DATE: APRIL 12, 2022
DEPARTMENT: PUBLIC WORKS & COMMUNITY DEVELOPMENT
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
BY: ADRIANA ROBLES, CITY ENGINEER
FERNANDO RIZO-GONZALEZ, ASSISTANT ENGINEER
OSCAR RESENDIZ, ASSOCIATE PLANNER
CRYSTAL CASILLAS, BUSINESS NAVIGATOR
LORENZO SANCHEZ, CODE ENFORECEMENT MANAGER
ALEXIS MEJIA, ADMINISTRATIVE AIDE
TITLE: VENDOR PROGRAM UPDATE
RECOMMENDED MOTION:
A motion to receive and accept the Administrative Report on Vendor Program implementation. No further action is required.
RECOMMENDATION:
Staff recommends the City Council receive and accept the Administrative Report, which provides an update on Vendor Program implementation.
EXECUTIVE SUMMARY:
On September 21, 2021, City Council adopted an ordinance amendment to Article XVI of Chapter 20 (Vendor Ordinance) and an ordinance amending Chapter 37 of the Salinas Municipal Code. The ordinance amendment removed the cap of thirty-two (32) food truck permits, expanded the types of vendors, expanded vending operations options for food truck vendors (designated locations, roaming or private property), and revised regulations to ensure community health and safety. Since adoption of the ordinance amendments, staff from Public Works and Community Development have been meeting weekly to coordinate implementation and enhance community outreach. Shortly after the adoption of the ordinances, a series of informational workshops were held with current and perspective vendors to inform them of amendments, regulation changes and the permitting process. To date, a total of 58 food truck vendor permits have been issued, exceeding the number of designated locations, but falling short of the expectation based on the 300+ waiting list.
Implementation of Vendor Ordinance changes did not come without some heartache from those impacted. To gauge the impacts and general sentiment that the Ordinance amendment may have caused, staff conducted a number of surveys, including a pre- and post- ordinance amendment implementation survey of the general public, of food truck vendors, and conversations with SUBA.
BACKGROUND:
On June 22, 2021, City Council was presented with an ordinance amendment to Article XVI of Chapter 20 and an ordinance amending Chapter 37 to update the code governing street vendors. Due to a possible conflict of interest, Councilmember Osornio excused himself from the hearing, requiring a second reading of the proposed ordinance amendments. On September 21, 2021, City Council adopted an ordinance amendment to Article XVI of Chapter 20 and an ordinance amending Chapter 37 of the Salinas Municipal Code. The two ordinances became effective on October 21, 2021.
Following adoption, staff from Development Engineering (Public Works), Advanced Planning and Plan Implementation (Community Development) and Code Enforcement (Community Development) worked together to develop bilingual informational bulletins, update the Vendor Program website and held a series of community meetings to inform current and new vendors of the adopted ordinances. Meetings were held in the evening to accommodate vendors as much as possible and were primarily held in Spanish as meeting participants were mostly Spanish speaking. Meetings were held in person with the final meeting being held on Zoom.
Staff worked with current vendors that would be affected by the change in regulations, primarily those affected by the removal of vendor parking from the High Collision Corridors, at times meeting with them in the field to review possible new locations. Following assignment of all current vendors affected by the updated regulations and that had responded to staff requests to update their location, staff held a raffle on November 19, 2021, to assign the remaining designated locations. At the raffle, the attending vendors took turns in selecting the vendor (by vendor permit number) and the designated location. A map showing the final locations can be found on the city’s website: FOOD TRUCKS - Google Maps.
The final gathering with the food truck vendors came on December 10, 2021 at the PAL building. During this gathering, staff reviewed the food truck vendor agreement with the participants and typical enforcement issues related to food trucks. Five stations were set up with staff issuing permits, IDs and QR codes to applicants. This allowed 32 of the 42 remaining permits to be issued within a span of an hour and greatly reduced staff time to set up individual meetings to issue permits which typically take approximately a half hour per permit.
