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CC 2019-01-22_11b Introduce Ordinance_Mobile_Sidewalk Vending MEMORANDUM TO: CITY COUNCIL FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR BEAU PRYOR, POLICE CHIEF SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 9.32 AND ADDING CHAPTER 9.33 TO TITLE 9 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO MOBILE VENDING AND SIDEWALK VENDING DATE: JANUARY 22, 2019 SUMMARY OF ACTION: The proposed Ordinance would amend the Arroyo Grande Municipal Code to revise existing mobile vending regulations contained in AGMC Chapter 9.32 to limit their application to vending from vehicles, and add a new Chapter 9.33 to enact new regulations that are consistent with newly adopted Government Code Sections 51036 et seq. to regulate sidewalk vendors. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no financial impact as a result of the proposed action, however, there will be costs associated with staff time needed to implement the new permit requirements for sidewalk vendors. RECOMMENDATION: It is recommended that the City Council introduce the Ordinance amending Chapter 9.32 and adding Chapter 9.33 to Title 9 of the Arroyo Grande Municipal Code relating to Mobile Vending and Sidewalk Vending. BACKGROUND: The City Council adopted Ordinance No. 641 in 2011, which added Chapter 9.32 to the Arroyo Grande Municipal Code regulating Mobile Vending. The Ordinance created a regulatory program for “mobile vending”, which applied broadly to vending from “vending vehicles”, as defined in the Ordinance. In addition to vending from motorized vehicles such as food trucks, vending vehicles were defined to also include pushcarts, wagons and other non-motorized vehicles and conveyances. The Ordinance applied to the sale of food, beverages, goods, wares, or merchandise on public streets, sidewalks, or alleys and on private property. Item 11.b. - Page 1 CITY COUNCIL CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 9.32 AND ADDING CHAPTER 9.33 TO TITLE 9 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO MOBILE VENDING AND SIDEWALK VENDING JANUARY 22, 2019 PAGE 2 In 2018, the State Legislature enacted the Safe Sidewalk Vending Act, SB 946 (Statutes 2018, Chapter 459) which added Sections 51036 et. seq. to the Government Code. This new State law set forth limitations on the ability of local authorities to prohibit or regulate sidewalk vendors. The statute decriminalizes sidewalk vending with the intent to promote entrepreneurship and economic development opportunities for low-income and immigrant communities. Effective January 1, 2019, the City is prohibited from assessing criminal penalties for violations of sidewalk vending regulations, and its ability to prohibit sidewalk vendors in public parks and on public sidewalks is limited. Local jurisdictions may, however, adopt requirements regulating time, place, and manner, including a permit- based system if the requirements are directly related to objective health, safety, or welfare concerns. SB 946 defines “sidewalk vendor” as someone who sells food, beverages, or merchandise from non-motorized conveyances or from his or her person upon a public sidewalk or other pedestrian path. A non-motorized conveyance includes a pushcart, stand, display, pedal-driven cart, wagon, showcase, and rack. The statute also contains definitions of sidewalk vendors, who may be “stationary”, operating from a fixed location, or “roaming”. The new State law lists a number of impermissible regulations. The City is prevented from requiring a sidewalk vendor to operate within specific parts of the public right-of-way. Cities cannot require a sidewalk vendor to obtain permission from any business to operate near them. Cities do not have the authority to restrict a vendor from operating on the sidewalk due to conflicting business uses. However, the City may prohibit sidewalk vendors near certified farmers’ markets, swap meets, or areas subject to a temporary special permit during the limited hours of the farmers’ market or swap meet or the duration of the temporary special permit. The City also may not prohibit a sidewalk vendor from selling food or merchandise in a City park, except where the City has contracted with a concessionaire for the exclusive sale of food or merchandise. The City may, however, adopt requirements regulating the time, place and manner of sidewalk vending in parks if these requirements are either: (i) directly related to objective health, safety or welfare concerns; (ii) necessary to ensure the public’s use and enjoyment of a natural resources and recreational opportunities; or (iii) necessary to prevent an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of the park. SB 946 also provides that the City may not restrict sidewalk vending to a designated neighborhood or other area, although the City may prohibit a stationary sidewalk vendor from operating in an exclusively residential zone. The City also may not restrict the number of sidewalk vendors permitted in the City, unless the restriction is directly related to health, safety. or welfare concerns. Finally, the City may not require a sidewalk vendor Item 11.b. - Page 2 CITY COUNCIL CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 9.32 AND ADDING CHAPTER 9.33 TO TITLE 9 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO MOBILE VENDING AND SIDEWALK VENDING JANUARY 22, 2019 PAGE 3 to obtain the consent or approval of any nongovernmental entity or person before selling food or merchandise. Notwithstanding these prohibitions, as noted the City may impose additional regulations if they directly relate to objective health, safety or welfare concerns. In addition to being able to require a permit, this can include requiring maintenance of sanitary conditions, complying with disability access standards, possessing a valid California seller’s permit for sales tax compliance and restricting the hours of operation in residential zones. In commercial zones, hours cannot be more restrictive than other businesses on the same street. As previously noted, the new statute was expressly designed by the State Legislature to decriminalize sidewalk vending. It requires an administrative fine penalty structure, and even provides that local jurisdictions are required to offer an ability-to-pay determination to individuals who are issued a violation. ANALYSIS OF ISSUES: As a consequence of SB 946, the City may no longer enforce its Ordinance regulating mobile vending as it applies to non-motorized conveyances. In order to regulate mobile vending from non-motorized conveyances, a new ordinance has been drafted in compliance with SB 946 for the Council’s consideration. SB 946 authorizes local governments to implement operational regulations regarding the time, place, and manner of sidewalk vending only as they relate to public health, safety, and welfare concerns. Accordingly, the draft Ordinance includes a finding related to the potential for vendors to engage in illegal activities, including but not limited to the sale of illegal substances or merchandise and sale of counterfeit products, to support a requirement for background checks for vendors. Findings have also been included related to the potential to cause injury to persons or property by the manner in which sidewalk vendors are sited, or by their movement on sidewalks that