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Item 34 Staff Report Consider Adopting Resolution Authorizing Town Manager to Execute a Below Market Rate Agreement for the Terraces Located at 800 Blossom Hill RoadTOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: March 26, 1993 TO: MAYOR AND TOj6dAICOUNCI FROM: TOWN MANAGER COUNCIL AGENDA DATE: 4-5-93 ITEM NO. Jett SUBJECT: CONSIDER ADOPTING RESOLUTION AUTHORIZING TOWN MANAGER TO EXECUTE A BELOW MARKET RATE AGREEMENT FOR THE TERRACES LOCATED AT 800 BLOSSOM HILL ROAD RECOMMENDATION: Adopt Resolution authorizing Town Manager to execute a Below Market Rate Agreement for the Terraces located at 800 Blossom Hill Road. BACKGROUND: The requirement for Below Market Price units is included in the Terraces Planned Development (PD) overlay ordained in Ordinance No. 1788. The Ordinance states, "At least twenty-nine of the independent living units (20 percent) shall be Below Market Price units as defined by the Town Zoning Ordinance and General Plan." (Section V., Item 7, Page 3). Higher density and taller buildings were approved by the Town Council in exchange for the public good derived from Below Market Price (BMP) units. DISCUSSION: The attached resolution authorizes the Town Manager to execute an agreement with American Baptist Homes of the West which stipulates elements of the Terraces BMP housing program implementation: • Administration • Monthly Service Fees • Applicants • Availability of Units • Market • Annual Review FISCAL IMPACT: None. ENVIRONMENTAL ASSESSMENT: Is not a project as defined under CEQA, and no further action is required. PREPARED BY: Regina A. Fa Community es Director RAF:dr — 3/26/93 3:00 pm CSD07:A: \CNCLRPTS\terrac.bmp File # ATTACHMENT: 1. Resolution DISTRIBUTION: David B. Ferguson, American Baptist Homes of the West, 400 Roland Way, Oakland, CA 94621-2031 Reviewed by: Attorney Clerk Finance Treasurer COUNCIL ACTIN ACTION DIRECTED TO: 1 RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A BELOW MARKET RATE AGREEMENT WITH AMERICAN BAPTIST HOMES OF THE WEST FOR THE TERRACES, 800 BLOSSOM HILL ROAD WHEREAS, the requirement for Below Market Price units is included in the Terraces Planned Development (PD) overlay ordained in Ordinance No. 1788; and WHEREAS, the attached agreement (Exhibit A) with American Baptist Homes of the West stipulates elements of the Terraces BMP housing program implementation; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: Authorize the Town Manager to execute an Below Market Rate Agreement with American Baptist Homes of the West for the Terraces. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 5th day of April, 1993, by the following vote: COUNCIL MEMBERS: AYES: NAYES: ABSENT: ABSTAIN: SIGNED: ATTEST: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CSD08:A: \ RESOS\ CS040593. R00 TOWN CLEF:K AGR: 9.3S REC: AGREEMENT BETWEEN AMERICAN BAPTIST HOMES OF THE WEST, INC. AND THE TOWN OF LOS GATOS RELATING TO BELOW MARKET PRICE HOUSING AT THE TERRACES American Baptist Homes of the West, Inc., (hereinafter "ABHOW'), doing business as the Terraces of Los Gatos, enters into this Agreement with the Town of Los Gatos (hereinafter 'Town") to provide housing and services at reduced rates to eligible senior citizens as part of the Terraces program. The Terraces of Los Gatos is a Licensed Residential Care Facility for the Elderly and a Continuing Care Retirement Community regulated by the State of California. ABHOW agrees to provide and rent 29 Below Market Price (hereinafter "BMP") units to eligible senior citizens. As used in this Agreement, "senior" means persons aged 62 or older. 1. ADMINISTRATION ABHOW will retain administrative control and responsibility of the program provided for in this Agreement as required by company policy and developed to meet the demand of Federal Conditions of Participation in Medicare as a certified provider. ABHOW will administer the BMP units in compliance with this Agreement and its Exhibit A, and the following sections of the Town's current Resolution Specifying Rules, Procedures and Criteria for the Town's BMP housing program: • I.B. Applicant Priority I.C. Confidentiality M.A. Applicant Eligibility III.C. Tenant Selection A copy of the current Resolution is attached hereto and made a part of this Agreement as Exhibit B. 2. BELOW MARKET PRICE MONTHLY SERVICE FEES The initial BMP monthly service fees are specified in the attached Exhibit A which is made a part of this Agreement. These fees are determined by subtracting the percentage Page 1 of 3 of subsidy as specified in this Agreement from the market rate monthly service fees for units at the Terraces. The monthly service fees includes both service and shelter elements. ABHOW agrees to rent 29 units located at the Terraces at the BMP monthly service fees as specified in this Agreement. Said units shall be rented to eligible senior citizens in accordance with the standards provided