TO:
VIA: CITY ADMINISTRATOR
CITY COUNCIL
FROM:
DATE:
Placentia City Council
AGENDA REPORT
SECOND READING AND ADOPTION
Ord No. 0-2023-04 Date: 11/21/2023 Item No. 1.m.
First Reading and Approval: 11/7/2023
DIRECTOR OF DEVELOPMENT SERVICES Reviewed and Approved:
Department Hea...�1'- (1�/'1 /
Deputy City Clerk 1,/ /()
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SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA AMENDING SECTION 13.48.160 (TITLE 13 — VEHICLES & TRAFFIC) AND ADDING CHAPTERS 8.10 — SIDEWALK VENDING (HEALTH & SANITATION) AND 13.50 — SALES OF GOODS FROM VEHICLES (VEHICLES &
TRAFFIC), TO ESTABLISH A REGULATORY FRAMEWORK FOR THE SALES
OF FOOD AND MERCHANDISE FROM SIDEWALK VENDORS AND FOOD
TRUCKS
NOVEMBER 7, 2023
FISCAL
IMPACT: NONE
SUMMARY:
Due to the enactment of Senate Bill ("SB") 946 and 972 a few years ago concerning sidewalk vendors, the City is compelled to enact an ordinance which updates the Placentia Municipal Code ("PMC") so that it is consistent with state law. It should be noted that state law has greatly restricted what cities can regulate with regard to sidewalk vendors. This ordinance also updates the PMC with regard to food trucks since there are presently no comprehensive regulations for vendors who sell food from vehicles, other than obtaining a business license. Unlike sidewalk vendor regulations, there are no state laws which similarly restrict the cities' ability to regulate food trucks, which have become extremely popular and widespread throughout the County and State in recent years. PMC Section 13.48.160 (Vendors' wagons and pushcarts) is being amended since it will be replaced by the more comprehensive regulations contained in newly enacted Chapters 8.10 and 13.50.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the public hearing concerning Ordinance No. 0-2023-04; and
2. Receive the Staff report, consider all Public Testimony, ask any questions of Staff, and
3. Close the public hearing; and
4. Find that adoption of Ordinance No. 0-2023-04 is exempt from environmental review and direct Staff to file a Notice of Exemption once the Ordinance is adopted, pursuant to CEQA Section 15061(b)(3); and
1.m.
Nov 21, 2023
City Council Agenda
November 7, 2023
5. Waive full reading, by title only, and introduce for first reading, Ordinance No. 0-2023-04, an Ordinance of the City Council of the City of Placentia, California, finding that approval of the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(b)(3) and amending the Placentia Municipal Code, Section
13.48.160 (Title 13 — Vehicles & Traffic) and adding Chapters 8.10 — Sidewalk Vending (Health & Sanitation) and 13.50 — Sales of Goods from Vehicles (Vehicles & Traffic), to establish a regulatory framework for the sales of food and merchandise from sidewalk vendors and food trucks.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to:
Promote Community and Economic Development, Goal 3, as this item will serve to enhance Community Development and Economic Development efforts in general as it will provide options for outdoor vending operations. It will also result in the regulation of outdoor vending and food truck operations, which will promote said operations in an orderly and safe manner that benefits the entire community.
DISCUSSION/BACKGROUND:
This ordinance adds two new chapters to the Placentia Municipal Code. Chapter 8.10 adds a regulatory framework for sidewalk vendors and Chapter 13.50 adds a parallel regulatory scheme for mobile food vendors (food trucks). Both new chapters are aligned with one another, to some extent, but the state has imposed many more limitations on what cities can regulate with regard to sidewalk vendors, which explains why the regulations pertaining to food trucks are much stricter and more broad (e.g. food trucks are prohibited in the residential neighborhoods and parks and are limited to selling food only between 8 a.m. and 6 p.m., while sidewalk vendors are restricted from selling in commercial areas from midnight to 7 a.m. and from 10 p.m. to 7 a.m. in residential neighborhoods). In addition, while sidewalk vendors can only be issued administrative citations, food truck vendors can be cited, fined, or prosecuted.
