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 8, 2008 at 6:05 p.m. in the San Ramon Community Center, 12501 Alcosta Boulevard, Mayor Wilson presiding.

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

STAFF PRESENT: City Manager Herb Moniz, Acting City Attorney Bob Saxe, Police Chief Scott Holder, Planning/Community Development Director Phil Wong, Planning Services Manager Debbie Chamberlain, Parks and Community Services Director Jeff Eorio, Associate Planner Shinei Tsukamoto, Finance Division Manager Eva Howard, and City Clerk Patricia Edwards.

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At 6:05 p.m., the Council met in Closed Session pursuant to Government Code: (1) §54956.9 (a) for City Council to meet with City Attorney regarding existing litigation: Sierra Club v. City of San Ramon, et al; (2) §54956.9 (a) for City Council to meet with City Attorney regarding existing litigation: East Bay Regional Park District v. City of San Ramon et al; (3) §54956.9 (a) for City Council to meet with City Attorney regarding existing litigation: Lindsey, James S. v. City of San Ramon (C-07-01928); and (4) §54956.9 (a) for City Council to meet with City Attorney regarding existing litigation: City of San Ramon v. Doug Burr.

At 7:05 p.m., Mayor Wilson reconvened the meeting. All Councilmembers were in attendance. Mayor Wilson reported that no action was taken by the City Council on Closed Session items 1, 2 and 4. For Closed Session item 3, Councilmember Perkins moved that the Mayor be authorized to execute a settlement agreement in the case of James S. Lindsey v. the City of San Ramon providing for payment of an amount recommended by the Director of Engineering Services in full satisfaction of all claims against the City of San Ramon and in a form approved by the City Attorney. Cm. Perkins’ was seconded by Vice Mayor Livingstone and passed 5-0.

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Character Counts! Essay Contest Winners Andrew Jester, Jenny Meisel and Matt Snyder from Montevideo School led the 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 that there were none.  The City Clerk noted that there were no changes or additions to the Boards, Committee and Commission meetings listed on the January 8, 2008 agenda.

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(#4.1) Recognition of Character Counts! Essay Contest Winners: Andrew Jester, Jenny Meisel and Matt Snyder.

Officer Abe Medina reviewed the concepts of the Character Counts! Program and introduced the Character Counts! Essay contest winners from Montevideo Elementary School. Andrew Jester, Jenny Meisel and Matt Snyder read their winning essays. Mayor Wilson presented each of them with a certificate and Officer Medina presented each of them with a journal. Mayor Wilson thanked the teachers for their dedication.

(#4.2) Recognition of the California Marching Band and Colorguard for Taking First Place at the Northern California Band Association State Marching Band Tournament of Champions.

Band Director Kent Johnson thanked the Council for this recognition on behalf of his students, parents and staff. There are 120 students in the California Marching Band and Colorguard. They practice 3-4 times per week and all day Saturday. They competed in 6 competitions this year and generally place in the top three in every competition. He recognized the parents for helping with uniforms, food, and transportation. Ten band members who were present were recognized. Mayor Wilson presented a certificate to Mr. Johnson and expressed the Council’s appreciation of his dedication.

Police Chief Scott Holder provided the introduction and noted that this team has accomplished several feats that no other California High School football team had achieved. They won nine regular season games and two play-off games. The team was named the Top Division One Scholastic Team with a 3.20 GPA. Coach Tony Sanchez was named the Contra Costa County Coach of the Year. Additionally, the team raised $1,931 to assist the family of Greg Ballard, a San Leandro football player who was tragically killed, with funeral expenses.

California High School Principal Mark Corti thanked the San Ramon community for supporting the team. He also thanked the parents for these fine, young men.

Defensive Line Coach Kenny Sanchez stated that Coach Tony Sanchez was attending a coaching conference and unable to attend the Council meeting. He thanked Principal Corti, school staff, parents, and the community for their support. The name of each member of the football team was announced. They will receive individual certificates. Mayor Wilson thanked the team for adding a great sense of accomplishment to the City. He recognized defensive linebacker Nick Rosato, first team defensive safety Alex Spalliero, and second team defensive linebacker Osayaba Ona-Enagbare.

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Mayor Wilson requested a break at 7:43 p.m. The meeting reconvened at 7:53 p.m. with all Councilmembers in attendance.

