SR-410-001-02 (8)
RMD:EDD:EB:F:\RESOURCE\SHARE\STAFFREPORTS
\DTVendingProgram.doc
Council Meeting: April 22, 2003 Santa Monica, California
TO: City Council
From: Staff
Subject: Downtown Special Vending Program Lottery
Introduction
At its meeting held March 11, 2003, the City Council directed staff to accelerate the
drafting of a plan for selecting vendors for six Downtown sidewalk vending locations
identified in Municipal Code Section 6.36.090. In response to this direction, staff has
prepared and recommends standards, procedures and license fees for City Council
approval.
Background
The City of Santa Monica has an existing vending ordinance that allows sidewalk
vendors to operate from six designated locations in the Downtown area in accordance
with procedures set forth in Municipal Code Section 6.36.070. The procedure entails a
random lottery drawing every two years for each of the locations. However the
ordinance’s random system of allocating vending locations to selected vendors had no
provisions for assessing a potential vendor’s qualification, past performance or product
and cart quality. On March 7, 2000, the City Council adopted an emergency ordinance
suspending the lottery pending formulation of performance standards or possible
integration of the six locations into a broader Downtown vending program. The then-
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current permit holders were granted extensions to continue to vend, and today, only one
vendor permit remains in effect.
During the meeting of March 11, 2003, City Council directed staff to accelerate the
drafting of such performance standards.
Discussion:
Staff proposes to re-implement the Downtown Special Vending Program lottery and
solicit lottery applications from interested and qualified vendors for five of the six
vending cart locations, provided Council approves the proposed performance standards
and monthly license fee which has been developed to ensure the highest possible
quality of vending operations under a lottery based system. Five of the six locations are
currently vacant, the one existing vending cart permit is to remain in effect under a new
two-year license agreement with the City.
The lottery application package will contain questions and criteria prospective vendors
must satisfy in order to submit an application to enter the lottery, including applicable
permits (health permits if a food vendor), a detailed description of cart operation,
management and experience in providing similar services, a detailed description of
merchandise, pricing and equipment, and industry references. The selected applicant
must also satisfy the terms and conditions set forth in the Municipal Code Section 6.36
and performance standards established for this program including maintenance
obligations, vending administration and management, merchandising, signage, staffing,
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and cart specifications. All standards must be adhered to throughout the term of the
license.
As consideration of the granting of a license to vend merchandise from the public right-
of-way, the licensee would pay to the City a License Fee during the term of the license
as follows:
(i) One Hundred Dollars ($100) per month during the months of July, August
and September;
(ii) Fifty Dollars ($50) per month during the months of October, November,
December, January, February and March; and
(iii) Seventy five Dollars ($75) per month during the months of April, May and
June.
Currently Downtown Special District carts vending from the public right-of-way are
required to pay an annual $50 business license tax fee, a $25.00 police permit
biennially, and a one-time Livescan (finger printing) fee of $92.10. No monthly license
fees are charged.
The proposed monthly license fee for Downtown Special Vending District carts are
approximately ten percent (10%) of the license fee charged to the vending carts located
on the Santa Monica Pier. The Downtown Special Vending District carts monthly license
fees are substantially lower than those charged to Santa Monica Pier vending carts as a
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result of the Pier’s higher visibility, higher pedestrian traffic and an overall greater
revenue earning potential.
In addition, staff recommends that the permit to vend be in the form of a Vending Cart
License Agreement issued and administered by Resource Management Department.
The proposed license agreement would be similar to the agreement used in the Santa
Monica Pier Vending Cart program.
If the recommended performance standards, and license fees are approved by Council,
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staff anticipates that lottery applications can be accepted by May 15 2003, with a
drawing to be conducted thirty (30) days later as specified by the Code. The License
Agreements would commence in July 1, 2003 and be valid for a two-year period
terminating June 30, 2005, at which time the Downtown Special Vending Program could
be incorporated into a broader Downtown vending cart program that may include
Promenade and Transit Mall locations.
Budget/Financial Impact:
Revenues from the Downtown Special Vending Program will be reported in Account
Number 01263.400770.
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Recommendation:
Staff recommends that Council approve the proposed performance standards and
license fees, and direct staff to proceed with the re-implementation of the vending cart
lottery system for the five vacant Downtown Special Vending District cart locations.
