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11 Staff Report - 14300-14350 Winchester Boulevard DATE: TO: FROM: COUNCIL AGENDA REPORT April 30, 2004 􀁍􀁁􀁙􀁏􀁒􀁁􀁎􀁄􀁔􀁏􀁗􀁎􀁃􀁏􀁕􀁎􀁃􀁾 ORRY P. KORB, TOWNATTORNE# MEETING DATE: . ITEM NO. " 5/3/04 SUBJECT:. 14300-14350 WINCHESTER BOULEVARD A. ADOPT RESOLUTION APPROVING SALES TAX AGREEMENT WITH NETFLIX, lNC. B. ADOPT ORDINANCE AMENDING ORDINANCE 2126 CONCERNING THE PLANNED DEVELOPMENT AT 14300-14350 WINCHESTER BOULEVARD RECOMMENDATION: A. Adopt resolution approving sales tax agreement with Netflix. Inc. B. 1. Adopt ordinance that was introduced at the Council meeting ofApril 23, 2004 2. Instruct the Clerk to either: (a) publish the ordinance within 15 days after adoption, or (b) publish a summary no more than 15 days after adoption (if summary published before 􀁡􀁤􀁯􀁰􀁴􀁩􀁯􀁮􀀩􀁾 3. Adopt resolution approving sales tax agreement with Netflix, Inc. DISCUSSION: On April 23, 2004 Council introduced the Attachment, which amends Ordinance 2126 concerning the Planned Development at Winchester Boulevard. In addition, Council expressed its satisfaction with a proposed sales tax agreement with Netflix, Inc., the anticipated tenant ofthe office space component ofthe project. The agreement is before Council for approval as Exhibit "A" to the Resolution, which is Attachment 2 to this report. Attachment 1. Ordinance 2. Resolution (Agreement is Exhibit "A" to the resolution) Distribution: John Shenk, Sobrato Development, 10600 N. DeAnza Blvd., #200, Cupertino, CA 95014 David Hyman, Netflix, 970 University Avenue, Los Gatos, CA 95032 PREPARED BY: ORRY P. KORB, TOWN ATTORNEY OPK:LMBIwp (N:\ATY\Sobrato.TCR.wpd] Reviewed by: _._ T?\VIl Manager R2iS Finance Rev: 4/30/04 11:43 am Reformatted: 7/19/99 Assistant To\VIl Manager Community Development Clerk File# 301-05 ORDINANCE ORDINANCE OF THE TOWN OF LOS GATOS . , AMENDING ORDINANCE 2126 CONCE:RNIN9 􀁾 PLANNED DEVELOPMENT AT 14300-14350 WINCHESTER BOULEVARD THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: ! SECTION I Ordinance 2126 for the Planned Development at 14300& 14350 WinchesterBoulevard as shown on the map attached as Exhibit A is hereby 􀁡􀁭􀁥􀁮􀁤􀁾􀁤 as follows. SECTION II The anlendedPD (planned Development Overlay) zone established by this Ordinance authorizes the following construction and use ofimprovements: 1. ' Construction ofa office/research and development (R&D) complex up to 120,000 square feet, as shown in the conceptual development plans attached to Planned Development Ordinance 2126, and 290 residential apartments including 239 market rate and 51 Below Market Price (BMP) units. The office/R&D complex may increase in size up to 160,000 square feet upon proofofa binding iease with an initial occupant for up to 80,000 square feet for a corporate headquarters (as define4 by the Institute ofTraffic Engineers Traffic Design Manual) that generates sales tax to the Town ofLos Gatos. The lease agreement shall include provisions for a minimum of seven years on Building'A with an option on BuildingB. 2. Landscaping, parking, and other site improvements shown and required on the Official Development Plan (Exhibit B); 3. Uses permitted are residential, non-medical office and research and development (R&D), subject to Section 29.80.085, and those uses specified in the underlying CM (Controlled Manufacturing) zone by Sections 29.70.220 (permitted Uses) and 29.20.185 (Table of Conditional Uses) of the Zoning Ordinance, as those sections exist at the time of the adoption of this Ordinance, or as they may be amended in the future subject to any restrictions or other requirements specified elsewhere in this ordinance including, but not limited to, the Official Development Plan. Retail and a daycare center are also authorized uses subject to approval of an architecture' and site application to determine the location and square footage of either use in a manner that is otherwise consistent with this ordinance. However, no use listed in Section 29.20.185 is allowed unless specifically authorized by this Ordinance. 4. The office/R&D complex is,limited to a maximum offour tenants. Page 1 of 16 fj,!' .L.U, 􀀧􀁾􀁃􀁈􀁍􀁅􀁎􀁔 1 SECTION III COMPLIANCE WITH OTHER DEVELOPMENT STANUARDS All provisions ofthe Town Code apply, except when the Official Development Plan specifically shows otherwise. SECTION IV Architecture and Site Approval is required before any construction work for the project is performed, whether or not a permit is required for the work and before any permit for construction is issued. Construction permits shall only be issued in a manner complying with Section 29.80.130 ofthe Zoning Ordinance. A garage/foundationpermitmaybe issued prior to approval ofthe Architecture &Site application and approval ofthe Community Benefit Agreement. SECTION V The attached Exhibit A (Map) and Exhibit B (development plans received by the Town ofLes Gatos on.April 14, 2004, 23 sheets), incorporated herein by this reference,are part of the Official Development Plan. The development plai.1sreceived by the Town ofLo's Gatos on December 4, 2003 are still valid for the residential component of the project. The following must be complied with before issuance of any grading, demolition or construction permits, unless otherwise stated: TO THE SATISFACTION OF THE DIRECTOR OF COMMUNITY DEVELOPMENT: Planning Division 1. ARCHITECTURE AND SITE APPROVAL 􀁾􀁑􀁕􀁉􀁒􀁅􀁄􀀮 A separate Architecture and Site (A&S) application shall be required for the office/research and development (R&D) buildings, apartment buildings, parking areas and landscape 'improvements. This application may be approvedbythe Town's DevelopmentReview Committee. The A&S process shall not reduce the number ofapartment units below 290 or the officelR&D below the square footage authorized by this Ordinance without the consent oftheapplicant. 2, OFFICIALDEVELOJ;>MENTPLANS. The Official DevelopmentPlansprovided are conceptual .in nature. Final footprints andbuilding designs shall be determined during the architecture and site approval process. 3. 􀁂􀁾􀁄􀁉􀁎􀁇 COMPOSITION. The office/R&D complex shall include any indoor conference Page 2 of 16 facilities, cafeteria, fitness center or other amenities. The size and composition ofthe apartment buildings shalLbe refined as part of the architecture and site approval process. The nuniber of rental units is 290. 4. BUILDING HEIGHT. The maximum height of the office buildings may be up to 55 feet, exclusive ofthe tower elements. Staff shall work diligently with the applicant to reduce the need for additional height above 49 feet six inches through the architecture and site and building plan check processes. 5. BELOWMARKET PRICEPROGRAM. The developer shall designate 51 ofthe residential units as BMP rental units. A deed restriction shall be recorded prior to issuance of building pennits stating that theBMP units must be rented as below market price units pursuant to the Town's BMP requirements in place at the time ofthe Planned Development approval. The BMP units shall be low income (less than 80% ofmedian income). The unit mix identified in the January 20, 2004 Desk Item to the TownCouncil maybe modified to allow additional studio and one bedroom units through the architecture and site review process. 