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SR-8-B (27) . ~ . . . . 20<3---0/9 8-j; MAY 1 0 1988 CA:RMM:edvend2/hpca City council Meeting 5-10-88 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 62330 of the 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 reg'.llating vending throughout the City, including the pier, Palisades Park, and the Third Street Mall. In response to this direction, the accompanying ordinance has been prepared and is presented to the city council for its consideration. On January 12, 1988, the City Council adopted an emergency ordinance adding section 3381 to the Santa Monica Municipal Code to generally prohibit vending 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 1, 1988. ANALYSIS :n her analysis of s~reet vending in Los Angeles and throughout the United states, Professor Reiko Habe, .l\ssistant - 1 - ~::-;a ...-., t I . . . Professor at the School of Urban and Regional Planning at the University of Southern California, observes that there are a range of vending policies throughout the Un~ted 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 force" 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 immigrant service organizations, and religious groups with publi~ assistance. Of particular note are Professor Habe I s recommendations . toward a posi ti ve approach to vending centrol in Los Angeles. The need for legal vending activity is an economic reality which will not go away. For several years, the City has been struggling to develop a cohesive vending policy with clear directi~n. 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 activity can make a positive contribution to the economic and - 2 - . . . . social vitality of the City. It can also provide needed economic opportunity for the less fortunate in our community. There is one place in the City where a successful vending program already has been in effect -- the Santa Monica Pier. The pier Vending Program has provided the public with a needed service and has added to the ambience of the Pier. Unfortunately, the limited size and large cost of entering the program has restricted accessibility. The Pier Restoration corporation (lrpRC'1) has attempted to attract pushcart vendors who would 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. The vendor selection criteria established by the PRe includes: experience, financial capability, compatibility with proposed businesses, and feasibility of the project. The legal authority for the Pier vending program derives from the City1s 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 91I8C to the City's Zoning Ordinance to permi t open-air vending on the Pier. The Bayside District corporation ("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 Mall during impending construction. - 3 - . . . Unlike the approach taken by the PRe, which provides equal access to all vendors in the city subject to a review process, the BDC 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 uniform cart design and an ability to relocate carts during the day based on needs of both the public and retailers. They also want vendors who act as hosts providing information to visitors. The BDe cannot afford the start-up costs of approximately $12,000 per cart for the type of carts they desire. Along with the desire of Bce for strong management 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 and financial risk will l:? borne entirely by private operator. Under the BDC 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 goods sold. The BDe wouli receive 10% of all profits from vending activity. The accompanying o=dinance provides a comprehensive schema for vendors in the Ci ty . It provides ample opportuni ty for lawful vending and provides standards to ensure the proper conduct of these businesses. It also addresses the needs of the BDC. - 4 - . . . SECTION-BY-SECTION ANALYSIS The following is a Section-by-section analysis of the accompanying ordinance. section 6281. This section sets forth 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, the Chapter does not apply to individuals operating pursuant to license agreement on the pier or the Third street Mall. Section 6284. 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 revoking 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 wi th vending from. vehicles, such as catering or ice cream trucks, vending may occur on any street approved by the Chief of Police and designated in the vendor permit. section 6289. This section establishes general requirements governing vending activity. It sets forth location restrictions, prohibits vending on public beaches, requires that vendors issue receipts to customers upon request, sets forth cleanup responsibilities, establishes noise limits, and sets forth s~andards for pushcarts. In addition to adding Chapter 2C to Article VI of the Santa Monica Municipal Code, the accompanying ordinance adds Section 3611C to the Santa Monica Municipal Code to address the concerns of the BDC. - 6 - . . . A vending program as contemplated by the BDC cannot be implemented 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 approved vending location. However, the