10.4. SR 2-05-2018
Request for Action
To Item Number
Mayor and City Council 10.4
Agenda Section Meeting Date Prepared by
Work SessionFebruary 5, 2018Tina Allard, City Clerk
Item Description Reviewed by
Food Truck Licensing Cal Portner, City Administrator
Reviewed by
Action Requested
Discussion.
Background/Discussion
Council met on November 20, 2017, and January 2, 2018, to discuss licensing of food trucks under the
transient merchant ordinance.
Council was in agreement with the changes as a whole but wanted to clarify better where food trucks can be
parked in the downtown district. Staff would offer two options:
1.Allow food trucks to park in the parallel parking spots in the downtown district.
2.Designate and sign two locations in the lower city-owned parking lot; thereby also setting limit of up
to two food trucks in the district. During concert nights, recreation staff typically blocks the parking
lot for their event, and trucks would not be allowed to park or operate downtown as the spaces
wouldn’t be available during concert dates.
Staff believes most times there will likely only be one or two food trucks, at the request of Aegir, locating
downtown and suggests letting the designated parking areas self-regulate. If this were to become an issue, it
could always be evaluated and adjusted.
There was confusion regarding food trucks versus food carts. A definition of food carts has been included in
the ordinance. A food cart is required to obtain a transient merchant license.
Council further requested seating be allowed in industrial districts.
Since the last meeting a representative from the fair board requested to be exempt from city licensure on fair
property because they do their own due diligence of applicants and it would save the applicant from having
to follow-through on multiple government processes.
Financial Impact
N/A
Attachments
Maps of Option 1 and 2
Draft Ordinance
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service,
and community engagement that encourages and inspires prosperity
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Article VIII. - Peddlers, Solicitors, And Transient Merchants, and Mobile Food Units
Division 1. - Generally
Sec. 38-381. - Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Mobile Food Unit means a self-contained food service operation, located in a readily movable
motorized wheeled or towed vehicle that is readily movable without disassembling and that is used
to store, prepare, display, or serve food intended for individual portion service; or (2) a mobile food
unit as defined in Minnesota Statutes Section 157.15, subdivision 9.
Mobile Food Cart means an outdoor food and beverage service establishment that is a non-
motorized vehicle self-propelled by the operator. A mobile food cart is required to obtain a transient
merchant license.
Non-profit means an organization that currently has tax-exempt status from either the state or
federal government and provides written evidence of that status.
Occupant means a person owning, living, staying, or working at a residence, including a guest.
Peddler means any person with no fixed place of business dealing in the city who travels around
from place to place, or street to street, carrying or transporting goods, or soliciting for all manner of
wares, services and merchandise, offering such wares, service or merchandise for sale or making
sales and delivering articles to purchasers.
Solicitor means 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 food, 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 means any person, whether as principal, employee or agent, who engages in,
does, or transacts any temporary or transient business in the city, either in one locality or traveling
from place to place in the city, selling goods, wares, and merchandise, and who, for the purposes of
carrying on such business, hires, leases, occupies or uses a building, structure, vehicle, property, or
other place for the exhibition and sale of such goods, wares, and merchandise.
Sec. 38-382. - Purpose of article.
The purpose of this article is to protect citizens by imposing reasonable regulations on peddlers,
solicitors, and transient merchants, and mobile food units who by the very nature of their operation
may intrude upon the rights and privacy of other citizens and have a deleterious effect upon the
public health, safety, and welfare. so as to prevent individuals who may be engaged in unlawful
activities from posing as legitimate peddlers, solicitors, and transient merchants. The intent of this
Chapter is to establish a uniform set of rules and regulations that are fair and equitable, and to
develop a system for accommodating those businesses that will enhance the overall appearance and
environment along public streets, pedestrian walkways, and other public properties.
Sec. 38-383. - Exemptions.
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All persons engaged in the business activities described in this section shall comply with the
provisions of section 38-414(c). The following business activities shall be exempt from the
requirements of this article. The city clerk shall determine if a business activity falls within these
exemptions, subject to appeal to the city council.
(1) Doing business by appointment. A bona fide appointment is one that is not merely
obtained by going door-to-door in conjunction with the taking of orders, offering for sale
or selling.
(2) Solicitation of orders for future door-to-door delivery of newspapers.
(3) Nonprofit groups that register with the city clerk. No fee is required to so register. This
exemption does not include individuals who are paid to engage in peddling, soliciting, or
transient merchant business.
(4) Selling goods to retail or wholesale stores or to professional or industrial establishments for
retail re-sale only.
(5) Selling or peddling the products of the farm or garden grown and cultivated by such
person, but such activities must comply with applicable health regulations.
