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HomeMy WebLinkAboutTC Minutes 2015-11-18TOWN COUNCIL MINUTES SPECIAL CLOSED SESSION MEETING The Tiburon Town Council held a special meeting on Wednesday, November 18, at 6:15 p.m., to discuss the following: CLOSED SESSION 1) Public Employee Appointment (Cal. Gov. Code § 54957(b)) Title: Town Manager 2) CONFERENCE WITH LEGAL COUNSEL --ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: Five potential cases CALL TO ORDER At 7:30 p.m., in public session, Mayor Doyle asked the Clerk to call the roll for the special meeting. PRESENT: Councilmember Fraser, Councilmember Fredericks, Councilmember O'Donnell, Vice Mayor Tollini, Mayor Doyle ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION, IF ANY Mayor Doyle said that while there was no reportable action taken by the Town Council on any of the closed session items, the Council provided direction to the Town Manager Recruitment Committee to negotiate on the Council's behalf a town manager employment agreement that will hopefully be brought forward for consideration before the full Town Council at its December 2 regular meeting. ADJOURNMENT — to regular rneetinz REGULAR MEETING CALL TO ORDER AND ROLL CALL Mayor Doyle called the November 18, 2015 regular meeting of the Tiburon Town Council to order at 7:30 p.m. and asked the Clerk to call the roll. Town Council Minutes #21 -2015 November 18, 2015 Page 1 PRESENT: PRESENT: COUNCILMEMBERS: EX OFFICIO: Doyle, Fraser, Fredericks, O'Donnell, Tollini Town Manager Curran, Town Attorney Stock, Director of Administrative Services Bigall, Director of Community Development Anderson, Chief of Police Cronin, Town Clerk Crane Iacopi ORAL COMMUNICATIONS None. PRESENTATION • The Ranch Annual Report — Cathleen Andreucci, Executive Director Director Cathleen Andreucci presented the annual report, stating that they are "doing great". She especially noted how well the new Dairy Knoll facility was working out for everyone. She thanked the Council for its support in building the facility. In her power point presentation, Andreucci reviewed the programs presented to the community from Tots, to Youth (K-5`" Grade), to Teens (6-121" grade). She said the latter category was very well served with 50-60 teens in attendance at the Friday night program, as well as the volunteer program. Andreucci said that the numbers of attendees at the Angel Island Camps were up, as were the number of attendees in Adult Programs. The Director described the community events sponsored or assisted by The Ranch, such as Breakfast with Santa, Father -Daughter Dance, Walk Your History (with Landmarks), Malt Jongg tournaments, and Summertime on Main. She said these programs were in the "break even" or loss category. Others, such as the Labor Day Parade, Tiburon Half Marathon, Golf Tournament, and Tiburon Taps Beer Festival, generated income for the department. Ms. Andreucci reviewed the 10 -year financial history of the department and reported that this year The Ranch would be close to covering all its costs. She noted that the budget had been balanced since 2008 [while the department had received assistance from the two cities in covering its expenses]. Councilmember Fraser, Council representative to The Ranch committee, said that the breadth of services The Ranch provides to the community is exceptional. He said the department had developed a great culture — one of willingness to try new things. He especially commended Director Andreucci for her can -do attitude and said that the word "no" did not exist in her vocabulary. The Council thanked Director Andreucci for her report. Town Council Minutes #21 -2015 November 18, 2015 Page 2 CONSENT CALENDAR 1. Town Investment Summary — Accept report for month ending October 31, 2015 (Director of Administrative Services Bigall) MOTION: To adopt the Consent Calendar, as written. Moved: O'Donnell, seconded by Fredericks Vote: AYES: Unanimous PUBLIC HEARINGS 1. Seasonal Rental Units — Amendments to Chapter 16 (Zoning) of the Tiburon Municipal Code to prohibit seasonal rental units (Community Development Department) — hearing continued from September 2 Planning Manager Watrous provided a summary of the written staff report. He said the Town had initiated amendments to the Tiburon Zoning Ordinance that would prohibit short-term rental units in Tiburon. Watrous said these amendments would amend Section 16-40.040 of the zoning ordinance to replace the current provisions for issuing seasonal (short-term) rental unit permits, with a prohibition of renting out a dwelling for a period of 30 days or less. The Planning Manager said that first reading of the ordinance was held on August 19, 2015. On September 2, 2015, he said the Town Council appointed a subcommittee to study the issue and make further recommendations to the Council. He reviewed the work of the committee at its October 12, 2015 meeting, and its goals and recommendations as to possible regulations. He also outlined the options available for the Council's consideration as to further action, per the staff report: "Option 1: Proceed -with