A regular meeting of the City Council of the City of San Ramon was called to order on, March 11, 2003 at 7:00 p.m. in the City Council Chamber, 2222 Camino Ramon, Mayor Wilson presiding.

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

ABSENT: None

STAFF PRESENT: City Manager Gail E. Waiters, City Attorney Tom Curry, Administrative Sergeant Scott Holder, Assistant City Manager/Administrative Services Director Jim Estep, Parks and Community Services Director Jeff Eorio, Development Services Director Joye Fukuda , City Engineer Stanley Fung, Interim Public Services Director Doug Udell, Planning Manager Phil Wong, Economic Development Manager John Dillon, and City Clerk Judy Macfarlane.

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The Walt Disney Breakfast Book Club led Council, staff and those present in the audience in the pledge of allegiance.

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Guy Greco, President of the Rotary Club of San Ramon, presented to Council an overview of the Rotary Club’s composition and programs. He presented a Rotary pin to the Mayor and each Councilmember.

Mayor Wilson extended thanks and appreciation to the Rotary Club for the services they had performed to enhance the quality of life in San Ramon.

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Martha Allen, Thomas Ranch homeowner, described several problems in the development and requested assistance from the City in obtaining a solution with the developer.

Mike Geib expressed his disappointment that the City Civic Center Workshop held on March 5, 2003 was conducted as a meeting and not a workshop. He questioned why the recommendations for the theater seating made by the Arts Advisory Committee had not been followed, and asked the Council to refer to the recommendations made by the Committee.

Diane Schinnerer expressed her disappointment that the City Civic Center Workshop was conducted as a meeting rather than a workshop, and expressed her concern for the radical manner in which the theater and City Civic Center concepts had changed. She stated the project should be handled by the Parks & Community Services Department instead being overseen by two Councilmembers on an oversight committee. Mrs. Schinnerer questioned statements made by the Friends of San Ramon (February 11, 2003 meeting) concerning the Royal Vista Fencing Project, provided a brief history of the project, and said the citizens in the affected area had been very supportive of the project.

Susan Woo, Thomas Ranch homeowner, described the on-going landscaping problems in the development and requested the City investigate the situation.

Bill Seale, Thomas Ranch homeowner, described the detailed inspections he experienced with home projects and expressed his hope that the same attention to detail will be exercised with regard to the landscaping problems in the development.

Greg Bortolussis, Thomas Ranch homeowner, relayed his frustration over obtaining copies of documents pertaining to the development and the difficulty of setting a date with staff for a meeting.

Harold Frieman, Thomas Ranch homeowner, stated he was not satisfied with the City services and expressed hope that there could be a partnership between the HOA and the City to move the project forward.

Eric Trager, Thomas Ranch homeowner, requested the City’s assistance in resolving the situation with the homebuilder and the developer.

Robert J. Sandcrant, Thomas Ranch homeowner, shared his observations regarding the landfill and the erosion of the hillside in the development and requested the City’s assistance with resolution from the developers.

Pat York, Chair of the Senior Advisory Committee, addressed the needs for expansion of the Senior Center and urged the City Council to start construction as soon as possible.

Vice Mayor Cambra requested the City Manager to provide an update and action plan on the Thomas Ranch issue.

Mayor Wilson stated reports regarding the Thomas Ranch issue would be forward to all members of Council.

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Cm. Dickey’s motion to approve the minutes of the February 11, 2003 meeting was seconded by Cm. Tatarka passed 5-0.

Cm. Dickey’s motion to approve the minutes of the February 25, 2003 as amended was seconded by Cm. Tatarka passed 5-0.

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CONSENT CALENDAR

Cm. Hudson requested Item 8.1 Register of Demands be removed from the consent calendar for discussion.

Cm. Dickey requested Item 8.5 Status of National Trust for Historic Preservation review of the David Glass House and Forest Home Farms including recommendation to move forward with the renovation and preservation of the property be removed from the consent calendar. She stated this was not a routine item and required discussion.

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

Resolution No. 2003-27 Accepting Certain Road and Stormdrain Improvements constructed in Subdivisions 7796, 7980 and 8027 for maintenance (Shapell Industries/The Bridges at Gale Ranch).

Resolution No. 2003-28 Accepting the Landscaped Wet Band Area surrounding Subdivision 7224 as complete and authorizing the Release of One-Year Warranty Security (Ponderosa Homes/Bent Creek Hills)

Resolution No. 2003-29 Authorizing the Mayor to execute an agreement with CCS Planning and Engineering, Inc. to provide consulting engineering services for the following traffic signal projects in the Capital Improvement Program for an amount not to exceed $48,400

Cm. Hudson explained his removal of the Register of Demands from the consent calendar was due to the fact there was not sufficient information identifying payments to Embassy Suites, along with a payment to the Town of Danville for three lap top computers.

Scott Holder, Administrative Sergeant, stated the lap top computers (mobile data terminals) had been purchased used from the Town of Danville for a significant savings which met budget requirements.

Jim Estep, Assistant City Manager/Administrative Services Director, stated the detailed description for the Embassy Suites entry was limited by system restrictions.

Cm. Dickey’s motion to approve the Register of Demands was seconded by Cm. Tatarka and passed 5-0.

Register of Demands dated February 18, 20, 27 and March 2 and 9, 2003 in the amount of $927,058.94.

