diff --git a/cluster/saltbase/salt/l7-gcp/glbc.manifest b/cluster/saltbase/salt/l7-gcp/glbc.manifest
index 48ed5f48925..90ba70ca291 100644
--- a/cluster/saltbase/salt/l7-gcp/glbc.manifest
+++ b/cluster/saltbase/salt/l7-gcp/glbc.manifest
@@ -12,7 +12,7 @@ spec:
   terminationGracePeriodSeconds: 600
   hostNetwork: true
   containers:
-  - image: gcr.io/google_containers/glbc:0.8.0
+  - image: gcr.io/google_containers/glbc:0.9.0
     livenessProbe:
       httpGet:
         path: /healthz
@@ -43,7 +43,7 @@ spec:
     # TODO: split this out into args when we no longer need to pipe stdout to a file #6428
     - sh
     - -c
-    - '/glbc --default-backend-service=kube-system/default-http-backend --sync-period=60s --running-in-cluster=false --use-real-cloud=true --config-file-path=/etc/gce.conf --healthz-port=8086 1>>/var/log/glbc.log 2>&1'
+    - '/glbc --verbose=true --default-backend-service=kube-system/default-http-backend --sync-period=60s --running-in-cluster=false --use-real-cloud=true --config-file-path=/etc/gce.conf --healthz-port=8086 1>>/var/log/glbc.log 2>&1'
   volumes:
   - hostPath:
       path: /etc/gce.conf
diff --git a/test/e2e/ingress.go b/test/e2e/ingress.go
index 645302f7255..5c13f916270 100644
--- a/test/e2e/ingress.go
+++ b/test/e2e/ingress.go
@@ -120,7 +120,7 @@ var _ = framework.KubeDescribe("Loadbalancing: L7", func() {
 
 		It("shoud create ingress with given static-ip ", func() {
 			// ip released when the rest of lb resources are deleted in cleanupGCE
-			ip := gceController.staticIP(ns)
+			ip := gceController.createStaticIP(ns)
 			By(fmt.Sprintf("allocated static ip %v: %v through the GCE cloud provider", ns, ip))
 
 			jig.createIngress(filepath.Join(ingressManifestPath, "static-ip"), ns, map[string]string{
diff --git a/test/e2e/ingress_utils.go b/test/e2e/ingress_utils.go
index 96e1e11b254..7f427fc729f 100644
--- a/test/e2e/ingress_utils.go
+++ b/test/e2e/ingress_utils.go
@@ -335,6 +335,23 @@ func cleanupGCE(gceController *GCEIngressController) {
 		}
 		return true, nil
 	})
+
+	// Static-IP allocated on behalf of the test, never deleted by the
+	// controller. Delete this IP only after the controller has had a chance
+	// to cleanup or it might interfere with the controller, causing it to
+	// throw out confusing events.
+	if ipErr := wait.Poll(5*time.Second, lbCleanupTimeout, func() (bool, error) {
+		if err := gceController.deleteStaticIPs(); err != nil {
+			framework.Logf("Failed to delete static-ip: %v\n", err)
+			return false, nil
+		}
+		return true, nil
+	}); ipErr != nil {
+		// If this is a persistent error, the suite will fail when we run out
+		// of quota anyway.
+		By(fmt.Sprintf("WARNING: possibly leaked static IP: %v\n", ipErr))
+	}
+
 	// Always try to cleanup even if pollErr == nil, because the cleanup
 	// routine also purges old leaked resources based on creation timestamp.
 	if cleanupErr := gceController.Cleanup(true); cleanupErr != nil {
@@ -342,6 +359,8 @@ func cleanupGCE(gceController *GCEIngressController) {
 	} else {
 		By("No resources leaked.")
 	}
+
+	// Fail if the controller didn't cleanup
 	if pollErr != nil {
 		framework.Failf("L7 controller failed to delete all cloud resources on time. %v", pollErr)
 	}
@@ -384,20 +403,6 @@ func (cont *GCEIngressController) deleteAddresses(del bool) string {
 			}
 		}
 	}
-	// If the test allocated a static ip, delete that regardless
-	if cont.staticIPName != "" {
-		if err := gcloudDelete("addresses", cont.staticIPName, cont.cloud.ProjectID, "--global"); err == nil {
-			cont.staticIPName = ""
-		}
-	} else {
-		e2eIPs := []compute.Address{}
-		gcloudList("addresses", "e2e-.*", cont.cloud.ProjectID, &e2eIPs)
-		ips := []string{}
-		for _, ip := range e2eIPs {
-			ips = append(ips, ip.Name)
-		}
-		framework.Logf("None of the remaining %d static-ips were created by this e2e: %v", len(ips), strings.Join(ips, ", "))
-	}
 	return msg
 }
 
@@ -664,9 +669,10 @@ func (cont *GCEIngressController) init() {
 	}
 }
 
-// staticIP allocates a random static ip with the given name. Returns a string
-// representation of the ip. Caller is expected to manage cleanup of the ip.
-func (cont *GCEIngressController) staticIP(name string) string {
+// createStaticIP allocates a random static ip with the given name. Returns a string
+// representation of the ip. Caller is expected to manage cleanup of the ip by
+// invoking deleteStaticIPs.
+func (cont *GCEIngressController) createStaticIP(name string) string {
 	gceCloud := cont.cloud.Provider.(*gcecloud.GCECloud)
 	ip, err := gceCloud.ReserveGlobalStaticIP(name, "")
 	if err != nil {
@@ -684,6 +690,27 @@ func (cont *GCEIngressController) staticIP(name string) string {
 	return ip.Address
 }
 
+// deleteStaticIPs delets all static-ips allocated through calls to
+// createStaticIP.
+func (cont *GCEIngressController) deleteStaticIPs() error {
+	if cont.staticIPName != "" {
+		if err := gcloudDelete("addresses", cont.staticIPName, cont.cloud.ProjectID, "--global"); err == nil {
+			cont.staticIPName = ""
+		} else {
+			return err
+		}
+	} else {
+		e2eIPs := []compute.Address{}
+		gcloudList("addresses", "e2e-.*", cont.cloud.ProjectID, &e2eIPs)
+		ips := []string{}
+		for _, ip := range e2eIPs {
+			ips = append(ips, ip.Name)
+		}
+		framework.Logf("None of the remaining %d static-ips were created by this e2e: %v", len(ips), strings.Join(ips, ", "))
+	}
+	return nil
+}
+
 // gcloudList unmarshals json output of gcloud into given out interface.
 func gcloudList(resource, regex, project string, out interface{}) {
 	// gcloud prints a message to stderr if it has an available update