MINUTES OF THE
CITY OF SAN RAMON – COUNCIL MEETING

A regular meeting of the City Council of the City of San Ramon was held January 24, 2006 at 7:03 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Vice Mayor Rowley presiding.

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

ABSENT: Councilmember Perkins and Mayor Wilson.

STAFF PRESENT: City Manager Herb Moniz, City Attorney By Athan, Police Chief Scott Holder, Parks and Community Services Director Jeff Eorio, Human Resources Director Cheryl Mitchell-Wade, Transportation Analyst Darlene Amaral, Finance Division Manager Eva Howard, Economic Development Director Marc Fontes and City Clerk Patricia Edwards.

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Vice Mayor Rowley Mayor Wilson reported that the Council met in closed session pursuant to Government Code §54957 to meet with its labor negotiators Jeff Eorio, Greg Rogers and Cheryl Mitchell Wade concerning negotiations with SEIU Local 790. Vice Mayor Rowley reported that no action was taken.

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Justin Riordan, Quincy Fong and Taylor Fong, members of Boy Scout Troop 834, led the Council, staff, and those in the audience in the pledge of allegiance.

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Vice Mayor Rowley asked if there were any changes or additions to the agenda. The City Clerk noted there were none.

Vice Mayor Rowley asked if there were any changes or additions to the Boards, Committee and Commission meetings schedule. The City Clerk reported that the Planning Commission meeting scheduled for Tuesday, February 7, 2006, will be held at 7:30 p.m. in the San Ramon Community Center.

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Vice Mayor Rowley presented the proclamation to Harry Beardsley, Donor Recruitment

Representative for the American Red Cross. Mr. Beardsley thanked the Council. He emphasized the urgent need for blood and urged residents to donate blood. Additional information and appointments may be made by contacting
1-800-GIVELIFE or via their website at www.beadonor.com.

Proclamation Declaring February 5-11, 2006 as Boy Scout Week 2006.

Jerry Dees, Meridian District Roundtable Commissioner, accepted the proclamation from Vice Mayor Rowley. Vice Mayor Rowley recognized the benefits of scouting. She thanked the adults who take the time to mentor the City’s scouts. Mr. Dees said that it was a privilege to accept this recognition on behalf of the Mount Diablo District. He expressed appreciation for San Ramon’s support of scouting.

Introduction of new City Parks and Community Services Employees: Jody Curley, Recreation Technician - Sports Division, Brian Littrell, Maintenance Technician - Facilities Division and City Clerk Staff: Renee Beck, Office Tech, and Marty Wadekamper, Deputy City Clerk.

Parks and Community Services Director Jeff Eorio introduced his new staff. Jody Curley will work primarily with the Youth Sports Program. Brian Littrell is a maintenance technician responsible for Parks Department facilities. Vice Mayor Rowley presented them with City pins and welcomed them to the San Ramon family.

City Clerk Patricia Edwards introduced Renee Beck, Office Technician, and Marty Wadekamper, Deputy City Clerk. Ms. Edwards reviewed their job responsibilities and stated that she was pleased that they have joined the City Clerk’s office. Vice Mayor Rowley presented them with City pins and welcomed them to the San Ramon family.

Human Resources Director Cheryl Mitchell-Wade recognized Bonnie Mertz as the City’s Employee of the Month for January 2006. She remarked that Mrs. Mertz has received 12 Gold Star Awards in her 13 year career with the City. Vice Mayor Rowley presented her with a certificate and commented that it is always a pleasure to work with her. Mrs. Mertz thanked Greg Rogers, Finance Director, for the nomination. She thanked Ms. Wade and Mrs. Toni Renault for encouraging her to explore new ideas and ways in which the department can continue to help City staff plan for their future.

