MINUTES OF THE
CITY OF SAN RAMON – COUNCIL MEETING

The City Council of the City of San Ramon convened to a Joint Public Hearing with the San Ramon Redevelopment Agency on March 14, 2006 at 6:00 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Mayor Wilson presiding.

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

STAFF PRESENT: City Manager Herb Moniz, City Attorney By Athan, Police Chief Scott Holder, Public Services Director Karen McNamara, and City Clerk Patricia Edwards.

Mayor Wilson convened the City Council to the Joint Public Hearing at 6:00 p.m.

Redevelopment Agency Chair Rowley reconvened the Agency to the Joint Public Hearing at 6:00 p.m.

Mayor Wilson announced that the purpose of the meeting is to conduct a joint public hearing to consider and act upon the proposed Fourth Amendment to the Redevelopment Plan for the City of San Ramon Redevelopment Project and the 2005-2009 Amended and Restated Implementation Plan. The Mayor requested a roll call of Councilmembers and Redevelopment Agency members. All members were in attendance.

The Mayor made an introductory statement and outlined the hearing procedures which were conducted in compliance with the Community Redevelopment Law of the State of California. The order of procedure included: (1) staff presentation on the proposed Fourth Amendment and evidence and testimony in support of the proposed Fourth Amendment including the Negative Declaration; (2) staff presentation on the proposed 2005-2009 Amended and Restated Implementation Plan and evidence and testimony in support of that plan; (3) consideration of written comments that have been received concerning the proposed Fourth Amendment or the Amended and Restated Implementation Plan; (4) evidence or oral testimony from those present concerning the proposed Fourth Amendment or the Amended and Restated Implementation Plan; and (5) the close of the public hearing.

Marc Fontes, Economic Development Director, entered five documents into the record. These documents included: (Exhibit 1) the affidavit of publication of the joint public hearing; (Exhibit 2) the certificate of mailing notice of the joint public hearing to each assessee of land in the Project Area; (Exhibit 3) the certificate of mailing notice of the joint public hearing to the residents and businesses in the Project Area; (Exhibit 4) the certificate of mailing of the joint public hearing to the governing body of each taxing agency that receives property taxes from property in the Project Area: and (Exhibit 5) the affidavit of posting of the joint public hearing in four permanent locations within the Project Area for a period of three weeks.

Mr. Fontes also entered four additional exhibits into the record. These included: (Exhibit 6) the Report of the Agency to the City Council including Negative Declaration; (Exhibit 7) the Supplement to the Report to the City Council; (Exhibit 8) the Fourth Amendment to the Redevelopment Plan for the City of San Ramon Redevelopment Project; and (Exhibit 9) the 2005-2009 Amended and Restated Implementation Plan.

Mayor Wilson requested that any written communications which were received be entered into the record as Exhibit 10. The City Clerk reported on the following:

(A) Geoff Johnson commented on the amount and variety of services provided. He stated that the focus of the Crow Canyon Specific Plan is centered over Beta Court with the result of replacing current commercial businesses with housing and retail. This would be detrimental to the business owners and residents. He provided a summary of a survey of Beta Court businesses which reports that the service commercial on Beta Court generated nearly $35 million in gross sales in the past year and serviced nearly one million customers. He believes that the housing overlay on Beta Court will cause the elimination of commercial business in that area. He requested that the Council evaluate other areas in the City in which housing and light retail could be located.

(B) John and Becky Kolberg stated their objection to the Proposed Fourth Amendment to the Redevelopment Plan. They disagreed with the assessment that the area is blighted, expressed concern about the use of eminent domain, and are against the increased tax increment for the Agency.

(C) Nancy Schlesinger objected to the identification of certain properties as blighted and the use of eminent domain. She noted that the Plan fails to account for stable, long-term business relationships. She cautioned the Agency to view eminent domain as a method of absolute last resort and asked that the Agency serve as a liaison between property owners, business owners, and developers who are sensitive to the area’s potential.

