I am not defending the practice, I'm saying that is the expectation and having a commercial license plate is what gives them the legal right to do it.

To me, with what it appears the situation you are describing, your city council is the one not following standard practice.

If a town road can't handle two lanes of traffic and two lanes of parking than the only solution is to only allow parking on one side of the street.

Once that is addressed it would be impossible for a van that is less wide than a single lane of traffic to fully block two lanes of traffic.