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CR 10-018 Mobile Food VendorsFebruary 16, 2010 Council Report 2010 -018 MOBILE FOOD VENDORS Proposed Action Staff recommends that the Council approve the following motion: Move that the Hopkins City Council approve Ordinance 2010 -1014 for first reading. Adoption of this motion will begin the process of amending Section 600 of the Hopkins City Code to establish licensing requirements for mobile food vendors. Overview In 2009 the City was approached by Rocky Marlow with the request that he be allowed to place a hot dog stand in the Clock Tower Plaza. Hopkins does not have an ordinance which covers the licensing of mobile food carts. Since Mr. Marlow's request involved City property, staff was able to establish criteria for a mobile food vendor through the use of a property use agreement. When the City Council approved the use agreement, it was with the understanding that a licensing procedure would be established should the City wish to continue to allow mobile food vendors in the future. The City's experience with Rocky's Weiner Wagon was positive. Rocky Marlow has stated that he would like to operate in 2010. Staff received only positive comments about his operation. Staff is therefore recommending that the City Council adopt Ordinance 2010 -1014 which would establish licensing procedures for mobile food vendors. Primary Issues to Consider • What are the minimum requirements for acquiring a mobile food vendor license? • What additional restrictions are being placed on these activities? Supporting Information • Analysis of Issues • Alternatives • Ordinance number 2010 -1014 • Property Use Agreement -/Z. d &A es A. Genellie Assistant City Manager Council Report 2010 -018 Page 2 Analysis of Issues What are the minimum requirements for acquiring a mobile food vendor license? Staff proposes that the ordinance licensing mobile food vendors would, at a minimum, require: • Mobile food vendors obtain a Minnesota Department of Health food license and comply at all times with the applicable health codes and regulations. The mobile food cart must comply with the requirements of MN Rules 4626. • Mobile food vendors maintain a permanent location within the City of Hopkins for the storage of food and beverages carried by the lessee's cart, and for the cleaning and servicing of that cart. Such permanent location must comply in all respects with the requirements of Section 600 of the Hopkins City Code, and have at least a Level Three food license. The cart must return to the permanent location at least once daily for cleaning and servicing. • Each licensee shall provide proof of liability insurance in the amount of one hundred thousand dollars ($100,000.00) for individuals, three hundred thousand dollars ($300,000.00) for any single incident and ten thousand dollars ($10,000.00) for property damage. The city must be named an additional insured. What additional restrictions are being placed on these activities? Mobile food vendors would be limited to locating on public property in the downtown area. Due to the uncertainty surrounding how much regulation and oversight would be necessary for this activity; staff is recommending that a limit of three mobile food vendors be issued each year. Alternatives 1. Adopt Ordinance number 2010 -1014 for first reading. 2. Do not adopt Ordinance number 2010 -1014. Staff recommends Alternative #1. CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE NO. 2010 -1014 AN ORDINANCE AMENDING SECTION 600 OF THE HOPKINS CITY CODE THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: Section 1. That Section 600.49 Subdivision 1 be amended by adding the following: j) Mobile Food Cart 1) Mobile food cart shall mean a food establishment authorized and operated according to the standards and conditions set forth in section 600.67 of this Code. Mobile food carts are exempt from the provisions of Section 1145 of the Hopkins City Code. Section 2. That Section 600 be amended by adding the following: 600.67. Mobile food cart vendors. A maximum of three licenses per year may be issued pursuant to section 600 for mobile food cart vendors for the sale of specified food and beverage items from mobile pushcarts on public property, which shall be operated and conducted in accordance with the following conditions: (1) Each mobile food cart shall be separately licensed and may operate only at the location specified in the license, except as permitted in subsection (20). No licensee may trade carts or locations with another licensee; however, should a licensee apply for and be granted a different location for a cart during the licensing year and chooses to surrender the original location for that cart, the fee for such midseason cart location transfer shall be the fee indicated in section 188.250 of this Code for transfer alone. (2) Application procedure: a. Each applicant shall file an application with the City Clerk on forms provided by the Clerk. In addition to the requirements of section 600 of this Code, the City Clerk may require such information on the application as the Clerk considers reasonable and necessary. b. No application for a license shall be accepted for filing unless the applicant files