Item 10 Staff Report Authorize Request for Amicus Participation in Cayetano, et al., vs. Chevron USA, Inc. 9th Circuit of Appeals. Case No. 02-15867, at No Cost to the TownMEETING DATE: 9/3/2002
ITEM NO.
COUNCIL AGENDA REPORT
DATE: August 5, 2002
TO: MAYOR AND TOWN COUNCIL
FROM: ORRY P. KORB, TOWN ATTORNEY
I 0
SUBJECT: Authorize request for Amicus participation in Cayetano, et al., vs. Chevron
USA, Inc. 9th Circuit Court of Appeals, Case No. 02-15867, at no cost to the
Town
RECOMMENDATION:
Authorize request for Amicus participation in Cayetano, et al., vs. Chevron USA, Inc. 9th Circuit
Court of Appeals, Case No. 02-15867, at no cost to the Town.
BACKGROUND:
The Executive Committee of the Legal Advocacy Committee of the California League of Cities
is urging California cities to join in the amicus brief, which aims to support the claim that a
federal court's review of land use decisions should be deferential to state and local agencies.
The case, Chevron, USA. Inc. v. Caetano (9TH Ci. 2000) 224 F.3d. 1030 (Chevron 1), has a
complicated procedural history. Chevron challenged a law enacted by the State of Hawaii aimed
at reducing retail gasoline prices by limiting the rent that oil distributors could charge gasoline
retailers who leased company owned filling stations. The Ninth Circuit Court of Appeals
ordered the trial court to review the effectiveness of the state law in meeting its objective of
reducing retail gasoline prices, thus rejecting the state's argument that the validity of a land use
ordinance should be evaluated under the traditional, more deferential standards. The state
unsuccessfully appealed that decision to the United States Supreme Court, thus allowing the case
to go to trial. The trial court then decided that the state law did indeed result in a taking.
Hawaii has appealed. The state and amici believe that they should now be able to present a
stronger case than was possible with the limited record of Chevron I because the second trial
record shows that the district court, in choosing between conflicting economists' opinions, was
making economic policy. The amicus brief will argue that democratically elected legislators
rather than the courts, should make decisions as to the wisdom and effectiveness of land use
PREPARED BY: ORRY P. KORB, TOWN ATTORNEY
(N:WTY\Chevron USA.AMI.TCR.wpd)
Reviewed by: PAssistant Town Manager Town Attorney Clerk Finance
Tnwn Manager
Revised: 8/13/02 2:51 pm
Reformatted: 5/30/01
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MAYOR AND TOWN COUNCIL
SUBJECT: Authorize request for Amicus participation in Cayetano, et al., vs. Chevron USA,
Inc. 9th Circuit Court of Appeals, Case No. 02-15867, at no cost to the Town
August 5, 2002
policies, and that whether a price control will have its intended effect in a complex industry is
usually the subject of legislative committee hearings. Once made, the separation of powers
doctrine dictates that such decisions be entitled to deference by the courts.
If allowed to stand, this decision could result in effective challenges in federal court to Town
administrative actions, including those concerning land use and rent control matters.
Attachments: Letter from Dennis J. Herrera, City Attorney, City of San Francisco and Andrew
W. Schwartz, Deputy City Attorney, City of San Francisco, dated July 30, 2002
Distribution: Dennis J. Herrera, City Attorney, City of San Francisco, City Hall, Room 234, 1
Dr. Carlton B. Goodlett Place, San Francisco, CA 94102-0917
Town Council Minutes September 3, 2002
Redevelopment Agency Los Gatos, California
AMICUS BRIEF/CAYETANO, ET AL VS. CHEVRON USA (10.28)
Motion by Mr. Blanton, seconded by Mrs. Decker, to authorize request for amicus participation in
Cayetano, et al., vs. Chevron USA, Inc. 9`'' Circuit Court of Appeals, Case 02-15867, at no cost to
the Town. Carried unanimously.
LEAGUE OF CALIFORNIA CITIES/ANNUAL CONFERENCENOTING DELEGATES (11.28/12)
Motion by Mr. Blanton, seconded by Mrs. Decker, to appoint Mayor Randy Attaway as the primary
voting delegate and Vice Mayor Sandy Decker as the alternate voting delegate for the League of
California Cities Annual Conference scheduled for October 2-5, 2002 in Long Beach. Carried
unanimously.
EXAMINATION OF AUDITS AND FINANCIAL REPORTS/GRAND JURY REPORT (12.09)
Motion by Mr. Blanton, seconded by Mrs. Decker, to approve responses contained herein and
enumerated below to the four findings and four recommendations made as part of the Santa Clara
County Civil Grand Jury's Final Report -Examination of Audits and Reports. Carried unanimously.
NATIONAL CIVIC PARTICIPATION WEEK/SEPTEMBER 11-17,2002 (13.28)
Motion by Mr. Blanton, seconded by Mrs. Decker, to adopt a proclamation declaring the week of
September 11-17, 2002 as "National Civic Participation Week." Carried unanimously.
MOBILE HOME PARK CONVERSION/WOODLAND AVENUE 484/DENIAL (14.15)
Motion by Mr. Blanton, seconded by Mrs. Decker, that Council accept and file report in the form
of meeting minutes from the Planning Commission regarding a Mobile Home Park Closure and
Planned Development at 484 Woodland Avenue. Carried unanimously.
RESIDENCY REQUIREMENTS/BOARDS & COMMISSIONS/RESOLUTION 2002-134 (15A.12)
Motion by Mr. Blanton, seconded by Mrs. Decker, that Council adopt Resolution 2002-134 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS RESCINDING RESOLUTION 1995-44,
AND ESTABLISHING RESIDENCY REQUIREMENTS FOR SPECIFIED BOARDS AND
COMMISSIONS. Carried unanimously.
TRANSPORTATION & PARKING COMMISSION/RESOLUTION 2002-135
COUNCIL ACTING AS PARKING AUTHORITY (15B.12)
Motion by Mr. Blanton, seconded by Mrs. Decker, that Council adopt Resolution 2002-135 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS DETERMINING THE NEED FOR A
PARKING AUTHORITY; DECLARING THE TOWN COUNCIL TO BE THE PARKING
AUTHORITY; ESTABLISHING THE TRANSPORTATION AND PARKING
COMMISSION; AND RESCINDING RESOLUTION 2002-102. Carried unanimously.
COUNCIL/COMMISSION RETREAT ISSUES MATRIX (15C.12)
Motion by Mr. Blanton, seconded by Mrs. Decker, to approve the 2002 Council/Commission
Retreat Issues Matrix. Carried unanimously.
BUSINESS RECOGNITION EVENTS (16.30)
Motion by Mr. Blanton, seconded by Mrs. Decker, to approve the business recognition events as
outlined below, with any modifications or additions as may be desirable. Carried unanimously.
AUTO DEALER FOLLOW-UP ACTIONS (17.38)
Motion by Mr. Blanton, seconded by Mrs. Decker, to accept and file the review of follow-up actions
to the Los Gatos Auto Dealers Study Session held on April 29, 2002. Carried unanimously.
N:1CLK\Council Minutes '20021M09-03-02.wpd
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