San Leandro City Council Special Meeting - March 9, 2026
San Leandro City Council Special Meeting - March 9, 2026
The San Leandro City Council held a special meeting on March 9, 2026, starting at 7:10 PM and adjourning at 10:13 PM. The meeting included a consent calendar, a public hearing on terminating a development agreement with Cal-Coast Companies, and presentations on economic development and retail cannabis code amendments. Key decisions included approving consent items, voting to terminate the DDA (5-0, with one recusal), and directing the cannabis discussion back to the Rules Committee for further refinement.
Consent Calendar
- The council unanimously approved the consent calendar (6-0) as follows:
- Resolution 2026-023: Awarding a $6,643,120 construction contract to VSS International for the Annual Street Sealing 2021-2024 project, with change order authorizations and a $1,100,000 appropriation from the FY2026-2027 CIP Reserve Fund.
- Resolution 2026-024: Awarding a $1,165,352 contract to Westland Contractors Inc. for Sanitary Sewer Point Repairs 2024-25 and Floresta Blvd. Sewer Replacement.
- Resolution 2026-025: Approving the City Manager's assignment of Sarah Bunting as City Clerk.
- Minute Order 2026-013: Nominating Mike Bryant to the Arts, Culture, and Library Commission.
- Minutes from the February 12, 2026 Facilities and Transportation Committee Meeting, February 25, 2026 Rules Committee Meeting, and March 2, 2026 regular City Council Meeting.
Public Comments & Testimony
- Consent Calendar: Douglas Spaulding supported the appointment of Sarah Bunting as City Clerk, praising her professionalism. Alvro Ramos spoke against item 4A (street sealing), urging focus on main boulevards and criticizing the use of CDBG funds for streets and sewers. He also raised concerns about sewer infrastructure risks. Lucas commended the bid summary for item 4B but questioned why only two bids were received for the larger 4A project ($7.8 million).
- Public Hearing (5a): Four speakers addressed the council. Deborah Acosta noted the project's long history and suggested stepping back to reconsider the marina in light of climate change and connectivity issues. Douglas Spaulding opposed further development due to flooding and liquefaction risk. Lucas asked what Plan B would be if the DDA were terminated, warning of another 18-year delay. Alvro Ramos cited lack of transparency and emphasized the impossibility of keeping water out due to sea level rise.
- Presentations:
- Innovation and Retail Action Plans: Deborah Acosta acknowledged the effort but urged connecting economic plans with broader challenges. Douglas Spaulding recommended high school internships, overplanning for electricity (300 MW), and a redlining ordinance. Alvro Ramos criticized suburban infrastructure, car dependency, and high utility costs. Lucas questioned slow timeline items in the action plan, such as a year-and-a-half brand assessment.
- Retail Cannabis Dispensaries: Nara Dalbaca (Harborside) supported expansion and requested a second location for Harborside similar to Nug Wellness, emphasizing the need for quick action. Emily Grego (Chamber of Commerce) supported modernizing the ordinance but opposed cannabis in downtown San Leandro to protect the family-friendly vision. Lucas opposed any expansion, citing federal illegality, public safety, and odor concerns.
Discussion Items
- Public Hearing – Termination of DDA with Cal-Coast Companies (5a): City Attorney introduced the item, stating that Cal-Coast had defaulted on the schedule of performance by failing to obtain permits and commence construction within 24 months of the ground leases (due December 22, 2024). Default notices were sent in January and March 2025, with a 90-day cure period that was not met. Ed Miller, president of Cal-Coast, addressed the council, detailing 16 years of work, $24 million spent (including $10 million to the city), and challenges such as sea level rise redesign, CEQA delays, and permit approvals from multiple agencies. He proposed a principal-to-principal meeting and stated he would not abandon the project. Councilmembers asked clarifying questions; Vice Mayor Viveros-Walton noted the default occurred years before the notice. A motion to terminate the DDA with respect to the hotel, multifamily, restaurant, and market elements passed 5-0 (Councilmember Boldt recused).
