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Facing concerns about inadequate public outreach, East Palo Alto City Council last week postponed adoption of its new sidewalk-vendors ordinance, which would formally enforce state and county laws on business permitting, hours of operation, safe selling locations and citations for non-compliance.
In East Palo Alto, street vending has increased in recent years, from ice cream-vendors, to taqueros to fruit stands. While many support the economic and cultural benefits generated by the small businesses, others have cited concerns over health and safety.
At a Tuesday council meeting, a split council gave direction to city staff to return with a more fleshed out ordinance in the future. Vice Mayor Mark Dinan and Council member Webster Lincoln were in favor of passing the ordinance as is, whereas Council members Ruben Abrica and Carlos Romero wanted to further develop it. Mayor Martha Barragan abstained from voting.
“Vendors appreciate having clear rules and generally do want to operate legally,” Assistant to the City Manager Denise Garcia said at the meeting. “Their biggest concerns were insurance costs and reduction of hours.”
In the new ordinance, street vendors would be required to purchase an initial business license for $89 in their first year, but subsequent renewal costs would be determined by income. In addition to the business license, city staff recommended charging $126 for a sidewalk vending application, which is half of its total cost.
Food vendors would also be required to purchase an $841 food safety permit from the San Mateo County Environmental Health Division. All vendors would also be required to purchase insurance, ranging from $30 to $90 a month.
“The only new fee is really this $126 fee, which is 50% of the actual cost,” said City Manager Melvin Gaines.
The other charges are already enforced by county and state agencies, according to staff.
Under the ordinance, vendors would also be required to operate only from 9 a.m. to 9 p.m. in residential areas, and keep a minimum distance away from “sensitive areas” like emergency facilities, intersections, fire hydrants and special events like farmer’s markets.
Food vendors would still be required to follow county health regulations, which require hand-washing stations, refrigeration and businesses-provided trash bins, cleaning up within the 15ft operation radius. San Mateo County prohibits the use of open flames.
Permitted business owners who do not adhere to the ordinance would be fined $100 for a first time violation, with increases for repeat offenses. For unpermitted vending, fines would range from $250 for a first violation to $1,000 for subsequent ones. Generally, the city plans to provide a verbal warning, then a written warning before fining people, unless the violation is egregious, according to City Attorney John Le.
The violation fees follow state laws.
While the majority of the fees and guidelines are county and state-regulated, some council members and residents said the rates were unreasonable for small business owners.
“You don’t want to drive people out of business,” Abrica said.
The city’s current vending policies were implemented before Senate Bill 946 took effect in 2019, which created stricter guidelines for California sidewalk vendors. In an attempt to help vendors get into compliance, city staff want to roll out the new ordinance in a one year pilot, focusing on education rather than punishment.
The city does not plan to impound mobile businesses nor is the action included in the ordinance. Under the first year pilot, staff would not fine people.
While sidewalk vendors have expressed concern over their ability to pay fees, Council member Lincoln said vendors should be held to the same standards as non-mobile business owners.
“I think this is a step in the right direction,” he said. “They often do not try to go through permitting. They do whatever they want.”
Council members Abrica and Romero wanted greater direct input from street vendors and asked city staff to further develop financial assistance programs and citation payment processes.
“We don’t always have to agree and we don’t always agree, but when we’re talking about the public process, I think it’s important to wait a little longer and allow the public, in this case the people affected by it, to have an opportunity to come up here,” Abrica said.
City staff will return in the future to pitch a second draft of the ordinance.