6. COMMUNITY BENEFIT. The applicant shall enter into an agreement with the Town for provision ofthecommunity benefits being offered with the project as listed in the letter from the applicant dated May 14, 2003 (Exhibit A to the October 22, 2003 Report to the Planning Commission). The agreement shall include details on the timing and implementation ofeach item and shall be approved by the Town Council prior to issuance of any building pennits for the project. A garage/foundation pennit may be issued prior to the Town Council approval of the Community Benefit Agreement, 7. LANDSCAPING. The planting along Los Gatos Creek shall be riparian ground covers, understory vegetation and trees selected from the California Department of Fish & Game's Riparian, Vegetation List. 8. LANDSCAPE PLAN. The final landscape plan shall be reviewed by the Consulting Arborist 􀁾 part ofthe Architecture & Site approval process. All Tree Protection measures recommended by the Consulting Arborist shall be followed. 9. . **CULTURALRESOURCES MITIGATION MEASURE 4.8-1. Ifit is demonstrated that there are intact deposits of significant archaeological materials, a plan for the mitigation ofimpacts to these resources shall be submitted to the Planning Division for approval prior to resumption of construction activities in the area ofidentified deposits. Ifcultural or archaeological resources are uncovered during construction, all work must be halted within a 50-foot radius of the find, the CommunityDevelopmentDirector shall be notified, and a qualified archaeologistmustbe retained to examine the find, determine its significance and make appropriate recommendations. Project personnel shall not alter the materials or their context or collect cultural resources. The cost ofthe Town retaining a qualified archaeologist shall be paid for by the property owner/developer. If human remains are discovered, the Los Gatos Police Department and Santa Clara County Coroner shall immediately be. notified. The Coroner would determine whether or not the remains were Native American. Ifthe Coroner determines that the remains are not subject to his or her authority, the Coroner shall notify the Native American Heritage Commission,who would attempt to identify descendants ofthe deceased Native American. 10. TREE REMOVAL PERMIT. A Tree Removal Permit shall be obtained prior to the issuance of a Building, Grading or Encroachment Pennit. 11. RECYCLING. All wood, metal, glass, and aluminum materials generated from the demolished structure shall be deposited to a company that will recycle the materials. Receipts from the Page 3 of 16 12. 13. 14. 15. 16. 17. 18. company(s) accepting these materials, noting type aiJ.d weight ofmaterial, shall be submitted to the Town prior to the Town's demolition inspection. LIGHT RAn, EXTENSION. The developer shall participate and assist the Town in working with the Santa Clara Valley Transportation Authority (VTA) in extendirtg the light rail line from Campbell to the project site. PARKING. The minimum parking ratios for the project are 3.1 spaces/lOOO square feet for the office buildings and 1.8 spaces/unit for the apartments. The areabetween the office and residential uses is identified as shared parking. Parking.spaces may be removed to accommodate the future light rail station, a sidewalkalong the propertyfrontage or otherimprovements deemed appropriate by the Director ofCommunity Development provided that the number of spaces does not fall below the minimum levels. Any changes to the parking layout shall be first approved by the Directors of Community Development and Parks & Public Works. Wheel stops may be used in the parking garages where deemed appropriate and necessary for safety. Wheel stops shall not be used in any surface parking areas. Parking spaces shall be double striped per Town standards. RIP.ARIAN CORRIDOR. Riparian planting shall be on the creek side ofthetrail, atld a -drinking fountain shall be included alongside the creek trail ifperinitted by the Santa Clara Valley Water District. NETWORKACCESS. Network access shall be provided in the outdoor common areas, to allow people to workoutside. PROJECT SIGNS. A sign program shall be proposed bythe applicant and shall be reviewed and approved bythe Director ofCommunityDevelopment prior to issuance ofa,nysign permits for the proj ect. Any signs to be placed on the site, including a monument sign' buildin& signs for both the office and residential components and directional signs shall be included. A freeway sign may be allowed provided that it is not backlit and is a tasteful and appropriate sign for the site. The Planning Commission shall 􀁲􀁾􀁶􀁩􀁥􀁷 the freeway sign. . PROJECT PHASING. The project may be phased as shown on the Phasing Plan included in Exhibit B. Phase I includes one office building, the 􀁲􀁥􀁾􀁩􀁤􀁥􀁮􀁴􀁩􀁡􀁬buildin gs 􀁾􀁤 associated garages. Ifthe applica.nt/developer elects to build the project in plJ,ases, then the site(s) for future phase(s) shall include provisions for landscaping and other attraCtive low maintenance improvements, and sl;lcurity and maintenance ()fthe land to be developed 􀁵􀁬􀀱􀀦􀁾􀁲 future phases. Significant changes to the Phasing Planmay be approved through an Architecture.& Site application. ARCIDTECTURALDET.A1LS. The applicant sha:Ucontinue to work with Planning staffand the Consulting Architect to refine the plans through the Architecture & Site review process. Building elevations shall be refined as recommended in the Consulting Architect's report dated March 29, 2004. The applicant shall submit a final set of plans that includes all changes reflected in the conditions of approval. Building Division 19. **GEOLOGIC MITIGATION MEASURE 4.3-1: Prior to issuance of any building permits, project plans shall demonstrate compliance with 1997 Uniform Building Code requirements for structural and seismic loads and recommendations made byLowneyAssociates, as required bythe Building Division. 20. **GEOLOGIC MITIGATION MEASURE 4.3-2: The undocumented fill on the site shall be completelyremoved andreplaced with engineered fill in order to minimize differential settlement Page 4 of 16 ! . and possible damage to the buildings. In addition, sheet piles that were left in place shall be cut and removed during excavation activities. 21. **AIR QUALITY MITIGATION MEASURE 4.6-1. Construction activities shall comply with the "Basic Control Measures" and applicable "Optional Control Measures" for dust emissions as .outlined in the Bay Area Air Quality Management District CEQA Guidelines. 22. PERMITS REQUIRED: A building permit shall be required for the construction of each new structure. Separate building permits are required for site retaining walls, swimming pools, etc; separate electrical, mechanical, and plumbing permits shall be required as necessary. 23. CONDITIONS OF APPROVAL. The Conditions ofApproval shall be stated in full on the cover sheet ofthe construction plan submitted for building permit. 