MINUTES OF THE
CITY OF SAN RAMON – COUNCIL MEETING

A special meeting of the City Council of the City of San Ramon was held December 20, 2004 at 7:00 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Mayor Wilson presiding.

PRESENT: Councilmembers Livingstone, Perkins, and Rowley, Vice Mayor Hudson, and Mayor Wilson.

STAFF PRESENT: City Manager Herb Moniz, City Attorney Byron Athan, Police Chief Kathy Samuels, Finance Director Greg Rogers, Deputy City Clerk Pat Edwards.

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Mayor Wilson announced the Council met in closed session pursuant to Government Code §54957 to evaluate the position of City Attorney. No action was taken and the item was continued. The Council also met in closed session pursuant to Government Code §54956.9 to meet with the City Attorney concerning facts and circumstances that might result in litigation but which the City feels are not known to potential plaintiff or plaintiffs. No action was taken.

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Mayor Wilson asked the Deputy City Clerk to lead the Council, staff, and those in the audience in the pledge of allegiance.

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Mayor Wilson asked if there were any changes or additions to the agenda. The Deputy Clerk noted that there were none.

Vice Mayor Hudson asked if the December 28, 2004 City Council meeting had been cancelled. The City Manager stated that the Council cancelled that meeting at their December 14, 2004 meeting. Mayor Wilson asked if there were any changes or additions to the meeting announcements. The Deputy Clerk noted that there were none.

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The Deputy Clerk noted that there are none.

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The Deputy Clerk noted that there are none.

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The Deputy City Clerk reported that four people have requested to address Item 10.1.

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The Mayor instructed the Council that the selection of Vice Mayor would be taken by secret ballot and that the first person to receive three votes will be appointed the Vice Mayor.

Vice Mayor Hudson noted, as a point of procedure, that councilmembers should put their names on their ballots. The Mayor indicated that it was not necessary. Cm. Rowley commented that everyone’s handwriting was known. The Mayor added that this was a change from the usual procedure of nominating the Vice Mayor from the dais. He noted that the Policy Committee will evaluate the procedure and stated that the procedure had changed to a secret ballot last year.

After the vote, the Mayor announced that Councilmember Livingstone is the City’s new Vice Mayor. Vice Mayor Livingstone thanked the Council for their support. The Mayor asked for a motion to confirm the vote. Vice Mayor Hudson’s motion to approve Cm. Livingstone’s selection as Vice Mayor was seconded by Cm. Rowley and passed 5-0.

Vice Mayor Livingstone’s motion to approve the minutes of the November 23, 2004 meeting was seconded by Cm. Perkins and passed 3-0. Cm. Hudson and Cm. Rowley abstained as they were not present for that meeting.

Vice Mayor Livingstone noted a correction to the December 14, 2004 minutes. Vice Mayor Livingstone’s motion to approve the corrected minutes of the December 14, 2004 meeting was seconded by Cm. Hudson and passed 3-0. Cm. Perkins and Mayor Wilson abstained as they were not present for that meeting.

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Vice Mayor Livingstone asked staff to explain the procedure. He questioned if the bids from San Mateo were accepted because they were good bids and lower than the State bids and if someone had contacted local dealers check for a lower price.

The Police Chief indicated that other agencies were contacted and the two factors which influenced the final decision were the fact that this was the lowest bid and that the vehicles were available.

Cm. Hudson’s motion to approve the purchase of four new patrol vehicles at a cost of

$ 92,780 from the Equipment Replacement Fund was seconded by Cm. Rowley and passed 5-0.

Cm. Perkins requested clarification from staff on the funding source for the vehicles.

The Finance Director responded that the funds were coming from the Capital Replacement Budget which is part of the adopted budget and not from the Police Department budget.

Mayor Wilson requested a roll call vote. The item passed 5-0.

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The City Attorney reported that the proposed ordinance to amend the Municipal Code was intended to eliminate a catch 22 situation in which the State Gaming Control Commission will not issue a Gaming Registration Certificate unless the local authority has issued a cardroom license for the proposed cardroom and the City’s Municipal Code requires a Gaming Registration Certificate to process an application for a cardroom license. He noted that the proposed ordinance does not approve any cardrooms or extend the current gambling ordinance.

