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HomeMy WebLinkAboutTC Agd Pkt 2011-07-06 (2)TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: BACKGROUND Mayor and Members of the Town Council Department of Administrative Services Town Council Meeting July 6, 2011 Agenda Item: /)//-3 Recommendation to Adopt Resolution Approving Mill Valley Refuse Service Collection Rate Increase of 15.88% At its regular meeting of June 15, 2011, the Town Council considered an application for a rate increase by the Town's solid waste hauler Mill Valley Refuse Service (MVRS). The application submitted by MVRS on April 1, 2011 initially requested an increase of 13.61%. Since the application was submitted, the Town has approved a new franchise agreement which called for, among several other changes, an increase of 2% in the franchise fee. Based on the terms of the new franchise agreement, the requested rate increase is now 15.88%, effective July 1, 2011. After discussion on the merits of the rate increase, Council requested MVRS provide additional financial information related to its operations for the past five years. Also requested was information regarding the loss of revenue directly related to MVRS' activities within the Town of Tiburon due to migration of some customers to smaller can sizes, and an explanation of why salvage income from recycling activities is projected to be flat over the previous year even though scrap prices have increase significantly. Relative to forecasted expenses for 2011, Council requested MVRS provide justification for the significant increases related to worker's compensation insurance and fuel prices. All the agencies served by MVRS, which includes Mill Valley, Corte Madera, Belvedere and the County, have approved their rate increases running between 11.02% - 14.54%; the exceptions at this date are Almonte and Tiburon. ANALYSIS Mill Valley Refuse has provided audited financial statements for 2006, 2007, 2008 and 2009 (Exhibits 1-4). The financial statements for 2010 have not been completed. Staff has reviewed the Statement of Operations for the four years provided. MVRS has averaged a net profit of 1.7% for 2006, 2007, 2008 and 2009. Attached as Exhibit 5 is an over view comparison of the Statement of Operations for the four audited years. MVRS's in-house accountant, Claudia Hayes, and Dave Button of Armanino McKenna will be available to answer specific questions relating to the audited statements and rate increase application. TOWN OF TIBURON PAGE 1 OF 4 The requested rate increase is a result of projected revenue loss, mainly due to migration to smaller cans, coupled with increased expenses in several categories. In reviewing the 2010 actual financial activity versus the forecasted 2011 activity that was presented as justification for rate increase (Exhibit 6), MVRS is projecting revenues to decrease by 1.5% and expenses to increase by 5.2%. Attached as Exhibit 7 is a table illustrating the cost of migration revenue losses from June 30, 2010 to June 30, 2011. During that 12 month period, it is expected that MVRS will have lost $33,511.08 in revenue from its Tiburon operations or 1.5% due to migration, which is the basis for its projection going forward. Councilman O'Donnell requested further information explaining why the recyclable salvage redemption revenue is not projected to increase over 2010 actual. Attached as Exhibit 8 is a letter from MVRS which indicates that their contract with Waste Management provides for a fixed rate for the purchase of single stream recyclables at $20/ton through June 2011. After June 30, 2011 Waste Management will be paying MVRS a percentage of the composite market rate for single stream recyclables, which fluctuates along with the commodity sales price. As indicated in their letter, the revenue for recyclable materials can fluctuate upwards or downwards oda quarterly basis and MVRS feels using their 2010 actual revenues as the forecast revenue for 2011 is appropriate. Should there be a significant spike in this revenue source during 2011, it should translate into holding rates lower in 2012. Recyclable-related revenues account for approximately 2% of MVRS' revenue. The largest projected expenditure increase is from dump fees being charged by Redwood Landfill. Dump expenses are projected to increase $403,666, or 36.7%, and represent 11.4% of total expenses. Attached, as Exhibit 9, is the portion of the contract between MVRS and Redwood Landfill that outlines the disposal rates which are effective July 1, 2011. Staff is of the opinion that the landfill expense is justified. The allocated cost of dump fees to the Town of Tiburon accounts for an increase of 3.43% in fees. The second largest expenditure increase is for fuel costs. MVRS projects fuel costs to increase $241,245 or 42.1%. Fuel costs account for 6.2% of overall expenses. As explained by MVRS representatives at the June 15, 2011 hearing, they have entered in to a six-month contract with their diesel fuel provider through September 2011. This agreement was entered into in light of then rapidly increasing fuel costs. At the time, it was probably a good business decision to enter into a six month agreement to cap fuel costs, however, there may be some negative impact to rate payers as fuel costs have now dropped since strategic reserves have been tapped. Attached, as Exhibit 10, is a copy of the agreement between MVRS and their fuel provider Royal petroleum. The Allocated fuel costs to the Town accounts for an increase of 1.71%. Worker's Compensation rate increases were also cited as playing a role in the significant rate increase being requested. MVRS projects Worker's Comp insurance to increase $167,837 or 29.5%. Worker's Comp Insurance accounts for 5.6% of overall expenses. MVRS has provided a letter from their insurance carrier (Exhibit 11) stating that their insurance premium is expected to increase between 25%-35%, based on claims activity and market conditions. The allocated workers' compensation insurance to the Town accounts for an increase of 1.4%. 7 ,i In an effort to reign in expenditures, MVRS has reduced salaries by $181,040, or 5.3%. Also projected to decline is the expense related to insurances, which includes liability, vehicle, property and officer's life insurance premiums. These rates are projected to decline $191,140 or 30.5%. If these expenditure decreases were not projected, MVRS would have had to ask for an additional 2.9% increase on top of the 15.88%. As is customary when seeking a rate increase, MVRS projects to the best of its ability revenues and expenditures for the upcoming year. Again, their rate application must be received prior to April 1St for an adjustment date of July 1St. Staff is of the opinion that the assumptions used by MVRS for this increase application were valid. The only area where there has been a fairly significant market changes since that date is related to fuel prices. There are times when fuel prices increase after a rate adjustment is granted and MVRS absorbs that costs. MVRS is locked in for fuel prices for the first quarter of this contract. For the purpose of discussion, if fuel costs were only projected to increase by 20%, the originally requested 13.61 % increase would have been adjusted downward to 12.68%. Using simple assumptions, staff projects the new franchise agreement would then call for a 14.95% increase. This translates into a savings of 29 cents per month for a 32-gallon can on the flats and 33 cents per month on the hills. Approximately every three years the Town of Tiburon and cities of Corte Madera, Belvedere, and Mill Valley contract for an independent rate analysis of MVRS's operations. The cost of this analysis is borne by MVRS. Staff believes that due to the significant rate increases requested this year that the participating agencies will conduct another such an analysis in 2012. Exhibit 12 is the last rate analysis, which was prepared in connection with the July 1, 2009, 3.1% rate increase application. Based on the analysis, and as outlined in Table 1, R3 Consulting concluded that MVRS would have been justified in requesting an 18.6% increase. Should MVRS assumptions be off for this year's rate increase request which would have caused rates to be lower; next year's independent analysis will detect the variance. Attached as Exhibit 13 is a schedule indicating the rate for a 32-gallon can in Marin County communities effective July 1, 2011. FINANCIAL IMPACT For households with a typical 32 gallon garbage can, the requested 15.88% increase would result in a monthly cost of $35.07 for "Flat Area" service, an increase of $4.81. For the same service in the "Hill Area" the monthly cost would be $40.93, an increase of $5.72. RECOMMENDATION Staff recommends that the Town Council: 1. Conduct a public hearing on the proposed MVRS rate increase application 2. Adopt the attached Resolution authorizing an adjustment in regular rates of 15.88% (Exhibit 14) Exhibits: 1. 2006 Audited Financial Statement 2. 2007 Audited Financial Statement 3. 2008 Audited Financial Statement 4. 2009 Audited Financial Statement 5. Comparison of 2006-09 Financial Statements 6. Application for Rate Increase 7. Impact on Revenues due to "migration" in Tiburon 8. Statement from MVRS regarding salvage income from single stream recyclables 9. MVRS Contract with Redwood Landfill for disposal rates effective 7/1/11 10. Contract between MVRS and Royal Petroleum through September 2011 11. Letter from MVRS insurance provider regarding rates effective 10/1/11 12. R-3 rate analysis dated 8/27/09 13. Rate comparison Marin County 14. Resolution approving 15.88% Rate Increase Prepared By: Heidi Bigall, Director of Administrative Services MILL VALLEY REFUSE SERVICE, INC. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2006 Armanino McKmenna LLP Certified Public Accountants & Consultants A- .ti' EXHIBIT ARMANINO MCKENNA LLP Cerrifsed Public Accounranrs & Consultants 1266 Alcosta Blvd., Suite 500 San Ramon, CA 94553-4427 ph: 925.790.2600 fx: 92.5.790.2601 WWW.a1T1l1r.coin INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stoclcholders of Mill Valley Refuse Service, Inc. San Rafael, California We have audited the accompanying balance sheet of Mill Valley Refuse Service, Inc. (the "Company") a California S-Corporation, as of December 31, 2006 and the related statements of operations, stockholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and supplementary schedules are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in tic financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that otit• audit provides a reasonable basis for our opinion. .In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mill Valley Refuse Service, Inc. as of December 31, 2006, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America, 1A1, Z- LP ARMANINO MCKENNA LLP July 17, 2008 SAN FRANCISCO • 5AN JOSE 0 LONG BEACH hi0ORE STEPHENS AN ' EXHIBIT MILL VALLEY REFUSE SERVICE, INC. Statement of Operations December *31, 2006 Revenues Collection Recycling Debris box Portable toilets Other Total revenues Operating expenses Gross profit General and administrative expenses Income from operations Other (expense) Interest expense Uncollected sales tax on portable toilet rentals Other Total other (expense) Income before taxes Income taxes Net income The accompanying notes are an integral part of these financial statements. -4- $9,962,544 942,801 1,491,166 946,125 43,092 13,385,728 11,524,302 1,861,426 1,022,166 839,260 (117,660) (94,824) (168,438) (380,922) 458,338 2,738 S 455,600 E~XHiBIT I MILL VALLEY REFUSE SERVICE, INC. Statement of Operating Expenses and General and Administrative Expenses For the Year Ended December 31, 2006 Operating expenses Salaries, wages, and benefits S 4,790,908 Insurance 1,990,825 Truck operating expense 11667,788 Disposal 1,268,600 Franchise fees 111825513 Depreciation 526,542 Equipment rental expense 97,126 Total operating expenses $11,524,302 General and administrative expenses Administrative expenses $ 236,563 Billing expenses 361,354 Management fees 168,302 Professional fees 99,720 Bank charges 841,277 Office expenses 70,373 Licenses and permits 69,992 Travel and entertainment 64,669 Advertisement 61,711 Miscellaneous 46,857 Maintenance 28,061 Contributions 25,652 Dues and subscriptions 16,562 Safety plan 131073 Total general and administrative expenses $ 1,022,166 The accompanying notes are an integral part of these financial statements. -16- EXHIBIT / MILL VALLEY REFUSE SERVICE, INC. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2007 2 Ar ani'no McKenna Certified Public Accountants & Consultants T 2 ARMANINO MGKENNA LLP Certified Public Accounranrs Consultants 126,67 Alcosra Blvd., Suire 500 San Ramon, CA 94583-=1427 Ph: 925.790.2600 ft: 925.790.2601 Nv,,v,.v.am1lP.c0m INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholders of Mill Valley Refiise Service, Inc. San Rafael, California We have audited the accompanying balance sheet of Mill Valley Refuse Service, Inc. (the "Company") a California S-Corporation, as of December 31, 2007 and the related statements of operations, stockholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and supplementary schedules are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no Sucli opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates madc by management, as well as evaluating the overall financial statement presentation. We believe that 0L11- audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the Inancial position of Mill Valley Refuse Service, Inc. as of December 31, 2007, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Xe le-,~ Z- L ARMANINO McKENNA LLP AtIgust 22, 2008 SAN FRANCISCO • SAtj JOSE • LONG BEACH ..-xre.v.n rezK. r, =r MOORE STEPHENS ___;fl EvI-S s_ MILL VALLEY, REFUSE SERVICE, INC. Statement of Operations For the Year Ended December 31, 2007 Revenues Collection Recycling Debris box Portable toilets Other Total revenue Operating expenses Gross profit General and administrative expenses Income from operations Other income/(expense) Interest expense Other Total other income/(expense) Income before taxes Income tastes Nct I11collle 10,161,907 1,248,698 1,453,521 1,053,117 59,807 13,977,050 112876,003 2,101,047 980,888 1,120,159 (127,897) (34,805) (162,702) 957,457 11,200 S 946,257 The accompanying notes are an integral part of these financial statements. -4- EXHIBIT 2- MILL VALLEY REFUSE SERVICE, INC. Statement of Operating Expenses, and General and Administrative Expenses For the Year Ended December 31, 2007 Operating expenses Salaries, wages, and benefits S 5,157,301 Insurance 1,938,339 Franchise fees 1,434,590 Truck operating expense 114071706 Disposal 1,283,088 Depreciation 538,754 Equipment rental expense 116,225 Total operating expenses S 11,876,003 General and administrative expenses Administrative expenses S 2641794 Professional fees 203,983 Management fees 1025413 Bank charges 85,788 Licenses and permits 77,894 Office expenses 66,243 Billing expenses 637251 .Maintenance 43,346 Advertisement 38,566 Contributions ?1) ,056 Travel and entertainment 16,270 Dues and subscriptions 820 .Miscellaneous (4,536) Total general and administrative expenses $ 980,888 -16- EXHIBIT Z MILL VALLEY REFUSE SERVICE, INC. FINANCIAL STATEMENTS' AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2008 LLP i%rmanino McKenna Certified Public Accountants & Consultants ~t EXHIBIT -s ARMANINO MCKENNA LLP Cerrified Public Accountants Consulranrs 12667 Alcosr.t Blvd., Suite 500 San Ramon, CA 94as3-4427 ph: 925.790.2600 fx. 925.790.2601 ~jrtiv~v.a~nllp.4om INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholders of Mill Valley Refuse Service, Inc. San Rafael. California We have audited the accompanying balance sheet of Mill Valley Refuse Service, Inc. (the "Company") a California S-Corporation, as of December 31, 2008 and the related statements of operations, stockholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. P We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and supplementary schedules are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mill Valley Refuse Service, Inc. as of December 31, 2008, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ~amtMO ~'"IG~~r1a L Lp ARMANINO McKENNA LLP December 15, 2009 SAN FRANCISCO • SAN JOSE An YaY.w.alnrt r+'fr. f.iw Ct MOORE STEPHENS Awl. EXHIBIT 3-5 N41LL VALLEY REFUSE SERVICE, INC. Statement of Operations For the Year Ended December 31. 2008 Revenues Collection Recycling Debris box Portable toilets Other Total revenue Operating expenses Gross profit General and administrative expenses Lass :From operations Other income/(expense) Interest expense Other Total other income/(expense) Loss before taxes Income taxes Net loss $ 10,290,319 1,216,499 1,025,440 840,109 93,822 1 3.456,189 13.064,951 391.238 847.276 (455,988) (101,280) (10,324) (111,604) (567,592) 866 $ (568,458) The accompanying notes are an integral part of these financial statements. -4- EXHIBIT 3 MILL VALLEY REFUSE SERVICE, INC. Statement of Operating Expenses and General and Administrative Expenses For the Year Ended December 31, 2008 Operating expenses Salaries, wages, and benefits S 5,539,661 Insurance 2,351,415 Franchise fees 1,625,905 TrucEc operating expense 1,540,499 Disposal 1,185,691 Depreciation 671,701 Equipment rental expense 150,079 Total operating expenses r $13,064,951 General and administrative expenses Administrative expenses S 300,032 Professional fees 134,443 Management Fees 120,153 Bank charges 33,461 Licenses and permits 53,362 Office expenses 62,800 Billing expenses 32,442 Maintenance 29,117 Advertisement 49,421 Contributions 20,159 Travel and entertainment 9,374 Miscellaneous 2,462 Total general and administrative expenses $ 847,226 -16- EXHIBIT NIILL VALLEY REFUSE SERVICE, INC. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2009 Armanino M.cmforenna "p Certified Public Accountants & Consultants . A.. I ~4~. Est ~i~ll;ll~iFll ~~"~IIBIT ARMANIND McKENNA t.LP Certified Public Accountants & Consultants 11667, Mcosta Blvd., Suite 500 San R irnon, CA 94583-4427 ph. 92 5.790.2600 f~: 925.790 2601 w•N'Nv.amllp.com INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholders of Mill Valley Refuse Service, Inc. San Rafael, California We have audited the accompanying balance sheet of Mill Valley Refuse Service, Inc. (the "Company") a California S-Corporation, as of December 31, 2009 and the related statements of operations, stockholders' equity, and cash flows for the year then ended. These financial statements are the responsibility orthe Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance abol_It whether the financial statements and supplementary schedules are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mill Valley Refuse Service, Inc. as of December 31, 2009, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. R41-M44j W o McXenn,~L L LP ARMANINO McKENNA LLP February 18, 2011 SAN FRANCISCO * SAN Josc %-..,..,;.,lt, r..._.,.,.Y.,,,.,..", 10 ORE ST - HENS 1 .14..411 , MILL VALLEY REFUSE SERVICE, INC. Statement of Operations For the Year Ended December 31, 2009 Revenues Collection Recycling Debris box Portable toilets Other Total revenue Operating expenses General and administrative expenses Gross profit from operations Other income/(expense) Interest expense Other Total other income/(expense), net Income before taxes Income taxes Net income $9,962,487 1,253,950 856,268 659,229 90,108 12,872,042 1 I , 783,116 878,076 160,850 (67,539) 39.777 (27,762) 133,088 38,025 $ 95,063 The accompanying notes are an integral part of these financial statements. -4- a e o MILL VALLEY REFUSE SERVICE, INC. Statement of Operating Expenses and General and Administrative Expenses For the Year Ended December 31, 2009 Operating expenses Salaries, wages, and benefits $ 5,437,364 insurance 1,749,436 .Franchise fees 1,662,499 Truck operating expense 1,131, 829 Disposal 110641Y518 Depreciation 6703054 Equipment rental expense 67,416 Total operating expenses $11,783,116 General and administrative expenses Administrative expenses $ 25406 Professional fees 185,278 Management fees 61,367 Bank charges 31.782 Dues and subscriptions 410 Licenses and permits 103,939 Office expenses 77,175 Maintenance 30,305 Advertisement 37,911 Contributions 31,444 Travel and entertainment 20,513 Miscellaneous 20,269 Bad debt expense 22,877 Total general and administrative expenses $ 878,076 - 16- "~HIBIT U Z cn W0 U__ > Q W W Of U) W W 0- U) O :D W LL O W Z W W2 J W Q Q J (n CJ_ G d• t~ CJ) ~ t•- N - CO O O to O M ~t U) (D N N tri CO R (D O N ad 0r- M r- r M rn N o O 00 00 IS O O r O N N Cf) cc (f) O p~ Orn o) d N T- N T- Cl) t`00LOO(3) LO IT M OD N 0) N`to 0 t` 0 co T- N 00 C) ~ NOMLOa0 a; Mm : tom- ' CV C rn r- (D 00 C.0 r 0c) N N 0) P- p c CY) ( O A N~ O 19 C T N o C D O C D 19 ch IT LO IT ~ { ( D ~ m N r~ t• U) (Y) N r N N N C~ N C D 00 r U') O tl- O00(3)00 N' CD CO N` O N 00 q) M OD LO Co N o rr 0) Ul to co N 0 ° "Zr O N N 'r- O r O OD T,- O O O rn NcycflrnO N MOO S- O t- M 00 L O C) CD LO to U) G) N 00 ti Co CD N (0 co (Y) 0) N co CD o0 tl- 00 CD r Q> r hi r r N r m 0) O m N `rn r (0 t- 00 '"T N t0 00 rt- M d o N 00 U) N t` co O 0} CD LO M NT N r 00 r 0) N r m CD U) 00 OO O CO Li) O co Cn "T I` N In r- O Ch (3) N ,t 00 U') CD 17 r LO O C~ NNOCo V' O00 m ~ r j U ~ N Ca r- * - r M c7 r r C r t t`- M r r-- tom- O M ©a , 0) N t` O' ti ©(3) N r" O U) CD 00 to t.() O LO O LO W LO 00 O O co 00 t• "T N N 'c- 00 cl? M CJ) t- CD C0' CD O N ti r tD (D lqr U) U) Lx) t-- t- 00 LO N CD U) r N ,Cr O O OD Cn 00 r - rn rn C7 r r r C7 r r r CV r r d N d Q0 CD s- (0 U-) N ( N CC~.< 00 0.- (N OO 00 C) o CflN(n (V ©CD CD (D N M M C) 00 O tom- M r- ~t N Cr) M t` (D NNt=CDM lf d N CD O O O0 N L M (D 4t 0) V. 4q 00 N N ~t M oO Lo LC) Q. O O v U) co U-) C) u~ CO ~ 4' r r r Cl) C (U O a) v) ~ a) C C O O Q C a) fA a) In N > a) cn X0 O CL N a) C W C M E ° W F- (n L N a) c rno C/) CO a) xE W "O m o m } w a) M o I- Q Q O o o x a) a) tf L Z O a) a) ..-Fu N CL C O V V W O UW0a 0 m L 4- a) O cn u L E E C C > _ W " Q a) , a) -C a) a) Ix O (D C~ O C C Z z EXHIBIT RECEIVED 11 415-457-9760 Fax 415-457-3003 APR -4 L U I 1 TOWN MANAGERS OFFICE TOWN OFTIBURON Peggy Curran, Town Manager Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 SUBJECT: 2011 RATE APPLICATION April 1, 2011 Enclosed is Mill Valley Refuse Service's Rate Application for the 2011/2012 rate year. Due to economic conditions largely out of our control, which are explained in detail in this letter, we require a rate increase of 13.61 % in Tiburon. Before detailing the reasons for this year's rate application, I'd Like to report on the initial success of the new food waste composting service. Since August of 2010, when MVRS began weekly collections of food waste with yard waste, we have seen evidence of growing participation in the program among our customers. The attached page shows our most up-to-date figures for trash, compost and recycling tons collected from August 1, 2010, when the new program began, through March 25, 2011. Comparing figures from the same time period last year, we see a reduction of 552 tons of trash collected, and an increase of 1,377 tons of compost (yard and food waste) collected. (At the same time, recycling tons collected also increased by 418 tons.) This is a great start, and we expect the numbers to rise as awareness and participation in the service grows. Another sign that the food composting service is working for our customers is the increase in the numbers of people reducing the size of their trashcans. This has been a steady trend for years now thanks to recycling, and it accelerated last year with the introduction of food composting. Unfortunately, there is a downside to this "migration" from larger to smaller cans, which is explained in the Marin Voice editorial I wrote for the Independent Journal and included in this packet. Also included is a breakdown by area of the actual migration numbers since food composting began, and the revenue lost to this migration. • A revenue shortfall of nearly $120,000 due to migration is one factor in our request for a rate increase this year. Others include: EXHIBIT b 112 Front Street San Rafael, CA 94901 • A 12% increase in Workers' Compensation costs. We have countered such increases over the years with an aggressive safety program that has seen our Experience Modification number drop from 148 in 2003 to 77 this year. Despite this, we still face an increase of about $170,000 this year. Fuel prices are skyrocketing (once again). We use 185,000 gallons of fuel per year, and paid an average of $3.15/gallon last year. To ensure stable prices, we usually are able to contract a set price with our distributor, Royal Petroleum, for a six-month period. As of this writing, however, the distributor will not offer any long-term contracts due to unrest in the Middle East and the instability of oil prices. Diesel currently costs $4.45/gallon and is projected to go even higher this summer. We anticipate a staggering increase in fuel costs of a little more than $240,000 this year. Dump expenses rising too. We've just signed a new contract with the Redwood Landfill which increases the per ton cost of dumping trash by 13%. However, the cost of dumping compost material doubled because it costs much more to compost food waste than it does to simply chip up straight yard waste and useit for erosion control. This was completely anticipated. (In fact, last year we were able to convince Redwood to delay-this increase until now to mitigate the cost of starting the food waste compost service.) Now, however, we must begin paying the full cost of composting and that, combined with the added cost of dumping trash, is expected to increase our dump expense by $403,000 this year. • Business closures have a ripple effect on everyone's rates. Rates are lowest when fixed costs are spread over a large pool of customers. Rates rise as the customer pool shrinks. But it's important to note that not all individuals in the pool are equal. Rates aren't affected when one resident stops service, but the loss of a single commercial account, if it's big enough, can certainly impact rates. Not all of our service areas have a large pool of business customers, but among those that do, some were hit harder than others. Corte Madera saw the loss of Rite Aid and the Upland Apartments, which together. amounted to about $50,000 in annual revenue. (Win-Cup, which represents annual revenues of $25,000, announced it will close this year.) In Tiburon, two major supermarkets are now closed, and some restaurants have reduced service. We Have Reduced Costs When It Was In Our Control To Do So You will note that all of the above are factors over which we have little or no control. At this point, it is reasonable to ask what MVRS is doing to hold down costs in areas we do control. The big-ticket items here are labor and truck costs. We have postponed the purchase of one new packer truck this year. Also, we are continually reviewing the efficiencies of our routes to keep these costs down. Our new contract with the Redwood Landfill includes dumping our recycling in Novato, rather than making the much longer drive up to Santa Rosa, which we were doing daily until this year. This new arrangement enabled us to cut two recycling routes. Three more positions (one office position and two drivers) were eliminated due to retirements and cutbacks. Furthermore, old labor contracts have expired, and we have negotiated very limited wage increases for some workers and no increases for others. All of the above have enabled us to reduce our wage expenses in 2011112 -by $321, 000. Importantly, we know there is more to be achieved through a major route reorganization proposal on which we are currently working. The focus is to maximize savings in both labor and truck costs by switching from backyard to curbside trash service. We expect to present this proposal sometime in the late summer. To assist us, we have engaged the services of a company that uses computer models to evaluate and reorganize routes for maximum efficiency. You can check them out at www.fleetroute.com. We used this same company a decade ago, and reduced our trash workforce by 20% at that time. We know such a sweeping proposal to change our trash services will require a great deal of communication with our franchisors-through both private meetings and public workshops-so that we can hear feedback and debate the pros and, cons with all affected parties. The goal will be to stabilize future rates by combining this effort with an examination of how rates are affected by the migration problem (see Allarin Voice article). We anticipate the route reorganization and rate proposals will be positive moves in the right direction. As for now, thank you for your attention to this rate application. We are, of course, at your disposal when you are ready to discuss it. 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Cn 1 V O O N CD Cn co OD O O O O O O tD tD O CD Cn Ln ~ tr O Ln o w V A o c to CD O D r N N N O N O N N A V N N N w A 3 O A W N CO N W - - C D P O O O z Cn V V V W OD O A w - 1 A 0 -4 A O A A Ln O to Cn O O Cl 0 0 0 CD W (n P. v -4 w a rn o o tD CD O o o c o o 0 o OD cn w m v N N m O N N m N V 1 rn 1 ' X N Cn V N O O O - ' - ' O O N -W OD N N O C D Ln N ~ c V to D V V O O O O Or 0) V cn V - N ~ O N V A OD (D D ( D Ol A O 11 1 [T A to O ~ ! 1 - V CD r 0 0 0 N 1 W O o O o V W W O O c o A O V A N A O O Q) N HIBIT (e-) 1 1 MILL VALLEY REFUSE SERVICE, INC. d.b.a. ► MILL VALLEY REFUSE SERVICE ► PROJECTED FINANCIAL ACTIVITY 1 12/31/2010 ► ACTUAL 1 INCOME _ Curbside revenue $ 11,6011376.00 Debris box revenue 710,056.00 Storage box revenue 16,671.00 Salvage income - redemption 287,436.00 Total revenue 12,615,539.00 12/31/2011 FORECAST $ 11,408,648.00 710, 056.00 16671 00 r 87,436.0.0-~~.. 12-,422,811.00 EXPENSES Accounting $ 58, 504.50 72, 000.00 Advertising and promotion 27,036.00 271036.00 Computer expense 66, 019.00 66, 019.00 Depreciation 5681883.00 662,969.14 Dues and subscriptions 11,223.00 117223.00 Dump expense 11098,536.25 11502,202.27 Road impact fees- 2461892.00 266,433.00 Franchise fees 11540,278.00 1,6171093.93 insurance 627,700.98 00 4361561.38, 736 755 59 Insurance - workers comp. 568,919. , . Interest 83,025.00 83,025.00 Legal and professional 165,028.00 1651028.00 Licenses - trucks 611488.00 847731.22 Licenses - other 151711.00 15,711.00 Maintenance and repairs 271640.00 27,640.00 Office 2583338.00 2581338.00 Office of waste management fees 138,403.00 154,072.00 Safety Plan/DOT Tests 9,063.00 9,063.00 Salaries and wages - officers 861,805.88 886,111.88 Salaries and wages - franchise 3,4331283.00 3,252,242.90 Taxes - payroll 3131074.53 3027247.55 Taxes - real estate and business property 26,482.62 26,482.62 Telephone 27,562.00 23,000.00 Truck - parts repairs 293,115.24 293,115.24 Truck - tires 61,610.97 61,610.97 Truck - fuel 573,650.37 814,895.86 Union - health and welfare 7211586.00 704,662.00 Union - pension 4731363.00 4311833.00 Utilities 28,041.66 281041.66 Street Sweeping Costs 144, 027.66 157,438.63 Total expenses $ 12,530,290.66 $ 13,177,583.84 INCOME (LOSS) FROM OPERATIONS $ 851248.34 $ (754,772.84) ' A Z; T 3 Z -I c!> C C C m y n~i m cu o O O m m CD cn en r c0 m° o a 0 -xp CD C7 o o - _C) c c co: M x w m 0 0 5 m m v m-- 3 En ct) ° 3 CD o m m O O CD m m j X x -D m m a m m w w m o-I c z D in w CD N N o ? m E> > m= ~ c N cn c m N N m ~x cn .o :3, c 0~ =r CD -0 v m m 3o p) N N a m m'D a m m r m m m m m w m m W D> p1 w:E = m N o m co co O c CD c m N a a? 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O .A O CO CD ~ V O O V Cn N N CD O CD O CD 0) OD rn V -I OD j W 0 W A W CD CO O OD CO A V CD W V W A W N N Cn rn O N 0) m 1a W N Cn O 0 O N J. N W W N 0 O~ 07 Cn to N W CD CD 0) O V O CD (A O O W CO N O (A O W m o b O O O O N O O Ln W N O O O O O O Cn 0) O O (A V A O N j 0 (A O O O O O O N O O CD O V O J~ O O O V (A O cn m t13 A co -i n W r O Cn Cn O f0 W r 3 0 cn V 0) rn A V CD N N N Cn N j V A Ln rn N W O m W N N V m W Cn fn N W O m W W O 0 01 N V (A A. A W W O) m N cD 0 -t W V Cn A Cn W 0) 0 N N 0) V N co O N n 0= N Cn + O CD 0) m CD O A W N A 0 O W rn V V O O V Cn N N co 0 00 A W rn CO O CD W U. V 0 V W A W N N Cn rn O N rn j W O V ;a .-q m N A W N Cn O Ln O N A N W N 07 O CD CA m- N W m W W O V v V Cn rn O O M CO N O O O O OD O O O O O N O O Ln W N O O O O rn 0 0 rn V A O N O M O 000 O N O O 0 M V O A 0 0 0 O V D w P r w N A W O A V co N N N cn to N V A C:) rn N W O" rn 0 N N V M W W to m N CD O O W W O (A (A N V Cn fD A A W W (A CA N CD CO ) C" CD V Cn A Cn A 0) O N N 0) V N CD O Cn O n iD O) lD O O O) m CD O A O N A O A O W O V V O W V to N N CD O O O V D D V M W A W rn 0 O W M A V 0 W V W A" W N W M rn O N 0 - W O A W N In O Cn O N 34 N- W W N W O CD N Cn N W O 0 O O -4 O 00 CD ~ (A 0 0 CD CD N O O) O tD (A O O O O O O N O O Cn W N O O O O O V Z Ln W Ln rn 0 0 Cn V A 0 N" 0 W 0 0 0 0 0 0 N 0 N W 0 V 0 A 0 00 MILL VALLEY REFUSE SERVICE, INC. d.b.a. MILL VALLEY R ICE STREE S PING FORECA 2010 12/31/2010 ACTUAL INCOME Street sweeping income Total revenue _ EXPENSES Accounting Advertising and promotion Computer expense Depreciation Discounts taken Dues and subscriptions Dump expense Franchise & road impact fees Insurance insurance claims Interest Legal and professional Licenses - trucks Licenses - other Maintenance and repairs Office Office of waste management fees Safety Plan/DOT Tests Salaries excluded and non franchise Salaries and wages - Franchise Taxes - payroll Taxes - real estate and business property Telephone Truck - parts repairs Truck - tires Truck - fuel Union - health and welfare Union - pension Utilities Total expenses 12131/2011 FORECAST 0 0 0 0 0 0 0 0 36,364 42,078 0 0 0 0 463 463 0 0 6,678 4,644 0 0 0 0 0 0 1,956 1,956 0 0 0 0 0 0 0 0 0 0 53,749 54,421 0 0 3,918 3,975 282 282 0 0 2,961 2,961 1,553 1,553 14,457 20,537 17,891 13,246 3,218 3,486 539 0 $ 144,028 $ 157,439 INCOME (LOSS) FROM OPERATIONS $ (144,028) $ (157,439) Allocation.- Mill Valley Corte Madera Tiburon County Totals # of Customers Billings Allocation _ (59,359) $ (64,886) 4,632 41.21% (38,061) $ (41,604) 2,970 26.43% (37, 330) (40, 806) 2,913 25.92% (9,278) (10,142) 724 6.44% $ (144,028) $ (157,439) 11,239 16 EXHIBIT (o MILL VALLEY REFUSE SERVICE, INC. d.b.a. MILL VALLEY REFUSE SERVICE SCHEDULE OF FREE SERVICES 2009 2011 ACTUAL FORECAST MILL VALLEY BOXES DOLLARS BOXES DOLLARS DEBRIS BOXES 72 $46,398.96 72 $46,398.96 STREET CANS $0.00 $0.00 Less: Franchise Fees at 2% DB (927.98) (927.98) Less: Franchise Fees at 20% SC 0.00 0.00 Less: 10% Profit Allowance (4,547.10) (4,547.10) $40,923.88 $40,923.88 BELVEDERE DEBRIS BOXES 19 $10,859.00 19 $11,645.48 Less: Franchise Fees at $2 per box (38.00) (38.00) Less: 10% Profit Allowance 0.00 (1,160.75) $10,821.00 $10,446.73 CORTE MADERA DEBRIS BOXES 137 $ 86,677.16 137 $ 86,677.16 Less: Franchise Fees at 20% (10,401.26) (17,335.43) Less: 10% Profit Allowance (7,627.59) (6,934.17) 68,648.31 62,407.56 SPECIAL EVENT COSTS 0.00 0.00 $68,648.31 $62,407.56 TIBURON DEBRIS BOXES 72 $31,130.60 72 $41,754.24 Less: Franchise Fees at 0% 0.00 0.00 Less: 10% Profit Allowance (3,113.06) (4,175.42) 28,017.54 37,578.82 Street Cans 0.00 0.00 $28,017.54 $37,578.82 STRAWBERRY DEBRIS BOXES 0 $0.00 0 $0.00 Less: Franchise Fees at 10% 0.00 0.00 Less: 10% Profit Allowance 0.00 0.00 $0.00 $0.00 HOMESTEAD DEBRIS BOXES 0 $0.00 0 $0.00 Less: Franchise Fees at 0% 0.00 0.00 Less: 10% Profit Allowance 0.00 0.00 $0:00 _ $0.00.. COUNTY DEBRIS BOXES CREDIT 0 $0.00 0 $0.00 TOTAL 17 MILL VALLEY Ktruac 0CMVIt.c, Imo. u.u.a. MILL VALLEY REFUSE SERVICE FINANCIAL STATEMENT SUMMARY - SCHEDULE OF OPERATING INCOME (LOSS) 12/31/2010 ACTUAL INCOME Curbside revenue Debris box revenue Storage box revenue Salvage income - redeml Portable Toilets Total revenue STREET COLLECTION SWEEPING PORTABLE TOILETS 11,601,376 $ 710,056 16,671 287,436 597,164 $ 13,212,703 $ 11,601,376 $ 710,056 16,671 287,436 597,164 12,615,539 $ $ 597,164 EXPENSES Accounting $ 65,005 $ 58,505 $ 6,501 Advertising and promotio 27,036 27,036 Computer expense 66,019 66,019 Depreciation 652,000 568,883 36,364 46,753 Dues and subscriptions 11,223 11,223 - Dump expense 1,115,364 1,098,536 463 16,365 Road Impact Fees/Flat 246,892 246,892 Franchise Fees 1,540,278 1,540,278 Insurance 667,767 627,701 6,678 33,388 Insurance - workers com 568,919 568,919 - - Interest 83,025 83,025 Legal and professional 165,028 165,028 Other fees - Legal - Licenses - trucks 70,434 61,488 1,956 6,990 Licenses - other 15,711 15,711 Maintenance and repairs 27,640 27,640 Office 258,338 258,338 - Office of waste managen 138,403 138,403 Pension " Safety Plan/DOT Tests 9,063 9,063 Salaries excluded and nc 1,185,198 861,806 53,749 269,643 Salaries and wages - Frs 3,433,283 3,433,283 Taxes - payroll 336,647 313,075 3,918 19,655 Taxes - real estate and b 28,173 26,483 282 1,409 Telephone 27,562 27,562 Truck - parts repairs 296,076 293,115 2,961 Truck - tires 68,101 61,611 1,553 4,937 Truck - fuel and oil 634,078 573,650 14,457 45,971 Union - health and welfai 789,334 721,586 17,891 49,857 Union - pension 514,910 473,363 3,218 38,329 Utilities 29,929 28,042 539 1,348 Total expenses $ 13,071,436 $ 12,386,263 $ 144,028 $ 541,145 INCOME (LOSS) FROM C $ 141,267 $ 229,276 $ (144,028) $ 56,019 Exluded From Franchise Travel and entertainmei 32,513 79,614 Fines, penalties, miscel 5,310 4,511 Contributions 9,129 26,862 Other 14,617 25,778 79,698 Total Expenses 13,133,005 t";HIBIT 18 I v Z o O>:; nwm o~l D o WE: ~ N n rn c: CD cn , 3< v ° c° o ::I. o ~ cr CD CC 0) En CL 9L - o 0 ::E m CD CD < C- a a ~ c t) < m rn v m CD CD ~ C7 " CL) CL CD a CD cn a CD CD m CD c a) u:l co CD Q v , CD cD < < CD N N N W c ~ to s W m NP OD -P N o co -j cy) C~ N CD 0 O O m 00 m A O -L N CO L v _a p N W E N O CD O -~1 N N p D o Cu .A CD 01 W O Ul N j~ 010 aoNm mm m W O ~1 N W OD N r p p o o 0 0~ o 0 0 En CL o i 0 U) CD cr 9) w (n a n CD o D Co D • 2 N rn U) 1l W N OD O p W (3) Cn OD C n N U) O m Cn CJi -.4 r1i -j N m O- m 3 O O c Cl C) m 00 W O N CD W N N -J to ? 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X b- rn Cl) X69 69 .69 6 _ o c = N N W N N N 01 4 A W V i Co 01 -I O 6 rn V ~ CD a) lD 7 n 1 O N O CD 100 O CJ1 O N N O ~p OOOmCnO 0 0 0 0 0 0 a a ~ N~ N w N V Cn W C) C N OD .A W rn w~ ~t w -p w o p co W W W V ~1 'N ON C" O(.nNJ~~ICO C Ot d O O M co W CD CD O O) 0 O 000 000000 0 0 0 0 0 0 0 0 0 a j a A 4 CD W CT W w W W~~ Co n -n C N + o W W o o ° N Q) A W O A A A W d C7 Cn N O A O On w N W w M CD ~ W O O W -k m O O W M d ~1 O O O O CD O W CD O a rn oo00Ln0M n0 Q 117 i r { {I, 1 JI 1 1 EXHIBIT ~ 7D 0 0 0 0 0 0 0 z 0 0 v 3 X 0 c c c c c c c C c < r r m m m m m<< f *b cm f A at w % N + CDT r I co 00 y o, c C-) c °7 C) C: 77 M C _ c C') = m m m _ 77 2 _ O = 0 2 O 2 0 2 0 2 0 = o 2 0 2 0 C W C C 0 C t~A O C: C cn O c C N O C C CA O C C sn. 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O O Qo C 1 j J O A W CJ N ' O O O O p `G (D W A O co O O N LTI W W W O O A A - O O C7~ Cr O O O a°o a ~v000)W cn cn O O O O 0 3 1 4 m tv O W W jV p N N O O O O O C2 N O A W A CD co CD W OO j O O m CT O O O O O O O O O 0 0 o CD ib O O O N O O O O O O O cn I C O CT CD A W N co W CA O cm m 0) j O O O p O p 0) CA co a2 m m N m N O N N CT co co O O O O O O O O O O O 0 0 o Cn O O O O N CT CT CT D # 3 0 0 I p N N 0~ V N CD A Oo O 03 _ O O O O p O O O O O O CD O A A i 0 0 p Cn CIt O O Cr L), O O O O O O O 0 0 o W W O O O N O O O T I CA A N N ~ ,HIBI 0! N M O O C7> O O V (A co w CD 0 0 N 0 0 0 N Cn CT A CA CA o o N W N A O -Al O O A O O A CD O A O O A oo O A O O n n n n N CD O O O 0 O O O CA _l v '0 C) M O n~ _ -i r to cn --1 cp 0 m = a o cn o , O O v, r m I D r C2 Iv ° cn Q :3 o C o- cr o c c C) U N. 0 i m o a 0 0 0 c Q c c c N O. y y N O O C C 0 c J 1 N N N CT rn Ol O W O W CT CD CD A. W co a 0 0 0 N W N cD CD O co O CT O ~ o O 90 O Ln CD O O O O ~ O j CT O 4 O A J O N 0 M 9L --1 c CD n •c n Cr x _ < _ 2°c 0 o C) (n M N -o o C) m N M CD p CSC no y C 0 0 0 o 29= <r W m M cn r r ;a r cr mr cn Di zr vc or G c co y !*k n' Nrn m N A O co O am O O O O N CT W W N O co -1 -1 i o ~1 OD-1 00 OD 0 0 0 O O l N N O N N A W ~ O a 0 0 0 O N r. 0) N CL CD Cn i+ o0 ~0 o N C 4 O G W CT 0 0 ~ 0 o a O 4h. a CT CD C m ~ r 0 0 o ~ c J (n A N A O N O O O co w O N O O CT A Oa) O O I N N O N O O O A C N O ~ N OD I 0 0 C) CD O N i O O A CD j W Ch Cr w CA N A cD W cc CT c O O •j o o O O O N O CX O O C O j O N N y O r CD -4 CO c Ch y a) O O C C) o o O O O C O 0 N Cv A N= ~ O = O N C -j o O c CT N N O c O W O r m CO cn 0-0 A N O O O OD 00 C O 0 O o 0 o 6 16 0 C O 0 O Go CD N O CL CD (D N A rn ,)6 a1 0 IW N - , CD 0) J N s W N CT I~ D CT N O CJ Rn O J O c.n N Ul O O go c H N O .C O W N Oi O 3 CD CD d N C1 j N O Cn d CO IC CJ CD 1 m J N [T D_ 3 o ° 1 ~ ~ J L N O m N D A D ~ A ~ N O 3 ~ r < 1 C -C ,m 1 :C ;m D rn 3 ;0 1 m 0 1 a c 1 I i I I 110 m J Cy, In A W N \C 00 J O, V. 4-1 W IJ >y mmCM~ CwwCa a w < < „ O O m m > n p n O o m m Y n o m xz~ ZZr~`~ ZZZrXr .`r. zx CCCCr xs.1.rCnrd r cn C/) O O O O a 0 O O O rn rri mmm~~ mwmCO~ n n ~2 tD o0 -t o, Ln A W N -~rr;d tn- ~Yo > Y tn~ m °°rnmzx°~ o xxx~~~xxr C) C) L4 C/) oil P~ 0 C:) C) Cv ~cn w n t0 0o J D\ In A w N r ~aar~>o Cb~ W <<mCo7rn noomm~nom x ~xzZZZPl A C ~Ln ( m aaa~a~ N b~ _ - m CL7 b7 a En E/D L R~ < ' w N W W N N w w w N LA - r- - r IJ W W W O O, c) O W J W ~ 0, o o O W w~ ) 00~ ~ 0 C oo = ~r r Lj tJ N 0 0 00 N O o IQ N O -r ; W 00 00 W Q1 N N 00 J J Q\ ,~o t:J O, O LA LA \0 D. 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LA A J A N O J to J~ ON .p Z. - \~o N O N oN oo - --7 00 00 A r °D °O J 00 ON ° Irl) 0 O, A A o In 0 0 0 0 0 O, 00 tD 0 0 0 c 0 0 0 0 0 0 0 00 00 O O, 0 0 - O o 0 0 0 N tD O N 0 0 0. 0 N to O 1J N Q A A O O O tJ o '00 O O O O o tJ O 00 O 0 0 0 0 LA 0 0 0 0 0 0 v. 0 0 W O, O, O O o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 to N O G n r m Z 00000 000 00000 000, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 "t o C O G C 0 0 0 a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O G O o 0 0 O O G w w 00 G IJ W O O O O O O O C) G 0 0 0 0 0 0 0 0 0 00 Q\ O, O In G N A Y O G O O O O G G O 0 0 0 0 0 0 0 0 0 N A J tr is 00 r 0 0\\\ \ O 0 0 0 0 0 0 0 0 0 00 V \o O, N w In ~0 ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0~ 0o N 1J w ~1 O a N r N In 00 oo r Vto oo,~ N Un O\ nr r U n v. O N A oo W r< Oo ~1 v F n \0 O N - N rn r LA L rn W J N N ~c to N O m w 0 0 0 N B O 00 v v G O 00 ~t W m N ?N n O w0 ON v -j 000 y P- -I 00 N W SJ A v v O, w A O 1" 00 \D m -4 ~1 m N N N N ON o, ~1 to O m O O a r ~ r O ~ ~r or aoil ~r 7 LA Z 0\ J o W w 00 \ O 00 . N W w A% W~ N O O A %D O N O w ^-3 N N I O 1 ~1 to ~1 N LA r -t ccAo %D z -11 .4, tQ Off. ~ ~ O~ O O O~ --w n O A A tJ W W N A N w -j 0 0 0 0 A C7.\ N oo N 00 = A O N x 0 9 W W tJ %D -1 al W N A al t 00 l ►1 A W DD O N A to N En O LA W A A to ON w A r O O N LA tp N N N t0 W A 00 v, to N W C) O ~t r N N LA O, 0 A 00 0 00 0o 00 N O 0 0 0o N 00 -Q - 00 OHO tD tD O O to m d m N Q7 all v O, ON v' 0 0 0 0 ~l 0 0 0 0 n r m z C 0 0 0 0 0 0 o 0 0 NwwC)"L- w t ~O N 1.. 00 U O, J;- L- A 9MUBYr to A ~ N po ~C \D N O N w IJ 00 N N L.w 0 00 1J - n > 1 O Co 7 o c w w N O rD a m P T ~ f J ~ A W IJ T N W D A ~O ~ I N 10 J ~ N 00 N ~O W J N A LA ~O A o~ N V, 00 N J q O Vl N w O N N V A N N J l!i 00 J w Vt Vl J O w J A ~O N O 00 N In v, ON O. ~O O. C) N cc Vi 10 O O 0 A N O~ O Oo N • w v 3 n r ~ O z n O K A r O m m n r m a z a b --1 O Y r x N_ O (7 d n O G 7 x a ~ rrr ~ p r na o~ rA ti.{ a Ln En n ~ n m ri) n TIBU RON Rate Increase 15.88% "RESIDENTIALRATIES Base Recycling Monthly Quarterly :Rate- Fate Rate Rate of -Cans I1-.Pick Up $ 26.73 $ 4.._36 $ 31.09 $ 93.27 1720 Gallon $ 30.71 _ ...........................:4 ._36.... _35.07 $ 105.21 1-32 Gallon $ 59.48... .._x 4.3.6. _.._63_84..: _ 1:91 5.2 2-32 Gallon . . $ . . 87.78 $ . 4.36...... .....................:92.14_._ ....__.._._2.76:.42...... ....3-32 Gallon $ . 116.0:3: $ 4,36 $ . . 120.39 . . . . $ 361.,17 4-32 Gallon 45.14 $ 43:6 . . $ . . 49.50 $ 148.50 1-45 Gallon . mk..c R. is 1! hiiga Base Rate Recycling Rate Monthly Rate - Quarterly Rate # of Cans 91 Pick Up 32:45. . 37,.39 $ $ 4:36 4 :36 $ $ 36,81 41:75 $ 110.43 1`25:25 1-20 Gallon . -1-32 Gallon $ 59:,48 $ 4:36. $ 63:84 $ '191:52 . 2-32 Gallon 87..78 $ 425 $ 92.14 - $ 276.42. 3-32 Gallon 11.6w03 - 120:39 $ 361.17 . 4-32 -Gallon $ $ 144x34 55.09 $ 4:3"6 4.36 $ 1.48,.'7.-;..0 59.45 $ 446,1:0 178.35 5=32 Gallon 1-45 Gallon # of Cans/2 Pick Ups 73.18: 117.00. $ $ 4.36 4 36 . $ 77.54 121.:36 $ $ 232.62 364:98 1-32 'Gallon 2-32 .Gallon . . $ 173 66 $ 435 $ 178.:02 $ 5.34..06 . . _ . 3-.32 Gallon $ 23029 $ 4:36 234..6.5: 703.:9.5 4-a2 -Gallon APARTMENT DATES (Per unit) ` W,,,~~E~~{'~.~ y Base Recy.ciing. Monthly Quarterly Rat#* Rate Rate Rate # of Cans 11 Pick Up $ 27.17 $ 4.36 31.53 n/-a 1-32 Galion - Flat Area - _ . 3.72 $ 4.36 $ 38.08 n/a 1-32 Gallon - Hill Area Base Recycling Monthly Quarterly Rate* Rate Rate Rate # of Cans 11 Pick Up $ 28,81 $ 4.36 $ 33.17' n/a 1-32 Galion - Flat-Area 35.45 $ 4.36 $ 39.81 n/a 1-32 Galion - Hill Area EXHIBIT ~O 15.8811/o T U R Rate Increase 15.8811/o ~:N - - - r' 06iit Base Recycling Monthly Container Rate- . -Rate Rate Rental of Pick lips-- 127,22 $ 16.95 $ 144.17 $ 22.66 1 Pick Up 254.51 $ 33.94 $ 258.45 $ 22.66. .2 Pick Ups $ . . . _ 381 .81 _ _ $ 50.87 $ 4.32.6.. ...22.,66.... ...3_..Pick.....U.ps $ . . . . . .06 509 . . . $ . 7.86 $ 76.92 $ 2.66 Pick Ups $ . G36 . .3 . 1 $ 4':84 $ 2-1.15 $ 2.66 Pick Ups . 