are otherwise used by the traditional activities of pedestrians and vehicles on adjacent streets for access, transport, delivery of merchandise to local businesses, exercise and related activities. These findings have been included to support the imposition of locational restrictions, on a case-by-case basis, as part of the permit process, as well as insurance requirements. Under this approach, stationary vendors will be required to submit proposed locations, the placement of which will be regulated to assure that they do not cause conflicts with pedestrians, delivery persons, disabled persons, parked vehicles or other uses. The Ordinance includes time, place and manner provisions related to parks to the extent the City is allowed by SB 946. Among the other restrictions in the Ordinance are provisions requiring vendors to maintain clean, safe and sanitary conditions and provide trash receptacles for customers. If they sell food or beverages, they must have health permits, as well as proof of food handler training. In addition, they must comply with Item 11.b. - Page 3 CITY COUNCIL CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 9.32 AND ADDING CHAPTER 9.33 TO TITLE 9 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO MOBILE VENDING AND SIDEWALK VENDING JANUARY 22, 2019 PAGE 4 lighting and noise related requirements, and not operate in a manner that would create obstructions or safety hazards. They must also comply with Americans with Disabilities Act (ADA) and other disability access standards. Hours for roaming vendors in residential areas are limited to 9:00 a.m. to 5:00 p.m. The penalty provisions have been drafted to comply with the limitations in SB 946. Hearing and appeal provisions have been included to be consistent with legal requirements. Finally, the existing Mobile Vending regulations contained in AGMC Chapter 9.32 have been revised to limit their application to vending from vehicles. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Introduce the Ordinance amending Chapter 9.32 and adding Chapter 9.33 to Title 9 of the Arroyo Grande Municipal Code relating to Mobile Vending and Sidewalk Vending; 2. Modify and introduce the Ordinance; or 3. Provide direction to staff. ADVANTAGES: To meet the State mandated regulations and restrictions as set forth in California Government Code Sections 53036-53039, the City must create a permit process in order to regulate sidewalk vendors. Given the limitations on the ability of cities to regulate sidewalk vending under the new State law, the proposed Ordinance will regulate them to the extent permissible in order to assure that they do not create health, safety or welfare concerns. DISADVANTAGES: The Ordinance will create a new permit program that will need to be implemented by staff. ENVIRONMENTAL REVIEW: The Ordinance is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Item 11.b. - Page 4 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 9.32 AND ADDING CHAPTER 9.33 TO TITLE 9 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO MOBILE VENDING AND SIDEWALK VENDING WHEREAS, in 2011 the City Council adopted Ordinance Ord. No. 641, which added Chapter 9.32 to the Arroyo Grande Municipal Code regulating Mobile Vending; and WHEREAS, in 2018 the State Legislature enacted the Safe Sidewalk Vending Act, SB 946 (Statutes 2018, Chapter 459) added Sections 51036 et. Seq. to the Government Code, which set forth limitations on the ability of local authorities to prohibit or regulate sidewalk vendors, as defined in the Act; and WHEREAS, the new State law does permit local authorities to establish regulations on sidewalk vendors to protect valid health, safety and welfare concerns; and WHEREAS, the activities of sidewalk vendors, by setting up stands on streets or moving from place to place as a roaming vendor, have the potential for vendors to engage in illegal activities, including but not limited to sale of illegal substances or merchandise and sale of counterfeit products, which necessitates background checks for vendors to assure that any past improprieties are disclosed to the permitting authority; and WHEREAS, the activities of sidewalk vendors have the potential to cause injury to persons or property by the manner in which they are sited, or by their movement on sidewalks that are otherwise used by the traditional activities of pedestrians and vehicles on adjacent streets for access, transport, delivery of merchandise to local businesses, exercise and related activities; and WHEREAS, sidewalk vending activities have significant potential to be physically incompatible with the general public’s traditional use of sidewalks, necessitating siting restrictions to protect the public health, safety and welfare to ensure sidewalks are safe and passable, especially for pedestrians and the physically disabled, as well as requiring insurance so that any injuries caused by the activities of sidewalk vendors are financially secured; and WHEREAS, the City Council desires to amend its existing Mobile Vending regulations contained in Chapter 9.32 to limit their application to vending from vehicles, and also adopt a new Chapter 9.33 in order to enact regulations, consistent with SB 946 to regulate sidewalk vendors. Item 11.b. - Page 5 ORDINANCE NO. PAGE 2   NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. The above recitals and findings are true and correct and are incorporated herein by this reference. SECTION 2. Chapter 9.32 of Title 9 of the Arroyo Grande Municipal Code is retitled “Mobile Vending from Vehicles” and is hereby amended in its entirety to read as follows: 9.32.010 - Purpose and intent. The city finds that the vending of produce, prepared or prepackaged foods, goods, and/or wares from vehicles at semi-permanent locations on public streets or alleys and on private property may pose unsafe conditions and special dangers to the public health, safety and welfare of the residents of the city. It is the purpose of this chapter to provide clear and concise regulations governing these types of vehicular mobile vending operations to prevent safety, traffic and health hazards, and to preserve the peace, safety and welfare of the city and its residents. 9.32.020 - Applicability. Except as otherwise provided in this chapter, it is unlawful for any person or entity to act as a vendor or employee of a mobile vehicle vendor, within the city without having first obtained a mobile vehicle vending or mobile vehicle vending employee permit issued pursuant to this chapter. A. Number of Permits: A mobile vehicle vending permit shall be required for the operation of each vending vehicle regardless of ownership or management. B. Term of Permit; Renewal: Any mobile vehicle vending permit or mobile vehicle vending employee permit issued pursuant to this chapter shall automatically expire one year from the date of issuance, unless an earlier expiration date is noted on the permit. The permit may be renewed by the chief of police subject to compliance with the standards established in this chapter and payment of all applicable fees. C. Transferability: A mobile vehicle vending or mobile vehicle vending employee permit is not transferable to any other entity or person and is valid only as to the original applicant. D. Exemptions: A mobile vehicle vending permit is not required for the following activities: 1. The sale of agricultural products on the site where the product is grown; 2. Catering for private parties held exclusively on private property and not open to the general public; Item 11.b. - Page 6 ORDINANCE NO. PAGE 3   3. Permitted community events such as, but not limited to, farmer’s markets, crafts fairs, street fairs, and other special events approved and designated by the city; and 4. Delivery activities of any establishment with a fixed place of business, which only delivers its products, services, or goods to a specified address in response to a customer request, order, or invoice previously placed through that fixed place of business. 