Two pound test, a small hook covered with a chunk of nightcrawler. That's about it. I like to fish under a very small bobber. Bluegill like thick cover in 10 feet or so of water. Look for spots like these, and if your not getting bites in 5 minutes move to a new spot.
Bay Area Hotspots for Bluegill: Loch Lomond Reservoir, everywhere else ties for second