Agenda of Community, Culture and Events Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Community, Culture and Events Committee Meeting

Page 22

27/2/2020

REPORT TITLE: Review of Hobart Food Truck Program

REPORT PROVIDED BY: Community Activation and Grants Coordinator

Manager Activation Programs and Tourism

Director Community Life

1. Report Purpose and Community Benefit

1.1. This report responds to the following notice of motion from the Council meeting of 18 February 2019.

That the Council undertake a review of the Food Van Program and associated relevant regulations including other temporary food service structure to ensure:

1) The guidelines and food and hygiene regulations are contemporary and preserve a ‘level playing field’, especially when permanent food vans are located near established businesses that pay rates and other fees;

2) The relevant planning schemes are contemporary and that the use categories in the schemes respect the fact that temporary and permanent food vans may be located close to existing businesses. In particular those businesses seeking to trade in permanent positions; and

3) That consultation occurs with relevant peak bodies and stakeholders.

In preparing the report, an analysis be included of trends and requirements in other cities that operate food truck programs.

1.2. Review of the program provides the Council with an opportunity to ensure that it is maximising community benefit while also meeting the needs of local businesses.

2. Report Summary

2.1. This report provides a summary of consultation undertaken as part of a review of the Hobart Food Truck Program. This review included:

· a desktop review and phone discussions with staff coordinating similar programs in all Australian capital cities;

· publicly available online survey;

· consultation with business stakeholders;

· survey with current and previous Hobart Food Truck Program permit holders; and

· a workshop with City officers.

2.2. The review identified that Hobart’s program, which was the first in Tasmania and one of the earliest local government mobile food programs in the country, continues to be consistent with other Australian cities in relation to permit conditions, fee structure and administration.

2.3. The review clarified that there are two ways that food trucks can operate within the City of Hobart.

2.3.1. Food trucks can operate on public land (roads and parks), which is managed through the Hobart Food Truck Program permit system.

2.3.2. Food trucks can also operate on private land through the planning application process, which requires a development application.

2.3.2.1. The current planning scheme was adopted in 2015 and does not make a distinction between a permanent nor a temporary food vehicle located on private land.

2.3.2.2. The planning scheme also does not require consideration of the impact of one business on another business, whether that business is a temporary food van, or a new ‘bricks and mortar’ restaurant. In this way a food truck is treated the same as a bricks and mortar business.

2.4. The review highlighted the need to clearly differentiate food trucks participating within the Hobart Food Truck Program in public spaces from those food trucks trading on private land. This would assist public awareness.

2.5. The review found an anomaly in the guidelines whereby Battery Point, a designated No Go Zone, sits outside the regulations that govern the Hobart Food Truck Program and for this reason it is proposed for the guidelines to be amended to remove this No Go Zone.

2.6. Further, the guidelines make reference to North Hobart and a Sandy Bay No Go Zones. Food Trucks are also unable to trade in these zones as the 50 metre minimum trading distance precludes this, and the guidelines will need to be updated to reflect this.

2.7. The review found that the Hobart Food Truck Program continues to meet public expectations, is aligned with the community vision and is delivering objectives originally set for the program.

2.8. Minor changes to the City of Hobart Food Truck Program Guidelines and Permit Conditions will also be made to reinforce the obligations of permit holders.

2.9. A workshop involving Tasmania Police, The Salvation Army, the Waterfront Business Community and Tasmanian Hospitality Association revealed continued support for the current trading times and days and a high level of support for food trucks in Salamanca Place as they help to mitigate late night alcohol related incidents by providing the public with food and a safe spot to wait for a taxi.

3. Recommendation

That:

1. The Council endorse the continuation of the Hobart Food Truck Program.

2. Promotion of the program be increased to ensure mobile food vendors participating in the Hobart Food Truck Program are clearly identifiable so as to differentiate them from vendors trading on private land.

3. Based on the findings of the review a number of operational changes be made, as outlined in the report, to the City of Hobart Food Truck Program Guidelines and Permit Conditions.

4. Background

4.1. The Hobart Food Truck Program (the Program) was established after extensive community and sector consultation and a twelve month trial during 2015-2016.

