02-01-88 agenda
• CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 1
Agenda February 1, 1988
Issue Statement:
Review of options regulating transient merchants
Background:
In July, 1986 the city council received a letter from the Chamber
of Commerce recommending prohibition of transient merchants. The
basis of the request was that current Richfield businesses must
meet city codes, pay taxes, observe sign ordinances and meet
stringent health code regulations at a considerable investment,
and transient merchants did not have to meet such obligations.
Specific questions to review prior to proceeding further include:
1. Should we pursue an ordinance which simply eliminates
transient merchants? It should be noted that state law
will not permit any regulation of agriculture products
sold in Minnesota.
2. Should we pursue a more restrictive ordinance regulating
this type of business?
3. Should we leave in place what now exists in the city
code?
• Some specific concerns expressed by the Chamber are addressed in
various parts of the city code. However, there is no single
section containing all regulations relating to transient
merchants.
A survey was conducted by the Public Safety Department in
surrounding communities related to transient merchants and is
attached for your information. We have also prepared a
comparison of what exists now and a proposed ordinance. These
are attached for your review.
Recommendation:
In examining the issue, staff is seeking direction on how the
council wishes to proceed. Following council discussion of the
issue, staff could be directed to accomplish the following:
1. Develop an amendment to the existing ordinance regulations
relating to transient merchants centralizing and slightly
modifying these regulations. (As attached).
2. Develop an amendment to the existing code that would ban
transient merchants. (Except for Minnesota agriculture
products).
3. Develop an amendment to the existing code which requires
such sales to be conducted in permanent structures at
• fixed locations in the community.
;Z?I /- /
• 4. Let existing ordinances stand and work within current
framework (no change) and make some modifications to
current regulation which would combine the various
regulations into one section of the code.
Basis of Recommendation:
1. The issue of whether to permit transient merchant sales
at all is a community standard issue and should be
decided by the City Council. Staff would recommend that
transient merchants not be permitted.
Alternative Recommendation:
1. As indicated in the recommendations.
Decision Mode
This matter will be presented for discussion at the February 1,
1988 council study session. Based upon the direction provided at
that time, staff will continue to develop appropriate regulations
pertaining to transient merchants.
Respectfully submitted,
Jame D. Prosser
Cit Manager
JDP/eja
*RICHFIELD
CHAMBER of
COMMERCE
.6637 Lyndsle Aw. So. Richfield. MN 55423
Telephone: (612) 866.5100
June 23, 1986
Mayor John Hamilton
City of Richfield
WOU Portland Avenue So. L
Richfield, MN 55423
Dear Mayor Hamilton:
At the June 18, 1986 Board of Director's meeting of the Richfield
Chamber of Commerce, an issue concerning local transient merchants was
discussed and a recommendation was made by the board that the City adopt
a policy prohibiting transient merchants in Richfield.
' Richfield.businesses have to meet city codes, pay taxes, observe
sign ordinances and meet stringent health code regulations at a consid-
erable investment and then have to compete with people that come in
from outside of the city with little or no investment.
The board requests that the Mayor, the City Council and the City
Attorney review the existing Transient Merchant Ordinance and either
prohibit or tighten up the requirements before a license be issued.
Sincerel ,
Ia R. E strrand
Executive irector
• cc: City Council members
Clayton LeFevere
Mark Johnson, Richfield Sun-Current
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Richfield City Code 1180.01
• Section 1180 - Transient merchants, peddlers and wagon peddlers
1180.01. Regulation of transient merchants. Subdivision 1. Definitions. For
purposes of this section the terms defined in this subsection have the meanings
given them.
Subd. 2. "Transient merchant" means a person who engages in temporary or
transient business in the city, whether in one locality or traveling from place
to place within the city, and who hires, leases, occupies or uses any building
structure, vacant lot or railroad car to conduct such business..
Subd. 3. "Transient business" means and includes the selling of goods,
wares, merchandise and farm and garden products.
1180.03. Farm products. This section does not apply to a person who sells or
peddles the products of a farm or garden occupied or cultivated by that person.
Application of this subsection does not exempt a person from the requirements of
subsection 615.19.
1180.05. License. Subdivision 1. General rule. A transient merchant must
procure a license before doing business within the city.
