PLANNING COMMISSION MINUTES MINUTES NO Regular Meeting July 8, 2015 Town of Tiburon Council Chambers 1505 Tiburon Boulevard, Tiburon, California

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1 PLANNING COMMISSION MINUTES MINUTES NO Regular Meeting July 8, 2015 Town of Tiburon Council Chambers 1505 Tiburon Boulevard, Tiburon, California CALL TO ORDER AND ROLL CALL: Vice Chair Kulik called the meeting to order at 7:35 p.m. Present: Absent: Vice Chair Kulik and Commissioners Corcoran, Weller (arrived late) and Williams Chair Welner Staff Present: Director of Community Development Anderson, Planning Manager Watrous, Associate Planner O Malley ORAL COMMUNICATIONS: None COMMISSION AND STAFF BRIEFING Planning Manager Watrous stated that the New Morning Café applicant had requested a continuance to the August 12 th meeting rather than the July 22, 2015 meeting. He added that at this time, there were no other scheduled items for the July 22 nd meeting. ELECTION OF CHAIR AND VICE CHAIR ACTION: It was M/S (Corcoran/Williams) to nominate and appoint Commissioner Kulik as Chair. Motion carried: 3-0 ACTION: It was M/S (Corcoran/Kulik) to nominate Commissioner Williams as Vice Chair. Motion carried: 3-0 OLD BUSINESS Tiburon Boulevard: Consider Approval of a Conditional Use Permit and Adoption of a Mitigated Negative Declaration for Construction of a New 6,585 Square Foot, Three-Story Mixed Use Commercial and Residential Building Intended for Condominium-type Ownership; File #11402; ACV Argo Tiburon LP, Owner; Zwick Architects, Applicant; Assessor s Parcel No CONTINUED TO AUGUST 12, 2015 TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 1

2 PUBLIC HEARINGS Tiburon Boulevard, Suite A; Request for a Conditional Use Permit to Allow On-site Wine Tasting in a Building Occupied by a Grocery Store (Woodlands Market); File #CUP ; Belvedere Land Company, Owner; Woodlands Market, Applicant; Assessor s Parcel No Associate Planner O Malley gave the staff report. She said that the applicant requested a conditional use permit to allow wine tasting for Woodlands Market located at 1550 Tiburon Boulevard in Suite A. The project would allow consumption of wine in the interior section near the back of the store. An existing shelf in the wine department would convert into a small table to serve the patrons during their shopping. The proposed hours for wine tasting would be two days a week, 5-7 PM on Fridays and 4-6 PM on Saturdays, to be served and managed by two staff members. She recommended that the Planning Commission hold a public hearing on the item, hear and consider all testimony and adopt the attached resolution conditionally approving the conditional use permit. Don Santa, Woodlands Market owner/operator, said that he did not have much to add to the staff report and was available to answer questions from the Commission. Chair Kulik said asked if the intent was for promotion of wines for sale or to have a place where people could have multiple glasses of wine while they shop. Mr. Santa said that is was more for promotional purposes, adding that typically they would have a vineyard come and feature their wine and the grocery store pairs cheese with it. He said that they have done this at their store in Kentfield for years and it is to promote the wines. Commissioner Williams confirmed with Mr. Santa that two employees in the wine department would manage and monitor the wine tasting. Noted Present: Commissioner Weller arrived and was noted present at 7:40 p.m. Chair Kulik opened the public hearing. There were no public speakers and the public hearing was closed. Commissioner Williams stated that the project seemed appropriate for this particular zone and consistent with zoning requirements and the General Plan for designation of this land use that encourages resident-serving commercial uses. She thought that it would allow the store to expand the range of services to residents and to the extent it is responsibly managed, seemed like a win/win for the community. She voiced her support for approval of the CUP. Commissioner Corcoran stated that this seemed like a reasonable proposal that would not dramatically modify the current use of the facility. He thought that it would be a nice addition to the Town and fun for ferry riders to stop at the store, taste and buy a bottle of wine. TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 2