DISCUSSION:
Change does not come without challenges. This was true of the changes implemented as part of the Vendor Ordinance Amendment. The following discussion outline the impacts of the Vendor Ordinance Amendment on vendors, business owners, and City staff.
Food Truck Vendors
Food truck vendors have been in constant communication with Development Engineering staff since the implementation of the Vendor Ordinance Amendment. Vendors have presented staff with challenges concerning both roaming and designated locations. Challenges include the negative impact on sales and limited exposure to clientele due to the relocation of food truck vendors previously established at main corridors such as E Alisal St, Williams Rd and E Market St, now designated as High Collision Corridors. Additionally, new food truck vendors have identified the prohibition of vending on High Collision Corridors as a challenge since these are generally considered heavily frequented areas and prime locations. Other challenges identified include limited street parking for clients, poor lighting at vending locations and limited vending hours for food trucks designated at parks or as roaming.
Private Property
Since the approval of the ZCA Ordinance Amendment, the Business Navigator (APPI) has received several calls and emails from existing and new food truck vendors interested in the Conditional Use Permit process to establish the Food Truck use at a private property, see table below:
Table 1: Private Property Vendor Status
Vendor (New/Existing)
Private Property
Potential Challenge
Status
New Vendor
607 E Market St
Site has no landscaping
Insufficient space for required parking
Existing code violation(s)
Met with applicant, provided information.
No application submitted.
New Vendor
495 E Market St
Site has no landscaping
Insufficient space for required parking
Existing code violation(s)
Met with applicant, provided information.
No application submitted.
New Vendor (Property Owner)
60/62 N Sanborn Rd
Site has no landscaping
Insufficient space for required parking
Existing code violation(s)
Multiple lots under a parking agreement
Spoke with applicant, provided information.
No application submitted.
New Vendor
950/960/970 N Sanborn Rd
Site has no landscaping
Insufficient space for required parking
Three lots (lot consolidation)
Met with applicant’s architect, provided information.
Architect provided conceptual site plan. Staff provided feedback.
New Vendor
333 Main St
Application submitted and under review as part of a CUP to establish BINGO use Email and phone call – informed customer to see if food truck could be added to BINGO CUP
New Vendor
1050 S Main St
Site has limited landscaping
Insufficient space for required parking
In person conversation at the October 8th vendor update information meeting New (property owner) Vendor
No Address provided.
Caller indicated he owned a gas station in the city
Spoke with applicant, provided information.
No application submitted.
Existing vendor
548 E Alisal St
Lease agreement with property owner
Spoke with applicant, provided information.
No application submitted.
While the ZCA Ordinance Amendment opened an additional permitting avenue for food truck vendors on private property through a conditional use permit, it also came with some challenges for both food truck vendors and property owners. Some of the subject sites are “legal non-compliant”, since annexed from the County. Many of those sites would require investment in landscaping and parking enhancements to be in compliance with the Zoning Code requirements. Other sites are too small to comply with parking and landscape requirements.
Additional Vendor Challenges
Other challenges that have been reported to both the Business Navigator and Code Enforcement officer are the decrease in “sales” for existing vendors that have been relocated, the restrictive hours of operating at parks until sunset, complaints from nearby businesses and nearby residential units, and food truck customers not having adequate parking in the public right-of-way.
Brick and Mortar
Since the Ordinance Amendment, one restaurant/night club (500/504 E Alisal St) reported conflicts with the designated food truck location adjacent to their parking lot. It was reported that the food truck was in direct competition to their restaurant business due to the sale of food and then additionally reported that food truck customers were parking in the established business’s parking stalls and leaving trash.
