Law and Legislation Committee Report 915 I Street, 1 st Floor Sacramento, CA 95814 www.cityofsacramento.org File ID: 2018-00856 June 26, 2018 Discussion Item 03 Title: Ordinance Amending Section 5.68.010 of the City Code Relating to Food Vending Vehicles and a Discussion on Expanding the City s Outdoor Vending Permitting Program Location: Citywide Recommendation: 1) Review an Ordinance amending section 5.68.010 of the City Code relating to Food Vending Vehicles to include trailers; 2) pass a Motion to forward the Ordinance to City Council for consideration; and 3) review, discuss, and provide direction to staff about expanding a permitting process for outdoor food vendors under chapter 5.88 of the City Code. Contact: Tessa St. John, Program Manager, (916) 808-4847; Brad Wasson, Revenue Manager, (916) 808-5844, Department of Finance Presenter: Tessa St. John, Program Manager, (916) 808-4847, Department of Finance Attachments: 1-Description/Analysis 2-Matrix of Comparable City Regulations 3-Community Meeting Feedback 4-Ordinance (Redline) 5-Ordinance (Clean) Susana Alcala Wood, City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 12
File ID: 2018-00856 Discussion Item 03 Description/Analysis Issue Detail: Councilmembers Hansen and Guerra instructed staff to investigate expanding the City s food vending program under chapter 5.68 of the City Code to include trailers and to make recommendations to create a permitting path for outdoor vending for street carts. A working group, including staff from the County s Environmental Management Division and a variety of internal city departments, conducted research and explored options. Staff conducted research on programs in other jurisdictions, and conducted outreach efforts, including hosting four public meetings and presenting at multiple neighborhood association meetings. Business owners currently host food trailers on their properties and entrepreneurs have found a food trailer to be a more economical starting point than a truck. A trailer is defined as a vehicle designed for carrying items on its own and for being drawn by a motor vehicle. Staff recommends expanding the definition of food vending vehicle under section 5.68.010 of the City Code to include trailers, subjecting them to the same regulations as food trucks. Staff is also asking the committee to consider expanding the outdoor vending program and provide staff with further direction on the program. Factors to be considered when enacting an expanded outdoor vending ordinance include but are not limited to: Pilot program: A pilot program for street vending was discussed with the internal working group and at the community meetings. This pilot program could be limited to specific areas or corridors of the city. Alternatively, a pilot program could be a limit on the number of permits issued for the first year. After the trial period, the program could be adjusted, and further expansion could be considered. Mobile street carts and/or stationary street carts: Many vendors have expressed interest in operating mobile carts, for example ice cream pushcarts. Most jurisdictions permit stationary carts by location, similar to the current permitting done in the Central Business District. Permitting by location provides increased ability to ensure sufficient space for pedestrian access and to monitor compliance. Alternative food carts: Innovative business operators have approached staff with ideas including food bicycles. Food bicycles could be treated as stationary food carts and issued a permit for specific locations or could be allowed to travel throughout town. Again, concerns arise regarding ensuring the vendors are operating safely. Pop-up food vending: The community has also seen an increase in pop-up food vending. These include vendors who set up an area on private property and prepare and sell food. Examples include pizza ovens or BBQs. These vendors are not operating off a trailer, cart, or truck. This model has proven popular at businesses where people gather, but do not have food service. An inclusive outdoor vending program could allow these vendors to be permitted. City of Sacramento June 26, 2018 powered by Legistar Page 2 of 12
