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04/09/2002 - Minutes (2) PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 The City Council of Salt Lake City, Utah met in Work Session on Tuesday, April 9, 2002, at 5:30 p.m. in Room 326, Committee Room, City County Building, 451 South State Street. In Attendance: Council Members Carlton Christensen, Van Turner, Eric Jergensen, Nancy Saxton, Jill Remington Love, Dave Buhler, and Dale Lambert. Also In Attendance: Cindy Gust-Jenson, Executive Council Director; Mayor Ross C. "Rocky" Anderson; Jay Magure, Mayor's Chief of Staff; Steven Allred, Deputy City Attorney; Chris Bramhall, Assistant City Attorney; Gary Mumford, Council Deputy Director/Senior Legislative Auditor; Russell Weeks, Council Policy Analyst; LuAnn Clark, Housing and Neighborhood Development Director; Stephen Goldsmith, Planning Director; Doug Dansie, Downtown/Special Projects Planner; Elizabeth Giraud, Historic Preservation Planner; Rick Graham, Public Services Director; Steve Fawcett, Management Services Deputy Director; Margaret Hunt, Community and Economic Development Director; Mary Beth Thompson, Payroll/Accounting; Karen Wiley, Grant Financial Administrator; Sandi Marler, Community Development Program Specialist; Tina Hose, Senior Human Resource Consultant; Linda Cordova, Property Manager; Nancy Boskoff, Arts Council Executive Director; Kevin Young, Transportation Planning Engineer; Anne Gerber, Program Development Manager; Greg Davis, Public Services Finance Director; Sherman Sawhney, President of Apex Transportation Consulting Group; Jim Matsumori, George K. Baum and Company; and Scott Crandall, Deputy Recorder. Councilmember Buhler presided at and conducted the meeting. The meeting was called to order at 5:32 p.m. AGENDA ITEMS #1. REPORT OF THE EXECUTIVE DIRECTOR, INCLUDING REVIEW OF COUNCIL INFORMATION ITEMS AND ANNOUNCEMENTS. No report was given. See file M 02-5 for announcements. #2. INTERVIEW AMY ROWLAND PRIOR TO CONSIDERATION OF HER RE-APPOINTMENT TO THE HISTORIC LANDMARK COMMISSION. Ms. Rowland said her background was in non-profit development. She said she wanted to bring a non-architect prospective to the Commission. She said some frustration was created because City ordinances limited what the Commission could do. She said her experience had been good and looked forward to continued service. Councilmember Saxton asked if Ms. Rowland had been involved in any home renovations. Ms. Rowland said yes. Councilmember Saxton asked if Ms. Rowland had appeared before the Landmarks Commission. Ms. Rowland said no. Councilmember Saxton asked if the workload had increased and what changes had occurred during Ms. Rowland' s service. Ms. Rowland said the workload had not increased but there had been a change in the amount of new construction in historic districts. Councilmember Saxton asked about the thought process when dealing with new construction in a historical district. Ms. Rowland said City ordinances were very specific and did not allow personal preferences. All Council Members were in favor of the re-appointment. #3. INTERVIEW JOHN DIAMOND PRIOR TO CONSIDERATION OF HIS APPOINTMENT TO THE PLANNING COMMISSION. 02 - 1 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 Mr. Diamond said he lived in Denver and Chicago before moving to Salt Lake City ten years ago. He said he had been an architect for 20 years which included extensive involvement with urban density issues. He said he had been involved in large-scale projects on the University of Utah campus. Councilmember Saxton asked if Mr. Diamond had been before the Planning Commission and what his experience was. Mr. Diamond said yes but could not recall the specific details. Councilmember Saxton asked how Mr. Diamond saw his role on the Planning Commission. Mr. Diamond said he wanted to bring additional cohesion to the Planning Commission. He said his experience making difficult decisions in large urban communities would add another dimension. Councilmember Saxton asked how long Mr. Diamond lived in Denver. Mr. Diamond said three years. Councilmember Saxton asked if Mr. Diamond saw any subtle development differences or similarities between Denver and Salt Lake. Mr. Diamond said Salt Lake was experiencing similar transportation issues and people adjacent to transit corridors would be impacted. Councilmember Saxton said she was concerned about neighborhood perspective and asked what Mr. Diamond would bring to the Planning Commission in that regard. Mr. Diamond said with the proximity of neighborhoods to the downtown area he felt it was important to have cohesion. Councilmember Christensen said as an architect Mr. Diamond had a lot of personal preferences and insight. He asked how those preferences were weighed in the decision- making process. Mr. Diamond said personal preferences needed to be set aside when serving on the Commission. He said it was important to look at the whole picture and understand the impacts. Councilmember Jergensen asked what the decision making process was when there were divergent views between the business community and the neighborhood. Mr. Diamond said Commission members needed understand the issues. He said he wanted to attend community council meetings to get resident input. Councilmember Buhler asked what Mr. Diamond's understanding was of a conditional use. Mr. Diamond said conditional use was a gray area and the subject property was generally in transition. He said the use needed to be based on what was appropriate for the neighborhood or area. Councilmember Buhler said if a petition was opposed by hundreds of residents how much consideration should that be given. Mr. Diamond said consideration had to be given to those who would be impacted the most. He said the applicant's needs also had to be considered. All Council Members were in favor of the appointment. #4. INTERVIEW JOSEPH PERRIN PRIOR TO CONSIDERATION OF HIS APPOINTMENT TO THE TRANSPORTATION ADVISORY BOARD. Mr. Perrin said he was an assistant research professor at the University of Utah. He said his main interest was teaching transportation issues. Councilmember Saxton asked Mr. Perrin how he felt he could contribute to the board. Mr. Perrin said various modes of travel needed to compliment each other. He said it was important not to focus on one aspect but to have a balanced approach. All Council Members were in favor of the appointment. #5. RECEIVE A BRIEFING REGARDING HOSPITAL REVENUE REFUNDING BONDS FOR INTERMOUNTAIN HEALTH CARE. View Attachment Jim Matsumori and Gary Mumford briefed the Council with the attached handout. Mr. Mumford said the Council needed to be aware $150 million would be refinanced through 02 - 2 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 Utah County even though the public hearing notice stated $175 million. He said the higher figure was used in case interest rates dropped allowing a larger amount to be refinanced between now and when the bonds were actually sold. Councilmember Buhler asked about the financing. Mr. Matsumori said the technical term was conduit financing. He said the Internal Revenue Service' s designation was a 501C3 which required a municipality to actually issue the bonds. Councilmember Buhler asked if the City had any liability or risk. Mr. Matsumori said no. Councilmember Christensen asked why the bonds were being refinanced by Utah County. Mr. Matsumori said the Utah Interlocal Cooperation Act allowed a single municipality to issue bonds for other municipalities. He said Salt Lake City was the issuer in 1990 and 1992. He said Utah County had the second largest hospital in the system and felt it was their turn to issue the bonds. Councilmember Christensen asked if the City would lose revenue by releasing the bonds. Mr. Matsumori said no. All Council Members were in favor of the proposal. #6. RECEIVE A BRIEFING REGARDING THE FLEET MANAGEMENT AUDIT REVIEW. View Attachment Michael Sears, Rick Graham, and Sherman Sawhney briefed the Council with the attached handouts. Mr. Sawhney presented a summary of the audit report. Councilmember Buhler asked about the age of the fleet. Mr. Sawhney said he did not find any major problems. He said the attached charts contained a detailed breakdown. Councilmember Christensen asked if there was a way to acquire vehicles which would be less expensive than a lease-purchase. Councilmember Buhler said the City could consider bonding. Cindy Gust-Jenson said bonding was an option which could be explored. She said in the past the City bonded for garbage trucks. She said that decision was not beneficial to the City because the bond payments lasted longer than the trucks. Mr. Sawhney said the advantages and disadvantages of leasing were included in the report. Councilmember Buhler asked if a compressed natural gas alternative was considered when the cost for fleet replacement was calculated. Mr. Sawhney said no. Councilmember Christensen asked if any changes were being made from the preliminary recommendations of the audit. Mr. Graham said some changes were made during the audit process. He said the recommendations had been reviewed and additional changes needed to be made. He said the Administration was comfortable with the audit and felt it would be helpful. Mr. Graham said the main concern was creating a viable replacement process which could be funded over the long term. Councilmember Buhler said the Administration could come back to the Council in a few weeks and discuss the audit in detail. Councilmember Lambert said he understood 60% of the fleet was evaluated of which 25% was underutilized. He asked if that percentage would hold true for the other 40% and if so, could more than 26 vehicles be eliminated. Mr. Sawhney said it was possible because they did not evaluate any areas with fewer than 16 vehicles. Councilmember Saxton asked about maintenance costs for operating two shifts. Mr. Sawhney said the maintenance costs were minimal compared to the benefits the City would see. He said the main cost was the people needed to operate two shifts. He said the system could be reorganized and underutilized employees could be reassigned so additional people would not be required. Councilmember Buhler asked if there were opportunities other than maintenance where the City could use outside service providers. Mr. Sawhney said there was some discussion about contracting the whole operation. Councilmember Buhler asked if that 02 - 3 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 was feasible. Mr. Sawhney said typically a contractor would use existing facilities and bring in their own people to run the operation. He said it was an involved process but would allow the City to control the assets without turning the entire operation over to a contractor. He said if an outside vender was used, the City needed to retain control of all assets. He said the contractor could be replaced if things did not work out. Councilmember Saxton asked if the airport facilities were considered in the audit. Mr. Sawhney said they were not included but he tried to get some information about them. He said the airport had a body shop and there was talk about them taking over that aspect of the operation. He said more space would be available in the fleet compound if the body shop work was outsourced. Councilmember Saxton asked what was involved in outsourcing the operation. Mr. Sears said that question would be answered by continuing with the second part of the audit which was the competitive bidding process. He said the Council needed to decide if they wanted the consultant to continue with the second phase. Councilmember Buhler asked for more information about the original scope of the audit. Mr. Sears said the original audit was for a detailed analysis of the entire Fleet operation. He said the City had not been through a full competitive bidding process and the Administration wanted the consultant to guide them through the process. He said the process could then be duplicated by the Administration for other divisions of the City. Councilmember Buhler asked about the timeframe for completing the second phase. He said the completion time depended on how much detail the Council wanted to include and whether the Council wanted formal or informal bids. Councilmember Buhler suggested proceeding with part two and scheduling a briefing with the Administration to go over the audit in more detail. All Council Members were in favor of the recommendation. #7. RECEIVE A BRIEFING REGARDING VENDING REGULATIONS IN THE PUBLIC WAY AND PUBLIC PARKS. View Attachment Steven Goldsmith, Doug Dansie, Russell Weeks, and Mayor Anderson briefed the Council with the attached handout. Councilmember Buhler asked for a summary of the issue. Mr. Weeks said this was the Council's first briefing on vending carts. He said he felt the top three issues were: 1) where carts could be located, 2) should carts be located in parks, and 3) should the $175 fee be retained. Councilmember Buhler asked about the $175 fee. Mr. Dansie said the proposal would eliminate the fee and allow the Administration to establish a policy where fees could be adjusted according to sites. He said if the Administration wanted to encourage participation in a certain area, a lower fee could be used. Councilmember Turner asked if two people were required to operate the carts. Mr. Dansie said one operator was legal. Councilmember Turner said he was concerned about enforcement, food-handler permits, insurance, health certificates, and general safety and health issues. He said westside residents were opposed to carts in residential areas and areas where they competed with established businesses. Councilmember Christensen said he agreed with keeping carts out of residential neighborhoods. He asked if vendors were required to have a business license. Mr. Dansie said vendors were required to have a business license which had to be renewed every year. He said if they were located on public property they also had to renew their land lease. He said in order to receive a business license, vendors had to have a food handler' s permit, permission from the County Health Department, and proof of 02 - 4 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 insurance. Councilmember Christensen said he felt fees needed to be charged for using the public right-of-way. He said he felt larger fees could be charged for prime locations. He said he was concerned about giving vending cart owners an unfair advantage by allowing them to operate in front of established businesses. He said he felt City parks could be used on weekends or for short periods of time. He said the Administration needed to establish a permit process to limit the number of vendors allowed in one location. Councilmember Love asked how park concessionaires felt about the proposal. Mr. Dansie said each park was different and the proposal was written so the Administration could devise a policy for each park based on current contracts and needs. Councilmember Saxton asked about the spacing being proposed. Mr. Dansie said two vendors were allowed on Main Street from South Temple to 400 South and one on the other blocks. Councilmember Saxton said she agreed with charging fees and protecting established businesses. She said she was concerned about health issues and asked about the inspection process. Mr. Dansie said vending carts were inspected similar to restaurants. Councilmember Saxton asked if inspections were done on a monthly basis. Mr. Dansie said he did not know how often inspections were done but vendors had to take their carts to a valid commissary for the inspection. Ms. Gust-Jenson said staff would get back to the Council regarding the frequency of inspections. She said the Health Department probably lacked the resources to adequately monitor the situation. Councilmember Saxton said she wanted to know what kind of problems had been logged with the Health Department or the City. Councilmember Buhler said the Council could request a briefing from the Health Department. Councilmember Lambert said he was also concerned about the effect on existing businesses. Discussion was held on advancing the proposal with a $175 fee. Mr. Dansie said the fee was to lease public property. He said vendors located on private property would not pay a fee. Councilmember Lambert asked if there was a compelling reason for not charging the fee. Mr. Goldsmith said he did not think there was a compelling reason. He said he thought it was something the Administration wanted to analyze. He said he felt it might not be in the City's best interest to have a flat fee. He said he preferred to analyze each case individually. Discussion was held on Council Members concerns regarding the effect on established businesses, property taxes, competition from vendors, criteria for fees based on a sliding scale, collecting a percentage of sales, covering regulatory costs, private property zoning, and City parks. Council Members were in favor having an ordinance drafted with a $175 fee. Councilmember Buhler said the Council would entertain an amendment prior to the public hearing containing fees based on a sliding scale. #8. RECEIVE A BRIEFING REGARDING SIDEWALK ENTERTAINMENT AND ART DISPLAYS. View Attachment Steven Goldsmith, Russell Weeks, Mayor Anderson, and Jay Magure briefed the Council with the attached handout. Councilmember Christensen said he was concerned about giving street artists an advantage over existing businesses. Mr. Magure said the sale of art was protected under the first amendment rights. Councilmember Buhler said there was legal support for charging fees and regulating art activity. Councilmember Christensen said he understood freedom of expression rights but the sale of art was a different issue. 