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Attachment 1Town Council Ad Hoc Citizen Coamiltee Marico Sayoc, Yice Maj0r Stel,e Leonardis. Council Menber lae Fagor. Resident Mark Robircon. Resident Jak l/on Nada. Resident SPECIAL MEETING TOWN OF LOS GATOS TOWN COUNCIL AD HOC CITIZEN COMMITTEE AGENDA TOWN COUNCIL CHAMBERS IIO EAST MAIN STR.EET Februar,v 18, 2016 - l:00 P.M. MEETING CALLED TO ORDER ROLL CALL VERBAL COMMUNICATIONS (three minute time limit) L Approve the February 4, 2016 Ad Hoc Committe€ Draft Minutes 2. Discuss Information Contained in the Staff Report 3. Review of Ad Hoc Citizen Committee Timeline and Next Steps ADJOURNMENT Att:rchments: I . February 4, 2016 Ad Hoc Commi$ee Draft Minutes (ltem I )2. Staff R@rt (Itern 2) Post (also posted on Town Web) Town Council In compliance wilh the Americans with Disabilities Aa, if you need special assistance to panicipat€ in this meeting, please contact the Town Manager's Office at (408) 354-6834. Notification 48 hours before the meeting will enable the Town to make reasonable arrangements to ensur€ accessibility to this meeiing [28 CFR g35.102-35.104] ATTACTIl\,IIINT I DRAFT TOWN OF LOS GATOS AD HOC CITIZEN COMMITTEE February 4, 2015, 1:00 p.m. 110 E. Main Street Town Council Chambers Los Gatos, California MINUTES Call to Order The Ad Hoc Citizen Committee meeting was called to order at 1:00 p.m. Membe6 and Staff present: Vice Mayor Marico Sayoc Council Member Steve Leonardis Lee Fagot, Resident Mark Robinson, Resident .,ak Van Nada, Resident Laurel Prevetti, Town Manager Jennifer Callaway, Assistant Town Manager Stephen Conaway, Finance Director Christina Gilmore, Assistant to the Town Manager Shelley Neis, Clerk Administrator Gitta Ungvari, Administrative Analyst Verbal Communications None Atenda ltems 1. Welcome and lntroductlons The Committee and staff introduced themselves. 2, Selectlon of Chair and Vlce Chalr The Committee unanimously approved Lee Fagot as Chair and Mark Robinson as Vice Chair. February 4, 2016 Minutes Town Council Ad Hoc Citizen Committee MEETING DATE:O2/L8ll6 ITEM NO: I Page 1 MEETING DATEIo2/1Sh6 ITEM NO: l 3. Discuss the Commlttee Role, Scope, and Process The Committee reviewed and discussed the Committee Role, Scope, and process as outlined in Attachment 1, including: . Ad Hoc Citizen Committee scope of work . Transient Occupancy Tax (TOT) o Utility Use Tax (UUT) . Committee Timeline The Commi$ee requested staff return at the next meeting with additional background materials and information on the Town's finances to assist the Committee in its continued discussion of a potential ToT or UUT ballot measure: o FY 2015/16 Operating Budget o General Fund Expenditures and Revenues for the last 10 to 12 years . Capital lmprovement Program Budget o Unfunded CIP project list o Police Services Analysis . Matrix of other jurisdictions' TOT and UUT Revenues over time. Background information about the Town's prior consideration to place a UUT tax on a ballot . Report to the Finance Committee (January 2015) regarding unfunded pension liabilities for sworn and non-sworn employees o Data from the l-ea8ue of California Cities or other sources regarding tax measure success for local governments . Clarification regardang the Town's role in its own ballot measures The committee also requested that the staff begin to prepare information regarding the Town,s cost saving measures and other fiscally prudent activities to demonstrate that the Town has taken actions to demonstrate responsible fiscal management. The Committee expressed interest in making sound arguments for a potential revenue source for capital projects. 4, Future Scheduling and PotentlalTopics The Committee set the following meetinB dates in order to report on its progress to the Town Council in March: . February 18,2016 1:00 P.M. -2:30 P-M. Town Council Chambers February 4, 2016 Minutes Town Council Ad Hoc Citizen Committee Page 2 . February 22,2016 1:fi) P.M. -2:30 P.M. Town Council Chambers Adjourned at 2:18 p.m. February 4, 2016 Minutes Town Council Ad Hoc Citizen Committee MEETING OATE: O2lt8lt6 |TEM NO: 1 Page 3 MEETING DATE:02llE/16 ITEM NO:2 AD HOC CITIZEN COMMITTEE REPORT DATE: TO: FROM: SUBJECT: FEBRUARY 12,2016 AD HOC CITIZENS COMMITTEE t/ LAURE L PREVETTT, TOWN M ANAGERafi L,/.,'./2*'y,.:rl,ct' {11t47ft REVIEW AND DISCUSS BACKGROUND MATERIALS AND INFORMATION ON TOWN FINANCES, UTILITY USER TAX (UUT), AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT INITIATIVES RECOMMENDATION: Discuss the information contained in the staff report. BACKCROUND: At its February 4, 2016 meeting, the Ad Hoc Citizen Committee directed staffto retum with additional background materials and information on the Town's finances to assist the Committee in its continued discussion of a TOT or UUT ballot measure that included the following: . Fiscal Year (FY) 2015/16 Operating Budga . Capital Improvement Program Budget o Police Services Analysis o General Fund Expenditures and Revenues for the last l0to 12 yean o Unfunded CIP prqiect list o Matrix of other jurisdictions' TOT and UUT Revenues over time r Background information about the Town's prior consideration to place a UUT tax on a ballot . Report to the Finance Committee (Jaluary 2016) regarding unfunded pension liabilities for swom and non-swom ernployees . Data from the League ofCalifornia Cities or other sources regarding tax measure success for local governments o Clarification regarding the Town's role in its own ballot measures PREPARED BY:CHRISTINA GILMORE 5\] UTA Assistant to the Town Manager Reviewed by: _ Assistant Town Manager TownAttomey 4.-'{inance N:'MGR AdminworkF,l!'s\Council Commiuee - AD HOC ClTZEN,.Fcbru.ry I8.2016Jem 2 Ad Hoc Commitkc_Sraf Repon_02.18.16.doc 4) PAGE 2 AD HOC CITIZENS COMMITTEE SUBJECT: REVIEW AND DISCUSS BACKGROUND MATERIALS AND INFORMATION ON THE TOWN FINANCES, UTILITY USER TAX (UUT), AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT INITIATIVES FEBRUARY 12,2016 DISCUSSION: Information about the Tou.n's FY 201 5/l6 Op€rating Budget. Capital Improvemenl Program and analysis of Police Services can be found on the Town of Los Gatos website. Links to each document are provided below. FY 2015/16 Operating Budget http:1/www.losqatosca.gov/2 l,/Ooeratinq-Budset Capital lmprovonent Program htto ://www.losgatosca. sov/DocumentCenter/View/8270 Analysis of Police Services In-House and Contract Service Models http://www.losqatosca.qov/documentcenter/view/ I 5379 The analysis ofpolice services in-house and contract service models includes future pension and health benefits. Pension and health benefits are rolled into each Department's annual operating budget. Included in an employee's total compensation is the cost to the Town for benefits, including the current year's benefits and future promises for health and pension. Ifpolice services were to be contracted out those future costs would be eliminated. As indicated, this was accounted for in the analysis provided. Existing pension and health promises, those made to current and past employees, will remain the obligation ofthe Town, regardless ofthe police services model. The courts have ruled that these benefits are vested rights ofthe employees and obligations that ronain with the jurisdiction promising them. This is further explained in Attachment 9 report to the Finance Committee regarding unfunded pension liabilities for swom and non-sworn ernployees. Since these already promised benefits would rernain the obligation of the Town, these past promises were not included in the police services analysis. Add i t i o na I B ac kground M a I e ri a ls Detailed Ceneral Fund revenues and expenditures are provided from FY 2007/08 to FY 201 5/16. The Committee requested ten to twelve years ofhistorical data" however, the current financial system only has data since FY 2007/08. The Town upgraded its financial system in late 2007 and the old financial systern is not supported by the former vendor anymore- Additional background information about the Town's historical data on UUT and TOT ballot initiatives and other information as requested by the Committee are provided as Attachments I through I I to the staffreport. Clari/ication reganling the Town's role in its own ballot measures The Califomia Suprerne Court. in Vargas v. City of Salinas clarified some of the legal ambiguities goveming the use of public funds in connection with election campaigns. California Govemment Code PAGE 3 AD HOC CITIZENS COMMITTEE SUBJECT: REVIEW AND DISCUSS BACKGROUND MATERIALS AND INFORMATION ON THE TOWN FINANCES, UTILITY USER TAX (UUT), AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT INITIATIVES FEBRUARY 12,2016 section 54964(b) prohibits a local agency's expenditure offunds for "communications that expressly advocate the approval or rejection ofa clearly identified ballol measure." In Vargas, the State Supreme DISCUSSION (cont'd): Court reverted to the more fact-based. analyical approach of its earlier decisions on public agency electoral activities. This approach emphasizes considering such things as the "style. lenor and timing'' of communications to determine when public agency ballot measure materials and activities step over the line (known as the Stanson v. Mott standard). The Court tried to clarifo the standard by creating, in essenc€. three categories of activities: o Those that are usually impermissible campaign activities; . Those that are usually permissible informational activities; and o Those that may require further analysis under the "style, tenor and timing" test. Impermissible activities include bumper stickers, posters, advertising "floats," television and radio spots, and billboards. Another improper activity is using public resources to disserninate advocacy materials prepared by others. "Promotional campaign brochures" and similar materials are also not allowed. even when those documents contain some useful facrual information for the public. Permissible activities include: . Taking a position on a ballot measure in an open and public meeting where all perspectives may be shared; . Preparing staffreports and other analyses to help decision-makers determine the measure's impacl and what position to take; . Responding to inquiries about ballot measures in ways that provide a fair presentation ofthe facts about the measure and the agency's view of a ballot measure's merils; o Accepting invitations to present the a8ency's views to organizations interested in the ballot measure's effects; and . Sharing the agency's views on and analyses ofa measure's impacts and merits. The safest approach is to share information in a simple, measured, and informative way. The information should be delivered through regular agency communications channels (for example, the agency's existing website and newsletter) in a way that emphasizes facts and does not use inflammatory language or argumentative rhetoric. The communication should not encourage the public to adopt the agency's views. vote one way or another, or take any other actions supporting or opposing the measure. Consuhant Costs Based on information obtained from a presentation presented at a recent League of Califomia Cities (LCC) City Clerk seminar, consultant costs to place a ballot measure on the November 2016 ballot is PAGE 4 AD HOC CITIZENS COMMIT'TEE SUBJECT: REVIEW AND DISCUSS BACKGROUND MATERIALS AND INFORMATION ON THE TOWN FINANCES, UTILITY USER TAX (UUT), AND TRANSIENT OCCUPANCY TAX (TOT) BALLOT TNITTATTVES FEBRUARY 12,2016 estimated to be $40,000 (polling only) to $150,000 (polling, outreach, and other services) depending on the level of consultant involvement. CONCLUSION AND NEXT STEPS: Staffrecommends that the Committee review and discuss the information provided as attachments to the staff report. COORDINATION: The preparation of this report was coordinated with the Finance Director, the Town Attomey, the Clerk Department, and the Town Manager's Office. Attachments: l. General Fund Expenditure by Department (FY 2007/08- FY 2015/16) 2. General Fund Revenue by Type (FY 20071O8- FY 2015/16) 3. Plan Bay Area and VTP 2040 Draft Project List 4. Utility User Tax Facts 5. Utility User Tax Information 6. Transient Occupancy Tax (TOT) Information Exhibit A - Transient Occupancy Tax Town Code (Sec. 25.30.010-25.30.75) Exhibit B - Ordinance No. 9l I Exhibit C - Ordinance No. 946 Exhibit D - Ordinance No. 1289 Exhibit E - Ordinance No. 1362 Exhibit F - Ordinance No. l56l -A 7. Estimated cost for the November 2016 Election 8. Historical information for 1996 Measure C Ballot Initiative 9. Staffreport from December 22, 2016 Finance Committee Meeting 10. League of Califomia Cities Working on a Ballot Measure Campaign: Some Rules for City of Officials I l. Brown Act and Fair Political Reform Act Presentation The following Sraph represents the Seneral fund historical expenditures since F\ 2OO7lO8. please note that the Town current financial system only has data available since FY 2007/08. S4t.0(X).0(X) , s4r,txl,,00 s3r,tm.0q) $0,0q),(m t25.00,0q) s20,{xI).0q) s13,0(D,000 tt0,0(p,0(I) sto00,00o s- s(1000,000) r Tn EASURER 'rIOWN COLNCIL ITOWN ATTORNET- COMML1ITTY SERVICES I LIBIIARY JADMNISIRATNE SERl4CES ICOMMUMTY DEVELOPMENT IPAT.KS AND PUBLIC WORKS I NON.DEPARTMENTAL TPOLICE 2m8/09 2m9/10 2010/lt Aciurl3 Aciualt Aca! rl s 20t!/t2 20I2nr 20t3il,a Acftrla Acturl3 Actutlt 20la/ls :0!5/16 Acfi.k Bud8.a.d a,l o rllz-l J GENERAL FUND EXPENDITURES BY DEPARTMENT Itt ____{t iIt r+I E t_ I I'ARKS ANI)I'llRt ( WORXS The following graph identifies one-time extraordinary expenses s45p00,00o s.r0p00,000 s35,000,000 s30p00,000 s25,000,000 s2000o,000 slsp00,00o s10p00,000 t5,m0,000 t 3(5,000,000) l. TREAST'RER '/ TOWN COLNCIL gTOWNATTMNEY @MMLNTTY SERI'ICES TLIBRARY IADMINISTRATI\E SERVICES .@MM(ATTY DEVELOPMENI .PARKS AND RiBLIC WORKS TNON.DEPARTMEMAI TPON.ICE 200&09 t00910 ,0lolt 2011,/1, ..l,ctErl3 Act!.ls Act!.|! 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Pl :31 I ;: E" I 3r-l B 5 EI6 ; !l 3 s :l;iilr: clrif-la ! rlj-5:lT:al:iElr 3 :lrl E 3 ; B ; ri i Elt "l] =l-o ili rl I ;l! 9t o ;l € 3l 5el:t c _El { }l!l il EI;lsl*l:;l a !l o:l E!l" Bl 9l 1., I et rl :lil tl r9l *:l e' il | =l3 sl 19 El9t I,l EglitlEll 3 c'lc 5l* ;l E;I €ito !t ll ElEI PIrl!l 5.1;:l 6 pl!;l 9-l9l I I =l+ gl ;EI E bt6nl (, :lc-l 9-e:.t!. nJ'd (! o oa\ o-F !,cl! l0q) (! co c!o- ATTACH]IIENI'3 E E -:tAI E r.l 691 EHI ! 9l i _cl :51E EI3 Ct e zt E -l ii I t < :l -- ;l 5 -*l * 9lint5 \l =91P:I -it P 3l!;l ii E EI FI ; .il 3 sl i !l E !t: !l :EI3:lu:l : -el F slPel o 9l: :l3 :lr €l! ]l o !1-g ;t;ol E Eli =i; il aftI*l 3 3l:el iEt! 3l ?l ;l il 3l:l]l 9l I .91 EEI , =t; 9l 3#tq!l ;el e gl EEI.6 ;l ETI rtsl : >tralr El gEl 6;lr!l ;EI at EI :l i :.-6 6P.i iP.i2. CaliforniaCityFinance.com The California Local Aovernwrent Finance Alwtanac Lipdatcd.luh' 2(ll5 The Utility User Tax (UUT) may be imposed by a city on the consumption of utility services, including (but not limited to) electricity, gas, wate0 sewer, telephone (including cell phone and long distance), sanitation and cable television.' A county may levy a UUT on the consumption of electricity, 8as, water, sewer, telephone, telegraph and cable television services in the unincorporated area'" The rate of the tax and the use of its revenues are determined by the local agency. The tax is levied by the city or county on the consumer of the utility services, collected by the utility as a part of its regular billing procedure, and then remitted to the city or county. Most of the cities and counties with UUTS adopted the taxes prior to 1986 by vote of the city council (or in the case of a county uuT, the county board of supervisors). Any increase or extension of a local tax now requires voter Utility User Tax Facts Number widl UUT 158 4 Tolephone UUTS 150 4 Electricity 157 4 Gas 157 4 cable Tv 90 1 WaEr 86 1 Sewer 14 1 Garbage 12 0 San FrancBco E countad as a counly 162 500h 154 49o/o 161 490/. 161 49o/o 91 20% 87 21'/. '15 1% 12 1% approval. Currently, all city UUT levies in California are general taxes. Statewide, city and county utility user ta)Gs generate nearly $2 billion per year. Exemptions State and federal Sovernment agencies, and gas and water used by utility companies to generate electricity are exempt from utility user taxes. UUTs on Telephony The application of utility user taxes to certain telephone services has been a topic of substantial legal and legislative turmoil due to changes in technology and federal law. UUTS ANd thE FET Many Utility User Taxes in California include reference to the Federal Excise Tax ("FET")"i commonly limiting the application of the utility user taxes to charges that are "subject to" the FEf. Telephone calls which are not charged based on both time and distance - such as those paid by coin in phone booths - are exempt from the FET By reference, these types of calls are also exempt from some local UUT ordinances. Many cell phone bills are based upon a package which provides a mix of local and lonS- distance calling for a flat rate. ln 2007, several federal courts and the IRS ruled that telephone service packages which provide a mix of local and long-distance calling for a flat rate or a fixed fee are based on neither time nor distance Cities and Counties Wth UUTs asotttlt2ols 2217 lsle Royale Lane'Davis. CA ' 95616-6616 ' TeI: 530.758.3952 .\'l '1 .\( H\lll\l l Cities Total Califomia Popula6on cove red UUT Facts -7- and are therefore not subject to the FET." The IRS subsequently adopted a regulation incorporating these rulings.'That meant that if a city wished to continue to impose its UUT on cell phone or other telephone calls which are not charged on both time and distance, it must amend its ordinance to remove the reference to this exemption to the FET. A number of cities have amended their UUT ordinances to clarify that they did not wish to adopt the IRS' new practice, but rather wished to continue to impose their UUT5 as they had historically been imposed (i.e. on charges based on time or distance). At the time of this writinS, several localities are challenging the right of local taxing authorities to amend their ordinances without voter approval, or to continue to collect this revenue without amendment. The lawsuits argue that an amendment to an ordanance to bring it anto conformity with the FET ruling is an "increase" subiect to voter approval under Proposition 218. UUTS and the MTSA Prior to the adoption ofthe Mobile Telecommunications Sourcing Act of 2000 (MTSA)'i by Congress, cellular carriers had argued that the federal Constitution forbade the application of a utility user tax to telephone calls which neither originated nor terminated within the taxing agency. The MTSA expanded the permissible nexus for taxation to all cellular telephone charges for accounts with a primary place of use in the jurisdiction. Howevet carriers have argued in the courts that the California Constitution Article XlllC prohibits cities and counties from applying the MTSA nexus rules without voter approval.'i' California Utility User Tax Rates as of 7r1n015 0 rev luly 2015 >0b >1%to >2% to >3%to >4%to >5% to >6% to >7%to >8%to >g%to>1@,6b 1% 2% 3o.h 4% 5% 6% 7% 8% 9% 10% 11% Ralo As a result of these events, doubt has been cast over the application of some outdated local UUT ordinances to certain types of telephone service. Proposition 218 requires voter approval of any change in the "methodology" by which a tax is administered if the change increases the amount of the tax paid by the taxpayer.v"' Many agencies that rely on UUTS on telephony have successfully sought voter o4og E35 6so.! .8 zs 3zooIr 15 10 M.!n . 5.4%. Std Dev 2.lo/6 Population W3ighted Msan = 6.6% CaliforniaCityFinance.Com UUT Fac rev July 201 5 modern telecommunicationsapproval of an updated ordinance that reflects the realities of the industry. Recent Voter Approval Record From June 2oo2 through June 2015, all 80 measures to increase or adopt a new UUT were by cities. Ten were special taxes designated for a specific purpose and requiring two-thirds voter approval. Among the 70 general taxes, 10 were accompanied by advisory measures indicating the use of the funds, the so called "a/b strategy." Utility User Tax Measures (increase or expand) June 2002 - June 2015 Cities and counties -3- Modernize / Reduce M od er nize/ Sa me Rate Ratification (La Habra ) tail 2 Cont in uation Special Tax {2/3) Seneral Tax w/Advisory GeneralTax New/lncr-Fail,40 I ovo 70% Currently, all UUTS are general taxes except two. ln June 2003, vote6 in the City of Desert Hot Springs approved a UUT which dedicates 50% of the proceeds to resolving the city's bankruptcy related debt.i' ln June 2010, voters in the City of Mammoth Lakes approved the extension of the cities sun-setting UUT but earmarking it for "mobility, recreation, and arts and culture." lronically, that city later filed for bankruptcy facing a massive court judgment from a land use dispute. Referenda to Reduce or Repeal UUTs Have Rarely Succeeded Since 2001 there have been 135 successful utility tax measures including validations, extensions, expansions and increases. During this time there were just two successful referenda to repeal or reduce a UUT among 18 qualifying attempts in 12 different cities and one county. Eleven of these measures were decided November 6, 2002 with all failing except a measure reducing the UUT in Greenfield from 6Yo to 3% passed in 2002. Just three cities and one county have considered UUT Fail,4 70%4Oo/o30%20%50%60%80%90%100% CalaforniaCityFinance.Com Pass, 19 Pass, 49 Pass, 29 Pass, 11 UUT Facts lev .luly 2015 repeals or reductions since then. Of the seven measures (multiple in Seaside and Holtville) voters in the County of Santa Cruz were alone in deciding to repeal their UUT (March 2003). The UUT is Vital to Funding Essential Municipal Services City utility user tax rates range from 1 percent to 11 percent. The particular utilities to which the tax is applied varies. ln some cities different rates apply to residential versus commercial lygical Full Seryice Cily users. The most common rate is 5 percent, 8.. applied broadly among many types of utilities. 60\ The average rate (mean) is 5.4 percent with a standard deviation of 2.1 percent. Because 'o\ most large cities have UUTs, roughly half of @'. California residents and businesses pay a utility l4." user tax. Four of the 58 counties levy a UUT ro., (Alameda, Los Angeles, Sacramento and san Francisco). ro\ The UUT is a vital element in the funding of 2os cratical city services. On average, the UUT 'or provides 15 percent of general-purpose 0.. revenue in cities that lew it. ln some cities, the UUT provides as much as one third of the General Fund. Some UUTs Result From State Cuts to City Funds Many city UUT levies and increases have resulted from cuts to city revenues by the state. ln 1992, facing massive deficits in the state budget, the Legislature and Governor began the annual transfer of billions of dollars of property tax revenue from cities, counties and special districts to K-14 schools, allowing the state to reduce its generalfund spending on education. Cities and counties, who depend substantially on sales tax and property tax revenues for discretionary income, were already experiencing the same recessionary effects as the state. These property tax shifts, using a mechanism called the "Educational Revenue Augmentation Fund" (ERAF), continue today. ln FY 2008-09 the annual property tax shift totals 57.5 billion including over 51.2 billion from cities.' City property tax revenue, a top source of general purpose revenue for most, was cut from at least 9% a^d 24% on average. Cities responded by cutting services, deferrinS infrastructure maintenance, relying more heavily on debt financing, paring down reserves, more aggressively pursuing sales tax generators, and raising taxes and assessments. Within a few years of the beginning of the ERAF property tax shifts, more than fifty (50+) cities increased an existing or levied a new UUT. Discretionary Revenues and Spending Ll!'r! Slr! tl Erenditures ParttERac Revenues CaliforniaCityFinance.Com -4- FireI UUT Facts ndencies FYmi3-r4 Portgrville llorcm Vallcy Wintrrs Pomona qendal. Orangc cow Lynwood lnglewood S.n G.briel Culahy lndlo Bellllower Xodeio l iid.lc Tort!ncC rev luly 2015 hest U$l User Tax $ Richmond Horculo6 Compton Sierra ilsdre B€ ll Desen Hot SpringE Holtvillo Wabrford Ria lto Firsbaugh Llndsy garrmont El Segundo PaSadcnr Lor Alamitos 42.4% . 34.8% d 34.6% b u.3% . n.9% 6 ?9-6% n a.1% b 28.6% d 27.O& b 26.1% b 25.5% b 25.1% d 24.7% a 23.9% t 23.E% d 23.7% . 23.6* . 23.5% b 23.1% e zi.1% , 23.4% d 23.096 b 23.ffi. 23.0.i b 2.8* d 2.*b 2,&d 2..a% b ?,2.& . 21.6% . 21.5%Seal Beach Whitticr Brawley Covina Ponola valley Culver City Stockton Bradbury Woodlake Lewndale Coachella Burbank Eretea Huntington Park Rive.Cdo 21.1% . fr79f. 2!..7% . m.7 d 20.6% b 2o_1% . 20-3% d 20.3% I m.Md 't9.6% t 't9.696. '19.5% b 19.4% d 19.3%. Sqt&!-ceEorn€cnyFinince corncompuialbn.treftFY12- B dala ..porle6lo lh. CstlomE Si.l. ConlrcLr b: ciy do6 not provir.rfond br.ry lcrvE€. Vemon ln indale El Segundo Richmond Sand City Santa Fe Springs Culver City Santa ilonica EmeryYille Sierre ladre Pa sa de na c= cly (res nol prddarlund lbrtry or pertt 3crvrG! d= ciy does mr provillund (it. or b.:ry sarvit! hest Util User Tax $ Collections FY2o13-14 $ 14,338.48 Torrance $ 2,,195.63 s 7E1.53 s 452.56 $ 395.73 $ 362.41 $ 374.94 t 355.99 $ 267.55 3 260.01 $ 252.00 alibu Ssal Boach Burta nk Lo3 Alamitos Po ola Vallcy Benicia Santa Cruz P.lo Alto Los Angeles Palm Sp.ings $ 212.2. s 193.29 6 r8E.66 $ 188.60 t 186.5E $ 1n.57 $ 173.79 s 164.96 $ 16,t.63 $ 160.69 3 155.08 SgJCg CalromiacnyFhance com codrpuialbnstlDm FY 12- ft dala repoicd to thc C.ltomb Sl,.te ConliglLr. CaliforniaCit),Finance Com City UUT pel ca pita City UUT per capita UUT Facts -6-rev luly 201 5 'Charrcr citics: Cai. Coost. art. XI !5; (icneral l:* cttiesi Cxl- Governmcnt Code \31100.5. 'Revenuc and 1'ex Code $7284.!. {2 U.S.C'. SS.l25l er seq. ' IR^S \oticc l )6-50. ' Rcvcnuc Bullctin 200r-5 Scctron l(, " 4 U.S.C. $$11(, et seq. '- \ crizon V'ireless v l-os -\ogclcs, No. 8185373, -\B Ccllular LA, LLC dba -\T&T Nrlrcless \t Cin of lrs -\ngcles, 150 Cal. npp. .lrh r4? (200?). '- C.wrnmcnt Code $53?500). " In 2009, rhosc \'oters incr€ased (he rax to 7olo. ^ For morc informauon on I:-R.A.[.. scc hnp:,/Tlurv.californracrt_vfinaocc.coml#ER\F CaliforniaCityFinance Com Utility User Trx (UUT) Information Santa Clara County Municipalities -UUT Rate Comparison Utility User Tax Jurisdiction Type Rate Canpben None Saratoga Norr Cr.pertino Telephorr./Ehctricity/Gas 2.4% los Ahos Telephorp/Electriciry/Gas/C ATVA /ater 3.?