HomeMy WebLinkAboutCC AG PKT 2002-10-28 #G AGENDA REPORT
DATE: October 28, 2002
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: CONSIDERATION OF SENIOR CITIZEN BUSINESS
LICENSE TAX PROVISIONS AND OPERATING
PROCEDURES
SUMMARY OF REQUEST:
Receive and File Staff Report
BACKGROUND:
The Code of the City of Seal Beach has provisions regarding the operation of businesses,
with specific provisions relating to home occupations and senior business operations.
Those provisions are summarized as follows:
Section 11 -33 Tax Rate Schedules., subsection (e):
"All persons 65 and over engaged in any home occupation, as that term is
defined in Section 28 -239 of this Code, shall pay an annual flat rate tax of
fifty dollars ($50), provided that the annual income derived from such
home occupation does not exceed $5,000 in any calendar year. In order to
qualify for this reduced rate, licensees shall submit a copy of his or her
most recent tax return to substantiate that the annual income derived from
the home occupation does not exceed $5,000 per year. (Ord. No. 1435)"
Section 28 -239. Home Occupation.
"'Home Occupation' means an occupation conducted on the premises
within the main dwelling unit by the occupant of the dwelling as a
secondary use in connection with which there is no display, no stock in
trade or commodity sold upon the premises, no person employed and in
connection with which no mechanical equipment is used except such
mechanical equipment as is customarily used for housekeeping purposes.
(Ord. No. 948)"
Agenda Item
C: \My Documents \City Council \Senior Business Provisions.CC Staff Report.doc \LW \10 -21 -02
Senior Business License /Operating Procedures
City Council Staff Report
October 28, 2002
An inquiry has been received regarding the keeping of certain small amounts of "stock in
trade" at a residence in Leisure World and allowing those commodities, in this case
paintings, to be sold on the premises.
The current Code provisions have been established to prevent adverse impacts to
adjoining neighbors of a "home occupation" business operation. The storing of stock in
trade and the selling of commodities from a residence location can have substantial
adverse impacts to surrounding neighbors, both from the increased traffic of the delivery
of such "stock in trade" items, and from the increased traffic by customers or clients
coming to the residence location to look at and purchase such stock in trade business
commodities. There may additional adverse impacts created in the neighborhood if the
amount of such "stock in trade" items limits the ability of the home occupant to properly
utilize their parking areas, placing more vehicles on the street than necessary. These
impacts are of particular concern in the "Old Town" area of the City, where on- street
parking spaces are at a premium due to the existing development pattern.
The major problem with attempting to find a reasonable accommodation for home based
businesses that wish to maintain a stock in trade on the premises is the wide range of
items that persons would wish to maintain at their home. This would make it extremely
difficult to formulate clear, concise, easily understood, and clearly enforceable standards
for this type of use. The decision of the City has been to clearly indicate no stock in trade
on the premises or items sold from the residence. It is assumed, however, that these types
of activities may occur, and unless a complaint from an adjoining resident is received, the
City would not be aware of that type of activity.
It is also uncertain as to the ability of the City to differentiate the "home occupation"
operating procedures between senior operated businesses, and those operated by non -
seniors. The potential impacts would be assumed to be generally similar in nature
regardless of the age of the business operator.
Staff would recommend no amendments to the Code as presently written regarding this
issue. The difficulties in formulating reasonable criteria and being able to enforce such
criteria would be extremely burdensome and time consuming.
If the City Council so directs, staff will allocate existing staff resources to further
research this issue and provide additional reports to the City Council.
FISCAL IMPACT:
No direct impacts. If the City Council directs further review by staff, current project staff
assignments would need to be re- prioritized, and existing projects of importance to the
City Council may be delayed if attention is given to this item.
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Senior Business Provisions.CC Staff Report
Senior Business License /Operating Procedures
City Council Staff Report
October 28, 2002
RECOMMENDATION:
Receive and File Staff Report
NOTED AND APPROVED:
re Whi tenberg John :. Bahorski'�
Director of Development Servic- Ci '� anager
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Senior Business Provisions.CC Staff Report