in this Agreement. The market rate monthly service fees shall be reduced in the percentage specified below to determine the amount of the below market price monthly service fees. These percentages may not be decreased. Alcove 12.5 percent 1 Bedroom/1 Person 18.2 percent 1 Bedroom/2 Persons 14.7 percent Also see Exhibit A. 3. APPLICANTS Except as otherwise provided in this Agreement, to receive consideration for the BMP units, all applicants must meet the admissions criteria set for all other applicants at the Terraces and must be able and willing to enter into a Continuing Care Agreement. In order to be eligible, applicants for the BMP units must have an annual household income of 80 percent or less of the Metropolitan San Jose's median income as defined by the U.S. Department of Housing and Urban Development. 4. AVAILABILITY OF UNITS In accordance with the Town's approval of the project, ABHOW will make available and shall rent 29 Alcove and/or 1 bedroom units as BMP units. Twenty-nine units is 20 percent of the market rate units constructed at the Terraces project. If ABHOW is unable to rent a BMP unit to a qualified individual or individuals after best efforts have been made to do so for a period of not less than 90 days, the unit may be rented at the market rate so long as the next vacant unit is then designated a BMP unit and best efforts to find a qualified individual for the BMP unit are made for at least 90 days. If more than one Page 2 of 3 BMP unit is filled by a market rate tenant, then all new vacancies will be designated BMP units until 29 units are designated as BMP units. Temporary vacancies due to temporary assignment to the Assisted Living or Nursing Facilities will not count as vacancies to be designated BMP units. Refusal to accept a specific unit by an eligible BMP applicant will not prejudice the applicant's place on a waiting list. 5. MARKETING ABHOW will market all units. 6. ANNUAL REVIEW ABHOW will submit an annual summary of occupancy and activity in the BMP program to the Town's Director of Community Services. The Town will monitor the BMP program at the Terraces every six months during the first two years after the date this Agreement is entered into and will monitor the Terraces BMP program annually thereafter. ABHOW will notify the Town whenever the total BMP unit count falls below 29 and will inform the Town of efforts to increase the waiting list. ABHOW will also notify the Town of new vacancies to be designated as BMP units. ABHOW will notify the Town 60 days prior to any increase in the market rate monthly service fee and the BMP monthly service fee. Dated: 3/% 1 13 Amican Baptist Homes of the West, Inc. avid B. F n Executive i resident Dated: Town of Los Gatos CSD 14:A: \CONTRACT\TERRACESAG R David W. Knapp Town Manager Page 3 of 3 EXHIBIT A The Terraces of Los Gatos Below Market Price Program Alcove 0ne Bedroom Double 0cc. Market Rate MSF* 1,440 1,650 2,180 Service Element Price 585 615 1,145 Shelter Element Price 855 1,035 1,035 * Monthly Service Fee Federal Guidelines to determine applicant eligibility 1992-93 HUD income levels for Metropolitan San Jose @ 80 percent of median income: Single Person $27,000 Couple $30,900 Maximum Shelter Price Single Person Couple Shelter Element Price Maximum Shelter Price Raw Differential BMP Monthly Subsidy (27,000 x 33% /12) $743 (30,900 x 33% /12) $850 BMP Monthly Service Fee Subsidy as Percentage of Market Rate MSF. CSDI4:A:\contract\Am.rBapt.fin Alcove One Bedroom Double 0cc. 855 1,035 1,035 743 743 850 112 292 185 180 300 320 1,260 1,350 1,860 12.5% 18.2% 14.7% EXHIBIT B . RESOLUTION 1992-88 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SPECIFYING RULES, PROCEDURES AND CRITERIA FOR THE TOWN'S BELOW MARKET PRICE HOUSING PROGRAM THIS resolution establishes the rules, procedures and criteria that will be used to administer the BMP Housing Program as requested pursuant to Zoning Ordinance Sections 3.90.100 through 3.90.135. RESOLVED: GENERAL PROVISIONS A. Every multifamily rental dwelling project at the time of building permit, every residential condominium or planned development residential subdivision at the time of subdivision, and every community apartment project and every residential stock cooperative apartment or unit project at the time of subdivision if the transaction involves subdivision, or at the time of sale, if it does not, shall contain one or more BMP dwellings according to the rules listed below with the following exception: Any planned development with an underlying zone of HR, shall only be required to pay an in -lieu fee as established by section F of this resolution. 1. Projects containing five or more but fewer than twenty market rate units must provide a number of BMP units equal to 10 percent of the number of market rate units. 