A regular meeting of the City Council of the City of San Ramon was called to order on February 26, 2002 at 7:30 p.m. in the City Council Chamber, 2222 Camino Ramon, Mayor Tatarka presiding.

PRESENT: Councilmembers Cambra, Dickey, Hudson, Wilson and Mayor Tatarka

ABSENT: None

STAFF PRESENT: City Manager Herb Moniz, City Attorney Tom Curry, Police Chief Brian Lindblom, Administrative Services Director Jim Randall, Parks and Community Services Director Jeff Eorio, Planning Director Phil Wong, Engineering Services Director Joye Fukuda, Transportation Director John Dillon, Economic Development Services Director April Gray, Senior Civil Engineer Moustefa Kendroud, Division Manager – Parks and Community Services Department Esther Lucas and City Clerk Judy Macfarlane

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Mayor Tatarka stated Council had met in Closed Session pursuant to government code

§54956.9(a) to discuss existing litigation regarding Davidon Homes v. City of San Ramon (#C-01-050937)

Cm. Cambra led Council, staff and those present in the audience in the pledge of allegiance.

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Mayor Tatarka presented a proclamation recognizing Police Officer Terry Reeder as "Officer of the Year" for 2001.

Mayor Tatarka presented a proclamation recognizing and thanking Esther Lucas for her contributions as director of the San Ramon Senior Center.

The Planning Services Director introduced new employee Beatriz Duffy, Associate Planner.

The Police Chief introduced new Police Officer Allen Molien.

Mayor Tatarka welcomed the new employees and gave them City pins.

Valley Children’s’ Museum Board members Lori Werhane and Stacie Stevens, described the many benefits communities experience from having a children’s museum. They presented the history, concepts and mission of children’s museum. Steve Goins addressed the issue of funding this project and announced a fund raiser to be held on March 23^rd at the Blackhawk Museum. He also discussed interim sites for the museum.

Bud Jones and Frank Aguillere, PG&E, described the process and necessity for the installation of fiber optic cable along the existing infrastructure that runs between the San Ramon substation on Del Mar Drive to the Learning Center on Camino Ramon. They stated the Learning Center was PG&E’s alternative headquarters in the event of an emergency. They said it would take approximately two weeks to complete the work once the rainy season ended.

The Engineering Services Director stated this was an informational item for the Council and residents. She stated there had been a public notice of the proposed project mailed to the residents within a 1,000 ft. radius along the Iron Horse Trail, in addition to being posted in all official posting places and on the City web site.

In answer to Cm. Dickey’s questions, the representatives described the visual impact of the proposed cable installation. He said currently at the top of the 72 ft. tower is a major transmission line, 30-40 ft below that are distribution lines. The proposed fiber optic line would be eight feet below the distribution lines, pursuant to State requirements, resulting with the new line being 18-20 feet above the ground.

Cm. Hudson asked if there was going to be an encroachment permit issued for this project.

The Engineering Services Director stated PG &E would make application for the three to four roadway crossings with the City.

Cm. Cambra inquired if this new line could be undergrounded.

The PG&E representative stated that it could, however, there were concerns regarding safety and security of the line if it were undergrounded.

The City Manager stated this item was placed on the agenda as an informational item to apprise Council of the proposed project. He said after the information is received and the public has been notified, staff is looking for direction from Council on how to proceed. Normally, he said, this would be a ministerial encroachment permit action.

Paul Mitchell stated PG& E’s plan is to underground the cable from the Learning Center to the towers on the Iron Horse Trail. He challenged the concerns surrounding the safety and integrity of the line and stated the entire line of cable could be undergrounded. He presented a letter accompanied by photographs to show Council how the transmission lines appear now, and presented a "mock-up" reflecting the proposed additional cable and its negative visual impact to the community. He shared the information he received from an earthquake expert that showed the devastating affect to towers similar to those on the Iron Horse Trail during an earthquake. He felt there would be far less damage to the cable when it was undergrounded. He also spoke about how unattractive the cables are. He suggested the undergrounding cost could be minimized by working in tandem with Central San when their sewer line project was being trenched.

Cm. Hudson’s motion to schedule this item at a future meeting in conjunction with the letter under Written Communication received from Central San and suggested consideration of holding a joint meeting with the Planning Commission, was seconded by Cm. Wilson and passed 5-0.

Cm. Cambra reminded the representatives from PG & E to seriously consider the undergrounding in their future presentation.

Mayor Tatarka "State of the City" address (See Attachment A)

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The City Clerk said there were four boards and committees for consideration.

She stated the first appointments were to the Architectural Review Board and reviewed the specific positions outlined for this board in Ordinance #39.

Cm. Hudson’s motion to appoint Steve Goins, Christian Deshaise and Joe McHale to fill the vacancies on the Architectural Review Board, with Natalie Bokum as alternate, was seconded by Cm. Dickey and passed 5-0.

The City Clerk said the next appointment would be San Ramon’s representative to the Community Cable TV Board of Directors.

After Council ballot Cm. Hudson’s motion to appoint Vince Golla to the Community Cable TV Board of Directors was seconded by Cm. Dickey and passed 5-0.

Ken Mintz, Parks and Community Services Chairperson, said pursuant to the procedural changes that were approved by Council at the January 22^nd meeting, subcommittees were established to conduct the interview portion of the application process. Mr. Mintz reviewed the detailed interview process and said the Commission recommended had Pat Boom, Pam Henry, Al Kellogg and Joseph Scardino for appointment to the Forest Home Farms Advisory Committee.

After two Council ballots Cm. Cambra made a motion to appoint Lisa Cooke, R. Nathan Green, Raymond Howard and Nancy Thompson to the Forest Home Farms Advisory Committee.

The motion was seconded by Cm. Dickey and passed 5-0.