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Transportation Analyst Darlene Amaral gave the report. She asked the Council to review the applications and appoint two members to the Committee for terms to run through January 2008. Cm. Livingstone noted that both applicants were excellent. His motion to appoint Marci McGuire and Scott Hulse to the Transportation Demand Management Committee was seconded by Cm. Hudson and passed 3-0.

Ms. McGuire said it is a pleasure to serve on the Committee and help employees find alternate ways to work. She appreciates San Ramon’s support and is looking forward to working with the City. Vice Mayor Rowley stated that the City appreciates her expertise and thanked her for being an active part of the community.

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The City Clerk noted that there were five requests for public comment.

Commenting on the Mayor’s State of the City speech, Toby Brink, President of the San Ramon Chamber of Commerce, thanked the City for moving in the right direction for the business community and residents. He thanked City staff for their outstanding work. Vice Mayor Rowley noted that it was a pleasure to have him at the Chamber’s helm.

Agnes Radell reminded the Council that the southern part of the City is waiting for undergrounding of their power lines. She suggested that the City use any surplus funds for this purpose as the residents have been waiting a long time.

Jolyn McDonald questioned the Council about the proposed zoning changes from Parks to Commercial Recreation for the Canyon Lakes Golf Course. She asked the Council if residents need to be concerned about the possibility of building once the golf course zoning has been changed. She noted that golf courses are not included in the zoning listings. She asked about the zoning process and how residents can get involved.

James Hanafee commented on the proposed zoning change for the golf course. He expressed concerns about the change in zoning for 500-700 houses and the lack of notification to residents. He stated that this is a major change and suggested that the Council speak to the Planning Commission. He supported undergrounding of utilities.

Jan Desmarais questioned the rezoning of the golf course from Park to Commercial Recreation. She stated that the definition of Commercial Recreation is not clear and requested the Council’s assistance. Referring to the City’s zoning map, if the south San Ramon area loses its golf course to multi-use development, she asked how that use is similar to a golf course and if it should be changed to a similar recreation use. She said that she was not notified by mail of the Planning Commission’s January 3, 2005 public hearing. She questioned San Ramon’s policy regarding notifying residents.

Vice Mayor Rowley acknowledged that the City has received emails and letters related to the proposed rezoning of the San Ramon Golf Course from Parks/Recreation to Commercial/Recreation. The proposed change that is being discussed at the Planning Commission in no way implies development of the golf course property. The proposed zoning change would affect the San Ramon Golf Course and the Canyon Lakes Golf Course to conform to the voter approved General Plan. It reflects the current use of the property, a golf course. The City Council does not intend to zone the golf course for development. She encouraged residents to attend the Commission meeting at 7:00 p.m. on February 7, 2006 and provide input on the City’s comprehensive zoning code update. She stated that zoning concerns need to be presented to the Planning Commission.

City Manager Herb Moniz said that he and Planning Director Phil Wong will contact the residents who spoke at the Council meeting and explain the process. He encouraged residents to attend the Planning Commission meeting on February 7, 2006.

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Cm. Livingstone’s motion to approve the January 10, 2006 minutes was seconded by Cm. Hudson and passed 3-0.

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Resolution No. 2006-10 – Implementing Market Adjustments to the "City’s Pay For Performance Compensation Plan".

Resolution No. 2006-11 – Amending Resolution No. 2005-38 to Approve Increasing the Mailing Fee for Passports Processed by the City.

Resolution No. 2006-12 – Authorizing the Transfer of $41,449 from the FY 2004/05 Pavement Management Project (CIP 5319) to the FY 2003/04 Pavement Management Project (CIP 5318).

Accept the Work by Top Grade Construction, Inc. for Construction of the FY 2003/04 Pavement Management Project (CIP 5318), Montevideo Drive Reconstruction from Iron Horse Trail to San Ramon Valley Boulevard Project (CIP 5428), and Montevideo/Broadmoor Traffic Signal Conduit Installation Project (CIP 5459) as Complete and Authorize the City Clerk to File a Notice of Completion with the County Recorder's Office.

