Water - Variable $5,337,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 Purchased of Water - Water Loss $593,000 $586,000 $586,000 $586,000 $586,000 $586,000 Subtotal Purchased Water Costs $9,905,000 $10,218,000 $10,218,000 $10,218,000 $10,218,000 $10,218,000 Operating Expenses (250)
Administrative & General $3,069,000 $3,037,000 $3,116,000 $3,197,000 $3,280,000 $3,365,000 Water Pumping $467,000 $386,000 $403,000 $422,000 $441,000 $462,000 Water Transmission & Distribution $2,143,000 $2,071,000 $2,131,000 $2,193,000 $2,256,000 $2,322,000 Water Customer Accounts $762,000 $773,000 $795,000 $817,000 $839,000 $862,000 Recycled Water $81,000 $263,000 $275,000 $287,000 $299,000 $313,000 Subtotal Operating Expenses (250) $6,522,000 $6,530,000 $6,720,000 $6,916,000 $7,115,000 $7,324,000 Total Expenses (before capital & capital-related debt) $16,427,000 $16,748,000 $16,938,000 $17,134,000 $17,333,000 $17,542,000

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Reserves
Figure 5: Water Utility Reserves

Established reserves include an Operating Fund and Capital Replacement Fund. These reserves help mitigate risks to the utility by ensuring sufficient cash is on hand for daily operations and to fund annual system improvements. In addition, these reserves help smooth rates and mitigate rate spikes due to emergencies or above-average system costs. Over the Financial Plan Period, the City plans to use capital replacement reserves to fund a portion of capital each year to keep rates as low as possible and draw down the Capital Replacement Fund to its recommended target. Table 15 summarizes each reserve’s minimum reserve requirements and ideal funding targets.

Table 15: Reserve Requirements and Targets
Reserve Minimum Requirement Reserve Target
Operating Fund 120 days of operating 180 days of operating Capital Replacement Fund 2x annual depreciation 4x annual depreciation

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Financial Outlook at Existing Rates
Calculating revenue using existing rates and projecting expenses helps determine the current financial health of the utility. Revenues from existing rates are sufficient to fund O&M and generate positive net operating income but continue to decline throughout the Financial Plan Period and beyond. Net operating income funds the utility’s capital plan and reserves. However, the projected net operating income is not sufficient to fully fund capital on its own. As a result, reserves are needed to cover system reinvestment, which will be used over the Financial Plan Period, but is not sustainable long-term. Figure 6 illustrates the operating position of the utility, where O&M expenses are identified with the dashed red trendline, and the horizontal black trendline shows total revenues at existing rates. The bars represent the net operating income available for capital spending and reserve funding.

Figure 6: Current Operating Financial Position

With capital spending increasing each year, as shown in Figure 2, reserves will cover the remaining capital expenses to ensure necessary projects continue to move forward as scheduled. Figure 7 reflects the projected ending balances of reserves after funding operating and capital projects. By FY 2027, reserves are reduced to approximately $20.8M and fall below the minimum reserve requirement by FY 2030.

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Figure 7: Projected Ending Reserves at Existing Rates

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Proposed Financial Plan
From the financial outlook at existing rates, a proposed financial plan can be developed to fund the multi-year revenue requirements, while maintaining positive annual net operating income each year. The proposed financial plan generates approximately $1.5M in additional revenue over the Financial Plan Period. The additional revenue maintains a positive net operating income of at least $1.8M each year. However, annual net operating income is not enough to cover the utility’s annual capital spending. Therefore, the proposed financial plan uses capital replacement reserves to fund a significant portion of planned capital. This approach minimizes rate increases and reduces the capital replacement reserve balance over time. Table 16 forecasts projected revenues and expenses through FY 2027.

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Table 16: Proposed Financial Plan – Projected Reveues and Expenses Through FY 2027

Revenue FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Rate Revenues
City Fixed Charge $3,796,000 $3,796,000 $3,796,000 $3,796,000 $3,796,000 $3,796,000 Zone 7 Fixed Charge $3,979,000 $4,355,000 $4,355,000 $4,355,000 $4,355,000 $4,355,000 Fireline Revenue $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 City Variable $4,990,000 $4,990,000 $4,990,000 $4,990,000 $4,990,000 $4,990,000 Zone 7 Variable $5,311,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 Total Rate Revenues $18,221,000 $18,561,000 $18,561,000 $18,561,000 $18,561,000 $18,561,000 Additional Revenue (from revenue adjustments) :

Fiscal Year Revenue
Adjustment
Effective
Month
FY 2024 1.0% January $92,000 $185,000 $185,000 $185,000 FY 2025 1.0% January $93,000 $187,000 $187,000
FY 2026 1.0% January $94,000 $189,000
FY 2027 1.0% January $95,000
Total Additional Revenue $0 $0 $92,000 $278,000 $466,000 $656,000 Projected Rate Revenues $18,221,000 $18,561,000 $18,653,000 $18,839,000 $19,027,000 $19,217,000 Operating Revenues
Sale Of Water Mtr-Taxabl $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 Misc Sales-Taxable $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Contract Recycled Revenue $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 Subtotal Operating Revenues $88,000 $88,000 $88,000 $88,000 $88,000 $88,000 Other Revenues
Interest Income (F250) $44,000 $44,000 $27,000 $28,000 $28,000 $28,000 Cell Tower Rent $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 Administrative Cost Rvry $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Miscellaneous Revenue $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Subtotal Other Revenues $94,000 $94,000 $77,000 $78,000 $78,000 $78,000 Total Revenues $18,403,000 $18,743,000 $18,818,000 $19,005,000 $19,193,000 $19,383,000 O&M Expenses FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Purchased Water Costs
Purchase of Water - Fixed $3,975,000 $4,357,000 $4,357,000 $4,357,000 $4,357,000 $4,357,000 Purchase of Water - Variable $5,337,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 Purchased of Water - Water Loss $593,000 $586,000 $586,000 $586,000 $586,000 $586,000 Subtotal Purchased Water Costs $9,905,000 $10,218,000 $10,218,000 $10,218,000 $10,218,000 $10,218,000 Operating Expenses (250)
Administrative & General $3,069,000 $3,037,000 $3,116,000 $3,197,000 $3,280,000 $3,365,000 Water Pumping $467,000 $386,000 $403,000 $422,000 $441,000 $462,000 Water Transmission & Distribution $2,143,000 $2,071,000 $2,131,000 $2,193,000 $2,256,000 $2,322,000 Water Customer Accounts $762,000 $773,000 $795,000 $817,000 $839,000 $862,000 Recycled Water $81,000 $263,000 $275,000 $287,000 $299,000 $313,000 Subtotal Operating Expenses (250) $6,522,000 $6,530,000 $6,720,000 $6,916,000 $7,115,000 $7,324,000 Total Expenses (before capital & debt) $16,427,000 $16,748,000 $16,938,000 $17,134,000 $17,333,000 $17,542,000 Net Cashflow $1,976,000 $1,995,000 $1,880,000 $1,871,000 $1,860,000 $1,841,000

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Figure 8 through Figure 10 extends beyond the Financial Plan Period and spans a ten-year outlook to show how the combination of revenue adjustments and the use of capital replacement reserves reduces the current reserve balance down to within the City’s reserve requirements. For FY 2028 through FY 2031, 3% revenue adjustments are assumed but may not be adopted by City Council at that time and will be confirmed/updated as part of the next cost-of-service study. Figure 8 i dentifies the operating position based on the proposed financial plan, and Figure 9 and Figure 10 show the capital plan with funding sources and projected ending reserve balances, respectively.

Figure 8: Proposed Operating Position

Figure 9: Capital Improvement Plan with Funding Sources

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Figure 10: Proposed Ending Reserves

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Cost-of-Service Analysis
Cost-of-Service Process
The next step in developing rates is to perform a cost-of-service analysis. Developing cost-based and equitable rates are significant considerations in developing proposed water rates. Meeting the statutory requirements of Proposition 218 is of paramount importance in the development of water rates. Proposition 218 does not provide a particular methodology for establishing cost-based rates. This study uses the Base- Extra Capacity Methodology for developing water rates and adheres to the cost-of-service provisions of Proposition 218.

It is important to understand how costs are incurred in order to determine the most appropriate way to recover these costs. The following graphic summarizes the cost-of-service process. This process allocates costs incurred to customers and tiers based on their proportional share. As a result, proposed rates are cost-based and reflect the costs incurred to deliver water service to all customers.

Figure 11: Cost-of-Service Process

Revenue Requirements
With FY 2023 as the first year of the proposed rate schedule, revenue requirements are determined for FY 2023 and used for the cost-of-service. Revenue requirements include O&M expenses, available offsets from non-rate revenues, annual net income, and any mid-year adjustments if rates are implemented after the start of the fiscal year. The proposed revenue adjustments and corresponding rates collectively accumulate the necessary funding over the Financial Plan Period to fund total revenue requirements while drawing down reserves and maintaining annual net operating income of at least $1.8M. The results of the financial plan analysis are summarized in Table 17 and represent the revenue required from rates over the Financial Plan Period.

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Table 17: FY 2022 Revenue Requirements

FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Revenue Requirements
Purchased Water Costs
Purchase of Water - Fixed $4,357,000 $4,357,000 $4,357,000 $4,357,000 $4,357,000 Purchase of Water - Variable $5,275,000 $5,275,000 $5,275,000 $5,275,000 $5,275,000 Purchased of Water - Water Loss $586,000 $586,000 $586,000 $586,000 $586,000 Total Purchased Water Costs $10,218,000 $10,218,000 $10,218,000 $10,218,000 $10,218,000 Operating Expenses (250)
Administrative & General $3,037,000 $3,116,000 $3,197,000 $3,280,000 $3,365,000 Water Pumping $386,000 $403,000 $422,000 $441,000 $462,000 Water Transmission & Distribution $2,071,000 $2,131,000 $2,193,000 $2,256,000 $2,322,000 Water Customer Accounts $773,000 $795,000 $817,000 $839,000 $862,000 Recycled Water $263,000 $275,000 $287,000 $299,000 $313,000 Total Operating Expenses (250) $6,530,000 $6,720,000 $6,916,000 $7,115,000 $7,324,000 Total Operating Expenditures $16,748,000 $16,938,000 $17,134,000 $17,333,000 $17,542,000 Revenue Offsets
Sale Of Water Mtr-Taxabl ($28,000) ($28,000) ($28,000) ($28,000) ($28,000) Misc Sales-Taxable ($5,000) ($5,000) ($5,000) ($5,000) ($5,000) Contract Recycled Revenue - Golf Course ($55,000) ($55,000) ($55,000) ($55,000) ($55,000) Other Revenues ($94,000) ($77,000) ($78,000) ($78,000) ($78,000) Total Revenue Offsets ($182,000) ($165,000) ($166,000) ($166,000) ($166,000) Adjustments
Reserve Funding $1,995,000 $1,880,000 $1,871,000 $1,860,000 $1,841,000 Adjustment for Mid-Year Increase $0 $92,000 $93,000 $94,000 $95,000 Total Adjustments $1,995,000 $1,972,000 $1,964,000 $1,954,000 $1,936,000 Revenue Requirement from Rates $18,561,000 $18,745,000 $18,932,000 $19,121,000 $19,312,000

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Define Cost Components
The utility incurs costs to accommodate total water demand and peak demands that vary throughout the year, days, and hours. Therefore, to determine the most appropriate way to recover the utility’s expenses, cost components are identified to allocate expenses based on how they are incurred. By reviewing the revenue requirements and understanding the utility system, it is appropriate and reasonable to utilize the base-extra capacity methodology outlined in the American Water Works Association M1 Manual. This methodology accounts for the utility’s costs as a function of meeting both total volume and peak use demands. For example, if a utility’s average use and peak use were equivalent, the utility system could be sized solely to accommodate the average demand on the system. However, customer water usage peaks at different times, such as in the morning when everyone wakes up, evenings when customers are home from work/school, and other times of the year as outdoor water needs fluctuate based on the weather. The cost components shown in Figure 12 reflect the cost components used for this study.

Figure 12: Cost Components

Zone 7 Fixed – Fixed monthly water supply costs incurred by the City from its water wholesaler, Zone 7.

Account Services – Fixed expenses that do not necessarily fluctuate based on usage and are not a function of meter size.

Meter Capacity – O&M expenses associated with meters, including a portion of capital and reserves.

Fire Flow Demand – Portion of Peaking costs to meet fire flow demand inherent to the water system.

Purchased Water – Water supply costs from the purchase of treated water from Zone 7.

Delivery – Operating and capital expenses of the water system associated with serving customers at a constant average use or average daily demand. These costs tend to vary with the total water used.

Peaking – Expenses incurred to meet customer peak demands in excess of average day usage.

Recycled Water – Direct expenses associated with treating recycled water.

Meter
Capacity
Zone 7
Fixed
Account
Services
Delivery Peaking Recycled
Water
Fire Flow
Demand
Zone 7
Variable

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The analysis herein establishes cost components for developing fixed charges and utilizes the base-extra capacity method for developing variable rates. Total volume and usage patterns of customers and tiers are analyzed to allocate expenses proportionately based on total usage and peak demands. Peak demand is a function of Max Day Demand (Max Day) and Max Hour Demand (Max Hour) placed on the system in comparison to Average Day Demand (Avg Day). The system is configured with distribution and transmission lines ranging in size from 2” diameter to 24” diameter. This system configuration provides fire flow demand inherent to a utility system and accounts for peak water demands generated by how customers use water above Avg Day. Max Day is the maximum amount of water used in a single day of a calendar year, and Max Hour reflects the peak hourly use on the system compared to Avg Day.

Allocate Expenses to Cost Components

When allocating expenses to the defined costs components, it is important to have a sound basis as to why an expense was allocated to a certain fixed cost component versus a variable cost component or split between both fixed and variable. The distribution of expenses to the cost components should be straight-forward to ensure the method of apportionment is understandable and easily correlates to how expenses are incurred. A description of each expense category is identified below.

Expense Categories:

Purchase of Water – Fixed: Fixed costs from Zone 7.

Purchase of Water – Variable: Costs incurred based on total AF purchased from Zone 7 to cover water usage from City customers.

Purchase of Water – Water Loss: Costs incurred based on total AF purchased from Zone 7 to cover system loss of 10%.

Administrative & General: Costs associated with the daily operations and management of the City’s water utility, including, but not limited to, personnel, supplies, repairs, meter services, rent, contract services, central services support, inspections, and regulatory fees.

Water Pumping: Costs associated with repairs and maintenance, supplies, rent, ground maintenance, regulatory fees, and contract services related to pumping water.

Water Transmission & Distribution: Costs associated with the daily operational costs related to transmission and distribution including, but not limited to, employee salaries and benefits, supplies and materials, rent, and contract services.

Water Customer Accounts: Costs associated with salaries and benefits, supplies, overhead, billing, and contract services related to customer accounts.

Recycled Water: Costs associated with salaries and benefits of the staff dedicated to the recycled utility, portion of overhead, and tertiary treatment costs.

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System peaking characteristics are used to allocate costs to Avg Day (Delivery) and Max Day / Max Hour (collectively, Peaking). Avg Day is assigned a factor of 1.0, signifying no peaking demands. The Max Day and Max Hour factors shown in Table 18 are from the City’s Water Resource Division. A Max Day peaking factor of 2.07 means that the system delivers just over double the average daily demand during a peak day. A Max Hour peaking factor of 3.97 means that the system delivers almost 4 times the average daily demand during peak hour. To determine the percentage allocations for Avg Day, Max Day, and Max Hour, the following calculations are used:

Avg Day – 100% to Base (no peak)
Max Day – Max Day peak factor is 2.07. Therefore, the base factor of 1.0 makes up 48.3% of the Max Day (1.0 / 2.07 = 0.483) and Max Day is 51.7% of demand.

Max Hour – The Max Hour peak factor is 3.97. Therefore, the base factor of 1.0 makes up 25.2% of Max Hour (1.0 / 3.97 = 0.252), and the Max Day increment above Avg Day of 1.07 (2.07 - 1.0 = 1.07) makes up

27.0% of the Max Hour Demand (1.07 / 3.97 = 0.27). Therefore, the Max Hour increment equals the remainder of 47.9%.

These peaking factors are specific to the City of Livermore and reflect the peaking characteristics of the City’s water system. The corresponding allocations between Delivery and Peaking provide a means to spread costs incurred as a function of serving Max Day and Max Hour proportionately. Table 18 summarizes the percentage between Delivery and Peaking using Avg Day, Max Day, and Max Hour.

