M08-18-081
MINUTES OF THE TOWN COUNCIL/PARKING
AUTHORITY/REDEVELOPMENT AGENCY
AUGUST 18, 2008
The Town Council of the Town of Los Gatos conducted a Regular Meeting on
Monday, August 18, 2008 at 7:00 P.M.
TOWN COUNCIL SPECIAL MEETING – Interviews began at 6:45 P.M.
Arts Selection Panel
Interviews were held for one vacancy on the Arts Selection Panel.
Sharon Blasgen, Applicant, was interviewed.
TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY
MEETING CALLED TO ORDER - 7:00 P.M.
ROLL CALL
Present: Mayor Barbara Spector, Vice Mayor Mike Wasserman, Council
Member Steve Glickman, Council Member Diane McNutt, and Council Member
Joe Pirzynski.
Absent: None.
PLEDGE OF ALLEGIANCE - LED BY FUTURE LEADER
Cady Chessin, 8th grader at Fisher Middle School led the Pledge of Allegiance.
The audience was invited to participate.
CLOSED SESSION REPORT
There was no Closed Session scheduled for this meeting.
BOARDS/COMMISSION/COMMITTEES APPOINTMENTS
Art Selection Panel (1 applicant; 1 vacancy)
Sharon Blasgen was appointed to the Arts Selection Panel.
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PRESENTATIONS
Commendation for Pascagoula Day Participants
Mr. Henderson
Presented information about the accomplishments of the Katrina
Consortium volunteers.
Mayor Barbara Spector
Presented commendations to Lisa Hogan, Frank Bergandi, Tom
Carson, Dave Henderson, Steve Rauwolf, Matt Turner, Valerie
Lozowicki, Roger Murray, Joe Varozza, and Lee Neish for their
assistance with the Katrina Consortium.
Commented that Council Member Diane McNutt, Vice Mayor Mike
Wasserman and Town staff also contributed to helping the Katrina
victims in Pascagoula.
TOWN COUNCIL
CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)
1. Ratify payroll for June and July 2008.
2. Ratify accounts payable for:
a. June 2008
b. July 2008
3. Appoint Barbara Spector as the primary voting delegate and Council
Member Joe Pirzynski as the alternate voting delegate for the League
of California Cities Annual Conference scheduled for September 24-27
in Long Beach, California.
4. Adopt resolution adopting revised Below Market Price Housing
Program Guidelines and rescinding Resolution 2005-117.
Motion to send to Community Services Commission no Resolution
5. Adopt resolution setting date for consideration of reorganization of an
uninhabited area designated as Hilow Road No. 3, Approximately 1.12
Acres located at 16362 Hilow Road (APN: 532-04-082); File #AN08-02.
RESOLUTION 2008- 092
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Consent Items – Continued
6. PPW Job No. 07-10 - Fiscal Year 08-09 - Retaining Wall Replacement
Project at University Avenue and Wooded View Drive - Project 411-
815-9930 Adopt resolution approving plans and specifications for the
retaining wall replacement project at University Avenue and Wooded
View Drive and authorize staff to advertise the project for bid.
RESOLUTION 2008-093
7. PPW Job No. 07-17 - Fiscal Year 08-09 - Curb, Gutter, and Sidewalk
Replacement Project 411-813-9921. Adopt resolution approving plans
and specifications and authorize staff to advertise the project for bid.
RESOLUTION 2008-094
8. PPW Job No. 07-21 - Surface and Base Repair, Manhole, and Valve
Adjustment to Grade Project 411-811-9901. Adopt resolution
approving plans and specifications for the and authorize staff to
advertise the project for bid. RESOLUTION 2008-095
REDEVELOPMENT AGENCY
9. Ratify accounts payable for:
a. June 2008
b. July 2008
TOWN COUNCIL/REDEVELOPMENT AGENCY
10. Approve Council/Agency minutes of August 4, 2008.
11. Adopt resolution rejecting all bids for Police Operations Building.
Resolution 2008-096
Mr. Davis pulled Consent Item #10.