%t3.5W3.5o/o/3.5% Los Ahos Hills None Pab Alto Telephone/ElectrbityiGas.A['ater 4.7 sy"t50/J5%/5yo Morpan Hill l-orc Gkoy TeleplpnelElectrbirylGaVC ATV 4.5o/"1 5o/o/ 5To/4.5o/o Mifuitas None San Jose Telephone,/Ehctrbiy/GasAMater 4 .5%l5\ol5o/J5Yo Town oflos Catos N orc Mome Sereno None Mou ain View Telephone/Ehctricir.v/Gas 3',/, Santa Ctara None Sr:nrrytale Telephone/Electricity'/Gas 2% Santa Clara County Municipalities -UUT Revenue Comparison (based on FY 2015/16 budgeted revenuesl Comparison of Santa Clara County Municipalities FY 2015/ I6 Crrn eral Fund (CF Dara Citic!Populrtion tlilio l-ber Trr Totrls PerCrprtr Totd GF Rarrru! Totd CF f,ipaDdlurr Cnmpbdl Cuperrho Gikoy 1,6 Ahos 116 AIos HiIs LrOS GATOS M ilpilas M o c Seroo M orgm Hil Satr Jos€ Santa Cka Srratoga Suonyvale 4 t,871 s9.171 52264 29,tt4 8,330 m,,l43 69,903 3,439 4t i19 76582 66,6t2 1,00.2274 120.942 30,798 t46,724 3. t00.000 4,517.842 2.7t6.O34 S 7.573,m0 I I,189,fi)O 93,82r,000 6,m9.6r 6 s 52 t6 9t r68 9.t 46 0.v/o 4.50/o 9.4% 1.60/0 7.to/" 6_tv. 9.1% 4.?/" s 47.9r4.0!6 68,t62.303 48.015.671 35,872.284 9,802.476 37,475,161 76.351,E08 2,6C2-6ll 33.733,525 t07,131,730 183.9,r0,()m I .014.52?,1 r 9 I 84.,148.049 19. r 6?.826 162.t16,725 s 46,942,121 67.575.053 41,990,4U 4.189,7n 6,9E9.,148 37,815,462 16.344.312 2.692.61l y.fi6,q2 10r,t88.914 r8J.672.000 1.034.527.319 167282934 20.474,% t 47,m4,?65 I r.?33 st.6Jt.699 s 7.1 ATTACHIIIENT 5 Utility User Tax Facts- California Local Government Finance Almanac (Attachment 1) Translent Occupancy Tax (TOT) lnformation Current Town Code Section of TOT (Exhibit A) Past Ordinances and Rate Changes of Town of Los Gatos TOT List of Hotels and Number of Rooms in Los Gatos ordinance # Rate Ordinance Date Effective Date v 1-t 4v June 5, 1967 June 5, 1967 Attachment 2 946 50/o June 17,1968 July 1, 1698 Attachment 3 7289 6%February 2, 1976 Aptil t, !976 Attachment 4 1362 6.5%)rne 20,7977 )uly L,L977 Attachment 5 1551-A to%.,anuary 3,1983 February 3, 1983 Attachment 6 Hotel iol Rooms Best Western/Los Gatos Motor lnn 50 Toll House Hotel 115 Los Gatos Garden lnn 29 Hotel Los Gatos 72 Los Gatos Lodge 120 ATTACHMENT 6 TOT Historical Revenue Town of l,os Catos - T0T (in $millions) Santa clara County Municipalities - TOT Rate Comparison Tramient 0cct4.trcY Tl! Judsdiction Rate Carrpbell I loo Cqertirn l20 o Gihov 90o Los .{hos l0o o Los .{tos Hilb N.{ Los Gatos l0ozir \lbitas l0q o \lonte Sereno N.{ \lorgan Hill l0o o \lor.mtain Vieti'l0o o Pab .:rlto lloo San Jose l0oo Santa Clara 9.50 o Saratoga l0o o Sunyale 10.50 o .r.!{.***'r*{dv*'".1'"".'l-.*.1 Santa Clara County Municipalities -TOT Revenue Comparison (based on FY 2015/16 budBeted revenues) Fr' 20151 l6 Crncral Fund Dara Citics PoFrl.lior Trrnsient Occuprcy Tax Totrls AmouDt Per C.]it Tottl GF Raraouc Totrl GF ExDcodlau !r Campbell Cupcrrino Gih<ty lrs Altos Los Altos Hills tos GATos M ilpitas M oote Sarcno M orgarl Hill M ountain Vie$, Palo Alto Sao Jose S6nta Clala Ssatoga Sunnyvale 4r,8?l 59.111 52264 29,8U 8,330 30443 69.903 3,419 41,079 76,582 66,682 I,002,274 t20,942 30,798 t46,124 $ 4,300,0m 5.072.000 t,361,844 2.345,600 r.s00.000 8,0t8,000 1.99t,850 6186,m0 | 8.79 t,m0 r4,700,000 r7.300,000 I l0 000 i,397,2t6 $ r03 E5 26 7E 49 II5 48 E5 282 t5 t43 t0 18 9/. 10/. 3.4 1./. o% 10/. I toh o% 60h 60/o lv/. tc/o 9o/o 20/. $ 47.914.016 68,162,303 4E.0r5.671 3s.87228r'. 9,8U2116 31.475:16l 76.153.808 2.692.6t I 33,1!3.s2s 107.r 33.730 r E1,940.000 l-034.527.319 t 84,448,&9 t9,167.826 I62,E t6,725 s 46,9E2,r 2? 67.575.053 41.990.486 34.1t9.192 6,989,448 37,81162 76,v4.732 2,6926| 34,606,402 t0t.88E.914 r85,672,000 r,034,527,319 t67.282.914 20,414,9M 147,90/,7& A\a rsgc I t 8,7-l-i s6,23E.234 slS 5.5% Comparison of Santa Clara County Municipalities ARTICTE III, . TRANSIENT OCCUPANCY TAX Sec. 25.30.010. - Definitions. For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section: Hotel means any structure, or any portion of any structure, which is occupied of intended to be designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, iourist home or house, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club. mobile home or house trailer al a fixed location, or other similar structure or portion thereof. Occupancy means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in any hotelror dwelling, lodging or sleeping purposes. operator means lhe person who is proprietor of the hotel, whether in the capacity of o\ryner, lessee, subless€e, morlgagee in possession, licensee, or any other capacity. where the operator perlorms the operalor,s functioni through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an oprator ,or the Purposes ot this articb, and shall have the same duties;nd tiabilities as the managing agenfs principal. Compliance with the provisions of this article by either the principal or the managing agent shall, hor/,/ever, be considered to be compliance by both. Person means any individual, firm, Partnership, joint venture' associatbn, social club, tratemal organization, joint stock company, corporation, estate, trust, business trusl, receiver, trustee, syndicate, or any other group or combinalion acting as a unit. Renl means the consideration charged, whether or not received, for the occupancy o, space in a hotel, \€lued in money, whether lo be received in money, goods, labor or otherwise, including all receipis, cash, credits and property and services of any kind or nature, without any deduclion lherefrom whatsoevet. Tax Administrator means the Finance Manager of the Town. Transient means any person Mto exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portion of calendar days as full days. Any such person so occupying spaoe in a hotel shall be deemed to be a transient unlil he Period of thirty (30) da)rs has exPired, unless there is an agreement in writing between the operator and the occupant providing for a longer pefiod of occupancy. ln determining whether a person is a transient, uninterrupted periods of time exlending both prior and subsequent to the effoctive dale of this article may be considered. (Ord. No.9l l, $ 2,6-5-67; Code 1968, $ 28-17; Ord. No. 1913, $ Il' 9-21-92) Cross reference- Definitions and rules of construction generally, $ I . 10.01 5. Sec. 25.30.015. - Tax imposed; when payable. (a) For the privilege of oc€t pancy in any hotel, each transienl is subiect to and shall pay a tax in the amount of ten (10) p€rcent of the rent charged by the operator. Such tax constitules a debt owed by the transient to the Town, which is extinguished only by payment to lhe operator or to the Town. The transient shall pay the tax to the operator of the hotel at lhe time the rent is paid. lf the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon ihe transient's ceasing to occupy space in the hotel. lf for any reason the lax due Page 1 EXHIBIT A (b) is not paid to the operator ol the hotel, the Tax Administrator may require lhat such tax shall be paid directly to the Tax Administrator. For purposes of this section, the term "lhe privilege ol occupying a room or rooms in a hotel, inn, tourisl home or house, molel, or olher lodging'does not include the right of an owner of a timeshare estate in a room or rooms in a timeshare project, or the guest of that owner, to occupy the room, rooms, or other real property in which that ow)er retains the timeshare estate. For purposes of this parag€ph, "limeshare estale" means a timeshare estate, as defined by Business and Professions Code section 1'1003.5 and the term "guest of that owner' means a person who occupies real property accompanied by the owner of a timeshare estate in that real property, or who exercises that owner's right of occupancy of a timeshare estate withoul payment of any compensation to ths owner. The term 'guest of that ownef specifically includes a person occupying a timeshare unit pursuant to any form of exchange Program. Subseclion (b) shall not affect or apply to the aulhority oI the Town to collect a transienl occupancy tax from timeshare proiects which were in exislence as of May 1, 1985, and which timeshare projects were then subject to such tax imposed by this article duly enacted prior to May 1, 1985, pursuant to this section . (Ord. No. 9l l. $ 3, 6-5-67; Ord. NO.946, $ 7-5-77;Ord. No. l56l-A, $ I, l-3-83; Code Sec. 25.30.016. - Exemptions. No tax shall b€ imposed upon: (a) Any person as to whom, or any occupancy as to wtlich il is beyond the power ol the Town lo impose the tax herein provided;' (b) Any officer or employee of a foreign govemment wito is exempi by reason of expression of federal law or intemational featy. ' State and tederal employees are not exempt 46 Ops. Atty. Gen. 16. (Ord. No. 1913, $ Ill,9-21-92) sec. 25.30.020. - Duties of operators. Each operator shall collect the tax imposed by this arlicle to the same extent and at the same time as ihe rent is collected from every transient. The amount of tax shall be s€parately stated frorn the amount of the rent dtarged, and each transient shall receive a receipt for payment from the operalor. No operator of a hotel shall advertise or state in any manner, whether direclly or indirecdy, that the lax or any part thBreof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will not be refunded, except in the manner hereinafter provided. (Ord. No.9ll. $ 5,6-5-67: Code 1968. $ 28-20) Sec.25.30.025. - Registration by operatoE; transient occupancy registration certificate. Each operator of any hotel renling occupancy to transients shall register such hotel with the Tax Administrator and obtain from the Tax Administralor a lransieni occupancy registration cerlificate, to be al all times posted in a conspicuous place on the premises. Operators beginning business shall so rggister within thirty (30) days after commencing business. Such certilicate shall, among other things, state the following: (1) The name of the operator; (c) l: Ord. No. 1289, $ I,2-17-76; Ord. No. 1362, $ I, 1968, S 28-18) Page 2 (2) The address of lhe hotel; (3) The date upon which the certificate was issued; (4) .This transient occupancy registration certificate signiries that the person named on the lace hereof has fulfilled ihe requirements of article 3 ot chapter 25 of the code of the Town of Los Gatos. Califomia, by registering with the Tax Administrator for the purpose of collecting from transients the transient occupa;cy tax and remitting such tax to the Tax Administrator. This cenilicate does not authorize any person to conduct any unlall{ul business in an unlawful manner, nor to operate a hotel without strictly complying with all locel applicable la\ /S, including, but not iimited to. those requiring a petmit from any board, commission, department or oflice of this Town. This certificate does not consiitute a permit." (Ord. No.9l l, $ 6, 6-5-67; Code I968, $ 28'21) Sec. 25.30.030. - Returns and remitting oftax. Eacfi operalor shall, on or before the last day of the month following the close of each c€lendar quarter, or at the close ot any shorler reporting period which may be established by the Tax Adrini.t "tor, make a retum to the Tax Administrator, on forms provided by the Tax Admanastralor, of.the total rents charged and received and the amount of tax collected for transient occupancies. At the time the retum is file-d, the full amount of tle tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter r@orling periods for any cedmcate holder if il is deemed necessary in order lo ensure timely collection of the tax. The Tax Administrator may also require further information in the retum. All taxes collected by operators pursuant to this article shall be held in lrust for the account of the Town until payment thereof is made to the Tax Administrator. Retums and payments are due immedialely upon cessation of business for any reason. (Ord. No. 9l l, $ 7,6-5-671 Code 1968, $ 28-22; Ord. No. l9l3' $ IV,9-21-92) Sec- 25.30.035. - Penalties and interest. (a) Originat delinquency. Any operator u,ho fails lo remit any tax imposed by this article within the time" 1.eqiirea snall pay i penitty o, ten (tO) percent of the amount of the tax, in addition to the amounl of the tax. (b) Continued delinquency. Any operator who fails lo remit any delinquent remitlance on or before each period of thirty 1iO1 Oays totlowrng the date on which lhe remittance first b€came delinquent shall pay an additional'delinquency penalty of ten (10) percent of lhe amount of the tax in addition to the amount of the tax and the ten-percent penalties earlier imposed. Such penalties shall continue to accrue until such time as lhe cumulati\€ penalties reach one hundred (100) percent of the amount of the tax originallY due. (c) lndividualliability. (1) Any person required to collect, ruthfully account tor, or pay over any tax imposed by this aiicle' ' wnl wilttulty tails to collect such iax, or truthfully accounl for and pay over such tax, or willfully attempts in any manner to evade or deteat any such tax or the payment thereor, shall, in addition to othar penalties provided by law, be liable for lhe penalties described in, subsection (b) above on the iotal amount of the tax evaded, or not collected, or nol accounted for and paid over. (2) No penalty shall be imposed pursuant to this subsection unless the tax administrator notifies the' ' opeiator i; tMiting that persons subiect to this subsection shall be liable for such a penalty at least siny (60) days before the Penalty shall apply to those persons' (3) lf more than one person is liable lor the penalty described in this subsection, each person who paid such a penitty shall be enlided lo recover from other persons wtlo are liable lor such Page 3 penally an amount equal lo the excess o' the amount paid by such person over such person,s ptopo,iion"t" share of the penalty. Any claim for such a recovery may be made only in a proceeding that is separate fiom oi at the least severed from any action brought by the Town to collecl the penally and tax. (4) For purposes o{ this subsection only, "person required'means the same as the term ''person"' ' unOir interpretataons of sections 66i1 and 6672 of the lntemal Revenue Code. and includes an officer or employee of a corporation, or a member or employee o' a partnership'. who as.such officer, employee, or member is under a duty to perform ihe act in respect of which the violation occurs. (d) lnterest. ln addition to the penalties imposed, any operator who fails to remit any tax imposed by this' ' article shalt pay interest ai the rate of one-halt o, one percent per month or traction thereof on the amount of the- tax, exclusive of penalties, from the date on which the reminance ,irst became delinquent until Paid. (e) Penalties merged with tax. Every penalty imposed and such interest as accrues under lhe provisions' of this sectionlhall become a part of the tax required by this article to be paid' (Ord.No.9lt,$8,6-5-67:Codel968,$28-23;Ord.No'1867'$$l'll'9-3-91:OrdNol9l3' $ V,9-21-92: Ord. No.2026. $ XX,2-18-97) Sec. 25.30.O10. - Failure to collect and report tax; determination of tax by Tax Administrator' lf any op€rator shallfail or refuses to collect the tax levied by this article and to make, within the lime provided in ihis arlicle, any report and remittiance of such tax or any portion thereof required by this IrriJe, ttr" Tax Administrator shall proceed in such manner as may be deemed best lo obtain tacts and information on which to base the eatimate of the tax due. As soon as the Tax Administrator shall pocure such facts and intormation as the Tax Administrator is able to obtain upon which to base the assessmenl oi any tax imposed by this article and payable by any operator who has failed or refused to collect the same and to'make such report and remittanca, the Tax Administrator shall proceed to determine and iiseis again"t such operator the tax, interest and penalties provided for by this article. In cas€ such a.Gr.in"ion is made, the Tax Administrator shall give a notice of he amount so assessed by serving it personally, or by depositing it in the United States mail, postage prepaid, addressed io the operator so lirlir"o "r 1t" op.iator's Iast known place of address. Such operator may, within ten (10) days after lhe ierving or maiting of such notice, make application in u,fiting to the Tax Administrator for a hearing on the "rorn-f """"a.d. f applicalion by the operator for a hearing is not made within the time prescribed, the Li, ,t"r"S jna p"natiiis, if any, ietermined by the Tax Administrator, shall become final and conclusiv€ anj immeOiatety'Ore and paya6te. lf such application is made, the Tax Administrator shall give not less ttran nve (S) days' rvritten noiice in tre manner prescribed herein io the operEtor to show cause at a time inJ puce fixeoin such notice \,vity such amount specified therein should not b€ fixed for such tax' interest anO i.naftes. At such hearing, ihe operator may app€ar and offer evidence why such sp€cified tax, mierJs anJ penafries should riot ue so fixed. After such hearing, the Tax Administralor shall determine the proper ti* to O. remined, and shall thereafter give written notice to the person in the manner pi".iri-tio herein ot such determination, and the amount of such tax, inlerest and penalties. The amount determined to be due shall be payable after fifteen (15) days. unless an appeal is taken as provided in section 25.30.045. (Ord. No. 9ll, $ 9.6-5-67: Code 1968. $ 28-24) Sec. 25.30.045. - Appeals from decisions of Tax Administrator' Any operator aggrieved by any decision of the TaI Administrator with respect to the amount ol such tar, intJrest and peiitties, tt iny, hay appeal to the Town Council by filing a notice of appeal with the iown Cterk withi; fifleen (15) d;ys of the serving or mailing of the determinatjon of tax due. The Town Page 4 Council shall fix a time and place ror hearing such appeal, and the Towt Clerk shall give notice in writing to such operator at the operator's last known place of address. The findings of the Town Council shall be final and conclusive and shall be served upon the appellant in the manner ptescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service ol notice. (Ord. No. 9l l. $ 10.6-5-67; Code 1968, $ 28-25) Sec. 25.30.050. - Records to be kept by operators. It shall be the duty of every operalor liable for the collection and payment to the Town of any tax imposed by this article to keep and pteserve, for a period oi three (3) years, all records as may be necessary lo determine the amount of such tax as the operator may have b€en liable for the collection of and payment to lhe ToMl, which records the Tax Administrator shall have the right to inspect at all reasonable times. The records shall include at least the following: (1) Oaily summaries of room occupanciesi (2) A record of each occupancy charge for trfiich an exemption is claimed, including the name of the iMividual occupying the room, dates of occupancy, and reasons for exemplion: (3) Lists of bad debts claimed for exemption, including names and addresses of debtor and amount o, room rent unpaid. (Ord. No. 9l l, $ ll,6-5-67: Code 1968, $ 28-26; Ord. No. 1913, $ VI,9-21-92) Sec. 25.30.055. - Refunds. (a) Whene\,,er the amount of any lax, inlerest or penalty has been overpaid, or Paid more than once, or has been enoneously or illegally collected or received by the Town und€r this article, it may be retunded as provided in subsections (b) and (c) of ttlis section; provided that, a claim in tMiting therelor, stating under penatty of perjury to specific Arounds upon which the claim is tounded, shall be tiled with he Tax Administrator within three (3) years of the date of payment. The claim shall be on forms fumished by lhe Tax Administrator. (b) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received, when it is established in a manner prescribed by the Tax Administrator lhat the person lrom whom the tax has been collected was not a transient; provided, that neither a refund nor a qedit shall be allowed unless the amount of the tiax so collectsd has either been refunded to the transient or credited to reni subsequently payable by the tansienl to the oPrator. (c) A transient may obtain a refund of taxes overpaid or paid more than once, or eroneously or illegally colbcted or recei\red by the Town, by filing a claim in the manner provided in subseclion (a) ol this section, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to lhe operator, establishes to the satislaction of the Tax Administrator that ihe transient has been unable to obtain a refund from the oPerator who collected the lax. (d) No rerund shall be paid under the provisions of this s€ction unless ihe claimant establishes the right thereto by w tten records showing entidement lhenelo. (Ord. No. 9l I , $ 12, 6-5-67; Code 1968, $ 28-27) sec. 25.30.060. - collection of tax. Page 5 (a) Actions to colect. Any tax required to be paid by any transient under tre provisions of this article shall be deemed to be a debt owed by the transient to the Town. The amount of the tax collected by the operator shall be held to be a special fund in trust lor ihe Toum o' Los Gatos and shall be deemed to be public monies upon collection. upon prop€r notice, the Town may require the person collecting the tax to deposit such amount in a separate account in a tederally or stale charlered bank located h California and keep the amounl of such taxes in that account until paymenl over to the Town: however, whether the collected taxes are placed in a separale account of nol shall have no effect on the trust obligation ot the person collecting the tax to hold and remit the taxes lo the Town. Any person owing money to the Towt under the provisions of this article shall be liable to an action brought an the name of the Town fot the recovery of such amounl. (b) Recording cerlilicate - Lien. lf any amount required to be paid to the Town under ihe ordinance codilied in this arlicle is not paid when due, lhe Tax Administrator, upon expiration of the second delinquency period referenced in section 25.30.035(b), may within three (3) years after th€ amount is due file foi record in the office of the Santa Clara county recorder and in the office of the counly recorder of any olher county in which the operator owns real property, a cenificate specifying_ the amounl of iax, p€nalties and interest due, the name and address as it appears on the records of the Tax Administrator of the operator liable for the same and the fact thal the Tax Administrator has complied with all provisions oI this article in the determination of the amount required to be paid. From the time of the fling for record, the amount required to be paid together with penalties and interest constitutes a lien upon any real property in the county owned by the operator or acquired by him aflerwards and betore the lien expires. The lien has the force. effect and priotity of a iudgment lien and shall continue for ten ('10) years from the time of filing of the certificate unless sooner released or othenvise discharged. (c) priority and lien of tax. The amounts required to be paid by any operator under this article with penallies and interest shall be satisfied first in any ol the following cases: (1) Whenever the person is insolvent; (2) Whenever the person makes a voluntary assignment ot his assets; (3) Whenever the estate of the person in the hands of executors, administratoG or heirs is insuflicienl to pay all the debts due from the deceased; or (4) Whenever the estate and effects of an absconding, concealed or absenl person required to pay any amount under this article levied upon by process of law. This article does noi give the Town a preference over any recorded lien which attached prior to the date when the amounts required to be paid b€came a lien. (d) Wanant tor collection oI tax. Al any time within lhree (3) years after any operator is delin-quent in the payment of any amount herein required to be paid off after the last recording of a certificate of lien unier subsection (b) ol this section, the Tax Administrator may issue a warranl for the enforcement of any liens and for the collection of any amotjnl required to be paid to the Town under this article. The wanant shall be directed to any sheriff, marshal or constable and shall have the same effecl as a w t of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and a sale pursuant to a writ of execution. The Tax Administrator may pay or advance to the sheriff, marshal or constrable the same fees, commissions and expenses for'his ieMces as are provided by law for similar services pursuant to a writ of execution. (e) seizure and sale. At any iime within three (3) years after any operator is delinquent in the payment of any amount. the Tax Administrator may forthwith collect the amount in lhe following manner: The Tai Administrator shall seize any properiy, real or personal, of the op€rator and sell the property, or a sufricient portion o, it, at public auction to pay the amount due together with any penalties and interest imposed for the delinquency and any costs incuned on account of the seizure and sale. Any seizure made to mllect occupancy taxes due shall be only of property of the operator not exempt from execulion under lhe provisions of the code of civil procedure. (f) Successor'sliability. Page 6 (1) t2) withholding by purchaser. lf any operator liable for any amount under this chapter sells out his or her buiiness or quits the business, the operator's successors or assigns shall withhold sufficient of the purchase price lo cover such amount until the former owner produces a receipt from the Tax Administrator showing that it has been paid or a certificate stating that no amounl is due. Liabitity of purchaser - Release. lf the purchaser ol a hotel fails to withhold funds from the purchase price as required,he shall become personally liable for the payment of the amount ;equired to be withheld by him to the extenl of lhe purchase price, valued in money. Within sixty (6Ci) days afier receiving a wrilen request from the purchaser for a certificate, or within sixty iOOi Oa-la from the date the former owner's records are made available for audit, whichever ieriod 6xpires the later, but in any event, nol later than ninety (90) days after receiving the iequest, the Tax Administralor shall either issue the cerlificate or mail notice to the purchaser at his address as it appears on the records of the Tax Administrator of the amount that must be paid as a condition of issuing the certificate. Failure of the Tax Adminislrator to mail the notice shall release the purchaser from any further obligation lo withhold purchase Price as above provided. The time within which the obligation of lhe successor may be enforced shall start to run at the time the operator sells his business, or at the time that the determination against the operalor becomes final, whichever event occurs later. (g) Sate of a hotel, dismissal of the operator or other termination of his rights to operate lhe