Discuss and Consider Potential Amendments to City Code Section 117-351 (Home Occupations)

The purpose of this case is to establish a set of guiding principles in order to prepare an ordinance to amend the City's Home Occupation regulations.

As the Planning Commission will recall, the topic of Home Occupations was briefly discussed at the January meeting.  Late in 2013, the City Council requested that the topic of Home Occupations be scheduled for a future City Council Work Session.  This was the result of concerns that have been raised in response to previous Home Occupation Permit reviews. 

Staff is looking for direction on the following standards in preparation of an ordinance and City Council Work Session review:
 

1. Should the City establish new standards on the number of commercial vehicles permitted per dwelling associated with a Home Occupation?
2. Should the City establish new standards on the number of pieces of commercial equipment (skid steers, trailers, mowers, etc.) permitted per dwelling associated with a Home Occupation?
3. Should the City establish new standards on the amount of outside storage/exterior evidence?
4. Should the City establish differing standards based on lot size?
5. Should the City establish different standards based on zoning district (MUSA, Rural Developing, etc.).
6. How should the City address the topic of noise standards as expressed by neighboring properties?

Based on the comments received at the January meeting, the emphasis was to focus on the safety, peace and enjoyment, and aesthetics and how to better differentiate between parking of a commercial vehicle overnight versus the parking/storing of commercial vehicles related to home occupations.  Additionally, Staff is providing some general background information regarding what types of home occupations are approved administratively rather than through a full review by Planning Commission and City Council.

No notification is required at this time as this is for discussion purposes only.

The Home Occupation standards were last amended in May of 2008, which resulted in a tiered review approach.  Generally speaking, these tiers included (paraphrased from City Code):
 

1. Exempt from Permit Requirements: Certain home occupations with no on-site customers, no on-site employees, and no exterior evidence.
2. Administrative Permit Required: Small scale home occupations with a limited number of customers, limited number of on-site employees, and no exterior evidence may be able to be approved by Staff.
3. Full Permit Required: Permits that exceed the specific standards of the summarized uses above require approval by the City Council following recommendation by the Planning Commission (processed as a Conditional Use Permit).

Since the Home Occupation standards were last amended, there have been about twenty-four (24) Home Occupation Permit applications processed and of those, they were evenly split between administrative Home Occupations and Home Occupations processed in accordance with the standards for a conditional use permit.

Those that qualify as an administrative Home Occupation generally are brought to the City's attention by the applicant rather than through the code enforcement program.  The majority of these types of requests involve businesses such as message therapy, photography studios, cosmetology, music instruction, etc. with no exterior evidence of the business and no non-resident employees.  These types of Home Occupations typically do not generate concerns from a neighborhood as they are low impact and are fairly inconspicuous.

Home Occupations that have been processed in accordance with the provisions for a conditional use permit have more often than not been the result of a complaint filed with the City.  These Home Occupations typically have exterior evidence of the business such as commercial vehicles and/or equipment, non-resident employees, and more outside activity than administrative Home Occupations.  These Home Occupations are more often related to construction businesses/contractors that have multiple commercial vehicles and/or equipment that are stored on the residential property.  These typically are those that are readily seen and/or heard by neighboring property owners. 

The intent of the Home Occupations Ordinance is to permit home occupations in residential neighborhoods without impacting the peace, quiet, and domestic tranquility of the neighborhood.  Furthermore, the standards are intended to guarantee all residents freedom from excessive noise, excessive traffic, nuisance, fire hazard and other possible effects of a home occupation.  The difficulty is finding general consensus of what that threshold is that negatively impacts the tranquility of a neighborhood.  Does the presence of one (1) commercial vehicle negatively impact the residential setting or can some threshold be identified as generally acceptable before impacting that sense of tranquility?  Would property size need to be taken into consideration when assessing this question? 

Presently, commercial vehicles/equipment can be parked on a residential property if they are stored in accordance with Section 117-355 (Residential Development Off-Street Parking), which requires parking on an improved surface and screening to a degree of fifty or seventy-five percent (50% or 75%) depending on the zoning district.  If it is not related to a Home Occupation, than it would not require any review or permit through the City.  Staff believes that the intent of this provision was to lawfully permit one (1) commercial vehicle and/or one (1) commercial piece of equipment to be parked outside on a property; however, that is not specified within City Code.  It appears that it was intended for those that were able to bring their work vehicle home each night to do so lawfully, as they would only be parked on the property for shorter periods of time. Thus, Staff believes City Code language could be better clarified establishing a limit on the maximum number of commercial vehicles and equipment, thus addressing some of the secondary effects of these complaints. This would appear to be in line with previous Planning Commission recommendations on specific requests in the past and be better in line with the peaceful tranquility of a residential neighborhood. The Planning Commission could also consider altering setbacks for commercials based on feedback the City has received from neighboring properties of approved Home Occupation Permits.

In addition to setbacks, another tool or mechanism that could be reviewed/implemented is a property size threshold.  Presently, City Code does utilize three (3) acres as the threshold between being allowed one (1) non-resident employee versus three (3) non-resident employees.  However, a similar threshold could be considered related to whether there could be any exterior evidence of a home occupation at all.  Or, another consideration may be whether below a certain property size, there be a specific limit of how many commercial vehicles and commercial pieces of equipment could be stored outside on a property.

Attached to this case are ordinances from adjacent and nearby communities related to Home Occupations.  Also, Staff has compiled a list of existing definitions that seem relevant to this discussion as well.  Finally, Section 117-351 (Home Occupations) is also attached for review of current standards.

Review of the Home Occupation Ordinance is being handled as part of normal Staff duties.

Staff is seeking comments and direction from the Planning Commission on desired revisions to the current Home Occupation standards that will be incorporated in the information presented to the City Council at a future work session.

Based on discussion.