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HomeMy WebLinkAboutEconomic Development Subcommittee 2025-09-25 Agenda PacketCity of San Rafael Economic Development Subcommittee September 25, 2025 | 10:00 – 11:30 AM In-Person Meeting: San Rafael City Hall Community Development Large Conference Room 1400 Fifth Avenue, 3rd Floor San Rafael, CA 94901 To view meeting (non-participation): https://cityofsanrafael-org.zoom.us/j/86810860972 Meeting ID: 868 1086 0972 One Tap Mobile: +16694449171,,86810860972# US AGENDA 1.Call to Order 2.Approval of Minutes 5 minutes a.Approve the minutes of the June 11, 2025 Economic Development Subcommittee Meeting 3.Open Time for Public Expression a.The public is welcome to address the subcommittee at this time on matters not on the agenda that are within its jurisdiction. Public comments under this category may be limited to two minutes per speaker per item at the discretion of the Chair with the consent of the Subcommittee and should be respectful to the community. 4.Economic Development Partner Updates 15 minutes a.Hispanic Chamber of Commerce b.San Rafael Chamber of Commerce 5.Reports / Action Items a.Mobile Vending Program Update 30 minutes The Subcommittee will receive an update from staff on options to implement new mobile vending policies. Staff recommends that the Committee provide input into a proposed ordinance and also hear about a proposed Memorandum of Understanding between the City of San Rafael and the County of Marin related to the impoundment of food handling equipment. b.Development Pipeline Interactive (GIS) Map 10 minutes The Subcommittee will receive an update from staff on the newly launched Development Projects web page that provides detailed information on active development projects submitted to the Planning Department. c. Special Event Permit & Process Update 5 minutes The Subcommittee will receive an update from staff on the transition of the Special Event Permit program and related software. d. Public Art Program Update 15 minutes The Subcommittee will receive an update from staff on artist selection progress for the Public Art Program and the upcoming schedule for public comment. A dedicated project webpage is now available. Public Art Program - San Rafael. 6. Future Agenda Items The next regular meeting of the Economic Development Subcommittee is tentatively scheduled for Wednesday, December 10, 2025 at 9:00am-10:30am. 7. Adjournment Any records relating to an agenda item, received by a majority or more of the Subcommittee less than 72-hours before the meeting, shall be available for inspection in the City Manager’s Office, 1400 Fifth Avenue, San Rafael, CA 94901. online prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing Lindsay.lara@cityofsanrafael.org, city.clerk@cityofsanrafael.org, or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/. Public transportation is available through Golden Gate Transit, Line 22 or 23. Paratransit is available by calling Vivalon at (415) 454-0964. To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products. 1 To: San Rafael City Council Economic Development Subcommittee From: Greg Minor, Assistant Director, Community and Economic Development Department Angela Robinson Piñon, Assistant City Manager Date: September 22, 2025 Mobile Vending Program Update Executive Summary This informational memorandum offers background on state mobile vending laws that limit local jurisdictions’ authority over mobile vending, a summary of recent enforcement actions, as well as a policy program addressing sidewalk/mobile vending. Staff recommend a three-prong approach to address unpermitted mobile vending in San Rafael by (i) strengthening the City’s enforcement tools, (ii) providing multiple paths to legalization, and (iii) supporting local entrepreneurship. These goals will be advanced through a proposed mobile food vending ordinance that fully aligns with state mobile food vending laws and a memorandum of understanding (MOU) with the County, potentially delegating authority to the City to impound vendor equipment. Following discussion at the City Council’s Economic Development Subcommittee on September 25, 2025, staff will incorporate feedback received into a legislative package that staff will present to the full City Council this fall. Background I. Recent State Legislation to Encourage Mobile Vending Before 2019, local jurisdictions had sole authority to regulate or ban sidewalk vending. However, the State Legislature limited local control of sidewalk vending in 2019 when the Legislature passed Senate Bill (SB) 946 to promote entrepreneurship and support immigrant and low-income communities. SB 946 decriminalized sidewalk vending, prohibited local governments from banning sidewalk vending, and limited local ordinances seeking to regulate sidewalk vending to only considering objective health, safety, or welfare concerns. Under SB 946, violations of a local authority’s sidewalk vending ordinance may only be punished by a series of administrative fines that increase in scale as the number of violations increases, or by revocation of a sidewalk vending permit (See Gov. Code, § 51039.) Furthermore, SB 946 established that violations of a local ordinance, including vending without a permit or failure to pay administrative fines, cannot be punished as infractions or misdemeanors. Despite these restrictions, SB 946 does provide the following expressly permitted regulations: • Cities may prohibit stationary vendors in residential zones outright; • Cities may prohibit sidewalk vendors from locating near certified farmers’ markets; • Cities may prohibit all sidewalk vending in a park (including beaches or open space areas) if a city has an exclusive concessionaire agreement for that site; • Limitations on hours of operation that are not unduly restrictive; • Requirements to maintain sanitary conditions and ensure compliance with the federal Americans with Disabilities Act; • Requiring