9.32.030 - Definitions. For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section: A. "Developed site" means a site that has gravel, paved concrete or asphalt parking surface and paved ingress and egress that meets city standards. B. "Vending" means selling, offering for sale, or displaying or dispensing any food, beverages, goods, wares, or merchandise from any vending vehicle. C. "Vending vehicle" means a mobile food facility, temporary food facility, catering truck, or other motorized conveyance upon which food, beverages, goods, wares, or merchandise is sold, offered for sale, or distributed on any public street, alley or private property. D. "Vendor" means any individual or entity who sells and makes immediate delivery, or offers for sale and immediate delivery, any food, beverages, goods, wares, or merchandise from a vending vehicle, including employees of mobile vehicle vendors. 9.32.040 - Review authority. Mobile vehicle vending and mobile vehicle vending employee permits shall be approved or denied by the chief of police, in compliance with this chapter. 9.32.050 - Application filing and processing. Applicants for a mobile vehicle vending permit under this chapter, and persons working as an employee of a mobile vehicle vendor shall file with the chief of police an application in writing on a form to be furnished by the city, which shall give the following information: A. A copy of the applicant's and/or operator's, or employee's Government issued form of identification; B. Name, address(es), and telephone number(s) of the applicant; Item 11.b. - Page 7 ORDINANCE NO. PAGE 4   C. A statement of the type of food, beverages, or merchandise to be sold; D. A copy of a current registration of vending vehicle; E. Intended locations, days and hours of operation; F. For vending on private property: 1. Letter of consent signed by the property owner or authorized representative; 2. A site plan, drawn to scale and with dimensions, indicating the location of all existing buildings, structures, driveways, parking spaces, traffic controls, and improvements and the location where the proposed vending activity will be located on site, and demonstrating that there will be adequate ingress and egress to the site and that the mobile vending activity will have adequate parking and not utilize parking otherwise required for any business located at the site; G. A copy of current San Luis Obispo County health permit(s); H. Proof of a current Arroyo Grande business license or application for business license; I. Evidence of general liability and automobile liability insurance; and J. Four color photographs showing different exterior views of the vending vehicle. 9.32.060 - LiveScan. Prior to the issuance of a mobile vehicle vending permit or mobile vehicle vending employee permit, the applicant shall cause to be filed with the city police department a LiveScan background check conducted by the California Department of Justice within the previous six months of application for a mobile vending permit. The city police department shall furnish each applicant with a LiveScan Request form for use at any LiveScan vendor location. 9.32.070 - Permit processing fee. At the time the application or renewal of a mobile vehicle vending or mobile vehicle vending employee permit is filed with the chief of police, the applicant shall pay a fee sufficient to cover the cost to the city of processing the application. The amount of the fee shall be set by resolution of the city council. 9.32.080 - Permit review and decision. A. Upon acceptance of a properly filed mobile vehicle vending or mobile vehicle vending employee permit application and receipt of an acceptable LiveScan report issued by the Item 11.b. - Page 8 ORDINANCE NO. PAGE 5   Department of Justice, the chief of police shall conduct a preliminary investigation to determine compliance with this chapter and shall make such determination within no more than thirty (30) days of acceptance to approve or deny the application. The chief of police shall provide the applicant with written notice of his or her decision to the address indicated in the application. B. The chief of police may deny an application for a mobile vehicle vending or mobile vehicle vending employee permit if he or she makes any of the following findings: 1. The applicant has failed to pay the application permit fee. 2. The applicant has made one or more material misstatements in the application for a permit. 3. The applicant does not have a valid California driver's license, a city business license, current vehicle registration and/ or general liability and/or automobile liability insurance. 4. The applicant's vending operation is inconsistent with the standards, conditions and requirements of this chapter. 5. The applicant has been found in violation of this chapter at any time during the previous three-year period. 6. Within three years of the date of the application, the applicant has been convicted in a court of competent jurisdiction or pled nolo contendere to any misdemeanor or felony offense which relates directly to the operation of mobile vehicle vending or any felony offense involving the sale of a controlled substance specified in California Health and Safety Code sections 11054, 11055, 11056, 11057 or 11058, or at the time of application is on probation or parole for any offenses set forth in this section for an offense that was committed within three years of the date of the application. C. If the application is denied, the reasons for disapproval shall be noted on the application, and the applicant shall be notified that his or her application is denied and that no permit will be issued. Notice shall be mailed to the applicant at the address shown on the application form. D. If the chief of police approves the applicant's mobile vehicle vending or mobile vehicle vending employee permit, he or she shall endorse his or her approval on the application and shall, upon payment of the prescribed fee, deliver the mobile vehicle vending or mobile vehicle vending employee permit to the applicant. 9.32.090 - Indemnification As a condition of issuance of a mobile vehicle vending permit, the vendor shall agree to indemnify, hold harmless, and defend the city and its officials, employees and agents Item 11.b. - Page 9 ORDINANCE NO. PAGE 6   from and against any and all liability, damage and/or loss arising from activities by the vendor, its employees and agents. 