24. PLANS. The construction plans for this project shall be prepared under direct supervision of a licensed architect or engineer (Business and Professionals Code Section 5538). 25. SOILS REPORT. REPORT. Two copies of a soils report, prepared to the satisfaction of the Building Official, containing foundation and retaining wall design recommendations, shall be submitted . with the building permit application. This report shall be prepared by a licensed civil engineer specializing in soils mechanics. ALTERNATE: Design the foundation for an allowable soils 1,000 psf design pressure (Uniform Building Code Volume 2 -Section 1805). 26. FOUNDATION INSPECTIONS. A pad certificate prepared by a licensed civil engineer or land surveyor shall be submitted to the project building inspector upon foundation inspection. This certificate shall certify compliance with the recommendations as specified in the soils report and the building pad elevation and on-site retaining wall locations and elevations· are prepared according to approved plans. Horizontal and vertical controls shall be set and certified bx. a licensed surveyor or registered civil engineer for the following items: a. Pad elevation b. Finish floor elevation c. Foundation corner locations 27. TITLE 24 ENERGY COMPLIANCE. California Title 24 Energy Compliance forms CR-IR and MF-IR shall be printed on the construction plans. 28. TITLE 24 ACCESSIBILITY -COMMERCIAL-I. On-site parking facilities shall complywith the latest California Title 24 Accessibility Standards. Accessibility parking shall be provided for in both covered and uncovered parking areas. 29. TITLE 24 ACCESSIBILITY -COMMERCIAL-2. On-site gener:al path of travel shall comply with the latest California Title 24 Accessibility Standards. Work shall include, but .shall not be limited to, accessibility to building entrances from parking facilities and sidewalks. 30. TITLE 24 ACCESSIBILITY -COMMERCIAL-3. The buildings shall comply with the latest California Title 24 Accessibility Standards. Necessary work shall be first investigated by the design architect then confirmed by Town staff. 31. SPECIAL INSPECTIONS. When a special inspection is required by UBC Section 1701, the architect or engineer ofrecord shall prepare an inspection program that shall be submitted to the Building Official for approval prior to issuance ofany building permits, in accordance with UBC Section 106.3.5. Please obtain Town Special Inspection form from the Building Division Service Counter. The Town Special Inspection schedule shall be printed on the construction plans. . 32. NON-POINT SOURCE POLLUTION STANDARDS. The Town standard Santa Clara Valley Non-point Source Pollution Control Program specification sheet shall be part ofplan submitta1. The specification sheet is available at the Building Division service counter. 33. GARAGE EGRESS. The underground parking garage for Phase I of the project (office Page 5 of 16 component) shall have a secondary means ofpedestrian egress to the satisfaction ofthe Building Official. Two means ofegress shall be maintained until the completion ofthe phase two garage. 34. ADDrrIONALAGENCYAPPROVALS REQUIR.ED. Theproject requires the following agency approvals before issuance ofa building permit: a. West Valley Sanitation District 378-2407 b. Santa Clara County Fire Department: 378-4010 c. Campbell Union High School District: 371-0960 (residential only) Note: Obtain the school district forms from· the Town Building Department, after the Building Department has approved the building plans. 􀁔􀁏􀁔􀁈􀁾 SATISFACTION OF THE DIRECTOR OF PARKS AND PUBLIC WORKS: Engineering Division 35. **HYDROLOGY AND WATER QUALITY MITIGATION MEASURE 4.4-3. Note: thepermitprocess andstorm water management requirements have been updatedsince the EIR Was prepared. AStonn WaterPolluiionPrevention Plan(SWPPP)shall be preparedprior to start ofconstruction. The SWPPP and project plans shallbe reviewedbythe TownEngineering staff, and anyapplicable measures contained in the amendedprovisions C.3 and C.14 ofOrder 01-024 shall be in,?orporated. The SWPPP shall be in conformance with the Santa Clara COlJntyNPDES Permit as amended by the San Francisco BayRegional Water Quality Control Board (RWQCB)on October 17, 2001. The SWPPP shall be approved concurrentlywith the grading, drainage and erosion control plans 36. **TRANSPORTATION & TRAFFIC RECOMMENDATIONS: a. The Winchester Boulevard driveway shall be striped as an exclusive left-turn lane plus a shared through/right-turn lane. The northbound left-turn pocket at this intersection shall be lengthened to provide adequate storage as part of the intersection modification in coordination with the Town ofLos Gatos and Caltrans. b. Pedestrian and bicycle facilities shalLbe provided at the Winchester Blvd. driveway and alongA Street to Knowles Drive. Safe railroad crossing points shall also be provided at the Winchester drivewayacceSs. Sidewalks to accommodate bothpedestrians andbicycles shall be provided between the Winchester Boulevard/northbound SR 85 on-ramp/site driveway intersection and the project site. In addition, any street improvements along the Winchester Boulevard site frontage shall include or accommodate planned bike lane improvements as specified in General Plari Policy T.I.5.10. Feasibility of all off-site measures will need to be determined by the Town and other agencies since the applicant ,does not own the property where these improvements are recomInended· to be located. c. The VTA and Town shall determine feasibility of the applicant providing the re20mmendedbusstop onWinchester Boulevard, but maintenance responsibilities will be either the VTA's orTown's. d. Since fiber optiC cable facilities are located within the Union Pacific Railroad Company right-of-way, the applicant shall contact Union Pacific before project construction to determine whether such facilities could be affected by the project. e.· The proposed four-foot wide pedestrian path along· the southern southern project boundary (connecting the creek trail and the future light rail station) shall be widened to provide a multi-use trail connection between the creek trail and Winchester Boulevard/the future Page 6 of 16 light rail station. This trail shall be available to pedestrians and bicyclists. 37. **TRANSPORTATION & TRAFFIC RECOMMENDATIONS: The following provisions or improvements 􀁾􀁨􀁡􀁬􀁬 be made: a. Loading areas shall be designed to ensure the intended trucks can be accommodated. b. Well-lighted pedestrian and bicycle paths between buildings, transit locations, and bicycle parking should be provided. c. Bicycle racks should be provided for short-term visitor parking and bicycle lockers should be provided for project employees in accordance with VTA Guidelines. 38. NOTICE OF INTENT. A Notice of Intent (NOl) shall be filed with the San Francisco Bay RWQCB. A copy ofthe NOI shall be provided to the Town Engineering Division. 39. PUBLIC IMPROVEMENT SECURITY. The applicant shall supply suitable securities for all public improvements that area part of the development in a form acceptable to the Town in the amount of 100% (performance) and 100% (labor and material) prior to issuance of any permit. Applicant shall provide two (2) copies ofdocuments verifying the cost ofthe public improvements to the satisfaction ofthe Engineering Division of the Parks and Public Works Department. 