the sidewalk vendor to obtain from the local authority a permit for sidewalk vending or a valid business license; and 2 • Requiring compliance with other generally applicable laws (e.g., fire safety and health code requirements). SB 946 also provides that cities can enact additional regulations, provided they serve the objective health, safety, and welfare concerns of the City. Following the passage of SB 946 in 2022, the California Legislature passed SB 972. SB 972 simplified the requirements for street vendors by introducing street vending, including a new type of retail food facility called “compact mobile food operation” (CMFO) into the food code, and limiting the equipment requirements originally established for food trucks. SB 972 defines a CMFO as a mobile food facility that operates from an individual or from a pushcart, stand, display, pedal- driven cart, wagon, showcase, rack, or other nonmotorized conveyance. Similar to SB 946, SB 972 limits violations of the California Retail Food Code for CMFOs to administrative fines. In terms of local implementation, the Environmental Health Services Division within the County of Marin’s Community Development Agency oversees the permitting of mobile vendors and enforces related laws. The Environmental Health Services Division derives its authority from California Health and Safety Code Sections 101275 and 101280, which authorize Environmental Health staff to undertake inspections, enforcement, permitting, investigations, and emergency actions in accordance with state and local regulations. II. San Rafael’s Experience with Mobile Vending Much like other local jurisdictions across California, San Rafael has seen a rise in mobile food vending following the passage of SB 946, resulting in both positive and negative outcomes. To address the negative impacts of unpermitted food vending, the Community and Economic Development (CED) Department’s Code Enforcement Division has partnered with staff in Marin County’s Environmental Health Services Division on numerous mobile vending educational and enforcement operations. These operations include educating vendors on health permitting requirements, issuing administrative citations, and seizing and disposing of unsanitary food. In May and June 2025, the City of San Rafael partnered with County Environmental Health Services, Code Enforcement, and Parking Enforcement to conduct several coordinated operations addressing unpermitted food vending. Across these operations, staff contacted 36 vendors, confiscated food from 11 vendors, issued 11 Code Enforcement citations, and gave 15 warnings. In addition, Parking Enforcement issued 20 citations, and one arrest was made for public intoxication. Similarly, in July and August 2025, Code Enforcement coordinated morning and evening operations with County Environmental Health and the Police Department to address mobile vending. These operations contacted 32 vendors, impounded food from unpermitted vendors, and resulted in eight administrative citations. Additionally, since August 1, SRPD has responded to 24 vendor-related incidents, most of which were calls for service, with varied outcomes. Of these, three were cancelled by the reporting party before officers arrived, one resulted in advice being given, three led to citations for other violations, six were gone on arrival, nine were handled, one was deemed unfounded, and one resulted in a warning. Most vendors were cooperative, and community members in the Canal neighborhood expressed appreciation for the City’s efforts to promote health, safety, and fair use of public spaces. Staff estimates that roughly 25% of the vendors were from San Rafael, with the remainder coming from outside of the area. 3 III. Impoundment of Equipment To address unpermitted vendors undeterred by administrative citations or the impounding of food, the CED Department has conferred with Marin County Environmental Health Services staff regarding impounding the equipment of unpermitted vendors, which, the County has the legal authority to exercise. The County has communicated that they are open to exploring this strategy; however, they are currently unable to impound equipment due to operational capacity constraints. Consequently, City and County staff have agreed to develop a Memorandum of Understanding (MOU) to delegate authority from County Environmental Health Services to the City to impound food-handling equipment. The ultimate goal of the MOU is to establish procedures that protect the safety of consumers while respecting the rights of vendors, ensure the safety of inspectors, and pragmatically utilize available resources. Analysis To support a healthy, accessible, and vibrant community, staff recommend adopting a three-prong approach to mobile vending in San Rafael: (i) strengthening the City’s enforcement tools; (ii) providing multiple paths to legalization; and (iii) supporting local entrepreneurship. I. Strengthening Enforcement Tools Adopting a mobile vending permitting program will establish time, place, and manner restrictions for mobile vending to address the harmful impacts associated with unpermitted vending. For example, a mobile vending ordinance requires mobile food vendors to comply with the health and safety requirements of the California Retail Food Code to ensure that the food sold by vendors is safe for consumption. Similarly, an ordinance can require vendors to maintain a litter-free area within the vicinity of the vending location and require that vendors properly dispose of any grease. Likewise, a mobile vending permitting program can require vendors to provide sufficient space on sidewalks for the passage of persons with disabilities and prohibit late-night vending as well as vending that causes excessive noise. In terms of locations, a mobile vending permitting program can limit stationary vendors to commercial and industrial zones with buffers from bus stops, business entrances and