prohibition. The Planning Commission held a public hearing, considered the draft ordinance, and made its recommendations to the Town Council. The Town Council may choose to move forward with adoption of the previously discussed ordinance prohibiting seasonal rental units. Option 2: Amend existing regulations The Town Council may discuss the potential amendments above and any other possible changes to the seasonal rental regulations and direct staff to prepare an ordinance for public hearing at a future date. If the Council chooses this option, it would be ideal if the Council provide direction on which of the above items should be incorporated into the draft ordinance. A checklist of potential seasonal rental regulation amendments is attached [to the staff report] for use in this discussion. Town Council Minutes #21 -2015 November 18, 2015 Page 3 Option 3: Table discussion to a fztture date As noted above, the regulation of seasonal rentals continues to evolve. There is legislation pending at the State of California (SB 593) which would create certain statewide regulations for such uses and numerous cities in California are studying this situation and attempting to come up with regulations to address many of the same concerns facing Tiburon. The Town Council may choose to wait until a decision is made on SB 593 or wait to see how other cities deal with seasonal rentals. The Town's current seasonal rental regulations would remain in place." Councilmeinber Fredericks asked to add a clarification for the record. She said that most of the people who attended the ad hoc committee meetings were people who supported short-term rentals. She said there was no consensus on whether to prohibit or permit them. Rather, Fredericks said the discussions focused on the question of whether there are regulations that would address the concern of those who oppose them. Town Manager Curran said that since the last Council meeting, the Town had been contacted by Airbnb which had indicated that it would like to engage the Town in a discussion of revenue sharing (of transit occupancy tax) should the Town adopt an ordinance allowing short -tern rentals. She said that if an agreement could be reaching on a regulatory framework deemed reasonable by Airbnb, it would collect TOT and remit them to the Town. She cited examples of other cities that have such an agreement with Airbnb, such as Oakland and San Jose. Curran noted, however, that Airbnb, citing privacy concerns, said that while they could remit a check in an aggregate amount, they would not be willing to divulge actual rental information. She said it was likely that this data could be audited; she noted that that Airbnb indicated that it would be open to further discussion of this aspect of TOT collection. Vice Mayor Tollini said she had read that Airbnb allows a permit number to be shown on listings, and wondered if this was a way to track the information in Tiburon. Town Manager Curran said that Airbnb said it would not or even could not allow it; she said it considered a permit number to be a "unique identifier". Curran said Airbnb maintained that the Town's request is not technically feasible in that the information in their system is "scrubbed" to remove unique identifiers and would not allow them to provide a permit number. Town Manager Curran said that at the conclusion of the meeting, she asked the representative of Airbnb to provide a written summary of the concepts proposed. She said that her request was declined. Vice Mayor Tollini asked if there was still a way for the Town to track the individual rentals. Town Attorney Stock said that if the Town adopts its own ordinance requesting this information, then it could be enforced. For instance, he said if the ordinance states that all rentals would be in violation of the Town's ordinance, he said Airbnb (and other platforms) might re -think their position. Town Council Minutes #21 -2015 November 18, 2015 Page 4 Councilrnember Fredericks asked if staff had a more up-to-date number of current short-term rentals in Town. Planning Manager Watrous said that staff had not done a recent count. Town Manager Curran said the number of short-term rentals had been estimated at 90; Watrous clarified that this number was provided by a resident. Fredericks said the number 50 had been used at the last Council meeting. Mr. Watrous said that number had been verified by staff, at that time. Mayor Doyle opened the hearing for public comment. 