Concord CNWS Jenkins Report

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JENKINS
MANHATTAN TOWERS
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1230 ROSECRANS AVENUE SUITE 110
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MANHATTAN BEACH CALIFORNIA 90266

310 643
8448 FAx
310 8441
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LOCALGOVLAW
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MELINDA A GR66N
NATALIE C KARPELES
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WRITER
ENKINS LOCALGOVLAW
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COM
February 11 2016
Ciry Council
City of Concord
1950 Parkside Drive
Concord CA 94519
Re
Concord Naval Weapons Station Master Developer Selection
Dear Members of the City Council
As you know the Ciry

s Interim City Attorney engaged this firm as independent
special counsel to investigate and report back to the Ciry Council findings and
conclusions with respect to allegations contained in a letter dated September 24 2015
from Andrew Giacomini of the Hanson Bridgett law firm on behalf of Catellus
Development Corporation I have concluded my investigation and my final report is
attached
The investigation involved interviews of wimesses and review of a substantial

I appreciate the cooperation of all of those individuals who
consented and gave of their time to be interviewed for the investigation
number of documents
This final report reflects my independent review and analysis of the facts as best as
I can ascertain them from the evidence reviewed Some relevant witnesses declined to be
Some matters that arose in the course of the investigation remain

inconclusive due to the unavailability of evidence
interviewed
The report addresses the allegations raised in the Giacomini letter and several
other allegations of improprieties that have been raised by other parties The report does
not include analysis related to the threat of potential litigation raised in the September
25 2016 letter from Mr Giacomini I have separately addressed that issue to the Council
JENIQNS
HOGIN LLP
February 11 2016
Page 2
and interim City Attorney That analysis is confidential related to exposure to litigation
and outside the scope of the investigation The attached report contains all of my findings
and analysis related to Catellus
s allegations that Lennar violated the prohibition on
lobbying in the agreement to negotiate
I appreciate the opportuniry to be of service to the City I am available to answer
any questions that arise concerning the attached report
V truly yours
cc
Brian Libow Interim Ciry Attorney

Valerie Barone City Manager
INVESTIGATIVE REPORT
ON THE CONCORD NAVAL WEAPONS STATION
MASTER DEVELOPER SELECTION (INCLUDING EXHIBITS A THROUGH YY,
ATTACHED THERETO AND INCORPORATED BY REFERENCE)
FROM MICHAEL JENKINS, ESQ., JENKINS & HOGIN, LLP,
TO THE CITY COUNCIL OF THE CITY OF CONCORD ,
DATED FEBRUARY 11, 2016
(COLLECTIVELY JENKINS REPORT)
LIMITED WAIVER
Notwithstanding the exceptions contained in the California Public
Records Act, the City Council of the City of Concord has opted to waive the
attorney-client privilege, work product protection, and the deliberative process
privilege with respect to the Jenkins Report solely for the information contained
in the report and the specific attachments disclosed herein. This limited
disclosure is not intended and shall not be construed to operate as: (a) a waiver
of any privileges and protections applicable to any materials other than the
Jenkins Report; (b) a waiver of the subject matter of the Jenkins Report,
including but not limited to any otherwise-privileged documents directly or
indirectly related to the master developer selection process for the former
Concord Naval Weapons Station; or (c) a subject matter waiver in litigation.
Y1
A LAW PARTNERSHIP
MICHAEL
JENKINS
MANHATTAN TOWERS
CHRISTI HOGIN
JoxN C Corrt
GREGG
1230 ROSECRANS AVENUE SUITE ll0

MANHATTAN BEACH CALIFORNIA 90Z66
310 643
8448 F
310 8441
c
643
KETrLES
LAURen
cEx
s
L
TREVOR RusIN
COM
LOCALGOVLAW
WWW
MELINDA A GREEN
NATALIE C KARPELES
S EMAIL ADDRESS
WRITER
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MJENKINS
COM
LOCALGOVLAW
February 11 2016
City Council
Ciry of Concord
1950 Parkside Drive
Concord CA 94519
Re
Concord Naval Weapons Station Master Developer Selection
Dear Members of the Ciry Council
As you are aware the City Manager received a letter dated September 24 2015
from the Hanson Bridgett law firm on behalf of Catellus Development Corporation
asserting violations of the Agreement to Negotiate by FivePoint Communities
Lennar in
connection with the Master Developer selection process for the Concord Naval Weapons
Station Specifically the Hanson Bridgett letter contends that Lennar violated the terms
of the Agreement to Negotiate with the Ciry of Concord by lobbying the City Council
The Ciry received a second letter from Hanson Bridgett on September 25 2015 raising
the specter of
litigation against
the
City due
to
s alleged breach
Lennar
The Ciry
s
Interim Ciry Attorney engaged this firm as independent special counsel to investigate and
report back to the City Council findings and conclusions with respect to these allegations
In connection with the preparation of this report I have considered both
documentary and testamentary evidence and where possible I have drawn inferences as
to the credibility consistency and relevance of the evidence in order to determine the
facts
surrounding
this
complex
issue
What follows is a detailed explanation of the
applicable law and analysis of the relevant issues which lead me to conclude that Lennar
s
orchestration of campaign contributions to Mayor Tim Grayson

s Assembly campaign
constituted a form of lobbying prohibited by the Agreement to Negotiate and the
removal of the recommendation from the final staff report resulted from an illegal serial
meeting
See
I did
September 25
not
find merir with any of Carellus

s other
2015 letter from Mr Giacomini
to
Mr
allegations
Coon attached hereto
as
Moreover I
Exhibit YY
JENKINS
HOGIN LLP
February 11 2016
Page 2
conclude that the Agreement leaves the consequences if any of such lobbying entirely
within the Councils discretion

I
Factual Back
round
A
were
Persons of Note
Unless otherwise indicated below the following persons
interviewed in connection with this
investigation
Participation by witnesses was
voluntary and interviews were not conducted under oath

1
Concord City Councilmembers as of September 2015
Edi Birsan
Councilmember
Tim Grayson
Mayor during the relevant time period and candidate for 2016
District 14 State Assembly Race
Dan Helix
Councilmember
Laura Hoffineister
Councilmember
Ron Leone
Mayor
Vice
Mr Leone recused himself from the Master
Developer selection process due to the proximity of his home

to portions of Phase I of the Concord Naval Weapons Station
Project
2
City Staff
Valerie Barone
Ciry Manager
Guy Bjerke
Director
of
Communiry
Reuse
Planning
Authority
Local
Reuse
Mr Bjerke assumed the position of Director of

Community Reuse Planning upon the retirement of Mr
Wright
on or
about September
21 2105
JENKINS
HOGIN LLP
February 1 l 2016
Page 3
Mark Coon
Ciry Attorney
Mr Coon was deceased prior to the
commencement of this investigation

Jovan Grogan
Assistant City Manager
Michael Wright
Former Director of Community Reuse Planning Local Reuse

Consultant Mr Wright served as the Director of
Authority
Community Reuse Planning until his retirement from his

position
about
September 21 2015 Mr Wright

attended all of the closed sessions convened to discuss the
Master Developer negotiation
3
Dahlia Chazan
on
or
City Consultants
urban planner with Arup a consulting firm under

Consultant
contract with the Ciry
Craig Labadie
former City Attorney

Consultant
Gerald Ramiza
attorney with Burke Williams and Sorensen a law

Consultant
firm under contract with the Ciry Mr Ramiza regularly

attended closed sessions convened to discuss the Master
Developer negotiation
Paul Silvern
economist with HR
Consultant
A a consulting firm under
contract
with the
Ciry
Mr Silvern attended some of the
closed sessions convened to discuss the Master Developer

negotiation
4
Engeo
Contributors to Mayor Grayson

s Assembly Campaign
Uri Eliahu is the CEO of Engeo an engineering company
founded
in
Concord
Engeo was Lennar

sHunters Point
Project geotechnical engineer and has worked
on
s
Lennar
JENKINS
HOGIN LLP
February 1 l 2016
Page 4
Treasure Island Project Engeo is Lennar

s proposed
geotechnical engineer for the Concord Naval Weapons
Station
F
G
Co
Bunting
Glenn Bunting is president and founder of G

F Bunting
Co
F Bunting provided public relations services for Lennar

G
s
Hunters Point project and potentially other Lennar projects

Noelle Bonner daughter of Kofi Bonner Regional Vice
President of Lennar Urban is a consultant to G

F Bunting
Steven Kay
Mr
Kay
is
president of Golden Gate Global Golden Gate
Global had worked with Lennar International to raise over
250 million dollars for Lennar

s Hunters Point Project As
an attorney Mr Kay has represented both Lennar Homes and
Lennar
Communiry Builders
Mr
Kay declined
to
be
interviewed in connection with this investigation
See Engeo Portfolio regarding Hunters Point com

en
www
httb
point
hunters
portfolio
eonaval base
reusei
yard
shi
and Treasure Island http and
buena
yerba
reusei attached hereto as Exhibit A
island
3 See staff report from Mr Wright to the City Council regarding Introductory Presentations by Master
Developer Can
iidates on Implementation of the Concord Reuse Project Area Plan dated February 10
2015 attached hereto as Exhibit B
See Community awaits benefits as Lennar finally breaks ground in Hunters Point by Steven T Jones
printed in the San Francisco Bay Guardian on July 1 2013
l
o
c
g
sfb
www
http
r
b
finally
lennar
benefits
awaits
muni
con
01
07
s
k
2013
ieics
ea ound
hunters oinr attached hereto as Exhibit C
Interview of Mr Bunting Also see G

F Bunting Website http
www gfbuntin com
who we aren a
printout from which is attached hereto as Exhibit D
6 See Golden Gate Global Website com

fund team a printout from
3
www
http
companv
our
new
which is attached hereto as Exhibit E

