The regular meeting of the San Lorenzo Village Homes Association Board of Directors was held Thursday, November 19, 1998 at 7:30 p.m. in the auditorium with President David Sherman presiding over the meeting.

1.1 CALL TO ORDER - Director David Sherman called the meeting to order.

1.2 SALUTE TO THE FLAG - Director David Sherman led the Board and the audience in the pledge of allegiance.

1.3 ROLL CALL - Directors David Sherman, Jim Spears, Dorothy Partridge, Jim Sherman & Millie Arieta were present.

2.0 COMMENTS FROM PUBLIC AGENCIES

2.1 Alameda County Sheriff's Department - Deputy Sheriff Margaret Shindelus with Community Policing stated that the department normally brings monthly crime statistics to report, but these were not available for the meeting. She extended her thanks to the Association for inviting the sheriff's department to participate in the Annual Children's Halloween party, which helped both herself and Deputy Bartholomew meet with children and parents in the area. Deputy Shindelus also reported that at last month's community policing meeting they did a presentation on Megan's Law. The department sent over 3200 fliers to children at elementary and middle schools in the area, however, only 30 parents attended. She stated that presentation was very well done and extended an invitation to more families to participate in the future. The department has a list of the upcoming community policing meetings for all those interested, Deputy Shindelus also stated that each year the department has a holiday food and toy drive during December. She invited anyone to contact the department if they knew of needy families in the area.

Director Partridge questioned the status of the group that was going to help with graffiti abatement. She pointed out that there are two areas which need to be looked at. The first is the fence on Grant Avenue and the second is the Oil Change business next to Arroyo High School. Deputy Bartholomew stated that they do have a group organized and are just waiting to coordinate a time to do the work. Deputy Shindelus gave the phone number for residents to call to report graffiti problems and/or find out when the next community policing meeting is held.

2.2 Carol Robinson, Daily Review - Ms. Robinson introduced herself and stated that she was trying to focus on positive events happening in San Lorenzo. She encouraged residents to contact her regarding information about Good Samaritans and/or positive community events happening in the area to so that she could include this information in her articles. Anyone with information was encouraged to call her at 293-2465 or 293-2470. The Administrator thanked Ms. Robinson for all her articles on community activities.

2.3 California Highway Patrol - The Sgt from the Highway Patrol out of Hayward reported the traffic statistics for the Alameda County for October 1998. There were 78 DUI arrests; 79 citations for running red lights; 47 citations running stop signs, 651 speeding citations, 20 citations for driving on the wrong side of the road; 115 registration violations; 21 citations no child restraint; 10 citations violation of seatbelt restraint/passenger; 209 seatbelt restraint violations/driver. The Administrator pointed out that at last month's meeting the Board had asked the CHP to start ticketing cars parked in the no parking/street sweeping area. However, the Association recently received a petition from several homeowners concerned about the effectiveness of street sweeping in these areas. The Board will put this item on next month's agenda and will put a hold on the ticketing procedure until after the discussion at its December meeting.

3.0 MINUTES OF THE PREVIOUS MEETING - 3.1 Approval of Minutes of Meeting No. 1011 Thursday, October 15, 1998 - Director James Sherman made a motion to approve the minutes of Meeting No. 1011, October 15, 1998. With a second by Director Jim Spears the motion passed unanimously.

4.0 FINANCIAL REPORT

4.1 Approval of October 1998 Expenditures - Director Jim Spears moved with a second by Director Dorothy Partridge that the Board approve the expenditures for October 1998. The motion was passed unanimously.

4.2 Discussion of Significant Variances - The administrator reported there were no significant variances.

5.0 LIEN AND VIOLATION REPORT

The Administrator reported that there have been two (2) Release of Lien forms signed since the October meeting. The Association currently has 160 cases open.

