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An Ordinance Regulating Mobile Food Vendors in the City of Little Rock University of Arkansas at Little Rock Master of Public Administration Program May 2013

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An Ordinance Regulating Mobile Food Vendors

in the City of Little Rock

University of Arkansas at Little Rock Master of Public Administration Program

May 2013

UALR Master of Public Administration Program Page 2

An Ordinance Regulating Mobile Food Vendor Operations

in the City of Little Rock

Project Team Members

Michelle Barnes James Fisher Xianchen Guo Jessica Kelton

Jessica Key Billy Parrish Jon Vannatta

Rachel Watson Morgan Weaver

Spring, 2013

© UALR MPA Program all rights and restrictions apply

Reproduction and use of materials permitted by the City of Little Rock.

UALR Master of Public Administration Program Page 3

Table of Contents

Proposed Ordinance page 4

Summary of Considerations page 7

Section 1: Features of Proposed Ordinance

1.1 Update Language and Modify Terms page 10

1.2 Address Food Safety page 11

1.3 Create Permitting Process page 12

1.4 Zoned Operations page 13

Section 2: Economics of Mobile Food Operations

2.1 Economic Realities page 15

Section 3: Future Considerations

3.1 Healthy Vending in Parks and Food Deserts page 19

3.2 Public Right-of-Way and Franchising page 21

3.3 Food Truck Courts page 22

3.4 GPS Tracking of Mobile Food Vendors page 23

References page 25

UALR Master of Public Administration Program Page 4

Ordinance No. ___________

AN ORDINANCE REGULATING THE OPERATION OF MOBILE FOOD VENDORS IN

THE CITY OF LITTLE ROCK; REQUIRING A PERMIT; AND FOR OTHER PURPOSES.

WHEREAS: In an effort to be proactive, the City of Little Rock is revisiting its current policy

for mobile food vendors; and

WHEREAS: The number of mobile food vendors are rising nationwide as well as locally and

provide the service of convenient and diverse food choices; and

WHEREAS: Over the last five years, mobile food vending has allowed creative culinary

professionals an avenue to pursue small business ownership and practice their craft; and

WHEREAS: Like many municipalities, Little Rock is realizing a resurgent interest in mobile

food vendors and must examine its current policies; and

WHEREAS: The current city ordinance authorizing and regulating mobile food vendors is

outdated and needs to be modified to meet the growing demands of the mobile food vending

business.

NOW, THEREFORE, BE IT RESOLVED BY THE LITTLE ROCK CITY BOARD OF

DIRECTORS;

The following definitions shall apply in the interpretation and the enforcement of this

ordinance:

A. Mobile Food Vendor (MFV): means a portable push cart or a vehicle mounted food

service establishment designed to be readily movable and approved by law to travel

highways, roadways, and/or waterways in the state of Arkansas that is a self-contained

mobile food establishment equipped with permanently mounted fresh water holding tanks

and waste holding tanks as set forth by the Arkansas Department of Health.

B. Permit: means the document issued by the regulatory authority that authorizes mobile

food vending

C. Regulatory authority: means the local, state, or federal enforcement body or authorized

representative having jurisdiction over Mobile Food Vendors.

D. Employee: the permit holder, person in charge, person having supervisory or

management duties, person on the payroll, family member, volunteer, person performing

work under contractual agreement, or other person working with a Mobile Food Vendor.

UALR Master of Public Administration Program Page 5

Rules and Regulations

A. All Mobile Food Vendors shall comply with all applicable rules and regulations

pertaining to food establishments set forth by the regulatory authority of the Arkansas

Department of Health and will be held in compliance by this body.

B. Mobile Food Vendors can apply for a business license after first obtaining a Arkansas

Department of Health permit

C. Mobile Food Vendors must renew their business license every calendar year.

D. Mobile Food Vendors must have proof of sales tax and use permit.

E. Mobile Food Vendors must post their permit in the window or display prominently on the

vehicle. This permit shall be visible to inspectors. MFVs must also display all other

department permits and/or licenses as required by that regulatory authority.

F. Mobile Food Vendors must provide menu, photo of vending unit, and proposed days of

use as a part of the business license application.

G. Mobile Food Vendors must have a fixed-base central preparation facility or a notarized

statement from the owner of a central preparation facility stating the MFV uses the

facility as its base of operation. All central preparation facilities must be approved by the

Arkansas Department of Health.

Operations Rules and Regulations

A. Mobile Food Vendors shall not dispense any food or drink when parked within the right-

of-way of any public street in the City of Little Rock except as in section or in any city

owned property without written consent from the city.

B. Mobile Food Vendors shall operate any day between the hours of 6:00am and 11:00pm.

C. Mobile Food Vendors shall be designated to conduct business in districts zoned C1, C3,

C4, UU and must have written permission from the property owner.

D. Mobile Food Vendors may conduct business in metered parking spaces. Vendors shall

use up to two spaces for no longer than two consecutive hours during designated

operation hours. MFVs are responsible for funding meters during allotted time.

E. If at one location for more than two hours, Mobile Food Vendors must show proof of

permission from a business within 150 feet for employees to have use of restrooms (or

other facilities as approved by the health authority) during hours of operation.

UALR Master of Public Administration Program Page 6

F. Mobile Food Vendors must supply, in a prominent location, trash containers sufficient in

size to collect all waste generated by customers and staff of the mobile vending

operation. All trash and debris generated by customers and staff shall be collected by the

mobile vendor and deposited in their trash container and removed from the site by the

mobile vendor.

G. Mobile Food Vendors shall not use stakes, rods, or any method of support that is required

to be drilled, driven, or otherwise fixed, in asphalt pavement, curbs, sidewalks or

buildings.