1. Allan Lefkof, Treasurer of Tiburon Marinero HOA, representing 132 homes, talked about short-term rentals in their neighborhood that had been problematic. He gave the example of 121 Sugarloaf, which had been listed on VRBO as a corporate meeting place for $1400 per night. Lefkof said the problems that ensued were traffic going the wrong way on that street, smoking in the residence, and others. He said the Town had subsequently found that it was a commercial usage, incompatible with the zoning of the neighborhood. Thereafter, he said the property owner switched to advertising the property for weekend rentals, for "family reunions" and the like. He said the owner rented the home for around 100 days per year, or as he told Mr. Lefkof, "only 27% of the time". Lefkof said that staff and the Town Council had done a good job in preserving the peace and tranquility of Tiburon's neighborhoods. But he went on to describe what he called, "Raccoon Mondays" that followed the family reunion weekends. He said that weekend renters did not know about the garbage and fire rules of the local area, which led to problems with trash collection and health and safety issues. Mr. Lefkof said that he brought two recommendations from his HOA, to the hearing: 1) Support of a total prohibition by the Town of short-term rentals; or if that does not occur, 2) To establish limitations like a 7 -day minimum (and maximum 14 day) rental to avoid 50 weekends of neighborhood "churn" per year. Lefkof said he understood the free market economy but stated that "churn" destroys the fundamental properties of a neighborhood. 2. Maureen Miekle said she had lived here for a long time in a 12 -unit condominium building which stood isolated at the end of a street. She said that all the front doors in the building faced each other and, until recently, all the neighbors knew each other. Recently, Ms. Miekle said that two units had been sold and were now used as short-term rentals. She said, "Now, we don't know who's corning in or out." She said this was disconcerting and a bit frightening. Ms. Miekle said one listing said its rental was for not less than a month and prohibits smoking, however, she said there was no way to know if this was the case, and noted that there had been smoking violations, water Left running, and other issues. Miekle said the problem is that "we don't know these people" and in the case of water left running, there was no way to reach the owners to report the problem. Town Council Minutes #21-2015 November 18, 2015 Page 5 She asked the Council to uphold its original ban until there was more information on what the State would do to address this issue. She asked for the Council's support. 3. Ulrik Binzer said that there was general consensus about the problems related to short-term rentals but that there was an "easy fix", that is, to require permanent residency of the unit's owner. He said that the Town could ask for a driver's license or utility bill, or both, to determine residency. He said that a five or seven-day minimum would not create "churn" and that people would "self -police". He said people who rent on this basis did not want massive parties; that they would have their self-interest at heart. 4. George Landau, resident of Sugarloaf Drive for 43 years, said he prided himself in having a home that was a "conflict -free" zone. He said they had entertained countless guests over the years and that it was not a commercial use. He said he had done home exchanges, as well, and thought that people who wanted to take sabbaticals, for instance, should still be allowed to do so [and rent out their homes]. He said that younger people could not afford to buy homes and rents are escalating, so he proposed allowing short -tern rentals (he used three months as an example). He recommended this type of "connnercial" use, which he said was not an "abuse". 5. Cleveland Justis, resident of Karen Way for 12 years, thanked the Council for its thoughtful deliberation. He said that he worked for a non-profit and that his family had used rental income to be able to live here. He said the subcommittee meetings were helpful, noting that most who favor short-term rentals want to "do it right" and care deeply about the connnunity. In short, he said he favors the institution of regulations rather than a ban. Justis said that bans are flagrantly abused, and said that these rentals were not part of the "new economy"; he added that it was a good sign that Airbnb is reaching out to the Town. He recommended that the Town Council adopt the Planning Commission's recommendation as to regulation of short-term rentals. 6. Sue Zimmerman Quinn, Vista Del Mar Lane, said that Old Town Tiburon was unique and may well need special handling in this issue. She said that since 1986 she had lived in a duplex and rented out the other half. She said that within 100 feet of her residence were 11 other homes, and 16 rental units. She said and 6 of the 11 homes had absentee owners. Of these rentals, she said there was nightly, weekly and monthly "churn." She said that regulations led to a "slippery slope" of rules and exceptions to rules, and that the financial incentive was so great as to lead to violation of rules. Ms. Quinn said the problem is lopsided—that she experiences inconvenience [from "churn"]; worse, she said that the rentors do not, plus they make lots of money. She said that if the ban is lifted, it will be very difficult to retract because the rentals generate income and this will create a whole class of capital and people who will fight to protect it. Ms. Quinn said that another reason to uphold the ban was that allowing short-term rentals removes needed housing from the market, further reducing the pool. Town