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Minutes 2000/05/01 7 5 · ", L~ '., Posting Agenda Roll Call New Emp. Regular Meeting May 1, 2000 Gilroy, California The Mayor led the Pledge of Allegiance to the Flag. The City Clerk noted that the Agenda had been posted on April 26, 2000 at 10:00 a.m. Present: Councilmembers: Guadalupe Arellano, Peter D. Arellano, Charles S. Morales, Al Pinheiro, Roland Velasco, and Thomas W. Springer; Absent: Councilmember Anthony C. Sudol III - 7:01 p.rn. The Mayor introduced new employee Janie Perales, Police Records Technician, Police Department. Special Olympics The Mayor noted a presentation of shirts to the Councilmembers for Special Olympics by Michael Nolan, Judy Mireles-Janisch, and two Special Olympic participants. She introduced Sgt. Don<'Kludt who presented a special "Torch Run" shirt to Mayor Springer. It was noted that the Special Olympics event will be held on May 6,2000 at 9:00 a.m. at Gilroy High School. Rev.Div. Work The Mayor recognized the Revenue Division Work Group, consisting oflrma Group Navarro, Bridget Amaral, Carmen Medrano, Patricia Pichardo, Martin Quiroz, and Michele Simonsen. Consent Calendar Budget Minutes The Mayor asked if there was anyone in the audience wishing to speak on any item not on the agenda. There was no comment from anyone in the audience, Motion was made by Councilman Morales, seconded by Councilmember G. Arellano and carried that the following items under the Consent Calendar be approved, removing Item G. Possible change of date and cancellation of City Council meeting and Item I. Resolution in support of clean, safe creeks and natural flood protection, and amending Item F. Resolution regarding the March 7, 2000 Election adding the word "not" approved to wit; to page 2 #6 and amending Item H. Resolution regarding Maintenance District NO.1 changing the date of the Public Hearing to June 15, 2000 rather than June 1, 2000; by the following Roll Call Vote: Ayes: Councilmembers: Guadalupe Arellano, Peter D. Arellano, Charles S. Morales, Al Pinheiro, Roland Velasco, and Thomas W. Springer; Absent: Councilmember Anthony C. Sudol 111: Approved Budget Amendments/Transfers as recommended: Minutes of the Regular Council Meeting of April 3, 2000; Special Council Meeting of April 10, 2000; and Regular Council Meeting of April 17, 2000; Res. 2000-25 Adopted Resolution No. 2000-25 releasing a grant award to the County of RJCEC Grant Santa Clara as part of a Regional Juvenile Crime Enforcement Coalition (RJCEC); RESOLUTION NO. 2000-25 A RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY RELEASING A GRANT AWARD TO THE COUNTY OF SANTA CLARA AS P ART OF A REGIONAL JUVENILE CRIME ENFORCEMENT COALITION (RJCEC). PASSED AND ADOPTED this 1st day of May, 2000, by the following vote; AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES, PINHEIRO, VELASCO and SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: SUDOL J.N.Abbott Approved an Economic Incentive Agreement for J. N. Abbott Distributing, Inc.; Claims Res. 2000-26 Election 7 I~ J , 1 J .' Denied claims of Judy Guardino, Roberta Perez, Eva Trinchero, Mexico Cafe, Tarrah Stites, Gabriele Delgado, Aaron Chan, and Utility Savings Corporation; Adopted Resolution No. 2000-26 approving and adopting the Registrar of Voters' Canvass of the Special Municipal Election and declaring results of such Election held in the City on March 7, 2000 as amended; RESOLUTION NO. 2000-26 RESOLUTION APPROVING AND ADOPTING THE REGISTRAR OF VOTERS ' CANVASS OF THE SPECIAL MUNICIPAL ELECTION AND DECLARING RESULTS OF SUCH ELECTION HELD IN THE CITY ON MARCH 7, 2000. RESOLVED, by the City Council of the City of Gilroy, California that; WHEREAS, by order of this Council a special municipal election was held and conducted in the City of Gilroy and consolidated with the Statewide Presidential Primary Election, on Tuesday, the 7th day of March, 2000 as required by law and the Charter of said City as amended; and WHEREAS, it appears that notice of said special election was duly and legally given; voting precincts were properly established; election officers