REPORT TO CITY COUNCIL
SUBJECT
Title
Action to Approve Introduction of an Ordinance Readopting the Expired Sidewalk Vendor Stadium Pilot Program with a New Sunset Date and Slightly Expanded Footprint
Report
COUNCIL PILLAR
Deliver and Enhance High-Quality Efficient Services and Infrastructure
Enhance Community Engagement and Transparency
BACKGROUND
SB 946 prohibits California cities and counties from banning sidewalk vendors from operating on public sidewalks or other pedestrian pathways and prohibits cities from regulating sidewalk vendors unless cities establish a permitting system that is consistent with the provisions of SB 946. SB 946 also requires that any restrictions placed on sidewalk vendors be directly related to objective health, safety or welfare concerns. Local jurisdictions that wish to regulate sidewalk vending are required to first adopt a program with regulations consistent with SB 946.
Direction from City Council on April 18, 2023, requested staff to “prepare a temporary ordinance amendment and permit process for stadium event days that would define areas where sidewalk vending should not occur due to health and/or safety concerns, within a to-be-determined stadium footprint.” The Ordinance would also contain provisions to prohibit vending in parking lots associated with the stadium event. The temporary Ordinance would be established for a pilot period of September 2023 to January 2024 to evaluate impacts.
On July 18, 2023, the City Council approved the introduction of an Ordinance amending Chapter 5.05 (Solicitors and Peddlers) and Section 9.05.165 (Activities and Conduct Prohibited in Parking Facilities Adjacent to the Stadium or Parking Facilities Used for Stadium Events) of the Santa Clara City Code to create a limited-term pilot project regulating vending on certain public sidewalks and pedestrian paths surrounding Levi’s Stadium on event days (“Program”). In addition, the City Council waived fees and taxes for all required City business licenses and permits, for qualified sidewalk vendors operating at stadium events during the pilot program period (September 21, 2023 through January 31, 2024) on a first come first serve basis in an amount not to exceed $30,000.
A second reading of the Ordinance took place at the August 22, 2023 City Council meeting. In turn, the Ordinance became effective 30 days thereafter, on September 21, 2023. By its terms, the Program expired and was considered repealed as of the sunset date of January 31, 2024. Staff now requests a readoption of the ordinance to reinstate the Program to run during the 2024 non-NFL event season and August 2024 - February 2025 NFL season.
DISCUSSION
Given City Council action, the Police Department created educational flyers in English and Spanish to distribute to sidewalk vendors. An initial educational effort occurred at three events (August 25, 49ers vs Chargers; August 30, Beyonce concert; September 16, Ed Sheeran concert) prior to the Ordinance effective date of September 21, 2023. Police Department staff also attended a regional educational meeting to further assist vendors seeking to comply with the local Ordinance and other regulations.
Meanwhile, a process was developed with coordinating forms between the Police and Finance Departments to capture the applications and associated fee waivers granted.
Enforcement of the pilot program began on September 21, 2023, at the first NFL regular-season game.
The initial educational efforts at the first three events appeared to be effective, as the number of vendors was markedly lower from September 21, 2023, through the remainder of most of the NFL’s regular season.
Continual enforcement and education occurred throughout subsequent events, including seven (7) additional NFL regular-season games, and two (2) NFL post-season games. Police Department staffing challenges and corresponding public safety resource allocation priorities limited the number of dedicated personnel to enforcement and education. Deployment requirements often make it difficult to assign employees to vendor enforcement from start to finish for each event.
Staff support and expertise from the County of Santa Clara Department of Environmental Health (County) was requested during the development of the pilot program. County staff did conduct corresponding educational and enforcement action at three (3) NFL events. Their presence was extremely beneficial, with prompt compliance from vendors upon contact or upon seeing County staff insignias.
Additionally, the Police Department’s grant with the California Alcoholic Beverage Control (ABC) allowed for an agent(s) to be present at seven (7) Levi’s Stadium events resulting in multiple public relations contacts, 17 warnings, 35 citations and three (3) arrests related to underage or unlicensed alcohol sales. It should be noted, there is no guarantee the City will be a recipient of future ABC grants to maintain this level of effort to curb illegal alcohol sales and consumption.
Initially, the pilot program resulted in a significant reduction in vendors, specifically the larger vendors. By the December 25, 2023 event, staff observed a gradual rise in mobile food-vendor carts to pre-pilot program numbers. This poses greater difficulties in compliance and enforcement. While assistance from ABC and County staff was beneficial, it was limited based on their staffing resources and/or reimbursement challenges.
Based on the end-of-season rise in unpermitted vendors, staff was assigned from set-up to clean-up of each event to enforcement responsibilities. This occurred for both NFL post-season events and had a positive impact in reducing the number of unpermitted vendors. This dedicated resource allocation resulted in four (4) administrative citations being issued during each post-season event.