Resolution No. 2006-13 – Acceptance of Park Design Funds for the Henry Ranch Neighborhood Park. Cm. Hudson’s motion to approve consent calendar items 8.1 through 8.5 was seconded by Cm. Livingstone and passed 3-0.

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The City Clerk noted there were no items of Unfinished Business.

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Finance Division Manager Eva Howard introduced Kathryn Beseau with Moreland and Associates, Inc. who presented the report. Ms. Beseau thanked City staff for their assistance and preparedness. She reviewed the audit procedures and commented that, after conducting an interim testing and evaluating the compliance of internal controls, there were no items to report in the management letter.

Ms. Beseau congratulated the City on receiving the Government Finance Officers Association (GFOA) award in 2004 for its Comprehensive Annual Financial Reports (CAFR). She expects the City will receive both the GFOA and the California Society of Municipal Finance Officers awards in 2006 for its CAFR. She reported that all financial statements are in conformance with the Government Accounting Standards Board (GASB). The new GASB statements provide more information regarding City investments, statistical statements, and post employment health benefits. She noted that the $4 million General Fund surplus was the result of $2 million in unexpected revenues and $2 million in expenditure savings.

Cm. Hudson highlighted several of the audit findings including that: there were no material weaknesses or problems; the City needs to increase its sales tax revenue from 19% to 30-35%; the City’s net assets increased by $5 million over the prior fiscal year; and the General Fund balance at the end of the year was $26.2 million.

Cm. Livingstone asked what improvements the City could adopt. Ms. Beseau said that she could not specify anything. He recognized the excellent work done by Mr. Rogers and the Finance staff. Vice Mayor Rowley concurred with his comments.

Cm. Hudson’s motion to accept the Audit Report as presented was seconded by Cm. Livingstone and passed 3-0.

Deputy Executive Director Marc Fontes stated that this is an independent but corollary item to the item which was considered by the Redevelopment Agency. The Council is being asked to receive the Report, consent to the joint public hearing, set the hearing date and direct the City Clerk to work with staff to prepare the hearing notices. He reviewed the components of the Report which are required by California Redevelopment Law. He outlined the procedures for the joint public hearing process and notification. He reported that staff will conduct two community information meetings. One was held on January 19, 2006 and the second one is scheduled for February 22, 2006.

Cm. Hudson clarified that the Council action is to set the hearing date. He encouraged anyone who had concerns on the Plan to attend the hearing and voice their opinions.

Cm. Livingstone reminded the public about the February 22, 2006 workshop which will be held in the Council Chambers at 7:30 p.m. He stated that it is important for the public to provide input to the Redevelopment Agency. Staff will provide information about eminent domain and how tax increment is used to repay the bond indebtedness.

Cm. Hudson’s motion to accept the Report to Council and to set the joint public hearing date for March 14, 2006 was seconded by Cm. Livingstone and passed 3-0.

Resolution No 2006-15 – Authorizing the Mayor to Execute an Agreement as Recommended by the City Manager and Approved as to Form by the City Attorney Between the City of San Ramon and AT&T to Permit the Upgrading and Installation of Facilities to Support Internet Protocol Television (IPTV) Services (Project Lightspeed).

Jeff Eorio, Parks and Community Services Director, introduced the item. As a part of their agreement, AT&T will upgrade and install facilities to support internet protocol television (IPTV) services, also known as "Project Lightspeed." AT&T’s position is that their proposed infrastructure project enhances their current telecommunication services and the inclusion of IPTV in their service package does not make them a cable service provider. AT&T agreed to: pay the City a fee up to 5% annually of gross revenues from subscription fees generated from the IPTV service; carry the Tri-Valley Community Television (TV30) education and government (EG) programming made available by TV30, and delivered to the City and its residents by AT&T; retransmit emergency alerts from the Contra Costa County Emergency Network and provide $.50 per subscriber per month to the City of San Ramon for the purpose of supporting the EG programs at TV30.