2. Projects which include 20 to 100 market rates units must provide BMP units as determined by the following formula: Number of BMP units = .225 (total # of market rate units) - 2.5 3. All projects in excess of 100 market rate units must provide a number of BMP units equal to 20 percent of the market rate units. CS008:.:\RESOS\CS051892.R88 -1- 4. Whenever the calculations of below market price units result in a fraction of one-half or more, the number of units to be reserved is increased to the next whole number. B. Applicant Priority Point system to establish applicant rating and ranking. Six points: (i) Senior citizens who reside in the Town at the time of application and have lived in the Town for at least the prior two years. A senior citizen is defined as any person 62 years of age or older at time of application or married couples living together when at least one spouse is 62 years of age or older at time of application. (ii) Salaried Town employees as defined in the Town's Personnel Rules, who have been employed by the Town for a period of no less than 12 months prior to the time of application. (iii) Senior Citizens who have lived in the Town for at least two years and have moved out of the Town within the last five years prior to the time of application. (iv) Handicapped persons who reside in the Town at the time of application and who have lived in the Town for at least the prior two years. (v) Households which are required to relocate their residence as a result of Council action. Five points: Single heads of household with dependent children who reside in the Town at the time of application and have lived in the Town for at least the prior two years. Four points: Persons who live in the Town of Los Gatos at time of application and who have lived in the Town at least the prior CS008:s:\RESOS\CS051892.R88 -2- two years. Three points: Persons who work in the Town of Los Gatos at time of application and have worked in the Town for at least the prior two years. Two points: Households who have lived in the Town for at least 10 years and have moved out within the last five years prior to the time of application. One point: Households who live or work within Santa Clara County at the time of application and are eligible according to family size and income criteria. Household size is worth two points per person. Applicants will be ranked according to total points and must have at least one point to be eligible for consideration. 2. Household Size/Unit Size: The objective of the BMP Housing Program is to maximize the number of people who may benefit from the BMP housing units. Applications for any unit will first be prioritized according to the point system above and then in order of household size. C. Confidentiality Client information is confidential and not considered public information except for statistical information on the BMP units and general demographic information on the buyers and renters of BMP housing units. Through implementation of the BMP program the Town is attempting to provide a supply of low -moderate income housing not to set the occupants of such housing apart from the general community, attaching a stigma to the occupants. Furthermore, no public interest is served by disclosure of this information. The address of the projects containing BMP units (not the CSOO8:a:\RESOS\Cs051892.R88 - 3 - individual units) nlay be provided as well as a range of sales prices. II. OWNER OCCUPIED UNITS A. Applicant Eligibility 1. Household Income: Income limits are set according to household size and range from 80 percent - 120 percent of the Santa Clara County Median Income, as determined by the Federal Department of Housing and Urban Development. Current income guidelines are attached as Exhibit A. 2. Buyer Qualification: a. A buyer's qualification is determined by the family's ability to make the monthly payments for the unit. The monthly housing cost shall include_ the following factors: Unit Price Current Lending Rates Estimated Taxes Estimated Insurance Costs Homeowner's Fees Other expenses as determined necessary by the lender. b. All persons must qualify for their own mortgage without assistance from the Town. Qualifications must include the ability to pay taxes, insurance, closing costs and any homeowner association fees in addition to the mortgage. c. For a resale unit, the closing costs and title insurance shall be shared by the buyer and seller in a manner consistent with the previous sale/purchase of the unit. For a new unit, the fee shall be shared by the Town from the in -lieu fees, and the buyer. B. Buyer Selection 1. Applications determined to be eligible according to Section II. A. will be prioritized in accordance with the point system described in Section I.B. CS008:i:\PESOS\C5051892.R88 -4- 2. A lottery will be used to rank each qualified applicant in the case of a tie. 3. An applicant has two opportunities to refuse a unit before being removed from the current applicant pool. 4. Applicants who do not qualify for a particular project shall retain their eligibility. 