Cm. Dickey said this was not a routine item and stated she was concerned because this had not followed the process she thought was in place. She noted the cost that had been agreed to with the National Trust in the amount of $10,000 had increased to $20,000 - $25,000, and asked for an explanation.

Jeff Eorio, Parks and Community Services Director, stated Interim City Manager Jim Randall had conducted all discussions and negotiations with National Trust, and the amount had been arranged through his direct communication. Mr. Eorio answered Cm. Dickey’s question stating neither he or staff had been involved with any negotiations with National Trust.

Cm. Dickey referred to the letter from National Trust dated February 10, 2003, and asked Mr. Eorio to identify the "two parties" mentioned.

Mr. Eorio replied the "two parties" mentioned were the two responses directly submitted to Mr. Randall about goals and aspirations for the David Glass property. He stated neither party had had a chance to see the RFP.

Cm. Dickey referred to "scope of work" and questioned the validity of several items;

• California Heritage Fund Grant Application, August 2002
• City Council Staff Report on Grant Application
• December 2001 Minutes of Forest Home Farms Advisory Committee
• March 2002 Minutes of Forest Home Farms Advisory Committee
• November 2002 reports from the disputing parties.

Cm. Dickey stated she would have liked to have reviewed those reports. She listed more concerns regarding the RFP specifically stating the visit to the Forest Home Farms site with Jim Randall, former City Manager, was inappropriate. She saw there was no time frame for date of completion and she did not feel that the review of the National Register nomination was necessary as it had already been accomplished.

Cm. Dickey commented that she felt that the Council had become very specific in what was needed at this point, and questioned if the added cost was due to determining the primary objective of the Glass House which would require the Trust to be more involved.

Mayor Wilson opened public comment.

Rosalind Rogoff said the two vacancies on the Forest Home Farms Advisory Committee should be filled, and then let the committee get back to work on how to furnish the Glass House. The City should not be spending $10,000 or $25,000 hiring a consultant to do the work the Committee can do and should be able to do on their own.

Mayor Wilson closed public comment.

Cm. Tatarka asked Mr. Eorio if he had had the opportunity to speak directly with Anne Gailliot of the National Trust. She referenced the staffing issues at the National Trust and requested clarification.

Mr. Eorio said he was able to verify with Ms. Gailliot the status of the process and they were waiting for final direction from the City regarding the final scope of work. He said the National Trust was a non-profit corporation with a small staff of three. He affirmed their capability to execute the RFP, select the consultant and direct the work with the approval of the City.

Cm. Tatarka clarified the purpose of the National Trust was to assist the City in obtaining

a consultant to provide the work for a fee.

Mr. Eorio stated National Trust was a nationally respected organization in historical preservation. He verified there would be a retainer paid to the Trust to select the consultant and oversee the work. He stated the purpose of this procedure would help to avoid accusations that staff or groups of citizens were involved with the selection process or had input into the process, and that it would be independent and non-biased.

Cm. Tatarka asked how the scope of work was established.

Mr. Eorio said the scope of work was determined between the Trust and Jim Randall, prior to his departure. He said the two parties had also met with Mr. Randall independently, and both had agreed to the proposed scope of work. Mr. Eorio expressed his confidence from a staff level that this is the correct way to proceed.

Cm. Tatarka said she wished that the documents listed in scope of work had been included in the staff report.

Mr. Eorio explained the intent of the reports would be confidential to the Trust allowing them to make an unbiased opinion that would best benefit the community. He said copies of City reports would be made available to the Council. He also stated Mr. Randall did provide a tour to Anne Guilliot of the Trust to familiarize her with the property.

Cm. Tatarka stated this information was not in the staff report and made the item cumbersome to be handled as a routine matter on the consent calendar.

Cm. Hudson said Ms. Rogoff’s comment on the advisory committee should not be lost in the discussion. He said appointment of the two applicants to the current vacancies should be made as soon as possible regardless of whether the Trust proceeds or not.

Cm. Dickey stated advisory committee appointments were not the Council’s charge that night. She proposed in order to move this item forward, Council should decide whether the Glass House was a documentary house or a representative house; that would be the step to solidify the project to proceed. She stated she would like to do a RFP based upon the advisory committee’s recommendation that this is a documentary house. She stated the actual motion read " a plan be formally adopted and implemented calling for the interiors of Building 22, the Glass House, to be developed, decorated and maintained as a historical museum with a living history component recreating with historical accuracy the David Glass Family’s occupancy of the home in the 1890’s with the exception of two of the upstairs bedrooms, one of which may be designated as a docent room or office, and one maintained as an interpretive exhibit area." She said by adopting this motion, the Trust would have clear direction to proceed with the project. Cm. Dickey said there had been discussion on how best to portray the Glass House in the community, and mentioned the Patterson House at Ardenwood Farms which is historically reflective. She stated while the Glass Family was not prominent or historically significant, it did provide history and heritage that should be preserved. She questioned if the designation affected the national designation as a historic site.

Mayor Wilson confirmed that neither designation affected the historical site designation.

Cm. Dickey expressed her desire to have staff re-write the RFP that had been recommended by the Trust AND sent to the consultants, to prepare an interior furnishing design plan, and a specified time plan for date of completion. She hoped this RFP would be ready for approval at the next Council meeting. Cm. Dickey referred to a Glass House furnishings report prepared April 2002 which contained detailed information that would assist in preparing a formal plan. Cm. Dickey attempted to make a motion...