40. DEVELOPMENT AGREEMENT. The applicant shall enter an agreement to construct public improvements in accordance with Town Code §24.40.020. 41. GRADING PERMIT. Permits are required for site grading and drainage. The grading permit application (with grading plans) shall be made to the Engineering Division ofthe Parks & Public Works Department located at 41 Miles Avenue. The grading plans shall include final grading, drainage, retaining wall location, driveway, utilities, structural drawings for retaining walls, a.nd interim erosion control. Grading plans shall list earthwork quantities and a table of existinga.nd proposed impervious areas. A rough grading permit may be issued prior to architecture and site approval and building permits. Unless specifically allowed by the Director ofParks and Public Works, the fine grading permit will be issued concurrently with the building permit. The grading permit is for work outside the building footprint(s). A separate building permit, issued by the Building Division on E. Main Street is needed for grading within the building footprint. 42. SCVWD APPROVAL. The following Santa Clara Valley Water District approvals shall be obtained prior to issuance of grading or encroachment permits: a. Any grading or excavation proposed within 20 feet ofits high pressure water line. b. Any work within 50-feet ofthe top ofthe Los Gatos Creek bank or within the vicinity of SCVWDwater transmission facilities will also require a District permit. Evidence ofsuch permits shall be provided to the Engineering Division of Parks and Public Works. The Town will not withhold permits if the applicant can show proof that SCVWD has not responded to a request for comments within 30 days of submittal. 43. RETAINING WALLS. A building permit, issued by the Building Division, is required for all site retaining walls.. In addition, site retaining wall plans shall also be submitted to the Engineering Division of Parks and Public Works as part of the' grading permit submittal. Engineering will review the plans for construction clearances to property lines. 44. SOILS REPORT. One copy ofthe soils report shall be submitted with the grading permit or public improvement application, whichever is submitted first. The soils report shall include specific criteria and standards governing site grading, drainage, pavement design, retaining wall design and erosion controL The reports shall be signed and "wet stamped" by the engineer or geologist, in conformance with Section 6735 of the California Business and Professions Code. 45. SOILS REVIEW. Prior to issuance of any permit, the applicant's soils engineer shall review the Page 7 of 16 46. 47. 48. 49. 50. 51. 52. final grading and drainage plans to ensure that designs for foundations,retaining walls, site grading, and site drainage are in accordance with theirrecohnnendati6ns and the peer review comments. The applicant's soils engineer's approval shall then be conveyed to the Town either by letter or by signing the plan.s. . ... . SOILS ENGINEER CONSTRUCTION OBSERVATION. During construction, all excavations and grading shall be inspected by the applicant's soils engineer prior to placement of concrete and/or backfill so they can verify that the actual 􀁣􀁯􀁮􀁤􀁩􀁴􀁩􀁯􀁮􀁳􀁾􀁡􀁲􀁥as anticipated in the design-level geotechrricalreport, andrecommend appropriate changes in the recommendations contained in the report, ifnecessary. The results ofthe construction observation and testing should be documented in an "as-built" letter/report prepared by the applicants soils engineer and submitted to the Town before final release of any occupancy permit is granted.\ PUBLIC WORKS INSPECTOR. The applicant shall fund a full time public works inspector-as required dUring the earthwork and public improvement operations. The applicant Will be charged on a time and materials basis. A deposit for the full atn.ount, to be estimated by the Town based on the Contractor's approved. schedule, shall be paid prior to issuance of the grading and encroachment permits: . PARCELMAP. A parcel map shall be recorded. Two copies oftheparce.l map shall be submitted to the Engineering Division of the Parks & Public Works Department for review and approval. Subtnittal.shall include clo'sure calculations, title reports and appropriate fee. The map shall be recorded before any building permits (excluding·foundation permits) are issued. DEDICATIONS. Emergency Vehicle Access Easements (EVAE's) shall be dedicated on the parcel map. EVAE's shall encompass all on-site roadways. TRUCK ACCESS. Site design presented at Architectural and Site review shall accommodate a WE-50 truck PUBLIC Th1PROVEMENTS. The following improvements shall be installed by the developer. Plans for those improvements shallbepreparedby aCalifomia'registered civil engineer, reviewed and approved bythe Town, and guaranteed by contract, Faithful Pefformance Security and Labor & Materials Security before the issuance of a building pennit or the recordation of a map. The improvements must be completed and acceptedbythe ToWnbefore a Certificate ofOccupancy for any new building can be issued. Public improvements shall include the folloWing: a. Winchester Boulevard/Highway 85 Intersection: Modify the intersection and the signalof the main drivewaywiih Winchester Boulevard. The Towri and Cal Trans shall approve the preliminary intersection and signal plans prior to start of filial design by the applicant. Iritersection plans shall include improveinents'to the rail road crossing. b. Winchester Boulevard: Entrance drive, railroad crossing, two street lights, tie-in paving, signing, striping, access ramps, right tum pocket, bike lane, median modifications, as required. c. AStreet: Sidewalk between project and Knowles shall be provided. The developer shall make a good faith attempt, to the satisfaction of the Public Works Director, to obtain sidewalk rights froni the adjacent property owner. Iri the event that such an effort fails, the developer shall work with the Town to provide the walk within the existing right of way. Details of provisions to be provided shall be addressed prior to issuance of an encroachment pennit. ARBORIST REVIEW. The Town Consulting Arborist shall review and approve both the grading and public improvement plan sets prior to issuance of a grading or encroachment permit. Page 8 of 16 53. WINCHESTERSIDEWALK. The applicant shall contribute to the construction ofsidewalk along Winchester Boulevard when and ifVTA elects to improve its right-of-way from Knowles Drive to the 􀁰􀁲􀁯􀁪􀁥􀁣􀁴􀁾􀁡􀁩􀁮 driveway and does not propose a sidewalk as part ofthe improvements. The applicant's contribution shall be proportional to their VTA frontage. Installation ofthe sidewalk shall be contingent upon receipt of approvals from all applicable agencies. 