Violation Report:

Inoperable/Unlicensed vehicle in front or side yard area:      15
Recreational vehicle in front or side yard area:               20
General Maintenance of property:                               50
Vehicle parked on lawn or other unpaved area:                   4
Others:                                                         6
Total Number of Letters Sent in June 1998                      95

6.0 ADMINISTRATOR'S REPORT

6.1 Audit 97-98 - The administrator stated that the audit was mailed out in the October newsletter, and that currently she has not had any questions from homeowners. She recommended that this item be moved to the December Board meeting so that any questions can be addressed and discussed in detail.

6.2 Auto Mart Proposal - Shawn Appling, owner of Auto Mart, gave a presentation regarding the opening of his business in San Lorenzo. The business operates by leasing spaces to persons wishing to sell their automobiles and provides a neutral atmosphere for potential buyers and sellers to come together. The Auto Mart would be located in the San Lorenzo Little League parking lot and would operate Saturdays and Sundays only from 8 am to 5 p.m. Mr. Appling had met with Little League officials who approved the use of the space and the rental fee required. Mr. Appling had also acquired the necessary business permit needed to operate his business. Director Spears questioned the hours of operation and what might happen if someone did not remove his or her car by 5:00 p.m. on Sunday. Mr. Appling stated that those individuals who did not remove their vehicles would be towed at the owner's expense. A resident questioned whether there would be security on Saturday nights when the cars are left overnight on the lot. Mr. Appling stated that there would be all-night security starting Saturday at 5p.m. through Sunday morning at 8 a.m. when they reopen. A resident questioned whether the Auto Mart would hold auctions at the site and how the business would run during the Little League season. Mr. Appling responded that no auctions were planned for the business and stated that the Auto Mart would not run its business during the Little League season which runs from March through August of each year. Liability insurance was questioned by a resident. Mr. Appling responded that the insurance would be handled by Auto Mart with the Homes Association named as a secondary insurance policy holder. Other residents questioned this type of business in San Lorenzo and were concerned about how this might affect the value of their homes. The Administrator responded by stating that she felt this was a service to many residents who may not want someone coming to their home to view his or her respective vehicle and in addition it helped the Little League Association by providing a source of additional revenue. She continued by stating that this is a temporary business on a two-month trial basis and that she had checked with the San Lorenzo community policing deputies who did not see any problems with approving this business on a temporary basis. If problems arose with the operation of this business then the Association would close it down. A resident questioned whether the area was zoned for this type of business. The Administrator responded by stating that Mr. Gray, the County Zoning Administrator, can let the Association know if there are any problems with the zoning of this business.

Director Dorothy Partridge made a motion, with a second by Director Jim Sherman, to approve the Auto Mart proposal on a two-month trial basis, subject to necessary County approvals, revisiting the operation of this business at the Board's December 1998 meeting.

        Roll Call Vote:
        Ayes: 3 (Directors Partridge, Spears and J. Sherman)
        Noes: 2 (Directors Arieta and D. Sherman)

6.3 Other Informational Items - Waived so that the Board has time to hear other agenda items.

7.0 OTHER BUSINESS

7.1 KFC Proposal - Jim Beglin, District Manager for Kentucky Fried Chicken (KFC) in the San Lorenzo area presented his company's proposal to move from their present location on Hesperian Blvd. to the corner of Hacienda and Hesperian (recently vacated by Corner House Restaurant). Mr. Beglin stated that the current facility needs to be upgraded to meet ADA requirements, has inadequate seating, and a "backwards" drive-through window. He assured residents that his staff would work to mitigate any litter problems caused by this move. He further stated that he would do all that he can to form a positive relationship with the neighborhood by attending community meetings to address problems that may arise. He stated that he had done a preliminary survey with customers to see if people were in favor of the move and over 360 people responded favorably. He went on to say that only 15 % of these people surveyed were residents of San Lorenzo. Director David Sherman stated that his main concern is the traffic in this already congested intersection, which is home to three other fast food restaurants and a gas station. Mr. Beglin responded by stating that with the new design, KFC is hoping to get more people to exit south out of parking lot, and pointed out that the new location of this building may help with some of the traffic currently speeding behind the shopping. The Administrator stated that the question of traffic was brought up by the Business Development committee and that she had checked with the traffic engineer who said he would review the design. She has also asked the Zoning Administrator to review the diagram and come up with additional traffic mitigation/control. Director Partridge asked whether the existing entrances and exits would be the same as they are now. Mr. Beglin stated that an additional entrance/exit would be added near the Warehouse building. One of the other questions brought up by the Business Development committee was what would happen to the existing building if KFC moves. The Administrator said that the owner assured her that the existing building would be torn down and additional parking or an expansion of Taco Bell may take place, but that there were no plans to add another fast food facility at the site.

