Agenda packet — Livermore City Council, January 22, 2024 (part 3 of 4)

FINANCIAL STATEMENTS
FO
R THE FISCAL YEAR ENDED JUNE 30, 2023

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Table of Contents
Pag e
Indepe
ndent Auditor’s Report ................................................................................................................ 1 Fin
ancial Statements:

Balance Sheet .................................................................................................................................. 5 Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 6 Notes to Financial Statements ......................................................................................................... 7 Indepe
ndent Auditor’s Report on Measure BB Compliance ......................................................... 10-14

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Independent Auditor’s Report
To the Honorable Mayor and
Members of the City Council of the
City of Livermore, California
Report on the Audit of the Financial Statements
Opinion
We have audited the Financial Statements of the Measure BB Funds, a special revenue fund of the City of Livermore, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the Measure BB Funds of the City, as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasi
s of Matter
As dis
cussed in Note 1, the financial statements specific to Measure BB are intended to present the financial position and the changes in financial position attributable to the transactions of that Fund. They do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

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R
esponsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

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equired Supplementary Information

Management has omitted management's discussion and analysis and budgetary comparison information that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Menlo Park, California
December 31, 2023

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ALANCE SHEET
As of June 30, 2023

Bike and Local Streets
Pedestrian and Roads Total
ASSETS
Cash and Investments 1,188,800$ 5,669,269$ 6,858,069$ Measure BB Direct Local Distribution
Program Receivable 105,317 440,215 545,532 Total Assets 1,294,117$ 6,109,484$ 7,403,601$

LIABILITIES
Accounts Payable -$ 348,557$ 348,557$ Accrued Liabilities - - - Total Liabilities - 348,557 348,557

FUND BALANCE
Restricted for Measure BB Programs
and Projects 1,294,117 5,760,927 7,055,044
Total Fund Balances 1,294,117 5,760,927 7,055,044 Total Liabilities & Fund Balances 1,294,117$ 6,109,484$ 7,403,601$ See accompanying notes to financial statements

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Bike and Local Streets
Pedestrian and Roads Total

REVENUES
Measure BB Direct Local Distribution
Program Revenue
Direct Local Distribution Funds Allocation 593,931$ 2,482,600$ 3,076,531$ Interest (12,220) (55,066) (67,286)
Total Program Revenues 581,711 2,427,534 3,009,245

EXPENDITURES
Measure BB Direct Local Distribution
Expense
General Government 7,349 50,465 57,814 Construction 33,034 434,304 467,338
Total Program Expenditures 40,383 484,769 525,152

REVENUES OVER (UNDER) EXPENDITURES/
NET CHANGE IN FUND BALANCE 541,328 1,942,765 2,484,093

FUND BALANCES
Beginning Fund Balance 752,789 3,818,162 4,570,951 Ending Fund Balance 1,294,117$ 5,760,927$ 7,055,044$ See accompanying notes to financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2023

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OTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

All transactions of the Alameda County Transportation Commission - Measure BB Funds ( Measure BB Funds) of the City of Livermore, California (City), are included as a separate special revenue fund in the basic financial statements of the City. The Measure BB Funds are used to account for the City’s share of revenues earned and expenditures incurred under the City’s local streets and roads, and bike and pedestrian programs. The accompanying financial statements are for the Measure BB Funds only and are not intended to fairly present the financial position of the City and the results of its operations.

B. Basis of Accounting

The accompanying financial statements are prepared on the modified accrual basis of accounting.

Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.

All governmental funds are accounted for using a “ current financial resources ” measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds present increased (revenues and other financing sources) and decreased (expenditures and other financing uses) in net current assets.

C. Description of Funds

The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts. The City uses Special Revenue Funds to account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes.

D. Capital Assets

Capital assets, consisting primarily of infrastructure, are recorded as expenditures and are not capitalized since they will be maintained by the City.

E. Use of Estimates

Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

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OTES TO FINANCIAL STATEMENTS

NOTE 2 – C ASH AND INVESTMENTS

Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. Treasury or its agencies, money market funds investing in such obligations, negotiable certificates of deposit, commercial paper and medium term corporate notes that meet specified rating requirements, mutual funds, guaranteed investment contracts, repurchase agreements, reverse repurchase agreements when authorized by the City’s Council, the State Treasurer’s investment pool (Local Agency Investment Fund), and banker's acceptances. The City did not enter into any reverse repurchase agreements during 2022-2023. All investments are stated at fair value. Pooled investment earnings are allocated quarterly based on the average quarterly cash and investment balances of the various funds are related entities of the City.

See the City’s Annual Comprehensive Financial Report for disclosures related to cash and investments and the related custodial risk categorization.

NOTE 3 – M

EASURE BB FUNDS

Under Measure BB, approved by the voters of Alameda County in 2014, the City receives a portion of the proceeds of an additional 0.5 percent sales tax to be used for transportation-related expenditures. These measures were adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid by property taxes but, rather, would be used for additional projects and programs.

Projects funded by Measure BB 2014 were as follows:

Local Streets and R
oads - To improve, repair, and overlay city streets.

Bike and Pedestrian - To provide sidewalk and ADA improvements and to implement the bikeway network.

NOTE 4 - COMMITMENTS AND CONTINGENCIES

The City participates in several grant programs. These programs have been audited by the City’s independent accountants in accordance with the provisions of applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

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Indepe
ndent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
The Hono
rable City Council
City of Livermore, California
We ha
ve audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Measure BB Funds (Measure BB Funds) of the City of Livermore, California (City), as of and for the year ended June 30, 2023, and have issued our report thereon dated Report December 31, 2023. Our opinion included an emphasis of matter as discussed that the financial statements present only the Fund specific to the Measure BB Funds, and are not intended to present fairly the financial position and results of operations of the City in conformity with accounting principles generally accepted in the United States of America.

Repor
t on Internal Control Over Financial Reporting
In pl
anning and performing our audit of the financial statements, we considered the Fund's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control.

Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control.

A defi
ciency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our co
nsideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

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eport on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Measure BB Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements including the applicable compliance requirements specified in the Measure BB agreement between the City and Alameda County Transportation Commission, and noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Menlo Park, California
December 31, 2023

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I
nde
pendent Auditor’s Report on Compliance
The H
onorable Mayor and Members of the City Council
City of Livermore, California
Report on Compliance
Opinion on Compliance with Measure BB
We have audited the City of Livermore, California (City) compliance with the compliance requirements applicable to the Measure BB Funds (Measure BB Funds) of the City of Livermore, California (City), for the year ended June 30, 2023.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Measure BB Funds for the year ended June 30, 2023.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards) issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s government programs.

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Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, and Government Auditing Standards will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the "Auditor’s Responsibilities for the Audit of Compliance" section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material

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weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing. Accordingly, this report is not suitable for any other purpose.

Me
nlo Park, California
December 31, 2023

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CIT

Y OF LIVERMORE
ALAM

EDA COUNTY TRANSPORTATION COMMISSION

VEHICLE REGISTRATION FEE PROGRAM (VRF)

FINANCIAL STATEMENTS
FO
R THE FISCAL YEAR ENDED JUNE 30, 2023

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Table of Contents
Page
Indep
endent Auditor’s Report ................................................................................................................ 1 Fina
ncial Statements:

Balance Sheet .................................................................................................................................. 5 Statement of Revenues, Expenditures and Changes in Fund Balance ........................................... 6 Notes to Financial Statements .......................................................................................................... 7 Indep
endent Auditor’s Report on Vehicle Registration Fee Program Compliance .................. 10-14

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Indepe
ndent Auditor’s Report
To t
he Honorable Mayor and
Members of the City Council of the
City of Livermore, California
Repor
t on the Audit of the Financial Statements
Opini
on
We hav
e audited the Financial Statements of the Measure F Funds, a special revenue fund of the City of Livermore, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements.

In ou
r opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the Measure F Funds of the City, as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphas
is of Matter
As dis
cussed in Note 1, the financial statements specific to Measure F are intended to present the financial position and the changes in financial position attributable to the transactions of that Fund. They do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

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R
esponsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

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R
equired Supplementary Information

Other Reporting Required by Government Auditing Standards

Menlo Park, California
December 31, 2023

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LANCE SHEET
As of June 30, 2023

Local Streets
and Roads
ASSETS
Cash and Investments
1,376,729
$

Measure F Direct Local Distribution Program Receivable
73,290

Total Assets
1,450,018
$

LIABILITIES
Accounts Payable

$
15,954
Accrued Liabilities
-

Total Liabilities
-

FUND BALANCE
Restricted for Measure F Programs and Projects
1,434,065

Total Fund Balances

Total Liabilities & Fund Balances
$

See accompanying notes to financial statements
1,434,065
1,450,019

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TATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Local Streets
and Roads

REVENUES
Measure F Direct Local Distribution Program Revenue
Direct Local Distribution Funds Allocation
398,824
$

Interest
(7,307)

Total Program Revenues
391,517

EXPENDITURES
Measure F Direct Local Distribution Expenses
General Government
1,530

Construction

Total Program Expenditures
96,223

REVENUES OVER (UNDER) EXPENDITURES
Net Change in Fund Balance
295,295

FUND BALANCE
Beginning Fund Balance
1,138,770

Ending Fund Balance
1,434,065
$

See accompanying notes to the financial statements
94,693

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TES TO FINANCIAL STATEMENTS

NOTE 1 - BACKGROUND

The Measure F Alameda County Vehicle Registration Fee Program (VRF) was approved by the voters in November 2010, with 63 percent of the vote. The collection of the $10 per year vehicle registration fee started in the first week of May 2011. The goal of the VRF is to sustain the County’s transportation network and reduce traffic congestion and vehicle related pollution. The program includes four categories of projects:

• Local Road Improvement and Repair Program (60 percent) • Transit for Congestion Relief (25 percent)
• Local Transportation Technology (10 percent)
• Pedestrian and Bicycle Access and Safety Program (5 percent)

The Alameda County Transportation Commission administers the program and distributes an equitable share of the funds among the four planning areas of the county over successive five year cycles. Geographic equity will be measured by a formula, weighted 50 percent by population of the planning area and 50 percent of the registered vehicles of the planning area.

NOTE 2 - S

UMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity – All transactions of the VRF Program of the City of Livermore, California (City), are combined with other Alameda County Transportation Commission funds which are reported as a separate special revenue fund in the basic financial statements of the City. The VRF Program is used to account for the City’s share of revenues earned and expenditures incurred under the City’s local streets and roads program . The accompanying financial statements include VRF Funds only and are not intended to fairly present the financial position, results of operations and cash flows of the City in accordance with accounting principles generally accepted in the United States of America.

Basis of Accounting - The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.

All governmental funds are accounted for using a “current financial resources” measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Description of Funds - The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self -balancing set of accounts. The City uses a Special Revenue Fund to account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes.

Use of Estimates – Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

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494

OTES TO FINANCIAL STATEMENTS

NOTE 3 – CASH AND INVESTMENTS

Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. Treasury or its agencies, money market funds investing in such obligations, medium term corporate notes that meet specified rating requirements, guaranteed investment contracts and the State Treasurer’s investment pool (Local Agency Investment Fund). All investments are stated at fair value.

Pooled investment earnings are allocated based on the average cash and investment balances of the various funds and related entities of the City.

See the City’s Annual Comprehensive Financial Report for disclosures related to cash and investments and the related custodial risk categorization. The ACFR may be obtained from the City of Livermore, 1052 S.

Livermore Avenue, Livermore, CA, 94550.

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496
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
The Honorable City Council
City of Livermore, California
We ha
ve audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Measure F Funds (Fund) of the City of Livermore, California (City), as of and for the year ended June 30, 2023, and have issued our report thereon dated Report December 31, 2023. Our opinion included an emphasis of matter as discussed that the financial statements present only the Fund specific to Measure F Funds, and are not intended to present fairly the financial position and results of operations of the City in conformity with accounting principles generally accepted in the United States of America.

Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control.

A defici
ency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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R
eport on Compliance and Other Matters
As
part of obtaining reasonable assurance about whether the Measure F Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements including the applicable compliance requirements specified in the Measure F agreement between the City and Alameda County Transportation Commission, and noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpo
se of this Report
The
purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Men
lo Park, California
December 31, 2023

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498
I
nde
pendent Auditor’s Report on Compliance
The H
onorable Mayor and Members of the City Council
City of Livermore, California
Report on Compliance
Opinion on Compliance with Measure F
We have audited the City of Livermore, California (City) compliance with the compliance requirements applicable to the Measure F Funds (Measure F Funds) of the City of Livermore, California (City), for the year ended June 30, 2023.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Measure F Funds for the year ended June 30, 2023.

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Auditor’s Responsibilities for the Audit of Compliance

In performing an audit in accordance with GAAS, and Government Auditing Standards, we:

Report on Internal Control Over Compliance

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Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Me
nlo Park, California
December 31, 2023

EXHIBIT D
501
Independent Accountant’s Report on
Applying Agreed‐Upon Procedures Related To
The Article XIII‐B Appropriations Limit Calculation
For the Fiscal Year Ended June 30, 2023
City of Livermore, California
eidebailly.com

EXHIBIT E
502
Independent Accountant’s Report on Applying Agreed‐Upon Procedures Related to the Article XIII‐B Appropriations Limit Calculation To the Honorable Mayor and Members of the City Council
of the City of Livermore
Livermore, California
We ha
ve performed the procedures enumerated below, on the Appropriations Limit Calculation of the City of Livermore, California (City) prepared in accordance with Article XIII‐B of the California Constitution for the fiscal year ended June 30, 2023. The City’s management is responsible for the Appropriations Limit Calculation.

The
City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in evaluating its Appropriations Limit Calculation and we will report on findings based on the procedures performed. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and associated findings are as follows:

1. We obtained the completed worksheets setting forth the calculations necessary to establish the City's 2022‐2023 appropriations limit calculation and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Fin
ding: No exceptions were found as a result of this procedure.

2. We added last year's limit to the annual adjustment amount and compared the resulting amount to the 2022‐2023 appropriations limit.

Fin
ding: No exceptions were found as a result of this procedure.

3. We compared the current year information to the worksheets described in No. 1 above.

Fin
ding: No exceptions were found as a result of this procedure.

4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by the City Council.

Fin
ding: No exceptions were no as a result of this procedure.

EXHIBIT E
503
We were engaged by the City to perform this agreed‐up on procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the City’s Appropriation Limit Calculation. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We a
re required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed‐up on procedures engagement.

No
procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII‐B of
the California Constitution.

Th
is report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties.

Menlo Park, California
December 31, 2023

EXHIBIT E
504
Inde
pendent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To H
onorable Mayor and Members
of the City Council of the City of Livermore
Livermore, California
We h
ave audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements the of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Livermore, California, (City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 31, 2023. Our report included an emphasis of matter relating to the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements and correction of an error.

Inte
rnal Control over Financial Reporting
In p
lanning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A def
iciency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our c
onsideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We identified a deficiency in internal control, described in the accompanying Schedule of Findings and Responses as items 2023-001 that we consider to be material weakness.

EXHIBIT F
505
C
ompliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City’s Response to Findings

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Findings and Responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report

Menlo Park, California
December 31, 2023

EXHIBIT F
506
City of Livermore
Schedule of Findings and Responses
June 30, 2023

The following finding represents a material weakness related to the financial statements that are required to be reported in accordance with Government Auditing Standards.

2023-001 Restatement of the beginning net position of the governmental activities, the fund balance of the Low Income Housing-Special Revenue Fund and the fund balance of the Nonmajor Governmental Funds

Criteria

Management is responsible for the design, implementation, and maintenance of internal controls to ensure the financial statements are free from material misstatement, whether due to error or fraud. Such internal controls should ensure that all notes receivables are reported on the City’s financial statements.

Condition

The prior year financial statements contained an error that was discovered during the current year. The net position of the governmental activities, the fund balance of the Low Income Housing-Special Revenue Fund and the fund balance of the Nonmajor Governmental Funds underreported housing loans receivables that were tracked by a contractor of the City.

Effect

The City restated its financial statements in accordance with Generally Accepted Accounting Principles (GAAP).

Cause

Many of these loans were incorrectly tracked and were not included in the financial statements.

Recommendation

We recommend that management performs an evaluation of the outstanding loans and work with the City’s contractor to ensure all activities presented in the financial statements are in accordance with GAAP.

Repeat Finding

No.

Views of Responsible Officials

The City agrees with the finding and has restated its beginning net position and fund balance. The City will continue to monitor the activities of the loans in the current year ensuring that all loans are reported on the financial statements.

EXHIBIT F
507
Decem
ber 31, 2023
To Ho
norable Mayor and Members
of the City Council of the City of Livermore
Livermore, California
We have audited the financial statements of the City of Livermore, California (City) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 31, 2023.

Professional standards require that we advise you of the following matters relating to our audit.

We are c
urrently performing the audit of the City’s federal award programs (Single Audit) and anticipate issuing our report thereon prior to March 31, 2023.

Our R
esponsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards
As c
ommunicated in our letter dated June 6, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of its respective responsibilities.

Our re
sponsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reason
able, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are
also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We h
ave provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 31, 2023.

EXHIBIT G
508
Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the fiscal year, except for the implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements as described in note 19 to the financial statements.

No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are related to the City Pension, Other Postemployment Benefits (OPEB), and insurance liabilities.

Management’s estimate of the City Pension, OPEB and insurance liabilities is based on actuarial estimated performed by management specialists.

We evaluated the key factors and assumptions used to develop the management estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.

EXHIBIT G
509
Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to the following:

• Not
e 1 summarizes the City’s accounting policies and describes significant changes in accounting policies due to the implementation of new accounting standards about leases. The effect of the restatement is further described at Note 19.

• Note 11 describes the valuation of the City’s net pension liability and related deferred outflows and inflows of resources. Such amounts are sensitive to the underlying actuarial assumptions used including, but not limited to, the investment rate of return and discount rate. As disclosed, a one percent increase or decrease in the discount rate has a material effect on the City’s net pension liability.