were appointed and election supplies furnished; and in all respects the election was held and conducted and the votes cast thereat received and canvassed, and tl1e returns thereof made, determined and declared in time, form and manner as required by the Charter of said City as amended and the general laws of the State providing for and regulating municipal elections in said City; and WHEREAS, the Registrar of Voters did conduct the canvass of the returns of said municipal election and did count the absentee ballots cast thereat, pursuant to direction and order of the City Council of said City; and WHEREAS, said canvass was duly completed and the results thereof were certified by the Registrar of Voters and submitted to this Council. NOW, THEREFORE, IT IS HEREBY RESOLVED AND ORDERED, as follows: 1. Said municipal election was held and conducted in the City of Gilroy, County of Santa Clara, State of California and consolidated with the Statewide Presidential Primary Election held throughout Santa Clara County on Tuesday, March 7, 2000 in the time and in the form and manner as required by law. 2. That there were established twenty-three (23) voting precincts for the purpose of holding said municipal election. 3. The canvass of the returns of the votes cast and the counting of absentee ballots cast in said City for Measure M was duly held by the Registrar of Voters in accordance with the order of the Council and in accordance with law and said Registrar of Voters has executed a certificate certifying to the results of such canvass, which certificate is hereto attached, marked Exhibit" A" and by this reference is made a part hereof. Said certificate has been examined and is hereby approved and adopted by this Council as the official canvass of said municipal election. 4. The whole number of votes cast in said City of Gilroy at said municipal election was 7,821 (including 1,464 absentee votes). 5. The measure voted upon, the number of votes received in favor of and against said measure in each of said precincts and by absentee votes, together with the whole number of votes which the measure received in the entire city, are shown on said Exhibit "A", hereto attached. 7544 6. At said municipal election certain measures were not approved to wit; M Community Facilities District NO.1 (Emergency Medical Services) Shall the Gilroy City Council be authorized to annually levy a special tax for eight years (to increase 2% per year) within its Community Facilities District NO.1 to fund paramedic services and related expenses as described in its Resolution No. 99-80, according to the tax formula set forth in that resolution; and shall the appropriations limit for 2000-2001 for CFD NO.1 be set at $2,200. OOO? 7. That the City Clerk be, and she is hereby instructed to enter this resolution in full in the minutes of this Council as a statement of the result of said special municipal election. PASSED AND ADOPTED this 1st day of May, 2000 by the following vote: AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES, PINHEIRO, VELASCO, SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: SUDOL APPROVED: /s/ THOMAS W. SPRINGER, Mayor ATTEST: /s/ RHONDA PELLIN, City Clerk "EXHIBIT A" CITY OF GILROY MEASURE M R B E A G L I L T S 0 U T T R R S N A 0 T C U I A T 0 S N T % 3951 811 414 51.1 3952 602 348 57.8 3953 718 437 60.8 3954 460 187 40.7 3955 691 368 53.2 3956 392 181 46.2 3957 578 253 43.8 3958 946 401 42.3 3959 474 304 64.2 3960 767 419 54.6 3963 431 176 40.8 3964 551 303 55.0 3965 714 421 59.0 3967 714 421 59.0 3969 886 386 43.6 3970 567 276 48.7 3974 686 370 54.0 3978 554 349 63.0 3979 558 318 57.0 3980 579 281 48.5 3981 820 507 61.9 3982 876 480 54.8 3983 375 221 58.9 M E A S U R E M Y E N S 0 196 163 209 115 214 159 99 66 179 140 86 63 103 103 192 151 167 109 209 165 76 56 162 111 196 187 239 142 167 167 153 89 194 136 214 116 177 117 134 111 304 153 249 180 125 82 Res. 2000-27 Maint.Dist.1 Res. 2000-28 A/S 99-52 -Pc . ~ / J'i' , > AB T 14750 1464 9.9 734 592 GR T 14750 7821 53.0 4044 2881 AB T = Absentee Totals GR T = Grand Totals Adopted Resolution No. 2000-27 