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6.1. PCSR 03-26-2019Request for Action To Item Number Planning Commission 6.1 Agenda Section Meeting Date Prepared by Public Hearings March 26, 2019 Chris Leeseberg, Senior Planner Item Description Reviewed by Home Occupations Zack Carlton, Planning Manager Reviewed by  Ordinance Amendment, Case No. OA 19-03 Action Requested Recommend, by motion, approval of the Ordinance Amendment as proposed. Background/Discussion The Planning Commission postponed action on this request during their February 26, 2019, meeting. They directed staff to update the proposed amendment with their suggested changes for further review. Staff suggested the proposed changes to preserve the rights of adjoining residential property owners from permitted home occupations. Permitted home occupations should have little to no impact on resident’s enjoyment of their property. These are approved administratively by city staff, and business uses within a residentially zoned neighborhood should be more heavily regulated to maintain the expected residential character. If an applicant wants to exceed the permitted requirements, possibly affecting neighbors, they will need to apply for a Conditional Use Permit (CUP), which will be reviewed by the Planning Commission and City Council with a public hearing. The purpose of the ordinances regulating home occupations is stated in Sec. 30-801 (a): Purpose. The purpose of this section is to provide a means, through the establishment of specific standards and procedures, by which home occupations can be conducted in residential neighborhoods without jeopardizing the residential character or health, safety and general welfare of the surrounding neighborhood. In addition, this section is intended to provide a mechanism enabling a distinction between permitted home occupations and conditional or customarily "more sensitive" home occupations, so that permitted home occupations may be allowed through an administrative process rather than a quasijudicial hearing process. The standards for administrative approval of a home occupation should be evaluated against this standard. Deviations from the permitted use standards can be accomplished with a CUP. Hours of Operation Staffs recommend the hours of operation, for a permitted home occupation, be limited to 9:00 a.m. – 7:00 p.m. (10 hours) to provide extended quieter earlier morning hours and for more quiet time in the evening so property owners can enjoy their properties without having to worry about possible noise issues after 7:00 p.m. The proposed hours of operation have been adjusted to 7:00 a.m. – 9:00 p.m. (14 hours) as the commission requested. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Customer/Client Limitations The Commission also wanted the text pertaining to the number of allowed customers/clients per day for permitted home occupations to be removed. The customer limit has been removed with the proposed language. Noise Mitigation Also suggested for removal by the Commission was the requirement all doors and windows shall be closed while an occupation is in operation. Not to detrimentally affect the use and enjoyment of surrounding residential neighbors, staff is still recommending this. The purpose of home occupation ordinances and regulations are to ensure the safety and general welfare of all public and surrounding properties, not just the applicant. The welfare of surrounding residential properties should be of primary concern when establishing permitted home occupation standards. The burden of policing business noise should not fall on neighbors to contact police or city staff when or if an issue arises. If they want to operate their business with windows and doors open, they can apply for a CUP where the Planning Commission and City Council can then determine if their specific use will or will not be detrimental to neighbors after those neighbors have had an opportunity to voice their concerns. It was asked during the meeting if sound issues/complaints could be enforced with existing noise ordinances. Yes; however, this process may go on for days, weeks, or months with city staff taking sound measurements at different times of the day and in different conditions to determine whether the threshold for the MPCA Guide to Noise Control has been exceeded. This sound testing approach, to protect residential neighbors use and enjoyment of their property, would be at a cost to the taxpayers. In addition, the testing most likely will not remedy noise inconveniences and disruptions experienced by neighbors, as in most cases, it is not anticipated the MPCA noise threshold will be exceeded, as was determined with testing on two larger commercial businesses adjoining residential districts. Are the MPCA thresholds enough when dealing with home based business operations within a residential setting? The MPCA guidelines take into account long-term exposure and hearing loss but not annoying, bothersome, and obtrusive noise levels. From an enforcement standpoint, it will be clearly understood by residents, staff, and the owner of a home business when a violation has occurred. Again, in establishing standards for a home occupation the city should look out for the best interests of nearby residential property owners when someone asks to introduce a use typically not found in a residential neighborhood. There was discussion on how some of these home based businesses can become successful businesses in a community, but policy for residential properties must remain focused on the intended residential use. Council Meeting If acted on, this item will go to the April 15, 2019, City Council meeting. Attachments  Proposed Ordinance N:\\Departments\\Community Development\\Planning\\Case Files\\OA\\OA 19-03 Home Occupations\\4-Planning Commission\\3-26-2019\\6.1 sr OA 19-03 PC 3-26-19.docx Sec. 30-801. - Home occupations. (a) Purpose. The purpose of this section is to provide a means, through the establishment of specific standards and procedures, by which home occupations can be conducted in residential neighborhoods without jeopardizing the residential character or health, safety and general welfare of the surrounding neighborhood. In addition, this section is intended to provide a mechanism enabling a distinction between permitted home occupations and conditional or customarily "more sensitive" home occupations, so that permitted home occupations may be allowed through an administrative process rather than a quasi-judicial hearing process. (b) Prohibited activities. No home