(D) The attorney for the San Ramon Fire Protection District stated that the District does not oppose the adoption of the Fourth Amendment but requests assurances regarding the availability of sufficient tax funds to maintain established and adopted response times and levels of fire and emergency service with respect to the increased development authorized by the Fourth Amendment. They requested formal consultation consistent with Section 33328 to address the issue of sufficient funding for fire and life safety services that are part of the authorized development.

(E) Gary Lundry stated his opposition to the redevelopment plan and the changes to eminent domain.

(F) D. Smith stated opposition to the issue of eminent domain in San Ramon as this will potentially lead to an increased tax burden.

(G) Hassan Sharifi stated that he does not object to the entire Plan. Redevelopment funds can be utilized to improve the City’s infrastructure and crate affordable housing. He expressed concerns regarding the definition of blight, uprooting and relocating the Beta Court businesses, and the affordable housing requirement.

(H) Paul and Jan Desmarais strongly object to the proposal to reinstate eminent domain. They requested a written response to the issues of tax increment, bonded debt, and business subsidies. They requested that specific language be added to clearly state "the City of San Ramon will not use eminent domain for private gain anytime, within the next 12 years that this is being proposed".

Mayor Wilson opened the public hearing.

Davis Ernest stated that he favored increasing the Redevelopment Agency’s bonded indebtedness so that funds would be available for expansion of the San Ramon Senior Center. An expanded and improved facility is needed to meet the citizens’ requirements.

Roz Rogoff noted that there are several bills pending in state legislature to limit the powers of eminent domain. She reported that there is a grass roots effort to limit eminent domain strictly to community projects and that this issue may be on the November ballot.

Ron Johnson discussed the impact of eminent domain. He said that the use of eminent domain will stop the sale of Redevelopment Area businesses. Cm. Hudson said that the City already has the power of eminent domain and that this Plan would reinstate it in the Redevelopment Area. Mr. Johnson stated that unknowns make it very difficult to sell a business. He is also concerned about the level of eminent domain. Cm. Livingstone clarified that increasing the bond indebtedness level is not the same as eminent domain.

Mary Mackie stated that she located her business in Beta Court because of her business’ space requirement and the reasonable rent. She is able to provide music lessons at a reasonable cost. She is concerned about eminent domain and where she would relocate her business. Mayor Wilson clarified that there are no immediate plans to employ eminent domain and that the any plans will probably encompass a 10- to 20-year period. He thanked Ms. Mackie for providing this service to the community.

Hassan Sharifi expressed confidence in the Council and in the Redevelopment Agency. He wants the City to raise funds for City improvements and to improve blighted areas. He asked the Council to respond to his letter. He complimented the City on its accomplishments.

Jim Coleman (Danville resident) stated that he uses the services located in the Redevelopment Area and does not want to lose the access to these businesses. He added that these businesses would be difficult to relocate. He encouraged the Council to consider keeping costs low for the businesses so that they will remain in the community.

Ted Stein (Alamo resident) owns a Beta Court business and is concerned about eminent domain. He asked that the Council understand the lay person’s view of eminent domain. He is concerned about the impact on his employees. Mayor Wilson stated that San Ramon prides itself on being a community and that the Council is ‘pro’ small business.

Lynne Reik wants to keep the businesses which she uses in Beta Court. She is concerned about the portion of her property that might be taken away by eminent domain.

Ted Mendelson noted that San Ramon is a beautiful city in which to raise a family. San Ramon should support and encourage locally owned businesses which serve its citizens. The 40 businesses in Beta Court serve 57,000 customers, generate $35 million in sales, and employ 381 skilled workers. He observed that Beta Court is not pretty but it has all the services that the City needs. Although Beta Court may be messy, it is not blighted. He stated that it is not good planning to remove profitable businesses for affordable housing. He requested that the Beta Court zoning remain as Service Commercial.

Davis Deutscher concurred that Beta Court provides important services to the tri-valley area. He asked the Council to leave the area alone. He said that the expense of relocating these businesses is an excessive burden to the City. He noted that good planning should provide services to the area. Eminent domain decreases property appeal. He added that businessmen are reluctant to buy or rent when the long term availability is unknown. He acknowledged that some of the Service Commercial could be recreated or redesigned. He commented that Beta Court provides excellent services and that eminent domain will take something important away from the community.