763..60 $ 101.:82 $ 865.42 $ .22.66 6 Pick U ps $32.46 per yard extra trash charge niiilzT;>,ra4 F~ ter Base Reaydl.ing `Monthly Gontainer Rate Rate `Rate Rental of Cans/1 Pick Up $ 43,62. $ 4:36 47.98 n/a 1-32 Gallon $ 57.15 $ 43,6 $ 61.51 n/a 1-45 Gallon 7f ."'','i.tsT^a-+ts. Base Recycling Monthly Con.tainer Rate (per :yd/month) Rate Rental # of Pick Ups $ 92.33 16.95 n/a n/a 1 Pick Up Maximum Weight: 8 tons. Overweight charge: $1Uu per ton. 3 xyY. r~11~t ll~'✓~IM. xA } 6000. k ...yf`-'= U Saturday Recycling Monthly -Container Base Rate Rate Rate Rental # of Cans/1 Pick Up $ 190.84 $ 25.4-4 n/a n/a _ 1 Yard Container - Saturday _ 381.77 $ 50.9.2 n/a n/a 2 Yard Container - Saturday $32.46 per yard extra, trash charge tD 00 r- fV o, N r 0 M H 00 O 00 M' 0 0 0 e-1 N M M SID 00 0) m 00 m w r, r-i M 0, N w 1!1 O N r-4 m ri r-1 r-1 Ln r~ Ln LM M r, ~ u v N c a ~ D. N V~ VT V). v> 4 00 N 0, (N a O O O O ~ 00 N N M m N O V' M . O N to 01 O to M, d 7 ' y ry 01 1~ 00 00 v N N t!1 tD r, V1 Ln r` n N '-I a ;a c Ln N to LM N M r-I 0) N V1. V* 'n An N V) VT N N m to v rM N O O O O , ,r O to 1~ O N m N M 1 W 0, m r` 00 ' g , 'M rl a N to 1 t0 0o t/1 N E 00 n al r, r, , . N ri M \ tD tD r` N M r-1 O M4 r'1 a u i 0) M C 1j tn to V} N : 'A to N Lt.. 0) W M N '-1 eti n ry r-1 c y x N 00 00 r, r4 t0 O to M 0 -~r C O 00 M 01 Ln O \ LM tt:. d m E OA ~ R.< 7 u N M^ ^ ~ N ' $ O N O O M 01 tD fpY1 c\A~ ~x;~ti c ~ ,k D SS R. ~Ybl D:Y~ a i 3 0 `0 L4 M O 0 0 06 0 0 n ° . a t W o r- a m -i Q1 N " ti r1 :e r r C OJ O) k p V, V). V► v► V► V4 It Q1 ° rn rn a 0 0 s rn O o r4 Ln rn a n ° r-4 00 ° C C N In N 00 NN M 41 N C M N ~:d 7 R Q Vt' V>• V1 V1, Vf V1 vv N N s~ ~ O t!1 O l D ry O e-1 r` r-1 N 1A r, a O n NO N ri 01 rmn M M ~ N N u w x w V~ V). vi. N V1• V^ V? U O N M O N -T r. a+ N N rNi 14 Ln 00 co N u1 1!1 01 ri N 00 N a~ Vf V1 tD lD n C ~ O 10 > E a a O 01 M M N N V} M M cri N N 1Mn 14 ri V1 V► V1 LO N Qf N M M L C M O M E r a a 01 N 71 M N O C 00 N V1 O r•1 c. n ` u O N ^ ^ 0 00 C) E t\n \ o ~ m :u O N ^ N O N m 00 O N n N c D` O ~ ~x ( r) rr r-1 N 0 H N M -q Ln - r, N M a r. N M v 14 N M v C V O i0 m Y 2 r0 -p m O C d a> ' C C m 1a ? N w (D lu N Ln A OD C p m m v m IA C W V N o c y C o m C o N o C tio u l7 N m , _ o N 1n a u « ~ o F- r EXHIBIT / Lear ('ouncil Members. During our last meeting, the question was raised as to why we projected Salvage Income to be the same in 201.1 as we actually received in 2010. It was rioted that scrap prices were rising, and that our projection should therefore be higher to reflect current values. 'We pointed out that MV RS chid not own or operate a processing facility, but rather hauls to Novato and is currently paid S2011ton under its contract with Waste Management. t_incicr the terms of our contract with W ,higher- rater may be paid this v ar to reflect higher scrap values. WM's commodity sales manager, Michael Peltz. has provided the following explanation as to hoar- raves would be adjusted: "(fur c°or tr"ac;tpr°at rcles : ill Valley Ia'(.f7.l.se tir-ith flxeclpricing qf'{S?0,-ton f r the :Sinai. stream reci-clables,1ar" thefir:st vear° of the ,4~aree Bent, which is coming to an end Jude 30. 'hen, starting July 1, 2011, we ii-ill he pavirrOr Voll a per°ce stage of the composite market Value of'tlae haled commodities pr"oc°c;',stecl fi"cxJal the lcx}scJ sin k? ,stream. The percentages are stated in the contract and tend to rise as the composite market value riseq (from 41.) at S1301ton to 181.) 0 at $220. ton). phis price calculation it-ill he done oll a yuar"terIv, basis and the p117-chase price will he lased on the commodity inarket prices for the previous quarterIvPerioc1. ,S'o, . f }r° example, ~ fdurina the g1tarter_ om April throlia .lone, 2011, our actual commodity sales prices averaged K"IO/ton, then Mill Vallev would be paid 14%, ofthat, or $29,40/ion f )r° the pcriod Jzdj,.l-&,pt 30, 20.11. The purchase price "ceiling" is 4540.00-,ton, as we also provided a `;floor "price of'-O-. (In other- wor ds, Mill V(dlell° Vvill not be charged unless- the ;State; C.'RV i,s .substantially, reduced and both parties agreesJ MVRS never tries to guess in what direction scrap prices slight go during any rate year, as we are no more able to predict these prices than we are able to predict the regularly fluctuating prices of any other- cornnlodity. That is why in our annual rate application we feel the only reasonable "forecast- we can make is to repeat last year's actual revenues. It must be remembered that this revenue is measured against ope rating costs eveq year. ice-versa. an When revenue is high one gear, rates are held lower the next year and vi example, Salvage Income was so high in 2007/08, that it helped to completely offset rises in operating costs, resulting in no rate increase in ?008/00. This is how it works every year under- the current raternaking methodology. So if Salvage Income rises this year, which it seems it will (at this moment in time, at least), our c;ustorners will feel the positive affects of that rise next year when the increased income will be applied against operating costs. _y _TUBIT ~ Yixas~P~2r~ y~y~y ,J<<r I 1 EXHIBIT A RATES AND TONNAGE REQUIREMENTS 1. The disposal rates from the Effective Date through June 30, 2011 shall be: $42.00 for Acceptable Waste for disposal $11.65 for Green Waste acceptable composting or other beneficial reuse $19.00 for Residential Food Waste mixed with Green Waste acceptable for composting 2. The disposal rates beginning July 1, 2011, adjusted thereafter by CPI as set forth in paragraph 8, are: $46.20 for Acceptable Waste for disposal $26.00 for Green Waste acceptable composting or other beneficial reuse $38.00 for Residential Food Waste mixed with Green Waste acceptable for composting 3. With respect to other Special waste not listed above, and discarded tires, land clearing debris, and other wastes which are not Special Wastes but require special handling, the disposal charges shall be the rate posted for the public. If there is no public posted rate, acceptance shall be conditioned upon the parties agreement upon the rate of disposal. However, the inclusion of a limited amount of such material (constituting on average no more than 1 percent by weight) in Acceptable Waste collected by Mill Valley in the normal course of its business will be acceptable. 4. Redwood shall accept deposits of inert materials such as clean, source separated, uncontaminated dirt, concrete or asphalt without charge up to 6500 tons per year. Deliveries above this amount will be charged the gate rate or other negotiated rate. 5. The disposal rate for Acceptable Waste collected by Mill Valley in connection with quarterly "clean-ups" shall be the disposal rate for Acceptable Waste as described above. DOCSOAK-9717400.1 •JLSMITH 131HIBIT DOCSOAX-9717400. I -ASMITH Royal Petroleum Company Risk Management Program EXHIBIT A ROYAL PETROLEUM COMPANY RISK MANAGEMENT PROGRAM ORDER CONFIRMATION FORM The purpose of this Order ConEmnation Form is to confirm the terms and conditions of the R1\/1P transaction (the "Transaction") entered into between Seller and Purchaser (each a "Parry" and together "the Parties") on the transaction date speci5ed below. Tlus Order Confirmation Form constitutes an amendment to the Risk Management Program Agreement between the Parties, effective as of April 13, 3011and is hereby thereto incorporated by reference. Tlvs Order Confirmation Form, together with the terms provided for in the Risk Management Program Agreement and Authorizing Resolution executed by and/or between the Parties, evidences together a complete and binding Agreement between the Parties as to the terms of the Transaction to which this Order Confirmation Form relates. TRANSACTION DATE: April 13, 3011 SELLER ROYAL PETROLEUM COMPANY 365 Todd Road Santa Rosa, CA 95407 Phone: 707-540-0054 Fax: 707-763-1500 PURCHASER Company: MILL VALLEY REFUSE Address: 112 Front St San Rafael, CA 94901 Phone: 415-457-9760 Location Transaction Product ULSD Delivery pick up, Volume (gallons Price, all Payment Terms Type On (clear) or Off Period delivery, or per Delivery inclusive Road red Cardlock Period Fixed Clear June 2011 Bulk _8,000_ gallons _4.667_ Net 10 l ~o~-t~►ard Delivery per gallon Fixed Clear. July 2011 Bull: , ,6,400_g:illons _4.685._._. Net 10 Fnrwircl Delivery per gallon Fixed Clear August Bull;: 7,800 gallons _4.658_ Net 10 f "ni7wa.rd 301 l Delivery per gallon Fixed Clear September Bull: 6,200 gallons _4,675_ Net 10 l,atvoa d 2011 Delivery per gallon Page 4 of 6 ~ -,LJIBIT /b Royal Petroleum Company Risk Management Program ROYAL PETROLEUM COMPANY MILL VALLEY REFUSE (Se)ler} (Purchaser) Bit: By: Printed: `C:~ ~.1r1i~tlr~% rinted• 1 Title: Lo (2) Title: Page 5 of 6 EXIBIT /Z, Royal Petroleum Company Risk Management Program EXHIBIT B ROYAL PETROLEUM COMPANY PRICE RISK MANAGEMENT PROGRAM Authorizing Resolution Dated APRIL 13, ?011_ BE IT RESOLVED, that the Price Risk Management Program Agreement executed between the Royal Petroleum Company and -MILL VALLEY REFUSE on April 13, 2011, for the purchase of petroleum products, a copy of which is attached hereto and is for the avoidance of any doubt, incorporated by reference, and made a part hereof, is hereby authorized and approved. BE IT RESOLVED, that the following person is authorized and empowered in tfie dame of the Company and on the Company's behalf to execute and deliver all sucli agreements and other documents and to perform all acts and to take adt steps as may be necessary and prober to carry out die intent of the preceding; resolution: Authorized Phone Email Address Signature Representative Name & Title 4 BI Pr Ti Page 6 of 6 ; 1'XHIBI 16 -MILL VALLEY REFUSE (PURCHASER) ROYAL PETROLEUM COMPANY RISK MANAGEMENT PROGRAM Tlvs Agreement is made this _13"' _ day of April 2011 by and between the Royal Petroleum Company ("Seller") located at 365 Todd Road, Santa Rosa, CA 95407 and Iva Valley Refuse ("Purchaser") located at 112 Front St, San Rafael, CA. WHEREAS, Purchaser may be interested in purchasing a portion of its requirement for product using the Order Confirmation Fonn through the Risk Management Program as provided in this Agreement; NOW THERE-FORE, the parties agree as follows: I. DEFINITIONS A. "RIVIP" shall mean Risk Management Program. B. "Delivery Period" shall mean the period indicated on the Order Cofifirmation Form for the purchase of a particular volume of product at the indicated price. C. "Order Confirmation Form" shall mean a completed order in the form attached hereto as Exhibit "A", submitted at the time an RlVIP related purchase is made. II. RELIANCE Each Party acknowledges and agrees that: (a) it is acting for its own account; (b) it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own business judgment and upon advice from such advisors as it has deemed necessary; (c) it is not relying on any communication (written or oral) of the other Party as investment advice or as a recorrunendation to enter into that Transaction; it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction; and (d) it has not received from the other Party any assurance or guarantee as to the expected results of that Transaction. III. ORDER QUANTITIES & DELIVERY A. Purchaser shall order product under this Agreement in increments of-whole gallons. B. Purchaser shat! receive R.IVIP related volumes in approximately equal amounts prorated over the Delivery Period, unless otherwise agreed. C. Seller shall not be obligated to deliver the product to Purchaser, unless Purch'aser is in full conlphance with its payment and credit obligations. D. Title and risk of loss shall pass from Seller to Purchaser as the product passes the outlet at the Seller's designated delivery point. r" Page 1 of 6 FXrTMTT Royal Petroleum Company Risk Management Program IV. PRICE The price for product pursuant to this Agreement shall be the amount indicated on the Order Confirmation Form. All applicable taxes, tariffs, fees and charges, regardless of their nature and in effect at the time of delivery, will be paid by the Purchaser. V. EXCESS / DEFICIENT VOLUMES The Parties acknowledge that in order for Seller to be able to offer RIVIP transactions, Seller has entered, or will enter, into separate commitments and/or transactions with its suppliers and/or financial counterparties. Accordingly, the Purchaser agrees to purchase the quantity during each month as specified in the Order Con6miation Fan-n. In the event that Purchaser's actual monthly volume is different from the specified monthly volume per the Order Confirmation Fonn, the following adjustments will be made: • In the event that the actual monthly volume is in excess of the specified quantity during any Delivery Period, the excess quantity will be invoiced in accordance with the Seller's daily rack posting (or appropriate bulk price as applicable) in effect on date of delivery or as otherwise mutually agreed. In the event that the actual monthly volume is less than the specified quantity during any Delivery Period, Purchaser agrees to reimburse Seller for the unused gallons as indicated on the Order Confirmation Fonn. Seller shall invoice: Purchaser accordingly. VI. PAYMENT/CREDIT Payment terms on product deliveries under RMP transactions, shall be in accordance with thus Agreement (unless otherwise agreed) and are subject to Seller's credit approval. VII. FORCE MAJEURE Failure (in whole or in part) or delay on the part of either Party* in the performance of any of the obligations imlzosed upon such Party under this Agreement shall be excused and such Party shall not be.linble for damages or otherwise, when such failure or delny is the direct or indirect result of anv cause whatsoever beyond the reasonable control of the Party►, including but not limited to, acts of God, supply unavailability, fire, malicious misclvef, labor disturbances or compliance with law. Tlus provision is not intended and does not affect Purchaser's obligation to remit timely payment of any and all amounts due. Page 2 of 6 16) Royal Petroleum Company Risk Management Program VIII. WARRANTIES AND DISCLAIMERS SELLER WARRANTS THAT ALL PRODUCTS SOLD TO PURCHASER UNDER THIS AGREEMENT SHALL MEET SELLER'S THEN CURRENT SPECIFICATIONS FOR SUCH PRODUCTS. SELLER MAKES NO OTHER WARRANTIES OF ANY KIND AS TO THE PRODUCTS SOLD TO PURCHASER UNDER THIS AGREEMENT, EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LU IITED TO, THE RV1PLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Ix. MISCELLANEOUS A. Purchaser acknowledges that he has had a reasonable opportunity to read and has read and understood the terms and conditions of this Agreement. B. This Agreement may not be amended or supplemented except by a written document signed by authorized representatives of each Party. C. The right of Seller to require strict performance by Purchaser of any or all obligations unposed upon Purchaser by this Agreement shall not,in any way be affected by any pre-% ious waiver, forbearance or course a f dealing. X. APPROVED BUYER Purchaser shall identify the individual duly authorized to agree to the terms of any n.,IP transaction and execute an authorizing Resolution as shown in Exltibit B. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. ROYAL, PETROLEUM COMPANY -MILL VALLEY REFUSE. (S~Iler) (Purchaser) By: Printed: Ic rr` Title: Co Title: T\ -~hzejl r Page 3 of G XBIT l June 15, 2011 Ms. Jennifer Dami Mill Valley Refuse Service, Inc. P.O. Box 3557 San Rafael, CA 04912 RE. Workers Compensation Insurance Renewal 10/1/11 to 10/1/12 Dear Jennifer, P I am writing this letter to you to explain the reasons for the premium increase for your renewal captioned above. The Workers Compensation Insurance Rating Bureau of California (WCIRB) is recommending a rate increase between 30% to 40%. The WCIRB postponed the recommended increase until sometime after summer. Usually the increases get brought down a little due to political reasons. Icy professional opinion is that this increase will be 15/ to 20%. Your experience modification will be going up 10ro to 15% due to claims activity and previously reported payrolls. I expect your premium increase to be 25/a to 35%. Should you have any questions please let me know. Yours truly, lC Lag`. Jeffrey R. Rosentreter, CIC Executive Vice President }7-777I/ I Z3 Consulting Group, Inc. Resources Respect Responsibility August 27, 2009 Mr. Eric Erickson Director of Finance and Human Services Mill Valley City Hall 26 Corte Madera Avenue Mill Valley, CA 94941 R3 Consulting Croup, Inc 4811 Chippendale Drive, Suite 902 Sacramento, CA 95841 Tel. 916-576-0306 Fax: 916-331-9600 www.r3cqi.com Subject: Final Letter Report - Review of Mill Valley Refuse Service's Request for Rate Increase P Dear Mr. Erickson: R3 Consulting Group (R3) was engaged by the City of Mill Valley (City) on behalf of the City, Corte Madera, Tiburon and parts of unincorporated Marin County (Contracting Jurisdictions) to assist with a review of a rate increase requested by Mill Valley Refuse Service (MVRS). The object of the engagement was to review MVRS's rate adjustment request and supporting documentation and present our findings with respect to the reasonableness of that request. This Final Letter Report presents our findings. Requested Rate Adjustment Requested CPI Rate Adjustment MVRS requested a 3.1 % rate increase based on the annual change between 2007 and 2008 in the Bureau of Labor Statistics Consumer Price Index (CPI) - All Urban Consumers for the San Francisco - Oakland - San Jose area. Supporting Detailed Rate Application In support of its requested rate adjustment MVRS prepared a detailed rate application (Application) that projected a $1,271,223 revenue shortfall for Calendar Year (CY) 2009, equivalent to a 10.5% revenue shortfall (required rate increase). The projected revenue shortfalls for Mill Valley, Corte Madera, Tiburon and the County, were 8.2%, 9.6%, 18.6% and 15.0% respectively, well above the requested 3.1% CPI adjustment (Table 1 attached). Summary Findings Based on our review of MVRS's Application we recommend adjustments that result in a decrease in projected revenues of $3,000 and a decrease in projected expenses of $713,169. This results in a net decrease of $710,169 to MVRS's projected $1,271,223 revenue shortfall, which results in a projected revenue deficiency is $561,055, or 4.6%. The recommended adjustments, along with the associated financial impacts on each of the jurisdictions, are provided in Table 2 (attached). EXHIBIT Mr. Eric Erickson August 27, 2009 Page 2 of 9 As shown in Table 2: ■ There is a net revenue surplus for Corte Madera of 3.7% (i.e., no rate adjustment is required); and Mill Valley (4.0%), Tiburon (13.1%) and the unincorporated County (11.4%) still have calculated revenue deficiencies (rate adjustments) higher than the 3.1% requested CPI adjustment. Limitations Our review was conducted at a high level based on the information presented in MVRS's Application and was intended to provide an analysis of the general reasonableness of MVRS's CPI rate adjustment request. It was not intended to provide specific recommended rate adjustment amounts although calculated rate adjustments (revenue deficiencies) arle provided. As discussed below, with the exception of the Town of Corte Madera, the various franchise agreements lack specific guidelines for determining what constitutes fair and reasonable compensation for MVRS. Given the differences in the terms and conditions of the franchise agreements we have relied on Corte Madera's franchise agreement to determine the bases for allowed and disallowed expenses. With that said, reasonable differing guidelines from those used in our analysis, informal agreements between MVRS and the Franchise Jurisdictions and/or past practice that conflict with the guidelines used for our analysis may materially impact our findings. Background MVRS provides solid waste management services to the following nine (9) jurisdictions (Franchise Jurisdictions): ■ City of Belvedere ■ City of Mill Valley ■ Town of Corte Madera ■ Town of Tiburon ■ Marin County ■ Almonte Sanitary District ■ Alto Sanitary District ■ Homestead Valley Sanitary District ■ Strawberry Recreational District The terms and conditions of the franchise agreements with the Franchise Jurisdictions vary from each other in many areas, including: ■ The methodology for rate adjustments; and ■ The guidelines for determining an appropriate rate adjustment. On April 1, 2009 MVRS requested a rate increase of 3.1 % for each of its franchises equal to the annual change in the Consumer Price Index (CPI) from 2007 to 2008. After receiving MVRS's requested rate adjustment R3 was engaged by the City of Mill Valley on behalf of the Contracting Jurisdictions to assist with a review of the reasonableness of the requested rate adjustment. In response MVRS prepared its Application in support of its requested CPI rate adjustment. The OBIT r Mr. Eric Erickson August 27, 2009 Page 3of9 structure of that Application was based on the requirements specified in the Town of Corte Madera's franchise agreement and included: ■ Actual reported revenues and expenses for CY 2008; ■ Projected revenues and expenses for CY 2009 allocated among the Franchise Jurisdictions; and ■ The calculated rate adjustment necessary to achieve the revenue requirement for each of the Franchise Jurisdictions based on the CY 2009 projected revenues and expenses. Rate Adjustment Process The franchise agreements for the Contracting Jurisdictions (and Franchise Jurisdictions) differ on what is required of MVRS with respect to annual rate adjustment requests. Section 16D of Corte Madera's franchise agreement states that: "In the event that Collector desires to adjust the Base Rates it must make application to Town (a "Base Rate Change Application') in accordance with the provisions of Section 16'. It does not provide for a rate adjustment based on a change in a consumer or producer price index only based on a detailed rate review. The Mill Valley and Tiburon franchise agreements state that: "The Collector may submit an application on an annual basis but not less than once every three (3 years)... In interim years between formal rate reviews, annual rate adjustments may be permitted based on changes in whatever consumer or producer price indices the City and the Collector agree is appropriate".' The County of Marin's franchise agreement for South Marin Franchise Areas 2, 3, 4, 5, 6 and 7 states that: "The rates for solid waste collection contained in Exhibit "B" are established to permit MVRS to realize a fair and reasonable profit from its operations within the South Marin Franchise Areas 2, 3, 4, 5, 6 and 7. No increase in the rates contained in Exhibit "B" may be made without the prior approval of the Board of Supervisors after a duly noticed public hearing, nor shall any application for a rate increase be accepted by the Board of Supervisors of County more frequently than once per calendar year." MVRS's 3.1% rate adjustment request is consistent with the general CPI rate adjustment specified in the Mill Valley and Tiburon franchise agreements with its supporting Application generally consistent with the Base Rate Change Application specified in the Corte Madera franchise agreement. ' As discussed, MRS used the SF-Oakland-San Jose All Urban Consumers Index as the basis for calculating its requested CPI rate adjustment. While we have no documentation that the Franchise Jurisdictions have formally agreed to or authorized the use of the All Urban Consumers Index, the use of that index for rate adjustment purposes is not uncommon and we believe represents a reasonable index to use for this purpose. 'XHIBIT ,q Mr. Eric Erickson August 27, 2009 Page 4 of 9 Methodology As part of our review: • We verified the accuracy of the calculation supporting MVRS's requested 3.1 % CPI rate adjustment; • We reviewed the Application for mathematical accuracy and logical consistency; • We reviewed the allocation of CY 2008 revenues and expenses as reported on the Trial Balance among Collection, Street Sweeping (allocated to those jurisdictions that are provided that service) and Portable Toilets (non-franchised service) for general reasonableness; • We tied MVRS's CY 2008 trial balance to the base revenues and expenses that it used to project CY 2009 results; • We reviewed the escalation factors applied by MVRS to CY 2008 revenues and expenses to project CY 2009 results for reasonableness; • We reviewed the factors used by MVRS to allocate revenues and expenses among the Franchise Jurisdictions; • We reviewed the disallowed expenses identified by MVRS for general reasonableness and consistency with the disallowed expenses identified in the Corte Madera franchise agreement ; and • We reviewed the handling of pass-through expenses and profit for consistency with the terms and conditions of Corte Madera's franchise agreement. Adjustments As discussed above, based on our review of MVRS's Application we recommend adjustments that result in a decrease in projected revenues of $3,000 and a decrease in projected expenses of $713,169, for a total decrease of $710,169 to MVRS's projected $1,271,223 revenue shortfall. The recommended adjustments are discussed below. REVENUES 1) Rental Income We eliminated $3,000 in Rental Income related to the rental of a portion of MVRS's yard that had been, but is no longer, rented to a third party. Adjustment: Decrease Revenues by $3,000. EXPENSES 2) Clean-Up Program The allocation of Clean-Up Program expenses to the Franchise Jurisdictions did not include $19,001 in associated expenses that are part of that allocation. We adjusted the associated allocation to include these additional expenses. EXHIBIT Mr. Eric Erickson August 27, 2009 Page 5 of 9 Adjustment: Increase allocated Clean Up-Costs by $19,001. 3) Debris Box MVRS CY 2008 Debris Box Revenue included revenue associated with its non-franchised debris box operations. Its CY 2009 Debris Box Revenue was decreased by 16% to reflect the CY 2008 franchised debris box revenue only, without further adjustment. While a corresponding adjustment was made to payroll to disallow that portion associated with non-franchised debris box services, no additional corresponding expense adjustments were made. At a minimum we would expect to see the disallowance of all corresponding expenses (e.g., disposal, vehicle operating and maintenance expenses, including fuel). We reduced Debris Box disposal tonnage by 16%, consistent with the reduction in debris box revenues. No other associated expense reductions were made. Adjustment: Decrease Dump expense by $34,703. 4) Insurance MVRS's 2009 Insurance expense projection did not account for the portion of that expense allocated to Portable Toilets, which is a non-allowable expense. We adjusted the 2009 projection to account for the portions allocated to Portable Toilets. Adjustment: Decrease Insurance expense by $48,361. 5) Interest MVRS disallowed its entire Interest expense of $101,280 related to converting vehicles to comply with air quality requirements. Only the Corte Madera franchise agreement specifies that Interest expense is to be disallowed. We therefore, applied the appropriate Interest expense to each of the other Franchise Jurisdictions. Adjustment: Increase Interest expense by $78,775 ($101,280 less that attributed to Corte Madera). 6) Lease The Lease expense relates to company-leased vehicles. MVRS revised its estimate of the portion of Lease expense that was non-allowable. Adjustment: Increase Lease expense by $9,430 7) Fuel (Truck - Gasoline and Oil) MVRS projected a 3.1% increase in Fuel expense for 2009 versus 2008, consistent with the change in the CPI. Fuel prices have, however, decreased dramatically for the first half of 2009 compared to the same period in 2008 ($2.35/gallon versus $4.14/gallon)2. We projected the 2009 Fuel expense by adjusting the 2008 Fuel expense in proportion to the average 2009 fuel price through June 2009 ($2.35/gallon) as compared to the average price for 2008 ($3.93). 2 Fuel prices based on Energy Information Administration; California No 2 Diesel Ultra Low Sulfur (0-15 ppm) retail sales by all sellers. "7KHIBIT Mr. Eric Erickson August 27, 2009 Page 6 of 9 Adjustment: Decrease Fuel expense by $325,221. 8) Officer Payroll Tax We adjusted the projected Payroll Tax to reflect the portion attributed to the non-allowable Officer Salaries. Adjustment: Decrease Payroll Tax expense by $37,975. ADJUSTMENTS TO REVENUE REQUIREMENT CALCULATION The following adjustments were made to the Revenue Requirement Calculation presented in the Application: 9) Free Services Free Services are those services that are not directly charged to the jurisdiction. The City of Corte Madera's franchise agreement specifically identifies the expense associated with Free Services as disallowed. MVRS's position is that Corte Madera is the only Franchise Jurisdiction that has an agreement that treats Free Services as disallowed expenses. MVRS's Application incorrectly double counted the expense associated with Free Services provided to Mill Valley, Belvedere, Corte Madera and Tiburon. We therefore reduced the Free Service expense by $199,326 to eliminate this double counting. We then disallowed the $79,672 Free Service expense for Corte Madera as specified in the franchise agreement. Adjustment: Decrease Free Service expense by $278,998. 10) Profit Level Adjustment - Corte Madera MVRS based its profit on a 90% operating ratio, which is equivalent to an 11.1 % profit. Mill Valley's franchise agreement does not state a specific measurement of profit, but says profit shall be " ° ..based on actual costs incurred and include a margin that will assure the Collector of a fair and equitable return, the amount of which return shall be within the parameters established by the town." Tiburon's language is identical to Mill Valley's. Similarly, the County Areas franchise agreement language resolves "...to permit MVRS to realize a fair and reasonable profit from its operations within the South Marin Franchise Area..." The only specific measurement of profit is provided in the Corte Madera franchise agreement, which allows for "...rates equal to Collector's allowable costs (as hereinafter defined) for the relevant period, plus ten percent (10%) of those allowable costs, plus Pass-through Costs for the relevant period (collectively "the operating margin method') shall be deemed reasonable and to provide Collectora fair return. "It also establishes any Disposal Facility charges (Dump expense) in excess of $37.75 per ton (adjusted for the CPI) as a pass-through expense not subject to profit, but otherwise treats Disposal expense as an Allowed Expense. For purposes of our analysis we have treated Dump expense as an Allowed Expense subject to profit for all of the Franchise Jurisdictions and reduced the profit for Corte Madera to 10%. Adjustment - Reduce Profit for Corte Madera by $25,219. 11) Profit Adjustment on Net Expense Adjustment In addition to the above Profit Level Adjustment for Corte Madera, an additional adjustment was made to Profit to reflect the impact of the various expense adjustments described above. ~~.X~-III ~'I Mr. Eric Erickson August 27, 2009 Page 7 of 9 Adjustment - Reduce Profit by $69,900. Other Findings Pass-Through Dump Expense - Pass-through charges include "Charges assessed by the Disposal Facility and paid by Collector in excess of $37.75 per ton, which per-ton figure shall be adjusted, at the time of any calculation of Pass-Through Costs, in accordance with the CPI." In determining what, if any, dump expenses might be considered as pass-through expenses, MVRS averaged the tip fees for all of the facilities it uses. That calculation resulted in a per-ton figure less than the allowed amount and therefore no portion of those expenses were considered as pass-through. If, however, the calculation is based on the specific per-ton figures (rather than the average) in the case of Garbage, Debris and Clean Yard Waste delivered to Marin Resource Recovery Facility, all of those tip fees exceeded the established limits and therefore portions would be treated as pass-through expenses resulting in a reduction in MVRS's profit of approximately $11,000. We did not make any associated adjustment to the Application. Officer Pension and Retirement Expenses - The Corte Madera franchise agreement sets limits on Officer Compensation. It also disallows 'Amounts paid to or in behalf of Collector's officer's and/or shareholders' accounts in the union pension and retirement plans"and sets as a pass-through expense 'Annual amounts paid for or in behalf of Collector's officers, directors, shareholders and/or owners as and for their retirement plans above and beyond the amounts paid as Collector's contribution to said persons' accounts in the union pension and retirement plan" o While the Corte Madera franchise agreement places a limit on officer compensation and disallows any amounts paid to officers in the union pension or retirement plan, it places no limits on other officer retirement contributions. MVRS's Insurance expense includes approximately $118,000 for Director's life insurance which includes both term and whole life policies, with the life insurance established to pay off owners' equity at time of death. The Franchise Jurisdictions may wish to review the reasonableness of this expense in consideration of overall Director compensation/retirement funding. o MVRS disallowed $53,976 in Union-Pension expense. When we asked about this adjustment MVRS could not explain why it had been disallowed and thought it should be added back in. We have not made any corresponding adjustment pending a determination of what if any Union-Pension expense is related to officer and/or shareholder accounts in the union pension and retirement plans, which is a disallowed expense. ■ Franchise Fees - It is not entirely clear from the franchise agreements: o What the franchise fee calculation is based on (e.g., Gross revenues that are to serve as the basis for the franchise fee calculation are not specifically defined in many of the franchise agreements), and o Whether MVRS correctly calculated and paid the required CY 2008 franchise fees (We were not able to verify the reported franchise fee payments based on reported revenues and franchise fee percentages). ■ Property Damage Claims - Payments to repair damage to property of third parties or Town for which Collector is liable are considered non-allowable expenses under the Corte Madera franchise agreement. MVRS's insurance deductible is $2,500; therefore it pays directly for damages of less than $2,500. No adjustment was made to MVRS's expenses to account for Mr. Eric Erickson August 27, 2009 Page 8 of 9 any such payments. The franchise agreements do not set any insurance deductible limits. ■ Lobbying Expenses - The Application includes approximately $3,500 in membership dues associated with California Refuse Removal Council (CRRC) lobbying costs, which could potentially be considered a non-allowable cost. We did not, however, make any associated adjustment to the Application. ■ Audited Financial Statements - Audited financial statements were not provided as required by Section 16.E.2 of the Agreement. MVRS reported that the 2008 audit was not complete at the time it submitted its Application and audited CY 2008 financial statements were not available. The 2008 trial balance included with the submission was used by MVRS in place of audited 2008 financial statements. Recommendations ■ Develop a set of standard guidelines for future rate adjustments for trhe Franchise Jurisdictions (e.g., clarify/define target profit level, pass-through expenses, non-allowable expenses and basis for franchise fee payments (e.g., define gross revenues)); ■ Establish a uniform rate adjustment process for the Franchise Jurisdictions (e.g., a detailed rate review followed by 2 years of indexed adjustment unless both parties agree to continue indexed adjustment until one or the other requests detailed rate review); Consider the use of a Refuse Rate Index (RRI) in place of the CPI rate adjustment process. The RRI is a methodology designed specifically for adjusting solid waste collection rates. The RRI is based on various regional and/or national indices that are directly applicable to the direct costs of the collector (e.g., labor, fuel, vehicle repair and maintenance, vehicle replacement a,nd other). Disposal cost is typically adjusted by the actual change, if any, in the applicable landfill or transfer station tip fee. The RRI methodology can generally be described as follows: o The contractor's total actual costs are assigned to each of the appropriate index cost categories; o Each category is assigned a percentage ("weighting factor") equal to the category costs divided by the total costs; o The annual change in the applicable cost category index (e.g., #2 Diesel Fuel Index to adjust fuel costs) is calculated; o The annual change in each index is then multiplied by the "weighting factor" for the appropriate category, and the sum of the results is the rate adjustment factor (the RRI) for that period; and o The current rates are then multiplied by the calculated RRI to establish the new rates. ■ Formalize any informal (non-documented) amendments to franchise agreements; ■ Consider conducting a franchise fee audit to determine the basis for and accuracy of prior franchise fee payments and franchise fee payments going forward; and ■ Have MVRS review and document the basis for all allocations to Street Sweeping and Portable Toilets as part of any future detailed rate applications. '-pi ian Mr. Eric Erickson August 27, 2009 Page 9 of 9 We appreciate the opportunity to be of service to the Contracting Jurisdictions. Please feel free to contact me or Ric Hutchinson at (916) 576-0306, or e-mail at or wschoen(a7r3cgi.com or rutchinson a().r3cgi.com, if you have any questions or comments regarding this submittal. Sincerely, R3 CONSULTING GROUP g a Sq;Ylr tea' °'b12 a> ,-~t William Schoen Principal Cc Ric Hutchinson; R3 Attachments: Table 1 Rate Application Table 2 Proposed Adjustments R:\Projects\109017 Mill Valley Rate Review\Reports\Final Report 082709\Mill Valley Final Letter Report 082709.doc EXHIBI't Ov 0) ~ Q 00 00 ~ ~ O 0 0 M ~ O ~ (A h 00 m CA W 0 EA W N v I-- r- O z 00 U O rn v N J a 3~ ~ M n w ~ C W m C'7 0) N rn H 6R CO) ° rv a v C.0 W `-,C"? 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Marro 34.00 Mill Valley 36.61 Belvedere 36.93 EXHIBIT / ) RESOLUTION NO. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON FINDING NO OBJECTION TO THE RATE INCREASE REQUEST FOR THE DELIVERY OF SOLID WASTE COLLECTION AND RECYCLING SERVICES BY MILL VALLEY REFUSE SERVICE, INC. WHEREAS, the Town of Tiburon ("Town") and Mill Valley Refuse Service, Inc. ("MVRS") entered into a Solid Waste Management Agreement dated December 6, 1995 (the "Agreement"); WHEREAS, under Section 10 of the Agreement MVRS is granted the right to annually apply for a Base Rate Change, which said application MVRS has submitted to the Town, seeking increases in said Base Rates commencing July 1, 2011; WHEREAS, under Section 10 of the Agreement, MVRS is entitled for rates that will endeavor to provide a fair and equitable return to MVRS; WHEREAS, pursuant to this year's Base Rate Change Application, MVRS is requesting that rates be increased to the amounts set forth in Exhibit A, attached hereto and incorporated by this reference. MVRS has represented to the Town that the rates set forth in Exhibit A are necessary in order to assure that commencing July 1, 2011, it will earn a fair and equitable return; WHEREAS, notice of a public hearing to be held on June 15, 2011 at 7:30 P.M. in the Town Hall Council Chambers, for consideration of this year's Base Rate Change Application was published in the Ark on May 18, 2011 and May 25, 2011, with the first publication date in each newspaper being at least 10 days in advance of June 15, 2011 and with at least five (5) intervening days between first and second dates of publication in each newspaper; WHEREAS, a public hearing was held on June 15, 2010 at 7:30 P.M. or thereabouts in the Town Hall Council Chambers for consideration of this year's Base Rate Change Application at which time all interested persons were invited to participate in the public hearing; WHEREAS, the Town has examined the financial information supplied by MVRS in support of its rate increase described herein and has determined that the increase in rates requested by MVRS will provide a fair return to MVRS, and, as such, the Town does not object to MVRS increasing the Base Rates as set forth in Exhibit A; and WHEREAS, the Town Council finds that adoption of this resolution is exempt from the requirements of the California Environmental Quality Act pursuant to (i) Section 21808(b)(8) of the California Public Resources Code, because it is an activity to "`-HIBIT establish rates for the purpose of meeting operating expenses, purchasing or leasing supplies, equipment, or materials, meeting financial reserve needs and requirements and obtaining funds for capital projects necessary to maintain service within existing service areas; and (ii) Sections 15301 and 15061(b)(3) of the CEQA Guidelines because the new Chapter 26 will not change existing solid waste practices; and WHEREAS, it is in the public interest for the Town not to object to said Base Rate increase: NOW, therefore, the Town Council of the Town of Tiburon does resolve as follows: 1. The Town Council does not object to the increase in Base Rates set forth in Exhibit A. 2. The Base Rates set forth in Exhibit A shall be effective as of July 1, 2011. 3. The recitals set forth above are hereby incorporated into this Resolution as though set forth in full. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on June 15, 2011 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JEFFREY SLAVITZ, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK 2 - T HBrm I TIB! 1,RO1►,1 Fiaie lncreasE fiS.P,~°lo E Ar At, Base Rate Recycling Rate Monthly Rate Quarterly Rate # of Cans /1 Pick Up $ 26.73 $ 4.36 . $ 31.09 $ 93.27 1-20 Gallon $ 30.71 $ 4.36 . . $ 35.07 $ 105.21 1-32 Gallon _ $ 59.48 . . 4.36 $ 63,84 $ 191.52 2-32 Gallon _ . $ . . 87.78 $ __...4..36.... 92 14 $ ............_276.-.42 3-32 Gallon $ 116.03: $ 4.36...._ 1..24 39 361.1.7..._ 4 -32 Gallon _ $ _ 45..1.4. , $ 4.36 $ 49.50 $ 1448.50 1-45 Gallon Base Rate Recycling Rate Monthly Rate Quarterly Rate # of Cans 11 Pick Up $ 32.45 4,36 $ 36.81 $ 110.43 1-20 Gallon _ $ 37.39. 4:.36 _ ^ 41-75 1 125.25 1-32 Gallon . $ . 59.48 $ 4.3.5 $ 63.84 $ 1,91,52 2-32 Gallon _ $ _ 87.78 _ $ 4;36 $ 92.14 _ $ 276.42 3-32 Gallon $ :116 03 4436 $ 1.20 39 $ 361.17 4_.32 Gallon $ 144:34 $ 4;36 148 7.0 $ 446-1:0 5-32 Galion . $ 5.5:0.9 $ 4:36 $ 59.45 $ 178.3.5 1-45 Gallon # of Cans/2 Pick Ups $ 7.3 1 8 $ 4436 $ 77.54 $ 232.62 1-32 Gallon 117,90 $ . . 436 $ 12136 _ 364.08 2-32 Gallon $ 17366 . $ 4.30 $ 178.02 $ 534.06 3-32 Galion 230.2:9 $ 4.36 $ 234.65 $ 7031.95 4-32 Gallon APARTMENT RATES (Per unit) brit A Base Recycling Monthly Quarterly Rate* Rate Rate Rate # of Cans 11 Pick Up $ 27.17 $ 4.36 $ 31.53 n/a 1-32 Galion - Flat Area $ 33.72 $ 4.36 $ 38.08 n/a 1-32 Gallon - Hill Area s. . 1 ` y `F her ApaM, A Base Recycling Monthly Quarterly Rate* Rate Rate Rate # of Cans /1 Pick Up $ 28.81 $ 4.36 $ 33,117- n/a 1-32 Gallon - Flat Area - - . $ 35.45 $ 4.36 $ 39.81 n/a 1-32 Galion - Hill Area ~'-"'H I B I q TIBURON Rate I ncrease 15.881%, :1 YaW"Containe-, Base Rate Recycling Rate Monthly Rate Container Rental # of Pick Ups $ 127.22 $ 16.95 $ 144.17 $ 22.66 1 Pick Up $ 254.51 $ 33.94 $ 288.45 $ 22.66 2 Pick Ups $ 381.81 $ 50.87 $ 432.68 $ 22.66 3 Pick Ups $ 509.06 $ 67.86 $ 576.92 $ 22.66 . 4 Pick Ups $ 636-.31 $ 84.84 $ 721.15 $ 22.66 5 Pick Ups $ 763.60 $ 10182 $ _ 865.42 $ ..................._............1-........ .22.66 6 Pick Ups $32.4.6 per yard extra trash charge ,c , ntin;r Base Rate Recycling Rate Monthly Rate Container Rental # of Pick Ups $ _ 254.51 $ . 33.94 . 288.45 $ 4530 1 Pick Up $ 509.03 $ . . 67.88 _ $ 576.91 . $ _ 45.30 2 Pick Ups . _ $ 763.60 $ 101,82 $ 865.42 $ 4530 3 Pick Ups $ 1,018 01 $ 135.78 $ 1,153 79 $ 45.30. 4 Pick Ups $ 1,272.65 $ 169.72 . $ 1,442.37 $ 45.30 5 Pick Ups $ 1,527.16 $ 203.67 $ 1,730 83 $ 45.30_1 _6 Pick Ups $32.46 per yard extra trash charge Base Recycling Monthly Container Rate Rate Rate Rental # of Gans/1 Pick Up $ 43.62 $ 4.36 $ 47.98 n/a 1-32 Gallon $ 57.15 $ 4.36 $ 61.51 n/a 1-45 Gallon Base Recycling Monthly Container Rate (per yd/month) Rate Rental # of Pick Ups 92.33 $ 16.95 n/a n/a 1 Pick Up Maximum Weight: 8 tons. Overweight charge: $100 per ton. Saturday Recycling Monthly Container Base Rate Rate Rate Rental # of Cans/1 Pick Up $ 190.84 $ 25.44 n/a n/a 1 Yard Container - Saturday 381.77---, $ 50. n/a n/a 2 Yard Container - Saturday T T lf' Ti 1'Y"~ r- 7 O O N r~ rn 0 O N O r co 0 O N 00 O O N ti N O 6- CL C). O C N r 0 N r- a N r (n O rJ t- O t~ tV r. :f. 0 0 0 0 0 0 C) o 0 0 0 .0 cv co Ca co 0 0 0 E LO (-0 co LO LO N r- M Ln T- cy") LO N r- j tZ ff3 C E 64 6q CV) 0 C) CD O 0 0 O 0 Cl Cl O C) ' ~r CV) (ZF Cn T-- T- d- C) co r- N co r CO d 6S ('7 ',I- CD O C) CD O 0 O O O C) 0 CO 4a (n C)n LO C) (M d' 0 T- N d' rn CN -It E _ O 0 C) O O 0 > 0 0 0 O O C7 a•+ C3? CO Cp ti C) rl-_ co co m j 41 V- N `ct CO (N zt- E 0 = Cf)- U) f}) 69~ .GP)- 0 O O C7 o 0 O C) o 0 0 0 T Ln cn d' t`- LC) m co .Q c M Ln CD M t') {fit 64 e& Sq l tf} Gpi. L~ O C3 O o O O C) C) C) C) o C~ I- .0 cr) (n cn r,- r`- - --N O 0) CC) T- (p T.