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MINUTES Page 12 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-March 6, 2006 City Manager Jermanis reported that the Council met in closed session earlier tonight with its negotiators regarding the contract with the San Leandro Employees Association (SLCEA). The City Council authorized the City Manager to bring back for Council consideration a new three-year agreement for the SLCEA. Negotiations will continue with the San Leandro Management Organization (SLMO). City Attorney Jayne Williams reported that the second item discussed by the City Council in closed session was a matter of threatened and anticipated litigation arising out of a dispute between the City and Oro Lorna Sanitary District (District) as to whether responsibility for solid waste collection rests with the City or the District, and the City's concerns regarding the loss of franchise fee revenue to support municipal services and the need for uniform refuse and recycling levels of service that are consistent throughout the City. She reported that the City Council took action by a 6-0 vote (Mayor Young was absent) to authorize a settlement of the potential legal dispute between the City and the District and to resolve any current or future claims or actions. The City Manager, on behalf of the City, is authorized and directed to enter into and execute a "Term Sheet Agreement" with the Oro Loma Sanitary District that sets forth the terms and conditions of the settlement as approved by the Council in closed session. The provisions of this Term Sheet Agreement shall be incorporated into a final agreement to be prepared by the City Manager and City Attorney and submitted to the City Council for final approval at its March 20, 2006 regular meeting. The City Manager is further authorized and directed to forward the executed Term Sheet Agreement to the District by March 7, 2006 for action and approval by the District at its March 7, 2006 scheduled Board meeting. Public Comments on Item 1 O.A.: Lou Filipovich, San Leandro resident, addressed the City Council, commenting on sanitary districts and other local agencies' compliance with the provisions of Proposition 218. He commented that the agreement reached by the City and Oro Lorna will result in increased costs to the customer. End of Public Comments on Item 10.A. 11. CITY COUNCIL REPORTS A. Reports on Intergovernmental Agencies None. B. Reports on Conferences and Seminars None.