3 Commissioner Weller concurred. Chair Kulik stated that the store is the anchor tenant in one of the most prominent commercial properties in town and anything the Town can do to help the enterprise thrive and serve the community in a way that is not disruptive at all is a good thing. ACTION: It was M/S (Williams/Corcoran) to adopt Resolution approving the conditional use permit for Woodlands Market. Motion carried: Gilmartin Drive: Request to Amend the Tiburon Shores Precise Plan (PD #28) to Expand the Primary Building Envelope for Lot 3; File #PDPA ; Darol and Tara Ryan, Owners/Applicants; Assessor s Parcel No [KO] Associate Planner Kyra O Malley gave the staff report. She said that the project proposed to amend the Tiburon Shores Precise Plan for the last vacant lot, located at 25 Gilmartin Drive. The applicant proposes to expand the primary building envelope to the west and north to accommodate a new single-family dwelling. The existing secondary building envelope would be reduced in size with a portion of this envelope changing to the primary envelope as part of the proposal. The proposal would decrease the original setbacks on the northwest and east side of the property very minimally to what is there now. She recommended that the Commission hold the public hearing and recommend approval to the Town Council. Mohammad Sadrieh, applicant, stated that the owners requested expansion of the primary building envelope in order to build a house that would take better advantage of the property and allow the applicant to more closely conform to the Town of Tiburon design guidelines. He said that the current envelope is inadequate, as it is considerably smaller than all other envelopes in the vicinity, which would force a future home into a boxy straightjacket and not allow it to step down the hillside. He added that this envelope does not take advantage of the northern part of the lot, which is flat and on level with the driveway, out of everyone s view and the perfect spot for a garage. He said that a fire turnaround must be built, which was not anticipated when the building envelope was designed, and therefore locating the garage as shown made a lot of sense and would also minimize paving. He stated that if the amendment is approved, they would still have the smallest envelope in the vicinity and they want to be sure that the house would not negatively impact adjacent neighbors. He said that they installed story poles to reflect the future building heights and met with three neighbors who supported the proposal. He believed that the revised envelope would provide the flexibility needed to design an attractive home on the site. Chair Kulik said that when he visited the site it looked as though there were some potential to impact the immediate downhill neighbor at 19 Gilmartin Drive and he asked if the applicant made contact with the owner. Mr. Sadrieh said that they did not but certainly would during the design review process. Commissioner Weller asked what if the proposed change would affect the FAR for this lot. Associate Planner O Malley said that it would not. Chair Kulik opened the public hearing. There were no speakers and the public hearing was closed. TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 3

4 Commissioner Weller said that it was good to expand the envelope to allow a house with the same floor area to better step down the hill. He commended the applicants for talking to neighbors and said that the Design Review Board could address any specific issues with the house design. He supported the project. Commissioner Corcoran concurred and thought that this was a reasonable modification which would make for better relationship of the buildings on the adjoining lots, giving greater separation and avoiding view blockage. He thought that there was more that could be done to step the house back into the hillside and the Design Review Board can consider that. He supported the project. Vice Chair Williams agreed and thought that the expanded building envelope would minimize view impacts and potentially enhance aesthetics. She found that the request was consistent with the Precise Plan and with the evolution of the plan over time. She acknowledged that this was the last lot to be developed and felt that this would not impact primary views or the character of the neighborhood. Chair Kulik concurred with the other Commissioners comments. He said that when he saw the story poles relative to the uphill neighbor, it was clear that a lot of effort was made to minimize any view impacts. He felt that the Design Review Board could deal with any potential impacts on the downhill neighbor and encouraged communication with the neighbor. ACTION: It was M/S (Corcoran/Williams) to adopt the draft resolution recommending approval of the amendment to the Tiburon Shores Precise Plan to the Town Council. Motion carried: Zoning Ordinance Text Amendments (File MCA ): Consider Recommendation to Town Council to Adopt Amendments to Chapter 16 (Zoning) of the Tiburon Municipal Code Regarding Prohibition of Seasonal Rental Units; Town-initiated Amendments Planning Manager Watrous gave the staff report, stating that this amendment would amend Section of the Tiburon zoning ordinance to replace the current provisions for issuing seasonal rental unit permits with a prohibition of such uses. He described the history of seasonal rental unit regulations in Tiburon and stated that when the Town Council considered possible amendments to the regulations earlier this year, the Council directed staff to draft amendments that would prohibit seasonal rental units altogether and begin the process of the public hearing to consider that amendment. The proposed ordinance amendment would replace existing seasonal rental unit provisions with a ban on vacation rentals, which is a more commonly used term, add those terms to the zoning ordinance and then replace the current ordinance provisions with a prohibition on vacation rentals, and a section on enforcement of this prohibition. He recommended that the Commission hold the public hearing, take testimony, consider and discuss the text amendments, and, if appropriate, adopt the resolution recommending approval of the text amendments to the Town Council. Vice Chair Williams asked if staff could comment on whether seasonal rental units generate revenue for the Town and increase business activity. Mr. Watrous said that the Town collects TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 4