declaring its intention to levy annual assessments for Maintenance District No.1, except for territory within Annexation No.3, Fiscal Year 2000/2001 and setting a Public Hearing thereon as amended; RESOLUTION NO. 2000-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY DECLARING ITS INTENTION TO LEVY ANNUAL ASSESSMENTS FOR MAINTENANCE DISTRICT NO.1, EXCEPT FOR TERRITORY WITHIN ANNEXATION NO.3, FISCAL YEAR 2000/2001 AND SETTING A PUBLIC HEARING THEREON. PASSED AND ADOPTED this 1st day of May, 2000, by the following vote; AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES, PINHEIRO, VELASCO and SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: SUDOL Adopted Resolution No. 2000-28 approving A/S 99-52 (PUD), an application for Architectural and Site approval of a Planned Unit Development (PUD) to allow for the construction of a 16-foot-wide, 200-foot-Iong permanent bridge over Uvas Creek, APN 810-20-012, Bonfante Gardens; RESOLUTION NO. 2000-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING A/S 99-52 (PUD), AN APPLICATION FOR ARCHITECTURAL AND SITE APPROVAL OF A PLANNED UNIT DEVELOPMENT (PUD) TO ALLOW FOR THE CONSTRUCTION OF A 16-FOOT-WIDE, 200-FOOT- LONG PERMANENT BRIDGE OVER UV AS CREEK, APN 810-20-012, BONF ANTE GARDENS. PASSED AND ADOPTED this 1st day of May, 2000, by the following vote; AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES, PINHEIRO, VELASCO and SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT:COUNCILMEMBERS: SUDOL Acc.Imp.-Bridge Accepted Improvements, RGW Construction, Inc., Bridge Replacements & Replacement/ Bridge Rail Modification, Project No. 99-CDD-505. Bridge Rail Mod. Date Change Res. 2000-29 Safe Creeks Motion was made by Councilmember G. Arellano, seconded by Councilman Morales and carried (Councilman Pinheiro voting no and Councilman Sudol absent) to change the date of the July 3, 2000 Council meeting to July 10,2000 and cancel the August 21, 2000 Council meeting; Motion was made by Councilmember G. Arellano, seconded by Councilman P. Arellano and carried to adopt Resolution No. 2000-29 in support of placing a proposed program for clean, safe creeks and natural flood protection on the November 2000 ballot; RESOLUTION NO. 2000-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY IN SUPPORT OF PLACING A PROPOSED PROGRAM FOR CLEAN, SAFE CREEKS AND NATURAL FLOOD PROTECTION ON THE NOVEMBER 2000 BALLOT. PASSED AND ADOPTED this 1st day of May, 2000, by the following vote; AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES, and SPRINGER NOES: COUNCILMEMBERS: PINHEIRO and VELASCO ABSENT:COUNCILMEMBERS: SUDOL 75~() Library Com. Report CDBG v 00-01 Bob Dillon, Library Commission Chairman, stated that Mr. Rohlfwill present the first draft of the design for the new library soon. He noted that a new library building committee has been appointed. He stated that circulation continues to increase, and thanked Councilmember G. Arellano for her representation on the Library JP A. The Mayor stated it was the time and place scheduled for a Public Hearing on the Community Development Block Grant Program funding cycle for 2000-2001 Program Year and the adoption of the Consolidated Plan 2000-2005. The staff report was noted and further explained by City Administrator Baksa. The Mayor opened the Public Hearing. There being no comment from the public, the Mayor closed the Public Hearing. Motion was made by Councilman Velasco, seconded by Councilman Pinheiro and the motion did not carry (Councilmembers G. Arellano, P. Arellano and Morales voting no and Councilman Sudol absent) to approve the Community Development Block Grant Program funding cycle for 2000-2001 Program Year and adopt the Consolidated Plan 2000-2005, transferring $20,000 from Neighborhood Revitalization to Downtown Improvements. Motion was made by Councilmember G. Arellano, seconded by Councilman Morales and the motion did not carry (Councilmembers Pinheiro, Velasco and Springer voting no and Councilman Sudol absent) to approve the Community Development Block Grant Program funding cycle for 2000-2001 Program Year and adopt the Consolidated Plan 