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Planning Comm MINS 09-07-2011 K:\Planning Commission\2011\Meeting Summary 09-07-11.doc CITY OF FEDERAL WAY PLANNING COMMISSION September 7, 2011 City Hall 7:00 p.m. Council Chambers MEETING MINUTES Commissioners present: Merle Pfeifer, Hope Elder, Wayne Carlson, Lawson Bronson, Tim O’Neil, and Sarady Long. Commissioners absent: Tom Medhurst. Staff present: Planning Manager Isaac Conlen, Senior Planner Deb Barker, Planning Intern Alexa Heidrich, Assistant City Attorney Peter Beckwith, and Administrative Assistant II Tina Piety. CALL TO ORDER Chair Pfeifer called the meeting to order at 7:00 p.m. APPROVAL OF MINUTES The minutes of June 15, 2011, were approved as presented. AUDIENCE COMMENT None ADMINISTRATIVE REPORT Mr. Conlen stated he does not have an administrative report, but Commissioner Long has a suggestion he would like to discuss and this seems an appropriate point to do so. Commission Long asked that staff update the Planning Commission about the status of issues that have appeared before the Commission as those issues move on to city council committees and the city council itself. Chair Pfeiffer and the other Commissioners agreed with his request. Mr. Conlen responded that staff will provide updates on issues. COMMISSION BUSINESS STUDY SESSION – Temporary Uses and Temporary Businesses Code Amendments Senior Planner Deb Barker delivered the staff presentation. Temporary Uses and Temporary Businesses are separate sections of the Federal Way Revised Code (FWRC) that have many similarities, duplicate language, and inconsistencies. The purpose of the proposed code amendments is to make them consistent, reduce duplicate language, and to deal with a number of other issues. Those issues include a citizen initiated request to prohibit temporary car sales; clarify requirements for temporary food carts and/or trucks; the collection of sales tax for temporary parking lot car sales; and the duration of temporary uses and temporary businesses. Temporary businesses are those of a transitory nature or fixed duration. Temporary uses are uses conducted on a short term or temporary basis. A temporary business might not be a temporary use and vice versa. For example, a door-to-door salesperson is a temporary business, but not a temporary use, while a community festival is a temporary use, but not a temporary business. Each has specific requirements as outlined in their particular FWRC section and those requirements are not necessarily the same. For this reason, while staff considered merging the sections, they came to the conclusion that it would not be feasible. Planning Commission Minutes Page 2 September 7, 2011 K:\Planning Commission\2011\Meeting Summary 09-07-11.doc Staff has developed five policy questions. Please note that this is not intended to be a complete list and staff will consider additional questions/comments as raised by Commissioners and/or citizens. The policy questions are: 1. Should the city attempt to collect sales tax from businesses (temporary car sales specifically) that conduct sales operations in Federal Way, but actually “close” the sale in another city? 2. Should the city adopt provisions to prevent or discourage temporary businesses from competing with permanent brick and mortar businesses? 3. Should the city exempt all businesses that operate for three consecutive days or less from the need to obtain a temporary business license (existing city policy)? 4. Should temporary uses be limited to zones in which the use is not allowed on a permanent basis (existing city policy)? 5. How should mobile food trucks/carts be regulated in the city? Commissioner O’Neil commented that he finds it difficult to understand the distinction between a temporary use and a temporary business. He suggested staff develop a clear definition of both. Regarding policy question #1 (collect sales tax from businesses that “close” the sale in another city), Commissioner Bronson asked if the state department of revenue would allow the city to collect such tax. In addition, requiring the businesses to go through more processes may discourage them from locating in the city. Commissioner Elder asked if the staff knows how many businesses this may effect. Senior Planner Barker replied there are temporary car sales three to four times a year. Planning Manager Conlen commented that so far, only car sales have operated in this manner in the city limits. Commissioner O’Neil asked how much would it cost the city to collect the sales tax and would it be more cost effective to raise the business registration fee. Planning Manager Conlen replied that he has discussed this with the city’s finance department and the amount of sales tax is significant enough that it would not be offset by a rise in the business registration fee. Commissioner Long commented that the temporary car sales may lead to a permanent dealership and they should not be discouraged. Commissioner Elder is concerned that if we collect the sales tax, they may go to a different city. Chair Pfeiffer commented that it would be appropriate since the business is done in Federal Way. He is concerned that outside sales like this could put city businesses at risk. He is satisfied that this proposal does not interfere with free enterprise, but is concerned about whether the state’s department of revenue would allow it. Commissioner Bronson suggested staff consider a threshold above which sales tax is collected. The Commission is in consensus that if it is allowed by the state department of revenue, the city should collect sales tax from businesses that “close” the sale in another city. Regarding policy question #2 (prevent or discourage temporary businesses from competing with permanent businesses), the Commission is in consensus that this goes against free enterprise and does not support the proposal. Regarding policy question #3 (exempt businesses that operate for three consecutive days or less from obtaining a temporary business license), Senior Planner Barker commented one thing to keep