Cm. Rowley asked if an applicant for a cardroom license would still be required to be reviewed by the Planning Commission and the City Council if approved by the State.

The City Attorney confirmed that the procedure would remain the same and require a conditional use permit from the Planning Commission in addition to City Council approval and compliance with the conditions of the City ordinance.

Vice Mayor Livingstone questioned if any one could apply for a conditional City cardroom license once the ordinance is passed.

The City Attorney responded affirmatively with the condition that the applicant has also applied for certification from the State Gambling Commission.

Vice Mayor Livingstone asked, if the City passes this ordinance, can an applicant apply to the City for a conditional City cardroom license as the first step in the process.

The City Attorney responded affirmatively and added that the applicant would then apply to the Planning Commission for a conditional use permit.

Vice Mayor Livingstone asked if the Planning Commission makes its determination after the State issues its license.

The City Attorney noted that the two processes occur simultaneously. With the City’s ordinance requirements, the license is not activated until the State Gambling Commission issues its certificate. He added that the State certificate may be issued before the City’s requirements are met.

Mayor Wilson opened the item to public comment and requested that speakers limit their remarks to the ordinance and not to ownership of the license.

Chris Ray, hired by Mr. Schireck’s attorney, Mr. Jesti, asked the Council to pay attention to ownership of any future licenses as this might eliminate problems before they start.

Mike Bonnifield, representing CBSR Partners, thanked the Council for granting his request for a continuance of this item from the December 14, 2004 meeting. He noted that he had submitted a memorandum on this issue to the councilmembers on December 17, 2004. He pointed out that one item was not addressed in his memo and that concerned paragraph two under "Discussion" in the City Attorney’s staff report. He indicated that there are other requirements in the City Code that are not included in the staff report. He noted that it would be in the best interest of the Council to make the ordinance cohesive.

Mayor Wilson clarified that all public records requested have been provided and that the position to which Mr. Bonnifield refers is being determined at this Council meeting.

Mr. Bonnifield questioned if the information is protected by attorney/client privilege and reiterated that one memo regarding the procedure and some requested ordinances were not provided to him.

David Fried, a gaming attorney representing CBSR Partners, addressed the ordinance changes. He requested that the City’s ordinance be in compliance with state law. However, he stated that he can not identify the provision in the state law that requires a local license to be issued before a State Gaming license is issued. He questioned why the City has not written to the State Gaming Commission to clarify if a conflict exists between State law and the current City ordinance. He disagreed with the license timing presented by the City Attorney and indicated that the current ordinance allows the City to issue a license well before the State license would be issued. He questioned why the City would want to make a licensing determination perhaps several months before the State makes its determination. He does not agree that there is a conflict between the current ordinance and State law.

Paul Justi, representing the Outpost Casino, noted that the source of conflict with the State law is the September 9, 2004 letter received from the Gaming Commission which states that possession of a local license to operate is a prerequisite to consideration for approval for a State gambling license. He felt that this is the reason why the current ordinance needs to be amended. He believes that the ordinance change is not controversial and that the current ordinance does not allow individuals to pursue a gaming application.

The City Attorney responded that the City is not granting anyone a license to operate a cardroom and noted that administrative agencies may apply their own rules. Referring to the September 9, 2004 letter, he stated that it is clear that a bureaucratic block prohibits the Outpost from pursuing a license. Since gambling is an endeavor recognized by the State, the City is trying to draft an ordinance that is neutral and does not favor anyone.

Cm. Hudson commented that the September 9, 2004 letter clearly states the need for a City license in order to pursue a State license. He favors the ordinance change because it simply allows an individual to pursue a lawful business.

Mr. Fried stated that he was not aware of the September 9, 2004 letter from the Gaming Commission. He questioned if the staff person who wrote that letter for the Gaming Commission had submitted it for legal review prior to sending it to the City. He reiterated that he did not see a conflict between the existing City ordinance and state law.

