SUPPORTS ITEM NO. 1 CS&B COMMITTEE AGENDA JUNE 1, 1995 ADMINISTRATIVE REPORT Date: May 16, 1995 TO: Standing Committee on City Services and Budgets FROM: General Manager of Engineering Services, in consultation with the Director of Legal Services SUBJECT: Street Vending - Enforcement Procedures RECOMMENDATION A. THAT the revised street vending guidelines shown in Appendix 1 be approved. B. THAT, in addition to the City Engineer, the Chief Constable and the Medical Health Officer be authorized to remove unlawfully placed items from the City street allowance when circumstances warrant, and in consultation with the City Engineer. C. THAT removal costs of items unlawfully placed on City street allowance be charged to the owner. Cost to be based on manpower and equipment required for removal: 1 person, no extra equipment $100.00 per trip* (truck or trailer, etc.) 2 people, with no extra equipment $200.00 per trip* Full crew, with extra equipment $300.00 per trip* * costs include police back-up when necessary FURTHER THAT the holding time for confiscated merchandise be reduced from three months to one month. D. THAT the City Engineer be authorized to suspend vending permits for up to 10 days to deal with unresolved problems and to reduce administration time and costs. E. THAT the City Engineer be authorized under the Street Vending By-law to issue Special Event Market permits to event organizers at a cost of $75.00 per block per day (to a maximum of $300.00 per day) under the guidelines attached as Appendix II. These will normally be reviewed by the F.E.S.T. Committee. F. THAT, when a special event market permit is not issued but the event is deemed suitable for vending, individual special event vending permits be issued at a fee of $25.00 per day under the guidelines shown in Appendix III and that the annual special events vending permit be eliminated. G. THAT the Director of Legal Services make the appropriate By-law amendments to reflect B, C, D, E and F above. COUNCIL POLICY Council created the street vending program, enacted in the street vending by-law, to enliven the city streets, and to provide an outlet for handcrafted goods and food items and to provide control of ongoing illegal vending. SUMMARY Changes to existing enforcement procedures for the vending program are proposed to streamline procedures to better control illegal vending, eliminate duplication and overlap of services, provide better service outside normal office hours, and reduce administration. This report also recommends changes to the renewal process in the street vending guidelines. These changes reflect and safeguard the non-transferable aspect of vending permits and Council's intention that vendors with permits play an active role in the operation of their locations. The process currently used for resolving problems and communica- tions with business groups appears to work well and no changes are recommended at this time. PURPOSE This report recommends changes to improve the street vending program, including streamlined enforcement procedures and revised guidelines to better deal with illegal vending and answer concerns of merchant groups and individuals. The consultative process among business groups, City departments and the Vancouver Vending Association is also reviewed. BACKGROUND Recent changes to allow open cooking of hot dogs, the annual renewal of licenses and to limit the total number of vending locations have contributed to an increased demand for vending permits. On January 13, 1994, Council approved the following recommendation: " THAT the City Engineer, in consultation with all interested parties, including the Chief Constable, Down-town Vancouver BIA, Vancouver Vendors Association and the Theatre Row Merchants, report back on the monitoring and enforcement of illegal vendors; and FURTHER THAT the above report back include the feasibi- lity and cost of implementing a process similar to that of the FEST Committee to provide consistent and regular consultation with all affected parties on street vending issues. " There are many types of illegal vending. These include individuals or companies selling food products, sunglasses, tee shirts, second-hand items, novelties, etc., from trucks, cars, bicycles, push carts, trailers, folding tables and blankets on the ground. It can be a business displaying merchandise in front of their store, a permitted vendor operating outside the guidelines, someone selling cigarettes from a backpack, or an organized neighbourhood flea market spreading onto the street or lane. Several City departments are involved in enforcement procedures and who responds depends on the type of infraction, the time of day and whether the vendor is located on private property or a City street. The Health Department deals with Health By-law infractions, Permits & Licenses enforce private property vending through the property owner, and the Police Department assist property owners in removing unauthorized vendors from private property and issue tickets to illegal vendors on City Streets. Engineering Services deals with permitted vendors operating contrary to the guidelines, as well as illegal vendors operating on City streets. In recent years City Council has approved a number of changes which have affected the vending program: ˜ permitted open flame hot dog vending; ˜ limited the number of available permits to 100 in the Downtown peninsula (maximum 14 in Gastown) and 20 outside the downtown; and ˜ supported the rights of existing vendors by allowing them to annually renew their permits. These changes resulted in increased demand and reduced turnover for vending locations in the program. This added pressure may be a contributing factor to an increase in illegal vending. DISCUSSION There are several issues that have been reviewed in an effort to streamline the process and improve the program. Non-transferable Vending Permits Increased demand and low turnover in the program appear to result in an increased street value of vending permits. Staff have encountered a number of problems during renewal times with possibly forged signatures (renewal signature does not match the original application), individuals claiming to be the permit holder (but cannot or will not produce identification) in order to renew the location and individuals wishing to renew on behalf of a permit holder who lives in another city. Staff request identification and personal involvement from the