Mr. Gaikwad and Council Member Diane McNutt pulled Consent Item #4.
Council Member Steve Glickman pulled Consent Item #11.
Mayor Barbara Spector stated that the pulled Consent Items would be heard
after Other Business.
MOTION: Motion by Council Member Steve Glickman to approve
Consent Items #1-3, and #5-9.
Seconded by Vice Mayor Mike Wasserman.
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VOTE: Motion passed unanimously
VERBAL COMMUNICATIONS
Mr. Capurso, Director of Parks and Public Works
Commented about the Live Oak Manor Park arson fire.
Commented that the main structure was a total loss.
Scott Seaman, Chief of Police
Commented that an award has been offered in partnership with Crime
Stoppers.
Commented that the damage was assessed to be between $7000 and
$10,000.
Mr. Davis
Commended the Mayor, Vice Mayor, and Parks and Public Works
Director.
Commented about politics in Los Gatos.
Closed Verbal Communications
PUBLIC HEARING
12. Consider a request for a General Plan Amendment from Mixed Use
Commercial to Office Professional, and a Zone Change from C-1 to O.
No significant environmental impacts have been identified as a result
of this project and a Mitigated Negative Declaration is recommended.
Negative Declaration ND-07-150, General Plan Amendment GP-07-003,
Zone Change Z-07-002. APNs 424-10- 017, 064 and 065. Property
Location: 14881 National Avenue and 14830 Los Gatos Blvd.
Property owner: Dr. Lee and Ms. Liz Walker. Applicant: John Lien.
RESOLUTION 2008-091
Staff report made by Bud Lortz, Director of Community Development.
Open Public Hearing
Mr. Lien, Applicant
Commented that he would be available for any questions that Council may
have.
Closed Public Hearing
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Public Hearing Item #12 – Continued
Mayor Barbara Spector directed Jackie Rose, Clerk Administrator to read the
title of the ordinance.
MOTION: Motion by Council Member Steve Glickman to approve
a General Plan Amendment from Mixed Use Commercial to
Office Professional, and a Zone Change from C-1 to O. No
significant environmental impacts have been identified as a
result of this project and a Mitigated Negative Declaration is
recommended. Negative Declaration ND-07-150, General
Plan Amendment GP-07-003, Zone Change Z-07-002.
APNs 424-10- 017, 064 and 065. Property Location: 14881
National Avenue and 14830 Los Gatos Blvd.
Motion to include:
a. Make the mitigated negative Declaration and
adopt the mitigation monitoring plan for the
General Plan amendment and zone change as
stated in Exhibit 6 and 7 of Attachment 1.
b. Make the required findings for the General Plan
amendment and zone change as stated in
Attachment 4.
c. Adopt Resolution approving the General Plan
amendment as stated in Attachment 5.
d. Waive the reading of the zone change ordinance
as stated in Attachment 6.
e. Introduce the ordinance to effectuate the zone
change as stated in Attachment 6.
Seconded by Council Member Joe Pirzynski.
VOTE: Motion passed unanimously.
OTHER BUSINESS
13. 347 Massol Avenue adopt Planned Development Ordinance making a
zone change from RM:5-12 to RM:12-20:PD for a fifty-six lot residential
subdivision to convert the existing apartments to condominiums at
347 Massol Avenue (APN 510-14-004) (Bay Tree Apartments).
Council Member Steve Glickman recused himself from Item #13 due to the
location of his residence.
Mr. Larson, Town Manager
Clarified that there were two desk items relating to Item #13.
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Other Business Item #13 – Continued
Staff report made by Orry Korb, Town Attorney and Bud Lortz, Director of
Community Development.
Council Comments
Questioned if the Fire Department has reviewed the proposed parking
plan.
Questioned if the condo conversion would have to comply with all building
code requirements.
Questioned if the condo conversion sets precedence for future
applications.