Chair Mintz stated on behalf of the Parks Commission he was extremely dismayed that after having gone through the extensive process the Commission’s recommendations were disregarded. He said if the process that was put in place by Council is not working, perhaps it is not needed.

Chair Mintz announced Frank Zagarella, former member of the Senior Advisory committee, Senior Scholar, volunteer, and member of the creative writing group had passed away.

Chair Mintz stated with regard to the Senior Advisory Committee appointments, 10 people had applied and the information was in the Council’s packets.

Cm. Wilson stated when Council gave authority to the Parks Commission to interview and evaluate candidates, he hoped that Council would take their recommendations into consideration. He said the Commission had given their time and energy and had utilized a certain expertise when they conducted the interviews and he hoped Council would honor their decisions. He further stated this was a proven process that does work, it has worked in the past and should work in the future. Cm. Wilson said if Council wants to micro manage, which he felt was occurring, then Council should be doing the interview process itself instead of ignoring the recommendations made by the Parks Commission.

Cm. Dickey said it was a very good suggestion for the future and they will take it into consideration.

After Council ballot Cm. Dickey’s motion to appoint Sue Cold, Murray Iskin, Doreen Peterson, Mary Splane, Phillip Reed and Donald Wilfong to the Senior Advisory Committee was seconded by Cm. Cambra and passed 5-0.

Mayor Tatarka said the Council had selected all of the applicants that had been recommended by the Parks & Community Services Commission.

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Lucy Voorhees spoke of DART, a disaster plan for residential neighborhoods and thanked the Fire Department for their assistance in implementing this plan in her neighborhood. She described the training program and encouraged others in the community to participate in this program.

Mayor Tatarka invited Ms. Voorhees to return at a future Council meeting to make a full presentation.

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Rosalind Rogoff asked the Council for a letter of support for Senate Bill No. 1326, (the Omnibus Bill), specifically Section 6518, paragraph (d). She also reminded everyone to vote on March 5 and invited interested parties to her web site, www.sanramonobserver.org.

Phil Reed extended an invitation to Council, staff and the public to attend the reception honoring Esther Lucas on Friday, March 1^st, at 2:00 P. M. at the Senior Center.

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Cm. Dickey’s motion to approve the amended minutes of the February 12, 2002 was seconded by Cm. Cambra and passed 4-0-1 (Cm. Hudson abstaining).

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Mayor Tatarka requested Item 8.6, Mid-year Report of the FY 2001/02 Community Service Grant Program, be removed for discussion.

Cm. Dickey’s motion to approve the following Consent Calendar was seconded by Cm. Cambra and passed 5-0.

Finance

Register of demands dated February 24, 2002 in the amount of $402,018.37.

Landscaping and Lighting District 1984-1
Resolution No. 2002-20
Approving the Landscaping and Lighting District No. 1984-1 Amended Engineer’s Report for FY 2001/02

Resolution No. 2002-21
Accepting certain road and storm drain improvements in Subdivision 8026 (Standard Pacific/Four Oaks) as complete and for maintenance, accepting Subdivision 8026 frontage improvements on San Ramon Valley Boulevard as complete and for maintenance, accepting Parcels A, B, C, and D of Subdivision 8026 for roadway and open space purposes, authorizing the full release of all security for public improvements, accepting a performance bond from Standard Pacific in the amount of $264,000 for San Ramon Valley Boulevard Improvement Fee Obligation and authorizing the conveyance of a portion of Parcel D to the property owner abutting Lot 13 (130 Minerva Way)

Acceptance of Work
Grade Tech, Inc., for construction of the Crow Canyon Road Landslide Repair Project (CIP 8652) as complete and authorization for the City Clerk to file a Notice of Completion with the County Recorder’s Office

Acceptance of Work
Valley Crest for landscaping improvements at Golden View School Park (CIP 5309) as complete and authorization for the City Clerk to file a Notice of Completion with the County Recorder’s Office

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Mayor Tatarka said a letter had been received from Central Contra Costa Sanitary District requesting a joint project along a portion of the Iron Horse Trail in conjunction with the CCCSD San Ramon Force Main Project. She requested this item be placed on a future agenda as it involves the settlement with Central Contra Costa Sanitary District.

Cm. Hudson’s motion to place this item on the agenda and to discuss the coordination of jurisdictions including the PG & E Fiber Optic Telecommunications project was seconded by Cm. Dickey and passed 5-0.

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Esther Lucas, Division Manager, Parks and Community Services Department, said the conceptual design plan for the Senior Center Phase II Expansion Project was being presented for Council’s review and approval that night. She presented an overview of the original construction of the center along with additions that had been made to accommodate the growth in attendance. Ms. Lucas said the Phase II Expansion Project would provide an additional 4,700 square foot building, remodeling of the existing building, a new parking area and relocation of the Senior Gardens. She said the attendance had grown ten times to what it was ten years ago.

Ms. Lucas advised Council that Kattenberg Architects was the firm who did the original Master Plan for the Senior Center project and they had been recommended by the Parks and Community Services Commission for Phase II. She reviewed the numerous meetings and public workshops that were held to gather input for amenities and the proposed design. She said the conceptual design being presented that night had been presented and approved to move forward by the Parks & Community Services Commission at their January 9, 2002 meeting.

Ms. Lucas introduced Rick Kattenberg and Paul Hartman of Kattenberg & Associates who reviewed the process used to present the best possible addition to the Senior Center while staying within the City’s budget.

Mr. Kattenberg outlined the plan to blend the new construction with the existing building, utilizing the current retaining walls, the space needs, reformatting the existing floor plan, multi functional space, improved public address system, and additional storage.