54. TRAIL CONNECTION. The trail connection between the Los Gatos Creek Trail and Winchester Boulevard shall be constructed by.the developer. The trail shall be maintained by the developer if the connection is provided through private property. The Town shall maintain the trail if the facilities are constructed within either Santa Clara Valley Water District (SCVWD) property or within land dedicated to the Town in a form approved by the Director ofParks and Public Works. Should the trail be constructed within SCVWD property, the developer shall update the existing Joint Use Agreement between the Town and SCVWD prior to map recordation. 55, RAILROAD CROSSING MAINTENANCE. The portion ofthe Winchester driveway within the VTA right ofway shall be maintained by the developer and VTA. The Town will not maintain new facilities within the VTA right ofway. 56. INSURANCE. One million dollars ($1,000,000) ofliabilityinsurance holding the Town harmless shall be provided in a format acceptable to the Town Attorney before recordation ofthe parcel map. 57. TRAFFIC Th1PACT MITIGATION FEE (COMMERCIAL) The developer shall pay a fee proportional to the project's share of transportation improvement needed to serve cumulative development within the Town ofLos Gatos. The fee amount will be based upon the Town Council resolution in effect at the time the building permit applications is made. The fee shall be paid before the building permit is issued. The traffic impact mitigation fee for this project, using the current fee schedule and the preliminaryplans is $1,070,466. The final fee shall be calculated from the final plans using the rate schedule in effect at the time ofthe building permit application, and . shall be based on the net increase in trip generation as determined by the traffic analysis prepared by Fehr and Peers. 58. ECO PASS. Eco Pass stickers shall be provided for all full-time employees within the development upon request. ProofofEco Pass purchases shall be provided to the Town annually 59. PLAN CHECK FEES. Plan check fees shall be deposited with the Town prior to submittal of plans to the Engineering Division ofthe Parks and Public Works Department. 60. INSPECTION FEES. Inspection fees shall be deposited with the Town prior to issuance of any Permit or recordation ofthe Final Map. 61. GENERAL. All public improvements shall be made according to the latest adopted Town Standard Drawings and the Town Standard Specifications. All work shall conform to the applicable Town ordinances. The adjacent public right-of-way shall be kept clear ofalljob related dirt and debris at the end of the day. Dirt and debris shall not be washed into storm drainage facilities. The storing ofgoods and materials on the· sidewalk and!or the street will not be allowed unless a special permit is issued. The developer's representative in charge shall be at the job site during all working hours. Failure to maintain the public right-of-way according to this condition may result in the Town performing the required maintenance at the developer's expense. 62. ENCROACHMENT PERMIT. All work in the public right-of-way will require a Construction Encroachment Permit. All work over $5,000 will require construction security. 63. PUBLIC WORKS INSPECTIONS. The developer or his representative shall notify the Engineering Inspector at least twenty-four (24) hours before starting anyworkpertaining to on-site Page 9 of 16 drainage facilities, grading or paving, and all work in the Town's right-of-way. Failure to do so will result in rejection ofwork thatwent on without inspection. 64. DpST CONTROL. Blowing dust shall be reduced by timing construction activities so that paving and building construction begin as soon as possible after completion of grading, and by landscaping disturbed soils as soon as possible. FUIiher, water trucks shall be present and in use at the construction site. All portions ofthe site subject to blowing dust shall be watered as often as deemed necessary by the Town, or a mirrimllm of three times daily in order to insure proper control of bloWing dust for the duration of the project. Watering on public streets shall not occur. Streets will be cleaned by street sweepers or by hand as often as deemed necessary by the Town Engineer, or at least once a day. Watering associated with on-site construction activity shall take place between the hours of 8 􀁡􀁾􀁭􀀮 and 5 p.m. and shall include at least one late-afternoon watering to minimize the effe.cts .of blowing dust. All publiq streets soiled or littered due to this construction activitY shall be cleaned and swept on a daily basis during the workWeek to the satisfaction of the Town. Derholition or earthwork activities shall be halted when wind speeds (instantaneous gusts) exceed 25 MPH. All trucks hauling soil, sand, or other loose debris shall be covered. 65. SURVEYING CONTROLS. Horizontal and vertical controls shall be set and certified by a licensed surveyor or registered civil engineer qualified to practice land surveying, for the following items: a. Retaining wall--top ofwall elevations and locations b. Toe and top of cut and fill slopes 66. PRECONSTRUCTION PAVEMENT SURVEY. Prior to issuance of a Grading Permit, the project Applicant shall 􀁃􀁾􀁬􀁬􀁬􀁰􀁬􀁥􀁴􀁥 a pavement condition survey documenting th.e extent ofexisting pavement defects using a 35-mm or digital video camera. The survey shall extend the full length of the truck 􀁨􀁾􀁬􀁕􀁬 route within the Town limits. The results shall be documented in a report and submitted to the Town for review. . 67. POSTCONSTRUCTION PAVEMENT SURVEY. The, project Applicant will complete a pavement condition survey to determine whether road dal11age occurred as a result of project construction and whether there were changes in pavement strength. Rehabilitation improvements required to restore the pavement to pre-construction condition and strength shall be proposed by the applicant. The results shall be documented in a report and submitted to the Town for review and approval. The Applicant shall be responsible for completing any required road repairs prior to release ofthe occupancy permit. 68. EROSION CONTROL. Interim and final erosion control plans snaIl be prepared and submitted to the Engineering Division ofthe Parks & Public Works Department. A maximum oftwo weeks is allowed between clearing of an area and stabilizi:nglbuilding on an area if grading is allowed duriIlg the rainy season. interim erosion control measures, to be carried out during construction and before installation ofthe final landscaping shall be included. Interim erosion control method shall include, but are not limited to: silt fences, fiber rolls (withlocatibns and details), erosion control blankets, Town standard seeding specification, filter berms, check dams, retention basins, etc. Provide erosion control measuresas needed to protect downstream water quality during winter months. The grading, 􀁤􀁲􀁡􀁩􀁮􀁡􀁧􀁥􀁾 erosion control plans and SWPPP shall be incompliance with applicable measures contained in the amended provisions C.3 and C.14 of Order 01-024 of the amended Santa Clara County NPDES Permit. 69. SITE DRAINAGE. Stormwater detention facilities shall be provided to insure that post project Page 10 of 16 runoff is less than or equal to pre-development rates. 