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

Jim Blickenstaff, resident, spoke as a Sierra Club representative. Claims that the Sierra Club enters into lawsuits to enrich the organization were false as this is prohibited by the Club’s by-laws and policies. He added that, when a public interest is served, a judge can direct the opposition to pay the Club’s attorney fees. In Dougherty Valley, the East Bay Community Fund got a small endowment for environmental issues. He admonished the Council for using the dais to bully speakers. He suggested that a forum on Smart Growth be presented via Channel 30 as this would better serve the public than mischaracterizing the issues and the motivations of people trying to improve the community.

Donna Kerger, resident, encouraged people to attend the San Ramon Historic Foundation’s Crab Feed on February 9, 2008 at Dougherty Station Community Center.

Pat Boom, resident, spoke representing the San Ramon Historic Foundation. The Foundation raises funds for Forest Home Farms. This year’s Farmers’ Market provided fantastic publicity for the Farms. She reported that the most frequently asked question was when the Glass House would be completed. The Foundation has raised approximately $20,000 to help furnish the House but can not proceed until the House is completed. She strongly urged the Council to fund the last phase of the restoration.

Dale Barley, resident, said that he is amazed by what San Ramon offers its residents. He requested that the Council pursue additional funding to complete the Glass House and add another "jewel to San Ramon’s crown".

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Cm. Rowley’s motion to approve the December 11, 2007 minutes with the correction noted by Cm. Perkins was seconded by Cm. Perkins and passed 5-0.

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Jim Gibbon and Roz Rogoff requested that items 8.2 and 8.3 be pulled for public comment.

(#8.4) Minute Order No. 2008-01 – Authorizing the Mayor to Attend the United States Conference of Mayors in Washington, D.C. on January 23-25, 2008.

(#8.5) Acceptance of Work by O’Grady Paving, Inc. on Crow Canyon Corridor Improvement - Phase II , CIP Project Nos. 7114, 7127, 7129, 7130, 8125 and 8168 as Complete and Authorize the City Clerk to File a Notice of Completion with the County Recorder's Office.

(#8.6) Resolution No. 2008-01 – Accepting Certain Landscape Dedications and Certain Landscape Improvements in Subdivision 8564 for Maintenance (Shapell Industries – Coronado at Gale Ranch).

(#8.7) Resolution No. 2008-02 – Accepting Certain Landscape Dedications and Certain Landscape Improvements in Subdivision 8688 for Maintenance (Shapell Industries – Gallery at Gale Ranch).

(#8.8) Resolution No. 2008-03 – Accepting Certain Roadway and Storm Drain Dedications and Improvements in Subdivision 8134 for Maintenance (Shapell Industries – Summit Bridge at Gale Ranch).

(#8.9) Resolution No. 2008-04 – Accepting Certain Dedications and Certain Landscape Improvements in Parcel E of Subdivision 8682 (formerly Parcel Q of Subdivision 7984) Installed as Part of Subdivision 8564 for Maintenance (Shapell Industries – Coronado at Gale Ranch).

(#8.10) Resolution 2008-05 – Accepting Certain Roadway and Drainage Improvements in Subdivision 7961 as Complete, Accepting Certain Public Utility Easements, Releasing the Project Surety and Accepting a One Year Warranty Bond (Lennar Greystone Ranch 2).

(#8.11) Resolution No. 2008-06 – Ratifying the San Ramon Valley Fire Protection District’s Building and Fire Safety Standards (District Ordinance 22)

Councilmember Perkins’ motion to adopt consent calendar items 8.1 and 8.4 through 8.11 was seconded by Cm. Hudson and passed 5-0.

(#8.2) Ordinance No. 400 –Approving Development Agreement Amendment (DA 07-850-001) – Third Amendment to That Portion of the Chevron Park Annexation and Development Agreement By and Between Sunset Building Company, LLC and the City of San Ramon Assigned To and Assumed by Sunset Building Company, LLC Relative to the City Center Project.

(#8.3) Ordinance No. 401 – Approving Development Agreement Amendment DA 07-850-002 – Fifth Amendment to the Annexation and Development Agreement By and Between the City of San Ramon and Sunset Development Company, Granada Sales, Inc., SDC 7, Annabel Investment Company, Sunset Land Company, LLC, Sunset Building Company, LLC and Alexander Properties Company Relative to the Development Known as Bishop Ranch.

Acting City Attorney Bob Saxe said that the Council can address items 8.2 and 8.3 at the same time but that the Council must take separate action on these items.