Mr. Lortz
Clarified that the Fire Department has reviewed the proposed parking and
found it to be adequate.
Commented that the project has to comply with Title 24 energy
enhancement requirements.
Commented that there are no modifications required for seismic retrofits,
structural work, or disabled access under the Town Building Code.
Mr. Korb
Stated that an individual land use application is considered separately on
its own factual merits.
Council Comments
Questioned the use of tandem parking in Town.
Questioned Title 24 Energy Requirements for a condo conversion.
Questioned if there are required distances for tandem parking with respect
to entering and backing up.
Requested clarification on what triggers the Title 24 requirements.
Requested clarification on the parking spaces proposed by the applicant
verses the required parking spaces per the Town ordinance.
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Other Business Item #13 – Continued
Mr. Lortz
Commented that the applicant is required to go through a Title 24
inspection which includes energy calculations.
Commented that the applicant has doubled the amount of spaces which
have reviewed by Engineering and Planning.
Commented that a 26 foot back out space is required by code, but 24 feet
is considered functional.
Clarified the Title 24 requirements for a condo conversion.
Council Comments
Questioned if there is a best practice for condo conversions.
Requested clarification about the BMP units and Alternative #3 in the staff
report.
Mr. Lortz
Commented that recommendation #2 would allow amendments to the
Below Market Guidelines (BMP) which would include special circumstance
seniors to continue to live as renters and up to five units would be
purchased by the Town under the BMP program.
Mr. Larson
Stated that staff recommends Council considers option #1 or #2.
Commented that recommendation #1 would grant special circumstances
to seniors who reside in the project, giving them extra ranking points to
help them qualify for the Bay Tree Below Market Program (BMP) units.
Commented that recommendation #2 would require the applicant to delay
the sale of the five units occupied by the Special Circumstance Seniors
until they vacate their units. Rental rates would be fixed at what they are
currently paying with an annual cost of living increase.
Staff would modify the Below Market Program Guidelines (BMP) to reflect
the proposed amendments.
Public Comments
Mr. Schloh
Commented about the proposed architecture for the site and stated that
the current building does not fit well with the neighborhood.
Commented about the cosmetic design of the proposed project.
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Other Business Item #13 – Continued
Council Comments
Questioned if Mr. Schloh was advocating for a 360 degree design.
Mr. Silva
Suggested that the Town should develop a best practices template for
future condo conversions.
Commented that the condo conversion would provide increased housing
for the Town.
Mr. Cole
Commented that the management company has addressed all issues
except parking management and the resident assistance program.
Clarified that the company hired an engineer to assess the parking
and concluded that the proposed parking spaces would work for the site.
Commented that the proposed parking includes one parking space for a
one bedroom condo and two parking spaces for a two bedroom condo.
Commented that the resident assistance package and the senior package
are a priority.
Council Comments
Questioned when the applicant had increased the amount of parking from
36 to 60 spaces.
Questioned if the applicant has conducted any pre-Title 24 studies.
Questioned the average age of the pre-existing tenants.
Mr. Cole
Commented on the senior and the disabled relocation packages.
Council Comments
Questioned when the official "notice to convert" was submitted and how
much time a resident has after receiving the notice.
Mr. Cole
Clarified the "notice to convert" process and provided an example of when
the timeframe for relocation would begin.
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Other Business Item #13 – Continued
Council Comments
Questioned how many units and tenants are considered pre-existing.
Questioned if other jurisdictions have a policy regarding parking and
condo conversions.
Questioned how the tandem parking would be allocated.
Questioned when the recording of the final map would take place.
Mr. Cole
Commented that forty units fall under the new the noticing process.
Commented that five units qualify for the senior assistance package.
Commented that two units will receive moving and relocation assistance
with financial consideration.
Mr. Lortz
Clarified that it would be about a 6 month process before the 180 day
notice would take affect.
Mr. Withers
Commented about project benefits and Lyon Realty’s relocation program.
Commented on the demand and affordability of the condos and smaller
"down sized" homes in the community.