Subd. 2. Application. Application for a license shall be made to the
• clerk. The application shall specify the nature of the applicant's business,
the location of such business and the time during which the applicant desires to
transact such business. The application shall be accompanied by the license
fee.
•
Subd. 3. Fee. The license fee is fixed in appendix D.
Subd. 4. Duration. Upon approval of any license application, the city
manager shall specify the period for which the license is valid. The period may
not exceed the period remaining in the calendar year in which the license is
issued.
1180.07. Registration of state license: compliance with state law. In addi-
tion to the required license, persons desiring to do business as a transient
merchant within the city shall file proof of his possession of a state license
required by Minnesota Statutes, section 329.11. Additionally, the registrant
shall file proof of compliance with all of the provisions of Minnesota Statutes,
sections 329.099 to 329.17.
1180.09. Regulation of wagon peddlers. Subdivision 1. Definition. "Wagon
peddler" means a person selling ice cream, popcorn,. candy, soft drinks or other
confectionary from a pushcart, wagon, self-propelled vehicle, trailer or similar
vehicle, directly to the customer.
Subd. 2. License required. No person may engage in the occupation of
wagon peddler in the city without a license.
• 51197 TRANSIENT BUSINESSES
1197.01. Definitions. Subdivision 1. For the purposes of this
section, tie terms defined in this subsection shall have the
meanings given them.
Subd. 2. "Transient business" means a business enterprise
involving the selling of goods, wares or merchandise which is
conducted at a fixed location but without the intention of being
located there permanently.
Subd. 3. "Transient merchant" means an individual engaged
in the transient business.
1197.03. Scope and Purpose. It is the purpose of this section
to regulate the time, place and manner in which transient
business may be conducted. This section is not intended to
otherwise limit or restrict the nature or scope of the transient
business except as such relates to the location at which the
transient business is to be conducted.
1197.05. Prohibition - Permit. Transient business is prohibited
in all zoning d str cts except C-1 (Neighborhood Commercial) and
C-2 (General Commercial) districts. No person may engage in
transient business in the C-1 and C-2 districts of the city
without having a currently valid transient business permit.
Except as provided in this section, operation of a transient
business without a permit is a misdemeanor.
1197.07. Application. A person desiring to engage in the
transient business shall submit an application for a permit to
the city clerk. The application must be submitted in complete
form at least 30 days prior to the first date on which the
transient business will be conducted. The application shall be
on a form prepared by the city clerk and shall contain the
following:
(a) The applicant's name, age, address of residence. If
the applicant is a partnership, the names of all
partners must be verified by one such partner. If the
applicant is a corporation, the names of all the
officers must be verified by one such officer.
(b) The applicant's (i) business and residence addresses
for a period of five years prior to the application
date, (ii) -statement-as t-o-_whether thea_pplic mt is___
sole owner of the business, and (iii) statement to the
• effect that no personas other than those named in the
application have any interest in the management and
control of the business.
(c) The application shall be accompanied by the favorable
recommendations from a public official in at least two
other cities in which Pli?o ttheasinteengaged in
grity and
transient business, attesting liant.
business ability of the applicant.
(d) A site drawing, drawn to scale, e, showing
Cowin conductedl son
which the transient business
showing:
(i) The location of all structures, parking areas,
located on the parcel.
(ii) The location on the parcel which is proposed to be
utilized by the transient business
to be used for display or
business and patron vehicles.
(iii) The description and location . of all tentsa
awnings, canopies, electrical wiring water
electrical fixtures, water lines and
fixtures proposed to be used in connection with
the transient business.
(iv) The location of all streets and alleys abutting on
the parcel o including theretororhtherefzomline and
all points of
(e) The dates and times during which the transient business
will be conducted.
(f) The names and addresses of all persons owning or in
possession or occupancy of any part of the parcel.
of the pformossessors of
(g) Consent of the wby occupiers and
parcel evidenced y
the city for that purpose.
license or permit required in
(h) Evidence that any
business have been
connection with the transit for,
obtained or are being applied
(i) Such other information as the city clerk shall require.
1197.09. Permit fee. The permit fee is provided in Appendix D
and must be paid at the time the application is submitted.
