Item 20 Staff Report Introduce Ordinance Amending Chapter 1 of the Town of Los Gatos Municipal Code Adding Section 1.10.115 Requiring that Applicants Defend and Indemnify the Town in Legal Challenges to the Issuance of Permits, Licenses, Entitlements or AMEETING DATE: 8/18/03
ITEM NO. /,
COUNCIL AGENDA REPORT
DATE: June 25, 2003
TO: MAYOR AND TOWN COUNCIL
FROM: ORRY P. KORB, TOWN ATTORNEY?*�
SUBJECT: INTRODUCE ORDINANCE AMENDING CHAPTER 1 OF THE TOWN OF
LOS GATOS MUNICIPAL CODE ADDING SECTION 1.10.115 REQUIRING
THAT APPLICANTS DEFEND AND INDEMNIFY THE TOWN IN LEGAL
CHALLENGES TO THE ISSUANCE OF PERMITS, LICENSES,
ENTITLEMENTS OR APPROVALS
RECOMMENDATION:
1. Direct the Clerk to read title;
2. Waive the reading;
3. Move to introduce the ordinance and instruct the Clerk to publish a summary no more
than five days prior to adoption.
BACKGROUND:
The Town annually issues numerous permits, licenses and other entitlements based on applications
received. These include building permits pursuant to chapter 6 of the Town Code, grading permits
pursuant to chapter 12, business licenses and peddler, solicitor and pushcart permits pursuant to
chapter 14, and a variety of land use and related permits pursuant to chapter 29. Generally, the Town
has no direct interest in applications for issuance of such permits, licenses, entitlements or approvals,
other than to ensure the protection of the public health, safety or welfare. Occasionally, however,
decisions on such applications are controversial and can lead to legal challenges. All or most of the
costs of defending these actions, including any judgment and attorney fees, would fall on the Town,
unless it elects not to defend the suit.
DISCUSSION:
The proposed ordinance would initiate a requirement that an applicant who receives a permit,
license, entitlement or other approval must defend, indemnify and hold harmless the Town and its
officials and employees in the event a third party brings a lawsuit to overturn, set aside or void such
PREPARED BY: ORRY P. KORB, TOWN ATTORNEY OPK:LMB/wp [N: ATY\Indeminifcation.TCR.wpd)
Reviewed by:
Town Manager Q 5 3 Assistant Town Manager Clerk
Finance Community Development
Rev: 6/25/03 11:21 am
Reformated: 7/19/99
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: INTRODUCE ORDINANCE AMENDING CHAPTER 1 OF THE TOWN OF
LOS GATOS MUNICIPAL CODE AND ADDING ARTICLE II TO CHAPTER 1
OF THE TOWN OF LOS GATOS MUNICIPAL TOWN CODE REQUIRING
THAT APPLICANTS DEFEND AND INDEMNIFY THE TOWN IN LEGAL
CHALLENGES TO THE ISSUANCE OF PERMITS, LICENSES,
ENTITLEMENTS OR APPROVALS
permit, license, entitlement or other approval. The California Attorney General has opined that such
a requirement can be imposed on applicants for coastal development permits. Opinion No. 01-701,
February 4, 2002. A number of cities and counties have or are in the process of imposing similar
requirements. It would be prudent for the Town to do the same.
Attachment: Proposed Ordinance
ORDINANCE
ORDINANCE AMENDING CHAPTER 1 OF THE TOWN OF LOS GATOS
MUNICIPAL CODE ADDING SECTION 1.10.115 REQUIRING THAT APPLICANTS
DEFEND AND INDEMNIFY THE TOWN IN LEGAL CHALLENGES TO THE ISSUANCE
OF PERMITS, LICENSES, ENTITLEMENTS OR APPROVALS
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS:
SECTION I
Chapter 1 of the Los Gatos Town Code is amended by adding section 1.10.115 to read as
follows:
Section 1.10.115. Indemnification of Town
Except as otherwise provided by law, an applicant who receives a permit, license,
entitlement, or other approval pursuant to Chapters 6, 12, 14 and 29 of this Code shall
defend, indemnify, and hold harmless the Town and its officials and employees in any action
brought by a third party to overturn, set aside, or void such permit, license, entitlement, or
approval. This duty to defend, indemnify, and hold harmless the Town and its officials and
employees is a condition of approval of all such permits, entitlements, licenses and approvals
whether or not expressly set forth in such permit, license, entitlement, or approval.
SECTION II
If any of the provisions of this ordinance or the application thereof to any person or property
is held invalid, such invalidity shall not affect the other provisions of this ordinance which can be
given effect without the invalid provision or application, and to this end the provisions of this
ordinance are declared to be severable.
SECTION III
Any judicial review of this ordinance shall be by writ of mandate, under Code of Civil
Procedure 1085. Any action or proceeding seeking to attack, review, set aside, void or annul this
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ordinance shall be commenced within 90 days after adoption of this ordinance
This ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on , 2003 and adopted by the following vote as an ordinance of the Town of
Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on , 20003. This
ordinance takes effect 30 days after it is adopted.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Town Council Minutes August 18, 2003
Redevelopment Agency Los Gatos, California
AMENDMENT OF TOWN CODE/INDEMNIFICATION OF TOWN/ORDINANCE (20.37)
Ray Davis asked why there was a need for this proposed amendment. He asked that the Town Code
remain the way it is and face responsibility for liabilities as they now stand.
Motion by Mr. Glickman, seconded by Mr. Wasserman, to Waive the Reading of the Draft Ordinance.
Carried unanimously.
The Town Clerk read the Title of the Draft Ordinance.
Motion by Mr. Glickman, seconded by Mr. Wasserman, to Introduce Draft Ordinance entitled,
ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 1 OF THE
MUNICIPAL CODE AND ADDING SECTION 1.10.115 REOUIRING THAT APPLICANTS
DEFEND AND INDEMNIFY THE TOWN IN LEGAL CHALLENGES TO THE ISSUANCE
OF PERMITS, LICENSES, ENTITLEMENTS OR APPROVALS. Carried by a vote of 4 ayes.
Ms McNutt voted no.
MEETING PAST 11:00 P.M.
Motion by Mr. Pirzynski, seconded by Mr. Wasserman, to extend this meeting past 11:00 p.m.
Carried unanimously.
VTA/ROUTE 85 & ROUTE 17 CONNECTOR RAMP AT LARK(OKA RD NEIGHBORHOOD) (21.15)
Council Consensus to request that the Valley Transportation Authority remove the proposed connector
ramp between Route 85 and Route 17 from their plans. This location of freeway has not been the cause
of undue accidents and the neighborhood that would be impacted by the noise and inconvenience is
adamantly opposed to this proposal. They requested that Council work on having the project removed
from the project list.
MANAGER MATTERS (22.28)
The Manager did not give a report this evening.
ADJOURNMENT
Mayor Decker closed this evening's meeting at 11:13 p.m.
ATTEST:
Marian V. Cosgrove
Town Clerk
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