5. The highest ranked applicant must obtain pre -approval for a loan within one week after notification of its eligibility to purchase the unit. The applicant must submit documentation of loan approval within four weeks of notification of its eligibility to purchase the unit. C. Determination of Initial Selling Price 1. The initial sales price of the unit will be determined by consultation between the Town Manager or delegate and the developer within the price range outlined in Exhibit B, "Initial Selling Price." The Manager is authorized to approve changes in specifications to lower the price of the BMP units which do not violate any Town code or ordinance requirements, such as changes in carpeting, lighting fixtures, etc. The initial price will be set by a BMP price agreement, which must be signed by the Town Manager and the developer prior to the Planning Commission review of the project. 2. The initial price of a unit may include direct construction costs and may include a proportionate share of the costs of providing utility services, required on -site improvement, financing and premium points, loan standby fees, landscaping and parking, provided that the price shall not exceed an amount which will allow a range of qualified buyers (as defined above) to purchase a unit. 3. The initial price shall not include cost of land, builder's profit, marke . costs, planning, promotional or advocacy expenses, options prelimin drawings, preparing working drawings and specifications, off -site improvements, public agency fees, bonds, insurance, recreational CSO08:.:\RESOS\CS051892.R88 -5- facilities and engineering and architectural fees related to construction. 4. The range in which the initial selling price shall be set will be determined through completion of the following calculation on an annual basis (See Exhibit B): a. Calculation of the Housing Multiplier i. Determination of Total Housing Cost Sales Price - 10 percent down payment = mortgage + Annual Debt Service + Taxes + Homeowners Fees + PMI = Total Housing Cost ii. Determination of Minimum Household Income Assume 30 percent of household income to go towards housing: Total Housing Cost/.30 = Minimum household income iii. Determination of Multiplier Sales Price/Minimum Household Income = Multiplier b. Initial Sales Price Ranges Minimum and maximum sales prices are established by completing the following formula for a range of family sizes: Income (80, 100, and 120 percent of median income) x multiplier = sales price. D. Deed Restrictions 1. All Below Market Price dwelling units must be owner -occupied except as noted in 2. below. 2. Owners of Below Market Price dwelling units are not permitted to lease, rent, sublet, or otherwise assign their interest in the property, except that the property may be leased for a maximum of 12 months within a 10-year period. Tenants will be limited to persons whose CSD08:4:\RESOS\CSOS1892.1488 -6- annual income is less than 80 percent of the County's Median Income as defined by the Federal Department of Housing and Urban Development. Priority will be given to those households whose income is less than 50 percent of the median income as defined by H.U.D. Income guidelines determined by H.U.D. are set forth in Exhibit A. Rents will be restricted to thirty percent of the maximum H.U.D. income for low income households. Household size will be assumed as follows: studio and one bedroom -1 person; two bedrooms - 3 persons; three bedroom - 4 persons. All leases must be arranged through the Town or its designee and the Owner must accept qualified tenants. 3. In order to lease a unit under the terms of 2. above, the owner must still be qualified within the income limits of the Below Market Price Program in effect at the time of the lease, otherwise the owner must sell the unit. 4. The Town has the right of first refusal on the sale of the BMP units. The Town must exercise its right of refusal within six months from notice of availability of a unit. The developer has second right of refusal on first sale of all new units if the Town is unable to find a buyer. 5. Resale provisions are provided in Section E. below. E. Resale of Units 1. If the owner elects to sell his/her unit, the Town must be notified. 2. When a Below Market Price dwelling unit becomes available for resale, the owner must allow the Town to set the resale price and make the unit available to other program applicants. 3. The Town, after receiving a recommendation from the Agent will determine the resale price in accordance with the deed restriction recorded on the property. 4. Agent notifies the next qualified buyer in the application pool. CSDO8:a:\RESOS\CS051892.R88 -7- F. In -Lieu Fees 1. Establishment of Fee: Projects with five or more but less than ten units may pay a fee in - lieu of building a BMP unit in order to comply with the requirements in Section I.A. Hillside Planned Developments with five or more residential building sites shall require the payment of an in -lieu fee. The fee shall be equal to the amount of six percent of the building permit valuation for the project. The total building permit valuation is determined by the chief building official. 