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M 06-05-95TOWN OF LOS GATOS CALIFORNIA TOWN COUNCIL/PARKING AUTHORITY June 5, 1995 Minutes TOWN COUNCIL The Town Council/Parking Authority of the Town of Los Gatos met in the Council Chambers of the Town Hall, 110 East Main Street, at 7:35 p.m., Monday, June 5, 1995, in regular session. ROLL CALL Present:Randy Attaway, Joanne Benjamin, Steven Blanton, Linda Lubeck and Mayor Patrick O'Laughlin. Absent:None. PLEDGE OF ALLEGIANCE Given by all in attendance. CLOSED SESSION Larry Anderson, Town Attorney, reported that Council had met in Closed Session prior to this evening's meeting pursuant to Government Code Section 54956.9(a) to discuss Pending Litigation item regarding Ruth Gettler v. Town of Los Gatos, et al., Santa Clara County Superior Court 731847. This concerns a settlement agreement regarding a slip and fall in the downtown area. Settlement details are still being negotiated. NATIONAL SKILLS OLYMPICS/COMMENDATIONS (00.42) Mayor O'Laughlin presented commendations from the Town to the State Gold Medal Winners of the National Skills Olympics. Aaron Baker, Meredith Harrington and Jason Feldt were present to receive their awards. The Mayor wished them well as they advance to the National Finals in Kansas City. SCHEDULE OF PUBLIC HEARINGS (01.01) Informational report regarding currently scheduled public hearings was received and filed. PLANNING COMMISSION/PLANNING DEPARTMENT MONTHLY STATUS REPORT (02.47) Informational report regarding activity of Planning Commission and Department was received and filed. COUNCIL CALENDAR OF MEETINGS (03.10) Informational item presenting future Town Meetings for Council and other Town Boards and Commissions was received and filed. PAYROLL RATIFICATION/MAY 1995 (04.V) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council ratify the check register for the payroll of April 23 through May 6, 1995 paid on May 12, 1995 and for the payroll of May 7 through May 20, 1995 paid on May 26, 1995 in the amount of $431,281.96. Carried unanimously. TC:D7:MM060595 June 5, 1995 Los Gatos, California ACCOUNTS PAYABLE/RATIFICATION/MAY 1995 (05.V) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council ratify the accompanying check registers for accounts payable invoices paid on May 19 and 26, 1995 in the amount of $386,851.68. Carried unanimously. MINUTES OF MAY 15, 1995 (06A.V) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council approve the Minutes of May 15, 1995 as submitted. Carried by a vote of 4 ayes. Mrs. Benjamin abstained. MINUTES OF MAY 22, 1995 (06B-1.V) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council approve the Minutes of May 22, 1995 as submitted. Carried unanimously. MINUTES OF MAY 23, 1995 (06B-2.V) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council approve the Minutes of May 23, 1995 as submitted. Carried unanimously. TIMING LIGHTS/TOWN COUNCIL CHAMBERS (09.28) The Town Manager pulled this item and will place it on a future agenda. COMPUTER EQUIPMENT/MAPPING ABILITY/BUILDING DEPARTMENT (10.28) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council transfer $3,100 from Non-Point Source Account (Office Supplies) to Non-Point Source (Capital) and approve transfer of three 286- based PC's to the NOVA Program. Carried unanimously. FILE CABINETS/TAB FILING SYSTEM/CLERK'S DEPARTMENT (11.28) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council authorize transfer in Clerk's Department budget of $7,500 to Office Supplies from Benefits $3,090 and Capital Purchases $4,410 for the purchase of TAB filing cabinets. Carried unanimously. GEOGRAPHIC INFORMATION SYSTEM/TEMPORARY STAFF (12.06) This item was removed from the agenda by staff. AMICUS/EHRLICH/CITY OF CULVER CITY (13A.01) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council approve amicus participation in Ehrlich v. City of Culver City, California Supreme Court S033642, at no cost to the Town. Carried unanimously. AMICUS/BEHRENS/PELLETIER (13B.01) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council approve amicus participation in Behrens v. Pelletier, United States Supreme