1197.11. conditions„,
tions are imposed upon-
and upon the conduct of
vernin issuance. The following condi-
r,o__ is under this section
the transient business:
2
(a) The site of the transient business shall abut and have
access to an arterial roadway.
(b) Overnight outside storage of vehicles is permitted only
to the extent authorized by the council upon granting
the permit.
(c) The transient business shall not result in undue
congestion on surrounding streets
(d) Off-street parking -must be adequate for both the
transient business and the other uses conducted on the
parcel.
(e) There shall be no outside storage of the goods, wares'
or merchandise of the transient business.
(f) The transient business shall not generate noise, light,
dust or odors which reasonably would tend to disturb or
annoy occupants of adjacent residential properties.
(g) The, parcel shall be kept free of litter, trash or
debris.
(h) If the transient business is located on a parcel which
abuts a residential district, the transient business
may be conducted only between the hours of 7:00 a.m.
and 7:00 p.m. of any day for which the is granted.
(i) Transient business may be conducted only on the date
specifically stated in the permit.
(j) No permit shall be granted to an applicant who has
previously had a permit, granted under this section,
revoked or to any applicant who previously conducted a
transient business in the city in violation of the
terms of this section, or who has operated a transient
business in this state in violation of the applicable
regulations of the governmental units having.
jurisdiction over that activity.
(k) No more than one permit issued under this section may
cover a parcel at one time.
(1) All tents, canopies, awnings or similar items and all
water, electrical and lighting facilities must be in
compliance with applicable codes and regulations.
1197.13. Duration of Permit - Business Days. The permit issued
pursuant--_to--thus-sec-t-iwn--wh*l ox-- period of 45 days
beginning on the first date on which conduct of the transient
business is permitted under the permit. In specifying the actual
dates for the conduct of the business, the council shall not
permit the 'transient _business to be conducted for more than eight
3
days during such 45-day period nor
consecutive days during such period.
any materials, equipment, goods,
vehicles on the parcel before a date
is.authorized,? and must remove all su
date unless the transient business
next day.
for more than any four
The permit may not locate
merchandise, supplies or
)n which transient business
rh items by the end of that
s also authorized for the
1197.15. Review of APglication. Promptly after receipt of the
complete application, the city clerk shall refer the application
to the city manager who shall review the application and make a
recommendation to the city council for its consideration at a
meeting which is less than 30 days after the date upon which the
complete application was received. The city manager may refer to
the application to such other departments, commissions and
persons as the city manager determines to be appropriate and of
assistance in formulating the recommendation.
1197.17. Suspension or revocation. If the city manager deter-
mines that the permittee has violated any of the conditions
contained in subsection 1197.11 or that the consent described in
subsection 1197.11(g) has been withdrawn, the manager shall
• notify the city council and request that it consider taking
action to suspend or revoke the permit. A copy of the manager's
notification stating the basis for the request shall be mailed to
the permittee at the address shown on the application. The
council shall consider the matter at the next regularly scheduled
council meeting at least five days from the date of the mailing
of the notice. At the hearing, the permittee or its
representative shall have an opportunity to rebut any of the
information contained in the manager's notice and to offer
evidence in mitigation thereof. Following the hearing the
council shall determine whether the evidence establishes a
violation of the conditions or a withdrawal of consent and
whether the permit should be suspended or revolted. The council
may, in lieu of suspension or revocation, determine to place
additional and further conditions upon the permittee if the
council concludes that such additional conditions will assist in
the orderly operation of the business.
1197.19. Relationship to other licenses or permits. Whenever
the particular nature of the transient business requires the
issuance of other licenses or permits, whether from the city or
from other licensing authorities, it shall be unlawful for the
holder of a permit, issued pursuant to this section, to commence
such transient business without having first obtained such other
licenses--an-d--permit . -
r?
U
LLROMNO1.E14
4
?/ 7
EXISTING ORDINANCE
Ord.#
80.01 Regulation of Transient
Merchants. Subd.l.Definitions
For purposes of this Section
the terms defined in this
Subsection have the meanings
given them.