2000-2005. Motion was made by Councilmember G. Arellano, seconded by Councilman Pinheiro and carried (Councilmembers P. Arellano and Morales voting no and Councilman Sudol absent) to reconsider the original motion to approve the Community Development Block Grant Program funding cycle for 2000-2001 Program Year and adopt the Consolidated Plan 2000-2005, transferring $20,000 from Neighborhood Revitalization to Downtown Improvements. At 8: 18 p.m. the Mayor called a five minute recess, after which he recalled the meeting to order. Motion was made by Councilman Velasco, seconded by Councilman Pinheiro and carried (Councilmembers P. Arellano and Morales voting no and Councilman Sudol absent) to approve the Community Development Block Grant Program funding cycle for 2000-2001 Program Year and adopt the Consolidated Plan 2000- 2005, transferring $20,000 from Neighborhood Revitalization to Downtown Improvements. Councilmember G. Arellano noted for the record that she voted in favor of this item to move this forward, since the Council was in a deadlock. She stated the Council is taking a dangerous pass when we neglect neighborhood revitalization and not have people in the neighborhoods to ask what is needed. The Mayor stated it was the time and place scheduled for a Public Hearing on an appeal of denial by the Planning Commission of a Variance request pursuant to Zoning Ordinance Section 37.58, (Regional-Service Commercial Development) to allow a new pylon sign at a height of 71 feet 3 inches, located at 7950 Arroyo Circle, on property zoned C3 (Shopping Center Commercial). Hometown Buffet, applicant, V 00-01. The staff report was noted and further explained by Planner I Casper. The Mayor opened the Public Hearing. Jim Sullins requested approval of the sign variance for Hometown Buffet, to allow for visibility for north and southbound traffic on Highway 101. He noted the need for the height for the sign, and agreed to a 63' sign as suggested by Councilmember G. Arellano placing it across the street. Weeds Res. 2000-30 Weeds A/S 00-06 A& C Com. Appt. 7 k ~ .... J ., / Craig Filice, representing Southpoint, noted that he talked to staff about relocating the sign across the street, but the parcel is owned by an association of tenants, and the option is not feasible. He reviewed the findings to be made, and requested approval of the variance. The Mayor closed the Public Hearing. Motion was made by Councilmember G. Arellano, seconded by Councilman Morales and carried (Councilman P. Arellano voting no and Councilman Sudol absent) to direct staff to prepare a resolution approving the variance application with a condition that this sign is classified as a shopping center sign and any future businesses approved on this site would be required to use this pylon sign, a condition that the trees be landscaped and addressed aggressively in the future years, and including the three conditions requested by staff. Councilmember G. Arellano noted for the record that she understands all the work the Planning Commission did, and that she takes exception for any company to come in and just think that they will get a variance. The Mayor stated it was the time and place scheduled for a Public Hearing to consider annual destruction or removal of weeds and/or refuse constituting a public nuisance in the City of Gilroy. The staff report was noted and further explained by the City Administrator. The Mayor opened the Public Hearing. There being no comment from the audience, the Mayor closed the Public Hearing. Motion was made by Councilman Morales, seconded by Councilmember G. Arellano and carried to adopt Resolution No. 2000-30 instructing the Fire Chief to Abate the Nuisance Arising out of weeds growing upon lots or in front of properties in the City. RESOLUTION NO. 2000-30 RESOLUTION INSTRUCTING THE FIRE CHIEF TO ABATE THE NUISANCE ARISING OUT OF WEEDS GROWING UPON LOTS OR IN FRONT OF PROPERTIES IN THE CITY. PASSED AND ADOPTED this 1st day of May, 2000, by the following vote; AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES, PINHEIRO, VELASCO and SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: SUDOL Councilmembers G. Arellano and Pinheiro recused themselves from discussion and vote on A/S 00-06. Motion was made by Councilman Velasco, seconded by Councilman Morales and carried (Councilmembers G. Arellano, Pinheiro and Sudol absent) to continue A/S df)~06 t3U4~ 1{ ttM6 af f!