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included not only fire protection, but also prevention. While the bid is considerably more than what was paid to the Alameda County Fire Department, it was comprehensive and LPFD is again the only department situated to provide the desired level of service. On November 2, 2012 LPFD was awarded the bid. Chief McGill noted that while Pleasanton is situated to receive $395,000 in year one and up to $480,000 in year 5 for its half of the contract, this is not new revenue for the City. He explained that prior to the consolidation of LPFD, the Alameda County Fire Department had contracted with the City of Pleasanton to pay for an additional three firefighters at Ruby Hill and, in the County's mind, this simply a pass-through of VA revenues being collected by the County at that time. Under this new agreement, the money would come directly to LPFD and in significantly greater amounts for both cities. Staff therefore recommends that the Council authorize the City Manager to enter into a revenue sharing agreement with the City of Livermore, as described. Councilmember Pentin noted the contract increases from $790,000 in year one to $960,000 in year five and asked if this is similar to the previous contract. Chief McGill said "no," the other contract varied but the proposed contract contains an annual inflator of 4.9%. Councilmember Pentin asked and Chief McGill confirmed that this type of inflator is common in federal contracts with local governments. Councilmember Pentin asked if the contract would go back out to bid at the end of five years. Chief McGill stated that the hospital has the option to extend the agreement for another five years, which is fairly likely given the absence of other suitable providers. Councilmember Brown asked what expenses the city would incur as part of the agreement. Chief McGill said there are no staffing or other major expenses; it is largely operational based on physical response, wear and tear on equipment, and fuel. The expense is essentially a wash however, with the hospital picking up its fair share of the LPFD budget with this contact. Mayor Thorne noted there were no speakers present to address this item. MOTION: It was m/s by Cook-Kallio/Pentin to authorize the City Manager to enter into a revenue sharing agreement with the City of Livermore, as described. Motion carried by the following vote: Ayes: Councilmembers Brown, Cook-Kallio, Pentin, Mayor Thorne Noes: None Absent: One Vacancy MATTERS INITIATED BY COUNCIL Councilmember Pentin said he would like the City Attorney's annual changes to the Municipal Code to include an amendment allowing future Councils the option of appointing, versus electing, new members. Mayor Thorne asked when the policy was last changed. City Manager Fialho said it was just prior to 1995 and based on the Council's belief that the community deserved the opportunity to elect its representatives. City Council Minutes Page 6 of 7 December 4, 2012