Prepared By: Jeff Mathieu, Resource Management Director
Mark Richter, Economic Development Manager
Elana Buegoff, Sr. Administrative Analyst
Attachment A: Performance Standards
Attachment B: Downtown Special Vending District Vacant Locations Map
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Attachment A
III. PERFORMANCE STANDARDS
Introduction:
These guidelines set forth criteria intended to ensure highest possible quality of cart operation,
maintenance, and design for City of Santa Monica Downtown Special Vending Program. The
objective of such a vending cart program shall be to feature food and unique craft or specialty
oriented merchandise, while providing the highest level and quality of customer service to the
public to enhance the experience of residents and visitors to the Downtown area.
1. GENERAL VENDING CART REQUIREMENTS
(a) Location Restrictions. No person may vend:
(1) Within ten feet from the outer edge of any entrance of any business, including, but
not limited to: doors; vestibules; driveways; outdoor dining area entries; and emergency exits as
measured in each direction parallel to the building line, during the hours that any business on the
premises is open to the public or to persons having or conducting lawful business within those
premises.
(2) Within ten feet of any bus stop.
(3) Within ten feet of any street corner or marked pedestrian crosswalk.
(4) Within thirty-five feet of any other vendor.
(5)In any manner that blocks or obstructs the free movement of pedestrians. A
minimum of 4 feet sidewalk width must be maintained for pedestrian passage.
Pedestrian and vehicular curb cuts must not be blocked or obstructed.
(b) 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 vendor permit number.
(3) The vendor's address or telephone number.
(4) The items sold.
(5) The price of each item sold.
(6) The total price of all items sold.
(c) Cleanup Responsibility. A vendor shall keep his or her vending or performing area litter
free. He or she must remove litter caused by his or her products off of any public property and
other private property. A vendor with a pushcart shall have a trash container in or on the cart.
(d) Noise Limit. Except as provided for in this Chapter, a vendor shall be subject to the
provisions of Chapter 4.12 of Article 4 of this Code. Vendors shall be subject to the noise
regulations in Chapter 6.116. In addition, no vendor shall be so loud as to be heard inside the
premises of an adjacent building or structure while the entrance door to the premises is closed.
(e) Pushcart Standards. A vendor's pushcart (or other device) shall be kept clean and in a
safe condition when used on public property. The pushcart shall display the following:
(1) The vendor's name, business name, and City permit number on all vertical sides of
the cart. The lettering shall be at least one inch high. A food vendor shall include his or her Los
Angeles County Department of Health permit number.
(2) A photocopy of the vendor's City vendor permit on at least two vertical sides of the
cart.
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(f) Compliance with Conditions. No person shall vend contrary to the terms or any
conditions imposed in approving a vendor permit pursuant to Performance Standards as set forth
herein.
2. ADMINISTRATION AND MANAGEMENT
A.Licensee must obtain a business license from the City of Santa Monica. Licensee is
responsible for ensuring that all required licenses and permits have been obtained and
kept current, including all requirements of governmental agencies having jurisdiction
over any aspect of the vending program. Copies of all permits and renewals are to be
forwarded to City or its designated Administrator.
B.Prior to acceptance into the vending cart program, each Licensee, cart and merchandise
must be approved by City or City’s designated Administrator. Following such approval,
and prior to commencement of operation of any new vending cart, Licensee will be
responsible for providing the following completed documentation to the City of its
designated Administrator and, during the term of such operator’s participation in the
vending cart program, shall continue to keep current.
1.City Business License
2.Certificate of insurance with City named as co-insured
3.Samples or information satisfactory to City of all merchandise to be sold from
cart
4.County health permit as applicable
5.Any other license or permit as warranted.
C.Operation of Cart must be done in an ethical and professional manner. Licensee is solely
responsible for the enforcement of cart rules and Vendor Cart Guidelines as they pertain
to individual cart operators.
D.All products during the course of operation shall be approved in writing by the City or
City designated Administrator.
E.Licensee shall maintain and update for City a list of vending cart employees. No other
person shall operate the vending cart except the Licensee and designated employees.
F.Business checking account(s) should have the same business name as the vending cart
business.
3. CART OPERATION
A.Licensee will be subject to license revocation for the following problems:
Licensee does not vend for at least ten days in any month.
(a)
Leaving vending cart unattended.
(b)
Blocking or impeding pedestrian traffic.
(c)
Allowing anyone other than a paid member of Licensee’s staff to attend or operate
(d)
vending cart.
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Moving vending cart in a rapid or unsafe manner. Any accidents with pedestrians or
(e)
damage to property shall be reported immediately to the City or City’s designated
Administrator.
Allowing staff to move vending cart without direct supervision (Someone shall be in
(f)
front of the vending cart as it is being pushed to assigned cart location).