H. Mobile Food Vendors shall not provide or allow any dining area, including but not

limited to tables, chairs, booths, bar stools, benches and stand-up counters, unless a

proposal for such seating arrangement is submitted with the permit application and

approved.

I. Mobile Food Vendors shall not impede access to the entrance or driveway of any

adjacent building.

J. Mobile Food Vendors shall not obstruct sight distance for drivers.

K. Mobile Food Vendors are prohibited to the use of PA systems, bells or music.

L. Mobile Food Vendors shall be further instructed by the licensing and operating rules set

forth by the Finance Department, as well as, the Planning and Development Department

of the City of Little Rock.

UALR Master of Public Administration Program Page 7

Proposed Mobile Food Vendor Ordinance

Summary of Considerations

Features of Proposed Ordinance Update language and modify terms

Address food safety issues Establish proper permitting and processes Establish areas of operation

Economics of Mobile Food Operations

Economic perceptions and economic realities

Food Truck and Restaurant economics

Future Considerations

Operations in parks & food deserts

Public right-of-way use and franchising

Food court variances

Employing GPS Tracking for safety & monitoring

UALR Master of Public Administration Program Page 8

Introduction In an effort to address various community concerns over the antiquated regulations

guiding food truck operations in Little Rock, the proposed ordinance is prepared and

recommended to replace existing regulations. Current regulations do not adequately

regulate current mobile food vendors, thus the proposed ordinance is based on

contemporary industry standards and operations and is informed by rules and

regulations used in other municipalities throughout the United States. A review of

ordinances from several municipalities reveals that the proposed ordinance contains

accepted and appropriate provisions for adequately regulating mobile food vendors in

the City of Little Rock. Table 1 provides a summary of provisions used to regulate

operations of mobile food vendors in other municipalities.

With the passage of the proposed ordinance, all aspects of the mobile food vending

industry operations are significantly improved. For example, to further the health and

safety of citizens, mobile food vendors must now comply with all Arkansas

Department of Health rules and procedures. Moreover, zoning policies are

recommended to provide specific areas within which mobile food vendors may legally

operate. For years, ambiguous zoning policies for mobile food vendors created a need

for standardizing mobile food vendors’ operations. The proposed ordinance stipulates

these operations must comply with Little Rock zoning rules. With standardization

providing uniform and definitive guidelines, mobile food vendors will have certainty

for how and where their business operations are permitted. The proposed ordinance

establishes mobile food vendors with legitimate and structured regulations necessary

for proper and consistent operations as these businesses contribute to the local

economy and become productive and innovative members of the Little Rock food

industry.

UALR Master of Public Administration Program Page 9

Table 1. Matrix of Mobile Vending Ordinance Provisions for Select Cities in the U.S.

Aust

in

Dallas

Houst

on

San A

nto

nio

Los

Angle

s

San D

iego

Kansa

s Cit

y

New

York

Mem

phis

Mia

mi

Phoenix

Bost

on

Las

Vegas

Seatt

le

Port

land

LIT

TLE R

OC

K

Standardization Policies

Identifies Mobile Food Vending Operations

Public Health Policies Health Permit Requirements

Local Government Authority for Health Requirements

Annual Inspection Requirements

Food Preparation/Storage Requirements

Location Policies Designations of Distances from Restaurants

Designations for Public Rights-of-Way

Designation of Specifically Zoned Areas

Operation Policies Operating Hour Requirements

Time Limitations for Locations

Permission Requirements to Operate on Private Property

Restroom requirements

Other Common Policies Prohibit Fixed Dining Fixtures

Prohibit Public Address (PA) Systems

Waste Collection Requirements

Note: blank cells denote the provision is not addressed by the ordinance.

UALR Master of Public Administration Program Page 10

Section 1 Features of Proposed Ordinance

Update language and modify terms

Address food safety issues

Establish proper permitting and processes

Establish areas of operation

1.1 Update Language and Modify Terms

The City of Little Rock ordinance governing mobile vending operations is outdated and

must be updated with terminology and definitions appropriate to the contemporary

mobile food industry. These improved definitions and terminology better reflect the

diverse nature of the mobile food industry in Little Rock; this industry encompasses

everything from push carts selling hot dogs to food trucks selling fresh gourmet foods.

These definitions contained in the proposed ordinance help clarify language relevant

to the mobile food vendors, which have transformed recently into a much more

diverse and varied industry. The ordinance also establishes an acceptable definition

of mobile food vendors. In determining definitions for the ordinance, decisions are

guided principally by considerations involving equity and intergovernmental

consistency. By using the same definitions as the Arkansas Department of Health, the

proposed ordinance matches health requirements for the City of Little Rock with the

State of Arkansas to create concurrent and standardized language for all food

establishments. The modification of language governing mobile food vendors also

addresses mobile food operations, permitting processes and authority for mobile food

vending licensing, operations, and health regulations.

UALR Master of Public Administration Program Page 11

1.2 Address Food Safety Public health and safety is a common concern among cities that allow mobile food

vending within their jurisdiction.

Recognizing health and safety are

priorities for regulating food safety, the

proposed ordinance conforms to

regulations set forth for all food

establishments in the State by the

Arkansas Department of Health (ADH).

Food establishments in the state must

operate under the Arkansas health

regulations. In an attempt to ensure

that mobile food vendors and

restaurants adhere to similar

regulations when feasible, these

recommendations encourage both initial

and periodic inspections of mobile food

vendors.

The Little Rock ordinance as proposed is consistent with ordinances in other

municipalities, as all these ordinances include language to regulate health standards

for mobile food vendors. In fact, most municipalities regulate food safety for mobile

food vendors through state codes controlling food handling, preparation, and service.