Council Minutes #21-2015 November 18, 2015 Page 6 With regard to complaint -based enforcement, Ms. Quinn said that complaints would need to be followed up upon right away. She said that the fines should be high — a month's rent, for instance, and on up for second offenses, etc. She said she was leery of regulations because she would not want to "rat out" her neighbors. She asked the Council to ban short-term rentals in Tiburon. Mayor Doyle closed the hearing at 8:18 p.m. and opened the Council discussion. Councilmember Fraser said he had voted in favor of the new ordinance (ban) in August but had asked for a "pause" in order to do a bit more work and obtain more information on this subject. Having done so, he said that he had not heard or learned anything different since that time. Fraser said he had read the reports in the Council packet on the impacts of short-term rentals in places like Richmond, Virginia, and Los Angeles, California, and they were not all favorable. He said that Tiburon was a "one of a kind" community; not LA or Santa Monica, and that he would vote in favor of an ordinance to ban short-term rentals. He reiterated that Tiburon is not a resort community; rather, it's a community where "people know people". He said it has unique neighborhoods, such as Old Tiburon, and that "one size does not fit all" in this sort of community. He said it was too early to adopt rules and regulations as the industry was rapidly evolving. He said this sea change should not drive the Town's decision. Vice Mayor Tollini said she takes her role as "guardian" of our neighborhoods seriously, but she said that a ban on short-term rentals would have the opposite effect to what the Council was seeking to protect. Tollini said that with 50-90 existing rentals, an outright ban would leave no room to create a budget for enforcement, and that the Town would really hold no sway unless there is a permit system and an ability to collect TOT and impose fines. She said the rules could be simple, such an establishing an annual maximum (such as 14 days), a fine if the rules were broken, and a "kitty" for enforcement. She said the best way to address the issue of "churn" and "party houses" is to allow short -tern rentals, reasonable rules, and hefty fines for violators. Councilmember O'Donnell said that this was a challenging issue, with good arguments on all sides. However, he said he would not change his position (to ban short-term rentals) and the reason is that Tiburon is primarily a "residence community", as opposed to a "secondary residence community", such as Palm Springs, Cape Code and others. He said in those communities, residents know what to expect; this is not the case, in Tiburon. O'Donnell surmised that 95% of Tiburon residents think of this as a "primary residence" community, and that it was important to protect the integrity of the community spirit. He said it would not be wise to move to allow commercialization of residential property, and that it was not in the interest of the community. He said one has to ask the question, what is fair for all, and not to allow what is only great for some, because it is not in the community's interest. Town Council Minutes 1421 -2015 November 18, 2015 Page 7 Councilmember Fredericks said that the question considered by the ad hoc committee was one of allowing reasonable use of short-term rentals while minimizing its impacts. But Fredericks noted that short-term rentals change the ratio of permanent housing, and would be contrary to the goals of the General Plan, such as "Village Character". Moreover, Fredericks said that outright prohibition is clear, without need for interpretation, and that this action would not implicitly lead to support of illegal activity. She said that she, too, would continue to vote in favor of banning short-term rentals. Mayor Doyle said that he was leaning toward support of the Vice Mayor's position. He referred to a book entitled, "Disruptive Innovation" that describes a phenomenon of change in that once it surfaces, everything around it also changes. Doyle said that he did not believe in making laws for the lowest common denominator; he said that in his mind, "fair for all" would be to make reasonable rules and make the existence of short-term rentals acceptable to the majority of the community. Doyle said that in his view, short-term rentals were a way for people with kids in school who want to take a vacation to be able to afford it. He proposed trying a system of regulations for a trial period, such as six months. He said the 50-90 units were not going to go away; he said that most of these were people who wanted to "do the right thing". He suggested trying an owner - occupied, primary residence rule, with a7 -days rental minimum, for a trial period. Councilmember Fredericks made a motion to adopt the ordinance, as written. Mayor Doyle asked to continue the discussion. Councilmember O'Donnell said that a short-term rental on his street had been a "nightmare". Doyle said that not all short-term rentals were like this. O'Donnell said that the bottom line was commercialization