Cm. Hudson stated while there had been two requests to redo the RFP and proceed in different directions, this item was simply to look at an informational report. He said it would be appropriate to have an open meeting for all interested parties to participate. He said this was an informational item, not an item to be voted on.

Cm. Dickey reiterated this was not a routine item, that it should be discussed by Council, and it was more than an informational report. She expressed her concern that this procedure would ultimately be more costly for the City. She agreed to the basis that this was a documentary site. She said this had been voted on and passed by the advisory committee, however it never got to the Parks and Community Services Commission or to Council. She said the Rotary had pledged financial support and stressed the importance of establishing a working plan so as to not lose the funding.

Mayor Wilson requested Mr. Eorio to provide an explanation of the terms "documentary" and "representative" site.

Mr. Eorio stated a representative site represents what took place around that property or area for a period of time. He stated a representative site would have elements of the David Glass family. Mr. Eorio explained that a documentary site is dedicated to whatever family or person that had lived in that house. He said efforts would be concentrated to build everything within that house around that family or person. He said the disagreement of the Committee was between "representative" or "documentary". He explained the primary focus of the National Trust’s work would be to help the City decide, from a non-biased professional viewpoint, what would be the better situation for the community – documentary or representative.

Mayor Wilson asked what were, if any, significant factors between documentary and representative sites.

Cm. Dickey expanded on Mr. Eorio’s comments stating the documented family would not exclude anything that happened; it would be inclusive of what had occurred during that time period. She said a representative house would not emphasize the David Glass family. She explained that a documentary house would not exclude other families, it just emphasized who lived there and compared it to the Dunsmuir House and the Patterson House. Cm. Dickey said if a family could not be assigned to the house, she could understand making it a representative home, however, we should focus on who lived in the house.

Mayor Wilson inquired what furniture would be placed in the house.

Cm. Dickey said the Glass Family was a middle class family and the furniture was East Lake furniture, which was easily available and affordable.

Cm. Hudson said he had three points, the first was the Forest Home Farms Advisory Committee gave recommendations, however there were still two vacancies on the Committee who could provide input. Secondly, this item had not followed procedure by going to the Parks and Community Services Commission and third, what was being discussed was completely different from the informational report. He said a vote had been taken to utilize the National Trust, and if changes were to be made, a staff report needed to be generated to follow proper procedure.

Cm. Dickey clarified that she was not trying to eliminate the National Trust, but wanted to give the Trust a definitive direction. She believed the cost escalation was caused by lack of definitive direction, and stated that was what she wanted to accomplish. She stated this had been voted on when the Forest Home Farms Advisory Committee had been whole. She confirmed this item had not gone to Parks and Community Services Commission, and questioned what the next steps would be.

Cm. Tatarka questioned the alternative course of actions outlined in the staff report, and questioned the National Trusts’ ability to perform the services contracted for.

Mr. Eorio expressed his belief that the Trust was prepared to provide the contracted services which was to select an unbiased consultant to perform the work. He explained Jim Randall had been the only staff member involved in the discussions.

Cm. Tatarka stated she was trying to clarify the process that had taken place between the time the contract had been negotiated and what was occurring that night.

Mr. Eorio stated it was his understanding that the Trust had anticipated the cost based on a worse-case scenario. He said a more definitive cost could not be obtained until a proposal had been submitted from a consultant. He said the estimated cost would range between $10,000 -$25,000 which was a very wide range.

Cm Tatarka said the Council needed to make the decision because the mid-year budget actually stated this project had been placed on hold pending direction by the City Manager and Council. She questioned if this contract pertained only to the Glass House only, or did it include the Boone House as well.

Mr. Eorio said all capital projects had been put on hold at Forest Home Farms, although programming, educational tours and docent training had been proceeding. He said while there was consensus on how to proceed with the Boone House, it was listed in the scope of work to be reviewed. He said while there was consensus with the Boone House, it could be eliminated from the scope of work for a cost savings.

Mayor Wilson expressed his desire to eliminate the Boone House from the scope of work and concentrate exclusively on the Glass House.

Cm. Tatarka referred to the scope of work outlined in the letter from the Trust, and stated her objective was to understand where the emphasis was going to be. She said that could assist in determining the cost.

Mayor Wilson stated both Council and staff were at a disadvantage since neither party were privy to the document.

Cm. Dickey suggested a workshop to assemble a variety of experts to help guide this project in the right direction. She stressed that she did not want to lose the history or the authenticity that we were fortunate to have, and expressed the need for the project to move forward so that we could take advantage of the funding that was available.

Mr. Eorio stated the purpose of having the Trust was to establish an unbiased, rational perspective.

Cm. Dickey made a motion to conduct a workshop to assemble experts to provide education and information to assist in moving this project forward, and to prepare a better RFP.

Mayor Wilson stated a plan of action needed to be established, and if it were decided to conduct this workshop, the Parks and Community Services Commission would be in attendance.

Cm. Dickey stated she felt this should be a Council workshop.

Mayor Wilson questioned why not include the Parks and Community Services Commission; he said this would follow the normal procedure of advisory committee, Parks and Community Services Commission, then to Council. He said including the Commission would eliminate one step, but yet still follow procedure.