2. Fees will be paid prior to or at close of escrow of each unit. 3. In -lieu fees will be deposited into the Town's Affordable Housing Fund. Funds will be used, in part, for administration of the program. Applications/recommendations for use of remaining funds will be reviewed as received. Possible use of the funds include, but is not limited to, the following: landbanking writing down the cost of owner occupied units to make them -affordable to low/moderate income households purchasing rental units for renting to eligible tenants III. RENTAL UNITS A. Administration The program shall be administered by the Town or its designee. B. Applicant Eligibility 1. Household Income: In order to be eligible, applicants must have a household income under 80 percent of the County's median income as defined by the Federal Department of Housing and Urban Development. (See Exhibit A, attached.) 2. Ability to ay Rent A tenant's ability to pay monthly rent will also be considered in CS008:4:\RESOS\CS051892.R88 -8- determining tenant eligibility. -C. Tenant Selection 1. Applications determined to be eligible according to paragraph B, above, will be prioritized in accordance with the point system established in Section I.B. of this resolution. 2. If necessary, a lottery will be used to rank each qualified applicant in the case of a tie. 3. An applicant has two opportunities to refuse a unit before being removed from the current applicant pool. D. Management 1. BMP rental units shall be managed in the same manner as other units in the development. 2. Tenants are eligible to receive conciliation and mediation services provided through the Town's Rental Mediation Program except as they regard rent increases. E. Unit Rents Tenants will be limited to persons whose annual income is less than 80 percent of the County's Median Income as defined by the Federal Department of Housing and Urban Development. Priority will be given to those households whose income is less than 50 percent of the median income as defined by H.U.D. Income guidelines determined by H.U.D. are set forth in Exhibit A. Rents will be restricted to thirty percent of the maximum H.U.D. income for low income households. Household size will be assumed to be as follows: studio and one bedroom - 1 person; two bedrooms - 3 persons; three bedrooms - 4 persons. F. Annual Review If a tenant's income increases so that it falls between 80 and 100 percent of the County's Median income, then their rent will be set at 30 percent of their annual income; and, the unit shall still be considered a BMP Rental Unit. However, if a tenant's income exceeds 100 percent of the median, the rent will CSD08:a:\RESOS\C5051892.R88 -9- be at market rater in this latter case, the unit will no longer be a BMP unit and the next available unit must be rented to an eligible household so that the number of subsidized units remains the same. FURTHER RESOLVED, that Resolution 1990-213 is repealed PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 18th day of May, 1992 by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Brent N. Ventura, Mayor Eric D. Carlson NAYES: None. ABSENT: None. ABSTAIN: None. SIGNED: ATTEST: is/ Eric D. Carlson MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA is/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CS008:i:\RESOS\CS051892.R88 -10- EXHIBIT A CURRENT INCOME GUIDELINES DETERMINED BY FEDERAL DEPARTMENT OF HOUSING & URBAN DEVELOPMENT REVISED 4/17/91 X OF MEDIAN 50 80 100 120 Persons In Household 1 20200 26600 40400 48500 2 23100 30400 46700 55450 3 25950 34200 51900 62300 4 28850 38000 57700 69200 5 31150 41050 62300 74800 6 33450 44100 66900 80300 7 35750 47100 71500 85800 8 38100 50150 76200 91400 Revised Guidelines, Incorporated into Resolution: 1986-45 Date: 4/6/86 Revised through Resolution 1988-45 Date: 2/6/88 Revised through Resolution 1989-53 Date: 4/24/89 Revised through Resolution 1990-213 Date: 10/15/90 Revised through Resolution 1992-88 Date: 5/18/92 CSDOI:A:\reports\GUIDELIN.MUD 1 EXHIBIi'=B INITIAL SALES PRICE RANGES 1. Calculation of the Housing Multiplier To calculate the initial sales price ranges the Town of Los Gatos multiplies the current income guidelines (determined by the Federal Department of Housing and Urban Development) by 2.28. Assumptions: a. * Loan: * Private Mortgage Insurance: * Underwriting Ratio: Determination of Total Housing Cost Sales Price 10% down Annual Debt Service (12%, 30 Years) Taxes (rate of 1.15%) Homeowners Fees ($100 mo.) PMI (Private Mortgage Ins.) .44X Total Housing Cost b. Determination of Minimum Household Income c. Total Housing Cost 0.3 Determination of Multiplier Sales Price Minimum Household Income Average multiplier — 2.28 