of the Town. Doyle asked how the Council planned to stop this phenomenon. Councilmember Fraser said that it would be a regulatory nightmare, one way or the other. But he said it was an issue that would evolve. For instance, he said that rentals should not be allowed in tight, compact neighborhoods. Fraser also said that this issue could be revisited in future, as the industry evolves. But for right now, Councilman Fraser said the best course of action for the Council to take was [uphold the ban]; to "keep its powder dry" and vote to "do the right thing for the community". Vice Mayor Tollini said that Fraser himself had noted the changing demographics of the community; a change that represented many younger families. She said that [for these families] two-week rentals did not represent "commercialization". She said that reasonable restrictions and enforcement would equal good neighbors. Town Council Minutes #21 -2015 November 18, 2015 Page 8 Councilmember O'Donnell said that Councilmember Fraser's point was well taken about the uniqueness of each neighborhood. He called out Old Tiburon, Hillhaven, and others, that these were popular locations for "party houses". He said that neighborhoods that were more spread out, like Belveron, might not be as affected. But he said that preservation of neighborhood character is important—he said that is why people run for office and are voted into office. He said the Council would be wise to stop this now. Councilmember Fredericks noted that the Vice Mayor had served on the Planning Commission which had adopted the most recent General Plan. She again cited the values and goals of the General Plan --residential and village character; she said these are not "ageist" issues; rather, they represent what is important to the community. Fredericks also said that it was valid to look at what has happened in smaller towns and how they have been affected [by short -tern rentals], in making an evaluation. The Vice Mayor said that she did not disagree. Councilmember O'Donnell said he agreed with Tollini's statement about a lack of funds for enforcement, but he said that neighbors will call in and the Police and Community Development Departments will have to find ways to respond to complaints. Councilmember Fredericks said that money for enforcement is a "Trojan horse". O'Donnell agreed, stating that this is not about [the Town obtaining] revenue and Airbnb knows that. Vice Mayor Tollini countered, stating that the Town could say that a permit is required; or perhaps require them [renters] to list on another platform [if Airbnb does not cooperate] such as VRBO. Councilmember Fraser said that under current regulations, the Town only had five or six permits currently on file, but that that the number of rentals far exceeded it. Fraser then seconded the motion on the floor - to adopt the ordinance [Amending Title IV, Chapter 16, Zoning] to prohibit seasonal rentals. The Town Clerk called for a roll call vote: AYES: Fraser, Fredericks, O'Donnell NOES: Doyle Tollini. Motion passed 3-2. Ordinance adopted. TOWN COUNCIL REPORTS Councilmember Fraser gave a report and update on the Yellow Bus program, as well as some insights into the future of the program and a return to the Council in January. He talked about successes (reduction of traffic on Tiburon Boulevard, counted during certain hours of the day), Town Council Minutes #21 -2015 November 18, 2015 Page 9 and areas that still needed work (bus schedules and meeting an-ival times). He gave credit to the many stakeholders in the program, and the people who had worked so hard to ensure its success, including Councilmember McCaskill of Belvedere and Chief Cronin of Tiburon, who were in the audience. Councilmember Fraser also commended Sally Wilkinson who had volunteered to work on a "real-time" platform to track bus schedules. Councilmember Fraser said the idea was to keep moving forward with the Yellow School Bus program, however, he said it would need support. To this end, Fraser said that options on the table included the formation of a joint powers authority between Tiburon and Belvedere, and the need to find a way for a revenue stream, such as a parcel tax, to fund the program. He said these matters would come before the Council for its consideration in the new year. Councilmember O'Donnell gave a report on a PG&E proposal to increase exit fees charged to new Marin Clean Energy customers. Also part of the packet was a sample letter to the California Public Utilities Commission (CPUC) in opposition to these fees. O'Donnell said as the Town's representative to Marin Clean Energy, he was prepared to sign the letter. The Council concurred. Mayor Doyle reported that the Blackie's Picnic Area project would be completed shortly. TOWN MANAGER REPORT None. WEEKLY DIGESTS • Town Council Weekly Digests — November 6 & 13, 2015 ADJOURNMENT There being no further business before the Town Council of the Town of Tiburon, Mayor Doyle adjourned the meeting at 8:59 p.m. FRANK X. DOYLE, MAYOR ATTEST: DIANE CRANE IACOPI, TOWN LERK Town Council Minutes #21 -2015 November 18, 2015 Page 10