Ms. Waiters stated this was a matter for Council to decide. She suggested that Mayor Wilson either amend Cm. Dickey’s motion, or make an additional motion to include the Parks and Community Services Commission in the workshop.

Mayor Wilson made a substitute motion that the Parks and Community Services Commission be included in the workshop.

Cm. Tatarka requested verification that the National Trust would be in attendance and inquired if this would be a "public" workshop as well.

The substitute motion died for lack of second.

Cm. Tatarka inquired as to the status of the funding pledge from the San Ramon Valley Rotary Club.

Mr. Eorio said the details were currently being addressed. He said their fund raising goal had been set at $500,000 over a period of several years to commemorate the millennium of Rotary. He said there would be City approval for any and all fund raising projects conducted by the Rotary that benefited the Glass House.

Cm. Tatarka asked if the decision to move forward would have any impact on the Rotary’s commitment. She also inquired as to the time frame.

Mr. Eorio stated the furnishing study was comprehensive, however the consultant would review and confirm the information, based on whether the site was deemed representative or documentary. He said it would take several months to retain a consultant and review the information before the process would begin.

Vice Mayor Cambra inquired as to the necessity of having a separate workshop; he suggested incorporating it into a regular Council meeting.

Cm. Dickey stated if there is testimony from several experts along with the National Trust, it would be rather lengthy.

Vice Mayor Cambra requested a recommendation from the City Manager.

Ms. Waiters stated she did not have a recommendation; this could be accomplished either way.

Cm. Hudson said the decision to use the National Trust was made at a regular Council meeting and any change should be made following suit.

Cm. Dickey stated she disagreed with Cm. Hudson.

Cm. Dickey made a motion to schedule a workshop with the Council, to invite experts (i.e. the National Trust, Randy Hees from the Patterson House in Ardenwood, the curators from the Dunsmuir House or the John Muir House), to address Council on issues regarding the Glass House.

Cm. Tatarka said due to impacted schedules, she would prefer this item be addressed at a regular Council meeting. She also asked that the San Ramon Historic Foundation provide an update on how the Community Grant Fund money given to them last year had been utilized.

Cm. Dickey’s motion died for lack of second.

C. Tatarka’s motion to address the issue at a Council meeting as soon as possible to avoid any further delays was seconded by Cm. Hudson.

Cm. Cambra asked if the proposal from the National Trust was approved by the Parks and Community Services Commission.

Mr. Eorio replied that this item did not go through the Parks and Community Services Commission or staff, only the City Manager, the Trust and himself. He verified it went straight to Council.

Vice Mayor Cambra requested a staff report be prepared that specifically delineated where the areas of conflict exist. He referenced the portion of the letter requesting both parties review the proposal, and said he had problems with it being on the consent calendar. He questioned the logic of sending this back to an advisory committee when resolution could not be obtained.

Ms. Waiters stated information from the disputing parties had been submitted confidentially via the City Manager (Mr. Randall) to the National Trust. She suggested that the two parties specifically address the Council. Ms. Waiters said staff could compile data and information that was on file, however, it would be inappropriate for staff to interpret, summarize or draw conclusions for information that we do not have.

Cm. Hudson requested that all interested parties be informed of this action. He re-addressed the need to fill the two vacancies on the advisory committee. He stated he was prepared to vote.

Vice Mayor Cambra said he was looking for information precisely the way Ms. Waiters described; nothing more than that.

Cm. Tatarka said she was looking for information on the Glass Family and not any information that was confidential.

Mayor Wilson stated he was familiar with both parties and that he felt both would feel comfortable to express their view on whether the Glass House should be documentary or representative. He stated there was no right or wrong and wanted both of their opinions heard.

The motion passed 3-2 (Cm. Dickey and Vice Mayor Cambra dissenting).

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Mayor Wilson declared a 5 minutes recess.

All Councilmembers were in present when the meeting reconvened.

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Jim Estep, Assistant City Manager/Administrative Services Director, presented the Mid-Year Review of Fiscal Year 2003-2003 Program of Services.

Stanley Fung, City Engineer, presented a review of the Capital Improvement Program and stated there was no need for budget adjustment.

Mayor Wilson opened the public comment.

Dianne Schinnerer encouraged the hiring of a finance director as soon as possible. She expressed her concerns regarding the overhead utility wires in the mature section of San Ramon stating a 20-year program had been prepared and funding issues were being discussed, implementation was on hold. She reminded Council this area of San Ramon had been taxpayers the longest and deserved to have this project resolved.

Mayor Wilson closed public comment.

Cm Hudson questioned the expenditures to date for the City Attorney and City Council, and inquired in which category the TOT was included. He also inquired when revenue was going to start being collected from Dougherty Valley.

Mr. Estep replied the amounts for the City Attorney and City Council were correct and the TOT had been included with numerous other revenues. In response to the Dougherty Valley, he said staff was currently working on a reimbursement agreement with the County.

Cm. Hudson asked if the projection for contract police services included the 3% increase in retirement funding.

Scott Holder, Administrative Sergeant, said that figure was inclusive through January, however, he anticipated more increases from the County, but had not received a billing to date.

Cm. Hudson inquired about an increase in storm water drainage.

