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HomeMy WebLinkAbout4.01 Draft CC 05-15-2007 Min DRAFT MINUTES OF THE Crn' COUNCIL OF THE ern' OF DUBLIN RE6ULAR MEETlN6 - MAY 15. 2007 CLOSED SESSION A closed session was held at 6:30 p.m., regarding: CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION Government Code section 54956.9, subdivision a L Name of case: Dublin v. Ralph Gil, et al- Alameda County Superior Court Case No. VG05241773 IL Name of Case: Schlicker v. State of Cali fomi a, Alameda County Superior Court No. VG03-134125 (Consolidated w/ VG04-140656) IlL CONFERENCE WITH REAL PROPERTY NEGOTIATORS Government Code section 54956.8 Property: Dublin Square Shopping Center, 11759 Dublin Boulevard Agency Negotiator: Richard Ambrose, City Manager Negotiating Parties: All existing lessees and tenants Under Negotiation: Price and terms of leases/tenancies . A regular meeting of the Dublin City Council was held on Tuesday, May 15,2007, in the Council Chambers of the Dublin Civic Center. The meeting was called to order at 7 :00 p.m., by Mayor Lockhart. . ROLL CALL PRESENT: Councilmembers Hildenbrand, Oravetz, and Sbranti and Mayor Lockhart. ABSENT: Councilmember Scholz . PLEDGE OF ALLEGIANCE The pledge of allegiance to the flag was recited by the Council, Staff and those present. . DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 178 6 DRAFT REPORT ON CLOSED SESSION ACTION Mayor Lockhart advised that there was no reportable action. . INTRODUCTION OF NEW EMPLOYEE 7:01 p.m. 3.1 (700-10) Administrative Services Director Paul Rankin introduced new Finance Manager, Vivian Gong. The Council welcomed Ms. Gong to Dublin. .. PUBLIC WORKS PRESENTATION & PROCLAMATION 7 :02 p.m. p.m. 3.2 (330-40/610-50) Mayor Lockhart read and presented a Proclamation declaring May 20-26, 2007 Nation Public Works Week in the City of Dublin and called upon all citizens and civic organizations to acquaint themselves with the issues involved in providing our public works and to recognize the contributions which public works officials make every day to our health, safety, comfort and quality of life. Public Works Director Melissa Morton made a presentation which updated the City Council on the major Capital Infrastructure Projects planned for the coming year. The 1- 580/Fallon Road Interchange and Dublin Boulevard/Dougherty Road, Intersection Improvement projects were highlighted, as well as development review and the NPDES program developments. Cm. Sbranti asked if we have a rotating schedule or the process for streets going through slurry seal and overlay. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 179 DRAFT Ms. Morton explained that we do regular testing and actually drive the streets and incorporate this with other measures into our pavement management system. Slurry seal will usually sustain about a 6 year life. The need to do an overlay is a little more subjective. There is also a page through the web site where citizens can report specific locations that need attention, or they can give us a call. Cm. Oravetz asked if we can do patching. Ms. Morton stated yes, but this is usually viewed as a stopgap measure. Mayor Lockhart asked about a situation where DSRSD did some work on the west end of Dublin Boulevard where they patched it, and asked if we will go in and reseal the street? Ms. Morton explained that the City required DSRSD to do a temporary patch to make sure we don't get seepage over the trench. City Engineer Mark Lander explained that as part of the Schaefer Ranch project there will be work done on the Dublin BoulevardlHansen Drive intersection. Mayor Lockhart asked about holes in parking lots. Does the City get involved? She specifically mentioned the parking lot at Big Lots. Ms. Morton stated if it is a civic facility parking lot, definitely. With regard to private parking lots, this generally is a zoning ordinance code enforcement issue. Planning Manager Mary Jo Wilson stated City Staff is currently working with Big Lots to patch and repair their lot. .. Public Comments 7:16 p.m. 3.3 There were no comments from the public related to non-agendized items. .. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 180 DRAFT CONSENT CALENDAR 7:16 p.m. Items 4.1 through 4.12 Vm. Hildenbrand pulled Item 4.6 related to Off-Site Improvements for Arnold Road and Martinelli Way (IKEA Property). Cm. Sbranti pulled Item 4.4 related to rejecting the single bid for the San Ramon Road Soundwall Maintenance. City Manager Richard Ambrose pulled Item 4.10 related to a Settlement Agreement with Granite Construction Company regarding the Dublin Boulevard Widening Project from Village Parkway to Sierra Court and advised that a revised Agreement had been distributed. On motion of Cm. Oravetz, seconded by Cm. Sbranti, and by unanimous vote (Cm. Scholz absent), the Council took the following actions: Approved (4.1) Minutes of Regular Meetings of April 3, and April 17, 2007; Waived second reading (4.2 600-60) and adopted ORDINANCE NO.9 - 07 PRE ZONING THE CASAMIRA V ALLEY/MOLLER RANCH PROJECT SITE AND THE TIPPER PROPERTY TO THE PLANNED DEVELOPMENT DISTRICT AND APPROVING A RELATED STAGE 1 DEVELOPMENT PLAN P A 03-060 and ORDINANCE NO. 10 - 07 PREZONING THE VARGAS PROJECT SITE TO THE PLANNED DEVELOPMENT DISTRICT AND APPROVING A RELATED STAGE 1 DEVELOPMENT PLAN PA 03-060 DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 181 DRAFT Waived second reading (4.3 450-20) and adopted ORDINANCE NO. 11 - 07 ADDING CHAPTER 8.34 TO THE DUBLIN MUNICIPAL CODE (ZONING ORDINANCE) ESTABLISHING THE SCARLETT COURT OVERLAY ZONING DISTRICT AND ADDING SECTION 8.104.030.J TO THE DUBLIN MUNICIPAL CODE (ZONING ORDINANCE) RELATING TO THE SCARLETT COURT OVERLAY ZONING DISTRICT SITE DEVELOPMENT REVIEW AND AMENDING THE ZONING MAP TO ADD AN OVERLAY ZONING DISTRICT DESIGNATION TO THE SCARLETT COURT AREA P A 03-063 Adopted (4.5 600-35) RESOLUTION NO. 65 - 07 AWARDING CONTRACT NO. 07-06 2006-07 ANNUAL STREET OVERLAY PROGRAM TO EL CAMINO PAVING, INC. ($548,506.99) Adopted (4.7 410-40) RESOLUTION NO. 66 - 07 APPROVING PARCEL MAP 8262 (IKEA PROPERTY, INC., ALAMEDA COUNTY SURPLUS PROPERTY AUTHORITY AND PK SALE, LLC) Adopted (4.8 600-60) RESOLUTION NO. 67 - 07 APPROVING IMPROVEMENT AGREEMENT ASSOCIATED WITH TRACT 7540, PHASE IV SILVERA RANCH (PFEIFFER RANCH INVESTORS II, INC.) DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 182 DRAFT Received (4.9 330-50) Financial Reports for the Months of March and April, 2007; Adopted (4.11 600-30) RESOLUTION NO. 68 - 07 APPROVING A PROPERTY MANAGEMENT AGREEMENT WITH STRAFACE & RIELE COMMERCIAL REAL ESTATE FOR PROPERTY MANAGEMENT SERVICES FOR THE PROPERTY LOCATED AT 11759 DUBLIN BOULEVARD (DUBLIN SQUARE SHOPPING CENTER) and approved Budget Change; Approved (4.12 300-40) the Warrant Register in the amount of $1,388,997.22. Item 4.4 - Cm. Sbranti clarified we had one bid and it was double the budgeted amount. By rebidding, do we think we will get a better bid? Public Works Director Melissa Morton responded we believe the high bid was afunction of what was out there for bid at that time. Staff has spoken to a couple of contractors and they have indicated they are interested in now bidding because of the timing. Item 4.6 - Vm. Hildenbrand noted she had seen in some of the paperwork a street named Ikea Way, and asked about this. City Engineer Mark Lander stated the name will be changed to be incorporated within the new project. Mayor Lockhart stated she thought we were going to hesitate to name streets after specific businesses because of the possibility of change. She referenced Sybase Way, but stated this is a driveway. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 183 DRAFT City Manager Richard Ambrose advised that this is actually a driveway also, albeit a very large driveway. Item 4.10 - Staff advised that a revised Settlement Agreement had been given to the City Council and changes were highlighted. On motion of Vm. Hildenbrand, seconded by Cm. Sbranti, and by unanimous vote (Cm. Scholz absent), the Council Adopted (4.4 600-35) RESOLUTION NO. 69 - 07 REJECTING BID FOR CONTRACT NO. 07-08 SAN RAMON ROAD CONCRETE SOUNDW ALL MAINTENANCE and directed Staff to rebid the project; Adopted (4.6 820-20) RESOLUTION NO. 70 - 07 ACCEPTANCE OF IMPROVEMENTS ASSOCIATED WITH PARCEL MAP 7714 OFF-SITE IMPROVEMENTS FOR ARNOLD ROAD AND MARTINELLI WAY AND APPROVING REGULATORY TRAFFIC CONTROL DEVICES (IKEA PROPERTY, INC.) Approved (4.10 600-35) a (revised) Settlement Agreement between the City of Dublin and Granite Construction Company, and approved a $375,000 Budget Change. .. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 184 DRAFT PUBLIC HEARINGS ALCOSTA SHELL SERVICE STATION REZONE FROM C-N, NEIGHBORHOOD COMMERCIAL TO C-2~ GENERAL COMMERCIAL P A 06-013 7:22 p.m. 6.1 (450-30) Mayor Lockhart opened the public hearing. Associate Planner Mamie Nuccio presented the Staff Report and advised that this item is for City Council consideration of a request to Rezone an existing property at 8999 San Ramon Road to allow for the construction/expansion of the existing Alcosta Shell Service Station, which is located adjacent to the San Ramon Village Plaza commercial center. In order for the property owner to modernize the existing service station, the property must be rezoned to conform to the current zoning regulations. The process for reviewing and approving a rezone request is through a recommendation by the Planning Commission to the City Council. The Planning Commission reviewed the rezone request at meetings in November, 2006 and April, 2007, and unanimously voted to adopt a Resolution recommending City Council adoption of an Ordinance approving the rezone. Ms. Nuccio stated in conclusion that the proposed reconstruction and expansion of the Alcosta Shell Service Station will be an improvement to the existing service station. The new mini-mart, car wash, canopy, fuel dispensers, landscaping and other associated site improvements will enhance the image of the adjacent shopping center and residential development. The proposed project, as conditioned, is consistent with the Dublin General Plan and the proposed Zoning District in which the project site would be located and represents an appropriate project for the site. Mayor Lockhart stated she felt the project looked beautiful. She thanked the Planning Commission in guiding them through the process. No testimony was received by any member of the public relative to this issue. Mayor Lockhart closed the public hearing. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 185 DRAFT On motion of Vm. Hildenbrand, seconded by Cm. Sbranti, and by unanimous vote (Cm. Scholz absent), the Council waived the reading and INTRODUCED an Ordinance approving a Rezone for the Alcosta Shell Service Station property located at 8999 San Ramon Road from C-N, Neighborhood Commercial to C-2, General Commercial. .. PUBLIC HEARING DUBLIN GATEWAY MEDICAL CENTER BUILDING 3 HOSPITAL AND GARAGE P A 06-026 - CEQA ADDENDUM, PLANNED DEVELOPMENT REZONE AND STAGE 1 AND 2 DEVELOPMENT PLAN, CONDITIONAL USE PERMIT, SITE DEVELOPMENT REVIEW AND DEVELOPMENT AGREEMENT 7:29 p.m. 6.2 (410-30/600-60) Mayor Lockhart opened the public hearing. Associate Planner Mamie Nuccio presented the Staff Report and advised that the City Council will consider a proposal to construct a 6-story, 168,000 square foot, 100-bed hospital building and a 5-level parking structure (4 levels above grade) on approximately 3.13 acres of land within the Dublin Gateway Medical Center (also a portion of the Koll Dublin Corporate Center) at the comer of Dublin Boulevard and Glynnis Rose Drive. Ms. Nuccio advised that representatives from Triad Partners were present to answer any questions. Joe Carroll with Triad Partners thanked Mamie and City Staff who have worked hard on this project over the last year. They are excited about bringing an integrated healthcare system to Dublin. Mayor Lockhart clarified they are seeking approval for an either/or application; medical center building or hospital. She asked about a time line of when they might know? Mr. Carroll stated the approval of medical office building is in place and with this approval they would know fairly quickly. Cm. Sbranti stated the Ordinance comes back in 3 weeks for a second reading and potential adoption. He asked if they would know by then. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 186 DRAFT Mr. Carroll responded that it would probably take more time than that. Phil Hayes, Oakland stated he represented SEIU (Service Employees International Union, United Health Care Workers West (SEIU-UHW), a union of over 140,000 California healthcare workers. He submitted a letter indicating serious issues in the initial study which should be addressed in a supplemental EIR. He asked that we delay approval until a supplemental EIR is prepared. They feel the only prudent course for the City is to defer action on the Dublin Gateway Medical Center Building 3 Hospital and Garage until a supplemental EIR is prepared that fully complies with CEQA. The Initial Study is lacking in many essentials and cannot provide a legally defensible basis for approval of the proj ect. Barry Lubovisky stated either/or is a very interesting proposal to contemplate. This should be a signal that you want to know details. The Building & Construction Council, with 28 local unions, stand with the SEIU and with a project this complex Dublin has the responsibility and the opportunity to give detail and insight that the project meets full potential to serve the community. He requested that the City put in place a supplemental EIR for this project because it differs significantly from past approvals. Gary Sloan, San Ramon Regional Medical Center CEO stated he hopes the City Council will consider 6 issues. 