- (n I:t cr) M 'd' 6. ~ 04 6q m C) co C co ,O c. d) N M CSC. d' CV c- c~ m 'r ~ o n o t CL (N u 64 K3 61)- 6 t~ 61-11 O O 0 Cry 0 0 O O O C) C) 0 4) (0 N CCU 6 l- N (Y) O Co tl- N f`r T- M d Cn M d Z 0- > CD C 0 0 0 0 4) C) (D o o o C) co C i 0) cD tr Lo (r) CV r- C"). r " (0 - r- M LO O C ) d Q ~ Cv "'T } to C) Z 0 (D Ix ,k L 43 0 U- 4) cri = C Z u~ X (D 0 .41 Q: NE L. M. as -a C~ ca 0 T3 t~ O d 0 C oi N 0 0 C6 LO O 0 (6 r-- T- 0 0 N cn N i N *I t Qi 0 L.L U- U- ~ C O 0 w.. 0 r- ,w ; ~ U N a) CL 0 - U- l.t_ r LO C7 LO 0 cn to ce V) _ (D u ~ - .a U- U- C 0 ( N :N an 0 CO n ( N J .0 U- U _ O - co C C LO 0 ~ ~ ~ cu m a) U- a) U- 4) N Ld U-) 0 0 to (D fn U U C U CD C_ CW 0 } p Lf) t. 0 ~ Lf i ~ ~.n N . a ' c 4) 3: (D 4-1 2 Z3) X d J S = ~ x co B C! 0 c Q t- .C u *14 0 Z C 0 HIBIT~ Miscellaneous Terms and Conditions for Residential Rates Base Rate Base Rate includes trash and compost can service. MVRS provides one (1) compost can and one (1) recycling can per custoiner. EXtra compost and recycling cans available at $6. 00 per can per month. Apartment/Multi-Unit Residential Rates Apartment/multi-unit residential complexes are defined as multi-unit residential housing with four or more units. Apartment/mufti-unit residential complexes that use the available vard/food waste composting service will be charged a rate reflecting the actual amount of garbage collection requested, measured in 32-gallon equivalents and applied on a per-trip basis at the applicable 32-gallon, once-per-week rate as shown on the current, approved rate sheet. Apartments/multi-unit residential complexes that do not use the available yard/food waste composting service will be charged a minimum of one 32-gallon can per unit/per trip at the applicable once-per- week rate as shown on the current, approved rate sheet. If the following equivalency formulas need to be used, and they result in a higher number of 32-gallon cans than the minimum of one per urot, then the applicable once-per-week rate shall be applied to such higher number of 32-gallon cans. If the result is a lower number of 32-gallon cans, then the minimum one-can-per-unit charge shall be applied only to those accounts not using the yard/food waste composting service. Equivalency.formula: In cases where 45-gallon cans or 1-yard and 2-yard containers are used instead of, or in addition to, 32-gallon cans, the following equivalency formulas will be applied to determine the total amount of 32-gallon cans deemed collected at that location (without regard to whether the containers are filled): • Each 45-gallon can will be considered to hold one-and-one-half 32-0'allon cans. • Each 1-yard container will be considered to hold seven 32-gallon cans, and each 2-yard container will be considered to hold fourteen 32-gallon cans*. Multiple trips in a week to a single location will be charged a multiple of the applicable once-per-week rate. In all cases, a 10% discount off the base rate will be applied if all units are paid for by the property owners. *If 1 yard or 2 -yard containers supplied by MVRS are used, standard commercial container rental rates will be charged in addition to the applicable apartment rate. Miscellaneous and Extra Charges 32-gallon extra trash can/bag: $ 8.00. 32-¢allon extra yard waste can/bag: $6.00 45-gallon extra trash can/bag: $ 10.00. Customers should call in advance for free quotes on other loose trash and bulky items. Delinquent Accounts If an account is put on "stop service" due to a past due balance, a $20.00 processing fee will be charged in addition to the past due amount to reactivate service. Vacation Holds on Service Accounts may be put on Vacation Hold for a minimum of three months only-. No administration fee upon reactivation of service. Multiple Cans/Pickups Multiple cans/pickups of quantities listed on the Residential Rate sheet are charged a multiple of the single can, one-time-per-week pick up rate. 2011 Version - IBIT ! Miscellaneous Terms and Conditions for Commercial Rates Base Rate Base Rate includes trash and compost can service. MT'RS provides compost and recycle cans upon request. Multiple Cans/Pickups Multiple cans/pickups of quantities listed on the Commercial Rate sheet are charged a multiple of the single can, one-time-per-week pick up rate. Container Rental Fee Rental fee covers all repairs due to nonnal wear and tear and steam cleaning of the container once per year. Additional steam cleanings during the year are $100 per container per cleaning. Saturday Service # There is no special charge for Saturday service if the customer- already has five (5) times a week service during the regular workweek (Mon-Fri). The special Saturday rate is available to customers with a minimum of three (3) times a week service during the regular workweek. Sunday Service Sunday service may be available depending on demand. Rates are subject to negotiation. Delinquent Accounts If an account is put on "stop service"' because of failure to pay the bill, a $20.00 processing fee will be charged in addition to the past due amount to reactivate service. 6 2011 Version I Exhibit B Map of Service Areas Exhibit B EMIBIT To: TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Mayor and Members of the Town Council Town Council Meeting July 6, 2011 Agenda Item: I From: Community Development Department Subject: Introduction and First Reading of an Ordinance Repealing Title VI, Chapter 28 (Smoking & Tobacco Regulations) and Adopting a new Title VI, Chapter 28 (Smoking & Tobacco Regulations) of the Tiburon Municipal Code Reviewed By: BACKGROUND The Town adopted its current smoking and tobacco regulations in 1992. Since that time there have been changes in state smoking laws, increased interest by citizens in the regulation of smoking, and a deeper understanding of the dangers of smoking and exposure to smoke. In response, many communities, both locally and nationally, are adopting more stringent regulations regarding smoking and the sale of tobacco products. In early 2010, the Town Council appointed an ad-hoc subcommittee of Vice Mayor Fraser and Councilmember Fredericks to advise staff regarding possible smoking ordinance revisions. Working with Town staff, the Committee researched ordinances, met numerous times, held a workshop with landlords, and prepared a revised draft ordinance. In October 2010, the Town Council held a public hearing on that draft ordinance, which constituted a substantial re-write of the existing 1992 provisions. Specifically, the original draft ordinance would have newly prohibited smoking in the following areas: • All public parks under the Town's control • All hotel and motel rooms • 50% of existing apartment units on premises with 4 or more units, including all common areas therein, whether enclosed or not • 75% of new apartment units on premises with 4 or more units, including all common areas therein, whether enclosed or not • All outdoor eating areas • All areas with 25 feet of entrances or openings to public buildings and all areas within 25 feet of any entrance or opening to an enclosed area in a multi-unit residence where smoking is prohibited Following receipt of public testimony at the hearing in October 2010, the consensus of the Town Council was that the proposed revisions did not go far enough to address second hand-smoke exposure in rental units and in certain unenclosed public spaces and events. The Council directed TOWN OF TIBURON PAGE 1 OF 3 that revisions to the ordinance be prepared in response to these concerns. Minutes of the Town Council meeting are attached as Exhibit 3. ANALYSIS The Committee and staff researched other, more stringent ordinances from the Bay Area and elsewhere in the State, and found several that banned smoking in apartment units altogether following a grace period ranging anywhere from approximately one to three (1-3) years. These ordinances contain no "grandfathering" clause for existing smokers, such that at the end of the grace period, all new leases and lease extensions would prohibit smoking in all apartment units subject to the ordinance. The Committee also considered options other than a complete ban on smoking in apartment units, but concluded that the proposed option best serves the public interest and best protects public health. Any blanket grandfathering clause for existing smokers, especially in rent-controlled units where there is little turnover, would potentially allow continued second-hand smoke expose for many years to come. There were also substantial obstacles to requiring landlords to "relocate" smokers into one or a few buildings in order to achieve maximum separation of smokers and non-smokers. Most of Tiburon's complexes are either too small or the unit characteristics are too variable for this approach to be viable. In the end, the Committee opted for an extended but finite "grace period" for existing lawful occupants of three (3) years, after which smoking inside the units would be prohibited by the lease. A redlined version highlighting changes to the ordinance made since the October 2010 draft is attached as Exhibit 1. A clean copy of the proposed ordinance is attached as Exhibit 2. The primary modifications are in Sections 28-5, which contains the expansion of smoking prohibitions at public events, and in Section 28-7, which contains the smoking prohibitions for rental units in multi-unit complexes. OTHER MARIN ORDINANCES The October 2010 draft ordinance was largely based on a City of Novato ordinance that was, at that time, the most stringent in Marin County, prohibiting smoking in 50% of existing rental units and 75% in new rental units. These provisions applied only to complexes with 10 or more units. In the intervening months, the municipalities of Larkspur and Fairfax have adopted revised smoking ordinances. Larkspur's ordinance prohibits smoking in at least 80% of existing apartment units (and in all new units) with a four-month grace period for affected units, while Fairfax's ordinance prohibits smoking in at least 75% of all apartment units (new or existing) with a fourteen month grace period for affected units. Both ordinances seek to cluster non- smoking units together (horizontally or vertically) to the extent practicable, physically separated from units where smoking is allowed. OUTREACH A substantial outreach effort has been made for the latest proposed revisions to the smoking regulations. On May 31St, copies of the revised draft ordinance were mailed to all 51 owners of affected rental apartment properties in Tiburon. Shortly thereafter, notices were mailed to all restaurants, to the Chamber of Commerce, and to the "Resident" of all affected rental units (totaling approximately 660 units) in Tiburon. To date, staff has received only two 1 OWN OF TIBURON PAGE 2 OF 3 Y.. communications in response, both from renters in support of the proposed ordinance. The draft ordinance has been posted on the Town's website since the first week of June. FISCAL IMPACT Staff anticipates that there would be no direct fiscal impacts to the Town from adoption and implementation of the Ordinance. Currently, Town staff is required to devote little time or effort in responding to smoking complaints or violations of Chapter 28 provisions. The revised regulations could result in an increased number of complaints and enforcement actions that would primarily be the responsibility of the Police Department to enforce. However, the increased enforcement efforts are not expected to require additional personnel or resources at this time. ENVIRONMENTAL STATUS Adoption of this Ordinance is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15308 and 15061(b)(3) of the CEQA Guidelines. CORRESPONDENCE As of the writing of this report, Staff has received two pieces of correspondence on this item and no phone calls. The correspondence is attached as Exhibits 4 and 5. STAFF RECOMMENDATION Staff recommends that the Town Council: 1. Hear the staff report presentation and any verbal report from the ad-hoc Council Committee members. 2. Hold a public hearing on the draft ordinance and consider all testimony. 3. If appropriate following deliberation, proceed with the introduction and first reading of the draft ordinance. The procedure would be to move to read the ordinance by title only, waiving any additional reading, and introduce the Ordinance amending Title VI, Chapter 28 (Smoking and Tobacco Regulations) of the Tiburon Municipal Code. Pass the first reading by roll call vote. If first reading is passed, the Ordinance will return for final adoption on a future consent calendar. EXHIBITS 1. Redlined version of Proposed Ordinance showing changes made since October 2010 2. Clean copy of Proposed Ordinance 3. Minutes of the Town Council meeting of October 20, 2010 4. E-mail from Ellen Pesavento dated June 11, 2011 5. E-mail from Diane Iacopi dated June 13, 2011 Prepared by: Scott Anderson, Director of Community Development S: WdministrationlTown CounciMtaffReports1201 ] Uuly 6 draftsISmoking ordinance redux report.doc TOWN OF TIBURON PAGE 3 OF 3 REDLINED ORDINANCE NO. XXX N. S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON REPEALING MUNICIPAL CODE TITLE VI, CHAPTER 28 (SMOKING AND TOBACCO REGULATIONS) AND ADOPTING A NEW MUNICIPAL CODE TITLE VI, CHAPTER 28 (SMOKING AND TOBACCO REGULATIONS) SECTION 1. FINDINGS. WHEREAS, the Town Council adopted its current municipal code regulations regarding smoking and tobacco in October 1992, codified as Title VI, Chapter 28 of the Tiburon Municipal Code; and WHEREAS, since that time there have been changes in the law and increased interest by citizens in the regulation of smoking, and the Town Council desires to update its smoking and tobacco-related regulations; and WHEREAS, the Town Council finds that the magnitude of the proposed amendments to Title VI, Chapter 28 are such that repeal of the entire chapter and adoption of a new chapter is warranted and appropriate; and WHEREAS, the Town Council finds that the regulations contained herein are consistent with goals and policies of the Tiburon General Plan, and specifically with the goals of the Safety Element of the Tiburon General Plan, and are adopted to promote the health, safety and general welfare of the community by further regulating tobacco smoke and tobacco-smoke-related hazards; and WHEREAS, the Town Council held a-public hearings on October 20 2010 and 2011 has heard and considered all testimony and timely correspondence on the proposed Municipal Code amendments; and WHEREAS, the Town Council finds that that these amendments are covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and further finds that if the amendments were not covered by the above section, the amendments would be categorically exempt pursuant to Sections 15305, 15307 and/or 15308 of the CEQA Guidelines. SECTION 2. REPEAL OF TITLE VI, CHAPTER 28. NOW, THEREFORE, BE IT ORDAINED that the Town Council of the Town of Tiburon hereby repeals Title VI, Chapter 28 (Smoking and Tobacco Regulations) of the Tiburon Municipal Code. Town of Tiburon Ordinance No. xxx N. S. ( 'Onnnatee yrult 5 l6 201 0 Page 1 of 16 EXHIBIT NO. SECTION 3. ADOPTION OF TITLE VI, CHAPTER 28. NOW, THEREFORE, BE IT FURTHER ORDAINED that the Town Council of the Town of Tiburon hereby adopts a new Title VI, Chapter 28 (Smoking and Tobacco Regulations) of the Tiburon Municipal Code to read as follows: 28-1 Findings and Purpose. (a) The town council finds that: (1) Numerous scientific studies have found that tobacco smoke is a major contributor to indoor air pollution; (2) Reliable scientific studies, including studies by the Surgeon General of the United States and studies commissioned and assessed by the U.S. Environmental Protection Agency, have shown that breathing sidestream or secondhand smoke is a significant health hazard to nonsmokers; particularly to children and teens, elderly people, individuals with cardiovascular disease, and individuals with impaired respiratory function, including asthmatics and those with obstructive airway disease; (3) Health hazards induced by exposure to environmental tobacco smoke include lung and other forms of cancer, respiratory infection, decreased respiratory function, decreased exercise tolerance, broncho-constriction and broncho-spasm, and that the most common cause of premature death from environmental tobacco smoke is heart disease; (4) Reliable scientific studies assessed by the U.S. Environmental Protection Agency have found that sidestream and secondhand tobacco smoke causes the death of at least fifty-three thousand nonsmokers annually and is a leading cause of premature death and disability among nonsmokers; (5) Nonsmokers with allergies, respiratory diseases and those who suffer other ill effects of breathing sidestream or secondhand tobacco smoke may experience a loss of job productivity or may be forced to take periodic sick leave because of adverse reactions to same; (6) Persons, particularly employees, have a right to a smoke-free environment if they desire; (7) Tobacco smoking is a leading cause of fires, and cigarette and cigar burns and ash stains on merchandise and fixtures cause economic losses to businesses; (8) Substantial scientific evidence exists that the direct use of tobacco products causes cancer, heart disease, and various other medical diseases. The Surgeon General of the U.S. has found that tobacco-caused diseases are the leading cause of premature, preventable death and disability in the U.S.; (9) The National Centers for Disease Control have found that at least four hundred thirty-four thousand Americans die each year from tobacco-caused diseases. The Surgeon General of the U.S. and U.S. Department of Health and Human Services have found that a majority of those Americans who die of tobacco-caused diseases became addicted to nicotine in tobacco products as adolescents before the age of legal consent; (10) The National Institute on Drug Abuse has concluded that the nicotine in tobacco products is a powerful addictive drug and identifies nicotine addiction as the most widespread example of drug dependence in the U.S.; (11) The Surgeon General of the U. S. has found that nicotine in tobacco products is as addictive as cocaine and heroin; Town of Tiburon Ordinance No. xxx N. S. ( 'ommilice Dru/i 5 16 2011 ~ 20 i Page 2 of 16 -(12) 87.9% of non-smokers showed detectable levels of cotinine (a metabolic of nicotine) in their blood the most likely source of which is secondhand smoke eXpOSUre; There is no Constitutional right to smoke; L14----04) Secondhand smoke can seep under doorways and through wall cracks; and through ventilation systems; Ll 5--4.4-4) State law prohibits smoking in virtually all indoor places of employment reflecting the state policy to protect against the dangers of exposure to secondhand smoke; L 16--(15) A local ordinance that authorizes residential rental agreements to include a prohibition on smoking of tobacco products within the common areas of multi- unit residences is not prohibited by state law; LI 7---x44) California law declares that anything which is injurious to health or obstructs the free use of property, so as to interfere with the comfortable enjoyment of life or property, is a nuisance. (b) Accordingly, the town council finds and declares that the purposes of this chapter are: (1) To protect public health, safety and general welfare by prohibiting tobacco smoking in certain public places and in places of employment; and (2) To guarantee the right of nonsmokers to breathe air toh eo smoke -free of toxins from combustion of tobaccouii uiiar , f ^,,,a * ,.o,~~ e°~ ~ tobacco product, tobacco-like product, spices or any other plant or herbal materials to the extent that local regulation of sources of combustion of those materials is allowed by law and to recoinize that the need to breathe air smoke free of the toxins produced by smoking air has priority over the desire to smoke; (c) The town council further finds it is within its basic police power to implement and enforce the provisions of this chapter. 28-2 Definitions. The following words and phrases, whenever used in this chapter, shall be construed as defined in this section: "Bar" means an area which is devoted to the serving of alcoholic beverages for consumption by patrons on the premises and in which the serving of food is only incidental to the consumption of such beverages. "Business" means any sole proprietorship, joint venture, corporation or other business entity formed for profit-making purposes, including retail establishments where goods or services are sold, as well as professional corporations and other entities where legal, medical, dental, engineering, architectural or other professional services are delivered. "Commoll interest complex" means a multi-unit residence that is a condominium project, a community apartment project, a stock cooperative, or a planned development as defined by, California Civil Code section 1351. Town of Tiburon Ordinance No. xzx N. S. ( ommillec A-ali j 16 2111';"~~~ Page 3 of 16 "Employee" means any person who is employed by any employer in consideration for direct or indirect monetary wages or profit, and any person who volunteers his or her services for a nonprofit entity. "Employer" means any person, partnership, corporation, including a municipal corporation, or nonprofit entity, which employs the services of one or more individual persons. "Enclosed area" means all space between a floor and ceiling that is enclosed on all sides by solid walls or windows (exclusive of door or passage ways) that extend from the floor to the ceiling, including all space within said walls or windows that may be screened or divided by partitions or other materials or devices that do not extend to the ceiling or are not solid. "Health department" means the County of Marin Health Department. "Landlord" means any person who owns real property leased as residential property, any person who lets residential property, or any person who manages such property, except that "landlord" does not include sublessors. "Minor" means any individual who is less than 18 years old. "Multi-unit residence" means premises containing four (4) or more Units, except that individual Units on separate parcels within a eoNdeN, common--interest coiiiplexsubdivisi are exempt from provisions of this chapter. "Multi-unit common area" means any indoor or outdoor area of multi-unit residence premises accessible to and usable by residents of different units and/or members of the public, including but not limited to halls and paths, lobbies, laundry rooms, common areas, outdoor eating areas, play areas and swimming pools; except that "Multi-unit common area" does not include outdoor, non- enclosed common area facilities located within aeotidoniiiii um or common-- interest com lleex . "Nonprofit entity" means any corporation, unincorporated association or other entity created for charitable, philanthropic, educational, character-building, political, social or other similar purposes, the net proceeds from the operations of which are committed to the promotion of the objectives or purposes of the entity and not to private gain. A public agency is not a "nonprofit entity" for purposes of this chapter. "No smoking sign" means a sign containing the words "No smoking" or the international "No smoking" symbol (consisting of a pictorial representation of a burning cigarette in a red circle or red heart with a red bar across it). "Opening" means and shall include any main entrances, exits, operable windows, and ventilation intake systems. Town of Tiburon Ordinance No. xxx N. S. Co mille _Orali i 16 01 l Page 4 of 16 "Outdoor eating area" means an outdoor area, whether covered or uncovered, under the control of a restaurant or bar or other food and/or drink- serving business or establishment, where the consumption of food and/or drink occurs. "Person" means any natural person, partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee, or any other legal entity. "Premises" means a piece of land and any improvements upon it such as is usually described in a deed, deed of trust or mortgage; including legally separate but contiguous pieces of land that are owned by the same natural person or by legal persons under common control. "Public event" means an event open to the public, including but not limited to sports events, entertainment speaking. performances, ceremonies, pageants, parades, fairs and fanner"s markets "Public park" means any parkland open to the public that is owned by the town and is designated "Parks & Recreation" on the zoning map of the town. "Public place" means any enclosed area to which the public is invited or in which the public is permitted, including but not limited to, banks, educational facilities, health facilities, shopping malls, laundromats, public transportation facilities, reception areas, restaurants, bars, retail food production and marketing establishments, retail service establishments, retail stores, hotels and motels and the individual rooms therein, theaters and waiting rooms. A private residence is not a "public place." "Reasonable distance" means a distance of at least twenty-five (25) feet. "Restaurant" means any coffee shop, cafeteria, sandwich stand, private and public school cafeteria, including any associated outdoor eating area, and any other eating establishment which gives or offers for sale food to the public, guests or employees, as well as kitchens in which food is prepared on the premises for serving elsewhere, including catering facilities. "Retail tobacco store" means a retail store in which the primary merchandise for sale consists of tobacco products and accessories, and in which the sale of other products is merely incidental, and which does not provide any entertainment, or any food or beverage for consumption on the premises. "Self-service merchandising" means open display of tobacco products or tobacco paraphernalia in a manner that is accessible to the general public without the assistance of the retailer or employee of the retailer. This includes point-of- sale tobacco promotional products (such as tobacco industry tee shirts, caps, key Town of Tiburon Ordinance No. xxx N. S. c ominittec Uru1i 5 16 011 20 r P Page 5 of 16 chains, give-aways), to which the public has access without the assistance of an employee. A vending machine is a form of self service displays. "Separate ventilation system" means a system that is exhausted to the outside and negatively pressurized. "Service line" means any indoor line at which one or more persons are waiting for or receiving service of any kind, whether or not such service involves the exchange of money. "Smoking" means possessing a lighted pipe, lighted cigar, or lighted cigarette, lighted hookah, or other device of any kind, or the lighting of a pipe, hookah, cigar or cigarette, or other device containing tobacco, tobacco product, tobacco-like product, spices, or any other plant or herbal materials to the extent that local regulation of such lighted device, product or material is allowed by law. "Sports arena" means enclosed or unenclosed sports pavilions, gymnasiums, health spas, swimming pools, roller and ice rinks, bowfing alleys and other similar places where members of the general public assemble either to engage in physical exercise, participate in athletic competition, or witness sports events. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products. "Tobacco product" means: (a) any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, bidis, blunts, clove cigarettes, or any other preparation of tobacco; and (b) any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body by inhalation; but does not include any cessation product specifically approved by the U. S. Food and Drug Administration for use in treating nicotine or tobacco dependence. "Tobacco vending machine" means any machine, appliance, or other mechanical device operated by currency, token, debit card, credit card, or any other form of payment that is designed or used for vending purposes, including, but not limited to, machines or devices that use remote control locking mechanisms. "Town" means the Town of Tiburon. "Town manager" means the Town Manager of the Town of Tiburon, or his or her designee. Town of Tiburon Ordinance No. xxxN. S. ('ommillee Drali ? 16 2011 20i Page 6 of 16 "Town open space" means any open space land or easement owned by the Town and designated as "Open Space" on the zoning map of the town. "Unit" means: (a) a dwelling space consisting of essentially complete independent living facilities for one or more persons, including, for example, permanent provisions for living and sleeping, and any private outdoor spaces like balconies and patios; and (b) senior citizen housing and single room occupancy hotels, as defined in California Health and Safety Code section 50519(b)(1) or successor sections thereto, even where lacking private cooking facilities or private plumbing facilities. "Unit" does not include lodging in a hotel or motel that meets the requirements set forth in California Civil Code section 1940(b)(2). "Vendor-assisted" means only a store employee has access to the tobacco product and assists the customer by supplying the product. The customer does not take possession of the product until it is purchased. r 28-3 Smoking Prohibited in Town-owned Vehicles and Facilities. Smoking is prohibited in all town-owned vehicles, including jitneys and buses and other means of public transit under the authority of the town, and all enclosed facilities owned and/or controlled by the town. 28-4 Smoking Prohibited in Public Parks and Town Open Spaces. (a) Smoking is prohibited in all public parks, whether in an enclosed area or an unenclosed area. (b) Smoking is prohibited in all town open spaces, whether in an enclosed area or an unenclosed area. 28-5 Smoking Prohibited in Certain Public Places. (a) Smoking is prohibited in all outdoor eating areas, as defined herein. (b) Smoking is prohibited within twenty-five (25) feet of any entrance, exit, or opening to a public building. (c) Smoking is prohibited in all public events, and at events or functions for which the Town Manager has issued a Special Event Permit. (d) Smoking is prohibited in all enclosed public places within the town, including, but not limited to, the following places: (1) Elevators; (2) Buses, taxicabs, and other means of public transit under the authority of the town and ticket, boarding, and waiting areas of public transit depots; (3) Restrooms; (4) Service lines; (5) Retail stores; Town of Tiburon Ordinance No. xxx N. S. Committee Urali 5 16 2011 " ,et v _ 2W-4 Page 7 of 16 (6) All areas available to and customarily used by the general public in all business and nonprofit entities patronized by the public, including but not limited to offices (such as attorneys, doctors, and other professionals), banks, laundromats, malls, hotels and motels and the individual rooms therein; (7) Restaurants; (8) Bars; (9) Public areas of aquariums, galleries, libraries or museums when open to the public; (10) Any facility that is primarily used for exhibiting motion pictures, stage productions, lectures, musical recitals or other similar performances; (11) Sports arenas and convention halls; (12) Every room, chamber, place of meeting or public assembly, including school buildings under the control of any board, council, commission, committee including joint committees, or agencies of the town or any political subdivision of the state during such time as a public meeting is in progress, to the extent such place is subject to the jurisdiction of the town; (13) Waiting rooms, hallways, wards and rooms of health care facilities, including, but not limited to, hospitals, clinics, physical therapy, mental health, and drug and alcohol treatment facilities, doctors' and dentists' offices; (14) Lobbies, hallways and other common areas in senior citizen residences, nursing homes, and child-care facilities; (15) Multi-unit common areas; (16) Lobbies, hallways and other common areas in multiple-unit commercial facilities; (17) Polling places. (b) Notwithstanding any other provisions of this section, any owner, operator, manager or other person who controls any establishment or facility may declare that entire establishment or facility as a non-smoking establishment. 28-6 Smoking Regulated in Places of Employment. (a) Each employer having an enclosed place of employment located within the town shall adopt, implement, make known and maintain a written smoking policy that shall contain the following requirements: Smoking is prohibited in all enclosed facilities within a place of employment without exception. This includes common work areas, auditoriums, classrooms, conference and meeting rooms, private offices, elevators, hallways, medical facilities, cafeterias, employee lounges, stairs, restrooms, non-personal vehicles and all other enclosed facilities. (b) The smoking policy shall be communicated to all employees within thirty (30) days of its adoption, and at least annually thereafter. (c) All employers shall comply with these non-smoking provisions and shall be responsible for their implementation in their places of employment. (d) "No Smoking" signs shall be conspicuously posted at building entrances and in employee lounges, cafeterias and lunchrooms. Town of Tiburon Ordinance No. xxx N. S. Committee Urals 5 16 ?l)111 Page 8 of 16 (e) All employers shall supply a written copy of the smoking policy to any existing or prospective employee. (f) Places of employment exempt from the prohibition on smoking in other sections of this chapter shall also be exempt from this section. 28-7 Smoking Prohibited in Multi-unit Common Areas and in Certflifl ulti-unit Residences. (a) Smoking is prohibited in all multi-unit common areas except that a landlord may designate a portion of the outdoor area of the premises as a smoking area as provided in paragraph (b) below. (b) A designated smoking area: (1) Must be located at least twenty-five (25) feet from any indoor area where smoking is prohibited; (2) Must not include, and must be at least twenty-five (25) feet from, outdoor areas primarily used by children including, but not limited to, areas improved or designated for play or swimming; (3) Must be no more than 25% of the total outdoor area of the premises for which it is designated; (4) Must have a clearly marked perimeter; (5) -Must be identified by conspicuous signs; and (6) Must not overlap with any area in which smoking is otherwise prohibited by this chapter or other provisions of this Code, state law, or federal law. (c) Non-smoking, units required in multi-unit residences: (1) New multi-unit residences: In every multi-unit residence that receives a certificate of occupancy after /insert effective date of this ordinancel, one hundred percent (100%) of the units (including private outdoor spaces associated with such units, such as balconies, patios and decks), shall be non-smoking units by law. (A) Required Lease Terms: Every lease multi unit r sidefiee . ithi., a+ least-twent~, five feet of an~, Ee-,--v~or other agreement for the occupancy V„tJV°IrII.7.LI tnte an °nelos°a area-of a unit in a new multi-unit residence shall include: 1. A clause stating, that smoking is prohibited in the unit; 2. A clause stating that it is a material breach of the lease or agreement to violate any law regulating smoking while on the premises, smoke in any unit, or smoke on any multi-unit common area in which smoking is prohibitedib~, this example, and -withatit li *1 ' smoliing On ,.L%,hes, of patios within at least twent~, five (25) feet VV ..4 prohibited. This pfevislon does not ap L7 I 3. A clause stating that all lawful occupants of the multi-unit residence are express third-party beneficiaries of the above-required clauses (B) The California Apartment Association's Form 34 0 revised January 2007, meets the requirements for lease terms as outlined and is an option for use to comply with this subsection. (d) Non s.+1 0l1li.nir red in »lti ■irii4 rec..d N e3ov nii t, Ci-' •n ii Town of Tiburon Ordinance No. xxx N. S. Committee Uru11 5 16 2011 Page 9 of 16 baleeflies, r r (2)4- Existing multi-unit residences: -a. In every multi-unit residence already existing on [insert the effective date ofthis ordinance], one hundredafid th er eAafe Not sti~~ t to Pfeeeai„ e' (d)(1), at least Fi f4 y percent (100 of the units (including private outdoor spaces associated with such units, such as balconies, patios; and decks), shall by laws be designated non-smoking units by July 1, 2014. A landlord may snake units non- smoking, prior to July 1, 2014. (A) Landlords shall, by [insert the date 60 days after effective date of this ordiaanceL, notify each existing and new tenant as of !insert the effective date of this ordinancel, of the 1g fafee Of this ehaptef shall not be sti~jeet tE) the of while ~ Lease the ,1 R~} ems ase T - -erirs 4T+- lease. lease terms required by this chapter. (B) Required Lease Terms: Every new lease, lease renewal extefi "^r or other agreement for the occupancy of a unit in a multi-unit residence made on or after (insert the effective date of this ordinancel, shall include: l .a-- A clause stating that smoking is prohibited in the unit, 2. A clause stating that it is a material breach of4fthe lease or agreement to violate any law regulating smoking while on the premises, smoke in any unit, or smoke on any has been desigfiated as a non snieki-L, (iii) Sf:neke in afiy multi-unit common area in which smoking is prohibited lid; and 3.c-.-- A clause stating that all lawful occupants of the multi-unit residence are express third-party beneficiaries of the above_ required clauses. (2) The lease of agr-ee.-nent terms feqtiifed by stibseetion (e)(14 11. Lt ~111L dote of this liable CC7. allows anotlier- per-son to do so shall he and n. t~ Town of Tiburon Ordinance No. xxx N. S. ( 'ommitlee Uruli ? 10 2L1I /I-ef Page 10 of 16 - (4. Prior to July shall 4r afiy elai s afising fi-o , "Slabseeti,»i (e)(1, 2014, this subsection 28-7(c)(2)(B) shall not apply to renewal of a lease or other azreement for occupancy with a person lawfully occupying the unit on insert the effective date of this ordinance) On July 1, 2014, this exception shall expire and all leases, lease renewals and other agreements for occupancy shall comply with this subsection 28-7(c)(2)(B). C. The California Apartment Association's Form 34 0, revised lanuary 2007, meets the requirements for lease terms as outlined and is an option for use to comply with this subsection.%' g oTI'j'o1-ITIe'1TeC'ea's'i" vl u (d) The lease or agreement terms required by subsection (c)(1 or (c)(2)(0 Disel,,,,,,, , „ 1„Vrrr'rvi . P,~,~I~iVlllng ■,,,its n„~-) a fl oof plan identifying the felntiye 4 S»,a ing „ i J111 ll~, 1\.1 Ull . . of this section are hereby incorporated by force of law into any lease and flee .pla aeeo, ipafiy evefy ne; , leas or other agreement for the occupancy of ull Ilvvl r~ shall r a unit in a multi-unit residence made on or after finsert the effective date of this ordinaneel that does not comply fully with subsection (c)(1) or (c)(2) of this section (e) A tenant who breaches the smoking regulations of a lease or know_ icy allows another person to do so shall be liable to: (1) the landlord; and (2) to any lawful occupant of the multi-unit residence who is exposed to secondhand smoke as a result of that breach. A landlord shall not be liable to any person for a tenant's breach of smoking regulations if the landlord has fully complied with the requirements of this chapter. (f) Failure to enforce any smoking regulation of a lease or agreement on one or more occasions shall not constitute a waiver of the lease or agreement provisions required by this section and shall not prevent future enforcement of any such smoking regulation on another occasion.- the lease smeiiing , (g) Disclosure of Dedicated Smoking Area. Every landlord shall maintain a diagram that illustrates the precise location and configuration of any designated smoking area. This diagram shall accompany every new lease, lease renewal or other agreement for the occupancy of a unit in a multi-unit residence after /insert the effective date of this ordinance) (h) Prohibitions and Duties Generally: (1) No person shall smoke or knowingly permit smoking in an area of the premises under his or her legal or de facto control in which smoking is prohibited by a lease or agreement term, by this chapter, this Code, or any other state or federal law, provided, however, that this prohibition does not apply to a person who is already compelled to act under state or federal law. (2) No person shall knowingly permit the presence or placement of ash trays, cans, or other receptacles within multi-unit common areas under his or her legal or de Town of Tiburon Ordinance No. xxx N. S. Commiuce DI-citi ? 16 201 1 l ,"'ieet ve 4 20 4 Page I 1 of 16 facto control in which smoking is prohibited by this chapter, this Code, or any other state or federal law, including, for example and without limitation, within at least twenty-five (25) feet of any non-smoking area. (3) "No smoking" signs, with letters of no less than one inch in height or the international "No smoking" symbol (consisting of a pictorial representation of a burning cigarette enclosed in a red circle crossed by a red bar) shall be clearly and conspicuously posted a„d Hiaintn'"°d b , * in the multi-unit common areas, at every entrance and exit, and on every floor near an elevator the pre ;riser i which smoki•,« pfohi it a h~, this ehaptef or common stairwell. Such b; , the Widlefd exee t that signs shall be maintained by the landlord.e ~ Uflits. , r,ro,,ided that the, nro n;,t„o,-) to that e4ee Signs must be posted in .sufficient numbers and locations in the multi-unit common areas and at entrances and exits to make areas where smoking is prohibited obvious to a reasonable person. The absence of signs shall not be a defense to a violation of any provision of this section. (4) "This chapter shall not create additional liability for a landlord for a person's violation of this chapter provided that the landlord has fully complied with the required disclosure, sign posting, and other provisions of this chapter r (5) The provisions of this chapter are restrictive only and establish no new rights for a smoker. (16) Notwithstanding any provision of this chapter or other provisions of this Code or failure to restrict smoking, under this chapter, including any explicit or implicit provision that allows smoking, nothing in this chapter shall operate to limit a person's leg,al rights under other laws with regard to smoking, including, for example, claims of nuisance, trespass, property damage, and personal injury. 28-8 Smoking Not Prohibited; Owner Option to Prohibit. (a) Except as otherwise prohibited by county, state or federal law, the following areas shall not be subject to the smoking restrictions of this chapter: (1) Private residences, except when used as a child care or residential health care facility, or except as set forth in Section 28-7; (2) PrivatePer-setia1 vehicles; (3) Retail tobacco stores; (4) Unenclosed areas where smoking is not otherwise prohibited by law; (5) An enclosed place of employment that employs only the owner and no other employee or employees, provided that: (A) The place of employment is not a public place, and (B) The enclosed area containing the place of employment does not share a ventilation system with any other enclosed place of employment or public place. (b) Nothing in this section shall be construed to prevent an owner, operator, manager or other person who controls any business, establishment or facility from declaring that entire business, establishment or facility as non-smoking. 28-9 Duty of Person, Employer, Business or Non-profit Entity. (a) No person, employer, business, or nonprofit entity shall knowingly permit the smoking of tobacco products in an area which is under the legal or actual control of the Town of Tiburon Ordinance No. xxx N. S. Committee Uruli 5 16 201 -._2LJ It] Page 12 of 16 person, employer, business, or nonprofit entity and in which smoking is prohibited by law and the person, employer, business or nonprofit entity is not otherwise compelled to act under state or federal law. (b) No person, employer, business, or nonprofit entity shall knowingly or intentionally permit the presence or placement of ash receptacles, such as, for example, ashtrays or ash cans, within an area that is under the legal or actual of the person, employer, business, or nonprofit entity and in which smoking is prohibited. 28-10 Posting of Signs. (a) The person, employer, business or non-profit entity with legal or actual control of a building or area where smoking is prohibited by this chapter shall clearly and conspicuously post "No Smoking" signs at the entrances of every building, as well as in other areas under their control where smoking is prohibited under this chapter. However, where an entire building or premises is non-smoking, only entrances need be signed, provided that they are signed to that effect. (b) Every retail tobacco store and every vendor of tobacco products shall visibly post signage pursuant to California Business and Professions Code section 22952, or successor sections thereto, which signage shall expressly reference California Penal Code section 308, or successor sections thereto, at the entrance of any premises subject to regulation under section 28-11 of this chapter and applicable state and/or federal law. (c) The absence of signs shall not be a defense to a violation of any provision of this chapter. 