70. STORM DRAINAGE OUTFALL. The drainage outfall shall be televised prior to the architecture and site submittal to verify that the existing facilities are in an acceptable physical condition. The videotape shall be submitted to·the Town Engineer for review and approval. In the event that the facility is unacceptable, the architecture and site plans shall reflect the proposed improvements needed to rehabilitate the outfall condition. 71. NONPOINT SOURCE POLLUTION PREVENTION. On-site drainage systems shall include a . filtration devices such as bio-swales and mechanical filters (i.e. Storm Septor) placed upstream of the site discharge point. 72. SILT AND MUD IN PUBLIC RIGHT-OF-WAY. It is the responsibility ofcontractor and home owner to make sure that all dirt tracked into the public right-of-way is cleaned up on a daily basis. Mud, silt, concrete and other construction debris SHALL NOT be washed into the Town's storm drains. 73. UTILITIES. The developer developer shall install all utility services, including telephone, electric power and all other communications lines underground, as required by ToWn Code §27.50.015(b). All new utility services shall be placed underground. 74. RESTORATION OF PUBLIC IMPROVEMENTS. The developer shall repair or replace all existing improvements not designated for removal that are damaged or removed because of . developer's operations. Improvements such as, but not limited to: curbs, gutters, sidewalks, driveways, signs, pavements, raised pavement markers, thermoplastic pavement· markings, etc. shallbe repaired and replaced to a condition equal to or better than the original condition. Existing improvement to be repaired or replaced shall be at the direction ofthe Engineering Construction Inspector, and shall complywith all Title 24 Disabled Access provisions. Developer shall request a walk-through with the Engineering Construction Inspector before the start of construction to verify existing conditions. 75. CURB AND GUTTER. The developer shall repair and replace to existing Town standards any curb and gutter damaged now or during construction ofthis project. New curb and gutter shall be constructed per Town Standard Details. The limits of curb and gutter repair will be determined by the Engineering Construction Inspector during construction of the project. 76. DESIGN CHANGES. The Applicant's registered Engineer shall notify the Town Engineer, in writing, at least 72 hours in advance of all differences between the proposed work and the design indicated on the plans. Anyproposed changes shall be subject to the approval ofthe Town before altered work is started. Any approved changes shall be incorporated into the final "as-built" drawings. 77. AS-BUlLT PLANS. After completion ofthe construction ofall work, the original plans shall have all changes (change orders and field changes) clearly marked. The "as-built" plans shall again be signed and "wet-stamped" by the civil engineer who prepared the plans, attesting to the changes. The original "as-built" plans shall be review and approved the Engineering Inspector. A Mylar and AutoCAD disk ofthe approved "as-built" plans shall be provided to the Town before the Faithful Performance Security or Occupancy Permit is released. The AutoCAD file shall include only the following information and shall conform to the layer naming convention: a) Building Outline, Layer: BLDG-OUTLINE; b) Driveway, Layer: DRIVEWAY; c) Retaining Wall, Layer: RETAINING WALL; d) Swimming Pool, Layer: SWIMMING-POOL; e) Tennis Court, Layer: TENNIS-COURT; f) Property Line, Layer: PROPERTY-LINE; g) Contours, Layer: NEWCONTOUR. All as-built digital files must be on the same coordinate basis as the Town's survey control network and shall be submitted in AutoCAD version 2000 or higher. Page 11 of 16 78. SANITARY SEWERLATERAL. Sanitary sewerlaterals are televised byWest Valley Sanitation District and approved by the Town ofLo's Gatos before they are used or reused. Install a sanitary sewer lateral clean-out at the propertyline. 79. GREASE TRAPS. Meet all requirement ofthe Santa Clara County Health Department and West Valley SanitationDlstrict for the interception, separation or pretreatment of effluent. 80. CONSTRUCTIONNOISE. Between the hours of7:00 a.m. to 8:00 p.m., weekdays and 9:00 a.m. to 7:00 p.m. weekends and holidays, construction, alteration or repair activities shall be allowed. TheBUilding Official mayrestrict construction activities between 7:00 am and 8:00 amweekdays. No individual piece ofequipment shall produce a noise level exceeding eighty-five (85) dBA at twenty-five (25) feet. Ifthe device is located within a structure on the property, the measurement shall be made at distances as close to twenty-five (25) feet from the device as possible. The noise level at any point outside of the property plane shall not 'exceed eighty-five (85) dBA. The Building Official andTownEngineermayallow modified construction hours for special activities. 81. SITE SECURITY. Prior to commencement of any site work or the introduction of any earth moving equipment or building materials onto the site, the applicant shall insure that a temporary fence constructed of materials and located to the satisfaction of the Director of Community Development has been constructed. This fence shall be in place as approved until the Director of Community Development shall allow it to be removed or changed. The fence may only be expanded or contracted in size upori approval ofthe Director ofCommunityDevelopment. Failure to adhere to this condition of approval shall result in the permit being brought to the Planning Commission for its review and introduction ofstricter site and building construction regulations. 82. PRECONSTRUCTIONMEETING. Prior to issuance ofanypermit Qr the commencement ofany site work, the general contractor shall: a. Along with the project applicant, attend a pre-construction meeting with the Town Engineer to discuss the project conditions of approval, workingliours, site maintenance and other construction matters; b. Acknowledge in writing that they have read and understand the project conditions of apprpval, and will make certain that all project sub-contractors have read and understand them prior to commencing worl,<: and that a copy ofthe project conditions ofapproval will be posted on site at all times during construCtion 83. EARTHMOVEMENTPLAN. Prior to issuance ofa Grading Pennit, the applicant shall develop an earth movement and management program under the supervision ofa licensed soils engineer for review and approval by the Engineering Division of the Department of Parks and Public Works. 84. CONSTRUCTION MANAGEMENT PLAN. The Applicant shall submit a construction management plan that shall incorporate at a minimum the Earth Movement Plan, Traffic Control Plan, Project Schedule, 'site security fencing, employee parking, construction staging area, constniction trailer, and proposed outhouse locations. The Traffic Control Plan shall require that construction traffic use the main driveway at Winchester/SR85 on ramp. Construction traffic shall not be allowed on A Street without the express approval ofthe Town Engineer. 