Most state codes are adopted from the

Uniform Food Code developed by the

United States Food and Drug

Administration (USFDA). The uniform

food code was developed to prevent

food borne illnesses that affect millions

of people in the United State annually.

The ADH adopted the Uniform Food

Code as the basis for regulating all

retail food establishments to prevent

food borne illness and provide

provisions guiding health inspections

that are required twice per year. These

regulations are applied unilaterally with

only three exceptions, which are

predicated on the nature of the mobile food vendor operation. For example, due to

California…a model health code

California utilizes a modified version of the USFDA Uniform Food Code. The California health code includes provisions regulating mobile food vending. These provisions standardize what is considered a mobile vendor across the state. Arkansas health regulations are similar in that these regulations apply to all restaurants in the State and establish regulations for equipment restaurants and mobile vendors must maintain in order to comply with State codes. California’s code however, is much more specific, for example, California goes as far as to regulate fuel use.

The City of Angels . . . An Example of Commissary Requirements

Most mobile-food vending operations must treat commissaries as a home base of operations. For example, in Los Angeles, which is guided by the California Retail Food Code, a commissary is a facility where they report to at the end of each work day to park and clean their truck, store inventory, and do the paperwork associated with running a business. However, exceptions to this requirement are for trucks that operate from a fixed position at community events, or trucks that engage only in limited food preparation.

UALR Master of Public Administration Program Page 12

impracticality, mobile food vendors are not required to maintain some equipment in

their unit (which includes mechanical ware washing equipment, or a dishwasher, a

service sink, and solid food waste storage. These exceptions are noted during the

permitting process as part of the required mobile food vendor’s retail plan.

Currently Arkansas has an equitable set of regulations addressing public health and

safety in the retail food industry; all retail food establishments comprise the retail

food industry. Having one set of regulations for all restaurants creates equal rules

and regulations as all retail food operations must have a retail plan. This retail plan is

reviewed with ADH prior to a retail food establishment receiving a health permit,

which is required in order to operate. In addition, each operation’s facility must be

inspected before a health permit is awarded. Facilities are also subject to two

random inspections annually, which all must pass. All operations are required to have

a central preparation facility or place (referred to in state codes as a commissary) for

food storage and preparation; the facility cannot be a private home or dwelling and

must have a valid health permit.

1.3 Create Permitting Process

As noted, mobile food vendors, like full service and fast food restaurants, are

required to comply with all local and state regulations before they begin operations.

Upon receiving a health permit from the Arkansas Department of Health, a mobile

food vendor is required to obtain a

business license from the City of Little

Rock. In the proposed ordinance, mobile

food vendors are required to observe

guidelines for which restaurants are

subject and must renew the business

license annually. Thus the change in the

ordinance ensures mobile food vendor

regulations are consistent across retail

food operations.

To aid inspectors with verifying if mobile

food vendors are operating legally and

have required permits to operate, the

proposed ordinance contains provisions

for displaying licenses and permits.

Provisions of the ordinance that require mobile food vendors to display licenses and

permits in a location visible to patrons can aid city or state officials receiving an

Boston… An Example of Guided Permitting

Most cities require mobile food vendors to seek compliance with two or more different agencies. Vendors must acquire the necessary permits to operate, namely health permits from a state-level authority and business permits from the city. The process can take weeks to complete and its complexity often confuses operators. Boston also requires the issuance of multiple permits; however the city publishes a step-by-step guide that clearly explains how to apply for a permit and the order of operation for the entire process.

UALR Master of Public Administration Program Page 13

Chicago . . . An Example of Proximity Restrictions

Some cities prohibit mobile food vendors from conducting business within a certain distance of traditional restaurants. Chicago has an aggressive policy, requiring mobile food vendors to refrain from doing business within 200 feet of a restaurant. Chicago penalizes mobile food vendors up to $2,000 for breaking compliance or for parking longer than two hours.

inquiry about a specific mobile food vendor. The display requirement can help

inspectors easily identify registered and compliant vendors without interrupting their

business. Moreover, such display requirements may mitigate complaints from citizens

questioning the legitimacy of the mobile food vendor’s operations. The addition of

this provision in the ordinance provides additional consistency with guideline to which

restaurants are subjected, as well as ensures customers that the vendor is meeting

health and city guidelines. For example, the Arkansas Department of Health requires

restaurants to post health permits in a location visible to customers.

As part of the license application, the proposed ordinance requires mobile food

vendors to submit: a menu, a photo of the vending unit, and proposed days of regular

operations. These provisions provide city and state officials with additional

information for ease of identification of mobile food vendors and verification of their

license and permit status. Such identification and verification can aid officials when

handling complaints or responding to a Little Rock 311 request.

1.4 Zoned Operations Mobile food vendors in Little Rock currently operate with minimal guidance on where

and when operations can take place or

occur. The proposed ordinance addresses

operations by permitting mobile food

vendors to conduct business in areas zoned

for similar commercial activity. The

proposed ordinance allows operations in

areas zoned C1, C3, C4, and UU. Within

these designated zones, mobile food

vendors can conduct business on private

property with permission from the property

owner; the mobile food vendor must

provide proof of written permission. Mobile

food vendors cannot operate in the public-right of-way without special permission

from the City of Little Rock.

With citizens’ health and safety the primary purpose for proper mobile food vendor

regulations, zoning requirements ensure citizens purchase food that is safe for service

and consumption. As a result, regulations are recommended to prevent mobile food

vendors from selling food and/or drinks in the right-of-way (unless permission is

acquired from the City of Little Rock). Public right-of-way is restricted to ensure the

safety of pedestrians and ensure traffic is not obstructed. However, the proposed

UALR Master of Public Administration Program Page 14

ordinance permits mobile food vendors to use up to two metered parking spaces for

up to two hours. At the end of the two hour period, the mobile food vendor must

relocate to another area not in the same general vicinity.