Jim Gibbon, resident, representing San Ramon for Open Government (SROG) addressed the project’s financial issues. He stated that the financial agreement between Sunset and the City exists but he was told that it is not available for review until the Development Agreements were approved. Mr. Gibbon asked what will happen to the seven and eleven acre parcels which he estimates are worth $60-80 million as a result of being rezoned to mixed use. He asked if land will be given to Sunset Development and if the City will get money for that land. Other questions included: how Chevron benefits from the Project; who will own the Civic Center and Transit Center; who will pay for it; is any land being swapped; is the project viable; has an audit been done; what are the tax rebates, in lieu fees, property tax forgiveness, and future tax sharing. He questioned Sunset’s ‘equitable interest’. He asked what happens if the project fails. He recommended that the financial agreement be analyzed and audited by an independent auditor and that the residents have access to the financials and the opportunity to vote on this Project. The City has an obligation to be public with this information and it should be made available to the public before the Council approves the final Development Agreement.

Vice Mayor Livingstone asked Mr. Gibbon what financial issues were of concern to him. Mr. Gibbon responded that he is unclear about what is happening with the City owned parcels and the agreements concerning tax rebates, in lieu fee forgiveness, property tax relief, future sales tax sharing. He asked who will pay for the impacts for the Norris Canyon ramp, the widening of Bollinger Canyon, lights, and mitigation of City streets. He asked what the Project will cost the City. He expressed concern about the viability of the eight story buildings and the 7,500 parking spaces. If the City guarantees the development, will the City be financially healthy at the end of the Project. He also had environmental concerns.

Cm. Hudson noted that Norris Canyon ramp will be paid with Measure C funds. He asked Mr. Gibbon which eight story buildings concerned him. Mayor Wilson asked Mr. Gibbon about his environmental concerns. Mr. Gibbon stated that he is the LEED (Leadership in Energy and Environmental Design) architect for a large corporation and is very knowledgeable about mitigation and Environmental Impact Reports (EIR). If five of the seven items noted in the EIR can not be mitigated, then the Project must be more important to the City than its environmental impacts. He suggested that one mitigation option is to decrease the size of the Project. He stated that the Project did not study the real impacts on the community for traffic, air quality, housing, open space, and that a lot can be done to mitigate these problems.

Cm. Hudson stated that the model which was used for traffic and transportation was completed by Contra Costa County Transportation Authority (CCTA) in 2007 and that the City is not ignoring the Project’s impacts. Mr. Gibbon stated that the current EIR is an adjustment to a prior EIR done for a previous city center plan and is not valid. The Project in its current design is too large and should not be built at this time. He asked the Council to share the financial arrangement so that residents can understand that the Project is not a present or future detriment to the City.

Roz Rogoff, resident, expressed concern about the Development Agreements and the land transfer from Sunset Development to the City. She asked who will own the land when it is transferred. She is skeptical about the trade-offs with Chevron and if the land is being changed for zoning or usage.

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Mayor Wilson requested a break at 8:42 p.m. The meeting reconvened at 8:59 p.m. with all Councilmembers in attendance.

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Mayor Wilson closed the public comment.

Planning/Community Development Director Phil Wong clarified the relationship between the Development Agreement and Chevron. Chevron Park was built by the county and annexed into the City in the 1980’s. Chevron revised the master plan for its 100 acres, subdivided it, and Sunset bought the undeveloped property. He noted that Development Agreements by law stay with the land. Cm. Perkins said that BR1 consists of three buildings, a vacant lot, and parking. All of the developed land outside the Chevron fence is owned by Sunset or the City. Sunset currently owns the 3.5 acre site designated for the City Hall, Transit Center and library. It is expected that the title of this land will be transferred to the City and the City will own the land that these buildings occupy.

Mayor Wilson stated that the Council’s charge is to make sure that their actions protect the City. He added that the City always planned to have an outside analysis for the Project and that this analysis will be made available in a public forum.

Cm. Perkins requested an explanation from staff on the effect of a yes or no vote on the two ordinances. Planning Services Manager Debbie Chamberlain stated that the purpose of a Development Agreement (DA) is to provide certainty throughout the development process. It vests those approvals such as the subdivision map, the development plans, the land use permits for the terms of the DA. The DA is in effect for ten years and can be extended for two five-year extensions. It guarantees that the rules and regulations which are in place at the time of the approval will not change as the project builds out. The DA does not transfer land or assets. Cm. Perkins asked if there is a difference between item 8.2 and item 8.3. Ms. Chamberlain indicated that item 8.2 includes the properties south of Bollinger Canyon and item 8.3 covers the properties north of Bollinger Canyon.

