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Date
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February 11, 2008
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Agenda
Item No. 38 Roll
Call No. 08- Communication No. 08-047 Submitted by: Richard
A. Clark, City Manager |
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AGENDA HEADING:
Amending
Chapter 78 of the Municipal Code regarding Transient Merchants.
SYNOPSIS:
Recommend approval of revisions to Chapter
78 of the Municipal Code; this chapter contains various regulations that govern
the operation of transient merchants within
Under
the new regulations, all transient merchants would be required to obtain a
license from the City Clerk. In order to obtain the license, they would be
required to provide proof of an
The
Community Development Department and the Police Department would enforce the new
regulations. Staff proposes that the regulations become effective May 15,
2008, in order to allow time for staff to inform local transient merchants and
other interested parties of the changes.
FISCAL IMPACT:
Amount:
Indeterminate
It
is unclear how the new regulations will affect the number of transient
merchants that apply for a transient merchant license. In calendar year 2007, 12
transient merchants were issued licenses, resulting in $1,200 in revenue. This
ordinance will expand the number of businesses that need a transient merchant
license for operation. Operating costs
associated with enforcement will be absorbed by current departmental budgets.
Funding
Source:
Revenue from license
fees will be deposited in FY 2007-08 Operating Budget, GE001 CCL010000, pg. 76.
ADDITIONAL INFORMATION:
Current
City regulations define a transient merchant as “a person, principal, or agent
who engages in an outdoor merchandising business from a temporary location or
structure in the city, and whose lease
on the premises on which the business is conducted is for a period of less than
one year, and who, for the purpose of carrying on such business, hires,
leases or occupies any land, temporary structure, railway car, trailer or truck
for the exhibition and sale of such goods, wares or merchandise and including
the sale of any manufactured article, food, fruit, vegetable or farm product.”
(Sec. 78-61).
Before operating
within the City, a transient merchant meeting the definition above is required
to obtain a license from the City Clerk unless he or she wishes to conduct one
of a number of exempted sales, such as the sale of food in the C-3 central
business district or the sale of raw fruits and/or vegetables. A transient
merchant license is valid for up to 30 days and can be renewed. Per City code, a vendor with a property lease
that is valid for one year or more can operate without a transient merchant
license.
Mobile food
vendors fall into the category of transient merchants and must abide by City
licensing regulations depending on the nature and location of their operations.
Further, all mobile food vendors must be licensed with the Iowa Department of
Inspections and Appeals, which also regulates and inspects their operations.
Staff
has reviewed City regulations pertaining to transient merchants and recommends
several ordinance amendments. In general, staff recommends that the City prohibit
retail food and merchandise sales within the city from any vehicle, trailer, tent,
or temporary structure or from any temporary location or place, with the
exception of the exempted sales outlined in the “Synopsis” of this
communication.
Under
the new regulations, all transient merchants (regardless of the length of their
property leases) would be required to obtain a license from the City Clerk. The
license would be valid for a maximum of three consecutive days at a cost of
$50. At least ten days must elapse
between the times when a parcel is used for the operation of a transient
merchant. No transient merchant license would be
issued for the operation of a transient merchant business on the same parcel
within 10 days prior, nor 10 days after the time a transient merchant business
is allowed to operate on the parcel under any license previously issued. In addition to current application
requirements, transient merchants would be required to submit their application
five business days prior to use and offer proof of
Staff
has made special provisions for transient merchants who wish to operate during specific
events that last more than three days. Basically, licensed vendors can operate
for the duration of the Iowa State Fair and Drake Relays provided that they are
at a location within one-half mile of the boundaries of the Iowa State
Fairgrounds or the
Community
Development zoning inspectors, with the assistance of NBSD officers, will
enforce the new regulations Monday through Friday, 8 AM – 5 PM. The Police
Department will be responsible for enforcement during the evening hours and on
weekends. As a condition of obtaining
and operating under the transient merchant license, vendors must display their
licenses so that they are visible from the street.
Another
significant change in the regulations is the establishment of a 1,000 foot
buffer zone around events for which a street use permit has been issued. No transient merchant may operate within the
buffer zone without the prior written consent of the applicant for the street
use permit for that event. The buffer zone will not apply to food cart vendors
in the downtown zoning district.
Staff proposes
that the new transient merchant regulations become effective May 15,
2008, and that no license shall be issued under the existing regulations for
any business activities to occur after May 25, 2008. The
overlap between the old and new regulations is needed because any
application under the new regulations cannot be officially filed until May 15,
2008, and must be filed at least 5 business days before the business starts
operation.
If
Council approves the new regulations, staff will conduct public outreach to
make all stakeholders aware of the ordinance changes. Staff will send letters
concerning new regulations to former licensees and other registrants, property
owners that lease to transient merchants, and interested organizations. Also,
staff will explore options for financial assistance to transient merchants who
wish to transition to a permanent structure for their business operations. Staff
intends to monitor compliance with and enforcement of the new transient
merchant regulations and will report findings to Council one year after the new
ordinance is enacted.
Staff has
conducted a random review of transient merchant ordinances statewide, with an
emphasis on neighboring communities. Several similarities and differences among
regulations were found during this review. The following represents the most
significant findings:
Licensing
Regulations:
Most
towns and cities require a transient merchant to obtain a license. No cities or
towns flatly prohibit all transient businesses.
A few cities, such as
When
compared to other ordinances, staff’s proposal includes less stringent
licensing requirements. For example,
many municipalities require that the applicant provide date of birth, physical
descriptions, and criminal background information. Two jurisdictions,
All
jurisdictions require a bond. The City
of
Most
ordinances provide for license denial based on specific criteria. Staff’s recommendation would allow the city
clerk to deny a license request after verifying application information.
In
terms of license revocation, most towns and cities provide for it in a manner
similar to
Operational
Regulations:
The
amount of time that transient merchants are allowed to operate at a specific
site varies from community to community.
Staff’s proposal allows for three consecutive days of sales at a
specific property, with no other vendor allowed to operate on the property for
ten days afterward.
Some communities define a mobile vendor as a vehicle that can sell from the street only. Other communities allow vendors to operate from a specific location only for the amount of time specified in the transient merchant ordinance.
PREVIOUS COUNCIL ACTION(S):
Date: January 28, 2008
Roll Call Number:
08-146
Action: Amending
Chapter 78 of the Municipal Code regarding transient merchants and sales of
food and merchandise from temporary facilities. (Council
Communication No. 08-034)
Moved by Meyer that this ordinance be considered and given first vote for
passage; refer to the City Manager to receive input and to include the
requirement that applicants provide proof of an Iowa Health Inspection
License. Motion Carried 7-0.
Date: December 3, 2007
Roll Call Number:
07-2322
Action:
Request
from Council Member Brian Meyer to speak regarding ordinances on mobile vendors
and transient merchants. Moved by Meyer
to refer to the City Manager, Legal and other related departments to prepare
discussion for a Council Workshop before January 28, 2008; prepare ordinance
for first reading on the January 28, 2008 Council Meeting and prohibit issuance
of transient merchant licenses for more than sixty days effective December 4,
2007. Motion Carried 7-0.
BOARD/COMMISSION ACTION(S):
NONE
ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:
Third reading of
ordinance.