4.2. The program aligns with similar national and international approaches to the implementation of food truck programs. Benefits of programs within Australia and overseas include community activation and vibrancy, economic development and public safety.

4.3. It provides a framework within which mobile food vendors can trade in public spaces as a way of increasing public space activation and community safety while ensuring that the City’s legislative requirements are met and minimising impact on local fixed businesses.

4.3.1. Food trucks help to create a more diverse and vibrant Hobart by encouraging foot traffic and drawing people into under-utilised spaces, or by trading late at night.

4.3.2. Food trucks are a mix of established businesses and start-up businesses that aim to service the community in a variety of flexible ways.

4.4. Through the Hobart Food Truck Program, the City issues permits to mobile food vendors that allow them to trade in public spaces for a fee. The permit conditions are listed under the following headings:

· Community access

· General

· Health and safety

· Noise

· Trading times, locations and duration

· Waste

4.5. This is the second major review of the program since its inception in 2016. The first review was undertaken at the end of the 12 month trial in late 2016.

4.6. As a result of ongoing feedback from community and business representatives and in consultation with City of Hobart officers the guidelines and permit conditions have also been amended since the program began in 2016.

4.6.1. The General Manager has been delegated to make administrative changes to the program guidelines and permit conditions.

4.7. A copy of the current Hobart Food Truck Program Guidelines and Permit Conditions is attached to this report. (Attachment A)

4.8. This most current review involved consultation undertaken between November 2019 and February 2020 with community members, business representatives, mobile food vendors currently participating in the program as well as those that have exited, City of Hobart officers and a desktop review of food trucks programs in seven Australian cities.

4.9. Consultation tools included an online survey via the City’s engagement platform ‘Your Say’, meetings with business and waterfront stakeholder representatives, a survey of mobile food vendors and a workshop with City of Hobart officers.

4.10. The research undertaken for this report indicates that City of Hobart permit conditions are consistent with the permit conditions for mobile food programs of those Australian cities researched and that they also align with the expectations of the local community and business representatives.

Consultation with the public via online survey

4.11. The publicly accessible online survey was available through the Your Say platform and promoted through community and business groups within Hobart as well as on the City’s Facebook and website.

4.12. The survey received a total of 112 visitors with 51 surveys completed during the seven week period from December 2019 to February 2020.

4.13. The majority of respondents were aged between 30 and 60 year of age (82.3%) with non-business owners (74.5%) and business owners (25.5%) responding.

4.13.1. Three (3) survey respondents identified as owners of food trucks.

4.14. The survey results indicate strong support for the program as a whole (90.2%) as well as strong awareness that participating vendors are required to comply with City of Hobart health and safety conditions (92.2%).

4.15. The majority of respondents agreed that the 50 metre trading limit from open businesses (72.5%) and the 50 metre trading limit from private residences (66.7%) was appropriate.

4.16. The University of Tasmania was identified by survey respondents as a potential No Go Zone.

4.16.1. The current minimum trading distance (50 metres) limits trade to two sites near UTAS. The first at the intersection of French Street and College Road and the second on Sandy Bay Road, near the intersection of Marieville Esplanade.

4.16.2. The creation of a No Go Zone for these areas is not recommended as the current permit guidelines already significantly limit the amount of trade that is permitted in this area.

4.17. In relation to the potential positive impacts of the food truck program 75% respondents felt that a positive outcome of the program was that it contributed to an active community and vibrancy on Hobart’s streets.

4.18. Food Trucks are seen to create an active and interesting pedestrian environment and they increase the urban vitality of Hobart. Having food trucks as an alternative dining option for food was important and the majority of people surveyed did not believe that food trucks take up valuable parking space.

4.19. In relation to the potential negative impacts of the food truck program 62% respondents felt that the program did not have any negative impacts while 21% respondents felt that competition with existing fixed food and beverage businesses may have a negative impact.

4.20. Thirty-seven point three per cent (37.3%) of respondents considered that there was the right number of food trucks in Hobart while 56.9% of respondents considered that there should be more food trucks in Hobart.