Cm. Wilson expressed his concerns for adequate restroom facilities, space needs surrounding the coat closet area, and secure flooring traction, especially near the entrances and exits to the building.

Mayor Tatarka opened the public hearing.

Phil Reed, Chair of the Senior Advisory Committee, said consensus was reached by all on the conceptual design and expressed his pleasure working with Kattenberg & Associates. He focused on the space needs and lighting requirements for different activities and classes. He spoke of the proposed space and how it is designed to be multi-functional to accommodate trends in the senior community. He said the garden relocation is required due to the building expansion requirements. He spoke of how fortunate and appreciative the seniors were to have such a nice facility.

Mayor Tatarka said cards were received from Henry Zuckerman, Don Wilfong and Kay Cooper who did not wish to speak but supported Mr. Reed’s position on the project.

Jan Fraser, a Senior Advisory Committee member, said she serves as a case manager in the Senior Center. She said a bigger building means more seniors, reaching out with more opportunities to the senior community and thanked the Council for consideration of the expansion project.

Lois Holeman, member of the Senior Foundation, spoke about how inter-community organizational the Senior Center is. She described how the senior gardeners interact with the business community and spoke of the value of the Senior Scholar Program.

Mayor Tatarka closed the public hearing and declared a short recess.

All Councilmembers were present when the meeting reconvened.

By consensus of Council, it was decided the Mid-year Report of the FY 2001/02 Community Service Grant Program would be discussed after the Senior Center Expansion project was considered.

Cm. Dickey stated she felt the plan presented for the Senior Center expansion was outstanding. She questioned the differences in the budget between Saylor Consulting Group ($1.5 million), $1.3 million stated in the Program Phase II Expansion dated September 11, 2002, and our costs to date stated at $2.5 million.

The Engineering Services Director stated the $2.4 million was what is referred to as a "total project cost". The Saylor cost is a component of that figure, and is the construction cost. She further stated when you add in the additional costs such as design costs, utility connection fees, services during construction, bidding costs, etc., that is what makes up the total of $2.4 million. She confirmed that this was the current budget in the CIP for this project.

Cm. Dickey also questioned the attendance figures.

Ms. Lucas confirmed the attendance figures for July through December 2001 averaged 1,073 per week. She stated this did not include walk-ins (those attending the center, not in a registered activity).

Cm. Dickey’s question on how much was being spent on site development was answered by the City Engineer who confirmed that site development costs, which also include retaining walls and grading, were included in the $2.4 million budget.

Cm. Wilson stated that since the City had built on this site previously, we had a very good history and were familiar with work done previously and what the needs would be to secure and support that area.

The Engineering Services Director answered Mayor Tatarka’s questions by saying the current square footage is 9,300, and the net gain was going to be 4,700 sq. ft.

The Division Manager recapped the conceptual design process for Mayor Tatarka by saying it began in 1999 with the Senior Advisory Committee working on their strategic plan. Meetings with the architect started July 2, 2001 and were approved by the Senior Advisory Committee on December 3, 2001. On December 12^th, this item was presented to the Parks & Community Services Commission for conceptual review and approval. The Parks & Community Services Commission reviewed the cost estimates and made the recommendation to forward the plan to Council on January 9, 2002.

Cm. Wilson commented on the importance of the seniors and their contributions to the community. He spoke of the positive affects of multi-generational relationships and the benefits of the programs. He said the programs give all of us life, hope, and a life after work. He said when we give to the seniors, we give to ourselves as they are planning for our future.

Cm. Cambra inquired about the additional cost of the ingress/egress occurring on Stagecoach Drive in relationship to the project. He asked if it were broken out or was there a comparison to the original project?

The Engineering Services Director answered by saying this was included as a complement to the parking lot along with the driveway and was just figured in the square footage.

Cm. Cambra asked what the cost was per square foot of a similar facility, and how would this figure compare to a typical project. He said according to his figures, this project was about $531 per square foot, which seemed a bit high.

The Engineering Services Director stated when comparing square footage pricing and focusing primarily on the building itself, it was closer to $230 per square foot. She compared this figure to other City projects, such as the Pine Valley gymnasium project which was $207 per square foot, and the Aquatic Center which bid in 1998, was $230 per square foot.

Cm. Cambra asked where the disparity was between the $531 he calculated, and the figure of $230 quoted by the Engineering Services Director.

The Engineering Services Director stated the $230 a square foot is a building construction cost. She said the figure calculated by Cm. Cambra included the building costs, costs for design services, land surveying, geo-technical services, bidding, plans and specifications, and reproduction costs. She continued with the costs for professional services during construction which include the architect, land surveying costs during construction, (if we have a construction management firm involved with the project), post construction costs such as preparing "as built" documents, some of utility costs such as water and sewer line extensions and connection fees to sewer and water agencies.

Cm. Dickey asked for clarity if Council was approving the conceptual design of the project or the costs of the program.

The Engineering Services Director replied Council was being asked to approve the conceptual plan for the project. She said if the conceptual plan was approved that night, then staff at the next Council meeting, would request an amendment to the agreement with Kattenberg Architects to proceed with the preparation of the construction plans and specifications. She said it was noted in the staff report that there were some additional added scope items that came up as a result of the Senior Advisory Committee. She said they were not asking for a contract or a budget amendment, that would be part of the FY2002/2003 CIP.

Mayor Tatarka said she was glad this item was continued so she was able to receive more information on the project. She spoke of "Focus on the Future" that provided comprehensive and valuable information. She requested clarity on bulleted points which referred to "City Council funding" and "strategic partnerships."

Ms. Lucas said "Focus on the Future" referred to partnering with a number of agencies, such as the county, local businesses, professionals working with the aging field and other fields that may compliment the programs the seniors were doing. She said they would assist with programming for leisure and recreational needs by offering services such as care management.