• Note 12 describes the City’s postemployment benefits liability and related deferred outflows and inflows of resources are sensitive to the underlying actuarial assumptions used including, but not limited to, the discount rate and healthcare cost trend rate. As disclosed, a one percent increase or decrease in the discount rate or the healthcare cost trend rate has a material effect on the City’s post-employment benefits liability.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole.

There were no uncorrected or corrected missstatements identified as a result of our audit procedures.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management

EXHIBIT G
510
Circumstances that Affect the Form and Content of the Auditor’s Report

For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. Our report contains an emphasis of matter for the implementation of the GASB Statement 96, Subscription-Based Information Technology Arrangements and an emphasis of matter relating to a correction of an error as follows:

Restatement Due to a Correction of an Error

As discussed in Note 19 to the financial statements, the prior year financial statements contained an error that was discovered during the current year. The prior year financial statements underreported certain notes receivables that were tracked by the City’s contractor. Accordingly, the beginning net position of the governmental activities, the fund balance of the Low Income Housing-Special Revenue Fund and the fund balance of the Nonmajor Governmental Funds has been restated to include the additional beginning balances of the notes receivables. Our opinions are not modified with respect to that matter.

Adoption of a New Accounting Standard and Correction of an Error

As discussed in Note 19 to the financial statements, the City has adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements, for the year ended June 30, 2023. Accordingly, a restatement has been made to the Governmental Activities, Business-Type Activities, the Water, the Sewer and the Storm Water fund’s net position as of July 1, 2022, to restate the beginning net position and fund balances. Our opinions are not modified with respect to this matter.

Representations Requested from Management

We have requested certain written representations from management which are included in the management representation letter dated December 31, 2023.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

EXHIBIT G
511
Other Information in Documents Containing Audited Financial Statements

Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

In accordance with such standards, we have read the introductory and statistical sections of the City annual comprehensive financial report and considered whether such information, or the manner of its presentation, as materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

The financial statements include investment in Livermore Pleasanton Fire Department (Department) using the equity interest method, which we considered to be a significant component of the financial statements of the governmental activities of the City. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of the Department and their environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of Department and completion of further audit procedures.

The financial statements include investment in Livermore Amador Valley Water Management Agency (Agency) using the equity interest method, which we considered to be a significant component of the financial statements of the Water Fund and Business-Type Activities. The financial statements of the Agency were audited by other auditors. Eide Bailly assumed responsibility for the audit of the financial statements of the Agency and no reference is made in the auditor’s report to the other auditor.

Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of the Agency and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of the City and completion of further audit procedures. Additionally, our audit procedures included obtaining and reading their auditor’s report and the related financial statements.

This report is intended solely for the information and use of the governing board, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Menlo Park, California

EXHIBIT G
512

CITY COUNCIL STAFF REPORT
ITEM NO. 5.8

DATE:

January 22, 2024
TO:

Honorable Mayor and City Council
FROM:

Tina Olson, Administrative Services Director
SUBJECT:

Update on Host Community Impact Fee Reserve Policy.

RECOMMENDED ACTION

Staff recommends City Council receive the update.

SUMMARY
The Host Community Impact Fee Reserve Policy was adopted by the City Council at their July 24, 2017 meeting. The purpose of this Policy is to establish adequate reserves for the Host Community Impact Fee (HCIF) revenues to insulate the City’s General Fund from the future obligations associated with the ownership of the Bankhead Theater. The HCIF Reserve Policy calls for regular review and analysis of HCIF revenues to ensure that adequate resources are available to fund debt service and major maintenance and replacement costs of the Bankhead Theater.

DISCUSSION
In September of 2014, the City participated in a complex multi-party settlement agreement which secured the Bankhead Theater as a community facility. To facilitate the purchase of the Bankhead Theater, the City issued a variable rate debt obligation called a Certificate of Participation (COP). The 2014 COP Series A was issued for $9,380,000 in accordance with the Master Settlement Agreement and to be repaid with Host Community Impact Fees (HCIF) collected at the Vasco and Altamont Landfills. In June of 2020 the City issued fixed rate 2020 COPs refinancing the 2014 COPs to eliminate the inevitable interest rate increases that would affect the variable 2014 bond debt service payments. While these fixed payments are higher, they will remain the same regardless of the interest rate swings in the future. The 2020 COPs will be fully redeemed in 2042. If enough HCIF revenue is not available after making debt service payments, the General Fund will make up the shortfall for ongoing major maintenance and replacement costs.

To insulate the City’s General Fund from the financial risks associated with owning the Bankhead Theater, and in support of Council’s goal of long-term financial stability, Council adopted a HCIF Reserve Policy that requires for HCIF revenues received in excess of debt service to be held in reserve for the 513
purpose of providing for the maintenance and replacement of the facility’s major structural and mechanical systems. The policy also requires that this reserve and the factors that dictate its existence be regularly monitored and reported upon to ensure that adequate resources are available when needed.

In January of 2024, the City received an updated report and projection of revenues associated with the Altamont and Vasco Landfills prepared by HFH Consultants, LLC which is included as Attachment 1 to this staff report. This report took into consideration a myriad of factors and assumptions, including no growth at both Vasco and Altamont landfills as well as a yearly average CPI increase of 2.5%. The report states that in the consultant’s opinion, it is reasonable to believe that the cumulative total HCIF revenues for the period between 2024 and 2042 when the 2020 COPs will be redeemed will likely be about $12.14 million (Base Case, Figure 1 from HFH report). Several other scenarios and assumptions were contemplated, and sensitivity analysis was performed for each case. The highest level of cumulative HCIF revenue projected was $17.7 million and the lowest was $7.3 million as shown in the table below.

January 3, 2024
HFH Report
Revenue
Projections

Base Case Projection
Figure 1
$12,144,008
Sensitivity Analysis 1
Scenario
Figure 2
$11,403,863
Sensitivity Analysis 2
Scenario
Figure 3
$8,182,549
Sensitivity Analysis 3
Scenario
Figure 4
$7,296,921
Sensitivity Analysis 4
Scenario
Figure 5
$17,694,603

With so many variables impacting the HCIF revenue stream, it is important to monitor actual performance.

Based on new HCIF revenue projections ending in FY 2041-42, the fixed rate 2020 COP Series A debt service costs, and the need to set money aside to pay for future replacement of the Bankhead’s major structural components and building systems, (Attachment 2, Fund Balance Projection), the HCIF fund reserve is projected to be substantially reduced between FY 2023-24 and FY 2032-33, and will most likely become negative from FY 2033-34 through FY 2037-38 where a temporary General Fund subsidy may be necessary to fund major Bankhead Theater building improvements. The last few years of the debt service - FY 2038-39 through FY 2041-42 - is projected to have positive fund balance.

As such, staff’s recommendation continues to be that all HCIF revenue received beyond that required to cover debt service be held in reserve to ensure that the Bankhead Theater continues to function as a community facility, while minimizing the financial impact to the General Fund.

FISCAL AND ADMINISTRATIVE IMPACTS

There are no administrative or fiscal impacts associated with receiving this report.

COMMUNITY PILLAR
514
5: A City That Works

GOAL
17: Ensure effective use of public resources

ATTACHMENTS

1. Host Community Impact Fee Report

2. Fund Balance Projection

Prepared by: Erik Peterson
Finance Manager

Approved by:
____________________________________
Marianna Marysheva
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
515
M anaging Tomorrow’s Resources Today
590 Ygnacio Valley Road, Suite 105 Robert D. Hilton, Emeritus Walnut Creek, California 94596 John W. Farnkopf, PE
Telephone: 925/977-6950 Laith B. Ezzet, CMC
Fax: 925/977-6955 Richard J. Simonson
www.hfh-consultants.com Marva M. Sheehan, CPA
Robert C. Hilton
January 9, 2024
Ti
na Olson
Director
Administrative Services
City of Livermore
1052 South Livermore Ave.

Livermore, CA 94550
S
ubject: Final Report – Altamont and Vasco Road Landfill Host Fee Revenue Projection – FINAL REPORT
De
ar Tina Olson:

HF&H Consultants, LLC (HF&H) is pleased to provide the City of Livermore (City) this report and projection of revenues ( Projections) from the Altamont Landfill and Resource Recovery Facility ’s (Altamont) and Vasco Road Landfill’s (Vasco) (collectively, the Landfills) host fees (Host Fees) related to the financing of the regional theatre (Regional Theatre).

The Landfill operators pay Host Fees, which are calculated on a per-ton basis, to the City. The Host Fee is collected on every ton of waste disposed at the Landfills throughout the life of the Landfills. Beginning in January 2001, and each January thereafter, the fee (initially twenty-five cents per ton) has been adjusted to reflect the change in the Consumer Price Index (CPI) for the most recent twelve-month period for all urban consumer items in San Francisco, Oakland and Hayward as published by the U.S. Department of Labor Bureau of Labor Statistics. The fees imposed at Altamont are distributed as provided in the “Altamont Settlement Agreement, ” which also limits the sources of out -of-County waste that can be disposed at Altamont.

HF&H organized this report into the following major sections:
• Executive Summary
• Approach
• Discussion
• Consultant’s Opinion

EXECUTIVE SUMMARY
Purpose of Report
The purpose of this report is to present HF&H’s projections of revenues the City will receive from Host Fees paid by Altamont and Vasco.

ATTACHMENT 1
516

Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 2 of 8 ends

Base Case Projection
In our Base Case Projection, we anticipate a yearly average CPI increase of 2.5%, with no growth expected for both Vasco & Altamont landfills, and annual theater expenses escalated to 2023 dollars from 2012 dollars. Based on the information available to us and referenced in this report and the assumptions and limitations described below, we project that the City of Livermore will receive $ 12.14 million in Host Fee revenue between the period 2024 and 2042 (See Figure 1 below). At the projected expense levels of the Regional Theatre, this would result in a fund balance of approximately $294,252 for the City by 2042. This surplus occurs after an annual draw down on the fund balance with a negative balance beginning in 2033.

The surplus is the result of higher revenues from increases to the host fee rate as a result of projected increases to CPI coupled with reduced projected costs over time.

Figure 1 - Base Case Projection

Sensitivity Analyses
Projections of these revenues require us to make assumptions about future events and the actual results may be different than we have assumed in our Base Case Projections. Therefore, in certain cases we have varied our assumptions from those used in the Base Case Projections and project the revenues that result from the revised assumptions.

Our Base Case Projections assume that tonnage will continue to flow to both the Altamont and Vasco landfills at the current levels. Modifying our Base Case Projection, we evaluated the potential effects of diversion resulting from SB 1383 on the total tonnage received by landfills. This assumed a decrease in tons of 3.5% a year for the years 2024-202 7. We also took into account a resumption of annual tonnage increases once the initial impacts of SB 1383 subside assuming a growth rate of 1% annually resuming in 2028. At 2.5% CPI increase per yea r, this would generate $11 .4 million in revenue, ending with a fund balance of negative $445,894 in 2042, and a negative fund balance beginning in 2028 as seen in Figure 2 below.

ATTACHMENT 1
517

Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 3 of 8 ends

Figure 2- Sensitivity Analysis 1

While our Base Case Projection originally considered no growth in tonnage to the landfills, our second sensitivity test adjusted for growth in alignment with the most-recent five-year average of tonnage trends.

In this particular instance, both Altamont and Vasco have undergone declines over the past five fiscal years. Adjusting from our Base Case Projection , we utilized a negative 3% growth adjustment for Altamont, and a negative 15% growth adjustment for Vasco . With a 2.5% CPI increase per year, this adjustment is anticipated to generate $ 8.2 million in revenue , ending with a negative $3.7 million fund balance in 2042, and a negative fund balance beginning in 2028, as seen in Figure 3 below.

Figure 3- Sensitivity Analysis 2

ATTACHMENT 1
518

Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 4 of 8 ends

Similar to Sensitivity Analysis #2, we applied negative growth to the landfills, but with a more substantial annual decline in tonnage and factored in the impacts of SB 1383. Adjusting from the Base Case Projection, in this sensitivity Altamont is projected to have negative 5% growth, Vasco is expected to have negative 17.5% growth, and SB 1383 impacts will be incorporated by introducing a slight 3.5% decline in tonnage in years 2024-2027 (similar to Sensitivity Analysis 1). With a 2.5% annual CPI increase, this would generate an estimated $ 7.3 million in revenue, ending with a negative $4.6 million fund balance in 2042, and a negative fund balance beginning in 2028 as seen in Figure 4 below.

Figure 4- Sensitivity Analysis 3

For the final sensitivity, we tested the assumption in the unlikely event that both landfills experience a steady annual increase in tonnage. Adjusted from our Base Case, we modeled that Altamont & Vasco will experience 3.5% growth in tonnage annually. With a 2.5% annual increase in CPI, this would generate $17.7 million in revenue, ending with a $5.8 million fund balance as seen in Figure 5 below.

This scenario is not to be expected as a result of the current downward trend in tonnage along with anticipated increased diversion levels resulting from SB 1383.

ATTACHMENT 1
519

Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 5 of 8 ends

Figure 5 - Sensitivity Analysis 4

APPROACH
Procedures Used to Prepare the Report
HF&H performed the calculation of the projected Host Fee revenues for the period from 20 23 through 2042. These projections are based on information available to us and referenced in this report from City, county, and state agencies.

Our scope of work was comprised of the following key tasks:

1. The landfill operators provided us with capacity ( ultimate, current permitted, and daily) in addition to any anticipated changes to flow of materials or tonnages through 2035 that would be subject to Host Fees.

2. We obtained from the City the conditional use permits and/or other regulations and agreements authorizing the imposition of the Host Fees to determine the materials to which the Host Fees are applied (i.e., solid waste, construction and demolition debris , and special waste) , the original amount of the Host Fees, and the methods by which the Host Fee is adjusted annually.

3. We identified the key factors affecting the capacity of the Landfills, the flow of materials to the Landfills, and the adjustment of the Host Fees. We researched reliable sources, such as CalRecycle, the Local Enforcement Agency (LEA), and the Alameda County Waste Management Authority (ACWMA) for assumptions regarding the future values of such factors and used these to calculate the projections.

4. Based on the previous tasks, we performed calculations of the projected Host Fees for the period 2023 through 204 2. We then performed certain variance analyses by making alternative assumptions related to the Base Case values for the key factors affecting the projections.

ATTACHMENT 1
520

Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 6 of 8 ends

Limitations
All engagements have certain limitations. As with all such projections, our calculations are based on certain assumptions regarding future events and actual results may differ from such assumptions and those differences may be material. While we believe our calculations have been based on reasonable assumptions, we have performed certain variance analyses to show the impact of changes to such assumptions. The most significant factors that could cause actual results to differ from the proj ections are:

1. The Host Fee is adjusted annually by the change in the Consumer Price Index (CPI) for the most recent 12-month period for all urban consumer items in San Francisco, Oakland and Hayward as published by the U.S. Department of Labor Bureau of Labor Statistics. Future changes to the CPI are speculative and the assumed increases may not be realized.

2. The volumes of material disposed at the Landfills are subject to certain policies (e.g., Alameda County’s goal of 75% diversion from landfill disposal), regulations (e.g., Alameda County’s ban on the disposal of green waste, California Air Resources Contro l Board regulations as part of the Assembly Bill 32 Scoping Plan to implement mandatory commercial recycling statewide, State legislation to achieve 75% diversion of materials from landfill disposal statewide), changes in law (e.g., State imposed recycling and diversion requirements, producer product liability, consumer product packaging), economic factors (e.g., employment, population and average income), and market forces (e.g., competing landfills and alternative technologies).

3. The management of landfill disposal sites brings with it certain risks related to the continuation of operations of the landfill resulting from: maintenance and renewal of permits, engineering, construction, and operation of the landfill; changes in regulations; market risks from future competing landfills and technologies; and, force majeure events.

DISCUSSION
Authority for the Fee
Conditional Use Permits for the Landfills require the operator to pay to the City of Livermore a Host Fee which starts at $0.25 per ton for all solid waste disposed at the Landfills. The fee is adjusted annually, beginning January 1, 2001, to reflect the change in the CPI for the most recent 12 -month period for all urban consumer items in San Francisco, Oakland and Hayward as published by the U.S. Department of Labor Bureau of Labor Statistics. The fees imposed at Altamont are distributed as provided in the “Altamont Settlement Agreement” which also limits the sources of out -of-County waste that can be disposed at Altamont.

Landfill Capacities and Flow
Altamont
Altamont’s current solid waste facility permit allows the operator to accept up to: 11,150 tons per day for disposal; and, 557 refuse vehicles per day. Operating hours are 24 hours per day and the public may deliver waste from 6:00 am to 4 :00 pm Monday through Friday. The permit describes Altamont as having 124.4 million tons of design capacity with an estimated closure date of 2070.

ATTACHMENT 1
521

Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 7 of 8 ends

From FY 2018-2019 to FY 2019-2020, Altamont’s annual solid waste tonnage decreased 8.3%, 0.93% in FY 2020-2021, 0.63% in FY 2021-2022, and 0.06% in FY 2022-2023. This is an average annual decline of 2.48% over that period.

In FY 2022-2023, the solid waste delivered for disposal at Altamont from Alameda County was (98%) and all other sources (2%). In 2011, the solid waste delivered for disposal at Altamont was from Alameda County (63.4%), CCSF (33.2%) and all other sources (3.4%).

Vasco
Vasco’s current solid waste facility permit allows the operator to accept up to 2,518 tons per day for disposal. Operating hours are restricted to 6:00 am to 4 :00 pm Monday through Saturday . The permit describes Vasco as having 25 million tons (33 million cubic yards at 1,500 pounds per cubic yard) of design capacity with an estimated closure date of 2051.

