SR-8-B (26)
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CA:RMM:edvend2/hpca MAY 1 0 1988
City council Heeting 5-~O-8S Santa Monica, California
STAFF REPORT
TO:
Mayor and City council
City Attorney
Ordinance Adding Chapter 2C to Article VI of
the Santa Monica Municipal Code, Adding Section
3611C to the Santa Monica Municipal Code,
Amending Section 3376 of the Santa Monica
Municipal Code, and Repealing Sections 3336, 3381,
4300, 5121, 6233A, 6233B, 6233C, and 6233D
of ~~e Santa Monica Municipal Code Relating
to Vending
FROM:
SUBJECT:
At its meeting on January 12, 1988, the City Council
directed the city Attorney to prepare an ordinance regulating
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vending throughout the city, including the Pier, Palisades Park,
and the Third street Mall. In response to ~his direction, the
accompanying ordinance has been prepared and is presented to the
C1ty Council for its consideration.
On January 12, 1968, the City Council adopted an emergency
ordinance adding Section 3381 to the Santa Monica Municipal Code
to generally prohibit vendLng activity in the City. The
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ordinance was adopted so that the City could develop and adopt a
coherent set of regulations relating to vending. The prohibition
expires on July ~, 1988.
ANALYSIS
In her analysis of street vending in Los Angeles and
~::=o'.:g~ot<t the U.:.ited States, Professor Reiko Habe, Assistant
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Professor at the School of Urban and Regional Planning at the
university o'f Southern Cali'fornia, observes that there are a
range of vending policies throughout the United states. At least
two dozen American cities have legalized street vending.
Attachment 1 contains various reports prepared by Professor Habe
on vending regulations.
Professor Habe points out the need for an equitable vending
policy and the need for an opportunity for Third World immigrants
to make a living. The "internationalization of the labor forceU
has increased the strain on those new immigrants to survive. In
addition to enacting an equitable, coherent ordinance, Professor
Habe recognizes the need for cities to educate their vendors on
their rights and responsibilities and to provide career
assistance. This assistance could be provided by a coalition of
existing public interest groups, refugee and im1ll:~\grant service
organizations, and religious groups with public assistance.
Of particular note are Professor Habe' s recommendations
toward a positive approach to vending control in Los Angeles.
The need for legal vending activity is an economic reality which
vill not go away.
For several years, the City has been struggling to develop
a cohesive vending pjlicy with clear direction. Although there
has been much discussion, no clear policy decisions have been
made. The result has been fractured vending activity, some legal
and some illegal. The existing vending ordinance has a myriad of
chaotic regulations which do not establish a policy direction and
are difficult to decipher. Given the proper regulation, vending
activi ty can tlake a positive contribution to the economic and
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social vitality of the city. It can also provide needed economic
opportunity tor the less fortunate in our community.
There is one place 1n the city where a successful vending
program already has been in effect -- the Santa Monica Pier. The
Pier Vendinq Program has provided the public wi th a needed
service
and. has
added to the
;lfI1l1bience
of the Pier.
Unfortunately, the li.ud ted size and large cost of entering the
program has restricted accessibility.
The pier Restoration Corporation ("PRC") has attempted to
attract pushcart vendors who ~ould enhance the diversity on the
Pier. It has designated the maximum allowable cart dimensions as
well as locations in which the vendors may be stationed. The PRe
enters into a month-to-month license agreement with each
individual vendor which is voidable at the behest of the
Corporation.
PRe includes:
The vendor selection criteria established by the
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experience, financial capability, compatibility
with proposed businesses, and feasibility of the project.
The legal authority for the Pier vending program derives
from the city.s proprietary role as owner of the Pier. In this
capacity, the City has the authority to enter into agreements for
use of Pier property. In 1986, the City added Section 9ll8C to
the ci ty. s Zoning Ordinance to perlD.i t open-air vending on the
Pier.
The Bayside District corporation e"BDC") has studied
potential vending scenarios for the Third street Promenade
extensively. A successful vending program is seen as essential
to the economic viability of the Hall during impendinq
ccnstruction.
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Unlike the approach taken by the PRC, which provides equal
access to a1l vendors in the city subject to a review process,
the BCC has taken an approach which would result in a contractual
arrangement with one private operator to provide vending services
for the entire Third street Promenade.
The BDC is very concerned about cart uniformity and
flexibility in location. They want an attractive unifonn cart
design and an ability to relocate carts durinq the day based on
needs of both the public and retailers. They also want vendors
who act as hosts providing information to visitors.
The BDC cannot afford the start-up costs of approximately
$12,000 per cart for the type of carts they desire. Along with
the desire of BDC for strong managemer.t control and flexibility
of location, the high start-up costs led it to conclude that an
exclusive agreement with a private operator would be best. Under
the BDC's plan, the start-up costs ar.d financial risk will be
borne entirely by private operator.
Under the BDe vending scenario, all vendors will be
employees of the private operator. The carts will begin vending
food and later include merchandise. Competition with local
restaurants and retailers will be limited by controlling both
vendor location and the types of qor.ds sold. The BDC would
receive 10% of all prOfits from vending activity.