Enforcement
Code Enforcement internally filled the Vendor Enforcement Officer position with Code Enforcement Officer (CEO) Perez. CEO Perez has prior knowledge and experience with the Vendor Ordinance and has recently worked closely with Engineering on the implementation of the Ordinance changes. Since the Vendor Ordinance update, Code Enforcement staff conducted over ten (10) outreach meetings with potential and current vendors to discuss the changes and enforcement actions that will take place for noncompliance. CEO Perez has been working with vendors, property owners, business owners, and internal staff on addressing violations. Administrative Aide Mejia created vendor Frequently Asked Questions (FAQs) flyers that have been distributed with pertinent information on the requirements to be a vendor in the City. To assist with monitoring compliance, Code Enforcement staff also implemented a QR code sticker that is to be placed on all vendor carts/vehicles. These stickers allow both the public and staff to identify the vendor, permit information, and permitted hours of operation. A Vendor Enforcement Hotline was created to better assist residents in submitting vendor complaints. The line is monitored daily by the CEO and has received over 90 complaints. Due to lack of compliance and after numerous attempts to gain compliance, a total of $3,300 in citations have been issued.
Common Challenges Frequently Identified by Code Enforcement Code Officer Safety Concerns
Vendors have become aggressive and confrontational with staff and have denied providing permits or identification. In such cases, it is impossible to identify the person without Police assistance to conduct a background check on the individual. Situations such as this, have the potential of putting the Vendor Enforcement Officer at risk. Based upon the last six-month enforcement interactions, Code Enforcement believes it would be beneficial to have at least two CEOs assigned to this program. In addition, the second officer will be able to work a split shift to meet the demands of day and evening enforcement. A Senior Code Enforcement Officer is being requested as part of the Divisions’ fiscal year (FY) 22-23 budget. Should it be approved, this new position could oversee and support vending enforcement.
High Vending Locations with Common Trends of Incompliance Two “specific” areas, the Foods Co and Cardenas shopping centers, are identified as having an influx of unpermitted flower and pushcart vendors. Unpermitted flower vendors have posed a safety challenge by vending within 200-feet of High Collision Intersections and vending on street medians. The observation is that the unpermitted vendors selling in this area are either from outside the city or unfamiliar with the Ordinance regulations. Vendors have been known to be dropped off at locations without identification or permits.
Limited Parking for Vendor Customers
Property owners have contacted the CEO and have been concerned with parking issues. Due to insufficient on street parking options for vendor customers in the public right of way, many have parked in spaces owned by nearby businesses, in front of fire hydrants, at red zones, and within driveway clearances.
Safety Concerns at Vending Locations
Conversations with food truck owners operating at parks identify that there is a safety concerns at park locations. It was reported on multiple occasions that vendors have been approached and threatened by transgressors and asked to sell drugs from their food truck. Another concern disclosed is the poor lighting of some of the designated locations which make them susceptible to the environment and surroundings.
Table 2: Common Challenges Faced Based Upon Vendor Type Vendor
Challenges faced
Flower
Badges/permit information not on hand
Aggressive towards staff
Unwilling to obtain permits
Working in unsafe place - the median
Setback requirements not met
Items not being placed on cart
Pushcart
Badges/permit information not on hand
Aggressive towards staff
Unwilling to obtain permits
Setback requirements not met
Selling on private property
Identification not available
Designated
Badges/permit information not on hand
Vending at unassigned location
Operating past time limit at parks
Operational requirements not met
Roaming
Badges/permit information not on hand
Operating past 8pm
Staying past 4-hour time limit
Staff Challenges
Staff also experienced challenges. Development Engineering is the permitting branch of Public Works. As such, they are tasked with review and issuance of encroachment permits, grading and stormwater quality permits, addressing, building permits (review only), development permits (review only), and vendor permits. As part of the Vendor Ordinance update, Development Engineering staff coordinated the striping and signage of the designated locations with maintenance staff, verified cat tracking and met with vendors to assign locations. At its peak, Development Engineering staff met with vendors at the Permit Center counter fifteen (15) times in a single day with a total of ninety-eight (98) visits in November 2021. At the same time, from October 21, 2021, to December 10, 2021, while staff was conducting meetings with vendors and establishing designed locations, a total of 381 permits were routed for review. The time staff dedicated to educating and assisting vendors resulted in a delay in the review of permits, with 65% of permits reviewed late, not within 10-day review timeframe, as opposed to 32% of permits reviewed late the months prior. These statistics affirmed the need for a designated staff person for vendor permits and assistance. Prior to the Ordinance Amendment, staff had relied primarily on a temporary staff member to provide support. During the timeframe above, two additional temporary employees provided support to issue vendor permits and provide support.