occupations (permitted or conditional) shall: (1) Constitute a fire hazard to neighboring residences, adversely affect neighboring property values, or constitute a nuisance or otherwise be detrimental to the neighbors because of excessive traffic, noise, glare, odor, electrical interference, vibration, dust and other nuisance or safety hazards. (2) Adversely impact governmental facilities and services, including roads, sanitary sewers, water, storm drainage, garbage service, police service and fire service. (3) Adversely affect sensitive environmental features, including lakes, surface water and underground water supply and quality, wetlands, slopes, floodplains and soils, or other factors as found relevant by the city. (4) Involve the use of hazardous materials or activities. (5) Involve any of the following: body shops, machine shops, welding, ammunition manufacturing, flea markets, motor vehicle repairs or sales, escort businesses, or any sexually oriented land uses, gun repair and/or sales, or other objectionable uses as determined by the city council. (c) Permitted home occupations. Permitted home occupation (Occupation) permits shall be issued subject to the conditions of this section, other applicable city ordinances and state law. A permit for a permitted home occupation may be issued by the city based upon proof of compliance with the provisions of this section. Application for the permitted home occupation Occupation permit shall be accompanied by a fee as adopted by resolution of the city council. If the city denies an permitted home occupation Occupation permit to an applicant, the applicant may appeal the decision pursuant to the provisions of subdivision II of division 2 of this article. Permitted home oOccupations are subject to the following criteria: (1) The oOccupation shall be carried on entirely within the a dwelling unit, accessory dwelling unit, attached accessory structure, or detached accessory structure or attached garage, except that light construction contractors may use detached accessory structures which would normally be allowed under the provisions of this article for storage. If the home oOccupation is carried on in an accessory structurethe garage, the minimum amount of required garage space shall be maintained. (2) There shall be no exterior evidence of the home oOccupation such as displays or exterior storage of business equipment, materials, merchandise, inventory, and/or heavy equipment. (3) No permitted homeThe oOccupation shall not require internal or external construction features not customarily found in single-family residential dwellings. (4) For auto repair Occupations, no more than five (5) vehicles, not owned by the property owner, shall be allowed on site at any given time and shall not be visible from any property line. (4)(5) A maximum of one (1) full-time employee, or equivalent, other than those persons who customarily reside on the premises shall be employed. This provision shall not apply to dwellings where the permitted home oOccupation is a meeting place for employees and the work is done off-premises. (5)(6) Permitted home oOccupations involving teaching shall not exceed two five (5) pupils at a time. (6)(7) Any sign or visible advertisementSignage shall not exceed four (4) square feet in area and shall be mounted flat on the outside wall of the dwelling unit, attached accessory structure, or detached accessory structuredwelling. (7)(8) No permitted home oOccupations shall not be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. (8)(9) No home oOccupations shall not operate or have outside employees and/or customers on site between the hours of 10:009:00 p.m. and 7:00 a.m. (9)(10) Permitted home oOccupations shall not create a parking demand in excess of that which can be accommodated in an existing driveway, where no vehicle is parked closer than 15 feet to the curbline or edge of the paved surface nor is parked within any right- of-way. (10)(11) The operation of any wholesale or retail business, unless it is conducted entirely by courier, email, or mail, and/or does not involve the sale, shipment, or delivery of merchandise on to or from the premises, is prohibited. On-site sales shall be limited to those clearly incidental to services provided in the dwelling. (11) Permitted home occupations may not involve repair of internal combustion engines or use of equipment which is not normally found in a home, except that equipment which is typically in an office may be used. (12) All openings in the envelope of the structure, utilized by the Occupation, must be closed while the Occupation is in operation. (12)(13) The applicant shall obtain and include with their application, written proof that the homeowner's association, if one is present, has received seven days' notice of the application for an home oOccupation. (d) Conditional home occupations. Home occupations that do not involve prohibited activities but that exceed the permitted home occupation criteria may be allowed with approval of a conditional use permit by the city council pursuant to the provisions of subdivision II of division 2 of this article. (e) Inspections. The city may at any reasonable time inspect the home occupation to determine if the applicant is strictly adhering to the criteria for a permitted home occupation or the conditions placed on a conditional home occupation. (f) Revocation or expiration of permit. (1) Permitted and conditional home occupation permits shall remain in effect until such time as there has been a change in the conditions of the operation or until such time as the provisions of this section have been breached. At such time as the city has reason to believe that either event has taken place, the owner of the home occupation may cease the operation or request a public hearing be held pursuant to the provisions of subdivision III of division 2 of this article to consider the matter. (2) If the proposed work described in a home occupation permit has not been substantially completed within two years after its date of issuance, the permit shall expire and become void, except that the council may, following recommendation of the planning commission, extend the permit for an additional period determined by the council on the receipt of a request for a permit extension prior to its expiration. (3) The permit shall terminate if, for any reason, the authorized use ceases for more than six months. (Code 1982, § 900.25; Ord. No. 05-09, § 2, 4-4-2005; Ord. No. 14-16, § 1, 11-17-2014) Cross reference— Licenses and business regulations, ch. 38.