02 - 5 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 Councilmember Love said she supported the proposed ordinance and asked about the $5 fee. Mr. Magure said the proposed fee would be consistent with other permit charges. Councilmember Love asked if Councilmember Christensen had heard from businesses concerned about the proposal. Councilmember Christensen said he felt it was a matter of principal. He said contributing freely to an artist was different than purchasing a product. Councilmember Buhler said if a commercial enterprise was established where art was being sold, then a business license and permit fee should be required. He said it was different if an artist was performing and people chose to give the artist money. Mr. Goldsmith suggested trying the proposal for one year to see what kind of participation there was. He said if it looked like artists were making a lot of money the City could come back and look at assessing fees. He said he felt this would be an inexpensive way to enliven the City. Councilmember Saxton suggested specific dates and locations could be established where artists could promote themselves. Councilmember Turner said he was unclear on whether or not this was a legal issue. Councilmember Buhler said the Council could ask for a legal opinion from the City Attorney' s Office. Councilmember Lambert said he felt if an artist was actually operating a business some type of permit could be required. A straw poll was taken on the ordinance as proposed with a sunset date of one year. Council Members Turner, Saxton, Christensen, and Buhler were opposed. Council Members Love, Jergensen, and Lambert were in favor. Discussion was held on requiring a business license, art sales, constitutional rights, free expression, and permit fees. Councilmember Buhler said he felt there was enough support to advance the proposal with a business license requirement and the $175 fee. He said as part of the proposal, the Council wanted the Attorney's Office to prepare a legal opinion regarding any constitutional issues which might be involved. Ms. Gust-Jenson said only one ordinance had been prepared and asked if the Council wanted to amend that version or have an additional ordinance drafted. Council Members were in favor of two separate ordinances. Mr. Weeks asked if the proposed ordinances would include the Downtown Alliance's suggestion requiring vendors to relocate during special events. He said the Administration supported the Alliance's recommendation. Councilmember Members were in favor of including the language in both ordinances. #9. RECEIVE A BRIEFING REGARDING A LOAN PROGRAM BETWEEN COMMUNITY AND ECONOMIC DEVELOPMENT AND BUSINESSES ADJACENT TO SOUTH TEMPLE RECONSTRUCTION BETWEEN MAIN STREET AND VIRGINIA STREET. View Attachment LuAnn Clark and Gary Mumford briefed the Council with the attached handout. Ms. Gust- Jenson said two similar loans had been done in the past. She said the purpose was to help businesses impacted by construction projects. She said strict criteria had been established to reduce the City's risk. Councilmember Christensen asked how this loan differed from other construction loans. Ms. Clark said this proposal was similar to loans made on the 400 South and Main Street projects. Councilmember Christensen asked what businesses were eligible for these loans. Ms. Clark said anyone with a business license would be considered. Councilmember Buhler asked if this loan program would be available when the 1300 South 1700 East area was reconstructed. Ms. Clark said yes at the Council' s request. Councilmember Saxton said even though a business had a license, if they were not operating they should not be eligible for a loan. Ms. Clark said that was why more 02 — 6 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, APRIL 9, 2002 information was being requested on their last three years of operation. Councilmember Love asked if the Administration cared how the money was used. Ms. Clark said the use had to be business related. Councilmember Love asked if the money was intended for infrastructure or operational needs. Ms. Clark said for operational needs. Councilmember Christensen said there was a potential for a lot of construction projects. He said the City needed to decide if this was the direction they wanted to go. Councilmember Saxton said these loans started with light rail construction. She said if the City extended this to other major reconstruction projects, the City was moving into a totally different arena. Councilmember Jergensen said he understood the City's desire to provide some reasonable assistance. He said that assistance needed to be defined. He said asked if this proposal was approved, would the City be obligated to make future loans. He suggested establishing a subcommittee to address the issue. Councilmember Christensen said he wanted the Administration to establish some ongoing loan criteria relating to rates and eligibility. The Council was in favor of having Council Members Jergensen, Christensen and Turner serve on a subcommittee. #10. HOLD A DISCUSSION REGARDING CDBG (COMMUNITY DEVELOPMENT BLOCK GRANT) , ESG (EMERGENCY SHELTER GRANT) , HOPWA (HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS) AND HOME (HOME INVESTMENT PARTNERSHIPS PROGRAM) . This item was moved to April 16, 2002. #11. CONSIDER A MOTION TO ENTER INTO EXECUTIVE SESSION, IN KEEPING WITH UTAH CODE, TO DISCUSS LABOR NEGOTIATIONS. No Executive Session was held. The meeting adjourned at 10:42 p.m. sc 02 - 7 SALT LAKE CITY COUNCIL STAFF REPORT DATE: April 5,2002 SUBJECT: Interlocal Agreement with Participating Counties to Allow IHC Health Services,Inc.to Refinance $150 Million of Hospital Revenue Bonds STAFF REPORT BY: Gary Mumford CC: Rocky Fluhart,Jay Magure,Roger Cutler,Chris Bramhall Document Type Budget-Related Facts Policy-Related Facts Miscellaneous Facts Interlocal Salt Lake City's only role Allowing an enterprise to Utah County has agreed agreement and is to hold a TEFRA secure tax-exempt bonds is to issue the bonds notice of TEFRA hearing and approve an a form of development necessary to refinance the hearing interlocal agreement with subsidy,but it does not original bonds. the participating counties. represent any direct cost to Salt Lake City taxpayers. IHC Health Services,Inc.is requesting that Salt Lake City allow IHC to refinance private activity bonds that were issued by Salt Lake City in 1990 and 1992 to build several hospitals in Salt Lake,Utah,Cache,Iron,Millar,Washington,and Weber Counties. Utah County has agreed to issue the new bonds. IHC is requesting that the Salt Lake City Council hold a hearing on May 7, 2002 as required by the Tax Equality and Fiscal Responsibility Act (TEFRA) and,following the hearing,consider approving an interlocal agreement with the participating counties. The interlocal agreement process permits the financing to be accomplished by a single local government resulting in a larger, more marketable bond issue and in reduced administrative costs. Bond counsel affirms that the bonds are obligations of IHC, and neither Salt Lake City nor any other local government has any risk. The original bonds were issued for the following purposes: 1. Primary Children's Medical Center,Salt Lake City 2. Wasatch Canyons Hospital,Salt Lake County 3. Cottonwood Hospital Medical Center,Murray 4. Orem Community Hospital,Orem 5. Alta View Hospital,Sandy 6. Delta Community Medical Center,Delta 7. Fillmore Community Medical Center,Fillmore 8. Utah Valley Regional Medical Center,Provo 9. McKay-Dee Hospital Center,Ogden 10.McKay-Dee Hospital Replacement,Ogden 11.LDS Hospital,Salt Lake City 12. American Fork Hospital,American Fork 13.Dixie Regional Medical Center,St.George 14. Logan Regional Hospital,Logan 15. Dixie Regional Medical Center Replacement,St.George 16.Valley View Medical Center Replacement,Cedar City At the City Council briefing Chris Bramhall from the City Attorney's Office and Jim Matsumori of George K. Baum & Co., IHC's financial advisor, will be available to explain general concepts regarding private activity bonding or respond to Council Members specific questions. One question could be why IHC selected Utah County to issue the bonds rather than Salt Lake City since Salt Lake City was the original issuer. OPTIONS: Following the briefing, the Council may wish to consider the following options: 1. Set the date for a public hearing in compliance with the Tax Equality and Fiscal Responsibility Act for May 7. 2. Request additional information. After receiving additional information, the Council can set a TEFRA hearing (at the Council's special meeting on April 25) to be held on May 14, 2002. Bond counsel is requesting that the public hearing and consideration of the interlocal agreement not be delayed past May 14th. 2 ROGER F. CUTLER SALT 10 Kati MIT GOR�l,O © �§ �li i� ROSS C. ANDERSON CITY ATTORNEY LAW DEPARTMENT MAYOR COUNCIL TRANSMITT 11 TO: Rocky J. Fluha DATE: April 4, 2002 Chief Administrative Officer FROM: Christopher E. Bramhall Assistant City Attorney SUBJECT: $150,000,000 Hospital Revenue Refunding Bonds, Series 2002 (IHC Health Services, Inc.) DISCUSSION: In 1990 and 1992, Salt Lake City issued private activity bonds for IHC to finance projects in Salt Lake, Utah, Cache, Iron, Millard, Washington and Weber Counties. IHC now desires to refund these bonds. This time around, Utah County will issue the bonds, not Salt Lake City. Salt Lake City's only role in the refinancing is to hold a TEFRA hearing, and approve a new interlocal agreement with the participating counties. It is proposed that the necessary action items be scheduled with the City Council as follows: April 16: Chris Bramhall and Jim Matsumori of George K. Baum & Co, IHC's financial advisor, to brief City Council; Council to schedule TEFRA hearing for May 7, and approve publication of the notice. May 7: Council to conduct TEFRA hearing; Council to adopt resolution approving the issuance of the bonds by Utah County; 451 SOUTH STATE STREET, ROOM 505, SALT LAKE CITY, UTAH 841 1 1 TELEPHONE: 8O 1-535.778E1 FAX: 801-535-7640 aecvceo anPew Council to adopt resolution approving the Interlocal Agreement. I have enclosed a Memo from Jim Matsumori to Roger Cutler, explaining the transaction. I have also enclosed a form of the TEFRA hearing notice. Forms of the documents required for the May 7 meeting can be supplied at a later date. CONTACT Chris Bramhall, Assistant City Attorney, 535-7683 PERSON: MAR.20.2002 11:50RM GEORGE KBAUM&CO NO.669 P.2/2 Memo To: Roger Cutler, Esq. From: Jim Matsumori Date: March 20, 2002 RE; $1.50,000,000 (approximate) Hospital Revenue Refunding Bonds Series 2002, II-IC Health Services, Inc. Utah County has agreed to issue refunding bonds for and on behalf of Ilk Health Services, Inc. ("IHC") in an aggregate principal amount'of approximately $150,000,000, These bonds will refinance bonds issued in 1990 and 1992 that financed projects located in Cache, Iron, Millard, Salt Lake, Utah, Washington and Weber Counties, Salt Lake City was the issuer of both the Series 1990 and 1992 Bonds, Please recall that the Utah Interlocal Cooperation Act permits the financing to be accomplished by a single municipality acting as the conduit issuer, This results in economies of scale, larger and more marketable bond block sizing, the elimination of duplication of effort, and therefore a reduction of health care service costs. In order to accomplish this financing, it is necessary for each municipal entity to: 1) enter into an interlocal cooperation agreement with Utah County authorizing Utah County's issuance of refunding bonds; and, 2) hold a TEFRA hearing where public comment would be received. These two items could be accomplished at the same meeting but it is necessary that the notice of the TEFRA hearing be published in the local newspaper at least 14 days prior to the hearing, The bonds are a full and unlimited obligation of IHC,not Salt Lake City (or even Utah County), Salt Lake City has no risk and will not be required to allocate its proportionate share of the bonds as "bank qualified," I would welcome the opportunity to meet with you, City Council members, Administration, etc., to answer any questions about the transaction, the bonding process and to request the publication of the TEFRA hearing notice, PIease Iet me know if such a meeting is necessary or desired. I would plan on being in attendance at the Council Meeting when the TEFRA hearing is held and the interlocal cooperation agreement considered, to address any questions, My firm, George K. Baum& Co. is the financial advisor for IHC, If you have any concerns or require further information, please call me at(801) 538-0351 or Chris Walrath of Chapman & Cutler(bond counsel)at(312) 845-3843. Thanks again for your assistance. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that a public hearing will be held on Tuesday,May_,2002,at 6:00 P.M.,in Council Chambers,451 South State Street,Salt Lake City,Utah,by the Municipal Council of Salt Lake City, Utah (the "City") regarding a plan by Utah County, Utah (the "Issuer") to issue its revenue bonds (the "Bonds") in one or more series and in an aggregate principal amount not to exceed$175,000,000. The proceeds of the Bonds will be loaned to IHC Health Services,Inc.,a Utah nonprofit corporation(the"Corporation"),and used,together with other funds, for one or more of the following purposes: (a) prepay certain loans made to the Corporation from the proceeds of the Salt Lake City,Utah Flexible Rate Revenue Bonds,Series 1990(Pooled Hospital Financing Program)issued in the original aggregate principal amount of $87,000,000;(b)prepay certain loans made to the Corporation,resulting in the refunding of all or a portion of Salt Lake City,Utah's(i)Hospital Revenue Bonds, Series 1992(IHC Hospitals, Inc.) issued in the original aggregate principal amount of$98,385,000, (ii) Hospital Revenue Bonds, Series 1992 (IHC Hospitals, Inc.) Indexed Inverse Floating Rate Bonds (Indexed INFLOS) issued in the aggregate principal amount of$17,500,000, and(iii)Hospital Revenue Bonds,Series 1992(IHC Hospitals,Inc.)Indexed Caps Bonds issued in the aggregate principal amount of$11,800,000; (c) funding a debt service reserve fund, if deemed advisable by the Issuer and the Corporation; and (d) paying certain expenses incurred in connection with the issuance of the Bonds, including any premium and fees associated with the credit or liquidity enhancement of the Bonds,if credit or liquidity enhancement is deemed advisable by the Issuer and the Corporation. The health care facilities being refinanced with the proceeds of the Bonds are owned and operated by the Corporation and are described as follows: (1)Primary Children's Medical Center,a 232-bed general acute-care children's hospital located at 100 North Medical Drive, Salt Lake City, Utah; (2) Wasatch Canyons Hospital, a behavioral health facility located at 5770 South 1500 West, Salt Lake County, Utah; (3) Cottonwood Hospital Medical Center, a 227-bed general acute-care hospital located at 5770 South 300 East, Murray, Salt Lake County, Utah; (4) Orem Community Hospital, a 20-bed general acute-care hospital located at 331 North 400 West,Orem, Utah County,Utah; (5)Alta View Hospital,an 80-bed general acute-care hospital located at 9660 South 1300 East, Sandy, Salt Lake County, Utah; (6) Delta Community Medical Center, a 20-bed general acute-care hospital located at 126 White Sage Avenue, Delta, Millard County, Utah; (7) Fillmore Community Medical Center,a 20-bed general acute-care hospital located at 674 South Highway 99,Fillmore,Millard County,Utah;(8)Utah Valley Regional Medical Center,a 395-bed general acute-care hospital located at 1034 North 500 West,Provo,Utah County,Utah;(9)McKay-Dee Hospital Center, a 284-bed general acute-care hospital located at 3939 Harrison Boulevard, Ogden, Weber County, Utah; (10)McKay Dee Hospital Center Replacement Hospital Facility located at 4401 Harrison Boulevard,Ogden,Weber County,Utah;(11)LDS Hospital,a 520-bed general acute-care hospital located at Eighth Avenue and C Street, Salt Lake City, Utah; (12) American Fork Hospital,a 72-bed general acute-care hospital located at 170 North 1100 East, American Fork, Utah County, Utah; (13) Dixie Regional Medical Center, a 137 bed general acute-care hospital located at 544 South 400 East, St George, Washington County, Utah; (14) 1342972.01.01 1115302 Salt Lake City Logan Regional Hospital, a 148 bed general acute-care hospital located at 1400 North 500 East, Logan, Cache County, Utah; (15) Dixie Regional Medical Center Replacement Hospital Facility located at 577 South River Road, St George, Washington County, Utah; and (16) Valley View Medical Center Replacement Hospital Facility located at 1303 North Main Street, Cedar City, Iron County, Utah. The public hearing referred to above is required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"). Interested individuals are invited to express their views, both orally and in writing, on the proposed issuance of the Bonds. Comments at the public hearing are invited. Written comments may be submitted to the City at its offices located at 451 South State Street, Salt Lake City, Utah 84111, Attention: Council Administrator, until the commencement of the public hearing Additional information can be obtained from the City at its office shown above. Subsequent to the public hearing, the Municipal Council of the City will consider whether to approve the issuance of the Bonds for purposes of Section 147(f) of the Code. DATED: May , 2002. SALT LAKE CITY, UTAH By City Recorder - 2 - Council Members, This is a Summary of the Fleet Management Audit, provided by the consultant. This is item No. 6 on the April 9th Work Session agenda. April 2002 `'*S Ewa; / 'e, • _ 1 1 SALT LAKE CITY, UTAH • Assessment Fleet Operations andOptimization Plan ffr Apex Corporation In association with Public Financial Management Transportation Consulting Group Suite75 0 6 0 Newport Center Drive 7415Sark Way6 e rt Ce to S apo Cutty n vill MD 208 2-4 02 Newport Beach,CA 92660-6408 La o s e 8 3 po Yt � 30 921-1- 949-721-9422 946 3 :fji:•:;. 