4.21. As can be seen by the survey results there is a high degree of awareness of the Program and the Program’s objectives and permit guidelines are consistent with the view of the majority of those surveyed and align with community sentiment.

Consultation with business representatives and stakeholders

4.22. A workshop with local business representatives and stakeholders was undertaken on Thursday 23 January 2020. Invitees included representatives from the following organisations.

· Tasmania Police

· The Salvation Army

· The Waterfront Business Community (WBC)

· Tasmanian Hospitality Association (THA)

· S & L Security.

4.23. While this particular workshop considered all aspects of the program it had a particular focus on the Friday and Saturday late night mobile food vendor trade on Salamanca Lawns.

4.23.1. This is the only mobile food vendor site managed by the City with a roster that aligns with the Street Teams program, which is facilitated by the City in partnership with The Salvation Army and Tasmania Police.

4.24. Feedback from WBC and THA representatives was that the current trading times and days are working well and that there should be no change to this.

4.25. Tasmania Police, The Salvation Army and S & L Security representatives were very supportive of the food vans being on site as they help to mitigate late night alcohol related incidents by providing the public with food and a safe spot to wait for a taxi.

4.25.1. Alterations to the intersection of Morrison and Castray Esplanade as part of the Salamanca Place Precinct Upgrade project will not have a negative impact on the delivery of the food truck program at this location.

Consultation with Hobart Food Truck Program participants

4.26. An online survey was sent to 37 mobile food vendors who are currently participating in or have previously participated in the Hobart Food Truck Program. There were a total of 13 responses to this survey.

4.27. The key issues identified by food truck operators currently participating in the program as well as for operators that have exited the program were in relation to limited trading times, limited suitable trading locations and the restrictions on trading areas.

4.27.1. Trading times are limited to sign posted parking restrictions and it is not proposed that this be changed.

4.27.2. Suitable trading locations are limited by the 50 metre exclusion distance within the program guidelines and it is not proposed that this be changed.

4.28. Specific locations that are impacted by the issues noted in the paragraphs above were near UTAS and the Hobart waterfront.

4.28.1. These two areas are the sites that offer the highest customer potential for food trucks but are limited by planning scheme (Hobart waterfront) and available trading sites due to proximity to residents (UTAS).

4.29. Sixty per cent (60%) of survey respondents agreed that the 50 metre minimum trading distance from existing food and beverage businesses was reasonable.

4.29.1. An issue for current mobile food vendors that responded to this question was that this 50 metre distance limits the ability to trade near UTAS.

4.30. Fifty per cent (50%) of survey respondents agreed that the 50 metre minimum trading distance from private residences was reasonable.

4.31. The survey sought to understand how mobile food vendors in the program promoted their business. For those mobile food vendors that responded to the survey social media, word of mouth and promotion through community groups were the top three ways that they promoted their business.

4.32. Mobile food vendors suggested that social media, the City of Hobart website and a dedicated app were ways that the City could promote the food truck program.

4.33. The survey also invited feedback on the program’s application process and permit fee.

4.33.1. The majority of mobile food vendors were satisfied that the application process worked well and that they were happy with the support that they received from City of Hobart staff.

4.33.2. While most mobile food vendors were not in agreement that the permit fee was appropriate, as has been noted previously in this report, the permit fee that the City of Hobart charges has been based on a market valuation, comparison of outdoor dining fees for fixed businesses within Hobart and is within the range of food truck fees charged by other Australian cities.

4.34. In summary, the information from those vendors that participated in the survey highlights an opportunity to ensure that the current permit conditions align with updated By-laws to maximise trade in as many appropriate locations as possible.

4.34.1. This point was also identified by City of Hobart officers in the staff workshop undertaken as part of this review.

4.35. The survey results also identify ways that the City can promote the food truck program more.

Consultation with City of Hobart officers

4.36. A workshop was held on 19 December 2019 that involved 16 City of Hobart officers from all six divisions.

4.37. The following key issues were discussed at this workshop.

4.37.1. Deliveries from Food Truck. The issue of food trucks delivering food to customers in other locations while they were not open to serve the public where they were parked, was discussed. Essentially, trucks doing this are operating as an offsite commercial kitchen.