permit holder. However, this is not part of the guidelines and at times staff have difficulty requiring this. Solution: Amend the street vending guidelines to require vendors to submit applications and pick-up permits "in person" and show valid photo identification. Location of Vendors The current guideline for approval of new vending applications ensures a minimum distance of 200 feet from an existing business selling a similar product. This guideline applies to fixed address businesses on private property and does not apply to other vendors who in many cases are within 200 feet of each other. Recently there has been some confusion in this regard. Solution: Amend the street vending guidelines to clearly allow approval of vending locations within 200 feet of other vending operations. This change would clarify existing practise. Impoundment Under the Street and Traffic By-law the City Engineer has sole authority to remove vended merchandise not lawfully on a city street. Therefore, the Police, Health and Permits and Licenses Departments call for assistance when other enforcement action has not yielded the desired results. Due to limited staff resources, assistance is not always available, particularly after office hours and on weekends. This often results in a delay of up to one week if the problem only occurs on the weekend. Staff must then organize an overtime shift requiring the presence of involved departments to deal with a problem. Solution: Permit the Chief Constable and Medical Health Officer, in consultation with the City Engineer, to impound unlaw-fully placed items. This would reduce the staff require-ments for enforcement. Engineering staff would continue the administration related to storage, return or disposal of the items. Illegal hot dog vending has increased and this raises another problem. The kiosks are heavy and cannot be easily removed. Staff have encountered several situations where merchandise was removed from uncooperative vendors, only to find the vendors back in operation within an hour. Staff then resorted to removing the propane tanks from the units and again found the vendor reopened at a new location within a short time. Apparently most vendors store additional product and spare tanks in a vehicle nearby. Solution: Impound the entire unit. Arrangements have been made with Unitow to provide this service on a call-out basis as an extension of their existing city contract. Removal Cost Recovery Section 66.3 of the Street and Traffic By-law allows the City Engineer to remove merchandise illegally offered for sale on street. Under the by-law the owner may recover the merchandise upon payment of costs incurred by the City. However, no provision is made to cover costs when the owner chooses not to recover the merchandise. This does not happen often, however, occasionally staff encounter an uncooperative operator displaying merchandise of little or no value (items donated or retrieved from dumpsters). In these cases staff are faced with removing the merchandise, storing it for 3 months and disposing of it. If there appears to be any value attached to the item, it is sent to the City auction; if not, disposal is appropriate. In these situations, no costs are recovered and the operators are generally undeterred. At least one operator has viewed this action as a benefit in terms of free refuse disposal. The following shows average costs incurred based on the number of staff and type of equipment required: Requirements Costs 1 staff no extra equipment $100.00 (truck or trailer, etc.) 2 staff with extra equipment $200.00 full crew with extra equipment $300.00 These costs are estimated per trip and include: removal, storage, administration, return or disposal and Police back up and assistance when required. Solution: Amend the appropriate by-law(s) to allow removal costs as shown above to be charged to the owner and to reduce the holding time for confiscated merchandise from 3 months to 1 month. Suspension of Permits Most permitted vendors operate within the guidelines and show good cooperation, however, occasionally problems arise. The most common complaints concern: the sale of unapproved merchandise, relocation of vending kiosks after hours and additional display areas or extra furniture or other objects around the site. These problems are currently dealt with by requesting cooperation and issuing warn-ings. This often results in compliance, especially during working hours, however, it can be less effective in the evenings and on weekends. The by-law allows for a process of suspension for up to 30 days and report to Council. To date staff have managed to avoid taking this action which is seen as cumbersome and time consuming. Solution: Suspend, for cause, vending permits for up to 10 days. This action could be taken on a sliding scale, a warning or 1 day suspension for a minor offense and up to 10 days for repeated serious infractions. If the situation still cannot be resolved, the permit could be cancelled for cause. The vendor would have the right to appeal this decision to Council. Special Event Vending Special Event Vending is currently handled in one of two ways: a) Large events, such as Symphony of Fire and the PNE parade, may be issued a Public Street Market License (PSML). The approval for this license is given through Council approval of the special event calendar and F.E.S.T. Committee approval of the event details. This license is issued only to the event organizer at a cost of $280.00 per day and gives the right to, and control over, vending within the defined area. The system works well for large events, where organizers can recoup their costs by charging individual vendors a fee to participate in the event. However, small local community events often find the $280.00 fee restrictive. b) In cases where the organizer does not wish to purchase a Public Street Market License but is agreeable to having vendors participate in the event, the City may issue one-day Special Event Permits to interested vendors at a cost of $5.00 per day or $50.00 per year. There has been little demand for this type of permit in the last few years (only one annual Special Event permit was issued in 1994). Most event organizers prefer to obtain a Public Street Market License or to have no vending at all. In cases where these permits are issued, the $5.00 per day or $50.00 per year fee does not cover administration and enforcement costs. Solution: Create