The accompanying ordinance provi~~s a comprehensive scheme
for vendors in the city. It provides ample opportunity for
lawful vending and provides standards to ensure the proper
conduct of these businesses. It also addresses the needs of the
BOC.
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SECTION-BY-SECTION ANALYSIS
The ~ollowing is a Section-by-Section analysis of the
accompanying ordinance.
Section 6281. This - section. sets ~orth the findings and
purposes of the new Chapter 2C of the Santa Monica Municipal Code
regulating vending activity.
section 6282. This section sets forth definitions of words
and phrases used throughout the new Chapter.
section 6283. This Section provides that the provisions of
the Chapter do not apply to approved participants in the Farmer's
Market or any Cultural Arts and Crafts Show. In addition, L~e
Chapter does not apply to individuals operating pursuant to
license agreement on the pier or the Third Street Mall.
Section 628" . This Section provides that no person may
vend in the City without first having obtained and,.having in his
or her possession a vendor permit issued in accordance with the
Chapter. This Section sets forth the content of the application
for the vendor's permit. In addition, this Section sets forth
application and renewal fees, which have been set at the same
level as.-taxicab driver permits.
section 6285. This Section provides that a vendor's permit
shall-be issued by the city within 30 days of the filing of an
application. It requires that the permit be issued unless
certain specified findings are made. This section provides that
upon approval Of the vendor permit, a business license will be
issued upon payment of a $25.00 license fee.
Section 6286. This Section provides that any individual
aggrieved by any determinations denying, conditionally approving,
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or revokinq a vendor permit may file an appeal with the Hearing
Examiner.
section 6287. This section provides that performers who
perform without charge shall not be required to obtain a vendor
permit and performers who perform for a charge shall be required
to obtain a vendor permit.
Section 6288.
This Section provides that vendors shall
vend only in the following areas: Wilshire Boulevard sidewalks,
Santa Monica Boulevard sidewalks, Ocean Avenue sidewalks between
pico Boulevard and California Avenue, Second street sidewalks
between Colorado and wilshire Boulevards, Fourth street sidewalks
between Colorado and Wilshire Boulevards, and on Arizona
sidewalks between Second street and Fourth street during the
hours of any approved Farmer's Market.
In connection with
vending from vehicles, such as catering or ice .cream trucks,
vending may occur on any street approved by the Chief cf Police
and designated in the vendor permit.
Section
establishes
This
Section
general
6289.
requirem~nts governing vending activity. It sets forth location
restrictions, prohibits vending on public beaches, re~~ires that
vendors issue receipts to customers upon request, sets forth
cleanup responsibilities, establishes noise limits, ~ld sets
forth standards for pushcarts.
In addition to adding Chapter 2C to Article VI of the Santa
Monica Municipal Code, the accompanying ordinance adds Section
361lC to the Santa Monica Municipal Code to address the concerns
of the BDC.
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A vending program as contemplated by the BOC cannot be
implE!1llented in the context of the vending provisions proposed
herein. The proposed ordinance is a regulatory measure, and it
would not be appropriate to issue permits only to one vendor
within the context of such a measure. Accordingly, the vending
ordinance does not specify the Third street Promenade as an
approv~d ~en~ing location.
However, the City has the authority, in conjunction with
administering its pedestrian mall, to approve fixed location
vending pursuant to aqreement.
Accordingly, Section 3611C is
added to the provisions of the Municipal Code relating to the
pedestrian mall to permit open-air vending in areas approved by
the city.
Finally, the accompanyinq ordinance amends Section 3376 of
the Santa Monica Municipal Code and repeals various Sections of
the Santa Monica Municipal Code.
The text of the Sections
repealed are set forth in Attachment 2. These changes are made
to eliminate obsolete provisions of the Code.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Robert M. Myers, City Attorney
Edward P. Manning, Deputy city Attorney
Duane Livingston, Law Clerk
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Proposed Vending Locations
Attachment C
April 1989
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A~r1E~T
MINUTES OF THE
RECREATION AND PARKS CO}~1ISSION
1685
City Hall Council Chambers
Main Street, Santa Monica, California
ThursdaYI August 18, 1988
7:30 P. M.
7A. Review and Future Recommendations for Policies Regarding
Vend1ng in city Parks and Beaches Barbara Franklin-Moran
reported that through city council there has been a request from
staff to evaluate the Clty'S current vending practices and to
make recommendations for changes. The Commission reviewed a
staff report outlining present practices for vending in the city.
Discusslon followed and the Commisslon made recommendations to
staff.
commissioner steers moved to inform the city council that the
Commission recommends a moratorium on all vending in the city
parks. Colenan seconded the motion. A role call vote vlas
taken: CO~~lssioner Coleman - yes
Commissioner Jones - yes
Commissioner Menchaca - no
Co~~issioner Sosin - yes
co~~issioner Steers - no
Chairperson Ice - no
The motion died for lack of a maJor~ty.