'i:����iiiiijiiii:::�'::''"$ Salt Lake City Fleet Oper ations s Assessment and Optimization mization Plan II FLEET UTILIZATION :> , • Our evaluation of the sub-components of fleet utilization included the following components: - Fleet Age Distribution Analysis Analysis Distribution- Milea a Y 9 Expected versus actualage — e sus 9 age Fleet use by year ea r - Un derutilized vehicles bycla ss — vehicle. one Savings byreducing h rolling stock. ' Ior 60 percent of the o st' wof l 67 vehicles e'I review 0 included a det ailed Our evaluation P 9 i of I with theexception r itslife cycle, eceto fleet isbalanced in age across of the The composition 9 cYP 3/4 Ton Pickup Trucks. (Page 13 14Ton ando c 1T n Utility,Vs o Ut Administration, SU Police tY P ( 9 Exhibit A ) • The composition of the fleet is balanced in mileage a across its lifecycle, with the excepti on of Police A minist rat' n and Administrative ministrativa Gen eral Sedans. 14 Exhibit B) The r vi w of expected v r us actual average age indicates icate s that the fleet warrants is for Police Administration,standardso vehicle replacement h rrent e c e to the current adjustments ' i Vehicle, 1 4 Ton and 3 4 Ton Pickup n SUVs, o General Sedans,• Administrative Ge e tY > : > ' Trucks to better align the actual to the expected average age. (Page 16ExhibitC) ApexTransportati on Consulti Grou P Salt Lake City Fleet Operations ations Assessment and Optimizatio n Plan • Based on our evaluation of 1,067 vehicles: - 261 vehicles, excluding Police Patrol, indicated underutilization y.f.. - 80 Police Patrol Vehicles suggested underutilization - No 2001 vehicles were considered underutilized as their utilization data was of a short duration. (Page21 Exhibit E) The total estimated lifetime savingsfeasible from removing 26 vehicles, representing 1 0 percent of the fleet identified above as underutilized, and excludingP li P Police Patrol, isr ' , projected P ] P Exhibit to be 1 327 650 (Page e 21 Exhb t E) � • The draft Take Home Policy as prepared byfleet management emen t operations dated Janu ary ry1 2001 covers key aspects ofa good take home policy document.. • • We did not find any evidence of an annual vehicle justification ati on review process. Th e vehicle Justification pro cess will create an objective eevaluation to determine th validity of currently assigned ned and additio nally requested uested vehicles cles to user agencies.es • • 2 Apex Transportati n Consulting n Gr oup p ................................ .... Salt Lake City Fleet Operations Assessment and Optimization Pla n 1, kW. 4 III COST ALLOCATION EVALUATION f.-s'..*'t;:i #4:-.!;;:. - ,,,i, 1,/, ,,T. ,,„.,i- -..t- • Based on the current fleet size and manpower capabilities, the current billing mechanism is avb Vh y ,:i , satisfactory. The fleet a e ncY policy not tomaintain a cash reserve balance for purposes oses beyond the payment of known wn liabilities should be reexamined. The framework of an internal servic e fund and its ab ili tomaintain retained tained earnings makes it aviable entity toPr vide for unexPcted a a ces P v ri n in maintenance expenditures. e ' r FY2 2 wasefficient n to theextent that the resultsof The billingsystem prior to 00 e c e t e e t net P r for services less operating expenditures) were within a five percent (charges o operations c 9P 9 P )C 2 annually on thepositiveor negative side. Thesize of margin inanddidnot exceed 90 000 a ua e a o $ 9 9 Y revenue base of 5.5 million and utilizinga billingsystem that is not labor thevarianceon a Y i intensive fortheuseror the fleet agency s commendable. ntens a 9 cY SHOP LABOR RATE Thebudgeted shoplabor rate for Fleet Operations in Salt Lake Cityis $56 an hour and is P labor rateof 7 per hour'. below the average commercialo 5 The budge ted labor rate of 5600 an hour is achi ved as a result of recovering certai n .....................: .: .:.:::::>:>:::::::::: administrative and parts overhead charges through a parts surcharge, a work sublet surcharge, a fuel surchargeand offsetting exPenditor s withrevenuesf from warranties and cIaim' . s ii Apex Transportation Consuiti G u p • Salt Lake City Fleet et Operations ations Assessme nt and Opti mization n P/a n 1, i••"• :ram::. IV FINANCIAL PERFORMANCE ANALYSIS { '-= • Based on the analysis of fleet budget data for theperiod 1996 to 2001, Salt Lake Cityfleet ,,,,giay51, Y 9 � Y,(_,-t,„,>• management has demonstrated good management focus in several areas of financial performance. Overall, based on the review of the financial pe rformance,mance it appears to ush that P PP the current fleetb budgetary controls o aresatisfactory. 9 rY s • A key macro o m m r measurement n tool is net et operations, h tedifferen ce betwe en Charges es for Services and Operations Costs The fle et net operations ti on have three e years in the red an d d threeyears 'in theblack, b ac aggregating to a i iv positive e balance of $21,800 over thesix P � s x years, (Page a 41 9 I • The 1 -20 1 996 0personnel costs increase c ease is18.67 percent e n ce t compared ed tothe CPIof P P 17.3 3 percent. Maintenance costs, f I h vincreased ue ae .4 8 er n ce percent while theCPI has s P increased 17.3 3percent. Chargesfor o servicesincreased c eased 3.4 percent from e t 19 96 to P 2001 while the CPI rose 17.33 percent. (Page 41-43) 4 Apex Trans portati n Consulting Group Plan Optimization a and O t i ns Assessment City Fleet Op erations / Lake Salt pegat P d F $. V VEHICLE REPLACEMENT ANALYSIS /4,,, R/p olici. . =f, '��- ' '-' • The correct replacement lifecycle can be evaluated through conductingan economic life cost , � � t p 9 ti`;„r '1, analysis. Such an analysis objectively determines the ideal time to replace a particular unit. There are two components to the development of an economic life analysis model. First is P P the curren t acquisition cost and second is th maintenance cost per mile (C PM) for v ri ous model years pe rtaining inin9 to th e spe cific class of vehicle under w. Therefore, refore the integrity ri tY " i N)4 Exhibit' ifi n importance. nce (Page 6 ' of significant ca t CP M dat as 0 f the maintenance 9 P 9 Hard for replacement sta d s industry comp ared to d lifearele c of the ThE. results cycle rY si milar'lar equipment me nttoens ure that the results are wi hin acceptable abIe Parameters. To s umm rize com parison ariso n of the recom mend ed life cyc le versu s the current nt replacement life cyc le, either being uti lized by Salt Lak City or beingcon sidered,d indicate that t he reco mmended mmended re P Iacem nt cy cI is mar ginally inall longer. The reco mmend ed replacement cyc les ar e consistent wi h the threeguiding principles of fleet available and functional. h fleetaffordable,whi h are to maket e c management operation, ALY IS S> ECONOMIC L IFE AN iiiiii: > • The basic premise of economic life analysis is that at some point in the equipment or vehicle cost (ownershipplus i rise so rapidly that the total ni life, the maintenance will begin to unit's 9 P Y in out point . Itisat this bottoming rie nbeginto s<<> <� ; r willbottom out and maintenance and repair) p n . theend o f its economic c life.reached unithas h the 0 nt the cost cu rve th at t Based on the econ omic life analysis Police Patrol and P lic eAdministrative are recommended nded forafive-year replacement Iace ment plan. Adm inistrative ati General, raI SUV , 1 Ton Uti lity, 1/4/ 1/2/3/ 4T0 Ton Transportation Consult' Grou 5 Apex P o Salt Lake City Fleet et Operations ations Assessment Optimization P/a Plan - 1-4 ft, 4 Pickups are recommended for an eight year replacement plan and the International 2674 6x4 z 1, .„=44, and Volvo WXR64 are recommended for a nine year replacement plan. (Page 51-54) "'1:- 4 EVALUATION OF RENTING VERSUS PURCHASE OF FLEET REQUIREMENTS • Parallel to th e assessment of re Iacem ent requirements and criteria, the City fleet management should evaluate versus re nting in9 as an alt ernative solution. • Ideal candidates for such an v l i n e a uat o arevehicles vece s that accumulate less than 12, 000 miles annually and are not subject to excessive wear and tea r. Five classes of vehicles, totali n 9 474vhi vehicles, are candidatesforthis evaluation i v al i uat on process. ocess. (PageEx hibit 59 Exhi i W) ) The, five clavhi ofvehicles, Admini strative V Sedan, SUV, Ton Ut ility, 1/4 To n and n 0 Pickup Tru cks have annual mil eage a utilizatio n of le ss than 12,000 miles. es Ba sed edon th e acquisition cost (Iess salvage e va lue) d th maint enance ra te applied ed to the lifetim e e projected miles, the total life cycle e cost is calculated. Fu rther,r thecost is divided by the projected ected lif e span toarriv e at am mo nthly Y cost The ne xt step is to evaluate uate the competitiveness iv eness of th e monthly cost wit h the rental.. It sho uld d be noted that the rental option i s no ne cessarily eces aril s cheaper in e thelong Y P o run as the 9 re ntal i bus n mustal so a so recoup th e te replacement acemen an d costlike a the City fle et. However, the renting option gives the City abr breather to assess real ne eds d fro m tho se that are merely e I e convenient. Y REPLACEMENT FUNDING REQUIREMENTS With out out a lease purchase ase financing me chanism,m the Ci wo uld have e to appropriate s to 6 .8 million for theperiod - 20 2 03 011. Theaverage r n e a e annual funding do would oud be .7 6 5 million. Ii n. The 9 9 o h e 6 Apex Transportation Tr s nation Consulting Cons I in Group p ....................................... • • • • Salt Lake City Operations O rations Assessment and Optimization Plan °"` K'" 2003-2005 appropriation would be a fiscally prohibitive $17.1 million. Therefore, a cash x '< option is not recommended. (Page 63, ExhibitX) LEASE PURCHASE FINANCING • k Cityenjoysfavorable financingrate, a rate that in fiscal year 2001 was below the Salt Lakea rate earned b Y the City fund balance. • The leasepurchaseasehas addressed ed tho escalating maintenance costs and reduced spare are police vehicles. Thefleet overall is closer to the expected average age, although not at par for some class of e e 9 9 ,P 9 vehicles. Utilizing leasesefinan financing 2008) the Citywould have to appropria te $64.2 million for period 2 -2011. The average fundingwould be 7.1 million. Thelease financing the 003 s c 99 more i n is .4 million (fortheperiod 200 200 o e expensiveandthereforem option 3 0 o e o 3 8 co esata PCP price. (Page Exhibit-e P 67, Z) The report discusses advantages and disadvantagesof the leasing syst em. Apex Po Tr n a s rtati n nsul Co Grou • p Salt Lake City Fleet Operations ations Assessment and Opt im izationP/a Plan jay rte ''s VI FLEET MAINTENANCE OPERATIONS z _der T 4' • Preventive maintenance program satisfactory but needs refinements. Heavy equipment PM ~N should be modified to include conductingmore PM duringoff-season. program Oil analysis for selected units of equipment to establish PM levels. • Enforcement of pre- and post trip inspections • Implementation of second shift for preventive and corrective main tenan ce • Recommended improved scheduling procedures for preventive maintenance to reduce duce down time and improve fleet availability.ili tY• • Emphasis on agencies adhering toP preventive a maintenance schedule . • Improved driver and mechanic relationship a n d communication. Establis h a partne ring• approach. • Improved specifications to include rustinhibitors f r r o rust even i n tosan reduce P P d educe Pr matura bodydamage e to the fleet. Emphasis on using technical pers onnel I for technical work k and not routin emun mundane duties.es. No additional personnel sonn I are recommended ded for the enhanced leve l of servi ce Simplification of accident reductio n program. Reevaluate ee aluate senior mechanicpositions. 8 Apex Transportation po nation Consulting G Group p Salt Lake City Fleet Oper ations ons Assessment and Optimization Plan ,4 VII PARTS MANAGEMENT • Current inventory of $493,220 is excessive. ...................................... ....................................... ...................................... ....................................... ...................................... ....................................... ...................................... low,effectiveness is too I Stocks9w should0 be increased to 850/o from the current 68 /o. When a mec hanic requires a part, it sh ould be filled from the cuinventory rrent 85 / of the time. Ob solete soIete inventory nto ry should bePur9 purged. This action will free up sto ck room space active inventory. Implement prefer reda and alternateparts su ppliers r for inventory to reduce down time and improve av ilabilit . • 0 'v inventory by20 /o. Reduce active eto e duce ct rY Improve parts availability ili byfine-tuning th e contracts in terms ofdelivery requirements b Y the vendors. • Implementation of bar cod ing is currently is in process. Good idea and sh ould be supported. • Seasonal parts sh ould be evaluated to determineits usefulness efuIness in the system. ste m. • Leverage e the $2 million in purchases to improve v vendor r services and costs. Vendors should items andassistance in forecastingcritical parts improve delivery time, stocking high usage to s usage. e. ApexTr nspo rtati n Consult' Grou p Salt Lake City FleetOpera tions ns As sessment t and Opt imiz a ron Plan n 4.` VIII FACILITIES AND EQUIPMENT f 'F- _ • The current shop, though far from perfect, has all the necessary tools and equipment to 'Nr,4 M,.> • perform repairs to the fleet. The shop size is adequate to meet the fleet needs. In the event our recommendation to implement a second shift is adopted the space will suffice for foreseeable future. We find opportunities i es to renova te the existing sho p at l ess than ten percent of the cost of th enew onean d to b fully fun ctional for years to com . We do not be lieve expense e e se of 1 2 milli 8 3 on isnecessary untilall t theh other avenuesI P $ to solve the problem have been exhausted. • Conduct a feasibilitystud of th e entire comp oun dtoinclude all the agencies of Public i'ni Se ce at this s t scomon Reallocating u dn r a d reorganizing a n th e ne eds of each agency 9 9 P ae 9 cY will resultefficient in e cent layout 9c for all agencies. a e es. For the interim peri od, evaluate uate the ne eds of the sh o and con du ct a mini study develop o P space plannin 9 to me et the fleet division on needs. For example,Ple , determining what i s best an d• the most effective ct apossible usetheh of bodyshop.. The auto or P heavy sho p can b est utilize thes ace va cated ted by the body shop and th e cost of associa ted changes mu st be determine d. • In th the eevneti C decides c des to contrac t out them mai ntenance tenan ce to an outside is de vendor, the i ssue f oa new buildi ng d becomes co es moot. The e contractor will Ibconveniently e I abet w 0 orkfr m o the e existing 9 building and probably run amultiple shi f operation. • Thoroughly c Iean the entirshop, e steam clean the sho p, and steam cle anall sho p equipment en t • and I to . The e shopm managers e s should make as sc hedule edule tokeep th e e shop clean, hygienic 9 an and organized. 