9.32.100 - Standards, conditions, requirements. All vendors shall comply with the following standards, conditions and requirements: A. Location: 1. Vending shall occur only on a private developed site zoned Gateway Mixed-Use, Fair Oaks Mixed-Use, Highway Mixed-Use, Industrial Mixed-Use, Office Mixed-Use, Public Facility, or locations consistent with Vehicle Code § 22455; 2. No vending shall occur within ten (10) feet of a fire hydrant, fire escape, building entrance, bus stop, loading zone, handicapped parking space or access ramp, or driveway. A greater distance or separation from other uses may be required, under the permit, in order to preserve line-of-sight, or for other safety reasons; 3. No vending shall occur within three hundred (300) feet of the grounds of any elementary or junior high school; 4. No vending shall occur within five hundred (500) feet of a freeway entrance or exit; 5. Vendors shall not stop in any single location for more than one and one-half hours in any twenty-four-hour period. 6. Vending at the Soto Sports Complex or any other city park, recreational facility, or sports complex is permitted only upon the prior written authorization from the Arroyo Grande Recreation and Maintenance Services Division. B. Design and Operating Standards: 1. Condition/appearance of site: a. The vendor shall maintain the area within which vending activities occur in a clean, safe and sanitary condition; b. No tables, chairs, fences, shade structures, other site furniture, or any freestanding signs shall be permitted in conjunction with the vendors vending activities; c. Should any site improvements be needed for ongoing vending operations, the vendor shall be required to apply for appropriate permits to ensure building and public safety and consistency with applicable building and zoning regulations; d. The vendor shall not attach or use any water lines, electrical lines or gas lines during vending operation; and Item 11.b. - Page 10 ORDINANCE NO. PAGE 7   e. Exterior storage or display of refuse, equipment, materials, goods, wares, or merchandise associated with the vendor is prohibited. 2. Condition/appearance of vending vehicle: a. The vendor shall display, in plain view and at all times, current permits and licenses in or on their vending vehicle; b. Any vending vehicle shall be clean and in good repair; c. The vendor shall not discharge items from any vending vehicle onto the sidewalk, gutter, storm inlets, or streets; and d. The width, length, and height of all vending vehicles and devices shall be subject to review as part of consideration of the mobile vending permit. 3. Hours of operation: Vending shall be conducted within the hours of 9:00 a.m. and not later than 9:00 p.m. All activities shall comply with the city's noise ordinance. 4. Lighting: The vendor shall provide adequate lighting to ensure customer safety. Lighting shall be directed downwards and away from public streets and adjacent properties. 5. Obstructions, hazards: No vendor shall obstruct vehicular traffic, bicycle traffic, sidewalk pedestrian traffic, or accessibility to vehicles parked adjacent to a curb, and shall not create public health or safety hazards. 6. Parking: Prior to issuance of the mobile vehicle vending permit, the city shall confirm that an acceptable area for customer parking exists, or shall specifically exempt the vendor from this requirement due to the nature and/or location of the use. If the vending will occur on private property the city shall determine that there will be adequate ingress and egress to the site, and that the mobile vending activity will have adequate parking and not utilize parking otherwise required for any business located on the site. Parking for the vendor shall be specified in compliance with the mobile vending permit. The vendor shall not indicate exclusive roadway parking or reserve any public parking area for the vendor's customer parking. 7. Exceptions: Exceptions to increase length of time for vending in a single location or daytime hours for special events are to be filed with the chief of police and considered on an individual basis. 8. Other applicable regulations: Each vendor shall comply at all times with all applicable federal, state, county, city and any other governmental requirements. Item 11.b. - Page 11 ORDINANCE NO. PAGE 8   9.32.110 - Denials, suspension, revocation, requests for additional information. A. A mobile vehicle vending or mobile vehicle vending employee permit issued under this chapter may be suspended or revoked by the chief of police for any of the following causes: 1. Fraud or misrepresentation in the course of vending; 2. Fraud or misrepresentation in the application for the mobile vending permit; 3. Vending in violation of this chapter; or 4. Vending in a manner that creates a public nuisance or constitutes a danger to the public. 9.32.120 - Appeals to city manager or his or her designee. In the event that any applicant or permittee desires to appeal from any order, revocation or other ruling of the chief of police or any other official of the city, made under the provisions of this chapter, such applicant or any other person aggrieved shall have the right to appeal such action or decision to the city manager, or his or her designee, within fifteen (15) days after the notice of the action or decision has been mailed to the person's address as shown on the permit application. An appeal shall be taken by filing with the police department a written appeal statement setting forth the grounds for the appeal. The chief of police shall transmit the written statement to the city manager within ten (10) days of its filing and the city manager shall set a time and place for a hearing on appeal. A hearing shall be set not later than sixty (60) days from the date of filing of the applicant's written appeal statement with the police department. Notice of the time and place of the hearing shall be given to the appellant in the same manner as provided for the mailing of notice of suspension or revocation. The decision of the city manager, or his or her designee, on the appeal shall be final and binding on all parties concerned. 9.32.130 - Violations. Any person who violates a provision of this chapter is guilty of a separate offense for each day or part of a day during which the violation is committed, continued or permitted. Any person who violates any provision in this chapter shall be guilty of a misdemeanor. SECTION 3. Chapter 9.33, titled “Sidewalk Vending” is hereby added to Title 9 of the Arroyo Grande Municipal Code to read as follows: 9.33.010 – Purpose, intent and findings. Item 11.b. - Page 12 ORDINANCE NO. PAGE 9   The city council finds that the vending of produce, prepared or prepackaged foods, goods, and/or wares on sidewalks may pose unsafe conditions and special dangers to the public health, safety and welfare of the residents of the city. It is the purpose of this chapter to provide clear and concise regulations, pursuant to the authority contained in Government Code Section 51038, to regulate sidewalk vendors to prevent health hazards, and to preserve the safety and welfare of the city and its residents. The city council further finds that the activities of sidewalk vendors, who set up stands on streets or move from place to place as a roaming vendor, have the potential for vendors to engage in illegal activities, including but not limited to the sale of illegal substances or merchandise and the sale of counterfeit products, which necessitates background checks for vendors to assure that any past improprieties are disclosed to the permitting authority and in