Since FY 2018-2019, Vasco’s annual tonnage has decreased 25.6% in FY 2019-2020, 24.5% in FY 2020- 2021, 3.7% in FY 2021-2022, and 8.4% in FY 2022-2023. This decrease continues to trend down, the result being lower Host Fee revenue for the City.

In FY 2022-2023, the solid waste delivered for disposal at Vasco from Alameda County was (75.8%), San Ramon ( 20.4%) and all other sources ( 3.8%). 86.6% of the solid waste disposed at Vasco comes from franchised collection operations in the cities of Livermore, Pleasanton, San Leandro, and San Ramon. The remainder of this material is self-hauled by the waste generators.

Base Case Projected Revenues
During the projection period from 20 24 to 2042, HF&H projects that 18.4 million tons of waste will be delivered to Altamont and 2. 5 million tons of waste will be delivered to Vasco , resulting in Host Fee payments of $10.68 million and $1.46 million respectively for a total of $12.14 million.

Assumptions

1. The City adjusts the Host Fee annually by the change in the CPI. The percentage change is unknown for the projection period 20 24 through 2042; therefore, we have assumed an increase of 2.5% per year. In the Base Case and all sensitivities, HF&H has assumed a base Host Fee of $0.46 per ton for Vasco and $0.46 per ton for Altamont for the period of 2023 (the current amount per ton reflected in remittances to the City).

2. HF&H obtained historical solid waste and ADC disposal tonnage by facility from CalRecycle’s web- based Disposal Reporting System (DRS). DRS web reports are based upon information reported by permitted facility operators and compiled by County regional agency disposal reporting coordinators. CalRecycle performs accuracy checks and then releases the data in yearly increments. Since DRS contains data from 2019 and earlier, HF&H used CalRecycle’s Recycling and Disposal Reporting System (RDRS) for any data after 2019. Altamont and Vasco provided detailed tonnage information broken down by the jurisdiction where the waste was generated. Disposal data from DRS and RDRS was used to forecast incoming tonnage and project the revenue from the Host Fee for 2018 through the most-recently-available time period (Q2 of 2023).

ATTACHMENT 1
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Managing Tomorrow’s Resources Today

Tina Olson
January 9, 2024

Page 8 of 8 ends

3. Tonnage received by both facilities has been trending downward over the past five years.

Additionally, the maturing of solid waste programs related to SB 1383, as well as StopWaste’s Mandatory Recycling Ordinance for jurisdictions in Alameda County , indicate that tonnage volumes for solid waste will continue to trend downward.

CONSULTANT’S OPINION
Based on the information, assumptions, and conditions set forth in this report, it is HF&H’s opinion that it is reasonable to believe that the City of Livermore will receive $1 2 million in Host Fee revenue between the period 20 24 and 2042, but that other funding sources will be needed to cover costs related to the Regional Theatre. Projections of these revenues require us to make assumptions about future events and the actual results may be different than we have assumed in our Base Case Projections and these differences can be material. Therefore, in certain cases, we have varied our assumptions from those used in the Base Case Projections and project the revenues that result from the revised assumptions as described in this report. Should actual tonnages or CPI figures vary significantly from the projections described in this report , HF&H suggests that the City revise these assumptions and calculate new projections based on the most recent actuals.

Very truly yours,

HF&H CONSULTANTS, LLC

Rob Hilton
President

ATTACHMENT 1
523
Fund Balance Projection of HCIF Fund
Fiscal Year
Beginning
Fund Balance
Projected
Revenues (1)
Annual Debt
Service (2)
Estimated Large
Replacement
Repair Costs (3)
Est. Ending
Fund Balance
2023-24 $1,401,820 $507,141 $508,600 $274,140 $1,126,221 2024-25 1,126,221 519,820 528,800 274,140 843,101
2025-26 843,101 532,815 547,800 152,300 675,816
2026-27 675,816 546,136 531,300 152,300 538,352
2027-28 538,352 559,789 534,600 152,300 411,241
2028-29 411,241 573,784 532,400 152,300 300,325
2029-30 300,325 588,128 534,700 152,300 201,453
2030-31 201,453 602,832 531,500 152,300 120,485
2031-32 120,485 617,902 532,800 152,300 53,287
2032-33 53,287 633,350 533,500 152,300 837
2033-34 837 649,184 533,600 152,300 (35,879)
2034-35 (35,879) 665,413 533,100 152,300 (55,866)
2035-36 (55,866) 682,049 532,000 152,300 (58,117)
2036-37 (58,117) 699,100 535,200 152,300 (46,517)
2037-38 (46,517) 716,577 532,700 152,300 (14,940)
2038-39 (14,940) 734,492 534,500 152,300 32,752
2039-40 32,752 752,854 530,600 152,300 102,706
2040-41 102,706 771,675 531,000 152,300 191,081
2041-42 $191,081 $790,967 $535,500 $152,300 $294,248
(1) Projected Revenues increase annually by CPI of 2.5% (2) Annual Debt Service ends in FY 2041-42.
(3) Estimated amounts from Repair and Replacement Schedule ATTACHMENT 2
524

CITY COUNCIL STAFF REPORT
ITEM NO. 5.9

DATE:

January 22, 2024
TO:

Honorable Mayor and City Council
FROM:

Tina Olson, Administrative Services Director
SUBJECT:

Resolution amending the City of Livermore Compensation Policy to reflect best practices.

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution amending the City of Livermore Compensation Policy to reflect best practices.

SUMMARY
City Council adopted the City of Livermore Compensation Policy on April 10, 2018. Since adoption, the policy has provided guidance to Human Resources and the Bargaining Units on Salary Structure Principles, Classification Level Differentials, Internal Equity considerations and Relevant Labor Markets to be used when completing total compensation studies.

The industry best practice is to review, and update if required, large scale compensation policies every five to seven years to ensure best practice approaches are being followed.

DISCUSSION
The current City of Livermore Compensation Policy adopted on April 10, 2018, outlines the following key factors:
• Livermore desires to provide its residents with excellent customer service in the delivery of effective and efficient public services.
• The City Council recognizes that a highly skilled, experienced, and dedicated workforce is essential to meet those objectives.
• The City’s goal is to allocate approximately seventy five percent (75%) of the general fund budget for personnel and supplemental personnel expenses.
• Pay administration touches many areas of Human Resources administration. Therefore, it is important to cover it in a plan that is easily understood and in the proper context. Details covering various policies on salary adjustments, initial salary at appointment, performance evaluation criteria for salary adjustments, and the effects of reclassification on salary are found in the City’s Personnel Rules and 525
Regulations or applicable Memorandum of Understanding.

Currently, the City compares compensation and benefits of staff to the following agencies:

Antioch
Brentwood
Fremont
Hayward
Manteca
Pleasanton
San Leandro
Tracy
Union City
*Dublin San Ramon Services District
*Oro Loma Sanitary District
*Union Sanitary District
* Special Districts limited to use for Water Resources classifications.

Livermore continues striving to maintain and enhance a high quality of life in our community. To attract the best talent interested in working for the City and able to live in or near Livermore, it is critical that our comparison communities share similar quality of life aspirations and provide similar complexity and quality of services.

Staff is in the final stages of selecting an external compensation expert to complete a full-scale compensation and benefits study across all classifications. The goal of the study is to analyze the City's current compensation and benefits and recommend corrections of any market deficiencies. It is expected that the full study results will be available by the end of the FY 2023-24.

To ensure accurate results from the external study staff recommends the following major changes to the Compensation Policy:

Eliminate the following comparator cities:

Antioch
Manteca
Tracy
Union City

Add the following comparator cities:

Concord
Redwood City
San Mateo
Walnut Creek
*No change is recommended to the Special Districts

Additionally, staff recommends that the City’s goal to allocate approximately seventy five percent (75%) of the general fund budget for personnel and supplemental personnel expenses be revised to:

"The City’s goal is to provide essential City services through in-house personnel by providing a competitive compensation package that will allow the City to attract and retain a highly talented and 526
diverse pool of employees."

Finally, a section has been added to the policy to describe the data analysis process.

FISCAL AND ADMINISTRATIVE IMPACTS

There is no material fiscal or administrative impact associated with this action.

COMMUNITY PILLAR

5: A City That Works

GOAL

8: Attract, develop, engage, and retain a diverse and highly skilled workforce across the organization.

ATTACHMENTS

1. Redlined Compensation Policy

2. Resolution

3. Exhibit A - Compensation Policy

Prepared by: Nancy Dias
Human Resource Manager

Approved by:
____________________________________
Marianna Marysheva
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
527
1 City of Livermore
Compensation Policy 1/ 22/ 24
Compensation Philosophy
The City of Livermore desires to provide its citizens with excellent customer service in the delivery of effective and efficient public services. The City Council recognizes that a highly skilled, experienced, and dedicated workforce is essential to meet those objectives. The City’s compensation philosophy takes into consideration the following compensation guidelines.

The City’s ability to compensate employees will consider the City’s overall financial condition including competing service priorities, requirements for adequate reserves consistent with adopted budget policies, and multi-year general fund revenue and expenditure projections. The City’s goal is to allocate approximately seventy-five percent (75%) of the general fund budget for personnel and supplemental personnel expenses. The City’s goal is to provide essential City services through in- house personnel by providing a competitive compensation package that will allow the City to attract and retain a highly talented and diverse pool of employees.

Background
Pay administration touches many areas of Human Resources administration, it is therefore important to cover it in a plan that is easily understood and in the proper context. Details covering various policies on salary adjustments, initial salary at appointment, performance evaluation criteria for salary adjustments, and the effects of reclassification on salary are found in the City’s Personnel Rules and Regulations or applicable Memorandum of Understanding.

The City’s Human Resources System is administered by the City Manager and operates on a merit basis. Employees are selected, retained, promoted, and paid based on their level of competency to perform required job duties. Each position, except employees on contract, in the City service has an assigned pay range with minimum and maximum pay rates. Basic qualifications are established for each position, and thereafter employees are selected in accordance with the City’s Personnel Rules and Regulations.

Salary adjustments are currently based on three factors – General Wage Increases, Equity Adjustments and Merit Increases. General wage increases and equity adjustments are based on negotiated agreements between the City and bargaining units. Merit salary increases are based entirely on employee performance. All recommendations for merit increases are presented to the City Manager and shall include a written performance evaluation in accordance with the City’s Personnel Rules and Regulations.

Employee salary ranges are contained in the City’s adopted Salary Plan. The Salary Plan indicates the minimum and maximum rates of pay for each classification. Initially, each classification is rated according to its level of difficulty and responsibility, working conditions, supply and demand, market conditions and other objective factors. Review and adjustment recommendations ATTACHMENT 1
528

2 to salary ranges are made to the City Council by the City Manager in accordance with the City’s Personnel System Rules and current operating procedures.

Salary Structure Principles
The City utilizes a pay system for its classifications. All the City’s regular classifications, except employees on contract, have pay ranges that span approximately 25% from the minimum to the maximum of the range. This range size and structure is typical within public agencies. In addition to the basic structure of the pay ranges, a major guiding principle for a salary structure is an acceptable differential between various classification levels.

Classification Level Differentials
While labor market data is a good indicator of market trends in pay, the concept of internal equity, e.g., how classifications are paid relative to each other within the City’s salary plan, is an equally, if not more important factor, when establishing a pay plan.

Professional compensation practices provide some guidelines when reviewing internal equity between levels of classifications, i.e., how a classification in one level is paid relative to another level based on increasing duties and responsibilities and span of control. These guidelines can minimize compaction issues, i.e., supervisory or management positions that make less than their employees when overtime is taken into consideration. The guidelines presented below are listed in a range format with a minimally accepted differential up to a maximum targeted differential.

Salary differentials that fall below the minimum are considered an internal salary compaction problem that will be addressed by the City Manager as soon as reasonably possible.

Salary differentials towards the maximum of the range are to be used under unusual circumstances and are outlined later in this section. The City’s ability to pay is also a factor that needs to be considered in setting the appropriate classification level differentials. Salary differentials are measured by calculating the difference between the highest rate (top of the range) of one pay grade to the highest rate (top of the range) in the next pay grade to which the classification reports. The differential ranges that are best practices are outlined below, though there are sometimes exceptions, especially between upper management levels. The following represents optimal differentials between levels:

1. Entry to journey level of series = 7% - 10% is the target differential (Building Inspector I to Building Inspector II)

2. Journey to advanced journey/lead level of series = 5% - 10% is the target differential (Assistant Planner to Associate Planner)
ATTACHMENT 1
529

3 3. Supervisory/Management = 10% or more differential over the highest level regularly supervised
(Supervising Groundskeeper to Public Works Supervisor)

4. Senior Management = 7.5% or more differential over the highest level regularly supervised (Plan Check Engineer to Permit Center Manager)

5. Executive Management = 10% or more differential over the highest level regularly supervised
(Department Head to Assistant City Manager and Assistant City Manager and Department Heads to City Manager)
For differences between levels in a class series (#1 and #2 above), the advanced levels may be up to 15% higher than the next lower level if the higher-level job requires more education, experience and/or certifications to be considered qualified for advancement to journey or advanced journey/lead level jobs.

For differences between subordinates and their supervisors (#3, #4, and #5 above), the range of acceptable differentials are greater to accommodate the variety of special circumstances that may occur and be accounted for. The special circumstances that would warrant a reasonable differential, based upon industry standards between two classes at the upper end of the differential ranges are below:

• To ensure equitable compensation for supervisors/managers over employees who earn high amounts of overtime.
• To compensate for supervisors/managers who must possess a different and higher level of technical proficiency than their subordinates.
• To keep pace with the market.

Internal Equity
Internally equitable pay must clearly define the relative value of each job among all jobs within an organization and the Classification Plan. This ordered set of jobs represents the job structure or hierarchy. The basic concept is simple: jobs that require higher qualifications, more responsibilities, and more complex duties are paid more than jobs that require lower qualifications, fewer responsibilities, and less complex job duties.

4 internally consistent job structure. Job analysis is almost a purely descriptive procedure. Effective job analysis (or job description) identifies and defines job content by describing the job duties and tasks as well as other pertinent factors such as skill and effort needed to perform the job adequately.

The City currently uses a Position Classification Questionnaire (PCQ) in conducting job analyses.

This method utilizes the common allocation factors of decision-making, scope, and complexity, contact with others required by the job, supervision exercised and received, and the minimum qualifications that include the knowledge, skills, and abilities (KSAs).

Market Surveys
Market-competitive pay systems play a significant role in setting a salary that will attract and retain the most qualified employees. Conversely, paying more than is necessary may represent an undue financial burden for the City. Because money is a limited resource, the City must strike a balance between offering competitive salaries to attract and retain highly qualified employees and providing sufficient resources to enable them to be productive. To this end, the City must have a strategy that includes surveying the relevant labor market to determine the organization’s place in the external market and determining the most adequate frequency and benchmarks for surveys.

The City shall tostrives to conduct market surveys at the start of every labor negotiations cycle with bargaining unit groups.

Relevant Labor Market
Relevant labor markets represent the field of potentially qualified candidates for jobs and are defined based on occupational classification, geography, and service/function/industry provided.

The following factors should also be considered in determining the relevant labor market:

• The most effective number of survey agencies is between 8 and 12. Anything less than 8 survey agencies increases the chance that there will not be sufficient data collected when a job is difficult to match. More than 10 or 12 agencies, however, does not significantly affect and/or add value to the data results in most cases. This is particularly important when the cost of surveying more agencies only make the survey more costly and time consuming than necessary.
• Geography is important for determining the labor market. The potential candidate pools are shared by similar agencies that are close in proximity. If there is any potential of employees being recruited away from the City, it most likely will be by another agency within the Bay Area. It is very doubtful that there will be any loss of employees of any significant degree to either Fresno or Los Angeles for instance. • Size of the organization is another important factor. A larger organization typically has more levels of management, supervision, and workers so to match a Supervisor classification with a much smaller organization would be very difficult and often leads to a ATTACHMENT 1
531

5 lack of sufficient data on some jobs. While size is important, this factor should not trump an otherwise good market benchmark agency that may be smaller or larger but is well suited based upon location and similarity of organization.

The City currently uses a labor market comprised of the following nine survey cities and three utility districts. Utility districts are used only for salary comparison purposes for specific classifications that are or resemble those classifications utilized at utility districts. Industry best practice also requires a minimum number of valid matches before calculating a market variance.

The City requires a minimum of 4 matches to calculate a total compensation market variance.

Municipalities:
• City of Antioch
• City of Brentwood
• City of Concord
• City of Fremont
• City of Hayward
• City of Manteca
• City of Pleasanton
• City of Redwood City
• City of San Leandro
• City of Tracy
• City of Union City
• City of San Mateo
• City of Walnut Creek

Special Districts:
• Dublin San Ramon Services District
• Oro Loma Sanitary District
• Union Sanitary District

Market Areas
There may be instances when a different combination or new agencies need to be surveyed due to an unexpected situation. For instance, if a recruitment results in a poor applicant pool, then an increase in salary range may be warranted. If the City’s ability to retain employees becomes an issue, then the total compensation for that classification should be reviewed. It is important that special circumstances be dealt with in a flexible and appropriate manner. It is expected than an evaluation of the City’s relevant labor market shall be conducted every 5 to 7 years to ensure that Livermore’s survey cities continue to provide similarity and balance based upon the outlined factors.

Choosing Benchmark Jobs
ATTACHMENT 1
532

6 It is unnecessarily burdensome and expensive to survey all the City’s classifications. Benchmark classifications play an important role in compensation surveys because they allow pay levels to be determined from the information collected on one job to apply to other similar jobs. Benchmark positions have four characteristics:

• The job contents are well-known, relatively stable over time. • The jobs are common across the number of different employers. • The jobs represent the entire range of jobs being evaluated within an organization. • The jobs are generally accepted in the labor market for the purposes of setting pay levels.

Because it is so important to determine and survey benchmark classifications, it is recommended that the City go through a benchmarking process and shall select each classification in consultation with the bargaining representatives.