PROPOSED ORDINANCE
Ord.#
1197.01 Definitions-Subd. 1
For the purposes of this
section, the terms defined
in this subsection shall
have the meanings given them.l
(No substantive difference)
1180.01 Subd.3 "Transient Business"
Means and includes the selling
of goods, wares, merchandise
and farm and garden products
1197.01 Subd. 2. "Transient Business"
Business means a business.
enterprise involving the
selling of goods, wares, or
merchandise which is con-
ducted at a fixed location,
but without the intention
of being located permanently.
(Proposed defines location and is more specific)
1180.01 Subd.2 "Transient Merchant"
Means a person who engages
• in temporary or transient
business in the city,
whether in one locality
or traveling from place to
place within the city, and
who hires, leases, occupies
or uses any building structure,
vacant lot or railroad car to
conduct such business
1197.01 Subd.3 "Transient Merchant"
Means an individual engaged
in the transient business.
( Proposed simplifies by reference so transient business which
restricts it to a "fixed" location.)
1180.03 Farm Products
This sec ion does not apply to a
person& Sells or peddles the
products of a farmq garden
occupied or cultivated by
that person. Application
does not exempt from 617.19
None Proposed
Our understanding is , you
can not regulate this type
of activity.
? p )
PAGE TWO
j - Cont'd
EXISTING ORDINANCE - Continued PROPOSED ORDINANCE - continued
•Ord.# Ord.#
1180.05 License.Subd.l General 1197.05 Prohibition-Permit
Rule Transient business is prohibited
A transient merchant must in all zoning districts except
procure a license before C1 (neighborhood commercial)
doing business within the C2 (general commercial).
city. No person may engage in transien
business in the Ci and C2
Districts of the city without
having a current valid transient
' business permit. Except as
otherwise permitted in this
section operation of a transient
business without a permit is a
misdemeanor.
(The proposed ordinance gives clear understanding as to
where a transient business may set up. It also provides
a penalty to which the existing ordinance does not
address, and perhaps clarifies any misunderstanding.)
1180.05
•
Subd. 2 - Application
Application for a license
shall be made to the Clerk.
The application shall
specify the nature of the
applicant's business,
location of such business
and the time which the
applicant desires to
transact such business.
The application shall be
accompanied by the license
fee.
1197.07
1180.07 Registration of State
License: Compliance
with State Law
In addition to the required
license, a person desiring
to do business as a transient
merchant within the city shall
file proof of his possession
of his state license required
by Minnesota Statutes Section
329.11, additionally, the
reg-rst-ant shall - file proof
of eompliande with all of
,the'provisions of Minnesota
Statutes, Section 329.099 to
329.17.
Application
A person desiring to engage in
the transient business shall
submit an application for a
permit to the City Clerk. The
application must be submitted
in complete form at least
30 days prior to the first date
on which transient business
shall be conducted. The
application shall be on a form
prepared by the City Clerk and
shall contain the following
information:
a. Applicants name, age,
address of residence.
If the applicant is a
partnershipm, the names
of all partners must be
verified by one such
partner.
If the application is
a corporation, the names
of all of the officers
must be verified by one
such officer.
b. Business and residence
addresses for a period
of five years prior to
the application.
PAGE THREE - cont'd
EXISTING ORDINANCE - Continued
•
H
•
I?
PROPOSED ORDINANCE - Continued
Application date, statement as
to whether the applicant is
full owner of the business and
statement to the effect that no
person other than those named
in the application have any
interest in the management and
control of the business.
c. The application shall be
accompanied by the favorable
recommendations from a public
official and at least two other
cities in which applicant is
engaged in transient' business,
attesting to the integrity and
business ability of the applicant.
d. A site drawing, drawn to scale
showing the parcel on which the
transient business is to be
conducted and showing:
i. The location of all
structures, parking areas,
located on the parcel.
ii. The location of the parcel
which is proposed to be
utilized by the transient
business including areas
to be used for display
of merchandise, parking
of business and patron
vehicles.
iii. The description and
location of all tents,
awnings, canopies. electri-
cal wiring and electrical
fixtures, water lines and
water fixtures proposed to
be used in connection with
the transient business.
iv. The location of all streets
and ally's abutting the
parcel including the
right-of-way line and all
points of access therefrom.
e. The dates and times during which
the transient business will be
conducted.
f. Names and addresses -of -aTrpersons
owning or in possession or
occupancy of any part of the
parcel.