5 revenues from the seasonal rental units and are supposed to be collecting transient occupancy tax (TOT), but he was unsure how successful the Town has been in collecting TOT. He said that the Town receives a fairly small amount from these rentals in comparison to the TOT the Town receives from the local hotels. Community Development Director Anderson added that he believed that the Town has only been collecting TOT for these units for about one year. Vice Chair Williams asked about Town enforcement procedures. Mr. Watrous described the Town s administrative citation process and fines and said that offenses sometimes result in multiple violations for not obtaining a business license or a seasonal rental permit, etc. He said that it is often a difficult matter of proving that they actually were operating on those particular days and then trying to follow-up and collect. He noted that staff has held extensive discussions about what other next steps they can take on enforcement, realizing that often the administrative citation process is not as effective as it could be. Vice Chair Williams asked how much staff time is devoted now to monitor compliance as opposed to what was spent prior to Mr. Watrous said that very little staff time is spent on most applications. He noted that the Town s code enforcement process is complaint-driven and when complaints are received, staff can spend a fair amount of time on an application, such as the enforcement at 121 Sugarloaf Drive and 110 Solano Street. Vice Chair Williams asked if there are current requirements for applicant to notify neighbors or homeowner associations prior to applying for a permit. Mr. Watrous confirmed that there is currently no such notification requirement, but that was presented to the Town Council as an option to consider. Vice Chair Williams said it could be helpful to know that all neighbors consent to the overall use of the vacation rental. Mr. Watrous said different notice approaches can include sending notices to contiguous neighbors or those within 100 feet, or following the precedent in the bee-keeping ordinance where staff requires written approval from the contiguous neighbors before granting approval. Commissioner Weller asked whether home exchanges or swaps would be included in the vacation rental definition. Mr. Watrous stated that the Town s interpretation of home swaps is not explicit but such uses would likely fall within the definition, as people are receiving a compensation for the use of their home that comes in the form of a use of a home elsewhere. He said that this would be more difficult to track in terms of TOT because money would not change hands. Mr. Anderson said that generally home exchanges fly under the radar because it does not happen on a regular, on-going basis. Commissioner Corcoran recalled that when the regulation was drafted in 2010, the Commission struggled with defining it to begin with and now the Town has had difficulty in enforcement. He thought that it was unclear whether the home at 121 Sugarloaf Drive was in violation with the current ordinance due to concerns raised in a letter that mentions one rental over a weekend. Mr. Watrous stated that a seasonal rental unit permit is needed to rent it for a period of 31 days or less and they have never obtained a permit. TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 5