The proposed ordinance requires that mobile food vendors operating from a location

for more than two hours must have written permission from a business, which must be

within 150 feet of their mobile unit, to use their restroom facilities. Mobile food

vendors must also provide sufficient trash collection bins for customers to utilize and

must remove these bins at the end of the vendor’s hours of operations. Mobile food

vendors must not block exits and/or driveways at their service locations and must

guarantee that adjacent businesses are unimpeded by the operation. Mobile food

vendors are not permitted to install any rods, tables, and chairs, and must abide by

the noise ordinance. Mobile food vendors may operate between the hours of 6:00 a.m.

and 11:00 p.m.

The ordinance proposes specific zoning areas in which mobile food vendors can

operate, while also restricting their operations in other areas, e.g., in the public

right-of-way (except as otherwise noted). In an effort to ensure health, safety, and

fairness across retail food operations, the City of Little Rock is regulating mobile food

vendors according to protocols and procedures practiced in other cities across the

United States.

UALR Master of Public Administration Program Page 15

Section 2 Economics of Mobile Food Operations

Economic perceptions and economic realities

Food Truck and Restaurant economics 2.0 Introduction

Contemporary mobile food vendors, or “food trucks” as these are popularly known,

are now more like restaurants than traveling canteens. Mobile food vendors now offer

gourmet fare that can rival dining options of many local restaurants. The rapid

transition to the current diversity in cuisine and dining options for mobile food

vendors creates unbridled excitement among ‘food truck enthusiasts’, but much angst

among traditional full service and fast food restaurants. Though many perspectives of

food trucks abound, cities like Little Rock, just as other cities, must assess operation

procedures of mobile food vendors just as they do for any commercial or industrial

vendor conducting business in the city. Part of this assessment of mobile food vendor

operations includes establishing guidelines for this sector based on current economic

realities. Moreover, these regulations must remain fair and equitable in their

application to this sector.

2.1 Economic Realities

Due to their mobility and coupled with an appeal that ranges from novelty to notable,

mobile food vendors appear to enjoy a business advantage over traditional full service

and fast food restaurants. By being able to access their market, mobile vendors,

unlike their traditional counterparts, take their product to the customer rather than

depending on the customer to come to their location. Consequently, a complaint

often lodged against the mobile food industry is that, due to their mobility, these

vendors unfairly compete for business. In essence, a perception exists in which some

people believe mobile food vendors can relocate to busy and populated areas and

capture customers and appropriate income from restaurants (full service and fast food

restaurants). Another grievance lodged against the mobile food industry asserts that

these vendors do not have the same overall operation costs of full service and fast

food restaurants. Mobile food vendors, however, are quick to show their challenges

UALR Master of Public Administration Program Page 16

associated with vehicle maintenance, weather, restricted space, and locating places

to operate confound their ability to compete. While the start-up costs for entering

the food service business are less for mobile operations, market realities (e.g., small

segmented markets, labor availability, limited operation hours, and limited capital)

and regulatory realities (conforming to restaurant health and safety codes) often

imperil the unsuspecting entrepreneur. In the end, many full service and fast food

restaurants fail (at an estimated rate of 25%) at nearly the same rate as mobile food

operations (estimated around 30% to 35%). In other words, the underlying economics

for these restaurant operations are quite similar – these entities share similar

challenges that affect their ultimate failure and success.

Understanding the economic challenges that all restaurants face, a focus on the

economic standing of these entities – full service restaurants, fast food restaurants,

and mobile food vendors – provides insight into the true dimensions of the

marketplace for this industry (see Table 2). Nationally, transaction characteristics for

restaurants and mobile food vendors shows that the two sectors moving in different

directions – the restaurant industry is moving forward, while the mobile food sector is

moving backward. The information, though slightly dated is pre-recession,

demonstrates the struggles of the mobile food sector during this period; these figures

portray a weak industry nationally.

Within Little Rock, more recent figures from 2012 tax information depict a vibrant but

quite small mobile food sector (vis-à-vis full service and fast food restaurants). As

shown in Table 3, mobile food vendors constitute less than one-half of one percent of

total tax receipts for all restaurants in Little Rock (full service, fast food, and mobile

food restaurants); total tax receipts serve as a proxy for total sales. In fact, the food

service sector in Little Rock is dominated by full service and fast food restaurants,

which dominate sales at 64.5 percent and 35.1 percent respectively.

UALR Master of Public Administration Program Page 17

Table 2. Transaction Characteristics for Restaurants and Mobile Food Vendors, 1997-2002

Characteristics (U.S.) Restaurants Mobile Food Vendors

Establishments (actual number)

2002 195,659 2,303

1997 191,245 2,593

percentage difference 2.26% -12.59%

Sales ($000)

2002 $144,649,964 $833,505

1997 $112,450,172 $879,397

percentage difference 22.26% -5.51%

Annual Payroll ($000)

2002 $46,064,140 $143,997

1997 $34,435,004 $170,510

percentage difference 25.25% -18.41%

Paid Employees (actual number)

2002 3,904,628 9,515

1997 3,641,402 11,683

percentage difference 6.74% -22.79%

Source: U.S. Census Bureau, 2007.