10 Apex Transportation rtation Consulting Po suit n Group P Salt Lake Ci t Fleet Operations Assessment and Optimization Plan t °' 4 i, 1!, • Each mechanic has a primary bay and should be held responsible for daily cleaning and = 4 upkeep of the area. All mechanics should participate in overall cleaning of the shop. f Designate nate a specific eci c area outside the shopfor equipment ui ment awaiting repairs. Label such are a as Waiting Line . thathas been repaired and Designate s ecific area outside the shopfor equipment p P completed. Labelsuch h area as "Ready Y Line . . . . . ... di A P Transportation Consultin rou P • Trans n Salt Lake City Fleet Operations n s Assessment s etand Optimization Pla n . ~' 'b IX FUEL MANAGEMENT i'.',,xi (,,,, i • Fuel cost is major expense, City operates 15 fuel dispensing sites. Fleet Management fuels - ...e5 ,,-, , „� smaller tanks at an additional 31 sites. City purchases diesel fuel and unleaded regular •H... gasoline from State contract. Cityconsumed over 900 000gallons of fuel last year. just Cityis consideringchanging to State fuel system. BothCityandhave s st t State a e well functioning 9 9 Y e unctionin 9 fuel systems. Users will notice little, if an difference between systems. Cityand State YY� Y surcharges shouldbe closelyanalyzed. We did notfin d any economic adv an a9e in transferringfuel system to State. However. transferring thefuel e sfe ue system to relieve Y 9Y theCityof managing the fuels m. TheCityfleetstaffcan system. focus on theprimary ma mission f 9 9 Y P ry 0 maintenance and use the scarce resource to maintain the fle et. Priorpurchasingto alternative fuel vehicles, the needs of th e pa rts personnel an d mechanics be addressed. Further, appropriate matching of vehicle e a o ate atc hic e useh e tote of PP P 9 type alternative fuel should be analyzed. The user acceptance in previou stri I ha s been low and is the keyto the success of the program. For heavyequipment, Bi i ode die sel is appropriate. P 9 No major changes to the infrastru cture are needed. Training requirements are minimal. For long-term use, evaluate the use of liquefied natural f I ue edgas fuel as it offersall thequalities 9q ua tes of q CNG , and doesnot havetheweight.h .e t 9 The infrastructure cost of alternative fuel stati nsis high. We suggest a joint alternative fu el program with neighboring jurisdictions ns to sharethecostandenh enh ance usage. Further,, the landscape of alternative fuel technologyis changing and it is critical to proceed with caution P 9 9 in selecting the approp riate fuel and be flexible to take adv ants eof changes 9 es in technology. 12 ApexTran Transportation rtation Consulting Group p Salt Lake CityFleet Operations Assessment and Optimization on Plan - 1. X ORGANIZATION STURUCTURE AND STAFFING .., _ • Current staffing declined almost 25% over 3 years. Overall budget expenditures have not �,.,'` decreased. Mechanic numbers comparable to private industry staffing. Need sufficient mini tiv ad stra esu support. • Unscheduled mainten nce currently over7 . W recommend e tablishment of a second shift o e rat' n We have outlined two plans toaccomplish this with only inc rease in manpower. Implementation of a second sh ift operation eratlon will significantly improve fle et availability an d reduce do wn vehicles and equipment.i ment. • Scheduled repairs sh ould be increased to 60%. The standard for private fleets I s70 / • We have provided a revised organization structure that is consistent with industrystandard s. Tota II twoshif staff ing at 85% mechanic producti vity, 41 personnel. Th's organization zation presents is a Icanand custom er focused organization without significant increase in Personnel.(Page 98-99) T fa l two sh ift staffingat7 / mech anic productivity, 45 personnel. Current mechanic c 0 at6 /o. (Page 100-101)3 productivity 9 A Apex po Trans rtation Consultin u p • Salt /t Lake City Fleet Operations erations Assessment and Optimization Plan XI INFORMATION SYSTEMS In order to get a better understanding of and make full use of the full capability of the vehicles management system the Fleet Manager, business manager and keyshop 9 Y 9 � 9 personnel should attend the CCG Faster users conference to keep him updated with the latest enhancements. training ofall keypersonnel is important to the success and effective useof h A formalt al e so the 9P P system. stem. The key should include Fleet manager, Business manager, Pa rts supervisor, ervisor and ShopService managers. The training could be arranged in Salt Lake Ci ty. tY• The maintenance and operational reports be shared with the usingagencies. We E P 9 reco mmend dissemination of standard basic cost and mileage data reports to agencies to Better understand manage and mana a their fleet. • Rev ise i se basic parameters to obtain the data by class code summaryfor performan ce measurement and cost comparison with likefleets. • Parts personnel should be trained to use tho bar coding system stem soon to beimplemented. Thistraining shouldof the overall trainingof the system. ta sou bepart • 9 We found that tho actingfleetmanage r and staff well familiar and comfortable rtabl in using the fleet Y computer systems. P 14 ApexTr nsPortati n Consulting Gr oup p ...................................... ...................................... Salt Lake City Fleet Operations ations Assessment and Op timization Plan .b,.‘,.-‘ r:g,4 \. XII CUSTOMER COMMUNICATION AND FEEDBACK r.,,,,,, riii,..; $:0, 4 • The fleet manager should meet with each customer at least once a year to discuss individual fleet needs for their it respective agency. • Fleet coordinator meetings should be held at least twice a year to provide departments wit h an opportunity to exchangeinformation on technical and operational Brational issues. • Departments and agencies should be advised of the new charge back system. Initiating e a P 9 9 series of well-facilitated sessions focused on customer education and improving rovin 9 understanding of fleet management ement may accomplish this. The subject topics could include ude changes, new developments, rental rates, and other subjects of common operational cts co on intere st 9 P J and team building. Thistype of partneringwith customers will helpin improving 9 P 9 communication between fleet and usingdepartments. nis. Tomeasure the customer satisfaction index, wesuggest implementation f s aoa customer 99 comment card. The usingagency will have the opportunity to commenton h the qualityof 9 cY PP tY services provided. (Page110 ) The fleet manager shouId take an active role in day-to-day activities of theshoP to9uide train and motivate the staff articular) in customer service. We foundevidence ofimproved P Y h '`` ` ' employee nd r th i n of thecurrent acting fleet::::.:::..::::.}.:::::..::-:::.:.::::... e p oyee u e a gu da ce cu e t act g manager. Some of f< :> < < ' the customers also noted the proactive style of the acting fleet manager in dealing with Pobemresolution.r l ApexTr Transportation ation Consu in u P . Ei Salt Lake CityFleet Operations Assessment and Optimization Pe Plan '' 4 ";: XIII PERFORMANCE MEASUREMENT /,,..,,,,,* or% i • In order to determine the current level of services and the cost of providing those services, ..att °z ,„r„'1�,":��� we recommend that, at a minimum, the following performance measures be monitored on an ongoing basis. This will allow Cityexecutives to determine the level of services and to 9 9 compare are those to other entities/municipalities and objectively measure improvement. — Turnaround Time e - Scheduled versus unscheduledwork rk — Repeat work — Downtime and breakdowns — Mechanic utilization — Preventivein m a maintenance — Inventory over rate ry turn oe — Stockage effectiveness. Performance measurement is crucial for managing result s 9 9 Data must be converted to meaningful information Performance measures used at both macro and micro levels Data integritymust be improved e d Train administrative personnel in MIS report writingmodule P m odu e Use standard and locally defined reports orts to monitor and control costs and servic es es Share performance results with employees, Cityexecutives and using 9 departments is 6 1 ApexTran sportation Consulting Group ................................ .... ................................. .... ................................ .... Salt Lake City Fleet Operations a io ns Assessment t and Optimizatio n Plan ; XIV SAFETY AND TRAINING ';'4 • The City should encourage the continuation of an Automotive Service Excellence program already in Place Someof the suggestions to improve participation in include offer or PaY for the preparation training for the certification examination and increasing 9 the incentive from $5 perper month to $10 month. The additional cost will be minimal however h the results far outweigh the cost. • Additional emphasis should beplaced on mechanic trainingto acquaint them with thelatest q e t technology. The Cityshould consider subscribing to All Data Company for latestinformatio n v n li ht ehicle .o s 9 In the event the Citydecides topurchase 30 percent of the eligible fleet asf I ue 9 fleet, it is important that appropriate funds be made available for ongoingtraining in thefield P t o el d • 9 of alternative fuel to techn ology. o 9Y. Assess the technical and supervisory training needs of the staff. Develop a training p I n. Thedetermination trainingrequirements I Bete at on of re uire a is should be basedon the needandnotthe q te proximity of trainingoffered. Of course everyattempt should bemade ade to obtain local or P tY P oc nearby trainingor training minimal . et a at a cost Y9 • Implement an aggressive customer education program. The program should encompass all aspects of federal and state statutoryrequirements. Enforce a pre and post trip inspection on program for operators. Operational supervisors duct a random gate check as vehicles depart to assure that operators are complying with the regulations.ons Apex Transportation Consultin roup Salt Lake City Fleet Opera tions ns Assessment Optimi zation Plan n NEXT STEPS �, S ❑ REVIEW AND FINALIZE PART 1 OF THE REPORT. ............................... .. .. .................................. .. ..................................... .................................. ... ..................................... ................................... ... ❑ MA KE DECISIONS P LI Y O C REGARDING G N RECOMMENDATIONS.G SOME PA RT OF PHASE 11 IS ALREADY INCLUDED C UDED IN PART 1. PHASE S II IN PRO CESS. SS COMPLETE .II PHASE S UTILIZECONSULTING SU G RESOURCES T TO IMPLEMENT THE RECOMMENDATIONS LIS TED S S TED IN THE REPO RT ❑ DEVELOP AN IMPLEMENTA TION ATION PLAN T INCLUDE A OACTIONS O S TO BE TA KEN EVIDENCEOF BENEFIT, C IT COST IMPLICATIONS, AN D PERSONNEL SO L RESPONSIBLE FOR ACTION. ❑ MAIKE SELECTED IMPROVEMENTS TH AT ROVEMENT CAN BE MADE A E BY EITHE R HA IN C N G A G PROCESS )C SS OR AT A MINIMAL COST. ❑ FOR IMPROVEMENTS REQUIRING G SIGNIFICANT ADDITIONAL OS C ITI O COST, FU ND Q THE ENHANC EMENTS SA VINGS FROM O SA IN GS REALIZED THRO UGH PE O RATI N O AL EFFICIENCIES' GAINED BY IMPLEMENTING TH E HE RECOMMENDATIONS PRE SENTED ELATED IN THIS REPORT. O 18 Apex Tra Transportation onCon Consulting Group Salt Lake City Council Office Memo To: Council Members From: Michael Sears, Budget& Policy Analyst Date: April 4, 2002 Re: Management & Performance Review of the Salt Lake City Fleet Division, Draft Report and Presentation of Part I CC: Rocky Fluhart, Rick Graham,Cindy Gust-Jenson, Gary Mumford, Council Staff, and Fleet Proposal Selection Committee The Council has contracted with Apex Corporation for the Salt Lake City Fleet Division Management & Performance Review. Apex Corporation was chosen from a group of eight applicants who submitted proposals in response to the Fleet Management & Performance Review Request for Proposals (RFP). The full RFP is attached for Council Member review. You will note that the City requested that the project be completed in two phases. Apex Corporation has provided for Council review the attached booklet that contains exhibits and analysis summarizing their preliminary findings regarding the management and performance of the City's Fleet Division. All requested reviews and considerations have been completed by the consultant for Part I. The Department of Public Services and Council staff members have reviewed the report. The consultant has worked in conjunction with City staff to finalize this report and confirm the validity of the information within the report. Council Members may wish to note that section XV of the report contains the next steps that will need to be taken before the consultant can complete the contracted review and before the Administration can implement the suggestions of this study. There are several areas where policy decisions and implementation plans are needed. The Council may wish to consider the following options and devise a timeline and implementation strategy for completing any recommended Council action: Option 1: Consider the information presented in the Management & Performanc Revi w as the full Council and consider the recommended policy decisions outlined in the report. The Council may wish to schedule several work session briefings to discuss the information that is contained in the report. Option 2: Form a Council subcommittee to review the consultant report and make policy and implementation recommendations to the full Council. The option may allow the review of the report to occur at a possibly faster pace, depending upon scheduling. The full Council will still need to make policy decisions based on the recommendations of the subcommittee. Option 3: Request that the Administration review the report and make policy recommendations to the Council based on the Administration's intended implementation plan. This option can be combined with both Option 1 and 2. The Council may wish to hear comments from the Department of Public Services regarding this report. Option 4: Advise Apex Corporation on Part II of the Management & Performance Review. The consultant needs direction on Part II of the RFP, specifically to what degree the City is interested in pursuing competitive bidding. (This step can be taken after the Council has had the opportunity to review this report further.) Opti n 5: Submit any questions or comments regarding the report to Council staff for follow-up and incorporation into further briefing material on the Fleet Division review. • Page 2 Report: April, 2002 0.4 SALT LAKE CITY, UTAH • I Fleet Operations Assessment 11) • • and Optimzzatzon Plan I r I I Apex Corporation Transportation Consulting Group 7415 Cutty Sark Way Laytonsville, MD 20882-4302 301-921-9463 In association with Public Financial Management Suite 750 660 Newport Center Drive Newport Beach, CA 92660-6408 949-721-9422 1 Salt Lake City Fleet Operations M . Assessment and Optimization Plan TABLE OF CONTENTS ILI TABLE OF CONTENTS II J I EXECUTIVE SUMMARY 2 II FLEET UTILIZATION 9 III COST ALLOCATION EVALUATION 33 I i IV FINANCIAL PERFORMANCE ANALYSIS 40 i I V VEHICLE REPLACEMENT ANALYSIS 44 VI FLEET MAINTENANCE OPERATIONS 72 a VII PARTS MANAGEMENT 81 VIII FACILITIES AND EQUIPMENT 85 II 1 IX FUEL MANAGEMENT 89 111 X ORGANIZATIONAL STRUCTURE AND STAFFING 93 illXI INFORMATION SYSTEMS 103 IXII CUSTOMER COMMUNICATION AND FEEDBACK 106 inXIII PERFORMANCE MANAGEMENT 111 us XIV SAFETY AND TRAINING 115 IIXV NEXT STEPS 118 ir i APPENDICES Bound in Separate Volume a Appendix 1: Underutilization Analysis I ` Appendix 2: Determination of Cost Per Mile (CPM) for Various Model Years Appendix 3: General Fund Fleet Sorted by Class and Replacement Year 1 ip Apex Transportation Consulting Group Page 1 i i li Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY I EXECUTIVE SUMMARY Salt Lake City initiated the study to evaluate their fleet Services operation. In 2001, the City completed a business plan that covered operational,business and financial aspects of the operation for the next five years. The City is interested in evaluating the fleet effectiveness and performance to determine if the services provided are competitive with private sector. Apex Consulting Group was selected to conduct the study that began in October 2001. We interviewed a diverse group of people including mechanics, the fleet manager, fleet supervisors, departmental transportation officers, shop mechanics, customers, and finance personnel. Our approach was designed to give employees an opportunity to offer their input, comments, and feedback regarding fleet operations. These interviews, coupled with an exhaustive review of existing fleet records, comparisons with the industry and current standards, and on-site observations,were the basis for the evaluation process. - Our major findings, conclusions, and recommendations from the study are summarized below. The chapters of this report provide in detail our overall assessments, our findings, and our recommendations for each of the areas we reviewed. Fleet Utilization The following sub-components of fleet utilization were reviewed: fleet composition, expected age as compared to actual age, fleet utilization by vehicle class average, fleet by utilization by model year, and underutili7ed vehicles by class. The estimated savings resulting from the reduction of one vehicle from each class and the total savings feasible were determined. Our evaluation included a detailed review of 1,067 vehicles or 60 percent of the City's rolling stock. The utilization analysis did not differentiate between vehicles funded by the general fund or funded by special funds as optimum utilization across the fleet is in the best interest of Salt Lake City. An analysis of the fleet age,mileage and expected versus average age indicates that various classes of vehicles may warrant adjustments to replacement planning,utilization review and oversight of fleet rotation to ensure optimum utilization of the fleet. We have recommended a solution to address the exceptions. Certain classes of vehicles have mileage utilization well below 12,000 miles annually and are candidates for rental versus a purchase options. An action plan is recommended in the replacement section of this report to evaluate the rental options available to the fleet. Our review of underutilized fleet identified vehicles with an annual mileage of less than or equal to 80 percent