The City's proposed regulations are comparable to neighboring cities. Staff reviewed ordinances of a number of cities, including: Dana Point, Fullerton, Brea, Pasadena, Huntington Beach, Garden Grove, Costa Mesa, Buena Park, Laguna Beach, Fountain Valley, Seal Beach, Los Alamitos, Stanton, Irvine, Westminster and Santa Ana.
Sidewalk Vendor Regulations — Chapter 8.10
Senate Bill ("SB") 946 and SB 972 were both signed into law and became effective January 1, 2019, and January 1, 2023, respectively. Both SB 946 and 972 (codified as California Government Code Section 51038 and 51039) have severely limited the authority of cities and counties to regulate sidewalk vendors.
This ordinance will update the City of Placentia Municipal Code to allow sidewalk vending, consistent with SB 946 and SB 972. The new law defines "sidewalk vendors" to include any person
City Council Agenda
November 7, 2023
who sells food or merchandise from a pushcart, wagon, or other non -motorized conveyance, or from his or her person, while on a public sidewalk or other pedestrian path. A sidewalk vendor may be "stationary" or "roaming." Stationary sidewalk vendors are those who operate from a fixed location, while roaming sidewalk vendors move from place to place and stop only to complete a transaction. The statutory requirements apply to both stationary and roaming sidewalk vendors unless otherwise indicated.
California Government Code §§ 51038 and 51039 now prohibit cities from adopting regulations that do any of the following:
• Restrict the overall number of sidewalk vendors allowed to operate within the jurisdiction, except if directly related to objective health, safety, or welfare concerns. • Require sidewalk vendors to obtain the consent or approval of any nongovernmental entity or individual before selling goods or merchandise.
• Require sidewalk vendors to operate within specific parts of the public right-of-way, except if directly related to objective health, safety, or welfare concerns. • Require sidewalk vendors to operate only in designated neighborhoods or areas, except if directly related to objective health, safety, or welfare concerns.
The City of Placentia may, however, regulate the time, place, and manner in which sidewalk vending is conducted, provided that such regulations are directly related to objective health, safety, or welfare concerns. Permissible regulations include, but are not limited to, the following:
• Limits on hours of operation, provided they are not unduly restrictive. In nonresidential areas, limitations cannot be more restrictive than the hours of operation imposed on other businesses on the same street.
• Requirements to maintain sanitary conditions.
• Requirements to ensure compliance with the Americans with Disabilities Act and other disability access standards.
• Requiring a sidewalk vending permit, business license, California Department of Tax and Fee Administration seller's permit, and/other licenses from other state or local agencies. • Requiring a sidewalk vendor to submit certain information on his or her application concerning operations.
• Prohibiting sidewalk vendors on private property.
• Requiring compliance with other generally applicable laws.
The newly enacted laws declare that perceived community animus or economic competition are not valid "objective health, safety, or welfare concerns" to justify the imposition of time, place, or manner restrictions. In addition, local authorities are precluded from prohibiting sidewalk vendors in public parks. A limited exception is allowed where a concessionaire has been granted an exclusive concession for the sale of food or merchandise. In such case, the city can only prohibit stationary sidewalk vendors but must still allow roaming sidewalk vendors. The city may impose additional time, place, and manner restrictions to sidewalk vending in public parks, so long as the restrictions meet at least one of the following criteria:
• They are directly related to health, safety, or welfare concerns.
City Council Agenda
November 7, 2023
• They are necessary to ensure the public's use and enjoyment of the park's natural resources and recreational opportunities.
• They are necessary to prevent an undue concentration of commercial activity that would unreasonably interfere with the park's scenic and natural character.
Cities may prohibit sidewalk vendors within the immediate vicinity of permitted special events, including, but not limited to, certified farmers' markets, filming permit, a parade, or an outdoor concert, during those events' operating hours. Sidewalk vendors cannot be cited, fined, or prosecuted for a violation of any rule or regulation that is inconsistent with the Government Code.