File ID: 2018-00856 Discussion Item 03 Allowances for multiple vendors: Similar to food trucks, staff recommends a required distance between vendors to avoid areas permeated with street carts. However, certain locations (e.g., churches) currently support the operation of multiple vendors on certain days and times. Temporary permits allowing the operation of multiple vendors may be acceptable (e.g., four vendors can operate on Sunday from 10:00 am 2:00 pm). Pod sites: A site permit could allow multiple food carts to operate on private property on a semi-permanent basis. Fingerprinting: Fingerprinting is a common practice for many city-issued permits. However, in reviewing other agency requirements, fingerprinting is not necessary for this type of permit and vendors will may be more likely to obtain the required permits if not required. The Police Department has the ability to review and ensure there are no outstanding warrants for vendors with just a driver s license number and birthdate. Attachment 2 provides information on mobile and outdoor vending programs in other California cities and Attachment 3 provides a comprehensive list of community questions and concerns. Policy Considerations: The City s current food vending vehicle permitting program limits vending solely to trucks (Sacramento City Code chapter 5.68). However, throughout the community, business owners are vending from a wider variety of mobile units. Analysis of comparable cities in California showed only two cities limiting the mobile food definition to trucks. The City s current mobile food truck program has resulted in over 100 food trucks being permitted with minimal complaints. Existing City Code limits outdoor vendors to a limited area in the Central Business District and there are currently ten permitted vendors. The City has a list of over 75 people interested in vending in this limited area and the Business Permits office receives calls on a weekly basis from people interested in obtaining a permit to vend food throughout the city. The current permitted outdoor vendors have resulted in one recorded complaint over the previous two years. Economic Impacts: None Environmental Considerations: This action is not a project subject to CEQA because it involves administrative matters and will not result in new physical development, direct changes to the physical environment, and any reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines 15378(b)(5).) Sustainability: Not Applicable. Commission/Committee Action: Not Applicable. City of Sacramento June 26, 2018 powered by Legistar Page 3 of 12
File ID: 2018-00856 Discussion Item 03 Rationale for Recommendation: Food vending vehicles and outdoor vending are vibrant additions to the community, providing innovative, economical business opportunities and expanded options for consumers. Trailers are frequently used at local businesses that do not have food service. Permitting these uses will increase the ability for these businesses to draw additional customers. Upon the request of councilmembers, staff is providing information on outdoor vending options and requesting further direction. Trailers are not required to be permitted under any other city program, which could lead to public health and safety concerns if left unregulated. Expanding the definition to include trailers will open the door for semi-permanent, community marketplaces built around food trailers, a model that has successfully revived commerce in other cities and can work as a business incubator for food entrepreneurs. Providing a permit process for street cart vendors will provide business owners a path to legitimacy and compliance. Financial Considerations: Permit fees will be established to offset the staff time included in the implementation of the program and the enforcement of the code. Local Business Enterprise (LBE): Not Applicable. City of Sacramento June 26, 2018 powered by Legistar Page 4 of 12
City Attachment 2 - Comparable city regulations Outdoor vending/ Street carts Allowed on private property? permitted? Allowed on public right-of-way? Los Angeles Currently decriminalized; regulations and permit process in development San Diego Yes/permitted No permit required, but regulations in place Yes, requires a "neighborhood use permit" - Carts must remain in locations specified on the permit - A min. of 8' of sidewalk must be unobstructed - Must receive authorization for adjacent businesses San Jose Yes/permitted Yes, permit required - Permission from property owner - Not allowed in Residential or Commercial Office zones - 150' from residence, 500' from another vendor, 15' from public right-of-way San Francisco Yes/permitted Yes, depending on zone. - Temporary permits are issued (vendor can operate 3 days a week) and can be renewed annually. - Permanent permits require vendors to follow same process as a "brick and mortar." Fresno Yes/permitted Yes, permit required Permit types depend on if vendor will operate at 1-2 locations for 4+ hours, and those that will operate at more sites for <4 hours Yes, permit required - Background check and location approved by PD - 100 square feet max - 150' from residential zone Yes, permit required - Must maintain 6 feet of pedestrian access. Yes Residential zones: - Must move every 30 minutes Non-residential zones: - Operate in parking stalls for parking time limit or 1 hours, whichever is less Long Beach Yes/permitted - in limited area Yes, in residential zones: - Must move every 10 minutes. - Cannot be within 1 block of a school. Also permitted to operate in limited downtown area. Sacramento Yes/permitted - in limited area No In limited area of the central business district Oakland Yes/permitted Yes Yes - Maintain 5.5' of unobstructed sidewalk or 50% of sidewalk, whichever is greater Bakersfield Yes Yes - Maintain 4' of pedestrian access Page 5 of 12 Page 1 of 2