Mayor Tatarka stated that she was unable to attend the December 12^th meeting where the presentation was made however she was able to attend the January 9^th meeting where the focus was on the financial component of the project. She stated her lack of confidence in the veracity of the report, and explained the report stated the project was estimated to be over the budgeted amount of $2.4 million by 14% or $185,000. She corrected the math and said 14% was $330,000. She reviewed and questioned the attachments in the staff report and asked how the Parks & Community Services Commission could make recommendations with incomplete detailed information and incorrect math on the first page. She further stated when she was at the Parks & Community Services Commission meeting on January 9^th, there was no discussion of senior fund raising or partnering with the City. She referred to the two conceptual floor design alternatives and questioned what the first plan was and why this plan was selected over the other plan.

Ms. Lucas stated the difference between the plans was determined by the location of the crafts room and the games room. The seniors felt the second plan met their needs better.

Mr. Kattenberg said it was the architects’ role to explore alternatives and by showing a good process of what really makes sense. He said it helped to clarify judgment in the eyes of the advisory committee. He said in actuality, there were many plans and alternatives, and this was the refinement which we are calling a conceptual plan. He said with regard to the costs, this project is within the City’s original budget. He said while this is still a conceptual plan, it is fortunate that since Kattenberg did the original building, the cost estimators were able to write this plan similar to a design development estimate.

The Engineering Services Director said the $1.5 million was the total on the attachment and that number was within the cost budget that had been summarized. She said the project manager had provided clarification to the Parks & Community Services Commission regarding the $185,000 figure that had been questioned earlier.

The Senior Civil Engineer stated there had been an error on the cost estimate, however the correction had been noted by memo to the Parks & Community Services Commission.

The City Manager stated the Parks & Community Services Commission received the complete copy of the report, however the Council’s packet appeared not to have been collated correctly which led it to be incomplete.

Mayor Tatarka stated her concern for the cost of the project while doubling the size of the facility. She supported the design and acknowledged the need for expansion and inquired if there was a way of doing the project in phases.

The Engineering Services Director said in looking at the three major components of the project, building, gardens and parking lot, they are all in a domino type path. One phase of the project cannot be completed without incorporating the next phases.

The Parks & Community Services Director answered Mayor Tatarka’s concerns regarding the safety of the seniors during construction by saying the seniors were experienced in dealing with construction inconveniences. He said they will close off and insulate sections of the building as they have done in the past during prior construction and remodeling. He said programming will continue without interruption to schedules, however, there would be some noise issues, but the seniors have dealt with that previously. He stated if need be, some of the programs could be moved temporarily to the Community Center.

Mayor Tatarka asked if the Senior Foundation had plans for monetary contributions to this project, similar to the contributions they made to the gazebo project.

Ms. Lucas replied she was unaware of any formal plans at this time however she spoke of the Foundations high involvement and assistance with the Senior Center.

Cm. Wilson addressed concerns about weddings at the facility and the impact parking would have in the area. He also spoke of the adaptability of the seniors and their ability to survive a remodel.

Cm. Hudson’s motion to adopt Resolution No. 2002-16 Approving the conceptual design for the San Ramon Senior Center Phase II Expansion Project, was seconded by Cm. Wilson and passed 5-0.

Approving the conceptual design for the

San Ramon Senior Center Phase II Expansion Project (CIP 8522)

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The Parks and Community Services Director said this was a mid-year review of the program recipients that received funding from the Community Service Grant Program approved by Council on July 10, 2001. He reviewed the organizations that received funding and stated the mid-year review was a requirement of the program. He said a report would be made to Council at the conclusion of the program. The Director said the report had been reviewed and approved by the Finance Committee. He requested Council’s approval to move ahead with the application process for the FY 2002/2003 Community Grant Program and funding level of $100,000.

Cm. Cambra said at the Finance Committee meeting, the $100,000 level was determined with a caveat that it may increase if necessary.

Mayor Tatarka inquired just how much it would increase.

The Parks and Community Services Director replied the total amount would be based upon the number of applications received. He said the applications process opens April 1^st and runs through the end of May. He reviewed last year’s process, the additional funds added and the separate grant of funds to the Discovery Center. He stated this was a tentative funding level in the program of services, and there was a willingness to add to the funds if deemed necessary.

Cm. Wilson stated the base figure was set at $100,000 and additional funds could be added if necessary. He said it was dependent on the number and type of grant applications received.

Cm. Cambra stated last years applications totaled $125,000, which by funding this year at $100,000, the total was reduced by $25,000.

Cm. Hudson stated the original level established for the Community Service Grant Program was set at $75,000. He inquired about returning to the original funding level and asked if a new level had been established. He also inquired about the possibility of this level increasing.

Cm. Wilson confirmed the level was set at $100,000.

Debbie Roof, Project Coordinator, Twin Creeks School, thanked the City for last year’s contribution. She described the progress of the new program and said that it serves over 30 students on a weekly basis. She said the $15,000 grant received from the City enabled their project to receive a $23,000 grant from the State. She said she was encouraged by Council to expand this program.

Cm. Hudson said he was concerned about the funding levels of the Community Service Grant program. He said this grant specifically was for a San Ramon Valley Unified School District program that the City was funding. He asked Ms. Roof where the funds from the grant from the State were being applied.

Ms. Roof stated the State requires matching funds to receive the grant. She stated the $15,000 received from the Community Service Grant program was used towards this requirement with the $7,000 balance being comprised from additional sources and the School District. She said the program costs $45,000 per year to run.

Cm. Cambra’s motion to approve the Mid-year Report of the FY 2001/02 Community Service Grant Program was seconded by Cm. Hudson and passed 5-0.