Questions from the audience (see attached speakers sheet)
Main concerns from speakers were: Why do we need another drive-through in the area when there are already three existing fast food facilities at the intersection. Many children from nearby schools walk this area as well as senior citizens-tws is already a hazard for these individuals why create an atmosphere where there could be potentially more traffic? What about property values in the area near this new facility? What will happen to existing KFC building if the store moves? Have other sit-down restaurants been pursued? What are the hours of the delivery trucks and how will the noise effect surrounding neighbors? What about the noise generated by the drive-through traffic? By endorsing the move of KFC the Association is encouraging more strip-type drive-through businesses in an area already heavily saturated with these types of businesses. What about the excessive auto emissions generated by the idling cars and the health of near-by neighbors?

Positive reactions from speakers were: The site where KFC is currently located is very congested, this move would help with the congestion of that area. KFC is already in San Lorenzo - what is the difference if it moves down the street?

Ms. LaGrone introduced herself as the property owner of the Manor Shopping Center. She stated that the sit-down restaurant many residents want for this site is too big for the lot. Most sit-down restaurants need sufficient parking which is based upon the total square footage of restaurant. The old Cornerhouse seated only 150 people. Restaurants like Denny's and Carrows would not have sufficient parking for their size and thus would not pass building regulations. Ms. LaGrone went on to state that the shopping center is not adding another drive-in, just moving it down the street to a cleaner, nicer building. Vacant buildings are a detriment to the area. Director Arieta stated that she has a problem with the delivery truck noise in the early hours of the morning but feels that KFC would be an improvement to the vacant building that is currently on this site. She further stated that she is concerned with the impact KFC's move would have in adding to the strip type development already present on Hesperian Blvd.

Jim Beglin responded to some of the concerns by stating that he can rearrange the timing of delivery trucks to a later delivery time to cut down noise. He would also look into the design of the drive-through speaker to help decrease the noise generated. Mr. Beglin said the exhaust fumes are not something they would have control over, but stated that the intersection was already a heavy traffic area with fumes and did not believe the restaurants traffic would add much to the conditions that already exist at that intersection. He further stated that he believed the facility's move would help generate more taxes to the area. Director Partridge questioned who would get the taxes -- her understanding was that the shopping center was located in unincorporated Hayward. Ms. LaGrone stated that the shopping center itself is in San Lorenzo. The Administrator stated that the taxes would come back to the unincorporated areas of Alameda County and that she has researched what San Lorenzo generates in taxes for the county and she has found that San Lorenzo receives more than its share of the taxes it generates. In addition, she pointed out that should the County adopt a fast food ordinance, KFC would not be affected due to the fact that they are already located in the area. The Administrator stated that she has received over 12 letters from residents in support of the relocation of KFC. Some of the residents expressed that they like drive-through restaurants for reasons of safety and convenience. What concerned the Administrator was how the increase in traffic will affect the area. The traffic engineer assured the Association that the county would take a serious look at the design and if there were things that KFC needed to do to mitigate the traffic -- these things would be part of the conditions for approval. Director Jim Sherman was concerned with the increase in traffic and the school children in the area. Director David Sherman asked what the chances are that KFC could remodel its current location to set up the drive-through on the other side? Jim Beglin responded by stating that it would be very difficult to do this with the way the building is currently situated off of the street. Director Partridge questioned Ms. LaGrone as to whether Taco Bell plans to expand if KFC is torn down. Ms. LaGrone stated that Taco Bell has not approached her about this, however Taco Bell may need to upgrade its current facility because of the age of the building. Director Partridge further questioned Mr. Beglin regarding surrounding residents concerns of noise and traffic -- would he be willing to meet with residents in the area to work things out? Mr. Beglin stated that he would be willing to do this and that perhaps he could work with the school district to get a crossing guard at the intersection and/or one of his employees could be set at that location during the hours school children are going to and from school. Director Partridge noted that although the Association has no authority to place a crossing guard at that location, the Board could make a recommendation to the school district regarding the issue. The Administrator asked whether the Board wanted to make a recommendation to the Planning Commission on this issue. Director Jim Sherman stated that he could not support the proposed move at this point due to the issues of traffic.

