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Item 3.5 Mobile Food Units Regulations Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 25 August 2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Clerk Etzel & Deputy Clerk Kalland Parks and Recreation Director Jacobs Recreation Supervisor Schwecke 3.5 – Mobile Food Units STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends the City Council approve an ordinance amending the City Code regulating Mobile Food Units. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: City staff has initiated an update of Title 4, Chapter 12 of the City Code regulating Mobile Food Units. The purpose of the update is to clarify when a City license is required and streamline the application process. The administration of current regulations for Mobile Food Units is divided between the City Clerk and Parks and Recreation Department. Going forward, City staff propose that all Mobile Food Units require licenses (even for private events) and applications will be received and processed by the City Clerk. For Mobile Food Units that will be located within or on public streets adjacent to City parks to serve either public or private events within the park, the Parks and Recreation Department will coordinate oversight of the users only from site location and operation standpoint. A license will now be required for Mobile Food Units for City events like Otsego Prairie Festival or Otsego Farmers Market. The proposed ordinance would not take effect until 1 January 2026 so as not to disrupt current licenses or planned events. The Administrative Subcommittee reviewed the proposed ordinance amendment at their meeting on 6 August 2025, and recommended consideration of approval as presented. SUPPORTING DOCUMENTS ATTACHED: • Ordinance 2025-06 • Summary of Ordinance 2025-06 for Publication POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Ordinance 2025-06 amending the City Code regulating Mobile Food Units and approve publication is summary form. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO: 2025-06 ORDINANCE AMENDING THE CITY CODE REGARDING MOBILE FOOD UNITS. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Title 4, Chapter 12 of the City Code (Business and Licensing Regulations – Mobile Food Units) is hereby repealed in its entirety and amended to read as follows: 4-12-1: PURPOSE AND INTENT: The purpose of this chapter is to allow and regulate mobile food units in the City when serving the general public or upon public properties and ways. 4-12-2: DEFINITIONS: The following words shall apply to this chapter as written unless context indicates or requires a different meaning: CITY: City of Otsego, Minnesota CITY CLERK: City Clerk of the City of Otsego. MOBILE FOOD UNIT: A food and beverage service establishment that is: A. A vehicle mounted unit, either motorized or trailered; B. Readily movable without disassembling for transport to another location; or C. A nonmotorized vehicle self-propelled by the operator. 4-12-3: LICENSE REQUIRED: A. City License. 1. No person shall operate a mobile food unit in the City without a valid license required under this chapter. 2. Each mobile food unit shall require a separate license. B. Qualification. A license as provided for by this chapter shall be issued only to businesses filed with the Minnesota Secretary of State or individuals 18 years of age or older. C. Exceptions: 1. None. 2 D. Duration: A license granted under this chapter shall be valid until the end of the calendar year in which it is granted. 4-12-4: PROCESS: A. Application: An application for a license under this chapter shall be filed with the City Clerk on a form provided by the City and shall include the following information: 1. The applicant shall be the owner of the mobile food unit. 2. The applicant's full legal name, other names the applicant uses or is known by, date Of birth, and driver's license number or other acceptable identification of the person applying. 3. The permanent and any temporary home and business address, phone numbers, and email addresses of the applicant. 4. The license plate number of the vehicle to be used in conjunction with the activity. 5. A certificate of insurance that has been issued to the applicant by an insurance company authorized to do business in the State of Minnesota verifying that the applicant is insured against claims arising out of all operations of such applicant under this chapter for the duration of the license term of at least one million dollars ($1,000,000.00) against liability for bodily injuries and for at least one million dollars ($1,000,000.00) against liability for damage or destruction of property. 6. A mobile food unit operating on city property, including public right-of-way, must submit a signed statement that the licensee shall hold harmless the city and its officers and employees, and shall defend and 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. 