28-11 Sale of Tobacco Products Regulated. (a) It shall be unlawful for any person, business, or retail tobacco store to sell, permit to be sold, or offer for sale any tobacco product by means of self-service merchandising, or by any means other than vendor-assisted sales. (b) It shall be unlawful for any person, business, or retail tobacco store to locate, install, keep, maintain or use, or permit the location, installation, keeping, maintenance or use on his, her or its premises any vending machine for the purpose of selling or distributing any tobacco product. (c) No person, business, retail tobacco store, or owner, manager or operator of any establishment subject to provisions of this section shall sell, offer to sell or permit to be sold any tobacco product to an individual without requesting and examining identification establishing the purchaser's age as eighteen years or greater unless the seller has some other clear and convincing basis for knowing the buyer's age. (d) Any person, business, retail tobacco store or other establishment subject to provisions of this section shall post plainly visible signs at the point of purchase of tobacco products which comply with the signage requirements of California Business and Professions Code section 22952, or successor sections thereto. These signs shall be updated to conform to any subsequent state or federal requirements and/or amendments to California Business and Professions Code section 308(a), or successor sections thereto. (e) Any person, business, retail tobacco store or other establishment subject to provisions of this section shall post signs at each entrance to any premises on which any tobacco product is offered for sale. Such signs shall be plainly visible from outside the premises, shall state, "Warning: The fine for buying tobacco for anyone under 18 is $200" in letters Town of Tiburon Ordinance No. xzx N. S. Committee Droli 5 16 2111 b,#i,etive ~-?%m; Page 13 of 16 at least one-half tall, and shall cite California Penal Code 308(a) or successor sections thereto. These signs shall be updated to conform to any subsequent state or federal requirements and/or amendments to Penal Code section 308(a), or successor sections thereto. (f) Any person, business, retail tobacco store, or owner, manager or operator of any establishment subject to provisions of this section who violates any provision of this section shall be deemed guilty of a misdemeanor and upon conviction shall be subject to a fine as set forth in Penal Code section 308(a), or successor sections thereto. 28-12 Enforcement. (a) The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. (b) Notice of these regulations shall be given to all applicants for a business license or renewal thereof. However, lack of such notice shall be no defense to a violation of this chapter. (c) Enforcement of this chapter shall be the responsibility of the town manager, who shall have the powers enumerated in this chapter and in chapter 31 of the Tiburon Municipal Code as well as the power to issue citations for violation of the chapter in accordance with section 853.6 of the California Penal Code, or successor sections thereto. (d) The health department shall require, while an establishment is undergoing otherwise mandated inspections, certification from the owner, manager, operator or other person having control of such establishment that all requirements of this chapter have been complied with. (e) Health department inspectors, on their regular restaurant inspections, shall check for compliance with sign posting requirements. Restaurants shall be notified in writing of any violations on the standard health inspection report. Further, such violations shall be reported in writing by the health department, on a quarterly basis, to the administrative authority in the jurisdiction where such violations occur. (f) Notwithstanding any other provision of this chapter, a private citizen may bring legal action to enforce this chapter. 28-13 Violations and Penalties. (a) It is unlawful for any person who owns, manages, operates or otherwise controls the use of any premises or areas subject to regulation under sections 28-3, 284, 28-59 28-6z e-f 28-7, 28-9, 28-10, or 28-11 of this chapter to fail to comply with any of its provisions. (b) It is unlawful for any person to smoke in any area where smoking is prohibited under provisions of this chapter. (c) Any person, business, retail tobacco store, or owner, manager or operator of any establishment subject to this chapter who violates any provision of this chapter, other than section 28-11, shall be deemed guilty of an infraction and upon conviction shall be Town of Tiburon Ordinance No. xxx N. S. Committee Urul1 5 10-20111- --20; Page 14 of 16 subject to payment of a fine not to exceed $100 or the limits set forth in Government Code section 36900, as may be amended from time to time, whichever is lower. (d) Violations of section 28-11 shall be a misdemeanor. 28-14 Non-retaliation. No person or employer shall discharge, refuse to hire or in any manner retaliate against any employee or applicant for employment because such employee or applicant exercises any right to a smoke-free environment afforded by this chapter. 28-15 Public Education. The town manager or his/her designee will engage in a continuing educational program to explain and clarify the purposes and requirements of this chapter, as well as a guide to owners, operators and managers with compliance. However, lack of such education shall be no defense to a violation of this chapter. 1 28-16 Governmental Cooperation. The town manager or his/her designee may annually request other governmental and educational agencies having facilities within the town to establish local operating procedures in cooperation and compliance with this chapter. This includes urging all federal, state, county and school district agencies to update their existing smoking control regulations to be consistent with current health findings regarding environmental tobacco smoke. 28-17 Other Applicable Laws. It is the intent of the town to supplement applicable state and federal law and not to duplicate or contradict such law, and this chapter shall be construed in a manner consistent with that intention. This chapter shall not be interpreted or construed to permit smoking where it is otherwise restricted by other applicable laws. SECTION 4. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The Town Council of the Town of Tiburon hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase Town of Tiburon Ordinance No. xxx N. S. (_anmillee vrcy 1 I6 ?01 / ~ Page 15 of 16 hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. SECTION 5. PUBLICATION AND EFFECTIVE DATE. This ordinance shall be in full force and effect thirty 3 0 490) days after the date of adoption. Pursuant to the provisions of the California Government Code, a summary of this ordinance shall be prepared by the Town Attorney. At least five (5) days prior to the Town Council meeting at which adoption of the ordinance is scheduled, the Town Clerk shall (1) publish the summary in a newspaper of general circulation in the Town of Tiburon, and (2) post in the office of the Town Clerk a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the Town Clerk shall (1) publish the summary in a newspaper of general circulation in the Town of Tiburon, and (2) post in the office of the Town Clerk a certified copy of the ordinance along with the names of those Council members voting for and against the ordinance. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Tiburon on 2011 2010, and was adopted at a regular meeting of the Town Council of the Town of Tiburon on , 20112010, by the following vote: AYES: NOES: ABSENT: MAYOR ATTEST: DIANE CRANE IACOPI, TOWN CLERK JEFF SLAVITZRICH n pD ('O Jr INIQ , TOWN OF TIBURON S. Udministration lTown Council0i thi rcnrce.ssnloAL . thin i draft?-17-1 clean.doc COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: Town of Tiburon Ordinance No. xzx N. S. Committee Dru tt s 16 2011 ~ 20 Page 16 of 16 CLEAN ORDINANCE NO. XXX N. S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON REPEALING MUNICIPAL CODE TITLE VI, CHAPTER 28 (SMOKING AND TOBACCO REGULATIONS) AND ADOPTING A NEW MUNICIPAL CODE TITLE VI, CHAPTER 28 (SMOKING AND TOBACCO REGULATIONS) SECTION 1. FINDINGS. WHEREAS, the Town Council adopted its current municipal code regulations regarding smoking and tobacco in October 1992, codified as Title VI, Chapter 28 of the Tiburon Municipal Code; and WHEREAS, since that time there have been changes in the law and increased interest by citizens in the regulation of smoking, and the Town Council desires to update its smoking and tobacco-related regulations; and WHEREAS, the Town Council finds that the magnitude of the proposed amendments to Title VI, Chapter 28 are such that repeal of the entire chapter and adoption of a new chapter is warranted and appropriate; and WHEREAS, the Town Council finds that the regulations contained herein are consistent with goals and policies of the Tiburon General Plan, and specifically with the goals of the Safety Element of the Tiburon General Plan, and are adopted to promote the health, safety and general welfare of the community by further regulating tobacco smoke and tobacco-smoke-related hazards; and WHEREAS, the Town Council held public hearings on October 20, 2010 and , 2011 has heard and considered all testimony and timely correspondence on the proposed Municipal Code amendments; and WHEREAS, the Town Council finds that that these amendments are covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and further finds that if the amendments were not covered by the above section, the amendments would be categorically exempt pursuant to Sections 15305, 15307 and/or 15308 of the CEQA Guidelines. SECTION 2. REPEAL OF TITLE VI, CHAPTER 28. NOW, THEREFORE, BE IT ORDAINED that the Town Council of the Town of Tiburon hereby repeals Title VI, Chapter 28 (Smoking and Tobacco Regulations) of the Tiburon Municipal Code. Torn of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page I of 15 TO. SECTION 3. ADOPTION OF TITLE VI, CHAPTER 28. NOW, THEREFORE, BE IT FURTHER ORDAINED that the Town Council of the Town of Tiburon hereby adopts a new Title VI, Chapter 28 (Smoking and Tobacco Regulations) of the Tiburon Municipal Code to read as follows: 28-1 Findings and Purpose. (a) The town council finds that: (1) Numerous scientific studies have found that tobacco smoke is a major contributor to indoor air pollution; (2) Reliable scientific studies, including studies by the Surgeon General of the United States and studies commissioned and assessed by the U.S. Environmental Protection Agency, have shown that breathing sidestream or secondhand smoke is a significant health hazard to nonsmokers; particularly to children and teens, elderly people, individuals with cardiovascular disease, and individuals with impaired respiratory function, including asthmatics and those with obstructive airway disease; (3) Health hazards induced by exposure to environmental tobacco smoke include lung and other forms of cancer, respiratory infection, decreased respiratory function, decreased exercise tolerance, broncho-constriction and broncho-spasm, and that the most common cause of premature death from environmental tobacco smoke is heart disease; (4) Reliable scientific studies assessed by the U.S. Environmental Protection Agency have found that sidestream and secondhand tobacco smoke causes the death of at least fifty-three thousand nonsmokers annually and is a leading cause of premature death and disability among nonsmokers; (5) Nonsmokers with allergies, respiratory diseases and those who suffer other ill effects of breathing sidestream or secondhand tobacco smoke may experience a loss of job productivity or may be forced to take periodic sick leave because of adverse reactions to same; (6) Persons, particularly employees, have a right to a smoke-free environment if they desire; (7) Tobacco smoking is a leading cause of fires, and cigarette and cigar burns and ash stains on merchandise and fixtures cause economic losses to businesses; (8) Substantial scientific evidence exists that the direct use of tobacco products causes cancer, heart disease, and various other medical diseases. The Surgeon General of the U.S. has found that tobacco-caused diseases are the leading cause of premature, preventable death and disability in the U.S.; (9) The National Centers for Disease Control have found that at least four hundred thirty-four thousand Americans die each year from tobacco-caused diseases. The Surgeon General of the U.S. and U.S. Department of Health and Human Services have found that a majority of those Americans who die of tobacco-caused diseases became addicted to nicotine in tobacco products as adolescents before the age of legal consent; (10) The National Institute on Drug Abuse has concluded that the nicotine in tobacco products is a powerful addictive drug and identifies nicotine addiction as the most widespread example of drug dependence in the U.S.; (11) The Surgeon General of the U.S. has found that nicotine in tobacco products is as addictive as cocaine and heroin; Town of Tiburon Ordinance. No. xxx N. S. Committee Draft 511612011 Page 2 of 15 (12) 87.9% of non-smokers showed detectable levels of cotinine (a metabolic of nicotine) in their blood, the most likely source of which is secondhand smoke exposure; (13) There is no Constitutional right to smoke; (14) Secondhand smoke can seep under doorways and through wall cracks and through ventilation systems; (15) State law prohibits smoking in virtually all indoor places of employment reflecting the state policy to protect against the dangers of exposure to secondhand smoke; (16) A local ordinance that authorizes residential rental agreements to include a prohibition on smoking of tobacco products within the common areas of multi-unit residences is not prohibited by state law; (17) California law declares that anything which is injurious to health or obstructs the free use of property, so as to interfere with the comfortable enjoyment of life or property, is a nuisance. (b) Accordingly, the town council finds and declares that the purposes of this chapter are: (1) To protect public health, safety and general welfare by prohibiting tobacco smoking in certain public places and in places of employment; and (2) To guarantee the right of nonsmokers to breathe air free of toxins from combustion of tobacco, tobacco product, tobacco-like product, spices or any other plant or herbal materials to the extent that local regulation of sources of combustion of those materials is allowed by law and to recognize that the need to breathe air free of the toxins produced by smoking has priority over the desire to smoke; (c) The town council further finds it is within its basic police power to implement and enforce the provisions of this chapter. 28-2 Definitions. The following words and phrases, whenever used in this chapter, shall be construed as defined in this section: "Bar" means an area which is devoted to the serving of alcoholic beverages for consumption by patrons on the premises and in which the serving of food is only incidental to the consumption of such beverages. "Business" means any sole proprietorship, joint venture, corporation or other business entity formed for profit-making purposes, including retail establishments where goods or services are sold, as well as professional corporations and other entities where legal, medical, dental, engineering, architectural or other professional services are delivered. "Common interest complex" means a multi-unit residence that is a condominium project, a community apartment project, a stock cooperative, or a planned development as defined by California Civil Code section 1351. "Employee" means any person who is employed by any employer in consideration for direct or indirect monetary wages or profit, and any person who volunteers his or her services for a nonprofit entity. Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 3 of'15 "Employer" means any person, partnership, corporation, including a municipal corporation, or nonprofit entity, which employs the services of one or more individual persons. "Enclosed area" means all space between a floor and ceiling that is enclosed on all sides by solid walls or windows (exclusive of door or passage ways) that extend from the floor to the ceiling, including all space within said walls or windows that may be screened or divided by partitions or other materials or devices that do not extend to the ceiling or are not solid. "Health department'' means the County of Marin Health Department. "Landlord" means any person who owns real property leased as residential property, any person who lets residential property, or any person who manages such property, except that "landlord" does not include sublessors. "Minor" means any individual who is less than 18 years old. "Multi-unit residence" means premises containing four (4) or more Units, except that individual Units on separate parcels within a common interest complex are exempt from provisions of this chapter. "Multi-unit common area" means any indoor or outdoor area of multi-unit residence premises accessible to and usable by residents of different units and/or members of the public, including but not limited to halls and paths, lobbies, laundry rooms, common areas, outdoor eating areas, play areas and swimming pools; except that "Multi-unit common area" does not include outdoor, non- enclosed common area facilities located within a common interest complex. "Nonprofit entity" means any corporation, unincorporated association or other entity created for charitable, philanthropic, educational, character-building, political, social or other similar purposes, the net proceeds from the operations of which are committed to the promotion of the objectives or purposes of the entity and not to private gain. A public agency is not a "nonprofit entity" for purposes of this chapter. "No smoking sign" means a sign containing the words "No smoking" or the international "No smoking" symbol (consisting of a pictorial representation of a burning cigarette in a red circle or red heart with a red bar across it). "Opening" means and shall include any main entrances, exits, operable windows, and ventilation intake systems. "Outdoor eating area" means an outdoor area, whether covered or uncovered, under the control of a restaurant or bar or other food and/or drink- serving business or establishment, where the consumption of food and/or drink occurs. Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 4 of 15 "Person" means any natural person, partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee, or any other legal entity. "Premises" means a piece of land and any improvements upon it such as is usually described in a deed, deed of trust or mortgage; including legally separate but contiguous pieces of land that are owned by the same natural person or by legal persons under common control. "Public event" means an event open to the public, including but not limited to sports events, entertainment, speaking performances, ceremonies, pageants, parades, fairs and farmer's markets. "Public park" means any parkland open to the public that is owned by the town and is designated "Parks & Recreation" on the zoning map of the town. "Public place" means any enclosed area to which the public is invited or in which the public is permitted, including but not limited to, banks, educational facilities, health facilities, shopping malls, laundromats, public transportation facilities, reception areas, restaurants, bars, retail food production and marketing establishments, retail service establishments, retail stores, hotels and motels and the individual rooms therein, theaters and waiting rooms. A private residence is not a"public place." "Reasonable distance" means a distance of at least twenty-five (25) feet. "'Restaurant" means any coffee shop, cafeteria, sandwich stand, private and public school cafeteria, including any associated outdoor eating area, and any other eating establishment which gives or offers for sale food to the public, guests or employees, as well as kitchens in which food is prepared on the premises for serving elsewhere, including catering facilities. "Retail tobacco store" means a retail store in which the primary merchandise for sale consists of tobacco products and accessories, and in which the sale of other products is merely incidental, and which does not provide any entertainment, or any food or beverage for consumption on the premises. "Self-service merchandising" means open display of tobacco products or tobacco paraphernalia in a manner that is accessible to the general public without the assistance of the retailer or employee of the retailer. This includes point-of- sale tobacco promotional products (such as tobacco industry tee shirts, caps, key chains, give-aways), to which the public has access without the assistance of an employee. A vending machine is a form of self service displays. "Separate ventilation system" means a system that is exhausted to the outside and negatively pressurized. Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 5 of 15 "'Service line" means any indoor line at which one or more persons are waiting for or receiving service of any kind, whether or not such service involves the exchange of money. "Smoking" means possessing a lighted pipe, lighted cigar, or lighted cigarette, lighted hookah, or other device of any kind, or the lighting of a pipe, hookah, cigar or cigarette, or other device containing tobacco, tobacco product, tobacco-like product, spices, or any other plant or herbal materials to the extent that local regulation of such lighted device, product or material is allowed by law. "Sports arena" means enclosed or unenclosed sports pavilions, gymnasiums, health spas, swimming pools, roller and ice rinks, bowling alleys and other similar places where members of the general public assemble either to engage in physical exercise, participate in athletic competition, or witness sports events. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, #and any other item designed for the smoking, preparation, storing, or consumption of tobacco products. "Tobacco product"' means: (a) any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, bidis, blunts, clove cigarettes, or any other preparation of tobacco; and (b) any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body by inhalation; but does not include any cessation product specifically approved by the U. S. Food and Drug Administration for use in treating nicotine or tobacco dependence. "Tobacco vending machine" means any machine, appliance, or other mechanical device operated by currency, token, debit card, credit card, or any other form of payment that is designed or used for vending purposes, including, but not limited to, machines or devices that use remote control locking mechanisms. "Town" means the Town of Tiburon. "Town manager" means the Town Manager of the Town of Tiburon, or his or her designee. "Town open space" means any open space land or easement owned by the Town and designated as "Open Space" on the zoning snap of the town. "Unit"means: Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 6 of 15 (a) a dwelling space consisting of essentially complete independent living facilities for one or more persons, including, for example, permanent provisions for living and sleeping, and any private outdoor spaces like balconies and patios; and (b) senior citizen housing and single room occupancy hotels, as defined in California Health and Safety Code section 50519(b)(1) or successor sections thereto, even where lacking private cooking facilities or private plumbing facilities. "Unit" does not include lodging in a hotel or motel that meets the requirements set forth in California Civil Code section 1940(b)(2). "Vendor-assisted" means only a store employee has access to the tobacco product and assists the customer by supplying the product. The customer does not take possession of the product until it is purchased. 28-3 Smoking Prohibited in Town-owned Vehicles and Facilities. Smoking is prohibited in all town-owned vehicles, including jitneys and buses and other means of public transit under the authority of the town, and all enclosed facilities owned and/or controlled by the town. 28-4 Smoking Prohibited in Public Parks and Town Open Spaces. (a) Smoking is prohibited in all public parks, whether in an enclosed area or an unenclosed area. (b) Smoking is prohibited in all town open spaces, whether in an enclosed area or an unenclosed area. 28-5 Smoking Prohibited in Certain Public Places. (a) Smoking is prohibited in all outdoor eating areas, as defined herein. (b) Smoking is prohibited within twenty-five (25) feet of any entrance, exit, or opening to a public building. (c) Smoking is prohibited in all public events, and at events or functions for which the Town Manager has issued a Special Event Permit. (d) Smoking is prohibited in all enclosed public places within the town, including, but not limited to, the following places: (1) Elevators; (2) Buses, taxicabs, and other means of public transit under the authority of the town and ticket, boarding, and waiting areas of public transit depots; (3) Restrooms; (4) Service lines; (5) Retail stores; (6) All areas available to and customarily used by the general public in all business and nonprofit entities patronized by the public, including but not limited to offices (such as attorneys, doctors, and other professionals), banks, laundromats, malls, hotels and motels and the individual rooms therein; (7) Restaurants; Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 7 of 15 (8) Bars; (9) Public areas of aquariums, galleries, libraries or museums when open to the public; (10) Any facility that is primarily used for exhibiting motion pictures, stage productions, lectures, musical recitals or other similar performances; (11) Sports arenas and convention halls; (12) Every room, chamber, place of meeting or public assembly, including school buildings under the control of any board, council, commission, committee including joint committees, or agencies of the town or any political subdivision of the state during such time as a public meeting is in progress, to the extent such place is subject to the jurisdiction of the town; (13) Waiting rooms, hallways, wards and rooms of health care facilities, including, but not limited to, hospitals, clinics, physical therapy, mental health, and drug and alcohol treatment facilities, doctors' and dentists' offices; (14) Lobbies, hallways and other common areas in senior citizen residences, nursing homes, and child-care facilities; (15) Multi-unit common areas; (16) Lobbies, hallways and other common areas in multiple-unit comt'nercial facilities; (17) Polling places. (b) Notwithstanding any other provisions of this section, any owner, operator, manager or other person who controls any establishment or facility may declare that entire establishment or facility as a non-smoking establishment. 28-6 Smoking Regulated in Places of Employment. (a) Each employer having an enclosed place of employment located within the town shall adopt, implement, make known and maintain a written smoking policy that shall contain the following requirements: Smoking is prohibited in all enclosed facilities within a place of employment without exception. This includes common work areas, auditoriums, classrooms, conference and meeting rooms, private offices, elevators, hallways, medical facilities, cafeterias, employee lounges, stairs, restrooms, non-personal vehicles and all other enclosed facilities. (b) The smoking policy shall be communicated to all employees within thirty (30) days of its adoption, and at least annually thereafter. (c) All employers shall comply with these non-smoking provisions and shall be responsible for their implementation in their places of employment. (d) "No Smoking" signs shall be conspicuously posted at building entrances and in employee lounges, cafeterias and lunchrooms. (e) All employers shall supply a written copy of the smoking policy to any existing or prospective employee. (f) Places of employment exempt from the prohibition on smoking in other sections of this chapter shall also be exempt from this section. Torn of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 8 of 15 28-7 Smoking Prohibited in Multi-unit Common Areas and in Multi-unit Residences. (a) Smoking is prohibited in all multi-unit common areas except that a landlord may designate a portion of the outdoor area of the premises as a smoking area as provided in paragraph (b) below. (b) A designated smoking area: (1) Must be located at least twenty-five (25) feet from any indoor area where smoking is prohibited; (2) Must not include, and must be at least twenty-five (25) feet from, outdoor areas primarily used by children including, but not limited to, areas improved or designated for play or swimming; (3) Must be no more than 25% of the total outdoor area of the premises for which it is designated; (4) Must have a clearly marked perimeter; (5) Must be identified by conspicuous signs; and (6) Must not overlap with any area in which smoking is otherwise prohibited by this chapter or other provisions of this Code, state law, or federal law. (c) Non-smoking units required in multi-unit residences: (1) New multi-unit residences: In every multi-unit residence that receives a certificate of occupancy after [insert effective date of this ordinance], one hundred percent (100%) of the units (including private outdoor spaces associated with such units, such as balconies, patios and decks), shall be non-smoking units by law. (A) Required Lease Terrns: Every lease or other agreement for the occupancy of a unit in a new multi-unit residence shall include: 1. A clause stating that smoking is prohibited in the unit; 2. A clause stating that it is a material breach of the lease or agreement to violate any law regulating smoking while on the premises, smoke in any unit, or smoke on any multi-unit common area in which smoking is prohibited; and 3. A clause stating that all lawful occupants of the multi-unit residence are express third-party beneficiaries of the above-required clauses. (B) The California Apartment Association's Form 34.0, revised January 2007, meets the requirements for lease terms as outlined and is an option for use to comply with this subsection. (2) Existing multi-unit residences: In every multi-unit residence already existing on [insert the effective date of this ordinance], one hundred percent (100%) of the units (including private outdoor spaces associated with such units, such as balconies, patios and decks), shall by law be non-smoking units by July 1, 2014. A landlord may make units non-smoking prior to July 1, 2014. (A) Landlords shall, by [insert the date 60 days after effective date of this ordinance], notify each existing and new tenant as of [insert the effective date of this ordinance], of the lease terms required by this chapter. (B) Required Lease Terms: Every new lease, lease renewal or other agreement for the occupancy of a unit in a multi-unit residence made on or after [insert the effective date of this ordinance], shall include: 1. A clause stating that smoking is prohibited in the unit; Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 9 of 15 2. A clause stating that it is a material breach of the lease or agreement to violate any law regulating smoking while on the premises, smoke in any unit, or smoke on any multi-unit common area in which smoking is prohibited; and 3. A clause stating that all lawful occupants of the multi-unit residence are express third-party beneficiaries of the above-required clauses. 4. Prior to July 1, 2014, this subsection 28-7(c)(2)(B) shall not apply to renewal of a lease or other agreement for occupancy with a person lawfully occupying the unit on [insert the effective date of this ordinance]. On July 1, 2014, this exception shall expire and all leases, lease renewals and other agreements for occupancy shall comply with this subsection 28-7(c)(2)(B). C. The California Apartment Association's Form 34.0, revised January 2007, meets the requirements for lease terms as outlined and is an option for use to comply with this subsection. (d) The lease or agreement terms required by subsection (c)(1) or (c)(2) of this section are hereby incorporated by force of law into any lease or other agreement for the occupancy of a unit in a multi-unit residence made on or after [insert the effective date of this ordinance] that does not comply fully with subsection (c)(1) or (c)(2) of this section. # (e) A tenant who breaches the smoking regulations of a lease or knowingly allows another person to do so shall be liable to: (1) the landlord; and (2) to any lawful occupant of the multi-unit residence who is exposed to secondhand smoke as a result of that breach. A landlord shall not be liable to any person for a tenant's breach of smoking regulations if the landlord has fully complied with the requirements of this chapter. (f) Failure to enforce any smoking regulation of a lease or agreement on one or more occasions shall not constitute a waiver of the lease or agreement provisions required by this section and shall not prevent future enforcement of any such smoking regulation on another occasion. (g) Disclosure of Dedicated Smoking Area. Every landlord shall maintain a diagram that illustrates the precise location and configuration of any designated smoking area. This diagram shall accompany every new lease, lease renewal or other agreement for the occupancy of a unit in a multi-unit residence after [insert the effective date of this ordinance]. (h) Prohibitions and Duties Generally: (1) No person shall smoke or knowingly permit smoking in an area of the premises under his or her legal or de facto control in which smoking is prohibited by a lease or agreement term, by this chapter, this Code, or any other state or federal law, provided, however, that this prohibition does not apply to a person who is already compelled to act under state or federal law. (2) No person shall knowingly permit the presence or placement of ash trays, cans, or other receptacles within multi-unit common areas under his or her legal or de facto control in which smoking is prohibited by this chapter, this Code, or any other state or federal law, including, for example and without limitation, within at least twenty-five (25) feet of any non-smoking area. (3) "No smoking" signs, with letters of no less than one inch in height or the international "No smoking" symbol (consisting of a pictorial representation of a burning cigarette enclosed in a red circle crossed by a red bar) shall be clearly and conspicuously Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 10 of 15 posted in the multi-unit common areas, at every entrance and exit, and on every floor near an elevator or common stairwell. Such signs shall be maintained by the landlord. Signs must be posted in sufficient numbers and locations in the multi-unit common areas and at entrances and exits to make areas where smoking is prohibited obvious to a reasonable person. The absence of signs shall not be a defense to a violation of any provision of this section. (4) This chapter shall not create additional liability for a landlord for a person's violation of this chapter provided that the landlord has fully complied with the required disclosure, sign posting, and other provisions of this chapter. (5) The provisions of this chapter are restrictive only and establish no new rights for a smoker. (6) Notwithstanding any provision of this chapter or other provisions of this Code or failure to restrict smoking under this chapter, including any explicit or implicit provision that allows smoking, nothing in this chapter shall operate to limit a person's legal rights under other laws with regard to smoking, including, for example, claims of nuisance, trespass, property damage, and personal injury. 28-8 Smoking Not Prohibited; Owner Option to Prohibit. (a) Except as otherwise prohibited by county, state or federal law, the following areas shall not be subject to the smoking restrictions of this chapter: (1) Private residences, except when used as a child care or residential health care facility, or except as set forth in Section 28-7; (2) Private vehicles; (3) Retail tobacco stores; (4) Unenclosed areas where smoking is not otherwise prohibited by law; (5) An enclosed place of employment that employs only the owner and no other employee or employees, provided that: (A) The place of employment is not a public place, and (B) The enclosed area containing the place of employment does not share a ventilation system with any other enclosed place of employment or public place. (b) Nothing in this section shall be construed to prevent an owner, operator, manager or other person who controls any business, establishment or facility from declaring that entire business, establishment or facility as non-smoking. 28-9 Duty of Person, Employer, Business or Non-profit Entity. (a) No person, employer, business, or nonprofit entity shall knowingly permit the smoking of tobacco products in an area which is under the legal or actual control of the person, employer, business, or nonprofit entity and in which smoking is prohibited by law and the person, employer, business or nonprofit entity is not otherwise compelled to act under state or federal law. (b) No person, employer, business, or nonprofit entity shall knowingly or intentionally permit the presence or placement of ash receptacles, such as, for example, ashtrays or ash cans, within an area that is under the legal or actual of the person, employer, business, or nonprofit entity and in which smoking is prohibited. 28-10 Posting of Signs. Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 11 of 15 (a) The person, employer, business or non-profit entity with legal or actual control of a building or area where smoking is prohibited by this chapter shall clearly and conspicuously post "No Smoking" signs at the entrances of every building, as well as in other areas under their control where smoking is prohibited under this chapter. However, where an entire building or premises is non-smoking, only entrances need be signed, provided that they are signed to that effect. (b) Every retail tobacco store and every vendor of tobacco products shall visibly post signage pursuant to California Business and Professions Code section 22952, or successor sections thereto, which signage shall expressly reference California Penal Code section 308, or successor sections thereto, at the entrance of any premises subject to regulation under section 28-11 of this chapter and applicable state and/or federal law. (c) The absence of signs shall not be a defense to a violation of any provision of this chapter. 28-11 Sale of Tobacco Products Regulated. (a) It shall be unlawful for any person, business, or retail tobacco store to sell, permit to be sold, or offer for sale any tobacco product by means of self-service merchandising, or by any means other than vendor-assisted sales. (b) It shall be unlawful for any person, business, or retail tobacco store to locate, install, keep, maintain or use, or permit the location, installation, keeping, maintenance or use on his, her or its premises any vending machine for the purpose of selling or distributing any tobacco product. (c) No person, business, retail tobacco store, or owner, manager or operator of any establislunent subject to provisions of this section shall sell, offer to sell or pen-nit to be sold any tobacco product to an individual without requesting and examining identification establishing the purchaser's age as eighteen years or greater unless the seller has some other clear and convincing basis for knowing the buyer's age. (d) Any person, business, retail tobacco store or other establishment subject to provisions of this section shall post plainly visible signs at the point of purchase of tobacco products which comply with the signage requirements of California Business and Professions Code section 22952, or successor sections thereto. These signs shall be updated to conform to any subsequent state or federal requirements and/or amendments to California Business and Professions Code section 308(a), or successor sections thereto. (e) Any person, business, retail tobacco store or other establishment subject to provisions of this section shall post signs at each entrance to any premises on which any tobacco product is offered for sale. Such signs shall be plainly visible from outside the premises, shall state, "Warning: The fine for buying tobacco for anyone under 18 is $200" in letters at least one-half tall, and shall cite California Penal Code 308(a) or successor sections thereto. These signs shall be updated to conform to any subsequent state or federal requirements and/or amendments to Penal Code section 308(a), or successor sections thereto. (f) Any person, business, retail tobacco store, or owner, manager or operator of any establishment subject to provisions of this section who violates any provision of this section shall be deemed guilty of a misdemeanor and upon conviction shall be subject to a fine as set forth in Penal Code section 308(a), or successor sections thereto. Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 12 of 15 28-12 Enforcement. (a) The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. (b) Notice of these regulations shall be given to all applicants for a business license or renewal thereof. However, lack of such notice shall be no defense to a violation of this chapter. (c) Enforcement of this chapter shall be the responsibility of the town manager, who shall have the powers enumerated in this chapter and in chapter 31 of the Tiburon Municipal Code as well as the power to issue citations for violation of the chapter in accordance with section 853.6 of the California Penal Code, or successor sections thereto. (d) The health department shall require, while an establishment is undergoing otherwise mandated inspections, certification from the owner, manager, operator or other person having control of such establishment that all requirements of this chapter have been complied with. (e) Health department inspectors, on their regular restaurant inspections, shall check for compliance with sign posting requirements. Restaurants shall be notified in writing of any violations on the standard health inspection report. Further, such violatidns shall be reported in writing by the health department, on a quarterly basis, to the administrative authority in the jurisdiction where such violations occur. (f) Notwithstanding any other provision of this chapter, a private citizen may bring legal action to enforce this chapter. 28-13 Violations and Penalties. (a) It is unlawful for any person who owns, manages, operates or otherwise controls the use of any premises or areas subject to regulation under sections 28-3, 28-4, 28-5, 28-6, 28-7, 28-9, 28-10, or 28-11 of this chapter to fail to comply with any of its provisions. (b) It is unlawful for any person to smoke in any area where smoking is prohibited under provisions of this chapter. (c) Any person, business, retail tobacco store, or owner, manager or operator of any establishment subject to this chapter who violates any provision of this chapter, other than section 28-11, shall be deemed guilty of an infraction and upon conviction shall be subject to payment of a fine not to exceed $100 or the limits set forth in Government Code section 36900, as may be amended from time to time, whichever is lower. (d) Violations of section 28-11 shall be a misdemeanor. 28-14 Non-retaliation. No person or employer shall discharge, refuse to hire or in any manner retaliate against any employee or applicant for employment because such employee or applicant exercises any right to a smoke-free environment afforded by this chapter. 28-15 Public Education. The town manager or his/her designee will engage in a continuing educational program to explain and clarify the purposes and requirements of this chapter, as well as a guide to Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 13 of 15 owners, operators and managers with compliance. However, lack of such education shall be no defense to a violation of this chapter. 28-16 Governmental Cooperation. The town manager or his/her designee may annually request other governmental and educational agencies having facilities within the town to establish local operating procedures in cooperation and compliance with this chapter. This includes urging all federal, state, county and school district agencies to update their existing smoking control regulations to be consistent with current health findings regarding environmental tobacco smoke. 28-17 Other Applicable Laws. It is the intent of the town to supplement applicable state and federal law and not to duplicate or contradict such law, and this chapter shall be construed in a manner consistent with that intention. This chapter shall not be interpreted or construed to permit smoking where it is otherwise restricted by other applicable laws. SECTION 4. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The Town Council of the Town of Tiburon hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. SECTION 5. PUBLICATION AND EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days after the date of adoption. Pursuant to the provisions of the California Government Code, a summary of this ordinance shall be prepared by the Town Attorney. At least five (5) days prior to the Town Council meeting at which adoption of the ordinance is scheduled, the Town Clerk shall (1) publish the summary in a newspaper of general circulation in the Town of Tiburon, and (2) post in the office of the Town Clerk a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the Town Clerk shall (1) publish the summary in a newspaper of general circulation in the Town of Tiburon, and (2) post in the office of the Town Clerk a certified copy of the ordinance along with the names of those Council members voting for and against the ordinance. Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 14 of 15 This Ordinance was introduced at a regular meeting of the Town Council of the Town of Tiburon on 2011, and was adopted at a regular meeting of the Town Council of the Town of Tiburon on , 2011, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JEFF SLAVITZ, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK S: IAdministrationlTown CouncibOrdinancesismoking draft 5-17-11 clean.doc Town of Tiburon Ordinance No. xxx N. S. Committee Draft 511612011 Page 15 of 15 CONSENT CALENDAR 1. Town Council Minutes - Adopt minutes of October 6, 2010 Regular Meeting (Town Clerk Crane Iacopi) 2. Town Investment Summary - Accept August 2010 report (Director of Administrative Services Bigall) 3. Grand Jury Report re: School Resource Officers - Approve Town response and authorize Town Manager to send letter to Grand Jury on behalf of Town Council (Town Attorney Danforth) 4. Non-motorized Transportation Pilot Program (NTTP) for Steps, Lanes and Paths (Cayford, Jefferson, and Upper Raccoon Lane) - Accept project as complete and authorize filing of Notice of Completion (Director of Public Works/Town Engineer Nguyen) A 5. Town representation on Marin Emergency Radio Authority Board of Directors - Appoint Captain Dave Hutton as second alternate to represent Town of Tiburon on the MERA Board of Directors (Chief of Police Cronin) MOTION: To approve Consent Calendar Item Nos. 1 through 5, as written. Moved: O'Donnell, seconded by Fraser Vote: AYES: Unanimous ABSENT: Slavitz PUBLIC HEARINGS MM4 1. Smoking Ordinance Revisions - Introduction and First Reading of an Ordinance Repealing Title VI, Chapter 28 (Smoking & Tobacco Regulations) and adopting a new Title VI, Chapter 28 (Smoking & Tobacco Regulations) of the Tiburon Municipal Code - (Director of Community Development Anderson) Director Anderson gave the report. He said that the Town adopted its current smoking and tobacco regulations in 1992. Since that time, he said there have been changes in state smoking laws, increased interest by citizens in the regulation of smoking, and a deeper understanding of the dangers of smoking and exposure to smoke. In response, many communities, both locally and nationally, are adopting more stringent regulations regarding smoking and the sale of tobacco products. In 2008, Anderson said the City of Novato adopted the most restrictive smoking ordinance currently in Marin County, and this ordinance is being used as a model for smoking ordinance updates in least four other municipalities in Marin County. Town Council Minutes #16 -2010 Octobef- 20, 2010 Page 2 EYMBIT NO. NJ- Anderson said that in March 2009, during the annual Town Council/Staff Retreat, the Council directed staff to begin a review of the Town's smoking ordinance provisions for possible modification. Following that, in May 2009, the County's Department of Health and Human Services provided the Town with a red-lined ordinance containing its recommended changes to the Town's ordinance, largely based on the City of Novato's ordinance. In early 2010, Anderson said the Town Council appointed an ad-hoc subcommittee of Councilmembers Fredericks and Fraser to work with and advise staff regarding possible smoking ordinance revisions. He said the Committee met several times, reviewed several drafts, and provided valuable guidance to staff in the development of the current draft ordinance. Because the revisions to the existing ordinance are substantial, Anderson said that a new ordinance was being provided to Council for their consideration. Specifically, this draft ordinance would newly prohibit smoking in the following areas: • All public parks under the Town's control • All hotel and motel rooms P • 50% of existing apartment units on premises with 4 or more units, including all common areas therein, whether enclosed or not • 75% of new apartment units on premises with 4 or more units, including all common areas therein, whether enclosed or not • All outdoor eating areas • All areas with 25 feet of entrances or openings to public buildings and all areas within 25 feet of any entrance or opening to an enclosed area in a multi-unit residence where smoking is prohibited Anderson also noted that smoking in Town open spaces has been prohibited since 1978, but this prohibition is imposed by rules adopted through a chapter of the Municipal Code regulating Open Spaces (Chapter 18). The prohibition on smoking in open spaces is not currently contained within the Town's Smoking Ordinance, and would be added to it. The draft ordinance would also eliminate an existing exception that allows smoking in cocktail lounge areas of restaurants. Unlike the City of Novato ordinance, Anderson said the Town's draft ordinance would not impose extensive prohibitions on smoking in unenclosed public places (other than those included in the list above), such as at unenclosed public events and on public streets. He said that Town staff considers smoking prohibitions in such unenclosed areas to be largely symbolic in nature and probably unenforceable in practice. The draft ordinance, for the same reason, would also not include the City of Novato provisions on second-hand smoke, which would prohibit, and declare a public nuisance and trespass, the presence of second hand smoke within a "reasonable distance" of any entrance or opening to a place of human habitation, including all dwellings, dwelling units, and residential uses and structures. A reasonable distance in the Novato ordinance is defined as twenty (20) feet or more. Town Council Minutes #16 -2010 October 20, 2010 Page 3 Anderson addressed the issue of smoking in multi-family dwellings. He said the Town's draft ordinance provisions prohibiting smoking in 50% of multi-unit residence units would not be retroactive to current lessees who smoke; the designation of a non-smoking apartment unit would not be applicable to the current leaseholder as long as that person' lease remains continuously in effect. The Director said the ordinance would take effect 180 days from its adoption to allow sufficient time for affected landlords, owners and businesses to comply with its provisions. Compliance could include new or additional "no-smoking" or tobacco-related signs; designation and listing of 50% of units as non-smoking units in multi-unit residences; preparation of floor plan drawings and amendments to lease documents for units in multi-unit residence complexes; installation and marking of designated smoking areas (optional) in multi-unit residences; and compliance with regulations regarding the placement of ash cans, ash trays, and other smoking-related receptacles. Outreach Anderson said the ad hoc Council Committee and staff held an informational meeting in July 2010 to which all owners of the 51 affected apartment complexes in Tiburon were invited. Five owners/managers attended the meeting and provided comments that focused on clarifying the landlord liability provisions, reducing the extent of required signage, which could become unsightly and burdensome. Revisions have been incorporated into the draft ordinance in an attempt to address these concerns. He said that hotel managers, restaurant proprietors, homeowner association contacts, the Chamber of Commerce, the County Health & Human Services Department, and interested persons who have previously contacted the Town on this issue were also notified of the public hearing. Finally, Anderson said that a draft of the proposed ordinance has been on the Town website in the "News" box since July. Director Anderson said that staff anticipates that there would be no direct fiscal impacts to the Town from adoption and implementation of the Ordinance. Currently, Town staff is required to devote little time or effort in responding to smoking complaints or violations of Chapter 28 provisions. The revised regulations could result in an increased number of complaints and enforcement actions that would primarily be the responsibility of the Police Department to enforce. However, the increased enforcement efforts are not expected to require additional personnel or resources at this time. Anderson said that adoption of the proposed ordinance is categorically exempt from the requirements of the California Enviromnental Quality Act (CEQA) pursuant to Sections 15308 and 15061(b)(3) of the CEQA Guidelines. He recommended that Council conduct a public hearing on the proposed ordinance and consider passing first reading, if appropriate. Town Council Minutes #16 -2010 October 20, 2010 Page 4 Mayor Collins asked if there were any questions from the Council. Councilmember Fredericks asked whether marijuana smoking, and sidestream smoke, would be restricted if Proposition 19 passed. Town Attorney Danforth said that the ordinance defined smoking to include "other smokeable materials" and if Proposition 19 passed, it would not ban marijuana smoking outright, but would limit it like other smoke. Councilmember Fredericks said that she found the definitions in the proposed ordinance to be confusing. She said that it seemed indicate that only tobacco products containing nicotine were harmful, while a recent study published by the Institute for Local Government also described the adverse health effects of `side stream' marijuana smoke. Town Manager Curran said the ordinance would be written to be as expansive as possible to include all smokeable materials, as noted by the Town Attorney. The Town Attorney said that while the Town could not protect people from the ill effects of smoke completely, it could regulate where people smoked. Mayor Collins suggested expanding the language to include more than just tobacco smoke in the definition section of the ordinance. Town Attorney Danforth clarified that the section defining "'tobacco products" applied only to the regulation of sales, not the broader definition of smoking. Councilmember O'Donnell asked for clarification about the proposed ban on smoking at Town or public events, such as the Art Festival, Classic Car Show, and Friday Nights on Main. Director Anderson said the ordinance did not contemplate regulation of smoke in unenclosed public areas, but if there was an enclosed tent, for instance, it could be regulated. Mayor Collins and Councilmember Fraser said they could support a broader application of the "public event- related smoking prohibition, including public events that are not strictly enclosed. Council asked about enforcement issues. Chief Cronin said that violations could be enforced through administrative citation or more stringently, they could be treated as a misdemeanor [in certain instances] or as an infraction. He said that the latter options would require prosecution by the Town Attorney and that it would be preferable to use the administrative citation process, in his opinion. Chief Cronin noted that compliance with any new ordinance takes a while to take hold, and cited the example of legislation banning smoking in bars. He said that he viewed it as an opportunity to educate people about the law and expressed optimism that "we almost always get compliance" in the end. Mayor Collins said that he would support the prohibition of smoking at all special (public) events. He also asked about prohibition of smoking at health facilities and the workplace. Town Attorney Danforth said that smoking was currently banned under state law at places of employment. Town Council Minutes #16 -2010 October 20, 2010 Page 5 Director Anderson noted that Section 28-5 and 28-6 of the Town's ordinance also listed places of employment, waiting rooms, health facilities, etc., where smoking is prohibited. Mayor Collins opened the public hearing. The following members of the public spoke: • Vicky Tuorto, Hilarita resident, said that the grandfathering of long-term tenants under the proposed ordinance offered no protection to current, non-smoking tenants; she said that property managers might be willing to take direction from the Town to relocate people to non-smoking (or smoking) areas if the ordinance required it. Director Anderson said that he was not aware of any ordinances that applied retroactively to existing tenants although some might exist; he said that they would be difficult to enforce. Councilmember Fraser asked about common ventilation systems (in multi-family dwellings). Anderson said the ordinance would require separate ventilation systems in all new construction but not existing dwellings. He said that landlords who sought to create 50% non-smoking areas under the new ordinance would have to create "functionally separate areas" to the extent practicable. • Dave Albert asked about smoking in condominiums; Anderson said that smoking was allowed in owned units, even if they were rented out to other parties; • Bob Curry, County of Marin, speaking on behalf of the Marin Smoke-Free Coalition, said that compliance was very high in Marin County because residents understand the dangers of smoke and second-hand smoke; he also commented that while some ordinances don't allow grandfathering of tenants, some jurisdictions (outside of Marin County, such as Richmond and Contra Costa) had adopted stricter ordinances; he said that the County of Marin's ordinance did not address this issue but that it was currently being worked on; • Barbara Warren, Ned's Way, said that her breathing was affected by smoking neighbors and that there was no way to escape the smoke which she said came through the walls and into her open windows; she asked the Council to consider adopting a stricter ordinance because smoking "killed people" and costs millions of dollars in health costs; • Judith Lorenzo, Bay Area Resources, said that their smoking cessation classes had a high success rate and offered an important support resource; she said she could be contacted at smokefreemarin.com; • Elaine Enochs also asked the Council to consider a stricter ordinance that did not grandfather tenants; she said that smoking was a problem where she lived and that air purifiers did not work. Mayor Collins closed the public hearing. Town Council Minutes #16 -2010 October- 20, 2010 Page 6 In response to the public testimony, Councilmember Fredericks asked at what point a landlord would be required to take action, under the proposed ordinance, to address the issues of smokers and non-smokers. Anderson said that by the time the proposed ordinance goes into effect (180 days), a landlord would have to have designated which 50% of the units would be non-smoking, but noted that there would be no requirement to relocate tenants. Councilmember Fredericks asked what the average duration of a lease was, and whether month-to-month tenancies would be affected. Town Attorney Danforth said that as long as a tenant's lease was continually in place, this ordinance would not require termination. She said that the ordinance did not require landlords to do anything about existing tenancies. Mayor Collins said that he would be in favor on considering a "tougher" ordinance to address these issues. Councilmember Fraser concurred, and asked whether it would be possible to create an ordinance that provided landlords with a reasonable time frame to "reshuffle the deck" with existing tenants. Councilmember O'Donnell and Fredericks said they could also support a stricter ordinance. Mayor Collins added that "we are the trustees of public health" as elected officials. Town Attorney Danforth said that it might be possible to require landlords to move smoking tenants to smoking areas when vacancies occur; the consequence would be that they (the smoking tenants) would lose their existing units. Town Manager Curran said that it might be possible to strengthen the ordinance to provide for "clustering"'of smoking and non-smoking tenants, but in any event, it would stop short of evicting people. Councilmember Fraser suggested adding a due date by which all tenants must be "reshuffled". Town Attorney Danforth said that further research would have to be done by staff to look into these ideas. O'Donnell said he would also be in favor of banning smoking at outdoor public gatherings sponsored or encouraged by the Town to protect children and families. Town Manager Curran said this could be regulated, at least in part, through the special event permit process. Councilmember Fredericks suggested further modifications to Section 16-B of the proposed ordinance to include the right of smokers to breathe tobacco-free air, as well the modifications to address the issues of side-stream smoke (in Sections A-10,11). Town Council Minutes #16 -2010 October- 20, 2010 Page 7 Town Manager Curran said that staff would work on incorporating the Council's comments into a new draft of the ordinance which would be circulated first to the Council subcommittee and then to the Council. TOWN COUNCIL REPORTS None. TOWN MANAGER'S REPORT Town Manager Curran reported to the Council on a proposal by the Chamber of Commerce to close Main Street and include an artificial ice rink as part of its annual holiday festivities. Curran said she asked the Council's permission for any new street closure; Council indicated its willingness to move forward with these plans, as requested. Town Manager Curran also reported on a request by Steve Sears for an inforftiation kiosk of some sort to be placed in the downtown area. She asked Council's guidance to discuss this issue with the Downtown subcommittee. Councihnember Fredericks said that she would prefer not to see a structure in the ferry plaza area, and suggested that information could be obtained in the area where newspaper racks were currently located across from the ferry gate. Town Manager Curran said the kiosk might provide directions and other information important to tourists; however, she said that no particular location had yet been identified. Councihnember Fraser asked about the possibility of electronic signage; he also said this could be part of a broader idea of "branding" for the Town. Town Manager Curran said that all these considerations could be discussed by the committee. She also said that the signage at Blackie's Pasture and the Cove was being studied in the context of the Town's sign policy and the "branding" described by Councilmember Fraser to make them more attractive. Finally, Town Manager Curran recommended the formation of a council subcommittee to study the recommendations of staff and outside counsel in the drafting of a new long-term contract with Mill Valley Refuse Service. She asked Councilmember O'Donnell and Mayor Collins whether they would be willing to serve, now that the litigation from the Del Mar lawsuit had been resolved. Both members said they would be willing to serve. Town Council Minutes #16 -2010 October 20, 2010 Page 8 Scott Anderson From: Ellen Pesavento [epeaavento@earthlink.net] Sent: Saturday, June 11, 2011 10:13 AM To: Scott Anderson Cc: Ellen Pesavento Subject: Tiburon: Smoking ordinance Dear Scott, I was very happy to receive your notice about the new amendments that will be discussed at the July 6th meeting. I will be out of town at that time and so I wanted to write to you directly. Prior to living in Tiburon (in a five unit townhouse building), I lived for ten years in a 5 unit building in Greenbrae. The first five years or so were great but the last few years were a nightmare because of smoking on the premises. My downstairs neighbor liked to smoke pot in his bathroom which was directly below mine and somehow the smoke traveled through the pipes or vents into my place which was truly nauseating. To make matters worse, he liked to smoke cigarettes on his porch which was also directly under my porch. When I tried to talk to him or the management about this, I was told that he was within his rights to smoke whatever and wherever he pleased. My youngest sister died nearly five years ago from lung cancer and she was a smoker so I have personal reasons for being opposed to smoking. The changes have been so great in regard to restaurants, airlines and other public places and this is the one big change that must happen! I applaud all of you for your work on our behalf for our health depends on this! Sincere best wishes, Ellen Pesavento Tiburon, CA x NTO. Page 1 of 1 Scott Anderson From: Diane Crane lacopi Sent: Monday, June 13, 2011 11:35 AM To: Scott Anderson Subject: Town smoking ordinance Dear Mr. Anderson, Thank you for your notice of the proposed amendments to the Town's smoking ordinance which I received (promptly, I might add) in the mail on June 10, 2011. I appreciate your keeping "us tenants" informed of the goings-on in the Town. Best regards, Diane Crane lacopi 99 Marinero Circle, No. 205 Tiburon CA 94920 E,', - Lr -TT-13IT NO. VT_ 6/13/2011 To: From: Mayor and Members of the Town Council Community Development Department Town Council Meeting July 6, 2011 . Agenda Item: PP Subject: 65 Reed Ranch Road: Appeal of Site Plan and Architectural Review Approval for Construction of Additions to an Existing Single-Family Dwelling; James Parsons and Andrea Hong, Owners; Jeffrey Wong, Applicant; Dan Mihalovich, Appellant; File #711011; Assessor's Parcel No.O 01-35 Reviewed By: PROJECT DATA Address: 65 Reed Ranch Road Assessor's Parcel: 038-301-35 File Number: 711011 Property Owners: James Parsons and Andrea Hong Applicant: Jeffrey Wong (Architect) Appellant: Dan Mihalovich Lot Size: 18,729 Square Feet Zoning: RO-2 (Two-Family Residential) General Plan: Medium Density Residential Flood Zone: X (outside 500-year flood event) BACKGROUND On May 19, 2011, the Design Review Board approved a Site Plan and Architectural Review application to construct additions to an existing single-family dwelling on property located at 65 Reed Ranch Road. The neighboring resident at 67 Reed Ranch Road, hereinafter referred to as the "appellant," has filed a timely appeal of the Board's decision to the Town Council. PROJECT DESCRIPTION The applicants requested approval for the construction of additions to an existing single-family dwelling on property located at 65 Reed Ranch Road. The property is currently developed with a two-story dwelling and detached two-car garage. The existing detached garage at the northeast corner of the lot would be demolished. A new two- story addition would be constructed. The lower floor would include a new three-car garage and a workshop space to the rear. A doorway and hallway area would be situated between the workshop space and the exterior wall on the western side of the lower level. The upper floor of TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 TOWN OF TIBURON PAGE 1 OF 6 the addition would include a guest bedroom and a model train room. The upper level of the addition would be situated at the same level as the existing entry deck in front of the house. The upper level would connect to the interior of the main level of the house at the family room. The proposed addition would increase the lot coverage by 10 square feet to a total of 2,676 square feet (14.3%), which would be less than the 15.0% maximum lot coverage for a lot of this size. The project would replace the existing 484 square foot garage with 1,436 square feet of garage and living space, resulting in a calculated floor area of 3,867 square feet, which is 6 square feet below the 3,873 square foot floor area ratio guideline for a lot of this size. Overall, the project would result in an increase of 952 square feet of floor area over the size of the existing house and garage. REVIEW BY THE DESIGN REVIEW BOARD March 17, 2011 Meeting This application was first reviewed at the March 17, 2011 Design Review Board meeting. The original project design proposed to construct a new garage to be attached to the existing house and included a laundry room and bathroom. A second story storage loft was also proposed with a new entry deck and stairs to connect the second story loft to the front of the home. The existing two-car garage on the site was to remain. At that meeting, the owners of the adjacent home to the west at 67 Reed Ranch Road (appellants) raised objections to the proposed project. They were concerned about the proximity and visual mass and bulk of the proposed addition, along with potential noise and privacy impacts. The Design Review Board shared many of these concerns, particularly regarding the visual mass of the building and its proximity to the home at 67 Reed Ranch Road. The Board was also concerned with the potential removal of vegetation along the western side of the property that would screen the addition from the neighboring residence. The Board suggested that the height of the addition possibly be reduced, that the applicant consider other less sensitive locations for the addition, and that more be done to properly attach the addition to the main building. The Board continued the application to the April 21, 2011 meeting to allow the applicant time to redesign the proposed addition. April 21, 2011 Meeting The applicant submitted revised plans that replaced the proposed addition with a revised design that was moved to the east, away from 67 Reed Ranch Road. The existing detached garage at the northeast corner of the lot was to be demolished and replaced with a new two-story addition that would be 24 feet, 6 inches in height. The lower level of the addition would include an attached three-car garage and a workshop space to the rear. A doorway and hallway area would be situated between the workshop space and the exterior wall on the western side of the lower level. The upper floor of the addition would include a guest bedroom and a model train room. The upper level of the addition would be situated at the same level as the existing entry deck in front of the house. The upper level would connect to the interior of the main level of the house at the family TOWN OF TIBURON PAGE 2 OF 6 room. The revised project design reduced the proposed lot coverage by 108 square feet and reduced the proposed floor area by one square foot from the previous application. At the April 21, 2011 meeting, the consensus of the Board was that the project was generally responsive to the previously raised concerns. However, the Board still had issues with the overall height and visual mass of the proposed addition, particularly the "monitor" section above the upper floor addition, and the amount and/or pattern of windows. The Board gave direction to the applicant on modifications that could possibly address these concerns and continued the application to the May 5, 2011 meeting to allow the applicant time to once again redesign the proposed addition. On May 4, the applicant requested a continuance to the May 19, 2011 Board meeting and the application was not heard at the May 5 meeting. May 19, 2011 Meeting The applicant subsequently submitted revised plans which narrowed the monitor section of the proposed upper floor addition and reduced its height by 6 inches to a height of 24 feet. The number and area of the windows on the western side of the addition, facing the home at 67 Reed Ranch Road, were reduced. Minor changes were made to the overall dimensions of the proposed addition, most amounting to changes of less than one foot. The roof design of the upper floor was modified to connect more seamlessly with the roofline of the existing house. The revised project design had the same floor area as the previous design, but increased the lot coverage by 10 square feet to a total of 2,676 square feet (14.3%), which was less than the 15.0% maximum lot coverage for a lot of this size and 98 square feet less than the original application. At the May 19, 2011 meeting, the consensus of the Design Review Board was that the project revisions had adequately addressed the Board's previous concerns. In order to ensure that the walkway leading to the front entry would be properly screened from the home at 67 Reed Ranch Road, the Board added two conditions of approval to the project that required that grading be minimized to preserve the existing trees along the western side of the property, and that two (2) 36-inch box native trees be planted to screen the top of the entry walkway. The Board voted 4-1 (Boardmember Kricensky opposed) to conditionally approve the project with the additional conditions of approval. On May 31, 2011, the appellants filed a timely appeal of this decision (Exhibit 1). BASIS FOR THE APPEAL There are four (4) grounds upon which the appeal is based: Ground #1: The bulk, height and overall size of the project design are excessive for this property. Staff Response: The subject property includes a portion of the old Northwestern Pacific Railroad right-of-way at the rear. The total size of the lot for purposes of calculating the floor area ratio and other zoning regulations for this property includes the combined size of the original lot within the Reedland Woods subdivision and this portion of railroad property. The neighboring properties and 61 & 63 Reed Ranch Road also include portions of the old railroad right-of-way. TOWN OF TIBURON PAGE 3 OF 6 The Design Review Board discussed the issue of the total floor area of the project (only 6 square feet below the floor area ratio for a lot of this size) and whether the requested floor area was artificially inflated by the inclusion of the area of old railroad right-of-way. It was the consensus of the Board that the size of the project bore a reasonable relationship between the size and scale of improvements and the size of the property, as required by Section 16-52.020 (H[4]) of the Tiburon Zoning Ordinance (Guiding principles in the review of Site Plan and Architectural Review applications). The existing house and proposed addition are sited on the original lot of the subject property, with the rear of the original lot and the old railroad right-of-way left as an open rear yard. Many homes in Tiburon are sited to the front of the lot, leaving the rear yard open for private recreational use, in a manner similar to the project design. Such a design does not necessarily represent an overbuilding of the front of the property, although each project design must reviewed on its own merits to determine if the height, size, and/or bulk of the proposed project bears a reasonable relationship to the character of existing buildings in the vicinity, as required by Section 16-52.020 (H[3]) of the Tiburon Zoning Ordinance. In its deliberations, the Board compared the visual scale of the proposed addition to other residences in the vicinity. The Board required changes to the project design at the April 21, 2011 meeting to lessen the overall height and visual mass of the proposed addition. These changes were made and it was the consensus of the Board that the revised project design was consistent with the visual pattern of other homes in the surrounding neighborhood. Ground #2: Adequate information was not presented regarding the excessive grading required for the project. Staff Response: The floor level of the new three-car garage would be approximately 3 feet, 3 inches lower than the level of the existing two-car garage. The stairway leading up to the front entry of the house would be increased from 10 steps to 15 steps, representing an increased height of approximately 2 feet, 6 inches. The amount of grading necessary to accomplish these elevation changes would be minimal and cannot accurately be characterized as excessive or resulting in a huge cut. The Design Review Board's only concern regarding the potential grading on the site was for the protection of the existing trees along the western side of the site that provide privacy screening between the applicants' and appellant's homes. At the May 19, 2011 meeting, the Board added a condition of approval to the project that required that grading be minimized to preserve the existing trees along the western side of the property. This should adequately protect the trees and preserve their ability to screen the addition from the appellant's residence. Ground #3: Adequate information was not presented regarding changes to the walkway and driveway on the site. Staff Response: The existing front entry to the house is accessed by a series of stairs that lead up to the southern side of a raised landing in front of the front door, with the bottom of the stairs facing the street. The front entrance to the house would remain unchanged, but the landing in front of the entrance would be reconfigured. The existing stairway would be replaced by a new TOWN OF TIBURON RAGE 4 OF 6 stairway that would lead from the western side of the raised landing and curve to the north. The bottom of the stairs would still face the street, but would be moved approximately 15 feet to the west, closer to the appellant's home. The appellant has raised concerns that a new retaining wall might be necessary or that an existing berm might be removed as part of the project. Based upon the change in grade shown on the plans, any future retaining wall would be less than 42 inches in height, and therefore would not be subject to design review approval. The Design Review Board emphasized the retention of the mature screening trees, rather than a berm, for protection of the appellant's privacy. In an e-mail submitted subsequent to filing the appeal, the appellant contends that additional information, including story poles for the proposed walkway, is necessary to understand the changes to the stairway and entry to the house. The Design Review Board noted that the front entry to the house would remain unchanged, with a raised landing at the same level and in the same general location as the current landing. Therefore, the Board determined that the presence of the existing landing gave theirs a clear understanding of the revised entry improvements. During the Design Review Board's review of this application, the appellant raised concerns about potential privacy impacts arising from the relocated stairway. The appellant's letter to the Board dated May 16, 2011 (Exhibit 17) includes photographs of the approximate location of the stairway taken from several windows of the appellant's home. In general, potential privacy impacts from entry stairways are less than from other more heavily used outdoor areas, such as decks or patios, as such stairs are typically used to get a person quickly in and out of the house. The proposed entry stairs would be located approximately 26 feet from the appellant's house, with substantial mature vegetation along the western side of the property to screen views of the stairs. To further ensure the effectiveness of this privacy screening, the Design Review Board added two conditions of approval to the project intended to preserve the existing landscaping and requiring that two 36-inch box native trees be planted that would screen the top of the entry walkway. The precise location of the proposed driveway is not clearly shown on the submitted plans. However, the location of the proposed three-car garage in relation to the existing two-car garage is indicated on the plans. The Design Review Board determined that the width of the proposed driveway was not out of character with its surroundings, as other homes in the vicinity have three-car garages. Ground #4: Existing and proposed landscaping may be inadequate to provide privacy screening. Staff Response: At the March 17, 2011 meeting, the Design Review Board determined that the original project design was too close to the appellant's home and had the potential to result in the removal of screening vegetation along the western side of the property. The Board required that the addition be moved away from the appellant's property to reduce its visual bulk when viewed by the neighbor and to protect the existing landscaping. As noted above, the Board added two conditions of approval to protect the existing vegetation and require additional screening trees to address these potential privacy impacts. The amount of landscaping to be provided between the TOWN OF TIBURON PAGE 5 OF 6 two homes would be more than adequate to provide appropriate privacy from the fleeting views of people walking up and down the stairs leading to the front door. CONCLUSION In reaching its decision on this project, the Design Review Board appropriately applied the guiding principles for Site Plan and Architectural Review in determining that the project bore a reasonable relationship between the size and scale of improvements and the size of the property and a reasonable relationship to the character of existing buildings in the vicinity. The Board closely examined the potential privacy impacts of the project on the appellant and imposed additional conditions of approval to ensure that existing and proposed landscaping would screen the front entry stairway from the appellant's home. The Board determined that the information presented by the applicant was adequate to make an informed decision on the application. RECOMMENDATION It is recommended that the Town Council: 1) Take testimony on the appeal in accordance with the Town's adopted procedure; 2) Indicate its intention to deny the appeal; and 3) Direct Staff to return with a resolution to that effect for adoption at the next meeting. EXHIBITS 1. Notice of Appeal and attachments 2. Appeal procedures 3. Application and supplemental materials 4. Design Review Board Staff report dated March 17, 2011 5. Design Review Board Staff report dated April 21, 2011 6. Design Review Board Staff report dated May 19, 2011 7. Minutes of the March 17, 2011 Design Review Board meeting 8. Minutes of the April 21, 2011 Design Review Board meeting 9. Minutes of the May 19, 2011 Design Review Board meeting 10. Letter from Dan Mihalovich and Judy Stern, dated March 7, 2011 11. Letter from Dan Mihalovich and Judy Stern, dated March 8, 2011 12. Letter from Lori and Mark Horne, dated March 11, 2011 13. Letter from Christopher Wand, dated March 14, 2011 14. Letter from Dan Mihalovich, dated April 17, 2011 15. Letter from Dan Mihalovich, dated April 18, 2011 16. Letter from Susan and Rich Sundberg, dated April 19, 2011 17. Letter from Lori and Mark Horne, dated April 20, 2011 18. Letter from Dan Mihalovich, dated May 16, 2011 19. Letter from Riley Hurd, dated June 28, 2011 20. Photos submitted at Design Review Board meetings 21. Approved plans Prepared By: Daniel M. Watrous, Planning Manager TOWN OF TIBURON PAGE 6 OF 6 1505 Tiburon Boulevard Tiburon, CA 94920 Phone 415-435-7373 www. ci. tburon. ca. us TOWN OF TIBURON NOTICE OF APPEAL APPELLANT(S) (Attach additional pages if necessary) Name: M) L- L r- k6- V4 5/27~J 1 ` A-K 1 C ~ v Mailing Address: (7~ C' C14 v a--c, -j Telephone: 4 1 S '1 3 FAX and/or e-mail (optional): (Work) Lj 1 14 3 -7 ° -7 ° (Home) ACTION BEING APPEALED Review Authority Whose Decision is Being Appealed: " v t3~ ►~-a~`~ Date of Action or Decision Being Appealed: /(I Name of Applicant: ?o~t aR-~ LG-j s / 4 6 c-1 A ~'4'7 ADb (-j )oTtS Type of Application or Decision: 6 5- PE~Cb> 4-"Y"j GROUNDS FOR APPEAL (Attach additional pages if necessary) TOWN CLERK STAFF USE ONLY BELOW THIS LINE L t D t File A eal Date Appeal Filed: US ay o pp _ Fee Paid: . Receipt No. c- G q l Date of Appeal Heanng: ~i it 0 NOTE: Current Filing Fee is $500 initial deposit for applicant and $300 flat fee for non-applicant S:WdministrationlFormsWotice of Appeal form revised 34-2010.doc EXHIBIT NO, ,Revised March 2010 -P_ , ut° 3 Town of Tiburon NOTICE OF APPEAL (from Dan Mihalovic 65 Reed Ranch Road Additions May 27, 2011 Page 2 of 2 GROUNDS FOR APPEAL: The bulk and height of the project. The lot is artificially large, due to the land which was superfluous to the railroad over the tunnel ...which was annexed to the 65 Reed Ranch property. So, the buildable area is artificially inflated on what is otherwise a small area at the front of the house. The Board reacted negatively to the massive addition, all at the front of the house, in its first review. The decision to approve the final project was based on the same massive addition at the front of the house, just reoriented slightly. The height and bulk of the addition is primarily driven from a single source---the 3-car garage and shop, with its 11-15 foot ceiling height. This ceiling height isn't necessary for a garage; the rest of the faulty design stems from this. The huge cut required in the earth also stems from the applicant's insistence on a 3-car garage/shop. None of the architect's drawings illustrated the cut required, at least 4 feet of earth to be removed, or its impact on the walkway or separation between 65 and 67 Reed Ranch Road. The TDRB did not demand this information or have the information in its possession at the time of their decision. The architect's drawings did not address the driveway or walkway. One could not tell exactly where the walkway would be, or at what elevation relative to 67 Reed Ranch Road. Would a retaining wall be required? Would any of the berm now providing some separation between the houses remain? The TDRB did not have this information when it made its decision. The architect's plans didn't include a vegetation plan. This is important because the Fire Marshall may require the removal of a lot of the brush and other landscaping now serving as a buffer to shield us from light pollution from the new building. When addressing our privacy issues, the TDRB voted to resolve the matter by requiring that the applicant plant a tree between their newly proposed front stairs and our house---a potentially temporary measure and one which the Fire Marshall may not approve. Also, the applicant's architect continuously represented to TDRB, until the last night before the Board, that none of the mature trees on the property would be affected. It became obvious upon questioning about the earth cut that ALL of the mature trees within the cut area would be removed. EXHIBIT NO. R Z ar3 Mihalovich /Stern • 67 Reed Ranch Road, Tiburon, CA 94920 Dan Watrous From: Dan Mihalovich [dan@thespaceplace.net] Sent: Monday, June 20, 2011 9:36 AM To: Dan Watrous Subject: Re: TOWN OF TIBURON NOTICE OF APPEAL / 65 Reed Ranch Road Additions Hi Dan: Here are a number of concerns about the upcoming July 6th appeal: 1. I understand that the "package" of materials from Tiburon Design Review Board won't go out to Tiburon Town Council members until the Friday before July 6th.... meaning Friday, July 1 st...the beginning of the long holiday weekend. It's fair to say that few people will have their first look at the TDRB package until Tuesday, July 5th. That leaves little time to digest the complexity of the project; the Board's findings; and time to visit the site and study the story poles. It would be more fair to the Council members to defer hearing this appeal to the next meeting; what date would that be? 2. Council members, I am sure, expect to hear a balanced and objective overview of the project from TDRB at the Council meeting. Why wouldn't the Council ask to have present two members---one who supported the project and one who did not? I do not need the dissenting member to support my claims; but the Council should recognize the only dissenting vote came from the only architect on the TDRB and should hear out his rationale. In other words, how is it equitable to the appellants if only a supporting TDRB member addresses Council's questions? 3. The story poles at 65 Reed Ranch Road have been taken down. By what date must they reinstall them? In your May 31 st email, below, you mentioned that if the Council isn't satisfied with the story pole configuration (which they likely won't see until the day before or the day of the appeal), they can request additional poles from the applicant. Assuming the Council will make such a request, there won't be enough time for additional poles to be installed and properly reviewed prior to the July 6th meeting. Please express my request of the Council, now, to request story poles to indicate the location and elevation of the proposed front stairs, walkway and driveway; I would like my request on record. 