Data Analysis
The City utilizes the mean and median in analyzing total compensation data. The mean is calculated by adding all the collected salaries and dividing by the total number of salaries in the set (the City’s salary is not used in the equation). The median is calculated by arranging all salary data points from highest to lowest and using the number that falls in the center (the City’s salary is not used in the equation).

When setting compensation, the City shall utilize the median salary data when analyzing total compensation as it is less affected by outliers (abnormally high or low values) than the mean.

The City utilizes median in analyzing total compensation data. Where the City falls significantly (5% or more below the market median for total compensation) under the median after a compensation survey for a classification(s), additional data, including but not limited to internal alignment with other like classes and City financial data may be analyzed.

ATTACHMENT 1
533
RESOLUTION NO. ________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION ADOPTING THE REVISED CITY OF LIVERMORE
COMPENSATION POLICY DATED JANUARY 22, 2024
This resolution is to adopt amendments to the City of Livermore (“City) Compensation Policy to reflect best practices.

The proposed City of Livermore Compensation Policy, attached hereto as Exhibit A, is intended to make the following amendments:

1. Revise the comparator labor market to include the following municipalities and special districts:

Municipalities
Brentwood
Concord
Fremont
Hayward
Pleasanton
Redwood City
San Leandro
San Mateo
Walnut Creek
Special Districts
Dublin San Ramon Services District
Oro Loma Sanitary District
Union Sanitary District

2. Revise the City’s goal from allocating approximately 75% of the general fund budget for personnel and supplemental personnel expenses to:
“The City’s goal is to provide essential City services through in-house personnel by providing a competitive compensation package that will allow the City to attract and retain a highly talented and diverse pool of employees.”

3. Making conforming changes to the sections for Background, Market Surveys, and Choosing Benchmark Jobs, and,

4. Adding a new section regarding Data Analysis.
534
RESOLUTION NO. ________
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that it hereby approves the amended Compensation Policy dated January 22, 2024, attached hereto as Exhibit A, 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 January 22, 2024, 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
Deborah L. Elam Jason R. Alcala
Acting City Clerk City Attorney
Exhibit A – Compensation Policy
535
1 City of Livermore
Compensation Policy 1/ 22/ 24
C
ompensation Philosophy
The City of Livermore desires to provide its citizens with excellent customer service in the delivery of effective and efficient public services. The City Council recognizes that a highly skilled, experienced, and dedicated workforce is essential to meet those objectives. The City’s compensation philosophy takes into consideration the following compensation guidelines.

Th
e City’s ability to compensate employees will consider the City’s overall financial condition including competing service priorities, requirements for adequate reserves consistent with adopted budget policies, and multi-year general fund revenue and expenditure projections. The City’s goal is to provide essential City services through in- house personnel by providing a competitive compensation package that will allow the City to attract and retain a highly talented and diverse pool of employees.

B
ackground
Pay administration touches many areas of H uman R esources administration, it is therefore important to cover it in a plan that is easily understood and in the proper context. Details covering various policies on salary adjustments, initial salary at appointment, performance evaluation criteria for salary adjustments, and the effects of reclassification on salary are found in the City’s Personnel Rules and Regulations or applicable Memorandum of Understanding.

Th
e City’s Human Resources System is administered by the City Manager and operates on a merit basis. Employees are selected, retained, promoted, and paid based on their level of competency to perform required job duties. Each position, except employees on contract, in the City service has an assigned pay range with minimum and maximum pay rates. Basic qualifications are established for each position, and thereafter employees are selected in accordance with the City’s Personnel Rules and Regulations.

S
alary adjustments ar e currently based on three factors – General Wage Increases, Equity Adjustments and Merit Increases. General wage increases and equity adjustments are based on negotiated agreements between the City and bargaining units. Merit salary increases are based entirely on employee performance. All recommendations for merit increases shall include a written performance evaluation in accordance with the City’s Personnel Rules and Regulations.

Em
ployee salary ranges are contained in the City’s adopted Salary Plan. The Salary Plan indicates the minimum and maximum rates of pay for each classification. Initially, each classification is rated according to its level of difficulty and responsibility, working conditions, supply and demand, market conditions and other objective factors. Review and adjustment recommendations to salary ranges are made to the City Council by the City Manager in accordance with the City’s Personnel System Rules and current operating procedures.

EXHIBIT A
536

2 Salary Structure Principles
The City utilizes a pay system for its classifications. All the City’s regular classifications, except employees on contract, have pay ranges that span approximately 25% from the minimum to the maximum of the range. This range size and structure is typical within public agencies. In addition to the basic structure of the pay ranges, a major guiding principle for a salary structure is an acceptable differential between various classification levels.

Salary differentials that fall below the minimum are considered an internal salary compaction problem that will be addressed by the City Manager as soon as reasonably possible.

Salary d
ifferentials towards the maximum of the range are to be used under unusual circumstances and are outlined later in this section. The City’s ability to pay is also a factor that needs to be considered in setting the appropriate classification level differentials. Salary differentials are measured by calculating the difference between the highest rate (top of the range) of one pay grade to the highest rate (top of the range) in the next pay grade to which the classification reports. The differential ranges that are best practices are outlined below, though there are sometimes exceptions, especially between upper management levels. The following represents optimal differentials between levels:

1. Entry to journey level of series = 7% - 10% is the target differential (Building Inspector I to Building Inspector II)

2. Journey to advanced journey/lead level of series = 5% - 10% is the target differential (Assistant Planner to Associate Planner)

3. Supervisory/Management = 10% or more differential over the highest level regularly supervised
(Supervising Groundskeeper to Public Works Supervisor)

EXHIBIT A
537

3 4. Senior Management = 7.5% or more differential over the highest level regularly supervised (Plan Check Engineer to Permit Center Manager)

Fo
r differences between subordinates and their supervisors (#3, #4, and #5 above), the range of acceptable differentials are greater to accommodate the variety of special circumstances that may occur and be accounted for. The special circumstances that would warrant a reasonable differential, based upon industry standards between two classes at the upper end of the differential ranges are below:

The City utilizes its current salary plan system as a means of effective internal equity. One level of equity maintenance is achieved by the systematic approach to job/classification studies that review certain jobs for proper alignment within the Classification Plan, and therefore, proper salary placement. This process is called job analysis and is very important to create and maintain an internally consistent job structure. Job analysis is almost a purely descriptive procedure. Effective job analysis (or job description) identifies and defines job content by describing the job duties and tasks as well as other pertinent factors such as skill and effort needed to perform the job adequately.

The City currently uses a Position Classification Questionnaire (PCQ) in conducting job analyses.

EXHIBIT A
538

4 This method utilizes the common allocation factors of decision-making, scope, and complexity, contact with others required by the job, supervision exercised and received, and the minimum qualifications that include the knowledge, skills, and abilities (KSAs).

The City strives to conduct market surveys at the start of every labor negotiations cycle with bargaining unit groups.

Relevant L
abor Market
Relevant labor markets represent the field of potentially qualified candidates for jobs and are defined based on occupational classification, geography, and service/function/industry provided.

The following factors should also be considered in determining the relevant labor market:

EXHIBIT A
539

5 The City currently uses a labor market comprised of the following nine survey cities and three utility districts. U tility districts are used only for salary comparison purposes for specific classifications that are or resemble those classifications utilized at utility districts. Industry best practice also requires a minimum number of valid matches before calculating a market variance.

The City requires a minimum of 4 matches to calculate a total compensation market variance.

Municipalities:
• City of Brentwood
• City of Concord
• City of Fremont
• City of Hayward
• City of Pleasanton
• City of Redwood City
• City of San Leandro
• City of San Mateo
• City of Walnut Creek

Special Districts:
• Dublin San Ramon Services District
• Oro Loma Sanitary District
• Union Sanitary District

Choosing Benchmark Jobs
It is unnecessarily burdensome and expensive to survey all the City’s classifications. Benchmark classifications play an important role in compensation surveys because they allow pay levels to be determined from the information collected on one job to apply to other similar jobs. Benchmark positions have four characteristics:

• The job contents are well-known, relatively stable over time. • The jobs are common across the number of different employers.

EXHIBIT A
540

6 • The jobs represent the entire range of jobs being evaluated within an organization. • The jobs are generally accepted in the labor market for the purposes of setting pay levels.

Data A nalysis
The City utilizes the mean and median in analyzing total compensation data. The mean is calculated by adding all the collected salaries and dividing by the total number of salaries in the set (the City’s salary is not used in the equation). The median is calculated by arranging all salary data points from highest to lowest and using the number that falls in the center (the City’s salary is not used in the equation).

When setting compensation, the City shall utilize the median salary data when analyzing total compensation as it is less affected by outliers (abnormally high or low values) than the mean.

Th
e City utilizes median in analyzing total compensation data. Where the City falls significantly (5% or more below the market median for total compensation) under the median after a compensation survey for a classification(s), additional data, including but not limited to internal alignment with other like classes and City financial data may be analyzed.

EXHIBIT A
541

CITY COUNCIL STAFF REPORT
ITEM NO. 5.10

DATE:

January 22, 2024
TO:

Honorable Mayor and City Council
FROM:

Paul Spence, Assistant City Manager
SUBJECT:

Resolution of continued local emergency in response to impacts from a series of severe storm events earlier this year.

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution of continued local emergency in response to impacts from a series of severe storm events earlier this year.

SUMMARY
On January 10, 2023, the City Council adopted a resolution ratifying the Proclamation of the Director of Emergency Services Concerning the Existence of a Local Emergency (Resolution No. 2023-001) in response to impacts from a series of severe storm events.

On February 27, April 24, June 12, July 24, September 11, October 23, and December 11, 2023, the City Council adopted resolutions of continued local emergency. California Government Code section 8630 directs the City Council to review the need for continuing the local emergency at least once every 60 days.

DISCUSSION
On January 4, 2023, the Executive Department of the State of California issued Executive Order N-2-23 proclaiming a State of Emergency for the Atmospheric River that started on December 27, 2022. On January 10, 2023, the City Council ratified a proclamation by the Emergency Services Director of the existence of a local emergency due to conditions of extreme peril to the safety of persons and property that arose within the City of Livermore caused by a series of severe rainstorms and high wind commencing in December 2022 and continuing through January 2023.

Proclamation 23-01 was ratified, as required, by the City Council within seven days (Resolution No. 2023-001). Once ratified, California Government Code section 8630 directs the City Council to review the need for continuing the local emergency at least once every 60 days. On February 27, 2023, the City Council adopted a resolution of continued local emergency (Resolution No. 2023-06). 542

On March 1, 2023, the Executive Department of the State of California issued a proclamation of State of Emergency due to a severe winter storm event beginning in February 2023 bringing damaging winds and historic precipitation that caused federal and state highways and road closures, and continued to threaten critical infrastructures, power outages, etc.

On March 24, 2023, the Alameda County Director of Emergency Services proclaimed a state of emergency due to conditions of continuing peril that have been presented by winter storms that resumed on February 23, 2023, continuing through March 2023, causing extensive damage and local expenses throughout the County.

On February 27, April 24, June 12, July 24, and September 11, and October 23, and December 11, 2023, the City Council adopted resolutions of continued local emergency (Resolution Nos. 2023-026, and 2023-072, and 2023-111, and 2023-150, and 2023-159, and 2023-187, and 2023-223 respectively).

Staff recommends that the City Council continue the emergency proclamation to reflect the fact that emergency repairs have not been fully implemented and on-going work is required to recover from the damage. Continuing the emergency proclamation allows staff to seek reimbursement of the eligible costs of this work from federal and state agencies through the public assistance program.

Work includes removing sediment and debris from creeks and trails, repairing creek banks that have been washed away, repairing damaged trails, and pedestrian bridge abutments. While the repair projects are still under evaluation, staff estimates about 30 damaged sites totaling approximately $9,000,000.

FISCAL AND ADMINISTRATIVE IMPACTS

The continuance of a Local Emergency allows the City to access federal, state and county resources, including potential financial reimbursements.

COMMUNITY PILLAR
1: A Safe Community That Thrives

GOAL
1: Oversee the City's emergency preparedness, management, and response efforts

ATTACHMENTS

1. Resolution

Prepared by: Herbert Cole
Management Analyst

543
Approved by:
____________________________________
Marianna Marysheva
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
544
RESOLUTION NO. _______

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION OF CONTINUED LOCAL EMERGENCY
(Severe Storm Events – December 2022 through March 2023) On January 10, 2023, the City Council adopted a resolution, Ratifying the Proclamation of the Director of Emergency Services Concerning the Existence of a Local Emergency (Resolution No. 2023-001). The emergency services proclamation concerns conditions of extreme peril to the safety of persons and property which have arisen within the City of Livermore caused by a series of severe rainstorms and high winds commencing in December 2022, and continuing through January 2023. On February 27, 2023, the City Council adopted a resolution of continued local emergency (Resolution No. 2023-026).

On March 1, 2023, California Governor, Gavin Newsom, proclaimed a state of emergency due to the severe winter storms that struck in late February as the result of an atmospheric river system forecast to continue through mid-March. The Governor issued his proclamation in response to a series of atmospheric river systems that impacted the State since late December 2022, that forced closures and damaged highways and roads, and caused other impacts that local agencies did not have time to mitigate, and that the continuing storms were expected to exacerbate those conditions.

The Governor adopted a subsequent proclamation on March 28, 2023, to apply his March 1st proclamation to Alameda County. The Governor's proclamation directed the California Office of Emergency Services to provide assistance to local governments for the protection of public health and the environment, allowed for the mobilization of the California National Guard, allowed for state-owned properties to be made available for staging debris, and modified the hours-of-service limits in the California Vehicle Code and California Code of Regulations for fuel transportation and relief efforts.

Given the declaration of emergency by the State of California and Alameda County, as well as the existing damage and impacts from the prior storms, and in anticipation of additional storms and wind, the need for continued debris removal, emergency response protective measures, and permanent repairs, continue to present conditions that are likely to be beyond the control of the services, personnel, equipment, and facilities of the City of Livermore.

Although efforts have been made to remedy the emergency conditions, City staff report that the emergency conditions identified by the proclamation still exist. City staff recommends continuing the declaration of emergency since it is required to be active in 545
RESOLUTION NO. _______
order to remain eligible to apply for and receive funding for costs to respond to and repair damages caused by the storm events.

Once a proclamation of local emergency is adopted, California Government Code section 8630 directs the City Council to review the need for continuing the local emergency at least once every 60 days.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that it has reviewed the January 4, 2023 proclamation of local emergency that the City Council ratified on January 10, 2023 (Resolution No. 2023-001) and continued on February 27, 2023 (Resolution No. 2023-026) and on April 24, 2023 (Resolution No. 2023-072), and on June 12, 2023 (Resolution No. 2023-111), and on July 24, 2023 (Resolution No. 2023-150), and on September 11, 2023 (Resolution No. 2023-159), and on October 23, 2023 (Resolution 2023-187), and on December 11, 2023 (Resolution No. 2023-223) as well as the subsequent proclamations of emergency in March by both the State of California and the County of Alameda due to the continuing systems of storms affecting the State and local areas, and hereby finds that conditions warrant continued maintenance of that proclamation of local emergency.

On motion of Council Member ____________________, seconded by Council Member _____________________, the foregoing resolution was passed and adopted on January 22, 2024, 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
Deborah L. Elam Jason R. Alcala
Acting City Clerk City Attorney
546

CITY COUNCIL STAFF REPORT
ITEM NO. 6.1

DATE:

January 22, 2024
TO:

Honorable Mayor and City Council
FROM:

Paul Spence, Assistant City Manager
SUBJECT:

Public hearing, landowner election, declaration of results, and actions related to formation of Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) located on the east and west side of the Arroyo Seco Channel along Las Positas Road pursuant to the Mello-Roos Community Facilities Act of 1982.

RECOMMENDED ACTION

Staff recommends the City Council take the following actions in connection with the proposed formation of Community Facilities District No. 2023-2:
1 .

Conduct the public hearing and consider written and oral protests; 2 .

Adopt the resolution of formation of a Community Facilities District; 3 .

Adopt a resolution calling a special landowner election for a community facilities district, and direct the City Clerk to complete the landowner elections;
4 .

Adopt a resolution declaring the results of the special landowner election and, if the election is successful, direct recording of Notice of Special Tax Lien; and 5 .

Introduce an ordinance
levying special taxes within the CFD.

SUMMARY
To meet the conditions of approval for Tentative Tract 8379, located on the east and west side of the Arroyo Seco Channel along Las Positas Road, the property owner, TH Arroyo Vista LLC
has submitted a
signed petition and consents to the formation of Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) (the "CFD").

A petition was filed by the property owner, TH Arroyo Vista LLC requesting the City Council undertake proceedings under the Mello-Roos Act and waive all applicable election notices and waiting periods to expedite the completion of the district formation. On December 11, 2023, the City Council adopted a Resolution of Intention to form the CFD, approving the Rate and Method of Apportionment of Special Tax ("RMA") for the CFD, calling a public hearing, and directing the City Engineer to prepare and file with the City Clerk a CFD Report describing the services that will be provided by the CFD and an estimate of the fair and reasonable costs to provide the services and incidental expenses associated with the CFD. 547

Following the public hearing, the City Council may establish the CFD and call for a special landowner election. The property owner will vote on: (1) the levy of the special taxes on taxable property in the CFD pursuant to the RMA; and (2) the appropriation limit for the CFD. The first-year assessment of the special tax for the property will reflect the costs of maintaining the improvements and an additional amount to reimburse the City for costs of forming the CFD.

The maximum annual operation and maintenance costs for the CFD is estimated at $193,606 for 2023.

This cost will be spread over the 435 residential units within Vesting Tentative Tract 8379, consisting of Tract 8379 and Tract 8689. This maximum annual operation and maintenance cost establishes the Max Cap of the annual assessment for the CFD and will be adjusted annually on July 1, based upon the prior calendar year's change in the Consumer Price Index - All Urban Consumers (San Francisco-Oakland- San Jose, CA) plus one percent (CPI +1%).