exits, other vendors, schools, farmers’ markets, and special events. Finally, a mobile vending ordinance can require vendors to comply with business and sales tax requirements that apply to all businesses. To ensure compliance with these requirements, staff recommend exploring both enhanced enforcement strategies and resources. With respect to new enforcement strategies, staff recommends that the City Council authorize the City Manager to enter into an MOU with the County of Marin to maximize enforcement options under the Marin County Environmental Health Services Division’s broader authority to enforce mobile vending laws. Expanding enforcement strategies is crucial for addressing repeat violators who remain undeterred by administrative citations. In addition to new enforcement strategies, staff have identified short-term and long-term strategies to enhance code enforcement resources. In the short term, staff recommend utilizing funding available in CED’s contractual services budget to fund a third-party consultant to enforce mobile vending laws during peak vending seasons. This external resource is essential, as CED Code Enforcement staff are only available to address unpermitted mobile vending on overtime, as they are responsible for implementing various fee-based programs during their regular hours, namely the Housing Inspection Program (HIP), Massage Inspection Program (MIP), Short Term Rentals, and the Residential Building Resale (RBR) Program. 4 II.Providing Multiple Paths to Legalization Beyond introducing local regulatory requirements, establishing a mobile vending program provides multiple paths to legalization for vendors, which in turn will offer San Rafael residents a variety of affordable food options. For instance, consistent with SB 946, an ordinance need not impose a limit on the number of mobile vendors in the City. Additionally, a mobile vending program can allow mobile vendors to vend both from eligible sidewalk locations as well as private property, provided the owner of the private property authorizes vending on their property. This private property option, administered under San Rafael Municipal Code (SRMC) Section 14.17.130 (Temporary Uses), presents an opportunity for vendors to collaborate and create a food park destination for customers, similar to the successful Mitote Food Park in Santa Rosa. SRMC Section 14.17.130 provides the CED Department Director with authority to impose performance standards on uses of one year or less, including traffic and litter control measures, emergency egress requirements, and hours of operation. If a temporary use is successful and the applicant seeks to extend beyond one year, the applicant can apply for a Conditional Use Permit with the CED Department. Ultimately, between private and public property locations, a mobile vending program can offer multiple opportunities for San Rafael residents to continue accessing affordable food. III.Supporting Local Entrepreneurship Establishing a mobile vending program also presents an opportunity for San Rafael to support local immigrant and low-income entrepreneurs, aligning with the intent of SB 946. Accordingly, staff recommend utilizing funds available in CED’s contractual services budget to pilot a local vendor priority program that authorizes the CED to collaborate with a community-based organization to identify local vendors, assist them in navigating mobile vending compliance requirements, and explore creating a food park destination on private or public property. This program thus offers a “win-win-win” scenario by improving local entrepreneurs’ ability to succeed, reducing accessibility conflicts by directing foot traffic away from sidewalks, and ensuring compliance with food safety requirements through bilingual technical assistance. In terms of timing, staff intend to lay the foundation for the local vending program over the fall and winter of 2025 and implement the program in the spring and summer of 2026 in time for peak vending season. Specifically, following City Council adoption of a mobile vending ordinance, staff will undergo a procurement process to identify a community-based organization to manage the project and then work with the organization to develop an outreach strategy with mobile vendors. The community-based organization will then work with vendors to ensure their compliance prior to the spring of 2026. Staff will implement this program on a one-year pilot basis and evaluate whether to continue or modify the program going forward. Community Outreach Over the last year, the City has received and gathered feedback and insights on mobile vending in San Rafael from brick-and-mortar businesses, residents, and mobile vendors alike. This engagement included meetings with brick-and-mortar businesses in the Canal neighborhood who expressed frustration at the uneven playing field between their businesses and unregulated mobile vendors. Likewise, staff participated in a meeting with Voces del Canal to hear concerns regarding the lack of food safety and the need to educate mobile vendors on regulatory 5 requirements. Finally, staff have engaged directly with mobile vendors through both the Together San Rafael Academy and Code Enforcement's educational and enforcement efforts. Fiscal Impact Adoption of the proposed legislation will result in new ongoing General Purpose Fund revenue in the form of mobile vending permitting fees. Staff anticipates the new mobile vending permitting fee review will be minimal and insufficient to support the addition of any new staff. Funding for the local vendor priority program has been identified in the fiscal year 2025-26 adopted budget; therefore, there is no additional fiscal impact associated with the adoption of the proposed ordinance. Next Steps Following the discussion with the Economic Development Subcommittee, staff will present a comprehensive legislative package to the full City Council for its consideration.