facility shall not relieve him from liability for taxes due or owing under this article. Any person assuming responsibility for operation of a hotel after causing dismissal of an operator or termination of his rights to operate the lacility shall, by such action, the liability for all taxes due and owing under this aiicb. This liability is in addition to and does nol extinguish the liability of the former operator. (Ord.No.9ll,$13,6-5-67;Code1968,$28-28:Ord.No. l9l3'SVII'9-21-92;Ord'No 2002' $ r,9-5-95) Sec. 25.30.065. - Receipts to be kept in generalfund. All taxes, interest and penalties collected or received by the Tax Administrator pursuant to this article shall become part of the general fund of the Town. (Ord. No. 9ll, $ 14,6-5-67; Ord. No. 1295, $ 1,3-15-76; Code 1968' $ 28-29) Sec. 25-30.070. - Failure to register or make returns. It shall be unlaMul for any operator or other person to lail or reruse to register as required herein, or to rumish any retum required to be made, or to fail or refuse to lumish a supplemental retum or other data required by the Tax Administrator, or to render a false or Iraudulent retum or claim. (Ord. No. 9l I, || 15, 6-5-67; Code 1968, $ 28-30) sec. 25.30.075. - False or fraudulent returns. It shall b€ unlawful for any person required to make, render, sign or vorify any report or claim under this article to make any false or fraudulent reporl or claim with intent to defeat or evade the determination of any amount due under this article- (Ord. No.9l l, S 15.6-5-6?; Code 1968, {i 28-31) Sec. 25.50.2@. - Ceiling on amount oftax: Refunds. Page 7 lf, in any calendar year, any licensed business user has pakl a total amount of tax on any of the utilities excluding penalt;s and i;teresl, of at least five thousand dollars ($5,000.00), such user shall..be entited to a ref;n'd of the tax paid over five thousand dollars ($5,000.00) provided such user complies with Section 25.50.175 and 25.50.190 o, this article. (Ord. No. 2001. $ I, 7-17-95) Pag€ I ORD I MNCE ilo. 9I I A}I ORD I }IAI,IC E OF THE TG.'N OF LOS GATOS I}iPOSII{G A TAX UPON THE PRIVILEGE OF TRAI{SI E}IT OCCUPANCY AI{D PROVIDII{G FOR THE COLLECTI ON IHEREOF THE TOUI{ COUNCIL OF THE TOT'N OF LOS GATOS DOES ORDAIil AS FOLLG'S: Sect I on l. TITLES This Ordinance shall bc knovrn as the Uniforrn Tr.nsient 0ccupancy Tax 0rdlnance of tha To,{tt of Los Catos. Section 2. DEFltllTtOilS: Except where th. context otherwise requlres, thc definitions givcn in this scction govern the construction of thls Ordinancc. (a) PERsOt: rtPersonlr rEans 8ny indivldual, f lrm, PartnershlP, Joint venture, atsociatlon, social club, fraternal organization' joint stock corpany, corPoratlon, estater trust, buslness trust, recelver, trustee, syndlcate, or any othcr grouP or cqnbinltlon actlng as a unlt. (b) HoTEL: 'rHotelI' n€8ns any structurs' or any Portion of any structure, nhlch is occupied or intendcd or dc3lgncd for occupancy by translents for drnlling, lodging or sleePlng PurPo6es ' and includcs any hotel , inn, tdrrlst hmr or housc' hotel' studio hotel , bachclor hotel, lodglng house, romlng house, ap.rtmcnt house, dormitory, Public or privatc club, moblle hqne or house treiler at a flxcd location, or othcr slmilar structur. or Portlon th.reof. Ic) occUPANcY: rt(kcupanc/r means the use or possassion, or tha rlght to thc use or Posscssion of any rom or rooms or Portion thereof, ln any hotel for dnclI in9, lodging or slecPlng PurPoses. (d) TRAISlEilf: 'Translcntrt mcans any person wfio exercises occupancy or is ontltlcd to occuPancy by reason of concession, permit, right of access, Iicense, or other agrcatncnt for a period of thirty (30) consecutive qalendar days or lcss, counting portions EXHIBITB of calendar days as full days. Any such person so occupying space ln I hotel shall be deemed to be a transient until the Period of thlrty (30) days has exPi red unless there is an agreement in writing between the op€rator and the occuPant Provldlng for a longer Period of occupancy, ln dctcrmlning hfisther a Person is a transiont' un- interrupted periods of tlne extending both Prlor and subsequent to the effective date of thig ordlnance may bc considered. (e) nglt: trRenttr means the consideration charged, wlrcthcr or not recelved, for the occupancy of space in a hotel valued in money, whcther to bc recelved in money, goods, labor or othcrwise, including all recelpts, cash, credits and Pro€erty and servicas of any kind or nature, without any deductlon therefrqr whatsoever. (f) oPERAToR: rroperatorrr mcans thc Pcrson r.,ho ls ProPrletor of the hotel, Hhether ln th€ capacity of onncr, lcssce, sub-lessee, mortgages ln possesslon, licensee, or any other caPacity. Whcrc the operator pcrforms hls functions through a managing agent of any tyPe or charactcr other than an emPloyee, the managlng agcnt shal I also be deemed an operator for thc purposes of this 0rdlnance ard shall have the same duties and liabllltles as hls prlnciPal. Compl lance with the provisions of this Ordinance by either the PrlnciPal or the managing agcnt shall, ho,cever, be considered to bc comPl iancy by both. (g) TAX ADillt{l STRAToR! 'rTax Adnlnistratorrt ncans th. Tax Collector of thc To+nr of Los Grtgs. Sestion 3. TAX I P0SED: For the prlvtlege of occupancy ln any hotel , cach transient is subject to and shall pay a tax in the lnount of four Per cent (lr%) of the rent chargsd by the operator. Said tax conititutes a debt or*d by thc translent to the Town rfiich ls extlngulshcd only by PaylrEnt to thc operator or to thc ioun. The transient shall Pay the tax to the oPrator of the hotcl et th. time the rent is paid. lf thG rent ls paid in lnstallments' a proPortlonate shar6 of the tax shall bo Paid wlth aach installment. Thc unPaid tax shall bc due upon thc translent's ceasing to occuPy sPac€ in the hotel. lf for any rcason the tax due is not Paid to the oPerator of the hotel, tha lax -2- Administrator nay r€quire that such tax shall be pald directly to the Tax Admin lstrator. sectlon-Jr. ExEilPTlotls: No tax shal I be lmposed upon: (") Any pcrson as to $rhfir, or any occupancy as to nhich, It ls beyond the porEr of the For'n to Impose the tax herein provided; (b) Any Federal or State of Cal ifornia Officer or employee when on officlal bus i ness; (c) eny offlcer or employee of a foreign governm€nt rfto is exempt by rcason of express provision of federal law or int6rnational t rca ty. l{o exerpt I on shall be granted except upon a clalm therefor made at the tisE rent Is collected and undcr penalty of Frjury upon a form pre- scribed by the Tax Administrator. Sectlon 5. oPERAToRTS DUTI ES: Each operator shall collect the t6x imposed by thls Ordinancc to thc same extent and at th€ sare time as the rent is collectcd fron cvcry transicnt. The arnount of tax shrll ba separatcly statcd from the amount of the rent charged, and each transient shall recelve a receipt for paynent from the operator. No operator of a hotel shall advcrtise or state ln any manner, whether dlrectly or ltdirectly, that the tax or any Part thereof wlll be assumed or absorbcd by the op.rator, or that it will not bG added to the rent, or that, lf added, any p€rt vrill bc rcfunded exccpt in thc manner hereinafter prov idcd. Sectlon 5. REGISTRATIOtI: Uithin thlrty (30) aays aft€r the effcctlvc datc of this ordlnance, or vrithin thirty (30) days after coflrcnclng business, wtrlchever ls later, cach op€rator of any hotcl r€ntlng occupancy to transients shall register sald hotcl vrith the Tax Admlnlstrator and obtrin frcn hlm a rTranslent Oceupancy Registration CertlflcEtc'r, to be at all tlmes Posted ln a conspictpus p'lace on thr prcmiscs. Sald ccrtiflcEtc shall, among other -3- th I ngs, state the following: (a) The nanr of the oPerator; (b) The address of the hotel; (c) The date uPon whlch the certlflcate was issucdl (d) 'rThis Transient OccuPancy Rcaistration Certlflcate signlfies that the person named on the face hereof has fulfilled the require- ments of the Unifonn Translcnt Occupaney Tax Ordln€ncc by reglsterlng r,{i th the Tax Adrninistrator for the purpose of collectlng frcm transients the Translent 0ccupancy Tax and r€rnitting said tax to the Tax Administrator. This ccrtlf i cate,:'does not authorlzc any Person to conduct any unlawful busincss in an unlawful manner, nor to oPerate a hotcl wlthout strictly complying with all Iocal applicable laws, includlng, but not llmited to, thos€ requiring a Pernlt fron any board, cqf,nission, dePartment, or offlcc of this To$,n. This certlfl- cate.--docs not constltute a permlt.rl Sectlon 7. R€PoRTI t{G AID RE ITTINGs Each operator shall, on or before the last day of the month follow- ing th€ close of cach calendar quarter, ma ke a return to the Tax Administrator' on forms provided by him, of th6 total rents charged and rccelvcd and the amount of tax col lected for transi€nt occuPancles. At the tlme the return is filcd, the full .mount of tha tax collccted shall be rarittrd to tho Tax Adminlstrator. Returns and Payments are duc imrn diatcly uPon cessatlon of buslness for €ny reason, SECtiON 8. PEI{ALTI ES AND INTEREST: (a) oRlGfIAL DELI]QUEilcY: Any oPerator wtro fails to remit any tax lmposcd by thls Ordlnance vrithln the tlne rcquired shall pay a penalty of l0% of the amount of the tax in addition to the Emount of the tax. (b) co}{Tl I{JED DELI ilouEt{cY: Any oPcrator r'*ro falls to rsnlt any dellnquent rqil lttance on or before a period of thirty (30) aeys folloxing the dete or *llch the rcmlttance flrst becaflE delinquent shall pay a second del lnquency penalty of lOX of the amount of thr I tax ln addition to the amount of the tax and the lO% pcnalty first imposed. (c) FRAUD: lf the Tax Administrator determlnes that the non- paymcnt of any rcmlttance due under this ordinancc is due to fraud, a penalty of zfl of the amount of the t8x shall bc added theneto in addition to the pcnalties statrd in sub-paragraphs (a) and (b) of th ls gect i on. (d) INTEREST: ln addltlon to the penalties lmposed, any operator r$o fails to renit any tax imposcd by this 0rdinance shall pay intcrcst at thc ratc of onc-half of l% per month or fractlon thcre- of on.the amount of the tax, exclusivc of pcnaltleg. from the date on wfiich the remlttance first becam€ delinguent until paid. (e) PEI{ALT] Es }iERGED lrlTH TAX: Every penalty tmposed and such interest as accrues under the provisions of this Scction shall becorlc a part of the tax herein requircd to be paid. Section 9. FAILUfiE T0 CoLLECT AID REFoRT TAX: DETERI{I MTI ON OF TAX BY TAX AD}iIilI STMTOR: lf any operator shall fail or refuses to collect sald tax and to makc, within the time provided in this ordinsnce, any report end remi ttance of srld tax or any Portlon thcreof required by this ordlnancc, thc Tax Administrator shall proceed in such manner as he nay deem best to obtain facts and informrtion on *rich to basc his .stlm€tr of the tax duc. As soon as the Tax Adninlstrstor shall procure such facts and information as he is able to obtaln upon which to base the assessm€nt of any tax imposed by thls Ordinance snd payeblc by any operator whor,has failed or rcfuscd to collect the same and to makc such rcport and refllttance, he shall proceed to determine and as6€ss agalnst such opcrator the tax, lntorest and penalties provided for by thls ordinance. ln case such deternlnation is made, th. Tax Admlnlstrstor shall givc a notice of the anount so assessed by serving it personally, or by depositing it in the Unlted States mall. postage prepaid, addressed to thc op€rator so assessed at hls last known place of address. Such operator may vrlthin ten days after the serying or mailing of such notice make application in wrltlng to the Tax Admlnistrator for a hearlng on the anount assessed, lf appication by the operstor for a hearing l3 not nadc within the tine Pre- scribcd, the tax, lnterest and Penalties' if any, dctennined by the Tax Administrator shall beccnre f inal and conclusivc and irrEdiately due and payablc. lf such application is made, the Tax Admlnistrator shall give not 'less than five (5) days written notlce ln the manncr prescrlbed hereln to the operator to show cause at a tlme and Place fixed in sald notlce why said i anDunt speclfled therein should not bc fixcd for such tax, interest and penaltles. At such hearing, the operator may apPerr and offcr evidence why such speclfled tax, interest and penalties should not be so fixed. Aftcr such hearing the Tax Admin,strator shall deternino thc PID per tax to be le- mittcd and shall thcrcaftcr give written notlce to the Persm ln the manner prescribed herein of such determination and thc alroltnt of such tax, lnterest and penalties, The amotrnt determi ned to be due shall be PaYsble after flfteen (15) days unless an appeal is taken as prov lded in Section 10. Sect i on 10. APPEAL: Any op€rator aggrieved by any decislon of thr Tax Adninistretor with respect to thc rmount of such tax, lntcrest and penalties, lf any, qray aPPeal to the Tov'rn Council by flllng a notice of aPPcal with the Tovm Clerk vrithin flftcen (15) aays of the servlng or maillng of thc detcfinination of tax due. The Town Counclt shall fix a timc and ptacc for hcarlng such aPPcal, and the Torm Clerk shall glve notice in vrriting to such opcrator at hls last known place of address, The flndlngs of the Tourn Council shall be final and conclusive and 9h8ll be served uPon the app&nt ln the manner preseribad above for servlcecof noticG of hearing. Any amount found to be due shall be imedlately due and payable upon thc servlsc of notice. Sectlon I l. RECoRDS: It shall be the duty of every operator I iable for thc collection and payment to thE Town of any tax lnposed by this ordinance to kceP and prcscrva, for a period of three (3) y."rs, all records as nray be necessary to determine the arDunt of such tax as he may have been I lablc for the collection of and payrncnt to the Tor,n, wtrich records the Tax Administlator shall havc thc rlght to inspect at.ll reasonable times. Scct i on 12. REFUT{0S? .. ) (a) t{henevcr the amount of any tax' interest or Penalty has been overpaid, or paid more than once, or has becn erroneously or illegally collected or reccived by th. Town under thls 0rdlnance, it may b€ rcfund- ed as provided In sub-paragraphs (b) and (c) of this Scctim Pro/ld.d a claim in l,rriting therefor, statlng under penalty of perjury th. speciflc grarnds upon wtr lch the clalm is founded, is flled wlth the Tax Adminis- trator vrithin thrcc (3) years of the date of payrcnt. The claim shall : be on forms furnished by the Tax Administrator. (b) An opcrator may claim a refund or take as credit against taxes collected and rerni tted thG amount overpaid, paid more than once, or erroneously or lllegally collected or recelved, hen it ls establish- ed in a manner pras€rlbcd by the Tax Admlnlstrator that the person from rhqn the tax has bccn collected was not a transicnt; provided' however, that nelther a refund nor a crcdit shall bc allorEd unless the amount of the tax so collected has either bEen refunded to thc transient or credlt- cd to rent subsequcntly payable by the translent to the operator. (c) A transient may obtain a refund of taxes overpaid or paid morc than once, or erroneously or lllegolly collected or recelved by the T6nr by filing a clair in the rnanner provlded in sub-paragraph (a) of this Section, but only when thc tax rras paid by the translent direct- ly to the Tax Administrator, or whan ths transient havlng pald thr tax to the operator, cstabl ishes to thG satisfaction of the Tax Administrator that the transicnt has been unable to obtaln a refund frcn the opcrrtor who col lect.d the tax. (d) l{o refund shall be pald undcr the provlslons of this sectton unless tha claimant cstablishes hls rlght th.rcto by wrltten records showlng ent i tlsn€nt thereto. S.ction lr. ACT|0ll5 T0 C0LLECT: Any tax r6qu I red to be paid by any translent under the provlslons of this ordinan€r shall be deemed to bc a debt oitd by the translent to the Town. Any srrch tax collected by an oporator whlch has not been paid to the Town shall be deemed a debt e,ed by the operator to the Torn, Any pcrson owing money to thc Town under the provislons of this ordinance shall b€ liable to an actlon brought ln the n rE of the Town of [.os Gatos for the recorery of such amount. Sectlon 14. SEPARATE FUNDI D ISBURSEHENTS: Alt taxes, interest and Pcnaltles collectcd or rece i ved bY the Tax Adminlstrator pursuant to thls ordinanse shall be kePt in a separate fund. 0isbursements fron said fund shall only be made for any one or more of thc follovrlng purposes, in the dlscretlon of the Tonn Councll, and for no other purpose or purposes; thc costs of administering the Provisions of this Ordlnance; tovm beautlfication; cqlmunity Promotion, and cultural develoPnrnt. Sect i on 15. Vl0lATt0l{S; Xl SDET1EANoR ! Any person violsting any of the provlslons of thls ordinance shall be guilty of a nisdemeanor and shall be punishable therefor by a finc of not more than f ive hundred doltars ($IOO.OO;, or by lmprlsonment in the county jait for a period of not more than slx months, or by both such f ine and imprison- nent. Any operator or other Person Hho fails or rcfuses to reglst€r as requlred hercin, or to furnish any return regulred to be tnade, or u5o fails or refuses to furnish I sppplenental return or othcr data requircd by the Tax Adninistrator' or rho rendars a false or fraudulent return or claim, is gullty of a mls- demeanor, and ls punishable as aforesaid. Any Person requlred to make, rendeg, slgn or vcrify any rePort or clalm r',ho makes any false or fraudulent rcPort or clalm vrith intent to dcfeat or evade th€ dctennination of any amount due required by this ordinsncc to b6 made, ls gullty of a mlsderpanor and ls punlshablc as aforesa ld. SCCI iON I6. SEVEMBI LITY: lf any scction, sub-g€ction, sub-dlvlsion, paragraph, sentence, clausc or phrase of thls Ordlnance, or any Part th€reof, is for any raason hold to be unconstitutional , such daclslon shalt not affcct the valid.lty of the remainlng portions of this OrdinancG orany P6rt thereof ' The Tonn Councll hereby de- clarEs that lt vrould have passed each sectlon, sub-s€ction' subdivislon' paragraph, sentence' clause or Phrase thereof, irresPcctive of thc fact that any one or more sectlons, 5ub-sections, sub-divislons, paragraphs, sentences, clauses or phrases ba daclared unconstltutional. Section 17. EFFEcTIvE DATE; PUBL|cATloil: This 0rdlnance shall be effective thirty (30) days from and aftcr thc date of its pssssge, and Prior to the expiratlon of fiftaen (15) days after its p.ssag8 ;t shalt be publishcd once with the names of the mcmbers voting for and lgainst thc Samc in the Los Gatos Tlnes-Saratoga 0bserver, a neu6- paper pubt ished and circulated yrithin the Tovrn of Los Gatos. I NTRoDUCED at a continued regular nseting of the Totrn Council of the Town of Los Gatos on the 22nd dav of llEy, l*7. PASSED Al{D ADOPTEO AT A --' reoular meet i ng of the Town Council of the Town of Los Grtos on the 1967, bv the follouing vote: 5th day of AYES;COUNC ILI.IEN:Charles E. DcF re itas John D. ltichaelsen Egon Jensen NOES:couNc I LHEII: AESENT:couNcILt'rEN: JqE !i!!9]1 June ATTEST: Roland Perry oRDIrArscE tlo- 996 AIg ORDISANCE OF TEE TOI{![ OP IOS GATOS Al,[ENDIre ORDTEAIICE rlo - 911" R&LATItre fo i EolE -uoTEL 1[N(, SO AS rO IISqREASE EEE RATE TEEREOP, AND TO DELBTE E'EMPTIONS rEE TOIgtr COIJECII. OE TEB T€MN OF I,oS GAIOS ORDAIIIS AS POLIOI{S: SECtsIOIi 1. Increase In Rate: Section 3 of Ordinance 9J.1, entitled rAI1 rofdinance, of the lForn'n of Los catos Imposing a Iax Irpon the Privilege of 1tansient Occupancy and Providing for the Collection fbereof", adopted by the Toh.n Council of the Town of Ios Gatos on afune 5, 1967, is hereby amended so as to increase the tax imposed therein from four per cent (4%) on the rent charged by the operator to iive per cent (5%) on the rent charged by the operator. SECfIOII 2. Deletion of E(emptj-on: Secti.on 4 of sald Ordinance 911 is herelry alel-eted frora said Ordinance. Sr,CTIOIS 3. Effective Date, publication: (his Ordinance shall take effect afu ly 1, 1968, and prior to the e:rpiration of fifteen (15) days after its passage it sha1l be publisbed once. with the names of the merEbers voting for and against the same, in the Lros Gatos fj-mes-Saratoga Observer, a newspaper pubU-shed and circulatetl within the Town of Los Gatrs- PASSED AND ADOPTED at a regular meeting of the Eown Council of the fl,wn of I,os catos held on June 17, 1968, by tbe following vote! EXHIBIl'(' A'!GS: Councilmen NOES:Councilnen .ABSENr : Counci-lmen Seymour J. Ab raharns Charles E. DeF re i tas Eqon Jenseri Ro I and H, Perty John D, Hichaelsen None AfEEST: -2- oRDTNANCE No. . l?89 ORDINANCE AUENDING THE TRANS IENT OCCUPANCY TAX OT TEE TOWN OF IOS GAIOS THE TOWN COUNCIL OF TEE TOWII OF tOS GATOS DOES ORDAIN: SECTION ].. Section 28-18 of the Code of the Town of Los catos is amenaleal to read: SEC. 28-I.8: TAX IUPOSED, $II{EN PAYABLE. Fo! the privilege of occupancy in any hotel, each transient is eubject to and 6ha11 pay a tax in the amount of six percent of the rent charged by the opera- tor. Such tax conatitutes a debt ot fea fy the tlansient to the Town, which is extinguiehed only by payment to the operator or to the Town. The transient sha11 pay the tax to the operator of the hotel at the tjrle the rent l-s paidl. If the rent is paid in Lnstalments, a proportionate share of the tax shal1 be paid with each instalnent. The unpaid tax shall be due upon the transientrE ceasing to occupy space in the hotel . If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax sha1l be paial directly to the tax administrator. SECTION 2. This ordinance shall be operative as of Aprj.l 1, L976. this ordinance shaLL take effect antl sha11 be in force thirty (30) days after the date of its adoption. The Town Clerk of the -1- t_\]illil l'l) Town of Los Gatos shall cause thiE ordinance to be publighed once wit-Irin fifteen (15) dayE after its aaloption. in the Los Gatos Times-Saratoga Obeerver, a neivspape! of general circulation, pr:blished and circulated in tle Town of Los Gatos. lFhe above and foregoing ordinance was cluly and regnrlarly intloduced at a regrula! meeting of the To\'rn Council of the To\fii of IJos Gatos held on qls 2nd day of , 1976. PAssED At{D ADoPTED as an orilinance of t}te Toen of Los Gatoa, California, at a regular meeting of ttre To\'rn council, held on ttre | 7th day of Feb rua ry , 1976. AYES:COUNCIL MEMBERS Ruth Cannon ark B. D iDuca John B, Loch ne r A I bert 8. Smith Egon Jensen NOES:COUNCII, MEMBERS ABSENT: COITNCIL MEMBERS None SIGNED: -2- None ORDINANCE NO. -116.2 .. -. ORDIMNCE OF THT TOWN OT LOS CNATOS AT.,IENDING THE TMNSIENT OCCUPANCY TAx THE TOI{N COT'NCIL OF TIIE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION 1. Section 28-18 of Ehe Code of the Torvn o.f, Los Gatos ls amended to read : sEc. 38-18; IAx IMPOS-ED.; HflsN, PAYA3IE. For the prlvllege of occupancy in any hotel, each tranoient is subJect to and sha1l pay a cax in Ehe alnount of slx and one-half percent of the rent charged by the operato!. Such tax consritute8 a debt owed by the tranalent to the Town, wtrich is extinguished only hy payDent Eo the operator or to the Tolrn. The translent shall pay the tax to the operator of Ehe hoteL aE the tine Ehe rent ls paid. If the rent is paid ln lngtalLnents, a proportionate share of the Eax sha11 be paid with each lnstalLment. The unpaLd tax shaLl- be due upon the tranalenErs ceaelng to occupy epace in the hotel. If for any reaaon the tax due is not pald to the operator af the hotel, the Eax admlnigtreEor rnay require that such tax ehall be pald direct1y to the tax adminlstrator. SECTION 2. Thls ordinance becomes operatlve July 1, 1977. SECTION 3. Th1s ordLnance relates to taxes for the usual and current expenses of the Tovm, and is effecEive luredlately upon lts adoptlon, The Town {I /) -1- EXHIBIT E Clerk of the Town of Los Gatos shalL cauee this ordinance to be published once within fifteen .days af,ter its adoption, ln the Los Gatos Timee-Saratoga Observer, a newspaper of general circulation, published and circulatecl in che Town of Los Gatos. The above 6nd foregoing ordinance was duly and regularly introduced at a reguLar meetlng of the Town Council of the Town of Los Gatog held on the zoth day of June , 1,977 . PASSED AND ADOPTED as an ordinance of the Tovm of Los Gatos, Californla, at a regular neeting of the Town Council , held on the 5th day of July , t977. AYES;COUNCIL MEMBERS: Ruth Cennon; Mark B. DiDuca, Johh B, Lochder ahd Albert B. Snilth Hardi GualtieriNOES: ABSENT: COUNCIL MII'IBERS: COUNCIL ME}IBERS: SIGNED: ATTEST: -2- oRDINANCE N0. 