7. Written consent of the property owner from which the mobile food unit sales will be conducted upon or adjacent to. 8. A copy of the related license or permit issued by the State of Minnesota required to operate a mobile food unit. 9. The dates and hours of the mobile food unit operations shall be specified. 10. A site plan showing the exact location of the mobile food unit shall accompany the application. B. License Fee: The required fee shall be submitted with the application in an amount as established in Section 3-1-2 of this code. C. Incomplete Applications: 3 1. The city clerk shall determine if an application for a license under this chapter is complete within fifteen (15) days of receipt of the application and payment of the license fee; an application shall be determined to be complete only if all required information is provided. 2. If the City Clerk determines that an application is incomplete, they shall inform the applicant in writing of the information required to be provided to complete the application. D. Complete Applications. The city clerk shall either approve or deny the license within thirty (30) days after receipt of a complete application. E. Application Review. The city clerk shall request city staff, including but not limited to, the city planner, city engineer, building official, parks and recreation director, streets superintendent and City Attorney, and provide general assistance in review of the application. F. Conditions. The City impose any condition of approval it considers necessary to protect the public health, safety, and welfare or ensure compliance with this code. G. Denial Of An Application: 1. The city clerk shall provide an applicant written notice sent via first class U.S. mail of an application for license having been denied stating the reasons for the action and the right of the applicant to request a hearing to appeal the decision. 2. Upon receiving the notice of an application for license being denied, the applicant shall have ten (10) days to request a hearing to appeal the decision. 3. If requested by an applicant within the allowed timeframe, a hearing shall be scheduled within thirty (30) days from the date of the request. 4 Hearing: a. The hearing shall be conducted by the city council. b. The applicant shall be provided opportunity to refute the reasons for the application having been denied, to plead for issuance of the license, or to justify the actions for which the city denied the license, including the cross examination of witnesses that testify against the applicant and the right to produce witnesses on their behalf. c. The city council shall give full consideration to all evidence presented during the hearing and make a determination whether to deny or issue the requested license. d. The city clerk shall notify the applicant via first class U.S. Mail of the city council 4 decision stating, in detail, the reasons for the action within ten (10) days of the close of the hearing. 5. Appeal: Any person whose license is denied following a hearing by the city council shall have the right to appeal that decision within thirty (30) days of the date of service of the final decision, to the District Court. Any person seeking judicial review under this chapter must serve their appeal on the city and all necessary parties, including any landowners, within the thirty (30) day period defined above. 4-12-5: PERFORMANCE STANDARDS: A. Mobile food units shall only be allowed on private property with the written consent of the property owner, except as may be allowed by this section, and the following: 1. Mobile food units shall not interfere with vehicle and pedestrian circulation or emergency vehicle access. 2. There shall be adequate parking on the to provide space for the mobile food unit as well as satisfy all parking requirements for the property as required by title 11, chapter 21 of this code. B. Public Rights-of-Way and City Properties: 1. Mobile food shall only be allowed to park upon public streets in accordance with the following: a. All service windows shall face the boulevard, sidewalk, or trail. b. On-street parking shall comply with title 7, chapter 2 of this code, unless otherwise approved by the streets supervisor. c. Mobile food units shall provide an independent power supply that is screened from public view if it is not located on the mobile food unit. d. Mobile food units shall not interfere with or obstruct sidewalk or trail use, property access, or emergency vehicle use of public streets. 