Joye Fukuda, Development Services Director, stated the increase in level of services associated with the permit would be reflected in the FY 2003-04 budget.

Cm. Hudson stated he did not support changing the status of the Senior Center Expansion project to "unprogrammed".

Cm. Tatarka questioned why the Chamber of Commerce had not linked its web site to the City site as detailed in the program of services. She inquired when the meeting had been set with the County to discuss the General Plan 2020 MOU on the processing of the development applications by the City within the City's sphere of influence. Cm. Tatarka referred to the final property tax settlement due in June (Bishop Ranch Property Tax Agreement) and asked what the amount was going to be.

Ms. Fukuda replied she would forward the information requested to Council.

Mr. Estep responded to the property tax settlement amount stating it should approximately be the same as last year.

Mayor Wilson stated the figure should be $1.1 to $1.2 million.

Vice Mayor Cambra questioned the reduction in projected expenditures for Economic Development, and asked for specific items to be identified. He called attention to the highest percentage of budget used had been the City Council and requested all Councilmembers to be aware of cost cutting measures. He supported the recommendation to hire a full time City Attorney. He encouraged staff to review Internet services and cell phone services to take advantage of competitive pricing. Vice Mayor Cambra referred to the CIP and questioned the projected deferral or unprogramming of Crow Canyon Gardens. He asked staff to provide the balance of the Park Development Fund and what projects had been slated against that fund. He stated he wanted the rationale as to how projects had been reclassified between programmed and unprogrammed. He suggested reprogramming versus unprogramming projects.

Cm. Tatarka said the Finance Committee had discussed that issue and staff was preparing a report as to how the projects had been prioritized. She asked how long Crow Canyon Gardens had been on the CIP. Cm. Tatarka inquired as to when a new finance director could be in place, and stressed the importance of recruiting a qualified applicant as soon as possible.

Mr. Estep replied that a typical recruitment take approximately three months.

Cm. Dickey inquired if the recruitment cost for the new finance director was included in the quoted figure of $150,000.

Mr. Estep stated that it did not include recruitment costs; it was only salary and benefits. He estimated the recruitment cost would be approximately $15,000.

Mayor Wilson referred to the December flood and asked for details on how that event had impacted the budget.

Mr. Estep replied that the majority of the clean-up services had been accomplished in-house and the related costs resulted from over-time wages. He anticipated the overall costs for claims filed against the City would be absorbed into the budget.

Mayor Wilson inquired about the property taxes in the Dougherty Valley. He asked if there was a formula that determined what comes back to the City.

Mr. Estep stated there was a lag time due to the annexation and LAFCO process and the property tax billing cycle. He said staff was currently working on the reimbursement agreement with the County, then the money will be flowing.

Mayor Wilson commented on the interest revenue from the General Fund that was anticipated to decrease due to the current economic situation. He inquired if increases in street maintenance and repairs were anticipated over and above the current budgeted amount.

Ms. Fukuda stated a great increase was not anticipated. She continued by saying the two sources for the street improvement fund were Measure C Return to Source funds and funding from gas tax.

Mayor Wilson verified with Mr. Estep that Park Dedication Fees would be collected. He said the programming and unprogramming of projects needed to be clarified. He referenced Crow Canyon Gardens and said he personally had voted for this project over seven years ago when he was on the Parks and Community Services Commission. He stressed the importance of having a finance director on staff.

Cm. Tatarka asked how the budget process was going to proceed during the time from Mr. Estep’s departure and the hiring of a finance director.

Ms. Waiters stated there was currently a recruitment in process for an interim finance director through the League of California Cities and anticipated having placement by the end of the month. She said the budget process would proceed as normal.

Cm. Dickey made a motion to adopt Resolution No. 2003-31 Receiving the Mid-Year Report of FY 2002-03 Program of Services, approving the recommended budget adjustments and amending the Capital Improvement Program.

Vice Mayor Cambra questioned the terms programmed/unprogrammed. He stated he was not comfortable with the word "amended" in the resolution.

Mayor Wilson said staff had assured Council this programming matter would be addressed and stated he felt comfortable

Mr. Estep said the term "unprogrammed" meant that action would not be taken during this fiscal year.

Cm. Tatarka seconded the motion. The motion passed 4-1 (Cm. Hudson dissenting).

Resolution No. 2003-31 Receiving the Mid-Year Report of FY 2002-03 Program of Services, approving the recommended budget adjustments and amending the Capital Improvement Program

Cm. Hudson explained his vote was based on the $1.1 million adjustment.

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Doug Udell, Interim Public Services Director, reviewed a portion of the Council Workshop held on March 5, 2003.

Steve Fust, Swinerton Management Consulting, reviewed several community theaters and performing arts centers and described the varying facets between each of the venues.

Cm. Tatarka asked Mr. Fust if the Walnut Creek community really wanted the Lesher Center to be more of a community theater. She also questioned the amount of subsidy from the City for each of the theaters listed.

Mr. Fust stated in Walnut Creek, the average subsidy budget is $1.5 million annually for local performing arts groups. He said that amount funds all of the cultural arts programs, with the Dean Lesher Centers receiving $350,000.

Mayor Wilson opened public comment

Jim Blickenstaff requested Council to proceed with caution with this project due to the financial and ancillary impacts it would have on the City and its residents. He expressed his concern regarding the cost difference between a 600 and a 1,200 seat. He stated while a large, regional art center was a wonderful idea, the voters opinion should be sought to see if this would be a realistic project to undertake.