(6) All vendors involved in the following community events: Fourth of July Celebration,
Community Festival, Sherburne County Fair, Business Expo, and any other community
event the city council deems exempt.
(7) Garage sales, rummage sales, and craft sales.
(8) Establishing a regular customer delivery route for the delivery of perishable food and dairy
products such as baked goods, milk, and groceries.
(9) Selling 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.
(10) Mobile Food Units listed as part of a special event permit issued by the city. The terms of
the special event permit shall apply.
(11) Mobile Food Units contracted by residential property owners for private parties where
food is not sold to guests or any other members of the public. This exclusion does not
include institutional uses in the residential zoning district where mobile food units are
contracted to provide food for a public event.
(12) Mobile Food Units as part of a school sanctioned events on school property.
(13) Mobile Food Units located on Sherburne County Fairgrounds property.
Sec. 38-384. - Duties of police.
It shall be the duty of any police officer of the city to require any person seen operating a
mobile food unit, or soliciting, peddling, or engaging in like activities, and who is not known to such
officer to be duly licensed, to produce his city issued license and a driver's license or state
identification card. It shall be the duty of any police officer to enforce the provisions of this article
or any other law.
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Sec. 38-385. - Exclusion by placard.
(a) 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 such premises a printed placard or
sign bearing the following notice: "Peddlers and Solicitors Prohibited." Such placard shall be at
least 3½ inches long and 3½ inches wide and the printing thereon shall not be smaller than 49-
point type. No peddler or solicitor, including those exempt from license requirements as
provided in section 38-383 of this Code, shall enter in or upon any premises, or attempt to
enter in or upon any premises, where such a placard or sign is placed and maintained.
(b) Violation of this section shall result in the revocation of a duly issued license.
Division 2. - License
Sec. 38-411. - Required.
It shall be unlawful for any person to engage in the activity of peddling, soliciting, or transient,
or mobile food selling without first having obtained a license in compliance with the provisions of
this division. A separate license shall be secured for each individual person engaged as a peddler,
solicitor, or transient merchant. Each mobile food unit requires a separate license.
Sec. 38-412. - Application.
The application for the license provided for in this division shall be made to the city clerk by
filing the annual license fee and by completing an application form as provided by the city clerk. In
addition to such information as the city clerk may require, the application shall include:
(1) The name of the applicant and all persons associated in business in the city.
(2) The permanent home address and full local address of the applicant, and the permanent
and local telephone numbers of the applicant.
(3) A brief written description of the nature of the business, the goods to be sold, and the
applicant's method of operation.
(4) Credentials from the person for which the applicant proposes to do business, authorizing
the applicant to act as such representative.
(5) For peddlers, solicitors and transient merchant activities,
i.Dates the applicant intends to do business in the city.
ii.The location where the goods or property proposed to be sold, or orders taken
for the sale thereof, is manufactured or produced, where such goods or products
are located at the time the application is filed, and the proposed method of
delivery.
iii.Permission for the city to take a photo of applicant in order to create a city
issued license.
(6) A statement as to whether or not the applicant and the person managing the business has
been convicted of any crime, misdemeanor or violation of any city, state, or federal law,
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involving activities licensed under this article, the nature of the offense and the punishment
or penalty assessed therefor.
(7) If a vehicle is to be used, a description of the vehicle, together with the license number or
other means of identification.
(8) A copy of all documents to be used by the applicant, such as pamphlets and brochures.
(9) For transient merchants, the addresses of all places where the business is to be located,
along with written consent of the owners or occupants.
(10) The last three cities or other localities where the applicant conducted the proposed activity
immediately preceding the date of the application.
Sec. 38-413. - Investigation; granting, denial, or revocation.
(a) All license applications under this division shall be made to the office of the city clerk and
referred to the chief of police and such other municipal departments or offices as the city clerk
deems necessary for verification and investigation of the facts set forth in the application. The
chief of police and other department heads or officers consulted shall submit their reports and
recommendations to the city clerk who shall determine whether to issue the license.
(b) The existence of any particular ground for denial or revocation does not mean that the city
must deny or revoke the license. If a license is mistakenly issued or renewed to a person, it shall
be revoked upon the discovery that the person was ineligible for the license under this section.
(c) The city shall have the discretion to consider, in granting, denying, or revoking a license, any
reasonable facts or circumstances relating to public health, safety, and welfare, including but not
limited to the following:
(1) The proximity of the proposed activities to churches, schools, playgrounds, parks, or other
community facilities which might be adversely affected.
(2) The proximity of the proposed activities in relation to traffic congestion and parking which
causes a threat to public safety, interference with normal traffic flow, congestion, or
inconvenience to the public.
(3) Past fraud, misrepresentation, or misstatement in the course of carrying on business.