Table 18: System Peaking Factors and Distribution Basis

Base Max Day Max Hour Delivery Peaking
[A] [B] [C] [D] = A [E] = B+C
Avg Day 1.00 100.0% 0.0% 0.0% 100.0% 0.0%
Max Day 2.07 48.3% 51.7% 0.0% 48.3% 51.7%
Max Hour 3.97 25.2% 27.0% 47.9% 25.2% 74.8%
System Peak Factor

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In addition to Max Day and Max Hour demand, a water system is also configured to accommodate Fire Flow Demand (FFD) for fire suppression to meet Max Day and Max Hour demand. FFD can be incorporated into this analysis as a component of Max Day and Max Hour. Based on the City’s system requirements, the maximum fire flow needs vary by land use from 1,500 gallons per minute (gpm) for single-family residential uses up to 3,500 gpm for non-residential uses. Fire flow requirements were weighted by the corresponding accounts to derive the typical fire flow requirement needed during a probable fire event within the City’s service area. Table 19 derives the weighted fire flow requirement. Table 20 identifies the Max Day and Max Hour demand in gallons from the City’s Master Plan (Table 5-1), converts them to gpm by dividing daily gallons by total minutes in a day (60 mins x 24 hours = 1,440 mins), and adds the fire flow requirement derived in Table

19. The FDD percentages of Max Day and Max Hour are determined assuming a fire event.

Table 19: Fire Flow Requirement within City’s Service Area

Table 20: Fire Flow Demand as Percentage of Max Day and Max Hour

Table 21 summarizes the percent allocation of water supply costs to the applicable cost components. The City must purchase additional water from Zone 7 due to water loss in the system. The costs related to water loss are spread equally over all usage and customers and was allocated to Delivery. Table 22 reflects the dollars to each cost component based on the percent allocations in Table 21.

Table 21: Water Supply Expense Allocation to Cost Components (%)

FFD
(gpm)
Accounts % Allocation Weighted FFD
(gpm)
[A] [B] [C] = B as % [D] = A x C
Single-Family 1,500 8,579 92% 1,381 Multi-Family 2,500 151 2% 41 Non-Residential 3,500 586 6% 220 Total 9,316 100% 1,642
FFD by
Land Use
Gallons Max Day Demand
(gpm)
Gallons Max Hour
Demand (gpm)
[A] [B] = A ÷ 1,44 0 min [C] [D] = C ÷ 1,440 min
1 System Demand 11,410,000 7,924 gpm 21,890,000 15,201 gpm 2 Fire Flow Demand 1,642 gpm 1,642 gpm
3 Total (System Demand plus FFD) 9,566 gpm 16,843 gpm
FDD % of MDD/MHD (Line #2 ÷ Line #3) 17.2% 9.7%
Line # System and FFD
Demands
Functionalized Expenses
Methodology /
Allocation Basis
Zone 7
Fixed
Zone 7
Variable Delivery Total
Purchase of Water - Fixed Specific 100.0% 0.0% 0.0% 100% Purchase of Water - Variable Specific 0.0% 100.0% 0.0% 100% Purchased of Water - Water Loss Specific 0.0% 0.0% 100.0% 100%

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Table 22: Water Supply Expense Allocation to Cost Components ($) Table 23 summarizes the percent allocation of O&M Revenue Requirements to the cost components, and Table 24 uses the percent allocations in Table 23 to allocate expenses in dollars to each cost component.

The amount of Administration & General allocated to Meter Capacity is based on identifying specific expense line items with City Staff that are fixed costs to operate the system and; therefore, assigned to Meters (contract services, GIS service charge, software, public outreach, administrative surcharge, IT, liability, use of City property, and regulatory fees).

Table 23: O&M Expense Allocation to Cost Components (%)

Table 24: O&M Expense Allocation to Cost Components ($)

Functionalized Expenses
Methodology /
Allocation Basis
Zone 7
Fixed
Zone 7
Variable Delivery Total
Purchase of Water - Fixed Specific $4,357,000 $0 $0 $4,357,000 Purchase of Water - Variable Specific $0 $5,275,000 $0 $5,275,000 Purchased of Water - Water Loss Specific $0 $0 $586,000 $586,000 Total Allocation ($) $4,357,000 $5,275,000 $586,000 $10,218,000 Functionalized Expenses
Methodology /
Allocation Basis
Account
Services
Meter
Capacity
Fire Flow
Demand Delivery Peaking
Revenue
Offset Recycled Total
Administrative & General Specific 0.0% 66.8% 0.0% 33.2% 0.0% 0.0% 0.0% 100.0% Water Pumping Max Day 0.0% 0.0% 0.0% 48.3% 51.7% 0.0% 0.0% 100.0% Water Transmission & Distribution MH plus Fire Flow 0.0% 0.0% 9.7% 22.7% 67.5% 0.0% 0.0% 100.0% Water Customer Accounts Specific 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Recycled Water Specific 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Functionalized Expenses
Methodology /
Allocation Basis
Account
Services
Meter
Capacity
Fire Flow
Demand Delivery Peaking
Revenue
Offset Recycled Total
Administrative & General Specific $0 $2,028,672 $0 $1,008,328 $0 $0 $0 $3,037,000 Water Pumping Max Day $0 $0 $0 $186,473 $199,527 $0 $0 $386,000 Water Transmission & Distribution MH plus Fire Flow $0 $0 $201,896 $470,807 $1,398,297 $0 $0 $2,071,000 Water Customer Accounts Specific $773,000 $0 $0 $0 $0 $0 $0 $773,000 Recycled Water Specific $0 $0 $0 $0 $0 $0 $263,000 $263,000 Total Allocation ($) $773,000 $2,028,672 $201,896 $1,665,609 $1,597,824 $0 $263,000 $6,530,000 O&M Allocation (%) 11.8% 31.1% 3.1% 25.5% 24.5% 0.0% 4.0% 100.0%

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Other Funding includes contract recycled revenue that directly offsets Recycled, other operating and non- operating revenues, and Reserve Funding. Besides recycled contract revenue, other items are allocated based on O&M percentages derived in Table 24 to proportionately allocate revenue offsets and reserve funding to the cost components. Table 25 summarizes the percent allocation to the cost components, and Table 26 uses the percent allocations in Table 25 to allocate expenses in dollars to each cost component.

Table 27 summarizes the revenue requirement derived in Table 17 by cost component.

Table 25: Other Funding to Cost Components (%)

Table 26: Other Funding Allocation to Cost Components ($)

Table 27: FY 2023 Cost-of-Service Requirements by Cost Component

Functionalized Expenses
Methodology /
Allocation Basis
Account
Services
Meter
Capacity
Fire Flow
Demand Delivery Peaking Recycled Total
Sale Of Water Mtr-Taxabl O&M Allocation 11.8% 31.1% 3.1% 25.5% 24.5% 4.0% 100.0% Misc Sales-Taxable O&M Allocation 11.8% 31.1% 3.1% 25.5% 24.5% 4.0% 100.0% Contract Recycled Revenue Specific 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Other Revenues O&M Allocation 11.8% 31.1% 3.1% 25.5% 24.5% 4.0% 100.0% Reserve Funding O&M Allocation 11.8% 31.1% 3.1% 25.5% 24.5% 4.0% 100.0% Functionalized Expenses
Methodology /
Allocation Basis
Account
Services
Meter
Capacity
Fire Flow
Demand Delivery Peaking Recycled Total
Sale Of Water Mtr-Taxabl O&M Allocation ($3,315) ($8,699) ($866) ($7,142) ($6,851) ($1,128) ($28,000) Misc Sales-Taxable O&M Allocation ($592) ($1,553) ($155) ($1,275) ($1,223) ($201) ($5,000) Contract Recycled Revenue Specific $0 $0 $0 $0 $0 ($55,000) ($55,000) Other Revenues O&M Allocation ($11,127) ($29,203) ($2,906) ($23,977) ($23,001) ($3,786) ($94,000) Reserve Funding O&M Allocation $236,162 $619,786 $61,682 $508,865 $488,156 $80,350 $1,995,000 Total Allocation ($) $221,128 $580,331 $57,755 $476,471 $457,080 $20,235 $1,813,000 Revenue Requirement
Zone 7
Fixed
Account
Services
Meter
Capacity
Fire Flow
Demand
Zone 7
Variable Delivery Peaking Recycled Total
Purchased Water Costs $4,357,000 $0 $0 $0 $5,275,000 $586,000 $0 $0 $10,218,000 Operating $0 $773,000 $2,028,672 $201,896 $0 $1,665,609 $1,597,824 $263,000 $6,530,000 Other Funding $0 $221,128 $580,331 $57,755 $0 $476,471 $457,080 $20,235 $1,813,000 Total $4,357,000 $994,128 $2,609,003 $259,651 $5,275,000 $2,728,080 $2,054,904 $283,235 $18,561,000 Fixed Variable

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Rate Design
Develop Units of Service
Unit rates for each cost component are derived by spreading the corresponding revenue requirements over appropriate units of service (distribution basis). This approach provides a clear connection between costs incurred and the proportionate share attributable to each customer class, corresponding tier, and customer account. When designing rates, the most critical component is to connect costs to the proposed rates, resulting in a rate structure that is cost-based and in compliance with Proposition 218. The previous section summarized costs by expense category and then allocated to cost components based on how each cost is incurred. The next step in designing rates is to allocate each cost component to customers in relation to their use of the system and facilities. The method of apportionment considers each customer’s share of system costs and is reflected by the units of service used to equitably distribute the cost components to each customer account.

The distribution basis varies by cost component and includes total accounts, Meter Equivalents (MEs), which reflects demand placed on the system based on meter size, total water sales, usage by tier, and usage weighted by peaking by customer class and tier. In Table 28, each meter size was assigned an equivalency factor based on the flow characteristics of a 5/8” meter based on the safe maximum operating flow capacity by meter type, as identified in the AWWA M1 Manual, 6th Edition, Table B-2.

The safe maximum operating flow capacity for each meter was divided by the base meters safe operating flow capacity of 20 gpm (5/8”) to determine the equivalent meter ratio. The Capacity Ratios represent the potential flow through each meter size compared to the flow through a 5/8” meter to establish parity between meter sizes. Total MEs are determined by multiplying the number of meters by the Capacity Ratio and then multiplying the result by the billing periods in a year. Table 28 summarizes the units of service related to total Accounts and MEs for all accounts (Potable and Recycled combined) and Zone 7 accounts (Potable only).

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Table 28: Accounts and Meter Equivalents

Total usage and peaking factors must be calculated for each customer class and tier to derive the units of service for allocating variable costs. Table 29 provides the projected usage for FY 2023 from Table 10, broken out by customer class, including the usage characteristics of each customer class. The peaking factors were determined using the most recently completed Fiscal Year of consumption (FY 2021). Based on the consumption analysis, peaking factors were derived by taking each customer class’ usage per account during the max monthly summer billing period (July) divided by the average annual usage per account of each customer class.

Table 29: Usage and Peaking Factors by Customer Class

Table 30 provides the tiered usages characteristics for Single-Family Residential. The tiered usage characteristics will be used to further apportion the total variable costs allocated to Single-Family Residential to the corresponding tiers. Allocating variable costs to customer classes first, then to tiers, ensures each customer class is recovering its proportionate share of costs. For Single-Family Residential, the Tier 1 allotment is based on minimum winter usage (7 CCF) as a proxy for indoor usage as outdoor watering demand Meter Size
AWWA Capacity
(gpm)
Capacity
Ratio
Potable /
Recycled
Accounts
Zone 7 Potable
Accounts
Potable / Recycled
Meter Equivalents
Zone 7 Potable
Meter Equivalents
[A] [B] = A ÷ 20 [C] [D] [E] = B x C [F] = B x D
5/8" 20 1.00 4,239 4,232 4,239 4,232
3/4" 30 1.50 102 100 153 150
1" w/Fire 20 1.00 4,482 4,482 4,482 4,482
1" 50 2.50 420 365 1,050 913
1 1/2" 100 5.00 219 183 1,095 915
1 1/2" T 120 6.00 105 105 630 630
2" 160 8.00 273 233 2,184 1,864
2" T 190 9.50 80 80 760 760
3" 435 21.75 28 27 609 587
4" 750 37.50 7 7 263 263
6" 1,600 80.00 1 1 80 80
8" 2,800 140.00 0 0 0 0
10" 4,200 210.00 0 0 0 0
12" 5,300 265.00 1 0 265 0
Total 9,957 9,815 15,810 14,875
Annual Units (Total x 12 billing periods) 119,484 117,780 189,714 178,503 All Usage
Avg Usage Per
Account
Max Usage
Per Account
Peaking Weighted Peak
[A] [B] [C] [D] = C ÷ B [E] = A x D
Single-Family 1,287,829 13.80 20.84 1.51 1,944,808
Multi-Family 198,404 123.29 174.26 1.41 280,427
Non-Residential 446,669 68.99 84.01 1.22 543,915
Irrigation 627,599 122.35 203.19 1.66 1,042,271
Recycled 300,441 207.14 358.07 1.73 519,354
Variable Units 2,860,942 4,330,775
Customer Class

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is minimal during the winter. The Single-Family Residential Tier 2 allotment captures any usage over Tier 1.

Tier 1 is assigned a peak factor of 1.0 to reflect indoor usage for Single-Family Residential 4.

Table 30: Usage (CCF) and Peaking Factors for Tiers

With the units of service shown in Table 28, Table 29, and Table 30, the distribution basis can be identified for each cost component. Figure 13 identifies the total revenue requirements by cost component from Table 27 and the corresponding units of service.

Figure 13: Distribution Basis and Units of Service by Cost Component

Using the FY 2023 revenue requirements, the cost-of-service allocates expenses to customer classes, and corresponding tiers based on the service demands that each place on the system (cost causation). This approach ensures that each customer proportionately shares in the total annual revenue requirements of the utility. For the following unit rate computations for each cost component, unit rates were rounded up to the nearest penny.

4 For Single-Family Residential Tier 1, the full allotment of 7 CCF is used for Column B as total indoor usage is considered no peak.

Projected
Usage
Usage per
Account
Peaking
Factor
Weighted
Peak
[A] [B] [C] = B ÷ 7 [D] = A x C
Single-Family
Tier 1 7 566,273 7.00 1.00 566,273
Tier 2 > 7 721,556 18.15 2.59 1,870,743
Total 1,287,829 2,437,016
Tier Usage
Characteristics
Tier
Allotments
Account
Services
Zone 7
Fixed
Meter
Capacity Peaking Recycled
Water Delivery Fire Flow
Demand
Zone 7
Variable

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Fixed Cost Recovery
Zone 7 Fixed
Zone 7 Fixed costs are incurred by the City based on the percentage of total purchases using a 2-year historical rolling average. The Zone 7 fixed costs are then apportioned to City customers as a fixed charge based on meter size, which reflects the total potential water demand from potable customers (Zone 7 MEs; excludes recycled water MEs).

Table 31: Zone 7 Calendar Year 2022 Fixed Cost Monthly Unit Rate

Account Services
Account Services costs are incurred by each customer regardless of the type of land use, meter size, or total amount of water used. These costs should be spread equally across all accounts. This is achieved by using the distribution basis of Total Bills. Total Bills are determined by multiplying the number of accounts by the number of billing periods over the fiscal year. Therefore, the revenue requirement for Account Services is apportioned based on the Total Bills to determine the monthly unit cost-of-service shown in Table 32.

Table 32: FY 2023 Account Services Monthly Unit Rate

Meter Capacity
The Meter Capacity Component includes system-wide operations costs and a portion of capital and reserve funding. The revenue requirement for Meter Capacity is apportioned based on meter size. Larger sized meters can generate a greater demand on the system from the amount of potential water flow that may pass through the meter in gpm. The revenue requirement for Meter Capacity is apportioned to meter size as represented by All MEs.

Table 33: FY 2023 Meter Capacity Monthly Unit Rate

Zone 7 Fixed Component Unit Rate
Revenue Requirement $4,357,000
÷ Zone 7 ME's 178,503
Monthly Unit Rate $24.41
Account Services Component Unit Rate
Revenue Requirement $994,128
÷ Total Bills 119,484
Monthly Unit Rate $8.33
Meter Capacity Component Unit Rate
Revenue Requirement $2,609,003
÷ All ME's 189,714
Monthly Unit Rate $13.76

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Fire Flow Demand
System fire flow revenue requirements are allocated between hydrants and dedicated fire lines based on fire flow demand of all connections. All meters recover the portion associated with the fire flow demand of hydrants as a means to quantify the standby services rendered to all accounts for system fire flow capacity. Table 34 identifies all connections by size (in diameter inches) between dedicated fire lines and hydrants. The cross- sectional diameter of the line is multiplied by total connections of each size and the result is then raised to the

2.63 power, using the principals of the Hazen-Williams equation for the relative flow potential through pressure conduits which is a function of the diameter size. Table 35 takes the portion associated with fire flow demand of the water system’s connected hydrants and spreads the cost to potable meters based on MEs. The portion related to dedicated fire lines is recovered proportionately based on the size of the connection (per diameter inch) derived in Table 36.

Table 34: FY 2023 Fire Flow Demand Allocations

Table 35: FY 2023 Fire Flow Demand Monthly Unit Rate

Fire Flow Demand Component
Revenue Requirement $155,907
÷ All ME's 189,714
Monthly Unit Rate $0.83

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Table 36: FY 2023 Dedicated Fire Line Monthly Unit Rate per Diameter Inch

Variable Cost Recovery
The remaining cost components are recovered through the variable rates. The existing and proposed variable rate structure is similar to the current rate structure, except Multi-Family Residential variable rates were adjusted from a two-tiered rate structure to a uniform rate.