See Golden Gate Global Website
http ard
www
printout from which is attached hereto as Exhibit F

s
See Exhibit E
JENKINS
HOGIN LLP
February 11 2016
Page 5
Fred
Naranjo
Fred Naranjo is a partner of Scarborough Insurance which is

based
in San
Francisco
Mr Naranjo has attended and
contributed to fundraisers at the Bay View Opera House
along with Mr Brown and his daughter Susan Brown
Additionally Mr Naranjo is a resident of the Bayview

neighborhood in San Francisco and was a vocal supporter of
s Hunters Point project Mr Naranjo declined to be
Lennar
interviewed in connection with this investigation
Mary Jo
Rossi
Mary Jo Rossi is a former employee of Mr Willie Brown and
currently serves as Mayor Grayson

s Assembly campaign
manager Ms Rossi also represents local business interests
such as Garaventa Ms Rossi declined to be interviewed in

connection with this investigation
5
Master Developer Finalists
Catellus
Ted Antenucci is CEO of Catellus and Steve Buster is Vice

President of Catellus
See
Scarborough
Insurance Website
hereto as Exhibit G
siagency a printout from which is attached

j
http
conract
net
10 See Legendary Sarah Vaughn dress auction benefit finds Bayview Hunters Point global arts program by
Aldrich M Tan printed in the Fog City Journal on April 28 2006

fo ciryjoumal
www
ht
news
coni
in
era
brief
house funraiser 06052 shtml
and Bayview kids
head to Africa and France thanks to Bayview Opera House by Pat Murphy printed in the Fog City
Journal on May 26 2006
hereto as Exhibit H
house
era
iew
fundraiser 060428
shtml
attached
Se Catellus cries foul over Lennar contributions to Concord Mayor Tim Grayson
s Assembly
campaign by Richard Eber printed in the Contra Costa Bee on August 23 2015
lennacontributions to concord mayor tim r

over
foul
cries
catellus
com
jcontracostabee
https
ysons
a
campai attached hereto as Exhibit I

assembly
Interview of Councilmember Birsan
13
Interview of Ms Barone
JENKINS
HOGIN LLP
February 11 2016
Page 6
Lennar
Kofi Bonner is CEO of Lennar
During his term as mayor of
San Francisco Mayor Brown appointed Mr Bonner to serve

as his Chief Economic Policy Advisor Mr Bonner declined
to be interviewed in connection with this investigation

6
Others
Garaventa
Garaventa Enterprises is a recycling and resource recovery

company that serves Concord Pittsburg Bay Point Antioch
Counry Oakley Discovery Bay Brentwood

Counry Byron
Knightsen Rio Vista Bethel Island Rio Vista Counry as
well
as the entire East Bay through the Mt Diablo Recycling
Center
Garaventa has been known to participate in local
politics and has shown its support for local politicians though
campaign contributions
Garaventa and two individuals
associated with Garaventa contributed 12

800 to Mayor
sAssembly campaign Garaventa was not contacted

Grayson
in connecrion with this investigation because its involvement
in the matters addressed herein appears to be peripheral to

the focus of rhe investigation
Seeno
D
A
Seeno
Construction
Co
is
local
Concord
contractor involved in residential and commercial

developer
projects including multi
family developments real estate and
subdivision
development
new
home
construction
and
property management Seeno has been known to participate
in local politics and has shown its support for local politicians
1http
See UC Berkley College of Environmental Design 2015 Distinguished Alumni Award
berkele
iiced
y
hereto as Exhibit J
award
d
ce
edu
a
l
distinguishe
friends
kofi
2015
alumni
lumni attached
See Garaventa Enterprises Website http

garaventaent comn a printout from which is attached
www
hereto as Exhibit K
16which
See Discovery
Homes Website
discoveryhomes com
www
https
seeno a printout from
us
about
attached hereto
Exhibir
is
as
JENKINS
HOGIN LLP
February 11 2016
Page 7
though campaign contributions Seeno was not contacted in

connection with this investigation because its involvement in
the matters addressed herein appears to be peripheral to the

focus of the investigation
Willie L Brown
Former Assembly Speaker and San Francisco Mayor In 2014

Mr Brown was a registered lobbyist with the San Francisco
Ethics Commission
Mr Brown is connected to Lennar

s
Hunters Point Project through Golden Gate Global formerly

known as San Francisco Bay Area Regional Center and was
Mayor of San Francisco when Lennar was awarded the
Hunters
Point
project
Mr
Brown
declined
to
be
interviewed in connection with this invesrigation

B
Commencement
Master Develo
er
Selection Process Catellus
Lennar
Named as Finalists
In January 2014 the City commenced an arduous three

part selection process in
order to ultimately identify a Master Developer for Phase I of the Concord Reuse Project
Area
Project
Plan
The process was managed by Mr Wright and a team of

consultants consisting of Mr Ramiza Mr Labadie Mr Silvern and Ms Chazan
The first part of the selection process the qualification review resulted in
submittals
by
22
development companies By March 2014 the Local Reuse

Authority LRA was presented with eight qualification packages 1 Following an
over
independent review this list was ultimately reduced to four qualified firms recommended
by staff these firms included Catellus Development Corporation Catellus FivePoint
See San Francisco Ethics Commission Website
Lbbyist
ht
o
s
Sunlight
com
Details
netfile 2014 153710
SFO a printout from which is attached
3
hereto as Exhibit M
13 See Biography
com Website http
w
i
brown
willie
people
com
biography
40059a
ww printout from
which is attached hereto as Exhibit N
L9 Interview of Ms Valerie Barone and Interview of Mr Wright Also see Exhibit B
20 See Exhibit B
Z
Interview of Ms Barone and Interview of Mr
Bjerke Also
see
Exhibit B
JENKINS
HOGIN LLP
February 1 l 2016
Page 8
Lennar
Communities
SunCal
Lennar
F Shea
J
Company
and
SunCal
Corporation
While Council ultimately approved staff

s recommendation on June 10
2014 several Councilmembers reported receiving

that the Council
was
stamping
rubber
criticism
principally from Seeno

By May 26 2015 J
F
staffs recommendation
Shea dropped out SunCal was eliminated and the list of four was narrowed to Catellus
and Lennar both of which entered into Agreements to Negotiate with the Ciry
Agreement The identical Agreements included among other things a prohibition
on lobbying between the developers and either the Ciry Council Planning Commission
or
other
City employees designated by the
understood
LRA Executive
Director
It was generally
that the Master Developer selection process would culminate in the
recommendation of one Master Developer via a staff report prepared by the LRA
Executive Director and his team Negotiation Team
C
otiations Contributions and Closed Sessions

Ne
On or about April 22 2015 Mayor Grayson arranged for a one

on meeting
with Mr Brown
in
order
to
seek advice about his
nascent
Assembly campaign
Mr
Brown was aware of the pending Project however according to Mayor Grayson the two
did
not
discuss the Master
Developer selection
or
any
Project specifics
28
Interview of Ms Barc
ne and Interview of Mr Silvern Also sec Exhibit B
Interview of Councilmember Leone Interview of Mayor Grayson and Interview of Councilmember

Hoffineister
Z Interview of Ms Barone Interview of Mr Wright Interview of Mr Grogan and Interview of Mr

Silvern Also see staff report from Mr Wright to the Ciry Council regarding Consideration and Approval
of the Agreements to Negotiate Between 1 the City of Concord Local Reuse Authoriry and Catellus
Development Corparation and 2 the City of Concord Local Reuse Authority and Lennar Concord
LLC dated May 26 2015 attached hereto as Exhibit O
See May 26 2015 Agreement to Negotiate between the Ciry of Concord and Catellus Section 11 page
9 and May 26 2015 Agreement to Negotiate between the City of Concord and Lennar Section 1 l page
9 Exhibit P
Z6 Interview of Mr Bjerke Interview of Mr Grogan Interview of Mr Wright and Interview of Mr

Silvern
Z
Interview of Mayor Grayson Interview of Mr Wright and Interview of Mr Grogan

Interview of
Mayor Grayson
JENKINS
HOGIN LLP
February 11 2016
Page 9
On June 5 2015 Mayor Grayson and Councilmembers Birsan and Hoffineister
along with Ciry staff attended a special meeting consisting of a site visit to Catellus
s
Mueller Project in Austin Texas Ms Rossi and Mr Antenucci attended the site
visit Mr Antenucci reports that at some point during the site visit Ms Rossi approached
him and suggested that it would benefit Catellus to connect with local third
party
developers in order to improve its chances of being selected as the Master Developer
and he stated that she had also communicated the same message to Lennar While staff
took
appropriate
Councilmembers
measures
to
prevent
interactions
side conversations of this kind
between
inevitably
took
and
among
the
place For instance
during this site visit Mayor Grayson in passing mentioned his upcoming Assembly race
and according to Mr Antenucci commented on the difficulry of raising campaign funds

within earshot of Mr Antenucci Mayor Grayson denies making this comment
At some time prior to June 16 2015 Mr Bonner contacted Mr Bunting to suggest
that G
F Bunting consider making a contribution to Mayor Grayson
s Assembly
campaign
campaign
On June 16 2015 G
F Bunting donated 1
000 to Mayor Grayson
s
29 Interview of Councilmember Birsan Interview of Councilmember Hoffineister and Interview of Mr

Wright Also see Minutes of the June 5 2015 Ciry Council site visit attached hereto as Exhibit Q
3o Interview of Ms Barone Inrerview of Mr Bjerke Interview of Mayor Grayson and Interview of Mr
Wright Also see Exhibit Q
31 Interview of Mr Antenucci
33 Interview of Mr Wright
3 Interview of Councilmember Hoffineister Interview of Mr Antenucci Interview of Ms Barone and