therewith plans and specifications for the cart which have been approved by the Environmental Health Officer. Provided, however, that if the cart is not ready and available for inspection sixty (60) days after the application is filed, the applicant's proposed operating location shall be available to other applicants, and the applicant shall be required to select a new location. A single applicant, for the purposes of this section, shall mean an individual person, or any member of that person's immediate family and shall also include a corporation and any corporation with substantially the same ownership or ownership by persons of the immediate family of the stockholders of that corporation or partnership. C. Each applicant shall include in the application a proposed operating location. The proposed location shall be referred to the director of public works for the approval or disapproval. The director of public works shall not approve a location where a mobile food cart would substantially impair the movement of pedestrians or vehicles, or pose a hazard to public safety. Further, the director of public works shall not approve any location which is adjacent to a bus stop, taxi stand, or handicap loading zone, within fifty (50) feet of an intersection, within three (3) feet of a curb, or directly in front of a commercial entryway. If the applicant's proposed location is disapproved, the applicant shall be so notified, and the applicant may select an alternate location, which shall also be referred to the director of public works for approval or disapproval. A holder of a valid license for the previous license year may renew that license and thereby reserve that location for another license year. Any license not renewed by April fifteenth shall cause that location to become available to other applicants. Licenses may be renewed between April first and April fifteenth by the payment of a late fee in addition to the license fee. All licensees shall be notified of the availability of locations which have been vacated or for which licenses have not been renewed. The notification shall include a due date for applicants for these locations and a date upon which a lottery will be held to choose among multiple applicants. (3) All mobile food cart food vendor licenses shall expire on April first of each year subject to renewal year to year thereafter. (4) No mobile food cart shall have dimensions exceeding four (4) feet in width, eight (8) feet in length and eight (8) feet in height. However, a cart may be equipped with an awning which overhangs by not more than twelve (12) inches in any direction. Each mobile food cart shall be self - propelled and capable of being moved and kept under control by one (1) person traveling on foot. A special license may be granted to a handicapped person to operate a mobile food cart propelled by electric motor, provided that the applicant shall meet all other conditions for a license. (5) Location restrictions: a. Mobile food cart food vendors may operate only within the downtown district defined as the south side of First Street North to north side of First Street South; the west side of 6th Avenue to the east side of 13th Avenue. b. A mobile food cart food vendor licensed under this section may operate only on publicly owned property, within the boundaries described in subparagraph (1) above, with the approval of the director of public works. C. Mobile food cart vendors must enter into a Property Use Agreement with the City of Hopkins prior to operation. (6) A mobile food cart food vendor license shall not be transferable from person to person or from place to place without approval of the City Manager or his or her designee. (7) Every licensee shall maintain a permanent location within the City of Hopkins for the storage and preparation of food and beverages carried by the licensee's mobile food carts, and for the cleaning and servicing of those carts. Such permanent location shall possess a Level Three Hopkins food license and comply in all respects with the requirements of the Food and Beverage Ordinances. Each mobile food cart shall return to the permanent location at least once daily for cleaning and servicing. (8) Each mobile food cart shall meet National Sanitation Foundation (NSF) standards for food storage, preparation and dispensing. Toilet facilities shall be required at the permanent location but not on each cart. (9) Each cart shall carry adequate hand - washing facilities for the employees of the licensee. A waste retention tank with fifteen (15) percent larger capacity than water supply tank shall be provided. (10) All waste liquids, garbage, litter and refuse shall be kept in leakproof, nonabsorbent containers which shall be kept covered with tight- fitting lids and properly disposed of at the permanent location. No waste liquids, garbage, litter or refuse shall be dumped or drained into sidewalks, streets, gutters, drains, trash receptacles or any other place except at the permanent location. When leaving the sales area the licensee or his employees shall pick up all litter resulting from his business and shall deposit such litter in an approved container located on his cart. (l 1) The Environmental Health Officer