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Table 3. Gross Receipts for Top Grossing Restaurants and Mobile Food Vendors Full Service Restaurants*

Taxable Receipts

Fast Food Restaurants*

Taxable Receipts

Mobile Food Vendors**

Taxable Receipts

Host International

4,781,957 Chick-Fil-A 4,323,139 Flossie’s Funnel Cakes

94,796

Cheddars Casual Cafe

4,757,412 McDonald’s 3,669,955 El Chapulin 89,017

Olive Garden 4,202,176 Chick-Fil-A 3,549,574 Taqueria Samantha

79,608

Red Lobster 3,924,532 McDonald’s 3,424,590 La Fina 48,342

Copelands of New Orleans

3,810,283 Chick-Fil-A 3,407,483 Purple Penguin 40,883

Texas Roadhouse 3,699,661 McDonald’s 2,997,857 The Southern Gourmasion

38,909

On the Border 3,567,888 McDonald’s 2,827,198 Clyde & Kiddo’s BBQ

37,415

Cracker Barrel 3,272,342 McDonald’s 2,493,525 Taqueria Emma

27,096

Chili’s Grill & Bar

3,225,172 McDonald’s 2,352,109 Big Daddy’s Dogs

26,762

Flying Fish of Little Rock

3,177,230 McDonald’s 2,477,061 Dream Eats Cafe

26,714

Totals

TOTAL 38,418,653 TOTAL 31,522,491 TOTAL 509,542

TOTAL ALL Full Service Restaurants

N=443

273,218,454

TOTAL ALL Fast Food

Restaurants N=158

148,520,052

TOTAL ALL Mobile Food

Vendors N=62

1,644,799

Total for All Restaurants (Full Service and Fast Food Restaurants, & Mobile Food Vendors)

423,383,305

Percent of Totals

Receipts as a Total of All Restaurants

64.53% Receipts as a Total of All Restaurants

35.08% Receipts as a Total of All Restaurants

0.39%

Note: based on figures from Little Rock Advertising and Promotion Commission using 2012 data. *The commission uses multiple categories for classifying restaurants (e.g., ‘full service restaurants’, ‘caterers’, ‘concessionaires’, ‘fast food restaurants’, ‘mobile units’, and ‘private clubs’). **In this category, the term ‘mobile food vendors’ is used (in lieu of the commission term ‘mobile units’) to remain consistent with terminology used in the report. Excluded from this analysis are locations in which mobile food vendors are used for scheduled events (e.g., the Arkansas State Fair, Southwest Special Events, and the I-30 Speedway) as these receipts typically include those for multiple vendors at one location; businesses no longer in operation are excluded.

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Section 3 Future Considerations

Operations in parks & food deserts

Public right-away use and franchising

Food court variances

Employing GPS Tracking for safety & monitoring

3.0 Introduction In conducting research for the proposed ordinance, the experiences of other cities

and research about mobile food vending provided many other concepts and features

that the City of Little Rock may consider in the future. These considerations may be

of interest to the City of Little Rock, but these need to be fully vetted for their

suitability and potential application in Little Rock. These future considerations seek

to further modify, or improve the ordinance eventually adopted.

3.1 Healthy Vending in Parks and Food Deserts Mobile food vendors are uniquely positioned to address the rising burden of obesity

and other health disparities that lead to chronic health issues. From Michelle Obama’s

“Let’s Move” campaign to the Healthy Food and Active Living initiative of Little Rock

Mayor Mark Stodola, health agencies and activists are highlighting the rampant

increase in diabetes, heart disease, stroke, cancer, and other chronic diseases as well

as how these diseases disproportionately affect low income and minority

communities. The Centers for Disease Control and Prevention link the increase in

chronic diseases directly to the obesity epidemic and report the effects of unequal

health outcomes across socioeconomic strata. Disparities in the health of communities

can be correlated to the degree of access residents have to nutritious foods, like fresh

fruits and vegetables. Communities characterized by a lack of, or limited access to

nutritious foods, which are normally sold at grocery stores and farmers markets, are

called food deserts. Residents of these communities with limited access usually have

inadequate transportation means to travel outside their community for food.

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Therefore, these residents typically endure diets laden with processed foods high in

calories and low in nutritional value. These circumstances contribute to higher rates

of obesity in low income and minority communities and drive the increase in chronic

diseases among those living in these communities.

The City of Little Rock has an opportunity to

confront growing health disparities in the city by

capitalizing on the unique ability of mobile food

vendors to broaden access to healthy foods,

particularly in these low socioeconomic areas. By

leveraging the mobility of food trucks, the City of

Little Rock can enact a program that encourages

vendors to provide nutritious foods in these

areas. City parks, considered part of the public

right-of-way, are restricted from mobile food

vending in the proposed ordinance. However, a

future consideration is to allow vendors to

operate in parks if they can demonstrate their

menu conforms to specific health and nutrition

standards. City parks are spread across the city

and can be found in many areas near, or in, food deserts. Areas in southwest Little

Rock, recognized by the Arkansas Coalition for Obesity Prevention as food deserts, are

a natural starting point for expanding mobile food vending into public parks due to

the area’s dearth of food stores offering fresh fruit and vegetables.

Cities across the country have similar programs in place. In both Kansas City and San

Francisco, mobile food vendors are allowed access in parks and near schools in low

income areas to sell affordable, healthy foods. The health departments in states are

vital collaborators in these programs; they can evaluate mobile vendors for

compliance with nutritional standards. The City of Little Rock could collaborate with

the Arkansas Department of Health to confer special "healthy food vendor" status to

vendors who meet nutritional standards, thereby creating a category of vendors

eligible to participate in these areas; as well, should incentives be necessary to

recruit participants in the program, other potential areas can be opened to these

vendors only (e.g., rights-of-way in downtown Little Rock’s River Market). As an

example, Kansas City's Parks and Recreation policy allows vendors to sell in the city's

parks, provided that the vendor’s menu complies with explicitly defined nutrition

guidelines as set by the health department. Vendors with at least 50 percent of their

foods meeting guidelines are deemed "healthier" vendors and vendors with at least 75

percent of foods meeting these guidelines are considered "healthiest." Vendors

Mobile Food Vending . . . An Answer to Food Deserts Mobile food vendors could contribute to the accessibility of nutritious food, particularly for underserved and vulnerable communities by virtue of their mobility. A mobile cart or truck could function like a supermarket produce aisle on wheels to get these items to neighborhoods in need of fresh produce. Kansas City and San Francisco are banking on this mobile food vendor potential by allowing vendors access to public parks as long as their menu meets a certain health threshold.

