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Staff Reports CITY OF SHOREWOOD 5755 Country Club Road• Shorewood, Minnesota 55331 • 952-960-7900 Fax:952-474-0128•www.ci.shorewood.mn.us•cityhall@ci.shorewood.mn.us MEMORANDUM TO: Planning Commission FROM: Brad Nielsen DATE: 5 February 2017 RE: Zoning Discussion—Regulation of Food Trucks FILE NO.: Zoning(Chapter 1201.22) Transient Merchants (Chapter 308) At tomorrow night's Planning Commission meeting, we will begin a discussion on the possible regulation of food trucks in the City of Shorewood. This was a topic that came up a couple of years ago,but back- burnered in favor of the land use study and Comprehensive Plan amendment for the Minnetonka Country Club redevelopment. At the time a number of cities were considering regulations for what was becoming a popular trend, particularly in busy commercial and industrial areas. Food trucks are a transient business that may operate in a variety of zoning districts and at different times of the year. In some communities, food trucks have served food in commercial areas where there is a demand for additional food options. Food trucks may also serve public and semi-public events, such as farmers markets or city festivals, or may be connected with an established restaurant business. While food trucks have not become a significant issue in Shorewood, their operation can raise some questions. The transient nature of food trucks poses concerns with regard to potential impacts on other local food related businesses. Food trucks are not required to rent or purchase property to conduct their sales but will compete against established taxpaying restaurants that have invested in real estate. Should the City deem this kind of competition appropriate, it may need to establish regulations for the unique style of operation associated with mobile food vendors. With respect to existing regulation,there are three primary sources: 1) State Statutes Chapter 157, a copy of which is attached as Exhibit A; 2) Chapter 308 of the City Code (Transient Merchants), a copy of which is attached as Exhibit B; and 3) Chapter 1201.22 of the Zoning Code (C-1, General Commercial District). Years ago, Shorewood has some issues with transient merchants. For example, a refrigerator truck routinely parked at the corner of County Road 19 and Smithtown Road (the old ICO gas station) selling "fresh shrimp". Adoption of our current zoning regulations resolved that by requiring a conditional use permit for open and outdoor sales and service. i • Memorandum Re: Regulation of Food Trucks 5 February 2017 Our more recent experience has involved the use of food trucks for some of our own park activities (e.g. Music in the Park and Movie in the Park). For those events, the food truck is there at our request. The City currently has no policy if, for example, one of the sports organizations wanted to have food trucks at a tournament. In those cases food trucks could be competing with the concession operator for park events. The conversation tomorrow night should begin with whether or not the City wishes to do more to accommodate food trucks, or whether existing regulations should be refined to provide greater control. -2- State Regulation of Mobile Food Trucks. Minnesota Statutes Chapter 157 Food, Beverage, and Lodging Establishments According to Minnesota Statutes Chapter 157 Food, Beverage, and Lodging Establishments,a license is required annually for anyone engaged in the business of conducting a food and beverage service establishment. To acquire a license, applicants must make application,pay the required licensure fee, and receive approval for their operation,including plan review approval. Food truck licensure in Wright County is provided by the Minnesota Health Department. State Statutes directly address regulation of mobile food trucks,which the State refers to as "mobile food units,"or MFUs. MN Statutes Chapter 157 provides the following definition for food establishments of a temporary or mobile nature,from Section 157.15 Definitions: Food cart. A food and beverage service establishment that is a non-motorized vehicle self-propelled by the operator. Mobile food unit. A food and beverage service establishment that is a vehicle mounted unit,either: (1)motorized or trailered, operating no more than 21 days annually at any one place,or operating more than 21 days annually at any one place with the approval of the regulatory authority as defined in Minnesota Rules,part 4626.0020, subpart 70;or (2) operated in conjunction with a permanent business licensed under this chapter or chapter 28A at the site of the permanent business by the same individual or company, and readily movable,without disassembling,for transport to another location. Seasonal permanent food stand. A food and beverage service establishment which is a permanent food service stand or building,but which operates no more than 21 days annually. Seasonal temporary food stand. A food and beverage service establishment that is a food stand which is disassembled and moved from location to location,but which operates no more than 21 days annually at any one location. Minnesota Food Code,from Minnesota Rules Chapter 4626 The Minnesota Food Code contains the minimum design,installation, construction, operation and maintenance requirements