Motion by Director Jim Sherman that the Board make a recommendation to the Planning Commission in opposition of KFC's move to the intersection at Hesperian and Hacienda. No second - the motion dies.

Motion by Director Partridge and seconded by Director Arieta that the Administrator go before the Planning Commission and, if it can be proven that there is no evidence of a traffic increase, that a recommendation in favor of KFC's relocation be made on behalf of the board of directors. Motion withdrawn due to lack of consensus.

The Administrator asked KFC and the owner of the Manor shopping center whether any traffic studies had been done with respect to the relocation of KFC. Karen Bellini from KFC stated that any traffic study would be done by a professional traffic engineering company whose findings the county could use. If the county required additional information KFC would be responsible for another study. Ms. Bellini indicated that it was her understanding that the county had some information. The Administrator asked Daryl Gray, the County Zoning Administrator, whether he had anything to say regarding the traffic in the area. Mr. Gray stated that any motion in support of this relocation be contingent upon whether potential traffic impacts could be mitigated to the satisfaction of the county traffic engineer and the County Public Works Director and further, that the motion include that this project be consistent with the county policies that eventually will come out of the meetings being held by the County Supervisors and the Planning Commission. A resident voiced concerns over a traffic study which looked at traffic flow and did not necessarily take into account the children traveling to and from school and the potential impact an increase in traffic would have on them. Director Partridge agreed that this was a major concern for this proposal.

Director Arieta suggested that the Board make no recommendation at this time due to a variety of issues which have not been adequately addressed. A resident suggested that the Association take what residents have said under advisement and revisit the issue in 30 to 60 days. Daryl Gray pointed out that the upcoming meetings regarding this issue cannot be suspended for that length of time.

David Sherman stated due to lack of consensus from the Board it will make no recommendation regarding the KFC proposal.

7.2 Rite Aid Proposal - Presentation from Rite Aid. Scott Bohannon introduced himself and stated that the proposed Rite Aid would replace the building on the Northwest corner of Paseo Grande and Hesperian. The architect for the project, David Blair, displayed sketches of the proposed structure for the San Lorenzo site and stated that the building would be a "traditional" style building which would be a free standing structure with parking on the Paseo Grande and Hesperian Blvd sides. The entrance of the store would be located at the comer facing the intersection with the service area located in the back and to the side. A neutral gray wood siding would surround the upper part of the building with gray stucco on lower edges of building with additional features trimming some of the upper part of the building. Wood detailing would accentuate the entrance of the store. Mr. Blair stated that his firm was asked by the Bohannon organization to look into extending some landscaping and architectural features to the Mervyn's parking lot to help incorporate future development. Questions from the audience regarding the design included whether the landscaping shown in the old Mervyn's parking lot would be done at the same time Rite Aid was constructed. Scott Bohannon said that the landscaping would not be done immediately, and that the sketches presented are rather what the Bohannon organization would hope to do in the future. A resident asked about adequate parking around the new store, concerned as to whether an overflow wold occur in the old Mervyn's parking lot, so that residents would have to cross the street to get to the store. Mr. Blair stated that there would be parking on two to three sides of the building which would be sufficient. Mr. Bohannon stated that the on-street parking currently located on Paseo Grande would be eliminated with the construction of this building, so that traffic would flow more easily in the area.

