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CC - 2012-70 - Adding a Home Occupation License FeeRESOLUTION 2012 -70 A RESOLUTION OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADDING A HOME OCCUPATION BUSINESS LICENSE FEE WHEREAS, a new Home Occupation Ordinance has been adopted by the City Council of the City of Rosemead, California, as Ordinance No. 925; and WHEREAS, an important element of the ordinance is the licensing of home occupation business owners to provide assurance to residents of the City that home occupations will not disrupt, become a nuisance, disturb, or modify the character of the residential zones within the City of Rosemead, and WHEREAS, business owners of home occupations must abide by the requirements of the ordinance when conducting home occupation activities, and WHEREAS, The primary method of assuring that the requirements of the ordinance are being met by home occupation business owners is through the business license process that subjects business owners to operation regulations and ongoing licensing requirements, and WHEREAS, in accordance with Proposition 26, the City is entitled to recover those costs of enforcing the terms of the ordinance by collection of business license fees; and WHEREAS, the City currently requires a business licenses for a professional commercial business; and WHEREAS, the City wants -to place home occupation businesses on a substantially similar basis as it treats other professional occupation business owners in nonresidential zones; and WHEREAS, the City has determined that based on the personnel costs of City staff and the time expected to be needed to review applications, along with the costs associated with the enforcement of the regulations, that the costs of processing business license applications are substantially covered and are not exceeded by the fees proposed below. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Rosemead City Council imposes the following business license fees: • Home Occupation Business License (New License) $100.00 1 • Home Occupation Business License (Renewal) $ 50.00 SECTION 2. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, and ADOPTED this 8 day of January, 2013. �\ 4" Sandra Armenta, Mayor City of Rosemead, California ATTEST: ra, Molleda, City Clerk City of Rosemead, California: APPROVED AS TO FORM achel H. Richma orney Burke, Williams & Sorensen, LLP 2 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing Resolution No. 2012 -70 being: A RESOLUTION OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADDING A HOME OCCUPATION BUSINESS LICENSE FEE was duly and regularly approved and adopted by the Rosemead City Council on the 8T" of January, 2013, by the following vote to wit: Yes: Alarcon, Armenta, Low, Ly No: None Abstain: Clark Absent: None IL 4A l oria Molleda City Clerk ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ACCRED, CITY MANAGER DATE: JANUARY 8, 2013 SUBJECT: MUNICIPAL CODE AMENDMENT 12 -01, AMENDING THE ROSEMEAD MUNICIPAL CODE TO ADD REGULATIONS PERTAINING TO THE LICENSING AND OPERATION OF HOME OCCUPATIONS IN THE CITY OF ROSEMEAD SUMMARY Municipal Code Amendment 12 -01 consists of City of Rosemead initiated amendments to revise Title 5 (Business Licenses and Regulations) and Title 17 (Zoning) of the Rosemead Municipal Code. The purpose of the amendments is to allow home occupations as an incidental, accessory use in the R -1 (Single - Family Residential), R -2 (Light Multiple Residential), R -3 (Medium Multiple Residential), and RC -MUDO (Residential /Commercial Mixed Use Development Overlay) zoning districts. The regulations and procedures set forth in Municipal Code Amendment 12 -01 are intended to ensure that home occupations are compatible with the character of City of Rosemead's residential neighborhoods. The proposed Ordinance No. 925 (Attachment A) addresses licensing /permitting provisions, operating standards, and zoning limitations to ensure that home occupations will not disrupt, become a nuisance, disturb, or modify the character of the residential areas within the City of Rosemead. This item was presented to the Planning Commission for consideration on November 19, 2012. At that hearing the Planning Commission reviewed the proposed home occupation regulations, as well as a letter of public comment that was submitted by a Rosemead resident. In response to public comment and testimony, the Planning Commission added language to Section 5.41.100 of the Ordinance to clarify that testing, maintenance, repair, towing and storage of any boat, aircraft, or motorized vehicle is prohibited as a home occupation. With this revision, the Planning Commission adopted Resolution No. 12 -20, recommending that the City Council ADOPT Ordinance No. 925. The Planning Commission report, meeting minutes, Resolution No. 12 -20, and letter of public comment are attached as Attachments E, F, G, and H respectively. The City Council was presented the Municipal Code Amendment 12 -01 on December 11, 2012. At the meeting, the City Council directed that the item be continued to the January 8, 2013 City Council meeting to allow additional time to review the document. The City Council staff report is included in this report as Attachment I. ITEM NO. , City Council Report January 8, 2013 Page 2 of 6 Staff Recommendation It is recommended that the City Council take the following actions: 1. Conduct a public hearing and take public testimony; 2. Introduce for First Reading, by title only, Ordinance No. 925 (Attachment A) to regulate home occupation businesses and to bring back Ordinance No. 925 to the City Council meeting of January 22, 2013, for consideration of adoption. 