Interview of Mayar Grayson
3s Interview of Mayor Grayson

36 Interview of Mr Anetenucci
3i Interview of Mr Glenn Bunting
38
See
Campaign
Finance Information for
Grayson
For State
Assembly
2016
htt
cal
Commit2015
n
Campai
ov
ca
ss
access
1376431session
id
aspx
Detail
tees
received
view
attached hereto
as
Exhibit R
JENKINS
HOGIN LLP
February 11 2016
Page 10
On June 17 2015 Mayor Grayson and Councilmembers Birsan and Hoffineister
attended a special meeting consisting of a site visit to Lennar

s El Toro Project in Orange
County Ms Rossi was also present at the site visit
On June 18 2015 G
F Bunting donated another 3
s
The total amount donated by G
F Bunting to Mayor Grayson
s Assembly
campaign
campaign was 4
200 the maximum allowable contribution to individual candidates for
the
Legislature By the end of June 2015 three other entities with ties to Lennar
Scarborough Engeo and Mr Kay each donated 4
s campaign
In July of 2015 Catellus learned of the foregoing campaign contributions from an
unnamed source
On July 27 2015 Mayor Grayson and Councilmeinbers Birsan and Hoffineister
attended a public tour of Catellus

s Alameda Landing Development
On August 4 2015 Mayor Grayson and Councilmember Hoffineister attended a
public tour of Lennar

s San Francisco Shipyara Developinent Ms Rossi and Mr Buster
were
also
in
attendance
Mr
Brown
was
the
lead
presenter
At this tour
Councilmember Hoffineister reports that Mr Buster approached her to express concern
over what he believed to be inappropriate private meetings between Mayor Grayson and
Mr Brown
39 See Minutes of the June 17 2015 City Council site visit attached hereto as Exhibit S
See Exhibit S
See Exhibit R
4Z See Exhibit R
4j
See Gov Code
85300 et seq
44 See Exhibit R
4s Interview of Mr Antenucci
See Minutes of the July 27 2015 City Council site visit attached hereto as Exhibit T
47 Interview of Councilmeinber Hoffineister Interview of Mayor Grayson and Interview of Mr Wright
Also see notes from the August 4 2015 site visit attached hereto as Exhibit U
4s See Exhibit U
Interview of Mr Wright and Interview of Councilmember Hoffmeister Also see Exhibit U
Interview of Councilmember Hoffineister It should be noted however that according to Mr Btisrer he

was not
present
at
the Lennar Shipyard Tour a fact confirmed
by
the
notes
from the
August 4
2015 site
JENKINS
HOGIN LLP
February 11 2016
Page 11
In response to a question raised by one of the Master Developer finalists on
August 13 2015 Mr Wright sent an email to certain consultants working on the Project
requesting that they disclose any ongoing contracts with either Catellus or Lennar one of
these consultants was Mr Silvern In response Mr Silvern disclosed that between 2008
and 2013 HR
s New York Ciry office provided services to Catellus Mr Silvern was
A
not involved in this assignment More distantly in the 1990s HR

s Los Angeles
A
office worked on an economic impact analysis concerning a Specific Plan for property
around Union Station in Los Angeles then owned by a joint venture including Catellus
The property has since been sold
to
LA
County Metro Lastly Mr Silvern disclosed
that the HR
A New York office was awarded 000
30 assignment by a partnership
a
including SunCal Mr Silvern was not involvec in this project On August 14 2015
Mr Wright considered Mr Silvern

s disclosures and concluded that they did not create a
conflict of interest
On August 17 2015 Catellus received a phone call from an unnamed source

stating that certain of Mayor Grayson
s campaign contributors were connected to
Lennar
On or before August 19 2015 according to an email sent from Ms Barone to
Councilmember Birsan Mayor Grayson indicated to her that he may not want a staff
recommendation as to which Master Developer to select
visit attached hereto as Exhibit U Furthermore Mr Buster denies having ever made a comment to
Councilmember Hoffineister regarding Mayor Grayson
s meetings with Mr Brown at all
See Email from Mr Wright to Mr Silvern as well as Shawn Zovod Steve Rottenborn Mark O
Brien
Mr Ramiza and Amy Herman about COI check sent August 13 2014 attached hereto as Exhibit V
s See Email from Mr Silvem to Mr Wright regarding COI check sent August 13 2014 attached hereto
as Exhibit V
See Email from Mr Silvern to Mr Wright regarding COI check sent August 13 2014 attached hereto
as Exhibit V
See Email from Mr Silvern to Mr Wright regarding COI check sent August 13 2014 attached hereto
as Exhibit V
See Email from Mr Wright to Mr Silvem regarding COI check sent August 14 2014 attached hereto
as Exhibit V
5e See
September 24 2015 letter to Ms Barone from Mr Giacomini of Hanson Bridgert aerached hereto
Exhibit W
as
JENKINS
HOGIN LLP
February 11 2016
Page 12
On August 21 2015 Catellus

s lawyer Mr Andrew Giacomini of Hansen
Bridgett sent a letter to the Concord Ciry Attorney requesting an investigation as to the
campaign contributions Apparently Mr Coon refused Catellus

s request to investigate
at that time
On August 24 2015 Mr Wright sent a letter to both Lennar and Catellus stating
the deadline for presenting their last and best offer to the City was September 2 2015
On August 26 2015 Mayor Grayson returned the campaign contributions from
F
G
Bunting
Mr
Kay Engeo and Scarborough Mayor Grayson later delivered to Mr
Coon a letter from Jim Sutton his private counsel on the matter concluding that the
campaign contributions would not require his disqualification from the Master Developer
selection
Between August and September of 2015 Mayor Grayson and Ms Rossi met with
Mr Brown to obtain advice for Mayor Grayson

sState Assembly Campaign
See Email from Ms Barone to Mr Birsan regarding Deal Points meeting Lennar and Catellus sent
August 19 2015 attached hereto as Exhibit X
58 See Exhibit I
59 See Exhibit W
bo See August 24 2015 letter from Mr Wright to representatives of both Catellus and Lennar attached
hereto as Exhibit Y
See Concord Mayor Returns Donations Linked to Possible Weapons Station Developer by Lisa P
White printed in the Contra Costa Times on September 1 2015
tracostatimes
w
i
http
o
c
w
ord
miconc
co
w
nci 40
87
2
linked
ns
donatio
retums
mayor
507iconcord
station attached hereto as Exhibit Z Additionally see Minutes of the September 1
weapons
ossible
2015 Ciry Council Meeting attached hereto as Exhibit AA and August 28 2015 letter from Mr Jim
Sutton to Mayor Grayson attached hereto as Exhibit BB
62 On January 1 2016 Ms Christine Callahan counsel for Ms Mary Jo Rossi contacted my colleague Ms
Natalie Karpeles and indicatea that Ms Rossi will not voluntarily participate or provide an interview
However Ms Callahan indicated that per Ms Rossi Mayor Grayson Willie Brown and Ms Rossi met
one time in August of 2015 and there was no discussion of either the Naval Base or campaign
contributions
63
Interview of
Mayor Grayson
JENKINS
HOGIN LLP
February 11 2016
Page 13
On September l 2015 the Ciry Council met in closed session to discuss the
Master Developer process and the then
current term sheets
During this closed session Mayor Grayson raised a concern as to whether HR

A
and Mr Silvern in particular had a disqualifying conflict of interest due to the fact that
Catellus
was a
A
past client of HR
Mayor Grayson explained his concern to me as
follows I was having questions and in my own mind had developed questions about
s objectiviry and
A
HR
was
doing
my
own
research
This research led Mayor
Grayson to HR
s website where he discovered that Catellus is named as a client
A
This information coupled with his observations that HR

A leaned more towards
Catellus than Lennar caused Mayor Grayson to believe that there was a preference
and he wanted to see whether there was any validity to that perception so he did his
own research
One of the items discussed during this closed session includea both developers
position on afforaable housing
Prior to the conclusion of the September 1 closed session Mr Wright asked the
Council whether or not it wanted a recommendation from the Negotiation Team in the
final staff report it was his longstanding belief and that of other members of the team
that the Council had directed the team to prepare a staff recommendation as part of the
staff report that would be presentea at the conclusion of the Master Developer selection
6 Interview of Mr Bjerke Interview of Mayor Grayson Interview of Mr Silvern and Interview of Mr
Wright Also see Minutes of the September 1 2015 City Council Closed Session Meeting attached
hereto as Exhibit CC
Interview of Mayor Grayson
66
67
68
69

70 Interview of Mr Silvem and Interview of Mr Wright Also see Exhibit AA
Interview of Mr Wright and Interview of Mr Silvern Also see staff report from Mr Wright to the Ciry
Council regarding Report on Master Developer Term Sheets and Selection Process dated September 1
2015 attached hereto
as
Exhibit DD
JENKINS
HOGIN LLP
February 11 2016
Page 14
process The Council confirmed that understanding as reflected in the Closed Session
Minutes of September l 2015
There was u discussion as to a

uhether the City Council wished to have staff make a
recommendation in the
selection will be
staff report for the meeting on

September Z9 a
uhen the
made Ultimately the councilmembers concluded that consistent
with general city policy staff should make a recommendation

Furthermore it had been communicated to both Lennar and Catellus that there
would be a staff recommenaation at the conclusion of the negotiation process

On or about September 10 2015 eight days after the deadline imposed on both
developers by Mr Wright to provide the Negotiation Team with their best and final
offers Lennar sent staff an updated term sheet addressing affordable housing and
relenting on its prior insistence on obtaining a commitment for Phase II of the Project
The proposed modifications to the term sheet were not accepted
On September 16 2015 the Ciry Council met in closed session to discuss the
Master Developer process and term sheets Dtiring the meeting staff answered questions
raised by Council during the September 1 closed session and presented it with a draft
Interview of Mr Wright Interview of Mr Bjerke Interview of Mr Grogan Interview of Mr Silvern
Interview of Mr Ramiza Interview of Ms Chazan and Interview of Councilmember Brisan My

impression was that they were going to give a recommendation there wasn
t a vote on ir I felt that when
Wright walked out of the room that there was going to be a recommendation
73 See Exhibit CC italics in original

Interview of Mr Wright Interview of Mr Bjerke Interview of Mr Grogan and Interview of Mr
Silvern
Interview of Mr Wright Interview of Mr Silvern Interview of Mr Bjerke and Interview of Ms