~ reqttlit ofthe applicant. MollA" W~S made by Cp\.mcilman P. Arellano, seconded by Councilman Morales ~nd carried (Councilmembers Pinheiro and Velasco voting no and Councilman Sudol absent) to appoint Joe F. Gamboa to the Arts and Culture Commission. The followini infofllllltipn items were noted with no separate discussion on same: Legislation: League of California Cities Legislative Bulletin #15-2000 dated April 14, 2000. 7r;!lQ .., " <;"\;' () ~, - A& C Com. 3-14-2000 Customer Service: Note of thanks from Debbie Gutierrez, Community Solutions, to John Garcia for his assistance; Letter ofthanks from Judy Mireles-Janisch, Special Olympics, to Chief Gregg Giusiana for the tremendous efforts the Gilroy Police Officers made in making Tip- A-Cop a wonderful success; Memo of thanks from Chief Gregg Giusiana to Sgt. Don Kludt, Sgt. Greg Flippo, Detective Stan Devlin, Officer Cherie Somavia, Steve Ynzunza, Maribel Alba, Felix Figueroa, and Felipe Begines for volunteering their time to support the Gavilan Special Olympics and Tip-A-Cop program; E-mail of thanks from Sandra Sammut to Jay Baksa, Gregg Giusiana, Lanny Brown, Lisa Jensema, Kathy Sakahara, Judy Mireles-Janisch, and Joe Kline for their support of the Volunteer Program; Article from the Gilroy Dispatch nominating Jay Baksa for Person of the Century; and Letter of thanks from Emily Mardirosian, Gilroy Senior Advisory Board, to Yvette Gonzales for her classes on CPR, Breathing, and Disaster Preparedness. Informational items: Memo from Gregg Giusiana regarding Office of Criminal Justice Planning - California Law Enforcement Technology Equipment Purchase (CLETEP) Program; Information from Bonfante Gardens Theme Park regarding construction update; Memo from Kristi Abrams regarding restriping roadways, including Sunrise Drive and Rancho Hills Drive; Notice of changes in proposed gas rates by Pacific Gas and Electric Company; and Community Development Department - Planning Division monthly report of long-range applications and status ofRDO allocation & activity dated April 24, 2000. The minutes of the Arts and Culture Commission meeting of March 14,2000 were noted. Gang Task Force The Minutes of the Gilroy Gang Task Force meeting of March 7, 2000 were 3-7-2000 were noted. Lib. Com. 3-8-2000 P & R Com. 3-21-2000 Sr.Adv.Bd. 3-20-2000 SCRWA 3-28-2000 Plan. Com. 4-6-2000 The minutes of the Library Commission meeting of March 8, 2000 were noted. The minutes of the Parks & Recreation Commission meeting of March 21, 2000 were noted. The minutes ofthe Senior Advisory Board meeting of March 20,2000 were noted. The minutes of the South County Regional Wastewater Authority meeting of March 28, 2000 were noted. The report of the Planning Commission meeting of April 6, 2000 was noted. The City Administrator distributed the first quarter reports and the 2000-2005 Financial Plan. Adjournment 7 c,: ':) , 'oj"I'/ The City Attorney noted a Council meeting held on March 26, 1996 that adjourned at 3:20 a.m. in which certificates were given to the "survivor's". She presented the Mayor with a duplicate certificate and asked that the record not be broken. The Mayor noted that the old CET Motel on North Monterey Street has been demolished. He reminded everyone to attend the Special Olympics meet on Saturday. Councilmember G. Arellano stated the Library JP A met last week, and discussed the money for the library expansions. The JP A made sure that there was design money for the next step. They also reviewed the filters on the library computers and the viewing policies. She stated the Gilroy Library Committee is in place, and will meet soon to discuss building plans. She noted the Smart Development Strategies for Economic Growth conference to be held in Portland, Oregon June 11-13,2000. She noted the Hispanic Chamber is