order to ensure the safety of residents and the merchantability of products sold by vendors without fixed places of business. Prohibiting sidewalk vendors within proximity of schools during school hours and pick up and drop off hours when children are present is necessary to protect the health and safety of school children, since vendors operating in close proximity to schools may attract unsupervised children to run into traffic to reach a vendor, exposing them to potential injury, Also, vending during pick up and drop off times could exacerbate traffic issues that typically occur when parents are picking up their children. Additionally, the activities of sidewalk vendors have the potential to cause injury to persons or property by the manner in which they are sited, or by their movement on sidewalks that are otherwise used by the traditional activities of pedestrians and vehicles on adjacent streets for access, transport, delivery of merchandise to local businesses, exercise and related activities. Sidewalks are of limited width, and vehicles park adjacent to them, and therefore the location of stationary vendors must be carefully evaluated on a case by case basis and regulated so they are an appropriate distance form street furniture, landscaping, do not create conflicts with people exiting parked vehicles or restrict the use of sidewalks. In the Arroyo Grande Village area, most businesses do not have loading areas, necessitating delivery vehicles to stop in the middle of Branch Street and unload deliveries and bring them into stores and restaurants. The statutorily mandated sidewalk vending activities that are the subject to this Chapter have significant potential to be physically incompatible with the general public’s traditional use of sidewalks, necessitating siting restrictions to protect the public health, safety and welfare to ensure sidewalks are safe and passable, especially for pedestrians and the physically disabled, as well as requiring insurance so that any injuries caused by the activities of sidewalk vendors are financially secured. Item 11.b. - Page 13 ORDINANCE NO. PAGE 10   9.33.020 - Applicability. Except as otherwise provided in this chapter, it is unlawful for any person or entity to act as a sidewalk vendor within the city without having first obtained a sidewalk vending permit issued pursuant to this chapter. A. Term of Permit; Renewal: Any sidewalk vending permit issued pursuant to this chapter shall automatically expire one year from the date of issuance, unless an earlier expiration date is noted on the permit. The permit may be renewed by the chief of police subject to compliance with the standards established in this chapter and payment of all applicable fees. B. Transferability: A sidewalk vending permit is not transferable to any other entity or person and is valid only as to the original applicant. 9.33.030 - Definitions. For the purposes of this chapter, the terms “sidewalk vendor,” “roaming sidewalk vendor” and “stationary vendor” shall have the following meanings respectively as ascribed to them by Government Code Section 51036: A. “Sidewalk vendor” means a person who sells food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian path. B. “Roaming sidewalk vendor” means a sidewalk vendor who moves from place to place and stops only to complete a transaction. C. “Stationary sidewalk vendor” means a sidewalk vendor who vends from a fixed location. 9.33.040 - Review authority. Sidewalk vending permits shall be approved or denied by the chief of police, in compliance with this chapter. 9.33.050 - Application filing and processing. Applicants for a sidewalk vending permit under this chapter shall file with the chief of police an application in writing on a form to be furnished by the city, which shall give the following information: A. A copy of the applicant's and/or operator's California driver’s license or identification number, an individual taxpayer identification number or a municipal identification number. No social security number shall be required of an applicant, and the number Item 11.b. - Page 14 ORDINANCE NO. PAGE 11   collected shall not be available to the public for inspection, is confidential, and shall not be disclosed except as required to administer the permit or licensure program or comply with a state law or state or federal court order B. A passport size photograph of the applicant. C. Name and current mailing address of the applicant. D. If the applicant is an agent of an individual, company, partnership or corporation, the name and busses address of the principal. E. A statement of the type of food, beverages, or merchandise to be sold. F. Intended locations, days and hours of operation. G. If the applicant is seeking to operate as a stationary vendor from a fixed location, the application shall contain the proposed location, marked by major cross streets, and either the north, south, east or west side of the street, and a photo or sketch of that location. Applications for roaming sidewalk vendors in residential areas shall contain a sketch of the proposed route that the vendor will travel. H. A copy of current San Luis Obispo County health permit(s) if the sidewalk vendor proposes to sell food or beverages. I. A sidewalk vendor who sells any type of edible substance or beverage shall provide evidence of completion of a food handler course and provide a copy of the course completion certificate. J. The seller’s permit number of a current valid California Department of Tax and Fee Administration seller’s permit. K. Proof of a current Arroyo Grande business license or application for business license. L. Evidence of general liability insurance. M. Certification by the applicant that to his or her knowledge and belief, the information contained in the application is true and correct. 9.33.060 - LiveScan. Prior to the issuance of a sidewalk vending permit the applicant shall cause to be filed with the city police department a LiveScan background check conducted by the California Department of Justice within the previous six months of application for a sidewalk vending permit. The city police department shall furnish each applicant with a LiveScan Request form for use at any LiveScan vendor location. Item 11.b. - Page 15 ORDINANCE NO. PAGE 12   9.33.070 - Permit processing fee. At the time the application or renewal of a sidewalk vending permit is filed with the chief of police, the applicant shall pay a fee sufficient to cover the cost to the city of processing the application. The amount of the fee shall be set by resolution of the city council. 9.33.080 - Permit review and decision. A. Upon acceptance of a properly filed sidewalk vending permit application and receipt of an acceptable LiveScan report issued by the Department of Justice, the chief of police shall conduct a preliminary investigation to determine compliance with this chapter and shall make such determination within no more than thirty (30) days of acceptance to approve or deny the application. The chief of police shall provide the applicant with written notice of his or her decision to the address indicated in the application. B. The chief of police may deny an application for a sidewalk vending permit if he or she makes any of the following findings: 1. The applicant has failed to pay the application permit fee. 2. The applicant has made one or more material misstatements in the application for a permit. 