below the class average. Based on our evaluation of 1,067 vehicles: • 261 vehicles, excluding Police Patrol, indicated underutilization. • 80 Police Patrol Vehicles suggested underutilization 111— • No 2001 vehicles were considered underutilized as their utilization data was of a small duration. Apex Transportation Consulting Group Page 2 I Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY The total estimated lifetime savings feasible from removing the 26 vehicles,representing 10 percent of the fleet identified above as under utilized and excluding Police Patrol,is projected to be $1,327,650. The projected savings are based on a review of raw vehicle data. Alternatives to removing vehicles from the fleet—the establishment of a motor pool, the extension of replacement cycles, and the utili7ation of a rental fleet are presented in the utili7ation and replacement analysis chapter for your consideration. Salt Lake City does not have a formalized motor pool operation. This report presents a draft motor pool assignment plan highlighting a few administrative aspects of a sound motor pool policy. Take home vehicles is generally a controversial issue in governmental operations. We have reviewed the draft Take Home Policy as prepared by the fleet management operations dated January 1, 2001 and find the document to have covered the key aspects of a good take home policy document. We also reviewed the annual vehicle justification review process. The City does not currently have a formal justification process. We recommend instituting a vehicle justification process that will create an objective evaluation to validate the assignment of currently assigned and additional requested vehicles to user agencies. Cost Allocation Evaluation The computerized cost accounting system operates in manner that provides fleet management with data to process allocation of charges to recover the cost of the operation. Based on the current fleet size and manpower capabilities, the current billing mechanism is satisfactory Shop Labor Rate The shop labor rate for Fleet Operations in Salt Lake City is $56 an hour and is below the average commercial labor rate of$75 per hour. The labor rate is based on budgeted cost data. The actual labor rate applied to fleet operations is $59.50 per hour.The labor rate of$56.00 an hour is achieved as a result of recovering certain administrative and parts overhead charges through a parts surcharge, a work sublet surcharge, a fuel surcharge and offsetting expenditures with revenues from warranties and claims. Further, the personnel and operating costs associated with the vehicle 11 preparation team (for auctions and installation of accessories on new vehicles) is charged to the Fund. We recommend that this practice be discontinued and the cost of this function be incorporated into the shop labor rate. In the absence of such adjustments the shop labor rate would be $74 per hour. The concept of marking up fuel at five percent and sublet work at fifteen percent is not material in size to warrant a change. The mark up of parts by forty one percent is also reasonable given the commercial practice of 70 to 100 percent mark ups. 1 Apex Transportation Consulting Group Page 3 Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY Financial Performance Analysis Based on the analysis of the fleet budget data for period 1996 to 2001, Salt Lake City fleet management has demonstrated good management focus in several areas of financial performance. A key macro measurement tool is net operations, the difference between Charges for Services and Operations Costs. The fleet net operations has performed tli5ree years in the red and three years in the black,aggregating to a positive balance of$21,800 over the six years. The 1996- 111 2001 personnel costs increase is 18.67 percent compared to the Consumer Price Index (CPI) rate of 17.33 percent. Maintenance costs, excluding fuel,increased 8.40 percent and charges for services increased 3.4 percent from 1996 to 2001 while the CPI rose 17.33 percent. 1 Overall, based on the review of the financial it appears to us that the current fleet budgetary controls are satisfactory. - Vehicle Replacement Analysis Fleet replacement planning and funding play a critical role in controlling fleet costs, safety and reliability. The correct replacement life cycle can be evaluated through conducting an economic life cost analysis. Such an analysis objectively determines the ideal time to replace a particular unit. The results of the economic life cycle are compared to industry replacement standards for similar equipment to ensure that the results are within acceptable parameters. Comparison of the 111 recommended life cycle versus the current replacement life cycle, either being utilized by Salt Lake City or being considered,indicates that the recommended replacement cycle is marginally longer. The economic life analysis indicates Police Patrol and Police Administrative vehicles are recommended for a five-year replacement plan; administrative general, SUV, 1 Ton Utility, and 1/4 to 3/4 Ton Pickups are recommended for an eight-year replacement plan;and the International 2674 6x4 and Volvo WXR64 are recommended for a nine year replacement plan. Currently, there is no formalized replacement plan for the fleet. An overriding caveat to the above findings is that the fleet manager should review each change in the life cycle on a case-by-case basis. The findings should not be implemented in a manner that endangers the fleet users or the City's citizens. In addition, the fleet manager may adopt a phased-in approach to increase the life cycle one year at a time to achieve the recommended life cycle goals. Parallel to the assessment of replacement requirements and criteria, the City fleet management should evaluate purchase versus renting as an alternative solution. Five classes of vehicles, totaling 474 vehicles, are candidates for this evaluation. This report identifies the lifetime cost per month of the five classes and recommends comparisons to the private rental option. In addition to evaluating rental options we also recommend fleet rationalization. We support the fleet management's focus on moving away from single-function vehicles and equipment to those with greater utility for the cost of the equipment. We recommend staff resource integration and the vehicle justification process to enable users to justify their needs and fleet management to verify the requirements for the new vehicles in areas such 2WD versus 4WD. Apex Transportation Consulting Group Page 4 I Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY Lease Versus Purchase Based on the analysis of the economic life cycle and the development of replacement guidelines the next step is to determine the annual replacement needs. There are essentially two strategies available to Salt Lake City to fund the required replacements. The first is an all cash option and the second is the continuation of the lease purchase mechanism adopted a few years ago. The funding requirements under both the scenarios must also accommodate thelease payments due for lease purchases negotiated prior to 2002. This report examines the advantages and disadvantages of lease purchase financing and conclude that the City should pursue the path of lease purchase financing for the next few fiscal years. This funding mechanism will ensure that the fleet improvements in place, such as a lower complement of mechanics and maintenance cost, are not lost. As lease purchase financing does not increase the total number of vehicles replaced and costs the City$3.4 million more for a six-year lease strategy, this option must be applied to a lean and productive fleet. We recommend that a strategy to motivate program managers be reviewed with an incentive option that savings can be can be targeted to one time program enhancements and thereby not built into the base of the budget. Based on the analysis of the replacement funding necessary for the next 10 years, the fiscal impact is as follows. Without a lease purchase financing mechanism, the City would have to appropriate $60.8 million for the period 2003-2011. The average annual funding would be$6.75 1110 million. However, the 2003-2005 appropriation would be a fiscally prohibitive$17.1 million versus the lease purchase option that would require an appropriation of$3.7. Utilizing lease financing(for 2003-2008), the City would have to appropriate $64.2 million for the period 2003-2011. The average annual funding would be $6.5 million. The lease financing option is $3.4 million more expensive and therefore comes at a price although it enables Salt Lake City to achieve a replacement plan that will ensure that fleet cost are optimized and fleet availability is not compromised. Operational Activities Our assessment is that the fleet meets the maintenance requirements, but there are opportunities for improvement in the operational arena. The preventive maintenance (PM) program should be proactive and affordable. The preventive maintenance for light vehicles is contracted out and works well. We have recommended some changes in heavy equipment preventive maintenance to reduce down time on vehicles and equipment. Parts Management The parts inventory of$493,220 is excessive and does not include the correct mix of parts. Of the 3,263 different parts stocked, 1,409 parts, valued at$146,895, had no issues for the past year. When a mechanic goes to the parts counter, the needed part is not available almost one-third of the time. This low level of support causes delays for mechanics and vehicle users. Parts not stocked must be obtained, often on a more expensive expedited basis, before proper repairs can be made. The value of inventory should be reduced to a more manageable level of two months usage, or approximately $220,000. This can and should be accomplished while increasing the stock Apex Transportation Consulting Group Page 5 Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY 1110 effectiveness rate from the current 68% to 85%. Obsolete inventory should be purged and only active parts stocked. Parts and procurement personnel should leverage the value of the over$2 Imillion in parts and service purchases from vendors to increase service to the City. This should include vendor deliveries,vendor stocking of high usage and critical parts and assistance in forecasting parts consumption. This would reduce the value of inventory stocked,increase mechanic productivity and reduce expedited delivery expenses. . The delivery requirements stated in the contracts are ambiguous and we have recommend that the parts contracts be revised to reflect precise delivery requirements. Safety and Training The fleet organization has a good safety record. In the training and employee development arena,we found that the shop does have some of the elements of the "Automotive Service Excellence" (ASE) program. We recommend the implementation of the ASE certification program to enhance the credibility of service personnel and further employee development. Customer service In the customer service arena we find that there are significant opportunities for � pp improvement to bridge the gap between shop staff and customers. We have recommended a partnering approach with the customer to get feed back and improve relations. Organizational Structure The staffingof the Fleet Management Division has decreased byalmost 25 percent over the g past three years. However, the overall budget expenditures have not decreased. The mechanic staffing is comparable to an efficiently run private enterprise,but the support staff is not. Work is currently accomplished during the normal daytime hours that most vehicles are in use. The size of the City's fleet operations and the number of personnel would allow a second, evening shift to perform maintenance when the vehicles are not required by using departments. Managers/supervisors need adequate administrative support to properly manage and control the workload. This support to input data, generate reports and schedule workload with vehicle users would free managers to better monitor and control production and ensure quality service. Unscheduled repairs currently consume over 75 percent of the workload compared to a private industry standard of 30 percent. The Vehicle Management Information System should be aligned to the same fiscal year basis as other City activities. Data integrity must be established through control and discipline of the input process. Two separate organizational structures are included in this report. One,with a total of 41 personnel for a two shift operation, assumes a private industry mechanic productivity standard of 85 percent. The second,with a total of 45 personnel for a two-shift operation, assumes a mechanic productivity of 75 percent, typical for municipal fleet operations. According to the information provided the current mechanic productivity rate is 63 percent. A logical starting place for organizational sizing could be with the 75 percent productivity rate and slowly transition to the higher productivity organization. This would be accomplished while monitoring and controlling the Apex Transportation Consulting Group Page 6 p Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY irio performance and costs of the fleet operation to ensure the proper level of vehicle support to the using departments and the citizens. Fleet Support Functions The fleet support activities include shop facilities,information systems, and safety and training. In the area of facilities we recommend that all other avenues to gepair,or renovate the existing facilities be explored prior to expending a large capital sum of$18-23 million. We are not suggesting that the current facility is perfect, however, there are opportunities to change the organization, reevaluate the space allocation,renovate,repair and reassign space to entities in the yard. For example,initiating a second shift operation and the elimination of on-site bodywork 111 offers additional space that could be utilized for other critical functions. With regard to the automation of operations, our overall assessment is that shop system does have all basics needed to support the fleet. However, training of personnel at all levels in use of the system is lacking. The current vehicle management system is relatively new and refinements and fine-tuning are necessary to fully comprehend and use the system. Performance measurement forms the basis for managing for results. The CCG Faster Vehicle Management System collects a mountain of data about the Salt Lake City vehicle fleet. A good performance measurement system will allow management to determine the level of service provided to specific users, the quality of performance by mechanics, the quality of parts support (by vehicle type and vendor), and the cost of each of these categories of service. Performance measures are used at both the macro and micro levels; an objective indication of overall fleet management services or parts support. In order to determine the current level of services and the cost of providing those services, we recommend that, at a minimum, the recommended performance measures be monitored on an ongoing basis. This will allow City executives to determine the level of services and to compare those to other entities/municipalities and objectively measure improvement. Fuel Management In the fuel management area, the City is well organized,in that it has a fully automated fuel system that is also used to schedule preventive maintenance for vehicles and equipment. The City is a part of the State cooperative fuel purchasing system. The City is proactive in pursuing alternative fuels. The business plan outlines a positive and voluntary approach to test, evaluate and use alternative fuels for the fleet. The heavy equipment shop is in process of testing Bio Diesel for heavy units of equipment. Both the City and State fueling systems appear to be well functioning systems with only minor differences between the two. Most users probably won't notice any difference in convenience or ease of use. Setting up a cooperative fuel sharing agreement with the State would add a few more locations for users to fuel. Since both systems purchase from the same sources the surcharges should be closely analyzed in determining the final cost to the City when deciding which system to use. 111) Apex Transportation Consulting Group Page 7 I Salt Lake City Fleet Operations Assessment and Optimization Plan I EXECUTIVE SUMMARY SUMMARY In summary there are many positive features about the City's management of the fleet operation,i.e., lean work force, adequate automation of operations,working out of old facilities, knowledgeable work force,good safety program and sublet of many shop functions. However, there are significant opportunities available to improve organizational structure,better utilize the existing fleet,measure fleet performance, define replacement policies, train and improve customer service that will enhance the operation, further reduce cost, and improve fleet reliability. NEXT STEPS The next steps are to review the report and make a policy decision about the recommendations. We suggest the City develop an implementation plan to include action to be taken, person responsible for the action, and.a timetable for completion, A. W. WWWWWa We want to express our appreciation to the Salt Lake City staff for assisting us in this study. We were afforded full cooperation at all levels of the audit. We understand that audits require the opening of personal data and records to an outside firm, and we appreciate the candid approach adopted by the fleet manager, shop personnel, and the finance personnel in assisting us to complete this study. f" I I I I I Apex Transportation Consulting Group Page 8 a "4 Salt Lake City Fleet Operations I Assessment and Optimization Plan II FLEET UTILIZATION I lip II FLEET UTILIZATION OVERALL ASSESSMENT I The effectiveness of a cost accounting system can be judged by the quality of the data it can it I capture and provide to fleet management personnel for evaluation and analysis. Data provides a platform for planning,monitoring and decision making to ensure an optitnum functioning fleet. Fleet utilization data is provided by a computerized fleet management cost accounting a system. Analysis of fleet utilization and its sub-components provides an in-depth view of the quality of the fleet,utilization trends,and the average age of the fleet. Further,it facilitates the optimization of the fleet leading to the reduction of maintenance expenses. Our analysis of Salt Lake City's fleet utili7ation data included the following sub-components: • Review of fleet composition I . Review of expected age compared to actual age • Examination of fleet utilization by vehicle class average • Examination of fleet by utilization by model year • Identification of under-utilized vehicles by class II • Estimated savings resulting from the reduction of one vehicle per class. 