Cm. Rowley asked Mr. Gibbon if he had talked with staff. Mr. Gibbon responded that he read the staff reports but is concerned about what the City owns, the guarantees, Project phasing, and the vested rights and scopes which will be given by the DAs. Cm. Rowley asked Mr. Gibbon if he would discuss his concerns with staff. Mr. Gibbon responded that he would. He wants to know how the City will make sure that this is a good project. He remarked that perhaps this Project was not a ‘done’ deal. Mr. Gibbon described his experience in applying the LEED program to Safeway projects.

Mayor Wilson agreed that it is in everyone’s best interest to consider the carbon foot print, energy efficiency, saving money, and the environment. He thanked Mr. Gibbon for raising these concerns on behalf of less vocal residents.

Cm. Rowley’s motion to continue items 8.2 and 8.3 to a special Council meeting scheduled for January 15, 2008 at 7:00 p.m. at the Council Chamber was seconded by Cm. Perkins and passed 5-0.

Cm. Perkins asked the City Manager if a complete financial agreement exists between Sunset et al and the City. Mr. Moniz responded that there is not. He explained that a preliminary financial analysis was done by staff. Keyser Marston Associates provided advice on what projects were successful, Project costs, retail and land use tax generation, cost of construction, cost of infrastructure, and applied this information to several scenarios. After the preliminary analysis, staff met with potential developers. This information was presented to Council in Closed Session because this information is proprietary. The City selected Sunset Development and developed an idea for a project that would be financially successful based on retail and land uses. There is a lot of preliminary information but no final agreement has been reached. The information will be provided to Council when there is a Project. Cm. Perkins asked if there will be an opportunity to have an independent company report to the Council on the nature of the agreement and the project’s viability. Mr. Moniz responded affirmatively.

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The item was introduced by Jeff Eorio, Parks and Community Services Director. Shirley Ernest, Chair of the Senior Citizen’s Advisory Committee presented the report. This report was prepared by the Senior Advisory Committee with input from staff and was approved by the Committee on November 5, 2007. This report was reviewed by the Parks and Community Services Commission on November 14, 2007 who recommended it be presented to the City Council. Mrs. Ernest reviewed the 2006-2007 Goals and Accomplishments which included: Transportation, Nutrition, Facility Use, Disaster Preparedness and Affordable Senior Housing. She reported that the major areas to be addressed in 2007-2008 are to continue the emphasis on Transportation, Nutrition, Disaster Preparedness, and Program and Facility Use. Mrs. Ernest thanked the Parks Department staff for their dedication. She thanked the Council for approving the Senior Center expansion and reported that the Project is on schedule. Cm. Rowley thanked Mrs. Ernest for her work as chair and for revitalizing the Committee.

Cm. Hudson’s motion to receive the report was seconded by Vice Mayor Livingstone and passed 5-0.

The staff reports were presented by Shinei Tsukamoto, Associate Planner. After receiving numerous calls and inquires from residents and business owners in early 2007 concerning code enforcement activities of garage sale signs, commercial mascots, and portable storage units kept on residential driveways, staff scheduled the matter for discussion before the Policy Committee on May 23, and June 27, 2007. Staff noted that either the Zoning Ordinance or the Municipal Code would need to be amended to address these items in order to provide proactive enforcement. The Policy Committee reviewed and discussed these issues including the enforcement practice and directed staff to proceed with amending the Zoning Ordinance. The Policy Committee requested that staff assure the City Council that the new provisions could be enforced.

Staff prepared a draft text amendment for consideration by the Planning Commission on October 2, 2007. The Planning Commission held a duly noticed public hearing, took public testimony, and continued the item to their November 6, 2007 meeting. At that meeting, the Commission recommended that the City Council adopt a portion of the proposed Zoning Ordinance Text Amendments which includes garage sales, garage sale signs, reader boards, and portable outdoor storage units. The Commission did not support the text amendment pertaining to commercial mascots/sign twirlers. Staff will be returning to the Policy Committee for further discussion regarding the recommendation by the Planning Commission and enforcement procedures.

Cm. Hudson’s motion to introduce Ordinance No. XXX (next in line) Amending the San Ramon Zoning Ordinance (Text Amendment 07-410-002) and waive the reading was seconded by Vice Mayor Livingstone and passed 5-0.

Cm. Hudson’s motion to introduce Ordinance No. XXX (next in line) Amending the San Ramon Zoning Ordinance (Text Amendment 07-410-002) and waive the reading was seconded by Vice Mayor Livingstone and passed 5-0.

Mayor Wilson opened the public comment for item 10.2. There were no requests for public comment. Mayor Wilson closed the public comment for item 10.2.