Paul Desmarais said that Beta Court businesses have helped to establish the community. He wants small businesses to have the opportunity to succeed. He does not want eminent domain to be used for anything in the community. He does not support multi-use zoning and does not want it in San Ramon. He asked how the City plans to pay for the increased bond indebtedness.

Jan Desmarais stated that eminent domain was to be used only for necessary items in a public venue. She expressed concern about Redevelopment funding, repaying debt, use of the funds, and eminent domain. She stated that eminent domain should not be used for private gain by the Redevelopment Agency over the next 12 years.

Joe Melchior, representing San Ramon Tow, expressed concern about the impacts and increased response time if his business would be forced to relocate. He asked the Council to consider the impacts of their decision on the community.

Christian Claytor operates the Splash Swim School on Old Crow Canyon and expressed concern about the use of eminent domain if it caused his business to relocate. He selected this area because of the reasonable cost and the space factor which accommodates the pool. It would be very expensive to relocate to relocate his business. Mayor Wilson thanked him for providing this service to the community.

John Chopel said that he chose San Ramon because of the community aspect and the available services. He considers eminent domain to be a public use issue. If it is applied to a private use issue, the Agency needs to provide an alternate location for the business. He cautioned the Council that eminent domain is not an issue to be taken lightly.

Greg Overfield, operator of P&G Chem Dry, stated that he investigated relocating in order to purchase a building. He found space in Pittsburg and Livermore but it was not economically feasible when all operating factors were taken into consideration.

Joseph Kamp reported that his five-year old business continues to enjoy an annual increase in volume. The Beta Court businesses are a necessary part of the community.

Scott Zoetewey, owner of a home elevator company, said that he has a lot of walk in customers because of his location. He indicated that if mixed-use is considered, the businesses should be maintained. He wants to keep his business in San Ramon.

Mayor Wilson closed the public hearing.

Mayor Wilson said that San Ramon is unique because it cares. The Council understands the importance of a full service City. He said that the Council wants to do what is best for the City and needs public input in order to understand its residents and their needs. The Council listens to everyone, evaluates, and then makes their decision. The Council realizes the importance of small businesses. He encouraged residents to challenge the Council and make them responsible. He noted that Redevelopment is an important tool for the City and was responsible for significant improvements to the Alcosta Mall area.

Vice Mayor Rowley stated that she served with Cm. Livingstone on the Alcosta Mall project which was a very blighted area. She asked about the status of Ralph’s grocery store and the use of eminent domain in that area.

Mr. Fontes responded he has received limited information from Kroger’s. The company did not provide any timelines in terms of proposals for the space. He noted that this area is an example of how eminent domain can become an important tool for the Agency. A grocery store is needed at this location to serve the neighborhood. Depending on the proposals which Kroger’s receives for that space, it is possible that the Redevelopment Agency, with the power of eminent domain, may play a role in acquiring the lease hold interest from Kroger’s. The Agency could be proactive in getting another grocery store.

Vice Mayor Rowley thanked the businesses for speaking at the meeting. She said that the Council believes in "Shop San Ramon".

Cm. Hudson thanked the citizens for their participation. He observed that many speakers discussed the Crow Canyon Specific Plan. He noted that the Joint Public Hearing concerns the Redevelopment Plan. He clarified several points. Blight can be both visual and physical. He emphasized that eminent domain and redevelopment are not issues that can be learned from the internet. He added that the Agency wants to have the power of eminent domain to use, if needed, but there are rules to protect the individuals.

