M02-19-19
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/05/2019
ITEM NO: 1
MINUTES OF THE TOWN COUNCIL MEETING
FEBRUARY 19, 2019
The Town Council of the Town of Los Gatos conducted a Regular Meeting on Tuesday, February
19, 2019, at 7:00 p.m.
MEETING CALLED TO ORDER AT 7:00 P.M.
ROLL CALL
Present: Mayor Steven Leonardis, Vice Mayor Marcia Jensen, Council Member Rob Rennie,
Council Member Marico Sayoc, Council Member Barbara Spector.
Absent: None
PLEDGE OF ALLEGIANCE
Bob and Susan Buxton led the Pledge of Allegiance. The audience was invited to participate.
PRESENTATION
Mayor Leonardis presented a Small Business, Big Applause commendation to Happy Dragon.
Jane Fazzari thanked the Town for their support.
CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)
1. Approve Closed Session minutes of February 5, 2019.
2. Approve Council minutes of February 5, 2019.
3. Receive the Second Quarter Investment Report (October through December) for Fiscal Year
2018/19.
4. Annexation Application AN 18-002. Project Location: 15760 El Gato Lane. Property
Owner/Applicant: Michael and Kathryn Marchak.
Adopt a resolution making determinations and approving the reorganization of an
uninhabited area designated as El Gato Lane No. 3, approximately 0.19 acres on pro perty
pre-zoned R-1:8. APN 532-27-048. RESOLUTION 2019-004
5. Adopt an Ordinance of the Town of Los Gatos adding Article XIV to Chapter 14 of the Los
Gatos Town Code entitled Short-Term Rentals. ORDINANCE 2279
6. Los Gatos Creek Trail to Highway 9 Connector Project application to Safe Clean Water and
Natural Flood Protection Grant Program.
a. Adopt a resolution authorizing application for grant funds under the Safe, Clean Water
and Natural Flood Protection Program of 2012 for the Los Gatos Creek Trail to Highway
9 Connector Project. RESOLUTION 2019-005
b. Authorize the Town Manager to negotiate and execute a grant agreement with the
Santa Clara Valley Water District.
PAGE 2 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
Consent Items – continued
7. Fiscal Year 2018/19 Mid-Year Budget Performance Report – Six Months ending December
31, 2018.
a. Receive FY 2018/19 Mid-Year Budget Performance Report;
b. Authorize budget adjustments as recommended in the Mid-Year Budget Performance
Report.
8. Measure B Complete Streets Requirements and Funding Agreements.
a. Adopt a resolution adopting a Complete Streets Policy for the Town of Los Gatos.
RESOLUTION 2019-006 and POLICY 3-01
b. Authorize the Town Manager to enter into all Measure B funding agreements with the
Santa Clara Valley Transportation Authority (VTA).
9. Authorize the Town Manager to execute a Certificate of Acceptance and Notice of
Completion accepting the work of MCK Services and authorize recording by the Town Clerk
for PPW Job No. 17-811-9901 Annual Street Repair and Resurfacing Project.
10. PPW Job Number 18-811-9901 Annual Street Repair and Resurfacing Project (Rubber Cape
Seal).
a. Authorize contract award to the project low bidder, American Pavement Systems, in an
amount not to exceed $1,053,800, including a ten percent construction contingency.
b. Authorize staff to execute potential change orders within the ten percent construction
contingency.
c. Recognize $414,061 of project reimbursements and authorize a revenue and
expenditure budget adjustment of $414,061 to the Annual Street Repair and
Resurfacing Project.
d. Authorize a revenue decrease of $178,000 in Gas Tax revenue to the Annual Street
Repair and Resurfacing Project.
e. Authorize a revenue increase of $10,650 in GFAR revenue to the Annual Street Repair
and Resurfacing Project.
Consent Item #7 pulled by members of the public.
MOTION: Motion by Vice Mayor Jensen to approve the Consent Items, exclusive of Item 7.
Seconded by Council Member Sayoc.
VOTE: Motion passed unanimously for items 1-4, 6, and 8-10. Council Member
Spector voting no on Item 5.
PAGE 3 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
VERBAL COMMUNICATIONS
Catherine Somers, Los Gatos Chamber of Commerce Executive Director
- Thanked the Town for their support with the formation of the Business Improvement
District (BID), commented on the funds set aside at the priority setting session for summer
programming, the formation of the BID, and a million simple ideas to utilize the funds to
improve Los Gatos.
Brayton Gosling, Los Gatos Chamber of Commerce President
- Commented on the BID proposal and requested Council increase the funding to $22,000
instead of the $15,000 as previously requested.
Alan Feinberg
- Requested Council invest in rejuvenating the downtown by leveraging the Town's listing in
the National Register of Historic Places; made several suggestions to promote Los Gatos’
historic preservation efforts; and urged Council to approve seed funding for the BID.
Jack Van Nada
- Commented on the Council Finance Committee meeting schedule.
PUBLIC HEARINGS
11. Conditional Use Permit Application U-18-020. Project Location: 114 S. Santa Cruz Avenue.
Property Owner: 102 S. Santa Cruz, LP. Applicant: Brian Edwards.
Requesting approval for a restaurant with beer and wine service (Hapa's Brewing Co.) on
property zoned C-2. APN 510-45-061. RESOLUTION 2019-007
Jenifer Shoopman, Associate Planner, presented the staff report.
Opened Public Comment.
Brian Edwards, applicant
- Described the proposal and commented on the business.
Sue and Ben Barden
- Commented in support of the business.
Bret Moore
- Commented in support of the business.
Shane Rogers
- Commented in support of the business.
PAGE 4 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
Public Hearing Item #11 – continued
Doug Ramezane
- Commented in support of the business.
Ken Barker
- Commented in support of the business.