Court, at no cost to the Town. Carried unanimously. AMICUS/CALIFORNIA BEVERAGE RETAILERS/CITY OF OAKLAND (13C.01) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council approve amicus participation in California Beverage Retailers v. City of Oakland, First District Court of Appeals, at no cost to the Town. Carried unanimously. TC:D7:MM060595 June 5, 1995 Los Gatos, California CAPITAL IMPROVEMENT PROGRAM 1995-2000/RESOLUTION 1995-59 (14.06) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-59 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING 1995-2000 CAPITAL IMPROVEMENT PROGRAM. Carried unanimously. MARK LINDER/ASSISTANT TOWN MANAGER/COMMENDED/RESOLUTION 1995-60 (15.42) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-60 entitled, RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING MARK LINDER FOR HIS OUTSTANDING SERVICE TO THE TOWN OF LOS GATOS AS ASSISTANT TOWN MANAGER. Carried unanimously. OCS TECHNOLOGIES/CHANGE ORDER 2B/RESOLUTION 1995-61 (16.28) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-61 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE CHANGE ORDER 2B FOR THE AGREEMENT WITH OCS TECHNOLOGIES, INC. Carried unanimously. HEWLETT PACKARD/SUPPORT SERVICES/RESOLUTION 1995-62 (17.28) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-62 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH HEWLETT PACKARD FOR SUPPORT SERVICES. Carried unanimously. SANTA CLARA COUNTY CITIES ASSOCIATION BY-LAWS/RESOLUTION 1995-63 (18.17) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-63 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING SANTA CLARA COUNTY CITIES ASSOCIATION BY-LAWS AND AUTHORIZING TOWN MANAGER TO EXECUTE AGREEMENT FOR THE ADMINISTRATION OF THE SANTA CLARA COUNTY CITIES ASSOCIATION, A SECTION OF THE PENINSULA DIVISION OF THE LEAGUE OF CALIFORNIA CITIES. Carried unanimously. SANTA CRUZ AVE N 662/R&M PROPERTIES/RENTALS/RESOLUTION 1995-64 (19.09) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-64 entitled, RESOLUTION OF THE TOWN OF LOS GATOS GRANTING APPEAL OF PLANNING COMMISSION DECISION TO DENY A REQUEST TO MAINTAIN AN EIGHT UNIT APARTMENT COMPLEX IN THE C-1 ZONE INSOFAR AS TO CONTINUE THE APPEAL FOR A PERIOD OF SIX (6) MONTHS AND TO ALLOW THE CURRENT USE THAT IS NOT PERMITTED BY CURRENT ZONING TO CONTINUE DURING THAT TIME, SUBJECT TO CONDITIONS: CONDITIONAL USE PERMIT APPLICATION U-94-4. Carried unanimously. SANTA ROSA HEIGHTS/TRACT 8400/OPEN SPACE MAINTENANCE DISTRICT AD VALOREM ASSESSMENT RATE/RESOLUTION 1995-65 (20.14) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-65 entitled, RESOLUTION OF THE TOWN OF LOS GATOS LEVYING THE AD VALOREM SPECIAL ASSESSMENT IN OPEN SPACE MAINTENANCE DISTRICT #2. Carried unanimously. TC:D7:MM060595 June 5, 1995 Los Gatos, California VASONA HILLS/TRACT 8280/OPEN SPACE MAINTENANCE DISTRICT AS VALOREM ASSESSMENT RATE/RESOLUTION 1995-66 (21.14) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1995-66 entitled, RESOLUTION OF THE TOWN OF LOS GATOS LEVYING THE AD VALOREM SPECIAL ASSESSMENT IN OPEN SPACE MAINTENANCE DISTRICT #3. Carried unanimously. VERBAL COMMUNICATIONS There was no one from the audience to speak on issues not on the agenda. HEARINGS BRUSH ABATEMENT/PUBLIC NUISANCE/RESOLUTION 1995-67 (22.26) Mayor O'Laughlin stated that this was the time and place duly noted for public hearing to consider the abatement of brush which has been declared a public nuisance. The following person from the audience spoke to this issue: Himanshu Vaishnav, 16050 Greenridge Terrace, claimed his brush held the earth in place and was needed close to his home due to the slope of his property. Staff and Central Fire will contact Mr. Vaishnav. No one else from the audience addressed this issue. Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council close the public hearing. Carried unanimously. Motion by Mrs. Lubeck, seconded by Mr. O'Laughlin, that Council adopt Resolution 1995-67 entitled, RESOLUTION OF THE TOWN OF LOS GATOS OVERRULING OBJECTIONS AND ORDERING ABATEMENT OF BRUSH AS A PUBLIC NUISANCE. Carried unanimously. UTILITY USERS TAX/GAS, ELECTRIC, TELEPHONE, CABLE, WATER (23.05) Mayor O'Laughlin stated that this was the time and place duly noted for public hearing to consider reintroduction of amended ordinance to establish a 2% utility users tax on gas, electric, telephone, cable and water. Comments from the Town Manager: Mr. Knapp gave a slide presentation of an overview of the information garnered from the Town's Community Financial Forums held last summer and the realities of the financial bind placed upon the Town by the State and County. Comparison of revenues and expenditures was made. The largest factor in our current fiscal crisis is the State take away program. The lack of sufficient funds for maintenance of infrastructure was discussed. He mentioned the tight budget controls that have been implemented in an attempt to keep the Town's budget balanced during these severe revenue shortfalls. Staff has been reduced about 25% in the last four years. Departments have been consolidated. Outside contracting is taking place. Automation has taken the place of additional staff and has improved service levels. Analysis of property tax and sales tax revenues was made as the State has taken back more of these funds. Commercial development is limited in the boundaries of Los Gatos. TC:D7:MM060595 June 5, 1995 Los Gatos, California The large spaces for viable development TC:D7:MM060595 June 5, 1995 Los Gatos, California HEARINGS CONTINUED UTILITY TAX CONT. Manager's Comments continued: are not on the market at the present time but could generate revenues if effectually used. The Town and community review all potential development with the view that it should enhance the quality of life for Los Gatos. One of the local taxes and revenue which the Town keeps for its own needs and which the State is unable to take away is the transient occupancy tax. The other strictly local revenue support which the community has full jurisdiction over is a utility users tax. The citizens who participated in the financial forums requested present levels of service be continued and quality of life remain stable. Of all revenue sources considered the utility users tax was considered the most feasible and controllable for the needs of our local municipality. The charm of the total community was considered of primary importance and a non obtrusive revenue source was the one chosen by the majority of the financial forum participants. Question from Mrs. Lubeck: Why does this proposal not have to go to the people for a vote? Answer from Mr. Anderson, Town Attorney: Prop 13, an amendment to the state constitution, capped property assessments and required a 2/3 vote of the people on any special local taxes. Taxes for general fund and operating expense purposes have no restrictions placed upon them and do not have to be placed on a ballot. Those revenues which may remain completely within our own community and go into the general fund are transient occupancy taxes, business licence taxes, transfer taxes, assessment districts and utility taxes, and they do not require a vote of the people. The following people from the audience spoke to this issue: Bill Quigley, 103 Belridge Drive, spoke for the tax with a five year sunset clause and noted the loans on the manager's and police chief's homes. Jo Bartlett, 166 Oak Hill Way, asked for a five year sunset clause and a special election. Ann Holley, 116 Hilow Court, urged Council adoption of the ordinance and the elimination of the special election. Wilbur Lindsay, 328 Harding Ave., spoke against the tax and asked for an election. Ed Gamble, P.O. Box 477, inquired about the new police vehicles. Noted that the various telephone services have different rates, and charges for the utility tax will vary on the part of town one lives in. Rick Nelsick, 340 Bella Vista, commended staff on the look of the Town especially after the many visitors this weekend. Opposes the tax but if there must be a revenue source a sunset utility tax is best. Anthony McKeon, 116 Sierra Linda, supports the 2% utility tax with a five year sunset clause. Spoke about the need to repair the infrastructure. Dale Hill, 150 Robin Way, spoke against the vote