3. The applicant does not have a city business license and/ or general liability insurance. 4. The applicant's sidewalk vending operation is inconsistent with the standards, conditions and requirements of this chapter. 5. The applicant has been found in violation of this chapter at any time during the previous three-year period. 6. Within three years of the date of the application, the applicant has been convicted in a court of competent jurisdiction or pled nolo contendere to any misdemeanor or felony offense which relates directly to the operation of sidewalk vending or any felony offense involving the sale of a controlled substance specified in California Health and Safety Code sections 11054, 11055, 11056, 11057 or 11058, or at the time of application is on probation or parole for any offenses set forth in this section for an offense that was committed within three years of the date of the application. C. If the application is denied, the reasons for disapproval shall be noted on the application, and the applicant shall be notified that his or her application is denied and Item 11.b. - Page 16 ORDINANCE NO. PAGE 13   that no permit will be issued. Notice shall be mailed to the applicant at the address shown on the application form. D. In approving an application conditions may be imposed on sidewalk vendors, including but not limited to the following: 1. Stationary vendors. Based upon a review of the fixed location of a stationary sidewalk vendor’s proposed location, as submitted as part of its application, conditions shall be imposed on the siting of the vendor’s pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance to assure it will not create conflicts with pedestrians, delivery persons, disabled persons, vehicles parked on adjacent streets, and other uses in the vicinity of the proposed vendor’s fixed location. Such placement of stationary vendor restrictions may include, but not be limited to, distances from: a. marked crosswalks b. curb returns of unmarked crosswalks c. fire hydrants or other emergency facilities d. bus stops e. areas improved with lawn, flowers, shrubs, street trees or other landscaping f. street furniture, including but not limited to benches, refuse containers, and decorative pottery g. driveways or driveway aprons h. outdoor dining or patio dining areas i. City owned property without prior City approval 2. Roaming Vendors. Based upon the roaming sidewalk vendor’s application and any proposed route for vending in residential areas, the roaming vendor’s activities shall be conditioned as necessary to protect the health, welfare and safety of the public, and the public’s use of sidewalks along the route. E. If the chief of police approves the applicant's sidewalk vending permit, he or she shall endorse his or her approval on the application and shall, upon payment of the prescribed fee, deliver the sidewalk vending permit to the applicant. Item 11.b. - Page 17 ORDINANCE NO. PAGE 14   9.33.090 - Indemnification. As a condition of issuance of a sidewalk permit, the vendor shall agree to indemnify, hold harmless, and defend the city and its officials, employees and agents from and against any and all liability, damage and/or loss arising from activities by the vendor, its employees and agents. 9.33.100 - Standards, conditions, requirements. All vendors shall comply with the following standards, conditions and requirements: A. Location. In addition to locational restrictions imposed on a case-by-case review of the sidewalk vendor’s application, proposed location and/or route, in accordance with Section 9.33.080(D): 1. No vending shall occur within 500 feet of a freeway entrance or exit or three hundred (300) feet of the grounds of any public or private school site during school hours, and not within one hour before or one hour after school drop off and pick up operations.  2. Parks. The following shall apply to vending in parks by sidewalk vendors: i. As required by Government Code Section 51038(b)(2) sidewalk vendors may sell food or merchandise in a park owned or operated by the City, except stationary sidewalk vendors may not conduct vending in any park if the City has signed an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire in that park. ii. Sidewalk vendor permits for vendors seeking to operate in a park may include additional requirements regulating the time, place, and manner of sidewalk vending activities in a City park that are: a. Directly related to objective health, safety, or welfare concerns. b. Necessary to ensure the public’s use and enjoyment of natural resources and recreational opportunities. c. Necessary to prevent an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of the park. 3. Stationary sidewalk vendors are prohibited from operating in areas that are zoned exclusively residential. Item 11.b. - Page 18 ORDINANCE NO. PAGE 15   4. Sidewalk vendors are prohibited from operating in areas located within the immediate vicinity of a permitted certified farmers’ market during the limited operating hours of that certified farmers’ market. 5. Sidewalk vendors are prohibited form operating in areas located within the immediate vicinity of a permitted swap meet during the limited operating hours of that swap meet. 6. Sidewalk vendors are prohibited from operating within the immediate vicinity of an area designated for a temporary special event or activity permit for special events, parades concerts and other activities issued by the City, including but not limited to the annual Strawberry Festival, Harvest Festival, Trick or Treat in the Village event, and Christmas Parade. If the City provides any notice, business interruption mitigation, or other rights provided to affected businesses or property owners affected by the special event, such notice, business interruption mitigation, or other rights shall also be provided to any sidewalk vendors specifically permitted to operate in the area, if applicable. The prohibition of sidewalk vendors pursuant to this paragraph shall only be effective for the limited duration of the temporary special permit. B. Design and Operating Standards: 1. Condition/appearance of site: a. The vendor shall maintain the area within which vending activities occur in a clean, safe and sanitary condition; b. No tables, chairs, fences, shade structures, other site furniture, or any freestanding signs shall be permitted in conjunction with the vendors vending activities; c. The vendor shall not attach or use any water lines, electrical lines or gas lines during vending operation; and d. Food vendors must provide a trash receptacle for customers and must ensure proper disposal of customer trash. The trash receptacle must be of a sufficient size to accommodate customer trash without resort to use of existing City provided trash receptacles located on any block for use by the general public. A vendor may not dispose of customer trash in existing trash City provided receptacles. 