85. GOODHOUSEKEEPING. "Good housekeeping practices shall be observed at all times during the course ofconstruction. Superintendence ofconstruction shall be diligently performedby a person or persons authonzed'to do so at all times during working hours. The storing of goods and/or materials on the sidewalk and/or the street will not be allowed unless a special permit is issued by the Engineering Division. 86. SITE SUPERV:ISION. The General Contractor shall provide qualified supervision on the job site Page 12 of 16 at all times during construction. 87. CONSTRUCTIONTRAFFIC CONTROL. The Applicant shall prepare a traffic control plan for incorporation into the construction bid documents. The plan shall be submitted with the grading permit application and is subject to the review 􀁾􀁤 approval of the Town Engineer. Parks Division 88. GENERAL. All existing and newlyplanted trees, except those identified forremoval, are specific subjects of approval ofthis project and shall remain on the site. 89. TREE REPLACEMENT. Replacement trees of a size and number adequate to mitigate the loss ofexisting mature trees shall be planted on theyroject site. The new trees shall be 􀁩􀁮􀁣􀀱􀁵􀁤􀁾􀁤on the comprehensive landscape plan to be reviewed as part ofthe Architecture & Site approval process. 90. NEWTREES. Newlyplanted andrelocated trees shall be double-staked, using rubber tree ties and shall be planted prior to acceptance of the subdivision or architecture and site approval as determined by the Parks & Forestry Superintendent. 91. IRRIGATION. All newlyplanted landscaping shall be irrigatedbyan in-ground irrigation system. Special care shallbe taken to avoid irrigation which will endanger existing native trees and shrubs. 92. WATER EFFICIENCY. This project is subject to' the Town's Water Efficient Landscape Ordinance, Chapter 26, Article N of the Town C9de. A fee of $472 shall be paid when the landscape, irrigation plans and water calculations are submitted for review. 93. TREE PROTECTION FENCING. Tree protection fencing shall be placed at the drip lines of existing trees to be retained in the areas ofconstruction. Fencing shall be four foot high chain link attached to steel poles driven two feet into the ground when at the dripline ofa tree. Ifthe fencmg is within eight feet of the trunk of a tree, a fence base may be used, as is typical in a chain link fence is rented. TO THE SATISFACTION OF THE SANTA CLARA COUNTY FIRE DEPARTMENT: . 94. HOSE VALVES/STANDPIPES. Buildings that are three or more stories in height or where emergencyaccess emergencyaccess has been deemed minimal shallbe equipped with standpipes designed perNFPA Standard #14, and shall be equipped with 􀀲􀁾􀂷􀁩􀁮􀁣􀁨 hose valves. The locations of the 􀀲􀁾 hose valves may be determined prior to development of the fire sprinkler plan. The existing Fire Department connection shall be replaced with a device similar or equal to Potter Roemer Model 5776, four way, individually c1appered connection. Domestic water shall not be fed from the fire service line.. 95. REQUIRED FIRE FLOW. Required fire flow is 5,750 GPM at 20 psi. residual pressure. The applicant shall present a plan for fire flow and travel distance mitigation for Fire Department approval prior to issuance ofbuilding permits. . 96. AUTOMATIC FIRE SPRINKLER SYSTEM. Buildings requiring a fire flow in excess of2,000 GPM shall be equipped with an approved automatic fire sprinkler system, hydraulically designed per National Fire Protection Association (NFPA) Standards #13. 97. FINAL REQUIRED FIRE FLOW. Required fire flow maybe maybe reduced up to 50% in buildings equipped with automatic fire sprinkler systems, but can be no less that 1500 GPM. Therefore, the final required fire flow of2,875 GPM at 20 psi residual pressure shall be available from any two hydrants on or near the site, provided that they have a maximum spacing of250 feet. 98. PRNATE FIRE HYDRANTS. Provide fire hydrants at locations to be determined by the Fire Page 13 of 16 Department. Maximum hydrant spacing shall be 250 feet with a miriimUm single flow of 1,500 gallons per minute at 20 psi. residual pressure. Prior to design, the project Civil engineer shall meet with the Fire Department water supply officer to jOintly spot the required fire hydrant location. 99. FIRE HYDRANT LOCATION IDENTIFIER. Prior to [mal inspection, a "blue" dot shall be placed in the roadway near each fire hydrant, as directed by the Fire Department. 100. FIRE LANE MARKlJ'rG REQUIRED. Provide marking for all roadways within the project. . Markings shall be per fire department specifications. Installatiol1 shall ·also conform to Ucal Government Standards and Fire Department Standaid Details & Specifications A-6. 101. FIRE DEPARTMENT KEY BOX. The buildings shall be equipped with a permanently installed emergency access key lock box (knox) conforming to Fire Department Standard detail and Specification sheetK-1. Access keys shall be provided to the Fire Department 􀁡􀁾 the time offinal inspection. 102. FIRE APPARATUS (ENGINE) ACCESS ROADS REQUIRED. Provide access roadways with a paved all weather surface. and a minimum width of 20 􀁦􀁥􀁥􀁴􀁾 vertical clearance of 13. feet six inches, minimum circulating turning radius complying with Truck #5 specifications. Installations shall conform with Fire Department Standirrd Details and Specifications A-I. 103. EMERGENCY VEIDCLE TURNAROUND. Provide an approved Fire Department engine rmidway turnaround as may be required, with a minimum radius complying with Truck #5 specifications. Installations shall conform with the Fire Department Standard Details and Specification sheet A-I. .... 104. TIMlNG OF REQUIRED INSTALLATIONS. The requited fire serVices, fire hydrants and access road installations, up through the first lift ofasphalt, shall be in place, inspected, and accepted by the Fire Department prior to the start of franling. Bulk construction materials shall not be delivered to the site until the hydrants and roadway have been accepted. Clearance for building permits will not.be given until such time as this requirement is addressed by the developer, to the 􀁳􀁾􀁴􀁩􀁳􀁦􀁡􀁣􀁴􀁩􀁯􀁮 of the Fire Department. During construction, emergency access roads shall be maintained clear and unimpeded. 105. PREMISE IDENTIFICATION. Approved addresses shall be placed on all new buildings so they 'are clearly visible and legible from the streets or toads fronting the property. Numbers shall be a minimum offour inches high and shallcontrast withtheir background, and shall be illuminated for nighttime viewing. 106. INTERIOR COURTYARDS. The applicant shall provide a plan showing complying Fire Department access to interior courtyards. 