Carol Rowley said this project had been discussed since 1998 with many opportunities for community input to establish if the need exists for a City Center/Performing Arts Center.

She said while we needed to look to the future in determining the size of a theater, consideration for the cost of the project along with the supporting business and services needed to be carefully addressed.

Dianne Schinnerer stated having a regional theater was an exciting vision for the City. She said there is a large spread between the cost estimations provided by Auderbach Pollock Friendlander and AMS Planning and Research and more realistic figures needed to be compiled. She drew attention to capital replacement costs associated with theaters and asked what revenue streams would pay for the anticipated $2 million annual shortfall.

Vice Mayor Cambra said he shared many of the same concerns as Mrs. Schinnerer. He stated that AMS and Auderbach are both independent consultants, not part of Swinerton. He said all of the figures are subjective; the AMS figures where not representative of the type of theater proposed for the City, while Auderbach’s figures were more closely related to the 1,200-seat theater vision. He stated that a theater that is well run would not require as much of a subsidy, and the $2 million shortfall was just an estimate based upon a comparable theater.

Jim Hanafee calculated the capital costs for a project of this magnitude and said there were better ways for the City to spend that amount of money. He said for that amount of money the power lines in south San Ramon could be undergrounded. He said there should not be any subsidy by the citizens of San Ramon for a regional theater. Mr. Hanafee questioned attendance numbers and said the Council should be careful with survey results.

Cheryl Williamson, President of the Tassajara Symphony Orchestra, said she hoped the Council would create a triple A theater; affordable, accessible and appropriately sized. She said she hoped the Council envisioned a theater by, for, and of San Ramon, that could be supported by outside groups coming in. She said most of the arts organizations are subsidized and questioned the size of a 1,200-seat theater. She said programming versus space should drive the affordability issue. She encouraged the Council to discuss with the local arts organizations affordability and requirements needed to best represent the community.

Cm. Dickey asked Ms. Williamson what size theater would accommodate the Tassajara Symphony.

Ms. Williamson stated with their new music director, they hoped to fill a 600-seat theater. Currently their audience base was 400, with hope to grow to 800-seats. She said 500 – 800-seats would serve them perfectly and stressed the importance for proper acoustics.

Mayor Wilson said we should talk to all of the organizations that could possibly utilize the theater, but also to address the financial impacts related to an 800 versus 1,200-seat theater. He said the needs for all would be addressed to best accommodate everyone.

Dawn Wade, Tassajara Symphony, described her vast experience with various sized venues throughout the country. She said the proposed 1,200-seat theater would not draw the higher quality touring companies. She said this sized venue would be too large for local groups and expressed caution over having empty seats at performances. She urged Council to consider the limitations surrounding the 300-seat component.

Mark Ballock described the efforts made by the Arts Advisory Committee and the Parks and Community Services Commission to plan a vision for the performing arts theater, visual arts gallery, multi-purpose class rooms and community rooms. He stated the original vision of an 800-seat theater had been dismantled and said Fisher Friedman had not met with the Art Advisory Committee. He spoke of the positive aspects surrounding an 800-seat theater and the cost implications and restrictions with a 1,200-seat theater. He said the proposed 300-seat theater would be too small for local productions and too large for Council meetings. He described the versatility of having a black box theater. He spoke in favor of an 800-seat theater. He said Fisher Friedman needed to listen and carry out the original vision by the Arts Advisory Committee.

Vice Mayor Cambra said there were two visions of the Arts Advisory Committee; 1999 which states 300-500 seats and then in 2000, 440-600 seats. He verified that these were the original visions of the Arts Advisory Committee.

Mr. Ballock said additionally in May 2001, the vision stated 800-seats with a 200-seat black box theater.

Vice Mayor Cambra asked if this was the final vision and observed that with each vision, the number of seats had grown.

Cm. Hudson said he had voted for the 800-seat theater.

Mayor Wilson closed public comment.

Mayor Wilson clarified the March 5 workshop had been a Council workshop only.

Cm. Hudson said regardless of what had been reported in the newspaper, the recommendation for the performing arts theater was going to be made by Council, not staff.

Dan Howard, Fisher Friedman Associates, reviewed history of the Walnut Creek regional theater, and spoke of the differences between community and regional theaters. He described the processes and historical analysis used to arrive at the proposed performing arts theater. He said they were looking for Council to re-affirm or change the size of the performing arts theater.

Adam Shallock, Auerbach Pollck Friedlander, agreed that an operations and management study plan specific to this venue should be undertaken.

Cm. Dickey asked Mr. Shallock if there was a way to design a theater that could acoustically accommodate varying sized theaters.

Steve Pollack said the design of the seating arrangement could minimize the visual effect of empty seats, and gave examples of having side galleries, balconies, and a mezzanine. He stated usage of draperies would assist with having variable acoustics to accommodate a number of users.

Cm. Dickey verified that the acoustics would not be compromised. She stated that if it were decided to construct a 1,200-seat theater, accommodating the smaller audience would be accomplished by using drapery and by restricting seating in certain areas of the theater.

Mayor Wilson asked if Mr. Pollock could provide an example of a theater where the integrity of the acoustics had not been compromised yet had variable seating.