Barone Also see 1 email from Suheil Totah with Lennar to Mr Wright regarding affordable
housing sent on September 10 2015 and resulting email exchange between Mr Wright Mr Ramiza Mr
Silvern Mr Labadie and Ms Chazan between September 10 and 1l 2015 attached hereto as Exhibit
EE and 2 email from Matthew Gray counsel for Lennar to Mr Wright Mr Silvern Mr Ramiza Ms
Mr Labadie re
Chazan an
i
Lennar Highlight
CNWS
Summary 15
10
9
Status on Reyuested
Items
sent on
September 10
2015
attached hereto
as
Exhibit FF
JENKINS
HOGIN LLP
February 1 l 2016
Page 15
staff report disclosing staff

s recommendation of Catellus as Master Developer At the
conclusion of this meeting the Negotiation Team members present Messrs Wright
Silvern and Ramiza understood that they would prepare a final version of the staff report
and the Council
s selection of the Master Developer would take place on September 29
2015
On September 17 2015 Mayor Grayson contacted Ms Barone regarding his

concerns that according to an unspecified source Catellus was negotiating with Seeno
and that Seeno was trying to gain control of the project through Catellus Specifically
Mayor Grayson was concerned that the City did not have enough protections in place
under the term sheet to prevent a third
party developer from gaining control of the
Project during Phase 2
On September 21 2015 in a memorandum to Mr Wri

ht and Mr Coon prepared
in response to Mayor Grayson
sabove
stated concern Mr Ramiza concluded that
both Master Developer semi

finalists have agreed to be bouna by a DDA that
only allows
transfers
circumstances
transfers
provision
to
or
nments
assi
in
certain
well
defined
limited
Both semi
finalists term sheets allow as a permitted transfer
affiliated entities and vertical
allowing
transfers
opportunities
O ther
absolure aiscretion
to
developers Lennar also includes a

entities
aFfiliated
non
for
special
assignments would only be allowed in City

s sole and
76 Interview of Mr Wright Interview of Mr Silvern Inrerview of Mr Grogan I am pretry sure that the
staff report presented to Council on the 16 contained a staff recommendation that does not shock me
They presented a semi
complete version because we were ready to go
Interview of Mr Grogan Interview of Mr Silvern and Interview of Mr Bjerke
i See email exchange between Ms Barone and Messrs Wright and Coon regarding Contidential sent on
September 17 2015 artached hereto as Exhibit GG
79 See Exhibit GG
80 See Confidential Memorandum from Mr Ramiza to Messrs Wright and Coon regarding Transfer and
Assignability under Master Developer DDA and Term Sheet September 21 2015 attache hereto as
Exhibit HH
JENKINS
HOGIN LLP
February 11 2016
Page 16
Ms Barone and Mr Wright both stated during their interviews their opinions that
Mayor
s concerns were unfounded as Catellus a privately held corporation
Grayson
woula
not
be
susceptible
to
takeover
involvement with Seeno
Mr Antenucci categorically denies any
On or about September 22 2015 Ms Barone instructed Mr Wright to remove the

staff
recommendation from the final staff report Mr Wright told me that he reporred
this
instruction
ro
both finalists
telephone to Lennar
to Catellus by way of an email ro Mr Antenucci and by
On or about September 23 2015 Mr Coon received a telephone message from
Mr Giacomini inquiring why the Ciry will no longer provide a staff recommendation in
the final report Upon inquiry Ms Barone explained to Mr Coon that the removal of
the staff recommendation was her decision albeit she took input from Council Later
that day the staff report was released to the public without a staff recommendation In
response Mr Giacomini told Mr Coon rhat Catellus had authorized him to transmit a
letter to the Ciry raising concerns about the Master Developer selection process
according to Mr Giacomini Mr Coon endeavored to persuade him not to send the

letter Mr Wright similarly attempted to persuade Mr Antenucci not to send the letter
out of concern that it would derail the selection process
In a memorandum dated September 24 2015 followin his investigation Mr
Coon revealed to Council that HR

A had also worked with Lennar between 2013 ana
2014
These facts coupled with the information that Mr Silvern presented to Mr
si Interview of Mr Antenucci
8222See201email
exchange between Ms Barone and Mr Helix regarding Closing the Loop sent on September
S attached hereto as Exhibit II
83 See email exchange between Mr Coon and Ms Barone Mr Wright and Mr Bjerke regarding
Telephone Call from Catellus sent on September 23 2015 attached hereto as Exhibit JJ
84 See Exhibit JJ
8iSeptember
See email 23
exchange
between Mr Wright and Ms Laperchia regarding 15
29 Staff Report sent on
9
2015 attached hereto as Exhibit KK
gb See email to Mr Coon from Mr Silvern regarding Urgent Need Contact Info on Any Catellus and
Lennar
Contects sent on September 21 2015 and email from Mr Silvern to Mr Coon regarding COI
Check
sent
September 21 2015
attached hereto
as
Exhibit LL
JENKINS
HOGIN LLP
February 11 20l 6
Page 17
Wright in August ultimately led Mr Coon to conclude that Catellus and Lennar were
basically on equal footing in their relarionship with HR

Silvern and there is no
A
credible explanation as to why Catellus would have been preferred over Lennar as a
prospective future client and therefore favored in the Master Developer selection
process As such no conflict of inrerest has at any time existed between HR
Paul
A
Silvern and the City of Concord nor have they engaged in any conduct suggesting
favoritism of Catellus over Lennar in the Master Developer selection process
D
Sebtember 24 2015 Hanson Bridgett Letter
The Hanson Bridgett letter signed by Mr Giacomini asserts that Lennar violated
the terms of the Agreement to Negotiate by lobbying the City Council Specifically the
letter contends that Lennar attempted to influence the Master Developer selection
process and thus violated Section 11 of the Agreement to Negotiate in the following
ways
l Orchestrating campaign contributions to Mayor Grayson

s Assembly campaign
in an effort to curry his favor and influence his vote on the Master Developer
selection
2
Engaging Mr Brown to lobby Mr Grayson in support of its proposal and

Influencing the City to remove a staff recommendation from the final staff
report
Included within this contention is an allegation that the Ciry Council
engaged in a serial meeting in violation of the Brown Act

E
Sehtember 2 7 2015 Lennar Response Letter and Refi

sal to Cooperate
Following the Ciry

s receipt of the September 24 2015 Hanson Bridgett letter Mr
Bonner transmitted a letter categorically denying any wrongdoing without addressing any
8 See Confidential Memorandum from Mr Coon to City Council regarding Concord Reuse Project
Allegea Conflict of Interest Involving Consultant HR
A Advisors Seprember 24 2015 page 5
attached hereto as Exhibit MM
88
See Exhibit MM
JENKINS
HOGIN LLP
February 11 2016
Page 18
Mr Giacomini
specific allegations made by
Mr Bonner states that Lennar will
in
the City
cooperate
s efforts to evaluate Catellus claims When contacted in
connection with this investigation in December 2015 Mr Bonner and his associates
declined
be
to
investigation
to
and elected to limit Lennar

s participation in this
from
letters
its attorney David Marroso of O
Melveny
Myers The
interviewed
Bonner letter also states that w

e rrust that as part of this effort the Ciry will also
evaluate whether Catellus has engaged in improper activities including activities in
breach of
its
agreement
wrongdoing by
Catellus
with the
City
The letter does not allege any specific
This report addresses those allegations concerning alleged
Catellus wrongdoing that have been brought to my attention during the course of the
ation
investi
F
Sebtember 29 2015 Meetin with Catellus
Following the receipt of the Hanson Bridgett letter Ms Barone in consultation
with the Ciry Attorney Mr Wright and Mr Ramiza cancelled the September 29 2015
scheduled
public hearing
Staff was extremely frustrated that Catellus had chosen to
have its lawyer send the letter and derail the selection process Mr Wright suggested a
meeting with Catellus the meeting was held on September 29 and included Ms Barone
Mr Wright Mr Bjerke Mr Coon and Mr Antenucci along with other officers of
Catellus
Staff hoped that the meeting might allay Catellus

s concerns so that the
process could move ahead without furrher delay Following the meeting it was clear to
staff that Catellus
s allegations would require a more formal response
89 See September 27 2015 letter from Mr Bonner to Ms Barone attached hereto as Exhibit NN
90 See Exhibit NN
91
92
93
9
9
Interview of Mr Wright
Interview of Mr Wright Interview of Mr Ramiza and Interview of Mr Silvern
Interview of Mr
Wright
JENKINS
HOGIN LLP
February 11 2016
Page 19
Lennar Mr Kav and Mr Nardnio Respond to Catellus

s Claims
In a letter dated Deceinber 24 2015 Vigo Nielsen counsel for Mr Kay and Mr
Naranjo replies to the Catellus allegations on behalf of his clients as follows
l Under California law there is a clear difference between lobbying and

making a campaign contribution and that under California state law there
can be no doubt that making a campaign contribution is entirely different

from and exclusive of engaging in discussions negotiations or lobbying of
Concord officials as stated in Section 11 of the negoriation agreement
2 Mr Kay made a personal contribution to Mayor Grayson

s campaign he did
not attend any fundraising events for Mayor Grayson
s Assembly Campaign
nor
did he
meet or
communicate
with Mayor
Grayson Additionally Mr
Kay did not communicate at all with any Concord Councilmembers

Planning Commissioners or any other Concora officials
3 Mr Naranjo made a personal contribution to Mayor Grayson

s campaign
Furthermore he did not communicate on any subject with Mayor Grayson
any of the Concord City Councilmembers Planning Commissioners or any
other Concord City Official
Mr Nielsen
s response does not indicate whether Mr Kay or Mr Naranjo haa any
communications with Lennar regarding the contributions and specifically whether
anyone acting on behalf of Lennar solicited them
In his letters of January 6 and January 25 2016 on behalf of Lennar Mr
Marroso replies to the Catellus allegations as follows
l Lennar has not given any money to the Committee for Councilmember
Tim Grayson
s campaign for State Assembly even though it would not
96 See December 24 2015 letter from Vigo Nielsen to Mr Jenkins attached hereto as Exhibit 00
97 See January 6 2016 letter fr
m Mr Marroso to Mr Jenkins attached hereto as Exhibit PP
g
See
January 25
016 letter frum Mr Marroso
tu
Mr
i
hcret
nkins attache
J
as
Exhibit
QQ
JENKINS
HOGIN LLP
February 11 2016
Page 20
have been improper to do so has not given money to others to contribute

to Mr Grayson
s Committee and has not pressured or coerced anyone to
contribute money to it
2 None of the individuals or entities that contributed to Mayor Grayson

s
campaign communicated with Mayor Grayson about the Concord Naval
Weapons Station
3 As a matter of law c
ampaign contributions are not forbiaden by or even
mentioned in Section 11 or anywhere in the Negotiating Agreement
Nothing in the Negotiating Agreement purports to abridge Lennar
s or
anyone else
s First Amendment rights
4
Mr Marroso describes Lennar

s relationship with the contributors as
follows
a
G Bunting is a public relations firm that does work for many