Even where a compliant sidewalk vending program is in place, cities are precluded from imposing criminal penalties. Instead, violations may be punished with administrative citations in the amounts set forth in the new Government Code Section 51039. No additional fines, penalties, or other financial conditions may be assessed, including for a failure to pay an administrative fine.
However, following a fourth violation of a local sidewalk vending regulation, a vendor's permit can be rescinded for the remainder of the term.
Once a citation is issued, the City is required to consider the person's ability to pay the fine and must notify the person of his or her right to request an ability -to -pay determination. Such a request may be made even after he or she has become delinquent or if his/her income is 125% or less of the current federal poverty guidelines, the City must accept payment of 20% as full satisfaction of the fine. For any citation, the local authority may accept community service in lieu of payment, waive the administrative fine, or offer an alternative disposition.
After SB 946 was enacted and local jurisdictions began revising their ordinances, it became clear that sidewalk vendors were still unable to get their businesses off the ground because of county health permit requirements, which were viewed as an impediment to the sidewalk vendor law. In addition, because the health permit from the county was a prerequisite to obtaining a city business license, many, if not all, sidewalk vendors were still not permitted to operate in cities. As a result, SB 972 was enacted to significantly alter the California Retail Food Code ("CalCode") relevant to the preparation and sale of food by sidewalk vendors and other compact mobile food operations ("CMFOs).
Chapter 8.10 reflects the new equipment, operational, and permitting requirements found in SB 972 to accommodate microbusinesses more realistically like sidewalk food vendors and bring entrepreneurs like sidewalk vendors into the formal economy. Some view these changes as "reduced" or "relaxed" health and sanitary requirements for sidewalk vendors. The law revises certain equipment requirements for CMFOs, streamlines permitting processes for CMFOs and the facilities that support them. Therefore, not only are cities impacted by the new sidewalk vendor laws, but also Health enforcement agencies (i.e., the Orange County Health Department) must similarly adopt/revise certain regulations that are consistent with the new state rules related to food facilities operating within their jurisdiction.
City Council Agenda
November 7, 2023
Consistent with SB 972, PMC Chapter 8.10 does not require a health permit from the County Health Department to allow sidewalk vendors and other compact mobile food operations with 25 square feet or less of display area that sell only the following:
• Bagged snacks.
• Cans of soda.
• Bottled water.
• Whole fruits.
• Whole vegetables.
• Canned goods that do not need refrigeration.
Many cities and counties currently require any business that sells food — including sidewalk vendors — to first obtain a health permit prior to applying for a local business license or vending permit that would allow them to conduct business in the jurisdiction. PMC Chapter 8.10 contains an exemption from health department permitting requirements for compact mobile food operations that sell only (i) prepackaged food that is not potentially hazardous; and (ii) whole produce.
Also consistent with the new state law, a sidewalk vendor's cart is defined as a "compact mobile food operation" or a mobile food facility that operates from an individual or from a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other non -motorized conveyance. The new law has relaxed equipment requirements for these pushcarts.
In addition, an unenclosed mobile food operation facility, a category that includes most sidewalk vendors and other compact mobile food operations, are permitted to conduct what is called, "limited food preparation" under CalCode. SB 972 expands the definition of limited food preparation to include several common and safe food preparation activities, thereby allowing a sidewalk vendor or other compact mobile food operation to conduct those food preparation activities "in the field" rather than at a commissary. "Limited food preparation," is defined as:
1. Slicing and chopping of non -potentially hazardous fruits and vegetables,
2. Pre-cooking food in an approved kitchen and "hot -holding" or "cold -holding" that food prior to service from a vending cart.
