SR-8-B (27)
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MAY 1 0 1988
CA:RMM:edvend2/hpca
City council Meeting 5-10-88
Santa Monica, California
STAFF REPORT
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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
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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
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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
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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.
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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.
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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,
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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.
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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
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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
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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
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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.
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(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.
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(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.
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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.
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(d) Any vendor operating pursuant
to an approved license agreement on the
pedestrian mall established pursuant to
section 3611 of this Code.
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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:
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(1) Applicant's full name.
(2) Proof of applicant IS
identity.
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(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,
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and the streets the applicant intends to
use.
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(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
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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
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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.
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(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.
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(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.
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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.
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SECTION 6288. Performers.
(a) A performer who performs
without charge shall not be required to
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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.
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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.
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(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
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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.
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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.
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( 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.
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(7)
In any manner that blocks
the free movement of
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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
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items sold.
ed) Cleanup Responsibility. A
vendor or a performer shall keep his or
her vending or performing area litter
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