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Franchising . . . An Answer to Mobile Food Vending Parking Many cities impose certain limits on the amount of time mobile food vendors can park in one location and conduct business to prevent one vendor from monopolizing coveted locations within the city. Many cities also prohibit vendors from operating in the public right-of-way. Franchising of public locations or right-of-way is a way cities can create competitive locations, consistency for customers of vendors,

and generate revenue.

meeting criteria qualify for reduced fees and are allowed to sell in more areas across

the city. A program that mirrors Kansas City’s initiatives could be a future

consideration for the City of Little Rock to improve food access and control health

disparities among residents in these areas.

3.2 Public Right-of-Way and Franchising Some cities allow access to the public right-of-way through franchise arrangements.

There are many motivations for allowing mobile food vendors to use public areas

through a franchise system. Mobile food vending may lead to an increase in public use

and enjoyment, and, with proper design and management, mobile food vending can

encourage walking, add vitality to the

street, and promote local economic

development. Such positive associations

can create areas epitomizing a “sense of

community” to aid and diversify economic

growth and development. The use of

mobile food vendors in public right-of-ways

allows streets to serve as a place for

socializing and perhaps generate more

civic involvement and engagement.

Though each has different regulations and

processes, the cities of Austin and Seattle

are examples of cities that recognize the

potential of, and allow uses of the public

right-of-way by mobile food vendors. The City of Little Rock currently has a process

for franchising the use of public owned right-of-way in the Public Works Department.

The Department’s process requires authorization from the City of Little Rock, which

begins by filing a franchise application with Little Rock Public Works. The application

requests basic information, like the legal street address of the proposed franchise, an

explanation for the request, and an application fee. If approved, a franchise

acknowledgement letter is sent within thirty days to the applicant. In conjunction

with an approved franchise, other permits (i.e. health, business, sales tax, etc.) may

be required. The current franchising program could be extended to mobile food

vendors as a future consideration. More use of the public right-of-way by mobile food

vendors could produce similar benefits currently enjoyed in Seattle and Austin.

UALR Master of Public Administration Program Page 22

3.3 Food Truck Courts

Food truck courts are a popular attraction in many cities as mobile food vending

becomes a novel and celebrated venture across the county. A concentration of mobile

food vendors in one location typically brings energy to an area and spurs interest in

different areas of town. Food truck courts increase attention and foot traffic, thus

can draw attention to areas or communities attempting to raise their visibility. The

regular gathering of food trucks at events like “University Market at 4Corners” in

southwest Little Rock and Main Street’s “Food Truck Fridays” in downtown Little Rock

are proving to be boons to these areas, which draw visitors who may otherwise not

frequent these locations. These events introduce these areas to citizens in an effort

to promote positive images and impressions for the area among these visitors.

Food truck courts are distinguished by the

organizers’ ability to supply fixed seating,

stand-up counters, signs and other

temporary arrangements not permitted in

the ordinance. Currently, to petition for a

food truck court, organizers must endure an

ordeal; they first must submit a waiver or

variance to the city Planning Commission (in

the form of a Planned Zoning Development

request) and, upon review, undergo a public

comment period. The request is ultimately

approved or declined by the City Board of

Directors. This is a rather lengthy and

laborious process laden with many pitfalls

and delays and thus, discourages organizers from applying for permission. The process

suppresses many such efforts that can provide net benefits – financial and

reputational – for the city.

A future consideration to initiate the use of food courts across Little Rock involves the

creation of a streamlined application process that parallels current policy and keeps

pace with the rapidly developing mobile food sector. In a new process, instead of

submitting requests to the Planning Commission that must progress to the City Board

of Directors, city administrators can review and approve or decline food truck court

requests. Redirecting decision making responsibility to city staff simplifies the

procedure, provides a less daunting process, and relieves the Board of Directors of

spending time on such trivial matters. The new process may also encourage the

creation of private-public partnerships as well as strengthen established relationships

Seattle . . . Food Truck Courts Seattle empowers the city director of transportation to designate areas as temporary food vending zones for the duration of four days at the request of vendors or business owners. The director can set hours of operation and order repairs and improvements to the temporary zones in the public right-of-way. This authority vested in the director of transportation provides a great degree of flexibility in managing mobile food vendor locations for

special events and festivals.

UALR Master of Public Administration Program Page 23

between the City of Little Rock and the food truck court organizers, all of whom are

working to make positive investments in the community.

3.4 GPS Tracking of Mobile Food Vendors

Cities such as Boston and Hoboken require mobile food vendors to purchase and install

a GPS device on their vehicles. Among other reasons, vendors equipped with GPS

tracking devices enable parking officials to monitor mobile food vendors and confirm

vendors are operating in specified zones, thus complying with the local ordinance.

The GPS mandate assists cities enforcing very specific rules directed at mobile food

vendors. For example, Sacramento requires mobile food vendors to constantly change

location. The GPS device is what allows Sacramento to confirm vendors are in

compliance. Chicago has a similar requirement in its ordinance; it includes a 200-foot

restriction from any fixed business that serves food. To enforce this rule, the city

mandates food trucks install GPS tracking devices to monitor vendors’ positions. If a

mobile food vendor is found operating less than 200 feet from a fixed business serving

food, the vendor is fined accordingly for the violation.

