Section 20.03.020 of the Sparks Municipal Code (SMC) allows a person to obtain a HOP to  operate a business within a dwelling unit if the business is clearly secondary and incidental to the use of the site as a residence. Clara Okosun obtained a HOP in July of 2015.  This permitted the use of the single-family residence at 3396 Laveaga Court (Exhibit F) to include a home office as stated on the HOP application (Exhibit A). Ms. Okosun resides at 3396 Laveaga Court with Jacob and Edith Osawe, the property owners.  

Since issuance of the HOP, the City’s code enforcement staff has received numerous citizen complaints regarding this property, conducted multiple code enforcement inspections, and taken several different enforcement actions, including issuing violation notices and citations. While several of these cases involved property maintenance violations (such as bare dirt in the front yard) not associated with a business activity, at least three prior instances involved violations indicating the possible operation of a business at this location. These violations involved the parking of commercial vehicles in a residential area (January 2018), illegal outdoor storage (also in January 2018), and the illegal parking of recreational vehicles (March 2019).  

The City of Sparks is not the only government entity to respond to citizen complaints regarding the operation of a business at 3396 Laveaga Court.  In September of 2017, Jacob Osawe, one of the owners of the property, was investigated by the Nevada Department of Motor Vehicles for acting as a car dealer without a license in violation of NRS 482.322(5).  Mr. Osawe ultimately pleaded guilty to this misdemeanor in Sparks Justice Court.

On August 23, 2019, City staff conducted a site inspection at 3396 Laveaga Court after the City received complaints regarding this property.  During this inspection, City staff observed vehicles parked in the public right-of-way in front of 3396 Laveaga Court that were listed for rent on the internet. One of the internet advertisements that City staff found advertised several services provided by Ms. Okosun’s business, Errand Lady Reno Sparks, Inc. (Errand Lady). SMC 20.03.020(B)(2) prohibits use of any garage, accessory building, yard space or any activity outside the living area of the residence in association with the home occupation. 

SMC 20.03.020(C)(3) provides the Administrator the ability to revoke a HOP if the applicant violates any standard provided in SMC 20.03.020.  This authority was exercised and notice of the revocation was provided to Ms. Okosun on September 4, 2019 (Exhibit B).

On September 11, 2019, Ms. Okosun timely appealed the Administrator’s decision to revoke her HOP (Exhibit C). The City Manager scheduled a public hearing for the City Council to consider the appeal on October 28, 2019, in compliance with the procedures set forth in SMC 20.05.013.

As discussed in the Background section, SMC 20.03.020 allows a person to obtain a HOP to operate a business within a dwelling unit if the business is clearly secondary and incidental to the residential use. 

SMC 20.03.020 identifies several standards for conducting a home occupation. The standards relevant to this appeal are:

1.  The home occupation shall be operated entirely within a dwelling unit by a person or persons residing in the dwelling unit as a clearly secondary and incidental use of the dwelling for residential purposes. The home occupation must not change the residential character of the dwelling unit.

2.  There shall be no use of any garage, accessory building, yard space or any activity outside the living area of the residence in association with the home occupation.

4.  The home occupation may include storage for stock-in-trade, supplies, or goods included in the maximum area allowed in subsection 3 above. Areas used for storage shall not be visible from outside of the dwelling unit.

7.  There shall be no indication of the home occupation on the exterior of the premises.

* Unless required by federal regulation. Demonstration of this requirement is necessary for the City to permit indication on the exterior of the home occupation.

As described in the Background section, there have been numerous zoning violations at the site since the HOP was issued.  Most recently, citizens complained about the renting of vehicles from the home at 3396 Laveaga Court.  The complaints referenced a Craiglist advertisement posted on July 29, 2019 (Exhibit D) offering “Burningman Van and Bike Retals.”  On August 23, 2019, City staff conducted a site inspection and observed the vans parked in public right-of-way in the immediate vicinity of 3396 Laveaga Court. The vans matched those featured in the Craigslist advertisement.  Photographs taken by City staff during this site inspection are included as Exhibit E.

As stated in the City Manager’s letter to Ms. Okosun dated September 4, 2019, the HOP was revoked for the following reasons:

• City Staff determined that the HOP (HO150086) issued to Ms. Okosun for 3396 Laveaga Court had been violated.  SMC 20.03.020(C)(3) allows the Administrator to revoke a HOP if an applicant provides materially false information in the HOP application and/or if the applicant violates any standards provided in Title 20.  In her HOP application, Ms. Okosun stated she would be “using home as office only” (Exhibit A). Using the home for vehicle rentals with vehicles stored outside the living area of the residence contradicts Ms. Okosun’s description of the business on the HOP application for 3396 Laveaga Court.  
• SMC 20.03.020(B)(2) prohibits use of any garage, accessory building, yard space or any activity outside of the living area of the residence in association with the home occupation. During the August 23, 2019 inspection, City staff found the vehicles offered for rent in the Craiglist advertisement parked in public right-of-way, in violation of the prohibition against home occupation activities being conducted outside the living area.
• SMC 20.03.020(B)(1) states, “The home occupation shall be operated entirely within a dwelling unit by a person or person residing in the dwelling unit as a clearly secondary and incidental use of the dwelling for residential purposes.  The home occupation must not change the residential character of the dwelling unit.”   As evidenced by the complaints filed with the City by neighbors, the storage of vehicles offered for rent outside of the dwelling unit at 3396 Laveaga Court was affecting the residential character of this property.

Compliance with SMC 20.03.020 and the conditions of the HOP is the responsibility not only of the party issued the HOP but of the owner of the residence. See SMC 7.16.010(D)(7). As discussed above, since the HOP for 3396 Laveaga Court was issued in 2015, the City has received numerous citizen complaints regarding this property, conducted multiple code enforcement inspections, and taken several different enforcement actions, including the issuance of violation notices and citations.

On the basis of the information provided in this staff report (including the attached exhibits), the City Manager revoked HO150086 issued to the Errand Lady Reno Sparks, Inc., on September 4, 2019, pursuant to SMC 20.03.020(C)(3)(a) and (b). Ms. Okosun timely appealed the revocation on September 11, 2019. Notice of the public hearing on the appeal was mailed to Errand Lady Reno Sparks, Inc., on October 14, 2019 via certified mail to 3396 Laveaga Court.

1. The City Council may affirm the City Manager’s decision to revoke the Home Occupation Permit HO150086 issued to Ms. Okosun for Errand Lady Reno Sparks, Inc., located at 3396 Laveaga Court.
2. The City Council may reverse the City Manager’s decision and reinstate the Home Occupation Permit HO150086 issued to Ms. Okosun for Errand Lady Reno Sparks, Inc., located at 3396 Laveaga Court. 
3. The City Council may modify the City Manager’s decision by revoking the Home Occupation Permit HO150086 issued to Ms. Okosun for Errand Lady Reno Sparks, Inc., located at 3396 Laveaga Court, but for different reasons.
4.  The City Council may remand the City Manager’s decision to revoke the Home Occupation Permit HO150086 issued to Ms. Okosun for Errand Lady Reno Sparks, Inc., located at 3396 Laveaga Court for further consideration.

I move to affirm the City Manager’s decision to revoke the Home Occupation Permit HO150086 issued to Ms.Okosun for Errand Lady Reno Sparks, Inc., located at 3396 Laveaga Court as described in the staff report.