(4) Any conviction of a crime that adversely affects a person's ability to honestly, safely, or
lawfully conduct regulated activities, unless the individual can show sufficient evidence of
rehabilitation as defined in Minn. Stats. 364.03, Subd. 3. Crimes that are considered directly
related to the business of peddling, soliciting, and transient merchants include but are not
limited to crimes involving assault, criminal sexual misconduct, burglary, robbery, fraud,
theft, harassment, or moral turpitude.
(5) Revocation within the preceding 12 months of a past permit issued or past violations of
any provisions of this article.
(6) Failure to provide any information required on the application, or providing false or
misleading information.
(7) Denial or revocation of a license for peddling, soliciting, or transient sales, or mobile food
service by a city or other governmental entity within the preceding 12 months.
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(8) Applicant is not a United States citizen and is not legally permitted to be in the United
States.
(d) Where a reasonable basis is found to impose reasonable restrictions on the license, taking into
consideration one or more of the facts or circumstances, a license may have reasonable
conditions/restrictions imposed on the manner and circumstances under which the licensed
activity shall be conducted to preserve the public peace and protect and promote good order
and security.
(e) Failure of any person to comply with any of the ordinances of the city or the laws of the state,
or any conditions/restrictions imposed on a license, shall be grounds for denying or revoking a
license under this division. The city shall have the discretion to consider, in granting, denying,
or revoking a license, any reasonable facts or circumstances relating to public health, safety, and
welfare.
(f) If a license is denied by the office of the city clerk, the city clerk shall notify the applicant of the
determination in writing, including the facts and specific section or sections of this article upon
which this determination was made, and of their right to a hearing before the city council.
(g) Except as otherwise provided in this chapter 38, article VIII, peddlers, solicitors, and transient
merchant, and mobile food unit licenses shall be governed by the requirements and procedures
set forth in chapter 38, article II of this Code, including the notice and hearing provisions set
forth therein.
Sec. 38-414. - Restrictions.
(a) Transient merchants.
(1) Off-street parking required. No license for a transient merchant shall be issued for sales from
any location which does not have sufficient parking for customers or for areas where
customer parking would interfere with normal traffic flow. The planning manager must
determine that there is adequate off-street parking to serve both the principal use of the
property and the transient merchant use of the property.
(2) Location near intersection. No transient merchant license shall be issued, and no sales shall take
place, if the proposed location for transient merchant sales is within 150 feet of any
intersection.
(3) Duration of sales. No transient merchant license shall be issued for more than 365 days,
during which sales shall be limited to 30 days, unless a longer period of time is approved by
city council. At the time of the application for the transient merchant license, the applicant
shall state the times within the license period to be used by the applicant.
(4) Operation on public property. It shall be unlawful for any transient merchant to sell or offer for
sale any goods, wares, or merchandise on any public lands or public right-of-way within the
city.
(5) Operation on private property. No transient merchant shall sell or offer for sale any goods,
wares, or merchandise within the city from a stationary location on private property at any
location where such sales would not be permitted by Chapter 30, Article VI, and without
first obtaining the written consent of the property owner or occupant.
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(6) The merchandise displayed shall not occupy more than 100 square feet unless approved by
council.
(7) Overnight storage. No overnight storage of transient merchant equipment or merchandise
shall be permitted unless approved by council.
(8) Signs. No signage shall violate the provisions of this Code relating to size and number of
business signs.
(b) Peddlers and solicitors.
(1) Except for those people specified in section 38-383, no peddler or solicitor shall engage in
peddling or soliciting without wearing and clearly displaying a city issued license. A peddler
or solicitor must also carry a driver's license or state identification card.
(2) Hours for unsolicited calls are limited to Monday through Saturday, noon to 6:00 p.m.
(3) Only one peddler or solicitor shall approach each residence and no peddler or solicitor
from the same company can approach the same residence again unless invited back by the
resident.
(4) The license is not transferable to another person.
(c) For transient merchants, peddlers, solicitors, and non-profits.
(1) Must not conduct business in a manner that creates a health or safety hazard.
(2) Must conduct business in a reasonably courteous manner at all times, must not engage in
offensive, obscene, or abusive language, must not push open a door not opened by an
occupant, must not place any portion of a person's body through an opened doorway
without the invitation of an occupant, and must not physically attempt to stop an occupant
from closing a door.
(3) Must immediately leave private property when requested to do so by an occupant and must
leave immediately upon completion of a transaction or an unsuccessful attempt to contact
the occupant.
(4) When entering onto a residential property go directly to the most visible door of the house,
unless there is an adult present outside of the house or in an open garage.
(5) A person conducting business shall not make untrue statements to the people contacted
regarding the purpose of the contact, orders placed by the neighbors, or the goods or
services offered.
(6) Must not make statements to the people contacted indicating or implying city endorsement
of their activities or products by the city.