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The Planning Services Director said at the February 12, 2002 City Council meeting concerns were raised concerning the performance of Turner Construction on a project in the City of Milpitas and the termination of their contract had been discussed. He said the matter was continued to this meeting to allow Turner Construction to be present to personally address questions and concerns of the Council.

Michale O’Brien, General Manager for Turner Construction, introduced Bob Diaz, Project Executive and Mike Harris, Construction Manager. He said they wanted to address all of the issues raised at the last meeting regarding their performance to date on the contract with the City and the concerns Council had with reference to the City of Milpitas.

Mr. Diaz stated his surprise over the criticism received at the last Council meeting and said he had not been informed of any dissatisfaction with their performance on this project. He said staff had been very positive about their performance. Mr. Diaz described the manner in which they work with public agencies in the role of consultant as working directly with and for city staff. He stated once they report to city staff, the information is conveyed to Council whenever requested, or when staff deemed appropriate. He addressed a few assertions made by Council at the last meeting, describing them as personal opinions, describing his presence as being "aloof". Mr. Diaz said perhaps this was attributed due to the fact he works directly with staff and not directly with Council. Commenting on the meeting of December 20^th that was designed by staff to update Council on the City Center project, he said he was directed to prepare an abbreviated version of the budget for Scheme II. He said he felt he had performed the way he was directed to by City staff. He also addressed the questions surrounding the invoicing process stating the contract was dated December 4, 2001, thus billing for only one month had occurred. He said if there were questions or suggestions, he would welcome an open and frank discussion on how to proceed.

Mr. Harris, Project Manager, stated the work at the City of Milpitas project was hamstrung in the nature of the public forum. He said professional courtesy and the realization that they have existing outstanding construction contracts made it difficult for them to discuss it in public. He did say that Turner Construction continuously provided budget and scheduled recommendations to staff and council at the City of Milpitas and all decisions were made by the City. He said calling the architect involved with the project in Milpitas would provide an independent assessment of their performance. He presented a slide presentation "Turner City 2000," and recapped a 100-year historical overview of the company. Mr. Harris expressed Turner Construction’s desire to continue work on this project.

Mayor Tatarka open the public hearing.

Todd Taylor said he was a resident of San Ramon in addition to being a Senior Project Superintendent for Turner Construction. He said being a resident, he had a vested interest in what was best for San Ramon and with his personal involvement with several of the projects shown in the video, he felt Turner Construction was best qualified to do this project.

Katy Medinas said she was proud to live in San Ramon because of all of the activities provided for the community. She said she was also very proud to be the Health & Safety Director of Turner Construction. She spoke of her complete faith in Turner Construction, her pride of its accomplishments and felt they would deliver a product that everyone would be proud of.

Cameron Johnson, resident of San Ramon and employee of Turner Construction, spoke of how qualified Turner Construction is and said it would be a bad decision to terminate this contract.

Robert Kellman, resident of San Ramon, said he was very excited about this project and spoke on how vibrant the community is. He said this project would bring a central focus to the City. He said he has been following this project closely and was excited when Turner Construction was selected and spoke favorably about projects he had observed that they were in charge of. He said the City needs a focus to give us an identity and hopes that the process will not be delayed by the firing of this firm.

Mayor Tatarka closed the public hearing.

Cm. Cambra said it was nice to finely meet the representatives from Turner Construction. In response to comments made by Mr. Diaz, he said the reporting order would change and felt Mr. Diaz should have introduced himself at the meeting of December 20^th. He questioned the timing issue with work performed relevant to the contract date of December 4^th. He said he declined Turner Construction’s offer to have a private meeting with him to discuss the situation in Milpitas. He said since Turner stated they would not discuss the situation with Milpitas publicly, he would respect their position and refrain from addressing specific issues regarding Milpitas. He stated the Milpitas situation only confirmed what he had already seen and said we don’t need details of the Milpitas situation. He stated this whole process started when he asked staff for a breakdown of all invoices for work done on the Civic Center project by all of the consultants. His original concern was based on the architectural services, not so much the project management portion. It was at this time he noted the $453,000 contract with Turner had submitted no invoices for work during a five-month period of time. He said with no invoicing occurring, no phone calls, e-mails, or letters from Turner, his curiosity was peaked. He said he felt Turner had offered a nominal presentation on December 20th, and they hadn’t led that meeting. When asked, he said he had received only one invoice in the amount of $55,000 for over 300 hours at $180 an hour for a project executive to prepare the cost estimates. Cm. Cambra said he felt $150 per hour would be more appropriate. He said that Turner should have provided the City with direction as to the best way to run this project such as scheduling alternatives, phasing options, financial strategies. He said we have not changed one thing substantively in this particular process and Turner needed to take the lead to give San Ramon some direction. He said this was what they were hired for, or at least, that was what they should have been hired for. Cm. Cambra stated before the last meeting when this situation what brought up, he had received a phone call and on the day of the meeting he had been given the newspaper article entitled "A Mess in Milpitas."

Cm. Hudson interrupted by saying if the Council was going to have written information, he would like to have a copy of the article. He said he had never seen the article and did not want to hear a word out of it unless he had a copy.

Mayor Tatarka asked Cm. Cambra why he was the only one with a copy of this article.

Cm. Cambra replied that he gave the original copy of the article to the City Manager to make copies for the rest of the Council.

Cm. Hudson said he felt the article should not be discussed. He said to avoid a Brown Act violation , the entire Council should be provided copies.

A short recess was declared so copies of the article could be provided to Council, staff and those in the audience.

All Councilmembers were present when the meeting reconvened.

Cm. Cambra read the following quotes from the newspaper article:

1. "In a nutshell, we can say it was a case of non performance."
2. "We had expectations of Turner Construction in regard to information flow and scheduling and the Council felt that these benchmarks were not being met."
3. "As months went by, it became clear that the situation was a untenable and Turner had to go."
4. "Wilson said that there had been a series of frustrations working with Turner Construction."