4. Kindly simultaneously send me a copy of the same package you will be forwarding to the Council members; I would like to see the exact same materials they will be seeing. Thank you for your help and reply. Best regards, Dan Mihalovich MIHALOVICH PARTNERS Tenant Leasing Services 655 Montgomery Street, Suite 810 San Francisco, CA 94111 T: 415-434-2820 C: 415-999-9244 EXHIBIT NO. 1 3 01- 3 6/20/2011 RESOLUTION NO. 17-2010 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADOPTING AN AMENDED POLICY FOR THE PROCESSING, SCHEDULING, RECONSIDERATION, AND STORY POLE REPRESENTATION OF APPEALS, AND SUPERSEDING EXISTING POLICIES WHEREAS, the Town receives and hears appeals from decisions of various commissions, boards and administrative officials from time to time, and WHEREAS, the Town Council has adopted various policies over the years with respect to appeal procedures, scheduling, and reconsideration, including Resolutions Nos. 2878 and 3218 and Town Council Policy Nos. 95-01 and 2002-01; and WHEREAS, the Town Council has determined that it is timely and appropriate to update and consolidate these policies regarding appeals; and WHEREAS, the Town Council has held a public meeting on this matter on March 179 2010 and has heard and considered any public testimony and correspondence; and NOW1 THEREFORE, BE IT RESOLVED that Town Council Resolution No. 2878, Town Council Resolution No. 3218, Town Council Policy 95-01, and Town Council Policy 2002-01 are hereby superseded by this Resolution. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Town Council of the Town of Tiburon does hereby adopt the following general policy with respect to processing, scheduling, and reconsideration of appeals and for story pole installation for appeals. APPEAL PROCEDURE 1. The Municipal Code sets forth instances when persons may appeal a decision by a review authority (e.g. Town official, Design Review Board or Planning Commission) to the Town Council. Any person making such an appeal must file a completed Town of Tiburon Notice of Appeal form, available on the Town's web site and at Town Hall, with the Town Clerk not more than ten (10) calendar days following the date of the decision being appealed. Shorter time frames for filing an appeal apply to certain types of permits. If the final day to appeal occurs on a day when Town Hall is closed for public business, the final day to appeal shall be extended to the next day at which Town Hall is open for public business. Appeals may not be revised or amended in writing after the appeal period filing date has passed. Tiburon Town Council Resolution No. 17-2010 0311712010 EXHIBIT NO. 2- 2. The appellant must submit filing fees with the Notice of Appeal form. Filing fees are set forth in the Town's current adopted Fee Schedule. (a) If the applicant is the appellant, the remainder of the filing fee (if any) will be refunded following completion of the appeal process. Additional staff time or costs to process an applicant's appeal is the financial responsibility of the applicant and will be billed per the Town's current hourly rate schedule and/or at actual cost if outside consulting is required. (b) If the appellant is not the applicant, then a fixed amount filing fee is required with no refund or additional billing required. 3. In the appeal form, the appellant shall state specifically either of the following: (a) The reasons why the decision is inconsistent with the Tiburon Municipal Code or other applicable regulations; or (b) The appellant's other basis for claiming that the decision was an error or abuse of discretion, including, without limitation, the claim that the decision is not supported by evidence in the record or is otherwise improper. If the appellant is not the applicant, the Town Council need only consider on appeal issues that that the appellant or other interested party raised prior to the time that the review authority whose decision is being appealed made its decision. 4. The appellant must state all grounds on which the appeal is based in the Notice of Appeal form filed with the Town Clerk. Neither Town staff nor the Town Council need address grounds introduced at a later time that were not raised in the Notice of Appeal form. 5. The procedure for presentation of the appeal at the Town Council meeting is as described below. In cases where the applicant is the appellant, paragraphs (c) and (f) below would not apply. (a) Town Staff may make a brief (approximately 10 minute) presentation of the matter and then respond to Town Council questions. (b) Appellant and/or appellant's representative(s) may make a presentation of no more than twenty (20) minutes and then respond to Town Council questions. Appellant may divide up the twenty (20) minutes between various speakers or have only one speaker, provided that the time limit is observed. Time devoted to responding to Town Council questions shall not be included as part of the twenty (20) minute time limit. (c) Applicant and/or applicant's representative(s) may make a presentation of no more than twenty (20) minutes and then respond to Town Council questions. Applicant may divide up the twenty (20) minutes between various speakers or have only one speaker, provided that the time limit is observed. Time devoted to responding to Tiburon Town Council Resolution No. 17-2010 0311712010 2 EXHIBIT NO. Z Town Council questions shall not be included as part of the twenty (20) minute time limit. (d) Any interested member of the public may speak on the item for no more than three (3) minutes. A speaker representing multiple persons (e.g., homeowner's association, advocacy group or official organization, etc.) may speak on the item for no more than five (5) minutes, at the discretion of the Mayor. (e) Appellant is entitled to an up to three (3) minute rebuttal, if desired, of any comments previously made at the hearing. (f) Applicant is entitled to an up to three (3) minute rebuttal, if desired, of any comments previously made at the hearing. 7. The testimony portion of the appeal hearing is closed and the Town Council will begin deliberations on the appeal. There will be no more applicant, appellant, or public testimony accepted unless requested by the Town Council. 8. If, following deliberation, the Town Council is prepared to make a decision on the appeal, it will direct Town staff to return with a draft resolution setting forth the'decision, and the findings upon which it is based, for consideration at a future Town Council meeting. The decision of the Town Council is not final until the resolution is adopted. Alternatively, if the Town Council is not prepared to make a decision on the appeal, it may: (a) Continue the appeal to a future date; (b) Remand the item to the review authority from which it was appealed for further hearing, review and action, with a specific description of the outstanding and unresolved issues and appropriate direction thereon; or (c) Refer the item to another review authority for its review and recommendations prior to further Town Council consideration. 9. Following a final decision by the Town Council, Town staff will promptly mail a Notice of Decision to the applicant and appellant. RECONSIDERA TION If, after the Town Council has voted to direct staff to prepare a resolution of decision, significant new information comes to light, which information was previously unknown or could not have been presented at the appeal hearing due to circumstances beyond the parties' control and not due to a lack of diligence, the Town Council may entertain a motion to reconsider its direction to prepare a resolution of decision. Any such motion to reconsider must be made prior to adoption of the resolution of decision, and the motion must be made by a Councilmember who voted on the prevailing side in the vote sought to be reconsidered. Any Councilmember may second the motion. The Town Council may consider and vote on the motion to reconsider at that time, and if the motion carries, the matter shall be placed on a future agenda for further notice and hearing. Tiburon Town Council Resolution No. 17-2010 0311712010 _EXHIBIT NO. SCHEDULING OFAPPEALS 1. The Town's policy is to schedule and hear appeals in an expeditious manner. Appeals will generally be heard at the first regular Town Council meeting that is at least fifteen (15) days after close of the appeal period. At the sole discretion of the Town Manager, the Town may schedule the appeal for a subsequent Town Council meeting based on the complexity of the matter, availability of key Town staff members and Councilmembers, agenda availability, or unusual circumstances. Town staff will make reasonable efforts to establish the hearing date for the appeal within three (3) working days of the close of the appeal period. The Town Clerk, in coordination with appropriate Town staff, will promptly advise all parties to the appeal of the selected hearing date. 2. The Town Manager will grant requests for continuances from the date established above in the event that all parties to the appeal agree in writing to a date specific for the continuance and that date is deemed acceptable by the Town Manager. r 3. Attendance of parties to an appeal at the hearing is desired, but not required. The Town Council will consider written comments or representation by others in lieu of personal appearance. STORYPOLES For appeals where story poles were erected for review of the original decision being appealed, a story pole representation shall be required for the Town Council's appeal review process, as follows: 1. A story pole plan showing the poles to be connected, including location and elevations of poles and connections, shall be submitted, reviewed, and accepted as adequate by Planning Division Staff rp for to installation of the poles and connections. 2. Critical story poles, as determined by Staff, must be connected by means of ribbons, caution tape, rope or other similar and highly visible materials clearly discernable from a distance of at least three-hundred (300) feet in clear weather, to illustrate the dimensions and configurations of the proposed construction. 3. Story poles and connecting materials must be installed at least ten (10) dys prior to the date of the appeal hearing before the Town Council. 4. Failure to install the poles and materials in a timely manner may result in continuance of the public hearing date. Tiburon Town Council Resolution No. 17-2010 0311712010 4 EXHIBIT NO. Z 5. Story poles must be removed no later than fourteen (14) days after the date of final decision by the Town Council. APPLICABILITY This policy, while primarily written for use by the Town Council, is intended to apply to the extent practicable to Town decision-making bodies, other than the Town Council, which may hear appeals from time to time. Be advised that certain types of appeals, such as appeals of staff- level design review application decisions to the Design Review Board, may have different deadlines for filing of the appeal than the ten (10) calendar days specified above. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on March 17, 2010, by the following vote: AYES: COUNCILMEMBERS: Collins, Fraser, Fredericks & O'Donnell NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Slavitz RICHARD COLLINS, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK Tiburon Town Council Resolution No. 17-2010 0311712010 5 EXHIBIT N0. TOWN OF TIBURON LAND DEVELOPMENT APPLICATION O Conditional Use Permit 0 Precise Development Plan O Secondary Dwelling Unit O Zoning Text Amendment O Rezoning or Prezoning O General Plan Amendment o Change of Address TYPE OF APPLICATION XDesign Review (DRB) 0 Design Review (Staff level) O Variance O Floor Area Exception O Tidelands Permit O Sign Permit 0 Tree Permit 0 Tentative Subdivision Map 0 Final Subdivision Map 0 Parcel Map O Lot Line Adjustment O Condominium Use Permit 0 Certificate of Compliance 0 Other APPLICANT REQUIRED INFORMATION SITE ADDRESS: bl;~,_ gar 6* PROPERTY SIZE:10, 77.q PARCEL NUMBER: :3s 3z0l ZONING: 42-0 =Z OWNER OF PROPERTY: MAILING ADDRESS: CITY/STATE/ZIPS PHONE NUMBER: FAX ~A APPLICANT: (Other than Property Owner) L)ef ~ V -T, 00 A) f, MAILING ADDRESS: fY t L~ PHONE NUMBER.- FAX ARCHITECT/DESIGNER/ENGINEER: ~'I cj!G AUi__L ~ - MAILING ADDRESS: Please indicate with an asterisk persons to whom Town correspondence should be sent. BRIEF DESCRIPTIQN OF PROPOSED PROJECT (attach separate sheet . if needed): A4- Ah-,-4AI )bki,54. I, the undersigned owner (or authorized agent) of the property herein described, hereby make application for approval of the plans submitted and made a part of this application in accordance with the provisions of the Town Municipal Code, and I hereby certify that the information given is true and correct to the best of my knowledge and belief. I understand that the requested approval is for my benefit (or that of my principal). Therefore, if the Town grants the approval, with or without conditions, and that action is challenged by a third party, I will be responsible for defending against this challenge. I therefore agree to accept this responsibility for defense at the request of the Town and also agree to defend, indemnify and hold the Town harmless from any costs, claims or liabilities arising from the approval, including, without limitation, any award of attorney's fees that might result from the third party challenge. *Signature: _ Dater Zd~l *If other than owns , must have letter from owner DEPARTMENTAL PROCESSING INFORMATION Application No.; 7)/d/ GP Designation Fee Deport ' . 00 Date Received: Received BY Receipt Date Deemed Complete- ~t"t ( B3 r ' l Acting Body: Action: Date: l 141- Conditions of Approval or Comments Resolution or Ordinance : . IT NO. DESIGN REVIEW SUPPLEMENTAL APPLICATION FORM Please fill in the information requested below (attach separate sheet as needed): 1. Briefly describe the proposed project: 2. Lot area in square feet (Section 16-100.020(L)): I ( ~2~ .51-- Rola 3. Proposed use of site (example: single family residential, commercial, etc.): Existing 1~- X17 Proposed 4. Describe any changes to parking areas including numbe )r of parking spaces, turnaroynd or maneuvering areas. Vv DM iZ~A~ TO `BE COMPLETED BY APPLICANT STAFF USE ONLY ITEM EXISTING PROPOSED ADDITION `PROPOSED CAL- PER.ZONE AND/OR ALTERATION CULATED Yards (Setbacks from property line)( (Section 16-100.020(Y)* s~ ft !!rr ft, ft. ft. ft. F ront Rear N~ ft. ~j ft. ft. ft. ft. Right Side ft. 15' ft. ft. ft. j ft. Left Side © ft. D ft. ft. ft. ft. Maximum Height (Section 16-30.050)* ft. ft. ft. ft• T ft. Lot Coverage (Section 16-30.120(B))* Z 13q.ft. I 9 sq.ft sq.ft. sq.ft. 'S 5- / sq.ft. Lot Coverage as A % 1 ! % rea Percent of Lot % % Gross Floor Area 020 F * ti 16 100 S ft ~5 , ft ~ ft 37 3`E GIG e s ft s ft on - . ec ( ( sq . . . sq . ~ ~ . sq. . q. . q. *Section numbers refer to specific provisions bf-4e ti ions in the i iburon Municipai uooe Lnapter -ib zoning) TOWN OF TIBURON DESIGN REVIEW SUPPLEMENTAL APPLICATION FORM REV 7/10 60 EXHIBIT NO. 3 R. 2-or-10 BLuE MOUNTAIN DESIGN G. JUP Dan Watrous, Planning Manager Laurie Tyler, Associate Planner Planning Division Town of Tiburon 1505 Tiburon Boulevard Tiburon. CA 94920 20 December 2010 Dan and Laurie, 1 am writing this letter on behalf of Ms. Andrea L. Hong and Mr. James. S. Parsons regarding the proposed renovation project at their residence at 65 Reed Ranch Road. This letter is being attached with the project application submittal. This project involves adding a new, attached garage with storage loft, laundry room, and bath room. and a roof remodel of the existing garage. The proposed new structures are conforming in height, setbacks, maximum floor area and maximum lot coverage requirements. The purpose of this letter is to conununicate that drawings and renderings illustrating our design have been reviewed by the immediate neighbors and that this proposed project has earned their support: C % ~ f f t~ Reed Ranch Road Date Reed Ranch Road Date I Reed Ranch Road Date J C i, Reed Ranch Road Da{e Reed Ranch Road Reed Ranch Road Reed Ranch Road Date Date Date Thanh you for your assistance and attention to our project. and .ve look forward to gaining vour approval. Sincerely, Jeffrey T. )Kong Principal EXHIBIT NO. P3orto BLUE MOUNTAIN DESIGN Ms. Laurie Tyler, Associate Planner Office of Planning Division Town of Tiburon 1505 Tiburon Boulevard Tiburon, CA 94920-2530 09 March 2011 Laurie, Per our discussion earlier today regarding the design review application FAR for the residence at 65 Reed Ranch Road, the title page of the drawing submittal summed all available entitlements, under the assumption that the six-hundred square foot garage allowance would be exceeded, then deducted existing and proposed structures. Here is an alternate summary which separates the garage and FAR entitlements: Garage allowance: 600 sf Existing structures: garage = 484 sf Available garage entitlement: 116 sf New garage: ( 450 sf) Garage entitlement: ( 334 sf) (entitlement exceeded, balance to be charged to FAR) FAR (18,729sf lot): 10% lot size + 2,000 sf 1,873 sf + 2,000 sf = 3,873 sf Existing structure: house = 3,031 sf Available FAR entitlement: 842 sf Available FAR entitlement, less excess garage: 508 sf Proposed new structure: (includes double counting of 19' high ceiling area of new garage) 503 sf Remaining FAR entitlement, after this project: 5 sf sJ.t...l.. k.. x . Sfl.. i.}l„ ~.t :.<~i.... .1~ ..iIF r dii._ f7sJ'r -1 ~S l..J ..~...-3 .i.. ..TA EXHIBIT NO. 3 P, q or-to PROJECT INFORMATION - ZONING: RO-2 APN: 38-301-03, 25, 3 1 PROJECT REQU I REM ENTS (ALLOWABLE) ALLOWABLE LOT COVWG ALLOWABLE SETBACKS 15% = 2,809 sf FRONT: 30 ft REAR: 20%-25 ft GR055 FLOOR AREA . 51 DE: 15 ft 10% OF LOT: 1,573 sf 2000 sf GARAGE: GOO sf ((ODD , fir- I lax ~b~ ~a ALLOWABLE: 4,473 sf , ;0 = ~ EX 15T I N G LOT 51 Z E AREA: 15,7295f I" rrhi a ~H EXISTING 5TRUCTURE5 PROPOSED STRUCTURE (E) HOUSE: 3,03 1 sf (N) ADDITION: 9535f (E) GARAGE: 484 sf (E) 5TRUCTURE5: 3,5155f TOTAL: 3,5 15 sf TOTAL: ,s EXISTING LOT COVERAGE PROPOSED LOT COVERAGE AREA: 2, 1 30 sf AREA: 2,794 sf . EXI5TING SETBACKS FRONT: 30 ft REAR: 142 ft 51DE: 10 ft PROPOSED SETBACKS FRONT: NO CHANGE REAR: NO CHANGE 51DE: NO CHANGE EXHIBIT N0. 3 Q L~ C LR U V l~ MAR 1 5 2011 memo PLANNING o6vtSIaN To: Tiburon Design Review Board LATE MAIL# ~ From: J. Parsons and Andrea Hong, 65 Reed Ranch Road Date: 3/15/2011 Re: Parsons/Hong Application for Proposed Construction, 65 Reed Ranch Road This is a response to the issues raised in the March 8th 2011 memo submitted by Dan Mihalovich and Judy Stem of 67 Reed Ranch Road. We wanted to provide some clarification on the various points raised in their memo. The numbers shown below correspond to the enumerated points in their memo. 1. The first ten feet of the new structure will be 1' 8" lower than the existing garage, the back portion of the new structure will be 4' 9" feet taller than existing garage but is still 7 '/2' lower than the existing house, which stands just behind the new structure. Our neighbors' lower floor bedroom windows look directly into their side yard and the slope between our two houses. If one stands at the window and looks up in a direction of more than 45 degrees above horizontal you look into our trees. After our project is completed the lower floor windows will look into their landscaping, our new fence and, looking straight up, into our new beautiful trees. The three upper story windows are the master bathroom, their guest bedroom and an office at the very front over their garage. • One looks out of the master bathroom window from their bathtub through a window with non-obscure glass. The level of privacy they require from this window is best left to them to determine. Since their construction project in 2001/2002 we have had an unobstructed view into this master bathroom window from our front entry deck and front yard, which we have sought to eliminate with landscaping. • The guest bedroom window aligns with the front of our proposed project, and the office window is well forward of our project. In both cases one would either look out over the front of the new project (which is lower than the existing garage) or back toward our existing house and garage to have any incremental visual impact. We are committed to installing mature landscaping - so the main experience from these upper windows will again be of our beautiful new trees, which will obscure the new building. 2. The excavation returns the west side of the front yard to a level consistent with the 1`XHIBIT NO. or- I c) street level and one that is closer to their house level. Given the severe damage which occurred to their redwood tree during their own construction in 2001/2002, we understand their stated concern. However, the redwood tree is on their property over 14 feet from the nearest proposed driveway. There is no grade change anticipated in this area of the driveway. The only grade change required would be to accommodate the driveway material - which will be less than 6 inches thick. 3. We plan to have a six-foot fence on our property line. Our dogs, which we've had for the past eight years, are not left in the yard when we're not home. No part of our yard has ever been or ever will be used as a "dog run". We've also never in 18 years received any noise complaints from Dan and Judy and don't expect any in the future. Our discussion on fence height was an attempt to discuss with them how they'd like to see our landscaping progress to minimize their concerns. We are sad that they. have chosen to stop all discussions of this project with us. We plan to, and commit to putting in mature trees to separate our two properties to recreate the screen we've currently constructed. r 4. This is not a true statement. The discussion was an offer to make the new fence two feet of retaining wall and four feet of fence if that would provide a better opportunity for them to landscape their yard. The excavation and construction of this building will reduce the amount of slope next to their house and would not require any retaining wall on their side of the garage. We have previously clarified this directly with them and are surprised to see them make this claim again. 5. The current proposal has been modified from larger garage doors to two pedestrian doors on the west side of the new structure in response to the concern about our initial proposal. There will be a fence and landscaping between these doors and the neighbors' property, which will effectively screen any light. I am a wood working hobbyist. I'm not running a wood shop making noise 24 - 7. My focus is and has been the utilization of hand tools in the shaping of wood. It often feels like I spend more time sharpening my carving knifes, chisels, and hand planes on water stones (no electricity) than I do actually working on wood. However, I do have power tools and do use them on occasion - but my `noise' contribution on a week in and week out basis is far less than the weekly gardeners employed by most neighbors on this block. I will not be undertaking any activities different than I've been doing for the past 18 years. During that time I have always been very respectful and responsive to my neighbors and their concerns. This is our retirement home - we're not moving and our good neighbor behavior won't change. 6. Tiburon defines views as being from the primary living area within a home. We believe that for 67 Reed Ranch Road this would be the west side of the house looking toward Mt. Tam. It would be highly unlikely that a short range perspective of our front yard and the side of our current garage could be defined as a `view ' by the Town of Tiburon. e Page 2 --11-HIT NO. P, 7 oP ( V We are committed to the replacement of mature trees and landscaping. We are maintaining our fern pines which currently screen this side of our yard, which we planted in response to their large expansion and placement of these windows in their construction of 2001/2002. Privacy will actually be improved by this addition because currently, any one walking up our path to our front door, as well as along our path on the west side of our property can look into these the windows. With the new fence and landscaping this will no longer be the case. Interestingly, our neighbors have never raised concerns about this kind of privacy in the previous 18 years. All efforts to screen their new construction have been ours and it is our intention to continue this effort. The proposed driveway will end forward of all these referenced windows and our landscaping will ensure that any headlights will not shine on the side of their building as we turn into the new driveway. Further, the height of headlights on the new driveway would align with the floor of the second story not any of the lower floor bedrooms. Driving our cars into our current driveway does wash the side of their house with light exactly aligned with their upper story windows. However, we've never heard any complaint about this over the past 18 years. Our new structure and landscaping will help to mitigate any issue that is in fact currently occurring with the existing driveway. We hope that you will find this information useful in your deliberation and consideration of our fully conforming proposal for a high quality addition to the local community. • Page 3 EXHIBIT NO.- S V, 0 OF 16 - 77 4 - r f'y = ~,n ei. ~ L p ,lam. - J _ r t 2. w~ v ~a 1~ . M 1 ~V o ~ L uj 0 V) LLJ ct 0 77 0 CO = O O E-i W TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: PROJECT DATA Members of the Design Review Board Planning Manager Watrous Design Review Board Meeting March 17, 2011 Agenda Item: 1 65 Reed Ranch Road; File #711011 Site Plan and Architectural Review for the Construction of Additions to an Existing Single-Family Dwelling ADDRESS: 65 REED RANCH ROAD ASSESSOR'S PARCEL: 038-301-35 FILE NUMBER: 711011 PROPERTY OWNERS: JAMES PARSONS AND ANDREA HONG APPLICANT: JEFFREY WONG (ARCHITECT) LOT SIZE: 189729 SQUARE FEET ZONING: RO-2 (TWO-FAMILY RESIDENTIAL) GENERAL PLAN: MEDIUM DENSITY RESIDENTIAL FLOOD ZONE: X DATE COMPLETE: FEBRUARY 22, 2011 PRELIMINARY ENVIRONMENTAL DETERMINATION Town Planning Division Staff has made a preliminary determination that this proposal would be exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15301. PROPOSAL The applicant is requesting Design Review approval for the construction of an addition to an existing single-family dwelling on property located at 65 Reed Ranch Road. Currently the property is improved with a two-story dwelling and garage. A new garage is proposed to be attached to the existing house and would include a laundry room and bathroom. A second story storage loft is also proposed with a new entry deck and stairs to connect the second story loft to the front of the home. Currently the property has an existing detached garage, which would be partially demolished and reconstructed with a new angled roofline. A wooden fence would extend along a portion of the western side property line adjacent TOWN of TIBURON PAGE 1 OF 5 EXHIBIT 1~0. to the new garage addition. A series of small trees on the western side of the lot would be removed to accommodate the proposed addition. The proposed additions would increase the lot coverage on the site by 664 square feet for a total lot coverage of 2,794 square feet (14.9%), which would be 15 square feet less than the 15.0% maximum lot coverage for a lot of this size (2,809 sq. ft.). The proposed project would add 953 square feet to the existing dwelling. Of this addition, 837 square feet would be calculated towards floor area, for a total gross floor area of 3,868 square feet, which is below the maximum permitted floor area for a lot of this size (3,873 sq. ft.). The remaining 116 square feet is new garage space which is not counted towards FAR. It should be noted that part of the 837 square foot increase in floor area is actually new garage area (and not living space) but is counted towards the total FAR because the site would use and exceed its 600 square foot allocation for garage space. A color and materials board has been submitted and will be available for review by the Design Review Board. The additions and reconstructed garage would utilize natural finish cedar shingle and light brown painted shiplap wood siding, with bronze trim. The roofs would utilize a naturally oxidized copper material. ANALYSIS Zoning Staff has reviewed the proposal and finds that it is in conformance with the development standards for the RO-2 zone. Design Issues The subject property is situated on a relatively level lot on Reed Ranch Road. The lot also includes a portion of the old railroad right-of-way at the rear of the site. The adjacent home to the west at 67 Reed Ranch Road is situated at an elevation below the subject property, with a side yard sloping up to the shared side property line. The adjacent dwelling contains numerous windows facing the site of the proposed garage addition. The ground floor of the proposed garage addition would be situated at a level between the two floors of the adjacent dwelling, with the second floor storage loft situated above the floor level of the upper story of the neighboring home. The story poles of the proposed garage addition are currently obscured by several trees on the site that would be removed as part of the construction of this project. Once these trees are removed, the proposed two-story addition would likely loom over the side of the adjacent home due to the higher ground elevation and the location of the addition at the side yard setback line. Although the proposed addition would be partially screened by existing vegetation on the neighboring property and the proposed property line fence, the height and proximity of the addition would make it appear massive when viewed from the windows of the adjoining residence. TOWN OF TISURON PAGE 2 OF 5 EXHIBIT NO. Section 16-52.020 (H[3]) of the Zoning Ordinance (Guiding principles in the review of Site Plan and Architectural Review applications) states that the Design Review Board shall consider that "the height, size, and/or bulk of the proposed project bears a reasonable relationship to the character of existing buildings in the vicinity. A good relationship of a building to its surroundings is important." Elimination of the upper story storage loft would likely substantially reduce the visual impact of the project and ensure that the height and bulk of the proposed addition would bear a reasonable relationship to the home at 67 Reed Ranch Road. If the upper story loft is eliminated and the proposed roofline is maintained, the sloped metal roof of the garage addition could result in glare from morning sun for the adjacent dwelling at 67 Reed Ranch Road. Although the proposed copper roofing material would eventually oxidize and become less reflective, initially after installation this roofing could create glare problems for these neighbors. Staff recommends that the roofing material be changed to a non-metal material to minimize the potential for glare issues. If the Design Review Board detennines that the roofing material should be changed, consideration should be given to changing the identical material proposed for the reconstructed garage on the other side of the site. The applicant has indicated that the garage portion of the proposed addition may be utilized as a workshop space. Two pedestrian doors are proposed on the west side of the garage, which replaced full garage doors that were shown on an earlier project design. These doors, if open while work is being done in the garage, could allow noise from the garage to affect the adjacent residents. Staff recommends that the west side of the garage be fitted with non-operable windows and that any exterior pedestrian door(s) be moved to the rear (southern side) of the addition. Staff recommends that the Board visit the subject site and surrounding properties to fully understand the extent of this proposal. PUBLIC COMMENT As of the date of this report, two letters have been received regarding this application. RECOMMENDATION The Board should review this project with respect to Zoning Ordinance Sections 16-52.020 (H) (Guiding Principles) and determine that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15301. The Board should continue the project, with direction given to the applicant on appropriate modifications to the design as recommended in the staff report, subject to the attached conditions of approval. ATTACHMENTS 1. Conditions of approval 2. Application and supplemental materials 3. Email dated March 8, 2011 from Dan Mihalovich 4. Letter dated March 8, 2011 from Dan Mihalovich & Judy Stern 5. Submitted plans TOWN OF TIBURON PAGE 3 OF 5 EXHIBIT NO. TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: BACKGROUND Members of the Design Review Board Planning Manager Watrous Design Review Board Meeting April 21, 2011 Agenda Item: 1 65 Reed Ranch Road; File #711011 Site Plan and Architectural Review for the Construction of Additions to an Existing Single-Family Dwelling (Continued from March 17, 20110 On March 17, 2011 the Design Review Board reviewed an application for construction of an addition to an existing single-family dwelling on property located at 65 Reed Ranch Road. The project proposed to construct a new garage to be attached to the existing house and include a laundry room and bathroom. A second story storage loft was also proposed with a new entry deck and stairs to connect the second story loft to the front of the home. At that meeting, the owners of the adjacent home to the west at 67 Reed Ranch Road raised objections to the proposed project. They were concerned about the proximity and visual mass and bulk of the proposed addition, along with potential noise and privacy impacts. The Design Review Board shared many of these concerns, particularly regarding the visual mass of the building and its proximity to the home at 67 Reed Ranch Road. The Board suggested that the height of the addition possibly be reduced, that the applicant consider other less sensitive locations for the addition, and more be done to properly attach the addition to the main building. The Board continued the application to the April 21, 2011 meeting to allow the applicant time to redesign the proposed addition. PROPOSAL The applicant has now submitted revised plans for the proposed project. The proposed addition has been moved to the east, away from 67 Reed Ranch Road. The existing detached garage at the northeast corner of the lot would be demolished and replaced with a new three-car garage, with a workshop space at the rear of the garage. The upper floor of the addition would include a guest bedroom and a model train room. The upper level of the addition would be situated at the same level as the existing deck in front of the house. The upper level would connect to the interior of the main level of the house at the family room, with an interior stairway leading down to the lower level of the addition. The TOWN of TiBUR®N EXHIBIT NO. 5 PAGE 1 OF 5 workshop space would be separated from the western side of the addition by a doorway and hallway area. The proposed additions would increase the lot coverage on the site by 556 square feet for a total lot coverage of 2,686 square feet (14.3%), which would be less than the 15.0% maximum lot coverage for a lot of this size and 108 square feet less than the previous application. The project would replace the exiting 484 square foot garage with 1,436 square feet of garage and living space, resulting in a calculated floor area of 3,867 square feet, which is 6 square feet below the 3,873 square foot floor area ratio for a lot of this size. ANALYSIS Zoning Staff has reviewed the proposal and finds that it is in confonnance with the development standards for the RO-2 zone. Design Issues The revised project design appears to be responsive to the concerns raised by the Design Review Board and the adjacent property owners. By moving the addition to the other side of the property, the existing trees on the western side of the site would not be removed and would provide a fairly dense visual buffer between the proposed addition and the home at 67 Reed Ranch Road. The previously proposed fence along the western side property line has been eliminated. The separate doorway and hallway outside the proposed workshop space would help reduce any workshop noise for neighboring residents. The adjacent property to the east at 63 Reed Ranch Road is developed with a house and detached garage that are situated further to the rear than the buildings on the subject property. The proposed addition would be situated forward of the garage on the adjacent lot and even further forward than the house on that site, limiting any potential visual or privacy impacts to residents on that property. The design theme of the revised addition would be similar to that of the previous project design. The addition would utilize four separate roof planes to break up the visual mass of the addition when viewed from the street or the property at 67 Reed Ranch Road. Staff recommends that the Board visit the subject site and surrounding properties to fully understand the extent of this proposal. PUBLIC COMMENT As of the date of this report, no letters have been received regarding this application since the previous meeting. TOWN OF TIBURON PAGE 2 OF 5 EXHIBIT NO. RECOMMENDATION The Board should review this project with respect to Zoning Ordinance Sections 16-52.020 (H) (Guiding Principles) and determine that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15301. If the Design Review Board agrees with Staff- s conclusions, it is recommended that the attached conditions of approval be applied. ATTACHMENTS 1. Conditions of approval 2. Design Review Board Staff Report dated March 17, 2011 3. Minutes of the March 17, 2011 Design Review Board meeting 4. Submitted plans TOWN OF TIBURON PAGE 3OF5 PXHrBIT NO. S7 TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: BACKGROUND Members of the Design Review Board Planning Manager Watrous Design Review Board Meeting May 19, 2011 Agenda Item: I 65 Reed Ranch Road; File #711011 Site Plan and Architectural Review for the Construction of Additions to an Existing Single-Family Dwelling (Continued from April 21, 2011) March 17, 2011 Meeting On March 17, 2011 the Design Review Board reviewed an application for construction of an addition to an existing single-family dwelling on property located at 65 Reed Ranch Road. The project proposed to construct a new garage to be attached to the existing house and include a laundry room and bathroom. A second story storage loft was also proposed with a new entry deck and stairs to connect the second story loft to the front of the home. At that meeting, the owners of the adjacent home to the west at 67 Reed Ranch Road raised objections to the proposed project. They were concerned about the proximity and visual mass and bulk of the proposed addition, along with potential noise and privacy impacts. The Design Review Board shared many of these concerns, particularly regarding the visual mass of the building and its proximity to the home at 67 Reed Ranch Road. The Board suggested that the height of the addition possibly be reduced, that the applicant consider other less sensitive locations for the addition, and more be done to properly attach the addition to the main building. The Board continued the application to the April 21, 2011 meeting to allow the applicant time to redesign the proposed addition. April 21, 2011 Meeting At the April 21, 2011 meeting the Design Review Board reviewed revised plans for the project. The proposed addition was moved to the east, away from 67 Reed Ranch Road. The existing detached garage at the northeast corner of the lot was to be demolished and replaced with a new three-car garage, with a workshop space at the rear of the garage. The upper floor of the addition would include a guest bedroom and a model train room. The upper level of the addition would be situated at the same level as the existing deck in front of the house. The upper level would connect to the interior of the main level of the house at the family room, with an interior stairway TOWN OF TIBURON PAGE 1 OF 5 EXHIBIT N0. leading down to the lower level of the addition. The workshop space would be separated from the western side of the addition by a doorway and hallway area. It was the consensus of the Board that the project was generally responsive to the previously raised concerns. However, the Board still had issues with the overall height and visual mass of the proposed addition, particularly the "monitor" section above the upper floor addition, and the amount and/or pattern of windows. The Board gave direction to the applicant on modifications that could possible address these concerns and continued the application to the May 5, 2011 meeting to allow the applicant time to once again redesign the proposed addition. Prior to the May 5 meeting, the applicant indicated to Staff that the owners intended to request the Design Review Board to reconsider its findings regarding the plans reviewed at the April 21 meeting. On May 4, the applicant instead requested a continuance to the May 19, 2011 Board meeting. ANALYSIS The applicant has now submitted revised project plans. The monitor section of the proposed upper floor addition has been narrowed and reduced in height by 6 inches. The number and area of the windows and openings on the western side of the addition, facing the adjacent home at 67 Reed Ranch Road, have been reduced; the glass area of the top row of west-facing windows on the monitor would each be only 12 inches wide and 7-5/8 inches tall. Minor changes have been made to the overall dimensions of the proposed addition, most amounting to changes of less than one foot. The roof design of the upper floor has been modified to connect more seamlessly with the roofline of the existing house. The revised project design would have the same floor area as the previous design, but would increase the lot coverage by 10 square feet to a total of 2,676 square feet (14.3%), which would be less than the 15.0% maximum lot coverage for a lot of this size and 98 square feet less than the original application. The revised project design appears to be responsive to the concerns raised by the Design Review Board. The revisions would lessen the height and visual mass of the monitor, lessen the amount of window area, and provide a more architecturally sound connection of the addition to the existing house. RECOMMENDATION The Board should review this project with respect to Zoning Ordinance Sections 16-52.020 (H) (Guiding Principles) and determine that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15301. If the Design Review Board agrees with Staff s conclusions, it is recommended that the attached conditions of approval be applied. TOWN OF TIBURON RAGE 2 OF 5 EXHIBIT NO _6______ ATTACHMENTS 1. Conditions of approval 2. Design Review Board Staff Report dated March 17, 2011 3. Design Review Board Staff Report dated April 21, 2011 4. Minutes of the March 17, 2011 Design Review Board meeting 5. Minutes of the April 21, 2011 Design Review Board meeting 6. Submitted plans TOWN OF TIBURON RAGE 3 OF 5 EXHIBIT NO. CONDITIONS OF APPROVAL 65 REED RANCH ROAD FILE #711011 (AS AMENDED AT THE MAY 19, 2011 DESIGN REVIEW BOARD MEETING) 1. This approval shall be used within four (4) years of the approval date, and shall become null and void unless a building permit has been issued. 2. The development of this project shall conform with the application dated by the Town of Tiburon on January 24, 2011, or as amended by these conditions of approval. Any modifications to the plans of May 9, 2011 must be reviewed and approved by the Design Review Board. 3. Plans submitted to the Building Division for plan check shall be identical 'to those approved by the Design Review Board. If any changes are made to the approved Design Review plans, the permit holder is responsible for clearly identifying all such changes when submitted to the Building Division for plan check. Such changes must be clearly highlighted (with a "bubble" or "cloud'') on the submitted plans. A list describing in detail all such changes shall be submitted and attached to the building plans, with a signature block to be signed by the Planning Division Staff member indicating that these changes have been reviewed and are approved, or require additional Design Review. All changes that have not been explicitly approved by Staff as part of the Building Plan Check process are not approved. Construction that does not have Planning Division approval is not valid and shall be subject to stop work orders and may require removal. 4. If this approval is challenged by a third party, the property owner/applicant will be responsible for defending against this challenge. The property owner/applicant agrees to defend, indemnify and hold the Town of Tiburon harmless from any costs, claims or liabilities arising from the approval, including, without limitations, any award of attorney's fees that might result from the third party challenge. 5. The applicant must meet all requirements of other agencies prior to the issuance of a building permit for this project. 6. All exterior lighting fixtures other than those approved by the Design Review Board must be down light type fixtures. 7. The project shall comply with the following requirements of the Southern Mann Fire Protection District: a. The proposed additions shall have installed throughout an automatic fire sprinkler system. TOWN OF TIBURON PAGE 4 OF 5 EXHIBIT NO. ~ b. The address shall be posted in accordance with the requirements of the California Fire Code. C. Smoke detectors shall be installed in accordance with the requirements of the California Fire Code. d. Noncombustible roofing materials shall be utilized. e. The applicant shall comply with California Fire Code and Public resource Code 4291 requirements relating to the clearance of flammable brush and weeds. A minimum clearance of thirty feet (30') from structures and ten feet (10') from roads and property lines shall be maintained. 