12%, 30 Year .44% of Loan Amount Total housing cost no more than 30% of total income EXAMPLE A EXAMPLE B $130,000 $50,000 - 13.000 - 5.000 $117,000 $45,000 $12,969 $ 4,988 1,495 575 1,200 1,200 515 198 $16,179 $ 6,961 EXAMPLE A EXAMPLE B S16.179 S6.961 0.3 — $ 53,930 0.3 — $23,203 EXAMPLE A $130.000 53,930 — 2.41 EXAMPLE B S50.000 23,203 — 2.15 -2- 2. Initial Sales Price Ranges The following chart reflects the sales prices affordable for families at 80, 100, and 120 percent of the County median. (Income X 2.28 - Sales price). SALES PRICES Household Size 80X 10O% 12O% 1 60,648 92,112 110,580 2 69,312 106,476 126,426 3 77,976 118,332 142,044 4 86,640 131,556 157,776 5 93,594 142,044 170,544 6 100,548 152,532 183,084 7 107,388 163,020 195,624 8 114,342 173,736 208,392 RECOMMENDED SALES PRICE RANGE Unit Size Studio 1-2 People $60,648 to $110,580 1 Bedroom 60,648 to 126,426 2 Bedroom 69,312 to 157,776 3 Bedroom 86,640 to 183,084 4 Bedroom 93,594 to 208,392 Revised Guidelines, Incorporated into Resolution 1986-45 Date: 4/7/86 Revised through Resolution 1989-53 Date: 4/24/89 Revised through Resolution 1990-213 Date: 10/15/90 Revised through Resolution 1992-88 Date:5/18/92 CS001:A:\HOUSING\SISPRICE.RNG RESOLUTION 1993-49 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A BELOW MARKET RATE AGREEMENT WITH AMERICAN BAPTIST HOMES OF THE WEST FOR THE TERRACES, 800 BLOSSOM HILL ROAD WHEREAS, the requirement for Below Market Price units is included in the Terraces Planned Development (PD) overlay ordained in Ordinance No. 1788; and WHEREAS, the attached agreement (Exhibit A) with American Baptist Homes of the West stipulates elements of the Terraces BMP housing program implementation; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: Authorize the Town Manager to execute an Below Market Rate Agreement with American Baptist Homes of the West for the Terraces. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 5th day of April, 1993, by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Joanne Benjamin NAYES: None. ABSENT: None. ABSTAIN: None. SIGNED: /s/ Joanne Benjamin MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA PEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CSD08:A:\RESOS\CS040593. R49 -1- April 5, 1993 Los Gatos, California SKATEBOARDING CONT. Motion by Mr. Blanton, seconded by Mrs. Lubeck, to continue this item to April 19, 1993, at which time it shall return as an urgency ordinance with a map delineating the area under restriction. (C-2 Zone and public parking lots) The businesses impacted by the ordinance will be notified and allowed input into the formulation of the ordinance and its boundaries. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. SIGN REQUIREMENTS/SPECIAL EVENTS/ZONING AMENDMENT (32.46) Motion by Mr. Attaway, seconded by Mrs. Lubeck, that Council initiate an amendment to the zoning ordinance and refer to the Planning Commission for hearing. Ordinance would restrict to one the display of temporary signs for all special events whether or not a special events permit is required. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. GEOGRAPHIC INFORMATION SYSTEM/GIS/PERMIT TRACKING SYSTEM (33.28) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council approve purchase of 'Tier II" "Permits"/GIS software and support. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. Motion by Mr. Attaway, seconded by Mr. Blanton, that Council increase Building/Engineer Capital Purchase budget 3420-77000 by $66,670. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. Motion by Mr. Attaway, seconded by Mr. Blanton, that Council increase miscellaneous revenue 100-48609 by $14,800 - San Jose Water Refund. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. Motion by Mr. Attaway, seconded by Mr. Blanton, that Council decrease the accounts by the amounts stated in the Council report. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. Council consensus to direct staff to prepare contracts for approval at april 19, 1993 Council meeting. BLOSSOM HILL ROAD 800/THE TERRACES/BELOW MARKET RATE/AGREEMENT RESOLUTION 1993-49 (34.19) Motion by Mr. Attaway, seconded by Mrs. Lubeck, that Council adopt Resolution 1993- entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A BELOW MARKET RATE AGREEMENT WITH AMERICAN BAPTIST HOMES OF THE WEST FOR THE TERRACES, 800 BLOSSOM HILL ROAD. Carried by a vote of 3 ayes. Mr. O'Laughlin was absent. Mr. Blanton abstained due to the fact that his living directly across the street from the project poses a possible conflict of interest. ADJOURNMENT Motion by Mr. Attaway, seconded by Mrs. Lubeck, to adjourn this meeting at 9.33 p.m. to Closed Session to discuss McNelly v. the Town and Significant Exposure to Litigation as announced at the beginning of this evening's meeting in the Closed Session report. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. A 1"1'EST: Marian V. Cosgrove Town Clerk TC: D5: MM040593 9