Water Supply
The City purchases treated water from Zone 7 to serve its potable customers. Therefore, the revenue requirement for Purchased Water is apportioned over potable usage identified in . Table 37 derives the unit rate for the Zone 7 Variable component, which is subject to adjustments using the pass-through provision, commencing on January 1, 2023. Recycled customers are not subject to Zone 7 water supply costs.

Table 37: Zone 7 Calendar Year 2022 Supply Cost Unit Rate per CCF

Delivery
Delivery costs are incurred based on the total volume of water produced and delivered to customers at a constant average demand throughout the year. Therefore, the revenue requirement for Delivery is apportioned based on projected total usage identified in Table 29 to determine the unit cost-of-service, irrespective of tier, as shown in Table 38.

Table 38: FY 2023 Delivery Cost Unit Rate per CCF

Dedicated Fire Line - Unit Rate
Revenue Requirement $103,744
÷ Annual Diameter inches 51,576
Monthly Unit Rate $2.02
Zone 7 Variable Component - Unit Rate
Revenue Requirement $5,275,000
÷ Potable Usage 2,560,501
Unit Rate $2.06
Delivery Component Unit Rate
Revenue Requirement $2,728,080
÷ All Usage 2,860,942
Unit Rate $0.96

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Peaking
Peaking costs are incurred based not only on the total volume of water produced and delivered but also as a function of the peaking characteristics of customer classes and tiers. Therefore, the revenue requirement for Peaking is first allocated to each customer class based on the Weighted Peaking derived in Table 29 and the results are identified in Table 39. The revenue requirement for Peaking from Table 27 ($2,054,904) is allocated to each customer class using the percentages of Weighted Peak (Table 39 – Column D). Table 40 takes the Peaking cost allocated to Single-Family Residential ($927,449) and further apportions the costs to the corresponding tiers utilizing the Weighted Peaking derived in Table 30.

Table 39: FY 2023 Peaking Allocation to Customer Classes

Table 40: FY 2023 Peaking Unit Rate by Tier

Recycled Water
The City employs additional staffing to support the recycled utility and incurs additional O&M costs related to tertiary treatment. Since these costs are incurred specifically for the recycled customers, the costs have been allocated solely to recycled customers and spread equally over all recycled water usage. Table 41 derives the variable unit rate for the Recycled Water Component.

Table 41: FY 2023 Recycled Water Cost Unit Rate

All Usage Peaking
Factors
Weighted
Peak
%
Allocation
Revenue
Requirement
Unit Rate
per CCF
[A] [B] [C] = A x B [D] = C as % [E] = $2,054,904 X D [F] = E ÷ A Single-Family 1,287,829 1.51 1,941,185 45.1% $927,449 further allocated Multi-Family 198,404 1.28 254,222 5.9% $121,461 $0.62
Non-Residential 446,669 1.22 543,899 12.6% $259,861 $0.59 Irrigation 627,599 1.66 1,042,315 24.2% $497,992 $0.80
Recycled 300,441 1.73 519,370 12.1% $248,142 $0.83
Total 2,860,942 4,300,992 100.0% $2,054,904
Customer Class
Projected
Usage
Usage per
Account
Peaking
Factor
Weighted
Peak
% Allocation Revenue
Requirement
Unit Rate
per CCF
[A] [B] [C] = B ÷ 7 [D] = A x C [E] = D as % [F] = $927 ,449 X E [G] = F ÷ A Single-Family
Tier 1 7 566,273 7.00 1.00 566,273 23.2% $215,505 $0.39 Tier 2 > 7 721,556 18.15 2.59 1,870,743 76.8% $711,944 $0.99 Total 1,287,829 2,437,016 100.0% $927,449
Tier Usage
Characteristics
Tier
Allotments
Recycled Component Unit Rate
Revenue Requirement $283,235
÷ Recycled Usage 300,441
Unit Rate $0.95

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Cost-Based Rates Summary

Financial Plan Summary
The financial plan developed for the City identifies revenue adjustments through FY 2027. Based on the review of the City’s current rate revenue and multi-year revenue requirements, rate revenue through the Financial Plan Period will generate approximately $1.5M in additional revenue, which reflects no increase in FY 2023 and a 1% increase in total rate revenue each year for FY 2024 through FY 2027. These recommended revenue adjustments will allow the City to generate positive net income of at least $1.8M each year, while drawing down capital replacement reserves for a majority of the City’s capital spending. The financial plan should be updated annually to review actual revenue recovered, capture new accounts, update changes in water usage, and track capital expenses as estimates change. As the baseline assumptions change, the proposed revenue adjustments may also need to be revised to reflect updated conditions.

Cost-of-Service and Rate Summary
The City’s proposed fixed charges are structured similarly to the existing rate structure, with fixed charges separated between the City and Zone 7. The variable rate structure is also similar to existing rates, except for Multi-Family Residential. The 2-tiered rate structure has been updated to a uniform rate to eliminate the need for the City to track the number of dwelling units at each complex and assignment of occupied dwelling units to each meter for complexes that have multiple meters. In addition, variable rates are separated between City variable rates and the Zone 7 variable rate.

The City also plans to continue to utilize the pass-through provisions of the Proposition 218 Omnibus Implementation Act (Government Code Section 53756) for any rate adjustments adopted by Zone 7 each January. There will be two separate pass-throughs, one for increases / decreases in fixed charges and the other for increases / decreases in variable rates.

The comprehensive cost-of-service analysis and rate development meet the requirements of Proposition 218, and identify the costs components that make up the proposed fixed charges and variable rates. Proposition 218 requires the following conditions:

1. An agency cannot collect revenue beyond what is necessary to provide service.

The long-term financial plan identifies the City’s revenue requirements including operating expense, capital improvement program, debt coverage, and reserves. Water utility reserves are healthy and the City plans to use replacement reserves to fund a majority of its capital, minimizing the need to increase rates higher than would otherwise be necessary.

2. Revenues derived by the charge shall not be used for any other purpose other than that for which the charge was imposed.

The City’s water fund is a separate business enterprise to track revenues and expenses. Costs from other departments, such as central services support, are identified within the budget, and the water fund only pays its proportionate share.

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3. The amount of the fee may not exceed the proportional cost of service for the parcel.

The comprehensive cost-of-service analysis and updated fixed charges and variable rates reflect each customer’s proportionate share of cost. Through this update, each account is paying for the cost of providing water service to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of a property.

The proposed fixed charges and variable rates connect directly to the City’s budget and projected future revenue requirements of the water enterprise and are recovered from all active accounts receiving service.

5. A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45 days prior to the public hearing.

Notices were mailed to each affected parcel at least 45 days prior to the April 11, 2022, Public Hearing.

The proposed fixed charges and the proposed variable rates for FY 2023 are shown in the following section.

If a majority protest does not exist at the April 11 th Public Hearing, the City Council may adopt the rates with an effective date of January 1, 2023.

Proposed Monthly Fixed Charges
Table 42 reflects the combined charges of the City’s fixed charge of Account Services, Meter Capacity, and Fire Flow Demand. Account Service is constant for all meter sizes. Meter Capacity and Fire Flow Demand are multiplied by the corresponding Capacity Ratios of each meter size to derive the City’s fixed charge schedule. The proposed Zone 7 fixed charges for FY 2023 are shown in Table 43. The Zone 7 fixed charge per ME calculated in Table 31 is multiplied by the Capacity Ratio for each meter size to derive the Zone 7 fixed charge schedule. Lastly, Table 44 provides the proposed FY 2023 monthly dedicated fire line charges by connection size (diameter inch).

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Table 42: FY 2023 City Service Charges by Meter Size

Account
Services
Capacity
Ratios
Meter
Capacity
Fire Flow
Demand
City Service
Charges
[A] [B] [C] = $13.7 6 x B [D] = $0.83 x B [E] = A + C + D 5/8" $8.33 1.00 $13.76 $0.83 $22.92
3/4" $8.33 1.50 $20.64 $1.25 $30.22
1" w/Fire $8.33 1.00 $13.76 $0.83 $22.92
1" $8.33 2.50 $34.40 $2.08 $44.81
1 1/2" $8.33 5.00 $68.80 $4.15 $81.28
1 1/2" T $8.33 6.00 $82.56 $4.98 $95.87
2" $8.33 8.00 $110.08 $6.64 $125.05
2" T $8.33 9.50 $130.72 $7.89 $146.94
3" $8.33 21.75 $299.28 $18.06 $325.67
4" $8.33 37.50 $516.00 $31.13 $555.46
6" $8.33 80.00 $1,100.80 $66.40 $1,175.53
8" $8.33 140.00 $1,926.40 $116.20 $2,050.93
10" $8.33 210.00 $2,889.60 $174.30 $3,072.23
12" $8.33 265.00 $3,646.40 $219.95 $3,874.68
Meter Size

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Table 43: FY 2023 Zone 7 Fixed Charges 5

Table 44 FY 2023 Dedicated Fire Line Monthly Fixed Charges

5 Subject to pass-through adjustments each January 1, commencing on January 1, 2023 Capacity
Ratio
Zone 7
Fixed Charges
[A] [B] = $24.41 x A
5/8" 1.00 $24.41
3/4" 1.50 $36.62
1" w/Fire 1.00 $24.41
1" 2.50 $61.03
1 1/2" 5.00 $122.05
1 1/2" T 6.00 $146.46
2" 8.00 $195.28
2" T 9.50 $231.90
3" 21.75 $530.92
4" 37.50 $915.38
6" 80.00 $1,952.80
8" 140.00 $3,417.40
10" 210.00 $5,126.10
12" 265.00 $6,468.65
Meter Size
Diameter
Inch
Dedicated
Fire Line
Charge
[A] [B] = $2.02 x A
5/8" 0.63 $1.27
3/4" 0.75 $1.52
1" 1.00 $2.02
1 1/2" 1.50 $3.03
2" 2.00 $4.04
3" 3.00 $6.06
4" 4.00 $8.08
6" 6.00 $12.12
8" 8.00 $16.16
10" 10.00 $20.20
12" 12.00 $24.24
Conenction
Size

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Table 45 and Table 46 provide the five-year City fixed charge schedule through FY 2027 for all meters and dedicated file lines, respectively.

Table 45: City Monthly Service Charges – FY 2023 through FY 2027

Table 46: Monthly Dedicated Fire Line Fixed Charges – FY 2023 through FY 2027

Service Charges by Meter Size ($/Month)
Meter Size FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
5/8" $22.92 $23.40 $23.88 $24.37 $24.86
3/4" $30.22 $30.89 $31.57 $32.26 $32.95
1" w/Fire $22.92 $23.40 $23.88 $24.37 $24.86
1" $44.81 $45.87 $46.94 $48.02 $49.12
1 1/2" $81.28 $83.32 $85.38 $87.46 $89.56
1 1/2" T $95.87 $98.30 $100.75 $103.23 $105.73
2" $125.05 $128.26 $131.50 $134.77 $138.08
2" T $146.94 $150.73 $154.56 $158.43 $162.34
3" $325.67 $334.24 $342.90 $351.64 $360.47
4" $555.46 $570.17 $585.03 $600.04 $615.20
6" $1,175.53 $1,206.82 $1,238.42 $1,270.34 $1,302.58
8" $2,050.93 $2,105.62 $2,160.86 $2,216.65 $2,273.00
10" $3,072.23 $3,154.22 $3,237.03 $3,320.67 $3,405.14
12" $3,874.68 $3,978.12 $4,082.59 $4,188.11 $4,294.68
Fire Line Charges ($/Month)
Connection Size FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 5/8" $1.27 $1.29 $1.31 $1.33 $1.35
3/4" $1.52 $1.54 $1.56 $1.58 $1.60
1" $2.02 $2.05 $2.08 $2.11 $2.14
1 1/2" $3.03 $3.07 $3.11 $3.15 $3.19
2" $4.04 $4.09 $4.14 $4.19 $4.24
3" $6.06 $6.13 $6.20 $6.27 $6.34
4" $8.08 $8.17 $8.26 $8.35 $8.44
6" $12.12 $12.25 $12.38 $12.51 $12.64
8" $16.16 $16.33 $16.50 $16.67 $16.84
10" $20.20 $20.41 $20.62 $20.83 $21.04

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Proposed Variable Rates
The proposed variable rates for FY 2023 are shown in Table 47 for each customer class and tier, reflecting the combined rate components of Purchased Water, Delivery, Peaking, and Recycled Water. Table 48Table 49 provides the five-year variable rate schedule through FY 2027 for the City portion of the variable rates (less Zone 7 Variable).

Table 47: FY 2023 Variable Rates by Customer Class and Tier

Table 48: City Distribution Rates – FY 2023 through FY 2027 6

6 Potable customers are also subject to the Zone 7 Variable charge equal to $2.06, which are subject to pass-through adjustments each January 1, commencing on January 1, 2023 Tier
Allotments
Zone 7
Variable
Delivery Peaking Recycled 2023 Proposed
Variable Rate
(CCF) [A] [B] [C] [D] [E] = A + B + C + D
Single-Family
Tier 1 7 $2.06 $0.96 $0.39 $0.00 $3.41
Tier 2 > 7 $2.06 $0.96 $0.99 $0.00 $4.01
Multi-Family (Uniform) $2.06 $0.96 $0.62 $0.00 $3.64
Non-Residential (Uniform) $2.06 $0.96 $0.59 $0.00 $3.61 Irrigation (Uniform) $2.06 $0.96 $0.80 $0.00 $3.82
Recycled (Uniform) $0.00 $0.96 $0.83 $0.95 $2.74
Customer Class
Distribution Rates ($/CCF)
Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Single-Family
Tier 1 $1.35 $1.39 $1.43 $1.47 $1.51
Tier 2 $1.95 $2.00 $2.05 $2.10 $2.15
Multi-Family $1.58 $1.62 $1.66 $1.70 $1.74
Non-Residential $1.55 $1.59 $1.63 $1.67 $1.71
Irrigation $1.76 $1.80 $1.84 $1.88 $1.92
Recycled $2.74 $2.77 $2.80 $2.83 $2.86

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Appendix A – Conservation Surcharges
The City’s Municipal Code (Municipal Code) includes a Water Conservation Contingency Plan (Chapter 13.26) with six different conservation stages reflecting reduced water usage. When conservation stages are enacted and the conservation measures realize reductions in water usage, revenues will also reduce causing the utility not to meet its revenue requirements. As such, the Municipal Code also includes the implementation of Conservation Water Rates (Conservation Surcharges) to recover projected lost revenues from each conservation stage. Stage 1 assumes a 10% reduction with each subsequent stage projecting an additional 10% reduction in water usage up to a 60% reduction in stage 6.

The City Council may enact Conservation Surcharges during water shortage events to recover the appropriate amount of revenue to fund water system operations from a reduced volume of water sold. Therefore, Conservation Surcharges are higher than the proposed variable rates identified in Table 48 and increase for each stage.

The proposed Conservation Surcharges are shown by stage for FY 2023 through FY 2027. Water use reductions were applied pro-rata to Residential - Tier 2 and Irrigation usage. The usage within these two classes has the highest potential for cuts and the greatest revenue loss to recover for developing Conservation Surcharges. At 60% reduction in Stage 6, all the Residential – Tier 2 and Irrigation usage is depleted. The additional usage reductions needed to meet the 60% reduction are taken pro-rata from Multi-Family and Non- Residential customers.

Table 49 identifies the total reduction in CCF needed to achieve each conservation stage, and Table 50 summarizes where the reductions are assumed to occur from customer classes and tiers.

Table 49: Total Usage Reductions by Conservation Stage

Baseline Usage
(CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6

10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
2,560,501 256,050 512,100 768,150 1,024,200 1,280,251 1,536,301

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Table 50: Usage Reductions by Customer Class and Tier

With reductions identified in Table 50, the remaining usage is summarized in Table 51 and the corresponding reduced revenue for FY 2023 is shown in Table 52 by taking the usage in Table 51 and multiplying it by the proposed FY 2023 City variable rates.