8. All requirements of the Marin Municipal Water District shall be met. 9. The applicants shall obtain any necessary sewer permits from the Richardson Bay Sanitary District and pay all applicable fees prior to construction of a side sewer and connection to the sewer main. After connection to the sewer main but pr1br to commencement of discharge and prior to covering of the pipe, the District shall be contacted and allowed to inspect the connection for conformance to standards. 10. All requirements of the Town Engineer shall be met, including, but not limited to, the following, which shall be noted on building plan check plans: a. A Public Works encroachment pernlit will be needed for construction movement to and from the private shared driveway and to control construction staging and parking. b. The public right-of-way shall be protected from damage during construction, or repairs shall be made to the satisfaction of the Tiburon Public Works Department. 11. Two (2) 36 inch box native trees shall be planted to screen the top of the entry walkway from the neighboring home at 67 Reed Ranch Road. 12. Grading shall be minimized to preserve the existing trees along the western side of the property, with the exception of the coast Live Oak tree to be removed as part of the proj ect. TOWN OF TIBURON PAGE 5 OF 5 EXHIBIT NO. J MINUTES #4 TIBURON DESIGN REVEW BOARD MEETING OF MARCH 17, 2011 The meeting was opened at 7:00 p.m. by Chair Tollini. A. ROLL CALL Present: Chair Tollini, Vice-Chair Kricensky, Boardmembers Emberson and Weller Absent: Boardmember Chong Ex-Officio: Planning Manager Watrous, Associate Planner Tyler and Minutes Clerk Rusting B. PUBLIC COMMENTS - None C. STAFF BRIEFING - None D. NEW BUSINESS 1. 65 REED RANCH ROAD: File No. 711011; James Parsons & Andrea Hong, Owners; Site Plan and Architectural Review for construction of an addition to an existing single family dwelling. The applicants propose to construct a 953 square foot addition including a new garage, laundry room, bathroom, & storage loft. APN 038-301-35 The applicant is requesting Design Review approval for the construction of an addition to an existing single-family dwelling on property located at 65 Reed Ranch Road. A new garage is proposed to be attached to the existing house and would include a laundry room and bathroom. A second story storage loft is also proposed with a new entry deck and stairs to connect the second story loft to the front of the home. Currently the property has an existing detached garage, which would be partially demolished and reconstructed with a new angled roofline. A wooden fence would extend along a portion of the western side property line adjacent to the new garage addition. A series of small trees on the western side of the lot would be removed to accommodate the proposed addition. The proposed additions would increase the lot coverage on the site by 664 square feet for a total lot coverage of 2,794 square feet (14.9%), which would be 15 square feet less than the 15.0% maximum lot coverage for a lot of this size (2,809 sq. ft.). James Parsons, owner, said that they plan to live in this house long-term and the project is therefore meaningful to them. He discussed changes made to the plans after their original submittal, including lowering the front of the addition, reducing the roof mass and remodeling the existing garage. They felt that the recommendations in the staff report went further than expected and they cannot accept them because it would require removal of an integral part of the project. Mr. Parsons said that they take great pride that the current landscaping provides screening, and they will make that same commitment to the new structure. He distributed photographs taken that morning from the east side of their house looking toward the uphill neighbor and looking down the east side of the property as an example of the level of landscaping they would provide in screening the new construction. TIBURON D.R.B. MINUTES #4 EXHIBIT 3/17/11 Mr. Parsons said that the primary purpose of the addition is the storage loft and garage. He said that the storage loft would be located at the back upper floor of the garage and provide storage for his N scale trains. He said that they currently do not have enough room to store vehicles, and having an additional garage would allow them to park in a more secure location. He said that he is also a woodworker and needs the garage for that hobby. He reassured the Board that his focus has always been the utilization of hand tools and he does not run larger power tools. He said that he personally experiences the noise and dust of those tools more than others in the neighborhood, and it was therefore in his own interest to manage the level of noise. He stated that this has never created a problem with a neighbor regarding noise and dust. Mr. Parsons said that their dogs are not left in the yard when they are not home, and no part of their yard ever has been or ever will be a dog run and that he took personal offense as the suggestion that they are creating a dog run. The said that hey plan to put in a 6-foot fence backed with mature trees between the properties. Jeffrey Wong, architect, said that they have addressed several issues in the staff report. First, they have agreed to replace the doors on the side of the garage with fixed glazing. Second, they will install pre- oxidized copper sheen roofing to eliminate any potential glare problems. He noted that the existing house is a two-story structure with a large street fagade, and the stepped construction would improve the visual impact of the structure. Mr. Wong stated that the visual impact on the community would be nominal, and what they are proposing is infilling and within the height of the existing structure. He noted that the addition was designed to be much lower than the existing house. He stated that the neighboring house was originally built as a single story home and underwent significant expansion in 2002 and now has excess floor area, lot coverage, and front and side yard setback encroachments. He said that more than one eighth of that house is located within the side yard setback. He said that the proposed project would be more than 23 feet from the neighboring house. He felt that any issue with the proposed project design being too large has more to do with other structure's proximity to the property line. He believed that they have applied the guiding principles and are presenting a good design. Mr. Wong said that before and after the expansion project on the neighboring house, its primary views are to the south and west, away from the current project. He said that if the current project is completed as proposed, the neighboring windows would still look into landscaping. He stated that both the guest bedroom and side office windows of the adjacent home are beyond the fagade of the storage loft and there would be no visual change from those windows. Boardmember Weller asked how the driveway would access the new garage. Mr. Wong said that they proposed a second new driveway that will enter from the street 8 feet from the side property line. Chair Tollini asked if the front of the proposed structure would be two stories, and Mr. Wong answered yes. He said that the plate height in the front would be 15 feet and it would be 8 feet above that to the low side of the loft. Chair Tollini questioned and confirmed that the plate height was proposed at 15 feet in order to provide enough space for his client to bring in wood to the garage, resulting in 10 to 11 feet of clearance. Chair Tollini asked the reason for the additions to be built separately, rather than clustered more closely together. Mr. Wong said that they were trying to attain a softer look and the proposed design would allow them to nestle the additions into the contours of the site. The public hearing was opened. TIBURON D.R.B. MINUTES #4 EXHIBIT NO. / 3/17/11 Dan Mihalovich said the east elevation of their house faces the proposed structure, have lived in the neighborhood for 23 years, and feel the proposed project is out of character with the neighborhood. The driveway, walkway, and second driveway covering the front of the house are not replicated by any other house in the neighborhood. He said his property is most affected, with impacts of light, views, privacy, and decrease in the value of their own property. He presented photos from their house and from the Parsons' site toward their home showing the views that will be completely blocked by the new structure. The new structure is only 8 yards away from their property. The staff report suggests alleviating their concerns by relocating the west facing doors to the south side of the building. However, these entry doors and garage door will be only 8 yards from their house, and he voiced concern about the noise from the Parsons' dogs and wood shop. Mr. Parsons said the photos taken from his house show an existing condition because of the way the houses step down the hill in the neighborhood. He questioned it being out of character when the building is within the building envelope. He said they are attempting to curve the driveways, and the majority of the driveways will be behind landscaping and not viewable from the street. The public hearing was closed. Vice-Chair Kricensky said that he understood the desire to have a wood shop and he also liked the design of the project. However, he was concerned about the fit of the project with its surroundings. He said that this is really an 11,000 square foot lot with a portion of the old railroad property to the rear, and with that effective size the addition would have 25% lot coverage and would be 700 square feet over the lot coverage. He agreed with staff regarding the massing of the addition. He said that the taller addition on the downhill side of the lot would interrupt the flow of the buildings going up the slope. He felt that the addition could easily be brought up and the brought roof down. He understood having a hobby, but said that this is a residential neighborhood and the project should be kept at a residential scale. He said that the issues had more to do with the scale of the addition than with any potential view impacts. Boardmember Weller agreed and said that he also understood the interest in a hobby, but the hobby should not drive the design of a project. His concern was that the addition would look like just a box added to the house. He thought that the massing was also a concern. He was familiar with the neighborhood and was concerned that adding this mass at the street would be inconsistent with the setbacks of the other properties in the area. He said that the combination of the height and placement of the structure forward on the site would be inconsistent with the surrounding area and with the Town's design guidelines. Boardmember Emberson agreed that she liked the design, but felt that the addition could be moved to the other side of the site without a problem. She said that the mass and bulk facing the adjacent neighbor would be significant and would create a dark corridor. She pointed out the removal of many trees and she questioned if they planned to replant trees. Mr. Parsons said that they had removed 10 trees and moved them to the backyard. Boardmember Emberson voiced concern that the trees would not be replaced and she confirmed with Mr. Parsons that they would be planted. Boardmember Weller asked staff if the Board can adopt a condition of approval that trees are replaced with mature trees. Planning Manager Watrous said the Board can specify the size of the trees. Vice-Chair Kricensky suggested the requirement of a landscape plan. Chair Tollini said the new structure would really be a 2'/2- story structure on the most sensitive part of the property. He said that the project would overbuild on the most visible part of the property and he agreed with Boardmember Emberson that the other side of the property would be less sensitive. He said that TIBURON D.R.B. MINUTES #4 317;11 EXHIBIT NO. staffs recommendation to remove the loft would not completely address his concerns about the height. He felt that the addition needed to be dramatically reduced in scale. He said that the impact on 67 Reed Ranch Road would be incredible and affect the entire lower floor. He said that the separated buildings created an artificially low lot coverage, but thought that the additions might as well be connected as far as mass goes since the separation cannot be seen and it would appear more built out. He said that he would still not be in support of the project if it came back as a one-story structure because of the issues mentioned. Boardmember Emberson agreed that reducing the structure to one story would not change her lack of support for the project. Vice-Chair Kxicensky agreed that the lot felt overbuilt. Chair Tollini said that it appeared that the Board was in agreement regarding a continuance, and suggested that the height be reduced and other less sensitive locations should be considered. He said that he would also like to see more attached buildings. He said that he liked the design and understood what the applicant was trying to do, and he would like to see a revision that the Board could get behind. Boardmember Weller said that there have been problems in the past with separate structures and it might be better to have continuous structures to decrease coverage and density. ACTION: It was M/S (Weller/Kricensky) to continue the application for 65 Reed Ranch Road to the April 21, 2011 meeting. Vote: 4-0. E. PUBLIC HEARING 2. 112 HOWARD DRIVE: File No. 21102; Rob Mickel & Marilyn Zimmerman, Owners; Site Plan and Architectural Review for construction of additions to an existing single family dwelling, with Variances for reduced front yard setback and excess lot coverage and a Floor Area Exception. The applicants propose to add 390 square feet to the home by expanding the garage and front entry of the home, and incorporate a larger kitchen at the rear of the home. The additions would increase the FAR for a total floor area of 3,387 sq. ft. which exceeds the maximum FAR permitted of 3,323 sq. ft. The additions would result in a lot coverage of 24.6% which exceeds the maximum permitted in the RO-2 zone (15.0%). The expansion at the front entry would further encroach into the front yard setback, for a total reduced front yard setback of 23'4" in lieu of the minimum 30' required in the RO-2 zone. APN 039-141-01 The applicant is proposing to construct additions to an existing single-family dwelling, with variances for reduced front yard setback and excess lot coverage, with a floor area exception, on property located at 112 Howard Drive. The proposal would incorporate a larger kitchen area between the existing cabana and dining/living rooms at the rear of the home, as well as increase the depth of the garage, family room and entry area at the front of the home. The proposed additions would increase the floor area by 390 square feet, for a total gross floor area of 3,387 square feet. As the maximum permitted gross floor area for the property is 3,323 square feet, a floor area exception has been requested. The proposed addition would also increase the lot coverage by 378 square feet, for total lot coverage of 3,262 square feet (24.6%). As the maximum lot coverage in the RO-2 zone is 15.0%, a variance for excess lot coverage has been requested. The existing dwelling is currently located 4.2 feet within the front yard setback, for a reduced front yard setback of 25.8 feet. The proposed expansion at the front of the home would further encroach into the front yard setback a distance of 2.4 feet, for a new total reduced front yard setback of 23'4". As the TIBURON D.R.B. MINUTES #4 EXHIBIT NO. 4 3/17/11 MINUTES #6 TIBURON DESIGN REVEW BOARD MEETING OF APRIL 21, 2011 The meeting was opened at 7:00 p.m. by Chair Tollini. A. ROLL CALL Present: Chair Tollini, Vice-Chair Kricensky, Boardmembers Chong and Weller Absent: Boardmember Emberson Ex-Officio: Planning Manager Watrous and Minutes Clerk Rusting B. PUBLIC COMMENTS - None C. STAFF BRIEFING - None D. OLD BUSINESS 65 REED RANCH ROAD: File No. 711011; James Parsons & Andrea Hong, Owners; Site Plan and Architectural Review for construction of an addition to an existing single family dwelling. The applicants propose to construct a 953 square foot addition including a new garage, laundry room, bathroom, & storage loft. APN 038-301-35 On March 17, 2011 the Design Review Board reviewed an application for construction of an addition to an existing single-family dwelling on property located at 65 Reed Ranch Road. At that meeting, the owners of the adjacent home to the west at 67 Reed Ranch Road raised objections to the proposed project. They were concerned about the proximity and visual mass and bulk of the proposed addition, along with potential noise and privacy impacts. The Design Review Board shared many of these concerns, particularly regarding the visual mass of the building and its proximity to the home at 67 Reed Ranch Road. The Board suggested that the height of the addition possibly be reduced, that the applicant consider other less sensitive locations for the addition, and more be done to properly attach the addition to the main building. The Board continued the application to the April 21, 2011 meeting to allow the applicant time to redesign the proposed addition. The applicant has now submitted revised plans for the proposed project. The proposed addition has been moved to the east, away from 67 Reed Ranch Road. The existing detached garage at the northeast corner of the lot would be demolished and replaced with a new three-car garage, with a workshop space at the rear of the garage. The upper floor of the addition would include a guest bedroom and a model train room. The upper level of the addition would be situated at the same level as the existing deck in front of the house. The upper level would connect to the interior of the main level of the house at the family room, with an interior stairway leading down to the lower level of the addition. The workshop space would be separated from the western side of the addition by a doorway and hallway area. Jeffrey Wong, architect, thanked the Board for the continuance on the project and noted that the plan had been redesigned in accordance with the Board's suggestions. He said that they relocated the proposed addition from the western side of the property to the east and moved the structures 40 feet away from the neighbor's house, which was an increase from 25 feet in the previous proposal. He said that this would TIBURON D.R.B. MINUTES #6 g 4/21/11 EXHIBIT NO. allow mature landscaping to remain on the eastern portion of the site. He said that the proposed addition would now be situated on the higher part of the property as a solidly integrated addition. He said that the new garage would feature a smaller workshop space in the rear. He said that they also included a hallway and stairs leading up to the second level. He stated that the hallway would be a heated and enclosed interior space that would act as a buffer for the neighbor on the west. Planning Manager Watrous noted that draft Condition of Approval #11 was a holdover from the previous proposal and was not pertinent to the revised application. Mr. Wong said that the existing house is a post and timber structure with an open floor plan. To ensure a seamless transition to the new addition, he said that a wall would be removed and the rooflines of the existing spaces would be reduced and matched to the addition. He said that they had reduced total lot coverage and reduced visual impact by stepping the massing back and only the second level of the addition would be visible from the neighboring property. He stated that the neighbor's house at 63 Reed Ranch Road is far to the south of their proposed addition and the impact would be only to their driveway and the street. Mr. Wong noted the neighbors' assertion that the proposal would include more than 100 windows. He stated that many of these would be individual glass blocks and he did not see those as windows. Similarly, he noted that the neighbor across the street has 42 pieces of glazing on one fagade but these are not windows. Mr. Wong addressed the concern about proposing a three-car garage and said that he walked around the neighborhood and counted 10 nearby houses with three-car garages. Boardmember Weller asked if the smaller windows would be translucent but not transparent. Mr. Wong answered that they would let in light but one cannot see through them. Vice-Chair Kricensky asked if the story poles conform to the height of the addition and noted that there were several mistakes on the plans. Mr. Wong apologized for the error and agreed that the elevation numbers shown on the plans were incorrect but that the story poles were set correctly. Vice-Chair Kricensky questioned and confirmed that the trees to the west are owned by that property owner and all of the landscaping on the west will remain. Mr. Wong stated that one tree would remain and one would be transplanted to the other side. Chair Tollini noted that one letter still raised an objection to the proposed fence. Mr. Wong replied that the new fence was no longer part of this project. Chair Tollini asked about the proposed second story ceiling heights. Mr. Wong stated that the ceiling height of the bedroom and hobby room would be 10 feet, but the height would rise up to 16 feet in the monitor. The public hearing was opened. Dan Mihalovich stated that the Reedlands is a large neighborhood, mainly comprised of original developments that were built in the 1950s and 1960s, and that the three-car garages nearby are part of a later development where the lots are larger. He referred to the 100 windows or glass blocks proposed and voiced concern with the amount of light that would be generated from the addition when lights are on, as well as pathway lighting from the front door. He did not see how it would be possible to maintain all of the trees on the side of the property when a pathway needed to be cut from the front door to the street. TIBURON D.R.B. MINUTES #6 EXHIBIT NO- _0__ 4/21/11 Christopher Wand said that he lives above the applicant and the lots in this subdivision were created to maximize views. He said that he had received many calls from neighbors who had seen the story poles and had expressed concern that this would set a precedent for very large alterations. He suggested reducing the addition in scale, including the ceiling height, and recommended excavation for the garage. He said that there are a lot of newer larger homes nearby and he agreed with Mr. Mihalovich about three- car garages in the neighborhood. Mr. Wong clarified that a lot of the proposed openings would be all on the garage level which is not living space, and therefore the amount of time that lighting will be on in those areas would be fairly limited. He said that the owners have installed electric panels on the roof and are very sensitive to energy conservation. He said that all of the lighting in those spaces would be downlighting and the windows were intended to allow natural light through. He addressed the issue of closeness to the street and noted that the addition would be behind the front setback line and would not be not any closer to the front than homes on adjacent properties. He cited several three-car garages on Indian Rock, Mariposa Court, and Reed Ranch Road, and said that he did not think that the development in which the homes are located was material. He said that the landscaping would be protected because the owners put many of the plants in themselves and it is in their interest as well to protect them during construction. As far as this project setting a precedent, he noted that this was a fully conforming project and he did not think that that would qualify as setting a precedent. A Boardmember Chong questioned and confirmed with Mr. Wong that the existing roof material is cement. Mr. Wong stated that the new structure will have copper sheeting and they intend to salvage some roof material from the existing garage to match the roof of the house. The public hearing was closed. Vice-Chair Kricensky commended the architect and owner for addressing many of the issues brought up by the Board in the previous meeting. He noted that there would now be 38 to 40 feet between the addition and the home on the west side. He said that attaching the addition more solidly to the house reduces the impacts and that keeping existing landscaping would help act as a buffer. He said that the width of the proposed driveway was not out of character with its surroundings, as the proposed driveway would be narrower than the existing driveway. He said that stepping the building also worked very well. He was concerned about the main entry and stairway and how public that area would be open to the neighbors to the west. He was also concerned about the height and volume of the structure, especially looking at the east elevation when coming down Reed Ranch Road. He said that the difference in architecture between the existing building and the addition also concerned him. He stated that looking at the amount of glass area was more relevant than counting the number of windows. He said that he has seen many houses with more glass area than this one and felt that the eight-inch glass blocks are an architectural feature. Boardmember Weller also commended the applicants for responding to the concerns expressed at the last meeting, particularly separation of the addition from the house and preservation of landscaping. He agreed with Vice-Chair Kricensky that the number of windows was irrelevant. He was concerned about the monitor that would be virtually all glass, as this would be a source of light for the neighbors. He agreed with the applicant that one cannot distinguish between the larger newer houses and the older ones within the neighborhood and that three-car garages are common in the area. He agreed with the concern about visibility of the entryway from adjacent properties. He said that if the light and privacy could be addressed then he could support the project. Boardmember Chong said that no precedent was being set by the garage since the buildings would be behind the setback. He said that the windows and overall glazing did not concern him, but thought that TIBURON D.R.B. MINUTES #6 EXHIBIT N0. 4/21/11 interior light fixtures might be a potential concern. He did not think that the front stairs were as much of a concern because the entry would be simply used to get a person quickly in and out of the house. He was concerned about the difference in architecture of the addition versus the existing house and said that they would look like two different homes. He felt that the applicant was being squeezed by the setbacks of the neighbors' homes. He said that he could support the project if some limits could be established regarding the lighting, but he was unsure about the overall design. Chair Tollini said that the footprint of the house was quite consistent with the neighborhood and the immediately adjacent neighbors and, if anything, would be set back more than a fair number of others in the neighborhood. He did not see the project as being inconsistent with the neighborhood and the three- car garage did not concern him because there were ample precedents for three-car garages in close proximity to the site. He was concerned with the height, volume and general prominence of the addition. He was less concerned about lighting and the windows and saw the windows as a design element that would tie together the old and new portions of the house. He commented on the fact that five rows of windows may make the addition look larger than it is. He said that the addition would be somewhat polarizing, with more and smaller windows instead of fewer, larger windows. He said that the stairs and entry would be close to their current location, a good distance from the neighbors and screened by vegetation. He said that he was not concerned with the different architectural designs, but was more concerned about the height of the structure. P Vice-Chair Kricensky said that he was struggling with the massing of the building. He said that the footprint of the home would be almost identical with its neighbors, but the volume would be larger because the extra space would be more vertical. Planning Manager Watrous suggested that if the monitor above the hobby room was reduced it would eliminate one row of the smaller windows. Chair Tollini agreed that the tallest portion of the addition was the main focal point, but would eliminate the row of windows that help tie the addition to the main house. However, he felt that eliminating this would reduce the height of the back portion of the addition and might help the Board approve the project. Boardmember Weller believed that the addition would be better tied in without the monitor because the structure would be lower. He also thought that light would be reduced by eliminating the row of windows. Chair Tollini suggested other windows could be revisited and encouraged some discretion in the design. Boardmember Chong questioned and confirmed that the ceiling height in the guest bedroom is 10 feet and total height with the monitor is about 12 V2 feet. Mr. Wong said that this was driven by the interior of the existing structure. He said that the existing house is not very attractive and they are trying to create something more visually interesting. Vice-Chair Kricensky suggested pulling in the monitor walls, reducing it, and stepping it back. He said that that would create the same design rhythm and reduce the volume and windows. Boardmember Chong said that some work could be done on the upper area to solve the light issue and to help the two structures come together better. He also felt that some of the six rows of windows could be reduced. Chair Tollini said he would be interested in seeing revised plans to address the monitor and windows. He did not think that any redesign or substantial work should be done to make the new addition look more like the existing house because the existing house is aesthetically challenged. Vice-Chair Kricensky said TIBURON D.R.B. MINUTES #6 4 4/21/11 EXHIBIT NO._ V_____. that he did not think that the addition needed to look like the existing house, but rather some elements could be pulled together. Chair Tollini suggested possible alterations to the existing structure to tie in some of the elements of the addition. Boardmember Weller encouraged the applicant to reduce the rows of windows, perhaps removing the row of windows in the garage, to mitigate the "747" or "cruise ship" look of the design. Chair Tollini agreed that the structure would be more attractive without the extra row of windows in the garage doors. Mr. Wong pointed out that the north elevation was somewhat deceiving and that no one would ever see all six rows of windows at one time because of the eaves and deep setbacks. Chair Tollini agreed. Vice- Chair Kricensky said that he could go either way on the windows on the garage and that it would depend on the design of the garage doors. He suggested some wording regarding exterior lighting around the stairs and entry. ACTION: It was M/S (Chong/Kricensky) to continue 65 Reed Ranch Road to the May 5, 2011 meeting. Vote: 4-0. E. PUBLIC HEARINGS AND NEW BUSINESS 2. 705 HAWTHORNE DRIVE: File No. 21106; Moe and Kowkab Shafaghi, Owners; Site Plan and Architectural Review for construction of a fence, with a Variance for excess fence height. The applicants propose to reconstruct an existing 8 foot tall fence and replace it with a fence with a height of up to 9 feet tall. The fence would exceed the maximum fence height of 6 feet. Assessor's Parcel No. 055-222-11. The applicant is requesting to construct a fence with a variance for excess fence height on property located at 705 Hawthorne Drive. Currently the property is improved with a single family dwelling. The fence would be located on the left side (north) of the property, facing Rock Hill Drive and is proposed at a maximum height of nine feet (9'). The pre-existing fence was damaged by winter storms, and therefore there is currently no fence. The property owner has installed a temporary six foot (6') high fence for safety and privacy. The maximum permitted fence height in any zone is 6 feet. The applicant is therefore requesting a variance for excess fence height, in order to construct a 9 foot high fence. Moe Shafaghi, owner, stated that their fence was damaged by a storm and they want to replace the existing fence. Boardmember Weller asked if any neighbors would be affected by the fence. Mr. Shafaghi answered no because the fence would face Rock Hill Drive. Chair Tollini asked if the existing fence was 8 feet high. Mr. Shafaghi said that when they measured it was 9 feet, 2 inches. Vice-Chair Kricensky asked if the total height would vary, and Mr. Shafaghi said it would vary between 7 and 9 feet and would step with the slope. Vice-Chair Kricensky asked for clarification of the height on the low end, and Mr. Shafaghi said the lower height would be 5 feet plus 2 feet of lattice. Boardmember Weller clarified that 12 feet of the fence would 7 feet high and the remaining portion would be 9 feet high. There were no public comments. Vice-Chair Kricensky said he viewed the fence and he agrees with the staff s findings for the variance. Boardmember Weller agreed and stated that here is a need for a higher fence in that location. Chair TIBURON D.R.B. MINUTES #6 EXHIBIT N0. g 4/21/11 MINUTES #8 TIBURON DESIGN REVEW BOARD MEETING OF MAY 199 2011 The meeting was opened at 7:00 p.m. by Chair Tollini. A. ROLL CALL Present: Chair Tollini, Vice-Chair Kricensky, Boardmembers Chong, Emberson and Weller Absent: None Ex-Officio: Planning Manager Watrous, Associate Planner Tyler and Minutes Clerk Rusting B. PUBLIC COMMENTS - None C. STAFF BRIEFING - None D. OLD BUSINESS 1. 65 REED RANCH ROAD: File No. 711011; James Parsons & Andrea Hong, Owners; Site Plan and Architectural Review for construction of an addition to an existing single family dwelling. The applicants propose to construct a 953 square foot addition including a new garage, laundry room, bathroom, & storage loft. APN 038-301-35 On March 17, 2011 the Design Review Board reviewed an application for construction of an addition to an existing single-family dwelling on property located at 65 Reed Ranch Road. The project proposed to construct a new garage to be attached to the existing house and include a laundry room and bathroom. A second story storage loft was also proposed with a new entry deck and stairs to connect the second story loft to the front of the home. At that meeting, the owners of the adjacent home to the west at 67 Reed Ranch Road raised objections to the proposed project. They were concerned about the proximity and visual mass and bulk of the proposed addition, along with potential noise and privacy impacts. The Design Review Board shared many of these concerns, particularly regarding the visual mass of the building and its proximity to the home at 67 Reed Ranch Road. The Board suggested that the height of the addition possibly be reduced, that the applicant consider other less sensitive locations for the addition, and more be done to properly attach the addition to the main building. The Board continued the application to the Apri121, 2011 meeting to allow the applicant time to redesign the proposed addition. At the April 21, 2011 meeting the Design Review Board reviewed revised plans for the project. The proposed addition was moved to the east, away from 67 Reed Ranch Road. The existing detached garage at the northeast corner of the lot was to be demolished and replaced with a new three-car garage, with a workshop space at the rear of the garage. The upper floor of the addition would include a guest bedroom and a model train room. The upper level of the addition would be situated at the same level as the existing deck in front of the house. The upper level would connect to the interior of the main level of the house at the family room, with an interior stairway leading down to the lower level of the addition. The workshop space would be separated from the western side of the addition by a doorway and hallway area. It was the consensus of the Board that the project was generally responsive to the previously raised concerns. However, the Board still had issues with the overall height and visual mass of the proposed addition, particularly the "monitor" section above the upper floor addition, and the amount and/or pattern of TIBURON D.R.B. MINUTES #8 5/19/11 EXHIBIT NO. windows. The Board gave direction to the applicant on modifications that could possible address these concerns and continued the application to the May 5, 2011 meeting to allow the applicant time to once again redesign the proposed addition. Revised plans have now been submitted. Jeffrey Wong, architect, thanked the Board for their general support and encouragement. He said that the revised plan reduced the height and width of the monitor, reduced the glazing, and streamlined the connection between the monitor and the house. He said that the hobby space had been reduced by 10 square feet and they added the area to the garage. He said that the total floor area of the proposal had not changed and the project was still fully conforming to the zoning requirements. He said that the monitor and the structure below were narrowed in width by 10%. He added that they had lowered the monitor by 6 inches and removed 6 inches of daylight openings. He said that the current design proposed shorter windows, reducing the total daylight openings by 40%. He felt that this would address the nighttime light emissions from the monitor. Mr. Wong distributed photographs of the interior of the house to show the height of the ceilings and existing interior space. He said that by integrating the monitor over the family room they would be able to protect the existing interior style of the house. Mr. Wong distributed a drawing of the structure showing the level changes of the windows on the structure. Chair Tollini asked if the original submission documents included a landscape plan, and whether the plan had changed to accommodate the changes in the design. Mr. Wong answered that there is a landscaping plan and that none of the landscaping on the western side of the lot will be affected. He said that the fencing proposed in the original submission had been removed from the current proposal. He stated that one of the cherry trees by the walkway near the street would remain, and the other would be transplanted by the new wall. He said that small Japanese maples would also be planted. He stated that there would be some changes in the interior of the landscape plan, but no change on the western side and periphery of the site. He said that the driveway would be narrowed, which would increase the possibility of additional screening in that area. In response to a question from Chair Tollini, Mr. Wong stated that the mature elm trees would remain. Boardmember Chong asked if the coast live oak would be removed, and asked if it would be possible to retain this tree. Mr. Wong said that the oak tree was proposed to be removed because of the new walkway in that area, but the tree could be retained. Vice-Chair Kricensky asked for clarification of where the grading will be, given the new driveway and walkway. Mr. Wong said that they would grade as possible in the vicinity of the existing trees along the western property line. There was no public comment. Chair Tollini said one of the items of concern discussed in the last meeting was the orientation of the stairway leading to the front entry and the neighbors' concerns with privacy. Mr. Wong stated that the new entrance deck would be in the same location as the current entrance. He said that the location where the stairway would attach to the entry deck looks into the neighbors' backyard. He stated that in order to see into the neighbor's master bedroorn and bathroom windows, one would have to be almost all the way up the stairs and turned around. Chair Tollini asked if the coast live oak tree that is currently there proposed for removal would be replaced with another plant or tree to block the view of the neighbor's master bedroom and bathroom. Mr. Wong said that his client had worked very hard in the past several years to plant landscaping that protects privacy, and it would be in their own interest to replace the tree with a large specimen tree to protect their own privacy. He said that they had no issue with planting mature trees. TIBURON D.R.B. MINUTES #8 EXHIBIT NO 5/19/11 Chair Tollini questioned and confirmed with Mr. Wong that the applicant would be amenable to a 24 or 36 inch box tree as a condition of approval. Boardmember Chong asked if it was possible to keep the coast live oak, as it provides screening of the higher portion of the deck. Mr. Wong answered that their preference would be to replace it with a mature tree. The public hearing was closed. Boardmember Weller commended the applicant for making changes that satisfied the concerns about lighting and integration of the addition to the existing house. He favored adding a condition of approval requiring that a mature tree be planted to shield the house to the south from the stairway. He characterized the project as an improvement and did not think that the design would create any kind of a precedent for the neighborhood. Boardmember Chong stated that the redesign addressed most of his concerns. He said that he visited the house at 67 Reed Ranch Road and felt that privacy is a relative issue. He suggested rather than reorienting the stairway the live oak should be replaced with one or more large mature trees. Vice-Chair Kricensky said he was still concerned about the grading and the landscaping. He also voiced concern that the allowable floor area ratio on this lot was inflated because it included what used to be a separate lot. He said that the building massing was exaggerated by the tall ceiling plate at the front of the garage. He was unsure whether the addition would be compatible with the surrounding neighborhood. He said that new screening trees would help, but the project would represent a change in the openness of the front deck that might create a privacy problem. He found the design to be a pleasant change, even if it did not necessarily match the existing house. Chair Tollini shared some of Vice-Chair Kricensky's concerns. He agreed that the floor area ratio for this property was tricky because the entire building area was near the street, but did not think that this was an abuse of the FAR. He did not think that the project was necessarily inconsistent with the neighborhood, stating that this is a neighborhood with homes that have significant street presence. He said that he spent a lot of time on the deck gauging the potential impact of the planned stairs on the neighbors' privacy. He said the amount of vegetation in that area and the significant distance between the proposed stairs and the neighbor's home are factors in limiting the privacy impacts. He felt that the privacy issue could be solved with landscaping. He did not think that the stairway needed to be reoriented, but recommended a condition of approval requiring that landscaping must be planted in that area to protect privacy. He acknowledged that both neighbors value privacy and he wanted to minimize the grading near the walkway. Boardmember Emberson said that she found houses with significant visual presence on the street. She thought that the design would improve what is seen from the street and she did not think that the addition would look out of place. She was concerned about the grading, and she hoped that that could be a condition of approval along with requiring a specimen of live oak tree to be planted along the stairway. She noted that the location of the entry deck was not proposed to change. Chair Tollini was uncertain whether one could purchase a three-foot box coast live oak. Planning Manager Watrous said the 15 gallon oak trees tend to grow faster even though they are smaller when they start, and larger trees might grow slower. Chair Tollini suggested that the coast live oak may not grow as fast. Planning Manager Watrous said a 36 inch box coast live oak is a fairly large tree. Boardmember Emberson said she would like to see a native species of tree. TIBURON D.R.B. MINUTES #8 5/19/11 EXHIBIT NO. 9 Chair Tollini summarized the issues and said that a condition of approval for minimizing grading was raised by three different Boardmembers. Vice-Chair Kricensky said he is concerned about the grading only on the west side from the existing house. ACTION: It was M/S (Chong/Weller) that the request for 65 Reed Ranch Road is exempt from the California Environmental Quality Act and approving the request, subject to the attached conditions of approval, and the following additional conditions of approval: 1) grading shall be minimized to preserve the existing trees along the western side of the property, and 2) two (2) 36 inch box native trees shall be planted to screen the top of the entry walkway from the neighboring home at 67 Reed Ranch Road. Vote: 4-1 (Kricensky opposed). E. PUBLIC HEARINGS AND NEW BUSINESS 2. 