PAGE FOUR - Cont'd
XISTING ORDINANCE - Continued
PROPOSED ORDINANCE - Continued
g. Consent of the owners,
occupiers and possessers of
the parcel evidenced by
execution of the form prov-
ided by the city for that
purpose.
h. Evidence that any license or
permit required in connection
with the transient business
had been obtained or being
applied for.
i. Such other information as the
City Clerk shall require.
(It is evident that the proposed ordinance provides much
clearer direction and specific information for the city
to regulate such an industry. There are several areas
that perhaps are not needed, but in the final draft of
any such ordinance those areas can be addressed.)
180.05 Subd. 3 Fee 1197.09 Permit Fee
The license fee is fixed The permit fee is provided in
in Appendix D. Appendix D and must be paid
at the time of application is
submitted.
(The proposed ordinance provides that the fee be paid
at the time of application as opposed to the existing
which is silent to that issued.)
One other area that we may want to consider in this particular
section,after consulting with the City Attorney,is that they
provide a cash escrow to the city that would insure clean-up
of the area after they vacate.
1180.05
•
Subd. 4 Duration
Upon approval of any license
application the City Manager
shall specify the period for
which the license is valid.
The period may not exceed
the period remaining in the
calender year in which the
license is issued.
1197.13 Duration of Permit- Business
Days
The permit issued pursuant to
this section shall be for a
period of 45 days beginning on
the first date on which conduct
of transient business is
&Cli«LLt_=%A uiluel rae permit.
In specifying the actual dates
for the conduct of the business
the council shall not permit
the transient business to be
conducted for more than 8 days
during such 45 day period nor
PAGE FIVE - Cont'd
EXISTING ORDINANCE - Cont'd PROPOSED ORDINANCE- Cont'd
for more than any 4 consecu-
tive days during such period.
The permit may not locate any
materials, equipment, goods,
merchandise, supplies or
vehicles on the parcel before
a date on which the transient
business is authorized and must
remove all such items by the
end of that date unless the
transient business is also
authorized for the next date.
( The proposed ordinance is much more specific in terms
of the duration of the permit whereas, the existing
ordinance leaves it solely up to the City Manager
which could provide some confusion.)
It is certainly clear in the proposed ordinance the exact,
time period for the permit as well as how many dates they
can operate as a business. Perhaps the council may wish
to restrict that even more.
None 1197.11 Conditions Governing Issuance
40 The following conditions are
imposed upon the granting of
permits under this section and
upon the conduct of the
transient business:
a. The site of the transient
business shall abutt and
have access to an arterial
roadway.
b. Overnight outside storage
of vehicles is permitted
only to the extent
authorized by the council
upon granting the permit.
C. The transient business
shall not result in
undo congestion on
surrounding streets.
d. Off-street parking must
be adequate for both
transient business and
the other uses conducted
------ on the-parcel.
• e. There shall be no outside
storage of the goods,
wares or merchandise of
the transient business.
PAGE SIX - Cont'd
EXISTING ORDINANCE - Cont'd
PROPOSED ORDINANCE - Con't
f. The transient business
shall not generate noise,
light, dust or odors
which reasonably would
tend to disturb or annoy
occupants of adjacent
residential properties.
g. The parcel shall be kept
free of litter, trash,
or debris.
h. If the transient business
is located on a parcel
which abutts a residential
district, the transient
business may be conducted
only between the hours of
7:00 a.m. and 7:00 p.m.
of any day of which the
permit is granted.
i. Transient businesses may
be conducted only on the
dates specifically stated
in thre permit.
j. No permit shall be
granted to an applicant
who has previously had
a permit, granted under
this section, revoked or
to any applicant who has
previously conducted a
transient business in the
city in violation of the
terms of this section, or
who has operated transient
business in the state in
violation of the applic-
able regulations of the
governmental units having
restrictions over that
activity.
k. No more than one permit
issued under this section
may cover a parcel at
one time.
1. All tents, canopies,
awnings or similar items
and all water, electrical
and lighting facilities
must be in compliance
with applicable codes and
regulations.
PAGE SEVEN - Cont'd
ISTING ORDINANCE - Cont'd PROPOSED ORDINANCE - Cont'd
(While the existing ordinance that regulates transient
businesses are silent to the areas described in the
proposed, there are other ordinances that deal with
those particular issues. The problem however, is that
one would have to review at least three other ordinances
to find those and perhaps this is a cleaner way in which
the transient businesses can be regulated.)'