Gauging Sentiments
In order to understand the immediate impacts that the Vendor Ordinance changes may have caused, staff conducted a series of surveys and conversations with vendors, businesses and the general public.
General Public Survey
General public surveys were conducted pre- and post-Vendor Ordinance Amendment implementation, October 18, 2021 to November 18, 2021 and February 4, 2022 to March 11, 2022, respectively. At the time of the pre-ordinance amendment implementation survey there were twenty-nine (29) permitted food truck vendors operating (27 designated and two (2) roaming) compared to fifty-eight (58) permitted food truck vendors (fifty-two (52) designated and six (6) roaming) during the post-vendor ordinance amendment implementation survey timeframe.
Methodology
The survey was advertised and promoted through both the City of Salinas official Facebook and Instagram accounts.
Table 3: Participant’s Residence
ZIP Code of Residence
No. of Persons Surveyed
Pre-Ordinance Amendment
Post-Ordinance Amendment
93901
21 8
93905
13 9
93906
24 6
93907
3 2
N/A
2 1
TOTAL
78 26
Table 4: Major Findings of Public Surveys
Inquiry
Pre-Ordinance Amendment
Post-Ordinance Amendment
Reside in Salinas
81%
92%
Own a business in Salinas
4%
35%
Have eaten at a food truck in Salinas
75%
100%
Ate at a food truck for the first time since November 2021 -
31%
Food truck patrons who also purchased from nearby businesses on days they visit food trucks 74%
65%
Believe food trucks have no impact or are a positive impact on nearby businesses 69%
73%
Business owners who believe food trucks have no impact or are a positive impact on nearby businesses -
44%
How did you find out about the current food truck locations? -
46% Walking by
19% Vendor’s social
media
19% Friend/referral
3% City website
Believe food trucks would bring in visitors/tourists to Salinas 55%
46%
Believe food trucks are economically beneficial to Salinas 78%
73%
Food Truck Vendor Survey
City staff created a survey to assess the new locations for existing food truck vendors after a month of usage. The survey launched on February 4, 2022 and remained open through March 11, 2022. The survey was posted on the City’s Facebook page, shared via email. In addition, City staff reached out directly to the designated food truck locations via telephone to increase input.
Food Truck Vendor Survey Major Findings
City staff received fifteen (15) survey submittals making up twenty-eight (28) food trucks of the fifty-eight (58) permitted. This includes food truck owners that may own more than one food truck.
Table 5: Major Findings of Food Truck Vendor Survey
Questions
Results
Are you finding your food truck location to be profitable? More than you expected/less than you expected before you began? 67% Less profitable than expected
33% About Expected
0% More Profitable than expected
What is the estimated number of customers at the Designated Location/Roaming Location that you receive during the hours of operation? 73% ~ 1-30 customers
20% ~ 31-60 customers
7% ~ 61-90 customers
Does your site feel safe during hours of operation?
87% Owners Feel Safe
13% Owners Do Not Feel Safe
How clear is the permit application process?
93% Clear
7% Confusing
Was adequate education on rules and regulations provided prior to permit issuance? 93% Yes
7% No
Would you like any additional resources or workshops about the application process? No responses provided
For full survey results see attachment Microsoft Forms
Salinas United Business Association (SUBA)
Alejandro Chavez, SUBA Executive Director, met with the Vendor Ordinance Task Force to voice some of the concerns and challenges that both food truck vendors and brick and mortar SUBA members have had since the Ordinance was adopted.