City Attachment 2 - Comparable city regulations Mobile street carts allowed? Fingerprint/DOJ clearance required Extra Info Trailers permitted? Los Angeles Yes San Diego No Yes No trailers allowed. - Food trucks require a permit only for operation on private property San Jose San Francisco Yes - Must move at least 500' every 15 minutes - 500' from a school - 200' from another vendor Yes - Permits issued for a fixed location or a defined route. Mobile "peddlers" - Yes Stationary - No No Sellers of whole, uncut, fresh fruits and vegetables do not require a health permit or a city permit Vendors can only operate at one location 3 days a week, but multiple vendors can be permitted for one location. Yes Regulations are split into "stationary" or "peddler" categories. Stationary includes any "vending facility" Peddler includes "mobile unit:...vehicle, truck, trailer, cart, wagon, bicycle, dray, conveyance or structure on wheels not permanently fixed to a permanent foundation" Yes, "trucks/trailers" are treated by the same regulations Fresno Yes Yes Yes, mobile vendor vehicle means "truck, push-cart, bicycle, hand-cart, van, wagon, automobile, car, stand, table, or any other apparatus or device used by mobile vendors to sell their food, drinks or merchandise." Long Beach Yes No City administrator sets a maximum number of permits to be issued annually. Yes, "any vehicle, including an unhitched trailer " Sacramento No No Oakland No No Yes Bakersfield Yes - must submit area of operation No No. Page 6 of 12 Page 2 of 2
Attachment 3 Community meeting feedback Renaissance Building, Del Paso Blvd, March 29, 2018, 5:30-7:00 pm How long will it take to complete this process and allow permits for vendors? What foods will be allowed? What are the different city models being reviewed? Why are there so many restrictions? It is already happening everywhere, so it should be easy for these vendors to operate. How would carts be managed day-to-day? Does Code Enforcement have the time to regulate these carts? How many vendors will be allowed? Be sure there is parking where vendors set up. Avoid placing vendors in locations where there is no foot traffic. What about people opening a cart associated with an existing business? What about less requirements for people who are operating with nonprofit agencies assisting them to start a small business? City Hall, April 2, 2018, 5:30-6:30 pm A current cart vendor is receiving parking tickets because he is forced to unload cart in a red zone. People want to see more food trucks and carts. How will locations be restricted and enforced? Will there be vending time limits and restrictions? How do people vend at special events or farmers markets? Southside Clubhouse, April 7, 2018, 1:00-2:00 pm How will location sites be determined in relation to existing restaurants? Does this hamper restaurant business? Are the current vendors operating permitted? Are people required to have a health/food handling permit? Can a restaurant protest a mobile vendor from operating near the restaurant? Will they be able to vend everyday or just on special events/holidays? How many vendors per mile? Do vendors have to wash their hands regularly? What is the reason for allowing food trucks, but not other types of vendors? Page 1 of 3 Page 7 of 12
Attachment 3 Community meeting feedback How does it work with access to a bathroom? Will they need a paper agreement with a location to use a bathroom? What will happen to vendors who continue to operate without a permit? How much does it cost to start a food cart? Are you going to change the lottery process? Are they going to limit the number of vendors in a certain area? What if the competition is causing problems for brick and mortar restaurants? California health requirements are some of the most restrictive in the world and they are very hard to meet. How can enforcement be improved? How is cart storage regulated? Can the carts be stored in residential areas? Do these requirements include small, mobile ice cream pushcarts? Can vendors park in the street so sidewalk is clear? Or can vendors utilize a parking space for the cart? Be sure vendors are not encouraging children to run across streets to access. Maple Neighborhood Center Franklin Blvd, April 11, 2018, 5:30-7:30 Is there the possibility of