DISCUSSION
Development projects with new public amenities such as trails, landscaping, and other public infrastructure are required, through conditions of approval, to provide for the long-term maintenance of the new infrastructure.

The Arroyo Vista residential development Tract 8379 and Tract 8689, located on the east and west side of the Arroyo Seco Channel along Las Positas Road, was conditioned to form a maintenance district to finance the maintenance and operation of the new Arroyo Seco Trail (between Las Positas Road and Arroyo Vista) and the public landscaping along Las Positas Road. In addition, the CFD will also have a contingency item that would collect funding for the future long-term repair and replacement costs of a pedestrian bridge connecting the two phases of the project over the Arroyo Seco Channel upon completion of construction of the bridge. Construction of the pedestrian bridge is a requirement of the original entitlement, but the Developer is planning on pursuing an in-lieu alternative to the bridge that would provide the City with funding for additional community benefits such as bike lanes, trails and pedestrian pathways. The in-lieu bridge alternative will require a Site Plan Design Review Modification which will be sent through Planning Commission and City Council for review. The owners of the project have elected to form Community Facilities District 2023-2 (Arroyo Vista Maintenance and Services) pursuant to the Mello-Roos Act of 1982.

The City Council received a petition from the property owner, TH Arroyo Vista LLC, requesting initiation of formation of a CFD to finance certain ongoing public maintenance and services and waiving the otherwise applicable election time periods and procedures. The City Council adopted a Resolution of Intention to form the CFD and set a public hearing for January 22, 2024, for consideration of the formation of the CFD, including the levy of special taxes according to the RMA and the proposed services to be financed by the special taxes. The RMA has been reviewed by the property owner and is attached to the Resolution of Formation. The boundary map was recorded in the Alameda County real property records, a notice of the public hearing has been published, and a Community Facilities District Report has been prepared and has been published on the City's website.

The areas to be maintained with the Arroyo Vista Maintenance and Services CFD funding include:

Pedestrian Trail located along the west side of the Arroyo Seco Channel Landscape improvements along Las Positas Road Tract 8379 (West Side) 548
Landscape improvements along Las Positas Road Tract 8689 (East Side)

The areas to be maintained with the Arroyo Vista Maintenance and Services Contingency CFD funding include:

Future long-term repair, replacement and maintenance costs of the pedestrian bridge, or an in-lieu alternative to the bridge as described above.

Cost for administration of the CFD maintenance items, as well as Alameda County's collection of the special taxes, will also be funded by the CFD and are further defined in the description of services attached to the Resolution of Intention.

On January 9, 2024, a ballot was mailed to the property owner, referencing the RMA. Ballots are due to the City Clerk no later than 7:00 pm on January 22, 2024.

The City Council will conduct the public hearing. The public hearing provides an opportunity for public inquiry into the formation of the CFD (including the RMA and the proposed services). At the conclusion of the public hearing, the City Council is asked to consider and adopt the following resolutions:

1. A Resolution of Formation of Community Facilities District, and Authorizing and Directing Actions Related Thereto

2. A Resolution Calling a Special Landowner Election for a Community Facilities District, and Authorizing and Directing Actions Thereto

After calling the special election and receiving the sealed ballot, the City Clerk will open and tabulate the ballot and announce the results of the election. The number of votes allocated to the property owner is based on the number of acres; the Mello Roos Act specifies that each property owner in the CFD will be allocated one vote for each acre or portion of an acre of taxable property owned in the CFD. The City Clerk will then complete the election canvass.

Assuming two-thirds of the votes cast at the election are in favor of the ballot measure, the City Council will consider and is asked to adopt the following resolution and introduce the following ordinance:

A Resolution Declaring Results of a Special Landowner Election and Directing Recording of a Notice of Special Tax Lien, and Authorizing and Directing Actions Related Thereto (the City Clerk's canvass will be attached to this Resolution) and

An Ordinance Levying a Special Tax within City of Livermore Community Facilities District 2023-2 (Arroyo Vista Maintenance and Services) (the "Ordinance").

Following these actions, the City Clerk will record a Notice of Special Tax Lien against the parcels of the CFD within 15 days after the election. The Ordinance authorizes and levies the Special Tax in perpetuity within the CFD in accordance with the RMA. The Ordinance will go into effect 30 days from the date of final passage, which is anticipated for the City Council meeting on February 12, 2024.

FISCAL AND ADMINISTRATIVE IMPACTS

The City will administer the CFD on an annual basis and will budget for, and manage, the necessary 549
maintenance, operation, and administration. All related expenditures will be paid by the CFD. The estimated annual cost for maintaining all the items in the Description of Services for the CFD is approximately $193,606.

The FY 2024-25 Special Tax Requirement Maximum Cap is estimated at $193,606, an average of $445 per residential unit. The maximum cap will escalate on July 1, 2024, and annually each July 1 thereafter, based upon the prior calendar year’s change in the Consumer Price Index (CPI)– All Urban Consumers (San Francisco-Oakland- San Jose, CA) plus one percent (CPI + 1%).

COMMUNITY PILLAR

1: A Safe Community That Thrives

GOAL

9: Facilitate new development consistent with the City's General Plan

ATTACHMENTS

1. Resolution of Formation

2. Exhibit A - Description of Services

3. Exhibit B - Rate and Method of Apportionment

4. Resolution Calling for Election

5. Exhibit A - Full Text of Ballot Measures

6. Exhibit B - Abbreviated Ballot Measures

7. Exhibit C - Official Ballot

8. Resolution Declaring Results

9. Exhibit A - Canvass and Statement of Result of Election

10. Ordinance

Prepared by: Farnoush Levers
Senior Civil Engineer

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION OF FORMATION OF A COMMUNITY FACILITIES DISTRICT Under the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), this Council is authorized to establish a community facilities district and to act as its legislative body.

This Council adopted a resolution entitled “A Resolution of Intention to Establish a Community Facilities District” (the “Resolution of Intention”), stating its intention to form “City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services)” (the “CFD”) pursuant to the Act in order to levy special taxes (the “Special Taxes”) to finance all or a part of certain services (the “Services”), as described in the Resolution of Intention.

The Resolution of Intention, incorporating a map of the proposed boundaries of the CFD and stating the Services to be provided and the rate and method of apportionment of the Special Taxes to be levied within the CFD to pay for the Services (the “Rate and Method”), is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein.

On this date, this Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD.

At the hearing, all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the Services to be provided therein and the levy of such Special Taxes according to the Rate and Method were heard and a full and fair hearing was held.

At the hearing, evidence was presented to this Council on such matters before it, including a special report (the “Report”) as to the Services to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk, and this Council at the conclusion of said hearing is fully advised in the premises.

Written protests with respect to the formation of the CFD, the furnishing of specified types of Services and the Rate and Method have not been filed with the City Clerk by 50% or more of the registered voters residing within the territory of the CFD or property owners of one-half or more of the area of land within the CFD and not exempt from the proposed Special Taxes.

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

1. Recitals Correct. The foregoing recitals are true and correct.

2. No Majority Protest. The proposed CFD and the proposed Special Taxes to be levied within the CFD have not been precluded by majority protest pursuant to section 53324 or section 53339.6 of the Act.
551
RESOLUTION NO. _____________

3. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection with the establishment of the CFD and the levy of the Special Taxes have been duly considered and are hereby found and determined to be valid and in conformity with the Act. To the extent the proceedings conflict with the City of Livermore Goals and Policies for Land Secured Financings, adopted by the City Council pursuant to Resolution No. 2009-005 on January 12, 2009, such variances are hereby waived.

4. Name of the CFD. The community facilities district designated “City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services)” of the City is hereby established pursuant to the Act.

5. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the CFD heretofore recorded in the Alameda County Recorder’s Office on December 19, 2023, in Book 19 of Maps of Assessment and Community Facilities Districts at Page 47, as document number 2023147769, are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD.

6. Description of Services. The Services proposed to be financed by the CFD and pursuant to the Act shall consist of those items shown in Exhibit A, attached hereto, and by this reference incorporated herein.

7. Special Tax.
a. Except to the extent that funds are otherwise available to the CFD to pay for the Services, the Special Taxes, sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this Council. b. The proposed Rate and Method, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are shown in Exhibit B, attached hereto, and hereby incorporated herein.

8. Increased Demands. It is hereby found and determined that the Services are necessary to meet increased demands placed upon local agencies, including the City, as the result of development occurring in the CFD. The Services are in addition to those provided in the territory of the CFD as of the date hereof and will not supplant services already available within the territory of the CFD as of the date hereof.

9. Responsible Official. The City Manager (or their designee) of the City of Livermore, City Hall, 1052 South Livermore Avenue, Livermore, CA 94550, telephone number 925-960-4040, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the Special Taxes obligations by assessor’s parcel number and who will be responsible for estimating future levies of the Special Taxes.

10. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all nonexempt real property in the CFD and this lien shall continue in force and effect until the Special Taxes obligation is prepaid and permanently 552
RESOLUTION NO. _____________
satisfied and the lien canceled in accordance with law or until collection of the Special Taxes by the City ceases.

11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is hereby preliminarily established at $10,000,000 and such appropriations limit shall be submitted to the voters of the CFD as hereafter provided. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the Constitution.

12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the Special Taxes and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election the time, place and conditions of which election shall be as specified by a separate resolution of this Council.

13. Effective Date. This resolution shall take effect upon its adoption.

On motion of Council Member ____________, seconded by Council Member _______________, the foregoing resolution was passed and adopted on the January 22, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST:

Deborah L. Elam
Acting City Clerk
APPROVED AS TO FORM:
/s/ Tara Mazzanti ____
Tara Mazzanti
Assistant City Attorney
Exhibit A – Description of Services
Exhibit B – Rate and Method of Apportionment
553
Exhibit A

Page 1 ends

EXHIBIT A

CITY OF LIVERMORE
Community Facilities District No. 2023-2
(Arroyo Vista Maintenance and Services)

DESCRIPTION OF SERVICES
Special Taxes collected in the CFD will fund, in whole or in part, the services listed below. Services may be performed inside the CFD and outside the CFD i f the City has concluded that such services would benefit properties in the CFD.

A. SERVICES TO BE FINANCED BY THE ANNUAL SERVICES S PECIAL TAX:

1. Trail Improvement Services
Trail Improvement Services include the maintenance, ope ration and repair and replacement of the Arroyo Seco Trail between Las Positas Road and Arroyo Vista Road.

Trail Improvement Services also include trash pickup, weed control, and flood and storm protection services. The costs of Trail Improvement Service s include any associated electricity, water, and other utility costs. Trail Improvements include, but are not limited to, maintenance, operation, repair and replacement of sto rm drain system (including pipe, catch basins and manholes), permeable swale, rip rap, p avement restoration and rehabilitation, sidewalks, curbs and gutters, driveways t o adjacent roadways, bollards, gates, signage and monuments.

2. Landscape Improvements along Las Positas Road (Tract 83 79) Services Landscape Improvements along Las Positas Road (Tract 837 9) Services include maintenance, operation and repair and replacement of the public landscaping and storm drain improvements that wrap around Tract 8379 along Las Positas Road. Landscape Improvements along Las Positas Road (Tract 8379) Services include, but are not limited to, landscaping and irrigation, maintenance, operati on and repair and replacement of sidewalks, curb and gutter, fencing and public storm dr ain system (including pipe, catch basins and manholes). Landscape Improvements along Las Positas Road (Tract 8379) Services also include trash pickup and weed control. The cost s of Landscape Improvements along Las Positas Road (Tract 8379) Services include any associated electricity, water and other utility costs.

3. Landscape Improvements along Las Positas Road (Tract 86 89) Services Landscape Improvements along Las Positas Road (Tract 868 9) Services include maintenance, operation and repair and replacement of the public landscaping and storm drain improvements along the southern entrance to Trac t 8689 along Las Positas Road.

EXHIBIT A

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554
Exhibit A

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control. The costs of Neighborhood Park Landscape Impr ovement Services include any associated electricity, water and other utility costs. The costs of removing graffiti include the acquisition, use and removal of cleaning chemicals an d or paint used as part of the required graffiti removal process.

B. SERVICES TO BE FINANCED BY THE ANNUAL CONTINGENT BRIDGE REPAIR/REPLACEMENT SERVICES SPECIAL TAX:

The Annual Contingent Bridge Repair/Replacement Services Special Tax will pay for the following services:

1. Annual Contingent Bridge Repair/Replacement Service s The Annual Contingent Bridge Repair/Replacement Services include all costs associated with the maintenance, repair and replacement of the private pedestrian bridge across the Arroyo Seco between Tract 8379 and Tract 8689, includ ing the bridge itself, adjacent elevators, any structural components attached to the bridge, any infrastructure required to access the bridge, and any other infrastructure or impro vements related to the bridge (collectively, the “Bridge Improvements”). Annual Contingent Bridge Repair/Replacement Services include, but are not limited to, preventative m aintenance activities, demolition, reconstruction costs (including design, administrative and construction costs), and any required environmental studying, monitoring and repor ting activities, in all cases related to the Bridge Improvements. The costs included in this paragraph are intended to constitute capital expenditures that increase the assets’ useful life.

Annual Contingent Bridge Repair/Replacement Special Taxes will be set aside in a reserve to fund replacement from time to time of the B ridge Improvements at the end of their useful lives.

The Bridge Improvements are being constructed on property owned by Alameda County Flood Control and Water Conservation District, Zone 7 (“Zone 7”). The Annual Contingent Bridge Repair/Replacement Services are necessary to op erate and maintain the Bridge Improvements in accordance with the aerial easement granted to the City by Zone 7.

The City will ensure that, as long as the City is finan cing the Annual Contingent Bridge Repair/Replacement Services, the public will have access to the Bridge Improvements.

C. SERVICES TO BE FINANCED BY THE ANNUAL CONTINGENT BRIDGE OPERATION/MAINTENANCE SERVICES SPECIAL TAX:

The Annual Contingent Bridge Operation/Maintenance S ervices Special Tax will pay for the following services:

EXHIBIT A

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555
Exhibit A

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Annual Contingent Bridge Operation/Maintenance Service s include any associated electricity, water and other utility costs. The services include acquisition, use and disposal of hydraulic fluid required to lift the elevators and any required cleaning chemicals and petroleum-based lubricants for keeping the elevator e quipment and motors clean and operational, and any graffiti removal cleaning chemicals and or paint used as part of the required graffiti removal process. The costs included i n this paragraph are routine expenses incurred to ensure the functional and safe working condition of the assets.

The Bridge Improvements are being constructed on proper ty owned by Zone 7. The Annual Contingent Bridge Operation/Maintenance Services are necessary to operate and maintain the Bridge Improvements in accordance with the aerial easement granted to the City by Zone 7.

The City will ensure that, as long as the City is finan cing the Annual Contingent Bridge Operation/Maintenance Services, the public will have access to the Bridge Improvements.

D. MISCELLANEOUS ITEMS RELATED TO THE SERVICES TO B E FINANCED BY THE

ANNUAL SERVICES SPECIAL TAX, THE ANNUAL CONTINGENT BRIDGE

REPAIR/REPLACEMENT SERVICES SPECIAL TAX AND THE ANN UAL CONTINGENT

BRIDGE OPERATION/MAINTENANCE SERVICES SPECIAL TAX

1. Flood and Storm Protection Services.

Flood and Storm Protection Services include the operat ion and maintenance of storm drainage systems.

2. Definitions
a. “Services” has the meaning given that term in the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”).
b. “Maintenance” has the meaning given that term in the Act, and includes, but is not limited to, servicing, repair and removal.

3. Special Taxes may be used to fund operating reserves an d capital reserves.

The Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax may be used to fund operating reserves and ca pital reserves. The Annual Services Special Tax, the Annual Contingent Bridge Repai r/Replacement Services Special Tax and the Annual Contingent Bridge Operatio n/Maintenance Services Special Tax may be used to fund “costs” and “incidental expenses” related to the eligible services as those terms are defined in the Act.

4. Curing Delinquencies. The Annual Services Special Tax, t he Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual C ontingent Bridge Operation/Maintenance Services Special Tax may be levied t o cure actual or estimated delinquencies in such special taxes for the current or previous fiscal years.

EXHIBIT A

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556
Exhibit A

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5. Performance of Services. The services financed by the Ann ual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax may be performed by the City, or the City may engage a third party (including any owner of property in the CFD or a property owners’ association) by contract to perform the services.

6. Maintenance and Operation of Other Property.

Maintenance and operation of any real property or ot her tangible property with an estimated useful life of five or more years that is owne d by the City or by another local agency pursuant to an agreement entered into under Section 53316.2.

7. Additional Services; No Supplanting.

The services shall be in addition to those provided in th e territory of the CFD before the CFD was created, and the additional services shall not supplant services already available within that territory when the CFD was created.

8. Administrative Expenses
The CFD will also finance the expenses incurred by the C FD in administering the CFD, including, but not limited to, the levy and collection o f the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax, the fees and expenses of its legal counsel, costs related to annexing property into the CFD, charges levied by the County of Alameda in connection with the levy and col lection of the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax, costs related to property owner inquiries regarding the Annual Ser vices Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax, costs associated with appeals or requests for interpretation associated with the Annu al Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax and t he Rate and Method, costs associated with foreclosure and collection of delinquent Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax and all other costs and expenses of the City and County in any way related to the establishment or administration of the CFD.

EXHIBIT A

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557

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 1

RATE AND METHOD OF APPORTIONMENT

FOR CITY OF LIVERMORE
COMMUNITY FACILITIES DISTRICT NO. 2023-2
(ARROYO VISTA MAINTENANCE AND SERVICES)
The Special Tax, as hereinafter defined, shall be l evied and collected in City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) (“CFD No. 2023-2”) each Fiscal Year commencing in Fiscal Year 2024-25, in an amount determined by the application of the procedures below.