Cm. Cambra said he personally confirmed that these quotes were taken within context and there was other information involved which he had promised Turner he would not speak of publicly. He said the findings in Milpitas confirmed his own independent thoughts on this situation. Cm. Cambra stated that Turner has said the City of Milpitas was "not without fault" and that could indeed be true but the fact remains that Turner was the project manager and the project did have problems.

Cm. Cambra further stated that the calls from Turner this past week were welcomed and difficulties with our project were discussed. However, he stated he still does not have the necessary confidence in Turner to move forward. He said we need a "cradle to grave" approach on this and personally he does not have confidence in Turner Construction.

Cm. Dickey said she looked over the contract and referred to the last page, questioning why Dave Hudson signed the contract on November 29^th and challenged the validity of the contract.

The City Attorney stated the contract was valid and Dave Hudson did have the authority to sign it.

Cm. Cambra asked why Mayor Tatarka had not sign the contract.

The City Manager stated the contract was probably sitting in Dave Hudson’s mailbox awaiting signature during the change of title.

Cm. Dickey replied that this could not be since Turner signed it on the 27^th of November.

The City Manager said he would research it.

Cm. Dickey asked about the 6% escalation figure in the budget, whether it was a per year escalation rate or an escalation rate for the term of the project.

The consultant replied the escalation rate was calculated on a start date of Summer 2003. He said this would have been the contract cost at the time of bid and would cover the construction of the project.

Cm. Wilson said it seemed odd that they were discussing whether or not to retain our project manager, Turner Construction. He stated that we should not convict or judge someone by a newspaper article. He said we have laws and he would hope that regardless of what is said in the newspaper, we were professional enough to call and wait for the litigation to happen prior to making final judgment. He expressed his confidence in Turner Construction stating they sat in many council meetings and he felt there was nothing hidden about the costs. He said Milpitas had been given the cost, and it was their decision, not Turner’s, to expand the project. He stated that as far as he was concerned, Turner did fill their request. He said when the City changed the scope of the project from Scheme #2 to another venue looking at both sides of Bollinger Canyon Road, we were starting over from ground zero. He said once we decide what the project is, it would be at that time that Turner takes over. Cm. Wilson continued by saying when you look at the anticipated communication between Turner, staff and Council, he was sure Turner would update them, the same as they did in Milpitas and that was public record. He stated he would not participate in the action that night because the Council was judging and convicting Turner Construction without them having their day in court. He said the Council was sitting here quoting a newspaper article from someone who is biased and Turner stated that they were not going to respond because they are professional. He said look at what Turner has done, what they have built and their reputation. They continue to get jobs because they are competent and that is why we chose them. He said he had full faith in Turner because they are competent and know what they are doing. He concluded by saying he had faith in the Council and in the staff.

Cm. Hudson said the issue of who signed the contract should not even be discussed. He said it was not signed "Dave Hudson, Mayor," and if we want to find out why and when he signed it, that issue should be set aside.

He referred to Cm. Cambra’s statement made earlier that "things were going to change." He said Turner Construction, or whomever was chosen, does not report to staff. He felt the statement needed clarification because if, whoever is doing the City Center project is calling up councilpersons individually out of the public eye, he wanted to be the first one to go to the press to say "wait a minute, we are doing this without public hearings." He continued saying every time a phone call is made or some kind of a subject has to be discussed with the City of San Ramon, we will have to call a public hearing. By doing this, he continued, the cost of the project will increase, just like was experienced with the previous consultant.

Cm. Hudson said the decision to pick Turner Construction was one of the easiest decisions he has had made and noted four of five Councilmembers voted for Turner. The other vote was for Swenerton who is an extremely competent firm as well. He stated as far as he was concerned, he picked the firm best for San Ramon and would select them again. He found no reason to try and find someone else who couldn’t possibly be better than the firm that was originally selected. He stated their credentials were the best and he stands behind them.

Cm. Dickey said when things like this occur, everybody begins to question. She said it is very naïve of us to think of blaming this 100% on one side as it takes a lot of things happening for something to go wrong. She said when we hear something like this, it behooves us to be concerned and pay attention to it because we are responsible for doing the right things for the citizens. She continued by saying we have to consider this no matter if it is truthful or not and this has to be within our purview of opinions. She told Turner that they were not 100% to blame but expressed concerns stating when accusations are made it comes with the territory. She said where there is smoke, there is fire and she frankly had a concern that she hoped would go away although she didn’t know if it would.

Mayor Tatarka said for many years the City has been discussing the Civic Center and had gone through many versions of the Civic Center. She stated the most focused we have been was on the Civic Center Task Force report, a vision of the residents in 1998. Since that time, she said, the City had concentrated its efforts and had spend nearly a million dollars on a process, and what we have is a strategic operational plan for the elements, a library, performing arts, children’s museum, city hall, ancillary retail and open space. The Council has been faced with part of an original team, part of which is gone, conceptual design plans that really have not materialized, new councilmembers trying to "come up to speed" and now we have a non-communicative project management team that has been fired from project in a neighboring city. The bottom line for her, she said, is this Council needs to move forward with greater oversight and confidence in the professionals with whom we contract. She said the first question the Council has is what is their level of confidence with Turner Construction as the project management team of our $130 million project. She asked all councilmembers to keep an open mind in the discussion and to do what is in the best interest of the City and its people.

She explained that she avoided personal contact with Turner Construction to allow this to be a public process. She stated the concern that she had with Turner Construction was their not notifying the City of San Ramon about what was occurring in the City of Milpitas. She stated her displeasure in finding out about this at the Council level from an article in the newspaper. She said it was her understanding from talking with people and doing some research that these facts were confirmed.