2. Mobile food units shall only be allowed upon city property, including parks and trails regulated by title 8, chapter 7 of this code, subject to approval of the city. 3. There shall be no overnight storage of a mobile food unit shall be allowed 4. Operation of mobile food units upon public properties not owned by the city shall be regulated the same as private properties. C. Hours. Mobile foods units shall operate only between the hours of seven o'clock (7:00) A.M. and 5 ten o'clock (10:00) P.M. D. Drive Through. Mobile food units shall not have a drive-through. E. Signs: 1. Signage other than displayed on the mobile food unit shall comply with Title 11, Chapter 23 of this code. 2. Mobile food units shall not use any outside sound amplifying equipment, televisions. or similar visual entertainment devices, lights, or noisemakers such as bells, horns, or whistles. F. Waste. All waste, garbage, litter, and refuse shall be contained in leak proof, nonabsorbent containers which shall be kept covered with tight-fitting lids and properly disposed of. No waste, garbage, litter, or refuse shall be dumped or drained onto sidewalks, streets, gutters, storm drains, or public trash receptacles. G. Inspections. Mobile food units shall comply with all applicable fire codes and may be inspected by the emergency services director prior to operation. H. Display. The approved license shall be prominently displayed on the mobile food unit for the duration of the event. 4-12-6: ENFORCEMENT: A. Violation: 1. Any license issued under this chapter may be subject to enforcement action at the discretion of the City Council for violation of any of the following: a. Fraud, misrepresentation, or incorrect statements on the application form. b. Fraud, misrepresentation, or false statements made during the course of the license activity. c. Violation of any provision of this chapter or other provisions of the city code. 2. A separate offense shall be deemed to have been committed upon each day during on or which a violation occurs or continues. B. Suspension And/Or Revocation: 6 1. Notice: a. A licensee shall be given written notice sent via first class U.S. mail of a suspension or revocation action stating the charges against the licensee and the right to request a hearing to appeal the suspension or revocation. b. The notice shall provide the following information: (1) State the alleged violation(s). (2) Inform the licensee that the city council will consider suspending or revoking the license. (3) Identify the date, time, and location of the hearing. 2. Hearing: a. A hearing shall be scheduled within thirty (30) days from the date of the notice to the licensee is issued. b. The hearing shall be conducted by the city council. c. The licensee shall be provided opportunity to refute the alleged violations, to plead for retention of the license, or to justify the actions for which the city is seeking to suspend or revoke the license, including the cross examination of witnesses that testify against the licensee and the right to produce witnesses on their behalf. d. The city council shall give full consideration to all evidence presented during the hearing and make a determination whether to suspend or revoke a license as of a specific date by adoption of a resolution based on a finding that a violation has occurred. e. The city clerk shall notify the applicant of the city council decision stating, in detail, the reasons for the action within ten (10) days of the close of the hearing via first class U.S. Mail. 4. Appeal: Any person whose license is suspended or revoked following a hearing by the city council shall have the right to appeal that decision to Court of Appeals within thirty (30) days after delivery of the decision to the applicant. Any person seeking judicial review under this ordinance must serve the City and all necessary parties, including any landowners, within the thirty (30) day period defined above. C. Any person who fails to comply with any provision of this chapter shall be deemed to have 7 committed a penal violation: 1. Misdemeanor. The penalty for violation of this chapter shall be a misdemeanor per Minnesota Statutes 412.231. D. Rights Reserved. The city reserves the right to all means of administrative, civil, and/or criminal enforcement for violations of the provisions of this chapter. Section 2. This Ordinance shall become effective on January 1, 2026, upon its passage and publication. (Remainder of page intentionally blank signatures follow) 8 ADOPTED by the Otsego City Council this 25th day of August, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA SUMMARY OF ORDINANCE NO.: 2025-06 AN ORDINANCE AMENDING THE CITY CODE REGULATING MOBILE FOOD UNITS. NOTICE IS HEREBY GIVEN that on August 25, 2025, Ordinance 2025-06 was adopted by the City Council of the City of Otsego, Minnesota. NOTICE IS FURTHER GIVEN that the ordinance adopted by the City Council amends the City Code regulating Mobile Food Units for license required, process, performance standards, and enforcement. ADOPTED by the Otsego City Council this 25th day of August, 2025. CITY OF OTSEGO Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk Pursuant to Minnesota Statutes 412.191, Subd. 4 and 331A.01, Subd.10, this Ordinance is published in summary form. Complete copies of the ordinance are available for inspection by contacting the City Clerk, Otsego City Hall, 13400 90th Street NE, Otsego, Minnesota 55330 during regular office hours.