1161-4 AN ORDII{AI{CE OF THE TOI.'I{ OF LOS GATOS AflENDING SECTIOfi 28.18 OF THE TOUN CODE REGARDING THE TRAIISIENT OCCUPAI{CY TAX. THE T0/N C0INCIL 0F THE TO'I{N 0F LOS GATOS 00ES ORDAIN AS FOLLOI{S: SECTION 1. Sectlon 28-18 of the Town Code ls amended to read as follows: SEC. 28-18. TM I}|P0SED: I{HEN PAYABLE. For the prlvi'lege of occupancy in any hotel , each transient is subiect to and shall pay a tax in the amunt of ten pertent of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the town' which is extinguished only by payEnt to the operator or to the town. The transient shall pay the tax to the operator of the hotet at the tinn the rent is paid' If the rent is paid ln installnents, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the translent's ceasing to occupy space in the hotel . If for any reason the tax due is not paid to the operator of the hotel , the tax administrator may require that such tax shall be paid dlrectly to the tax adninistrator. sEcTI0r{ 2. This ordinance shall take effect and shall be in force thirty days after the date of its adoption. Htthin l5 days after this ordinance is adopted, the Town Clerk shall cause it to be published once in a newspaper of general circulation published and circulated in the Town. EXHIBIT F This ordinance was introduced at a regular meeting of the Tovm Council of the Town of Los Gatos held on the 6th day of Decenber , 1982, and adopted by the following vote as an ordjnance of the Town of Los Gatos at a regular meting of the Tovm Council held on the lrd day of AYES: , I 983. C0UNCIL I{E}IBERS Joarure Bep.l8mln, Terrence J. Dal1y, fhomas J. Ferrito, UarI4yrI J. NOES : AESEI{T: ABSTAIN: January Raemusseo and lrsyor Brent N. Ventura C0U]{CIL I'IEI'IBERS None COUNCIL !..IEItsERS cout{cIL rfr,rBERs None SIGt{ED: ATTEST: -2- COUNTY OF SANTA CLARA REGISTRAR OF VOTERS ESTIMATED COST OF THREE GPAGE MEASURES FOR THE TOWN OF LOS GATOS NOVEMBER E, 2O1O GENERAL ELECTION OATA THREE 6-PAGE MEASURES Registration as of 01/0612016 17 ,492 P'oFcted Regislration (110% of cunent registration) 19,241 Est No. ot Sample Ballots Order (115% of cunent rsgistration) 21'000 ' Eslimaled No. of Voter's lnformation Pages (VlP) per llbasure 6 Estimated No. of Measuras 2 CO PUTANON FIXED COSTS Fixed cost per full-measurc page $ 5'165 Est No. of full page per measure Total esl rixed costs p€r moasure $ 30'990 Es{imatsd o. ol moasure Tolaltrcd costs of measure s 61'980 PRINTING COSTS Est number of sample ballots in English 21'000 Est numb€r of Votefs lnlormation Pages (VlP) per sample ballot '12 Toialest number of sample ballot pages in English 252'M LarEuage Factor 1.4 Est numbar of measure pages in the sampb ballot for all languages 352'8U) Est prinlir€ costs per page $ 0.0201 Totalest printing costs $ 7,091 TOTAL EST COSTS OF Vote/s lnformation Pages -I------9941L Estimated Cost per 6-page Measure S 34'540 Estimated Cost psr Measure Page I 5'760 NOTE: ESTIMATED INFORMATION PAGES 1. Text of the lnitiauve 2. lmpartial analysis of County Counsel 3. Argument in Favor 4. Argument Against 5. Rsbuttal to Argument in Favor 6. Rebuttal to Argumenl Against ATTACHMENI'7 8 a . i 't 3 9: iE .d;tc iE ci 99 -a=eE <!ci ae !E !n!t i$!i.Et .E!il€ll iEl E3 9 r-l E! Ig 'E!! t9iE --!EE 3t -+. - =a! s r:rJ.! :e*i ii!! 5 _.nEei ^iIE! E! ,ezi !i E Ei EEt;ii t;li t" 3 Ei g E Eg a :- 3 t. I! I E 3 I 5 R 88* E.to- a 8= E E g 8_3.fi I _tE I II d a9 3E Ei8* ii80 .EF'd9E3eE t FEg5C 2 oE rqE t EEei :dg:b59: BPA;lHif r389; 3 :3Ei E E :l sit sli rl;:t iig; i:;l iill!Eii; RESOLUTION 1995 - 161 RESOLUTION OT'THE TOWI! COUNCIL OF THE TOWN OF LOS GATOS CALLING A SPECIAL MUNICIPAL ELECTION TO BE Hf,LD IN THE TOVfl\I ON MARCH 26, 1996; ORDERING TIIE SLJBMISSION OF A MEASURE REGARDING A UTILITY USERS TAX TO THE VOTERS; DETERMIMNG THE QI,]ESTION TO BE, SI,'BMITIED TO THE VOTERS REGARDING THE UTILITY USERS TAX; REQUESTING TITE SERVICES OF THE COIJNTY REGISTRAR OF VOTERS; REQUESTING THE COI,]NTY BOARD OF SUPERVISORS TO PERMIT CONSOLIDATION OF TIIE SPECIAL MT]NICIPAL ELECTION WITH TIIE STATEWIDE DIRECT PRIMARY ELECTION; SPECIFYING CERTAIN PROCEDURES FOR TIIE CONDUCT OF THE SPECIAL MUMCIPAL ELECTION; AND PROVIDING FOR GIVING NOTICE OF THE SPECIAL MI,]NICIPAL ELECTION WHEREAS, the Town Council of the Town of Los Gatos wishes to submit a utility users tax to the voters of the Town for approval pursuant to Elections Code $ 9222 and Government Code $$ 53723 and 53724; utd WHEREAS, Exhibit A hereto is the exact form of the question to be voted on at the special election, as it is to appear on the ballot; and WIIER.EAS, Exhibit B hereto is the proposed ordinance for submission to the voters as it would appear in the ballot pamphlet; and WHEREAS, the earliest and most cost-effective election at which the voters might consider this tax would be on March 26, 1996, which is the statewide direct primary election and a general election in the State; and WHEREAS, pursuant to Section 10403 of the Electioas Code, a special Town election may be consolidated with such a general election; and WHEREAS, tbis Resolurion has been adopted by at least a two-thirds vote of all members of the Town Council, ATTACHilTENT 8 NOW, TIIEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los Gatos: l. Pusuant to Elections Code $ I 2001, a special municipal election is hercby ordered and called to be held in and for the Town of Los Gatos on Tuesday, March 26, I 996. The question to be submiued to the voters at that election as it is to be stated on the ballot is contained in Exhibit A hereto, and the text of the measure being voled oD iD that question is contained in Exhibit B hereto. 2. The proposed utility users tax would be at the rate of two pctcent (2%) on specified utility sewices, collected by the providers ofthe utility sewices as part oftheir regular billings, and be used for general government purposes of the Town. 3. Pursuant to Elections Code $ 10002, the Town Council hereby requests the Board of Supervisors ofthe County of Santa Clara to make available the services of the County Registrar of Voters for the purpose of performing the usual services necessary in the conduct of a consotidated election, including provision ofelection supplies and voters' pamphlets. 4. Pursuant to Elections Code $$ 10400, 10402, and 10403, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to co$ent to and order lhe consolidation of the special municipal election to be conducted within the boundaries ofthe Town of Los Gatos on March 26, 1996, with the statewide direct primary election to be conducted on that dare, which the Board of Supervisors has the power to order. The Town Council fiuther consents to and orders the consolidation ofthe special municipal election with the statewide direct primary election. Upon consolidatio& the consolidated election shall be held and conducted, election officers appointed, voting pecincts designated, ballots printed, polls opened at 7:00 a.m. and closed at 8:00 p.m., ballots counted aad returned, retums canvassed, and all other proceedings in connection with the election regulared and done by the Registrar of Voters of Sanla Clara County in accordance with the provisions of law rcgulating lhe elections so consolidated. 5. The Town Clerk is hereby authorized and directed to publish a notice of the special municipal election and notice of measue to be voted on within the time and in the manner specified in Elections Code $$ 12109, l2l10, and l2l la(a) and (b). The Town Clerk is further authorized and directed to do all other things rcquired by law to conduct the election. 6. Pursuant 10 Govenrment Code $$ 982 and 9286, the Town Clerk is firther authorized and directed to establish and publish lhe last date for submittal of arguments for and against the measure; select the argument for and rhe argtrment agaiDst the measure to be printed and distributed to the voters as sel forth in Election Code $ 9287; anable preparation and submittal of rebuttal arguments as ser forth in Elections Code $ 9285. The Town Corurcil hereby adopts the provisions ofElections Code $ 9285(a) with regard to rebutlal srguments. 7. The Town Clerk is hereby authorized and dilected to transmit a copy of the proposed measure to the Town Attorney. The Town Attomey is hereby authorized aod dirccted to draft an impartial summary in accordance with Eleaions Code $ 9280 and to submit that to the Town Clerk for tran^smittal to the Registrar of Voters no later than the last date for subnrittal of arguments for and against the measurc. 8. The Town Clerk is hercby authorized and directed to cer$ry to rhe adoption of this rcsolution and to transmit a certified copy of the resolution to the Board of Supervisors of the County of Santa Clara and to the Registrar of Voters of the County of Santa Clara. PASSED AND ADOPTED at a rcgular meeting of the Town Coucil of the Town of Los Gatos, Califomi4 held on the 20th day of November, 1995 by the following vote. COTJNCIL MEMBERS: Joanne BenjamirL Steven Blanto4 Linda Lubeck, Patrick O't-aughlfuL Mayor Randy Attarray. None None None AYES: NAYS: ABSENT: ABSTAIN: LOS GATOS, CALIFORNIA YOR EXHIBITA TOWN OF LOS GATOS MEASURE- Shall the ordinance anrending the Town Code to impose a two percenr (2%) utility users tax on users of specified utility sewices within the Town of Los Gatos for a period of five (5) years be adopted? A-l EXHIBITB Measurc _: Terr of Proposed ffiinance This ordinance is proposed by the Town Council of the Town oflos Gatos and imposes a two percent (27o) utility users tax on specified utility services with an automatic sunset clause in five (S) years. PROPOSED ORDINANCE THE PEOPLE OF THE TOWN OF LOS GATOS DO ORDAIN AS FOLLOWS: SECTION I. A new section 25-50.005 is added as follows: Sec.25.S0.005 Tarlmposed (a) There is hereby established and imposed, commencing June I, 1996, a utility users tax as follows: (l) Telephone users tax. Upon every pe6on in the Town, other than a telephone corporation, using intrastate telephone communication services in the Town at a rate of two p€rcent (2olo) ofthe charges made for such serviccs, which ax shall be paid by the person paying for such scrvices. (2) Electrical energy users tax Upon every person in the Tow& other than an electrical corporation or a gas corporatio& using eleclrical energy in the Town at a rate of two percent (2%) of the charges made for such energy, including minimum charges for such services, which tax sheu be paid by the person paying for zuch energy. (3) Gas users tax. Upon every person in thc Town, other than a gas corporation or atr B-l electrical corporation" using gas in the Town which is delivered through mains or pipes, at a rate of rwo percent (2%) of the charges made for such gas, including minioum charges for such services, which tax shall be paid by the person paying for such gas. (4) Water users tax. Upon every person in the Town, 601s1rhen 1 w61s1 corporatioq using water in the Town which is delivered through mains or pipes, at a rate of two percent (2%) ofthe charges made for such waler, which tax shall be paid by the person paying for such water. (5) Cable television users tar Upon every person in the Town using cable television services in the Town at a rate of two percent (2%) ofthe charges made for such serviccs, which tax shall be paid by the person paying for such service. (b) This tax shall be used for the general govemmental purposes of the Town. SECTION II A new section 25.50.010 is added as follows: Sec" 25.50.010 Duty to cdlect: time to begin The duty to collect from a user shall commence with the begirming of the first regular billing period applicEble to the person which starts on or after Jrne I , 1996. SECTION III A new section 25.50.012 is ad&d as follows: Sec.25.50.012 Sunset This ordinance sball expirc by operation of law for purposcs of taxes on any utility service in any regular billing period beginning on or afler June l, 2001. Following tlut date, this ordinance shall only be effective for purposes ofcollecting and disbursing taxes imPosed on utility services provided before that date. B-2 SECTION IV This ordinance shall be considered adopted on the date that the Town Council declares the vote, and shall go into effect ten (10) days thereafter. NISHARE\UTILRESO-CNL B-3 RESOLUTION 1996 - 56 RESOLUTION OF TIIE TOWN OF LOS GATOS DECLARING ELECTION RESULTS OF TTTE SPECIAL MUMCIPAL ELECTION OF MARCH 26,1996 WHEREAS, a Special Municipal Election was held in the Town of Los Gatos on Tuesday, the 26th day of March 1996, and was conducted in form and manner as required by the law of the State of California goveming the elections of General Law Cities and, WIIEREAS, Dwight M. Beattie, Registsar of Voters of Santa Clara Cormty has declared that at the Primary Election held on March 26, 1996, and consoli&ted therewith, a Special Municipal Election was held in the TowN oF Los GATOS for the purpose of passing Measure 'c' utility Users Tax and, WHEREAS, the results of said Election were canvassed by the Office of the Sana Clara County Registrar ofVoters in accordance with applicable provisions ofthe Califomia Election Code and, WIIEREAS, the Statement of Votes Cast, attached to the Certification, shows the whole number ofvotes cast for Measure "C" in said Town and in each of the respective precincts and, wHEREAS, the total number of rcgistered voters was 18,760 and the total mrmber of votes cast was 9,386 including absentee ballots for MEASI'RE TCII UI'ILITY USERS TAX That the measure voted for, the number of votes received in each of said precincts, together with absentee votes, together with the whole number of votes which were received in the entire Town of Los Gatos are as follows: 1^7 /96 550 /tEslo€l{Ttlt PRITARY fLEcTrfi. utctr 26, tgr 039 royil 0F tos 6 tos - xElStRt c T Ut T 0 U T c .UI Lt 0t- SII6l ATIY0Ac$t I o -3 11. 35. 3l a7--T7 ?,-tr37 4{-PCl l5-PC1 31.3r,--i7 17-fi3' J/50-tLt?{t -Pc 375?-PCr753-pC 3755- 3r56- 3/5r - 3758- 3751t7q8 J/b{r-ru3r6{-pc 373' 3t 31 3779-PCr 3779 5{!tE5 33.9 9Z EI AE5LIiI tt, IO GNAID TOTAI At- s 13. 50 NOW TIIEREFORE BE IT RESOLVED, tl,ar I, Marian v. cosgrove, duly elected clerk of the Town ofLos Gatos hereby certifu the special election for: MEASURE ''C'' UTILITY USERS TAX RESOLVE FIIRTIIE& that &e Clerk shall enler upon the records of this Council the results of said Special Municipal Election. PASSED AND ADOPTED at a regular mceting of the Town Council of the Town of Los Gatos, Califomia, held on the 6th day of May, 1996 by the following vote; COI.INCIL I,IEMBERS: AYES: NAYS: ABSENT: ABSTAIN: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, Mayor Randy Attaway None None None GATOS ATTEST: " ,'i .-, \-,'14rt.+'.'-),: ;..t (lptt{ i'i - ) CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA sTGNED 6V4 MAYoRoF&6r LOS GATOS, ORDINANCE 2OO7 AN ORDINANCE OF'TIIE TOWN OFLOS GATOS SUSPENDING OPERATION OT'ARTICLE V' CHAPTER 25 (UTILTTY USERS TAE OF'THE TOWN CODE AND AMENDING CIIAPTER 25 TO PROVIDE TEE ADMIMSTRATIVE FRAMEWORK F'OR A UTILITY USERS TAX IF'APPROVED BY TEE VOTERS OF TIIE TOWN TIIE TOWN COI]NCIL O['TIM TOWN OF LOS GATOS DOES ORDAIN AS F'OLLOWS: SECTION I The California Supreme Court in its decision in ,Sanls Cl*a County Local Tlansportafion Afihority vs. Gamdino deletmined that Proposition 62 adopted by the voters of the Stafe of Califomia in 1986 is constitutional and therefore imposes upon all local agencies, including lhe Town oflos Gatos, the requirement that before any new tax, \ryhether sp€cial or general, can be imposed, the Town council must submit that tax to the voters ofthe Town for approval. This ordinance is intendcd to suspend operatioo of Article v, chaptel 25 of the Town Code, Utility Users Tax, uutil the voters of the Town approve such a tax or the Gtardiao case is reversed or otherwise det€rmined not to require submission ofthe utility users tax adopted in Ordinance No. 2001 to the voters. This ordinance is furttrer intended to realign the provisions of Chaptrr 25, so that should the voters aPprove the utility users tax, the adminishative provisions will be in place for prompt and efficient application of the tax' SECTION II Until such time as the voters of tle Town oflos Gatos approve a utilig users tax or the Guardino case is reversed ot otherwise determined not to rcquirc submission ofthe utility users tax adopted in Ordinance No. 2001 to the voters, the provisions ofArticle V, Chapter 25 are suspended. SECTION III Ifthe voters ofthe Town ofLos Gatos approve the utility users tax proposed in Resolution No. 1995-161 at the special municipal election on March 26, 1996, the following sections are repealed: Section 25.50.030 Section 25.50.035 Section 25.50.M5 Section 25.50.055 Section 25.50.060 SECTION TV If the voters of the Town of Los Gatos ryprove the utility users tax proposed in 1995-161 at the special municipal election on March 26, 1996, Section 25.50.040 of the Town Code is amended to read: Soc. 25.50.M0 Electrical energr uEert tu As used in Section 25.50.005 of ihis ohap,ter, t re wordls rrusing electical enerry" shall not mea (a) The storage ofsuch energy by a person in a banery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received; provided, however, the term shall include the reoeiving of such energy for the purpose of using it in the charging of batteries; or (b) The receiving of such anergy by an elechical corporation or govemmental agency at a point within the Town for resale to service users. SECTION V Ifttre voters of the Town oflos Gatos approve the utility users tax proposed in Resolution No. 1995-161 at the special municipal elecfion on March 26, 1996, Section 25.50.050 of the Town Code is amended to read: Sec. 255).050 Gas users trr: Erclusiong As used in Section 25.50.005 ofthis article, the term "charges" shall not: (a) lnclude charges made for gas used in the generation ofelectrical energy by a public utility or a governmental agency; or (b) Be conshued to mean the receiving of such gas by a gas corporation or governmental agency at a point within t}e Town for resale to seryice users. SECTIONVI Ifthe voters ofthe Town oflos Gatos approve the utility users tax proposed in Resolution No. 1995-161at the special municipal election on March 26, 1996, Section 25.50.075(b) ofthe Town Code is anended to read: @) Where a person rec€ives more lhan one billiug, one or more being for different periods than anotho, the duty to collect shall arise separafely for each billing period. SECTION VII This ordinance was introduced at a regular meeting ofthe Town Counoil ofthe Town of Los Gatos on November 20, 1995, and adopted by the following vote as an ordinance ofthe Town oflos Gatos at a regular meeting ofthe Town Council of the Town of Los Gatos on December 4, 1995 . This ordinance takes effect immediately. COIJNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: Joaane Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin Mayor Randy Attaway None None None sIGNED: 4*+@ MAYOR OF ffo rowN oF l6s GAros LOS GATOS, CALIFORNIA CLERK OF THE TOWN OF LOS LOS GATOS, CALIFORNIA 4 ATTEST: ORDINANCE 2OIO AN ORDINANCE OF T}IE TOWN OF LOS GATOS AMENDING CHAPTER25 TOAVOID ANY IMPLICITCONFLICTS INTHE TOWN CODE IF TI{E VOTERS APPROVE MEASURE C ON MARCH26,1996 TI{E TOWN COT]NCIL OF TTIE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I The Town Council adopted Ordinance No' 2007 on December 4, 1995, to suspend operation of the Town Code pmvisions regarding a utility users tax and to establish the administative tamework for the tax if it is approved by the voters on March 26, 1996. In order to avoid any potential conflict between suspended code sections and the ordinance that is proposed for voter approval, this ordinance is adopted. SECTION II If the voters ofthe Town of Ircs Gatos approve the utility usen tax ordinance proposed in Resolution No. 1995-161 at the special municipal election on March26,1996, Section 25'50.010 as it exists on the date ofadoption oftiis ordinmce is repealed, becarse a new section 25.50'010 is in the ordinance proposed to the voters that would replace it. SECTION III If the voters of the Town oflos Galos approve the utility users tax ordinance proposed in Resolution No. 1995-161at the special munioipal election on March 26, 196, Section 25.50.205 is repealed, because the ordinance being submitted to the voters establishes a new sunset date for the utility users tax. SECTION IV This ordinarrce was introduced at a regular meeting of the Town Council of the Town of Los Gatos on February 5, 1996 and adopted by tlre fotlowing vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on February 20, 1996. This ordinance takes effect immediately. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: Steven Blanoon None SIGNED: Joanne Benjamin, Linda hbeck, Patrick O'laughlin, Mayor Rady Attaway. None *n MAYOR &*IP,TOWN/OT LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF I.OS GATOS, CALIFORNIA TOWN OF I,OS GATOS C{,LIFORNIA TOWN COUNCT L/PARKING AUTHORITY June 5, 1995 Minutes TOWN COI.]NCIL T: Tq*n Council/Parking Authority of the Town of l-os Garos mer in rhe Council Chambersot the Town Hall, I l0 East Main stree6 at 7i3s p.m., Monday, June 5, 1995, in regular session. ROLL CALLPresent: Randy Anaway, Joanne Benjamin, Steven Blanton, Linda Lubeck and Mayor patrick O'Laughlin. Absent: None. PLEDGE OF ALLEGIANCE Given by all in attendance. CI,OSED SESSION [-arry Anderson, Town Attorney, reported 4at Council had met in Closed Session prior to this ,".]e]F-r- qg"tiig punrrant to Government Code Section 54956.9(a) ro oiscuss Findiig Lirigarionlfl ..991ry!ng Ruth Gettler v. Town of Los Gatos, eJ al., sanra Clara County supErior bourt731847. This concerns a.-sertlement agreement regarding a slip and rJr in iti oo*rtown area.Settlement details are still being nego-iiated. NATIONAL SKILLS OLYMPICS,/COMMENDATIONS (00.42) Mayor 9'Laughlin presented commendations from thL Town to the State Gold Medal Winnersof the National Skills Olympics. Aaron Baker, Meredith Harrington und Juron Feldt werepresent to receive their awards. The Mayor wished them well as th-ey advance to the NadonalFinals in Kansas City. SCHEDLJLE OF puBLrC HEARTNGS (01.01) Informational report regarding currently icheduled public hearings was received and filed. PLANNING C0MMISSI0N/PI"{,NNING DEPARTMENT MoNTrtLy srATUs REpoRT (02.47)lnformational repon regarding activity of Planning Commission and Department was receivedand filed. couNCrL CALENDAR OF MEETTNGS (03.10) Informational item presenting firture town'Meetings for Council and other Tow11 Boards andCommissions was received and filed. PAYBOLL RATTFTCATTON lMAy t99S (U.V) Motion by_ M_rs. Be4iamin, seconded !y Yry. LuUeck that Council ratiry rhe check register forthe.payroll -o{ ap4 ts t-h--ugl May 6; 1995 pai-d on May 12, 1995 and'for the payroli of May7 through_May 20, 1995 paid on'May 26,'1995 in rhe amounr of $431,2si..g6. carriedunanimously. TC: D7i Mt,1060595 -, o",.'.iLi'i"',lil ACCOT.JNTS PAYABLE/IATIFICATION/MAY 199s (05.v) Motion by Mrs. Benjamin, seconded by Mrs. Ilbeck, that Council ratify th^e accompanying check- registers'for accou-nts payable invoiies paid on May 19 and 26, 1995 in the amount of $386,851.68. Carried unanimously. MTNIJTES OF MAY 15, 1995 (06A.V)- -- Mofion by Mrs. Be4iamin, seconded by Mrs. I-ubech that Council approve the Minutes of May 15, 1995 ls submittid. iarried by a vote of 4 ayes. Mn. Benjamin abstained. MTNUTES OF MAY 22, t995 (06B-1.v) Motion by Mrs. Bedamin, seconded by Mrs. Lrbeclq that Council apProve the Minutes of May 22, 7995 as submitted. Carried unanimously. MINUTES OF MAY 23, l99S (0682.V) Motion by Mrs. Beajamin, seconde'd by Mrs. t-rbec\ that Council apProve the Minutes of May ?3, 194.5 as submitted. Carried unanimously' TTMTNG LIGHTS/FO\ilN COLTNCIL CHAMBEXS (09.28) The Town Manager pulled this item and will place it on a future agenda' CoMPUTEREQUIPMENT/MAPPINGABILITY/BUILDINGDEPARTMENT(10.28)..-- - Mo1io, Uy Mrs. Beqiamin, seconded by Mrs.-l,ubeck, that Council t_lansfer $3'100 from Non- ioiniiori.." Accouit (Office Suppliesi to Non-Point Source.(Capital) and approve transfer of three 286-based PCs to the NOVA Program. Carried unanimously' FILE CABINETS/rAB FILING SYSIEM/CLERK',S DEPARI\,ENT (1 1.28) . Motion by Mrs. Bedamin, seconded by Mn tlbegh that Council-authorize Iansfer in Clerk's b"p.nt"!"t Uraget of $Z,SOO 1o Qf6ie Suppliestom Benefits $3,090 and Capital Purchases $aitO for the pu-rchase of TAB filing cabinets. Carried unanimously' GEOGRAPHIC INFORMATION SYSIEM/TEMPORARY STAFT (12.06) This item was removed from the agenda by staff. AMICUS/EHRLICH/CITY OF CULVER CITY (134.01) - -Motion by Mrs. ilettamin, seconded hy Mrs. ilbeck, that Council approve amicus paniciparion i, -itrfi"fr v. City oi Culver City, California Supreme Court 5033642, at no cost to the Town. Carried unaaimouslY. AMrCUS,/BEHRENS/PELLETIER(138.91) _ .- _- Irroiio" tv Mrs. flenia;;, ii*,ia"o by Mrs. hbeck that Council approve amicus particiPation l, -Sihrifu v. pellitier, Unitea Stat6s Supreme Court, at no cost to the Town. Carried unanimously. AMICUS/CALIFoRNIABEVERAGERETAILERS/CITYoFoAKI'.{ND(13C.01)- fvfotio, by Mrs. Beajamin, siconded by Mn. l-,ubeck, that CouDcil approveamicus participation in Califonnia Beverige Ritailers v. Ciiy of Oakland, Ffust District Court of Appeals, at no oost to the Town. Carried unanimouslY. TC: 07: MiI060595 June 5, 1995 [-os Galos, California CAPITAL TMPRoVEMEN? pRocRAM 199S-2000/RESoLUTION 1995-59 ( 1 4.06) Y9l1gl blJl.: -B:Tfg,l,_.".91a:g gy pr'l Lubeck, ir,Jc"r,.ir-Jqli n"".l,r,,ionentitled, IMPROVEMENT PROGRAM. Car-- unanimorstf, MARI L_TNDER/ASSTSTANT TOWN MANAGER/COMMENDED/RESOLUTTON tsss-6o (15.42) YiPi bllYl:-Bjtl^Til,_.".91d9! !yi,rrs. tubectq that Cduncil ,aopr n"rorution 1995-60endtled, MANAGER Carriedunanimously. ocs.rEcHNOr,ocIEs/cHANGE ORDER 2BIRESOLUTTON 1995-61 (16.28) Mofi.on b1!Ir9, ledamjn yqnded by Mrs. Labeck, that councir idopthesorution 1995-6r::111:t_ irrruc'riiii rowN TECHNOLOGIES. INC. HEWLETT p.AC-[ARg/SIJppoRT SERVTCES/RESOLUTT oN tsgs-62 (17.28) M9!':n. uv-Iry.-!:rrJll-i", segqnded by Mrs. Lr:beck, that council adopt'Resolution 1995-62entitled, SERVICES. Carried unanimously. SANTA CLARA COLNTY CITIES ASSOCIA Motion by Mrs. Benjamin, seconded TION- By-r-aws/REsoLUTroN l99s-63 (18. 