F
companies on a multituae of projects across the country including
Lennar Corp
Mr Kay is an attarney of whom Lennar is one of many clients
Engeo is a prominent engineering firm that has workeci with Lennar in

the past
io3
d Scarborough is an insurance firm which Lennar has not engaged or

contracted with in any capaciry
99 See Exhibit PP eniphasis in original

o See Exhibit PP
1
101 See Exhibit QQ

ioz See Exhibit QQ
io3 See Exhibit QQ
04
See Exhibit
QQ
JENKINS
HOGIN LLP
February 11 2016
Page 21
5 Lennar
did not discuss the Master Developer selection process with Mayor
Grayson through Mr Brown io5
Mr Marroso
s letter does not deny that Lennar solicited the contributions nor does
it confirm or deny whether Lennar spoke to Mr Brown about the Master Developer
selection
process and whether those conversations included discussions about campaign
contributions
II
What is Lobbvin within the Meanin of Section l l T
The architect of the Master Developer selection process was Mr Wright who
assembled a team of outside consultants to negotiate term sheers with the two finalists
and to recommend the superior proposal to the Ciry CounciL Mr Wright

s intent was to
create a process that would yield the objectively superior proposal without political
interference in essence a decision that would be made strictly on the merits of the two
proposals
To this end and in response to concerns that the finalists n

ight attempt ro
influence
the decision
makers Mr Rainiza drafted Section ll to the Agreement to
Negotiate which reads as follows
1 l
Lobbving Prohibition
Developer agrees and acknowledges that the Preliminary Stage and
DDA Stage negotiations shall take place with the LRA Execurive Director
the City
s legal financial and planning advisers and such other Ciry parties as
may be designated by the LRA Executive Director from time to time
collectively the City

Designated Team Developer shall not engage in
discussions negotiations or lobbyinh of any Ciry Council or
Planning
Commission members or other
City employees or officials as may be
designated by the LRA Executive Director from time to time collectively
Excluded City Parties unless requested to do so by the Ciry

Designated
Team for specific purposes related to the negoriations Nothing in this Section
11 shall prevent i responses to requests for inforniation from one or more
Excluded Ciry Parties providea such responses are directed to the Ciry
Designated Team ii Developer

s participation in any question
answer
and
10
See Exhibit
QQ
JENKINS
HOGIN LLP
February 11 2016
Page 22
sessions workshops or tours approved in writing by the City

Designated
Team or iii Developer

s participation in public events or community fora at
which one or more Excluded City Parties are present provided Developer does
not engage in communications with such Excluded Ciry Parties at such events
that
intended
are
to
influence
the
Preliminary Stage
or
DDA
Stage
negotiations In the event of Developer

s violation ofits obligations under this
Section 1 l Ciry may immediately terminate this Agreement by written notice

to Developer without affording Developer any opportuniry to cure such
violation
The key phrase in Section 11 is that neither developer shall engage in discussions
negotiations or lobbying of any City Council or Planning Commission members or other
Ciry einployees or officials as may be aesignated by the LRA Executive Director from time
to
time
There
is
no
definition of the word
lobbying
in
the Agreement
Section 18
states that the Agreement shall be construed in accordance with the laws of the State of
California
The California Civil Code governs the interpretation of contracts
Section 1644 of that Code provides that t
he words of a contract are to be understood
in their ordinary and popular sense rather than according to strict legal meaning Unless
used by the parties in a technical sense ar unless a special meaning is given to them by
usage in which case the latter must be followed The paramount rule in interpreting a
conrract is to give effect to its true inrent iob
The issue that arises here is whether Section 11 was intended to use the word
lobbying in its ordinary sense defined by Merriam

Webster as influencing government
decisions and by dictionary
com as trying to influence public officials or whether it
intended
to use
it in the
technical
sense
found in Government Code
87100 aka the
Political Reform Act where campaign contributions are excluded from the definition of
lobbying
In their letters both Mr Nielsen and Mr Marroso contend that the

interpreration of Secrion 11 is controlled by the Political Reform Act
As explained to me by the authors of the Agreement the purpose of Section 11

was to advance Mr Wright
s goal of precluding the finalists from influencing decision
makers by means other than the merits of their proposals In other words to insulate the
10b
See California Civil Code
1636
1641
JENKINS
HOGIN LLP
February 11 2016
Page 23
makers
decision
from outside influences whatever they might be or however they might
conveyed
be
In drafting this section Mr Ramiza advised me that he used the word
lobbying as it is commonly understood in the English language nor in its technical

Mr Ramiza
s unaerstanding of the lobbying prohibition is that it intended to
sense
preclude an end
run by either finalist directly or indirectly to the decision
makers The
word lobbying in Section 11 is listed with discussions and negotiations two other
verbs suggestinginfluence
that the finalists are to avoid any activity that might be perceived as
attempting
to
the decision
makers
The exclusion of campaign contributions
in the Political Reform Act has no bearing on Secrion 11 if the donarion of campaign
contributions was meant to influence Mayor Grayson then the contributions violated the
lobbying prohibition
According to Mr Wright and Mr Ramiza both developers understood this
ordinary meaning
of rhe
lobbying prohibition
in
Section
11
Neither developer
questioned its meaning nor did they at any time ask whether the word lobbying was to
be
interpreted in a technical sense or to exclude activities such as making campaign
donations
Had they not understood the prohibition both developers had ample
opportuniry tc ask Ciry staff for clarification indeea communications between Mr
Wright and Mr Ramiza and the representatives of the two developers were continuous
and numerous during the time period following the execution of the Agreements
I reject the argument that the lobbying prohibition in Section 11 excludes
campaign contributions
It is fair to conclude that the agreement bound both Catellus
and Lennar to refrain from engaging in any discussions negotiations or any other actions
intended
to influence any Ciry Council or Planning Commission members or other Ciry
employees ar officials
A
Do
the
Contributions
to
Mavor
s
Gravson
Lobbyin on Behalf of Lennar
n Constitute
pai
Cam
Prior to June 16 2015 Mr Bonner conracred Mr Bunting to suggest that G

F
Bunting consider making a contribution

to Mayor Grayson
s Assembly campaign Mr
for
Bunting thereafter arrangea

10
Interview of Mr Glenn
Bunting
his
company
to
make
the
contribution
as
an
JENKINS
HOGIN LLP
February 11 2016
Page 24
accommodation to Mr Bonner something his company does for its clients from time to
time Shortly thereafter Mayor Grayson also received contributions for the maximum
allowable amount from Mr Kay Scarborough and Engeo Mayor Grayson asserts that
he was unaware of these contributor
s connections with Lennar at the time they were
made and until that connection was made public
In
light of the direct
evidence
that Mr
Bonner
solicited
F
G
s
Bunting
contribution and discussed Engeo

s contribution with Mr Eliahu it is more likely than
not that he or someone acting on his behalf also solicited rhe conrributions from Mr Kay
and Mr Naranjo neither of these donors have any known connection with Concord or
with Mayor Grayson
s campaign aside from their connections with Lennar Our review
of campaign contribution records with the Secretary of State indicates that neither has a
history of contributing
to
local campai
ns in Concord
Lending further support to this
conclusion is the carefully chosen language in Mr Marroso

s two letters on behalf of
Lennar
these
Mr Marroso states in connection with this issue that Lennar neither coerced
contributions
nor
reimbursed
the
contributors
Aware
as he was
of this
s interest in the genesis of these contributions Mr Marroso

investigation
s letters
conspicuously do not deny that Lennar solicited the contributions

Additionally Mr Marroso concludes that because the Political Reform Act
s
technical definition of the term lobbying excludes campaign contributions Mr Bonner

could have directly contributed to Mayor Grayson
s campaign in exercise of his First
Amendment rights and without violating the terms of Section 11 However Mr Bonner
chose not to do so but instead suggested that G

F Bunting and likely Mr Kay and
Scarborough contribute to Mayor Grayson
scampaign Given Mr Marroso
sconfidence
l08 Interview of Mr Bunting
109 Uri Eliahu CEO of Engeo stated that his company was founded in Concord and is still local and has
an interest in local politics He said that his company rourinely makes political contributions and that the
contribution to the Grayson campaign was his iaea and not prompted by a request from Lennar Mr
Eliahu stated that befare making the contribution he asked Mr Bonner whether the latter thought the
contribution woula generate any problenis and was told it would not Engeo provided a list of its 2015
political and charitable contributions that included several campaign contributions to candidates for State
i
an
local offices in the Concord area
10 Mr Nielsen
s December 24 2015 letter confirms that Mr Naranjo and Mr Kay had no involvement
with the
City
JENKINS
HOGIN LLP
February 11 2016
Page 25
that Mr Bonner
Lennar could have contributed directly one could reasonably infer that
Mr Bonner
Ixnnar either knew or suspected that the provisions in Section 11 would
have precluaed such conduct or at least that a direct contribution would have cast a
negative light
on
s participation in the selection process

Lennar
Aside from that Mr
ennar could have foreseen that the contributions made at their behest would
I
Bonner
have put Mayor Grayson in an awkward position when they came to light
Lastly both Mr Nielsen and Mr Marroso conclude that campaign contributions
e lobbying in the technical sense constitute a form of speech protected by the First
i
Amendment to the Constitution however this is beside the point The issue here is not
whether
the contributions
were
constirutional
but
whether
they
were
made
in
contravention of a contractual provision to which Lennar voluntarily chose to be bound
A party may voluntarily agree to waive constitutional rights in order to participate

in the process
leading up to the award of a contract Some cities preclude campaign

contriburions by entities actively biading on ciry contracts l i In this instance both
Lennar and Catellus agreed as a condition of participating in the selection process to

allow their applications to be decided on the merits and to avoid any efforts to influence
makers
decision
The first amendment claims
are
red
herring
The issue here is
whether Lennar acted contrary to the Agreement