Mayor Tatarka questioned when Turner was first hired and stated she did not recall the staff report where Turner Construction had received the recommendation from staff. She said she felt that Turner should have presented the new councilmembers with complete information and was disappointed they did not take that professional courtesy. She said she was most concerned with the City of San Ramon, not the City of Milpitas nor the other wonderful projects Turner had done. She said because they are a very big company, that put a doubt in her mind for this very big project in the City of San Ramon. She said she was the lone, dissenting vote when Turner was originally selected because of the level of participation regarding the connection between the public process and the City Center.

Mayor Tatarka stated her doubts as to where we are as a Council with this whole process. She stated her disappointment and concern about why Turner was not up-front, good or bad, with this happening in Milpitas. She said this had created more challenges because she was on the City Center Task Force in 1998, and wants this to move forward with the vision of the residents of this City. She stated her discomfort with the entire process and she was not comfortable with our agreement. She said if the agreement is terminated, there is always a possibility of reinstatement.

Cm. Cambra clarified his statement about "things changing" and said it had to do with general communication and getting complete information from staff.

Cm. Cambra made a motion, citing section 20 of the contract that stated the contract could be terminated for no grounds, and directed staff to give 30 days written notice to Turner Construction and terminate the contract.

Cm. Dickey stated she would second the motion to allow discussion.

Cm. Wilson asked Mayor Tatarka if she had spoken to members of Milpitas City Council and stated they had given their side of the disagreement.

Mayor Tatarka said when she spoke to the Mayor of Milpitas, he said all that he could legally tell her was confirmation of what was in the newspaper article.

Cm. Wilson said Turner would probably say, as far as they are concerned, it was not true. He said one thing balances the other until there is some sort of formal litigation and Turner’s track record should be compared to Milpitas’ track record. Cm. Wilson cited the statement from minutes of the Milpitas City Council meetings, that stated Turner was at every meeting, which proves they were very responsive to the Milpitas City Council. He said what bothers him more than anything else, we are making a decision before there is any guilt determined.

Mayor Tatarka asked if we wait until the litigation is settled then possibly this could happen to us.

Mayor Tatarka said she was concerned about the abilities of Turner Construction and she had to express it.

Cm. Cambra stated this is not about Milpitas. He said the article confirmed his own fears and experiences here. He said he was not certain if it was a huge part in this puzzle only that is was a confirmation that was given to him.

Cm. Hudson that staff had said it was great working with Turner. He asked if we are going to make a fair judgment, why doesn’t somebody go to Chevron and ask them how they felt about the 1.6 million sq. ft. project Turner did for them here in San Ramon. He referred to Mayor Tatarka’s comment about the seniority and length of service of councilmembers and questioned the motion and second made by councilmembers that have the vast experience of two months, to fire one of the best rated construction companies in the world.

Cm. Dickey said that once a motion is made, it has to have a second if someone wants to discuss it. Otherwise they could not go ahead and discuss it.

Mayor Tatarka asked that there be no personal attacks on each other.

Cm. Wilson said for clarification in the future, if a motion is made, and no one seconds the motion then obviously, the motion dies. Then we can still comment and continue the discussion.

Cm. Cambra asked for the vote to be taken.

By role call vote, the motion passed, 3-2 (Cms. Hudson and Wilson dissenting).

Cm. Hudson asked the City Attorney what is the required vote to pass a motion when someone calls the question.

The City Attorney stated he did not think there was a vote required for calling a question. He said it is up to the chair to determine whether or not the vote will be held at that time.

Cm. Hudson asked when there is a discussion on going on an item that has been first and seconded, and someone calls the question, can that end the discussion. He said it was his understanding that it takes a four-fifths vote to pass that.

The City Attorney said he would research the question for Cm. Hudson.

Cm. Hudson asked if that information could be made available at this time.

Cm. Cambra stated he would be happy to withdraw his motion to continue the discussion.

The City Attorney stated he could not accommodate the research request at that point in time.

Cm. Hudson asked if this item could be continued.

Cm. Cambra stated no.

Mayor Tatarka asked for clarification if this was a legal vote

The City Attorney stated he was not certain about the statement by Cm. Hudson regarding the four-fifths vote. He said he interpreted what the Council did was make a motion, it was seconded and discussion ensued. He said at the discretion of the chair, a vote was taken on the motion. He stated he was unaware of the four-fifths vote spoken of and said he would research the matter. He stated if discussion were re-opened, it would eliminate any potential problem.

Cm. Cambra withdrew his call for the question.

It was the consensus to continue the item until later in the agenda.

* * * *

The City Manager stated he met with Cms. Dickey and Wilson to discuss the charge composition and time line for the proposed Aquatic Needs Committee. He said after discussion, the recommendations were as follows:

• Charge – Analyze both short term and long term aquatic facility needs for the City of San Ramon and provide recommendations to the City Council to address those aquatic facility needs.

• Composition
  
  (2) City Councilmembers (Dickey & Wilson)

(2) Aquatic Representatives (one recreational, one competition)

(3) Community representatives (recruited by advertisement)

• Time Line – November 2002
  
• Staff Recommendations- Chris Chamberlain, Charlie Mullen, Planning. (Advisory basis only)

Cm. Hudson asked for verification that this committee would cover research on total long term needs and had nothing to do with the Royal Vista Pool or Dougherty Valley in five years.

The City Manager stated this would be an all-encompassing needs analysis, including opportunities, sites, proposed facilities, and potential impacts. He also said it was recommended the aquatic and community representatives be recruited by advertisement.

Cm. Hudson’s motion to establish the Aquatic Needs Ad-Hoc Committee was seconded by Cm. Cambra and passed 5-0.

