The council discussed concerns and developments regarding the county island annexation process. At the next council meeting on Sept. 6, Pamela Jacobs, assistant town manager, said she hopes to report findings about the development of the process from a county study session, and to set dates for public hearings.

The state passed legislation that gives a two-year window for counties to use the streamlined annexation process, without "protest hearings or a vote," Jacobs said.

The county will subsidize the town's costs associated with the annexation process, according to the council report. Revisions to the state annexation laws took effect Jan. 1, and the provision is in effect until Dec. 31, 2006. The streamlined process also waives the annexation fee the town would have had to pay.

Out of the 16 pockets, 15 meet the allowed acreage. Pockets with more than 150 acres are not eligible to be annexed.

Carol Gruetzner, a resident of Blossom Hill Manor, spoke in support of the annexation at the town council meeting. However, Blossom Hill Manor is the only ineligible pocket.

Councilwoman Barbara Spector said that she does not think Los Gatos greatly benefits from the annexations.

"It's a county benefit more than a Los Gatos benefit," Spector said.

For the town, this could mean more property taxes.

"But we're not interested in doing this because we will get a lot of revenue--it's not the driving force. The town doesn't get a lot of revenue from these islands," Jacobs said.

For the county, it means lessening its involvement in providing town-like services, Jacobs said.

"Santa Clara County does not want to be in the residential business any longer," Councilman Steve Glickman said. "The real benefit is for the homeowners."

With the pockets so close to the town, it would be much easier to provide the town's services, such as the police department, developmental agencies and basics such as road maintenance.

"It is not a very efficient methodology," Councilman Joe Pirzynski said about the current pockets.

Jacobs said that in the past there has been opposition by those who live in the pockets because they fear the town's developmental process. But Jacobs is not sure it is necessarily faster, cheaper or easier to go through the county.

Glickman expressed his apprehension about annexing people in the town if public education and hearings are not provided to the residents in those areas.

"This [revision] allows us to do it by not having to go through a public hearing," Glickman said, adding that he would not support the proposition if residents don't support it.

In other council action, in a last attempt to allow the Wine Cellar the opportunity to offer amplified live music and a dance floor, six people spoke on behalf of the restaurant on Aug. 15.

Glickman pulled the item from the consent list.

"In the spirit of being perceived as being fair, I wanted to give the appellant a chance to speak before the council," he said.

While the owners of the Wine Cellar, brother and sister Lisa and Steve Hauck, had an attorney speak on their behalf, Steve Hauck also went to the podium, expressing his respect for the council, and also his willingness to work with them in any way.

Although council members were prohibited from acting on the appeals, as they could discuss only the final resolution in front of them, they declined to put the discussion on a future agenda.

The resolution was passed 4-0 to allow the Wine Cellar to have increased seating. Pirzynski motioned, and Glickman seconded, with a condition that there be a future discussion about the town's alcohol policy regarding entertainment.

Also during the meeting, frequent town council attendee, Los Gatos resident Ray Davis, was asked to leave after receiving his third and final warning when he called Mayor Mike Wasserman "an idiot."