It was recommended to not allow deliveries from food trucks unless the food truck is also open and trading to the public at the same time.

4.37.2. No Go Zones. The location of the No Go Zones was discussed in relation to the current permit conditions. The current conditions prohibit mobile food vendor trade within 50 metres of an existing food or beverage business as well as trading within 50 metres on the same side of the street of a private residence.

With the above in mind the removal of the No Go Zones for Battery Point, North Hobart and Sandy Bay was proposed.

4.37.3. By-law changes. Due to recent changes to relevant By-laws the need to clarify permit conditions for trading within the city centre was identified. This process is being undertaken in consultation with officers from the City’s Legal and Governance Unit.

Planning scheme considerations in relation to food vans being established near fixed businesses

4.38. The Hobart City Council Public Spaces By-law no 4 of 2018 and section 56C of the Vehicle and Traffic Act (Tasmania) provide the legislative framework through which Hobart Food Truck Program permits are issued to participating vendors.

4.39. Permit conditions issued under this legislation only apply to vendors trading in public spaces (on street or in parks) within Hobart. The program and the subsequent permit does not apply to food vendors wishing to trade on private land on an ongoing basis or for vendors trading during an event or for private catering.

4.40. In response to the specific issue relating to the planning scheme included in the notice of motion, officers involved in the internal stakeholder workshop clarified that the current planning scheme is contemporary (2015).

4.41. The current planning scheme does not make a distinction between a permanent nor a temporary food vehicle located on private land.

4.42. The planning scheme does not require consideration of the impact of one business on another business, whether that business is a temporary food van, or a new ‘bricks and mortar’ restaurant.

4.43. The following information provides an overview of the current process for mobile food vendors applying to trade on private land, which is consistent with the process for the approvals for a change of use for a businesses in a fixed premises.

4.43.1. Vendors wishing to trade on private land on an ongoing basis, such as the car park of an existing business, are permitted to do so if a Development Application (DA) for a change of use has been approved by City officers or Council.

4.43.2. The DA process may require an application to be advertised and for neighbouring properties to be notified, where the proposed use or development is designated as discretionary by the planning scheme, providing an opportunity for representations from local community members, businesses and other stakeholders.

4.43.3. DAs that receive more than two representations and are recommended by officers for approval must be determined by the City Planning Committee. DAs that receive more than three representations and/or are recommended for refusal are required to be determined by the full Council.

4.43.4. If a DA for a change of use has been approved the applicant may trade on that site as long as they remain in compliance with the conditions on the planning permit.

4.43.5. If, for example, a mobile food vendor has a planning permit to operate on a vacant car park, and then that car park is subsequently approved and developed into an apartment building, the mobile food vendor would not be able to comply with the conditions on the planning permit because the site is substantially not the same as it was when the mobile food vendor’s planning permit was approved. i.e. the site was a car park and now it is an apartment building.

Comparison with similar programs in other Australian cities

4.44. A review of mobile food vendor programs within seven Australian cities was undertaken in preparation of this report. These cities were:

· Adelaide

· Brisbane

· Launceston

· Melbourne

· Perth

· Sydney

· Yarra City

4.45. As is the case with Hobart’s program all cities researched require their participating vendors to adhere to local, state and federal legislation relating to community access and amenity, environmental, health, safety and transportation.

4.46. A summary of the attached comparison is provided below.

4.46.1. Permit fees. Fees range from $157 per month in Brisbane (excluding design and application fees) to $1,000 per month in Melbourne (premium site) with Hobart’s fees ($781 per 3 month/$2,606 per 12 month) sitting within the higher end of this range.

4.46.1.1. Hobart’s permit fees are based on a valuation undertaken in 2016 by an external provider that considered land value and outdoor dining fees charged by the City. It is proposed that a valuation be undertaken in the 2021-22 financial year on the five year anniversary of the program.

4.46.1.2. Fees are adjusted annually by CPI.

4.46.2. Trading locations. Melbourne, Brisbane and Perth allocate specific trading spots, including premium and rotational sites that are put out to tender, while all other researched cities permit vendors to trade across the local government area, in accordance with permit conditions.