Two possible conclusions may be drawn from Lennar
s solicitation of these
campaign
contributions
anonymously
The
first
is
that
Lennar
orchestrated
the
contributions
magnanimously
without any expectation of receiving anything in return

This would be consistent with Mayor Grayson
s insistence that he was unaware of the
Otherwise referred to as pay
play laws a growing number of states and municipalities have enacted
to
measures limiting or prohibiting campaign contributions from parties bidding for a prospective contract
with the City For instance the City of Los Angeles prohibits a person who bids on or submits a proposal
ar other response to a contract that has an anticipated value of at least 000
100 and requires approval by
the elected City office that is held or sought by the person to whom the contribution would be given from
making can
paign contribution to the Mayor the City Attorney the Controller or a City Couneil
member Los Angeles Ciry Charter section 470
c 12 B The Ciry of Los Angeles takes the
provisions of its Charter one step further and incorpora
es section 470
c 12 into every contract
solicitation and additionally requires prospective bidders to supply the names of their agents or principals
to ensure
compliance
with
section
c 12 Los Angeles Ciry Charter

470
section
c 12 H
470
JENKINS
HOGIN LLP
February 11 2016
Page 26
relationship between the contributors and Lennar until the issue was brought to light by
the press and by Catellus
The alternative conclusion is that Lennar certainly orchestrated one and possibly
three contributions with the specific intent of generating goodwill with Mayor Grayson in
order
to
enhance
its
position
in
the
Master
Developer
selection
process
The
contributions were not token donations they were in the maximum amount allowed by
law The contributions materially assisted Mayor Grayson to demonstrate his fundraising
prowess early in the campaign possibly giving him an advantage over his competition
There is no evidence that Lennar and Mayor Grayson collaborated in this endeavor or
that Mayar Grayson was even aware of it at the time Nevertheless the fact that Lennar
concealed its involvement by using at least one pro to donate at leasr one contribution
to Mayor Grayson
s campaign suggests a clandestine effort to advance its interests in the
process whether or not it actually did so
Regarded in that way the
selection
contributions would constitute lobbying within the meaning of Section ll

Mayor Grayson suggests that his return of the contributions on Au
ust 26 2015
occurred
wrongdoing
The relevant inquiry however is why the
contributions were made in the first instance not whether they were retained
establishes that
no
Did the Meetings between Mr Brown and Mavor Gra Constitute
Lobbying on Behalf of Lennar
Catellus contends that Mayor Grayson met with Mr Brown on numerous

occasions and that Mr Brown ostensibly lobbied Mayor Grayson on behalf of Lennar It
is establishea that Mr Brown has a longstanding relationship with Mr Bonner going

back at least to when Mr Bonner worked for Mr Brown and business connections with
Lennar and that Mr Brown is a registered lobbyist in San Francisco When Mr Brown
was Mayor of San Francisco he favored Lennar to serve as Master Developer of the San
Francisco Shipyard project despite a contrary staff recommendation in favor of another
developer Mr Brown appointed the selection committee that chose Lennar as the
Master Developer for Treasure Island From these facts Catellus concludes that Mr
11z Interview ofMayor Grayson I had many contributi

nscome in within a very short period of time and
there
was some
quick fundraising taking place
to meet
deadline for Sacramento
JENKINS
HOGIN LLP
February 11 2016
Page 27
Brown had obvious motivation and opportunity to lobby Mayor Grayson but Catellus has
no evidence that Mr Brown engaged in such lobbying
Mayor Grayson states that he initiated contact with Mr Brown exclusively to seek
political advice regarding his Assembly campaign in view of Mr Brown
s extensive
political experience and network Mr Brown
s political expertise is well
known and this
is a perfectly plausible reason for Mayor Grayson to seek Mr Brown

scounsel According
to
Mr
Grayson they met twice once in April and again in August of 2015 the second
Rossi
and the two never discussed the Master Developer selection
time with Ms
process
The
concerns
raisea
by
Catellus
are
purely
circumstantial
While Mayor
saecision to kick off his cainpaign during the Master Developer selection process
Grayson
seems
entirely coincidental
Mayor Grayson could have known
of
Mr
s
Brown
connections to Lennar if not the totality of those connections He certainly would have
haa some awareness of the relationship as a consequence of the August 4 San Francisco
Shipyard tour which was led by Mr Brown and of the possibiliry that meeting privately
with Mr Brown might create the appearance of impropriery during the Master Developer
selection process Nonetheless the investigation resulted in no evidence to contradict
or
to
corroborate Mayar Grayson

s description of the meetings
There is no basis to
conclude that Catellus

ssuspicions have merit
C
The Letters in SuUUort of Lennar po Not Constitute Lobbyin on Behal f of

Lennar
In late Seprember in anticipation of the scheduled September 29 2015 public

hearing on the selection of a Master Developer the City received numerous letters
encouraging the Council to award the contract to Lennar Some of these letters were
local but many were authored primarily by San Francisco

based entities companies and
113 Interview of Mr Wright When we took the Councilmembers to Hunter
s Point Willie Brown was
there holding court Dliring Brown
spresentation he talked about how during his tenure as mayor he
had done things for the neighborhood and how he had worked with affordable housing advocates and
worked closely with Lennar during this process and liked Lennar
14
Interview of Ms Barone and Interview of Mr
Bjerke
JENKINS
HOGIN LLP
February 11 2016
Page 28
persons who had no connection with Concord but who had some relationship with
Lennar For instance the executive director of the Family Justice Center contacted Mr
Bjerke and informed him that he was asked to write a letter in support of Lennar and
asked whether such letter would be
appropriate It is unclear why the Family Justice
Center would have any motivation or reason to care who was ultimately selected as
Master
Developer for
the
Project
It is obvious from the riming similar content and
identities of the authors of the letters that Lennar orchestrated them Ms Barone recalls
asking Mrform
Coon if such endorsements constituted lobbying and he opined that they were
merely
of public
comment
16
would be permissible under Secrion
Lennar did not ask Mr Wright if such endorsements
11
prior
to
l
arranging for their delivery
The endorsement letters unquestionably were intended to influence the Council
However as the Ciry Attorney noted at the time they were delivered to the Council as
part ofand within the framework of the public process established for consideration of the
two
proposals
Unlike the campaign contriburions which were made outside the
framework of the process the letters were not directed to a single Councilmember with
the
potential expectation of garnering favor
rebuttal
at
the
Additionally the letters were subject to
public hearing Section 11 intentionally reserves for the developers the
abiliry to participate in the public process to their own advantage This only makes sense
Thus there
are
material differences between the
two
activities
While the letters are a
form of lobbying in the broadest sense it is my conclusion that they were not proscribed
by Section 1 l
D
ations that Catellus Lobbied Citv Staff by Offering Them Tickets to

Alle
Golden State Warriors Plav
Off Games
In an email to Ms Barone Mayor Grayson questions whether Catellus an affiliate
of Catellus or someone connected in any way to Catellus purchased or provided

unspecified Concord Ciry staff inemhers wirh free tickets
to
attend
an
NBA
i l
s
game
Interview of Mr Bjerke
110 Interview of Ms Barone
i Interview of Mr Wright
See email from Mayor Grayson to Mr Coon regardin News Alert Developer accused of improper
lobbying in 6
billion East
Bay project
sent
September 26 2015
attached hereto
as
Exhibit RR
JENKINS
HOGIN LLP
February 11 2016
Page 29
Others interviewed for this investigation also report

hearing this rumor Ms Barone
of
her
staff
and
no
inquired
one indicated they had received tickets
There is no
evidence to support the truth of this claim

E
Do the Conversations beta

veen Councilmembers and Catellus and Lennar
ReUresentatives at Various Functions Constitute LobbZing

At
principally
seeing
least
two
Councilmembers
Steve Buster
and
talking
to
report
seeing representatives of Catellus
at communiry events One Councilmember similarly reports

Mr
Bonner
at
an
event
Durin
those
occasions
Councilmembers report that conversations were social and no mention was made of the
Master Developer selection process
Catellus representatives state and Mr Wright
confirms
that they
askea Mr
Wright
if attendance
at
communiry
events
was
permissible Mr Wright advised both developers that they were free to attend such
events provided they did not discuss the selection process
No evidence has been
adduced to suggest that either developer violated this admonition
Further Section 11
carves out a specific exception far participation in conlmunity events

III
Did Lobbvin bv Lennar Result in Removal of a Staff Recommendation

from the Final Staff Report
Several members of the Negotiation Team reported that the Team uniformly held
the expectation that the final staff report to the Ciry Council would include their
19 Interview of Mr Wright
120
Intervicw of Ms Barone There was als a rumor that someone on staff got tickets to a Golden State
playoff game but the timing of that rumor did not make sense because of when the playoff games were
and I had questioned staff and no one admitted to receiving any tickets and then it finally came out that
Garaventa had received the tickets and we checked with Catellus and Catellus stated that at a meeting
with the Garaventas Garaventa asked if Catellus could get them tickets and Catellus said no
1zL Interview of Councilmember Hoffineister and Interview of Councilmember Birsan
Interview of Cc
uncilmember Birsan
3 Interview of Councilmember Hoffineister and Interview of Councilmenlber Birsan

i
Interview of Mr Anenucci and Inrerview of Mr
Wright
JENKINS
HOGIN LLP
February 11 2016
Page 30
recominendarion f
preferred Master Developer
Mr Wright had assembled this
team of experts precisely for the purpose of negotiating the best terms they could
concurrenrly with both finalists and informing the Council which Developer
s terin sheet
offered the best deal for the City According to Ms Barone it is customary for staff
reports in
Concord
to
include
staff recommendation
Indeed the Request for
posals stated as follows