a "Special Event Market Permit" (SEMP) with the City Engineer as the issuing authority. This would streamline the process, reduce administration and bring all types of street vending under the street vending by-law. The "Public Street Market License" could remain under the license by-law to accommodate other types of market situations administered by the Permits & Licenses Department. A fee structure of $75.00 per block per day to a maximum of $300.00 per day is recommended. This would take into account the wide variety in scale of events held in the city and make the opportunity to include vending more accessible to small community events. Where individual daily special event permits are issued, a fee of $25.00 per day would more closely reflect the administration costs involved (examples are charity fund raisers and block parties). It is recommended that the annual special events permit be eliminated. There is only one vendor (a balloon and novelty vendor) that holds this permit and he could be allowed to renew. Liaison with the Business Community and the Vancouver Vending Association City staff meet regularly with the various business groups to discuss their concerns, including the street vending program. This includes the Downtown Vancouver, Gastown and Robson Street BIAs among others. The Vancouver Vending Association (VVA) is contacted whenever changes are considered. The dialogue is valuable and from it we have resolved problems. An example is the changes to vending in Gastown that have been well received by this area. In the Robson Street and Downtown areas there are still some problems regarding illegal vending. Both the RSBIA and the DVBIA support the recommendations. This report was discussed with various members of the VVA. They recognize the need for proper enforcement to ensure the guidelines and vending program work successfully. Staff will continue to meet with business organizations and the VVA on an ongoing basis to ensure the program is operating as intended. This will include review through the F.E.S.T. Committee for larger special events. The changes made to the vending program in Gastown in 1993 were the result of a series of meetings between staff, the Gastown Business Improvement Society and the VVA. More recently, discussions were held with the DVBIA and the RSBIA regarding suggested enforcement procedures, some of which are discussed in this report. This process works well and therefore no other changes are recommended. * * * * * APPENDIX I Page 1 of 2 CITY OF VANCOUVER STREET VENDING APPLICATION/APPROVAL PROCEDURE 1) Renewal applications and fees must be submitted in person before 12:00 noon on the last business day of January. No renewal applications will be considered if the applications do not conform with these regulations. 2) Locations that have not been renewed will be posted for public view and application on the second Monday in February. Applications will be accepted until 5:30 p.m. on the last business day in February at the Parking and Street Activities Branch on the 7th Floor of City Hall. 3) Each applicant may apply for a maximum of 3 locations including renewals, only one of which may be in Gastown. 4) The applicant must submit in person a completed application form and a $50.00 non-refundable application fee for each location. Faxed applications will not be accepted, nor will applications by any person other than the named applicant. 5) The City Engineer permits food products, approved by the Vancouver Health Department, and handcrafted products to be sold. Artists, face painters, balloon sculptors, basket weavers and palm readers are also permitted. It is the applicant's responsibility to ensure their product is approvable prior to application. 6) It is the applicant's responsibility to ensure that the location(s) applied for are not within 60m (200') of the entrance to a fixed address business selling a similar product. A fixed address business means any business which is not a street vendor. This regulation does not apply to special event vending or special event vendors (e.g., street markets). 7) Locations with only 1 applicant will be awarded early in March, provided all conditions in the Street Vending Guidelines have been met. 8) Locations which have more than one applicant will be awarded by lottery selection on the 3rd Monday in March. Applicants may be present to witness the draw and all applicants will be notified of the resulting status of their application(s). Appendix I Page 2 of 2 9) Applicants selected will be considered for approval of location and the product. 10) Kiosks must be constructed with the consultation and approval of the Engineering Department and, where appropriate, the Health Department. 11) The applicant must obtain insurance in accordance with the "Street Vending Insurance Information" handout. 12) If food is to be sold a health permit must be obtained. The health permit must be obtained by the applicant before a street vending permit will be issued. 13) The applicant must pay the balance of the permit fee before the permit will be issued. 14) The applicant must attend in person, show valid photo identification and pick up the street vending permit. Street Vending Permit Fees: Application Fee Balance Dry Goods $50 + $400 = $450 Food $50 + $550 = $600 * * * * * JANUARY 1995 APPENDIX II Page 1 of 1 SPECIAL EVENT MARKET PERMITS - GUIDELINES The City Engineer will determine requirements for each application. These include but are not limited to: ˜ area to be controlled ˜ number of vendors permitted ˜ location of vendors ˜ amount of sidewalk to be maintained ˜ identification for vendors ˜ appropriate insurance ˜ appropriate health permits for food vendors. * * * * * APPENDIX III Page 1 of 1 GUIDELINES FOR INDIVIDUAL SPECIAL EVENTS PERMITS A limited number of permits will be issued when: ˜ No Special Event market permit has been issued. ˜ The event has been approved and considered appropriate for vending by the FEST Committee or Special Events Coordinator in consultation with the event organizer. ˜ Food vendors hold a valid Health Services permit. ˜ The vendor or event organizer shows proof of adequate liability insurance to the satisfaction of the Director of Risk Management. The number of permits issued will be determined by the Special Events Co- ordinator based on the size and nature of the event, pedestrian volumes and physical constraints of the area. * * * * * BPD/dc R\EF5747.COV