A NEAR MISS IS TURNED INTO A POTENTIAL CONFLICT BY FLC RESPONSE TO TCASII TA DURING THEIR EVASIVE ACTION CLB.

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WE TOOK OFF FROM FAT ARPT AND PROCEEDED ON RADAR VECTOR OF 040 DEGS UNTIL ABLE DIRECT OAL. AT 10000 FT; OUR TCASII ISSUED A 'TFC-TFC' VERBAL WARNING. THE TARGET WAS IN THE CTR OF OUR DISPLAY; SO WE INSTANTLY SELECTED THE 5 MI RANGE. THE TARGET APPEARED AT 10 O'CLOCK POS -- 2 MI. I LOOKED AT THAT SPOT AND THERE WAS THE INTRUDING ACFT; LESS THAN 2 MI; JUST SLIGHTLY HIGHER. I PULLED BACK ON THE YOKE AND; AT THE SAME TIME; THE FO WHO WAS FLYING CONTINUED PULLING BACK AND WE ATTAINED A 4000 FPM CLB. THE SMALL LOW FIXED WING ACFT PASSED DIRECTLY BENEATH US; GIVING US A RADAR ALTIMETER ALERT. I ALERTED ZOA AND WAS INFORMED THEY HAVE POOR RADAR COVERAGE IN THE AREA. WE WERE ASKED TO CONTACT THE OAKLAND AREA MGR VIA TELEPHONE ONCE WE ARRIVED AT DEN. THIS WAS DONE AS WELL AS FILING A NEAR MISS RPT WITH THE OAKLAND AREA MGR. I BELIEVE THE POOR RADAR COVERAGE IN THIS AREA WAS THE BIGGEST FACTOR IN THIS NEAR MISS. WE WERE LOOKING INTO THE MORNING SUN AND HAD THE TCASII NOT ISSUED THE ALERT; THIS WOULD HAVE UNDOUBTEDLY ENDED UP MUCH MORE SERIOUSLY.