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Senior Planner Gladhill stated the objection received is that it appears First Choice Towing is <br />subleasing from Independent Auto without the City's consent based on the signage and parking <br />of First Choice Towing vehicles on the subject property. <br />Councilmember Strommen noted Independent Auto is an auto service business so it is logical <br />there should be a towing relationship. She stated this does not offend her but she understands the <br />need to address the lease if it is being violated. Councilmember Strommen pointed out that <br />towing is integral to this type of business and she supports fixing the technical issue. <br />Councilmember McGlone reviewed that this towing business was operating and subsequently <br />received a home occupation permit at a residence. He indicated First Choice Towing is the same <br />business owner and asked if it has grown to have more trucks and employees than authorized in <br />the home occupation permit. Councilmember McGlone stated the sign issue needs to be <br />addressed as well as garage liability so the City is not liable. He cautioned that a towing <br />company would bring in leaky and flammable vehicles from accidents. <br />Mayor Ramsey stated his concern relates to City liability and exposure and agreed with the need <br />to also address fire standards. <br />Councilmember McGlone stated he had no problem with this type of a business being in this <br />location or the signage or truck parking but this business is the same one found to be in violation <br />when it made application for a home occupation permit and now it is getting caught again. <br />Councilmember Elvig stated he thinks the concern should be with the owner of Independent <br />Auto who has a lease with the City. He noted the owner has stated he is not leasing space and as <br />far as leaky vehicles and towed vehicles, that should have been addressed when the lease was <br />negotiated for this auto repair shop. Councilmember Elvig asked how a citizen knew about the <br />City's leasing agreement and signage restrictions. <br />Senior Planner Gladhill explained staff is working with the City Attorney to investigate <br />allegations with the home occupation permit to determine if violations are occurring. That is an <br />ongoing investigation and a separate issue. <br />Councilmember Backous stated it boils down to this being a City -owned property so from a <br />liability standpoint, the City needs to know the tenant or subtenant is using the property for <br />business. <br />Councilmember Tossey stated he also questions who the City is going after. He asked what is <br />the City's liability if First Choice Towing is operating without a sublease in hand. <br />City Attorney Goodrich advised there would be no City liability for that because the landlord <br />(Independent Auto) is responsible for the entire property and a $2 million liability policy is <br />required in addition to insurance on the building. With regard to the sign, the ordinance says if a <br />sign is placed without approval, the City may remove the same without liability and charge the <br />expense to the tenant. <br />City Council Work Session / June 26, 2012 <br />Page 4 of 6 <br />