for all food establishments in Minnesota. These rules are the standards with which food establishments must comply in the handling, storing,preparation and service of food to the retail food consumer. Chapter 4626 defines a"food establishment"as including an operation that is conducted in a"mobile, stationary,temporary, or permanent facility,location, or cart,regardless of whether consumption is on or off the premises." Exhibit A MN Food Code Chapter 4626 provides very specific regulation of mobile food establishments, as described in Section 4626.1860 Mobile Food Establishments;Seasonal Temporary Food Stands; Seasonal Permanent Food Stands. This section of State code regulates different aspects of food truck operation,including mechanical systems,water supply and disposal,washing and sanitation facilities,waste disposal,food preparation and cooking areas, and food preservation/refrigeration. A complete list of state standards can be found in Section 4626.1860. Minnesota Department of Health As indicated earlier,the Minnesota Department of Health(MDH)is the agency responsible for plan review and licensing for mobile food units in Wright County. The MDH enforces regulations provided for Mobile Food Units(MFUs)in MN Statutes Chapter157 and MN Food Code Chapter 4626. The MDH requires individuals or groups interested in operating an MFU to submit a"Temporary/Seasonal Plan Review Application"and required fees at least 30 days prior to beginning new construction or remodeling of an MFU. A plan review submission must include the following: • A completed plan review application with the required fees. • Intended menu. • Description of how food will be prepared. • Easily readable floor plan layout indicating the location of all equipment(e.g., cooking equipment,hood,refrigerators,food prep counters,hand washing sink(s),three- compartment sink, and food prep sink). • Finish schedule for floors,walls and ceilings. • Manufacturer's equipment specifications sheets for all equipment,including sinks. • Size of water heater, and fresh water and wastewater holding tanks. • Finishes for counters and cabinetry. • Commissary agreement,if required. • List of intended,scheduled events or areas of operation if known. Once plans are approved by the Minnesota Department of Health(MDH)and construction or renovation of the mobile food unit is completed,applicants need to follow additional steps to get licensed,including submitting a license application,having the mobile food unit inspected,and posting the permit during operations. The MDH license is valid for one calendar year(January 1 through December 31), and must be renewed annually. t CHAPTER 308 TRANSIENT MERCHANTS, SOLICITORS, PEDDLERS, CANVASSERS AND GARAGE SALES • Section 308.01 Scope and purpose 308.02 Definitions 308.03 License required 308.04 Exclusions 308.05 No fee for canvassing, religious, political, educational and charitable organizations 308.06 License application 308.07 Issuance of license 308.08 License fee and licensure 308.09 Revocation 308.10 Appeal 308.11 License limitations 308.12 Peddlers, transient merchants, canvassers and solicitors may be prohibited by placard 308.13 Regulations, transient merchants 308.01 SCOPE AND PURPOSE. The purpose of this chapter is to prevent fraud, and criminal activity, such as burglary, theft and assault, and to protect the privacy of residents in their homes by requiring commercial solicitors, peddlers, transient merchants, and canvassers to be licensed and to impose restrictions on their operations within the city that are narrowly tailored to address the risks these operations pose to the public health, safety and welfare. It is not the purpose of this chapter to burden interstate commerce or interfere with constitutionally-protected rights under the First Amendment of the United States Constitution or Art. 1, Section 3 of the Minnesota Constitution. (1987 Code, § 308.01) (Ord. 265, passed 1-25-1993; Am. Ord. 484, passed 10-24-2011) 308.02 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. 308-1 Exhibit B 2012 S-7 308.02 Shorewood - Business Regulations 308.03 • CANVASSER. Any person canvassing for funds door-to-door in this city on behalf of a charitable, religious or nonprofit organization as defined in IRS Code § 501(c)(3). GARAGE SALES. Any isolated or occasional display and sale of used personal.property or home- crafted items conducted on residential premises by the occupant of the residential property or the display and sale of the items or seasonal goods or merchandise on the premises of a community ,school church. GARA SA sde rummage ,basement sales,yard , porch center sales, craftor sales and all GE other periodic LEShall sales inclu at a residentialsales location, community centersales, school, or church. PEDDLER. Any person dealing in this city who travels around from place to place or street to street carrying or transporting goods or solicitation for all manner of wares, services and merchandise, offering the same for sale or making sales and delivering articles to purchasers. SOLICITOR. Any person who goes from place to place and/or house to house soliciting or taking or attempting to take orders for the purchase of any foods, wares or merchandise, including magazines, books, periodicals or personal property of any nature whatsoever for delivery in