having the Ambassador's Ball this Friday. Councilman Morales stated the Agricultural Easement Conservation Task Force is complete and that he will make copies of the final report for all the Councilmembers to help in the decision on the 660 acres proposed for inclusion in the General Plan. Councilman Velasco noted the Memorial Day Parade Committee needs volunteers for May 29,2000. The Mayor noted the following meetings/events: MAY 2000 1 Aroma Touch Appeal of Decision - 5:30 p.m., Gilroy City Council Chambers 1 * Regular City Council Meeting - 7:00 p.m., Gilroy City Council Chambers 8* Study Session - Financial Plan - 7:00 p.m., Gilroy City Council Chambers 9 SCRW A Meeting - 7:30 a.m., 1500 Southside Drive, Gilroy 15 VTA Presentation re: Bus Routes - 6:00 p.m., Gilroy City Council Chambers 15*Regular City Council Meeting - 7:00 p.m., Gilroy City Council Chambers 22*Study Session - Financial Plan - 7:00 p.m., Gilroy City Council Chambers 23 SCRWA Meeting - 7:30 a.m., 1500 Southside Drive, Gilroy 31 Quarterly Workshop with GUSD Board -7:00 p.m., Gilroy Unified School District Board Room, 7810 Arroyo Circle, Gilroy JUNE 2000 5*Regular City Council Meeting - 7:00 p.m., Gilroy City Council Chambers 9 Council Mini-Retreat - 8:00 a.m. to 1:00 p.m., Temporary Environmental Education Center (TEEC) building at the Ranch Site, Christmas Hill Park, 7049 Miller Avenue, Gilroy, California 13 SCRW A Meeting - 7:30 a.m., 1500 Southside Drive, Gilroy 19*Regular City Council Meeting - 7:00 p.m., Gilroy City Council Chambers 27 SCRW A Meeting - 7:30 a.m., 1500 Southside Drive, Gilroy JULY 2000 3*Regular City Council Meeting - 7:00 p.m., Gilroy City Council Chambers 11 SCRWAMeeting -7:30 a.m., 1500 Southside Drive, Gilroy 17*Regular City Council Meeting - 7:00 p.m., Gilroy City Council Chambers 25 SCRW A Meeting - 7:30 a.m., 1500 Southside Drive, Gilroy 31 Tentative Study Session - Fee Schedule Update - 7:00 p.m., City Council Chambers At 9:34 p.m. the Mayor adjourned the meeting. Respectfully submitted, ~? City Clerk 751ji] Special Meeting May 1, 2000 Gilroy, California The Mayor called the meeting to order and explained the proceedings for this meeting. Roll Call Present: Councilmembers: Guadalupe Arellano, Peter D. Arellano, Charles S. Morales (arrived at 5:47 p.m.), Al Pinheiro, Roland Velasco, and Thomas W. Springer; Absent: Councilmembers: Anthony C. Sudol III - 5:40 p.m. Aroma Touch Appeal of City Administrator's decision to revoke the business license for Aroma Touch. Assistant City Attorney Houston reviewed the Administrative Hearing procedure. Julia Irrgang, Morgan Hill, explained that since November, 1999 she has received natural therapy from Aroma Touch and hopes that this business will be allowed to continue. Mr. Kirchick, attorney, noted the definition of a massage parlor under an adult business. He noted that ifhe is reading the Code correctly, someone can apply for an adult business, under which prostitution would be allowed (Section 2A). He noted this is an illegal Code section regarding an adult business. He noted that with only one violation, the business owner should be allowed to continue. He stated that with two or more violations, then it would be appropriate to revoke the business license. He requested the City Council grant the appeal. Chief of Police Giusiana recapped the record as to how the case occurred and laid out the time sequence. He explained that in November, 1999 a confidential informant explained the purchase of massages on several occasions, with the added offer of sex acts for an additional fee. He noted that an undercover police officer, wearing a "wire", was sent to the business, and received a massage and sex. Officers converged on the business, and arrests were made due to the incident. Other patrons were interviewed and claimed that they received sex at this business. He explained the credit card transactions that are similar to processes used for a prostitution business. He stated that this is not an isolated incident. He noted the City Administrator found in his decision that this business was acting as an adult business. He