Table 51: Remaining Usage by Conservation Stage

% Reduction
Customer Class Baseline Usage
(CCF)
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
Single-Family
Tier 1 566,273 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Tier 2 721,556 19.0% 38.0% 56.9% 75.9% 94.9% 100.0%
Multi-Family 198,404 0.0% 0.0% 0.0% 0.0% 0.0% 29.0%
Non-Residential 446,669 0.0% 0.0% 0.0% 0.0% 0.0% 29.0%
Irrigation 627,599 19.0% 38.0% 56.9% 75.9% 94.9% 100.0% 2,560,501
Usage Reduction
Customer Class
Baseline Usage
(CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
Single-Family
Tier 1 566,273 - - - - - - Tier 2 721,556 136,941 273,882 410,823 547,764 684,704 721,556 Multi-Family 198,404 - - - - - 57,560 Non-Residential 446,669 - - - - - 129,585 Irrigation 627,599 119,109 238,218 357,328 476,437 595,546 627,599 Projected Usage Reduction 256,050 512,100 768,150 1,024,200 1,280,251 1,536,301 Customer Class
Baseline Usage
(CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
Single-Family
Tier 1 566,273 566,273 566,273 566,273 566,273 566,273 566,273 Tier 2 721,556 584,615 447,674 310,733 173,792 36,852 0 Multi-Family 198,404 198,404 198,404 198,404 198,404 198,404 140,844 Non-Residential 446,669 446,669 446,669 446,669 446,669 446,669 317,084 Irrigation 627,599 508,490 389,381 270,271 151,162 32,053 0 Total Projected Water Sales (CCF) 2,560,501 2,304,451 2,048,401 1,792,351 1,536,301 1,280,251 1,024,200 % Reduction from Baseline 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

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Table 52: Projected Revenue and Potential Revenue Loss

In addition to revenue losses, the City will also see a reduction in water loss expenses (included within the City’s Delivery component), generating cost savings. Table 53 calculates the cost savings from reduced water loss, and Table 54 reflects the FY 2023 net impact of revenue loss to be recovered from Conservation Surcharges for each stage.

Table 53: Water Loss Expense – Cost Savings

Table 54: FY 2023 Net Impact from Conservation Stages

Table 55 takes the net revenue loss in Table 54 and recovers it from the remaining usage from Table 51 to derive Conservation Surcharges for FY 2023, which would be applied to all City variable rates. Table 55 Commodity Rates ($/CCF) FY 2023
Customer Class FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Selected Single-Family
Tier 1 $1.35 $1.39 $1.43 $1.47 $1.51 $1.35
Tier 2 $1.95 $2.00 $2.05 $2.10 $2.15 $1.95
Multi-Family $1.58 $1.62 $1.66 $1.70 $1.74 $1.58
Non-Residential $1.55 $1.59 $1.63 $1.67 $1.71 $1.55
Irrigation $1.76 $1.80 $1.84 $1.88 $1.92 $1.76
Projected Commodity Revenue
Baseline Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 [A] [B] [C] [D] [E] [F] [G]
1 Single-Family
2 Tier 1 $764,468 $764,468 $764,468 $764,468 $764,468 $764,468 $764,468 3 Tier 2 $1,407,034 $1,140,000 $872,965 $605,930 $338,895 $71,861 $0 4 Multi-Family $313,478 $313,478 $313,478 $313,478 $313,478 $313,478 $222,533 5 Non-Residential $692,337 $692,337 $692,337 $692,337 $692,337 $692,337 $491,479 6 Irrigation $1,104,574 $894,942 $685,310 $475,678 $266,045 $56,413 $0 7 Total Projected Commodity Revenue $4,281,892 $3,805,225 $3,328,558 $2,851,891 $2,375,225 $1,898,558 $1,478,481 Revenue Loss Calculation in Line 8 B7 - A7 C7 - A7 D7 - A7 E7 - A7 F7 - A7 G7 - A7 8 Projected Lost Revenue $476,667 $953,334 $1,430,001 $1,906,668 $2,383,335 $2,803,411 % Lost Revenue 11% 22% 33% 45% 56% 65%
FY 2023
Line # Customer Class
Variable Purchased Water Unit Cost
Variable Purchased Water Costs $586,000
÷ Baseline Usage (CCF) 2,560,501
Variable Purchased Water Unit Cost ($/CCF) $0.23
Purchased Water Cost Savings Source Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Reduction in usage (CCF) Table 50 256,050 512,100 768,150 1,024,200 1,280,251 1,536,301 × Variable Purchased Water Unit Cost $0.23 $0.23 $0.23 $0.23 $0.23 $0.23 Purchased Water Cost Savings $58,600 $117,200 $175,800 $234,400 $293,000 $351,600 Incremenal Impact from Conservation Stages Source Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Lost Revenue Table 52 $476,667 $953,334 $1,430,001 $1,906,668 $2,383,335 $2,803,411 Less Purchased Water Cost Savings Table 53 ($58,600) ($117,200) ($175,800) ($234,400) ($293,000) ($351,600) Incremenal Impact from Conservation Stages ($) $418,067 $836,134 $1,254,201 $1,672,268 $2,090,335 $2,451,811

EXHIBIT A
339
City of Livermore – Water Rate Study

Page | 51

through Table 59 identify the Conservation Surcharges for FY 2024 through FY 2027, respectively, using the same approach shown for FY 2023.

Table 55: FY 2023 Conservation Surcharges

Table 56: FY 2024 Conservation Surcharges

Table 57: FY 2025 Conservation Surcharges

Table 58: FY 2026 Conservation Surcharges

Table 59: FY 2027 Conservation Surcharges

Drought Rate (CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Incremenal Impact from Conservation Stages ($) $418,067 $836,134 $1,254,201 $1,672,268 $2,090,335 $2,451,811 ÷ Projected Water Sales (CCF) 2,304,451 2,048,401 1,792,351 1,536,301 1,280,251 1,024,200 Drought Rate (CCF) $0.19 $0.41 $0.70 $1.09 $1.64 $2.40
Drought Rate (CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Incremenal Impact from Conservation Stages ($) $429,678 $859,357 $1,289,035 $1,718,713 $2,148,392 $2,520,479 ÷ Projected Water Sales (CCF) 2,304,451 2,048,401 1,792,351 1,536,301 1,280,251 1,024,200 Drought Rate (CCF) $0.19 $0.42 $0.72 $1.12 $1.68 $2.47
Drought Rate (CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Incremenal Impact from Conservation Stages ($) $441,290 $882,580 $1,323,869 $1,765,159 $2,206,449 $2,589,146 ÷ Projected Water Sales (CCF) 2,304,451 2,048,401 1,792,351 1,536,301 1,280,251 1,024,200 Drought Rate (CCF) $0.20 $0.44 $0.74 $1.15 $1.73 $2.53
Drought Rate (CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Incremenal Impact from Conservation Stages ($) $452,901 $905,802 $1,358,704 $1,811,605 $2,264,506 $2,657,814 ÷ Projected Water Sales (CCF) 2,304,451 2,048,401 1,792,351 1,536,301 1,280,251 1,024,200 Drought Rate (CCF) $0.20 $0.45 $0.76 $1.18 $1.77 $2.60
Drought Rate (CCF) Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Incremenal Impact from Conservation Stages ($) $464,513 $929,025 $1,393,538 $1,858,050 $2,322,563 $2,726,481 ÷ Projected Water Sales (CCF) 2,304,451 2,048,401 1,792,351 1,536,301 1,280,251 1,024,200 Drought Rate (CCF) $0.21 $0.46 $0.78 $1.21 $1.82 $2.67

EXHIBIT A
340

CITY COUNCIL STAFF REPORT
ITEM NO. 5.2

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Jeramy Young, Police Chief
SUBJECT:

Hearing to
introduce an ordinance
adding section 2.36.200 to the Livermore Municipal
Code in compliance with the requirements of Assembly Bill 481 (an act to add sections 7070 through 7075 to the Government Code, relating to military equipment).

RECOMMENDED ACTION

Staff recommends City Council:
1 .

Conduct a Public Hearing to receive input and comments on the proposed equipment policy. 2 .

Introduce an Ordinance adding Section 2.36.200 entitled, “Military Equipment Policy” to the Livermore Municipal Code in compliance with Assembly Bill 481.

SUMMARY
The Livermore Police Department regularly utilizes a wide range of equipment to provide effective public safety service to the community. This variety of equipment provides a multitude of options to help address and de-escalate situations that are often tense, uncertain, and rapidly evolving. Having the availability of different options minimizes the potential for harm to the public and police department staff.

A new state law (AB481) requires City Council to adopt, by ordinance, a policy pertaining to the funding, acquisition, and use of certain types of equipment utilized by the local police department. The law also mandates other considerations related to public engagement and annual reporting.

DISCUSSION
On September 30, 2021, Governor Newsom signed into law Assembly Bill 481, related to law enforcement’s funding, acquisition, and use of certain types of equipment, which the new law identifies as "military equipment". This designation of military equipment is not necessarily synonymous with items regularly utilized by the United States military or surplus items provided to law enforcement agencies through federal programs such as the 1033 program. None of the designated items possessed by the Livermore Police Department were obtained from the federal government through the 1033 program.

Many of the items identified in this legislation have been in local use for years, while others have never been used by the Livermore Police Department. Many of the designated items, such as bean bag 341
launchers, are commonly used as alternatives to higher levels of force, while others are not directly related to the use of force (i.e., command post vehicle and non-weaponized robots/drones used for observation only).

AB 481 was codified in Government Code Sections 7070 through 7075. The bill requires law enforcement agencies to obtain City Council approval of an Equipment Policy via ordinance, consistent with the Requirements of AB 481, at a regular meeting held pursuant to open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of certain equipment identified in the Government Code. All California law enforcement agencies wishing to continue their use of this equipment are required to commence the authorization process by May 1, 2022.

Government Code 7070 designates certain equipment as “military equipment”. Included in that definition are the following items possessed and/or used by the Livermore Police Department within the normal scope of operations (please refer to Attachment 2 for specific quantities and additional information):

• Unmanned, remotely piloted, powered aerial or ground vehicles (note: these items are used for observation purposes only, and do not possess weapons capabilities) • Armored personnel carriers
• Wheeled vehicles that have an attached breaching or entry apparatus

• Command and control vehicles built or modified to facilitate the operational control and direction of public safety units
• Battering rams, slugs, and breaching apparatuses that are explosive in nature (this does not include a handheld, one-person ram)
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue weapons
• Noise-flash diversionary devices and explosive breaching tools • Munitions containing tear gas or OC (pepper spray), excluding standard, service-issued handheld pepper spray
• Kinetic energy weapons and munitions

Livermore Police Department policies and case law dictate when and how certain types of equipment may be used. Departmental equipment, especially any item that could be used as a force option, is expected to be used in a manner consistent with all applicable laws and policies. Department policies also require off
icers t
o
utilize de-escalation and crisis intervention techniques, as well as other alternatives to force when feasible.

In addition to the equipment owned by the City of Livermore, use of allied agency equipment is also subject the requirements of this policy. The use of equipment from allied agencies augments the department's inventory for command and control, scene safety, intelligence gathering, lethal force applications, and less-lethal force applications to meet the vast array of potential circumstances that might require law enforcement action. Many of those allied agency options may never actually be needed but are important tools to have available when facing uncertain and uncommon circumstances.

Assembly Bill 481 allows the governing body of a city to approve the funding, acquisition, or use of such listed equipment,
or other equipment as determined by the governing body to require additional oversight,
within its jurisdiction only if it makes specified determinations, which include the following:

342

1. The equipment is necessary, because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety.

2. The equipment policy (Policy 709) will safeguard the public’s welfare, safety, civil rights, and civil liberties.

3. The equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

4. The policy is approved and adopted.

In addition to the initial requirements of the legislation, law enforcement agencies must also complete the following:

1. Designate a member of the department to act as the coordinator for the listed military equipment.

Compliance: The department has complied with this requirement by designating a Force Options Unit Lieutenant as the coordinator. Additional staff will support the Force Options Unit Lieutenant in meeting all requirements.

2. Identify department equipment that qualifies as military equipment (as defined by Government Code Section 7070) in the current possession of the Livermore Police Department, or the equipment the Livermore Police Department intends to acquire that requires approval by the governing body.

Compliance: The department has complied with this requirement by conducting a related inventory of current equipment (attached hereto and incorporated by reference) and by identifying future acquisitions as part of the budget process.

3. Conduct an inventory of all listed equipment at least annually.

Compliance: The department has completed the current inventory, and has identified the Force Options Unit Lieutenant, who will be responsible for future inventories and reporting.

4. Collaborate with any allied agency that may use listed equipment within the jurisdiction of the Livermore Police Department.

Compliance: The department has collaborated with allied agencies and included allied agency assets in the “Allied Agency Equipment” section of the attached equipment inventory. This collaboration includes the department’s partnership with the Pleasanton Police Department to form a joint SWAT team, known as the East County Tactical Team. Additional forms of listed equipment should not be used in this jurisdiction, except in exigent circumstances with the approval of the Chief of Police or his/her designee.

Any such exigent use shall be reported to the public on the department’s website within 30 days of its use unless it is deemed to be confidential under the law. Applicable reporting shall include a description of the item used, the general reason for its use, and any reasonably known fiscal impact resulting from the equipment use.

5. Prepare for, schedule, and coordinate an annual community engagement meeting to include publicizing the details of the meeting and preparing for public questions regarding the department’s funding, acquisition, and use of listed equipment.

Compliance: The Force Options Unit Lieutenant has been designated to complete this requirement, commencing this year.

6. Prepare an annual report for submission to the Chief of Police and ensure that the report is made available on the department website.

Compliance: The Force Options Unit Lieutenant and the Professional Standards Unit Sergeant have 343
been assigned to complete this task on an annual basis.

7. Establish a procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of equipment listed by Government Code section 7070 and how the department will respond in a timely manner.

Compliance: The Professional Standards Unit Sergeant has been assigned to meet this requirement by adding an applicable section and email link to the Livermore Police Department website.

Staff has worked diligently to comply with all requirements of this legislation. Additionally, staff plans to include future acquisition authorizations through the regular budget approval process. A draft of Livermore Police Department Policy 709 (attached) posted to the department’s website on March 3, 2022.

FISCAL AND ADMINISTRATIVE IMPACTS
This legislation is not expected to have any significant fiscal or administrative impacts beyond the labor required to meet the annual inventory and transparency related requirements.

ATTACHMENTS

1. Livermore Police Department Policy 709 -Military Equipment

2. LPD Military Equipment Inventory- 2022

3. Equipment Inventory Summary

4. Ordinance

Prepared by: Jason Bogerg
Police Captain

Approved by:
____________________________________
Marc Roberts
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
344
Policy
709
Livermore Police Department
Livermore PD Policy Manual
Copyright Lexipol, LLC 2022/03/03, All Rights Reserved.

Published with permission by Livermore Police Department ***DRAFT*** Military Equipment - 1 Military Equipment
709.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
709.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body
– The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Published with permission by Livermore Police Department ***DRAFT*** Military Equipment - 2 709.2 POLICY
It is the policy of the Livermore Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 709.3 MILITARY EQUIPMENT COORDINATOR
The Force Options Unit Lieutenant shall act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Livermore Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.

The military equipment coordinator may delegate the above tasks as he/she deems appropriate, but will be responsible for ensuring the completion of all listed duties. 709.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
[Insert attachment here]
709.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The ATTACHMENT 1
346
Livermore Police Department
Livermore PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/03/03, All Rights Reserved.

Published with permission by Livermore Police Department ***DRAFT*** Military Equipment - 3 military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 709.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy.

Approved equipment includes items used by the East County Tactical Team (ECTT), which is a combined SWAT and Crisis Negotiations Team operated by members of the Livermore and Pleasanton Police Departments. ECTT equipment, as well as known resources from other local entities, such as the Alameda County Sheriff's Office, is listed in the annual inventory as Allied Agency Equipment.

Under exigent circumstances, and with the approval of the Chief of Police or designee, additional types of military equipment may be deployed from other entities to promote the safety and security of the public and/or Livermore Police Department staff. In such cases, the military equipment coordinator shall report the use on the department's website within 30 days of the event unless such information is deemed to be confidential under the law. The report shall include the type of equipment used, the reason it was used, and any fiscal impact from its use. 709.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is ATTACHMENT 1
347
Livermore Police Department
Livermore PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/03/03, All Rights Reserved.

Published with permission by Livermore Police Department ***DRAFT*** Military Equipment - 4 available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 709.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

ATTACHMENT 1
348
Agency Name Military Equipment Inventory 1
LPD Military Equipment (CA GC 7070)
Type Armored vehicle: LPD White Armor
Description Armored vehicle that seats 8-10 personnel with open floor plan that allows for rescue of downed personnel or other victims. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.

Quantity 1
Capabilities Armor rated to .50 cal.

Expected lifespan 10+ years (acquired in 2014)
Manufacturer's description GMC C4500 (custom built) Duramax diesel engine-powered personnel carrier with ballistic glass and armor rated to .50 cal.

Purpose and authorized uses To provide for the safe transport, security, and rescue of agency personnel and citizens in high-risk incidents.

Fiscal impact Vehicle provided by LLNL. Initial outfitting cost $42,012. Annual maintenance cost $6,700.

Legal and procedural rules It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

Required training Agency authored course and annual refresher.

Compliance mechanisms The use of armored vehicles shall only be authorized by a watch commander, SWAT commander, or appropriate supervisor, based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training -Policy 706.

Type Patrol Rifle, Colt
Description COLT 6933EPR is a semi-automatic, light weight, air-cooled, gas- operated, magazine-fed, shoulder fired weapon system. Chambered in .223 Rem/5.56NATO. Generally equiped with a light, electronic sight, and sling.

Quantity 105
Capabilities Semi-automatic fire from close range to anything beyond practical handgun engagement distances.

Expected lifespan 10 years
Manufacturer's description
Built for the demanding use of those who protect our communities everyday, the Colt Enhanced Patrol Rifle (EPR) is the next evolution in the world's most dependable, thoroughly field-tested patrol rifle.