1) should evaluate if there are unmet health needs and study perceived deficiencies 2) degree of hospital services 3) builder experience (complex regulations) could be dysfunctional 4) ambiguity (unclear from current drawings it is unclear either/or) It appears that the builder is seeking approval to construct a hospital dressed as a Medical Office Building without the basic components of a working hospital. 5) hospital deficiencies - not enough detail in drawings 6) community impact issues and facility circulation. In summary, Mr. Sloan stated there are too many unanswered questions to move forward and approve this project today. He urged the Council to engage a knowledgeable health care expert to assist deliberations and evaluation of this project. Darin Moss, a resident of Sandyford Court which is just north of this site, expressed concern about the issue of duel entitlement. He was aware when moving into his residence of both possibilities for the site. Addition of a hospital is a welcome benefit for the community, but he has a problem with duel entitlement. Suddenly, we want the best of all worlds. Trying to squeeze this amount of building on this land for 2 distinct DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 187 DRAFT purposes is unacceptable. We've began traveling down one path and this is the path we should proceed with. Now the builders are trying to double dip and this should be an area of concern. Bill Schaub, Planning Commission Chair, stated they spent at least 5 hours on this project. He believes they have it conditioned so that anything that comes out with regard to the eventual tenant, comes back for consideration. They would then make the proper recommendation to the City Council. Mayor Lockhart asked if the Applicant wished to respond to any of the comments. Mr. Carroll stated working with the Planning Commission and Staff they tried to address all the issues and they feel that 150 conditions address the conditions. It is exciting to have an integrated facility and the location is excellent and this third building will also be something the City can be proud of. Cm. Sbranti asked about a market analysis or what was done for them to consider this alternative. Mr. Carroll stated early on it became evident that a hospital on building 3 would integrate all the uses. They looked at different uses to make sure they are compatible. Vm. Hildenbrand asked if the empty building will be compatible with a hospital. Mr. Carroll replied yes, they feel they are compatible. Vm. Hildenbrand stated with regard to discussing CEQA, she assumes there are other approvals that the State must give in order to build a hospital. Mr. Carroll stated it is a lengthy process they will need to go through with the environmental process. They are satisfied that the reviews are satisfactory. They've opted to not go with a helicopter pad. This actually requires less parking than the medical building and has less impacts. They and Staff feel the issues have been adequately reviewed. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 188 DRAFT Cm. Sbranti discussed adequacy of space and square footage and needs and asked how they looked at this? Mr. Carroll stated they had a hospital consultant for a 100 bed facility, and other items to be included in the facility. They have a 168,000 sq ft facility approved. If they need to increase the size, this would require them to come back before the Planning Commission. Mr. Lubovisky spoke again and stated this is bazaar. Construction is not illusionary. This is a medical facility and it will have a profound impact on the community. The City Council has a right and an obligation in law and in format with an EIR report. Given the bazaar answers, he stated he was appalled. This is a medical facility and he hopes that we put in place a supplemental EIR and that we have the full light of day in this process, and hear from the community in order that this facility meets the needs of the community. This project cries out for full scrutiny and a full supplemental EIR. Mayor Lockhart closed the public hearing. Mayor Lockhart stated what she saw was a lot of people present for self-serving purposes; the union and a competing facility. They propose to give Dublin something we've never had. The Planning Commission and Staff and all the hours they've put in to develop something for our community, she saw nothing wrong with supporting this proposal. This is something our community wants and deserves. She has heard from people and they are very excited about this. A hospital is a very good use for this site. Needs have been mitigated and met. Cm. Oravetz stated there is an emotional side to this argument. He has lived here since 1970. He