Kristie Maupin, Loma Brewing Company
- Commented in support of the business.
Mike Frangadakis
- Commented in support of the business.
Norma Martinez, Leasing Company representative
- Commented on the difficulties in leasing the project location , the parking, and in support of
the business.
Tom Richards
- Commented on the lack of parking and in opposition to the location for the business.
Derek Thomas
- Commented in support of the business.
Eddie Kluding
- Commented in support of the business.
Gail Randolph
- Commented in opposition to the location of the business.
Michael Verga
- Commented in opposition to the location of the business.
Patty Stepovich, landlord of Rural Supply Hardware
- Commented on the lack of parking for the building, in opposition to the location of the
business, and the maintenance of the access driveway.
Tim Nelson, Rural Supply Hardware
- Commented on the lack of parking and in opposition to the location of the business.
Paul Biber
- Commented in opposition to the location of the business and the lack of parking.
PAGE 5 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
Public Hearing Item #11 – continued
Larry Lenhart
- Commented in opposition to the location of the business.
Andy Law
- Commented in opposition to the location of the business.
Andy Edwards
- Commented in support of the business.
Jeremy Bays
- Commented in support of the business.
Kim Skaran
- Commented in support of the business.
Carol Santos
- Commented in support of the business.
Matt Sridhar, owner of property
- Commented on the noise issue and in support of the business.
David Burt
- Commented support of the business.
Joe Nigos
- Commented in support of the business.
David McGregor
- Commented in support of the business.
Lee Quintana
- Commented on the intent of a conditional use permit, the noise issues, the lack of parking,
and the potential loss of an existing business.
Brian Edwards, applicant and Kevin Mattos, architect
- Addressed public comments.
Closed Public Comment.
Council discussed the matter.
PAGE 6 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
Public Hearing Item #11 – continued
MOTION: Motion by Vice Mayor Jensen to approve the Conditional Use Permit with the
Planning Commission conditions (Attachment 4) which include no TV’s outside
and acoustic music only outside, add the additional conditions of: 1) hours of
operation to close by 10 p.m., 2) a landscaping and noise dampening condition,
3) the outdoor area be contained by planter boxes with some kind of noise
dampening, 4) the owners or representatives are available for contact anytime
the establishment is open to address or respond to issues the neighbors might
bring forward, and 5) the owners negotiate and sign an operating agreement
with the Town that reflects the conditions of approval. ADDENDUM: add the
term "craft beer" to the use description. Seconded by Mayor Leonardis.
VOTE: Motion passed unanimously.
Recessed at 9:24 p.m.
Reconvened at 9:35 p.m.
OTHER BUSINESS
12. Discuss the Five-Year Forecast and other budget assumptions that are the foundation for
the Town's budget.
Laurel Prevetti, Town Manager and Arn Andrews, Assistant Town Manager, presented the staff
report.
Opened Public Comment.
Jak Van Nada
- Commented on using an amortization base to pay down the unfunded pension liability.
Phil Koen
- Commented on the potential surplus available.
Catherine Somers, Los Gatos Chamber of Commerce Executive Director
- Commented on the $22,000 requested from Council as seed money for the BID study and
asked how the $1,000,000 that was set aside for Downtown Improvements would be
monitored.
Closed Public Comment.
Council discussed the matter.
PAGE 7 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
Pulled Consent Item #7
7. Fiscal Year 2018/19 Mid-Year Budget Performance Report – Six Months ending December
31, 2018.
a. Receive FY 2018/19 Mid-Year Budget Performance Report;
b. Authorize budget adjustments as recommended in the Mid-Year Budget Performance
Report.
Steve Conway, Finance Director, presented the staff report.
Opened Public Comment.
Jak Van Nada
- Commented on the five-year projected payroll listed on the CalPERS report.
Phil Koen
- Commented on the forecasted salaries and benefits and projected expenditures.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Council Member Rennie to accept the FY 2018/19 Mid-Year Budget
Performance Report and authorize budget adjustments as recommended in the
Mid-Year Budget Performance Report. Seconded by Vice Mayor Jensen.
VOTE: Motion passed unanimously.
COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Sayoc stated she attended the Cities Association meeting and the League
of Cities Peninsula Division meeting.
- Council Member Spector stated she attended the West Valley Clean Water Authority
(WVCWA) meeting, the Solid Waste Management meeting, and participated with other
Town representatives in a retail outlook webinar.
- Mayor Leonardis stated he attended the Treatment Plan Advisory Committee meeting, the
West Valley Sanitation District (WVSD) Board of Directors meeting, and he participated in
the retail outlook webinar.
- Vice Mayor Jensen stated she had nothing to report.
PAGE 8 OF 8
SUBJECT: MINUTES OF THE TOWN COUNCIL MEETING OF FEBRUARY 19, 2019
DATE: FEBRUARY 20, 2019
Council Matters – continued
- Council Member Rennie stated he attended the Local Area Formation Commission (LAFCO)
meeting, the Valley Transportation Authority (VTA) Board meeting, the service provider
quarterly meeting at the Los Gatos Chamber of Commerce, the Silicon Valley Clean Ene rgy
Authority (SVCEA) Risk Oversight Committee meeting; and he participated in the retail
outlook webinar.
Manager Matters
- Announced Adult Commissioner mid-year recruitment has begun, applications are due
April 5, 2019, 4:00p.m.
- Announced the annual Youth Commissioner recruitment has also begun and applications
are due May 3, 2019, 4:00 p.m.
- Announced author Anna Yen will be at the Library on Saturday, February 23, 2019 at 2:00
p.m. to discuss her book Sophia of Silicon Valley.
ADJOURNMENT
The meeting adjourned at 10:45 p.m.
Attest:
_____________________________________
/s/ Shelley Neis, Town Clerk