6 Commissioner Corcoran said if the Town prohibited seasonal rentals, would that change what was happening with 121 Sugarloaf Drive. Mr. Watrous said that instead of a violation for not having a seasonal rental unit permit, the violation would be because it was a prohibited use. Chair Kulik asked if there was any mandate to change insurance on the property with a change from a primary residence into a seasonal rental unit. Mr. Watrous said that the Town does not regulate such insurance requirements. Chair Kulik noted that the staff report indicates that other towns have moved towards a banning seasonal rental units altogether. Mr. Watrous said that the City of Santa Monica has banned these uses. Mr. Anderson said that Santa Monica went to great lengths to explain why they thought it was not a good thing primarily dealing with erosion of the character of neighborhoods and actually promoted home sharing instead. Commissioner Weller asked staff if they have any data on which of the approved seasonal rental properties are the owner s primary residence as compared to non-primary residence. Mr. Watrous said that to his knowledge all approved units are the owners primary residence. Commissioner Corcoran referred to the menu of different suggested amendments which included limiting the number of days units can be rented, and asked if there was discussion with the Town Council to allow renting up to two weeks per year without a permit. Mr. Watrous said no. Vice Chair Williams asked if the current ordinance is kept as is if there is any other way to deal with problem properties. Mr. Watrous said that staff considers the 110 Solano Street property as being well controlled, as it has a permit and staff and neighbors continue to monitor it. He said that for other homes that appear to be violating the ordinance, staff hoped to increase its capabilities for enforcement regardless of whether the ordinance is changed to prohibit these uses or to continue allowing them in a different capacity. Chair Kulik opened the public hearing. Bruce Powell said that he is a 20 year Tiburon resident and since 2009 they have offered their home for rent while they travel 4 to 8 months every year on a sailboat around the world. He said that if they are not able to rent their home out during these periods of time, it would sit vacant, sometimes for a few weeks or a few months, and there would be problems with that. He said that he has never had a problem or received a complaint in the time he has rented the home out and has forwarded a letter from his next door letters strongly supporting him. He stated that he has screened guests very carefully, has security cameras and has very strict occupancy limits. He said that he refuses to rent to people who plan to hold a wedding or party, and those rental activities are explicitly prohibited in his rental agreement. He said that he has been a good neighbor and he would hate to see these activities to be prohibited because it would put an end to their ability to travel around the world with their two college-aged sons. Peter Kaiser said that he has been a Tiburon resident for 16 years. He said that the Commission should consideration whether the Town wishes to be a promotional or preventional association. He said that short-term guests are somewhat more liberal in their expenses so the Town benefits. TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 6

7 He said that there are always a few bad apples compared to the majority of responsible people. He stated that similar to the earlier application for wine tasting at Woodlands Market it would be wonderful for the Town to start looking towards being a promotional association that benefits the business community here. Joe Haraburda said that they have been at meetings several times talking about their desire to retain the quiet nature of the Town. He said that although they appreciate the work of staff, he thinks that the Town Council is going in the right direction to prohibit any rentals less than 31 days. He said that this would still allow people to rent, but would create less turnover which has been a challenge for them over the past several years. He strongly recommended that the Commission support prohibiting rentals less than 31 days. He referred to a letter they wrote and in consideration of those who have already made reservations and he believed that a provision which calls for this ending at the end of 2015 would allow anyone currently under contract to not be penalized, He said that maintaining the quiet nature of the neighborhood was critical and if seasonal rentals proliferate it will change the character of the Town. Margot Zender said that she supports short-term vacation rentals but she understood the consequences of weekend rentals. She felt that a minimum of two weeks or one month for such rentals would be fine. She believed that these uses have a significant secondary economic impact on Tiburon and she would like to see comments from the Chamber of Commerce regarding this. Nancy Holland said she is a 5 year resident of Tiburon and also a realtor, said she supported Mr. Kaiser s suggestions that rentals do support the community. She believed that these uses add inclusivity instead of exclusivity to the community. She said that people sometimes do not behave perfectly. She thought that a two week minimum was better than having weekend visitors at some properties. Chair Kulik closed the public hearing. Commissioner Corcoran said that he did not feel that banning rentals would solve the problem. He said that Town staff came up with a menu of different solutions that could help address the issue of a couple of a few bad apples and preserve the economic vibrancy and vitality the Town gets from people coming in and renting properties. He said that since the zoning code was updated in 2010 the Commission has seen how the rubber hits the road with changes that were made and have had to make tweaks here and there. He acknowledged the difficulty of enforcement but believed that this was a case where a tweak should be made but not to throw the ordinance out entirely. He supported allowing some vacation rentals at perhaps a one week minimum, which would allow people some flexibility. He said that Airbnb has only been around for a few years and now it is the world s largest overnight accommodation provider and these types of companies are about making use of unused resources, which he thought was a good thing especially when there is a housing crisis. He did not believe the Town should be decreasing the housing supply even on a short term basis. He said that if the Commissioners agree, they could talk about the menu of items the Commission could propose to the Town Council. Commissioner Weller agreed and said that an outright ban was like using a sledgehammer to kill a gnat. He favored an outright ban of seasonal rentals with shared common area, noting that the TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 7