4 Our evaluation of these sub-components leads us to conclude that the computerized fleet management cost accounting system is functioning in a manner that enables fleet management to Iimplement decisions based on qualitative data. As this report illustrates an analytical review of the in fleet is best undertaken by classifying vehicles in common categories and reviewing their I performance versus that of their peers within the same class. An action plan is recommended to initiate this process of review. II Our evaluation included a detailed review of 1,067 vehicles or 60 percent of the rolling stock. The utilization analysis did not differentiate between vehicles funded by the general fund or a I funded by special funds as optimum utili7ation across the entire fleet is in the best interest of Salt Lake City. I p The composition of the fleet is balanced in age across its life cycle, with the exception of Police Administration, SUVs, 1 Ton Utility, 1/4 and 3/4 Ton Pickup Trucks. We have recommended a solution to address these exceptions. IThe composition of the fleet is balanced in mileage across its life cycle,with the exception of Police Administration and Administrative General Sedans. With respect to the other classes of I vehicles that experienced some skewness in age composition (SUVs, 1 Ton Utility, and 1/4 and 3/4 Ton Pickup Trucks) there is no unevenness in mileage utilization as would be expected. We analyzed this inconsistency and provide a rationale that is validated further on in the report. a 1: Apex Transportation Consulting Group Page 9 1 Salt Lake City Fleet Operations it A Assessment and Optimization Plan II FLEET UTILIZATION IP r1 The review of expected versus actual average age of the fleet indicates that adjustments are 114 warranted to the current vehicle replacement standards of Police Administration,Administrative General Sedans, SUVs, 1 Ton Utility Vehicle, and 1/4 and 3/4 Ton Pickup Trucks to better align the actual to the expected average age. Expected average age for a vehicle class is defined as the I midpoint of an age range. For example, a sedan fleet with an assumed life span of 8 years will have a fleet with an expected average age of 4 years. Actual average age for a vehicle class is the average I I age of the current fleet. The life span for each of the 1,067 vehicles is analytically calculated utilizing current replacement costs and maintenance data provided to us and is detailed in the replacement section of this report. I The average utilization by vehicle class for Police Administrative Sedans, SUVs, and 3/4 I• Ton Pickup Trucks is 14,950, 10,041 and 9,790 miles respectively. The mileage utilization of it Administrative General Sedans, 1 Ton Utility vehicles, and 1/4 Ton Pickup Trucks is well below 12,000 annually, suggesting the feasibility of renting these vehicles. An action is recommended in Ithe replacement section of this report to evaluate the rental options available to the fleet. is a R Utilization by model year reveals that the Police Administrative Sedan and the SUV classes recorded over utilization for certain model years. An action plan is recommended later in this report to address this finding. 1 Our review of underutilized vehicles begins with an illustration of the potential impact of eliminating one vehicle from the ten classes we examined. Next,we identified vehicles with an annual mileage of less than or equal to 80 percent below the class average. Based on our evaluation of 1,067 vehicles: 111 • 261 vehicles excluding Police Patrol indicated underutilization. • 80 Police Patrol Vehicles suggested underutilization • No 2001 vehicles were considered underutilized as their utilization data was of a asmall duration. I The total potential estimated lifetime savings from removing the 26 vehicles,representing 10 I percent of the fleet identified above as underutilized and excluding Police Patrol,is projected to be $1,327,650. The projected savings are based on a review of raw vehicle data. Removing vehicles I al from the fleet is easier said than done, especially given the relative size and the unique circumstances of the fleet operational requirements. Alternatives to removing vehicles from the fleet—the establishment of a motor pool, the extension of replacement cycles, and the utilization of a rental Ifleet are presented in the replacement analysis chapter for your consideration. Take home vehicles is generally a controversial issue in governmental operations. A need to Irecognize the requirements of City employees to effectively execute their responsibilities to the Citizens and to avoid a perception or incident of abuse of City property is always a fine balance. We have reviewed the draft Take Home Policy as prepared by the fleet management operations dated 1 January 1, 2001 and find the document to have covered the key aspects, detailed in the report, of a good take home policy document. In general our review of the data for the classes of vehicles reviewed leads us to conclude els that there are opportunities to implement various review processes to monitor the fleet Apex Transportation Consulting Group Page 10 I j Salt Lake City Fleet Operations II 64 Assessment and Optimization Plan II FLEET UTILIZATION 11 Illit characteristics examined in this report. We did not find any evidence of an annual vehicle justification review process. Such a process will enable an objective evaluation to determine the validity of currently assigned and additional requested vehicles to user agencies. GENERAL FLEET FINDINGS I4 Salt Lake City has a fleet of 1,760 vehicles and 460 pieces of accessories that are primarily attachments or towed equipment at an estimated cost of$67 million. The fleet consists of vehicles and equipment funded by the general fund and special fund agencies. The assets funded by the I general fund are valued at$51.5 million and the annualized capital cost of owning a fleet of this size, based on a average service life of 8.5 years is about$6 million per year in required replacement funding. IIn order to perform a detailed analysis of the fleet,vehicles were grouped into unique I classes. The vehicles within each class have similar properties, such as Police Administrative Sedans a or 3/4 Ton Pickup Truck. Our discussions with the Fleet Manager to obtain vehicle information grouped by a unique class led us to conclude that the data was not readily available or maintained in 3 this format. The advantage of grouping similar vehicles by class is demonstrated throughout this 1 report. In addition,grouping similar vehicles by class facilitates inter agency comparison of utilization to the class average and the comparison of the cost per mile of maintenance among 1 a agencies. a Our comprehensive analysis of fleet utili7ation examined 1,067 vehicles in ten vehicle iiiclasses. Patrol Sedans,Police Administrative,Administrative General, SUVs, 1 Ton Utility Trucks, 3/4, 1/2, and 1/4 Ton Pickup Trucks, International 2674 6x4 and Volvo WXR64 trucks were examined. The heavy equipment of Salt Lake City fleet is widely dispersed and each individual class of vehicle is not large enough to warrant an individual utili7ation review. II Salt Lake City Fleet Management plans for the replacement of its fleet through si appropriations from the General Fund for General Fund agencies. Special Funds agencies plan for I and replace their equipment from their respective fund balances. In the last three years the City has utilized lease financing as a tool to address the backlog of replacement in Police Patrol, and Police ItI Administrative vehicles and has reduced the City's maintenance expenditures. With respect to e operations and maintenance funding, Fleet Management until FY01 billed users based on an allocation of projected expenses for each customer. The allocation is based on prior year actual expenditures and is adjusted for inflation. Recently the fleet switched to a time and materials charge a back system. Effective utili7ation of fleet assets is essential to minimize overall fleet costs. For example, a 10 percent reduction in the examined vehicle fleet size (26 out of a total 261 underutilized vehicles) resulting from improved fleet utilization (if such improvement is warranted) would save the City 11 1 about $85,000 per year in maintenance costs. This savings in the annual maintenance costs account Ifor two percent of the annual fleet maintenance budget (based on preliminary FY01 actual). A two percent reduction each year would offset a majority of the inflationary increase in the annual budget. This would be of significant value and represent a high return on assets invested for the citizens of ISalt Lake City. ii FP°. Apex Transportation Consulting Group Page 11 I Salt Lake City Fleet Operations I ^ Assessment and Optimization Plan II FLEET UTILIZATION FLEET COMPOSITION ill Findings I i . Vehicle age distribution across the life spectrum (1 to 10 years) is examined in this section. The classes of vehicles examined are Patrol Sedans, Police Administrative, Administrative General, I SUVs, 1 Ton Utility Trucks, 3/4, 1/2, and 1/4 Ton Pickup Trucks, International 2674 6x4 and Volvo WXR64. An uneven distribution of vehicles can result in increased future demands on fleet replacements and could result in a higher current maintenance cost structure. III I Fleet Age Distribution Analysis if a Exhibit A shows fleet age data as of October 2001. Seventyeight percent of the Police g Admin fleet is less than two years. The ideal percentage based on a five-year life cycle is 40 percent I e in the 0-2 year age category. On the other end of the spectrum are four classes of vehicles, SUV, 1 iii I Ton Utility, 1/4 and 3/4 Ton Pickup trucks, that have life spans of eight years and therefore should not have a material count of vehicles in the age group nine years and above. However, as Exhibit A a II indicates 21 percent of SUVs, 40 percent of 1 Ton Utility Trucks, 26 percent of 1/4 Ton Trucks and it i 31 percent of 3/4 Ton Trucks are in the nine years and above age group. in I An even age distribution of vehicles among a class of vehicles balances the maintenance cost structure and avoids peaks and valleys in capital replacement requirements. As an example, 78 percent of the Police Administrative vehicles are less than 2 years old. From an operational ill perspective this age skew is beneficial, as the maintenance cost of this class of vehicle would be lower when compared to industry standards. However,in the long run, replacement pressures would occur in peaks and any deferrals at that time may result in higher maintenance costs. The 1 Ton Utility Truck class is also skewed at 40 percent of the vehicles above nine years. However,it I appears there has been an attempt to address the aging of the fleet as 40 percent of the fleet is also less than 2 years old. The normal composition for this class based on an eight year life cycle should Ibe 25 percent less than 2 years old. A fleet being skewed at two ends of the age spectrum offsets the I negative implications of higher maintenance costs but imposes challenges (peaks and valleys) in replacement planning. Skewness in vehicle age is an early diagnosis of the ill health of the fleet and its probable impact on maintenance and replacement costs. Therefore, fleet managers should perform periodic reviews of the age distribution analysis and share such findings with customers and decision makers. In summary, the overall fleet is in satisfactory health with attention required to SUVs, 1 Ton Utility Trucks, and 1/4 and 3/4 Ton Pickup Trucks. Focusing on replacement strategies and 'j identifying underutilized vehicles will correct the composition of the fleet and optimize maintenance Iand replacement expenditures. el,i Apex Transportation Consulting Group Page 12 i. I. Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION 1111,11 EXHIBIT A MAJOR FLEET AGE DISTRIBUTION ANALYSIS • Life Group %0-2 YRS %3-4 YRS %5-6 YRS % 7-8 YRS %9-10 YRS %OVER Description Cycle Yrs. Total 10 YRS IPatrol Sedan 5 373 33% 59% 7% "1% `- 0% 0% Police Admin. 5 64 78% 22% 0% 0% 0% 0% IAdmin.Sedan 8 87 38% 25% 23% 6% 1% 7% al SUV 8 123 26% 26% 15% 11% 3% 18% 1 Ton Utility8 53 40% 9% 6% 6% 4% °36/° INPickup1/4 Ton 8 70 31% 17% 16% 10% 7% 19% II I Pickup 1/2 Ton 8 99 37% 24% 9% 10% 6% 13% • Pickup3/4Ton 8 141 40% 4% 15% 11% 11% 20% International 2674 6x4 9 41 49% 39% 12% 0% 0% 0% Volvo WXR64 9 16 31% 63% 0% 0% 0% 6% IP? Fleet Analyzed 1067 OBSERVATIONS The age of each vehicle within a particular class was examined as of October 2001. it i II 2 Patrol Sedan and 1 Ton Pick-Up vehicles reflect a skewed fleet. SUV to a lessor extent also reflects an even concentration of vehicles in the 3-4 year age category. I Fleet Mileage Distribution Analysis Exhibit B shows vehicle mileage distribution across a spectrum over 70,000 miles as of October, 2001. The classes of vehicles examined are Patrol Sedans, Police Administrative, 1. Administrative General, SUVs, 1 Ton Utility Trucks, 3/4, 1/2, and 1/4 Ton Pickup Trucks, International 2674 6x4 and Volvo WXR64. ii 'li Based on the current replacement cycle of five to eight years 50,000-90,000 miles, each vehicle class should have approximately 50 percent of its fleet at less than 25,000-50,000 miles. A clustered replacement results in a mileage and age distribution that is below the ideal distribution. I ii 11--- „, Apex Transportation Consulting Group Page 13 ISalt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION )11 EXHIBIT B MAJOR FLEET MILEAGE DISTRIBUTION ANALYSIS I Life Group %0-10,000 %10-30,000 %30-50,000 %50-70,000 %OVER Description Cycle Yrs. Total Miles Miles Miles Miles 70,000 Miles t N. 11 Patrol Sedan 5 373 15% 26% 36% 19% 3% Police Admin 5 64 73% 13% 11% 3% 0% iAdmin.Sedan 8 87 40% 23% 16% 11% 9% SUV 8 123 22% 27% 14% 15% 23% I1 Ton Utility 8 53 40% 17% 15% 19% 9% IPickup 1/4 Ton 8 70 36% 14% 17% 21% 11% Pickup 1/2 Ton 8 99 27% 10% 8% 6% 48% Pickup 3/4 Ton 8 141 30% 18% 18% 12% 21% International 2674 6x4 9 41 32% 46% 12% 10% 0% I. Volvo WXR64 9 16 0% 31% 31% 31% 6% IFleet Analyzed 1067 As would be expected, Police Administrative Sedans, and Administrative General Sedans exhibit a high degree of concentration in miles similar to the age concentrations. In both the classes the mileage is skewed on the low side resulting in lower maintenance cost to the fleet. Although this result may appear beneficial in the short term, long term maintenance planning is compromised, as future expenses will increase above industry trend lines. In addition, comparison to industry maintenance standards will present the fleet performance in a biased manner. Evaluation of the I. other classes, SUVs, 1 Ton Utility Trucks and 1/4 and 3/4 Ton Pickup Trucks,which also exhibits a skewed age composition, does not suggest a skewed mileage composition as would be generally expected. Mileage is evenly spread across the life cycle ranges. However, since the review of the age Icomposition showed that these classes were heavy on the older vehicles, a lack of skewness in mileage distribution does indicate fleet underutilization. Wherein a skewed fleet mileage A composition results in uneven maintenance expenditures and diminishes the optimum functioning of the fleet, underutilization results in a waste of resources and is an outcome that should also be avoided. Fleet underutilization is reviewed in this report and an action plan is recommended. Skewness in vehicle mileage distribution is an early sign of the ill health of the fleet and its impact on maintenance and replacement costs. Therefore, fleet managers should perform periodic reviews of the mileage distribution