3. Adopt the Negative Declaration (Attachment B) as the CEQA determination for the project; 4. Adopt Resolution No. 2012 -70 (Attachment C), establishing business license fees for Home Occupation Businesses; and BACKGROUND The existing Rosemead Municipal Code (RMC) does not currently contain provisions for home occupations. A home occupation is typically defined as a business activity that results in a product or service for financial gain and is conducted wholly or in part in the dwelling unit or garage and is clearly an accessory or incidental use and subordinate to the residential use of the dwelling unit. The most common home occupations are office uses for businesses such as accountants, internet sales, certain types of contractors, and other similar operations where the primary means of contact are by phone, mail, and internet. There has been a trend for cities to allow home occupations in residential zoning districts, as they can provide numerous benefits for both home workers and the community. Cities do not generally experience that the residential business activities affect the surrounding neighborhood when they are conducted in accordance with appropriate licensing and operation regulations (see Attachment D) Home occupations have the potential to provide useful services for communities. They encourage business growth by eliminating the need for some small businesses to rent commercial space, a factor which could make a difference if someone is just starting out. Working at home can save commuting and child care costs, and can give those who might not be able to work outside of the home an opportunity to earn a living (i.e. single - parents, elderly, disabled, etc.). Allowing people to work in their homes can cut down on traffic congestion and the need for parking in commercial areas. It also creates activity in res neighborhoods that might otherwise be deserted during the day, which can be a deterrent to crime and a benefit to children who may be home alone after school. Municipal Code Amendment 12 -01 has been drafted to allow home occupations in residential zoning districts in the City of Rosemead. The code amendment proposes a licensing procedure, as well as operation regulations, to assure that home occupations do not disrupt, become a nuisance, disturb, or modify the residential character of the City's established residential neighborhoods. City Council Report January 8, 2013 Page 3 of 6 ANALYSIS The approval of Municipal Code Amendment 12 -01 would allow home occupations as an incidental, accessory use in the R -1 (Single - Family Residential), R -2 (Light Multiple Residential), R -3 (Medium Multiple Residential), and RC -MUDO (Residential /Commercial Mixed Use Development Overlay) zoning districts. The regulations and procedures set forth in Municipal Code Amendment 12 -01 are intended to insure that the residential commercial activities do not degrade the existing visual character or quality of life within the residential areas. Proposed Regulations - Overview Municipal Code Amendment 12 -01 would restrict a home occupation to a business activity that is conducted only within the enclosed area of the dwelling that shall be clearly incidental to the residential use of the structure. The business may be located in a garage, provided all off - street parking requirements for the applicable zoning district are met. The code amendment also establishes an administrative permitting process. The approval of a Home Occupation Business License shall be obtained from the City of Rosemead Community Development Department prior to establishing a home occupation. General requirements have been drafted to restrict outdoor display, storage of materials or equipment, pedestrian and vehicular traffic, property appearance, and nuisances. Lastly, the amendment proposes a business license revocation process if the requirements of the ordinance are not satisfied. If there is any criminal activity associated with the residence, if the application contains incorrect, false or misleading information, or if the home occupation has been operated in violation of any requirements of the license, the license will be subject to the revocation process. Summary of Performance Standards Below is a summary of the proposed home occupation performance standards. 1. A home occupation will be required to remain subordinate to the residential use of the dwelling as a way to limit the activity's impact on the neighborhood. To accomplish this goal, no more than two hundred (200) square feet of the residence shall be employed for the use of the home occupation. Furthermore, any employees associated with the home occupation will be required to be full -time residents of the dwelling. 2. To protect the appearance of existing residential neighborhoods, the ordinance will prohibit outdoor display, sales, or storage of materials or equipment related to the home occupation on the premises. Furthermore, the property will not be allowed to be altered (by the use of color, materials, construction, lighting, signs, sounds noises, vibrations, display of equipment, etc.) so that it may be reasonably recognized as serving a non - residential use. City Council Report January 8, 2013 Page 4of6 3. To ensure that traffic (vehicular and pedestrian) levels in the residential areas are not altered, the code amendment sets limitations on vehicles used in conjunction with the home occupation. Required residential off - street parking shall be maintained. Motor vehicles used or kept on the premises will not be allowed, except residents' passenger vehicles, and one commercially licensed automobile, pick -up truck, or van. Furthermore, the commercial vehicle shall not exceed % ton. 4. Several performance standards have been added to prevent nuisances. A home occupation activity shall not create dust, electrical interference, fumes, gas, odor, smoke, glare, light, noise, vibration, toxic /hazardous materials, liquid or solid waste or other hazards or nuisances other than that normally incidental to residential use of the structure. Home occupations shall not create any other negative effect that may be felt, heard, or otherwise sensed on adjoining parcels. 