Cm. Hudson reviewed the four issues in the Fourth Plan Amendment. The City is required to make all City documents comply with the General Plan and so it is necessary to update the land use provisions within the Redevelopment Plan to conform to the City’s General Plan. Reestablishing the Agency’s eminent domain enables the Agency to pay back the cost of any eminent domain land purchases with tax increment funds instead of with residents’ tax dollars. If the Agency does not increase its tax increment limit and if the Agency’s tax increment limit of $94 million is reached, any additional tax increment money would have to be returned to the state. This is money that could be used to pay back Agency debt. Increasing the limit on outstanding bond indebtedness enables the Agency to increase its bond debt but does not mean that the Agency will take this action. He noted that all of these points work for the benefit of the residents and that the Council does not plan to drive people out of business.

Cm. Perkins emphasized that there are currently no development plans associated with any Redevelopment area property. He added that it takes a huge effort to get the Council to use eminent domain. Eminent domain is very costly because of the associated litigation expenses, property evaluations, etc. He noted that there are tax advantages to selling businesses that may be under the threat of eminent domain. He clarified that a portion of the tax increment funds are passed through to schools, the fire district, etc. The City gets its tax increment payment from the state and this money is used to pay the Agency’s bond indebtedness. It can also pay for infrastructure, low interest loans, grants, etc. Bond indebtedness enables the Agency to support businesses. He reiterated that it is not the City’s intent to force businesses to redevelop their property. Developers will be directed to work with property owners. He did not anticipate the use of eminent domain. He supports the Fourth Amendment as it serves the City’s businesses and citizens.

Cm. Hudson emphasized that eminent domain is not done lightly. Adoption of the Fourth Amendment will not force the businesses on Beta Court out of business.

Cm. Livingstone concurred with Cm. Hudson and Cm. Perkins. He discussed his experience as a former Redevelopment area property owner when the City had the power of eminent domain. He remarked that if a project is going to work, the buyers of the property will take care of the seller’s need without the City’s involvement. The City, through the Agency, wins because areas are cleaned up without cost to taxpayers. He asked residents not to be afraid of redevelopment or eminent domain. He suggested that they avail themselves of City resources such as Mr. Fontes. He supports the Fourth Amendment because it is good for the City.

Mayor Wilson asked for a motion to close the public hearing. Cm. Perkins’ motion to close the public hearing was seconded by Cm. Hudson and passed 5-0.

Mayor Wilson announced that the joint public hearing of the City Council and the Redevelopment Agency is closed. At their respective meetings on March 28, 2006, the Agency and Council may take action to adopt the Fourth Amendment, the 2005-2009 Amended and Restated Implementation Plan, and approve and adopt the Initial Study/Negative Declaration prepared for the Fourth Amendment.

Chair Rowley adjourned the Redevelopment Agency meeting at 7:42 p.m.

Mayor Wilson called for a five minute recess at 7:42 p.m.

Mayor Wilson reconvened the City Council meeting at 7:58 p.m.

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Mr. Toby Brink led the Council, staff, and the audience in the pledge of allegiance.

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

Mayor Wilson asked if there were any changes or additions to the Boards, Committee and Commission meetings schedule. The City Clerk noted there were none.

* * * *

Proclamation Declaring March 2006 as American Red Cross Month.

Due to the delayed start of the City Council meeting, Harry Hartman, American Red Cross Leadership Council member, was not present. Mayor Wilson read the proclamation and emphasized the importance of donating blood.

Recognition of Steve Jeanminette as City of San Ramon Employee of the Month for March 2006.

Public Services Director Karen McNamara recognized Steve Jeanminette as the City’s Employee of the Month for March 2006. Mr. Jeanminette is a maintenance specialist. She noted that he has been with the City since 1985. He is recognized for his exceptional cooperation with other divisions. He is licensed to drive the City’s ‘big trucks’. Mayor Wilson presented him with a certificate and a gold star paper weight. Mr. Jeanminette thanked the Council, his supervisor Jeff Gault, and his Public Services co-workers for this recognition.

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The City Clerk noted that no Council appointments were scheduled.

* * * *

The City Clerk noted that there was one request for public comment.