Mr. Pollack replied that Denver University’s theater met those criteria and would be opening in a few weeks. He described the benefit of cubic volume and the relationship to the size of the theater and acoustic quality.

Mayor Wilson questioned the acoustic problem that occurred at Davies Hall and asked how that situation was resolved. He asked how a project could be built with a major deficiency like that.

Mr. Pollock stated the staff who worked on that project were no longer with the firm. He said because it was a surround hall and there was insufficient acoustical boundaries which created the poor acoustics. He stated that project had been built many years ago as a legacy hall, and there were certain requests that had to be met.

Cm. Cambra asked where the closest regional theater was to San Ramon.

Mr. Pollock stated San Mateo High School/Center for Performing Arts functions as a regional theater, the California Fox Theater in San Jose, Fox Theater in Redwood City. He described the different sized theaters throughout the area and stated there was a gap in the sizing of the area theaters.

Cm. Cambra asked if there was a need to fill the gap of that sized theater.

Mr. Pollock said the real question was if there was a market for that sized theater.

He said people would come to a regional center in San Ramon from Concord, Livermore, and probably from Lafayette and Moraga, if there is entertainment that is marketable. He said traveling to San Ramon would be an easy drive compared to going through the Caldecott Tunnel.

Cm. Dickey said it had been mentioned during a meeting with Bob Bailey that Lesher was exploring a venue for a larger theater because of the success of the 800-seat theater. She said if in fact it was decided to build an 800-seat theater and in 10 years time it had been outgrown, what would the options be to expand. She stated the costs would probably be prohibitive.

Mr. Pollock said to remodel or expand at a later date would require the facility to shut down for approximately a year.

Mayor Wilson said any time a theater is remodeled, the acoustics are destroyed. He said you can not add on to a theater.

Cm. Dickey agreed stating once the theater is built, we are stuck with what we build.

Cm. Tatarka asked for an explanation for the change of terminology and concept from "black-box " to little theater, and who would patronize that sized facility. She also asked how you can accomplish having a regional and a community theater with a 1200-seat theater and a 300-seat theater.

Mr. Pollock stated the black box is a room without orientation or fixed configuration. He said it would be a multi-purpose room. He said that created a non-configured room in a temporary configuration for the duration of its life. He said the plan was to make the small room a fixed configuration that was a theater.

Cm. Tatarka asked if there was a specific number of seats mandated by the term little theater.

Mr. Pollock said there is no limit or target number of seats.

Cm. Tatarka referred to the footnote pertaining to the conversation held with Bob Bailey regarding the funding issue.

Mr. Pollock said the conversation was based on the vast majority of theaters start with private donations or private funding raising that assists in the start-up of projects like this. He said the majority of the theaters built in the past number of years had public financing mechanism such as an obligation bond, certificate of participation, special tax. He said when the size of the theater was agreed upon, and the size of the secondary room, they could proceed with the scheme, design, costs and various financing options. He said it was their target to present this information to the Council in June 2003.

Cm. Cambra verified that it had been determined what groups would utilize the 300-seat theater. With reference to the 1,200-seat venue with the average operating costs of $615,000, he asked if there was a breakdown of how much pertained to the 1,200 seat and the 300-seat.

Mr. Pollock replied that he had no information pertaining to the cost breakdown at this point in time. He estimated a larger portion of the subsidy would go towards the little theater.

Mayor Wilson clarified that the greater amount of the subsidy would be for the smaller venue.

Dan Howard said he hoped that Council would vote on this issue tonight as it would facilitate the project progressing.

Cm. Dickey referred to the matrix and pointed out the difference between the average subsidy for an 800-seat ($550,000) and 1,200-seat theater ($615,000) was a $65,000 differential. She compared the capital cost between an 800-seat theater and the 1,200-seat theater with a cost differential of $15 million. She said expansion costs would far exceed the $15 million difference in the original construction costs between the two sized theaters. She expressed her hope that when this project is designed, the designer firm will be very cognizant of community input. She said we do have to build for the future, as mentioned by the Tassajara Symphony. Cm. Dickey said she felt the best course for the City Council to take was to build a 1,200-seat theater.

Mayor Wilson expressed his hope that initial discussion would ensue.

Cm. Hudson said within the last month there had been clear direction that there would be a bond issue for this project, however, that night he had heard conflicting information. He said when the decision was made, he hoped that there would be disclosure of the intention of Swinerton or Ellerbe-Beckett of the new concept of start-up funds. He said this project had been worked on for over six-years and questioned the effectiveness of fund raising efforts.

Vice Mayor Cambra said attendance at the Symphonic Orchestra’s performance at the Community Center last week was at capacity. He said regardless of what size theater was decided upon, ultimately it was going to be too small. He said theater and art are a benefit to the community and our children and said the City should subsidize these programs as they do the parks. He said he would not vote for a bond measure until all other funding options are exhausted. He said before funding can be addressed, a definitive plan for a theater needed to be presented. Vice Mayor Cambra referred to the Woodminister Amphitheater that draws up to 25% from this area, with those traveling as far as from Tracy. He said if the project were done right, you could certainly count on drawing the attention from a larger area. He said the concern of "moving the professionals in and moving the local people out" had been dispelled after he had spoken with a producer. He discovered in a regional venue the local players benefit from being exposed to professional players. He suggested a partnership with an educational institution to share the cost of a theater. Vice Mayor Cambra said when attending a Tri-Valley Council meeting there had been a significant interest in the arts in this area, from every city. He said Mayor Wilson and he would be meeting with other Councilmembers in the Tri-Valley area to discuss a larger venue.