Failure to maintain current Liability and/or Worker’s Compensation Insurance.
(g)
A repeat of the same or any other violation within a twelve-month period during the term of this
agreement may result in the termination of this license agreement at the City’s discretion.
4. MERCHANDISING GUIDELINES
Licensee are required to adhere to the following merchandising guidelines when creating
vending cart displays:
Display of merchandise shall be professionally designed and executed.
(a)
All displayed merchandise shall be visibly priced.
(b)
City or City designated Administrator will approve drawings and production of the
(c)
display
All fixtures, fabric, signage, chairs, and other decorations shall be maintained in good
(d)
condition throughout the operation of the vending cart.
Merchandise shall be stored inside vending cart or presented on approved display
(e)
fixtures at all times. No stored boxes, bags, or cloths are to be visible to the public.
Merchandise shall be in good condition
(f)
Carts should be fully stocked with merchandise at all times during business hours.
(g)
Merchandise shall be presented in approved display units
(h)
Merchandise shall be priced before placement upon the vending cart for sale.
(i)
Daily preparation of merchandise and display shall not create a visual nuisance to
(j)
public and surrounding businesses.
No display of merchandise shall be permitted upon vending cart roof or below
(k)
counter/ shelf level of vending cart without written approval of City or City
designated Administrator.
Vending cart doors shall be closed and boxes and bags shall be off the street or
(l)
sidewalk while operating.
5. SIGNAGE
Licensee is responsible for investing in a high quality coordinated signage package. If Licensee
is not able to personally create and produce the artwork and materials necessary, experts in the
field shall be hired to create and produce a high-quality presentation at Licensee sole expense.
Professionally produced business signs for cart roof will be produced by a
(a)
professional sign painter.
Sign design and dimensions shall be approved in writing by City of City designated
(b)
Administrator prior to placement on the vending cart.
Price signs and items description shall be preprinted and mounted on approved
(c)
material. Handwritten signs will not be approved.
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6. STAFFING
In an effort to guarantee Downtown visitors excellent service, the following staffing standards
are required of all Licensees:
All Licensee employees shall be neat and clean at all times and shall wear some
(a)
distinctive article of apparel that identifies them as Licensee employees.
Licensee employees shall be courteous to all patrons.
(b)
Licensee employees shall not use improper language, behave in a boisterous manner,
(c)
emit any unduly loud or unreasonable noise, engage in any horseplay, or unbecoming
or otherwise illegal or objectionable conduct or activities.
Licensee employees shall not smoke while at the cart.
(d)
Licensees shall supervise the conduct of their employees.
(e)
Licensee shall insure that their employees understand and comply with the cart
(f)
guidelines and special memos.
Licensee and staff shall be familiar with activities surrounding the license area
(g)
including but not limited to stores, rest rooms, ATMs and special events.
Should staff problems arise, Licensee shall be available in case of emergencies. If
(h)
problem is not resolved City or City designated Administrator may exercise its
discretion including closing/ securing of vending cart or require replacement of
employee by the Licensee.
7. CART SPECIFICATION
Over all cart dimensions shall not exceed 40” wide x 80” long x 85” high. Due to the
(a)
varying widths of the sidewalks, actual cart size may necessitate a smaller size. Carts
must not block pedestrian traffic. A minimum of 4 feet sidewalk width must be
maintained for pedestrian passage.
Heavy-duty, solid poly-loc, non-corrosive wheels. Two swivel and two ridged.
(b)
Brakes on all wheels.
Lockable cabinet access doors.
(c)
Food service carts must comply with all County Health Department requirements.
(d)
Any proposed modifications to cart specification must be reviewed and approved in writing by
City or City designated Administrator.
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Attachment B
Downtown Special Vending District
Vacant Locations
(a*) The public sidewalk at the northeast corner of Sixth Street at Santa Monica Boulevard.
(b) The public sidewalk at the northwest corner of Fourth Street at Arizona Avenue.
(c) The public sidewalk at the northeast corner of Fourth Street at Arizona Avenue.
(d*) The public sidewalk at the northwest corner of Fourth Street at Santa Monica Boulevard.
(e) The public sidewalk at the northwest corner of Fourth Street at Broadway.
A sixth location (not shown) at the northwest corner of 5th & Arizona is currently occupied by a vendor
in good standing with the City.
* Vending cart locations (a) and (d) require proof of disability to be attached to Downtown Special
Vending District lottery application, Municipal Code 6.36.070 (d). (Example: Veteran’s Administration;
Social Security Administration; Worker Compensation rating; doctor’s certification, etc).
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