2. Condition/appearance of vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack or other non-motorized conveyance used for vending: a. The vendor shall display, in plain view and at all times, current permits and licenses in or on their vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or non-motorized conveyance.; Item 11.b. - Page 19 ORDINANCE NO. PAGE 16   b. Any vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or non-motorized conveyance shall be clean and in good repair; c. The vendor shall not discharge items from any vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or non-motorized conveyance onto the sidewalk, gutter, storm inlets, or streets; and d. The width, length, and height of all vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or non-motorized conveyance shall be subject to review as part of consideration of the sidewalk vending permit as it may relate to health, safety and welfare concerns. 3. All activities shall comply with the city's noise ordinance. 4. Lighting: Stationary sidewalk vendors who operate after daylight hours shall provide adequate lighting that may be necessary to ensure customer safety. Lighting shall be directed downwards and away from adjacent properties. 5. Obstructions, hazards: No sidewalk vendor shall conduct its operations in a manner that would obstruct vehicular traffic, bicycle traffic, sidewalk pedestrian traffic, or accessibility to vehicles parked adjacent to a curb, and shall not create public health or safety hazards. 6. Roaming vendors vending in residential areas shall move continuously, except when conducting a sale, which must last no more than fifteen (15) minutes. In no event shall a roaming vendor conduct its operations in a residential area in such a manner to constitute operating in a fixed location. 7. No vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack or other nonmotorized conveyance shall be chained or fastened to any pole, sign, tree or other object in the public right-of-way or left unattended. 8. Vending of illegal or counterfeit merchandise is prohibited. 9. No sidewalk vendor shall conduct its operations or place its vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack or other nonmotorized conveyance in such a manner that it impedes the flow of pedestrian traffic by reducing the clear space to less to less than six (6) feet, or impedes access to or use of abutting property, including but not limited to residences and places of business. 10. Sidewalk vendors shall comply with the federal Americans with Disabilities Act of 1999 and other applicable disability access standards. Item 11.b. - Page 20 ORDINANCE NO. PAGE 17   11. Other applicable regulations: Each vendor shall comply at all times with all applicable federal, state, county, city and any other governmental requirements. Notwithstanding any specific provisions or prohibitions contained in this Chapter, no vendor shall install, use, or maintain a vending pushcart, stand, display, pedal-driven cart, wagon, showcase, rack or other nonmotorized conveyance in such a manner that its placement endangers the safety of persons or property. 12. To prevent unintended rolling or slipping, a sidewalk vendor is prohibited from operating a pushcart, pedal-driven cart, wagon, or other non-motorized conveyance on a public right-of-way with a slope greater than five percent. 13. Sidewalk vending hours’ limitations in areas zoned for nonresidential use will be as restrictive as any limitations on hours of operations imposed on other businesses or uses on the same street. Vending by roaming sidewalk vendors in residential areas shall be limited to the hours of 9:00 a.m. through 5:00 p.m. 14. The overall number of sidewalk vendors permitted to operate within the City or specified areas of the City may be limited on a case by case basis, based upon specific facts related to the operations of sidewalk vendors in the City or area that relate to objective health, safety, or welfare concerns. An overconcentration will be found to exist where based, upon objective facts and circumstances, the number of sidewalk vendors unreasonably interferes with the public’s ability to enjoy outdoor spaces or unreasonably interferes with the unique character of the area. 9.33.110 - Denials, suspension, revocation, requests for additional information. A. A sidewalk vending permit issued under this chapter may be suspended or revoked by the chief of police for any of the following causes: 1. Fraud or misrepresentation in the application for the mobile vending permit; 2. Vending in violation of this chapter; or 3. Vending in a manner that creates a public nuisance or constitutes a danger to the public. 9.33.120 - Appeals to city manager or his or her designee. In the event that any applicant or permittee desires to appeal from any order, revocation or other ruling of the chief of police or any other official of the city, made under the provisions of this chapter, such applicant or any other person aggrieved shall have the right to appeal such action or decision to the city manager, or his or her designee, within fifteen (15) days after the notice of the action or decision has been mailed to the person's address as shown on the permit application. An appeal shall be taken by filing Item 11.b. - Page 21 ORDINANCE NO. PAGE 18   with the police department a written appeal statement setting forth the grounds for the appeal. The chief of police shall transmit the written statement to the city manager within ten (10) days of its filing and the city manager shall set a time and place for a hearing on appeal. A hearing shall be set not later than sixty (60) days from the date of filing of the applicant's written appeal statement with the police department. Notice of the time and place of the hearing shall be given to the appellant in the same manner as provided for the mailing of notice of suspension or revocation. The decision of the city manager, or his or her designee, on the appeal shall be final and binding on all parties concerned. 9.33.130 - Violations. In accordance with the requirements of Government Code Section 51039 a violation of this chapter is punishable as follows: A. An administrative fine not exceeding one hundred dollars ($100) for a first violation. B. An administrative fine not exceeding two hundred dollars ($200) for a second violation within one year of the first violation. C. An administrative fine not exceeding five hundred dollars ($500) for each additional violation within one year of the first violation. D. The permit issued to a sidewalk vendor pursuant to this chapter may be rescinded for the term of that permit upon the fourth violation or subsequent violations. E. Vending without a sidewalk vending permit shall be punishable by the following in lieu of the administrative fines set forth in sections A-D above: 1. An administrative fine not exceeding two hundred fifty dollars ($250) for a first violation. 2. An administrative fine not exceeding five hundred dollars ($500) for a second violation within one year of the first violation. 3. An administrative fine not exceeding one thousand dollars ($1,000) for each additional violation within one year of the first violation. Item 11.b. - Page 22 ORDINANCE NO. PAGE 19   F. Administrative fines shall be processed in accordance with the requirements of Government Code Section 51039 with regards to possible reductions and the deposit of proceeds. G. When assessing an administrative fine pursuant to this section, consideration shall be taken of the person’s ability to pay the fine. The local authority shall provide the person with notice of his or her right to request an ability-to-pay determination and shall make available instructions or other materials for requesting an ability-to-pay determination. The person may request an ability-to-pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program. If the person meets the criteria described in subdivision (a) or (b) of Government Section 68632, the local authority shall accept, in full satisfaction, 20 percent of the administrative fine imposed pursuant to subdivision (a). H. Persons subject to fines under this section may complete community service in lieu of paying the total administrative fine, and the City may waive the administrative fine, or may offer an alternative disposition. 