due to the cost of an election and the amount of resources that will be expended in campaigning for this election. Expressly noted that the Town has made every effort to notify and include the citizens in the process to identify and solve its financial crisis. She asked that Council take a stand and pass the ordinance now. Robert Wales, 101 Casa Grande, asked for an election on this issue and was in favor of the sunset clause. TC:D7:MM060595 June 5, 1995 Los Gatos, California HEARINGS CONTINUED UTILITY TAX CONT. Speakers continued: Egon Jensen, 182 Lester Lane, spoke of development and fees. He submitted a letter for the record with suggestions for cost savings. He would prefer an election. Lela Austin, 14742 Eastview Drive, opposes the utility tax and prefers an election. Spoke of downsizing to save and asked for alternatives to the tax. Shirley Henderson, Antiquarium, 98 W. Main St., spoke for the town employees and supported adoption of the ordinance without an election. Helga Ruby, 18400 Overlook Road #9, representing the League of Women Voters, supported the ordinance and did not wish to see the expense of an election. Emma Vargo, 15400 Winchester Blvd., spoke of economy in the budget and is not in favor of the utility tax. Supports an election. Bill Ferguson, 245 Vista de Sierra, asked that the budget be cut and the utility tax go to the people for a vote. Supports a five year sunset clause. Marlene Lamb, 105 Arroyo Grande Way, asked that economies be taken. Allan Beattie, Sr., 76 Alpine Ave., preferred an election and a sunset clause on the utility tax. Ralph Fitzgerald, 14960 Larga Vista Drive, preferred a sunset clause and an election. Mrs. Katan, 108 Auzerias Court, spoke in favor of living within a strict budget, placing the question of a utility tax on the ballot and having a sunset clause. Marvin Smith, 237 Plaza La Pasada, spoke against the tax and for an election. Mike Abkin, 122 El Olivar, spoke of the prompt need for the ordinance adoption so as to infuse the infrastructure with some immediate funds. The deterioration is beginning to multiply upon itself and needs to be attended to now. Kurt Lemons, 54 N. Santa Cruz Ave., was in favor of utility tax for support of the current service level. Lorraine West, 18 Oak Hill Way., spoke against the excessive and unnecessary use of the police department. Joe Hargett, 95 Church Street, is in favor of the utility tax as an emergency measure to offset the immediate infrastructure needs of the Town. Need to relieve the fiscal crisis. Mary Kloet, 229 Wilder Ave., spoke for an election on this issue. Joe Pirzynsky, 350 Los Gatos Blvd., spoke in favor of immediate adoption of the tax and requested that the Town and Council correct the misinformation that is in circulation. Charlene Boulais, 307 West Main, feels strongly that this issue should go to the vote. No one else from the audience addressed this issue. Council and staff comments: Mrs. Lubeck noted that hearings have been held on the Capital Improvement Program during the last month and it was pointed out in those reports and studies that it will take 9.9 million dollars over the next five years to bring the streets back to the condition we would like them to be. At this time the amount that is going into street repair will not keep us on target and the street conditions will continue to deteriorate. TC:D7:MM060595 June 5, 1995 Los Gatos, California HEARINGS CONTINUED UTILITY TAX CONT. Council and staff comments continued: Mr. Knapp the report on this topic, May 10, 1995, Item 5 of the May 15th agenda, specifically quantifies the impact resources will have on the streets. Metropolitan Transportation Commission Report is also included with their suggestions for a pavement management program. These reports are available from the Manager's and Clerk's Offices. Mr. Attaway noted the Town's decline in the Commission rating schedule and the need to bolster the resources available for street repair. He asked to keep the vote on the budget separate from the question of the utility tax. If the utility tax is passed Council can determine whether to add back into