17) Mrs. Lubeck, that Council adopt Resolution 1995-63entitled, SANTI gRU.z {yE ry 662lRgM pRopERTrEs/RENTALs/REsoLUTroN ]rsss_64 (ls.w) Molton b1lvrr9. !9damln, seconded by Mrs. Lubeck, ihat Council adopt Resoluiio, iggs-aqgltiqld, FEsoLUfloN oF II{E TbWN OF rds GATOS GRANTTNG AppEAL oF CALIFORNIA CITIES. Carried unanimously. l=lqNIlYG coMMIssIoN DECISIoN ro DEr.'ryA REouEm sUB.lEcT Io CoxUTroNs, coNomtoNll uSr prRrriirM unanjmously. sANrA ROSA HETGHTS/TRACT E400/OPEN SPACE MATNIENANCE DISTRTCTAD VATiREM ASSESSMENT RAIE/RESOLUTTON 1995-6s (20.14) Molion b1l!rs. Benjamin, seconded try Mrs. Lubec\ that'Council adopt Resolution entitled, SPEgIAL ASSESSMENT rN OPEN SPACE MATNTENANCE DISTRTSI #A unanimously. TC:D7: MNt0@595 Carried VASONA HILLS/TRACT 8280/OPEN SPACE MAINTENANCE DISTR]CT As VALoREM issessN{Bt{T RArE/REsoLLrrIoN 1995-56 (2 l. 1 4 ) Motion by Mrs. Beqiamin, seconded by Mrs. Lubeck", that Council lgopLrysoltign entitled, ITESOLIJTION OF ITIE TOWN OI- LOS GA,I'OS LT,VYING THE A|, SPECIAL ASSESSI\,IENT IN OPEN SPACE MAINTENANCE DISTRICT #3. June 5, 1995 I-os Gatos, California Carried unanimously. VERBAL COMMT'NICATIONS There was no one from the audience to speak on issues not on the agenda. HEARINGS BRUSH ABATEMENT/PLIBLIC NUISANCE/RESOLUTTON 1995-67 (22.26) - Mayor O'I-aughlin srated that this was the time and place duly. noted for public hearing to consider the ibatement of brush which has been declared a public nuisance. The following person from the audience spoke to this issue: Hlmanshu Viiihnav, 16050 Greenridge Tirrace, claimed his brush held the earth in-place aod was needed close to his home due t6 the slope of his property. Staff and Central Fire will mntact 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. Lubec! seconded by Mr. O'hughlin, that Council adopt Resolution 1995-67 "nttol"d' fosoLffiIoN or rgE roinN or Los clros ouEnnultNc oEtEc,ttoNs nxu onop(ffisn As,l pugl-tc NUISANcF- carried unanimously. LIILITY USERS TAX/GAS, ELECIB.IC, TELEPHONE, CABLE, WATT'R(?1?'05) . Mayor O'Laughlin stated that this was the time and-place^ truly .noted for public hearing to conside. reintioduction of amended ordinance to establish a 2/o \tility wers tax on gas, electric, telephone, cable and water. Comments from the Town Managen Mr. Knapp gave a slide presentati-on of an overview of the information gqnered from the Town's Commuiiry-financial Forums held last summer and the realities of the financial bind placed uDon the Town by the State and County. Comparison of revenues and expenditures was made. ii.," f"ig"ir factdr in our current fiscil crisis'is the State take away program. The lack of s,rfficien"t 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 balan-ced during these severe revenue shorifalls. Staff has been reduced abottt 25Va in the last four years. b.p".t."ntr have been consolidated. Outside contracting is taking place. - Automation has tatn the place of additional staff and has improved service levels. Analysis-of property tax and sales tax ievenues was made as the State his taken back more of these funds. Commercial development is limited in the boundaries of Los Gatos. The large spaces for viable development TC:07:MM060595 i995-66 June 5, 1995 l-os Gatos, California HEARINGS CONTINUED TJTILITY TAX CONT. Managef s Comments continuedt are nol on the market at the pr€sent time but could generate revenues if effectually used. TheTory1 an!.99amunity review ill potential developme"nt wirh lhe view rhar it shouil e*rance rhequaltty ot lile ,or l-os Gatos. One of the local taxes and revenue which the Town keeps for itsown needs and which the State is unable to take away is the transient occupancly tax. fhe orher *iot.lo""l revenue suPpon which-the community nis futt iu;soiction ouei ii "'rrility u..r, r*.lhe.cltlzens who participated in the financial forums requested present levels ofiervice becontinued and quality of life remain stable. Of all revenue sourcei considered the utility userstax was considered the most feasible and conlrollable for the needs of our local muni<iipality.The charm of the total community was considered of primary imponance ,nd " ,on obtrusiverevenue source was the one cbosen by the majority of the financial forum participants. Question from Mrs. I-ubeck:_why docs this proposal nor have to go ro the people for a vote?Answer from Mr. Anderso4 Town Attomey: -Prop 13, an amendmint to tbistaie constitution, capped- property as-sessments and required a 2/3 iote of the people on any special local tares.Taxes for general fund and operating.expense purposes have'no iestrictioris ilaced upon themand do not have to be placed on a billot. Thosi rivenues which may remain'completlty withinour own community and go into the general fund are transient occupincy taxes, buiiness licence taxes, transfer taxes, assessment districts and utility taxes, and they do n-or require a vote of thepeople. The following people from the audience spoke to this issue:Bill Quigley, 103 Belridge Drive, spoke foi the tax with a five year sunset clause and noted theloans on the manager's and police chiefs homes. Jo Bartlelt, 166 oak Hill way, asked for a five year sunser clause and a special election.Ann Holley, 116 Hilow Court, urged Council adoption of rhe ordinance and the elimination ofthe special election. rvilbJr 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 rhe various telephone services have different rates, and charges fbr the utility tax will vary on the parl oftown one lives in. Rick Nelsic\ 340 Bella Vist4 commended staff on the look of the Town especially afrer rhemany visitors this weekend. Opposes the tax but if there must be a revenui source a sunselutility tax is besr. lnthony McKeon, 116 Sierra Linda, supports the 2Vo utility tax wirh a five year sunset clause. Spoke about the need to repair rhe infiastructure. D-ale Hill, 150 Robin Way, spoke against the vote due to the cost of an election and lhe amountof resources that will be expended in campaigning for this election. Expressly noted thal theTown has. made every effortlo notiry and in-clude the citizens in the process to iienti$ and solveits financial crisis. She asked that Council take a stand and pass tire ordinance now.Robert wales, 101 casa Grande, asked for an election on tiris issue and was in favor of the sunset clause. TC: 07: M[rO6OSgs June 5, 1995 Los Gatos, California HEARINGS CONTINUED UTILITY TAX CONT. Speakers continued! B'goo Jurr"o, 182 lrster l:ne, spoke of -developmenl and fees. He submitted a letter for lhe reiord with iuggestions for cost iavings. He would.prefer an election' Ga lustin, tfrq7 Easwiew Drive, o-pposes the utility tax and prefers an election. Spoke of downsizing to save and asked for alternatives to the tax' iui.l.v ii.a..*n, Antiquariuo, 98 W. Main St., spoke for the town employees and supported adoption of the ordinance without an elec,tion. X"fia i.Uy, 18400 Overlook Road #9, representing the Irague of Women Voters, supported the irdinanie and did not wish to see the expense of an election' il;;nfi;, ij+OO Wi"ct"rter Blvd., spoke of economy in the budget and is not in favor of the utility ta(. Supports an election' iliil i.+irro", Z+j Vlsta de Sierra, asked that the budget be cut and the utility tax go to the people for a vote. Supports a five y93r sunset clarse' itl"il.ne l.amb, 105 Arroyo Grandi Way, asked that economies be taken' lfi"n f."iti", Sr.,76 Alp'ine Ave., preferred an -election and a sunset clause on the utility tax'-["[fr fltg"i"fa, t+SOg'targa Visti Orive, preferred a sunset clause and an election. IArs. Xata;, 108 Auzerias iourt, spoke in iavor of living within a strict budget, placing the question of a utiliry tax on the ballot and having a sunset clause' it"."in S.iUt, ZZi ytaza t: Pasada, spoke against the tax and for an election. fvfif..,C,tko, 722 El Olivla1 spoke of ih6 promft need for the ordinance adoption so as to infirse the infrastructure with some'immediate funds. The deterioration is beginning to multiply upon itself and needs to be altended to now' iiu.t L.ons, S+ 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. Joi n".g.ti, g5 church street, is in favor of the utility.tax as..an er,lerg]enq mea{ure ro offset the imm;diate infrastructure needs of the Town. Need to relieve the llsqll cnsls. Mary Ktoet, 229 Wilder Ave., spoke for an election on this issue' J* iG;;[, :so roi -catii'shd., spoke in favor of immediate adoption of the tax and i.qr.ii"i ,t ii the Town and Councii c6rrect the misinformation that is in circulation.-C1'".fur. norf"is, 307 West Main, feels strongly that this issue should go to the vote. No one else from the audience addressed this issue' Council rnd stalf comments: Mrs. Lubeck not"A tUi ti".ings have been held on the Capital.Improvement Program during th;-lasi;onth and it *as poinied out in those repons and itudies ihat it will take 9.9 million ["ffu" .r"i it" next fivellars to bring the streetiback to the condition we would like them to be. At this time the "*oirnl if,"t is g|ing into street repair will not keep us on target and the street conditions will continue to deteriorate. TC: D7: M1,1060595 6 June 5, 1995 los Gatos, California HEARINGS CONTINI.]ED UTILITY TAX CONT, Council and stalf comments oontinuedi Mr. Knapp the repon on rhis ropic, !!ay 10, 1995, Item 5 of rhe May l5th agend4 specificailyg.uantifies the impact resources will have on the streets. Meiropolita-n Transportarioi Commission Report is.also in-cluded wi-th their suggestions for a pavemeni managemenr program.lhese reports are available from the Manager's and Clerk's Offices. Mr. Attanay noted the Town's decline in the-Commission raling schedule and the need to bolsterthe resources available for streel- repair. He asked to keep the-vote on the budget separate from the _question of the ulility tax. If tht utility tax is passed bouncil can determini whether to addback into the adopted budget. Mr. Blanton referred to the 6.5 million dotlars in the progressive alternative for road repairwhich would mean placing $560 thousand a year into ifre-Cfp over and above what we areputting in it at the current aime. He also commented that if Council adopted the present budgethe was not willing to proceed with the utility tax. M.rs..Beqiamin spoke of the sewers and retaining walls thar are failing and need repair. Oncefailed they will need to be replaced at far moie cost. Noted lhat-tbe restrictions and thereq-uirements lhat the Town imposes create atr ambiance that is attractive to many peopleincluding the residenls and businlss owners. This service level and code enfor"errenf ij coitly and.those-benefiting from the ambiance and service level should be willing to pay the ert.a cosior allow themselves to become like their neighboring communities and aiiow in6reased densityon pro-Perty and additional comrnercial development. The street trees, sidewalk repairs andother beautification programs carry a cost but at the same time they help keep our property values up. Mr. Anderson noted &al this evening's meeting was the first public hear.ing to be heldconcernirrg lhe-utility tax ordinance. The second hearing is noticea for July 17, ]995.Mayor O'Laughlin re.quested that Council keep the heari-ng of July 17tb as scheduled and alsocontinue this evening's hearing to June 19, 1915. He note-d the five year sunsel provision andlhe need of future Council to review and adopt another ordinance if rieeded. He Lked if rareswould be different according to uihich telephbne service was being used. Mrs. Lubeck noted five yeaisunset; circulaiion of information; police department cuts; election held. Motion by Mrs' Benjamin, secon<ied by Mr.. Attaway, that Council continue this public hearing two weeks to June 19, 1995 and lhen to continue i1 again to July 17,1,995. Carried unanimouslf MARX LINDER,/COMMENDATION/SERVICE AS ASSISTANT TOWN MANAGER (OOO.42) Mayor O'I-aughlin presented 'fosryr Commeadation to Mark Under for his service io the 'iown while serving as-lhe Town's Asslstant Manager. His many projecB over lhe past four years were enumerated such as-improving th. annual budget process, esiablishing a viible finaniial future f9r the Tgwn through communiry forurns, org3nizing the cable televisidn program, and managing the los Gatos Creek Trail construction project among others. TC: 07: M MO6O59S June 5, 1995 las Gatos, California uNrvERsrrY AvE ro4lFEE ASSESSMENT (08.09) Bert Millen, 1& 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 noiation that his time limit for appeal be _waived since his questio; had been before Council for some lime without resolution. Carried unanimously. POLTCTES/rOWN COUNCTL (07.10) Motion Uy Mr. AttawBy, seconded by Mr. Blanton, that Council refer the report to staff and the Planning commision for formal adoption with the exception of ltegr 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. coLrNcIL 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 Augusl 21,_1.995 meetin! and noring rhat 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 ihat the appointmenl to the West Valley Sanitation District Committee shouli always be a two year appointment so that the representative has time to learn the issues and to be aLle to make informld decisions beneficial to Ils Gatos by the second year. ADJOI,]RNMENT Motion by Mrs. Lubeck, seconded by Mrs. Benjarnin, that this evening's meeting be adjourned at 10:39 a.m. Carried unanimously. ATTEST: 't-n/rfu J UVurv>- Marian V. Cosgrove Town Clerk TC:07:MMmosgs TOWN OF LOS GATOS CALIFORNIA T0wN CoUNCIL/PARKING AUTIIORTTY ltne 12, 1995 Minutes TOWN COT]NCIL The Town Council/Parking Authority of the Town of los Gatos mel in the Council Chambers of the Town Hall, 110 East Main street, at 7:30 p.m., Monday, June 12, lggs, in regular session. ROLL CALL Prescnl: Randy Attaway, Joanne Benjamiq Steven Blanton, Linda l.rrbeck and Mayor Patrick O,I-aughlin. Absent: None. PLEDGE OF ALLEGIANCE Given by all in attendance. CI.OSED SESSION Mayor O'laughlin stated that the Council had not met in Closed Session this evening. TREASURER'S REPORT (01.V) Informational report submilled by the Treasurer to the Council as of March 31, 1995, was received and filed. 9510 PROJECTAOBERTS ROAD PAVING AND SIDEWALK RECONSIR.UCTION PL.'lNs & sPEcs/AwARD oFcoNTRAcr/coLLrslIAwcoNsr/REsoLLITroN r99s.6s (02.35) Motion by Mr. Blanton, seconded by Mr. Artaway, that council adopt Resolution 1995-6g CNtilICd, RESOL(MON OF IIIE TOWN OF LOS GATOS APPRbVING PI,q,NS AND SPECIFICAIIONS. AWARDING COI.{IRACT 10 I,OWEST RESPONSIBLE BIDDER. AND AUTIIORIZING TT}VN MANAGER TO EXECUIE AGREEMET.JT IVIT}I COLLISHAW CONSTRUCAION FOR PRO.IECT 9sIO-ROBERTS ROAD PAVING AND SIDEWALK Carried unanimously. !T9RM DAMAGE/MARCH-APRIL 1995 /FEMA-1046 DR-CA/RESOLUTTON tsgs-6s (03.37) OFFICE OF EMERGENCY SERVICES FOR FINANCIAL ASSISTANCE Motion by Mr. Blanton, seconded by Mr. Attaway, that council adopt Resolution 1995-69 entilled, RESOLUNON OF TI{E TOWN oF Los GATos AUTHoRIZING T}IE TowN FOR FINANCIAL ASSISTANCE. Carried unanimously. TC:07:Mi/O6t29E June 12, 1995 bs Gatos, California HEARING PRELIMINARY T995.96IOPEMTING BUDGET/CDBG TUNDS (04.06) COIT{MUNITY DEVEIOPMENT BT,oCK GRANT FI.]NDS Mayor O'laughlin stated that this was the time and place duly noted for public hearing to consider Preliminary 1995-96 Operating Budget including the use of Community Development Block Grant Funds. Town Manager, David Knapp, gave an overvjew of the reductions that could be made in the budget due io reduced revCnuei of $485,000. The suggested reductions in services and staff were: Closing the Ubrary the week before Christmas; Reduce the code Compliance Officer to half time; Eliminate the ANET officer; Eliminate on e motorcycle officer; Reduce the tree trimming contract to an as needed basis; Cut back l|Vo in Community Grants Program; Close the Library on Fridays. These suggestions were addressed in lhis evening's staff report with some additional suggestions. Utility users tax and parking fees were two areas mentioned whereby revenues could be raised to offset the General Fund short fall. Botb options would raise a proPortionale amount each year, Council Comments: Mrs. Benjarnin requested that staff analyze the suggesled budget cuts for liability issues. If they may tend to raise liability costs they will nol be wise cuts. Mr. Blanton requested funher information on the parking programs of other cities for the August meeting. Mayor O'kughlin requested that the Parking Commission report to Council in August regarding various options concerning parking meters or altendant gated parking. The following people from the audience spoke to this issue: Barbra Toren, 15933 Orange Blossom Drive, Executive Direclor of Downtown Association, spoke of self funding of the organization within a six month time frame. A marketing plan is undenvay. Music in the Plaza is a major surrmer tradition. Spoke of a 1-800 number for general information regarding the downtown. Sandy Decker, 207 Belmont Ave, spoke of the ambiance of the Town, and the planning that is needed to preserve the years of work already in place. Asked for additional stzffing in the Planning Department and noted the reduction in staff that has taken place in that dePartment since the budget cuts. Suppon of the utility users tax was express€d and parking attendant at I,lt 4. Laura Nachison, 115 Ann Arbor, spoke of the lack of staf6ng in the Planning Department and requested no additional cuts iD that department. She supported the utility tax. Elizsbeth Smith, 17551 Vineland, Monte Sereno, told of the work being done on the Boulevard Community Atliance, and the need for support of the Boulevard plan and of the vision for that section of Town. She supported the utility users tax for the needed funding on projects already initiated by the Planning Department. Sue Ellen Sterlin& 21900 Summit Road, spoke of the Downtown Beautification Program and the need to establish and work with the Newsrack Committee. She supportcd the utility usen ta:( as a means to fund this planning concern. 'f C:07:M1i4S1295 June 12, 1995 Gatos, California HEARING CONTINI.]ED OPERATING BUDGET CONT. Speakers continued: Sleve Boersma,2173 Rosswood Drive, San Jose, representing the Boulevard AJliance, spoke ofthe need for additional Planning Department staff sb as ro w6rk with the community conterning Los Gatos_Boulevard plans. ffie uiitity lax is the suggesred melhod for funding t'his projec{. Mark.Brodsky, 17306 Growenor Court, Monte Seren6l suggested rhat Council tike thd st6p for the utility tax as a methd of funding the planning of the los Gatos Boulevard concepts. N;red that these improvements and beautifications will iaise additional sales tax revenues and increase the value of the neighboring residential areas. Donald Peck, Oak lfuoll Drive, Monte Sereno, representing rhe [.os Gatos Boulevard Aluance, supponed the utility ta:r, and parking meters. Frank rheseader, 408 Bella Vist4 spoke for the Museum Association, and requested theproposed funding for the association. Mary Kloet, 229 Wilder, lup_pons lhe utility rax as an anstper to the sewer and strect problems downtown. She requested ilie utility tax to support the infrastructure of the Town. She is llrongly in favor of_raking.the question of the utility users tax ro the vore of the people. No one else from the audience addressed this issue. Motion by Mr. Ataaway, seconded by Mr. Blanton, that Council close the public hearing. Carried unanimously. Council Commenls: Mr. Blenton favored an election if Council moves forward with the Utility Users Tax. He noted h^e faygrs freezing _one posirion in Planning, cutting the second moiorcycle, having code Compliance handled by a Community Service Officer, ieducing to a half timi Arborist, -and nor ftrnding the Downtown Association. He would allocare the aidirionat g2300 in CDBG funds 10 the Museum Association. Mrs. Lubeck favored the use of reserves for one time expeDses, requesting staff to identifi the additional $9,000. There appears to be more than enougb rolting foi-rvard Fom last year so thar there would be no need to have further c,uts or additional repositioning of staff iuch as the CSO's assigned the Code Enforcement duties. She would like i Senior Flanner added back to staff and supports the $2,135 CDBG funds allocation to fie Museum Association. Mayor O'Laughlin strongly supports the need for a Senior Planner replacement in the Planningflepartment Particularly since Old Town will be undergoing renovation and the encouragement of the l-os Gatos Boulevard Community Association is essJntial. The Town needs wherEwithal to keep the vision alive on the Boulevard. Mr. Attaway voiced the need to invest in the economic fulure of our Town and the necessity to find a vehicle to do thal. The suggestions have been parking meters, parking auendants, utility users kD(, and staying wilh the b:rdger. At this time he supports the use of one rime fundi carried over from last year but does nol want to use the fund balance for economic uncertainty. TC: D7: Mtrl06 I 295 3 June 12, 1995 los Gatos, California HEARINGS CONTINI,JED OPERATING BUDGET CONT. Mofion by Mrs. Lubeck, seconded by Mr. Attaway, that Council approve the use of the funds rolled ovjr from last year's budget t6 fund the $16,000 for the Downtown Associatiorl and the SZifm in Capital Prirchases. Staff to make some $9,000 cuts somewhere and_ that the $2'135 remainder ln itre COSC funds be allocated to the Museum Association. Investing in our ".oro1nl. futrr" is of primary importance especially the need to help the Boulevard Alliance with the vision for that area aia tte priority t6 supp6rt the Planning Departmenl. Many special projecs are slowing or stalled beduse of Uct'6f trained personnel to work on plans and iuffici"nt staff to cairy through on tbe projects. Carried unanimously' Mayor O,L:ughlin requested that staff write to tbe Downtown Association and inform them abolur the As$ciation'i budget allocation and the Council's anticipation that as of January 1996 the Association will have become self-funding. COI,JNCIL COMMITTEES-- -M^.-B".j"-i" noted tbat the Santa Clara County Cities Association had their meeting.last *a"t ,r,f she noted the theme of the evening was regional cooperatio& such as the animal ."rtirf pioii"., iru it asirt "nd street swee[ing-with Monte Seieno. As the county has.their short fail of-$34,it00,000 the Town of t-os Gatoi will be feeling the impact of this revenue deficit as the county will be unable to maintain ils former service levels' Mr. Knapp noted that the County does funding for non profits whichrvill be loosing funds. N-or- pi"ns "iJ a very effrcient way t; deliver serviles to those in need. Both the private and public iectors charge much more to deliver those services. Mr. Attaway reported that West Valley Sanitation District is doing a- sewer - upgrade on Univenity Ave. 'A newly hired company -r*ill be inserting a sleeve inside the existing pige.1 A UonO fo. iul ,"placemeit of i"*""r. ird str""t repair wif be carried in event of project failure. ADJOI,'RNMENT Motion by Mr. Blanton, seconded by Mrs. hbech that this evening's meeting be adjoumed at 8:46 a.m. Carried u nanimouslY. ATltsST: -hb,A)Wv,fu Marian V. Corgrou9 Town Clerk TC:D7:Mtrt61295 TOWN OF LOS GATOS CALIFORNIA TOIVN COUNCTL/PARXTNG AUTHORTry November 20, lggi Minules TOWN COUNCIL The Town council/Parking Althority of rhe Town of Lns Garos met in the council chambers$.:f,:"-, sarr, i ro E*? ffi; s;;i; ; 7;;'p..., Mil;y;N;;L.lio', rsss, in regurar ROLL CALLPresenr: I31df,au.*,ry, J9"l!.BenjamirL StevenBlanlon,Unda l-ubeck and Mayor pitrick'O,Iaughl;:--'-- Absent: None. PLEDGE OF ALLEGIANCE Given by all in attendance. CLOSED SESSION Mayor O'I-aughlin announced that Closed Session was not held this evening. TOUN EMPIoYEE/RANDY wL].,/,JrA / C}MMENDATTON Q2.44\ Irdyjr u'raugDlin presented a commendation to Randy villar, ior his fifteen years of servicern the potice deoarrmenr of rhe Town of los caros. trir. ;ji";;";;;#iir'"o.-"nauriooand thanked tbe Mayor fo, tf," oppoiirriry ;;; PI"A.NNING ..MMISSIOI\ER/ALLEN RUDOL,H/C,MMENDATTON (ZZZ.20\Mayor o'Laughfin nored rhir Mr. Rraor;h;;;;bre ro be presenl for his commendation dueto illness. Mr. Rudolph will receive t i.'"".-era"tioo "t " iui., ir;;: "'- -*'- CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING (00.06)Mayor o'lauehlin nresented the award i--e*..11"o."^ in- Financial Reporting ro MicheleBrauchr, Town-Finaice.Drr""ioi, ,', ;;;;il"";;;, professionar work on rhe Annuar FinancialReporr of June 30, 1994. MAYOR'S OUTGoING COMMENTS (000.10) Mayor o'I-auehlin nored *re aeaicau:on-a# cooperafion of staff, Council and community on lhefinancial foruirs which were held ro corsia". it!iiwn's financial *Ji ilirg.- Th.se diatoguesIed to discussions and consideratio; ;iiil;9pi;r;;f ;r^,',i,i.il ;#' bdH; Iiucarionar anainformative exercises for.everyone involved. n "-ilr"r" financiat ,;rt."rrrr-i;;' by rhe Townwere reviewed and a variety of sorurions were offered for sorving ffiil;;;i;;;. The poriceDeparrmenr conrrao wirh Monte sereno rein! "r" i,r,. ,,;;y Hr;;;j;';i"nles "*plor.a arainitiated in rhe spirir of financial ,..uriry -J".oriJ*"riu" ,..lorr." ;;;;;;;;,. TC:07:MM1l2095 November 20, 1995lrs Gatos, Californr'a APPOINTMENT OF MAYOR AND VICE MAYOR FOR 1996 (000.10) Sayor Q'kughlin nominated Joaane Benjamin ro be Maydr for iire coming year, seconded bySteven Blanton. Mrs. Benjamin declined and nominated Randy Attaway f6r'Mayor, secondei Pr groq Lubeck. Mr Atiaway said he would accept the nomination ifrtli.. r.i,;ui"in "oriJbe rhe Vice-Mayor. The previ-ous nomination was rvirhdrawn by Mr. o'Laughiin. " Motion by Mrs' Lubeck, seconded by Mr. o'taughlin, that Randy Attaway be Mayor for the year 1996 and Mrs. Benjamin be rhe Vii:e-Mayor. Carried unanimously. SCHEDULE OF PLJBLIC HEARINGS (01.01) Informational report regarding currently icheduled public hearings was received and filed. coL,NTY REFERRAIS (02.47) Motion by Mrs-. Lubect<, seconded by Mrs. Benjamin, that Council accepl staff recommendations on County Referrals as follows: REF. # LOCATION APPLTCANT REQI'EST RECOIT'MENDATION Y-l^ I0-Eaglc crest Heighrs Doner Buiriing sire/Design Rcview Appr;;"rib;" conditionq!38 16731 lrma A\€. - L.wis Varian6 eiiroratTone necoruaenaariort5814 S. Sidc Bear Creck Rd. Denevi Draft EIR Review -t i;;R4;i; Carried unanimously. PAYT9L.L/RATrFrCArroN/ocfoBER-NovEMBER r99s (03.V) Motion by- Mrs. Lubeck, seconded by_ Mrs. BenjamirL thar Council rati$ rhe check regisrer forthe payroll o-f october 22, through. ltovember n, t995, in rhe amounr or $zso,ssz.onipuio ooNovember 10, 1995. Carried uninimously. ACCO-UNTS PAYABLE/RATIFICATION/NOVEMBER r99s (04.V) Motion by Mrs. Lubect<, seconded by Mrs. !9njami1, thar iouncil rarify rhe accompanying check registers lol_qsgyl,r. payable invoices paid 6n November 3, and Nbvember td, t69s"in ttreamount of $382,933.95. Carried unanimously. TREASLJRER S REPORT/SEPTEMBER 1995 (05.V) Informational report from the Town Treasurer as of September 30, 1995 was received and filed. sMlnrrE EUROPEAN GRANT ALlrocATIoN/coMMuNITy GRANT REcIpIENTs (06. 19) Yotion by Mrs. Lubeck, seconded by Mrs. Benjamin, that Council allocate $3,000 of the Sniyrhe European_Grant to -th9^following Community- Grant Recipients: Santa Clara County SeiriorNutrition P_rogram ($500); San,Jose State Uaiversity Foundation Healrh Place ($500); 'A Place lqr TPnl (.$f0p);_Em_erge.ncy ry^ols-rnC Consortium ($500); Family Services Association ($500); Uve Oak Adult Day Services ($500).- Carried unanimousty. RENr MEDTATION PROGRAM /1994-95 (07.14) Motio-n by _M^rs.-Lu_beck, seconded by Mrs. Benjamin, that Council accept informational report regarding 1994-95 Rent Mediation Program. Carried unanimously. LOS -GATOS- BO-ULEJARD/CONCEPTUAL DESTGN/GENERAL PI_AN COMMTTTEE (08.4?) Motion by Mrs. Lubec\ seconded by Mrs. Benjamin, that Council approve rransfer oi $400.00 from Account 100-36010 to Accounl 315&61004ior Wildan Associatei io prepare an operarional analysis of the Los Gatos Boulevard conceptual design plan. Carried unanimously. TC:07:MMI l2OgS November 20, 1995 l,os Gatos, California FAMTLY SERVTCES ASSOCIATION/COIUMUNITY SERVICE/RESOLII'IION l99s-154 (10.19) Motion by Mrs. Lubeck, seconded by Mrs. BenjamirL that Council 1q9pt Relglution 1995-154 CNtitIEd, itrSOLUrtON OF THE TOWN OT LOS GATOS ,I'MCXDING I-BISE A.GRETMENT nv rxn bEiwBeN rHB rowN or r,os clros,q'Nn rAM[,y spnucp lssoctlrroN, lNc- RBpRrSgNrNc tns Los clros oowNrowN NElcHgoRHOOp CENTE& 3n6 att *aing Communlty Services Department budget for the year 1995-96. Carried unanimously. 95 14 PROJECT/TREE PRLTNING AND REMOVAL/RESOLIJTION 1995- 155_( I 1.35 ) Motion by iMrs. Lubeclq seconded by Mrs. Benjamin, that Council adopt Resolution 1995-155 CNtitICd, - RESOLUTION OF TTIIi fi)WN OF I,OS GATOS TO AUTHORIZE TOWN tr,rNvlcnn ro E)rncutg Hv lcnrBMeNT WITH plvEy lREg C/+RE rXPrnIS 10 COlvtpLBff pnOfEcT gsra - IREE pnUNnIC ANn REMOVIU Carried unanimously. TANDSCAPING/LARK & WINCHESTER/PROJECT 473CHI85/RESOLUTION 1995-ls6 (1235) Morion by Mrs. Lubeclr, seconded by Mrs. Benjamin, that courlcil 9q9p1_B!!o]ulion 1995-156 ENtitIEd, TIESOLUTION OF THE TOWN OF ITOS GA'I'OS APPKUVINU YI-ANJ AJ\ U spEctHclttoNs roR pnoJrct lz3cHrgs LARX ,aVE. ANO $'II,JCHOSTEn gI-vD. I"A,NDSCAPING - PHASE I. Carried unanimously' srcNAL MATNTENANCE SERVICES/PEEK TRAFFIC CO/RESOLUTION 1995-157 (13.?q)_ -_ Motion by Mrs, Lubeck, seconded by Mrs. Benjamin, that Council a{opt _Resolurion 1995-157 entitled, - REsoLUTIdN OF TIIIi TOWN bF LOS GATOS '!O,:4I.III194IZE TowN u.,ltucEn rotxncurB lcnreuBNr wttg PEex TR,mrIc col,,tpHw ron slcNlL MAINTENANCE SERVICES. Carried unanimously. VEHICLE IMMOBILIZER/POLICE DEPARTMENT (14.09) This item was removed from the agenda. cuPoLA RESTORATION/9503 PROJECT/OAK MEADOWRESOLUTION 199s-rs8 ( 15.