noted that all four grounds were proven in the previous hearing. He noted that hearsay evidence is allowed in a hearing such as this. He noted that the business owner is clearly in supervision of his employees. He requested the appeal be turned down. Mr. Kirchick noted that the employee involved was terminated right after the arrest. He noted that the web site which had "Michelle" explaining what sexual favors that she would provide was in May, 1999, and the new owners took over in September of 1999. He noted that he was unable to cross-examine the confidential informant, although he does realize that the testimony is admissible at this hearing. Chief Giusiana noted the affidavit in support of the search warrant, in that the confidential informant came to the Police Department on their own and was not solicited. He noted that the confidential informant has no criminal record and no pending charges. In answer to a question, he stated that the second amount charged on the credit card was always more than the first charge and was between $60-$100. He explained that the owner asked for a business license, and if they had specified that it was for a massage parlor, it would have been processed for an adult business. The City Administrator stated that when they came in, they should also have asked for an adult business license, but they only came in for a business license. They should have been reviewed to see if they needed an adult business license. 75 'J ; In answer to a question, Mr. Kirchick explained that the doors were locked and they did not want to let Police Officers in because they thought they were robbers trying to get money, which is not uncommon in a Vietnamese community. Chief Giusiana explained that the officers stated that they were the Police Department and that they stated they were there to issue a search warrant. Mr. Kirchick noted that on the business license form it does note that it is a massage parlor. He noted that if the owner had received an adult business license, he would have been within the City Code, which allows sexual acts. Assistant City Attorney Houston stated the alleged affirmaties with the City Code are not the issue. She noted there are ways to sever affirmaties with certain sections of the Code. Chief Giusiana noted the names that were used by the women, but none of them were valid names of the therapists. In answer to a question, he st~ted that prostitution is illegal in the City of Gilroy. The Mayor questioned whether there are signs posted that the doors are to remain open during business hours, and was told that the signs are posted. He questioned whether there is an on-site manager, and was told that there was. He questioned whether the manager enforces the rules. Hang Dang stated that when there are not enough therapists, they close the doors, so that it is safe for the customers. She noted that sometimes the customer wants more services after the original request for service. Assistant City Attorney Houston reviewed the process on the City Council deliberation and the three options available to the Council noting that the City Attorney's office will draft the resolution. She distributed a draft resolution outlining the draft findings. Res. 2000-24 Motion was made by Councilman Morales, seconded by Councilman Velasco and carried (Councilman P. Arellano voting no and Councilman Sudol absent) to adopt Resolution No. 2000-24 denying the appeal and upholding the City Administrator's findings. RESOLUTION NO. 2000-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY UPHOLDING THE DECISION OF THE CITY ADMINISTRATOR TO REVOKE BUSINESS LICENSE 0000106756 FOR AROMA TOUCH (JIMMY NGUYEN, OWNER) 193 WELBURN AVENUE, GILROY, CA. PASSED AND ADOPTED this 1 st day of May, 2000, by the following vote; AYES: COUNCILMEMBERS: G. ARELLANO, MORALES, PINHEIRO, VELASCO and SPRINGER NOES: COUNCILMEMBERS: P. ARELLANO ABSENT: COUNCILMEMBERS: SUDOL The Mayor noted for the record that solicitation was provided to a Police Officer after the arrest was made. Adjournment At 6:47 p.m. the Mayor adjourned the meeting. RHONDA PELLIN City Clerk