Commented on parking enhancements, architecture improvements, and
green enhancements.
Mr. Trapani
Expressed support for the proposed project and the first time home buyer
opportunities.
Ms. Pugliese
Commented on supporting the proposed project.
Ms. Smith
Commented on supporting the proposed project.
Mr. Forbes
Commented on supporting the proposed project and the senior package
offered by Lyon Reality.
Commented that the creek is next to the project and the build ing may
need a stronger structure.
Commented about Palo Alto’s condo conversion ordinance.
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Other Business Item #13 - Continued
Council Comments
Questioned the amount of parking that Palo Alto requires for condo
conversion projects.
Mr. Goldman
Commented that the building is forty to fifty years old and needs a lot of
work.
Commented on the parking issues that currently exist at the complex.
Commented that he is in walking distance to town and does not require
use of his car for daily errands.
Council Comments
Questioned if Mr. Goldman feels that Massol Avenue currently has
parking issues.
Mr. Goldman
Commented that Massol Avenue has parking issues during the evening
hours.
Mr. Burges
Expressed concerns that an investor may purchase units to sell at a
higher price.
Indicated that there are parking issues along Massol Avenue.
Council Comments
Questioned if investors could be prevented from purchasing units for
resale at a higher price.
Mr. Korb
Clarified the Below Market Program (BMP) requirements and that an
additional requirement could be added to prevent the resale of units at a
higher price.
Mr. Larson
Suggested that a requirement could be added to specify that only a
percentage of complexes could be rented.
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Other Business Item #13 – Continued
Ms. Pelley
Would like to see an ordinance adopted to govern condo conversion
projects.
Commented that parking along Massol Avenue is congested and would
become worse with the condo conversion.
Mr. Houge
Commented that the parking map is incorrect because there is no such
thing as tandem parking in the Town Code.
Commented that the proposed parking plan is 16 spaces short and that
units should have 3 spaces each.
Commented about the lack of visitor parking at the Bay tree Apartment
complex.
Mr. Kaschub
Commented against the proposed project.
Commented that the Housing Element should come before the approval of
the project.
Commented that vacancy rates and parking would be part of the Housing
Element.
Commented that a vacancy rate survey was conducted which found the
rate to be less than 1%.
Council Comments
Questioned the size of the radius if an alternate rental location could not
be found near the site.
Questioned the total vacancy rate for Los Gatos.
Questioned the number of households in Town.
Mr. Lortz
Clarified that the radius would expand if there were no acceptable
vacancies within the established perimeters.
Commented that the vacancy rates are seasonal.
Commented that there has not been a vacancy rate survey done by the
Town since the 2003 Housing Element.
Commented that another rental availability survey will be completed as
part of the 2009 Housing Element.
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Other Business Item #13 – Continued
Ms. Douglas
Suggested increasing the relocation radius.
Suggested removal of the pass-through fee which the Bay Tree
residents are being charged.
Commented on the congested parking and the lack of visitor parking.
Commented that it is very difficult to find a place to live in Los Gatos.
Ms. Kaschub
Commented that the parking plans proposed by Lyon Realty violate Town
regulations and do not plan for overflow or guest parking on the premises.
Commented that the proposed Below Market Program (BMP) units are
against Town regulations.
Ms. de Mos
Suggested that the Town conduct an apartment availability study.
Commented against the proposed project.
Commented that her rental availability study was done by calling all
apartments in Los Gatos listed in the Yellow Pages.
Mr. Bohm
Commented against the proposed project and lack of rental units in Town.
Council Comments
Commented that the Town currently has a 35% rental ratio.
Mr. Keegan
Commented that there is a need for quality rental units, smaller homes
and condos in Town.
Commented on supporting the proposed project.
Mr. Carter
Commented on supporting the proposed project.
Commented that parking would be much easier on Massol Avenue without
parking restrictions.
Mr. Davis
Commented against the proposed project.
Commented on the challenge of remodeling a fifty-year-old building.