analysis and share such findings with customers and decision- Apex Transportation Consulting Group Page 14 ISalt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION I)) makers and implement replacement policies to move the vehicle class towards the ideal goal. Analysis of mileage distribution is a tool to enlist user agencies (customers) to participate in detailed monitoring of individual vehicle utilization by class or customer and instituting fleet rotation as a means to address mileage distortions. An even distribution of the fleet across its life cycle will yield consistent maintenance results and facilitate efficient budgetary planning. Overall, the mileage distribution is even across the life cycle and there is no indication (except for the Police Administrative Sedan and Administrative General sedan classes) that maintenance expenditures are being skewed year to year. Expected Average Age Compared to Actual Average Age IExpected average age is defined as the midpoint of an age range of a class of vehicles. For example, a sedan fleet with an assumed life span of eight years will have a fleet with an expected II average age of four years. Actual average age is the average age of the current fleet generally calculated by individual class of vehicles. I Exhibit C shows actual compared to the expected average age for Patrol Sedans, Police Administrative,Administrative General, SUVs, 1 Ton Utility Trucks, 3/4, 1/2, and 1/4 Ton Pickup I Trucks, International 2674 6x4 and Volvo WX'R64. The Police Administrative,Administrative General, International trucks and the Volvo waste management trucks have an actual average age less than the expected average age. This suggests that the replacements have been clustered and I. need to be managed to achieve a greater balance. Consistent with the data as reflected in the age composition analysis, the SUV, 1 Ton Utility, 1/4 and 3/4 Ton Pickup Truck fleets exhibit an actual average well above the expected average age. I This result suggests a need to address the replacement planning for these classes. However, since the mileage composition did not suggest an uneven fleet utilization the divergence in actual versus expected age could be addressed by reducing the fleet size through a process of identifying underutilized vehicles (addressed later in this report). This example reinforces the need to examine a range of fleet characteristics to arrive at a comprehensive conclusion. Of course, in the real world such preciseness is not feasible and neither is it recommended. However, the variance between the expected average age and the actual average age is a valuable indicator. Greater divergences have a negative impact on total maintenance and result in peaks and valleys in replacement requirements. In order to validate the assumed expected average age versus the actual average age, it is necessary to perform an economic life analysis for each class of vehicle. An economic life analysis, addressed later in this report, is a process by which replacement criteria is either validated or proven to be incorrect. For example, a conclusion that the current replacement cycle (e.g., 5 years for a 1/2 Ton Pickup Truck) is incorrect will lead to a reevaluation of the assumed life cycle to say 8 years. This in turn will increase the expected average age of the 1/2 Ton Pickup Truck from 2.5 years to 4 V'h years and given that the current average is 4 years, there will be no gap between the expected average age and the actual average. Apex Transportation Consulting Group Page 15 1 likle. 11111 Illit'; ale liar fittia illirl dr Sr 11111 IMP OP 11111P illi. AMIN IOW -40... - Salrrake City Operations O erations Assessment and Optimization Plan II FLEET UTILIZATION EXHIBIT C EXPECTED AVERAGE AGE COMPARED TO ACTUAL AVERAGE AGE • International Volvo Patrol Sedan Police Admin. Admin.Sedan SUV 1 Ton Utility Pickup 1/4 Ton Pickup 1/2 Ton Pickup 3/4 Ton 2674 6x4 WXR64 EXPECTED AVERAGE AGE 2.5 2.5 4.0 4.0 4.0 4.0 4.0 4.0 4.5 4.5 ACTUAL AVERAGE AGE 2.3 1.0 3.3 4.7 6.5 5.1 4.0 5.0 2.4 2.7 EXPECTED AGE VERSUS ACTUAL AGE 7.0 --- --- --- NI 60 50 a. 40 E. 3.0.11/ 6' - 10 r p� . dd 00 , ,✓. I ,� kit' I�+a_, �o,.il , I!,...1 ?� Patrol Sedan Police Admin. Admin Sedan SUV 1 Ton Utility Pickup 1/4 Ton Pickup 1/2 Ton Pickup 3/4 Ton International 2674 Volvo WXR64 6x4 VEHICLE AGE ®EXPECTED AVERAGE AGE ■ACTUAL AVERAGE AGE OBSERVATIONS Expected Average Age is the mid-point of an assumed life cycle. For example,a sedan with a assumed life cycle of 8 years will have an expected average age of 4 years. f Ideally,if a fleet operation is implementing its replacement per schedule,half the sedan fleet should be under 4 years of age. In reality,such is not the case as issues such as funding and operational conditions may warrant a change in the replacement cycle. However,the extent of the divergence from the expected average age,theoretically suggests that the fleet is operating in a less than optimal environment and the cost of the fleet operations are higher than necessary. We say"theoretically"in the above statement as the assumption is that the life cycle benchmarks(8 years for fleet)is accurate. The accuracy of the replacement criteria can be verified by an economic analysis which is presented in this report. Apex Transportation Consulting Group Page 16 ISalt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION .16 1. Implement a periodic program to monitor the age distribution of the I R fleet across its life cycle by utilizing data from the computerized fleet management system. E I C 2. Share findings with customers and budget decision-makers to O educate them on the fleet status and fleet replacement goals. 111 M 3. Implement a periodic program to track and monitor mileage M distribution by class of vehicle. E N 4. Annually monitor the expected average and the actual average age to minimize the overall maintenance costs of the fleet. D A 5. With respect to Police Administrative Sedans and Administrative T General Sedans proactively plan future outlays to smooth out the II 0 cluster of vehicles well below the expected average age to avoid a concentration of replacement demands in the future. 111 N 6. With respect to the SUV, 1 Ton Utility, and 1/4 and 3/4 Ton Pickup S vehicles evaluate replacement planning to address the aging fleet by either expediting replacement or identifying and removing bpunderutilized vehicles. AVERAGE MILEAGE BY VEHICLE CLASS Average utilization by class of vehicle is useful as it provides the Fleet Manager a benchmark by which to assess each vehicle's utilisation to the class average. Monitoring of an individual vehicle within the class can alert fleet operations to unusual activity within the fleet and facilitate a process of detailed inquiry. Appendix 1,which is bound in a separate volume, details the evaluation of individual vehicle utilization as compared to the class average utilization. In addition, an analysis of utilization by model year for the major vehicle class should be performed to assess the divergences between the utilization among model years which may impact overall maintenance expenditures and aging of the fleet. Findings , Utilization by Class Average An analysis of utilization by class of vehicles indicates that the Patrol Sedan, Police Administrative Sedan and the 1/2 Ton Pickup Truck average 14,500 miles annually; the SUV and 3/4 Ton Pickup Truck average 9,800 miles annually; the Administrative Sedan, 1 Ton Utility and i 1/4 Ton Pickup Truck average 5,500 to 6,500 miles annually; and the International trucks and Waste Management Volvo trucks average 12,400 and 20,500 miles annually respectively. ,. Apex Transportation Consulting Group Page 17 $ Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION ill, Utilization Distribution by Model Year I Exhibit D displays the utilization of Police Administration, SUVs, and 3/4 Ton Pickup Trucks across model years 1995 through 2000. The objective is to validate that utilization is evenly spread out across the model years to optimize fleet usage, maintenance and replacement costs. iMajor findings are: • The Police Administrative Fleet exhibits a spike in utilization for model year 1998 • The SUV class exhibits a higher utilization for model year 1997. It should be noted that placing an emphasis on achieving a greater balance of utilization across model years would result in a balanced demand on annual replacement requirements. The trade-off is that it results in higher maintenance cost as older model years exhibit a higher maintenance cost per mile than newer model vehicles. Over the long run we believe the net cost (replacement plus maintenance) to the fleet will be reduced. Our review of the data for these classes of vehicles leads us to conclude that there is no systemic over or underutili7ation. Detailed evaluation of under-utilization within each class (presented later in this report) may identify specific units that will need follow-up and evaluation for under-utilization. R b) E C 1. Monitor individual vehicle utilization among major class of vehicles U to ensure balanced usage in comparison to the class average. M 2. Track mileage by model year and implement a greater emphasis on M rotating vehicles to ensure an improved utilization across life cycles. E N 3. Share utilization analytical data with user agencies and enlist their support in proactively managing fleet utilization to include vehicle D rotation. A T 4. Utilize mileage by model year data with life economic analysis 4 I (presented later in this report) to educate budget decision-makers O about the need to plan systematic replacements. ' N S 4 is ir iiiApex Transportation Consulting Group Page 18 ISalt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION EXHIBIT D UTILIZATION DISTRIBUTION BY MODEL YEAR I 95 96 97 98 99 2000 AVERAGE MILES Police Admin 0 0 14,757 20,442 11,061 14,059 14,950 i SUV 9,153 12,102 14,295 0 10,313 12,722 10,041 3/4 Ton Pickup 9,696 9,449 0 8,328 8,608 8,100 9,790 t w II UTILIZATION DISTRIBUTION BY MODEL YEAR-Police Administration 25,000 al :0 20,000 m t' 15,000«li m0 l 7_m .$'"< 7 `Tie ; ; 0 E 5,000 t - 95 96 97 98 99 2000 Model Year I UTILIZATION DISTRIBUTION BY MODEL YEAR-SUV 25,000 20,000 lib W m >15,000 m 0 10,000 ,. 2 -y ;" ..ii i y 4 Y h I 5,000 - 4 ;E«- 95 96 97 98 99 2000 Model Year UTILIZATION DISTRIBUTION BY MODEL YEAR-3/4 Ton Pickup 25,000 20,000 I R i 15,000 o 11- 10,000 7� -II r s iE 5,000 ` t 95 96 97 98 99 2000 Model Year OBSERVATIONS As the data indicates fleet utilization across model years is consistent. Fleet Manager should review fleet rotation in situations wherein the average per year is above or below the class average. 10 Model years with a zero mileage suggests that there is no vehicle in that category. Apex Transportation Consulting Group Page 19 Ili Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION , ) UNDERUTILIZED FLEET A detailed analysis was performed to determine which vehicles might be underutilized. Underutilization is determined by comparing individual vehicle's usage within a common class of vehicles to the class average. Vehicles less than or equal to 80 percent of the class average are identified in Appendix 1 (with a notation of 1) as potential vehicles for reduction from the fleet. 1067 vehicles were examined across ten vehicle classes in the fleet, rep2esenting 60 percent of the rolling fleet. 2001 model year vehicles were not considered to be underutilized in our analysis, as their time in the fleet was not material enough to make a judgment about utilization. Prior to highlighting the results of our review it is beneficial to understand the impact of reducing one vehicle from each class of vehicles examined. We calculated the estimated lifetime savings from reducing one vehicle from each class. The results are shown in Exhibit E and represent an opportunity cost for Salt Lake City. EXHIBIT E ESTIMATED LIFETIME SAVINGS FROM ONE VEHICLE REDUCTION Annual Replacement Life Cycle Maintenance Maintenance Lifetime Estimated Vehicle Type Cost(Net) (Yrs.) Cost Average Miles Savings Miles Total Savings A B C A+(B•C) ill Patrol Sedan $19,800 5 $0.23 14,650 3,370 73,250 $36,648 Police Admin. $14,400 5 $0.23 14,950 3,439 74,750 $31,593 Admin.Sedan $14,400 8 $0.23 6,340 1,458 50,720 $26,066 SUV $21,600 8 $0.24 9,980 2,395 79,840 $40,762 1 Ton Utility $23,000 8 $0.39 5,450 2,126 43,600 $40,004 Pickup 1/4 Ton $16,650 8 $0.20 6,660 1,332 53,280 $27,306 j Pickup 1/2 Ton $17,181 8 $0.26 14,015 3,644 112,120 $46,332 Pickup 3/4 Ton $21,735 8 $0.34 9,790 3,329 78,320 548,164 Internationals 2674 6x4 $81,900 9 $0.87 12,375 10,766 111,375 $178,796 Volvo WXR64 $137,200 9 $2.75 20,520 56,430 184,680 $645,070 i 84,918 OBSERVATIONS Police Patrol fleet is not recommended for reduction in this report. A rotation of the vehicles is recommended for better overall utilization Replacement cost reflects a 10 percent salvage value. Pickup truck acquisition cost reflects the average of 2WD and 4WD. ill Apex Transportation Consulting Group Page 20 it Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION :I il Findings • 80 vehicles within the Police Patrol fleet exhibit underutili7ation. Recognizing that it vehicles are assigned to officers and may be based on staffing complement, fleet rotation rather than fleet reduction may be the best course of action to address the io underutili7ation. • 261 vehicles exhibit utilization of less than 80 percent of the class average as shown in Exhibit F. t ii; • In order to demonstrate the fiscal impact of potential fleet reductions we assumed that of the 261 vehicles identified, 26 vehicles could be reduced from the fleet. The life time savings of this reduction is projected to be $1,327, 650. til • Appendix I details the under-utilized vehicles by class. I The data sends one clear message—there is an opportunity to review fleet usage and act constructively to reduce fleet size and encourage pooling of vehicles within the same customer group. Active follow through with user departments may uncover unique conditions that do not IP warrant pooling or a reduction in fleet. If such is the case, the review process will assure us that the vehicles are efficiently deployed. I EXHIBIT F UNDER-UTILIZED VEHICLES AND POTENTIAL SAVINGS 1110 Group #Whose Usage Estimated Savings Estimated Savings Estimated Savings Description Total <=80%of Avg. Per Class from Per Vehicle from Per Class from I Miles Per Year 10%Fleet Reduction Fleet Reduction 10%Fleet Reduction Patrol Sedan 373 80 $0 $0 Police Admin. 64 7 1 $31,593 $31,593 Admin.Sedan 87 24 3 $26,066 $78,197 SUV 123 49 5 $40,762 $203,808 I1 Ton Utility 53 25 2 $40,004 $80,008 Pick-Up 1/4 Ton 70 21 2 $27,306 $54,612 Pick-Up 1/2 Ton 99 52 5 $46,332 $231,661 Pick-Up 3/4 Ton 141 60 6 $48,364 $290,183 International 2674 6x4 41 23 2 $178,796 $357,593 Volvo WXR64 16 0 0 $0 0 261 26 Total $1,327,654 11. OBSERVATIONS 11 2001 model year vehicles were not considered as underutilized due to the limited life span within the fleet. Estimated savings is net of salvage receipts and do not include maintenance costs. ir Apex Transportation Consulting Group Page 21 Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION Pooling of Vehicles Analysis of the age and mileage fleet composition and a review of underutilization has highlighted the need to address the fleet size. Fleet size can be addressed through replacement planning, outright downsizing, downsizing with rental substitution or pooling of under-utili7ed vehicles to increase usage and availability. Findings Salt Lake City does not have a formalized motor pool operation. The analysis of fleet utili7ation clearly provides an opportunity to review the establishment of a motor pool. It should be clarified that we recognize that the fleet consists of general fund agencies and special fund agencies and pooling of vehicles among that mix may be procedurally cumbersome. However, the savings from fleet reductions is material enough as demonstrated earlier in this report to warrant a process of integrating general fund and special fund agency vehicles in a common motor pool operation. The rationale for a motor pool operation is that rather than remove under-utilized vehicles from the fleet, the vehicles are transferred to a motor pool and utilization is increased. The next step is to follow through with a phase out of vehicles as they reach the end of their life cycle. Revenues collected from the motor pool will fund replacements in the quantity required and the overall fleet will be gradually reduced to the appropriate size. Two critical aspects to a successful motor pool operation must be instituted. The first is the charge for the service must be below that of an assigned vehicle. Second, the location of the motor pool must be convenient to the potential users. Generally, a location at or very close to a fueling facility will be the ideal site to locate a motor pool. This report presents a draft motor pool assignment plan highlighting a few administrative aspects of a sound motor pool policy. Apex Transportation Consulting Group Page 22 Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION le1. Perform an underutilization analysis as presented in this report on an annual basis. Circulate the findings among user agencies to R encourage peer review and improved oversight from program