Requiring mobile food vendors to be equipped with a GPS tracking system benefits

consumers as well. Consumers can locate their

favorite mobile food vendors quickly by

searching the latest GPS data (provided through

various methods, e.g., on the web, on a mobile

phone app, etc.). Some cities, like Boston,

promote websites that account for the locations

of all mobile food vendors based on their GPS

position. These websites help both the

consumer and the vendor; vendors increase

their visibility and consumers can find places to

dine. Another benefit of these tracking systems

is in providing public officials an efficient

means for verifying if a vendor is in a legal

location, as well as by health departments for

coordinating regular inspections; both these options pose cost saving for these

agencies by preventing unwanted or unnecessary trips and more efficient planning

when visits are required.

While requiring mobile food vendors to report their location can increase

transparency and allow public officials to track vendors, these devices are criticized

as well. The most obvious complaints involving these devices are the costs of

GPS Technology . . . A powerful tool in tracking compliance? With the expected growth in the mobile food sector coupled with stricter government rules regulating vendor operations, more GPS tracking requirements for food trucks are likely on the horizon. In Sacramento, the city requires mobile food vendors to have a GPS system to ensure these vendors move their location as required. The GPS system helps the city in determining vendors’

compliance with the ordinance.

UALR Master of Public Administration Program Page 24

installation and maintenance. Another issue involves the food vendors’ privacy.

However, these devices are used in other areas, thus such issues are outweighed by

the opportunity to operate in a city.

Figure 1. Locations of Select Mobile Food Vendors in Little Rock

UALR Master of Public Administration Program Page 25

References

Section 1 – Features of Proposed Ordinance

1.1 Terms and definitions

Environmental Health Protection. Arkansas Department of Health, & Halverson, P. Arkansas Board of Health, (2012). Rules and regulations pertaining to food establishments. Retrieved from http://www.healthy.arkansas.gov/aboutadh/rulesregs/foodservice establishmentsnew.pdf. 1.2 Food safety Jones, A. personal interview, February 27, 2013.

Altekruse, S. F., Yang, S., Timbo, B. B., & Angulo, F. J. (1999). A multi-state survey of consumer food-handling and food-consumption practices. (1999). American Journal of Preventive Medicine, 16(3), 216-221. California Department of Public Health, (2012). California retail food code. Retrieved from: http://www.cdph.ca.gov/services/Documents/fdbRFC.pdf Environmental Health Protection. Arkansas Department of Health, & Halverson, P. Arkansas Board of Health, (2012). Rules and regulations pertaining to food establishments. Retrieved from http://www.healthy.arkansas.gov/aboutadh/rulesregs/foodservice establishmentsnew.pdf. Foodborne Illness 101. (2005). Restaurant Business, 104(15), 51.

M. Geller, personal interview, April 9, 2013.

Lues, J. F. R., Rasephei, M. R., Venter, P., & Theron, M. M. (2006). Assessing food safety and associated food handling practices in street food vending. International Journal of Environmental Health Research, 16(5), 319-328. Tester, J. M., Stevens, S. A., Yen, I. H., & Laraia, B. A. (2010). An analysis of public health policy and legal issues relevant to mobile food vending. American Journal of Public Health, 100(11), 2038-2046.

UALR Master of Public Administration Program Page 26

1.3 Permit and process. Environmental Health Protection. Arkansas Department of Health, & Halverson, P. Arkansas Board of Health, (2012). Rules and regulations pertaining to food establishments. Retrieved from http://www.healthy.arkansas.gov/aboutadh/rulesregs/foodservice establishmentsnew.pdf. 1.4 Zoning The City of Chicago. (2013). Mobile food vendor licenses. Retrieved from http://www.cityofchicago.org/city/en/depts/bacp/supp_info/mobile_food_vendorlicenses.html England, R. E., Pelissero, J. P., & Morgan, D. R. (2012). Managing Urban America (7th edition). Washington, D.C.: CQ Press. The City of Nashville. (2012). Ordinance no. bl2005-860.

Fleischmann, A. (1989). Politics, administration, and local land-use regulation: Analyzing zoning as a policy process. Public Administration Review, 49 (4), pp. 337-344. Hermosillo, J. A. (2012). LONCHERAS: A Look at the Stationary Food Trucks of Los Angeles (Doctoral dissertation, UNIVERSITY OF CALIFORNIA Los Angeles). Retrieved from http://164.67.121.27/files/UP/Loncheras.pdf Mikesell, J. L. (2011). Fiscal Administration: Analysis and application for the public sector (8th edition). Boston, MA: Wadsworth. Pogodzinski, J. M., & Sass, T. R. (1990). The economic theory of zoning: A critical review. Land Economics, Private Markets, Public Decisions: An Assessment of Local Land-Use Controls for the 1990s, 66(3) 294-314. City of Little Rock Department of Planning and Development, Zoning and Subdivision Division. (n.d.). Retrieved April 8, 2013, from http://littlerock.org/citydepartments/planninganddevelopment/divisions/zoning- subdivision/default.aspx

UALR Master of Public Administration Program Page 27

Section 2 – Economics of Mobile Food Operations 2.1 Economics Little Rock Advertising and Promotion Commission. (2013). Top Gross Receipts for Eating Establishments. Little Rock: City of Little Rock. Franco, C. (2012, October 31). Food truck v. restaurant: A sustained conflict. Arkansas Times. Retrieved from http://www.arktimes.com/arkansas/food-truck-v-restaurant/Content?oid=2511455 Food Trucks Drive Traffic to Malls. (2012). SCTWeek, 17(25), 3.