Closed Public Comments
Mr. Davis received his first warning for disrupting the meeting at 9:36 p.m.
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Other Business Item #13 – Continued
Mayor Barbara Spector called for a recess at 9:37 p.m. Meeting resumed at
9:45 p.m.
Council Discussion
Questioned the process for adopting the ordinance.
Questioned the relocation assistance program offered by Lyon
Management.
Commented on staff’s recommendation not to purchase the BMP units.
Commented on supporting Recommendation #1 and #2.
Commented that the parking does not seem to be an issue on Massol
Avenue.
Commented that the spacing for tandem parking needs to be addressed.
Commented about the rules and regulations used for a Planned
Development.
Expressed concerns about the 16 tenants who were residents prior to
noticing.
Expressed concerns about the parking requirements.
Commented on supporting the Title 24 improvements.
Commented on other municipalities’ relocation programs.
Suggested creating a matrix that reflects the number of disabled tenants,
children, and seniors that fall under the "pre-notice" category.
Commented that the building is in need of structural upgrades.
Questioned parking requirements for the converted units verses apartment
units.
Commented on supporting the re-location packages provided by the
developer.
Questioned if there was a "best practice" for dealing with parking
issues related to condo conversions.
Expressed concerns about the proposed relocation plan for seniors and
the "pre-noticed" tenants.
MOTION: Motion by Mayor Barbara Spector to continued the
adoption of the ordinance to October 6, 2008 and request
further information on best practices about parking,
environmental issues, and pre-notification of tenants,
current vacancy rates, and the timeframe to vacate and
relocate.
Seconded by Vice Mayor Mike Wasserman.
VOTE: Motion passed unanimously.
Mr. Korb
Commented on the procedure for introducing and adopting an ordinance.
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Other Business Item #14
14. Adopt resolution to encourage the preservation of and improvements
to the Los Gatos Community Hospital. RESOLUTION 2008-097
Staff report made by Greg Larson, Town Manager.
Open/Close Public Comments
MOTION: Motion by Vice Mayor Mike Wasserman to adopt
resolution to encourage the preservation of and
improvements to the Los Gatos Community Hospital.
Seconded by Council Member Joe Pirzynski.
VOTE: Motion passed unanimously.
TOWN COUNCIL/REDEVELOPMENT AGENCY
15. Accept status report and consider disposition of Fannie Mae and
Freddie Mac Federal Home Loan coupon notes investment strategies.
Staff report made by Greg Larson, Town Manager and Steve Conway, Director
of Finance.
Council Comments
Commented that the Town holds Fannie Mae and Freddie Mac bonds, not
stocks.
Commented on the alternatives recommended to Council and that there
may be a loss of principal if the bonds were sold before maturity.
Questioned if the Town could recover its investment if the bonds were
held to maturity.
Suggested selling the lower interest bonds and replacing them with other
bonds of comparable interest.
Mr. Larson, Town Manager
Clarified that the Town would receive a one time gain if the bonds were
sold early.
Council Comments
Suggested that Recommendation #3 may protect the Town’s principal.
Commented that the State may limit the amount insured.
Commented on Bloomberg reports relating to Fannie Mae, Freddie Mac,
and MBIA.
Commented that the Town does not have investments in MBIA or Fannie
Mae stocks.
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Other Business Item #15 – Continued
MOTION: Motion by Vice Mayor Mike Wasserman to accept status
report and consider disposition of Fannie Mae and Freddie
Mac Federal Home Loan coupon notes investment
strategies.
Motion to include strategy #2 which states:
Continue to hold to maturity the Federal Home Loan Bank
bonds and sell selected holdings of Fannie Mae and Freddie
Mac yielding less than 4.25%, totaling approximately $2.3
million and explore opportunities to reinvest in other
government sponsored enterprises the yield approximately
3.85%.
Seconded by Council Member Diane McNutt.