Featuring an extended handguard that accepts modular rail segments for mounting a wide varietyof pro-grade optics, lighting, and ergonomics-enhancing accessories, as well as the highlydurable Magpul® MBUS® Pro Series front and rear back up sights and B5 Bravo buttstock. The Colt EPR reestablishes the Colt AR-15® as the finest tool for local, regional, and national law enforcement agencies.

Purpose and authorized uses To project lethal force when reasonably necessary at a greater distance and with more accuracy than department issued handguns.

Fiscal impact Approximately 10 rifles per year at $2000 per unit, fully equipped, and on-going maintenance cost of approx. $50 per rifle/year.

Legal and procedural rules Use established under policy 300 and 311 for official law enforcement purposes and pursuant to State and Federal law regarding use of force.

Required training POST certification and annual department qualification for authorized users
Compliance mechanisms Policy 300, 311
Type Semi Automatic Rifle, NEMO
Agency Name
ATTACHMENT 2
349
Agency Name Military Equipment Inventory 2
Description Semi-automatic, light weight, air-cooled, gas-operated, magazine-fed, shoulder fired weapon system. Chambered in .308 NATO. Generally equiped with a light, electronic or magnified optic, and sling.

Quantity 3
Capabilities Semi-Automatic fire from close range to anything beyond practical handgun engagement distances.

Expected lifespan 10 years
Manufacturer's description The XO 16-inch is compact and extremely maneuverable. The 16” Bartlein-blank barrel produces groups well into the sub-moa range with quality optics and ammunition. Accuracy is further enhanced with the addition of a Geissle Super Dynamic Enhanced (SD-E) two stage trigger and NEMO’s recoil reducing bolt carrier—an industry first.

Purpose and authorized uses To project lethal force when reasonably necessary at a greater distance and with more accuracy than department issued handguns.

Fiscal impact $5500 per unit, fully equipped plus annual maintenance cost of $100/year per rifle
Legal and procedural rules Use established under policy 300 and 311 for official law enforcement purposes and pursuant to State and Federal law regarding use of force.

Required training Post Certification and annual qualification for authorized users.

Compliance mechanisms Policy 300
Type 12 Gauge Less Lethal Launcher (Shotgun)
Description Remington 870 12 gauge less lethal launcher, generally brightly colored to distinguish from lethal weapons platforms. This platform launches 12 gauge drag-stabilized bean bag rounds and may be equiped with a side-saddle, light, sights, and orange-colored sling
Quantity 26
Capabilities Operational range between 20 and 75 feet
Expected lifespan 10 years
Manufacturer's description (From Remarms website): Remington 870 shotgun has a dependable action that makes it America's favorite, and our continual upgrades make it the most advanced, well-rounded family of pump shotguns around. Along with continually evolving designs, this shotgun’s superiority is a matter of rugged dependability, great pointing characteristics and versatility. In fact, the Model 870™ has been the standard for slide-action performance for more than 60 years.

Purpose and authorized uses Asssit in deescalating conflict to compel an individual to cease thier actions when such munitions present a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact Unit cost of $1000 each, fully equipped, per 10 years.

Legal and procedural rules Policy 300, 311, 307
Required training Lecture, demonstration, practical application Compliance mechanisms Subject to appliacble policies (300, 307) Type 40mm Launcher
Description Single shot, 40mm launcher (may be from different vendors), with 14" barrel. Generally equipped with an electroinc sight, light and brightly colored (orange) sling.

Quantity 7
Capabilities Capable of deploying exact impact 40mm sponge rounds including those with a chemical (OC or CS) payload or marking. Operational range between 5 and 120 feet.

Expected lifespan 10 years
Agency Name
ATTACHMENT 2
350
Agency Name Military Equipment Inventory 3
Manufacturer's description The 40mm Launcher can fire all Defense Technology® 37/40mm and 40mm rounds. It incorporates an aluminum rifled barrel that comes equipped with a top & bottom 12” Picatinny rail and front & rear pop- up adjustable sights. It will support the use of additional optics, sights and accessories with the 12” Picatinny rails and the folding stock allows for convenient carrying and storing of the launcher. A one-point sling w/ quick release is included. Additional rails may be purchased and mounted on the sides of the barrel.

Fiscal impact $2200 per unit, fully equipped.

Legal and procedural rules Policy 300, 307
Required training Lecture, demonstration, practical application Compliance mechanisms Policy 300 and 307
Type 40mm Multi-Launcher
Description A 40mm single-shot launcher inteded to deploy various less lethal munitions. Generally equipped with a brightly colored sling, electronic sight and light.

Quantity 1
Capabilities Capable of deploying chemical payload in the form of OC (oleoresin capsicum) or CS (2-chlorobenzalmalononitrile) or foam projectiles from 5-120 feet.

Expected lifespan 15 years
Manufacturer's description A tactical single shot launcher that features an expandable ROGERS Super Stoc and an adjustable Integrated Front Grip (IFG) with light rail.

The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single and two point sling attachment. The 40LMTS will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems.

Fiscal impact $2500 replacement cost plus ongoing maintenance Legal and procedural rules Policy 300, 307
Required training Lecture, demonstration, practical application Compliance mechanisms Policy 300 and 307
Type FN303 launcher
Description A .68 caliber, Semi-Automatic, lightweight, compressed-air operated, magazine fed, shoulder fired less lethal launcher. Generally equipped with an electronic sight, light, and brightly colored sling.

Quantity 5
Capabilities Capable of deploying .68 caliber polystyrene and bismuth projectiles including those with a chemical (OC powder) payload or marking.

Operational range between 3 and 164 feet.

Expected lifespan 10 years
Manufacturer's description The FN303 Less Lethal Launcher is constructed from durable lightweight polymer with comfortable ergonomics and an easy to operate safety. The FN303 Launcher is equipped with both flip-up iron sights and an integrated MIL-STD-1913 top mounting rail for optical or electronic sights or other accessories. The lightweight polymer magazine holds 15 projectiles and offers a clear rear cover to allow the operator to instantly verify both the payload type and the number of projectiles remaining.

Fiscal impact $2700 per unit, fully equipped, plus ongoing maintenance, compressed air costs.

Legal and procedural rules Policy 300, 307
Agency Name
ATTACHMENT 2
351
Agency Name Military Equipment Inventory 4
Required training Lecture, demonstration, practical application Compliance mechanisms Policy 300, 307
Type Ammunition: .223 Remington 62gr GDSP
Description .223 Speer Gold Dot 62gr GDSP
246 cases (at 500 rounds each)
Capabilities Semi-automatic fire from close range to anything beyond practical handgun engagement distances.

Expected lifespan 10 years
Manufacturer's description
Speer® Gold Dot® ammunition’s reliability has made it the No. 1 choice for law enforcement, and we offer the same performance for self-defense rifle applications. Gold Dot rifle is engineered to provide industry-leading performance in FBI protocol testing through barrels less than 16 inches long. Its bullets are built using Speer’s exclusive Uni-Cor® method. The jacket is bonded to the core one atom at a time, virtually eliminating core-jacket separation and creating a projectile that’s accurate, tough and consistent through all common barriers.

Purpose and authorized uses Agency authorized ammunition for patrol rifle Fiscal impact Replace annual consumption at $290.00
Legal and procedural rules 311.3.6
Required training Continued Professional Training, Post Certification for patrol rifle operators, annual qualification.

Compliance mechanisms Policy 311
Type Ammunition: .223 Remington 55gr FMJ
Description .223 American Eagle (Federal) 55gr Gr. FMJ
Quantity 312 cases (at 500 rounds each)
Capabilities Training ammunition for live-fire practice from close range to anything beyond practical handgun engagement distances
Expected lifespan 10 years
Manufacturer's description Offering outstanding performance at an economical price, Federal American Eagle .223 Remington 55 gr FMJ rifle ammo is boxer primed, brass cased and available in both 20-round box and bulk-packed quantities
Purpose and authorized uses Agency authroized training ammunition for patrol rifle Fiscal impact $190/case to replace annual consumption
Legal and procedural rules Policy 311
Required training Continued Professional Training, Post Certification for patrol rifle operators, annual qualification.

Compliance mechanisms Policy 311
Type Ammunition: .223 Remington Frangible
Description .223 Remington 42 gr RHT ballistcilean cartridge Quantity 142 cases (at 500 rounds each)
Capabilities Training ammunition for use on steel targets Expected lifespan 10 years
Manufacturer's description This frangible ammunition makes an excellent training load for AR-15s and other .223/5.56 NATO rifles due to its non-toxic, non- ricocheting nature. Each .223 Remington cartridge fires a 42 grain compressed metal bullet that disintegrates into powder on contact with a target, leaving behind only non-toxic residue. Ideal for shooting steel targets
Purpose and authorized uses Training ammunition for use on steel targets Fiscal impact $350/case to replace annual consumption
Legal and procedural rules Policy 311
Required training Continued Professional Training, Post Certification for patrol rifle operators, qualification.

Compliance mechanisms Policy 311
Type Ammunition: .308 Winchester Black Hills 168gr. Amax Description .308 Winchester Black Hills 168gr Amax
Quantity 2000 rounds
Capabilities Ammunition for agency authorized Semi-automatic fire from close range to anything beyond practical handgun engagement distances.

Expected lifespan 10 years
Agency Name
ATTACHMENT 2
352
Agency Name Military Equipment Inventory 5
Manufacturer's description Versatile loads optimized for excellent performance.

Purpose and authorized uses Agency authorized ammunition for NEMO rifle Fiscal impact No longer being purchased exhaust existing inventory.

Legal and procedural rules Policy 311 and 408
Required training Continued Professional Training, Post Certification for patrol rifle operators, annual qualification.

Compliance mechanisms Policy 311 and 408
Type Ammunition: .308 Winchester Black Hills 180gr
Accubond
Description Agency authorized ammunition for NEMO rifle Quantity 3500 rounds
Capabilities Ammunition for agency authorized Semi-automatic fire from close range to anything beyond practical handgun engagement distances.

Expected lifespan 10 years
Manufacturer's description This ammunition is new production and non-corrosive in boxer-primed, reloadable brass cases
Purpose and authorized uses Agency authorized ammunition for NEMO rifle Fiscal impact $168/100 to replace annual consumption
Legal and procedural rules Policy 311 and 408
Required training Continued Professional Training, Post Certification for patrol rifle operators, qualification.

Compliance mechanisms Agency authorized ammunition for NEMO rifle Type Ammunition: .308 Winchester Black Hills 168gr. ELD- M
Description Agency authorized ammunition for NEMO rifle Quantity 7300 rounds
Capabilities Ammunition for agency authorized Semi-automatic fire from close range to anything beyond practical handgun engagement distances.

Expected lifespan 10 years
Manufacturer's description This ammunition is new production and non-corrosive in boxer- primed, reloadable brass cases
Purpose and authorized uses Agency authorized ammunition for NEMO rifle Fiscal impact $158.50/100 to replace annual consumption Legal and procedural rules Policy 311 and 408
Required training Continued Professional Training, Post Certification for patrol rifle operators, qualification.

Compliance mechanisms Policy 311 and 408
Type Projectile: 40mm Exact Impact
Description 40mm, foam-tipped kinetic energy projectile fired from an agency- authorized 40mm launcher.

Quantity 343
Capabilities Operational range 5-120 ft.

Expected lifespan 5 yrs.

Manufacturer's description a lightweight, high-speed projectile consisting of a plastic body and a foam (sponge) nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel.

Purpose and authorized uses To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact Approximately 40 per year at $25 per round Legal and procedural rules Refer to policies 300, 307
Required training Department training including qualification Compliance mechanisms Use is subject to the applicable policies (300, 307) Type Projectile: 40mm Direct Impact OC
Description 40mm, foam-tipped kinetic energy projectile fired from an agency- authorized 40mm launcher and carrying an OC payload
Quantity 189 rounds
Capabilities Operational range from 5-120 feet
Expected lifespan 5 years
Agency Name
ATTACHMENT 2
353
Agency Name Military Equipment Inventory 6
Manufacturer's description The 40 mm Direct Impact® Round consists of a plastic body and a crushable foam nose that contains a powder payload. This payload area can hold inert, marking, OC or CS powder. The crushable foam nose dissipates energy upon impact while releasing the powder payload.

Purpose and authorized uses To compel an individual to cease his/her actions when such munitions present a reasonable option, and to deliver a chemical (OC) payload where appropriate. A verbal warning of the intended use of the device should precede its application.

Fiscal impact $35 per round
Legal and procedural rules Refer to policies 300, 307
Required training Department training including qualification Compliance mechanisms Use is subject to the applicable policies (300, 307) Type Projectile: 40mm Direct Impact Marking
Description 40mm, foam-tipped kinetic energy projectile fired from an agency- authorized 40mm launcher and carrying a marking paint payload Quantity 99 rounds
Capabilities Operational range from 5-120 feet
Expected lifespan 5 years
Manufacturer's description The 40 mm Direct Impact® Round consists of a plastic body and a crushable foam nose that contains a powder payload. This payload area can hold inert, marking, OC or CS powder. The crushable foam nose dissipates energy upon impact while releasing the powder payload.

Purpose and authorized uses To compel an individual to cease his/her actions when such munitions present a reasonable option, and to deliver a marking paint payload where appropriate. A verbal warning of the intended use of the device should precede its application.

Fiscal impact $35 per round
Legal and procedural rules Refer to policies 300, 307
Required training Department training including qualification; Compliance mechanisms Use is subject to the applicable policies (300, 307) Type Projectile: 40mm Ferret Round
Description 40mm Barrier penetrator
Quantity 44
Capabilities Barrier pentration to deliver OC or CS payload into a structure from 50- 200 yards. Velocity 450fps.

Expected lifespan 5 years
Manufacturer's description The Ferret® 40mm Round is a frangible projectile filled with chemical agent. It is designed to deliver chemical agents in barricade situations from a 40mm launcher. Spin stabilization from fins and barrel rifling affords maximum stand-off distance and accuracy for safety.

Purpose and authorized uses The Ferret® 40mm Round is non-burning and suitable for indoor use.

Used primarily by tactical teams, it is designed to penetrate barriers, such as windows and hollow core doors. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle.

Fiscal impact $23 per round. Approximately $2500 per year for training and operational readiness.

Legal and procedural rules Policy 300, 307, and 408
Required training Department training including qualification; Compliance mechanisms Policy 300, 307, and 408
Type Projectile: 12ga drag-stabilized bean bag round
Description 12 Gauge drag stabilized bean bag round
Quantity 415 rounds
Capabilities Operational range from 20-75 feet
Expected lifespan 5 years
Manufacturer's description The 12-Gauge Drag Stabilized™ Round is comprised of a translucent 12- Gauge shell loaded with a 40 gram, tear shaped bag made from a cotton and ballistic material blend and filled with #9 shot. This design utilizes four (4) stabilizing tails. The 12-Gauge Drag Stabilized™ Round utilizes smokeless powder as the propellant.

Agency Name
ATTACHMENT 2
354
Agency Name Military Equipment Inventory 7
Purpose and authorized uses To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the intended use of the device should precede its application.

Fiscal impact $6.27 per round
Legal and procedural rules Refer to policies 300, 307
Required training Department training including qualification Compliance mechanisms Use is subject to the applicable policies (300, 307) Type Projectile: .68 caliber PAVA/OC Powder
Description 8.5gram fin-stabilized polystyrene body and non-toxic bismuth forward payload.

Quantity 16 cases of 160 rounds
Capabilities Operational range from 3 to 164 feet
Expected lifespan 3 years
Manufacturer's description This projectile is intended as an irritant for individual suspects, point- specific targets or small area denial. The active ingredient is 0.5% PAVA/OC in a powder form for ease of storage, deployment and clean- up.

Fiscal impact $500 per case
Legal and procedural rules Policy 300, 307
Required training Department training including qualification; Compliance mechanisms Policy 300, 307
Type Projectile: .68 caliber Indelible Paint
Description 8.5gram fin-stabilized polystyrene body and non-toxic bismuth forward payload and a secondary payload of indelible paint.

Quantity 12 cases of 150 rounds
Capabilities Operational range from 3 to 164 feet
Expected lifespan 3 years
Manufacturer's description This projectile is intended for marking suspects and objects with an indelible colorant for later identification, arrest or questioning Purpose and authorized uses To compel an individual to cease his/her actions when such munitions present a reasonable option, and to deliver a marking paint payload where appropriate. A verbal warning of the intended use of the device should precede its application.

Fiscal impact $500 per case
Legal and procedural rules Policy 300, 307
Required training Department training including qualification; Compliance mechanisms Policy 300, 307
Type Projectile: .68 caliber Inert Powder
Description 8.5gram fin-stabilized polystyrene body and non-toxic bismuth forward payload along with a secondary payload of simulated irritant powder.