City has the authority, in conjunction with administering its pedestrian m.all, to approve :fixed location vending pursuant to agreement. Accordingly, Section 361lC 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 accompanying ordinance amends section 3376 of the Santa Monica Municipal Code and repeals various Sections of the Santa Monica Municipal code. The text 0 f 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 ~~e 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 - . . . CA:RMM:dld002jhpca City council Meeting 5-10-88 Santa Monica, California ORDINANCE NUMBER (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA 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, 6232, 6233A, 6233B, 6233C, and 62330 OF THE SANTA MONICA MUNICIPAL CODE RELATING TO VENDING THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 2C is added to Article VI of the Santa Monica Municipal Code to read as follows: CHAPTER 2C. VENDING. SECTION 6281. Findinqs and Purpose. The City Council of the Ci ty of Santa Monica finds and declares as follows: (a) To protect the public health and safety and ensure safe pedestrian and motorist traffic, the City needs equitable, uniform vending regulations. (b) Unregulated vending, from pushcarts, motor vehicles, stands, or by persons, contributes to traffic congestion - 1 - . and thereby impedes motorist traffic. (c) The unregulated use of congested streets and sidewalks by vendors may make the streets and walkways unsafe for motorists, pedestrians, and vendors. (d) Controlled and constructive vending activity will improve the economic and aesthetic quality of life in the city of Santa Monica. (el These regulations simultaneous- ly seek to tightly control and encourage vending activity. pedestrian and . SECTION 6282. Definitions. For purposes of this Chapter, the following words or phrases shall have the following meanings: (a) Charqe: To require someone to pay a fee before receiving goods or services, or observing a performance. Voluntary contributions such as passing around a hat or soliciting donations after a performance or service is racei ved is not a charge. (b) Food or Food Products: Any type of edible substance or beverage. . - 2 - . (c) Goods or Merchandise: Any items that are not a food product. (d) Vend or Vendinq: To sell, offer for sale, or to barter food or goods in any public area from a stand, pushcart, motor vehicle, or by a person with or without the use of any other device or other method of transportation. (e) Vendor: A person who vends. This includes a vendor who is an employee or agent of another. A person engaged in the business of soliciting, canvassing, or taking orders is subject to the regulations in Article VI, Chapters 2 and 2B, and is not a "vendor.1f (f) Performer: An individual or group performing music, dance, drama, comedy, or creating certain tangible art objects, in a public area. (g) Perform: When used in connection wi th "Performer, " "perform" means to play music, dance, act, or create any of the artistic activities identified in subsection (f) of this section. (h) Public Area: AnY roadway, street, sidewalk, park, playground, or any other public right of way. . . - 3 - . (i) Pushcart: Any nonmotorized mobile device used in the sale, barter, or offer for sale of food products, goods, or merchandise. (j) stand: Any nonmobile device used in the sale, barter, or offer for sale of food products, goods, or merchandise. (k) Vehicle: Any motorized device used in the sale, barter, or offer for sale of food products, goods, or merchandise. . SECTION 6283. Exemptions. The provisions of this Chapter shall not apply to: (a) Any approved participant in any Farmer's Market. (b) Any approved participant in any cultural Arts and Crafts Show (pursuant to section 6335). (c) Any vendor operating pursuant to an approved license agreement on the Pier. . (d) Any vendor operating pursuant to an approved license agreement on the pedestrian mall established pursuant to section 3611 of this Code. - 4 - . SECTION 6284. Vendor Permi t Required. (a) No person may vend in the City without first obtaining and having in his or her possession a vendor penni t issued in accordance with this Chapter. (b) To receive a vendor permit, a person must complete a vendor permit application on the form approved by the City and file it with the City. The applicant must provide the following information: . (1) Applicant's full name. (2) Proof of applicant IS identity. . (3) A brief description of the type of food products or goods to be sold. This shall include the nature, character, and quality of the product. (4) The location where the applicant plans to vend. (S) If applicant is employed by another to vend, the name and business address of the employer. (6) If applicant will use a motor vehicle during his or her vending, a description of the vehicle, its registration number , its license number, - 5 - . and the streets the applicant intends to use. . (7) If applicant will use a pushcart or any other device, a description of the pushcart or device. (8) If applicant will vend food products, a valid Los Angeles County Department of Health permit- and