All Taxable Property, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Access ory Dwelling Unit” as defined in California Government Code Section 65852.2(j)(1), as may be amended from time to time, which is accessory to a primary Unit. The ADU may be located on the sa me Assessor’s Parcel as the primary Unit that is the primary Unit or on a separate Assessor’s Par cel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Assessor’s Parcel for purposes of the Special Tax. Should an Assessor’s Parcel contain on ly an ADU, such Assessor’s Parcel will be taxed as an ADU Unit only.
“Acre or Acreage” means the land area of an Assessor’s Parcel as sho wn on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event the Assessor’s Parcel Map or Assessor’s Data shows no Acreage, the Acreage for any Assessor’s Parcel shall be determined by the CFD Administrator based upon the applicable final m ap, parcel map, condominium plan, or other recorded County parcel map. If the preceding maps are not available, the Acreage of an Assessor’s Parcel may be determined utilizing GIS.
“Act” means the Mello-Roos Community Facilities Act of 19 82, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the actual or reasonably estimated costs dir ectly related to the administration of CFD No. 2023-2 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and of preparing the Special Tax collection schedules; the costs of collecting the Special Tax, including any charge s levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Governmen t Code (including the Act), including public inquiries regarding the Special Tax; the costs of t he City or designee related to an appeal of the Special Tax; and the costs of commencing and pursui ng to completion any action arising from any delinquent Special Tax in CFD No. 2023-2. Administr ative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2023-2 for any other administrative purposes, including, but not limited to, attorney’s fees.

EXHIBIT B

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558

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 2 “Annual Contingent Bridge Operation/Maintenance Services” means those items listed in “Exhibit A” to the Resolution of Formation that are describe d as being financed by the Annual Contingent Bridge Operation/Maintenance Services Special Tax.
“Annual Contingent Bridge Operation/Maintenance Ser vices Costs” means the respective amounts determined by the CFD Administrator require d to finance the Annual Contingent Bridge Operation/Maintenance Services for the applicable yearly period. “Annual Contingent Bridge Operation/Maintenance Ser vices Special Tax” means the amount levied in each Fiscal Year on each Assessor’s Parce l of Taxable Property to fund the Annual Contingent Bridge Operation/Maintenance Services Special Tax Requirement. “Annual Contingent Bridge Operation/Maintenance Ser vices Special Tax Requirement” means that amount with respect to CFD No. 2023-2 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative E xpenses, (2) the Annual Contingent Bridge Operation/Maintenance Services Costs, including any amount required to establish or replenish any reserve or replacement fund, and (3) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. “Annual Contingent Bridge Repair/Replacement Services” means those items listed in “Exhibit A” to the Resolution of Formation that are described as being financed by the Annual Contingent Bridge Repair/Replacement Services Special Tax.
“Annual Contingent Bridge Repair/Replacement Servic es Costs” means the respective amounts determined by the CFD Administrator required to fin ance the Annual Contingent Bridge Repair/Replacement Services for the applicable yearly period. “Annual Contingent Bridge Repair/Replacement Services Special Tax” means the amount levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Contingent Bridge Repair/Replacement Services Special Tax Requirement.
“Annual Contingent Bridge Repair/Replacement Servic es Special Tax Requirement” means that amount with respect to CFD No. 2023-2 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expe nses, (2) the Annual Contingent Bridge Repair/Replacement Services Costs, including any am ount required to establish or replenish any reserve or replacement fund, and (3) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. “Annual Services” means those items listed in “Exhibit A” to the Res olution of Formation that are described as being financed by the Annual Services Special Tax. “Annual Services Costs” means the respective amounts determined by the CFD Administrator required to finance the Annual Services authorized to be funded by CFD No. 2023-2 for the applicable yearly period.
“Annual Services Special Tax” means the amount levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Services Special Tax Requirement.

EXHIBIT B

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559

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 3 “Annual Services Special Tax Requirement” means that amount with respect to CFD No. 2023-2 determined by the City Council or designee as requi red in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, including any amount required to establish or replenish any reserve or replacement fund, and (3) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. “Assessor’s Data” means Assessor’s Parcel Number, Units, Building Square Feet, Acreage, or other information contained in the records of the County Assessor for each Assessor’s Parcel. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parce l Map and/or Assessor’s Data with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor of the Count y designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County Assessor for purposes of identification. “Bedroom” means a habitable room intended to be used as sleeping quarters, but does not include a bathroom, living room, dining room, or kitchen.
“Building Square Feet” or “BSF” means all of the square footage within the perimet er of a structure, not including any carport, walkway, gara ge, overhang, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be made by reference to the Assessor’s Data.

If the Assessor’s Data does not show Building Squar e Feet, building permit(s) issued for such structure, or other records of the City shall be used, as determined by the CFD Administrator. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. “CFD No. 2023-2” means the City of Livermore Community Facilities D istrict No. 2023-2 (Arroyo Vista Maintenance and Services).
“City” means the City of Livermore.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023-2. “County” means the County of Alameda.
“County Assessor” means the County Assessor of the County. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD No. 2023-2 for which a building permit for new construction was issued by the City on or before June 30 of the preceding Fiscal Year.
“Exempt Property” means all Assessors’ Parcels within the boundary of CFD No. 2023-2 which are exempt from the Special Tax pursuant to Section E.
“Final Map Property” means, in any Fiscal Year, all Taxable Property in CFD No. 2023-2 for which a Final Subdivision Map was approved by the City Council on or before June 30 of the preceding Fiscal Year.

EXHIBIT B

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560

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 4 "Final Subdivision Map" means a subdivision of property created by recordat ion of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4120, that create s individual lots for which residential building permits may be issued without further subdivision of such property. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “GIS” means a geographic information system.
“Initiative #1935” means initiative constitutional amendment 1935 whi ch is eligible for the November 5, 2024, general election ballot and will be certified as qualified unless withdrawn by the proponent prior to June 27, 2024.
“Maximum Annual Contingent Bridge Operation/Mainten ance Services Special Tax” means the maximum Annual Contingent Bridge Operation/Maintena nce Services Special Tax authorized to fund the Annual Contingent Bridge Operation/Maintenance Services Special Tax Requirement in any Fiscal Year that may apply to Taxable Property as described in Section C, Table 2. “Maximum Annual Contingent Bridge Repair/Replacemen t Services Special Tax” means the maximum Annual Contingent Bridge Repair/Replacement Services Special Tax authorized to fund the Annual Contingent Bridge Repair/Replacement Ser vices Special Tax Requirement in any Fiscal Year that may apply to Taxable Property as described in Section C, Table 3. “Maximum Annual Services Special Tax” means the maximum Annual Services Special Tax authorized to fund the Annual Services Special Tax Requirement in any Fiscal Year that may apply to Taxable Property as described in Section C, Table 1. “Open Space Property” means property within the boundaries of CFD No. 2023-2 which (i) has been designated with specific boundaries and Acreage on a final subdivision map as open space, (ii) is classified by the County Assessor as open space, (iii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (iv) is encumbered by an easement or other restr iction required by the City limiting the use of such property to open space.
“Property Owner’s Association” means any property owner’s association. As used in this definition, a Property Owner’s Association includes any home-ow ner’s association, condominium owner’s association, master or sub-association or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of CFD No . 2023-2 which is (a) owned by a Property Owner’s Ass ociation or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. “Proportionately” means for Taxable Property that the ratio of the Annual Services Special Tax levy to the Maximum Annual Services Special Tax is equal for all Assessors’ Parcels of Taxable Property levied within each property land use classification within CFD No. 2023-2, and means for Taxable Property that the ratio of the Annual Contingent Br idge Operation/Maintenance Services Special Tax levy to the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax is

EXHIBIT B

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561

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 5 equal for all Assessors’ Parcels of Taxable Propert y levied within each property land use classification within CFD No. 2023-2, and means for Taxable Property that the ratio of the Annual Contingent Bridge Repair/Replacement Services Speci al Tax levy to the Maximum Annual Contingent Bridge Repair/Replacement Services Speci al Tax is equal for all Assessors’ Parcels of Taxable Property levied within each property land use classification within CFD No. 2023-2. “Public Property” means any property within the boundaries of CFD No. 2023-2 which (i) is owned by a public agency, (ii) has been irrevocably offer ed for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this d efinition, a public agency includes the federal government, the State, the County, the City, school districts, or any other public agency. “Residential Lot” means an individual residential lot within a recor ded Final Subdivision Map on which a Building Permit is permitted to be issued for construction of one or more Units. “Resolution of Formation” means the resolution adopted by the City Council e stablishing CFD No. 2023-2.
“Single Family Residential Duet Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purpose s of constructing one Unit containing two Bedrooms, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Single Family Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of c onstructing one Unit containing three or four Bedrooms, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Special Tax” means, collectively, the Annual Contingent Bridge R epair/Replacement Services Special Tax, Annual Contingent Bridge Operation/Maintenance Services Special Tax and the Annual Services Special Tax.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the bou ndaries of CFD No. 2023-2 that are not exempt from the Special Tax pursuant to law or Section E below. “Undeveloped Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 2023- 2 that are not classified as Developed Property, Final Map Property, Open Space Property, Property Owner’s Association Property, or Public Property.
“Unit” means an individual residential dwelling unit. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2023-2 that (a) have been granted a welfare exempti on by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indica ted in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

EXHIBIT B

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562

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 6 B. DETERMINATION OF TAXABLE PARCELS
Each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2023-2. If any Asse ssor’s Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers in effect for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximu m Annual Services Special Tax, Maximum Annual Contingent Bridge Operation/Maintenance Serv ices Special Tax, and Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Admi nistrator shall also determine: (i) which Parcels are Taxable Property; (ii) the number of Un its, Acres, and/or Building Square Footage each Parcel contains; (iii) the property type, i.e., Sin gle Family Residential Property, Single Family Residential Duet Property, etc.; and (iv) the Annua l Services Special Tax Requirement, the Annual Contingent Bridge Operation/Maintenance Services Sp ecial Tax Requirement, and the Annual Contingent Bridge Repair/Replacement Services Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATES

1. Maximum Annual Services Special Taxes
The Maximum Annual Services Special Tax for each As sessor’s Parcel of Taxable Property shall be assigned according to Table 1 below:

TABLE 1

MAXIMUM ANNUAL SERVICES SPECIAL TAX RATES
FISCAL YEAR 2023/24*

*On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Annual Services Special Tax rates shall be increased by the February annual percentage change in the Consumer Price Index for all Urban Consumers (“CPI-U”) for the San Francisco-Oakland-Hayward, CA, plus one percent (1.0%). If the percentage change in the CPI-U is negative, the Maximum Annual Services Special Tax rates shall not be decreased. In the ev ent the index described above ceases to be published, it shall be replaced by another reasonab ly comparable index, as determined by the City.

2. Maximum Annual Contingent Bridge Operation/Maintenance Services Special Taxes The Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to Table 2 below:

Land Use Category
Maximum Annual
Services Special
Tax Rate Per
Single Family Residential Property $292.24 Unit
Single Family Residential Duet Property 233.79 Unit Final Map Property 277.73 Res idential Lot Undeveloped Property 4,143.94 Ac re

EXHIBIT B

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563

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 7 TABLE 2

MAXIMUM ANNUAL CONTINGENT BRIDGE OPERATION/MAINTENANCE SERVICES SPECIAL

TAX RATES
FISCAL YEAR 2023/24*

*On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax r ates shall be increased by the February annual percentage change in the Consumer Price Index for all Urban Consumers (“CPI-U”) for the San Francisco-Oakland-Hayward, CA, plus one percent (1.0%). If the percentage change in the CPI- U is negative, the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax rates shall not be decreased. In the event the index described above ceases to be published, it shall be replaced by another reasonably comparab le index, as determined by the City.

3. Maximum Annual Contingent Bridge Repair/Replacement Services Special Taxes The Maximum Annual Contingent Bridge Repair/Replace ment Services Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to Table 3 below:

TABLE 3

MAXIMUM ANNUAL CONTINGENT BRIDGE REPAIR/REPLACEMENT SERVICES SPECIAL TAX RATES
FISCAL YEAR 2023/24*

*On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax rate s shall be increased by the February annual percentage change in the Consumer Price Index for a ll Urban Consumers (“CPI-U”) for the San Francisco-Oakland-Hayward, CA, plus one percent (1.0% ). If the percentage change in the CPI-U is negative, the Maximum Annual Contingent Bridge R epair/Replacement Services Special Tax rates shall not be decreased. In the event the inde x described above ceases to be published, it shall be replaced by another reasonably comparable index, as determined by the City.

Land Use Category
Maximum Annual
Contingent Bridge
Operation/Maintenance
Services Special Tax Rate Per
Single Family Residential Property $24.98 Unit
Single Family Residential Duet Property 19.99 Unit Final Map Property 23.74 Residential Lot Undeveloped Property 354.24 Acre Land Use Category
Maximum Annual
Contingent Bridge
Repair/Replacement
Special Tax Rate Per
Single Family Residential Property $151.10 Unit
Single Family Residential Duet Property 120.88 Unit Final Map Property 143.60 Residential Lot Undeveloped Property 2,142.64 Acre

EXHIBIT B

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564

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 8

4. Accessory Dwelling Units
The Maximum Annual Services Special Tax, the Maximu m Annual Contingent Bridge Operation/Maintenance Services Special Tax, and the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for an Accessory Dwelling Unit shall be calculated as a percentage of the Maximum Annual Services Special T ax, the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax, and the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for the primary Unit the ADU is accessory to, based on Building Square Footage. For example, if a primary Unit of Single Family Residential Property with 2,000 BSF has an ADU of 800 BSF, the Maximum Annual Services Special Tax, the Maximum Annual Contingent Bridge Operation/Maintena nce Services Special Tax, and the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for the ADU shall be calculated by the following steps:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $292.24 Maximum Annual Services Special Tax per Uni t x 40% = $116.90 Maximum Annual Services Special Tax for such ADU

3. $24.98 Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax per Unit x 40% = $9.99 Maximum Annual Contingen t Bridge Operation/Maintenance Services Special Tax for such ADU

4. $151.10 Maximum Annual Contingent Bridge Repair/Rep lacement Services Special Tax per Unit x 40% = $60.44 Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for such ADU

5. Assignment of Assessor’s Parcel(s) to Property Land Use Category When an Assessor’s Parcel changes from being classified as Undeveloped Property or Final Map Property to another land use category and is consid ered Developed Property, that assignment shall not change due to future changes in land use.

6. Assignment of Maximum Annual Services Special Tax to Newly Created Assessor’s Parcel(s) When an Assessor’s Parcel changes or subdivides, th e Maximum Annual Services Special Tax shall be assigned to each newly created Assessor’s Parcel so that there is no net loss in the Maximum Annual Services Special Tax revenue to be g enerated as a result of changes in the planned development.

When an Assessor’s Parcel changes or subdivides, and there are changes to the overall planned development within CFD No. 2023-2, the process for assigning the Maximum Annual Services Special Tax to each newly created Assessor’s Parcel is as follows:

Step 1: Sum the expected Maximum Annual Services Sp ecial Tax assigned to each Assessor’s Parcel that is being changed or subdivided.

Step 2: Identify the newly created Assessor’s Parce l(s) of Taxable Property created by the change or subdivision and assign the Maximum Annual Services Special Tax to each newly

EXHIBIT B

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565

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 9 created Assessor’s Parcel of Taxable Property accor ding to the then-current Maximum Annual Services Special Tax Rates for each Land Use Catego ry. Sum the Maximum Annual Services Special Tax assigned to each newly created Assessor’s Parcel of Taxable Property.

Step 3: Divide the total expected Maximum Annual Se rvices Special Tax in Step 1 by the total Maximum Annual Services Special Tax assigned in Step 2 to arrive at a fraction.

Step 4: Apportion the total Maximum Annual Services Special Tax from Step 1 to each newly created Assessor’s Parcel of Taxable Property by mu ltiplying each newly created Assessor’s Parcel fraction, determined in Step 3, by the then-current Maximum Annual Services Special Tax Rates for each Land Use Category.

Step 5: The Maximum Annual Services Special Tax ass igned to each newly created Assessor’s Parcel of Taxable Property shall be the greater of the Maximum Annual Services Special Tax assigned in Step 2 or the Maximum Annual Services Special Tax calculated in Step 4.

When an Assessor’s Parcel changes or subdivides, an d there are no changes to the planned development within CFD No. 2023-2, the Maximum Annu al Services Special Tax shall be assigned according to Table 1.

The planned development is provided in the table below:

Land Use Category
Planned
Development
Single Family Residential Property 327 Units
Single Family Residential Duet Property 108 Units
Final Map Property 435 Residential Lots

Once created, if a newly created Assessor’s Parcel( s) of Taxable Property further changes or subdivides, the above steps shall be repeated to de termine the Maximum Annual Services Special Tax for the additional newly created Assess or’s Parcel(s) of Taxable Property created from the change or subdivision.

7. Assignment of Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax to Newly Created Assessor’s Parcel(s)
When an Assessor’s Parcel changes or subdivides, th e Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax shall be assigned to each newly created Assessor’s Parcel so that there is no net loss in the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax revenue to be generated as a result of changes in the planned development.

When an Assessor’s Parcel changes or subdivides, and there are changes to the overall planned development within CFD No. 2023-2, the process for assigning the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax t o each newly created Assessor’s Parcel is as follows:

EXHIBIT B

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566

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 10 Step 1: Sum the expected Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax assigned to each Assessor’s Parcel that is being changed or subdivided.

Step 2: Identify the newly created Assessor’s Parce l(s) of Taxable Property created by the change or subdivision and assign the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax to each newly created Assessor’s Parcel of Taxable Property according to the then-current Maximum Annu al Contingent Bridge Operation/Maintenance Services Special Tax Rates fo r each Land Use Category. Sum the Maximum Annual Contingent Bridge Operation/Maintena nce Services Special Tax assigned to each newly created Assessor’s Parcel of Taxable Property.