(7) No shouting, blowing a horn, ringing 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.
(d) For mobile food units
1)State License. Mobile food units shall hold a valid license from the State of Minnesota
Department of Health or Department of Agriculture. Any conditions of the State Health
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Department shall be incorporated into the license issued under this Section, in addition to
any other conditions by the City of Elk River.
2)Insurance. A certificate of insurance evidencing the following forms of insurance:
I.Commercial general liability insurance, with a limit of not less than one million
dollars ($1,000,000) each occurrence. If such insurance contains an annual aggregate
limit, the annual aggregate limit shall not be less than two million dollars
($2,000,000);
II.Automobile liability insurance with a limit of not less than two million dollars
($2,000,000) combined single limit. The insurance shall cover liability arising out of
any auto, including owned, hired, and non-owned vehicles;
III.Food products liability insurance, with a limit of not less than one million dollars
($1,000,000) each occurrence;
IV.Public liability insurance, with a limit of not less than one million dollars
($1,000,000) each occurrence;
V.Property damage insurance, with a limit of not less than one million dollars
($1,000,000) each occurrence; and
VI.The city shall be endorsed as an additional insured on the certificate of insurance
and the umbrella/excess insurance if the applicant intends to operate its mobile
food unit on public property including right-of-way.
VII.Certificate of insurance must contain a provision requiring notification be sent to
the city should the policy be cancelled before its stated expiration date.
3)Hold harmless. A mobile food unit operating on city property, including public right-of-way,
must submit a signed statement that the license shall hold harmless the city and its officers
and employees, and shall indemnify the city and its officers and employees for any claims for
damage to property or injury to persons which may be occasioned by any activity carried on
under the terms of the license.
4)Duration of sales. A license shall be valid for one year but the mobile food unit can’t operate
in, or in front of, the same location for more than 21 days each year within the City of Elk
River.
5)Overnight storage. No overnight storage of a mobile food unit shall be permitted unless
approved by council.
6)Signs. No signage shall violate the provisions of this Code relating to size and number of
business signs.
7)Noise. No shouting, blowing a horn, ringing a bell, or use of 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. Ice cream trucks traveling through a residential district may have outdoor music or
noise-making devices to announce their presence.
8)Parking. Mobile food units must be located on a paved surface. A mobile food unit may not
operate in a traffic lane, on a sidewalk, or in any location which causes an obstruction of
traffic, such as queuing of patrons or advancement of vehicles. A mobile food unit may
operate on eligible public streets and occupy no more than two parking spaces. No parking
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or sales shall take place within 60 feet of an intersection of two or more streets or within 30
feet of a driveway that enters a public street.
9)Hours. Hours of operation shall be allowed from 8:00 a.m.to midnight, except in a residential
district in which sales shall be allowed from 8:00 a.m. to 10:00 p.m.
10)Waste Disposal. Mobile food units shall provide waste disposal and clean up all litter and
garbage generated by the mobile food unit before moving from the location.
11)Self-Containment. Mobile food units can’t connect to public utilities. Any generators must be
self-contained.
12)Inspections. Mobile food units shall comply with all applicable Fire Codes and may be
inspected by a City Fire Official prior to operation.
13)Locations. Mobile food units shall be located only in zoning districts where retail sales are
allowed as permitted or special uses under the city’s zoning code. Except that mobile food
units may be located on privately owned property in the Commercial, and Industrial zoning
areas of the city with written property owner permission and Residential lots as exempted
per Section 383 (11).
Option 1
Mobile food units shall only be allowed in the parallel parking spots along Main Street in the
downtown district.
Option 2
Mobile food units shall only be located in designated, signed parking spots in the downtown
district.
14)City parks. Mobile food units are not allowed in city parks unless they get written permission
of the parks and recreation director. Except that parks with concession stands also require
the written consent of the concession operator for their specific event.
15)Mobile food units may not provide external seating unless located in an industrial zoning
district.
16)Ice cream trucks are allowed to operate within the public right-of-way in residential districts.
17)Mobile Food Units are prohibited from vending activities within 500 feet of an event for
which the city has issued a special event permit, unless they are specifically authorized by the
event organizer to participate in the event.
Sec. 38-415. - Fee; term.
The annual license fee for engaging in a licensed activity under this chapter, transient business,
peddling, or soliciting shall be established by ordinance by the city council and shall be paid at the
time of application for a license. A license, unless revoked, is for the calendar year or part thereof for
which it has been issued. License fees may not be prorated. Upon denial of any application for a
license, the city shall refund the annual fee paid.
Sec. 38-416. - Penalties, enforcement.
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Violation of any provision of this chapter shall be a misdemeanor and subject to all penalties
provided for under state law.
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