9.33.140 - Administrative Hearing—Procedures A. An administrative appeal hearing shall be scheduled and conducted within sixty calendar days of the date a timely and complete request is received by the office of the city clerk by any person who is assessed an administrative fine under this Chapter. A person who files a request for an administrative hearing to contest an administrative fine (hereinafter, “appellant”) shall be notified in writing by first class mail of the date, time, and location of the hearing at least ten calendar days prior to the date of the hearing. The failure of an appellant to receive a properly addressed notice shall not invalidate the citation or any hearing or City action or proceeding conducted pursuant to this Chapter. B. A hearing officer shall be appointed by the City Manager to serve as the hearing officer for an administrative hearing. The hearing officer may be a department head, or his or her designee, or other disinterested person. The employment, performance evaluation, compensation and benefits of the hearing officer, if any, shall not be directly or indirectly conditioned upon the determinations or the amount of penalties upheld or made by the hearing officer. At the place and time set forth in the notification of administrative hearing, the hearing officer shall hear and consider the testimony of the issuing officer, the appellant(s), Item 11.b. - Page 23 ORDINANCE NO. PAGE 20   and/or their witnesses, as well as any documentary evidence presented by these persons concerning the alleged violation(s). C. Administrative hearings are informal, and formal rules of evidence and discovery do not apply. The City bears the burden of proof to establish a violation and responsibility therefor by a preponderance of evidence. The issuance of allegations of violations of this Chapter shall constitute prima facie evidence of the violation and the enforcement officer who issued allegation is not required to attend or participate at the hearing. The appellant(s), and officer, if present, shall have an opportunity to present evidence and witnesses and to cross-examine witnesses. An appellant may bring an interpreter to the hearing at the appellant’s sole expense. The hearing officer may question any person who presents evidence or who testifies at any hearing. D. An appellant may appear at the hearing in person or by written declaration executed under penalty of perjury. Said declaration and any documents in support thereof shall be tendered to and received by the office of the City Clerk at least three City business days prior to the hearing. If the appellant fails to attend the scheduled hearing, or to otherwise submit a written declaration in a timely manner, the hearing officer shall cancel the hearing and send a notice thereof to the appellant(s) by first class mail to the address(es) stated on the appeal form. A cancellation of a hearing due to nonappearance of the appellant shall constitute the appellant’s waiver of the right to appeal. In such instances, the imposition of the administrative fine shall be deemed final. E. Hearings may be continued once at the request of an appellant or the officer who issued the citation. The hearing officer may also continue the hearing for cause. 9.33.150 - Hearing Officer Decision—Right of Appeal Therefrom A. After considering all of the testimony and evidence submitted at the hearing, the hearing officer shall issue a written decision to uphold or overturn the administrative fine and shall state the reasons therefor. If the administrative fine is upheld and the violation has not been fully corrected as of the date of the hearing, the hearing officer shall order correction thereof in the decision and provide a deadline to complete said action(s). The decision of the hearing officer shall be final, except for the right to appeal to the Superior Court pursuant to Government Code Section 53069.4 as further provided herein. If the administrative fine is upheld and the appellant did not deposit the fine at the time the appellant requested an administrative appeal hearing, the hearing officer shall also order the payment of the fine or an alternative disposition in accordance with Section 9.33.130, within twenty calendar days of the decision. Item 11.b. - Page 24 ORDINANCE NO. PAGE 21   B. The appellant(s) shall be served by first class mail with a copy of the hearing officer’s written decision. The date the decision is deposited with the U.S. Postal Service shall constitute the date of its service. The failure of an appellant to receive a properly addressed decision shall not invalidate any citation(s) or any hearing, City action or proceeding conducted pursuant to this chapter. C. Decisions of the hearing officer are, in accordance with Government Code Section 53069.4(b), appealable to the Superior Court within twenty days after the date of their service. Each decision shall contain a statement advising the appellant(s) of this appeal right and the procedures and court-filing fee for its exercise. An appellant shall serve a copy of the court filed notice of appeal on the office of the City Clerk, by personal service or first class mail within five calendar days of filing the original thereof. D. If a hearing officer’s decision is not appealed in a timely manner, the decision shall be deemed confirmed. E. The Superior Court is the sole reviewing authority and an appeal from a hearing officer’s decision is not appealable to the City Council. If a responsible person prevails on appeal, the City shall reimburse his or her filing fee, as well as the fine deposit in accordance with the court judgment. These monies shall be mailed to the responsible person within forty-five calendar days of the City’s receipt of a notice of judgment or ruling from the Superior Court clerk. SECTION 4. This Ordinance is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. SECTION 5. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage. SECTION 6. This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of Item 11.b. - Page 25 ORDINANCE NO. PAGE 22   competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. On motion by Council Member ______, seconded by Council Member _______, and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this ____ day of _______, 2019.   Item 11.b. - Page 26 ORDINANCE NO. PAGE 23   ______________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ______________________________________ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: ______________________________________ JIM BERGMAN, CITY MANAGER APPROVED AS TO FORM: ______________________________________ HEATHER K. WHITHAM, CITY ATTORNEY Item 11.b. - Page 27 THIS PAGE INTENTIONALLY LEFT BLANK Item 11.b. - Page 28