As a part of the facility upgrade and new infrastructure, AT&T will install new above ground cabinets (known as "52 B" cabinets) to house their new facilities, each of which is roughly 5’ tall x 3.5’ wide x 2’ deep. Approximately 41 of these cabinets will be required. The cabinets are intended to be installed within the City’s public right of way. In areas where there would be neighborhood and property owner impacts, AT&T and City staff will conduct public notification/informational meetings to notify the public and obtain public input on the locations of these cabinets.

City Attorney By Athan clarified that the negotiations are not finalized. He requested that the Council remember that the courts will decide whether or not this service is an extension of cable or telephone service. Cm. Livingstone asked if the City will be held harmless by AT&T regarding the legal ramifications. Mr. Athan responded that it is subject to negotiation. The City Manager said that it would be part of the agreement.

Shiyama Clunie, AT&T representative, provided an overview of the services provided by Project Lightspeed (PLS). PLS is a telecommunication service which includes video, Voice Over Internet Protocol (VoIP), IP video, high speed internet access. AT&T estimates that it will be a $4 billion project. Upgrading the existing network will require limited work in the right-of-way as the majority of the network is already in place.

Cm. Livingstone asked about the 41 cabinets. Ms. Clunie said that AT&T plans to put the cabinets in the public right-of-way and rarely in front yards. Aesthetic concerns will be mitigated by planting foliage. Cm. Livingstone asked how many streets will be dug up. Ms. Clunie responded that she does not know the exact location for the cabinets but anticipates that the impact will be minimal. Cm. Livingstone asked when the service will be available to the residents. Ms. Clunie estimated that the majority of residents will have access to PLS within 5 years.

Vice Mayor Rowley asked how the cabinets will be camouflaged. Ms. Clunie said that the cabinets will be reviewed on an individual basis. She noted that providing foliage for all of the cabinets would be cost prohibitive. It will depend upon the neighborhood.

Jeffrey Sinsheimer, representing the California Cable and Telecommunications Association, stated that the City’s resolution does not reflect the City’s legal obligation to enter into a cable television franchise with AT&T. He maintained that AT&T is providing a cable service because the federal definition of cable service is "television service delivered through wires along with any activity that is needed to provide that service". He suggested that AT&T does not consider itself a cable company so that they are not obligated to pay the franchise fees or property taxes for the use of the public right-of-way. He recommended that AT&T secure a franchise and then provide cable service.

Cm. Livingstone asked why AT&T is avoiding a franchise. Mr. Sinsheimer said that AT&T claims they are not offering cable service and so does not need to comply with Title 6 of the Communications Act. He said that Comcast welcomes competition on a level playing field so that residents will have the benefit of choices. He views AT&T’s proposal as a legal violation of the Federal Communications Act. Cm. Livingstone asked if Comcast can provide the same services that AT&T is proposing. Mr. Sinsheimer said that Comcast services will, in time, meet or exceed what AT&T promises to deliver.

The City Attorney emphasized that the discussion with AT&T is still in the negotiation stage. He stated that the Council is not making law. He assured the Council that the negotiators will insist on a level playing field and look out for the City’s best interests.

Vice Mayor Rowley opened the public comment.

Arlene Gallegos stated that, as a resident, she wants to be able to make a choice among different companies and take advantage of technology as it becomes available.

Arlene Lum, an AT&T employee, said that she takes pride in the services which AT&T provides to the San Ramon community. She said that AT&T customers are interested in faster internet service, VoIP, and integrated services. AT&T wants to upgrade their network in order to provide these services and technology to the community.

Ken Mintz, a resident and AT&T employee, commented that AT&T’s proposal provides an improvement to the community’s infrastructure. He stated that the issue is not a question of cable versus phone company. PLS improves the speed and capability of the internet. He urged the Council to support the resolution.