5. To protect the safety of the general welfare of the residents in the surrounding area, the code will prohibit electrical and mechanical equipment that creates visible or audible interference in television or radio receivers or causes fluctuations in line voltage outside of the dwelling unit. Activities conducted and equipment or materials used will not be allowed to change the fire safety or occupancy classifications of the premises. The use shall also not employ the storage of flammable, explosive, or hazardous materials. Home Occupation Business License Requirement The ordinance establishes a licensing requirement for the owners of a home occupation business. No person may establish or operate a home occupation business within the City without first obtaining, and continuing to maintain in full force and effect, a home occupation business license. The license must be renewed on an annual basis, provided that the owner and the business continue to meet all applicable requirements of the proposed ordinance. A one -step application process requires the business owner to submit an application to the Community Development Department that contains general contact information, information on the type and location of the business, as well as property owner approval if the business owner is a renter. Each applicant will also be required to sign a declaration on the application acknowledging their understanding and indicating their intention to comply with the operation requirements. Home Occupation Business License Fees The proposed Home Occupation ordinances includes a home occupation business license process that is not currently included in the City's Business License Fee Resolution (Resolution 2012 -31) adopted on May 8, 2012. It is recommended that the City Council adopt a revised fee resolution (Attachment C) to create new Home Occupation Business License fees. Staff completed a survey of the cities that surround the City of Rosemead in order to determine an appropriate fee. Staff found that the surrounding cities on average charge higher fees than what the City of .Rosemead charges for a Professional Business License. For this reason, staff is proposing to place home occupation businesses on a substantially similar basis as it treats other City Council Report January 8, 2013 Page 5 of 6 professional occupation business owners in nonresidential zones. Therefore, a first - time application fee of $100.00 and an annual renewal fee of $50.00 are proposed. MUNICIPAL CODE REQUIREMENTS Chapter 17.116 of the Rosemead Municipal Code sets forth the procedures and requirements for zone changes and amendments. A municipal code amendment may be permitted whenever the public necessity, convenience, general welfare or good zoning practice justifies such action. Municipal Code Amendment 12 -01 is in the best interest of the public necessity and general welfare, and good city planning practice dictates and supports the proposed municipal code amendment, in that the change to the Rosemead Municipal Code will provide a superior level of planning and protection to the quality and character of the City. Municipal Code Amendment 12 -01 is consistent with the Rosemead General Plan Land Use Goals and Policies. Since a home occupation would be an incidental, accessory use to the primary use of residential property, the approval of home occupation regulations would not alter the purpose or intent of the residential land use categories in the City. The adoption of a unified set of regulatory standards for home occupations is consistent with Land Use Goal 5 to target land use changes that improve housing and economic opportunities for residents and businesses and achieve fiscal and environmental objectives. The public necessity, convenience, and general welfare will be served by the adoption of the home occupation regulations that provide for a ministerial licensing process that requires the residential business activity to comply with standards that restrict use, location, employees, vehicles, traffic, appearance, storage, and nuisances. ENVIRONMENTAL DETERMINATION An Initial Study of Environmental Impacts was prepared recommending the adoption of a Negative Declaration of Environmental Impacts in accordance with the California Environmental Quality Act (CEQA) guidelines (the Initial Study and Negative Declaration are attached to this report as Attachment B). The Initial Study is an environmental analysis of the proposed municipal code amendment to determine if the proposed revisions to the municipal code will have potentially significant effects on the environment. This study found that there are no potentially significant environmental impacts that could occur with the adoption of the proposed code amendment. A Notice of Intent to Adopt a Negative Declaration was distributed for a 20 -day public review and comment period between October 29, 2012 and November 19, 2012. If the Council is inclined to approve this project, the Council must make findings of adequacy with the environmental assessment and adopt the Negative Declaration.