The Administrator stated that the office received letters and phone calls regarding the Rite Aid proposal and that there were eight residents against and twelve in favor of the Rite Aid. She had a summary of what was said by these residents which was available for anyone interested.

Public Speakers pro and con Rite Aid (See attached list)

Pro: It is great that this company is willing to spend the money to come into an area which is now essentially a ghost town. Beverly Hills has a Rite Aid - if it is good enough for that community it is good enough for San Lorenzo. Rite Aid is a great opportunity to spur new growth for this community. The Walgreens built across from the Green House shopping center took an area that was once a blight and turned it into something beautiful - San Lorenzo needs to change it blight in the same way. Rite Aid is a start and might attract other small business. A small coffee shop is not going to attract other businesses.

Con: The choice should be ours, we live in this area and we as a community can come up with better alternatives. Rite Aid would not be beneficial to the youth in our community, we need something geared towards the youth. Rite Aid is not needed in our community, we already have similar businesses close by. We need businesses which serve our residents, we need a department store, a book store and a coffee shop. The residents of San Lorenzo need to determine the quality and type of businesses we want for this area. The business community and the residents need to let the Bohannon Corporation know what the community's vision is for San Lorenzo. We need to develop a vision for our community prior to approving any development, otherwise we have piece meal development. Family-oriented shops are needed - a theater, small speciality shops. Rite Aid will dictate the rest of the development and the community will lose control. The community needs to develop a vision and push for that vision - it will give us power. Why not bring Mervyn's back here and build around this department store? Gottschalks could be the anchor store - why not push to get it interested? How many businesses have been interested in the area - how many have been approached and turned the idea down?

Scott Bohannon stated that despite the organization's and the community's pleas Mervyns decided to move out of San Lorenzo. The organization's efforts to get other major stores interested in the area have been ongoing. He stated that they have gone through various designs trying to attract other businesses and they had talked with Gottschalks in the past, however the only store who has made a commitment to develop at the site is Rite Aid. The organization is not giving up in trying to attract other businesses.

The Administrator commented that in the survey mailed to residents this past summer, it was found that 97% of those who responded wanted a department store in San Lorenzo. She went on to say that she had contacted Gottschalks to find what the minimum square footage was for a new store and found that it was compatible with the old Mervyn' site. She stated that she will be sending out a survey with the annual assessments asking residents if they would patronize Gottschalks should it come into our area. She encouraged all residents to fill these out and get them back to the office. The Administrator went on to state that she feels that is it not a fair assessment to say that the Bohannon organization has not done enough to attract businesses. She knows that the organization has had serious negotiations with six (6) major stores who have dropped out of negotiations for one reason or another. The Administrator went on to state that she has met with Supervisor Steele and the county planning personnel who have said that they will do all they can to help push the process through should a department store or other businesses be interested in the site. Director Arieta stated that it in her opinion it seems that Bohannon organization has done all it can to get an anchor store into the area. Her concern is whether the residents in the area will patronize smaller stores if they decide to come in. Many of the residents are two-income families with other obligations. Director Arieta went on further to state that she feels a vision is needed for the area before development is implemented and more people need to be actively involved with this vision. Director Spears stated that we have a lot of senior citizens in our area who do not have transportation and Rite Aid would benefit them. Director Jim Sherman stated that he appreciates residents coming out to voice their respective opinions and went on to state that Rite Aid may not be the answer to everything but it is a start. Director Partridge stated that unless we have an anchor store, smaller shops will not survive and further pointed out that by having Rite Aid developed on the site does not mean that a department store cannot be brought in. Director Dave Sherman stated that although he has been in support of Rite Aid, he was elected to voice community opinion. The majority of the people he has spoken to have been against Rite Aid and thus he cannot support it.