the future or orders for the performance of a service in or about the home or place of business, such as furnace cleaning, roof repair or blacktopping. TRANSIENT MERCHANT.Any person, individual,partnership or corporation,whether principal, C employee or agent, who engages in, does or transacts any temporary or transient business in this city, either in one locality or traveling from place to place in this city selling goods, wares and merchandise; and who, for the purposes of carrying on the business, hires, leases, occupies or uses a building, structure,vehicle,property or other place for the exhibition and sale of the goods,wares and merchandise. (1987 Code, §308.02) (Ord. 265, passed 1-25-1993; Am. Ord. 341, passed 9-14-1998; Am. Ord. 484, passed 10-24-2011) 308.03 LICENSE REQUIRED. Subd. 1. It shall be unlawful for any person to engage in the activities of peddling, soliciting, canvassing or transient selling without first having obtained a license in compliance with the provisions of this chapter. Subd. 2. A separate license shall be secured for each individual person engaged as a peddler, solicitor, canvasser or transient merchant. Subd, 3. Where provisions of this chapter are more or less restrictive than comparable provisions within any other portion of this code, rules or regulations of the city, the more restrictive provision, rule or regulation shall prevail. The City Administrator/Clerk shall determine 308-2 2012 S-7 f 308.03 Transient Merchants, Solicitors, Peddlers, Canvassers and Garage Sales 308.04 which is more restrictive and appeals from the determination may be made in the manner provided herein. (1987 Code, § 308.03) (Ord. 265, passed 1-25-1993) Penalty, see § 104.01 • 308.04 EXCLUSIONS. Certain businesses may be exempt from the requirements of this chapter. Specific exclusions include: Subd. 1. Business by appointment. A solicitor or canvasser doing business by appointment. A bona fide appointment is one made in advance, not one that is not merely obtained by going door-to-door in conjunction with the taking of orders, offering for sale or selling; Subd. 2. Sales to stores and/or professionals. Salespersons selling goods to retain or wholesale stores or to professional or industrial establishments; Subd. 3. Garage, rummage and craft sales. Garage sales, rummage sales and craft sales, provided that: a. None of the items offered for sale shall have been obtained for resale or received on consignment for sale, except for the display and sale of seasonal goods and merchandise on the premises of a community center, school or church; b. Any sale shall be conducted solely within the boundaries of the property owned or occupied by the occupant who is conducting the sale; c, There shall be no more than four garage sales conducted at any one residence during any period of 12 calendar months; d. No garage or rummage sale shall be conducted during any part of more than three consecutive days, except that the display and sale of seasonal goods and merchandise on the premises of a community center,school or church shall not exceed 30 consecutive days; e. No garage.sale maybe conducted before 8:00 a.m. or after 10:00 p.m.; f. Church signage is limited to one nonilluminated temporary sign, not exceeding six square feet in area, advertising the garage sale, for which a sign permit is not required. The sign may be displayed for the duration of the sale only; g. The display or sale of seasonal goods or merchandise on the premises of a community center, school or church shall not take up required parking as provided for in § 1201.03, 308-3 2012 S-7 4.' 308.04 Shorewood -Business Regulations 308,06 subdivision 5 of this code and shall comply with setback requirements for the zoning district in which the property is located. Subd. 4. Other. Merchants or their employees delivering goods to established customers in the regular course of business, the sale of goods or admissions to events by K-12 students where the proceeds of such sales benefit a program or activity in which the student is involved, governmental organizations, or to the sale of goods by members of the Girl Scouts or Boy Scouts of America. (1987 Code, §308.04) (Ord. 265,passed 1-25-1993;Am. Ord. 316,passed 11-25-1996; Am, Ord. 341, passed 9-14-1998; Am. Ord. 484, passed 10-24-2011) 308.05 NO FEE FOR CANVASSING, RELIGIOUS, POLITICAL, EDUCATIONAL AND CHARITABLE ORGANIZATIONS. The fee imposed by this chapter does not apply to any organization, society, association or corporation if the organization is registered with the Secretary of State pursuant to the provisions of M.S. § 309.515 if the organization intends to solicit or have solicited in its name money, donations of money or property or financial assistance of any kind or intends to sell or distribute any item of literature or merchandise for which a fee is charged or solicited from persons other than members of the organizations upon the streets, in office or business buildings, by house to house canvass or in public places. To qualify for this exemption, the organization or individual shall provide a sworn application in writing on a form furnished by the city which shall include the following information: Subd. 1. Names and addresses of the officers and/or directors of the organization; Subd. 2. Name and purpose of the cause for which the license is sought; Subd. 3. The period during which the canvassing is to be conducted; Subd. 4. A complete list of those to do canvassing giving full name, address and date of birth for background review and permit approval by the Police Department. (1987 Code, § 308.05) (Ord. 265, passed 1-25-1993; Am. Ord. 484, passed 10-24-2011) 308.06 LICENSE APPLICATION. Subd. 1. The application for the license provided in this section should be made to the City Administrator/Clerk by filing the annual license fee and by completing an application form or forms as provided by the City Administrator/Clerk. 