4.46.3. Minimum trading distance. Within the cities researched the minimum distance that a mobile food vendor can trade from an open fixed food or beverage business ranges from 25 metres to 200 metres. Hobart’s minimum distance is 50 metres.

4.46.3.1. Some of the cities researched specify that the mobile food business has to be selling the same or similar type of food to the fixed business for the minimum distance to apply.

4.46.4. Parking restrictions and fees. All cities require participating vendors to abide by parking restrictions and pay relevant parking fees. Brisbane, Perth and Melbourne programs however have dedicated food vendor trading areas that exclude public parking during specific times.

4.46.5. Number of participating vendors. Perth (12) and Melbourne (18) limit the number of vendors participating in their respective programs. These cities have dedicated trading locations that vendors apply to trade at permanently or on a rotational basis. No other researched city limits the number of permits.

4.46.6. Curated program. Of the seven cities researched Brisbane, Melbourne and Perth curate their food truck programs. The remaining cities, including Hobart, do not curate or manage the type of food available within their respective programs.

4.46.7. Promotion. Sydney, Adelaide and Brisbane have dedicated apps that promote participating vendors trading times and locations. Melbourne, Launceston, Perth and Yarra City do not provide this service. Hobart requires participating vendors to sign up to Where the Truck? app.

4.46.7.1. The Where the Truck? app is designed to provide users with the trading times and location of participating vendors in all Australian capital cities.

4.46.7.2. The app is currently offline and vendors participating in the Hobart program are using Facebook to promote their locations.

4.47. As can be seen by this research, Hobart’s program, which was the first in Tasmania and one of the earliest local government mobile food programs in the country, is consistent with other Australian cities in relation to permit conditions, fee structure and administration.

Other Consultation

4.48. Consultation in relation to specific issues connected with mobile food vendors trading in French Street, Sandy Bay, Main Road, New Town and Marieville Esplanade, Battery Point, has also taken place within the last three months.

French Street, Sandy Bay

4.48.1. The intersection of French Street and College Road is one of only two locations where mobile food vendors are permitted to trade in close proximity to the University of Tasmania (UTAS) Sandy Bay campus.

4.48.2. Representatives from the company that provides refreshment services for UTAS have approached City of Hobart officers with concerns regarding the proximity of the vendors to the University Union, the duration of their trade and consumption of mobile vendor food on UTAS property.

4.48.3. City officers have confirmed with staff from the University Union and the participating food trucks that the current trading location is more than 50 metres from the entrance to the University Union. There is room for a maximum of two small vehicles to trade in this spot.

4.48.4. In response to the University Union’s concerns officers have also reinforced with participating mobile food vendors that they are required to adhere to the time limits outlined in the permit conditions.

4.48.5. Consumption of mobile food vendor food on UTAS property is beyond the scope of City of Hobart staff to address, however the issue has been discussed with participating vendors and UTAS representatives, both of whom have initiated actions to address this.

4.48.6. As a result of the review of the issues in this location there are no changes recommended to the current permit conditions.

Marieville Esplanade, Battery Point

4.48.7. City officers have been contacted by members of the public in relation to program vendors’ duration of trade and deliveries from this site.

4.48.7.1. This has involved mobile food vendors essentially operating an ‘Uber Eats’ by preparing food in their food truck, which is then delivered by another vehicle to the customer at another location.

4.48.8. Trade in this location is permitted under the current permit conditions and participating vendors have been reminded of their obligations in relation to the duration of trade.

4.48.9. As a result of the review of this issue and as previously indicated in this report, it is proposed that the permit conditions are updated to limit the provision of deliveries from program vendors.

Main Road, New Town

4.48.10 Mobile food vendors trading in the car park of two businesses on Main Road have been informed that they are required to submit a development application for a change of use as they are trading on private property.

4.4.8.11 As previously indicated this trade falls outside of the parameters of the Hobart Food Truck Program.

5. Proposal and Implementation

5.1. Minor changes to the City of Hobart Food Truck Program Guidelines and Permit Conditions will be made to reinforce the obligations of permit holders, specifically in relation to the delivery of food from the trading vehicle.