Over the course of the thirteen (13) major events at Levi’s Stadium during the pilot program, staff collected data to evaluate program successes, failures, and possible improvements needed. The following is information accumulated throughout the pilot period:
• Delivered more than 600 multi-lingual (Spanish and English) educational flyers to vendors
• Provided 594 compliance admonishments to unpermitted vendors
• Issued eight (8) administrative citations to unpermitted vendors
• Two (2) arrests were made during a contact in which an unpermitted vendor struck an officer and an associate attempted to intervene during the arrest
• Two (2) merchandise vending permits were issued; one short-term vending permit without an associated fee, and a second permit with a $26.50 fee that was not waived or refunded. Staff has since implemented procedures and training to mitigate this situation from occurring in the future
• Two (2) merchandise vendors applied but have not completed the permit process at the writing of this report
• Three (3) food vendors called to inquire about a permit, however no food vendors applied for a permit
• No vending permits were denied or revoked
• Identification of “supply vans” occurred so that early intervention and education could take place before the vendors established fixed positions
Overall, the program saw some successes, primarily related to ensuring that public sidewalks and roadways were free of vendors, and that pedestrians had clear pathways for ingress and egress. However, there is still significant work to be conducted to address permitting and associated business/permit fees, as well as health, safety and welfare concerns previously addressed with Council (e.g., inadequate waste disposal, propane and hot cook top dangers, alcohol sold without ABC permits and/or to underage individuals, unsafe food preparation and storage, etc.). While assistance from ABC and the County of Santa Clara Department of Environmental Health was beneficial, it was limited based on each entity’s own staffing and/or reimbursement challenges. Due to the timing of the pilot program implementation and demands during the NFL season, staff had limited resources to conduct comprehensive research of best practices at similar venues or implement community/stakeholder partnerships.
Given the review of the initial pilot program, the staff recommendation is to readopt the Program to continue through February 2025. Furthermore, staff recommends modification to adjust City Code Section 5.05.430 Time, Place or Manner restrictions (b) (7) to read “Old Glory Lane east and west of Great America Parkway.” Currently, the language omits the section of Old Glory Lane west of Great America Parkway. During staff review of the pilot program, this location was observed to also necessitate the same health, safety and welfare concerns on sidewalks and other pedestrian paths within the stadium footprint articulated to the City Council previously (Attachments 1 and 2) as there are a myriad of risks associated with sidewalk vending scattered among a large, high-density pedestrian group. Doing so presents a variety of risks to the vendors, their customers, disabled and other pedestrians, emergency responders, vehicular traffic, as well as pedi-cab traffic. Additionally, unsafe food preparation, storage and handling practices, inadequate waste disposal, use of propane tanks without security measures and hot greasy cook tops without safety clearances and devices can lead to unsafe and unsanitary conditions.
In doing so, staff will have the opportunity to implement adjustments to the communication and enforcement plan during the non-NFL event season and further test those practices during the 2024 NFL season. This will also allow staff to conduct more comprehensive benchmark review of unpermitted vending impacts and responses at similar venues. The challenge remains for the ability to have a long-term partnership with ABC and the County of Santa Clara Environmental Health Department to lead the alcohol and food sales related health, safety and welfare efforts. Personnel and funding resources continue to prevent their presence at every Levi’s Stadium event. Staff will continue to pursue solutions with both ABC and the County.
Should City Council agree to this extension of the pilot program, staff would return to Council in Spring 2025 with their recommendation on Ordinance amendments in the Levi’s Stadium footprint and/or to expand the program to other areas of the City, including but not limited to City parks.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There will continue to be Police Department and Finance Department staff time associated with responding to inquiries and processing new permit requirements for sidewalk vendors, however the most significant impact will be conducting enforcement on Levi’s Stadium event days. At this time, there are approximately 15 major events scheduled at Levi’s Stadium from May 2024 through February 2025; additional event (s) may be added during this timeframe.
Staff recommends readoption of the expired program including maintaining the ability to waive fees and taxes for all required City business licenses and permits, for qualified sidewalk vendors operating at stadium events through the new sunset date on a first come first serve basis in an amount not to exceed $30,000.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Waive first reading and approve introduction of an Ordinance amending Chapter 5.05 (“Solicitors and Peddlers”) of the Santa Clara City Code to readopt the Street Vending Stadium Pilot Program, to run through February 28, 2025, and modifying Section 5.05.430 (“Time, place or manner restrictions”) to include Old Glory Lane west of Great America Parkway
Staff
Reviewed by: Pat Nikolai, Chief of Police
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. RTC 23-726 from the July 18, 2023 City Council meeting
2. RTC 23-1005 from the August 22, 2023 City Council meeting
3. Proposed Ordinance