None 1197.15 Review of Application .x
Promptly after receipt of the 4
complete application, the City
Clerk shall refer the application
to the City Manager who shall
review the application and make
a recommendation to the city
council for their consideration at
a-meeting which is less than 30
days after the date upon which the
complete application was received,
The City Manager may refer the
application to such other depart-
ments, commissions and persons as
the City Manager determines to be
appropriate and of assistance in
formulating your recommendation.
(The council may wish to consider the approval authority
be granted to the City Manager rather than becoming
involved. The current ordinance, while not specific, -
infers that the City Manager does currently approve
those licenses. The council may wish to address this
issue where other licenses are involved as well.)
None 1197.17 Suspension of Revocation
If the City Manager determines that
the permittee has violated any of
the conditions contained in Sub-
sections 1197.11, or that the
consent'described in Subsection
1197.11 (g)., has been withdrawn,
the Manager shall notify the city'
council and request that they
consider taking action to suspend
or revoke the permit. A copy of
the Managers notification stating
the basis for the request shall
be mailed to the permittee at the
address shown on the application.
The council shall consider the
matter at the next regularly
scheduled council meeting at least
PAGE EIGHT - Con't
EXISTING ORDINANCES - Cont'd PROPOSED ORDINANCES - Cont'd
5 days from the date of the mailing
of the notice. At the hearing, the
permittee, or it's representatives
shall have an opportunity to rebutt?
any of the information contained ink
the Manager's notice and to offer i
evidence in mitigation thereof.
Following the hearing, the 'council'-
shall determine whether the evidence
establishes a violation of the
condition.or withdrawal of consent
and-whether the permit should be
suspended or revoked.- The council
may, in lieu of suspension or
revocation, determine to place
additional and further conditions
upon the permittee, if the council
concludes that such additional
conditions will assist in the orderly
operation of the business.
( The existing ordinances are silent in this particular area
and we are certainly recomme nding that a process such as
this be established probably not only as it relates to
transient merchants but othe r licensee's as well. However,
• we should get some direction from the City Attorney as to
whether or not this needs to go before the council in all
instances. It appears to st aff that if we have a transient
merchant who is violating some sections of the transient
merchant ordinance itself, o r other ordinances, we may want
to take immediate action to suspend or revoke the license.
That authority should not on ly be granted to the City Manager
but perhaps even to the Dire ctor of Public Safety as well.
Staff feels that the City At torney is concerned about due
process and rightfully so. It does appear however, that
staff could suspend the lice nse as long as the licensee
has an appeal process to the council.)
1180.07 Registration of State 1197.19 Relationship to Other Licenses
License: Compliance of
or Permits
State Law. Whenever the particular nature
In addition to the required of the transient business
license, persons desiring requires the issuance of other
to do business as transient ,
licenses or permits, whether
merchants within the city from the city or from other
shall file proof of his licensing authorities, it
possession of a state shall be unlawful for the
license required by
Minn
State Statutes 329
11 holder of a permit, issued
.
. pursuant to this section, to
Additionally, the regis- commence such transient
trant shall proof of business without having 'first
compliance with all the obtained such other licenses
provisions of Minn. State and permits.
Statutes 329.099 to 329.17.
'ZT/-
PAGE NINE - Cont'd
XISTING ORDINANCES - Cont'd PROPOSED ORDINANCES - Cont'd
(The existing ordinance addresses only those licenses issued
by the state which staff believes addresses tax collections
and revenues. The proposed however, would be more encompass-
ing while not precluding that they comply with the Minnesota
Statutes. The proposed would be general in nature and
therefore, covering any other licenses not only issued by the
state, but perhaps by the county or city in some instances.)
The council may wish to consider, at least by reference, in any
ordinance as this,that they comply with the outdoor merchandising and
storage ordinance to ordinance section 11.35 and I would also propose
that they comply with any-sign or advertising ordinances. We may wish
to review our sign ordinance so that it would be consistent with what
the council desires. If it does not,we may wish to build in additional
restrictions related to signs for transient merchants.
0