discussed the fact that now 37 years later we have a proposal for a hospital. It will bring 450 jobs to Dublin and 75 will be doctors. These are good things for Dublin. The architecture is beautiful. What goes inside, they'll have to plan and deal with the State. For our residents, if there was a disaster in our City, this will give us a quality of life and peace of mind that we don't have today. The Planning Commission did an excellent job. Vm. Hildenbrand mentioned jobs and discussed IKEA leaving. This was a sad loss for our community. This is an opportunity for Dublin residents, whether we get a medical building or a hospital; 450 jobs in our community is great for the City. She stated she is a DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 189 DRAFT patient of San Ramon Regional Medical Center and loves it. This is an opportunity if she has a student that breaks their arm, they can go to a small facility in Dublin. Even if it's a medical building, this is a great addition to our community. The State will identify any deficiencies if they are found and we will address them. Cm. Sbranti asked about specific instances that this could come back for further review. Ms. Nuccio stated operational equipment is one and there are certain services needed to support this hospital. Once the developer selects a hospital user and goes through the State to get permitted and these uses need to be sited on the project, the specific type of equipment would need to come back before the Planning Commission as an amendment to the SDR. The only changes to the interior would be a request for additional beds. If they wanted more, they would need to come back. Cm. Sbranti asked about a mentioned issue of a mental hospital. Could this come in under this agreement? Ms. Nuccio stated the City's definition of hospital doesn't separate out different hospital uses. Cm. Sbranti asked if we have any examples of 100 beds hospitals as a point of reference in the Bay Area? Ms. Nuccio clarified this would be located on a 7 acre parcel and a map was filed to subdivide this property. A medical center would be on 7.1 acres. Once a user is identified and if they were to change the staffing plan, this would deal with parking and traffic and it would have to go back through the process. The term of the Development Agreement is 10 years. City Attorney Elizabeth Silver advised that a medical office building is already entitled. The Applicant is asking for duel entitlement. Medical office buildings are the earlier ones approved as part ofKoll Center. Cm. Sbranti stated he was not interested in a supplemental EIR report, but we should look at some of the environmental issues discussed. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 190 DRAFT Mayor Lockhart stated she felt the information submitted tonight requesting a delay should not hold up this project when it has been in the news and discussed and going through the process for a year. They have had plenty of time to voice their concerns. There was no way the Council could read the lengthy paper they submitted tonight. We have designated this area as the place for medical uses in our community. Vm. Hildenbrand stated she felt the Council would be remiss if it did not bring this forward for our community. On motion of Cm. Oravetz, seconded by Vm. Hildenbrand, and by unanimous vote (Cm. Scholz absent), the Council adopted RESOLUTION NO. 71 - 07 ADOPTING A CEQA ADDENDUM AND STATEMENT OF OVERRIDING CONSIDERATIONS FOR AN AMENDMENT TO THE STAGE 1 & STAGE 2 DEVELOPMENT PLAN FOR PLANNED DEVELOPMENT ZONING DISTRICT (P A 98-047) AND FOR A CONDITIONAL USE PERMIT AND SITE DEVELOPMENT REVIEW FOR THE DUBLIN GATEWAY MEDICAL CENTER BUILDING 3 HOSPITAL AND GARAGE PROJECT LOCATED AT 4084 AND 4100 DUBLIN BOULEVARD APN 986-0016-021 & 986-0016-022 PA 06-026 Waived the reading and INTRODUCED an Ordinance approving a Planned Development Rezone and Stage 1 and 2 Development Plan for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project located at 4084 and 4100 Dublin Boulevard; Adopted RESOLUTION NO. 72 - 07 APPROVING THE DUBLIN GATEWAY MEDICAL CENTER BUILDING 3 HOSPITAL AND GARAGE CONDITIONAL USE PERMIT AND SITE DEVELOPMENT REVIEW LOCATED AT 4084 AND 4100 DUBLIN BOULEVARD APN 986-0016-021 & 986-0016-022 PA 06-026 DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 191 DRAFT Waived the reading and INTRODUCED an Ordinance approving a Development Agreement for the Dublin Gateway Medical Center Building 3 Hospital and Garage Project located at 4084 and 4100 Dublin Boulevard. . ST. PATRICK'S DAY FESTIVAL RE-CAP 8:29 p.m. 7.1 (950-40) Recreation Coordinator