Quantity 10 cases of 150 rounds
Capabilities Operational range from 3 to 164 feet
Expected lifespan 3 years
Manufacturer's description This projectile is intended for training and contains a simulated irritant powder
Purpose and authorized uses Training projectile for accuracy and scenario training of authorized personnel
Fiscal impact $500 per case
Legal and procedural rules Policy 300, 307
Required training Department training including qualification; Compliance mechanisms Policy 300, 307
Type Kinetic Breaching Tool (KBT)
Agency Name
ATTACHMENT 2
355
Agency Name Military Equipment Inventory 8
Description
A 36" mechanical breaching device designed to be used in any space. This tool employs the best of physics in the form of a self- contained, jack-hammer style impact ram driven by a powder- actuated cartridge. This allows a large amount of energy to be precisely directed into locking mechanisms, hinges, or braces while minimizing the chances of collateral projectiles. This device can be used by officers of all sizes. There is no swinging motion required and can significantly reduce injuries of properly trained officers.

Quantity 1 (1 sought)
Capabilities 8 shots capable of breaching steel security doors.

Expected lifespan 10+ years
Manufacturer's description
A mechanical breaching tool that bridges the gap between traditional mechanical breaching, shotgun breaching, and explosive entry.

T
he KBT utilizes a proprietary .45 Caliber
handgun blank to deliver up to 850 ft/lb of force through a hardened steel ram. Unlike explosive or shotgun breaching, however, all of the force is mechanically driven through a ram.

This means that no projectile or explosive energy leaves the device except for the force of the ram which is permanently captured in the device. The ramming surface is narrow enough to focus on a single hinge, yet powerful enough to breach steel security doors.

Purpose and authorized uses
To provide immediate entry into secure structures to protect life, property, or evidence as necessary and authorized by law.

Fiscal impact
$10,628 initial cost; $800 annually for training and operational ammunition.

Legal and procedural rules
It is the policy of LPD to utilize the KBT only for official law enforcement purposes pursuant to State and Federal law. Refer to policies 321.

Required training Agency-authored orientation course; annual refresher.

Compliance mechanisms
To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type GasRam™
Description
The GasRam™ is a 35-pound metal device with similar
characteristics to a breaching ram (weighted device with handles used to swing the GasRam™ in a pendulum motion). The obvious difference present is a canister and probe designed to deploy gas into specific areas of a structure with minimal risk of starting a fire.

Quantity 2 (1 maintained by LPD and 1 maintained by PPD) Capabilities Deliver 1 canister of irritant into a specific area of a structure.

Expected lifespan 10 years
Manufacturer's description
The GasRam™ is a multi use tool that can be utilized for forced entry as a door ram or be deployed as a pyrotechnic non-Lethal chemical agent delivery system. One or two man delivery teams can use the GasRam™.

Pyrotechnic non-lethal chemical agent can be dispensed through walls, doors, sheet metal siding and into vehicles.

Purpose and authorized uses
Used to deploy non-lethal chemical agents into a structure in order to successfully resolve a barricade situation. This is a de- escalation tactic used prior to potentially forcing conflict inside the structure and placing officers at risk.

Fiscal impact $3,100 initial cost; no expected annual maintenance costs.

Legal and procedural rules
It is the policy of LPD to utilize the Burn Safe only for official law enforcement purposes pursuant to State and Federal law. Refer to policies 300, 307, 321, and 408.

Required training Agency-authored orientation course; annual refresher.

Agency Name
ATTACHMENT 2
356
Agency Name Military Equipment Inventory 9
Compliance mechanisms
To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type BurnSafe™
Description
The BurnSafe™ is designed to deploy gas into a structure with minimal risk of starting a fire. The BurnSafe™ is a double walled container constructed of aluminum, which will contain the flames inside the inner chamber thereby reducing the probability of starting a fire.

Quantity 2 (1 maintained by LPD and 1 maintained by PPD) Capabilities Deliver 1 canister of irritant into a specific area of a structure.

Expected lifespan 10 years
Manufacturer's description
The BurnSafe™ is a double walled container constructed of aluminum. It is designed to contain the flames inside the inner chamber thereby reducing the probability of starting a fire. The BurnSafe™ allows the introduction of significant amounts of pyrotechnic non-lethal chemical agent into the target, which increases the probability of a successful resolution. The use of pyrotechnic agents has been proven to be a more effective non- lethal method of penetrating a fortified structure. The use of the BurnSafe™ will increase your team’s effectiveness and provide you with an alternative delivery system.

Fiscal impact $2,700 initial cost; no expected annual maintenance costs.

Legal and procedural rules
It is the policy of LPD to utilize the BurnSafe™ only for official law enforcement purposes pursuant to State and Federal law. Refer to policies 300, 307, 321, and 408.

Required training Agency-authored orientation course; annual refresher.

Type Community Outreach Vehicle (COV)
Description A mobile office that provides shelter, access to Police Department computer systems, and restroom facilities on extended events.

Quantity 1
Capabilities The COV can also be utilized for SWAT/CNT and other critical incidents, preplanned large events, searching for missing persons, natural disasters, and community events.

Expected lifespan The COV, 20-year lifespan on chassis and vehicle structure. Upgrades were made in 2018 to maintain IT systems.

Manufacturer's description Freightliner Chassis (custom built) vehicle.

Purpose and authorized uses To be used based on the specific circumstances of a given critical incident, large event, natural disaster or community event that is taking place. The COV shall be used by officers trained in their deployment and in a manner consistent with Department policy and training. Furthermore, only officers who have completed the California Class B Commercial driving school and properly licensed will be allowed to drive the COV.

Fiscal impact $996,000 initial cost. Annual maintenance is approximately $4,466.

Legal and procedural rules It is the policy of the Department to use the COV only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.

Agency Name
ATTACHMENT 2
357
Agency Name Military Equipment Inventory 10
Required training The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle throughout the city with an experienced driver.

Driver/operators shall also undergo California Department of Motor Vehicles commercial
vehicle testing.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or appropriate supervisor, based on the specific circumstances of a given critical incident or other law enforcement purpose (policy 706).

Type Breaching Round: Royal Arms TESAR 1
Description Orange Cap 2-3/4” 275 Grain Compressed Copper Frangible 12 Ga Shotgun Slug
Quantity 132
Capabilities Defeats Solid Wood Doors, Locks & Hinges
Expected lifespan 5 years
Manufacturer's description Orange Cap 2-3/4” 275 Grain Compressed Copper Frangible 12 Ga Shotgun Slug
Purpose and authorized uses To provide immediate entry into secure structures to protect life, property, or evidence as necessary and authorized by law. The round is fired from a breaching shotgun and is used to destroy wood doors; both solid & hollow.

Fiscal impact $4.50 per round
Legal and procedural rules It is the policy of LPD to utilize breaching rounds only for official law enforcement purposes pursuant to State and Federal law.

Refer to policies 321 and 408.

Required training Agency-authored orientation course; annual refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Breaching Round: Royal Arms TESAR 2
Description Black Cap 2-3/4” 425 Grain Compressed Copper Frangible 12 Ga Shotgun Slug
Quantity 36
Capabilities Defeats Heavy Locks, Dead-bolts and Hinges (Solid Oak – Steel Doors) Expected lifespan 5 years
Manufacturer's description Black Cap 2-3/4” 425 Grain Compressed Copper Frangible 12 Ga Shotgun Slug
Purpose and authorized uses To provide immediate entry into secure structures to protect life, property, or evidence as necessary and authorized by law. The round is fired from a breaching shotgun and is used to destroy deadbolts, locks and hinges.

Fiscal impact $4.50 per round
Legal and procedural rules It is the policy of LPD to utilize breaching rounds only for official law enforcement purposes pursuant to State and Federal law.

Refer to policies 321 and 408.

Required training Agency-authored orientation course; annual refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Breaching Round: Royal Arms TESCR 3
Description Green Cap 2-3/4” 375 Grain Clayvon® Frangible 12 Ga Shotgun Slug Quantity 36
Capabilities Defeats all locks, cross-bolts and hinges. (Hollow Core Doors – Light Steel doors)
Expected lifespan 5 years
Manufacturer's description Green Cap 2-3/4” 375 Grain Clayvon® Frangible 12 Ga Shotgun Slug Agency Name
ATTACHMENT 2
358
Agency Name Military Equipment Inventory 11
Purpose and authorized uses To provide immediate entry into secure structures to protect life, property, or evidence as necessary and authorized by law. The round is fired from a breaching shotgun and is used to destroy deadbolts, locks and hinges.

Fiscal impact $4.50 per round
Legal and procedural rules It is the policy of LPD to utilize breaching rounds only for official law enforcement purposes pursuant to State and Federal law.

Refer to policies 321 and 408.

Required training Agency-authored orientation course; annual refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Breaching Round: Royal Arms TESAR 4
Description Yellow Cap 2-3/4” 750 Grain Copper/S-70 Steel Frangible 12 Ga Shotgun Slug
Quantity 48
Capabilities Defeats class 3 doors, locks & hinges
Expected lifespan 5 years
Manufacturer's description Yellow Cap 2-3/4” 750 Grain Copper/S-70 Steel Frangible 12 Ga Shotgun Slug
Purpose and authorized uses To provide immediate entry into secure structures to protect life, property, or evidence as necessary and authorized by law. The round is fired from a breaching shotgun and is used to destroy deadbolts, locks, and hinges.

Fiscal impact $5.00 per round
Legal and procedural rules It is the policy of LPD to utilize breaching rounds only for official law enforcement purposes pursuant to State and Federal law.

Refer to policies 321 and 408.

Required training Agency-authored orientation course; annual refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Breaching Round: Royal Arms HP CUTTER
Description Silver Cap 2-3/4” 450 Grain Hardened Steel Slug NON-Frangible 12 Ga Shotgun Slug
Quantity 36
Capabilities Cuts re-bar, penetrates security glass, car doors, punches into engine blocks
Expected lifespan 5 years
Manufacturer's description Silver Cap 2-3/4” 450 Grain Hardened Steel Slug NON-Frangible 12 Ga Shotgun Slug
Purpose and authorized uses To provide immediate entry into secure structures to protect life, property, or evidence as necessary and authorized by law. The round is fired from a breaching shotgun and is used to cut rebar, penetrate security glass, car doors, and
can penetrate engine blocks.

Fiscal impact $5.00 per round
Legal and procedural rules It is the policy of LPD to utilize breaching rounds only for official law enforcement purposes pursuant to State and Federal law.

Refer to policies 321 and 408.

Required training Agency-authored orientation course; annual refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Riot CS or OC Smoke
Description An approximately 2.6"x 6.2" irritant and smoke pyrotechnic device.

Quantity 46
Capabilities This launchable device delivers approximately 65.3 grams of active agent in approximately 20-40 seconds.

Agency Name
ATTACHMENT 2
359
Agency Name Military Equipment Inventory 12
Expected lifespan 5 years
Manufacturer's description Large diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. Specifically for outdoor use and should not be deployed on rooftops, in crawl spaces or indoors due to potential fire hazard. Can be hand thrown or launched. Discharge duration can reach up to 40 seconds.

Purpose and authorized uses This device can be used to conceal tactical movement or to route a crowd.

Fiscal impact $35 per canister.

Legal and procedural rules It is the policy of the Department to utilize chemical agent devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300 and 307.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Spede-Heat™ CS or OC Smoke
Description An approximately 2.62"x 6.12" irritant and smoke pyrotechnic device.

Quantity 50 (additional devices maintained by PPD)
Capabilities This launchable device delivers approximately 81.2 grams of active agent in approximately 20-40 seconds.

Expected lifespan 5 years
Manufacturer's description The Spede-Heat™ CS Grenade is a high volume, continuous burn it expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the can-ister, three on the side and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 2.9 oz. of active agent.

Purpose and authorized uses The device is designed primarily for tactical situations to detect and/or dislodge a barricaded subject. It is used as a de-escalation tool to encourage surrender and minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects.

Fiscal impact $35 per canister. Approximately $1200 per year for training and operational readiness.

Legal and procedural rules
It is the policy of the Department to utilize chemical agent devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300, 307, and 408.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Flameless Expulsion CS or OC Smoke
Description An approximately 1.65"x 7.5" irritant and smoke pyrotechnic device.

Quantity 28 (additional devices maintained by PPD)
Capabilities Delivers approximately 4.5 grams of active agent during its 3 second discharge time.

Expected lifespan 5 years
Manufacturer's description The CS Flameless Expulsion Grenade is a compact, non-pyrotechnic, chemical agent device that provides safe expul-sion without risk of fire.

It is safe to use inside of a residence. Unlike pyrotechnical grenades, this device’s contents are ex-pelled upon actuation of a CO2 cartridge that will affect a con-fined area of approximately 1500 square feet.

This grenade is 7.5 in. by 1.65 in. and delivers approximately .16 oz. of active agent during its 3-second discharge time.

Agency Name
ATTACHMENT 2
360
Agency Name Military Equipment Inventory 13
Purpose and authorized uses The device is designed primarily for tactical situations to detect and/or dislodge a barricaded subject. It is used as a de-escalation tool to encourage surrender and minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects.

Fiscal impact $48 per canister. Approximately $1000 for trainining and operational readiness.

Legal and procedural rules
It is the policy of the Department to utilize chemical agent devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300, 307, and 408.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Baffled CS or OC Smoke
Description An approximately 2.6"x 6.2" irritant and smoke pyrotechnic device.

Quantity 0 (50 sought)
Capabilities Delivers approximately 23.5 grams of active agent during its 3 second discharge time.

Expected lifespan 5 years
Manufacturer's description Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.

Purpose and authorized uses
The device is designed primarily for tactical situations to detect and/or dislodge a barricaded subject. It is used as a de-escalation tool to encourage surrender and minimize the risks to all parties through pain compliance, temporary discomfort, and/or
incapacitation of potentially violent or dangerous subjects.

Fiscal impact $48 per canister. Initial inventory cost $2400. Approximately $1000 for trainining and operational readiness.

Legal and procedural rules
It is the policy of the Department to utilize chemical agent devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300, 307, and 408.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type SAF Smoke™
Description An approximately 2.35"x 6" smoke pyrotechnic device.

Quantity 0 (50 sought)
Capabilities Produces white smoke for 20-40 seconds.

Expected lifespan 5 years
Manufacturer's description The Saf-Smoke™ Grenade was designed for training, but may also be used in operations. The Saf-Smoke Grenade offers the same approximate burn times as the Spede-Heat™ Grenade in CN or CS and the Riot Control Grenade in CN or CS. The similar burn times may make it the appropriate choice for training or simulation deployment of chemical agent canisters. The Saf-Smoke formulation is considered to be less toxic than Hexachloroethane (HC) smoke. The Saf-Smoke Grenade emits a very white smoke.

Purpose and authorized uses The device is designed primarily for tactical situations to conceal officer movements.

Fiscal impact $30 per canister
Legal and procedural rules It is the policy of the Department to use smoke only for official law enforcement purposes.

Agency Name
ATTACHMENT 2
361
Agency Name Military Equipment Inventory 14
Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or
appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Distraction Device: CTS Model 7290
Description A non-bursting, non-fragmenting distraction device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.

Quantity 40 (additional devices maintained by PPD)
Capabilities Produces 175db output and 6-8 million candela of light.

Expected lifespan Until used.

Manufacturer's description The CTS 7290 is the standard for diversionary flash-bang devices. The 7290 produces an 175db and 6-8 million candela of light output. The patented design of the 7290, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output.

Purpose and authorized uses To produce atmospheric over-pressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds)
physiological/psychological sensory deprivation to give officers a tactical advantage.

Fiscal impact $44 per device. Approximately $900 annually for training and operational readiness.

Legal and procedural rules It is the policy of the Department to utilize distraction devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Distraction Device: CTS Model 7290M
Description A non-bursting, non-fragmenting distraction device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.

Quantity 80 (additional devices maintained by PPD)
Capabilities Produces 175db output and 6-8 million candela of light.

Expected lifespan Until used.

Manufacturer's description The CTS 7290M Mini Flash-Bang is the newest generation in the evolution of the Flash-Bang. Our Model 7290M Flash-Bang exhibits all of the same attributes of its larger counterpart but in a smaller and lighter package. The patented design of the 7290M, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output.

Fiscal impact $43 per device. Approximately $900 annually for training and operational readiness.

Legal and procedural rules It is the policy of the Department to utilize distraction devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Agency Name
ATTACHMENT 2
362
Agency Name Military Equipment Inventory 15
Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Distraction Device: CTS Model 7290-9
Description A non-bursting, non-fragmenting multi-bang distraction device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.

Quantity 40 (additional devices maintained by PPD)
Capabilities Produces 9 individual but consecutive bangs contained within one device.

Expected lifespan Until used.

Manufacturer's description The patented multi-bangs feature top and bottom non-fragmenting, minimal movement devices that perform with high reliability incorporating CTS Superior fuze components with the patented and US Army adopted Confidence Clip and pin shroud.

Fiscal impact $153 per device. Approximately $1200 annually for training and operational readiness.

Legal and procedural rules It is the policy of the Department to utilize distraction devices only for official law enforcement purposes, and pursuant to State and Federal law. Refer to policy 300.