Mayor Wilson opened the public comment for item 10.3. There were no requests for public comment. Mayor Wilson closed the public comment for item 10.3.

Councilmembers had no comments on the Portable Outdoor Storage Units (item 10.2).

Cm. Hudson questioned the staff report’s statement that garage real estate sale signs cost $150. He suggested a reduction in the offense fee to decrease the stockpile of collected signs.

Cm. Perkins requested that the garage sale ordinance be amended to include the provision of a free on-line self registration for garage sales. This procedure would provide information regarding sign requirements, placement, and the timing and frequency of sales. Providing an on-line registration would be a useful service to residents and would not require a significant time commitment from staff once implemented.

Vice Mayor Livingstone concurred with Cm. Perkins regarding the registration. He suggested that the sign dimensions simply state a size limit of 24" x 36".

Acting City Attorney Bob Saxe explained the ordinance process. If staff provides language revisions to the ordinance at the next regular Council meeting, the ordinance could be adopted two weeks later.

Cm. Perkins proposed two amendments: limit the sign to six square feet or and three feet in any one dimension; and specify the time when signs may be displayed and removed.

Planning Services Manager Debbie Chamberlain stated that the ordinance limits the time during which the signs may be displayed not the hours of the sale. Cm. Perkins withdrew his proposed amendment concerning time limits.

Cm. Rowley noted that there may be no need for signs in the future as the on-line registration will provide all the needed information.

Vice Mayor Livingstone requested that code enforcement be available including Sunday.

Mayor Wilson continued the items to the January 22, 2008 Council meeting.

Finance Division Manager Eva Howard stated that the City received a clean report and fully implemented Governmental Accounting Standards Board (GASB) 34 which required the reporting of all prior year infrastructures. She introduced Kathryn Beseau with Moreland and Associates, Inc. who presented the report.

Ms. Beseau thanked City staff for their professionalism and cooperation. She reviewed the audit procedures and noted that the standards have changed regarding what must be reported to the governing board. There were no significant deficiencies. She noted that the City’s overall financial health is very positive. Net assets increased $30 million over the prior year as a result of facilities donated by developers. The General Fund balance is approximately $35 million. She advised the Council that a new suite of audit standards will apply next year. These standards require the auditors to identify the areas of risk and the areas of material exposure to risk. Mayor Wilson responded that raising the standards gives everyone a higher level of security.

Cm. Perkins thanked Moreland and Associates for their expertise and analysis. He acknowledged the work of the Finance Department staff.

Mayor Wilson questioned the change in expenditure and program revenues. Ms. Howard explained that the program revenue is shown by function and the increase is due primarily to the addition of donated assets in Dougherty Valley.

Cm. Perkins’ motion to accept the report was seconded by Vice Mayor Livingstone and passed 5-0.

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City Manager Moniz complimented Ms. Rogoff for attending the entire Council meeting and presenting a balanced view of the City and Council. Mr. Moniz thanked the Council and City staff for an excellent 2007. Staff reacted professionally to many challenges. He noted that there may be some ‘belt tightening’ next year as a result of the state’s financial situation.

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Cm. Hudson clarified that the Dougherty Valley small endowment referenced by Mr. Blickenstaff earlier in the meeting amounted to $500,000. Regarding the City Center’s design, he stated that smart growth is high density. The cornerstone of smart growth for San Ramon and Contra Costa County is the urban limit line as voted on in Measure J. The City faces new regional housing assessments every seven years. Decreasing housing density is contrary to the policy of the Metropolitan Transportation Commission and the Association of Bay Area Governments.

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Mayor Wilson invited residents to support the San Ramon Historic Foundation by attending the annual "All You Can Eat" Crab Feed on February 9, 2007 at the Dougherty Station Community Center. He encouraged residents to participate in the "Hats Off America" Blood Drive scheduled for January 13, 2007 from 10:00 am to 2:00 pm at the San Ramon Community Center. He announced that the Contra Costa Elections Department is looking for poll workers for the February 5, 2007 election. Several types of positions are available and workers are needed from 6:00 a.m. to 9:00 p.m. Also available is the County’s "Youth with a Vision" program for high school student poll workers. The California High School Athletic Boosters are sponsoring "Grizzly Madness 2008" a fun filled night benefitting the athletic teams at Cal High. The event includes dinner, dancing, live and silent auctions on April 26, 2008 at Canyon View Dining Hall.

At 10:18 p.m., there being no further business, Mayor Wilson adjourned the meeting.

Approved at the January 22, 2008 City Council meeting 4-0, Wilson absent.