107. FIRE ACCESS. The applicant shall provide a plan showing alternate compliance to providing fire access to buildings that exceed the 150' travel distance through an alternate method and material application. TO THE SATISFACTION OF THE POLICE CHIEF: 108. SECURITY REVIEW. The applicant shall meet with the Police Department to review the .construction plans, plans, and shall make any recommended design improvements needed for security, crime prevention or safety. A security consultant will be hired at the applicant's expense to assist the Town in the security review. The consultant will work at the direction ofthe Town. 109. SECURITY GUARD. A thorough security plan component shall be established between the Page 14 of 16 developer and the Police Department. During the architecture and site review process the applicant shall work with the Police Department and Security Consultant to develop an overall securityplan to ensure appropriate security element1;i are incorporated into the project, and which may include but is not limited to, security cameras, lighting, landscaping, access control and on-site security personnel. 110. GARAGELIGHTING. Lighting at garage entrances shall fully light the entry area. Interior garage lighting shall be on 24-hours a day. 111. FENCING. There shall be a fence along the east property line adjacent to the Los Gatos Creek Trail. 112. PATHWAY LIGHTING. Path lights shall be provided along the trail from the Winchester Blvd. entrance to the creek trail. 113. CREEKTRAILLANDSCAPING. Landscaping along the creektrail shallbe selected and planted so that it does not provide a placewhere a person can be concealed. Low shrubs and!or non-dense trees are recommended in this area. 114. OFFICE PARKlNG. The applicant shall notify the Police Department ofany parking restrictions for the surface space around the office buildings. SECTION VI This Ordinancewas introduced at a·regular meeting ofthe TownCouncil ofthe TownofLos Gatos on April 23, 2004, and adopted by the following vote as an ordinance of the Town of Los Gatos at a \ . ..-,-meeting ofthe Town Couilcil ofthe Town ofLos Gatos on effect 30 days after it is adopted. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\ATYlSobrato.ORD.wpd Page 15 of 16 The map and development plans (identified as Exhibits A and B) are on file with the Town Clerk's office Page 16 of 16 RESOLUTION NO. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING AND AUTHORIZING THE TOWN MANAGER TO EXECUTE A SALES TAX AGREEMENT WITH NETFLIX, INC. WHEREAS: A. Netflix, Inc., desires to relocate its corporate headquarters to the Los Gatos Gateway Project being developed by Sobrato Development Companies at 14300-14350 Winchester Boulevard. B. Sobrato Development Companies, onbehalfofNetflix, Inc., requested approval to modify the approved PlannedDevelopment (PD) (Ordinance No. 2126) and obtain other necessary land use entitlements in order to increase the size oftheoffice/R&D component ofthe project by 40,000 and other related changes. C. Netflix, Inc. generates significant sales tax revenues resulting from transaction that occur . in the Town ofLas Gatos. D. Netflix, Inc., is willing to agree to tenus intended to help maintain the Town as the point of sale for purposes of California sales tax revenues. RESOLVED: 1. That an agreement with Netflix, Inc., attached hereto as Exhibit "A" and incorporated herein by this reference, is hereby approved. 2. That the Town Manager is authorized to execute the agreement attached as Exhibit "A." PASSED AND ADOPTED at a regular meeting ofthe Town Council ofthe Town ofLos1 A:.: 'T11I\CHMENT , " . ) Gatos, California held on the COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: day of SIGNED: , 2004, by the following vote: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\ATY\NetFIix-I.Res.wpd 2 The Honorahle Steve Glickman, Mayor Town 􀁯􀁦􀁌􀁏􀁾􀀢 G:ttos 110 East Main 3treet Los Gatos, CA 95032 Dear Mayor (il lckman and Town Council Members: On behalforN 􀁾􀁴􀁦􀁬􀁩􀁸􀀬 I want, once again, to express our appreciation for your consideration and cooperation in lelping to secure an additional 40,000 square feet of office entitlement at the Los Gatos Gateway Pr(!je:t ("Project"). Netflix understands that local retention of sales tax revenue is a major factor in the T< wn's determination whether to grant the entitlement that would ultimately satisfy Netfiix's desire to relclc;z te its coxporatc headquarters to the Project. In consideralio J of decisions by the Town to grant the land use entitlements necessary to secure an additional4( ,0)0 square feet, Neti1ix agrees as follows: 1. That it will not enter into any other agreement with any other government entity for land use entitlements or other consideration directly 􀁲􀁥􀁬􀁡􀁴􀁩􀁮􀁾 to the point of sale determination reaarding sales tax revenues ge:: ex ated by Netflix and currently payable to Los Gatos; and 2. Sholtl( Netflix detcnnirile, as it may in its sole and absolute discretion, to move the personnel comprising wb ;It Netflix refers 􀁾 as its E-commerce group (which cmrently operates in the Town and, accordJug to the Town, givjes rise to the point of sales transactions for California sales tax pUIposes) out ofLos Gat" )s, 􀁎􀁥􀁴􀁦􀁬􀁾 shall, no later than sixty (60) days prior to the effective date ofsuch move notify the Town Mlmiger ofthe Town ofthe intended move, and shan thereafter consider in good faith arty reasonableJ'ro )os31 to retain 􀁴􀁨􀁾􀀢􀁰􀁯􀁩􀁮􀁴 of sale in the Town, but in no event will Netflix b<: under any obligation tIl a :cept or otherwis¢ act upon such proposals. NetfU" 􀁡􀁧􀁲􀁥􀁦􀁾􀁳 :hat this Agreem1:nt shall become effective as ofthe date of this letter and shall continue in full force ar.d l"ffectuntit" June 􀁾􀀬 2010, unless (i) the Town fails to grant the land use entitlements requested b:1 l' etflix and Sobrato Development Companies in connection with the addi-tional40,OOO square feet ofllffice space to relocate its corporate headquarters to the Project, in which event this Agreement 􀀻􀁨􀁾 II terminate effective on the date that the decision by the Town"to deny a necessary application ":Iel-omes final, or 􀀨􀁩􀁾􀀩 Netflix fails to enter into a final lease between :N'etflix and Scbrato Developmellt I 􀁾􀁭􀁰􀁡􀁮􀁩􀁥􀁳 regar4ing the Project. in which event this Agreement shall terminate six (6) montbs fror.: tI Le date ofthis Agreement. Except as o·:'l.e 􀁾􀁳􀁥 agreed herein, nothing in this Agreement shall be deemed to impose any restriction on Netflix t: nloving its 􀁰􀁥􀁲􀁳􀁾􀁥􀁬 or otherwise adjusting its operations and that Netflix, in its sole and absolute disc:rl !ion, may 􀁵􀁮􀁤􀁥􀁲􀁴􀁾􀁥 such actions as it deems appropriate for its business pm:pose. Furthennom, t lC parties expressly agree that there shall be no equitable enforcement ofthis Agreement and that any Ii Lbility arising out of or in connection with this Agreement shall be limited to $250,000. 970 Univelsi.y AV€Il.ue Los Gapes, CA. 9ti032 Phone 408.399.3700 Fa-:K 1:08.399.8737 www.net!lix.comEXHIBIT A 1'11:. I r L-J.I'\ Thank you 􀁡􀁾􀁾 n foT your consideration and support. We look forward to working with you and to a long mutUally ben,;,f cial relationship. ' Sincerely, 􀁾 ---􀁾􀀮􀀮􀀭􀀭􀁾􀀿􀀺􀀺􀁳 ...􀁾􀀨􀁾 . General 􀁃􀁏􀁴􀁾􀁬􀁓 􀁾 -cc: Debl'll ;;'igone, Town Manager Bud I; Irtz, Community Development Oirector ACCEPTErl EYTHE TOWN OF LOS GATOS: DebraJ. 􀁆􀁩􀁡􀀻􀁭􀁾􀀬 Town Manager ATTEST: Clerk ot'the TIIWU of Los Gatos, LOB Gatos, t;:a: ifomia Marian Cos;; -ve, Town Clerk ... " Approved a!-tl) Form; 􀀮􀀢􀀮􀀮􀀭􀀭􀀭􀁟􀀮􀁟􀀭􀀭􀁾􀀭􀀭􀀭􀀭􀀭􀀭 Ony P. Kolb, Town Attorney