19 APOLLO ROAD: File No. 21105; Michael and Catherine Soper, Owners; Site Plan and Architectural Review for construction of additions to an existing single-family dwelling, with a Variance for excess lot coverage. The applicant proposes to construct additions to add a family room to the rear of the house and expand the garage to the front of the house to accommodate a new laundry room. The additions would increase the lot coverage on the site to 33.1 which would greater than the 30.0% maximum lot coverage allowed in the R-1 zone. Assessor's Parcel No. 034-262-22. The applicant is requesting Design Review approval for the construction of additions to an existing one- story single-family dwelling on property located at 19 Apollo Road. A new family room would be constructed to the rear of the existing kitchen. The existing two-car garage would be expanded toward the front to allow room for a new laundry room. A new covered entry would be added to the front of the house. The proposed additions would increase the gross floor area of the house by 491 square feet to a total of 1,874 square feet, which is less than the floor area ratio for a lot of this size. The proposed additions would increase the calculated lot coverage on the site by 455 square feet to a total of 2,269 square feet (33.1%), which is greater than the 30.0% maximum lot coverage allowed in the R-1 zone. A variance is therefore requested for excess lot coverage. David Holscher, architect, said that this was a standard Belveron addition. He said that they are requesting a lot coverage variance because in that neighborhood it is important to keep the structure low. He said that they have talked to all of the neighbors and have received only positive feedback. There were no public comments. Boardmember Emberson said that the project seemed like a great solution for this neighborhood and that many other houses in the immediate vicinity have gone over lot coverage. She said that because the property is smaller than the minimum lot size there is a special circumstance that necessitates the variance for lot coverage. She stated that numerous other properties in the area have been granted similar variances to avoid having a second story. She said that three percent was minimal excess lot coverage and she thought that the project as a whole would enhance the neighborhood. All of the other Boardmembers agreed with Boardmember Emberson and with staff s findings. Chair Tollini said this type of project had been done numerous times in this neighborhood, and that building up on a substandard lot is often difficult. TIBURON D.R.B. MINUTES #8 4 5/19/11 EXHIBIT NO. Page 1 of 2 Laurie Tyler From: Dan Mihalovich [dan@thespaceplace.net] Sent: Monday, March 07, 2011 1:58 PM To: Laurie Tyler Cc: Judy Stern Subject: 65 Reed Ranch Road Application / Request of Board Members to Visit 67 Reed Ranch Road Hi Laurie: Kindly pass along this request to Board Members of the Tiburon Design Review Board. Dear Board Members, I am writing to you with respect to the Application filed by our next door neighbors (Parsons/Hong) for construction of additions to 65 Reed Ranch Road. As you may know, our home is the one home which will be MOST impacted by thte proposed construction. We would appreciate your taking the time to come to our house----in particular, to come inside the house----to see and appreciate in full view of the story poles how we will be affected. My wife (Judy Stern) and I are aware that your respective schedules may require a brief and impromptu visit. We are prepared to accommodate you, simply by calling our cell phones and we will make ourselves available to take you through our house. We do not need a lot of notice; the important thing is for you to make a visit inside prior to the Public Meeting on March 17th, if possible. I will also forward to you separate sets, each, of a memo detailing our concerns about the project and some photos which accompany the comments. We are very concerned, unhappy and unsupportive of the proposed plans. Thank you, in advance, for your time and consideration. Dan Mihalovich 67 Reed Ranch Road Cell # 415-999-9244 E: dan@TheSpacePlace.net Judy Stern Cell # 415-518-2205 E: judo stern@)me.com Dan Mihalovich MIHALOVICH PARTNERS EXHIBIT NO.~_ 3/8/2011 MEMO March 8, 2011 To: Tiburon Design Review Board Fm: Dan Mihalovich /Judy Stern, 67 Reed Ranch Roac.-'Ix, Re: Parsons/Hong Application for Proposed Construction, 65 Reed Ranch Road Enumerated for public record is a list of our concerns regarding the proposed construction for the above referenced property. This construction is a significant concern for us since the quality of our current living environment will be compromised significantly by many factors; light and light pollution from a structure within close proximity of our bedrooms, view and privacy. As we've enumerated, we cannot support the construction and addition to this property. We consider ourselves good neighbors to the Parson's and have supported them on other construction projects over the past 18 years. 1. The finished height of the new building would rise approximately six feet above the height of the existing garage. Roughly speaking, the new building will be as tall as the beautiful trees that now stand outside all of our room windows of 4 of 5 rooms and our master bathroom. 2. The site work would require removal of all the large, mature trees now lined along the pathway between our houses; and that several feet of excavation would be required to "sink" the new two-story building into the ground, so that it's new -20 foot height would extend "only" -6 feet above the existing garage. Furthermore, our mature redwood tree may be injured during this construction since it's directly on the site of the proposed new driveway. 3. It's been proposed that a new, solid fence alongside the new building would be entitled at 6 feet in height, but that the purpose of the fence is to enclose their dogs...and that the fence could therefore be reduced to only 4 feet in height---if we preferred the shorter height. We would, of course, prefer that there not be a new building or a new fence blocking our privacy, light and views. We are also concerned that this new fenced area will effectively be a "dog run", adding an additional noise factor where it does not now exist. 4. There was mentioned the potential need for a retaining wall to hold the hill after all the excavation is done. We have no details about this and are gravely concerned to have such a large new building and driveway constructed immediately above our house. EXHIBIT NO. I I 01--z- Mihalovich / Stern • 67 Reed Ranch Road, Tiburon, CA 94920 Tiburon Design Review Board March 8, 2011 ; AMV -W- Page2of2 5. We discussed the side-by-side "barn doors" proposed for the new building with the Parsons, which would face directly toward our house. They confirmed that the doors are "whisper doors" but we assume and anticipate hearing the constant noise of their garage doors opening and closing in very close proximity to our house. Furthermore, we don't know if those doors will be glass garage doors and, if so, will flood our bedrooms with light. Even if they're not glass doors, it was suggested by Jay Parsons that the doors would be open frequently for access for his dogs and will have the same effect of light pollution by virtue of having the doors open. Similarly, the shop noise now generated, that feeds directly out to the street, would instead be directed right into our house---and we assume that, as usual, the shop doors will be open wheAever Mr. Parsons is working in his workshop. 6. We had a lot of discussion about the difference between our current views and natural light---looking through the beautiful trees, across their front garden, open to the sky--- versus looking directly into the walls of a new fence and new building, towering over the east length of our house; and looking onto a new and very close driveway. We do not see eye to eye on these critical points. We will lose significant rights of privacy, light and view; our home will lose value to us and to any prospective buyer. We've just touched on the new driveway in our conversations, yet the driveway is another concern relative to the beauty of their existing garden. People using the new proposed driveway will be able to look directly into our master bathroom window and the other windows referenced above. Additionally, when the driveway is used at night, car headlights will stream into our bedrooms and be interfering and a nuisance. Since the proposed plans affect us significantly more than any other neighbor(s), and we've co- existed for 18 years in a good neighborly way, we are hopeful that our position will be understood and that the TDRB will recognize the impact that this building will have on our property, our property value as well as our day-to-day living. EXHIBIT NO. R 2 rs FZ Mihalovich / Stern • 67 Reed Ranch Road, Tiburon, CA 94920 MAR 1 6 2011 PLANNING DIVISION MARK & LORI HORNE 69 REED RANCH ROAD TIBURON, CALIFORNIA 94920 (4 15) 435-6229 LATE MAIL ..dt`2e~i to .j ~1.e`-~ F~ a~-~ ~ emu- f~ , EXHIBIT N0. 1Z- , LATE MAIL# March 14, 2011 Christopher Wand 5 Burrell Court Tiburon, CA 94920 Re: Parsons/Hong - 65 Reed Ranch Road Members of the Design Review Board: OR 0 E OWE MAR 1 6 2011 D PLANNING DIVISION We live above the Applicants (65 Reed Ranch Road) and their neighbors (Mihalovich/Stern, 67 Reed Ranch Road). We support the neighbors in their opposition to Applicants' expansion project, not only for the reasons they have outlined, but also because the Applicants' prior dealings with the Town fail to demonstrate ordinary compliance with terms, conditions, procedures, and planning staff directives associated with prior projects. Planning Division Notice of Action dated April 27, 2004 (see copy), approving the replacement of a fence, ordered the removal of the redwood trees (see picture), that Applicants had previously planted near their south and east property lines. These trees were never removed, and now they have grown to the point where they are beginning to block our view to the east from our living room, and to block the views of our neighbors, the Beaumonts, at 7 Burrell Court, to the north. In addition, the same April 27, 2004 permit approved replacing a wooden fence with a taller steel-post-and-wire fence, on the condition that the new fence not exceed the limits of the existing fencing. However, in 2000, prior to the issuance of the 2004 permit, Applicants without any notice to us of a permit issuance, had moved the fence line about 12 feet to the south toward our property line and about 8 feet to the west. (See two pictures of fence being installed. The photos include the August 2000 Gourmet Magazine cover to establish timing). At the time, we didn't care because there was still a five-foot gap for animals to use along the game trail between our property and that of the Applicants. (See copy of our letter received by the Planning Division dated April 22, 2004 detailing this.) However, the new steel-post-and-wire fence approved by the town was installed even closer to the corner of their property line than it was supposed to be. (See picture). I recently witnessed a buck struggle to pass through this gap, give up, and turn around because this constriction snagged his antlers. Should the DRB approve Applicants' proposed project subject to any changes or mitigations, we respectfully request meaningful enforcement of the town's directives (including the prior ones), so they do not go ignored to the detriment of the neighbors who sought the changes and mitigations. Sincerely yours, owt,76~_ Diu Christopher Wand EXHIBIT N0. C3 P. (Op? Town of Tiburon • 1505 Tiburon Boulevard - Tiburo*, CA 94920 • P. 415.435.7373 F. 415.435.2438 • www.tiburon.org PLANNING DIVISION NOTICE OF ACTION SITE PLAN & ARCHITECTURAL REVIEW APPLICATION James Parsons & Andrea Hong 65 Reed Ranch Road Tiburon, CA 94920 ADDRESS: 65 Reed Ranch Road APPLICANT/OWNER: Parsons/Hong FILE NO.: 704048 Notice Date: April 27, 2004 Alice Fredericks Mayor Miles Berger Vice Mayor Tom Gram Councilmember Jeff Slavitz Councilmember PROJECT DESCRIPTION: Replace existing fence around property. The areas of a solid wood fence would be replaced with a solid wood fence six feet high. In the area of a wire fence will be replaced with a wire fence six feet high. ACTION: Approved with conditions The replacement fencing shall not exceed the limits of the existing fencing. The redwood trees that have been planted near the south and east property lines are considered undesirable trees, and would require a tree permit to install. The redwood trees shall either be removed, or a tree permit application must be submitted prior to the issuance of a building permit. EXHIBIT NO. I ~ R -off? NOTE: THIS DECISION APPLIES ONLY TO THE ITEMS MENTIONED IN THE WRITTEN "PROJECT DESCRIPTION" DESCRIBED ABOVE. PLANS SUBMITTED TO THE BUILDING DIVISION FOR PLAN CHECK SHALL BE IDENTICAL TO THOSE APPROVED BY PLANNING DIVISION STAFF. IF ANY CHANGES ARE MADE TO THE APPROVED DESIGN REVIEW PLANS, THE PERMIT HOLDER IS RESPONSIBLE FOR CLEARLY IDENTIFYING ALL SUCH CHANGES WHEN SUBMITTED TO THE BUILDING DEPARTMENT FOR PLAN CHECK. SUCH CHANGES MUST BE CLEARLY HIGHLIGHTED (WITH A "BUBBLE" OR "CLOUD") ON THE SUBMITTED PLANS. THE APPLICANT SHALL ALSO SUBMIT AN ATTACHED LIST OF THE PROPOSED CHANGES FOR STAFF TO REVIEW. EXHIBIT NO. 13 - p 3 pF? 1!~ 1 i.. / 11 /"1 V !'1 L.. i 1~ L V 1 V V V V L 1 ~ 1 1 s .i b¢ alt. iitT ~ t ?:±t t~ VZ ~ o ~r AHIBIT NO. 13 P. q a7 r. fi r 7 x;99 ~r .I- i~ l J ti~ 0 FM--1 W H W Re: Parsons/Hong Fence application. 65 Reed Ranch Road. We are the southern neighbors of this property. We have no objection to the removal and replacement of the existing fence with a few items of note: The southern margin of the property is a heavily used game trail following the old railroad right of way. It is the only connection for deer and other wildlife between the Eeleveron Park- Ring Mountain-Indian Rock Court Open Space and the ephemeral creek that drains Ring Mountain as well as the large wooded open space between the Tiburon highlands development and Karen Way. Several years ago the Parsons extended their fence uphill and narrowed this path from about 20 feet wide to the present 5 feet wide bottleneck. We ask that there be no fiirther narrowing or blockage of this path. In addition there is an open and notorious half-mile long easement that has been the traditional route of neighbors, hikers and children between Bel-Aire School- the open space and Reed Ranch Road along this same trail. Approximately 95% of this is codified by the pedestrian easement granted in perpetuity by Fred Grange, the last owner of the old railroad right of way which extends all the way from Bel Aire School to the open section mentioned above and then continues a short distance on to Reed Ranch Road. Extending a fence across this gap would close off this resource just before it connects with its logical outlet at Reed Ranch Road near Indian Rock Court. Also, we ask that the many redwood trees recently planted along the southern and eastern margins of their property be removed before they create view blockage conflicts. The higher wire fence they propose can serve as a lattice for climbing vines. Also the native oak and Ceanothus trees on the margin of our property are reaching their maximum size and have obviated the short-,term privacy function of the immature redwoods. Finally, we ask that the applicants shade or replace with a town approved down-light their newly wall-mounted high-intensity fluorescent floodlight that shines outward across their property line and uphill onto ours. Thank you, Christopher Wand, 5 Burrell Court ].1J, ` ` 1 r I r ~ ~ j~•= JIt EXHIBIT N0. P. b OF? lk IV ^ ( 4 "r ' Y I .~•°WF.,E;••, ~ ' ; ~ ) ~ . `sy . ' - is r j~ : ~ s art ti b y 16 r v o"x- _ lip F a , Ala ~ ~ L r jj ( ~:Y L~'4 VA y" - ( { * ~ . 011 nom; r L EXHIBIT N0. (3 P, -7 cf--) 1w. Via Email f April 17, 2011 Mr. Daniel M. Watrous Planning Manager Town of Tiburon (415) 435-7393 dwatrousC&ci.tiburon.ca.us Re: 65 Reed Ranch Road Construction of Additions April 21St TDRB Hearing LATE MAIL # ~ I~~C IE odRD PAR . 9 2o„ Dear Dan: PLANNING DIVISION As you know, I have once again requested the TDRB Board members to visit our home to review the proposed impact of the Parsons/Hong project (the project they will submit for review and public comment on April 20). I have taken a great deal of time to review their revised site plan, drawings and story poles. In conjunction with my analysis, I have prepared for the Board members the following attachments: 1. For comparison, a copy of the site plan I prepared and submitted in conjunction with the Parsons/Hong March 17th submittal. The yellow highlighted area indicates the lot coverage of their proposed construction. Juxtaposed next door is my home, with the numbered windows indicating access to light and view from each room. 2. The newly proposed site plan, with the same references as above. 3. Our spreadsheet indicating my objections to the proposed project, also stated in the context of local ordinances that I believe will be violated by the proposed construction. It is my opinion that the proposed project should be denied, for all the reasons mentioned in this correspondence. I have enclosed six (6) sets of this letter and the attachments for your distribution to Board members and Staff. Thank you for your assistance. I look forward to seeing you on Thursday evening. est regards, Dan Mihalovich 67 Reed Ranch Road EXHIBIT NO.- j L4 -P. 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O U U C C C C ~ C ~ N C N C ~ O 0-0 zm O v cn p 4-J ~ ~ ~ C N p J d- U to L C O 4-J L- U "p C > (Q a--j Q1 co r- U F- a -W o t~L" i---i r~ 1 1 1 s 1 s S All distances shown are in feet and decimals thereof ' or E G E N D 0 round 3/4" Iron Pipe & Plastic Plug, Starn.ped "LS 5299", per 25 ROS 31 Found Pin in Concrete, per 13 RM 23 € c Set Rivet & Tag, Stamped ';LS 6649" 0 Set 3/4" Iron Pipe & Plastic Plug, Stamped "ES 6649" Set Rub & Tack Wood Fence 1. "R APHC SCA o 20 0 0 a 1l ( FEET. ) A..'ands of Stern us (Dr: 09-051 ~5 ° LO a~S o0 All = O o C~1.0 •`Q VY ~ ~ U S f6 I 895, ~o Z,1 ~ • O S~ Mc N 0 j i{ StL'pS~~C~~',~~ r~ ob NU )~{~~`o~y- ~1~!\\ /S 0P? 9a ( 1 J~ Lj 1 ~ 1~2 2 a Cb age ~ e % Co RESIDE ° 03 d N CE % 2ja ~ CVO ~V nda of a 4 Parsons rj Hong Trust 4'\ (DN 04-0831 Uj cap Lawrence A. Stevens, PLS 6649 Lads of Batt (DN 94-061213) EXHIBIT NO. 14 sa z Plat of Survey Lands of Parsons Hong Trust (Lot 3, 13 RM 23 & DN 88-71023) Tiburon Maria County 0aliforri.,a Scale: 1" - 20' Miarch 2014 L.A. Stevens & Associates, Inc. Professional Land Surveyors (415) 382-7713 7 Commercial Blvd., Suite 1 ° Novato, CA 94949 job # 101262fld Page : Ci Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road (if multiple photos, from left to right) From outdoor deck at front of 67 Reed Ranch Road EXHIBIT NO. 14 Via.. +'L 4 a~ 0 EXHIBIT NO. t4 P. -7 c)= as Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road (if multiple photos, from left to right) From upstairs family room window EXHIBIT NO. I q- - pi, c; F -L e ~-,XHIBIT NO---L, v, q opz~ Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road (if multiple photos, from left to right) From downstairs Bedroom #1 EXHIBIT N0. I P, j o 01= 2-U a„~ ~ ~ : g 4 l•' ~ ~'Wa t I Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road (if multiple photos, from left to right) From upstairs Bedroom #2 EXHIBIT NO. I P. I q CF z(3 i o r i t g..:i 4 T NO. P,csc ,k Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road (if multiple photos, from left to right) From master bathroom (upstairs) EXHIBIT NO. P< <e o-- zb ~ 4' ~ Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road ' (if multiple photos, from left to right) From downstairs Bedroom #3 EXHIBIT NO. P• 20 0P 2 Views from 67 Reed Ranch Road Facing East toward 65 Reed Ranch Road ' (if multiple photos, from left to right) From breakfast room (downstairs) and backyard EXHIBIT N0. N Z3- 0~ -2 S (L 4 C5 z H H 3p4, w .~-sr A ^L ha a hM1 ' iF lp 41 P Re: Application for construction at 65 Reed Ranch Road Other photos depicting perspective of existing conditions versus proposed new construction EXHIBIT NO. 14 T. 26v(=Z rage 1 or i Connie Cashman From: Dan Watrous m's E Sent: Monday, April 18, 2011 8:41 AM To: allDRB Cc: Connie Cashman '41 , Ano v [Ec ROWE APR 1 8 2011 Subject: FW: Late mail PLANNING DIVISION FYI: Late mail for 65 Reed Ranch Road. The fence that the lower part of the message refers to is no longer a part of the application. Daniel M. Watrous Planning Manager Town of Tiburon (495) 435-7393 From: Dan Mihalovich [mailto:dan@thespaceplace.net] Sent: Sunday, April 17, 20114:26 PM To: Dan Watrous Cc: Judy Stern Subject: Re: 65 Reed Ranch Road / "Additions" Plans Hi Dan: We received the Courtesy Notice from TDRB about the Parsons' 4/21 public meeting. I will attend the meeting and be prepared to make comments about our concerns, so please take this email as my formal request to be added to the agenda for that evening. As we've discussed before, I would like to invite the Design Review Board Members to our home to show them the impact of the proposed Parsons plan. Board Members can easily reach us on our home or cell phones. We can make ourselves available to let them in our house on very short notice. Thank you. Best regards, Dan Mihalovich On Apr 11, 2011; at 11:45 AM, Dan Mihalovich wrote: EXHIBIT NO. (S- P. ! OF3 4/18/2011 rage z or Thanks, Dan. We were and remain opposed to the fence. The blockage of our light and views in that direction were front-center to all of the Board members who voted that night in opposition to the then-proposed project. It would defy logic for the Board members to now approve the fence. The issues of the redwood trees and property boundary are pertinent for the reasons Mr. Wand raised in his letter. Evidently the Town never replied to his earlier complaints, therefore he felt compelled to raise the issue again when the Parsons sought out another pen-nit. Must the Parsons adhere to ordinances, or not? That is pertinent to the Town about to issue another permit to the same party. I'll source the species of those plants asap (or you can show the photo around your office). I've seen those plants grow very tall into a thick hedge. Thanks, again. Dan Mihalovich MIHALOVIC PARTNERS Tenant Leasing Services 655 Montgomery Street, Suite 810 San Francisco, CA 94111 T: 415-434-2820 C: 415-999-9244 F: 415-434-2830 E: dan@TheSpacePlace.net W: www.TheSpacePlace.net Milhallovicl Partners is a San Francisco based commercial tenant-representation firm. Visit our website at www.TheSnacePlace. net to learn more On Apr 11, 2011, at 11:36 AM, Dan W atrous wrote : Dan, I will talk to the architect when he drops off the plans and if the fence is no longer a part of the application, I will ask him to remove those story poles. _ EXHIBIT NO. 4/18/2011 P 2. OF rage of As far as Mr. Wand's letter; the issue with the redwood trees is not pertinent to the design review application currently being reviewed by the Town. If he wishes to pursue this as a separate violation of the Town's Tree Ordinance, we will work with him on that. If you have concerns about the plants on the Parsons-Hong property, let me know the species and I can tell you whether they would fall under the Town's definition of "undesirable trees." Sincerely, Dan Watrous Daniel M. Watrous Planning Manager Town of Tiburon (415) 435-7393 From: Dan Mihalovich [mailto:dan@thespaceplace.net] Sent: Monday, April 11, 2011 11:13 AM To: Dan Watrous Cc: Judy Stern Subject: Re: 65 Reed Ranch Road / "Additions" Plans Hi Dan: Thanks for your note. I think the Board made it pretty clear that any additions should be on the other side and/or to the rear of their house; so that's our expectation. I'd like to pick up the plans and the Staff report as soon as they're ready. Please note that the Parsons removed all of their old story poles EXCEPT for the poles outside our windows, which indicated a new C tall fence-line outside our windows. This proposed fence was part of the rejected plan; is there any good reason that the fence-line poles are still standing? We'd like them removed. I am also curious if and to what extent the Town has responded to the letter from neighbor Christopher Wand, who documented redwood trees which were planted by the Parsons and fence-line in violation of ordinance. I'm also concerned that just last week the Parsons planted new fast-growing plants in the front of their house, along our side. I'll ask the nursery for details about these plants (the new red ones, in the photo attached), to see if they comply with local ordinances. Thanks for your help. EXHIBIT NO.- 3 rF 3 4/18/2011 62 Reed Ranch Road Tiburon, CA 94920 April 19, 2011 Mr. Daniel M. Watrous D 0 E 0 W E Planning Manager Town of Tiburon APR 2 0 2011 415-435-7393 RE: Construction at 65 Reed Ranch Road PLANNING DIVISION Tiburon Design Review Board Hearing 4.21.201 1 Dear Mr. Watrous: Our home is located across the street from the Parsons/Hong home. We have reviewed their new plans that are to be presented to the Design Review Board on April 21, 2011 and have some strong objections to them. 1. The structure in the new plan is more objectionable to us than the one in the first plan. It seems as if the building has just been moved to the other side of the yard without much change in design, and, from our perspective, it looks as if it is a much larger building. 2. This is an imposing building of 1440 square feet that is 30 feet long. It sits very near to the street without any room for grass or trees in front of it. We are wondering why an addition this large cannot be placed in their large back yard which could accommodate such a structure. 3. This new three car garage and attached building with all its windows is inconsistent with the character of the neighborhood. There is nothing this large and imposing that is so close to the street. Actually, there is nothing this large and imposing. 4. The new plan seems to convert green grass and trees into a massive structure with huge concrete driveways. 5. We understand that there are around 100 new windows in this plan. The artificial light from these windows will emit a huge amount of light which will impact the entire neighborhood and especially those of us who live across the street. EXHIBIT NO. ~ (v Design Review Board Meeting 4.21.201 1 65 Reed Ranch Road Construction April 19, 2011 We feel strongly that this proposed project should be denied. We would like to see the Parsons/Hongs move this building to the backyard which would reduce the impact to the character of the neighborhood as well as make the building look less imposing. Unfortunately, we will be unable to attend the meeting on April 21. In advance, we would like to thank you for allowing us to express our concerns and for taking these into consideration when making your decision. Sincerely, R o.m -1 -13 Susan and Rich Sundberg EXHIBIT NO. (b -P z &ir- L LATE MAIL MARK & LORI HORNE D IE (o E o V E 6REED RANCH ROAD TIBURON. CALIFORNIA 94920 APR 9- 0 2011 (4 15) 435-6229 PLANNING DIVISION ell, EXHIBIT NO. May 16, 2011 Memo ~ C E 0 W E To: Dan Watrous MAY 1 7 2011 Fm: Dan Mihalovich, 67 Reed Ranch Roa PLANNING DIVISION C~~L Re: Parsons/Hong Application, 65 Reed Ranch Road Please find attached six (6) color copies of my letter to the TDRB of today's date and accompanying photos. Kindly distribute the color versions to the Board members. Also note from my email to you dated May 2, 2011 (copy below for your easy reference), I invited the Board members to our hoyse and to walk the property again---since the Parsons/Hong's proposed plans are different than originally proposed. Once again, I extend the same invitation and hope that all Board members will take a few minutes to do so. Thank you, as always, for your assistance. From: Dan Mihalovich <dan@thespaceplace.neb Date: May 2, 2011 11:02:37 PM PDT To: Dan Watrous <dwatrous@ci.tiburon.ca.us> Subject: Fwd: 65 Reed Ranch Road /"Additions" Plans Hi Dan: Subsequent to the March TDRB meeting, the owners of 65 Reed Ranch Road were offered another opportunity to redesign and resubmit their plans for the April 21st meeting. Insofar as our house is more affected by the new plans than any other, and bearing in mind that the new plans were allegedly an "improvement" over the previous plans, we invited the Board members to visit our house once again to base their decisions on a physical visit to the site. None of the Board members were able to take us up on our invitation. One of the Board members has never been to our home. Once again, prior to the upcoming May 5th hearing, we are inviting the Board members to come to our house and walk the property to see what an imposing and inappropriate plan has been set before the Board. We also want to remind Board members that letters of opposition to the proposed project have been filed by other neighbors. Kindly extend our invitation and we will work around each of the Board member's schedules to accommodate their visit. Thank you for your cooperation. Dan Mihalovich EXHIBIT NO I S I o~e LATE MAIL# ~Gn~'~~~°W ~ uu MAY 1 7 2011 D May 16, 2011 To: Tiburon Design Review Board President and Membersl~ G DIVISION Fm: Dan Mihalovich, owner, 67 Reed Ranch Road, Tiburo Re: Parsons/Hong `Additions" to 65 Reed Ranch Road The following statement follows and supplements my earlier written memo to the Board dated April 21, 2011. For the record, I remind the Board that other immediate neighbors to the proposed project have submitted letters in opposition to the project on more than one occasion; and further note for the Board's benefit that the uphill neighbor to 65 Reed Ranch Road, Cynthia Batt, is an absentee lessor of her home. I am empathetic to the Board insofar as your job is a difficult one. An owner wants to build, within its allowable envelope, and you must be the bearer of bad news insofar as the design, scale and placement of the proposed additions are neither attractive, befitting of the neighborhood nor in accordance with many of the zoning ordinances of Chapter 16 of the Town of Tiburon Municipal Code. The Staff Report written in preparation for this meeting cites only the Guiding Principles (Section H) of Chapter 16 in its cautionary recommendations. However, I remind the Board that Item E. 3. of Chapter 16 alternatively directs the Board to deny the application if "the Board finds that the requirements and principles herein would not be achieved". The Board gave very clear recommendations to the owners at the March 17th hearing. Subsequently, what was a very tall, bulky and unattractive structure was simply turned from its north-south line to an east-west line, all still prominent at the front of the house ...but posing instead an even larger three-car garage. Remarkably, the Board did not shut down the newly proposed plan at the April 21St hearing. It was frustrating to hear the Board's acquiescence on a number of critical issues relative to the new plan. The fact that the proposed addition (`Version 1" in the photo attached) has moved 15 feet ("Version 2" in the attached photo) from our property line EXHIBIT NO. 18 ? 2 0~ 6 To: Tiburon Design Rt~ yew Board President and Members Fm: Dan Mihalovich, owner, 67 Reed Ranch Road, Tiburon Re: Parsons/Hong "Additions" to 65 Reed Ranch Road May 15, 2011 Page 2 of 3 doesn't make the building any less attractive, imposing, or present less light and noise pollution. In fact, the Board appears to be considering moving the Parsons' garage 16 feet closer to our house; and moving the Parsons' front walkway 16 feet closer to our house. Contrary to the repeated assertions of their architect, several mature trees will be removed from the front of the house to make way for the construction as well as the installation of the new front stairs and walkway. The Board appears to be leaning toward settin4 a new precedent for the smaller lots of the Reedlands: massive additions at • That it will be alright to build these ma the front of one's home, including 3-car garages---which do not exist on the street frontage of an similarly sized lots -.nvwhere in the Reedlands. d may • That every owner of similarly positions property expand and relocate its garage 16 feet in the opposite direction. • And that every owner can relocate its front entry 16 feet closer to the property line. The Board initially and properly indicated sensitivity and restraint to the applicants first set of plans, which towered over our property; but little reaction has come from the newly proposed front stairs, which will be redirected and lead directly toward our bedrooms and breakfast room, an invasion of our privacy. The attached photos show the view from our master bathroom (from the bathtub); and upstairs bedroom toward the proposed new walkway. The stairs and walkway will unquestionably be lighted; the combination of these lights with the light emitting from dozens of windows/portals in the new addition will wreak light pollution toward our house and the immediate d neighborhood. This addition will be an eyesore on Reed Ranch Road and will light up like a Christmas tree. It should be noted for pubic record that story poles are not required to indicate new exterior stairwells, walkwayss r driveways. It's up to the Board members and neighbor EXHIBIT NO. / 8 3 pr G To: Tiburon Design R,_-yew Board President and Members Fm: Dan Mihalovich, owner, 67 Reed Ranch Road, Tiburon Re: Parsons/Hong "Additions" to 65 Reed Ranch Road May 15, 2011 Page 3 of 3 make a site visit to try to guess the impact of these supposed "improvements". As a precedent-setting matter, our suggestion is that the Board should not approve conditions where neighbors' privacy is compromised. The subject property is approximately 78 feet across, at the front of the house. Deducting 25 feet for setbacks, only 53 feet across remain for improvements. Relocating garages and walkways 16 feet translates to moves of 30% across the property---substantial changes which impact us greatly. What is 16 feet? That`s the width of our 2-car garage. The plans to create the 3-car garage, of course, do not detail the changes required to excavate at least four feet of earth (the finished garage floor will be 3 1/2 feet below current grade). 16- 52.020 Section B, item 4, states that the Board's approval is required to move more than 50 cubic yards of earth, which surely this project contemplates. As stated previously, the 3-car garage/"shop" will be even larger than was proposed on March 17t". There are side doors proposed to the east and west of the new building, even though there is a direct connection from the garage/shop to the inside of the house. The exterior side doors will let out shop noise (toward our house) and should be removed from the plans. For all the reasons stated herein; those I've articulated to this point; and from the outcry from the neighborhood, I remain opposed to the Parsons/Hong application and recommend that the Board deny the application. Thank you. EXHIBIT NO. /2 p. q c-je 6 ~a k, IN ~~I t.. F 1 \t r _ b Via:=~ c _ +y i? 1 116 EXHIBIT NO v N Raggh I.antt 1`1-c f t,zis LIT, June 28, 2(.)1.1 Via E-mail and U.S. Mail (f~tnritr~~r~s~~c~i.lzhrrrarr.c~n.us} Members of the Tiburon Town Council Town of Tiburon X1505 Tiburon Boulevard TibLiron, CA 94920 Re: Appeal of DRB Approval - 65 Reed Ranch Road - File# 711011 Derr Mayor Slavit aiid Members of the Town Council: Our Office represents James Parsons and Andrea 1 Jong, 111 connection with the appeal of their recently approved remodel project at 65 Reed. Ranc11 Road in `i iburon. 'lie purpose of this letter is to respond to the paints raised in the appeal and to encourage the Council to dopy the appeal and uphold the nearly Unanimous approval decision of the Design 1Zevicw Board (DRB). `Che appeal of this project was filed on May 27, 2011, by an adjacent neighbor at 67 Reed Ranch Toad, Mr. Dan Milia lovic.h. The appeal raise's four issues, each of,,AThi.cll were d1SCLISSCd in detail by they DRB, and each of which are addressed below. These four issues are "bulk and height" (,due to Floor Area Ratio, grading, a driveway and walkway, and vegetation. Project History The Parsons/Hong family seeks to Update their hone by demolishing, and replacing their existing garage, and by "infilling" the Unused space between their garage and home. From the outset, they have worked carefully to design a project that requires no variances whatsoever, and that fully complies with every applicable develop111ent standard and finding in the Ioninc, Code. Achieving; this somewhat rare feat was made even more difficult by the fact that the adjacent home of the appellant significantly encroaches into the side-yard setback in the direction of the Parsons/ 1 long residence, and also by the fact that this encroaching part of the EXHIBIT N0. ! Raggh.I.antl, rr(,IC-(J 1,1,P Tiburon `howls Council tulle 28, 2011 Page 2 of 5 h'lihalovich residence has been developed with no it prilllary view living areas and windows directly facing the applicants' hone. The DRB reviewed this project at three different ineetings ill March, April, and May of 2011. Input froIll DRB members, as well as the appellant, resulted in significant changes being made to the initial design and all eventual 4-1 approval. The most significant change cane after the March DR13 ineeting when the applicants relocated their proposed addition from the side of the, property closest to the appellant's residence, all the way to the ininiillum setback oil the other side of the Parsons/I Tong property. The propcsed addition is now a full 38 feet from the residence at 67 Reed Ranch Road. This change was a major concession by the Parsons/Ilongs, as they sacrificed the primary view from their living room by agreeing; to this relocation. The DRI3 agreed that this change completely addressees any privacy, access to light, access to all,, or noise concerns that ilia), Nave arisen as a result of the ori~.;Iilal location. After the relocation of the addition, the DRl3 gave the applicants sc:)Ilie filial directio11 in regards to the height all(] illass of the project. It was specifically requested that the „monitor„ feature of the addition be reconfigured and the glazing reduced. At the filial DRI3 meeting a shorter, smaller, and redesigned monitor was presented along with a 40% redUCtioil in glaZing. The Board thanked the Parsons/Moll, family for their responsiveness and the project was approved. Floor Area Ratio The first point of the appeal is that the subject lot is "artificially large„ and therefore the buildable area is "artificially inflated." This position finds no supPol-t in the 'howls Code, the opinion of staff, ol. the history of the lot. It is undisputed in the records of both the Town of Tiburon and the Maria County Assessor's office that the proposed project is oil a single, "1.8,729 square foot lot. This lot size is the result of a lot illerger that took place in the early 1970'x, well before the Parsons/Hong, family Purchased of the Prop('rty. EXHIBIT NO. P~7' OLC Ragghia.nti I FreIt,ICAS I'Ll, Tiburon 'T'own Council June 28, 2011 I'ag,e :3 of 5 Floor Area Ratio (FAR) is defined as the grass floor area of buildings on a lot divided by the lot area. The term "lot area" is defined as, „the total area included within the boundary lines of a lot, exclusive of the area of access con ridors or portions of the lot within existing or planned street lines." (16-100.020(l)) A lot, including the one owned by the Persons/ Hong family, cannot be "artificially large," or the FAR "artificially inflated." The Town Code clearly defines what constitutes a "lot," and Table 5-2 of Section 16-52.020 of the loninf; Code clearly sets forth the allowable FAR, which this fully compliant project does not exceed. `I"he purchase price paid by the Parsons/lloilgs fully accounted for the size of the lot. Furthern-imie, the 1970's m.erge.i~ that created the lot prevented the development of what could be up to four homes oil what is now one lot. After the requested redesign, the DR13 was satisfied with the "bulk aid mass" of the l.)roposed project and we request that the Council upheld this decision. Grading, The appeal erroneously Bugg gists: 1) that a "huge Cut" is required by this project, 2) that "4 feet of earth will be removed," and, 3) that the DRI> slid not have grading; information "in its possession at the time of their decision." The appeal does not articulate what makes the proposed cut "huge," -nor how this cut would somehow render the project noncompliant with the Town's Code. First and. foremost, the grading; for this project, like all others in Tiburon, will be subject to careful review and monitoring; by the Town's Building; Department. Sec()ild, the regUired cut is far from huge as it ranges from 0 to 39 inches over only the very front area of the lot. This soil remmal is necessitated by the slight slope of the lot and the multiple, desi fail intentions to match interior floor and ceiling; levels and keep the overall height of the proposed addition as shoat as feasible. Two-thirds of the required cut would occur tinder the footprint of the proposed addition. As a cursory review of the mim.ites of the May DR13 hearing; indicates, grading; was actually discussed gUite extensively by the Board members, particularly in the context of- tree protection (as discussed below). The z-equii-ed removal of a thin layer of soil in a relatively small area towards the very front of the lot is not a "huge cut„ that would prevent this project from moving; forward. EXHIBIT NO.I Ragg l.Ian.t1I I' l "tS 111-1 1 iburon t own Council June 28, 201, 1, Page 4 of 5 Driveway and Walkway The appeal incorrectly states that the "architect's drawing; did not address the driveway or walkway." In fact, the first iterations of the plans clearly showed the location and size of the driveway and walkway. John Kricensky of the DRB noted that the width of the driveway was actually decreasing at the street frontage and he was pleased with this reduction in visual impact. While the updated plans submitted at the final. I)RB meeting did. not show the driveway and walkway, these elements were unchanged and had already been fully vetted and approved by thepDR13. Vegetation I'lle vegetation. Section of the appeal is the most inaccurate. From the outset, the site plan for this project has shown certain trees to be removed, a tree to be relocated, and new trees to be added. The applicant never made the nonsensical suggestion that, „none of the mature trees on the property would be affected." In fact, significant discussion took place about an appropriate replacement for the double-trunk oak being; removed. What the applicant slid SLIggest, and what became the subject of a DR13 condition of approval, was that the mature trees near the shared property line were to be preserved. All projects of this filature are reviewed by the lire Marshal, and the applicants have already been in close contact with the fare department to ensure that their required screening trees are of a size and type that meet the Tire Marshal's requirements, while also serving; the nlutatally desirable purpose of screening, the two subject properties. The Parsons/ I--long property has, and will continue to, bear the burden of providing the screeningr for the appellant's property. The appellant provides no screening on his side of the property line while demanding the applicants utilize their lot for extensive plantings. Given the mutual desire for screening, the Parsons/I-long family is happy to continue to provide this vegetation. There is no component of this project's vegetation plait that warrants granting; the appeal. EXHIBIT NO. 11 lkf Tiburon Town Cotincil j u ne 28, 2011 I'age 5 of 5 Conclusion The issues contained in the appeal are not new umes. The DPI3, which the Council has vested, with discretion over projects like this one, carefully considered each of these issues, sometimes requiring modification of the project in response. The appeal appears to be a "kitchen sink" approach to simply preventing any new, legal development on an adjoining piece of property. Interestingly, the proposed project would result in a development pattern strikingly similar to the pattern already existing on the appellant's property. We request that the CO L11161 uphold#the decision of the DRT3 and deny the appeal. Thank you for your consideration and please do not hesitate to contact the undersigned with any comments or gUCSti011S. Very truly yours, r . Riley F. Hurd. III CC: James Parsons Andrea I-tong EXHIBIT NO. l I M 0 W ~I Ida tid, r .t.~ 1 13 ` h'~'._, i • ~r ~'.y ' yA 1^ AL iA~. V .Ily" R. ~4' te~ 1~ .~f S~~ f~ I~ - c i rt ~k ti w s- w-. s ,>F ,j z .er . I~ f~ l~ r~ j = 1 R a~ , V rdr;y _ -z > _ IINI `Ft a1 _ tv. S K 7-n F n k ~~T AT N ~ -Avcm I N A. r A YYt Ywf ' I ~i t r~ mac' r, 'of 41 f = r- P WSi ~Kt ir9 u $ d } f 3u* i' sis r Y 4 ✓ 1r' e r - . tF: ~ 11iS~m " 3 ~ a T f ' i 1 IF 41 1 z's T S'4 ,a. I ,t A ~ ~yrr S1 d r- 'q. F 1 fti'Q'•1P Y giy .Y. . ¢ It1(4 -i d 'A ~ 4?j Y X, l LL Z /Z6- F-4 t ana 4 p ` ~ g ,i tY~ y c- ` sw~ ~u s Y r a b 4! .rte j l _ ` 9 YY ! 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