Step 3: Divide the total expected Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax in Step 1 by the total Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax assigned in Step 2 to arrive at a fraction.

Step 4: Apportion the total Maximum Annual Continge nt Bridge Operation/Maintenance Services Special Tax from Step 1 to each newly created Assessor’s Parcel of Taxable Property by multiplying each newly created Assessor’s Parcel fr action, determined in Step 3, by the then- current Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax Rates for each Land Use Category.

Step 5: The Maximum Annual Contingent Bridge Operat ion/Maintenance Services Special Tax assigned to each newly created Assessor’s Parcel of Taxable Property shall be the greater of the Maximum Annual Contingent Bridge Operation/Maintena nce Services Special Tax assigned in Step 2 or the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax calculated in Step 4.

When an Assessor’s Parcel changes or subdivides, an d there are no changes to the planned development within CFD No. 2023-2, the Maximum Annu al Contingent Bridge Operation/Maintenance Services Special Tax shall be assigned according to Table 2.

The planned development is provided in the table below:

Land Use Category
Planned
Development
Single Family Residential Property 327 Units
Single Family Residential Duet Property 108 Units
Final Map Property 435 Residential Lots

Once created, if a newly created Assessor’s Parcel( s) of Taxable Property further changes or subdivides, the above steps shall be repeated to de termine the Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax for the additional newly created Assessor’s Parcel(s) of Taxable Property created from the change or subdivision.

EXHIBIT B

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567

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 11

8. Assignment of Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax to Newly Created Assessor’s Parcel(s)
When an Assessor’s Parcel changes or subdivides, th e Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax shall be as signed to each newly created Assessor’s Parcel so that there is no net loss in the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax revenue to be generated as a result of changes in the planned development.

When an Assessor’s Parcel changes or subdivides, and there are changes to the overall planned development within CFD No. 2023-2, the process for assigning the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax to e ach newly created Assessor’s Parcel is as follows:

Step 1: Sum the expected Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax assigned to each Assessor’s Parcel that is being changed or subdivided.

Step 2: Identify the newly created Assessor’s Parce l(s) of Taxable Property created by the change or subdivision and assign the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax to each newly created Assessor ’s Parcel of Taxable Property according to the then-current Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax Rates for each Land Use Category. Sum the Maximum A nnual Contingent Bridge Repair/Replacement Services Special Tax assigned to each newly created Assessor’s Parcel of Taxable Property.

Step 3: Divide the total expected Maximum Annual Co ntingent Bridge Repair/Replacement Services Special Tax in Step 1 by the total Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax assigned in Step 2 to arrive at a fraction.

Step 4: Apportion the total Maximum Annual Continge nt Bridge Repair/Replacement Services Special Tax from Step 1 to each newly created Asses sor’s Parcel of Taxable Property by multiplying each newly created Assessor’s Parcel fr action, determined in Step 3, by the then- current Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax Rates for each Land Use Category.

Step 5: The Maximum Annual Contingent Bridge Repair /Replacement Services Special Tax assigned to each newly created Assessor’s Parcel of Taxable Property shall be the greater of the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax assigned in Step 2 or the Maximum Annual Contingent Bridge Repair/Re placement Services Special Tax calculated in Step 4.

When an Assessor’s Parcel changes or subdivides, an d there are no changes to the planned development within CFD No. 2023-2, the Maximum Annu al Contingent Bridge Repair/Replacement Services Special Tax shall be assigned according to Table 3.

The planned development is provided in the table below:

EXHIBIT B

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568

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 12 Land Use Category
Planned
Development
Single Family Residential Property 327 Units
Single Family Residential Duet Property 108 Units
Final Map Property 435 Residential Lots

Once created, if a newly created Assessor’s Parcel( s) of Taxable Property further changes or subdivides, the above steps shall be repeated to de termine the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for the additional newly created Assessor’s Parcel(s) of Taxable Property created from the change or subdivision.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to the Specia l Tax defined as follows. The Special Tax shall be levied each Fiscal Year by the CFD Administrator.

1. The Annual Services Special Tax Requirement shall b e apportioned to each Parcel within CFD No. 2023-2 by the method shown below.

First: Determine the Annual Services Special Tax Requirement.

Second: Levy the Annual Services Special Tax on ea ch Parcel of Developed Property, Proportionately, up to the applicable Maximum Annua l Services Special Tax for Developed Property.

Third: If additional monies are needed to satisfy the Annual Services Special Tax Requirement after the second step has been completed, the Annual Services Special Tax shall be levied on each Assessor’s Parcel of Final Map Property, Proportionately, up to the applicable Maximum Annual Services Special Tax for Final Map Property.

Fourth: If additional monies are needed to satisfy the Annual Services Special Tax Requirement after the third step has been completed , the Annual Services Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property, Proportionately, up to the applicable Maximum Annual Services Special Tax for Undeveloped Property.

2. The Annual Contingent Bridge Operation/Maintenance Services Special Tax Requirement shall be apportioned to each Parcel within CFD No. 2023-2 in accordance with this Section D.2. The City will only levy the Annual Contingent Bridge Operation/Maintenance Services Special Tax to finance the Annual Contingent Bridge Operation/Main tenance Services Costs in the event (a) the City has determined that the Bridge Improvement s (as defined in “Exhibit A” to the Resolution of Formation) have been constructed and completed and (b) the City determines in its discretion that the property owner(s) of Taxabl e Property failed to provide the Annual Contingent Bridge Operation/Maintenance Services to reasonable City standards, or the property owner(s) of Taxable Property requested the City to provide the Annual Contingent Bridge Operation/Maintenance Services by submitting a written request to the City’s Public Works and Engineering Department and the City Manag er has accepted this request. In the

EXHIBIT B

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City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 13 event of a request by the property owner(s) of Taxa ble Property for the City to provide the Annual Contingent Bridge Operation/Maintenance Serv ices (which the City is under no obligation to accept), such request must be receive d from the property owner(s) of Taxable Property by May 1 of any Fiscal Year; if the City a pproves the request to provide the Annual Contingent Bridge Operation/Maintenance Services, the Maximum Contingent Services Special Tax shall be levied beginning in the immediately su cceeding Fiscal Year. In the event the property owner(s) fail to provide the Annual Contin gent Bridge Operation/Maintenance Services to reasonable City standards, the City will notify the property owner(s) of such failure.

Should the deficiency not be corrected within ninety (90) days of the City providing notice, the City will assume responsibility for providing the A nnual Contingent Bridge Operation/Maintenance Services on the date specifie d by the City and may levy the Annual Contingent Bridge Operation/Maintenance Services Sp ecial Tax beginning in the immediately succeeding Fiscal Year. The Annual Contingent Bridge Operation/Maintenance Services Special Tax Requirement shall be apportioned to each Parcel within CFD No. 2023-2 by the method shown below.

First: Determine the Annual Contingent Bridge Oper ation/Maintenance Services Special Tax Requirement.

Second: Levy the Annual Contingent Bridge Operatio n/Maintenance Services Special Tax on each Parcel of Developed Property, Proportionately, up to the applicable Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax for Developed Property.

Third: If additional monies are needed to satisfy the Annual Contingent Bridge Operation/Maintenance Services Special Tax Requirem ent after the second step has been completed, the Annual Contingent Bridge Operation/M aintenance Services Special Tax shall be levied on each Assessor’s Parcel of Final Map Pr operty, Proportionately, up to the applicable Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax for Final Map Property.

Fourth: If additional monies are needed to satisfy the Annual Contingent Bridge Operation/Maintenance Services Special Tax Requirem ent after the third step has been completed, the Annual Contingent Bridge Operation/M aintenance Services Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property, Proportionately, up to the applicable Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax for Undeveloped Property.

3. The Annual Contingent Bridge Repair/Replacement Ser vices Special Tax Requirement shall be apportioned to each Parcel within CFD No. 2023-2 in accordance with this Section D.3. The City will only levy the Annual Contingent Bridge Repair/Replacement Services Special Tax to finance the Annual Contingent Bridge Repair/Replacement Ser vices Costs in the event the City has determined that the Bridge Improvements (as defined in “Exhibit A” to the Resolution of Formation) have been constructed and completed. The Maximum Contingent Bridge Repair/Replacement Services Special Tax shall be levied beginning in the Fiscal Year immediately succeeding completion of construction of the Bridge Improvements. The Annual Contingent

EXHIBIT B

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570

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 14 Bridge Repair/Replacement Services Special Tax Requ irement shall be apportioned to each Parcel within CFD No. 2023-2 by the method shown below.

First: Determine the Annual Contingent Bridge Repa ir/Replacement Services Special Tax Requirement.

Second: Levy the Annual Contingent Bridge Repair/Replacement Services Special Tax on each Parcel of Developed Property, Proportionately, up t o the applicable Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for Developed Property.

Third: If additional monies are needed to satisfy the Annual Contingent Bridge Repair/Replacement Services Special Tax Requirement after the second step has been completed, the Annual Contingent Bridge Repair/Repl acement Services Special Tax shall be levied on each Assessor’s Parcel of Final Map Property, Proportionately, up to the applicable Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for Final Map Property.

Fourth: If additional monies are needed to satisfy the Annual Contingent Bridge Repair/Replacement Services Special Tax Requirement after the third step has been completed, the Annual Contingent Bridge Repair/Repl acement Services Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Pro perty, Proportionately, up to the applicable Maximum Annual Contingent Bridge Repair/ Replacement Services Special Tax for Undeveloped Property.

Under no circumstances will the Special Taxes on an y Assessor’s Parcel of Developed Property be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2023-2.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate an d Method of Apportionment of Special Tax, no Special Tax shall be levied on Open Space Property, Property Owner’s Association Property, Undeveloped Property, Assessor’s Parcels with publi c or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, or Public Property, except as otherwise provided in Sections 53317.3, 53317.5 and 533401 of the Act.

No Special Tax shall be levied on any Assessor’s Pa rcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax i s not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addi tion, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made.

EXHIBIT B

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City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 15 The appeal must specify the reasons why the appella nt claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with th e appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Admini strator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit the Special Tax in future years.

This procedure shall be exclusive and its exhaustio n by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATIONS OF RATE AND METHOD OF APPORTIONM ENT The City reserves the right to make administrative and technical changes to this document that do not materially affect the rate and method of apport ioning the Special Tax. In addition, the interpretation and application of any section of th is document shall be at the City’s discretion.

Interpretations may be made by the City Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax.

H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same mann er and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2023- 2, and may collect delinquent Special Taxes through available methods.

The Special Tax shall be levied commencing in Fiscal Year 2024-25 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be lev ied each Fiscal Year thereafter for as long as required to satisfy the Annual Special Tax Requirement. However, should Initiative #1935 be included as an initiative measure at election and subsequent ly be approved by voters, the duration of the Special Tax is 500 years.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

J. REPEAL OF SPECIAL TAX
If the levy of the Special Tax is repealed by initiative or any other action participated in by the owners of Assessor’s Parcels in CFD No. 2023-2, the City shall cease to levy the Special Tax and shall cease to be obligated to provide the authorized services for which the Special Tax was levied. The obligations to provide the authorized services previously funde d by the repealed Special Tax shall become the joint obligations of the property owners of Assessor’s Parcels within CFD No. 2023-2.

EXHIBIT B

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572
RESOLUTION NO. ___________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION CALLING SPECIAL LANDOWNER ELECTION FOR A

COMMUNITY FACILITIES DISTRICT
Under the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), this Council is authorized to establish a community facilities district and to act as its legislative body.

This Council has adopted a resolution entitled “A Resolution of Formation of a Community Facilities District" (the “Resolution of Formation”), ordering the formation of the “City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services)” (the “CFD”), defining the public services (the “Services”) to be provided by the CFD, authorizing the levy of special taxes on property within the CFD and preliminarily establishing an appropriations limit for the CFD, all pursuant to the Act.

Pursuant to the provisions of the Resolution of Formation, the propositions of the levy of the special taxes and the establishment of the appropriations limit shall be submitted to the qualified electors of the CFD as required by the provisions of the Act.

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

1. Issues Submitted. Pursuant to the Act, the issues of the levy of the special taxes and the establishment of an annual appropriations limit shall be submitted to the qualified electors (as described below) of the CFD at an election called therefor as provided below.

2. Qualified Electors . This Council hereby finds that fewer than twelve (12) persons have been registered to vote within the territory of the CFD for each of the ninety (90) days preceding the close of the public hearings heretofore conducted and concluded by this Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, this Council finds that, for these proceedings, the qualified electors are the landowners within the CFD and that the vote shall be by such landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the CFD as of the close of the public hearing not exempt from the special taxes.

3. Conduct of Election . This Council hereby calls a special election to consider the issues described in section 1, above, which election shall be held on January 22, 2024, and the results thereof canvassed at the meeting of this Council on January 22, 2024. The City Clerk is hereby designated as the official to conduct the election and to receive all ballots until the close of business on the election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a map of the boundaries of the CFD, and a sufficient description to allow the City Clerk to determine the electors of the CFD. Pursuant to Section 53327 of the Act, the election shall be conducted by messenger or mail-delivered ballot pursuant to Section 4000 of the California Elections 573
RESOLUTION NO. ___________
Code. This Council hereby finds that Sections 53326 and 53327 of the Act shall govern for purposes of determining the date of the election.

Pursuant to Section 53326(d) of the Act, if all the qualified voters have voted, the election may be closed with the concurrence of the City Clerk.

4. Ballot. The City Council hereby approves the full form of the ballot measure, attached hereto as Exhibit A, and the abbreviated versions, attached hereto as Exhibit B.

The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit C, attached hereto, to be delivered to each of the qualified electors of the CFD.

Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by a Voter Information Pamphlet (which shall include the Resolution of Formation and this Resolution as appendices) and all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, have the return postage prepaid, and contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot.

5. Waivers. This Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the CFD. There is on file with the City Clerk a written waiver executed by all of the qualified electors of the CFD allowing for a shortening of the time for the special election to expedite the process of formation of the CFD and waiving any requirement for notice, analysis, and arguments in connection with the election. Accordingly, this Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments and have thereby been fully protected in these proceedings. This Council also finds and determines that the City Clerk has concurred in the shortened time for the election. Analysis and arguments with respect to the ballot measure are hereby waived, as provided in Section 53327 of the Act.

6. Accountability. Pursuant to Section 50075.1 of the California Government Code, the following accountability provisions shall apply to the special taxes: (a) the Services and the incidental costs thereof, all as described in the Resolution of Formation, shall constitute the specific single purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report if required by Section 50075.3 of the California Government Code.

7. Effective Date. This Resolution shall take effect upon its adoption. 574
RESOLUTION NO. ___________
On motion of Council Member ____________, seconded by Council Member _______________, the foregoing resolution was passed and adopted on January 22, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST:

Deborah L. Elam
Acting City Clerk
APPROVED AS TO FORM:
/s/ Tara Mazzanti ____
Tara Mazzanti
Assistant City Attorney
Exhibit A – Full Text of Ballot Measures
Exhibit B – Abbreviated Ballot Measures
Exhibit C – Official Ballot
575

EXHIBIT A

CITY OF LIVERMORE
Community Facilities District No. 2023-2
(Arroyo Vista Maintenance and Services)

FULL TEXT OF BALLOT MEASURE
Upon approval of this ballot measure by at least two-thirds of the qualified electors voting on the proposition, the City of Livermore (the “City”) shall be authorized as follows with respect to City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) (the “CFD”):

SPECIAL TAX LEVY
Except to the extent that funds are otherwise available to the CFD to pay for the authorized services described below (the “Services”), the City will be authorized to levy special taxes (the “Special Taxes”) on taxable property in the CFD according to the rate and method of apportionment of special tax (the “Rate and Method”).

The proposed Rate and Method, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are shown in Attachment 1 attached hereto and hereby incorporated herein. The Special Taxes are intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this Council.

The City expects to levy the Special Taxes in perpetuity, although the Rate and Method provides for the possibility of a shorter period.

AUTHORIZED SERVICES
Special Taxes collected in the CFD will fund, in whole or in part, the Services listed below.

Services may be performed inside the CFD and outside the CFD if the City has concluded that such services would benefit properties in the CFD.

A. SERVICES TO BE FINANCED BY THE ANNUAL SERVICES SPECIAL TAX:

1.Trail Improvement Services
Trail Improvement Services include the maintenance, operation and repair and replacement of the Arroyo Seco Trail between Las Positas Road and Arroyo Vista Road.

Trail Improvement Services also include trash pickup, weed control, and flood and storm protection services. The costs of Trail Improvement Services include any associated electricity, water, and other utility costs. Trail Improvements include, but are not limited to, maintenance, operation, repair and replacement of storm drain system (including pipe, catch basins and manholes), permeable swale, rip rap, pavement restoration and

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EXHIBIT A
rehabilitation, sidewalks, curbs and gutters, driveways to adjacent roadways, bollards, gates, signage and monuments.

2.Landscape Improvements along Las Positas Road (Tract 8379) Services Landscape Improvements along Las Positas Road (Tract 8379) Services include maintenance, operation and repair and replacement of the public landscaping and storm drain improvements that wrap around Tract 8379 along Las Positas Road. Landscape Improvements along Las Positas Road (Tract 8379) Services include, but are not limited to, landscaping and irrigation, maintenance, operation and repair and replacement of sidewalks, curb and gutter, fencing and public storm drain system (including pipe, catch basins and manholes). Landscape Improvements along Las Positas Road (Tract 8379) Services also include trash pickup and weed control. The costs of Landscape Improvements along Las Positas Road (Tract 8379) Services include any associated electricity, water and other utility costs.