Open/Close Public Comments
Orry Korb, Town Attorney
Commented that pursuant to Town Code and the Council Investment
Policy, the Town Treasurer has been delegated investment
responsibilities.
VOTE: Motion passed 4/1. Council Member Joe Pirzynski voted no.
Mr. Larson, Town Manager
Commented that staff will advise the Treasurer of Council direction and
concerns.
Indicated that over the next few months staff will be working on the
transition of the Elected Treasurer to the appointed position.
PULLED CONSENT ITEMS
4. Adopt resolution adopting revised Below Market Price Housing Program
Guidelines and rescinding Resolution 2005-117. Motion to send to
Community Services Commission no Resolution
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Pulled consent Item #4 – Continued
Council Member Diane McNutt
Expressed concerns about the Below Market Program
(BMP) requirements and the policy change should be reviewed by the
Community Services Commission prior to coming to Council.
Mr. Gaikwad was not present to speak on Item #4.
Council Comments
Questioned if there is a “waiting list” for the Below Market Program and if
they fall under the new guidelines.
Open Public Comments
Mr. Miller
Suggested that Council consider amending the Below Market Guidelines
to address all public service employees.
Questioned why Town employees receive extra points over other public
employees.
Council Comments
Inquired about whether or not the school district provides inter-district
transfers for Town employees.
Closed Public Comments
MOTION: Motion by Council Member Steve Glickman to adopt
resolution adopting revised Below Market Price Housing
Program Guidelines and rescinding Resolution 2005-117.
Seconded by Vice Mayor Mike Wasserman.
Council Discussion
Commented that the amendment to the guidelines limits the program to
first time home buyers and not others who may have previously owned a
home, but are not currently home owners.
Suggested that the Community Services Commission discuss the
amendment.
VOTE: Motion failed 1/4. Council Member Steve Glickman voted
yes.
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Pulled Consent Item #4 – Continued
MOTION: Motion by Council Member Diane McNutt to return the
Below Market Program Guidelines to the Community
Services Commission for discussion and recommendation
back to Council.
Seconded by Mayor Barbara Spector.
VOTE: Motion passed 4/1. Council Member Steve Glickman
voted no.
10. Approve Council/Agency minutes of August 4, 2008.
Mr. Davis
Expressed concerns that his comments under verbal communications on
August 4, 2008 about the De Santis project were not reported accurately.
MOTION: Motion by Council Member Joe Pirzynski to approve the
minutes of August 4, 2008.
Seconded by Council Member Steve Glickman.
Council Discussion
Suggested that Council Members names be reflected in the minutes under
Council Discussion and Council Comments.
No action was taken on the suggestion.
VOTE: Motion passed unanimously.
11. Adopt resolution rejecting all bids for Police Operations Building.
Council Member Steve Glickman
Requested clarification on the issues related to the rejection of the bids for
the police operations building.
Questioned if the project would require an increased budget.
Mr. Larson, Town Manager
Clarified the bid process and indicated that efforts would be made to keep
the project within budget.
Open/Closed Public Comments
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Pulled Consent Item #11 – Continued
MOTION: Motion by Council Member Steve Glickman to adopt
resolution rejecting all bids for Police Operations Building.
Seconded by Council Member Joe Pirzynski.
VOTE: Motion passed unanimously.
COUNCIL/TOWN MANAGER REPORTS
16. Council Matters
Mayor Barbara Spector
Commented that the University Avenue repaving project is complete and
University Avenue is open.
Council Member Steve Glickman
Updated the Council about a recent VTA Policy Advisory Committee
meeting and that VTA encourages cities to support Measure B.
17. Manager Matters
Mr. Larson, Town Manager
Reminded Council and the community that a Study Session is scheduled
for August 25, 2008 to discuss the North Forty Specific Plan.
Commented that the Town is now accepting credit cards.
Stated that the Town opposes any additional State “borrowing” or taking of
local government revenue to balance the budget.
ADJOURNMENT
Attest:
/s/Jackie D. Rose, Clerk Administrator