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06 Staff Report - Enforcement Flexibility During National, Regional, and Local Economic Adversity~pYl H 11~ yR, DATE: TO: FROM: COUNCIL AGENDA REPORT AUGUST 31, 2009 MEETING DATE: 9/8/2009 ITEM NO: MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER SUBJECT: INTRODUCTION OF AN ORDINANCE AMENDING SECTION 2.30.295(1) OF THE LOS GATOS TOWN CODE REGARDING THE GENERAL POWERS AND DUTIES OF THE TOWN MANAGER GRANTING ENFORCEMENT FLEXIBILTY DURING RECOGNIZED PERIODS OF NATIONAL, REGIONAL, AND LOCAL ECONOMIC ADVERSITY. RECOMMENDATION: 1. Accept public testimony on proposed ordinance. 2. Direct Clerk to read title of proposed ordinance. 3. Motion and vote to waive reading of text. 4. Motion to introduce ordinance. 5. Direct Clerk Administrator to publish notice. BACKGROUND: Section 29.30.295(1) regarding the general powers and duties of the Town Manager calls for the efficient administration of all of the affairs of the Town. As the administrative head, the Manager has the duty to see that the Town Code is duly enforced. Some of the codes enforced by the Town Manager relate to how businesses can operate, namely: 1) outdoor display of goods; 2) amplification of music; and 3) signage. Flexibility in enforcement of these Codes will enable staff to support the business community allowing marketing practices that would otherwise be prohibited. Therefore, staff is proposing an amendment to Section 29.30.295(1) to grant enforcement flexibility to the Town Manager in times of economic hardship. PREPARED BY: J SSICA VON BORCK Economic Vitality Manager JvB:pg N:WGR\AdcuinWorkFi1cs\2009 Council ReportsTconamic Stimulus Ordinance.doc Reviewed by: bAssistant Town Manager Town Attorney Finance Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: INTRODUCTION OF ORDINANCE AMENDING SECTION 2.3 0.295(l) AUGUST 31, 2009 DISCUSSION: The current economic recession has adversely impacted the Town's business community evidenced by an increase in the number of retail vacancies and drop in sales tax revenue. These impacts warrant the consideration of a greater level of support for the retail sector, particularly in the Downtown retail core and within Neighborhood Commercial centers. To ease the impacts of this economic downturn, the Town partnered with local businesses and the Chamber of Commerce to sponsor a pilot program known as 2"`d Saturdays. The program was designed to encourage residents to shop local as well as to entice regional shoppers to visit Los Gatos establishments. Overall, the program was effective in bringing customers to the Town and businesses reported an increase in sales and overall activity. One of the tools identified by the businesses and the Chamber as contributing to the success of the program was the Town's flexible approach to code enforcement regarding: 1) amplification of music; 2) outdoor displays; and 3) signage. The Town's flexible approach to code enforcement enabled the business community to use marketing methods they were unable to deploy in the past. These new marketing efforts were used to attract shoppers, and ultimately resulted in sales. To date, staff has not received any complaints or negative feedback in regard to the Town's approach. Rather than continue to use a flexible approach informally, staff is recommending that the Town codify the ability to adopt a flexible approach in times of economic hardship. The proposed ordinance will enable the Town Manager under his defined powers and duties to determine not to enforce certain provisions of the Town Code, namely: Outdoor Display (Section 29.50.020 and 29.50.025); Amplification of Music (Section 29.20.185(2)c); and Signage (Section 29.10.105, 29.10.115(1), 29.10.120(4), and 29.10.125). The use of amplified music, displayed goods on sidewalks and inparking lots, and the use of a variety of signage created a festive atmosphere for the 2n. Saturday events and could further be used to enhance other events that promote local businesses during times of economic hardship. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: There is no direct fiscal impact to the Town to amend the administrative functions of the Town Manager. It is expected that a flexible approach to selected code enforcement actions may have a positive impact on sales tax revenue received by the Town during times of economic challenges. Attachment: Ordinance amending Section 2.30.295 regarding power and duties of the Town Manager ORDINANCE ORDINANCE OF THE TOWN OF LOS GATOS AMENDING SECTION 2.30.295 OF THE LOS GATOS TOWN CODE REGARDING POWERS AND DUTIES OF THE TOWN MANAGER WHEREAS, the Town Manager's Powers and Duties found in Los Gatos Town Code section §2.30.295 require efficient administration of enforcement of any laws and ordinances of the Town; and WHEREAS, the Town Manager enforces provisions of the Town Code regarding outdoor display §29.50.020 and §29.50.025, outdoor entertainment, including amplification of music §29.20.185(2)c, and signage §29.10.105, §29.10.115(1), §29.10.120(4), §29.10.125, as they specifically relate to businesses; and WHEREAS, the current economic recession has adversely impacted the Town's business community evidenced by an increase in the number of retail vacancies and drop in sales tax revenue; and WHEREAS, flexibility of enforcement of business related provisions of the Town Code will enable staff to react to changing economic conditions and support the business community by allowing marketing practices that would otherwise be prohibited; and WHEREAS, amending Town Code §2.30.295 to support enforcement flexibility for the Town Manager of the prescribed ordinances would allow staff to efficiently respond to times of economic adversity and potentially lessen the impact on the business community. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS: SECTION 1. A. Town Code §2.30.295 is amended to read as follows: Powers and duties--Generally. (1) Law enforcement. To see that this Code and any other laws and ordinances of the Town are duly enforced, and that all franchises, permits and privileges granted by the Town are faithfully observed, and to report to the Town Council any violations thereof. For reasonably limited spans of time during recognized periods of local, regional, and/or national economic adversity negatively impacting business conditions in the Town, the Town Manager may exercise discretion regarding the enforcement of certain provisions of the Town Code specifically: outdoor display §§29.50.020, and Page I of 2 29.50.025, entertainment, including amplification of music §29.20.185(2)c, and signage §29.10.105, §29.10.115(1), §29.10.120(4), §29.10.125. SECTION II. In the event that any part of this ordinance is held to be invalid, the invalid part or parts shall be severed from the remaining portions which shall remain in full force and effect. SECTION III. This Ordinance takes effect 30 days after the date it is adopted. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on , 2009, and adopted by the following vote as and Ordinance of the Town of Los Gatos at a regular meeting of the Town Council on , 2009. 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 Page 2 of 2