Table 6: SUBA Members Concerns
Food Trucks
Brick and Mortar
Safety concerns (designated location)
near parks and residential areas
Tensions with restaurants due to new designated locations Parking conflicts, trash
Original 32 vendors think that their location should have been in a lottery for a location and then a 2nd lottery for the new 20 vendors** Inequity of Food Trucks
Pop-up markets with food vendors (puestos) that are popping up at various locations **Note: Staff gave the original 32 vendors the option to select their location, then the remaining 20 spots went into a lottery, some of the original vendors entered the lottery because they added an additional food truck – opportunity to expand) Next Steps
What Worked?
Outreach. Staff did not rely solely on informational bulletins and website updates to inform vendors of the changes. A series of in person and online meetings were held at times that were convenient for vendors.
Although a number of complaints have been made by vendors based on the location’s, lighting, safety and patronage, staff concluded, and were informed by a number of vendors, that the process for distributing designated locations was open and fair. Vendors were active participants in the assignment of the designated locations.
The issuance of permits is a time-consuming task that includes collecting and reviewing all required documentation and then by reviewing the vendor agreement and issuing the permit. By bringing most vendors together into a single event and with assistance of additional staff, the multiday task of issuing permits was completed in approximately an hour and a consistent message was provided to all vendors.
Moving forward staff plans to continue implementing the outreach strategies and processes developed during this implementation.
Collaboration and Coordination
As part of continued improvement, staff will be looking at ways to further streamline the vendor permitting process. There is still a delay in the current process due to vendor IDs being processed up to a week or more after the vendor applies for a permit.
An important lesson that staff has learned is that we can work well together when we keep open lines of communication and work towards a common goal, whether that is supporting staff issuing permits or supporting code enforcement with following up on possible violations. Staff from various divisions have coordinated, provided support and successfully collaborated to guide vendors and respond to sometimes-contentious issues and concerns.
Business Development Assistance for Vendors
Currently, the City’s Business Navigator, Crystal Casillas, provides information on the different vending options for those interested in starting a food truck business. The Business Navigator also connects new and current food truck owners to community organizations that provide technical assistance and access to working capital. Community organizations were informed about the updates to the ordinance so that they could be prepared to provide the most current information to those interested in starting a food business.
Summer Check-in
A common theme with most vendor grievances was loss of sales. Staff speculates that this may simply be an effect of the season and that in general winter sales may be far less than summer sales, particularly for those less seasoned or new vendors. As a result, staff will conduct another survey during the summer to determine if food truck vendors, business owners and the public’s sentiments have changed regarding the food truck Vendor Program.
Staffing
As part of the fiscal year 22/23 annual operating budget adjustments, Public Works has requested that a full-time Permit Technician be added to the Development Engineering staff. This position would allow technical staff to concentrate on review of building, grading, stormwater and encroachment permits while providing the required attention and consistency to vendors and the issuance of vending permits.
CEQA CONSIDERATION:
The acceptance of this Administrative Report is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
This report supports the City Council’s goal of Economic Development and Public Safety. The Vendor Program provides an alternative business model while monitoring and regulating vendors for the public’s safety.
DEPARTMENTAL COORDINATION:
Implementation of the Vendor Program continues to be a team effort between the Public Works Department (Development Engineering), the Community Development Department (Advanced Planning and Project Implementation Division and Code Enforcement) with support from the Police Department.
FISCAL AND SUSTAINABILITY IMPACT:
This is a program update and does not implement any changes not addressed through other fiscal reports. As stated above, Public Works and Code Enforcement have included new staff positions that would support the Vendor Program as part of their FY 22-23 budget requests. Public Works has requested that a full-time Permit Technician be added to the Development Engineering staff to focus on vendor permitting and a Senior Code Enforcement Officer is being requested as part of the Divisions’ fiscal year (FY) 22-23 budget.
ATTACHMENTS:
Pre Food Truck Survey Results (raw data)
Post Food Truck Survey Results (raw data)
Presentation to Food Truck Vendors
Food Truck Vendor Agreement
Flowchart – English
FAQ – Designated Location – Street
FAQ – Private Property
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