- Presentation on Innovation and Retail Action Plans (6a): Economic Development Manager Katie Bowman and consultants presented findings. The Innovation Action Plan identified four target industries: life sciences, clean tech, food tech, and advanced manufacturing, with specific subsectors. It recommends addressing electric infrastructure (200 MW needed over 5–10 years) and includes action steps such as business support, marketing, regulatory streamlining, and partnerships with PG&E. Success stories included CoreShell (battery startup) and Pacific Fusion (fusion energy) leasing space, the latter resulting in a property sale valued at $62.75 million (triple previous assessment) and over $500,000 in transfer tax. The Retail Action Plan involved a void analysis identifying missing sectors (e.g., ethnic grocery, restaurants, sporting goods) and recommended a database, marketing materials, and support for shopping center improvements. Successes include Sprouts, Philz Coffee, and Ace Hardware opening soon. Councilmembers discussed the need for balancing legacy businesses, addressing PG&E challenges, and improving the approval process.
- Presentation on Retail Cannabis Dispensary Code Amendments (6b): Deputy City Manager Eric Ingelbart presented. Key proposals: define "youth center," allow setback modifications for physical barriers, issue two additional permits (total six), reduce setbacks from 1,000 to 600 feet for most sensitive receptors, expand zoning to all industrial-commercial districts, and apply special findings for CUPs. The current map is highly restrictive. The Chamber and SLIA requested excluding downtown. Council discussion revealed no consensus on setback reductions for libraries and residential areas, or on downtown exclusion. Councilmember Aguilar supported allowing downtown dispensaries. Councilmember Simon advocated a stepwise approach. Mayor González suggested returning the matter to the Rules Committee for further refinement.
Key Outcomes
- Consent Calendar: Approved unanimously (6-0).
- Public Hearing 5a: Motion to terminate the Disposition and Development Agreement with Cal-Coast Companies carried 5-0 (Councilmember Boldt recused). Enactment No: Min Order 2026-014.
- Presentation 6a: Received and filed; no formal vote.
- Presentation 6b: No formal action taken. The council directed staff to take the feedback and bring the cannabis code amendment discussion back to the Rules Committee for further deliberation on setbacks, downtown exclusion, and other concerns.
- Meeting Extension: Motion to extend the meeting to 10:15 PM carried unanimously (6-0).
Meeting Transcript
I'm calling to order the meeting of the sound of city council today. At this point in time, please join me in the Pledge of Allegiance. My pledge to the flag of the United States of America. And just saying one nation. At this point in time, Madam Clerk, would you read your announcement? Yes, Mayor. If you would like to make a public comment during the pause you if you don't mind because we haven't taken role to establish quorum. Please proceed. Councilmember Aguilar. Present. Councilmember Bowen. Councilmember Bolt. Present. Council Member Simon. Present. Council Member. Apologies. Vice Mayor Vivero Swalton. Present. Thank you. And Mayor Gonzalez. I am present as well. At this point in time, Councilmember Aguilar, I'd like to give you the floor with respect to your announcement. Uh thank you, Mayor Gonzalez. Under California Government Code Section 54953.8- uh sorry point three. Um section A1, I am notifying the city council of my need to participate in this meeting remotely or just cause the need is I have a physical condition caused by medications related to a recent significant dental procedure. There is no one over the age of 18 in the room with me currently. That ends my announcement. Thank you. The City of San Leandro conducts orderly meetings to fulfill its mandate. Discriminatory statements or conduct that would potentially violate the Federal Civil Rights Act of 1964 and or the California Fair Employment and Housing Act, California Penal Code Sections 403 or 415, are per se disruptive to a meeting and will not be tolerated. Please see the City Council handbook and city council meeting rules of decorum for more information. Madam Clerk, your announcement. If you would like to make a public comment during the meeting, you can do so in person or via Zoom. If you are present at the meeting, please complete a speaker card and submit it to the city clerk before the item is presented. If you wish to make a public comment via Zoom, you can use the raise your hand tool when the item is called. During the public comment session, speakers will be invited to speak and will have a set time to share their comments. A countdown timer will appear for their convenience. And when the time is up, the microphone will be muted. All raised hands outside of public comment will be lowered to avoid confusion. Once public comment is opened, hands may be raised to speak. Okay, at this point in time, thank you very much for your announcement. Do we have any reportable action coming out of closed session? Thank you, Mayor. No, we did not take any reportable actions in closed session, but direction was provided to staff. Thank you. So moving to item number four, our consent calendar. Are there any items on the consent calendar that uh council members would like to pull from the consent calendar? Okay, just confirming. So would you like to pull an item, Councilmember Aguilar?
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