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SR-8-B (26) ". ." . ,FJ> It1TKl/MeJJT {5 . ; - . . 8-I; r' .'- - :2 tJ'5---O/Cj 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 , 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 . 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 - 1 - Q, -:--. ~ ~. ~ J _ . .. I'J . '. . . 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 - 2 - -. I J "'" ,.. . . 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 .' 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. - 3 - c . . J< . . 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. - 4 - . .. . . . 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, - 5 - .' . ,,' . . 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. - 6 - .' . . 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 - 7 - . . c:( (.) z >- 0 w 0 <t C a: <C :E == <( :I: Z c:( C a: 0 <t 0 en ~ t- O -I ..J Z ~ a:: <C a:: 0 c;( en m. (.) LINCOLN 7TH 0 6TH 5TH 0 0 4 TH 0 0 0 2ND OCEAN PACIFIC COAST HWY ..... ......... ........... ........ .... ...... ......... ..... ..... ........... ......... ....... ......... ...... ................ ..... Proposed Vending Locations Attachment C April 1989 ( l r \. . . 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.