-32 _ Morion by }rrs. LuUectq seconded by Mrs. BenjamirL that Council ?qgPl_ryTryi"n 1995-158 entitled, i.EsoLIJTIoN'oF THE rolvN or Los GAros AUTHoR]?1!El:Iqqll!I4l{AGER @min vored no because the project was $3,8fl) over the $5Q000 budgeted grant funding. LOS GATOS BOULEVARD 15553,/D'AMICO TIRE SERVICE COMPAT'IY PArNT BOOTH APPEAL/RESOLUflON l99s-Is9 (16.09) Motion by Mrs. Lutirct<, seconded by Mrs. Benjamin, that Coun^cil adopt Resolution 1995-159 entitled, ZONE. CarriedunanimouslY. TC:D7:MM1120S5 3 November 20, 1995 [,os Gatos, California LOS GATOS BOULEVARD 15166/OFFTCE DEPOT/RESOLUTTON 1995-t60 (17.09) Molion by Mrs' Lubeck, seconded by Mrs. Benjamin, that Council adopt Resolurion 1995.160 entitled, RESOLUTION OF T}IE To}VN oF l,os GATos DEI.IyING APPEAL oF PLANNING COMIUISSION DECISION APPROVING PT-{NS TO DEMOLISH AN EXiSTING COMMERCIAL STRUCTT'RE AND I'O CONSTRU(TAN APPROXIMATELY 28.OOO SOUARE FOOT RETAIL STORE IN TI{E CH ZONE. Carried unanimously. VERBAL COMMUNICATIONS fiank You to Oulgoing Mayon Mardi Bennett,38 Aipine, thanked Pat o'hughlin for his work as rhe Mayor rhis pasr year. BELOW MARKET PRICE/IN-LIEU FEES/RESIDENTHL LINITS (18.47) Mayor Attaway stated that this was the time and place duly nored ro consider report on [.os Gatos Btates, Incorporated's request to use required below market price inJieu fees to conslruct below market price residential unirs, which was received and filed. willlam Hirschman, 230 old Blossom Hill Road, spoke of a mixed use project on [-os Garos Boulevard at the corner of Shannon in which a greater number of BMP units might be made available. Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council direct staff to place the subject of Below Market Price Units Program on the agenda for discussion at rh; Council Workshop January 6, 1996. Carried unanimously. BULDING REGULq,TIONS/TOWN CODE AMENDMENT/ORDINANCE INTRODUCTION (19.23) Mayor Attaway stated that this was the time and place duly noted to consider introducing ordinance rescinding, amending and adding ro the Code of the Town of [.os Caros, Cbapter 6 - Building Regularions. Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council waive the reading of the Draft Ordinance. Carried unanimously. The Town Clerk read the fitle of rhe Draft Ordinance. Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council introduce Draft Ordinance enlit|ed, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING ARTICLES ItI THROUGH X OF CHAPTER 6 OF TIIE TOWN OF LOS GATOS TOWN CODE RET-ATED TO BTJILDING REGUI-ATIONS AND 11O ADOPT THE T994 CALIFORNIA STATE BUILDING STANDARDS REGTJI.ATIONS WITH THE 1995 CALIFORNIA STATE BUILDING STANDARDS REGUI-ATIONS WITH II{E 1995 STAIE OF CALIFORNIA AMENDMENTS AND TOWN AMENDMENTS ruNIFORM BUILDING CODE. I,'NIFORM HOUSING CODE. UNIFORM PLUMBING COpE NATIONAL ELECTBTCAL CODE. UNIFORM CODE FOR ABATEMEM OF DANGEROUS BUILDINGS. TJNIFORM MECIIANICAL CODE. AND LNIFORM CODE FOR BUILDING CONSERVATIOM. Carried unanimously. TC:D7:MMt 12095 I\,ItLLENNILIM CELEBMTION/DECEMBER 31, I999/COMMLTNITY FOTjNDATION (2023) Mivor Arta*ay stated thar this was the time and phce duly noted to consider prop_osal by the Loi Gatos Gimmuniry Foundation, lncorporated to sponsor the "Millennium Celebration December 31, 1999.' MarLvn Rasmussen. 119 Tair. spoke of the need to initiate the making of provisional plans for the Millennjum Cel6bration. 'Cbntracts for locations and equipmenl need to be placed shortly because many other similar events will be raking place acrols the valley and the resources wrll be already spoken for. Council consensus that the Foundatioo return to Council with annual reports on-the Millennium Gi"tiition-pturs; that the reports occur more often as the time oI the celebration draws n"iiJi; itit'CoGciL ricognizeitre ability of the Foundation to garner corPorate backing and comminity support by acq-uiring Councilt supporl for lhe concept at this time Motion bv Mr. Blanton. seconded bv Mrs. Beniamin, that Council accept the proposal by the l-os Gatos Co'mmunity Fouridation, Inc., to sponsoithe "Millennium Celebration" December 31, 1999. Carried unanimously. uflLITY USERS TAX/SPECIAL ELECTION,/RESO 1995-I6I/ORDINANCE- INTR.O (21.21)_- - --tt4i"oi Ait *iv siit"a that this was the tinie and place duly noted to consider Utility Users Tax' calf for special election, introduction of ordinance and budget amendment lor elecllon costs. Robin Tolen. sDeaker representing the l-os Gatos Chamber of Commerce, thanked_ the Town for ;tdni;ft.'reorganiiation ofihe Chamber, and spoke in full support of the Utility Tax as prb-posed with the five year sunsel clause. Council Comments: i"ib;mugnnn noted rhe time involved by the_ community in pu.blic forums and the conclusion ieacheO 1o'initiare a utiJiry iax Gth a sun(er clause. Dui ro judicial opini-o_n the tax will need io * L"ior. rhe oublic foia vore. The Presidential Primary, March 26, 1996, app-ears to be the il""J [rgii-r] iffiJ6 pi"* th"-r"asur" on the ballot.for pirblic decision. .Steva-Blanton noted ifrai attfroueh 5e Ooei not iupport the utility lax he does'support the decision -to place it on a il;iioi'r#?'i#;iffi;";fi'"';i'"eiiii'*tiri ifr.-M-ili h,ina.y choic.e of el'ection dates. n"na, a1tr*rr reeardini ih6 imrnedia"te need of placing the questib-n -of the. ulility tax on.th€ ballot', noting ihe lears 6f cut backs the Town has managed successtully €n0 the. commuuty s ;;;l;; 6 ht;" setinices cot-no further. Joanne Benjamin spoke of thC Town's ,infrastructure needins comolete r"rroririLn.- ft. iown-has deferre-d mainti:nance to the point that repair will ,o tonflet sukice and a more expensive replacement will be required' November 20, 1995 l-os Gatos, California that Council Resolulion 1995-161Motionseconded TCiOT:MM112Og5 Mrs. November 20, 1995 Los Gatos, California LTILITY-USERS TAX CONTI NI]ED I De 'Ibwn Clerk read the Title of the Draft Ordinance. #r:,i"Al*r*:; *H",!".0"i3**or,L,f. o'*rrhlin, rhar councir waive the reading of rhe that Council introduce Draft Ordinance Il{otion bv Mrs' Benia.min,. seconded. by Mr. Attaway, thal the ballot argument statemenl bedrafted by Mr. o'i^aighiin'nl-Cariii-or-tilsiii!"i'.ip.r,"o* as an auorney and bv Mrs. Lubeckbecause <if her financihr experience as an acc-ountafii. 'dl'-ir;rg.r#;iilL1;".;i i;;:'rffiffiito the Regisrrar of Votersby January i, li96lr"'Zam eo unanrmously. Illotion by Mrs. Lubeck, seconded by Mr. O'laughlirL thar Counlil amend rhe 1995-96 operaringbudget ro include $7,500 for elecridn expenses.- 6-;ed r-;fi;"lriji.'- "'- ''' DEVEI'PMENT APPLICATION FEES,/MARDI & CA""'H.+;i-#Fjiil-t'*i ;.:il:waiver of fees and rtimovai of iCiridrior.--- Council c-onsensus that the mechanism for the application on this properry is alreadv in olaceto move forward for aoprovar, with rhe-possibiti'iiaEi;I 6'ri;"/i;;;,t;i'ci,riii'itii"r. tf,iiCouncil will deny reqrie'sr for'wait;i ;1'd;i,IIoprle"nr apprrcarron rees. TOWN CO UNCI L MEETI NG SCHEDULE,/I 9 g 5 -g 6 Q2. 1 O\cou.ncil consensus to have staff requeir a ctianiJ-oitare for hearinss of one ra,lni6i,ti, iffio"..Jrii*^1"rr, iieii;j;r;;jft:isso. sraffwirr conticr,752e4K:il$rfi3:f,1regarding tennis court first;' and 16330 lii' Ciros-iiori"rrio,"Grui.v '*;riii-d;,ii co.nstruction second; for their written consent to changid trearingic-tieOull.-t't rIif,. ii,t#;.ji,scheduled for Deceinber 18, 1995 Ue mouJAio fii"a".y iO, ISDE.- $i,llif s:i'r'dHt"lxji'ffitr"fi,jif,i3;'#.'d",'fif,j"#:?q';Jl'"x,','ilru.',.iafi,*i:l+:: cenkf .conference room. rtrii tne siuilis;ssi'"s';f ri,r;';; i;"i"Z* ;t il dJ combined roApril 22. 1996 and nrn from 6 p.m. to lb p.m. if rriit'ii, i6iito-,lriri.iir,ir-"-rJiors rosether.That rhe Budoer Hearings or Mdf2ti ana\i;;liile rncorporared rnro one ,"rii;g';ft'fi;from 6 p.m. rd t0 p.m. couNcrL CoMMTTTEES (23.20) Mayor Anaway noted tliat th6re were no council commitree reports this evening. ADJOURNMENT Motion bv Mrs. Lubeck.. seconded by Mr. Blanton. lhar this evening,s meeting be adjourned at9:38 p.m.- Carried unanimously. ATTIIST: TC:D7:MMt 12095 Marian V. Ccsgrove, Towr Clerl: -7i,(4^BJ CA\i\h*- TOWN COI.]NCIL fhe. Tolun Council/Parking Authority of the Town of l-os Gatos mer in the Council Chambersof the Town Harr, 110 East Main srieet, at 7:35 p.m., Monday, D;";t;; i,-isss, in regurarsession, ROLL CALLPresent: Joanne Benjamin, Steven Blanton, Linda Lutreck, Patrick O'I:ughlin and Mayor Randy Attaway. Absent: None. PLEDGE OF ALLEGIANCE Given by all in attendance. CLOSED SESSION Larry Anderson amounced that Council had met in Closed Session prior to tbis evening,smeeting to discuss a matter of anticipated litigation in which the plaintftfs may not be awari. PLANNING COMMTSSToNER/ALLEN RUDOLPH/COMMENDATION (XX.20) Mayor Attaway.preserted a commendation from the-Town to Allen n:rAotlli.nu-"raring hismany contributions during his years of service on the Planning Commission. Mr. Rud-olphaccepled his commendation and thanked the Council and Town-for the opportunity to ,".ri. SENIOR DEPUTY TowN CLERK/MARLYN RAsMUssEN, CMC/PRESENTATION (xxx.44)Mayor lttaway p,resented the Certified Municipal Clerk's certificate to M;Lyn li*-usser, Senior--Deputy Clerk of l,os Gatos. Mrs. Rasmussen received her certificati and thankedCouncil and staff for their help and suppon as she worked roward this goal. SCHEDULE OF PUBLIC HEARINGS (01.01) Informational report regarding currently icheduled public hearings was received and filed. couNTr REFERRATS (02.47) Motion by Yrs^. Lubec! semnded by Mrs. Benjamin, that Council accepr staff recommendations on County Referrals as follows: REF. #LOCATION6178 17311 Hicts Road Carried unanimously. TOWN OF LOS GATOS CALIFORNIA TOWN COT NCIL/PARKING AUTHORITY December 4, 1995 Minutes APPLICANT REQUESTlyer Building Site RECOIIIMENDATION Approval PLANNING coMMIssIoN/PI2{.NNINc DEPARTMENT M0NTITLY srATUs REpoRT (03.47)InfotPational report regarding activity of Planning Commission and Department was received and filed. TC:D7:MMtAN95 December 4, 1995 hs Gatos, California collNctl. CALENDAR OF MEETINGS (04.10) Informational item presenting fulure Town Meetings for Council and other Town Boards and Commissions was received and filed. PAYROLL,/RATTFTCATION/NOVEMBER 1995 (05.V) Motion by Mrs. Lubeck, seconded by Mn. Benjamin, that Council ratiry the check register for the payroll of November 5 through November 18, 1995, in the amount of $307,940.43 paid on November 22, 1995. Carried unanimously. ACCOT NTS PAYABLE/RATIFICATION/NOVEMBER 1995 (06.V) Motlon by Mrs. Lubeck, seconded by Mrs. Benjamin, that Council rati| the accompanying check registers for accounts payable invoices paid on November 17, and November 22, 1995 in the amount of $318,170.51. Carried unanimously. MINUTES OF NOVEMBER 20, 1995 (074.V) Motion by Mrs. Lubeclq seconded by Mrs. Benjamin, tbat Council approve the Minutes of November 20, 1995 as submitted. Carried unanimously. MINUTES OF NOVEMBER 27, 1995 (078.V) Motion by Mrs. Lubectr, seconded by Mrs. Benjamin, that Council approve the Minules of November 27, 1995 as submitted. Carried unanimously. cr,ArM RE ECTION/BRUCE WEINSTEIN (08.01) Motion by Mrs. Lubeck, seconded by Mrs. Benjamin, that Council reject claim of Bruce Weinstein for alleged damage to personal property occurring on September 8, 1995. Carried unanimously. scHool cRossING GUARDS/ALL CITY MANAGEMENT/RESOLUTION 1995-162 (10.09) Motion by Mrs. Lubech seconded by Mrs. Benjamin, that Council adopt Resolution 1995'162 CNtitICd, RESOLUTION OF THE TOWN OF TOS GATOS AUIIIORIZING TIIE TOWN MANAGER TO EXECUIE AIY AGREEMEM WITI{ ALL CITY MANAGEMENT SERVICES INC.. FOR CROSSING GUARD SERVICES. and the changes from 3,000 hrs to 2,400 hrs. Carried unanimously. SANTA ROSA HEIGHTS/I,ANDSCAPE & LIGHTING DISTRICT/RESOLUTION t99S'163 (12'28) Motion by Mrs, Lubeck, seconded by Mn. Benjamin, that council adopt Resolution 1995-163 CNtitIEd, -RESOLUTION OF THE TOW}{ OF LOS GATIOS IMTIATING PROCEEDINGS TO A}IiNEX THE SAhITA ROSA HEIGHTS OPEN SPACE MAINTENA]\CE DISTRICT INTO r_lrosiaplruc tvo lrcsnNc mspsslrlBNr nrsrntc'r *r. oEsrcNlrwc m m ENGINEERING REPORT. Carried unanimously. TC:07rMM120495 December 4, 1995 Los Gatos, Califomia vAsoNA Hrl,rs SLIBDTVISToN/300 Br,ossoM HILL RoAD/TRACT E280 I-ANDSCAPE & LIGHTING DISIRIC:T/VASONA HEIGHTS BENEFIT ZONE oPEN SPACE MATNIENANCE DTSTRTCT/RESOLUTTON 199 5-t 64 (1,3.28) Motion by Mrs. Lubec\ seconded by Mrs. BenjamirL that Council adopt Resolulion 1995-164 Cntitled, RESOLIJTION OF TIIE TOWN OF I,()S GATOS INITIATING PROCEEDINGS To ANNEX THE OPEN SPACE MAINTENANCE DISTRICT WITHIN TRACT 8280, VASONA HILLS SI,JBDWISION.3OO BTI)SSOM HILLROAD. INTO I"A.NDSCAPING AND LIGHTING ASSESSMENT DISTRICT #1, DESIGNATING ITAS VASONA HEIGHTS BENEFIT ZONE. ESTABLISHING A POLICY ON CAPITAL REPI"ACEMENT AND CRBDIT FOR PREEXISTING FT]NDS IN OPEN SPACE MAINTENANCE DISTR,ICT #3. AND DIRECTING PREPARATION OF AN ENGINEERING REPORT. Carried unanimously. UTILITY USERS TAX,/SUSPENDED LINTILAPPROVED By VOTT,RS/ORDINANCE 2007 (14.05) Motion by Mrs. Lubeclq seconded by Mn. Benjamirl that Council adopt Ordinance 2007 enlitled, ORDINANCE OF THE TOWN OF ITOS GATOS SUSPENDING OPEMTION OF ARTICLE V, CHAPTER 25 OTILITY USERS TAx) OF TI{E TOWN CODE AND AMENDING CI{APTER 25 TO PROVIDE TIIE ADMINISTRATTVE FRAMEWORK FOR A UTILITY USERS TAX IF APPROVED BY THE VOTERS OF IIIE TOWN. which was introduced at the Town Council meeting on November 20, 1995. Carried unanimously. HEARINGS LOS GATOS BOULEVARD 16268 / COMMERCIAL MODIFICATION/APPEAL ( r 5.09) Mayor Atlaway stated that this was the time and place duly noted for public hearing to consider appeal of the Planning Commjssion's decision to approve the request to add a sunroom, gazebo and retail-restaurant use. Applicant requests to modify the approved hours of operation for the ice cream shop on property in the C-1 zone located at 16268 [-os Gatos Boulevard. Conditional Use Permit Application U-94-7. Architecture and Site Application 5-76-57,dr. Property Owners: Chan and Winnie Ng. The following people from the audience spoke lo lhis issue: Chan Ng owner of the property, spoke of bis concerns and expectations for the property. Marlon Smith, 125 Lansberry Court, spoke for his father and owner of the neighboring 7-11 property, and the problems involving parking. Wnnie Ng 16268 Ios Gatos Boulevard, asked Council's consideration of the proposal. No one else from the audience addressed this issue. Motion by Mr. Blanton, seconded by Mrs. Benjamin, to close lhe public hearing. Carried unanimously. Motion by Mr. O'Laughlin, seconded by Mr. Blanton, to refer this item back to the Planning Commission for consideration of lhe hours of use and the election of use; and a comprehensive landscaping plan which takes into consideration the concepls of the l.os Galos Boulevard design charette. C-arried unanimously. TC:D7:MM120495 December 4, 1995 l-os Gatos, California HEARINGS CONTINUED WEED ABATEMENT/RESO LUTTON l 995- I6SIHEARJNG ( 16.27) Mayor Attaway stated thal this was the time and place duly noted for public hearing to consider the adoption of a resolution overruling objections and ordering abatement of weeds. There was no one from the audience to speak on this issue. Motion by Mr. Blanton, seconded by Mrs. Benjamin, to close the public hearing. Carried by a vote of 4 ayes. Mrs. Lr:beck was absent. Motion by Mrs. Be4iamin, seconded by Mr. Blanton that Council adopt Resolution 1995-165 entitled, ORDERING ABATEMENT OF WEEDS AS A PLIBLIC NUISANCE Carried by a vote of 4 ayes. Mrs. Lubeck was absent. BUTLDING REGULATIONSAOWN CODE AMENDMENT/ORDINANCE 2008/HEARING (17.28) Mayor Attaway stated that this was the time and place duly noted for public hearing to consider adoption of Ordinance rescinding, amending and adding to the Code of the Town of Los Gatos, Chapter 6 - Building Regulations. There was no one from the audience to address this issue. Motion by Mrs. Lubec\ seconded by Mrs. Benjamin, to close the public hearing. Carried unanimously. Motion by Mrs. Lubeclq seconded by Mr. Blanton, that Council adopt Ordinance 2008 entitled, ORDINANCE OF TIIE TOWN OF t,OS GAMS AMENDING ARTICLES III THROUGH X OF C}IAPIER 6 OF TTIE TOWN OF I,OS GATOS TOWN CODE RET,ATED TO BUILDING REGUI,"A,TIONS AND T() ADOP/T THE T994 CALIFORNIA STATE BUILDING STANDARDS REGUT,ATIONS WITII THE 1995 CALIFORNIA STAIT' BUILDING STANDARDS PLUMBING CODE. NATIONAL ELECTRICAL CODE. UNIFORIU CODE FOR ABATEIUENT oF DANCBROUS gUtLOINCS. UNIFORM N'|E,CHANIC.aL COnB. ANO UNlrOnM COOE JUNTOR ENGINEER/FLINDING POSITION/RESOLUnON 1995-166 (09.06) Motion by Mrs. ilenjamin, seconded by Mr. O'Laughlin, that Council adolt Resolution 1995- 166 entitied. RESOiUTION OF TIIR TOWN OF LOS GATOS AMENDING TIIE l99s-00 CAPITAL IMPROVEMENT BUDGET REDUCING THE FIjNDING FOR STREET ttrlpnovElrartrts lNn ruNntNc rge lul'lon ENGINTER pOSnlON. Carried unanimously. FOR BUILDING CONSERVATIOM. Carried unanimously. TC:D7:MM120495 December 4, 1995 los Gatos, California VEHICLE BOOT/POLrCE DEPARTMENT/RESOLLJTTON 1995-167 ( I 1.09) Motion by Mr. Blanton, seconded by Mr. O'taughlin, that Council adopr Resolurion 7995-167 entitled, RESOLIJTION OF TTIE TOWN OF LOS GATOS AUTHoRIZING THE PoLICE DEPARTMENT TO USE A VEHICLE BOOT. Carried unanimously. ADJOURNMENT Motion by Mr. Blanton, seconded by Mr. O'hughlin, that this evening's meeting be adjourned at 8:40 p.m. Carried unanimously. ATTEST: Town Clerk lCiD7:MMl2O495 TOWN OF I,oS GATOS CALIFORNIA Totnhl CoLJNCIL/PARKTNG AUTHORTTY December 18, 1995 Minutes TOWN COI.JNCIL The Town Council/Parking Authority of the Town of l-os Gatos met in the Council Chambers of the Town Hall, 110 East Main Street" at 7:35 p.m., Monday, December 18, 1995, in regular session, ROLL CALLPresent: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'kughlin and Mayor Randy Attaway. Absent: None. PI,EDGE OF ALLEGIANCE Given by all in attendance. CIOSED SESSION l-arry Anderson announced that Councit had met in Closed Session prior to this evening's meeting pursuant to Governmenr Code Section 54956.9(bxl), to discuss a matler of Anticipated Litigation in which the To*n, on the a.ttorney's recommendation, chooses not to identiS the potential plaintiffs. SCHEDI,'LE OF PI]BLIC HEARINGS (OI.O1) Informational report regarding currently scheduled public hearings was received and filed. PAYROLL/RATIFICATION/NOVEMBER.DECEMBER 1995 (02.V) Motion by Mr. Blanton, seconded by Mrs. Benjamir\ that Council ratiry the check register for the payroll of November 19 through December 2, 1995, in the amounl of $377,330.92 paid on December 8, 1995. Carried unanimously. ACCOT]NTS PAYABLE/RATIFICATION/DECEMBER 1995 (03.V) Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council rati! the accompanying check- registers ior accounrs payable invoices paid on December 1, 8, and 15, 1995 in the amount of $595,164.57. Carried unanimously. TREASURER'S REPORT/OCTOBER 1995 (04.V) Informational reporl lubmitted by the Treasurer as of October 31, 1995 was received and filed. ROLLER/EQUTPMENT PT RCIIASE/RESOLUTION 195-168 (05.28) Motion by Mr. Blanton, seconded by Mrs. Benjami& that Council adopt Rcsolulion 1995-168 entitled, RESOLUTION OF THE TOWN OF LOS GATOS TO AUTTIORIZE TOWN MANAGER TO EXECUIE AGREEMENT WITTI TRACTOR EOUIPMENT SALES TO pUnCHASEiit ONe NrW rggS VlgRAmny III.IOBIU nOLLgn. and adjust budget for capital purchase in gas tax fund. Carried unanimously' TC:t:MM121895 TOWN OF I,,oS GATOS CALIFORNIA TOWN COT NCIL/PARKING AUTHORITY FebruarY 20, 1996 Minutes TO\IN COUNCIL The Town Council/Parking Authority of the Town of Ios Gatos met in the^ gouncjl ptram\i( of rh" To*n Hall,'110 Eas-t Main Stieet, at 7:35 p.m., Tuesday, February 20, 7996, in regular session. ROLL CALL Present:Joanne Beniamin. Steven Blanton (arrived at 8:00 PM), Linda Lubeck, Patrick O'Gughlin and Mayor Randy Attaway. Absent: None. PLEDGE OF ALLEGIANCE Given by all in attendance. CITOSED SESSION: -L;rry-Arderson, Town Attorney, reported that council had met in closed session prior. to this evenins,s meetinn rrrsr"nt to Goueinment Code Section 54956.9(b)(1) to Conference with Town ;i;;:;;#;dfi;;,il;;i; u,igation Against the rown in one (1) Matter. rhe plainriff remains non-disclosed. pursuant to Government Code Section 54957.6 lo Conference with l-abor Negotiator for the i"*q ji"i pip"., assistrniior"n r*-"g", and_personnel officer regarding forvn Employees' essoc-iation (fEi), Conil;ntiui frrpf6y..r, Police Officers' Assoiiation (POA), American Federation of State, Co*ty-"nJ M"nl'cip'l employees (AFSCME)' This discussion concerned all Town employment associatiors. EMPIOYEE OF THE YEAR/PRESEMATION/FROM THE m-lvN (00'44)- -Mayor Attaway pr.t"nt.i " .olD-"na"ton tb Cntit Gjerde of B-uildiT-.8-T.d.,.EHLt-*ing Services ii"i"rtr."t fiir'his dedicaied-work and his concern a'd cat" in dealing with Town cliens' Mr' Gjerde was present to r*"i* tf,it i""ognition and thanked the Town for the opportunity to serve. EMPI0YEEoFTHEQUARTER/PRESENTATIoN/FRoMTIIETojfl\r(000.44). Mayor Attaway pr.r.nr.A-.-#.;;d^ti;t; .', Susrn Kautzer' Cherie Strand and Bruce Smith for iot( weil aon6 in tneir-.eipectire Cep-artments. Ms Kautzer and Ms Strand were Presenl to ii..ir" tt iit presentations ;nd thar.kEd the Town for the honor' PARKTNG COMMISSION/COMMENDATION (XX.2O) Mayor Attaway pr"."nrJJ u-"o*"-.noation it Wilfiam Meyer for his yeantf service on the parkins Commi..ion uniinin1.O t i,-" f. his dedication and concern for the Town. Mr' Meyer irliJi'f,rI.ppiliiiil,r'*ii'.ir,i"i.i i[. ^uny oth.ers who have helped over the years on this Commission. TC:DEi Mti1022096 ,,.Hl""iufll",.r# SCHEDULE OF PUBLIC HEARINGS (01.01) Informational report regardin! cun|r,rly lclearled public hearings was received and filed. couNrr REFERRALS (02.47) Motion by Mrs' Benjalin, se6ep-6ed by Mrs. Lubeck, that council accept staff recommendationsconcerning County Referral as followi: f#--*. ll#ilS1"".," *'ffpi'rc^rvr lpoqEsr RE..MMENDATT.N carried by , ;;;;'#4;t;-Mr. Bi;;; was absenr. rine Exensions Approvar PAYROLL MIIFICATTONAAT\rUARY-FEBRUARY tss6 (03.VMolion by Mrs' Benjamin, s".ooa.o uy tr,iis. "iofl tirai'c6uncit ratiry rhe check regisrers forth e payron of Janu ary 1 4' th rougrr^ Jan'uafi - r; l;%' e ^*.;; :F^Idi,f id;] ana payrolt ofJanuarv 28 throueh Fibruary 10;1996 t;# ; h;;;",y 16, 1gg6,in the amouni of $605, r 12.97.Carried by a vorJ of I ayes. t"ti. gl"rio, *.r';;nt. ACCOUNTS PAYABLE/RaTIFTCATTON/FEBRUARY t9s6 (u.v)Motion by Mrs' Be4iamin, seco.na"g rJy lai..-iri".r., ,t.t iiuni,il ratify rhe accompanying checkregisters for accounts parbre invoice's p;id;; F;*.,y 2, 5, 6, and 9, 1996 in rhe amounl of$401,711.85. Carried 6y'a ,ot" of l .y6r.'V. iiur,on was absent. TREAS^URER S REPORT (05.v) Il::i*i'#fr.,..frt surmifted by the Treasurer ro rhe Council as of December 31, 1995, was MINUTES oF FEBRUARY 5, 1996 (06.V) f":#""r,Yfi ;::?i#T,1"::-3:#.!rrl;,;"*"lr"i::";:y;,rgovether{inuresof cLArJr .+pp.rrglrroN/LATE FTLTNG (07.01)Motion by Mrs' Benjamjl, seconded by Mis. Lubec(. rhat council accepr application ro file late ;':#r:t#,5i*#""r**t$lJ,T".tv 6"-"g"-".*'ing on Aprl r, rsis.-'i;ri; by a vote or CIIU-M REIEMION/ELIZABETH BARCAS (8A01) Motion by Mrs. Be4Jamin,. seconded -by Mrs. r,,ueck thar councir deny craim of Erizaberh xiltriilxi:::o,i:.'f,*;",T[ff ].n;n"'tr-;;#"fi ;;;#"n:ffi\c".,i.ouv CL{,IM REIECTION/LARRY FAVA (88.01 )Motion by Mrs. Beniamin, secondLd uy ir,Irs. r,ubeck, tha-t Councir deny craim of r-arry Fava for ili:r;*f,H,$1,:f;fi"., properry 6.*;,s ;;i; ty e, leei. C"ihiJ ui ""'i"te or 4 ayes. chr.y.TEJPCT_oN/ALEXANDER LrrNcrNovrc (8c.01)Motion by Mrs' Ber{amin, seconded uy Mn. t riuecf'that Council deny claim of AlexanderLunginovic for ailesed damage to personar properry occurring o, It;.;;-6.;'ii','rbss. curri.aby a vore of 4 ayesl Mr. Brairton ;;;;;;ii"*'" ' TC: D8: MM022096 February 20, 1996 [-os Gatos, California PEDESTRTAN SAFETY/BLOSSOM HILL SCHOOL (09.40)---M;h" by lvtrs. S6nja;;;i".o"a.JUy Urs. Ilteck,'that Council accept report on school p"a"iiit"i ,uf"ty. Cioi"Oby a uot" of 4 ayes. Mr. Blanton was absent. PACIFIC GAS AND ELECTRIC COMPANY/ISSUES (10'24) Motion by Ivf rs. ne{amin, L*raia UV Mrs. I-,bec[, thai Council accept and. file informational r"p"J".ip""in. Cas *J efectii.-ii,rtt. Carried by a vote of 4 ayes. Mr. Blanton was absent' cllPot A RESTORATION PROJECT (l 1.44) Motion by Mrs. nerriamin,Acoiagi-Uy ftry Hrbeck, that Council a9cep1 qn! file informational ,"porii"iaroing t# pr;;;;; G -6rporu Resroration Project. carried by a vote of 4 aves' Mr. Blanton was absent. TMFFIC SAFEfi REPORT/ENGINEERING DEPT. (12.40) Motion by r"r... s"ai".iil..;;-fii Mr" ht+L thai council accepl and file informational reoorr concernins rh" #1,;ji;;;;;rrffir"por, from rhe engineering deparrment. carried by a iote of 4 ayes.- Mr. Blanton was absenl' CAMTNO DEL CERRO 1503s/AccEss ro IOT (13.09) Motion by Mrs. nenSam"iiir"i"-ro.a uiuri. r"ui.l, thar council accepl Planning-commi.ssion recommendation ,o uppro'r.1'"'iuJ i6i,,oain.utio,i to a condition of approval.of a certificate ;i;;;lt;;;.;runt".i ioipioffi in the HR-l zone. The request is lo remove the requirement that access to the lot u" air..ity from the street frontage and not cross other land. carried by a vote of 4 ayes. Mr. Blanton was absent' BENCHES/DOWNTOWN CENTRAL BUSINESS DISTRICT ( 14'47) Motion by Mrs. B-i#;;;;;;;a.a iy utrs. Lubeck. that council extend the deadline to remove Drivare benches fr". ;;iii.;;;;,:"ij*;;l;iil cenrrar Business District until Julv 1, 1996. 'Carried by a vote of 4 ayes. Mr. Blanton was absent' LIBRARr,rrr^/CI.ASSIFICATIoNPI.-AN/LEADDIF-FERENTIAL/RESoLUTIoN1996-16(i6.10) Motion by r,r,,. senia,nin, q.-"-;g'^q-Ii l'i', f*:l*:tS*l'L:*tt}t*'"l,iL"'3'^1tf NoNPoINTSoURCE/PoLLUTIoNPREVENTIoN/NSPECTINGINDUSTRIALCoMMERCHL FAcrLrrIEs/cENTRAL FIIfi;id'iE-af1.;'a$p1PY.ry:9-:H19:: f3*'11'l'JiJJ.-,,'#ll,'J""(;"#:."fr."".i1"Xi,."!Jqi!fo-i[ l,i: ^q**lii.'**X*,]*P**:'l]**l*'^T;'I entitled, entitled, ASSISTANT'I was absent. Mr. Blanton was absent. Carried by a vote of 4 aYes. TC: 08: MM022o96 by a vote of 4 aYes. Mr' February 20, 1996 Los Gatos, California LOS GATOS BOULEVARD r5780/COMMERCIAL APPEAL-,/RESOLUTION 199619 (19.09) Y:,,.,"^1or-11:;Y$ll:.1:".g1*d_ly__Mn.Lubecktfi r-c;".ir;;,n.ioiu,ionrsso-rqentitled, Carried by a vote of 4 ayes REY-C9NTRqL/MOBILI{OME PARX/PROPOSITION l99/RESOLUTION 1996.20 (20.16) Y:,1* of}1;,Bjli:gil,-r=?1d1d^-b-y_yL Lubec( tr,ai co"rcil-"ffi'{".Jlrtion rsso_zoentitled, pdLwr rvlpAo url\.r - rytLrDt LErl(rMl,IiAl ru by a vote of 4 ayes. Mr. Blanton *as ubsenf Carried ,rT,Y}:"lIT,_lrTr-rAx/rowNqopp1LIEN_DMENT/oRDINANCE2010(21.0s) Y:,l1ll or^Yf...*l.ig,t_.=g:td^-!r {.1 hil}l''il'c;;.