5.2. It is proposed that the ‘No Go Zones’ for Battery Point, North Hobart and Sandy Bay be removed from the guidelines as the existing permit conditions adequately ensure that participating mobile food vendors do not trade within these areas.

5.3. Marketing and promotion of the program will be increased to identify participating vendors, both online and on the vehicles themselves.

6. Strategic Planning and Policy Considerations

6.1. The Hobart Food Truck Program aligns with the following strategies within Pillar 4 City economies of the Capital City Strategic Plan 2019-29.

Outcome 4.4.1 ‘Create opportunities for businesses to engage with the City.’

Outcome 4.4.2 ‘Support and engage with new and emerging entrepreneurs.’

Outcome 4.4.3 ‘Create and support opportunities for businesses to test new ideas.’

6.2. The Hobart Food Truck Program has provided an opportunity for a number of start-up businesses to establish themselves within Hobart. This has created employment for young people and people from diverse cultural backgrounds that otherwise would not have been available.

6.3. The success of a number of these start-up businesses in the Hobart Food Truck Program has resulted in these participants going on to establish successful food and beverage premises within the city.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. There is no funding impact on current year operating results arising from this report.

7.2. Impact on Future Years’ Financial Result

7.2.1. There is no funding impact on future year’s operating results arising from this report.

7.3. Asset Related Implications

7.3.1. There are no asset related implications arising from this report.

8. Legal, Risk and Legislative Considerations

8.1. The permit issued to vendors participating in the Hobart Food Truck Program is issued under clause 83 of the Hobart City Council Public Spaces By-law no 4 of 2018 and section 56C of the Vehicle and Traffic Act (Tasmania).

8.2. All participating vendors are required to have Public Liability Insurance of $20 million as well as compliance with all Tasmanian environmental health requirements. This includes items such as food preparation, gas, and water requirements.

9. Environmental Considerations

9.1. The permit issued to vendors in the Hobart Food Truck Program requires the permit holder to adhere to relevant environmental requirements that relate to noise as well as waste and water disposal.

9.2. The permit conditions also make specific reference to adherence to the City’s waste disposal requirements that all single use take away containers are compostable.

10. Social and Customer Considerations

10.1. The review of the Hobart Food Truck program confirms that the program aligns with the expectations of the key stakeholders, the broader community and local businesses.

10.2. The review of the Hobart Food Truck Program has also identified opportunities for minor changes that will improve the program.

11. Marketing and Media

11.1. Vendors participating in the program have been required to list their mobile food vehicle on Where the Truck? app. This app is currently offline.

11.2. The development and implementation of a Hobart Food Truck app has been muted throughout the implementation of the program. This is beyond the scope of this report to consider and currently beyond the financial scope of the program to implement. It could however be considered for inclusion as part of a larger ‘whole-of-Council’ customer service app.

11.3. Listing the names and contact details including website and/or Facebook pages for participating vendors on the City of Hobart website is recommended.

11.4. The provision of signage or a banner that identifies vendors as participating in the program, as distinct from those vendors that are trading on private land through a development application, is also recommended.

12. Community and Stakeholder Engagement

12.1. The review of the program in preparation of this report included considerable consultation with community and business representatives through public surveys, face-to-face forums, staff workshops, etc.

13. Delegation

13.1. This report is delegated to the Council.

13.2. Administrative changes to the program Guidelines and Permit Conditions have been delegated by Council to the General Manager.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Mark Joseph

Community Activation and Grants Coordinator

Iris Goetzki

Manager Activation Programs and Tourism

Tim Short

Director Community Life

Date: 20 February 2020

File Reference: F20/10704; 17/170

Attachment a: Hobart Food Truck Program Guidelines and Permit Conditions ⇩

People	We value people – our community, our customers and colleagues.
Teamwork	We collaborate both within the organisation and with external stakeholders drawing on skills and expertise for the benefit of our community.
Focus and Direction	We have clear goals and plans to achieve sustainable social, environmental and economic outcomes for the Hobart community.
Creativity and Innovation	We embrace new approaches and continuously improve to achieve better outcomes for our community.
Accountability	We work to high ethical and professional standards and are accountable for delivering outcomes for our community.