AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: CARLO TOMAINO
CITY MANAGER
SUBJECT:
title
PUBLIC HEARING- A RESOLUTION TO ESTABLISH A VENDING IMPOUNDMENT FEE RELATING TO UNPERMITTED SIDEWALK VENDORS THEREBY AMENDING THE UNIFORM SCHEDULE OF SERVICE FEES AND CHARGES 2024-04-6794
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Summary:
Consistent with State law, the City adopts a resolution approving adjustments to its Schedule of Fees and Charges, based on annual changes in the Consumer Price Index (CPI). In other instances, operational needs dictate the City establish new fees to address updates to the Municipal Code based on City Council direction. The City Council adopted Ordinance No. 2024-07-1550 at its regular meeting on Tuesday, August 27, 2024. The primary purpose of Ordinance No. 2024-07-1550 is to amend Chapter 5.06 pertaining to sidewalk vending and Chapter 12.14 related to the storage of personal property on public property. Following the City Council adoption Ordinance No. 2024-07-1550, staff recommends an impound fee, by separate resolution, to address the cost of impound activities related to sidewalk vending. The recommended fee amount is $658 based on a study of the probable cost based on the City’s cost of service. The proposed amendment to the City’s fee schedule would ensure the City recovers the cost of staff time associated with impounding equipment as necessary.
Notice was published in the Signal Tribune newspaper per Government Code Section 65091(a) (4) on August 30, 2024; and posted in accordance with Signal Hill Municipal Code Section 1.08.010 on or before August 30, 2024.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Endure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 Community Safety: Maintain community safety by supporting public safety services and increasing emergency preparedness.
recommendation
Recommendation:
Adopt the resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING RESOLUTION NO. 2024-04-6794, AMENDING THE UNIFORM SCHEDULE OF SERVICE FEES AND CHARGES
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Fiscal Impact:
The proposed update to the City’s Fee Schedule is consistent with the City’s cost recovery model does not generate revenue; there is no fiscal impact with this action.
Background:
Over the past several months, the City has continued its efforts to educate sidewalk vendors regarding the requirements of the City’s Sidewalk Vending Ordinance, including necessary permits and health and safety standards. Neighborhood Preservation staff have actively engaged with vendors, assisted with permitting, and provided materials in multiple languages to promote understanding and compliance with the Ordinance. The City has successfully permitted mobile food trucks and sidewalk vendors. However, despite the City’s existing permit and licensing procedures, there are a limited number of unauthorized outdoor restaurant operations operating without health permits. Unlike the independently owned and operated pushcarts, these large-scale restaurant operations, which can include several franchises throughout the region, refuse to comply with City, County, and State regulations despite repeated requests by the City for voluntary compliance.
Since the beginning of the year, staff has worked to inform vendors of the permitting process which requires them to work with the Los Angeles County Health Department to secure the required health permits. A limited number of acute non-compliant operations have posed persistent and negligent public safety and health risks, such as obstructing the public right-of-way, improper waste disposal, and unsanitary food handling practices. The City has received complaints of food contamination and has repeatedly asked these vendors to obtain basic health permits. Additionally, these vendors improperly and continuously dispose of grease and other liquids into the City’s storm drain system and parkways, violating County and State laws and posing an ongoing risk to public health and the environment.
To address issues related to ongoing non-compliant vending activities, on August 27, 2024, the City Council adopted Ordinance No. 2024-07-1550 at its regular meeting (Attachment A). This Ordinance amends Chapter 5.06 pertaining to sidewalk vending and Chapter 12.14 pertaining to storage of personal property on the public right-of-way. A key component of this Ordinance is the introduction of a new Vending Impound Fee to be incorporated in the City’s Schedule of Fees and Charges. The proposed Vending Impound Fee enables the City to address the challenges posed by ongoing unpermitted vending activities and ensuring effective enforcement and administration of the Ordinance.
Under State law, cities are authorized to collect user fees to recover the costs of providing specific services, as long as those fees do not exceed the estimated reasonable cost of service delivery. The City’s fees are determined through an analysis of direct support costs and are consistent with the legal parameters established by Proposition 26 and 218.
Pursuant to Government Code Section 660016, et seq., the specific fees to be charged for services must be adopted by the City Council by resolution, and upon approval would need to be incorporated into the current Schedule of Fees and Charges (Attachment B).
Analysis:
To enhance the City’s regulatory framework and mitigate non-compliant sidewalk vending, staff proposes amending the current Schedule of Fees and Charges to add a Vending Impound Fee. This proposed fee would enable the City to recover costs related to the impound of vending equipment, including carts, food, cooking equipment, utensils, goods/merchandise, that present an imminent hazard to environmental, health, or safety conditions.
Ordinance No. 2024-07-1550 outlines that upon impoundment, sidewalk vendors would receive a detailed list of the items seized and the steps required for recovery, which includes paying the Vending Impoundment Fee and proving ownership. Staff developed procedures to ensure fairness and prevent erroneous impoundments. The City’s Neighborhood Preservation team would continue its educational efforts and issue a verbal warning before initiating any impoundment action.
Impoundments would occur in the presence of the owner or operator of the sidewalk vending equipment whenever possible. In cases of unattended or abandoned property, reasonable efforts would be taken to identify a responsible person prior to the impoundment action. Perishable items or those unsafe to store will be disposed of in accordance with county and state law; items that remain unclaimed would be considered abandoned and forfeited to the City.
The Ordinance also provides for a hearing process to contest impoundment and related fees. Vendors may request an appeal by paying the appeal fee. The City’s existing Schedule of Fees and Charges includes an Appeal Fee set at $250 equal to a 50% cost share of the cost of a Hearing Officer. If the appeal is successful, the City would refund the Vending Impound Fee, Administrative Fines, and the Appeal Fee.
Vending Impoundment Fee
The proposed Vending Impoundment Fee of $658.00 reflects the time and resources required to recover the cost to impound unauthorized sidewalk vending operations.
Current Fee: $ 0. 00 (new fee)
Proposed Fee: $ 658.00
Recommendation
Staff recommends the City Council adopt the proposed Resolution establishing a new Vending Impoundment Fee. If approved, the newly established fee would take effect on October 1, 2024, aligning with the with the 30-day notice period required for the Ordinance adopted by the City Council on August 27, 2024.
Reviewed for Fiscal Impact:
_________________________
Sharon del Rosario
Attachments:
A. Ordinance No. 2024-07-1550
B. Schedule of Fees and Charges
C. Resolution
D. Exhibit A - Cost of Service Model