Toby Brink, President of the San Ramon Chamber of Commerce, invited and encouraged the Council and residents to attend the Chamber’s B2B Expo scheduled for March 23, 2006 from 3:00 p.m. to 7:00 p.m. at the San Ramon Community Center. He expects 45 exhibitors to participate. The focus will be on B2B business services. There will be a series of afternoon seminars including Marc Fontes, Economic Development Director. Additional information is available at www.sanramon.org or by calling the Chamber at 242-0600. He thanked the City for its support of the business community. He thanked Vice Mayor Rowley for attending the ribbon cutting at Zpizza restaurant in San Ramon.

* * * *

Cm. Hudson’s motion to approve the February 28, 2006 minutes as corrected was seconded by Cm. Livingstone and passed 4-0. Cm. Perkins abstained.

* * * *

Resolution No. 2006-37 – Approving the Doshi Large Family Day Care.

Resolution No. 2006-38 – Approving the Borrowing of Funds by the San Ramon Redevelopment Agency from the California Statewide Communities Development Authority and Providing Other Matters Thereto.

Resolution No. 2006-39 - Authorizing Payment of $50,918.34 to Contra Costa County Elections Division for the November 8, 2005 Consolidated Election.

Resolution No.2006-40 – Approving the City of San Ramon’s Application for Grant Funds for the Per Capita Grant Program under the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 for the Forest Home Farms Guest House Renovation Project (Capital Improvement Program Project 5434) and Restroom / Parking Lot Expansion Project.

Resolution 2006-41 – Approving the City of San Ramon’s Application for Grant Funds for the Roberti-Z’berg-Harris Urban Open Space and Recreation Program Under the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 for the San Ramon Central Park Play Structure Safety Upgrade Project (CIP 5442) in an Amount of $133,062.

Cm. Livingstone’s motion to approve consent calendar items 8.1 through 8.6 was seconded by Cm. Hudson and
passed 5-0.

* * * *

The City Clerk noted that there were no items of unfinished business.

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The City Clerk noted that there were no items of new business.

* * * *

City Manager Herb Moniz reported that he had no comments.

* * * *

Vice Mayor Rowley announced that the Police Department and Golden Skate are presenting the 2006 Character Counts! skate nights on Monday, March 27, 2006 and Wednesday, April 5, 2006, from 6:30 p.m. to 8:30 p.m. She also reported that the Character Counts! movie night is scheduled for Thursday, March 16, 2006, at the movie theatres in Blackhawk at 7:30 p.m. The cost is $10.00 per person and includes a movie ticket, popcorn and a soda. She encouraged the community to participate.

Cm. Hudson reviewed an editorial which appeared recently in the Tri-Valley Herald. He discussed the focus of Measure J and the higher housing densities which will result. He added that houses will be added whether the Urban Limit Line is increased or whether the houses are located inside city limits. One complaint from other cities regarding Measure J is that the county supervisors moved the Urban Limit Line selected by the voters in 1992. He strongly urged the Council to closely study Measure J and any corresponding transportation improvements or programs. He added that San Ramon is in good shape because the City did it right by following their General Plan.

Mayor Wilson noted that San Ramon voted against "Shaping our Future" so that the City could control its own growth.

Cm. Livingstone provided a spring training update for the Oakland A’s. He said that they look like a championship team with great pitching and an outstanding starting line-up.

Cm. Perkins requested a spring training report for the Giants from the City Manager.

Mr. Moniz said that he will report completely at the next Council meeting.

There being no further business, Mayor Wilson adjourned the meeting at 8:18 p.m. to three closed sessions.

The City Council convened in closed session pursuant to Government Code §54957.6 for the City Council to meet with its labor negotiators Jeff Eorio, Greg Rogers and Cheryl Mitchell Wade, concerning negotiations with SEIU Local 790. The Council met in closed session pursuant to Government Code §54957 to evaluate the position of City Attorney. The Council also met in closed session pursuant to Government Code §54957 to evaluate the position of City Manager.

At 9:43 p.m., Mayor Wilson reported that no action was taken by the Council on any of the three closed session items.

There being no further business, Mayor Wilson adjourned the meeting at 9:45 p.m.

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

Approved  at the March 28, 2006 City Council meeting, 5-0.