Cm. Tatarka shared drawings from the Tri-Valley Council meeting for two different sized theaters. She said it was her concern to provide for the community. She read the vision statement from the City Center Task Force. She expressed her concern on costs versus the benefits of a performing arts theater. Cm. Tatarka stated the City subsidizes the library at a cost of $250,000 per year. She said the performing arts theater is no different from the library and expressed hope that partnerships from the business and education community could be established. She said the current matrix identified the numerous impacts this would have for our community. She said we needed a venue to have a gathering place with vitality. She said this was not an easy decision to make during the current economic situation, but the City need to be visionary. She said she could not imagine the City not doing this "first class".

Cm. Hudson’s motion to extend the meeting past 10:30 P. M., passed unanimously.

Cm. Hudson said it was imperative to decide on the seating size. He said he thought there had been consensus at the last meeting.

Mayor Wilson said arts make us civilized. He said the City subsidizes many programs and projects and mentioned the gymnasiums at the middle schools. He said San Ramon considers its residents first, and this venue would serve the vocal, instrumental, visual and dance. He said it was his concern that all residents could participate in this venue. He expressed his concern for the financial ramification for this project. He said Council was relying on the designer’s expertise to present a comprehensive program on how this "jewel" would be paid for. He stressed how important the theater was to him, but he had to know how much it was going to cost. He said we had to give the residents a ballpark figure of how much this would cost, which would be forthcoming after the size had been determined.

Cm. Hudson’s motion to adopt Resolution No. 2003-32 Establishing the City Civic Center Performing Arts Theater seating capacity at 1,200 with a 300-seat theater component was seconded by Cm. Dickey.

By roll call vote the motion passed 4-1 (Cm. Hudson dissenting).

Resolution No. 2003-32 Establishing the City Civic Center Performing Arts Theater seating capacity at 1,200 with a 300-seat theater component

Cm. Dickey reported to Council that she had been in meetings with the County Connection regarding STA and TDA funding cuts. She said while there were going to be service cuts, they were working on making the cuts universally. She said San Ramon was looking at one route cut and it would be limited to a few hours a day so far.

Vice Mayor Cambra said participation was continuing with the League of California Cities exploring options with the State budget crisis to minimize impacts on cities. He said there were rapid changes be made with the budget and would keep everyone informed. In addition, there is a draft map from Shaping our Future, and copies would be distributed to Council with the original basic format agreed upon. He said the next meeting would be in May. He mentioned Cm. Hudson’s comments made at a recent Shaping Our Future meeting that he (Cm. Hudson) felt it was appropriate for development in the Tassajara Valley and put that in with the Shaping the Future folks and it was out on the table. He said many people from city officials to residents are weighing in on this and encouraged everyone’s participation in the process Vice Mayor Cambra thanked Kim Chase for her hard work at the Community Center. He requested the City Civic Center project manager to submit copies of the proposed plans to Sunset Development for their review and recommendations. He said while Sunset had review and approval over the project, it was important that any concerns could be addressed in the preliminary stages. He emphasized the term "local anchor" needed consideration as well.

Ms. Waiters clarified that the plans to be submitted to Sunset Development would be a status update.

Vice Mayor Cambra encouraged all Councilmembers and staff to wear their United States flag lapel pin as support to the men and women who are fighting for our country. While not being an advocate of war, Vice Mayor Cambra said he was an advocate for the United States, and said this was a time to support our leaders and the men and women who were fighting for our Country, for which his son was one of them.

Cm. Hudson clarified his comments made at Shaping our Future stating when this vision is presented to the City, he reminded the Council of the East Side Specific Plan as part of the General Plan which defines the citizens of San Ramon will be doing the planning in Tassajara. He said that decision was made at the ballot box. He said that is what is needed to be remembered when Shaping our Future comes before the Council. He said he had made a presentation that made it imperative that people realized that this is a road going out to Tassajara which will have a lot of traffic, and if you are going to follow smart growth principles, you need to follow the principles. He said he is advocating that San Ramon will decide on what goes there if and when that happens.

Cm. Tatarka announced a CCTA Regional Workshop on May 8 in San Ramon to discuss Measure C funding. She said transportation was a critical issue in San Ramon along with housing and encouraged residents to participate. She said there was a Tri-Valley Affordable Housing meeting with a presentation from the Silicon Valley Manufacturing Group.

Cm. Dickey added the Silicon Valley Manufacturing Group was forming a group to view affordable housing projects. She stressed the Group’s desire to include Councilmembers to visit these projects to observe firsthand quality affordable housing projects.

Mayor Wilson stated the main discussion related to ABAG and MTC and the demographics. He said there was going to be a joint Alameda/Contra Costa meeting in Richmond on April 3^rd, and encouraged all to participate.

There being no further business to come before the City, the meeting was adjourned in memory of James C. Randall, Jr., at 11:30 P.M.

Signed:

H. Abram Wilson, Mayor
Judy Macfarlane, City Clerk