^";ii;di,il Ero"ii/ance zoroentitled, M"ott *" " r* ro* HEARINGS *TE,:::T.lgjfllggcE plLL corrRr/REsrArrRANr/BEERAND wTNE/Ap pE L (22.0e)Mayor Attaway slated that this was the.time and place duly noted for public hiaring to considei itfl*"..11_Pging commission d,ecision denying a.requeir to amend the Town coie ro permirme aoolllon ot the tollowing as allowed activities in the LM Zone where a Conditionil Use I-*::::^1 (A) Commerciat Recreation;. (B) An esrabrish;.;i ,;ilirt;.;h;lic beverageiror^consumPtron on premises in conjunction *'ith a restaurant. 7,orung Or-dinance Amendmlnt4'-95-2. Appellants: Thomas and Maureen Albanese. Mayor Attaway stated that this was also the time and place duly noted for public hearing to Pryig"t appeal of a Planning Commission decision denying a ."[uest to "p.ir];. Bocce BallFacility to serve beer and wine as part of a small restaurint]and tir rehabiliiate and reconstructwhere necessary an existing. ind*lrial building in rhe LM zn"e. iripeity iocared at 565University A191ue. Conditional Use Permit-Application U-g5-26. e!"i.,ii""trr" and SiteApplication s-95-73. Property owners/Applicanti:' Thomas and Maureen etuanise. The following people from the audience spoke to this Lsue:Ker Rodrigues, Architecl, 18495 Beck Ave., Monte Sere-no. Spoke of the historic building, thegnique opportuniry to save it and the expansion of the LM Zirne. Tom Albanese, Applicant, 15435 peppei lane, saratoga. spoke of the community benefitderived from this project. TC: 08 rM ir022o96 Blanton was February 20, 1996 ks Gatos, California HEARINGS CONTINUED LINII ERSITy AVENIIE 565,/BOCCE BALL COURT/CONT. Speakers continued: John Travis, 15245 Hume Drive, Saratoga- Real Estate agent who has been marketing the property for three years has not seen another prospective purchaser interested in keeping the existing building. Robin -Tote, 15100 t s Gatos Boulevard, representing the l.os Gatos Chamber of Commerce' supported the concept of the bocce ball court. Peii Havitich, 520 University #12, spoke in favor of the improvements which will be seen on the property when the project is complcte. Oor6ttry Shattuclg 116 Towne Terrace, #3, spoke of the industrial nature of the area and the need to keep affordable rental locations for small businesses and light malufacturing.- Chris Wiley, 544 University Ave., is in favor of the upgrading of the neighborho_od with a well cared for business and for'esees the residential neighborhood in the area benefiting from the upgrade. Ro-tando Negrini, 508? hne Hill Road, is a member of a bocce ball club and is pleased to see this project being developed. No one else from the audience addressed this issue. Motion by Mr. O'Laughlin, seconded by Mrs. Benjamin, to close the public hearing. Carried unanimously. ZONING ORDINANCE AMENDMENT A-95.2 Motion by Mrs. Lubeck, seconded by Mr. O'l-aughli[ that Council grant the appeal and approve Zoning Ordinance Amendment .4-95-2; and make the findings that it is consistent with both the Generil Plan and the Downrown Specific Plan; the land use elements of both of.those plans speak to the uses allowed in the LM Zone and 1o the other conditional uses seen in this area; tiris use can be compatible with the LM Tnne and therefore the findings can.be made that it is consistent with the'General Plan and the Downtown Specific Plan. Finding also that the planning Commission did not make this decision because the discretion ro modiry policy vests with Council. Carried unanimously. The Deputy Town Clerk read the Title of the Draft Ordinance. Motion by Mrs. Lubeck, seconded by Mr. O'laughlin, that Council waive the reading of the Draft Ordinance. Carried unanimously. I CONOmlOml USB Pnnlftf' Carried unanimously. TC: D8: M M022096 Motion by Mrs.seconded by Mr. O'I-aughlin, that Council introduce Of"! O:9ry1:: 5 February 20, 1996 l-os Garos, California HEARINGS CO}.{TINT]ED uNrvERSrTy AVENUE s6slBoccE BALL COURT/CONT. Motion by Mrs. Lubeck, seconded by Mrs. Benjamin, that Council approve the Conditional UsePermit Application subject to the conditions listed in attachmint *3 wittr the folowingamendments: Maximum hours of operalion shall be 10 am to 10 pm Sunday through Thursda|and from 10 am to 11 pm Friday and Saturday, with the stipularion that aier a t*elve monthreview, if there are no probrems, the hours courd be extended from r0 am to 11 pm sundayrhrough Thursday and 10 am to 12 an Friday and Saturday; That the serr.ice of alcoholicbeverages shall not be permined after l0 pm Sunday through Thursday, except ior holidays andevenings before holidals, and shall-not bC permiued after il pm Fridiy and'saturday, holidaysor evenings before holidays, with the stipulation thal after a iwelve month review, if there areno problems, the hours could be exrgnle-d to 11 pm Sunday through Thursday and 12 am Fridayand Saturday; That the exterior shall be wood siding. Counci finds thai this proposal: is consistent with the General Plan; an enlancement to the Towo; does not detract fiom Oe zoneitself, nor destroy the area in any way; is preserving and renovating an historic structure withinthe Town. Council finds the use is consiitent with other conditio'nal use permits which havebeen allowed in this zone, and it preserves the LM Zone. As required by hesolution 1994-29Council finds that the service of alcohol past 10 pm: does not distroy tle neighborhood; iscompatible to the zoning; is part of operational cbnditions which are aitached ai conditions tothis approval; shall be subject to the satisfaction of the Chief of Police. As required by Section lV.P of the Redevelopment PIan Council finds that this proposal is consistent with theRedevelopment Plan based upon the findings of consistency'wiih the General plan and theDowntown Specific Plan. The condition of new wood siding constitures a demolition of anhistoric structure, and Council finds that there is no supportivJevidence proving the corrugated metal exterior was the original siding, therefore by removing it the original fabrii of the buiOingis not destroyed. Carried by a vote of 4 ayes. Mr. Blanton abstainJd. Motion by Mr. O'l,aughlin, seconded by Mrs. Lubeck, that Council approve the Architectlre and Site Application 5-95-73 noting the same conditions and findings'ihat were specified in the motion approving the conditional Use permit. carried by a vote of 4 ayes. Mr. Blanton abstained. I,oS GATOS BOULEVARD 15643/SPEEDEE OIL CHANGE/ZONE CHANGE/HEARING (23.09) Mayor Attaway stated that this was the time and place duly noted for public hearing to considei Planning Commission recommendation to approve a request for a change in Zonj from c-1 to CH.for property currently occupied by an abandoned automobile service s-iation. If no significant environmental impacts are identified as a result of this project, a Negative Declaration will be recommended and an Environmental Impact Report will not be required. Property l,ocatedat 15643 [,os Garos Boulevard. zane change Application 2-95-2. Negativi Declaration Application ND-95-5. Property Owner: Benedict and Dominic Chirco. Applicant: Speedee Oil Change, TC: Da: MiIO22096 February 20, 1996 hs Gatos, California HEARINGS CONTINI,JED I,oS GATOS BOULEVARD 15643/SPEEDEE OIL CHANGE/CONT. The following person from the audience spoke to this issue: Virginia Fenieili, 1@52 Pasadena Ave., Cupertinor representing the applicant, asked C.ouncil to c-onsider the zone change and negative declaration, and spoke ofthe project's consistency wilh the General Plan in regards to mixed use on the Boulevard and consistency with the C-ommercial Specific Plan and the tns Gatos Boulevard Plan. The rezoning would remain consistent with the majority of areas along the Boulevard. No one else from the audience addressed this issue. Motion by Mrs. Be4iamin, seconded by Mr. O'Laughlin, to close the public hearing. Carried unanimously. Motlon by Mrs. Benjamin, seconded by Mr. Blantor! that Council make the Negative Declaration. Carriedunanimously. Motion by Mrs. beqiamin, seconded by Mrs. Lubeclq that Council find that the Zone Change is consistint wirh thi General Plan; that it fits within the other uses along the Boulevard; that the gas station use and oil changing use are similar uses; that in regard to_ expansion of uses, this -is a conditional use permii and any other use would come before Council at a plblic hearing; that the Generai Plan designatls the subject site for mixed use commercial which is consistent with the General Plan. Carried unanimously' The Deputy Town Clerk read the Title of the Draft Ordinance. Motion by Mrs. Benjamin, seconded by Mrs. Lubeclq that Council waive the reading of the Draft Ordinance. Carried unanimously. Mrs. Lubeck, that Council introduce Draft Ordinance BOULEVARD. Carried unanimouslY. CABLE TELEVISION/FRANCHISE TRANSFER/BRENMORE CABLE TO TCI/HEARING (24.25) Mayor Attaway stated that this was the time and place duly noted for-public hearing to consider ;;;i;"Ai;#f;r of a cabte television franchise fiom Brenmore Cable Partners, L-P. dba South Bay Cablevision to TCI of Cleveland, Inc. There was no one from the audience to speak to this issue' Motion by Mrs. Benjamin, seconded by Mrs. hrbeck, to continue this hearing to March 4, 1996. Carried unanimouslY. Motion by Mrs. Benjamin, seconded TC:D8iMM022@6 February 20, 1996 Los Gatos, California r,os.glT: .pLvo r 6330/cALvARy BAprr sr CHURCH/RESo LUTToN leecr s ( rg.09)Mayor Attaway slated that this was the time and. place duly noted to consider adopting reiolutiongranting lppeal of a pranning commission deciiion aenying a *qr;J;;;;;r;il of a master *.Lqj::.lT,1g::.expansion of a church facility in *"'i:rioro-'ii,!;;;;i.'fi; master ptanwll rnclude demolition of a-n existing education and a residential building, construction of a neweducatiorl ministry and multi-purpoie/grmnasium building remodeii#i#;ilacilities, and :ry1siol of a parking lor. condirionar use permir AppriLuon u-le-37. N;il;i; DeclarationApplication ND-944. properry located ar t6330 L-oi'Gatos souievara. e'pl"ii"rrTnrop"rtyO'wner: Calvary Baptist Cliurcir. The following peoale from the audience spoke to this issue: Rod Hampton' 16736 Shannon Road, d^isagreed with the setbacks, the use of rhe parking Iot forcommercial pu{poses, and the hours of operation. Myna Skala, 16334 Robie Lane, disagreid wirh lhe masrer plan. Jlm la*e, 16346 Robie lane, submittei an estimate of "rcaraiion for recessing the building intothe ground so as to lower the elevation. Salvatore C.aruso,255 N. Market Srreet #200, project architect for Calvary Church, asked thatthe stipulation for non-purchase of property oi Robie l:ne be aetetea 6ui-to constitutionalreasons. No one else from the audience addressed this issue. Yo,i9T.,ty, Yf:$tl"fit rygond_1d !y Mr. O'taughlin, rhat Councit adopt ResolutionlE CNtitICd, RESOLIJTION OF THE TOWN OF I,OS GATOS GPAIVTIN(r AN ^PDI'AI 1996- *hi@umade this evenirg:. Paragraph D shall dr@ t[EiEence toihe purchase of and add Senior Pastor, Dr. Fred Wilson's letter as altachmenr "(l, uand add Senior Pastor, Dr. Fred :terence to the purchase of property on Robie L:ne letter as altachment "C', which states the Church,sintention of limiting its expansion to the current rrrasiei Fian; Condition 4 in Exhibir a amenos'other activities' ro similar activities of a community and neighborhood benefit; condirion 10in Exhibit A amends the bus acrivity. It stipulates a-15 minutl idling maximum "r ir," Lu. uu-to pressurize brakes and de-ice. windows; idling by the trus barn n-o longer than necessary inconjunction with service to the buses; interim b-us ioading zone by mulri-iurpoi" uoa icoi"ioi,conjunction with service to the buses; inierim b-us ioading zone by mulri-iurpoi" uoa icoi"loi, buildings until the driveway improvemenrs have been coiplered.' car;eil uirani.orsiy. SANTA ROSA HEIGHTS BENET.TT ZONE/RESOLUTION 19962r (25A_14) I-A,NDSC,I,PING AND LIGHTING DISTRICT #I/ANNEXATION entitled, Ds(]\prNG A.l\rD LTGHTING D ISTRICT #I/ANNEXATION Motion by_Mrs. Lubeclq secorded bI Mr. o'LaughlirL that council adopt Resolution 1996-21 withtheamendmenttothefourthparagraphtt,it'@*,e.'.; Carried unanimously. TC:Oai Mt'1O22096 8 SANTA ROSA HEIGHTS/OPEN SPACE MAINTENANCE DISTRICT #2 DrssoLLiTIoN oF DISTRICT/RESOLUTION 199 6-22 (258,14) February 20, 1996 [,os Gatos, California that Council Resolution 1996-22 Carried I-ubeck, that this evening's meeting be adjourned unanimously. SANTA ROSA HEIGHTS/ORDINANCE OF DISSOLUTION oPEN SPACE MAINTENANCE DISTRTCT #2 (ac.14) Council consensus to hold this item until the property owners and their representatives can submit financial data substantiating the assessmeirs 6n tliese properties, and Town can determine how much money is being held in- reserve. Item not to be continued for more than 45 days. The following people from the audience spoke to this issue: Scott Gloveri14370 Saratoga Ave., Saratogh, partner in Wilson Development, asked that excess funds be returned to the property owners. Gregory Howell, 125 GlenRidge, representing Mr. Azar, sPoke of.the disproportionate property tur"i t.i the privious and currint pioperty ofuners associated with the Open Space District' No one else from the audience addressed this issue. SANTA ROS.{ HEIGHTST/ENGINEER'S REPORT/MAINTENANCE COST/Fy 1996-97_(25D.14) Motion by Mrs. Lubeilq seconded by Mr. O'Iaughliq that Council accept Engineer's Report.on Fiscal Y6ar 1996-1997' Maintenanie Cost for-Santa Rosa Heighs' Open Space. Carried unanimously. PARKING IIUPROVEMENT PLAN/CENTRAL DOWNTOWN (26.42) Motion ty Mrs. Benjamin, seconded by Mrs. Lubeck, to continue this item to a study session to be held April 29, 1996 at 7:00 pm. Carried unanimously. ART SELECTION PANEL/ARTS COMMISSION RECOMMENDATION.( 15.20) Motion by Mrs. Lub6ck, seconded by Mr. O'laughlin, that Council request that the Arts Com-isslirn expand its outreach info the community in a-n attempt to identifr an arts orofessional wh6 lives in lls Gatos, and to send a memoto each of the boards and commissions ;;iifyi;;'ih";-"iit" i.-"t f- no-in".r a1 . giving them a time to reply with suggestions of thos6 w-ho night serve on this panel. Carried unanimously. couNCIL COMMITTEE REPORTS (27.10)- Mr. O,l-aughlin reported on our Siiter Gty,Listoel, in Ireland. This also concerns the San Jose- buUtin Sifter City Committee. There *ill be a Silicon V-alley S-t. Patrick's Day Event, from March 7th to the i7th. Jimmy Deenahan, Junior Minister of State for the Food and Agricultural Deoartment. and Frank Feelev. the oubiin City Manager, will both be here, including rhe brd #;;aDi,;iin.-Outfin Corincitmembers ani the L.6rd Mayor of Derry. Mr. Deenahan will be in three locations in the United State; New Yorh Boston and Los Gatos' Motion by Mrs. Lubec\ seconded by Mr. ADJOURNT{ENT Motion by Mrs. Benjamin. seconCeC by lvt;s at 10:20 p.m. Carried unartirnously,"'-",.-"-r ^rrEsrnloAflJ t TC: 08: M M022096 Marian V. Cosgrove, Town Clerk I\f EETING DATEz 0l/22/16 ITEI|I NO: 2 DATE: TO: JANUARY I5,2OI6 FINANCE COMMITTEE FROM: LAUREL PREVE"TTI, TOWN MANAGER SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22, 2OI 5. REMARKS: At the December 22,2015 Finance Committee meeting the following questions were raised by the Finance Committee members regarding the Town of los Gatos Unfunded Accrued Pension Liability (UAL). Question l: Please provide otler information so the Committee has tlte whole picture, Answer: To provide some background/perspective for the Finance Committee the following is a summary of important events to date regarding the Town's California Public Employees' Retirement Systern (CaIPERS) pension plans and retiree health care plan, i.e. Other Post Employment Benefits (OPEB). California Public Emolovees Rairernent Svstem (CaIPERS) CaIPERS is the nation's largest public pension fund with total net position in the Public Employees' Retirement Fund (PERF) of $303 billion as of June 30. 2015. Headquartered in Sacramento, CaIPERS provides both retirement benefit services to more than 1.8 million mernbers and 3,007 school and public employers, and health benefit servic€s to 1.4 million members and 1,153 school and public employers. CaIPERS also operates eight Regional Officcs located in Fresno, Glendale, Orange, Sacramerto, San Diego, San Bemardino, San Jose, and REMARKS (cont'd): PREPARED BY:STEPHEN CONWAY Director of Finance & Administrative Services Reviewed by: Assislant Town Manager _Town Attomey _Finance NiwcR\MmhwdtFiksfourcil C-onu u.c - FINANCE12o I 6\Slcv6 FinrDcc Coomi!.c PERS A (3).doc Updrt.d: I1,2013 ATTACHMENT 9 PAGE 2 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMM]TTEE MEETING DEC 22,2015. JANUARY 15,2016 REMARKS (cont'd): Walnut Creek. Led by a l3-mernber Board of Administration consisting of mernber-elected, appointed, and ex officio members, CaIPERS membership consists of 1,206,354 active and inactive mernbers and 613,410 retirees, beneficiaries, and survivors. Active death benefits are paid as a resuh ofa member death prior to retirernent fiom state, school, and public agencies. Established by legislation in 1931, calPERS became operational in 1932 to provide a secure retirement to state employees. In 1939, new legislation allowed public agenry and classified school employees to join CaIPERS for retirernent benefits. CaIPERS began administering health benefits for state employees in 1962, and five years later. public agencies were able to join the health program on a contract basis. The Town's pension ptan is a "defined benefit" plan. This means that the plan provides for benefits basei upon pay and years of service, versus a "defined contribution" plan utrerein the plan provides for promised amounts of annual ernployer contributions. The Town's defined i"n"ii, ptajl is funded by a combination of annual employee and anployer contributions based on annual rates set forth by calPERS as well as eamings on the accumulated firnds in the plan' currently approx imately 66Yo of the market value of the calPERS fund has accumulated from eamings generated by the contributions to the fund. originally, most cities offered two basic defined benefit plans, a 2o/o al age 50 plan for safety and a 2;/o at ige 60 plan for miscellaneous anployees. over time, new state legislation allowed governments to offer enhancernents in its p€nsion plans and many cities in califomia made c-hanges in their pension plans as a result of the collective bargaining process. ln 2008 the Town aaopied a f% at age 50 plan for safay ernployees and a 2'5o/o at age 55 plan for miscellaneous ".iloy"o. Employen within these rctirement tiers are referred to as "classic" members. The Shte;f Califomia Suprerne Court has held that the pension promises made are'Aested rights" and cannot be altered or modified unless they improve or maintain the same level ofbenefits as promised originally through the bargaining process. Employer and employee contribution rates to fund promised benefits under these plans are set by Catigns actuaries. The rates are based upon the following assumptions: . Investment retums on the amounts contributed to the plan o Assumed average age of retirernent for the plans covered membsrs . Average future salary increases for employees covered by the ptan rHowlongthecoveredmernbersandretireesareexpectedtoliveandreceivebenefits PAGE 3 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROI\4 FINANCE COMMITTEE MEETING DEC 22.2015. JANUARY 15,2016 REMARKS {cont'd): Changes to any ofthe assumptions listed above, either positive Oetter than expected retums) or negative (lower than expected retums) will have an annual effect to the contribution rates. Through the early 2000's, the amounts paid into the plans were sufficient to fund the promised pension benefits, and in many cities, (including the Town of [,os Catos) the amounts in the plan exceeded the liabilities of the plan. This caused a "super-funded" starus wherein many employers, including the Town, were given a "0 percent" contribution rate for a number of years (during this rate holiday the Town's employee rale continued to be paid by the employees through payroll deduclions forwarded to CaIPERS). Recognizing the volatility ofemployer contribution rates, the Town conservatively charged iselfthe "suspended" contribution rate and set this money aside lo be able to offset future increases in the employer contribution rates once they reinstated by CaIPERS. The Town's plans remained largely funded wherein plan assets were approximately 85 to 100% funded until the economic recession of 2008 and 2009. During the recession period, CaIPERS investments sustained an approximate 25% loss in value due to the declines in the stock market. This decline led to two major impacts, (l) an increase to required contributions to make up for the loss in valug and (2) a loss in funding percentage position because the value of the assets were reduced sigaificantly by the downtum, despite these losses, lhe amounts of future pension promises remained unchanged, resulting in ilcreased unfunded liabilities. The Town responded to these events and took action to ameliorate thes€ negative events. In Fiscal Year (FY) 2012l13 the Town adopted a change to its miscellaneous employee plan, with ernployees hired aft€r September I 5 , 201t entering into a new 2/o at age 60 plan. In addition, in 2014 the Town paid offa $4.5 million "side fund" obligation sel up by CaIPERS actuaries when 2005 state legislation moved the Toun's safety plan into a pool of safety plans. As a result of this payoff, the FY 2014/15 Town's miscellaneous employee rate was 22.3o/o; and lhe safely rate was 29.56%versus a projected safety rate prior to the payoffof43.87%. Effective January l, 2013 statewide legislation established the Public Employees' Pension Reform Act (PEPRA). changing the pension formula for'heff' safay ernployees to 2.7o/o at age 57, and miscellaneous employees to 2o/o al age 62,both plans effective January l,2013. While this does not provide immediate cost savings, it is anticipated to reduce future salary and benefit expenditures over the next l0-15 years. Pension reform continues to be an important topic in regard to cost-containment and staffis monitoring a number of state-wide initiatives that may impact future pension costs. PAGE 4 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC22,2015. JANUARY I5,2OI6 In April 2013 the CaIPERS Pension and Health Benefils Committee adopted recommendations to REMARKS (cont'd): modifo both the smoothing and amortization policies and implernent these changes going forward with an impact to ernployer rates beginning in FY 2015116. As a result of this change, the smoothing period will change from a IS-year rolling period to a five-year direct smoothing rate. The arnortization period will go from a 3O-year rolling period to a 30-year fixed rate. These changes will require the Town to pay sigrificantly more into the systan. Estimates indicated that these changes would result in the Town palng 32% above the current rate over the next l0 years. The Tou,n is expected to see the highest increase in the first year of implernentation (FY 2015116), with smaller increases expecled for the following nine years. In FY 2015/16, the Town's miscellaneous employee rate is 25.43Yo; the safety rate is 32.360/o; and the PEPRA (new hire) safety rate is 12.2%o. These rate increases were reduced as a result of the Town's 2014 side fund payoffof $4.5 million. This payoffhelped to reduce the volatility of the effects on the changes to assumptions made by CaIPERS actuaries. It is expected that over the near term rates will continue to risq however at a much lower level than previously anticipated, eventualty pcaking and then starting to decline as more and more ofthe employee population will be composed ofpeople hired under the new PEPRA benefit formulas. The CaIPERS October 2014 Actuarial Valuation report includod changes to the past practice of folding cost adjustnotts fiom revised amortization methods, actuarial assumptions, and investrnent gains and losses into the Employer Contribution Rates. With October 2015 actuarial report, CalpERS identified and separated the annual contribution for the unfirnded cost ofprior year service known as the 'unfunded Accrued Liability' (uAL) from the annual service cost, known at the.Normal cost' contribution. This approach is intended to stabilize employer contribution rates, and will allow employers the opportunity to address payment toward the UAL as applicable to their circumstances. By breaking out the unfunded portion from the annual Normal Cost paymen! agencies can now decide to pay down some or all of their UAL, at any point in the future, using methods of their choice. Payment could be made through the use of available funds, from reserves, or by borrowing/obtaining debt (i.e. bonds) at lower interest rates. Other Post-Emolovment Benefit Plans (OPEB) ln l99l tlnough Town Council resolution the Town entercd into an agre€ment with CaIPERS to olfer health coverage to its retirees. In order to participate public agencies were required to PAGE 5 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22,2015. JANUARY 15,2016 submit a resolution by their goveming body and agree to the regulations covering provisions of REMARKS (cont'd): the benefits under the Public Employees Medical and Hospital Care Acl (PEMHCA). The Town makes contributions to Califomia Employer's Retiree Benefit Trust (CERBT), an agent multiple-employer defined benefit heatlhcare plan administered by CaIPERS. The purpose of the CERBT Fund is to provide Califomia govemment employers with a trust through which they may prefund retiree medical costs and other Post-Enmployernnet Benefits (OPEB). The Town uses CERBT as its investment vehicle and requests disbursements on an as needed basis to reimburse the Town for the cost ofrairee heatlh care insurance benefits. The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefimd benefits as determined by the Town. To date the retiree health benefits have been paid entirely out ofcurrent operating budgas and no withdrawals have been made from the Town's CERBT "pre-firnding" ac.ount. The currenl balance in this account is approximately $7.6 million as ofthe close ofbusiness January 14,2015. When a city joins PEMCHA it agrees to provide acress to the bealth benefits to both active employees and annuitants on an equal basis. This means that the employer, subject to collectively bargained exc€ptions, is required to make specified and equal contributions towards premium costs for active employees and annuitants. The contribution levels are set in statute. There was a provision to offer "unequal" levels ofbenefits as a resuh ofthe bargaining process, Based on stalfs research, it appears the Town was approved at an original "unequal" funding level for its annuitants. Upon entering PEMHCA the Town paid a share of the monthly prernium for its retirees, while the retirees were responsible for paying the remaining premium. PEMHCA firther provides for annual increases for employers using the "unequal" method. The intenl of this language was to insure that within 20 years of contracting with CaIPERS, a contracting agency would be requircd to provide equal contributions for both active employees and annuitants. The annual adjusunent is limited to not exceed $100 for agencies that joined PEMHCA on or after January l, 1986. State law provided a minimulll statutory increase to the Town's participation at a minimum $ 100 for agencies that joined PEMHCA on or after January I, 1986. Because annual health care prernium increases have exceeded the statutory minimum, the Tou'n's contribution rate remains '\rnequal" wilh annuitants receiving approximately 70 to 800/o of the contributions for active employees. The Town responded to the increases in its annual contributions to its annuitants through the bargaining process wherein effective for employees rairing after February l, 2016 the annuitant of medicare eligible age is reimbursed to a maximum amount of benefit matching "Kasier North" Employee or Employee plus One. PAGE 6 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22,2015. JANUARY I5,2OI6 REMARKS (cont,d): Question 2,3 & 4z Whet is the total emount of Los Gatos, unfunded penslon lieblllties? Please provide en historical perspective of where Los Grtos has been in the pes! our present, and our projected future with our pension llabllldes. Unfunded tiabillty as of June :lO, 2014 Pension Unfunded Uability (Sefety & Miscl s 33,601,030 OPEB Unfunded Liability s 15.530.792 Total Unfunded tiability 5 49,13L,822 The following graphs illustrate the change of the unfunded liability for the miscellaneous and safety plan over the last l4 years. Unfunded liability is determined by CaIPERS actuaries and provided to the Town of l-os Gatos biannually. Because actuarial assumptions change unfunded liabilities are determined at a "point in time" using actual results, no future amounts ofunfunded liabilities qg2rqiected because there 4!fg_444_pgt!!!,!9!germine the actual liability. Safety Plan - Untunded Uabiliw in $milllonsl* ,-,il 51' il[[[ PAGE 7 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22,2015. JANUARY 15,2016 REMARKS (cont'd): Misccllanious Plan - Untund€d Liability in $milllions Question 5,6 & 7z What is the annual cost or peyment the Towtr is required to pay at this time? Please provide an historical perspective ofwhere Los Gatos has been in the past, our present, end our projected future with our pension liabilities and payments. What is the Town's annual paymetrt to CaIPERS and what percentage ofthe budget does this number represent? Answer: CaIPERS Actual retirement cost for the last five years and the current year budgeted cost is illustrated in the table below. The average annual cost is 10.5% ofthe General Fund operating budget. I 1", 'i i"[t '-,,-, ,* tl?l?l i'I rnt rr2 rorr &r. PAGE 8 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC22,2015. JANUARY I5,20I6 'Ff mfii/r4r *.t6onll'E Pt S gay Su?fuod Porotf 9,5Ja,5X REMARKS (cont'd): Future pension costs val.y for variay ofreasons, including PERS roquired rate. The most current forecasi that is available on those rates and required contributions are illusrated in the table below. .crrE6,lati.,.Joncactut a' .Ndtuffilrbntqn t.futxt n I4,,b. Fr *tto laoq ir ltnhd.a A@rd t,.tw l l.t) laa!,. 