Prc
The LRA anticipates that one of the two Candidate Master Developers will
be recommenaed for desi

nation by the City Council as the Master Develo
er
eligible to negotiate with the LRA a proposed Disposition and Development
Agreement to be consistent with the negotiated Term Sheet and the fornz of
Disposition and Development attached hereto with such modifications as have
been requested by Respondent in its proposal and agreed to by the LRA in its
discretion Emphasis added
On August 19 2015 Ms Barone inaicated via email to Councilmember Birsan
that she want

ed direction from Council on whether it want
ed or didn
twant a staff
the 16
in regards to which of the two firms staff views as meeting
recommendation
more
on
of the needs of the
128
Council goals Ms Barone

s second
communiry and the s
goal was to avoid a 2 vote between the firms That would be highly problematic
The uncertainry as to whether the Council would want a recommenaation may
have stemmed in part from the experience months earlier when the Council was stung by
the criticism that it had ceded too much authoriry to staff when it winnowed the field of
applicants from eight to four In view of this uncertainry Mr Wright expressly raised the
issue
with the Council
during the September 1
2015 closed session
The Council
Interview of Mr Bjerke Interview of Mr Grogan Interview of Mr Wright and Interview of Mr

Silvern
Interview of Ms Barone
128 The public hearing was originally scheduled for September 16 but delayed to September 29
129 See Exhibit X
130
See Exhibit X
JENKINS
HOGIN LLP
February 11 2016
Page 31
discussed the issue and the minutes of the closed session memorialize Council
s decision
to include a staff recominendation in the final staff report

A near final version of the staff report was provided to the Councilmembers in
closed
session
on
recommending
September 16 2015
Catellus
on
The report includes a paragraph expressly
the basis of its superior
term
sheet
The Council did not
question or object to the presence of the recommendation or take any action to remove it
from the report Later however in the days following the September 16 closed session
as shown by this email from Ms Barone to Mr Wright a majoriry of Councilmembers
decided that they no longer wanted a staff recommendation
A key issue that Laura wants to discuss is her desire for there NOT to be a
Ciry staff recommendation I know we discussed this in closed sessian and we
left closed session with direction to include the recommendation which you
and I both recommended happen however it is clear from my recollection of
the item in closed session and my subsequent one
ones with Council that
on
there may not be a majoriry of Council who want a staff recotnmendarion
In the days following the September 16 closed session Mayor Grayson and
Councilmember Hoffineister had a change of heart regardin the inclusion of the
recommendation in the report This occurred in the context of both Mayor Grayson and
Councilmember Birsan earlier in the month raising c
uestions about Catellus that staff
believed had no validiry and created concern among rhe Negotiation Team that
Councilmembers
who favored
Lennar
were
attempting
to
smear
Catellus
These
allegations included the following

Team inember Paul Silvern of HR
A had a conflict of interest and favored
Catellus due to his firm

s prior work with Catellus a concern which was first
reviewed in August
13 See Exhibit CC
132 See email from Ms Barone to Mr Wright regarding Draft 9

29 staff report atrached hereto as Exhibit
SS
JENKINS
HOGIN LLP
February 11 2016
Page 32
Catellus was secretly negotiating a deal with Seeno Company that would give
Seeno a major role in the Project
Catellus had given Golden State Warrior tickets to City staff and
Catellus was vulnerable to being acquired by outside interests
Each of these allegations was investigated by Mr Wright Mr Ramiza and
or the
Ciry Attorney and determined to have no merit
Further within days of the September 1 closed session the Negotiation Team
received overtures from Lennar
s counsel Matthew Gray to the effect that Lennar wanted
to modify its ternz sheet notwithstanding that the term sheet deadline of September 2
had
passea
Lennar sought in particular to improve its proposal on the affordable

housing component which the Negotiation Team had identified to the Council as
significantly weaker than Catellus
s proposal Lennar also suddenly backed off its staunch
requirement for a commitment beyond Phase I a position that staff recommended
against ro the Council in closed session At all times during the negotiation process the
term sheets were confidential and Lennar ostensibly had no reason to know that its
affordable housing proposal was aeficient or its desire for a Phase II commitment had met
with such sriff opposition Several members of the Negotiation Team stated that ir did not
seem coincidental that Lennar sought ro improve the weakest parrs of its proposal at that
int in time and speculate that information may have been leaked from the closed
pc
session
I have not discovered any direct evidence demonstrating that the foregoing
concerns raised about Catellus or the late efforts by Lennar to iinprove its term sheet
were linkea coordinated or the result of lobbying by Lennar They were however raised
at the 11
hour as it became more and more obvious to the Council that the Negotiation
Team
preferred and would be recommending the Catellus
term
sheet
The culmination
of this activiry occurred when three Councilmembers communicated to Ms Barone their

desire to remove the recommendation favoring Catellus from the report Ms Barone
discussed the recommendation issue over an intense two

day period with Mr Wright and
Mr Coon and
ultimately directed
Mr
Wright
to remove
the recommendation from the
JENKINS
HOGIN LLP
February 11 2016
Page 33
Mr Wright reported this decision to Catellus in an email and to Lennar by
report
telephone
By this time Mr Wright had told Catellus that the staff recommendation
would favor it
133 when Mr Wright informed Mr Antenucci that the recommendation
would be removed Mr Antenucci believed that this was a direct result of Lennar
s
lobbying efforts This proved to be the final straw for Antenucci leading to the delivery
to the City of the Hanson Bridgett letter
Ms Barone subsequently has taken the position that the decision to remove the
recommendation
was hers to make and that she made it in order to avoid putting the
Council in a box
I varied from the usual protocol of including a staff recommendation that
recommended one of the two firms to Council for three reasons First because
our
selection
process has
worked
ve ended up with two of the best firms

we
in the Nation competing to be our Phase 1 Master Developer and both firms
are
qualified
and
capable
the staff report stands
differences
between
recommendation
its
own
was
of
on
the
successfully accomplishing the project

its
two
needed
Secona
it successfully highlights the major
own
Tern7
Sheets
tbelieve
didn
staff
Third having a staff recommendation creates
if Council selects the same firm staff recommends then

Council has rubber stamped staff
s work if Council selects the firm staff
controversy
trecommend the other allegations arise I was hoping to avoid creating

didn
unnecessary controversy
Ms Barone contends that she first made the aecision and then informed the
Councilmembers in individual meetings of that decision She steadfastly took that

posirion in her interview for this investigation
Ms Barone
s explanation
is
belied
by the email trail
The communications
between Ms Barone and Mr Wri

ht show clearly that Ms Barone had heard from three
133 See email from Mr Wright to Mr Antenucci regarding Staff Recommendation sent September 22
2015 attached hereto as Exhibit TT
13
See eniail exchange between Ms White of the Contra Costa Times and Ms Barone regarding
CNWS Staff
Report
sent on
September 30 2015
attached hereto
as
Exhibit UU
JENKINS
HOGIN LLP
February 1 l 2016
Page 34
Councilmembers
Grayson Hoffineister
recommendation from the report
These
under considerable pressure to do so
and
Birsan
who
wanted
to
excise
the
communications suggest that Ms Barone was

Mr Wright also communicated what was
happening and his frustration over it to Mr Antenucci in a series of contemporaneous
emails
September 17 2015 The Mayor is adamant that based on a source within
Seeno that will go unnamed because of fear of retaliation by the Seeno Co
there are conversations occurring between Catellus and Seeno That Seeno is
plotting
some
way of
gaining control of the project through Catellus
He
t know how and he says he has been a non

doesn
believer but his source is
solic enough he does believe Catellus and Jackie Seeno have

are meeting He
is not convinced we have adequate protections in place to keep that from
happening in the term sheet He says this was all about pride for Seeno and he
is still seething ar how he was cut out of the process

September 21
2015
Steve staff report will go out tomorrow but Council
appears to have reversed its decision to staff so there may not be a
recommendation from staff
September 22
2015
Council has officially reversed its request for a staff
recommendation and the staff report will be issued without one over my
strong objections The Council is aware that if a recommendation were made

that it would be for Catellus
13 See email from Mr Wright to Messrs Antenucci and Buster regarding I need a Confidentialm
response ASAP sent on September 17 2015 attached hereto as Exhibit W
13ti See email from Mr Wright to Mr Buster regarding Recommendation sent September 21 1015
attached hereto as Exhibit WW

13
See Exhibit TT
JENKINS
HOGIN LLP
February 1 l 2016
Page 35
September 25
2015
Ps reporter asked me point blank did Council

Mayor
Direct me to withhold recommendation and my answer was no my boss the

Ciry Manager did after she talked w Council
The concern that a recommendation would limit Council

s options and creare
controversy
had arisen months before when the Council was criticized for ceding too
much
authoriry
to
the staff when
it winnowed
the field down
to
four
developers
Given
that this criticism was first raised in June that dilemma was foreseeable Yet the Council
s concern about this issue was not raised in closed session either on September
majority
1 or 16 it was stirred in the days following the 16 after staff

s recommendation of
Catellus
was
communicated
timing of these
made
aware
events
to
the Council
in the
September 16 closed
session
The
the modification of the agreed protocol after the Council was
of the staff
s recommendation
creates the appearance whether warranted
or not that the sudden shift in direction was a reaction to staff making explicit its
recommendation of Catellus
Ms Barone contends that her decision to remove the staff recommendation was
within her
authoriry
Ordinarily
that would be
true
In this instance however the
Council determined at its September 1 closed session that it wanted staff to recommend
a Master Developer in the final draft of the staff report This decision was memorialized
in the minutes of the meeting Ms Barone had no authoriry unilaterally to countermand

a Council decision
The Brown Act requires that decisions of the Council be made in properly noticed
The
meetings
on
one
meetings
conducted
between
Ms
Barone
and
Councilmembers Grayson Birsan and Hoffiniester resulting in a reversal of the Council

s
September ls decision to include a recommendation in the final staff report constituted a

hub
spoke
and type serial meeting in violation of the Brown Act Ms Barone lacked
authoriry
to
countermand
the
s
Council
direction indeed
according to her own
138 See email from Mr Wright to Mr Antenucci regarding Demand for pocument Retention sent
September 25 2015 attached hereto as Exhibit XX
139 Two Councilmembers were present in one of the meetings Email from Ms Barone to Jenkins Laura
was around for a portion of my meeting with Dan