the adopted budget. Mr. Blanton referred to the 6.5 million dollars in the progressive alternative for road repair which would mean placing $560 thousand a year into the CIP over and above what we are putting in it at the current time. He also commented that if Council adopted the present budget he was not willing to proceed with the utility tax. Mrs. Benjamin spoke of the sewers and retaining walls that are failing and need repair. Once failed they will need to be replaced at far more cost. Noted that the restrictions and the requirements that the Town imposes create an ambiance that is attractive to many people including the residents and business owners. This service level and code enforcement is costly and those benefiting from the ambiance and service level should be willing to pay the extra cost or allow themselves to become like their neighboring communities and allow increased density on property and additional commercial development. The street trees, sidewalk repairs and other beautification programs carry a cost but at the same time they help keep our property values up. Mr. Anderson noted that this evening's meeting was the first public hearing to be held concerning the utility tax ordinance. The second hearing is noticed for July 17, 1995. Mayor O'Laughlin requested that Council keep the hearing of July 17th as scheduled and also continue this evening's hearing to June 19, 1995. He noted the five year sunset provision and the need of future Council to review and adopt another ordinance if needed. He asked if rates would be different according to which telephone service was being used. Mrs. Lubeck noted five year sunset; circulation of information; police department cuts; election held. Motion by Mrs. Benjamin, seconded by Mr. Attaway, that Council continue this public hearing two weeks to June 19, 1995 and then to continue it again to July 17, 1995. Carried unanimously. MARK LINDER/COMMENDATION/SERVICE AS ASSISTANT TOWN MANAGER (000.42) Mayor O'Laughlin presented Town Commendation to Mark Linder for his service to the Town while serving as the Town's Assistant Manager. His many projects over the past four years were enumerated such as improving the annual budget process, establishing a viable financial future for the Town through community forums, organizing the cable television program, and managing the Los Gatos Creek Trail construction project among others. TC:D7:MM060595 June 5, 1995 Los Gatos, California UNIVERSITY AVE 104/FEE ASSESSMENT (08.09) Bert Millen, 104 University Ave., asked that his fees be reduced for the building repair of his business. He asked about the cost of adopting a new zoning ordinance. Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Mr. Millen take this issue back to the Planning Commission with the notation that his time limit for appeal be waived since his question had been before Council for some time without resolution. Carried unanimously. POLICIES/TOWN COUNCIL (07.10) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council refer the report to staff and the Planning Commission for formal adoption with the exception of Item F2. From one to three trees may replace one removed tree on a small lot at the discretion of the Parks, Forestry and Maintenance Department. COUNCIL MEETING SCHEDULE 1995-96 (24.10) Motion by Mr. Blanton, seconded by Mr. Attaway, that Council approve the Town Council Meeting Schedule for 1995-96 Fiscal Year, with the possibility of cancelling the August 21, 1995 meeting and noting that the February 12, 1996 Study Session was a mistaken notation and is to be deleted. Carried unanimously. COUNCIL COMMITTEES/WEST VALLEY SANITATION (25.20) Randy Attaway noted that the appointment to the West Valley Sanitation District Committee should always be a two year appointment so that the representative has time to learn the issues and to be able to make informed decisions beneficial to Los Gatos by the second year. ADJOURNMENT Motion by Mrs. Lubeck, seconded by Mrs. Benjamin, that this evening's meeting be adjourned at 10:39 a.m. Carried unanimously. ATTEST: Marian V. Cosgrove Town Clerk TC:D7:MM060595