Required training POST Basic SWAT Operator course or equivlant; annual department refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or appropriate supervisor, based on the specific circumstances of a given critical incident.

Type Recon Robotics Throwbot®
Description Compact throwable robotic device that provides real time video and audio to the operator.

Quantity 1
Capabilities The unit can be directed to move through a structure and transmit realtime video and audio.

Expected lifespan 10+ years
Manufacturer's description The Throwbot® robot is a throwable micro-robot platform that enables operators to obtain instantaneous video and audio reconnaissance within indoor or outdoor environments. Designed to withstand repeated drops of up to 30 feet (9 m) onto concrete, the Throwbot® robot can be thrown into hazardous situations in order to allow operators to quickly make informed decisions when seconds count.

This micro-robot is designed to be able to crawl over a variety of terrain, clearing obstacles up to 2″ (5 cm) tall.

Purpose and authorized uses This robot can locate and identify subjects, confirm presence of hostages and reveal the room layout. The unit can function as a pole camera facilitating the inspection of attics, rooftops and crawl spaces.

This information crucial for planning and determining the best course of action.

Fiscal impact $16,538 for the initial purchase. No ongoing costs exepected.

Legal and procedural rules It is the policy of LPD to utilize this device only for official law enforcement purposes pursuant to State and Federal law.

Required training Agency authored course and annual refresher.

Compliance mechanisms To be used by officers who have been trained in the proper use as directed by a watch commander, SWAT commander, or appropriate supervisor, based on the specific circumstances of a given critical incident.

Allied Agency Equipment -Type Use Category (note: no fiscal imact or other impacts expected)
Armored Vehicle(s) Use conistent with LPD policies related to simlar equipment Chemical Agents (CS, CN, OC) Use conistent with LPD policies related to simlar equipment Agency Name
ATTACHMENT 2
363
Agency Name Military Equipment Inventory 16
Flash Bangs Use conistent with LPD policies related to simlar equipment UAV's (drones) Used for locating and/or surveilling suspects, missing persons, etc.

Also used for checking locations prior to deploying personnel.

Robots Used for locating and/or surveilling suspects. Also used for checking locations prior to deploying personnel to avoid encountering armed/dangerous subjects.
.50 Cal Rifle Used to penetrate barriers and to incapacitate vehicles that may otherwise be difficult to stop (example: armored vehicles) Explosive Breaching- Detonation Used to defeat breach various entry points Battering Ram (attached to vehicle) Used to defeat breach various entry points Gas Ram/Pole (attached to vehicle) Used to defeat breach various entry points and deploy chemical agents where appropriate
Less Lethal Launchers/Munitions Use conistent with LPD policies related to simlar equipment Armored Tractor(s) Used to access areas when unsafe to do so by other means Expected Acquisitions (FY 21-22 / FY 22-23) Use Category Additional purchases of current inventory items re-supply and additions to most authorized categories in order to maintain operational readiness. See individual items above for intended use, fiscal impacts, and additional information Agency Name
ATTACHMENT 2
364
AB 481 Identified Equipment Used by Livermore PD
Used by Allied Agencies
(may be shared with
Livemore PD )

1. Weaponized aircraft, vessels, or
vehicles of any kind No No

2. TASER shockwave, microwave
weapons, water cannons, and LRADs No No

3. Any firearm or accessory designed to
launch explosive projectiles No No

4. Tracked armored vehicles No Yes

5. Firearms of .50 caliber or greater No Yes

6. Battering rams, slugs, and breaching
apparatuses that are explosive in nature No
Yes

7. Vehicle with breaching apparatus No Yes

8. Firearms identified as assault weapons Yes Yes

9. Noise‐flash diversionary devices and
explosive breaching tools Yes (noise‐flash only)
Yes (noise‐flash and
explosive breaching tools)

10. Munitions containing tear gas/OC
(pepper spray) Yes Yes

11. Kinetic energy weapons/munitions Yes Yes

12. MRAP or armored vehicle Yes
(armored only) Yes (armored only)

13. Command Vehicle Yes Yes

14. Unmanned aerial or ground vehicles Yes (ground only) Yes ATTACHMENT 3
365
ORDINANCE NO.___________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA AN ORDINANCE ADDING SECTION 2.36.200 MILITARY EQUIPMENT

POLICY TO THE LIVERMORE MUNICIPAL CODE IN COMPLIANCE
WITH ASSEMBLY BILL 481
On September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481 (creating Government Code section 7070, et seq.), relating to the use of military equipment by California law enforcement agencies.

AB 481 seeks to provide transparency, oversight, and an opportunity for meaningful public input on decisions regarding whether and how military equipment is funded, acquired, or used by local police departments.

The Livermore Police Department is in possession of certain items of equipment that qualify as “military equipment” under AB 481.

AB 481 requires that a law enforcement agency possessing and using such qualifying equipment must prepare a publicly released, written, Military Equipment Policy covering the inventory, description, purpose, use, acquisition, maintenance, fiscal impacts, procedures, training, oversight, and complaint process, applicable to the Department’s use of such equipment.

The Military Equipment Policy and supporting information must be approved by the governing body by ordinance, and reviewed annually; and The City Council of the City of Livermore, having received the information required under AB 481 regarding the Livermore Police Department’s use of military equipment as defined in said law, deems it to be in the best interest of the City to approve the Military Equipment Policy as set forth herein.

NOW, THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF
LIVERMORE AS FOLLOWS:

Section 1. Addition to the Code. That a new Section 2.36.200 is added to Chapter 2.36 Police Department and Police Reserve of Title 2 Administration and Personnel in the Livermore Municipal Code to read as follows:

2.36.200 Military Equipment Policy.
(a) The City Council has made the following determinations:
(1) The military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety;
366
ORDINANCE NO.___________
(2) The proposed military equipment policy (“Policy”) will safeguard the public’s welfare, safety, civil rights, and civil liberties; (3) The equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety (if any);
(4) Prior military equipment use complied with the applicable equipment use policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. (b) The Police Department has submitted a proposed Policy to the City Council and has made those documents available on the Police Department’s website for at least 30 days prior to the public hearing concerning the military equipment at issue.
(c) The Policy was considered by the City Council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M.

Brown Act, at which public comment was permitted.
(d) The Policy shall be made publicly available on the Police Department’s website for as long as the military equipment is available for use. (e) The Police Department shall submit an annual military equipment report to the City Council, containing the information required in Government Code section 7072, and the City Council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in (a)(1)-(4) above.
(f) The City Council shall review this ordinance, and vote on whether to renew it, on an annual basis at a regular meeting, in accordance with Government Code section 7071(e)(2).
(g) The City Council approves the Policy and its use and finds that it satisfies the requirements of Government Code Section 7070(d).

Section 2. Environmental. The passage of this ordinance is not a project according to the definition in the California Environmental Quality Act and, therefore, is not subject to the provisions requiring environmental review.

Section 3. Severability. If any part of this ordinance is declared invalid by a court, such invalidity shall not affect any of the remaining parts. 367
ORDINANCE NO.___________
Section 4. Publication. This ordinance shall be published once in a newspaper of general circulation of the city of Livermore within fifteen days after its adoption.

Section 5. Effective date. This ordinance shall take effect 30 days after its adoption.

The foregoing ordinance was introduced at the meeting of the City Council of the City of Livermore held on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

The foregoing ordinance was adopted at the meeting of the City Council of the City of Livermore held , by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MAYOR, CITY OF LIVERMORE
ATTEST: APPROVED AS TO FORM:
/s/ Kelly J. Trujillo
Marie Weber Kelly J. Trujillo
City Clerk Assistant City Attorney
Attachments to staff report incorporated by reference:

1. Lexipol Policy 709 “Military Equipment”

2. Inventory of Military Equipment as of January 1, 2022 368

CITY COUNCIL STAFF REPORT
ITEM NO. 5.3

DATE:

April 11, 2022
TO:

Honorable Mayor and City Council
FROM:

Paul Spence, Community Development Director
SUBJECT:

Hearing to consider a proposal to amend the Downtown Specific Plan regarding outdoor dining, outdoor dining guidelines, and amend the Livermore Municipal Code, adding Chapter 5.6,
Outdoor Dining Permit
, to establish an Outdoor Dining Ordinance, including
a permitting process.

RECOMMENDED ACTION

The Planning Commission and staff recommend the City Council:
1 .

Adopt resolutions finding that the project is exempt under the California Environmental Quality Act and that the project is consistent with the 2009 Subsequent Environmental Impact Report for the Downtown;
2 .

Adopt a resolution approving Specific Plan Amendment (SPPA) 22-002 for changes to outdoor dining standards in the Downtown Specific Plan; and
3 .

Introduce an Ordinance
amending Title 5, adding Chapter 5.60 Outdoor Dining Permit, of the Livermore Municipal Code

SUMMARY
In 2004 the City Council adopted the Downtown Specific Plan (Specific Plan). The Specific Plan guides the community vision for downtown growth, development, and economic revitalization. The Specific Plan strategies rely on blending public actions and private activities to continue transforming the downtown into Livermore’s center for the arts, entertainment, and commerce. The Specific Plan dually serves as a policy and implementation document, providing a strategy for change and a regulatory framework to guide and govern future development within the downtown.

Chapter 5 (Development Standards – Core) and Chapter 6 (Design Standards and Guidelines – Outdoor Dining/ Seating) of the Specific Plan address rules and regulation for Outdoor Dining and Chapter 10 covers Implementation Standards. The intent of outdoor dining is to provide a unique dining experience for visitors and encourage a culturally and economically vibrant downtown core district.

The provisions for outdoor dining have not changed since adoption of the Specific Plan in 2004. The 369
proposed Amendment would update these provisions to reflect an expansion of outdoor dining areas and simplify the permitting process.

Through the COVID-19 pandemic, the City allowed businesses to temporarily expand dining and other business activities outdoors into private parking lots, sidewalks, public parks, and public parking spaces.

Recognizing the urgency and hardship placed on businesses due to the prohibition and subsequent limitations placed on indoor dining, the City doubled the number of parking spaces available for outdoor dining. The expansion up to 56 spaces from 28 pre-pandemic spaces was based primarily upon requests from restaurants. The formal consent of a neighboring property owner was not required for spaces fronting neighboring businesses, and design standards were relaxed to allow for a rapid expansion of outdoor dining. Other landscaped areas were also made available for businesses with minimal or no adjacent public parking spaces to increase their dining area and preserve the economic health of downtown.

Over two years have passed since the date the initial emergency order went into effect. Downtown businesses and community members continue to express support for balancing the expansion of outdoor dining with the provision of convenient public parking. The proposed amendments are the result of collaboration between downtown businesses, Livermore Downtown, Inc., and key staff across the City organization, and evaluation of outdoor dining programs in other jurisdictions, including Mountain View, Pleasanton, San Mateo, and Walnut Creek. Adoption of the Specific Plan Amendment and implementing ordinance will establish the framework for outdoor dining to continue contributing to a vibrant and active Downtown Core.

DISCUSSION

PROJECT DESCRIPTION
The proposal will expand the area permitted for outdoor dining by adding J, K, and McLeod Streets (between First and Second). The percentage of spaces available for outdoor dining will remain 25 percent of total parking spaces. However, the increase in the size of the overall dining district will provide a larger number of flex zone dining spaces. The 42 resulting spaces available for outdoor dining is midway between the pre-pandemic count of 28 spaces and the maximum usage during the pandemic of 56 spaces.

The project will establish two districts located east and west of Livermore Avenue. Each district will allow up to 25 percent of available parking spaces for outdoor dining use within that district. The districts are listed below:

District 1
: First Street from M Street to Livermore Avenue and segments of J and K Streets from First to Second Street;
District 2
: First Street from Livermore Avenue to Maple Street and a segment of McLeod Street from First to Second Street.

Restaurants are also proposing to use other landscape areas for outdoor dining, including the flagpole plaza, and other smaller landscape areas in several locations. Staff is working with a consulting landscape architect to evaluate design alternatives that would allow outdoor dining in these areas to remain longer term. Restaurants that are currently utilizing these landscape areas for outdoor dining will be permitted to continue until a long term plan is developed and the areas are improved during the offseason. The proposed ordinance would apply to use of the public right-of-way for outdoor dining in 370
public parking stalls, plazas, and sidewalks.

Staff is also evaluating the issue of appropriate noise standards for live music in the downtown and plans to both monitor music levels associated with existing operations and conduct additional noise tests in the downtown. A staff recommendation on noise standards will return to Council for consideration at a future meeting.

Specific Plan Amendment
The Specific Plan Amendment will update the Downtown Specific Plan to include the proposed expansion of the flex zone. The proposed amendments aim to address concerns and harness the positive aspects of the outdoor dining program. Staff from throughout the organization (Building, Engineering, City Attorney's Office, Planning and Public Works) worked together to ensure the amendments would be practical to implement and allow for proper maintenance. The proposed amendments modify the following Specific Plan chapters in redline, each summarized below:

Chapter 5 – Development Standards - Core (see Exhibit B to Resolution - Project Approval) Chapter 6 – Design Standards and Guidelines - Outdoor Dining/ Seating (see Exhibit C to Resolution - Project Approval )
Chapter 10 – Implementation (see Exhibit D to Resolution - Project Approval)

Chapter 5 – Development Standards – Core
Chapter 5 provides development standards for the Downtown Specific Plan’s land use plan areas.

Development standards include permitted and conditionally permitted uses, density, setbacks, height, and open space provisions. The primary intent of the Downtown Core is to promote the continued development and revitalization of the City’s pedestrian-oriented downtown district that serves as the center of the Livermore community, a unique shopping district, and as a neighborhood hub for the residences surrounding it.

The proposed revisions to this chapter (see Exhibit B to Resolution - Project Approval) include an increase in the number of parking spaces available for outdoor dining by adding sections of J, K and McLeod Streets between First and Second Street. The number of parking spaces available for outdoor dining would remain at 25 percent of all parking spaces in each of two districts. One district is on First Street from Livermore Avenue to M Street, including J, and K Streets between First and Second Streets (District 1). The second district is on First Street from Livermore Avenue to Maple Street, including McLeod Street between First and Second Streets (District 2). Outdoor dining would also be permitted in the public right-of-way, including sidewalks, designated plaza areas and other landscape areas.

Chapter 6 – Design Standards and Guidelines – Outdoor Dining/ Seating Chapter 6 provides design standards for outdoor dining including allocation of dining areas, fixtures and furniture, and signs (see Exhibit C to Resolution - Project Approval). Outdoor dining areas located within on-street parking areas must be directly in front of the restaurant that is requesting use of the area.

Currently the Specific Plan allows up to a maximum of one or two parking spaces depending upon linear frontage of the restaurant use. The proposed policy would allow the Community Development Director to allocate one additional space on one side of the business’ extended property lines. Expanding beyond the business’ extended property lines would also require written consent from the neighboring property owner, to the extent practicable, and neighboring tenant. The minimum width of sidewalk corridors between outdoor dining fencing and outdoor fixtures (trellises, planter pots, benches, etc.) will continue to comply with the Americans with Disabilities Act (ADA) standards but be decreased from six feet to five 371
feet. Additionally, outdoor dining areas will be required to comply with the Design Guidelines for table coverings, umbrellas, waste disposal, lighting, tables and chairs.

The proposed revisions to this chapter amend the allocation of the flex zone to add J, K, and McLeod Streets in the downtown core but continue the prohibition of flex zone dining on L Street and Livermore Avenue. L Street and Livermore Avenue are excluded from the outdoor dining program due to the lack of diagonal parking, higher vehicular speeds, and their roles as major north-south connector streets.

Chapter 10 – Implementation
Chapter 10 provides guidelines for implementing the Outdoor Dining Permit (see Exhibit D to Resolution - Project Approval). The Outdoor Dining Permit section is revised to reference the application procedures set forth in the proposed Outdoor Dining Permit Ordinance, Chapter 5.60 of the Livermore Municipal Code (see Exhibit B to the Ordinance). An application for an encroachment permit will not be required.

However, the applicant will be required to enter into an Outdoor Dining Maintenance and Removal Agreement with the City as part of the application. The duration of the annual permit will be from March to October. The applicability section will also be revised to include J, K, and McLeod Streets.

Municipal Code Amendment
The ordinance will implement the Specific Plan and establish rules and regulations in conjunction with the regulations set forth in the Downtown Specific Plan and the Outdoor Dining Guidelines. Specifically, the Municipal Code Amendment (MUNI 22-001) will add Chapter 5.60 - Outdoor Dining Permit to the Livermore Municipal Code (see Exhibit B to the Ordinance). The purpose of the Ordinance is to codify an Outdoor Dining Permit and authorize the City to implement the outdoor dining policy through administrative guidelines. The Ordinance will simplify the application process by eliminating the need for a separate encroachment permit and consolidating application fees. It will also facilitate enforcement through administrative due process.

Outdoor Dining Permit Fee
The permit fees for Outdoor Dining Permits were waived during the pandemic. The City’s fee schedule currently identifies several fees for use of the right-of-way such as sidewalks, plazas, parking stalls, and landscaped areas (see Figure 1 below).