having mobile pushcarts? Business owner expressed the desire to have regulated vendors on his property but only if he has given permission. Why do we need new regulations outside of downtown? How could the City handle so many applicants? Would vendors around churches need permitting? How will you determine the type of carts and how many are allowed? How much enforcement will be dedicated to this? Do vendors have to be approved by environmental requirements? Requirements like insurance, fingerprinting, cart requirements are expenses that many vendors cannot afford. Current vendors report receiving harassment from enforcement officers and members of the community. What is a food vending facility? Page 2 of 3 Page 8 of 12
Attachment 3 Community meeting feedback What are the storage requirements? Why can t they just use their homes to cook and store? What would constitute healthy food? Would this still be operated by lottery? What would happen to people not in the lottery? Please make it as simple and affordable as possible. Make sure information is available in other languages. Would regulations be the same in all areas or different regulations per locations? Why does the City need regulations on top of what the County already has? Future meetings should have a County representative present to address the health requirements. Vendors are harassed and ticketed by people that have no authority. They are told to give people money and because they have no permit, they are afraid of these threats. If a vendor is given permission to vend on private property, are they still in violation of City Code? Vendors are doing their best to follow health requirements and provide safe, desirable food. Page 3 of 3 Page 9 of 12
ORDINANCE NO. Adopted by the Sacramento City Council [Date Adopted] AN ORDINANCE AMENDING SECTION 5.68.010 OF THE SACRAMENTO CITY CODE RELATING TO FOOD VENDING VEHICLES BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. Section 5.68.010 of the Sacramento City Code is amended to read as follows: 5.68.010 Definitions. As used in this chapter, the following definitions apply: Director means the city s director of finance, or designee. Driver permit means a food vending vehicle driver permit. Food vending vehicle includes means any motor vehicle (e.g., truck or trailer) from which a vendor displays or offers for sale or sells any type of food or beverages is sold or offered for sale directly to any consumer; provided, however, that food vending vehicle does not include a vehicle that only delivers food or beverage products ordered by home delivery customers. Heavy commercial and industrial zoning districts means C-4, M-1, M-1S, M-2, M-2, MRD, and MIP zoning districts as established pursuant to Ttitle 17. Operate a food vending vehicle means to drive, occupy, or otherwise use a food vending vehicle, to sell, offer to sell, or display for sale, any type of food or beverage. Property permit means a food vending vehicle property permit. Residential zoning districts means RE, R-1, R-1A, R-1B, R-2, R-2A, R-2B, R-3, R-3A, and RO zoning districts as established pursuant to Ttitle 17. Trailer has the same meaning as in California Vehicle Code section 630. Vehicle has the same meaning as in California Vehicle Code section 670. Vehicle permit means a food vending vehicle permit. 1 Page 10 of 12
Vendor means any person who operates a food vending vehicle. 2 Page 11 of 12
ORDINANCE NO. Adopted by the Sacramento City Council [Date Adopted] AN ORDINANCE AMENDING SECTION 5.68.010 OF THE SACRAMENTO CITY CODE RELATING TO FOOD VENDING VEHICLES BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. Section 5.68.010 of the Sacramento City Code is amended to read as follows: 5.68.010 Definitions. As used in this chapter, the following definitions apply: Director means the city s director of finance, or designee. Driver permit means a food vending vehicle driver permit. Food vending vehicle means any vehicle (e.g., truck or trailer) from which a vendor displays or offers for sale or sells food or beverages directly to a consumer. Heavy commercial and industrial zoning districts means C-4, M-1, M-1S, M-2, M-2, MRD, and MIP zoning districts as established pursuant to title 17. Operate a food vending vehicle means to drive, occupy, or otherwise use a food vending vehicle. Property permit means a food vending vehicle property permit. Residential zoning districts means RE, R-1, R-1A, R-1B, R-2, R-2A, R-2B, R-3, R-3A, and RO zoning districts as established pursuant to title 17. Trailer has the same meaning as in California Vehicle Code section 630. Vehicle has the same meaning as in California Vehicle Code section 670. Vehicle permit means a food vending vehicle permit. Vendor means any person who operates a food vending vehicle. 1 Page 12 of 12