8 property at 121 Solano Street is unique. He said that totally banning vacation and shared home rentals because of a couple of problems amounted to overkill. He shared Commissioner Corcoran s approach of requiring a 7 night minimum which would eliminate weekend-only situations, which would allow the Powells to continue their rentals. He said that he might support allowing vacation rental permits only where owners have their primary residence because that avoids using homes for commercial enterprises. He said that ownership is easy to verify through address verification. He supported discussion about alternatives as opposed to an outright ban. Vice Chair Williams said that she agreed with her fellow Commissioners. She said that she was struck by the fact that 5 of the 8 applications have been operating without any controversy or complaints and there were few complaints on the other properties. She felt that the ordinance had worked in many ways and she did not want to swing the pendulum wildly to an outright ban just because there have been a few complaints, but instead to craft a better ordinance. She thought that enforcement was the key, but she recognized the regulatory burden on staff because they are the ones having to deal with complaints and have the duty to maintain Tiburon neighborhoods. She said that adding regulations could potentially add to staff s enforcement burden and monitoring compliance. She said that she liked the idea of obtaining neighbor consent prior to approving an application. Chair Kulik said that he believed that Tiburon is a magnet for this type of rental business more than other Marin communities. He said that parts of Tiburon are much more affected than others. He felt that the Town is at the front end of a large wave, given the scale of VRBO, Airbnb, and Homeaway rental sites. He was concerned about adverse impacts on local homeowners now and the burden of enforcement on staff. He was concerned for the peaceful enjoyment of neighboring residents. He commended Mr. Powell for being a good neighbor in this situation with his cameras and contracts, but he felt that someone buying an investment property and immediately putting it up on a website and renting it out on a short term basis was a cause for concern. He felt that the current 8 seasonal rentals only have a small economic impact on the Town, but more units might be problematic in certain areas of the Town. Commissioner Corcoran suggested that the Commission discuss the possible proposed amendments included in the previous staff report to the Town Council. The Commission discussed the following items: 1. Changing the term seasonal rental unit to vacation rental. The consensus of the Commission was that this was acceptable. 2. Do not allow vacation rental permits for units with more than 3 bedrooms. Commissioner Corcoran felt that this was an arbitrary distinction. Commissioner Weller felt that it would be setting an arbitrary line to let people with smaller properties make money from vacation rentals but not those with a bigger house. The other Commissioners concurred with this reasoning. 3. Require adequate on-site and/or off-site parking. Chair Kulik believed that staff could easily look at the parking situation because it may be problematic for non-standard streets in Old Tiburon. Mr. Watrous agreed that staff can address this and understands there are TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 8

9 certain areas where parking is more difficult. The consensus of the Commission was that this was acceptable. 4. Limit the number of days that units can be rented. Commissioner Corcoran, Commissioner Weller and Vice Chair Williams supported at least a 7 night minimum for rentals. Chair Kulik favored a greater number of days. Commissioner Weller thought that a cap on the cumulative number of days rented per year was unnecessary, citing Mr. Powell as an example, particularly if the Town limited rentals to the primary residence of the property owner. 5. Do not allow permits for properties with commingled rights (common areas, pools, access, parking, etc.) with neighboring units. Commissioner Weller said that it should be banned except where there was unanimous consent of all people who share common areas that are usable and for condominiums and townhouses where there are clear CC&Rs. The consensus of the Commission was that this was acceptable. 6. Require permittees to submit an annual reporting statement to the Town. Vice Chair Williams thought that this data would be helpful and Commissioner Weller agreed. Commissioner Corcoran said that there should be a report to at least deal with the TOT issue. The consensus of the Commission was that this was acceptable. 7. Require notices to be sent to neighboring property owners prior to a vacation rental. The consensus of the Commission was to require notices to be sent to neighbors prior to approval, but not to require approvals from neighboring property owners. 8. Increase fees to recover costs of enforcement. The consensus of the Commission was to support a more appropriate fee structure and increased penalties or fines for violations. 9. Only allow permits for homes that are the primary dwelling for the property owner. Commissioner Weller supported this requirement and stated that there are clear methods of determining whether a home is a primary residence. The consensus of the Commission was that this was acceptable. Mr. Watrous said that a summary of the Commission s suggestions would be recommended to the Council in the form of a motion that seasonal rental units not be banned but instead consider amendments that would include the agreed upon changes described above. Commissioner Weller asked whether the Commission was trying to draft an ordinance for the Council to consider or simply making recommendations for what an ordinance should contain. Mr. Watrous said that if there is consensus by the Commission, they could make a recommendation to the Town Council to not prohibit seasonal rental units, but to instead consider an ordinance that would address certain changes, and encourage the Council to begin a more thorough process of evaluating it. Commissioner Corcoran suggested drafting an ordinance and giving the Council something to decide rather than sending them the minutes of the meeting. TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 9