in mind are businesses like the Farmer’s Market that operates May to October, but only on Saturday morning and Wednesday evening. Commissioner O’Neil commented that it is his understanding that someone selling goods by the side of the road and the Farmer’s Market requires a temporary use permit. Commissioner Carlson said that he is fine with the exemption for three days or less. He suggested staff consider adding “in a consecutive month” to address those businesses that operate for a number of months, but only one to three consecutive days. Commissioner Long asked if the three days would apply if the business location changes. Planning Manager Conlen said the three days would apply if the location changes during those days. The Commission is in consensus this policy should not change. Planning Commission Minutes Page 3 September 7, 2011 K:\Planning Commission\2011\Meeting Summary 09-07-11.doc Planning Manager Conlen commented that while the Farmer’s Market should have a temporary use permit, the city has allowed them to have a temporary business license instead. Chair Pfeiffer asked if the Farmer’s Market was required to obtain a temporary use permit, would it cost them more. Planning Manager Conlen replied it would cost them approximately $25 to $30 more. Commissioner Bronson asked what about the individual vendors? Commissioner Elder replied they are subject to public health inspections, but are not required to have a temporary business license or temporary use permit. Commissioner Carlson commented that he would exempt the temporary business license, but not the temporary use permit because of the possible impacts of the Farmer’s Market. Staff will research this issue further. Regarding policy question #4 (limit temporary uses to zones that the use is not currently allowed on a permanent basis), Commissioner Long commented that he is in favor of allowing temporary uses in zones where they are allowed on a permanent basis. Commissioner Carlson feels the current regulation is the opposite of what it should be. He feels the regulation should allow a temporary use in zones the use is currently allowed, and allow them for three days (or some other short time limit) in zones the use is not currently allowed. Commissioner O’Neil feels the city should allow food trucks anywhere. Commissioner Elder agrees with Commissioners Carlson and O’Neil. Commissioner Bronson asked what about a truck that stops at different places. Planning Manger Conlen replied that would not be defined as a temporary use because it is not stationary. He also noted that some commercial zones are restrictive and may restrict the types of temporary uses. Regarding policy question #5 (how should mobile food trucks/carts be regulated), Senior Planner Barker commented that there are different types of mobile food trucks: some move often; some come one or two specific days of the week; and some park at one location and never move. Commissioner Bronson commented that if it does not move, it is a fixed restaurant with wheels. If they do not move in three days, then they are a permanent business. Planning Manager Conlen clarified that a use can be temporary for up to 60 days; beyond that it is considered permanent. Chair Pfeiffer commented the regulations should clarify that even if the business has wheels, if it does not move for more than 60 days it is permanent. Senior Planner Barker asked what about a truck that says in place two days then moves to another place for two days, and so on. Chair Pfeiffer stated that if they are doing business within the city for more than three consecutive days, they are not a temporary. Commissioner O’Neil asked how many businesses would this effect and is it worth the effort. Senior Planner Barker replied that the city receives an inquiry about once a month about regulations for food trucks. She has spoken to three food truck vendors in the recent past. Commissioner Bronson commented that food vendors provide a needed service and asked that staff be careful to not make the regulations too difficult. Commissioner Long asked staff to take into consideration traffic safety and impacts. Commissioner Bronson asked what about caterers. Senior Planner Barker replied that catering usually happens on private property and would be subject to county public health regulations. Commissioner Carlson suggested that mobile food trucks be handled in a separate chapter and maybe as a right-of-way permit. What are other cities doing? Chair Pfeiffer asked the staff to clarify the types of food trucks. Some work out of a warehouse and some are an individual small business. He also suggested the city be more restrictive on those that operate on a more permanent basis. City Attorney Beckwith asked if the Commissioners have any thoughts regarding a time limit for food trucks. Commission Carlson suggested they be allowed three days. He is also concerned about public safety issues and noise impacts. These uses could create significant impacts in a short time. Planning Commission Minutes Page 4 September 7, 2011 K:\Planning Commission\2011\Meeting Summary 09-07-11.doc Commissioner O’Neil expressed his concern that the three days would allow festivals, with their associated impacts, to take place without a permit. Senior Planner Barker replied that there are two classes of temporary uses, one with more stringent requirements. Commission Elder expressed her concern over the large amount charged to those temporary uses providing essential services. Commissioner Carlson suggested that the temporary uses be classified by intensity. Those with a more intense use would be required to obtain a permit. Commissioner Long agreed and suggested using trip generation as a way to estimate the intensity of a use. He suggested trip generation not be the only way to estimate intensity because some uses may be intense without generating a lot of trips. Commissioner O’Neil commented that if intensity is used, staff should clarify what is meant by intense. ADDITIONAL BUSINESS None ADJOURN The meeting was adjourned at 9:10 p.m.