308-4 2012 S-7 • 308.06 Transient Merchants, Solicitors, Peddlers, Canvassers and Garage Sales 308.06 Subd.2. The application shall include,in addition to the information as the City Administrator/Clerk may require: a. Name of the applicant and all persons associated in business in the city; b. Permanent home address and full local address of the applicant and permanent and local telephone numbers of applicant; c. A brief written description of the nature of the business, goods to be sold and the applicant's method of operation; d. If employed, the name and address of the employer, together with credentials establishing the exact relationship; e. The length of time which the applicant intends to do business in the city, with the approximate dates; f. The location where the goods or property proposed to_be sold, or orders taken for the sale thereof, are manufactured or produced,where the goods or products are located at the time the application is filed and the proposed method of delivery; g. A photograph of the applicant. The applicant must submit a photo taken within 60 days immediately prior to the date of filing of the application, which picture shall be two inches by two inches showing the head and shoulders of the applicant in a clear and distinguishable manner, or, the applicant must come into the city office to have his or her photo taken for the license; h. A statement as to whether or not the applicant has been convicted of any crime, misdemeanor or violation of any municipal ordinance, the nature, place and date of the offense and the punishment or penalty assessed therefore; i. If a vehicle is to be used, a description of the same, together with license number or other means of identification; j. A statement of the nature, character and quality of the goods, wares or merchandise to be sold or offered for sale by the applicant, the invoice value and quality of the goods, wares and merchandise, whether the same are proposed to be sold from stock in possession or by sample, at auction, by direct sale or by taking orders for future delivery; k. Transient merchants shall include the addresses of all places where the business is to be located along with written consent of the owners or occupants. (1987 Code, § 308.06) (Ord. 265, passed 1-25-1993; Am. Ord. 484, passed 10-24-2011) 308-5 2012 S-7 308.07 Shorewood - Business Regulations 308.09 l 308.07 ISSUANCE OF LICENSE. Subd. 1. There may be a seven day waiting period between the application and issuance of the license, during which period the City Administrator/Clerk and Police Chief or designated employee shall make the investigation of the applicant's business moral character as he or she shall deem necessary for the protection of the public good. The license may be issued by the City Administrator/Clerk when the foregoing investigation is completed or within f. seven days of application, whichever is earlier. Subd. 2. The issuance of the license shall be denied if the applicant has been convicted of a felony, a misdemeanor involving moral turpitude or a violation of M.S. Chapter 329 or of this chapter. 308.07) (Ord. 265, passed (1987 Code, § 1-25-1993) 308.08 LICENSE FEE AND LICENSURE. peddling or solicitingshall be established by The license fee for engagingin a transient business, ed g p ordinance by the City Council, from time to time, and shall be payable at the time of application for a license. A license, unless revoked, is for the length of time and dates noted on the application, not to exceed a 12-month period or part thereof for which it has been issued. License fees may not be prorated. (1987 Code, § 308.08) (Ord. 265, passed 1-25-1993; Am. Ord. 484, passed 10-24-2011) 308.09 REVOCATION. Subd. 1. Permits and licenses issued under the provisions of this chapter may be revoked by the City Administrator/Clerk for any of the following causes: a. Fraud, misrepresentation or false statement contained in the application for license; b. Fraud, misrepresentation or false statement made in the course of carrying on his or her business; c. Any violation of this chapter; d. Conviction of any felony or of a misdemeanor involving moral turpitude; e. Conducting the business licensed in an unlawful manner or in a manner as to constitute a breach of the peace or to constitute a menace to the health, safety or general welfare of the public. 