Keep in mind that the process to establish this station goes back more than a decade, with procedures started to move KTRB's 860 channel from Modesto to San Francisco.
And there was this "thing" about being of Greek ancestry and not being able to buy a station in SF during the heyday of radio. Apparently the Pappas brothers held a grudge about this and planned to move into SF as a "we'll show you" gesture. At least, that's how the story goes.
But there is still the thing about the site. Nothing could be so poor. Anybody who knows anything about medium wave propagation knows that you find the LOWEST site you can, near water if you can, and with a clear ground path toward the target market. You don't put it in the hills where the signal is basically being pumped into a hillside. Look at the site (marked as "A"); there's almost 15 miles of hills and mountains between the Sunol site and the flatland of the bay. And one of the Bay Area's highest peaks, Mission Peak is directly in the way! Here's URL to the map: http://goo.gl/maps/OAMsB