3. Reheating food that was previously prepared in an approved kitchen.
Section 8.10.120 (G), "Seizure of Goods" was included in Chapter 8.10 to address "objective health, safety, and welfare concerns" to prevent the situation which occurred in the City of Santa Ana last year. Many people who purchased food from unlicensed sidewalk vendors in Santa Ana, were the unsuspecting victims of food borne illness. By including a section on impounding perishable food which has sickened customers, the necessary tools will be provided to Placentia code enforcement officers along with County Health Department officials to seize the food before others become sick.
City Council Agenda
November 7, 2023
Sales of Goods from Vehicles (Regulations) — Chapter 13.50 The purpose of adding Chapter 13.50 is to align the sidewalk vending regulations with mobile food truck regulations, although state law has not limited cities' ability to enact stricter health, safety and welfare regulations pertaining to food trucks. Section 22455 of the California Vehicle Code authorizes municipalities to regulate the type of vending from motor vehicles and the time, place, and manner of vending from vehicles upon any street in order to promote public safety. Vending from mobile vending facilities on public streets creates the potential for safety hazards, such as, but not limited to, encouraging pedestrians to cross mid -block to purchase food. The actions of mobile food vendors can create safety risks to the public, especially pedestrians who become inattentive to vehicular traffic. Vendors who fail to park their mobile vending facilities on public streets in a safe manner during a transaction attract customers onto public roadways, creating further traffic and public safety hazards.
Chapter 13.50 applies to individual food trucks, which are usually found on public rights-of-way, often near construction sites or on private property, such as office buildings, commercial businesses (e.g., parking Tots of Best Buy, Lowe's, or Home Depot), and industrial areas and involve situations where the food truck generally stay in one place for less than 30 minutes. Food trucks participating in a Special Event (pursuant to PMC 23.81.015) must adhere to the requirements of Chapter 13.50 but must also abide by additional regulations when they participate under the umbrella of a special permit event.
Unlike the regulation contained in Chapter 8.10 (Sidewalk Vendors), Chapter 13.50 contains stricter regulations for food trucks. The City of Placentia is permitted to enact and enforce the following regulations concerning food trucks:
• Require mobile food trucks (in some instances) to obtain the consent or approval of any nongovernmental entity or individual before selling goods or merchandise on private property.
• Require mobile food trucks to operate within specific parts of the public right-of-way, to protect the public health, safety, or welfare concerns. • Require mobile food trucks to operate only in designated areas of the city and prohibit them from operating in residential neighborhoods or public parks. • Limits hours of operation of mobile food trucks, e.g. 8 a.m. to 6 p.m. • Enforce requirements to maintain sanitary conditions. • Requiring a mobile vending permit, business license, California Department of Tax and Fee Administration seller's permit, commercial general liability insurance and County Health Department permit.
• Require a mobile food vendor to submit certain information on his or her operations. • Require compliance with other generally applicable laws and are subject to being cited, fined, and prosecuted.
The regulations enacted by this ordinance will provide Code Enforcement officers the ability to protect the public health, safety, and welfare of its residents.
City Council Agenda
November 7, 2023
Fees
Currently, there are City fees that apply to certain outdoor vendors and food trucks. However, Staff recommends updating and modernizing those fees based on City Council action regarding the proposed Ordinance. Any changes to the fee schedule could be part of the annual Fiscal Year fee schedule adjustment or could be adopted by City Council at an earlier date.
CEQA:
In accordance with the California Environmental Quality Act (CEQA) and State and local Environmental Guidelines, Staff and the City of Placentia Planning Commission recommend that City Council adopt a Commonsense Exemption pursuant to Section 15061 (b)(3) of the State CEQA Guidelines in that the proposed project (Municipal Code Amendment) will not result in changes to the existing physical environment, and the physical environment will not be modified as a result of its adoption. Upon City Council adoption of a finding of a Commonsense exemption, a Notice of Exemption will be filed.
Prepared-by�
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aniel Pivaroff ``
Code Enforcement Supervisor
Reviewed and approved:
Damien R. Arrula
City Administrator
Attachment:
1. Ordinance No. 0-2023-04
Reviewed and approved:
Joseph M. Lambert
Director of Development Services