* * * *

MID-YEAR REVIEW OF FY 2001-02 PROGRAM OF SERVICES

The Administrative Services Director said that both City operating revenue and operating expenditures through the first half of the fiscal year were significantly below the estimates included in the approved FY 2001-02 Budget. He said expenditure reductions were expected to offset most of the revenue shortfall with the balance of the shortfall covered from the City’s undesignated General Fund reserves. He reviewed the recommended budget adjustments by department and said the department directors were available for questions. He recommended the Council review, receive and approve the mid-year review of the 2001-02 Program of Services.

The City Manager stated it had always been the staff’s goal to provide the most conservative estimates on both sides of the ledger and since the economy seemed to be picking up, it was anticipated that most of the deficit would be recovered.

The Administrative Services Director requested approval from Council to include the $12,500 grant to the Aqua Bears in the Parks and Community Services Department budget adjustments.

Cm. Dickey’s motion to adopt Resolution No. 2002-19 Receiving the Mid-Year Review of FY 2001-02 Program of Services, approving the recommended budget adjustments, amending the Capital Improvement Program and including the $12,500 grant to the San Ramon Aqua Bears, was seconded by Cm. Cambra and passed 5-0.

Resolution No. 2002-19
Receiving the Mid-Year Review of FY 2001-02 Program of Services, approving the recommended budget adjustments and amending the Capital Improvement Program

* * * *

Mayor Tatarka reopened the discussion on the City Center Consultant Agreements – Turner Construction.

Cm Hudson said the next step in this decision process was to identify the need for a construction project management firm, and asked if there should be a request for proposal released. He asked what the next step was and how this void would be filled.

Mayor Tatarka verified with the City Manager that at the next Council meeting there would be a Civic Center overview presented. She questioned whether or not there was a need to address a new project manager selection process that night.

Cm. Cambra said he wanted to meet with staff to obtain input on the best way to proceed.

Cm. Hudson requested that the next company contracted be held to the same standards to which Turner was held. He said this means any company being considered must have all lawsuits disclosed, all previous lawsuits disclosed, disposition of the lawsuits and the comments from the city involved with the lawsuit and he wanted it specified in the RFP. He requested the same criteria used to fire Turner Construction be used in the decision making process for the hiring of a new firm.

Cm. Cambra stated that he felt Turner was not held to that standard. He stated he had no knowledge of a lawsuit against Turner. He expressed his desire to find a firm that was going to be up front and disclose past difficulties. He said full disclosure is a good thing but if you make the fence so high that no one can jump over it, you wont be able to do the project.

Cm. Hudson said he wanted to clarify that the City just fired a company that was not being sued by the City of Milpitas.

Mayor Tatarka asked for a roll call vote. The motion passed 3-2 (Cms. Hudson, Wilson dissenting).

* * * *

Mayor Tatarka said the next meeting would be held in Brentwood and asked that any questions or issues to be taken to the conference be forwarded to her via voice mail or e-mail.

* * * *

Cm. Dickey said the teens were planning an 8^th Grade Event to meet their peers prior to entering high school. She said on March 13^th and14^th, there would be a presentation called "Every 15 Minutes" designed to prevent drunk driving.

* * * *

Cm. Cambra said the public art at the Bishop Ranch Veterinary Hospital was approved. He said the "Art in Public Places" brochure was attempting to incorporate with the high school curriculum so students could visit from one public art display to another and receive credit. He also stated the mural at the library was being restored by the Cal High Art Class. He thanked the outgoing members of the Arts Advisory Committee for their many contributions.

The Transportation Services Director said the State of California Department of Transportation surplus funds had run out and projects had been requested to be moved back. He said the I-680 Auxiliary Lane Project was affected by this and would impact the City of San Ramon by delaying the project until 2005 or 2007.

He said the Transportation Authority was looking forward to the reauthorization of Measure C, the 20 year sales tax measure to expire in 2008, and it was anticipated it would go to the voters in 2004 for reauthorization of the measure.

* * * *

Cm Wilson said they had finished the "Green Building" policy proposal regarding the City Center and it would be presented to Council in the near future. They also reviewed monitoring the electronic waste collection procedure. He promoted the "It’s Cool to Recycle" poster contest that was open to all students grades K-5 in the San Ramon Valley Schools.

Cm. Wilson announced that San Ramon’s Multi Cultural Fest is Sunday, March 3^rd at the Community Center and the Winter Concert Symphonic Band concert is Friday March 8, 8:00 p.m.

TRANSPORTATION ADVISORY COMMITTEE UPDATE

Cm. Cambra said SBC/PacBell had requested that bus stop service be restored to PacBell. He said there was an update on the Residential Traffic Calming Program, the completion of the data collection along Mangos Drive for permit parking applications and the enhancement of signage and striping along Dos Rios Drive. He said they discussed traffic and parking issues relevant to the West Side Specific Plan.

* * * *

CITY COUNCIL LIAISON ASSIGNMENTS

Cm. Hudson’ motion to appoint Cm. Dickey as representative to CCCTA, and Mayor Tatarka as the alternate, was seconded by Cm. Cambra and passed 5-0.

Cm. Hudson’s motion to appoint Cm. Dickey as Council liaison to the Senior Advisory Committee and Cm. Cambra as alternate, was seconded by Cm. Cambra and passed 5-0.

Cm. Dickey’s motion to appoint Cm. Cambra as San Ramon’s Shaping our Future Stakeholder Representative and Cm. Hudson as alternate was seconded by Cm. Wilson and passed 5-0.

* * * *

There being no further business to come before the City, at 1:15 a.m. the meeting was adjourned in memory of Wilbur Duberstein and Frank Zagarella.

Signed:

Nancy Tatarka, Mayor
Judy Macfarlane, City Clerk