The City Attorney noted that the September 9, 004 letter was read as public record at the Council’s December 14, 2004 meeting. Mr. Fried was not present for that meeting but Mr. Bonnifield was.

The City Attorney emphasized that the City is only concerned with the ordinance and its legality and the fact that it does not favor anyone.

Mayor Wilson noted that ordinances are within the privy of the City Council.

Mr. Fried remarked that it is inappropriate for the Council to base their decision on a letter that is not in the public record and questioned why the City would not submit the proposed ordinance to the Gaming Commission for review and comment before its adoption. He noted a change in State law effective January 1, 2005 will mandate such a review before changes are made to an ordinance.

Cm. Perkins asked Mr. Justi for clarification of the gambling application requirement for a local gambling establishment business license or permit. Cm. Perkins noted that the City’s business license is a type of registration and not a gaming license or permit.

Mr. Justi responded that they interpret the local gambling business license to be the City business license which is an approval by the City to engage in the business of gambling.

Cm. Perkins stated that the City’s business license is a registration and does not regulate the type of business. This is done by a use permit.

Mr. Justi emphasized that he was only asking for the opportunity to pursue the business and move forward with the process. He remarked that he did not think that the

September 9, 2004 letter was sent to the City without legal review by the Gambling Commission.

Vice Mayor Livingstone asked if a license can be sold or transferred to anyone else.

Mr. Justi responded that it can not.

Vice Mayor Livingstone asked if the Outpost needed a business license in addition to a gambling business license or if they are two separate items.

The City Attorney responded that they are two separate items.

Mayor Wilson stated that the City does not take changing ordinances lightly. He emphasized that the Council’s duty is to protect the City. He added that the Council should not change laws because it is convenient and that it was imperative that all the ramifications be understood before action was taken. This ordinance is in place to protect the residents of San Ramon and it is important that the Council explore and know the reasons for changing the ordinance. Otherwise, a disservice would be done to the residents and those who had passed previous ordinances. He wanted the Council to understand this before they voted and felt that the vote was important to present at a meeting before the full Council. He added that he will request a voice vote and that there would be additional discussion after the motion was made.

Cm. Hudson moved adoption of the ordinance amending the Municipal Code provisions pertaining to cardrooms. Vice Mayor Livingstone seconded the motion.

The Mayor requested a voice vote. Cm. Hudson, Cm. Rowley and Vice Mayor Livingstone voted in favor of adoption. Cm. Perkins and Mayor Wilson voted against adoption. The motion passed 3-2.

Mayor Wilson requested that the Policy Committee review any and all things to do with cardroom licenses in San Ramon as soon as possible.

Cm. Perkins requested a review of the license application procedure, the policy and procedure for background checks, the financial review, what will be required in the application and investigation, and a recommendation for changes to the City’s Fee Schedule for costs incurred to the City in processing these applications. He noted that the current Fee Schedule may not include all of the costs to the City in reviewing the application for the cardroom license.

Mayor Wilson asked Cm. Perkins to prepare a written request for this information and submit it to the Policy and Finance Committees.

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The Deputy Clerk noted that there are no items of new business.

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The City Manager reported that he received a letter of agreement between the Dublin San Ramon Services District and Central Contra Costa Sanitary District regarding procedures at the Larwin Pump Station.

Cm. Rowley asked how this would benefit the City. The City Manager replied that it provides for joint training of both entities to respond to emergencies.

Cm. Perkins questioned if the final report for the Larwin Pump Station spill had been received. The City Manager reported that it had not and that he would find out when it would be received.

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Cm. Rowley wished everyone a safe holiday.

Cm. Perkins wished everyone a safe and wonderful holiday.

Mayor Wilson thanked Cm. Hudson for his service as Vice Mayor.

Mayor Wilson congratulated Cm. Livingstone on his selection as Vice Mayor.

There being no further business to come before the City, the meeting was adjourned at 8:23 p.m.

Signed:
H. Abram Wilson, Mayor
Patricia Edwards, Interim City Clerk

Approved:   January 11, 2005