See Government Code section 54952
2b
JENKINS
HOGIN LLP
February 11 2016
Page 36
contemporaneous description of the circumstances resulting in the removal of the staff
recommendation she did it when told to do so by a majoriry of the Council acting outside
a meeting
I have no direct evidence that Lennar was behind this effort and based on my
interviews with the Councilmembers I do not believe that the three Councilmembers
motives in seeking removal of the recommendation were
necessarily the same The
evidence establishes that the Council requested a staff recommendation but thereafter
independently communicated their changed positions during one
on discussions with
the Ciry Manager There is also evidence that the City Manager was acting in response
to pressure from Councilmembers indicating that a
majoriry may not want a staff
recommendation Note that a Brown Act occurs even if it is inadvertent Thus even
if the Councilmembers were unaware of each other

s conversations the City Manager
s
action based on the individual communications outside a meeting rransfonned the
individual communications into an illegal serial meeting regardless of any other ambiguity
or conflicting eviaence While the evidence obtained does not explain the reasons for the
reversal of the direction to staff to give a recommendation the events in September
eroded a meticulously devised plan to select a Master Developer solely on the basis of
merit because Councilmembers injecte
i themselves to change the agreed procedures after
the Council became aware of the Neg
tiation Team
s recommendation
VI
Third Partv Overtures
This investigation has revealed that several local entities have made overrures to
Catellus to acquire an interest in the Project and in the course of doing so some have
promised
to
exercise influence
over
the selection process
In the short space of time I
have had to conduct this investigation and hampered further by not having been given
the opportunity to speak with all interested parties it is difficult to ascertain whether
these
played
Councilmembers deny
overtures
14 See Exhibit II
142 See Exhibit CC
3 See Exhibits X II and SS

1
See Exhibit II
any
role
in
that it did
the selection process
All four of the participating

Mr Antenucci reports that he both rejected the
JENKINS
HOGIN LLP
February 11 2016
Page 37
overtures
this
and
reported theili conr

usly tMr Wri
mporanec
ht Mr Wright confiruis
Mr Marroso speaking for Lennar denies that such overtures were made to
Lennar
These overtures appear in part to be an unintended consequence of the dual

negotiation process established by Mr Wright By negotiating with both finalists over a
protracted period of time opportuniry was created for third parties to attempt to interject
themselves into the process
The Ciry Council was unaware of these overtures although emails from Mayor
Grayson suggest that he was troubled by what he understood to be overtures by Seeno to
Catellus Councilmember Birsan also raised a concern about the vulnerabiliry of
Catellus to a takeover Staff took this concern seriously enough to araft a memorandum
reinforcin the limitations on transfer and assignment in the term sheets with Catellus
and Lennar
In the inal analysis it is apparent that Mr Wright

s carefully conceived plan to
manage the process without political interference was not impervious The investigation
did not reveal enough about these overtures to form a conclusion as to whether they
played any role in the decision
making process
V
Accusations A
ainst Catellus Levied bv Lennar
Through Mr Marosso
sJanuary 6 2016 letter Lennar alleges that Ciry staff was
favoring Catellus over Lennar as 1 Lennar was not informed of the removal of the staff
recommendation 2 staff did not share with Lennar accusations made by Catellus
In fact Mr Wright took these starements so seriously that he consulted with Mr Coon Mr Ramiza
Ms Barone and Mr Silvern and they decided to amend the Agreements to forestall third parties from
affecting the selection process by negotiating side
deals with the Master Developer candidates
146 Beeween September and October of 2015 legal counsel for Seeno presenred the Ciry with a Public
Records Act request for documents related to the Master Developer selection process in an effort to
determine why Seeno was eliminated from consideration 15 months earlier
See Exhibit GG
i
See Exhibit HH
ENKINS
HOGIN LLP
February 11 2016
Page 38
against it and 3 that staff shared confidential proprietary inforniation about Lennar
with Catellus
Mr Wright states that he informed a Lennar representative by telephone on the

same day he informed Mr Antenucci that there would be no staff recommendation in the
final report Moreover Mr Wright states that he did not share accusations that Lennar
was paying people to appear at Council meetings because there was no credence to these
allegations and he had summarily rejected them
Following the cancellation of the September 29 public hearing Catellus

represenratives requested a meeting with sraff to obtain a better understanding of
s term sheet Lennar contends that its confiaential information was shared with
Lennar
Catellus at this meeting Both Mr Wright and Catellus deny that any confidential
information was shared There is no evidence to support the contention that
confidential information was compromised in the meeting
It is true rhat the Negotiation Team concluded that the Catellus term sheet was
superior to Lennar
s and by mid
September had made Catellus aware of that This did
not constirute more favorable rreatment the very point of the process was to evaluate
and compare the term sheets on their merits
VI
Movin Forward in Li
ht of the Accusations Raised
A
Remedies Available Under the A

reement
Section 11 provides that the Ciry Council may in its discretion disqualify a
developer rhat engages in lobbying in violation of its provisions specifically Section 11
states that i
n the event of Developer
sviolation of its obligarions under this Section 11
City may immediately terminate this Agreement by written notice to Developer without
affording Developer any opportunity to cure such violation
In my opinion Lennar engaged in lobbying activities that are prohibitea by Section

11
It is up
to
Interview of Mr
the Council
Wright
to
determine whether
and Interview of Mr Antenucci
it agrees with this conclusion
If the
JENKINS
HOGIN LLP
February 11 2016
Page 39
Council agrees the Council mav terminate the Agreement with Lennar but it does not
have to
The Council may consider the benefit to the public of still having two
competitive proposals to choose from and to consider the fact that the campaign
contributions have been returned as part of a decision whether to hold Lennar to the
terms
of the
Agreement
Either way I recommend that both Lennar and Catellus be
informed that the Ciry intends to apply the ordinary meaning of the word lobbying and
that campaign contributions fall within that definition
Such an admonition couple
with the commitment of each Councilmember to adhere to the merit

based evaluation
with the public interest as the sole motivation would resolve the current matter short of
termination
Alternatively the Council may terminate its Agreement and its
negotiations with Lennar
I
recommend
that the
discussion
and
decision
whether
to
terminate
the
Agreement anc how to proceed henceforth occur in open session

B
Effect of Catellus
s Letter on the Selection Process and Obli
ation o
Council to Consider it Fairly
Reacrion to the Hanson Bridgett letter and the allegations raised in it varied
Mayor Grayson and Councilmember Birsan suggested that Catellus was being overly
contentious
s more these reactions have been made public either in the press or
What
by virtue of disclosure of emails in response to a Public Records Act request Ciry staff
was frustrated having arrived very close to the finish line they were satisfied that the
final staff report even without the recommendation sufficiently communicated their
evaluaticm of the merits of the
two
term
sheets
The issuance of the Hanson Bridgett
letter undermined staff

s efforts to bring the matter to Council on September 29 These
emotional reactions are understandable under the circumstances
However Catellus
s concerns were not entirely without merit and do not appear to
have been motivated by anything other than the desire to have a fair shot at being
Councilmember Birsan is quoted in the Contra Costa Times October 3 2015 saying that Catellus has
shot themselves in the foot This is the guy you want to be in bed wirh for 20 years Councilmember
Birsan expressed the same frusrration to me iuring our interview Mayor Grayson expressed similar
frustration about the Hanson
Bridgett letter
in
emails
to
Ms Barone and Mr Coon
JENKINS
HOGIN LLP
February 11 2016
Page 40
awarded
the
contract
With
such
high stakes the public interest sug

ests that
Councilmembers and staff must overcome their initial reactions and decide on a future
course that dispassionately considers the options

I appreciate the opportuniry to be of service to the City
ery truly yours
tins

Concord CNWS Jenkins Report

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II

1230 ROSECRANS AVENUE SUITE 110

MANHATTAN BEACH CALIFORNIA 90266

Concord Naval Weapons Station Master Developer Selection

Dear Members of the City Council

As you know the Ciry

The investigation involved interviews of wimesses and review of a substantial

Some matters that arose in the course of the investigation remain

Brian Libow Interim Ciry Attorney

1230 ROSECRANS AVENUE SUITE ll0

Concord Naval Weapons Station Master Developer Selection

Dear Members of the Ciry Council

What follows is a detailed explanation of the

orchestration of campaign contributions to Mayor Tim Grayson

find merir with any of Carellus

2015 letter from Mr Giacomini

Coon attached hereto

within the Councils discretion

Unless otherwise indicated below the following persons

interviewed in connection with this

Participation by witnesses was

voluntary and interviews were not conducted under oath

Concord City Councilmembers as of September 2015

Mr Leone recused himself from the Master

Developer selection process due to the proximity of his home

Mr Bjerke assumed the position of Director of

Mr Coon was deceased prior to the

commencement of this investigation

Assistant City Manager

Former Director of Community Reuse Planning Local Reuse

Community Reuse Planning until his retirement from his

September 21 2015 Mr Wright

urban planner with Arup a consulting firm under

former City Attorney

attorney with Burke Williams and Sorensen a law

firm under contract with the Ciry Mr Ramiza regularly

Mr Silvern attended some of the

closed sessions convened to discuss the Master Developer

Contributors to Mayor Grayson

Engeo was Lennar

Project geotechnical engineer and has worked

Treasure Island Project Engeo is Lennar

Glenn Bunting is president and founder of G

F Bunting provided public relations services for Lennar

Hunters Point project and potentially other Lennar projects

President of Lennar Urban is a consultant to G

president of Golden Gate Global Golden Gate

Global had worked with Lennar International to raise over

250 million dollars for Lennar

interviewed in connection with this investigation

See Engeo Portfolio regarding Hunters Point com

2015 attached hereto as Exhibit B

printed in the San Francisco Bay Guardian on July 1 2013

hunters oinr attached hereto as Exhibit C

Interview of Mr Bunting Also see G

printout from which is attached hereto as Exhibit D

6 See Golden Gate Global Website com

which is attached hereto as Exhibit E

printout from which is attached hereto as Exhibit F

Fred Naranjo is a partner of Scarborough Insurance which is

Mr Naranjo has attended and

contributed to fundraisers at the Bay View Opera House

along with Mr Brown and his daughter Susan Brown

Additionally Mr Naranjo is a resident of the Bayview