6n'ol "ab 6nt sotro,b.,Dtt tdls rN r@.bt abt td" 20ts OPEB The below table illustrates the last five fiscal years actual and the current fiscal year budgeted cost ofOPEB. Based on the latest actuarial forecast completed in June 30, 2014, the Town's required contribution will be berween $2.5 ancl 52.-6 million annually in the next five yeam (illustrated in the table below). The Town is required to have an Actuarial Study in every two year' The nexl study will be completed by 6/30/2016' t\ ,tr10/].1 t\ ,,!l./t2 FY rotz/A Ft tur1lta.at ,,'L4,g d m$/$ P.l!ioo C6t- lnN.l N.qciEd Colit,iborion s2,99 705 93,6n,993 93,@4,751 53,1V,1*93,tEC.n3 54,095.674 !..534,516 ,.949.705 s3,511,993 93,@4.751 sE.319.294 913E0,253 54,093,414 x ot Op.r.dnB Sudtr! lslttDt Sid.-tu id P.y Olr)9en 11.)%1C tri 9.8*l0.ar(110* x ol Oecnrhl &da.t lwlih Sld.-rund P.Y Olf)2t.6% PtRs thDlorcr ne s.f.tv r( .! 50 33.5€1(38 55X 39.3116 40 85t6 79.$*12.$* PtR5 Emelover E tt Mbc Z5t o s!14.4r(tt 49,'19 62%219016 22.38ra 25.43% Ft a6lt Ft rdTlrt rY ar4[9 ttr 2itglzo a't@la DIx ln^la.' .$ <,..n :r!. a lo 2t 73%2120l.21.20,6 2L]o''2l.2AX rlialorn nrtn* d Urruid.d Er.d tr.Ully-ta Q iO' ffi s75s,232 5932,566 31,120,69 31.aO2.527 51,4S,967 26 9596 2AWA 30.8096 32.70ta 33-1U/. fY 20ro^r F't aitt2 fl ,,I2l,;3 fl ,BAa FY 2OUlrs FY ltttlS s580,7!9 s635.956 s587,0a7 s753,856 5839,a70 5E82,54! 5E20,009 91,tEo,m 31,2@,O0 51.3@,0@ 9r.3@,@ s1.5@.m tGad oallcon 9r,{d).7i19 3r.695,95 3r.a&.6,s161856 s2.159.a70 913846.t tY 29L5l17 aY 2f:?lt3 EY ,,,3119 F\ ,Jtgl,,ft Ml2t r^-^ (h.'.f e.d... M.di6l 9909,127 s935,4O1 s964,493 5993,428 s1,023,231 otEa . A,lnurl RG.ulGd Contributlon Tot l oPEB Coit 91,6m.m s1,6m,@ 51,60,m s1,6{D,m s1,600,m s2,w,721 s2.s36,401 sas64,493 s2s93,428 s2,623,231 PAGE 9 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22,2015. JANUARY 15,2016 REMARKS (cont'd): The following two charts illustrate the changes of the fimded ratio during the last I4 years for the Safety and the Miscellaneous plans. Safety Plan - Funded Ratio Town of Los Gatos -Fu.dedRatb 2m1 2m2 2m3 204 2@5 2m6 2m7 2@8 2m9 2010 2011 2012 2013 2014 Ia}096 -+ PAGE IO FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC22,2OI5. JANUARY I5,2016 REMARKS (cont'd): Question t & 9: whst ere the assumpdons behind the calPERS estimate for the Town? If the minimum payment or required payment is made, does the brhnce grow, stry constent or emortize? Answer: Employer and ernployee contribution mtes to fund prornised benefits under these plans are set by CaIPERS actuaries. The rates are based upon the following assumptions: . Investment retums on the amounts contribut€d to the plan o Assumed average age ofretir€ment for the plans covered mernbers o Average future salary increases for ernployees covered by the plan . How long the covered mernbers and retirees are expected to live and receive benefits Safety Plan - Funded Ratio Town of Los Gatos 120.O16; -tunded Ratio &.06 40.016 20.0* 0.0,6 2@1 2@2 2m3 2@4 2m5 2m6 207 208 2@9 2010 2011 2m2 2013 2014 ,**1 EO.O% PACE I I FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETINC DEC22,2OI5, JANUARY I5,2016 Changes to any of the assumptions listed above, either positive Oetter than expected returns) or negative (lower than expected retums) will have an amual effect to the contribution rates and balance. REMARKS (cont'd): Question l0: Horv does Los Gatos' liabilities compare to neighboring municipalities our sizesuc[ as Campbell, Saratoga, and others? Answer: As illustrated in the chart below, the Town of l-os Gatos current funding ratio is an average of 7E.7vo and trending above the national average of72o/o. The city of Siratoga's fundingratio was 8l% at the time they started to pay offthe city;s portion of unfunded liabilitis. UYt lc 7''1 - 7* 7.,1 ,24 ,6 5d( ce* 6{} PAGE 12 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC22,2OI5. JANUARY 15,2016 REMARKS (conl'd): s7o'o@'om Unltrnrled Liabiliw - ss8,480,495 S5O,OO,OO i--- - s40,o@,0m 9at,0@,0@ ' s2o,oo,ofl) Liability - Compared ttother cities $45,0s7,0s1 93s,7O9,341 S34,1rs,954 s23,235,srs Gllroy C.mpbcll MorFn Hl! Los G.to3 Los Aho3 r Total Safety ! Total Misc so' Question ll: Recently saratoge paid ofrits unfunded liabilifies and were eble to sgve themselves $5 million? What approech did Srratoga use md why? Answer: The City of Saratoga's total Accrued Liability (AL) at June 30, 2013 was $37 million. $30 million funded portion, and $6.9 million unfunded portion. The City took an action to pay off$3.3 million immediately as well as accelerated their repayment plan by paying an additional $500,000 to calPERS annually. with this action saratoga is estimated to fully pay their UAL funds in l5 years. city ofSaratoga utilized capital lmprovement, Fiscal stabilization and Working Capital Reserve to fund the $3.3 million payoff. Question 8: What is the amount of Pensions peid by CaIPERS? Answer: The pension amount paid by CaIPERS varies by members based on the time ofthe service years, contract group and final salaries at the time of the retirement. sso,o@,ooo PACE I3 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC22,2OI5. JANUARY 15,2016 Question 9: What is the rate of return on their investments (actual versus projected)? Answer: CaIPERS estimates 2.4% investment retum for FY 2014/15, and 7 .5o/o rate of retum on investment every fiscal year ihereafter. REMARKS (cont'd): The following chart is from the CaIPERS October 2015 Annual Valuation Report illustrating the 20-year historical annual retums ofthe Public Employees retirement Fund for each fiscal year ending on the June 30th. Beginning in 2002, the figures are reported as gross offees. CaIPERS average rate ofreturn based on the 20-year history is 9%o. 23.Oy. 20.o95 15.096 5.4% 0.0% -5.096 -10.096 -!5.0t6 -zo.o% -25.Wr I :J s *lo i==l iir$el*1t t-*l t I t 9 }Q I ,s s6 e7 eE rr'* f I or'* or'0.'or'f 10 1l 12 13 14 lr..9 S* Question I l: Verify that if the projected rate of return is too high, then the pension costs of the Town rise. Answer: Market retums are one of the assumptions that factor into the conkibution rates developed by CaIPERS actuaries. If there were no other changes to other actuarial assumptions other than the annual rate of retum rate then excess eamings or earnings below assumptions will affect the contribution rates either positively (actual retum rates exceed assumptions) or negatively (actual return rales eamed were belou, assumptions). PAGE I4 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETNG DBC22,2015. JANUARY I5,20'I6 Question l2: Near the bottom ofpage 3 of Director Conwey's responses, he states 'rThese potential future cost increases for both employer and employee costs ere likely to have an impact on future labor negotiations," How should unfunded liabilities be e factor in labor negotiations? Answer: PEPRA allows employers to negotiate cost sharing with employee bargaining units. Beginning on January t, 2018, public agency and school employers that have collectively bargained in good faith and have completed impasse procedures, including mediation and fact REMARKS (cont'd): finding, have the ability to unilaterally require classic members to pay up to 50% ofthe total normal cost oftheir pension benefit. However, the employee contribution may only be increased up to an 8% contribution rate for miscellaneous members, a l2Yo contribution rate for local police officers, local firefighters, and counly p€ace officers, or an I l% contribution rate for all other local safety members. PEPRA also permits public agencies and their employees to agtee to share the cost ofthe employer contribution with or without a change in benefit. These contributions are paid in addition to the mernber contribution rate. The law allows cost-sharing agreements to differ by bargaining unit or for classifications ofemployees subject to different benefit levels as agreed to in a Mernorandum of Understanding (MOU). It also permits cost sharing of the ernployer costs for non-represented onployees. Question 13: What is the annurl shortfall? Answer: There is no annual shortfall for the pension expense, the Town consistently makes 100 percent of its actuarial required contributions as set forth by CaIPERS. The unfunded liability occurs strictly from changes in actuarial assumptions made each year by CaIPERS. Question 14: What is the Town's totrl indebtedness? Answer: The Town's indebtedness is essentially zero. The Town has two outstanding Certificate ofParticipation Issues, the 2002 COP ($7.7 million remaining balance) and the 2010 COP ($13.1 million remaining balance). Both ofthese issues were issued with lease financing secured by a pledge fiom the Town's former Redevelopmenl Agency. As part ofthe closure ofthe Agency in 2012, the Successor Agency has now assumod the debt service obligations on an annual basis and fully pays the amounts due each year. There are a number of smaller lease obligations for equipment (copiers) that are paid out ofthe operating budget, but the debt is minimal, less than $75,000 annually. Question 15: What can be done now as part of a long term strrtegy to meintain the Town in e strong position over time? PAGE I5 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22,2015, JANUARY I5,2016 Answer: Staffbelieves that it should mntinue and further pursue the following: . Co inue lo refine and develop tools to further enhance the reliability ofthe Town's Five Year Financial Forecast. . Develop conservative budgets using reliable revenue and expenditure forecastso Maintain minimal debt levels REMARKS (cont'd): . Identi& key threats such as pension and OPEB cost, and revenue diversity, and make steps over time to address thern as practical. . Continue financial monitoring of fiscal health through quarterly and mid-year reports to Town Council taking mid-year corrective measures as required.o Maintain the Town's insurance protection to mitigate unexpected liability and property damage claims.. Where possible, ensure full cost recovery for Town services.o Maintain a fiscal perspective when considering the long term effecl ofTown decisions regarding the operating and capital budgets, consistent with the Town's Core Goals and Strategic Priorities o Develop reliable ongoing revenue sources for funding a consistent infi'astructure program. Question 16: Whrt are the Councils options to pay the liability down end reduce risk over the long term? Provide pros and cons of eech option. Answer: Pros The benefit of immodiate payment is similar to paying off a 30 year mortgage loan - principal reductions reduce interest costs which in turn will likely reduce the Town's annual contribution rates as det€rmined by the CaIPERS actuaries. Cons The danger ofappropriating funds to "pay down" the UAL is thar if actuarial assumptions change negatively in the future the UAL can re-appear with a new balance. The UAL is a dynamic "point in time" measuremen! the balance cannot be paid offnever to return again unlike expected a 30- year mortgage.. Conversely, the UAL can reduce withoul cash "paydoums" ifthe actuarial assumptions such as market rate of retum exceed the CaIPERS expected rate. It is possible that a UAL can be eliminated over time with positive changes in the actuarial assumptions; this lends credence to not committing current firnds to a long term liability that may correct itself over time. Question l7: What "bucketsrrcen the Council use to eliminate its liabllities? PAGE 16 FINANCE COMMITTEE SUBJECT: STAFF RESPOIT.SE TO QUESTIONS ARISING FROM FINANCE COMMITTEE MEETING DEC 22.2015. JANUARY I5,20I6 Answer: With the recent approval of the $12.2 million commitment lo the Almond Grove Street project, the remains no readily available dollars within existing reserve funds to access for paydown purposes. One pending item is the potential during the FY 2015/l 6 mid-year report for the Town Council to re-allocate some of the approximate $3 million in FY 20t4l15 budget savings that per present policy will be placed in the General Fund Reserve for Capital lmprovements to pay down the UAL ( FY 2014/15 savings totals $5 million, however $2 million was allocated to the Almond grove Street Rehabilitation project by Council in October 2015). REMARKS (cont'd): Question lE: What if CIIPERS goes bonkrupt? Whst would the costs be to the Town under that sccnerio? What options would the Town have? Alswer: Bankruptcy declared by CaIPERS is an unlikely event, however any local govemment pension plan participant would potentially have claim to any rernaining CaIPERS pension plan assets as prescribed by bankruptcy law. It is important to note that CaIPERS holds the Town's pension assets as a legal custodian, but the financial responsibility to pay pension promises remains with the Town. Question 19: What if the Town wanted to leave CaIPERS and have its own retirement Progmm? Answer: Theoretically it would be possible for the Town to leave CaIPERS. If the Town were to leave, CaIPERS continues to administer pension payn,enls for the currcnt and retired worke$ already on the books at the time oftermination. To do that, CaIPERS generally asks for an up- front sum called a 'lermination fee" to pay for potential future pension costs for all current and retired worken. CaIPERS also places lhe Town's funds in a more conservative risk pool, which lowers the potential return rate on its invesunents and in tum boosts the tsrmination fee. The size of the temination fee would likely make it very difficult for the To$n to take such an action from a cash flow perspective. Question 20: Ilow can the Town avoid bankruptcy? Answer: To give a better fi'ame of reference, in looking at cities in Califomia whose financial fortunes fell into crisis and evantual bankruptcy, such :rs Stockton and Vallejo, their funded ratios for pensions/OPEB liabilities exceeded a negative 40002. This means the liabilities were over four tirnes as high as their assets se{ aside for those liabilities. For cities in crisis, the firndod ratios are usually substantially worse than the national average for funded ratios. The Town presently exceeds the national average firnded ratio of approximat ely 72o/o. The Town has a very strong fiscal position for the foreseeable future. For the population size of the city, it currently has the highest possible credit rating available from Moodys (Aaa) and Standard and Poors (AA-). General Fund reserves are at 25o/o of lhe annual operating budget. PAGE I7 FINANCE COMMITTEE SUBJECT: STAFF RESPONSE TO QUESTIONS ARIS]NG FROM FINANCE COMMITTEE MEETING DEC 22,2O15. JANUARY I5,2016 [,ong range financial plans are based on conservative estimales and are updated quanerly during the fiscal year. Rate increases from expected changes in actuarial assumptions are buih into the forecasts and then incorporated into the operating budget. The Town has always met its annual pension and OPEB contribution obligations and barring an extreme loss ofTown assets staff expects the Town to maintain its strong fiscal posilion and credit ratings into the foreseeable future despite any challenges the future may bring. L) =t/) l1':-{z- L-rJ - -J:U4 <z d. att 5EPJZJ qv Xe5.tE ?5I."ig=-iou6vl :5 C r, \t -S ! ; E.i 9E E6€-.9 i. 1;'i'i* e;:E gi i - E- i: :i: c6 I -:ES i @ a- L-a a \Jl =itrU:-1.t- -;:2 *st-i s:ss :-> i-! ie+*S-ss t* itr'*!..-E {-l rst! *EerE-"o eEcEP:!: 3 -3 .:r,- ]Es!;o;.:: 9: U E E".Il{, ;;t; 9tE*E-e i:-::+-!ii:1 :-:-i': ;is{,i-. g\i=! i'i:l'a -: .t I .t .- .: -i(o -\ =\ i\ lJ- -o$ =\e ATTACH,IIIENT IO ur:i:E"g =_EEErErlsSrr E x 0 E E t -:9 f;?tE:f s!.Er;q*;€ eExE2!ot.:dUbtrd: !i;; #iE,, ;EEEE E;.EiE 3 gieE 5sE;$ n(, co p;.:(JL.,r! o.E!<l!f>Ij;=:i"E;9.=-=-. 'c g.i o.--o.-<orc, !;*5r;J-ucqrd.:c;!Eo:t;E;:!IH::)=i::;a._c6io5Oq, L).--clcLsUd i7==";L=IHEi:"E: ia :Yi E-g;Ee+ Iii?i3;€EjEE;iI€3gi is ?ii i.a I I IE j;; ii;r tE' iE:EH : I ir i e* i E?i 3i iEfii ii F'! VIF z,oo o z. Itt o6 :f€erEiii* igi!Eg;rag IEEigEE;;i l-E:trHes:E;5!qi;=lE€ea<ElCEhAea r! i\:!-:a.! oEs i:*trSE!: F +. $-. : !i ts i $::>.! *- * -.1 'tFi I s's : SSsiS=\*S.tririiisssFltii June 29,2012 Brown Act Workshop ATTACHiIII{T 1r Brown Act and Fair Political Reform Act Presentation Preeeuted by Rob Schultz, Town Attorney Presentation Topics o Brown Act - Governrncnt Code 54950- 54962 o FPRA - Governrnent Code 81000-81016; California Code of Regulations Scctions l8l l0-18997 o Council's Policies and Procedur.es - adopted August 2002 Jtne 29.2012 Brown Act Workshop Understanding the Brown Act: Califomia's Local Government Open Meeting Law I ll lor. Doing the People's Business o ". . . Councils . . . exist to aid in the conduct of the . lt is the intent of the law that their be taken and that their be conducted o The people of this State do not yield their sovereignty to the agencies whiah serve them. Thepeople, in delegating authority, theirpuo[c servants The sothat they may retain control over the instrumentJ they have created.' - ll l{[lr lune 29,2012 Brown Act Workshop Brown Act in a Nutshell o An agenda that describes each item of business must be posted before regular meetings. o A meeting occurs when a council majority gathers to hear or discuss city business. e lt is unlawful for a council majority to develop "colleclive concurence as to action to be taken" outside of a meeting. o The public is entitled to speak at meetinos to both agenda items and other iity business. - Overview o Who's Covered o Meetings o Agendas o Closed Sessions o Enforcement 6 Jwe29.2012 Brown Act Workshop Who's Govered o "Legislative Bod/ LegislativeBodyQ&A o What if... lune 29. 2012 Brown Act \Vorkshop Meetings o LaMulFace-to-Face (Serial) Chain orWagon Wheel o Non-Meetings Face-to-Face Meetings o Meetings must be within the City Limits o Telemnferencing is OK o Public Participation Rights rli! r.l lune 29, 2012 Brown Act Workshop Unlawful Serial Meetings . 9Tngt dev.qqp 'colec{ive cono/rence. among a majority outside a meeting Serial meetings are unlawful Non-Meetings o Meeting Exemptions lnclude: o May Not Discuss City Business Among Themselves l, -,',,, 1... { .,',.. 12 t, 6 June 29. 2012 Brown Act Workshop Meeting Q & A o What if... t, Agenda r 72 hours before Regular Meetings or notice 24 Hours before Special Meetings o No discussion or action on other matters o Scheduling and brief responses to public are OK 14 lune 29,2012 Brown Act Workshop Agenda Q & A o What if... t5 Closed Session Overview o "Secret meetings" are closely scrutinized by the press and public o Only allowed when expressly permitted by law o Agenda description is required o No minutes or tape recording, but . . . o Public may comment before session o Some actions must be reported out o Confldentiality required! 16 : [ ]0 t6 lune 29.2012 Broun Acl Workshop Permitted Closed Sessions o Legal Advice on Pending Litigation o lnstruct Real Estate Negotiators o Employee Performance Evaluation & Complaints o Labor Negotiations Enforcement Action can be voided after demand for cure Criminal prosecuton . Tape recorded closed sessions I ll t{,t6 lune 29,2012 Brown Act Workshop l0 Overview of the Political Reform Act o The Political Refbrnr Act (PRA) is the in Califbrnia. Thc Act's major provisions regulatc political activities in campaign flnance. lobbying regisrration and conllicts of intere'st. Every is a public of tlcial fbr purposcs o1'the Act. 19l,r\r .,r L- (,,i,, 1|r, Purpose of the Act o The primary putpose for the conflict-of'- interest provisions of thc Act is to ensurc that, "public otficials, rvhether elected or appointed, perfonn their duties in an their orvn financial interests o,-rnlu"to O' financial interests ofpersons rvho have suppofied them." (Section 81001, subdivision (b).) lune 29,2012 llBrown Act Wbrkshop ln terms of conflict of interest, the Act: o Requires all public ofllcials to in decisions in rvhich thev have a o Requires designated officials to o lnrposes lirnits on designated oftcials on the acccptance ofgifts and honoraria o Lnposes pclst-cmployrncnt reslricli()lls Fair Political Reform Act Conflict of lnterest Summary o Prohibitions o Disclosure o Disqualification June 29.2012 Brown Act Workshop t2 Two Prohibitions o Gifts over $440 o Honoraria :1 Gifts over $440 o Frorn a Single Source o In a Calendar Year lune 29,2012 Brown Act Workshop l3 Gifts lnclude o Mcals o Tickets o Passes o Discounts o Travel 25 I ll lUl(r Gifts Do Not lnclude o Infbrrnational Materials o Gifis Frorn Family o Inheritance o Personalized Plaques o Birthday, & Holiday Gifts if Equal Value is Exchanged 26 I rl:016 June 29. 201 2 Brown Act Workshop l4 Gifts Do Not lnclude o Home Hospitality if Host is presenr o Wedding Gifts o Travel& Lodging in California in Connection with Speech o Admission to & Refreshments at an Event at Which CouncilMember is Speaking Disclosure o Gifts Totaling $50 from Single Donor o Identify Donor and any Intennediary o Intennediaries Must Disclose Actual Source of Gifts 2E I ]t ]116 June 29,2012 Brown Act Workshop r5 Disqualification o Councihnentber Cannot Vote if Decision will Have Material Financial EfIect on Source of Gifts Totaling $440 in the 12 Monlhs Befiore tlre Dccision What's the Value of a Gift? o Fair Market Value . Cost to Donor o Reasonable Approxirnation Based on Value of Similar Things lune 29, 2012 Brown Act Workshop l6 Gifts Not Received lf o Donate to Charity Without Tax Bcnefit o Dorrate to Governnrental Entitv Without Tax Benefit o Reirnburse Donor lbr Value u,ithirr 30 days Honoraria o Pa1,p1sn1 for Speech, Articlc. Attcnclarrce o Prohibited at Any Anrount 32 June 29. 20 | 2 Brown Acl Workshop t'7 Honoraria Does Not lnclude o Admission if Giving a Speech o Food & Drink at a Conf'erence. Convention, Social Event, etc. o Transportation & Lodging for Speech o Personalized Plaque or Trophy Under $250 o Earned Incorne fionr Prof-ession o Payment frorn Farnily o Campaign Contributiolts 3 I : t0l6 Economic lnterest in a Council Decision o Economic/Financial Interest in a Council Decision Triggers Disqualifi cation June 29.2012 Brown Act Workshop l8 Economic lnterest in a Decision o Reasonably Foreseeable That Decision will have a material Financial Effect on your econornic inlerests o Financial Intcrest of Council Mcrnbcr or Lnntediate Farnily 35 I ll l0la' Financial lnterests o Investment of 52000 in Business Entitl, o Investnrent of 52000 in Rcal Property o Source of Incorrre of 5500 or More o Involvement in Busirress Entity: Director, Off-icer. Partner, Trustee. Enrplol,ee. Manager o Donor of Gilrs of Ii440 or More June 29, 2012 Brown Act Workshop l9 500 Foot Rule o There is a presumption that there is a conflict of interest if real property in u,hich a public official has an econornic interest, is located within 500 f'eet ol'the property which is the subject of tlre govenrntental decision. A Financial Effect on the Lessee . A lnalcrial ctl'ccl. shcn prcsunred. m;n,be rchutted br proofthut it is not rcusonabll, Iirrcsccablc rlrat the decision u,ill har e an clli'ct on: . ( l) thc tcnnination darc ol'thc lcasc: . (2) thc amount ol'rcnt paid: . (3) lhc \alue ol'lhc lcsscc's rieht to sublcasc thc propcrtr,: . (4) the lcgally allorrablc usc oL thc cun'cnt usc of tlrc propcrtyt or . (5) thc usc or cnjoynent olthe leasctl l)topcll\' lry l,:ssec. 38 I Ll l{)t6 June 29,2012 Brou,n Act Workshop 20 Disqualification Process Unless Absent frorn Hearing o Disclose on the Record at the Meeting o In Detail o Recuse from Discussion and Vote o Leave the Roorn Not Disqualified Not Disqualified if Etl'ect on Council Member's Irrterest is the Sanre as the Eft-ect on the Public Generally