Further questions were brought up regarding why potential businesses have backed out of negotiations for development in the area and why Rite Aid has followed through with its plans. It was also pointed out that many younger couples are moving into the area-have there been any current demographic statements done to show interested businesses this change?

Scott Bohannon stated that his cousin was handling the negotiations for this site prior to his death and he is not completely sure why businesses backed out. He stated that he believed that the demographics and market data shown to these businesses made the risk not worth locating in the area. Mr. Bohannon went on to state that he believed the changing demographics for this area are ordered every 3 to 4 months, but he is unclear as to how accurate they are.

Director Partridge made a motion seconded by Director Jim Sherman to endorse the Rite Aid proposal.

       Roll call Vote:
       Ayes:        3 (J. Sherman, Spears, Partridge)
       Noes:        2 (Arieta, D. Sherman)

7.3 Director Election Information - The Administrator stated that there are six (6) candidates running for the seat on the Board of Directors. She will be mailing out the ballots with the assessments in the first part of December. A question was raised by a resident regarding whether there would be a candidates forum. The administrator suggested doing this prior to the next Board meeting on the 17th of December. Each candidate could have 10 minutes to speak and take questions. Director Arieta suggested that the forum start at 7:00 p.m and last until 8:00 p.m. The Board meeting could begin later at 8:00 p.m. on this date. A resident also questioned whether the Association would pay for day care for residents interested in attending this event. The Administrator stated that this is something that could be looked into and went on to further confirm that the Board would hold a candidates forum from 7-8 p.m. on December 17, with the Board meeting following this.

7.4 Final Approval of the 1999 Delinquent Assessment & Foreclosure Policy - The Administrator stated that at the last meeting it was decided that some action be taken regarding those residents who are four or more years delinquent in their assessments. There are 15 residents who currently fall into this category with outstanding fines ranging from $402.00 to over $1000.00. The Administrator stated that the new wording in the delinquent assessment and foreclosure policy is as follows: "Effective 1999, the Association will initiate foreclosure proceedings against homeowners owing an assessment balance of $400 or more."

Motion was made by Arieta and seconded by Spears to accept the delinquent and assessment foreclosure policy. Motion passes unanimously.

7.5 Centex Annexation - The administrator said that she had met with attorneys regarding the Centex annexation and reviewed the CC&R's. The San Lorenzo Village Homes Association would be the master association. Centex would have its own Board of Directors and cover things the Associations CC&R's did not cover.

Director Arieta makes a motion to accept the CC&R's from Centex Homes. Director Spears seconds. Motion passes unanimously.

8.0 COMMITTEE REPORTS - Waived due to time until next meeting.

9.0 COMMENTS FROM BOARD MEMBERS - Nancy Van Huffel mentioned that next Tuesday November 24 the Royal Sunset High School will be having a luncheon in which all Board members are invited to attend.

10.0 PUBLIC COMMENT - Larry Leal stated that he is attempting to form a non-profit group to restore the old Lorenzo Theater. There will be a community meeting on January 27, 1998 all residents are encouraged to attend.

A resident questioned why the street sweeper is not in the Monday area every week. The administrator stated that during the November through January season there are too many leaves for one sweeper. She went further to explain that the county is suppose to help the Association during the heavy season. This item will be agendized for the December Board meeting.

Another resident questioned why the area on Paseo Grande next to Wells Fargo is still unpaved. The administrator stated that the traffic engineer has been called and he will not be available until the end of this month, when she will find out what is causing the delay.

11.0 ADJOURNMENT - Director Dorothy Partridge made a motion to adjourn the meeting. With a second by Director Jim Sherman, Director David Sherman adjourned the meeting at 11:OO PM.

Respectfully Submitted,

Dorothy Partridge
Secretary-Treasurer

Recorded & Transcribed By: Kathleen Harrigan, Sr. Admin. Assistant
Reviewed By: Nancy Van Huffel, Administrator