Figure 1.

Outdoor Dining Permit Processing Fee
$500.00
Electrical Service Charge
$40.00
Annual Maintenance Charge
$0.15 per square foot
One-time Maintenance/ Damage Deposit
$279.00
Staff is proposing to simplify the fee structure and start collecting the fees shown below in figure 2 for the next season in 2023.

Figure 2.

Annual Maintenance/ Damage Deposit
$400.00
Use of Right-of-Way
$1.00 per square foot

The proposed fee structure would remove the processing fee and electrical service charge from the 372
previous fee structure but would increase the annual Maintenance/Damage deposit to $400. The use of the right-of-way would be assessed at a rate of $1.00 per square foot. One parking stall measures approximately 187 square feet and would be assessed at approximately $1,500 for the eight month outdoor dining season. The annual Maintenance/Damage deposit is refundable following inspection and confirmation by the Public Works Department that there are no damages to public improvements. The Outdoor Dining Permit fee would not fully recover costs, but will contribute toward the costs for installation and maintenance of the planter pots, landscape irrigation, removal, and parking enforcement.

The proposed Downtown Specific Plan Amendment and Ordinance will facilitate the continued revitalization of the Downtown Area as envisioned in the Downtown Specific Plan, thus furthering the goals, revitalization strategy, objectives, and land use and development policies of the 2003 General Plan and Downtown Specific Plan. Therefore, the Planning Commission and staff recommend the City Council approve the proposed Downtown Specific Plan Amendments and introduce an Ordinance for an outdoor dining permit.

ENVIRONMENTAL DETERMINATION
The proposed project is exempt from review under the California Environmental Quality Act (CEQA), each as a separate and independent basis, per CEQA Guidelines Section 15301 (Existing Facilities), Section 15304 (Minor Alterations to Land), and 15601 (b)(3) (Common Sense Exemption). Minor alterations to existing streets, such as outdoor dining, that do not create additional automobile lanes are exempt under Section 15301 (Existing Facilities). Minor or temporary use of land having no permanent effect on the environment, such as outdoor dining, is exempt under Section 15304 (Minor Alterations to Land). Section 15061(b)(3) of the CEQA Guidelines allows a commonsense exemption based on CEQA applying only to projects which have the potential for causing a significant effect on the environment. The proposed Specific Plan Amendment includes changes to development and design standards for outdoor dining in the Downtown Core Area but does not increase the overall density of development or intensification of use in the Downtown Area.

On February 9, 2004, the City of Livermore certified the Program Environmental Impact Report for the Livermore Draft General Plan and Downtown Specific Plan (State Clearing House No. 2003032038) and adopted Findings and Statements of Overriding Consideration concerning significant and unavoidable cumulative adverse impacts associated with traffic, air quality, and noise. On March 30, 2009, the City certified the Subsequent Environmental Impact Report for the Downtown Specific Plan Amendments (State Clearing House No. 2008092085). The project is consistent with the 2009 Subsequent Environmental Impact Report for the Downtown Specific Plan Amendments. The proposed amendments for outdoor dining are consistent with and do not exceed the development assumptions evaluated in the Previous EIR and would not result in substantially more severe environmental impacts than those analyzed in the Previous EIR. Since adoption of the Previous EIR, there has been no substantial changes nor has any significant new information become available which would require changes in the Previous EIR.

FISCAL AND ADMINISTRATIVE IMPACTS

The proposed amendments will expand outdoor dining opportunities in the Downtown Core compared to before the pandemic. The expanded dining opportunities will support the vitality of downtown by attracting additional patrons while preserving adequate on-street parking. Increased business activity will potentially increase the amount of sales tax revenue collected by the City. The amendments also include 373
new permit requirements. These changes require staff time to review and approve new permits and then process annual renewals.

Since the original adoption of the Downtown Specific Plan in 2004, the City has provided significant subsidies to support outdoor dining as a part of the revitalization strategy for the area. Fees related to outdoor dining have only recovered a small portion of the total costs to administer and maintain the program. The proposed fees will roughly double the current fees in order to ensure that flex zone areas continue to be efficiently allocated between parking and dining uses. The proposed permit fees, to be collected in 2023 and after, will offset approximately half of the staff time and costs associated with processing applications, maintenance of the outdoor dining area and an increase in parking enforcement.

ATTACHMENTS

1. Resolution - CEQA Exemption

2. Exhibit A - Planning Commission Resolution No. 06-22

3. Resolution - CEQA - Prior EIR

4. Exhibit A - Planning Commission Resolution No. 05-22

5. Resolution - Project Approval - SPPA22-002

6. Exhibit A - Planning Commission Resolution No. 07-22

7. Exhibit B - Chapter 5 Development Standards Downtown Core

8. Exhibit C - Chapter 6 Design Standards and Guidelines - Outdoor Dining and Seating

9. Exhibit D - Chapter 10 Implementation

10. Ordinance

11. Exhibit A - Planning Commission Resolution No. 08-22

12. Exhibit B - Outdoor Dining Ordinance

Prepared by: Kam Purewal
Assistant Planner

Approved by:
____________________________________
Marc Roberts
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
374
RESOLUTION NO.

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION FINDING THAT THE SPECIFIC PLAN AMENDMENT AND

THE MUNICIPAL CODE AMENDMENT ARE EXEMPT FROM THE

PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
SPECIFIC PLAN AMENDMENT (SPPA) 22-002; MUNICIPAL CODE
AMENDMENT (MUNI) 22-001
The City initiated applications for Specific Plan Amendment (SPPA) 22-002 and Municipal Code Amendment (MUNI) 22-001, to amend the Downtown Specific Plan provisions listed in Chapters 5, 6, and 10 for outdoor dining within the Downtown Specific Plan and amend the Livermore Municipal Code to establish an Outdoor Dining Ordinance, including a permitting process (“Project”). The proposed changes will expand the outdoor dining area by adding J, K, and McLeod Streets, reduce the duration of the Outdoor Dining Season from March to October, and include minor changes to the design standards and allocation method for outdoor dining.

On April 5, 2022, at a duly noticed public hearing, the Planning Commission considered the Project, made the necessary findings, and adopted Planning Commission Resolution No. 06-22 recommending the City Council find the Project exempt from the provisions of the California Environmental Quality Act (“CEQA”).

On April 11, 2022, the City Council held a duly noticed public hearing to consider the Planning Commission and staff recommendations, all public comments and testimony, and findings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that prior to taking action on the projects, and at a properly noticed public hearing, the City Council reviewed written and oral staff reports, conducted a public hearing on the Project and took testimony, and received into the record all pertinent documents related to the Project (collectively, the “Record Evidence”). The City Council’s determination is based on the Record Evidence, which is incorporated into this Resolution by reference.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore, has considered the findings made in Planning Commission Resolution No. 06-22 attached hereto as Exhibit A, and the City Council hereby adopts the same findings by this reference and incorporates them as their own findings as part of this resolution. Based upon the City Council's own independent review of the Record Evidence and considerations, the City Council hereby finds that the Project is categorically exempt from CEQA in accordance with CEQA Guidelines Sections: 15301, Class 1, Existing Facilities, and Section 15304, Class 4, Minor Alterations to Land.
375
RESOLUTION NO.

Section 15301, Class 1, allows permitting, leasing, and licensing or minor alterations of existing streets, sidewalks, and similar alterations to existing facilities that do not create additional automobile lanes.

Section 15304, Class 4, allows for minor alterations to public or private land and minor temporary use of land having negligible or no permanent effects on the environment.

Outdoor Dining is a seasonal activity beginning in March and ending in October and will consist of minor alterations to parking spaces.

Exceptions - Section 15300.2
None of the exceptions to the categorical exemption listed in CEQA Guidelines Section 15300.2 apply, as described below.

1. Location. The project area is within the Downtown Core District would be consistent with the General Plan and Downtown Specific Plan. The project site is not located within an otherwise environmentally sensitive area. The existing downtown core area is the surrounding urban developed land.

2. Cumulative Impact. The project is a minor expansion of use with negligible effects on the environment. The project would not result in any significant impacts, and its contribution to regional growth is not cumulatively considerable. Therefore, the Project will not result in any cumulative impacts.

3. Significant Effects. There is no reasonable possibility that the Project will have a significant effect on the environment due to unusual circumstances. There is no evidence that any unusual circumstances exist.

4. Scenic Highways. The project is not affected by State Scenic Highway policies.

The project site is not located along any of the scenic routes identified as a Scenic Highway by the California Department of Transportation. No damage to State identified scenic resources will occur.

5. Hazardous Waste Sites. The public areas for outdoor dining include sidewalks, parking spaces, and plazas that are not on the list of hazardous waste facilities compiled pursuant to California Government Code section 65962.5, which comprises the following five parts: the list of Hazardous Waste and Substances sites from the Department of Toxic Substances Control (DTSC) EnviroStor database; the list of Leaking Underground Storage Tank (LUST) sites from the State Water Resource Control Board (SWRCB) Geotracker database; the list of solid waste disposal sites identified by the SWRCB with waste constituents above hazardous waste levels outside the waste management list; the list of active Cease and Desist Orders or Cleanup and Abatement Orders that concern the discharge of wastes that are hazardous materials; or the list of hazardous waste facilities subject to corrective action pursuant to section 25187.5 of the Health and Safety Code, identified by DTSC.
376
RESOLUTION NO.

6. Historical Resources. No substantial adverse change will occur to the significance of any historical resource. The project site will use public spaces such as sidewalks, parking spaces, and plazas for outdoor dining.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore has considered the findings made in Planning Commission Resolution No. 06-22, attached hereto as Exhibit A, and the City Council hereby adopts the same findings by this reference and incorporates them as their own findings as part of this resolution. Based upon the City Council's own independent review of the Record Evidence and considerations, the City Council hereby finds that the Project is exempt under CEQA Guidelines Section 15061(b)(3) (common sense exemption) in that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

1. Findings. (SPPA) 22-002 and (MUNI) 22-001 will allow the City to convert public spaces into outdoor dining areas for a period of eight months and establish rules and regulations for the Outdoor Dining permit. The Project does not have the potential for causing a significant effect on the environment and does not propose any new development that would require additional environmental analysis.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore directs the Planning Manager to file a Notice of Exemption with the Alameda County Clerk, if the project is approved.

The documents that constitute the record of proceedings upon which this decision is based can be found in the City Clerk’s Office, 1052 S. Livermore Avenue, in Livermore, California. This resolution shall be effective upon adoption by the City Council.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
377
RESOLUTION NO.

ATTEST: APPROVED AS TO FORM:
/s/ Kimberly D. Cilley
Marie Weber Kimberly D. Cilley
City Clerk Senior Assistant City Attorney
Exhibit A – Planning Commission Resolution No. 06-22
378

EXHIBIT A
379

EXHIBIT A
380

EXHIBIT A
381
RESOLUTION NO. ________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION FINDING THE ENVIRONMENTAL IMPACTS OF SPECIFIC PLAN AMENDMENT (SPPA) 22-002 AND MUNCIPAL CODE AMENDMENT (MUNI) 22- 001 ARE WITHIN THE SCOPE OF THE 2003 GENERAL PLAN AND DOWNTOWN

SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT (STATE CLEARING HOUSE NO. 2003032038) AND THE 2009 FINAL SUBSEQUENT ENVIRONMETAL IMPACT REPORT (STATE CLEARING HOUSE NO. 2008092085)
In 2004, the City of Livermore certified the Environmental Impact Report for the General Plan and Downtown Specific Plan (State Clearing House No. 2003032038). In, 2009, the City certified the Final Subsequent Environmental Impact Report (State Clearing House No. 2008092085).

City applied for Specific Plan Amendment (SPPA) 22-002 and Municipal Code Amendment (MUNI) 22-001 to amend the Downtown Specific Plan provisions listed in Chapters 5, 6, and 10 for outdoor dining within the Downtown Specific Plan and amend the Livermore Municipal Code to establish an Outdoor Dining Ordinance, including a permitting process (“Project”). The proposed changes will expand the outdoor dining area by adding J, K, and McLeod Streets, reduce the duration of the Outdoor Dining Season from March to October, and include minor changes to the design standards and allocation method for outdoor dining.

On April 5, 2022, the Planning Commission held a duly noticed public hearing to consider the Project and staff recommendation, heard public testimony, made the necessary findings, and adopted Planning Commission Resolution No. 05-22 recommending the City Council find the environmental impacts of (SPPA) 22-002 and (MUNI) 22-001 were within the scope of the Environmental Impact Report for the General Plan and Downtown Specific Plan (State Clearing House No. 2003032038) and the 2009 Final Subsequent Environmental Impact Report (State Clearing House No. 2008092085).

On April 11, 2022, the City Council held a duly noticed public hearing to consider the Project, Planning Commission and staff recommendations, and all public comments and testimony, and findings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that prior to taking action on the Project, and at a properly noticed public hearing, the City Council reviewed written and oral staff reports, conducted a public hearing on the Project and took testimony, and received into the record all pertinent documents related to the Project (collectively, the “Record Evidence”). The City Council’s determination is based on the Record Evidence, which is incorporated into this Resolution by reference.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore, has considered the findings made in Planning Commission Resolution No. 05-22, attached 382
RESOLUTION NO. ________
hereto as Exhibit A, and hereby adopts the same findings by this reference and incorporates them as their own findings as part of this resolution. Based upon the City Council’s own independent review of the Record Evidence and considerations, the City Council finds the environmental impacts of (SPPA) 22-002 and (MUNI) 22-001 are within the scope of the Environmental Impact Report for the General Plan and Downtown Specific Plan (State Clearing House No. 2003032038) and the 2009 Final Subsequent Environmental Impact Report (State Clearing House No. 2008092085) in accordance with the California Environmental Quality Act (“CEQA”).

1. Findings. The application for (SPPA) 22-002 and (MUNI)22-001 do not exceed the development assumptions evaluated in the Previous EIR and would not result in substantially more severe environmental impacts than those analyzed in the Previous EIR. Since adoption of the Previous EIR, there have been no substantial changes to Outdoor Dining nor has any significant new information become available which would require changes in the Previous EIR.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore directs the Planning Manager to file a Notice of Determination with the Alameda County Clerk, if the project is approved.

On motion of Council Member , seconded by
Council Member , the foregoing resolution was passed
and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Kimberly D. Cilley
Marie Weber Kimberly D. Cilley
City Clerk Senior Assistant City Attorney
Exhibit A – Planning Commission Resolution No. 05-22
383

EXHIBIT A
384

EXHIBIT A
385
RESOLUTION NO. _

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA A RESOLUTION APPROVING SPECIFIC PLAN AMENDMENT (SPPA) 22-002 The City initiated application (SPPA) 22-002 to amend the Downtown Specific Plan provisions listed in Chapters 5, 6, and 10 for outdoor dining within the Downtown Core (“Project”).

On April 5, 2022, at a duly noticed public hearing, the Planning Commission considered the Project and staff recommendation, heard public testimony, made the necessary findings, and adopted Planning Commission Resolution No. 07-22, attached hereto as Exhibit A, containing the Planning Commission’s actions and/or recommendations thereon.

On April 11, 2022, the City Council held a duly noticed public hearing to consider the Project, Planning Commission and staff recommendations, all public comments and testimony, and findings.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore has considered the Record Evidence and adopted a resolution finding that Specific Plan Amendment (SPPA) 22-002 and Municipal Code Amendment (MUNI) 22-001 are within the scope of the 2003 General Plan and Downtown Specific Plan Environmental Impact Report and the 2009 Subsequent Environmental Impact Report and finding that they are also exempt from the provisions of the California Environmental Quality Act.

BE IT FURTHER RESOLVED that the City Council of the City of Livermore has considered the Record Evidence and findings made in Planning Commission Resolution No. 07-22, attached hereto as Exhibit A, and the City Council hereby adopts the same findings by this reference and incorporates them as their own findings as part of this resolution. Based upon the City Council’s own independent review of the Record Evidence and considerations, the City Council hereby approves (SPPA) 22-002, the text of which is attached hereto as Exhibits B, C & D.

BE IT FURTHER RESOLVEDthat the City Council of the City of Livermore directs the Planning Manager to file a Notice of Determination and a Notice of Exemption with the Alameda County Clerk.

The documents that constitute the record of proceedings upon which this decision is based can be found in the City Clerk’s Office, 1052 S. Livermore Avenue, in Livermore California.
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RESOLUTION NO. _
On motion of Council Member , seconded by Council
Member , the foregoing resolution was passed and adopted on April 11, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
/s/ Kimberly D. Cilley
Marie Weber Kimberly D. Cilley
City Clerk Senior Assistant City Attorney
Exhibit A – Planning Commission Resolution No. 07-22
Exhibit B – Chapter 5 Development Standards Downtown Core Exhibit C – Chapter 6 Design Standards and Guidelines – Outdoor Dining and Seating Exhibit D – Chapter 10 Implementation
387

EXHIBIT A
388

EXHIBIT A
389

EXHIBIT B

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Livermore City CouncilApril 11, 2022

Livermore City Council
April 11, 2022