Howell, A. M. (2011). Food trucks as urban revitalization catalysts: Microenterprise, interim land use and the food economy. The University of Texas at Austin. Retrieved from http://repositories.lib.utexas.edu/handle/2152/11902?show=full Riell, H. (n.d.) “Why do Restaurants Fail?” Restaurant Startup and Growth Magazine. Retrieved from http://www.rsgmag.com/public/135.cfm Parsa, H. G., J. T. Self, D. Njite, and T. King. (2005). Why restaurants fail. Cornell Hotel and Restaurant Administration Quarterly, 46, 304-22 U.S. Census Bureau. (2007). NAICS 722330 Full-service restaurants. Retrieved from http://www.census.gov/econ/industry/hist/h722110.htm U.S. Census Bureau. (2007). NAICS 722330 Mobile food services. Retrieved from http://www.census.gov/econ/industry/hist/h722330.htm Section 3- Future Considerations 3.1 Healthy Vending Lues, J. F. R., Rasephei, M. R., Venter, P., & Theron, M. M. (2006). Assessing food safety and associated food handling practices in street food vending. International Journal of Environmental Health Research, 16(5), 319-328. Morales, A., & Kettles, G. (2009). Healthy food outside: Farmers’ markets, taco trucks, and sidewalk fruit vendors. Journal of Contemporary Health Law and Policy, 20(20), 20-48. Tester, J. M., Stevens, S. A., Yen, I. H., & Laraia, B. A. (2010). An analysis of public health policy and legal issues relevant to mobile food vending. American Journal of Public Health, 100(11) 2038-2046.

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3.2 Public Right-of-way and Franchising Zadeh, A. F., & A.B., S. (2010). Dynamic street environment. Local Environment, 15(5), 433-452. City of Little Rock Department of Public Works. (2013). Retrieved April 10, 2013, from http://www.littlerock.org/!userfiles/editor/docs/franchiseagreement.doc

3.3 Food Truck Courts

Food trucks drive traffic to malls. (2012). SCTWeek, 17(25) 3.

Knable, K. (2012, April 30). Mosaic Church to Develop Food Truck Court Further. Arkansas Business. Retrieved from http://www.arkansasbusiness.com/article/32294/mosaic-church-to-develop-food-truck-court-further Main Street Food Truck Fridays. (n.d.) Retrieved April 8, 2013 from http://downtownlr.com/index.php?fuseaction=p0006.view&mod=22&start=11&rec_id30 City of Little Rock Department of Planning and Development, Zoning and Subdivision Division. (n.d.). Retrieved April 8, 2013, from http://littlerock.org/citydepartments/planninganddevelopment/divisions/zoning-subdivision/default.aspx 3.4 GPS Tracking Kregor, B. (Performer) (2012). My street eats: Free Chicago’s mobile vendors [Web] Retrieved from http://ij.org/mystreetsmyeats Live View GPS (2012, April 5). [Web log message]. Retrieved from http://www.liveviewgps.com/blog/gpsenabled-food-trucks/

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City Ordinances Consulted Austin City Code. (2013). Chapter 10-3. Food and Food Handlers. Retrieved from http://www.amlegal.com/nxt/gateway.dll/Texas/austin/title10publichealthservicesandsanitation/chapter10-3foodandfoodhandlers?f=templates$fn=default.htm $3.0$vid=amlegal:austin_tx City of Boston. (2011). An Ordinance Promoting Economic Development and the Food Truck Industry in the City of Boston. Retrieved from http://www.cityofboston.gov/Images_Documents/Ordinance%20Promoting%20Economic%20Development%20and%20the%20Food%20Truck%20Industry%20in%20Boston_tcm3-25610.pdf City of Dallas. (2011). Chapter 17 of the Dallas City Code. Retrieved from http://www.dallascityhall.com/council_briefings/agendas/agendas_1111/FinalAddendum_11072011.pdf City of Houston. (2011). Code of ordinances, chapter 20: Food and Drugs. Article II food establishments generally. Retrieved from http://library.municode.com/index.aspx?clientId=10123

City of Las Vegas. (2013). Business taxes, licenses and regulations. Chapter 6.55, Mobile food vendors. Retrieved from http://library.municode.com/index.aspx?clientId=14787 City of Memphis. (2013). Ordinance to Amend Chapter 16, Article V, of the City of Memphis, Code of Ordinances, so as to Allow Self-Contained Mobile Food Preparation Vehicles to Operate in the City of Memphis. Retrieved from http://www.memphistn.gov/Portals/0/pdf_forms/ordinances/5394_FoodTruckOrdinance.pdf City of Miami (2013). Proposed ordinance establishing mobile food services operation special event (MOFSE) City of Portland. (2012). Pushcart regulations. Retrieved from http://www.portlandmaine.gov/voter/pushreg.pdf City of San Antonio. (2013). Part II code, Chapter 13: Food and food handlers, Article IV. Mobile food courts and mobile food establishments. Retrieved from http://library.municode.com/index.aspx?clientId=11508 City of Seattle. (2013). Vending. Seattle, Washington, Municipal Code. Retrieved from http://library.municode.com/HTML/13857/level3/TIT15STSIUS_SUBTITLE _ISTUSOR_CH15.17VE.html#TIT15STSIUS_SUBTITLE_ISTUSOR_CH15.17VE_15.17.130MOODVEPUPL#TOPTITLE#TOPTITLE.

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Kansas City. (2013). Part II- Code of ordinances. Chapter 50: Offenses and Miscellanies provisions. Retrieved from http://library.municode.com/ index.aspx?clientId=10156