Toby Brink stated the Chamber of Commerce’s support for AT&T’s plan. He viewed the new telecommunication technology as an important tool for businesses to improve their operations and remain competitive and to meet consumer demands. Business growth will positively impact the community. Embracing innovative technology will place San Ramon in front of other cities. He encouraged the Council to support the resolution.

Ms. Clunie stated that competition will result in lower prices. She focused on the service options and not the legal or competition aspects. She said that the features which AT&T promises to provide are not currently offered by the cable industry. AT&T is taking the issue of cable versus telecommunication company to court. She said that AT&T has taken the City’s needs and considerations into account during the negotiations. She said that she could not commit to a certain percentage build-out because it will depend upon the resident response. She added that AT&T will provide services as quickly as possible.

Vice Mayor Rowley called a recess at 9:27 p.m. The Council reconvened at 9:35 p.m.

Cm. Hudson commented that the discussion was not relevant to the purpose of the resolution. The resolution asks the City Manager to continue to negotiate a service agreement. He is confident that the City Manager will negotiate a contract in the best interest of the citizens. He added that attorneys will decide the legal issues.

Cm. Livingstone concurred with Cm. Hudson. He stated his total confidence in City staff. He said that Comcast does provide good service to San Ramon. He remarked that there is no substitute for having more choices and was excited about the potential for faster internet connections. He supports the resolution because competition and the opportunity to bring more choices to San Ramon is needed.

Vice Mayor Rowley thanked the speakers for their comments. She said that the City Manager and City Attorney are a great negotiating team.

Cm. Hudson’s motion to approve Resolution No. 2005-15 was seconded by Cm. Livingstone and passed 3-0.

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City Manager Herb Moniz recognized Greg Rogers, Eva Howard and the professional staff in the Finance Department for their hard work.

He updated the Council on the School Bus Transit Services authorized by Measure J. A citizens advisory committee has been established. A Policy Advisory Committee has been formed and the Citizen Advisory Committee will be formed in the future. The second phase will be initiated in approximately one year to define services and costs. He reported that the City is continuing to meet with transit representatives and associated agencies to improve transit services in the City and to provide transit services to Dougherty Valley by January 2007.

The transit committee, formed by the county as a result of Dougherty Valley agreements, is responsible for the criteria establishing the fee for the provision of the five year demonstration project. The City and Contra Costa County Transit Authority have agreed to initiate the transit service to Dougherty Valley in stages. The final Metropolitan Planning Commission meeting will discuss the disposition of Transit Development Act funds and how they can be applied to that service. A report to Council is expected within 60 days which will identify the transit provider.

He informed the Council that the emergency preparedness presentation is complete and will be presented to the Tri-Valley Council Mayors and Managers on February 13, 2006 and to the Tri-Valley Council meeting on February 23, 2006. It achieves the objectives of raising the consciousness of the state of emergency preparedness in the Tri-Valley and future discussion on what steps cities should take to be better prepared.

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Cm. Hudson credited Marci McGuire with being a strong advocate for transit and for making mass transit work in San Ramon. He cautioned that some residents are misinformed about the reestablishment of eminent domain. He stated that the zoning changes are being done to align the zoning code with the General Plan. He encouraged residents to attend meetings and to voice their opinions. Residents should not assume that action has already been taken as this is a long process.

Cm. Livingstone complimented Vice Mayor Rowley on a well conducted meeting.

Vice Mayor Rowley invited the public to the February 11, 2006 Crab Feed at Dougherty Station. It is sponsored by the San Ramon Historic Foundation. Tickets are $35 and the proceeds will benefit the restoration of historic properties at Forest Home Farms.

There being no further business, Vice Mayor Rowley adjourned the meeting at 9:54 p.m.

Signed:
Carol J. Rowley, Vice Mayor
Patricia Edwards, City Clerk

Approved as corrected at the February 14, 2006 City Council meeting, 3-0; Perkins and Wilson abstained.