308-6 2012 S-7 308,09 Transient Merchants, Solicitors, Peddlers, Canvassers and Garage Sales 308,11 Subd, 2. Any license may be revoked without notice if in the opinion of the City Administrator/Clerk or the Police Chief the good order of the city requires action. (1987 Code, § 308.09) (Ord. 265, passed 1-25-1993) 308.10 APPEAL. Any person aggrieved by the action of the city or any person whose license has been revoked without notice may appeal to the City Council by filing, within 14 days after notice of the action complained of, a written statement setting forth fully the grounds for appeal. The Council shall set a time and place for a hearing on the appeal, and notice of the hearing shall be given to the person appealing by mailing to the address set forth on the application written notice at least seven days prior to the hearing. (1987 Code, § 308.10) (Ord. 265, passed 1-25-1993) 308.11 LICENSE LIMITATIONS. Subd. 1, All license holders are.required to exhibit their licenses at the request of any citizen, Subd. 2. No license issued under.the provisions of this chapter shall be used at any time by any person other than the one to whom it is issued. Subd. 3. No license holder, nor any person in their behalf, shall shout, blow a horn, ring a bell or use any sound devices upon any of the streets, alleys, parks or other public places of the city or upon any private premises in the city. Subd. 4. It shall be the duty of any police officer of the city to require any person seen peddling or engaging in like activities and whom is not known to the officer to be duly licensed, to produce his or her license and to enforce the provisions of this chapter against any person when in violation of the same. Subd. 5. Failure of any person to comply with any of the ordinances of the city or the laws of the state shall.be grounds for suspending or revoking a license granted under this chapter. Subd. 6. Door-to-door activities allowed under the provisions of this chapter shall be restricted to hours between 9:00 a.m. and 8:00 p.m. (1987 Code, § 308.11) (Ord. 265,passed 1-25-1993; Am, Ord. 318,passed 1-13-1997; Am, Ord, 484, passed 10-24-2011) 308-7 2012 S-7 308.12 Shorewood - Business Regulations 308.13 308.12 PEDDLERS,TRANSIENT MERCHANTS, CANVASSERS AND SOLICITORS MAY BE PROHIBITED BY PLACARD. Subd. 1. Any resident of the city who wishes to exclude peddlers or solicitors from premises occupied by the resident may place upon or near the usual entrance to the premises a printed placard or sign bearing the following notice: "Peddlers, Canvassers and Solicitors Prohibited." The placard shall be at least three and one-half inches long and three and one- half inches wide and the printing thereon shall not be smaller than one-half inch in height. No peddler, canvasser or solicitor shall enter in or upon any premises, or attempt to enter in or upon any premises, where a placard or sign is placed and maintained. Subd, 2. No person other than the person occupying the premises shall remove, injure or deface the placard or sign. Subd. 3. Violation of this section shall result in the revocation of a duly issued license. (1987 Code, § 308.12) (Ord, 265, passed 1-25-1993; Am. Ord. 484, passed 10-24-2011) 308.13 REGULATIONS, TRANSIENT MERCHANTS. Subd. 1. Public property. It shall be unlawful to sell or offer for sale any goods, wares or merchandise on any public land or public right-of-way within the city except as provided for in § 902.02. Subd. 2. Private property. No transient merchant shall sell or offer for sale any goods, wares or merchandise within the Commercial Zoning Districts within the city from a stationary location on private property without first obtaining a conditional use permit pursuant to the provisions of Shorewood's Zoning Code. It shall be unlawful to sell or offer for sale any goods, wares or merchandise from a stationary location in any noncommercial zoning district. (1987 Code, § 308.13) (Ord. 265, passed 1-25-1993) Penalty, see § 104,01 • 308-8 2012 S-7 1201.23 Zoning Regulations 1201.23 (3) Storage is screened from view from the public right-of-way; (4) Storage area is grassed or surfaced to control dust; (5) Landscaping is provided in compliance with § 1201.03, Subd. 2g; (6) All lighting shall be hooded and so directed that the light source shall not be visible from the public right-of-way or from neighboring residences; (7) Storage area does not take up parking space as required for conformity to this chapter; (8) The provisions of§ 1201.04, Subd. ld(1)are considered and satisfactorily met; c. Open or outdoor service, sale, rental and display as a principal or accessory use, provided t at; or screened from view of neighboring (1) Outside sales areas are fencedg g residential uses or an abutting R District; (2) Landscaping is provided in compliance with § 1201.03, Subd. 2g; (3) All lighting shall be hooded and so directed that the light source shall not be visible from the public right-of-way or from neighboring residences; (4) Sales area is grassed or surfaced to control dust; (5) The use does not take up parking space as required for conformity to this chapter; (6) The provisions of§ 1201.04, Subd. ld(1)are considered and satisfactorily met; d. Fabrication (cutting, assembly and/or welding) of wood or metal products only when accessory to an activity allowed as a permitted use or conditional use within this section, provided that: (1) Any outside storage shall be in compliance with Subd. 4b of this section; (2) Adequate off-street parking and off-street loading is provided in compliance with the requirements of § 1201.03, Subds. 5 and 6; (3) Provisions are made to control and reduce noise; 1201-137 Exhibit C