certification that he or she complies with all state and federal laws regarding food product vending. (c) No application for a vendor permit or the renewal thereof shall be accepted unless the application is accompanied by a fee of $25.00 in the case of an original application and $10.00 in the case of a renewal application. SECTION 6285. Vendor Permit . Issuance and Denial. (a) Upon receipt of a written application for a vendor permit, the Chief of Police shall conduct an investigation as it deems appropriate to determine whether a vendor permit should be approved. A vendor permit shall be approved, conditionally approved, or denied within thirty (30) days of the - 6 - . filing of an application. The vendor permit shall be approved unless one of the following findings is made: (1) The applicant has knowingly made a false, misleading, or fraudulent statement of fact to the city in the application process. (2) The application does not contain the information required by this Chapter. (3) The applicant has not satisfied the requirements of this Chapter. . (b) The Chief of Police may condition the approval of any vendor permit to ensure compliance with this Chapter and other appliCable laws. (c) A vendor permit issued by the Chief of Police may be revoked pursuant to the provisions of Section 6123 of this Code. . (d) Upon approval or conditional approval of a vendor permit by the Chief of Police, it shall be submitted by the applicant to the Director of Finance who shall issue a business license upon payment of the license fee. The license fee shall be $25.00 per annum. - 7 - . (e) A vendor permit issued hereunder shall be effective for the same period as the business license. Upon the expiration of the vendor permi t, an application for renewal thereof shall be filed in a like manner as an application for an original vendor permit, and such renewal permit shall be approved only when the requirements for the issuance of an original vendor permit are meet. (f) A vendor permit shall not be assignable or transferable. . SECTION 6286. Appeals. Any decision of the Chief of Police under this Chapter denying an application, conditionally approving an application, or revoking a permit, may be appealed by an aggrieved applicant or permit holder. Any appeal must be taken wi thin the time and manner set forth in Section 6126 of this Code. Upon an appeal, the decision of the Hearing Examiner shall be final except for judicial review and shall not be appealable to the City Council. . SECTION 6288. Performers. (a) A performer who performs without charge shall not be required to - 8 - . obtain a vendor permit pursuant to this Chapter or a business license pursuant to Chapter 1 of Article VI of this Code. A performer who performs without charge shall be subject to the provisions set forth in subsections (a), (d), and (e) of section 6289. (b) A performer who performs for a charge shall obtain a vendor permit and shall be subject to all of the provisions of this Chapter. . SECTION 6288. Vendor Location sites. No person issued a vendor permit pursuant to this Chapter shall vend in any location in the City except the following areas: (a) Wilshire Boulevard sidewalks. (b) Santa Monica Boulevard side- walks. . (c) Ocean Avenue sidewalks between Pico Boulevard and Wilshire Boulevard. Cd) Second street sidewalks between Colorado Avenue and wilshire Boulevards. (e) Fourth street sidewalks between Colorado Avenue and wilshire Boulevards. (f) Arizona Avenue sidewalks between Second Street and Fourth Street - 9 - . only during the hours of any approved Farmer's Market. (g) In connection with vending from vehicles, such as catering or ice cream trucks, on any street designated in the vendor permit. . SECTION 6289. General Requirements. (a) Location Restrictions. No person may vend or perform: (1) In anyone spot, or within 100 feet of that spot, for more than ten minutes in any three hour period. This subsection (a) (1) shall not apply to any person vending in the area set forth in Section 6288(f). (2) within four feet of any building, or within 10 feet of any business entrance. (3) Within 10 feet of any bus stop. . ( 4) wi thin 10 feet of any street corner. (5) Within 35 feet of any other vendor. (6) On any sidewalk that is 8 feet wide or less, at least 4 feet of the sidewalk must be kept clear. - 10 - . (7) In any manner that blocks the free movement of . or obstructs pedestrians. (b) Vending or Renting on Beaches Prohibited. All vending activity on the beaches is prohibited. No vendor permit shall be issued to any person for the vending of any food products, goods, or merchandise, or the renting of any types of goods, merchandise, or services on the beaches in the City of Santa Monica. (c) Receipts. Upon request by a buyer, a vendor shall give a receipt to the buyer. The receipt shall list the following: ( 1) The vendor's name. (2) The vendor's City permit number. (3) The vendor's address or telephone number. (4) The items sold. (S) The price of each item sold. ( 6) The total price of all . items sold. ed) Cleanup Responsibility. A vendor or a performer shall keep his or her vending or performing area litter - 11 -