Lorri Polon presented the Staff Report and provided an overview of the 2007 St. Patrick's Day Festival and requested input from the Council regarding the planning of the 2008 Festival. In 2008, St. Patrick's Day falls on a Monday. In the past, such as 2003, when the holiday has been on a Monday, the Festival has been held on the preceding weekend. Therefore, Staff recommended scheduling the event for March 15-16,2008. Cm. Sbranti asked with regard to alternate parade routes, if anyone had any specific suggestions? Ms. Polon stated there were a couple; one lengthening the parade a little. We definitely want to have it conclude here at the Civic Center. Weare reviewing this with regard to traffic. Vm. Hildenbrand stated she would hate to give up so early on the bleachers. Give them another try and let people know they are available. Cm. Sbranti commented access to bleachers was not very good. Maybe we could find another site along the parade route for the bleachers. Mayor Lockhart suggested we move the bleachers closer to the edge. The crowds were so big. Cm. Oravetz stated he felt the parade was too short. He suggested we start the parade at Fire Station 16 and go down Village Parkway and Dublin Boulevard. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 192 ~OF~ 1/~~~~4:~\' 19~ ~82 ,~, (Jjj,lroR~ DRAFT Cm. Sbranti stated he would hate to lose the pancake breakfast. He heard a lot of people say they wish they were at the fire station. He asked if the date suggested will conflict with San Francisco events. Ms. Polon replied that it conflicts every year. They have a one day event, however. Ms. Polon thanked the City Council for their input. On motion of Cm. Sbranti, seconded by Cm. Oravetz, and by unanimous vote (Cm. Scholz absent), the Council determined that the Festival should be held on March 15-16,2008. . FAIRWAY RANCH (THE GROVES) FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT FOR SENIOR PROJECT P A 03-10 8:39 p.m. 8.1 (600-30) Community Development Director Jeri Ram presented the Staff Report and advised that the First Amendment to the Affordable Housing Regulatory Agreement for Fairway Ranch Senior Housing is being presented for Council consideration. Fairway Ranch is a 24.5-acre project approved in 2003 for development in 3 phases. The project has been renamed and is now known as The Groves at Dublin Ranch. Phase 1 includes 322 units of senior citizen apartments known as Cedar and Pine Grove. Phase 2 is a 304-unit complex of family apartments (leased rental units) known as Oak Grove. Phase 3 is the proposed Sycamore Grove project, which would be comprised of304 condominium (for sale) units. The Amendment provides that: The requirement to rent 65 of the units at the moderate income level is deferred for a period of 5 years. During this 5-year time period, the moderate income units could be rented at a market rate or lower; At the conclusion of 5 years, as any market unit becomes available for rent, it will be rented at a moderate rate until all 65 of the deferred units are rented at the moderate income level; and The 65 deferred units would have a longer period of affordability. While the other affordable units are required to be affordable for 55 years, these 65 units would be DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 193 DRAFT affordable for a total of 60 years once the 5-year deferral period ended. This additional time would allow for time to turn over 65 of the market units. While it is not known how long it will take to turn over 65 market units, Staff would like one cut-off time period for all the units so that each unit will not have to be monitored separately. Mayor Lockhart clarified her understanding of this issue. Ms. Ram stated at this time, the market rate and moderate rates are about the same. Since they are so close, people are hesitant to go through the process with all the paperwork to get a moderate rate unit. On motion of Vm. Hildenbrand, seconded by Cm. Sbranti, and by unanimous vote (Cm. Scholz absent), the City Council adopted RESOLUTION NO. 73 - 07 APPROVING THE FIRST AMENDMENT TO THE AFFORDABLE HOUSING REGULATORY AGREEMENT FOR DUBLIN RANCH AREA B - FAIRWAY RANCH SENIOR HOUSING .. FINANCING RETIREE MEDICAL WITH CONTRIBUTIONS BASED ON AN ACTUARIAL STUDY AND PLACEMENT OF FUNDS CONTRIBUTED INTO THE CALPERS TRUST 8:46 p.m. 8.2 (720-60) Administrative Services Director Paul Rankin presented the Staff Report and advised that an updated actuarial study has been prepared to determine the amount of contributions required for Retiree Medical insurance benefits. In addition, the California Public Employees Retirement System offers a trust that will invest funds set aside for this purpose. Placement of the funds in an irrevocable third party trust will reduce the liability required to be reported on the City financial records. The use of the PERS Trust is also expected to generate more funds from investment eamings, which reduces the amount contributed by the City. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 194 DRAFT Mr. Rankin explained that the use of the CalPERS Trust allows the Actuary to use a higher interest rate assumption. Based on the 2007 Actuarial Study update, this will reduce City contributions towards Retiree Medical by approximately $777,000. Placement of the funds in a trust will allow the City to also reduce the liability required to be recorded in the Comprehensive Annual Financial Report (CAFR). Mayor Lockhart asked if we have any discretion of the funds. Mr. Rankin responded that it is an irrevocable trust. We will do a periodical study and they will not accept more money than what the actuarial study guidelines say. We do control future contributions to the trust. Under the IRS code they are set aside for this purpose. Cm. Sbranti clarified that a future Council could put the funds in another trust. He also asked about what fund the interest would go into. Mr. Rankin explained that the interest when it was in the Internal Service Fund was put back into that fund. Cm. Sbranti asked about limits to investing City funds. Mr. Rankin advised that we are limited to investments of 5 years. PERS is more diversified and they have Staff to do the research. On motion of Cm. Sbranti, seconded by Cm. Oravetz, and by unanimous vote (Cm. Scholz absent), the City Council adopted RESOLUTION NO. 74 - 07 APPROVING AGREEMENT WITH CALIFORNIA PUBLIC EMPLOYEES RETIREMENT (CALPERS) SYSTEM TO PREFUND OTHER POST EMPLOYMENT BENEFITS (RETIREE MEDICAL) THROUGH CALPERS And authorized Staff to tran~fer funds currently held in the City Internal Service Fund for Retiree Medical purposes to the CalPERS Trust (estimat~d at $5,694,000 as of June 30, 2007); and directed Staff to take necessary measures to incorporate the results of the Actuarial Study into the 2007-08 Preliminary Budget. .. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 195 DRAFT OTHER BUSINESS Brief INFORMATION ONLY reports from Council and/or Staff, including Committee Reports and Reports by Council related to meetings attended at City expense (AD 1234) 8:58 p.m. Cm. Oravetz stated he attended 2 LA VT A meetings. Vm. Hildenbrand reported that she attended events, Best of the Best with Las Positas Foundation and the Chinese Cultural Event at Lafayette. She participated in a ribbon cutting ceremony and was the lone Alameda County representative. She also attended the Breath of Fresh Air event hosted by the American Lung Association, promoting overcoming asthma and lung disease. They honored Shirley Wassam and it was a very moving ceremony and they heard 4 different stories of people trying to breathe clean air. Dublin was recognized as a partner because of our recent adoption of a stronger anti- smoking ordinance. Cm. Sbranti stated he attended the groundbreaking for the new Dublin High School Math & Science building. They will be closing the parking lot on Brighton Drive very quickly. They will be doing some overflow parking and thanked the LDS Church on Village Parkway for working cooperatively with them. Mayor Lockhart reported that she attended a LAFCO meeting which went until 7 p.m. She was also pleased to attend the Breath of Fresh Air event. At Best of the Best, Las Positas Foundation event, the food was wonderful, and they had an opportunity to honor Karen Haliday who is retiring this year. Mayor Lockhart stated she recently received a copy of a letter to Commander Gary Thuman, Chief of Police, from Dr. Hanke, School Superintendent speaking so highly of our police services. They express their gratitude for the extra effort that Officers Floyd Gill, Chris Romer, Joe England and Lieutenant Glenn Moon put into the recently completed district-wide intruder drill for the Dublin Unified School District. They are grateful for this partnership and stated they look forward to continuing to work with Dublin Police Services to enhance the relationship that they already enjoy. .. DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 196 DRAFT ADJOURNMENT 11.1 There being no further business to come before the Council, the meeting was adjourned at 9:04 p.m. Minutes prepared by Kay Keck, Interim City Clerk. Mayor ATTEST: Interim City Clerk ~ DUBLIN CITY COUNCIL MINUTES VOLUME 26 REGULAR MEETING May 15, 2007 PAGE 197