shall publish, and may from time to time amend, a list of approved food and beverage items which may be sold by mobile food cart food vendors. No items of any kind, other than approved food and beverage items, shall be sold or dispensed from mobile food carts. (12) There shall be issued to each licensee a suitable decal for each licensed pushcart. Every pushcart licensed under this chapter shall at all times have the decal permanently and prominently fastened on the pushcart. (13) Affixed permanently and prominently to each pushcart shall be a sign no smaller than twelve (12) inches by twelve (12) inches displaying the name, address and telephone number of the pushcart owner. (14) Each licensee shall provide proof of liability insurance in the amount of one hundred thousand dollars ($100,000.00) for individuals, three hundred thousand dollars ($300,000.00) for any single incident and ten thousand dollars ($10,000.00) for property damage. A certificate of insurance shall be delivered to the City Clerk prior to issuance of a license. The city shall be named an additional insured. (15) No mobile food cart operator shall use lights or noisemakers, such as bells, horns or whistles, to attract customers. A mobile food cart operator may use battery - operated lights with protective shielding for the purpose of illuminating food and utensils. (16) No mobile food cart shall operate before 7:00 a.m. or after 11:00 p.m. on any day. (17) No mobile food cart shall operate, park, stand or stop in any street or alley except to cross at designated street crossings. (18) The city council shall establish a reasonable fee, not to exceed two hundred fifty dollars ($250.00) per year, to be charged to each mobile food cart food vendor, to defray the cost of cleanup and maintenance and other policing in connection with the operation of the food cart. (19) Any mobile food cart operator who shall fail to operate at any licensed location for thirty (30) consecutive days between May first and October first shall forfeit that location. The City Clerk shall notify all licensees of the vacation of said location and shall set a date for a lottery, if necessary, to choose among multiple applicants. Section 3. The effective date of this ordinance shall be the date of publication. First Reading: Second Reading: Date of Publication: Date Ordinance Takes Effect: ATTEST: February 16, 2010 March 2, 2010 March 11, 2010 March 11, 2010 Gene Maxwell, Mayor Terry Obermaier, City Clerk APPROVED AS TO FORM AND LEGALITY: City Attorney Signature Date PROPERTY USE AGREEMENT This Agreement is made between the City of Hopkins, (hereinafter "City") and (hereinafter "Lessee ") The City owns property located at The Lessee desires to secure certain space in the City Property to operate a Mobile Food Cart Now, therefore, in consideration of the mutual covenant herein, the parties agree as follows: 1. EXCLUSIVE RIGHT. The City hereby grants Lessee a non exclusive permit to use the City Property subject to the terms and conditions of this agreement. The City Property shall be, at all times, accessible to the public. The City shall have the right to determine where on the City Property Lessee may operate. 2. RENT. The rent for the use of the City Property shall be $250.00 for the term stated in paragraph 8, payable upon execution of this agreement. 3. OPERATIONS: 1. The Lessee shall obtain a Minnesota Department of Health food license and shall comply at all times with the applicable health codes and regulations. The mobile food cart shall comply with the requirements of City Code, Section 600 and MN Rules 4626. 2. The Lessee shall keep the immediate area clean and comply with any specific directions from the City with respect to clean up. The Lessee shall fully restore and repair any damage to the City Property or improvements thereon caused by the Lessee or the Lessee's employees or agents. 3. The lessee may conduct his business on the following days between the hours of except for the following days: 4. UTILITIES. The Lessee shall not use any City utilities. 5. INDEMNIFICATION. By signing this agreement, the Lessee agrees to RELEASE AND DISCHARGE the City and their agents and employees, from liability for injuries or damages, including any losses caused by the negligence or strict liability of the released parties. The Lessee agrees not to sue or make claim against those agencies and agrees to defend, hold harmless and indemnify the City from all claims losses, actions and suits that may be brought as a result of use of the City Property. 6. ASSIGNMENT AND SUBLEASE. The Lessee will not assign this contract or sublet any portion of the contract without consent in writing from the City. 7. TERMINATION. Either party many terminate this agreement at will by giving 14 days written notice to the other party. 8. TERM. The term of this agreement shall be from to 9. NOTICES. All notices shall be given by I' class U.S. mail or by personal delivery to the following addresses: City: Ci!y of Hopkins 1010 V St S Hopkins MN 55343 Lessee: Mailed notices are effective one business day after the date of mailing. FOR THE CITY OF HOPKINS; FOR THE LESSEE; Eugene J. Maxwell, Mayor DATE DATE Rick Getschow, City Manager DATE DATE