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i • • WS — Item 6 WORK SESSION STAFF REPORT Work Session Item 6 Date: November 1, 2010 To: City Council From: Paul Bengtson Re: Home Occupations — Retail Sales Background A resident raised some questions about the Home Occupation ordinance during the open microphone portion of the October 11th City Council meeting, specifically the allowances for direct sales to customers. As directed by the City Council, staff has compiled the following information in regards to sales associated with Home Occupations. The Amendment adopted on February 22, 2010 included the following statement in the General Provisions section of the ordinance, and is therefore applicable to all Home Occupations that operate in the city: No retail of anything produced off -site. Staffs intention behind the use of the word `retail' was to prohibit direct sales to customer on the site only. It was not meant to prohibit mail order businesses or those that include delivery services. In retrospect, it was not staff's intention to prohibit sales to customers already onsite for a service business (barber, massage, etc...), nor was it necessarily meant to prohibit sales events conducted by invitation (Tupperware, Pampered Chef, Avon, etc...). As such, a clarification may be in order and examples of potential ordinance language can be seen in Attachment A. Under the previous ordinance, the following references were made to retail sales activities: Residential Districts — Permitted occupations shall not include any of the following: 1) The operation of any wholesale or retail business unless it is conducted entirely by mail or delivery and does not include the sale, shipment, or delivery of merchandise to the premises.