3.Landscape Improvements along Las Positas Road (Tract 8689) Services Landscape Improvements along Las Positas Road (Tract 8689) Services include maintenance, operation and repair and replacement of the public landscaping and storm drain improvements along the southern entrance to Tract 8689 along Las Positas Road.

Landscape Improvements along Las Positas Road (Tract 8689) Services include, but are not limited to, landscaping and irrigation, maintenance, operation and repair and replacement of sidewalks, curb and gutter, fencing and public storm drain system (including pipe, catch basins and manholes). Neighborhood Park Landscape Improvement Services also include cleaning and removal of graffiti, trash pickup and weed control. The costs of Neighborhood Park Landscape Improvement Services include any associated electricity, water and other utility costs. The costs of removing graffiti include the acquisition, use and removal of cleaning chemicals and or paint used as part of the required graffiti removal process.

B. SERVICES TO BE FINANCED BY THE ANNUAL CONTINGENT BRIDGE REPAIR/REPLACEMENT SERVICES SPECIAL TAX:

The Annual Contingent Bridge Repair/Replacement Services Special Tax will pay for the following services:

1.Annual Contingent Bridge Repair/Replacement Services
The Annual Contingent Bridge Repair/Replacement Services include all costs associated with the maintenance, repair and replacement of the private pedestrian bridge across the Arroyo Seco between Tract 8379 and Tract 8689, including the bridge itself, adjacent elevators, any structural components attached to the bridge, any infrastructure required to access the bridge, and any other infrastructure or improvements related to the bridge (collectively, the “Bridge Improvements”). Annual Contingent Bridge Repair/Replacement Services include, but are not limited to, preventative maintenance activities, demolition, reconstruction costs (including design,

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EXHIBIT A
administrative and construction costs), and any required environmental studying, monitoring and reporting activities, in all cases related to the Bridge Improvements. The costs included in this paragraph are intended to constitute capital expenditures that increase the assets’ useful life.

Annual Contingent Bridge Repair/Replacement Special Taxes will be set aside in a reserve to fund replacement from time to time of the Bridge Improvements at the end of their useful lives.

The Bridge Improvements are being constructed on property owned by Alameda County Flood Control and Water Conservation District, Zone 7 (“Zone 7”). The Annual Contingent Bridge Repair/Replacement Services are necessary to operate and maintain the Bridge Improvements in accordance with the aerial easement granted to the City by Zone 7.

The City will ensure that, as long as the City is financing the Annual Contingent Bridge Repair/Replacement Services, the public will have access to the Bridge Improvements.

C. SERVICES TO BE FINANCED BY THE ANNUAL CONTINGENT BRIDGE OPERATION/MAINTENANCE SERVICES SPECIAL TAX:

The Annual Contingent Bridge Operation/Maintenance Services Special Tax will pay for the following services:

1. Annual Contingent Bridge Operation/Maintenance Services Annual Contingent Bridge Operation/Maintenance Services include routine maintenance and operation of the Bridge Improvements. Annual Contingent Bridge Operation/Maintenance Services include, but are not limited to, trimming of vegetation and debris removal, repair to bridge deck, bridge rails, stairways, lighting, signage, painting, elevator maintenance and inspection, graffiti removal and trash pickup. The costs of Annual Contingent Bridge Operation/Maintenance Services include any associated electricity, water and other utility costs. The services include acquisition, use and disposal of hydraulic fluid required to lift the elevators and any required cleaning chemicals and petroleum-based lubricants for keeping the elevator equipment and motors clean and operational, and any graffiti removal cleaning chemicals and or paint used as part of the required graffiti removal process. The costs included in this paragraph are routine expenses incurred to ensure the functional and safe working condition of the assets.

The Bridge Improvements are being constructed on property owned by Zone 7. The Annual Contingent Bridge Operation/Maintenance Services are necessary to operate and maintain the Bridge Improvements in accordance with the aerial easement granted to the City by Zone 7.

The City will ensure that, as long as the City is financing the Annual Contingent Bridge Operation/Maintenance Services, the public will have access to the Bridge Improvements.

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EXHIBIT A
D. MISCELLANEOUS ITEMS RELATED TO THE SERVICES TO BE FINANCED BY THE

ANNUAL SERVICES SPECIAL TAX, THE ANNUAL CONTINGENT BRIDGE

REPAIR/REPLACEMENT SERVICES SPECIAL TAX AND THE ANNUAL CONTINGENT

BRIDGE OPERATION/MAINTENANCE SERVICES SPECIAL TAX

1.Flood and Storm Protection Services.

Flood and Storm Protection Services include the operation and maintenance of storm drainage systems.

2.Definitions
a. “Services” has the meaning given that term in the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”).
b. “Maintenance” has the meaning given that term in the Act, and includes, but is not limited to, servicing, repair and removal.

3.Special Taxes may be used to fund operating reserves and capital reserves.

The Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax may be used to fund operating reserves and capital reserves. The Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax may be used to fund “costs” and “incidental expenses” related to the eligible services as those terms are defined in the Act.

4.Curing Delinquencies. The Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax may be levied to cure actual or estimated delinquencies in such special taxes for the current or previous fiscal years.

5.Performance of Services. The services financed by the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax may be performed by the City, or the City may engage a third party (including any owner of property in the CFD or a property owners’ association) by contract to perform the services.

6.Maintenance and Operation of Other Property.

Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City or by another local agency pursuant to an agreement entered into under Section 53316.2.

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EXHIBIT A

7.Additional Services; No Supplanting.

The services shall be in addition to those provided in the territory of the CFD before the CFD was created, and the additional services shall not supplant services already available within that territory when the CFD was created.

8.Administrative Expenses
The CFD will also finance the expenses incurred by the CFD in administering the CFD, including, but not limited to, the levy and collection of the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax, the fees and expenses of its legal counsel, costs related to annexing property into the CFD, charges levied by the County of Alameda in connection with the levy and collection of the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax, costs related to property owner inquiries regarding the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax, costs associated with appeals or requests for interpretation associated with the Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax and the Rate and Method, costs associated with foreclosure and collection of delinquent Annual Services Special Tax, the Annual Contingent Bridge Repair/Replacement Services Special Tax and the Annual Contingent Bridge Operation/Maintenance Services Special Tax and all other costs and expenses of the City and County in any way related to the establishment or administration of the CFD.

ACCOUNTABILITY REQUIREMENTS
Pursuant to Section 50075.1 of the California Government Code, the following accountability provisions shall apply to the Special Taxes: (a) the Services and the incidental costs thereof, all as described above, shall constitute the specific single purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report if required by Section 50075.3 of the California Government Code.

APPROPRIATIONS LIMIT
The annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is established at $10,000,000.

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EXHIBIT A
Attachment 1
Rate and Method

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City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 1

RATE AND METHOD OF APPORTIONMENT

All Taxable Property, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

EXHIBIT A

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582

EXHIBIT A

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EXHIBIT A

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EXHIBIT A

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C. MAXIMUM ANNUAL SPECIAL TAX RATES

1. Maximum Annual Services Special Taxes
The Maximum Annual Services Special Tax for each As sessor’s Parcel of Taxable Property shall be assigned according to Table 1 below:

TABLE 1

MAXIMUM ANNUAL SERVICES SPECIAL TAX RATES
FISCAL YEAR 2023/24*

EXHIBIT A

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City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 7 TABLE 2

MAXIMUM ANNUAL CONTINGENT BRIDGE OPERATION/MAINTENANCE SERVICES SPECIAL

TAX RATES
FISCAL YEAR 2023/24*

TABLE 3

MAXIMUM ANNUAL CONTINGENT BRIDGE REPAIR/REPLACEMENT SERVICES SPECIAL TAX RATES
FISCAL YEAR 2023/24*

EXHIBIT A

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City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 8

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $292.24 Maximum Annual Services Special Tax per Uni t x 40% = $116.90 Maximum Annual Services Special Tax for such ADU

3. $24.98 Maximum Annual Contingent Bridge Operation/Maintenance Services Special Tax per Unit x 40% = $9.99 Maximum Annual Contingen t Bridge Operation/Maintenance Services Special Tax for such ADU

4. $151.10 Maximum Annual Contingent Bridge Repair/Rep lacement Services Special Tax per Unit x 40% = $60.44 Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for such ADU

Step 1: Sum the expected Maximum Annual Services Sp ecial Tax assigned to each Assessor’s Parcel that is being changed or subdivided.

Step 2: Identify the newly created Assessor’s Parce l(s) of Taxable Property created by the change or subdivision and assign the Maximum Annual Services Special Tax to each newly

EXHIBIT A

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589

Step 3: Divide the total expected Maximum Annual Se rvices Special Tax in Step 1 by the total Maximum Annual Services Special Tax assigned in Step 2 to arrive at a fraction.

The planned development is provided in the table below:

Land Use Category
Planned
Development
Single Family Residential Property 327 Units
Single Family Residential Duet Property 108 Units
Final Map Property 435 Residential Lots

EXHIBIT A

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590

The planned development is provided in the table below:

Land Use Category
Planned
Development
Single Family Residential Property 327 Units
Single Family Residential Duet Property 108 Units
Final Map Property 435 Residential Lots

EXHIBIT A

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591

City of Livermore
Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) Page 11

When an Assessor’s Parcel changes or subdivides, and there are changes to the overall planned development within CFD No. 2023-2, the process for assigning the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax to e ach newly created Assessor’s Parcel is as follows:

Step 1: Sum the expected Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax assigned to each Assessor’s Parcel that is being changed or subdivided.

The planned development is provided in the table below:

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592

Once created, if a newly created Assessor’s Parcel( s) of Taxable Property further changes or subdivides, the above steps shall be repeated to de termine the Maximum Annual Contingent Bridge Repair/Replacement Services Special Tax for the additional newly created Assessor’s Parcel(s) of Taxable Property created from the change or subdivision.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to the Specia l Tax defined as follows. The Special Tax shall be levied each Fiscal Year by the CFD Administrator.

1. The Annual Services Special Tax Requirement shall b e apportioned to each Parcel within CFD No. 2023-2 by the method shown below.

First: Determine the Annual Services Special Tax Requirement.

Second: Levy the Annual Services Special Tax on ea ch Parcel of Developed Property, Proportionately, up to the applicable Maximum Annua l Services Special Tax for Developed Property.

EXHIBIT A

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593

First: Determine the Annual Contingent Bridge Oper ation/Maintenance Services Special Tax Requirement.

EXHIBIT A

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594

First: Determine the Annual Contingent Bridge Repa ir/Replacement Services Special Tax Requirement.

No Special Tax shall be levied on any Assessor’s Pa rcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property.

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595

This procedure shall be exclusive and its exhaustio n by any property owner shall be a condition precedent to filing any legal action by such owner.

Interpretations may be made by the City Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

EXHIBIT A

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596

EXHIBIT B

CITY OF LIVERMORE
Community Facilities District No. 2023-2
(Arroyo Vista Maintenance and Services)

ABBREVIATED BALLOT MEASURES
BALLOT MEASURE NO. 1 : Shall the City of Livermore’s
measure to authorize the annual levy of special taxes within City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) (“CFD”) to finance municipal services described in the City Council resolution entitled “A Resolution of Formation of a Community Facilities District” for the CFD” (“Resolution of Formation”) adopted January 22, 2024 and administrative expenses, commencing in fiscal year 2024-25, at rates (in FY 2023-24 dollars, with annual escalation beginning July 1, 2024) ranging from $233.79 to $292.24/unit for Developed Property, $277.73/Final Map Property lot and $4,143.94/acre Undeveloped Property (Annual Services Special Tax); $19.99 to $24.98/unit for Developed Property, $23.74/Final Map Property lot and $354.24/acre Undeveloped Property (Annual Contingent Bridge Operation/Maintenance Services Special Tax); and $120.88 to $151.10/unit for Developed Property, $143.60/Final Map Property lot and $2,142.64/acre Undeveloped Property (Annual Contingent Bridge Repair/Replacement Services Special Tax), for a perpetual duration (or shorter period specified in the Resolution of Formation), be adopted? Financial Implications:

Special taxes, if levied at maximum rate (in FY 2023-24 dollars) with full build out of property initially in the CFD, would raise $193,606.45 in fiscal year 2024-25 with annual escalation thereafter.

EXHIBIT C

Page 1 of 2 ends

EXHIBIT C

CITY OF LIVERMORE
Community Facilities District No. 2023-2
(Arroyo Vista Maintenance and Services)

OFFICIAL BALLOT

SPECIAL TAX ELECTION
This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Livermore no later than the hour of 7:00 p.m. on Monday, January 22, 2024, either by mail or in person. The City Clerk’s office is located at 1052 South Livermore Avenue, Livermore, California.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”.

All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Livermore and obtain another.

BALLOT MEASURE NO. 1 : Shall the City of Livermore’s
measure to authorize the annual levy of special taxes within City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services) (“CFD”) to finance municipal services described in the City Council resolution entitled “A Resolution of Formation of a Community Facilities District” for the CFD” (“Resolution of Formation”) adopted January 22, 2024 and administrative expenses, commencing in fiscal year 2024-25, at rates ranging from $233.79 to $292.24/unit for Developed Property, $277.73/Final Map Property lot and $4,143.94/acre Undeveloped Property (Annual Services Special Tax); $19.99 to $24.98/unit for Developed Property, $23.74/Final Map Property lot and $354.24/acre Undeveloped Property (Annual Contingent Bridge Operation/Maintenance Services Special Tax); and $120.88 to $151.10/unit for Developed Property, $143.60/Final Map Property lot and $2,142.64/acre Undeveloped Property (Annual Contingent Bridge Repair/Replacement Services Special Tax), for a perpetual duration (or shorter period specified in the Resolution of Formation), be adopted? Financial Implications:

Special taxes, if levied at maximum rate with full build out of property initially in the CFD, would raise $193,606.45 in fiscal year 2024-25 with annual escalation thereafter.

YES: __________
NO: __________
[Ballot continued on following page]
598

EXHIBIT C

Page 2 of 2 ends

BALLOT MEASURE NO. 2 : Shall the City of Livermore’s
measure to authorize an annual appropriations limit of
$10,000,000 for City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services be adopted? YES: __________
NO: __________
The undersigned is the landowner or the authorized representative of the landowner and is legally authorized and entitled to cast this ballot on behalf of the landowner, and certifies that the landowner has received and reviewed the Voter Information Pamphlet and reviewed all the proceedings leading up to this election. The undersigned acknowledges that this election is being undertaken at the request and for the benefit of the landowner. The undersigned knowingly and voluntarily waives any and all rights it may have with respect to the election proceedings as of the date hereof or as a result of the passage of The Taxpayer Protection and Government Accountability Act, which is a constitutional initiative that is eligible for the November 2024 Statewide ballot.

Assessor’s Parcel Number(s): 099-1325-022-
02, 099 -1325-023-00, 099-1325-027-02, 099-
1325-029-02, 099-1325-030-04, 099-1325-089-
00, 099-1325-090-00, 099-1325-091-00
Acres: 29.154
Number of Votes: 30
Property Owner:

TH Arroyo Vista LLC,
a California limited liability company
By: ______________________________
Name: ___________________________
Its: Authorized Agent
Declaration
I hereby affirmatively represent and certify that I have taken all necessary steps, and that I am duly authorized, to sign and submit this Ballot on behalf of the owner(s) of the Property (Assessor’s Parcel Numbers 099-1325-022-02, 099-1325-023-00, 099-1325-027-02, 099-1325- 029-02, 099-1325-030-04, 099-1325-089-00, 099-1325-090-00, 099-1325-091-00) to form the Community Facilities District for the Property, and that the City may rely upon my representation to accept this Ballot on behalf of the owner(s) of the Property.

I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Date: ______________________________
Name: ___________________________
599
1 RESOLUTION NO. ___________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION DECLARING RESULTS OF SPECIAL LANDOWNER

ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN
Under the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), the Council is authorized to establish a community facilities district and to act as its legislative body.

This Council has adopted a resolution entitled “A Resolution of Formation of a Community Facilities District” (the “Resolution of Formation”), ordering the formation of the “City of Livermore Community Facilities District No. 2023-2 (Arroyo Vista Maintenance and Services)” (the “CFD”), authorizing the levy of special taxes on property within the CFD and preliminarily establishing an appropriations limit for the CFD, all pursuant to the Act.

Under the provisions of the Resolution of Formation and pursuant to a resolution entitled “A Resolution Calling Special Landowner Election for a Community Facilities District” (the “Election Resolution”) heretofore adopted by this Council, the propositions of the levy of the special taxes and the establishment of the appropriations limit were submitted to the qualified electors of the CFD as required by the provisions of the Act.

Pursuant to the terms of the Election Resolution, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Result of Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A.

This Council has been informed of the Canvass, finds it appropriate and wishes to complete its proceedings for the CFD.

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

1. Recitals. The foregoing recitals are all true and correct.

2. Issues Presented. The issues presented at the special election were the levy of the special taxes within the CFD and the approval of an annual appropriations limit of not to exceed $10,000,000, all pursuant to the Resolution of Formation.

3. Canvass and Issues Approved. The Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the CFD.

Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the CFD by more than two-thirds of the votes cast at the special election.

4. Proceedings Approved. Pursuant to the voter approval, the CFD is hereby declared to be fully formed with the authority to levy the special taxes and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by this Council with respect to the CFD were valid and in conformity with the Act.
600
2 RESOLUTION NO. ___________

5. Notice of Special Tax Lien. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of Alameda a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this resolution by the Council.

6. Effective Date. This Resolution shall take effect upon its adoption.

On motion of Council Member ____________, seconded by Council Member _______________, the foregoing resolution was passed and adopted on January 22, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST:

Deborah L. Elam
Acting City Clerk
APPROVED AS TO FORM:
/s/ Tara Mazzanti ____
Tara Mazzanti
City Attorney
Exhibit A – Canvass and Statement of Result of Election 601

EXHIBIT A

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Livermore City CouncilJanuary 22, 2024

Livermore City Council
January 22, 2024