10 Mr. Anderson said that that was a valid long-term approach, but in the short-term the Council needed to hear the Planning Commission s thoughts. He said that the Council may choose to do what they had said at their earlier meeting which would be to ban seasonal rentals. However, he recommended that the Commission should alert the Council as to its recommendations regarding amending the ordinance. He said that this would take the form of a minute action recommendation to the Council and the Council could ask that the Commission provide more information or go back to their prior direction. Mr. Watrous clarified that staff would provide a memorandum to the Town Council outlining the Commission s recommendations. ACTION: It was M/S (Weller/Williams) to recommend that the Town Council not prohibit seasonal rental units but instead approve amendments to the zoning ordinance with the changes described above. Motion carried: 3-1 (Kulik opposed). 5. Zoning Ordinance Text Amendments (File MCA ): Consider Recommendation to Town Council to Adopt Amendments to Chapter 16 (Zoning) of the Tiburon Municipal Code to Modify Provisions Regarding Interpretation of Zone Boundaries Visa-Vis Public Streets and Highways; Clarify the Separation of Fences for Purposes of Height Measurement; and Modify Certain Provisions with Respect to Processing of Permits for Wireless Communication Facilities; File MCA ; Town-initiated Amendments Director of Community Development Scott Anderson gave the staff report, stating this is a series of minor text amendments to the zoning ordinance. The first deals with zone boundaries relating to streets, where the zoning stops at the center line and there is ambiguity when half of the street is in another jurisdiction. He said that there is a situation along Tiburon Boulevard which is unique because it is a state highway and the State of California will occasionally surplus properties. He said that the amendment would place the Town in a good position and be in the public interest to have the entire Highway 131 right-of-way be designated as Public/Quasi-Public instead of having the zoning only go to the centerline of the state highway. Mr. Anderson said that there was also a request to clarify the separation distance versus height requirement for fences and walls. As the result of a recent and ongoing lawsuit this clarification would ensure that this provision only applies to fences or walls on the same property and not on different properties. Mr. Anderson described the final set of amendments dealing with the recently adopted wireless communications amendments. He said that upon further review and constructive comments by AT&T, staff has been advised there are a few more amendments needing to be made dealing with the 60 day shot clock that the FCC has put in place for acting on these applications. It is clear now that this applies also to the appeal period and not just to the initial decision by staff on a particular application that is subject to the 60 day shot clock. Chair Kulik opened the public hearing. There were no comments and the public hearing was closed. TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 10

11 ACTION: It was M/S (Williams/Weller) to adopt the Resolution recommending approval of the zoning text amendments to the Town Council. Motion carried: 4-0. MINUTES 1. Planning Commission Minutes Regular Meeting of May 13, 2015 ACTION: It was M/S (Weller/Corcoran) to approve the minutes of the May 13, 2015, as submitted. Motion carried: 4-0. ADJOURNMENT The Planning Commission adjourned the meeting at 9:10 p.m. ATTEST: DAVID KULIK, CHAIR Tiburon Planning Commission DANIEL M. WATROUS, SECRETARY TIBURON PLANNING COMMISSION MINUTES JULY 8, MINUTES NO PAGE 11