managers. II E C 2. Recommend annual meetings be held with user departments to 0 discuss utilization analysis results and determine aproposed course I of action for underutilized and potentially surplus vehicles. M M 3. Evaluate the potential to reduce 26 vehicles or a portion thereof and I E utilize the estimated savings of$1,327,650 to address uneven mileage N and age distribution of vehicles within the fleet by expediting replacement and investing in other fleet improvements. D A 4. Review the establishment of a motor pool facility stocked with T underutilized vehicles and available at a materially lower cost to the II user. 5. Evaluate the feasibility of establishing motor pools at strategic N locations for light and heavy equipment. S 6. Utilize the draft motor pool assignment plan detailed in this report to create a process that recognizes the nuances of the Salt Lake City 10 operations. I I I II 11 I Apex Transportation Consulting Group Page 23 I Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION MOTOR POOL ASSIGNMENTS PURPOSE Ili 1.0 To establish a procedure for the assignment or dispatching of Salt Lake City vehicles to authorized Salt Lake City employees and authorized Salt Lake City volunteers to be used while on official business. t DEFINITIONS 2.0 Motor Pool-Unassigned Salt Lake City vehicles maintained by Fleet Management for use by authorized employees and volunteers on official business. I 2.1 Authorized Employee or Volunteer -Any authorized Salt Lake City employee or authorized Salt Lake City volunteer possessing a valid driver's license. Persons with disabilities who drive must have evidence of being capable of driving with adaptive equipment of respective vehicles. POLICY 3.0 Every authorized Salt Lake City employee or authorized Salt Lake City volunteer who operates a Salt Lake City vehicle must have a valid driver's license. ik° 3.1 Motor pool vehicles must be returned to the Motor Pool on the same day it is dispatched. Due to certain circumstances and/or work assignment, an employee may ji occasionally need to retain a pool vehicle overnight or for more than one day. Approval to retain a pool vehicle overnight, or longer,up to a maximum of fifteen (15) days, requires approval from Fleet Management. • 3.2 Due to the limited number of motor pool vehicles, the use of these vehicles is restricted. In the event that a regularly assigned vehicle is in the shop for maintenance or repair for more than five work days,request a motor pool vehicle according to the procedures outlined under Section 7.0 of this administrative procedure. GENERAL 4.0 Charges for use of a pool vehicle can be found in the budget manual for each respective fiscal year. 4.1 Parking spaces for the Salt Lake City pool vehicles are reserved for "Motor Pool Assigned Vehicles" which are located on the . Parking permits for private vehicles are available at the Motor Pool for those individuals who use pool vehicles and commute to the Motor Pool from remote locations. /0 Apex Transportation Consulting Group Page 24 iSalt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION III 4.2 In the event of emergencies or accidents on the road,refer to the Accident Information and Salt Lake City Driver's Reporting Form that is placed in the glove compartment of each Salt Lake City vehicle. 4.3 In the event of an emergency breakdown, call the Maintenance Shop at X X'X-X it between the hours of 6:00 a.m. and 4.00 p.m., Monday through Friday (excluding holidays), or call the Security Desk at Xoa--X'XXX after normal working hours and weekends or holidays. s N. IRESPONSIBILITIES i5.0 Fleet Management. Perform all functions associated with the Motor Pool. i5.1 Salt Lake City Operator erator II A. 'When assigned a pool vehicle, adhere to traffic and safety laws, and ensure the interior of the vehicle remains clean. I B. While driving a motor pool vehicle, the assigned operator is responsible to pay any fine or fee when cited a traffic or parking citation. 1110 C. If involved in any vehicular accident in a pool vehicle, notify the Salt Lake City Police immediately (telephone 911), and do not remove the Salt Lake City vehicle from the accident scene until approved by the Police Officer. I D. Report any vehicle-related problems and/or accident damag e to the Motor Pool Attendant. E. When a vehicle is returned to the Motor Pool f a ter normal working hours, drop off the keys. Write the stock number of the vehicle, date, time, and ending t odometer reading on a piece of paper and put it in the mail drop box for the Motor Pool Attendant. F. In the event the vehicle is returned after normal working hours, report problems/accident damage on the Customer Service Evaluation Form and submit it to the Motor Pool Attendant. G. Upon returning a vehicle to the Motor Pool,refuel the vehicle and remove all personal property or debris,i.e. paper cups, cans, newspapers, etc., from the I vehicle. Abuse of cleanliness will result in future denial of requests for Motor Pool vehicles. Failure to refuel or clean out your motor pool vehicle may result Iin an additional charge. Apex Transportation Consulting Group Page 25 I Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION PROCEDURES 6.0 Authorized Employee Report to the Motor Pool Office and show a valid or Volunteer driver's license. Request a pool vehicle from the Motor Pool Attendant. NOTE: To reserve a motor pool vehicle, call the Motor Pool (Phone#)O -X),t1'X') in advance for a specific date and time. However, the attendant will only hold a reserved vehicle for one hour beyond the specific time requested. 6.1 Motor Pool Attendant Record all reservations for vehicles made over the telephone. Ask to see the valid driver's license of the employee or volunteer requesting the pool vehicle and record the driver's license number and expiration date. Fill out Daily Dispatch Record and Motor Pool Ticket, and issue vehicle keys to authorized employees. 6.2 Authorized Employee Provide the Motor Pool Attendant with all or Volunteer requested information for the Daily Dispatch Record and Motor Pool Ticket,including valid driver's license and the correct index code number. Obtain the keys for the assigned motor pool vehicle from the Motor Pool Attendant. Motor pool vehicles must be returned to the Motor Pool on the same day it is dispatched unless other arrangements are approved. After use of the motor pool vehicle, refuel and remove all personal property and debris such as bottles, cans, cups, etc., so as to leave the interior of the vehicle in a state of cleanliness upon return to the Motor Pool. Note any mechanical problems or malfunctioning of the motor pool vehicle. Report any mechanical problems of the vehicle to the Motor Pool Attendant. After refueling, park the motor pool vehicle at the gas pumps when returning the vehicle to the Salt Lake City Office Building Motor Pool. Also, return the keys to the Motor Pool Attendant. Vehicles returned to the Salt Lake City Office Building after hours are to be refueled and parked in Apex Transportation Consulting Group Page 26 Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION the proper spaces and all doors are to be locked. Failure to refuel the motor pool vehicle may result in an additional charge. Authorized Employee If after hours,leave a note showing the stock number or Volunteer of the vehicle, the date, the time in, and the mileage in. Place the note and vehicle keys in the drop box at the Motor Pool. 6.3 Motor Pool Attendant Obtain vehicle keys from the operator or dropbox. y P Complete Motor Pool ticket of the returned pool I vehicle by writing: (1) time in, (2) mileage in, and (3) total miles on the records. Inspect the condition of vehicle (interior and exterior), and make note on the I back of the Motor Pool Ticket Record if the motor pool vehicle was returned in a state of untidiness. Also, note any mechanical problem or malfunctioning Iof the vehicle reported by the operator. Refuel the returned motor pool vehicle if the operator I has not done so, clean the interior, and place the vehicle in the proper parking space ready to be dispatched. In addition,prepare the new Motor Pool IPTicket Record. IREQUESTING A MOTOR POOL VEHICLE MORE THAN ONE DAY I 7.0 Authorized Employee or Volunteer To retain a motor pool vehicle overnight or longer obtain approval from Fleet Management. 7.1 Motor Pool Attendant Ask to see the valid driver's license of the employee or volunteer requesting the pool vehicle and record I license number and expiration date. Fill out Daily Dispatch Record and the Motor Pool I Ticket, in addition to issuing vehicle keys to authorized employees. 7.2 Fleet Management Approve or disapprove the employee's request to retain a pool vehicle for a period overnight or longer and up to a maximum of fifteen (15) days. i ill Apex Transportation Consulting Group Page 27 II I Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION ID 7.3 Authorized Employee To retain a motor pool vehicle for over fifteen days, or Volunteer submit the request in writing to the Chief, Division of Fleet Management Services. 7.4 Fleet Management Approveor disapprove employee's appro e the employee s request to retain a pool vehicle for more than fifteen days. DEPARTMENTS AFFECTED 8.0 All Salt Lake City departments. VEHICLE JUSTIFICATION PROCESS I An annual vehicle justification process includes both requests for additional fleet and a validation for the continuation of the current fleet. The vehicle justification process will promote a formal review of program requirements. The objective of a vehicle justification process is to revisit Ithe criteria upon which the original vehicle assignment was approved to the using agencies. An administrative procedure detailing the vehicle justification process should spell out the Icriteria for receiving an agency assigned vehicle, a fleet upgrade, or a vehicle class change. • The administrative criteria to receive an agency assigned vehicle should include the following: Employees whose duties require them to spend the major portion of each workday engaged in field activities Employees whose duties and responsibilities require that a vehicle be available at all times during each workday so as to maintain the efficiency of the employee - Employees whose duties require the constant use and/or storage of special equipment in the vehicle. Findings • Salt Lake City does not have a vehicle justification form or process to review new capital requests or the current allocation of vehicles among user agencies. The vehicle justification form will function as the document that brings all the above I criteria together for review by the fleet manager. The Fleet Management agency should assume full responsibility to oversee the execution of this annual vehicle review process. The additional advantages of the vehicle justification form are that vital information I' regarding the quantity and type of equipment in Salt Lake City's inventory is annually Apex Transportation Consulting Group Page 28 Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION verified. For example, the quantities of two-way radios, car telephones, etc., are annually updated. The vehicle justification form provides information about the location of each Salt Lake City vehicle, operator name, and estimated vehicle utilization. Finally, the justification form represents a written justification for the use of the vehicle that is reviewed and signed off on by the department head. • A pro forma Vehicle Justification form has been x or developed f our review and fine � tuning. In summary, the administrativeprocedure outliningthe criteria c terra to request, renew or upgrade vehicles accompanied by the justification review form provides a detailed oversight of the vehicle assignment process. R 0 1. Develop and institute a formal annual vehicle justification review M process to be coordinated in conjunction with the underutilization analysis of fleet vehicles. E 2. Utilize the vehicle justification process detailed in this report to N create an objective evaluation methodology to determine the assignment of vehicles to user agencies. A T I 0 N .1 S I 1 Apex Transportation Consulting Group Page 29 Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION ID SALT LAKE CITY I ADMINISTRATIVE VEHICLE REVIEW FORM Page 1 of 3 I- Date: TO: Director, Office of Management and Budget c iVIA: Fleet Manager, Fleet Management g �I FROM: SUBJECT: Department Vehicle Assignment Request I1. Purpose: This memo details the following g vehicle request action. I2. Type of Assignment 3. Vehicle Class a. Additional Request a. Administrative 1 b. Rejustification b. Emergency c. Agency Assigned Pool c. Other ID d. Administrative Take Home e. Assigned Emergency 4. Vehicle Description (if applicable) a. Type: Sedan Truck Other b. Vehicle Stock Number Year c. Two-way Radio Yes No d. Car Telephone Yes No e. Color f. Decals Yes No g. Type of Tags h. Other Equipment 5. Vehicle Assignment a. Temporary: (Duration) Days Weeks Months b. Permanent: Please complete Justification Section #9 c. Operator Name d. Job Position Name and Class e. Nature of Work Itir riApex Transportation Consulting Group Page 30 ISalt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION tieSALT LAKE CITY I ADMINISTRATIVE VEHICLE REVIEW FORM Page 2 of 3 6. Location: Full address of where the vehicle is parked after work hours: Street Name &Number (if available) tN. I City County (Per AP X-X, all vehicles must be parked in Salt Lake City) 1 7. Passengers - Use additional sheets if necessary. IName Employee Position Class I 1 8. Estimated Vehicle Utilization a. Total Annual Mileage 1110 b. Round trip mileage from the location shown in question #5 to assigned office work location at Miles (Field Personnel- Use your home office, not job site location.) Ic. Business use per day miles, hours (if applicable) d. Motor Pool vehicle available? Yes No IIf yes, explain why it cannot be used in the Vehicle Justification in section #10. 9. Type of Use Ia. 24-hour callback: yes no Confirmable incidents per month b. After hours yes unctif meeting s/ no iConfirmable incidents per month c. Field supervision: yes no Confirmable incidents per month III d. Visibility of function: yes no Confirmable incidents per month ir Apex Transportation Consulting Group Page 31 1111 Salt Lake City Fleet Operations Assessment and Optimization Plan II FLEET UTILIZATION SALT LAKE CITY ADMINISTRATIVE VEHICLE REVIEW FORM Page 3of 3 e. Special equipment: Type f. Job efficiency/effectiveness: yes no How 10. Vehicle Justification (Use additional sheets if necessary) 111 Depaiunent Head Signature Date Reviewed By: Signature Date Recommendation Fleet Management Management&Budget Additional Comments: Apex Transportation Consulting Group Page 32 ii Salt Lake City Fleet Operations Assessment and Optimization Plan III COST ALLOCATIONEVALUATION III COST ALLOCATION EVALUATION OVERALL ASSESSMENT 11 Cost Allocation should be developed in a manner that will capture the cost of operating the vehicle and differentiate cost allocation among users based on the level of services requested. The characteristics of an efficient cost recovery system are a structure that reebups the operational and 110 maintenance (O&M) cost and is logical and intuitively acceptable to the user. Cost determination is a process whereby the cost of operating the equipment (direct and indirect costs of operation) and replacing it is identified and is tabulated for recovery. Cost allocation calculation is the process of 10 converting the total cost attributable to a fleet operation to a Department charge. The following is an overall assessment of the cost allocation process. di • The computerized cost accounting system operates in manner that provides fleet management with data to process allocation of charges to recover the cost of the dioperation. • Based on the current fleet size and manpower capabilities, the current billing mechanism is satisfactory with the following caveats. User departments must have the resources to evaluate charges billed to them on a time and material basis and have the ability to address the fiscal peaks and valleys that may occur from one fiscal 1110 year to another. Conditions that,in our experience, have been difficult to realize in a governmental operation. 0 • The current automated system of Salt Lake City is two and a half years old. With the implementation of a time and material billing system the analytical abilities of the system should be fully utilized to develop benchmarks for various types of repairs to ill assist the user agency to judge the fairness of the billing and enable Fleet Management to be competitive with the private service providers. 111 • The fleet agency policy not to maintain a cash reserve balance for purposes beyond the payment of known liabilities should be reexamined. The framework of an internal service fund and its ability to maintain retain earnings makes it a viable entity iito provide for unexpected variances in maintenance expenditures. Findings 1111 In this section of the report we examine Salt Lake City's cost allocation process, test its overall success with respect to cost recovery, evaluate the appropriateness of the internal service 11 fund structure and discuss alternative processes. Cost allocation should serve the broad principles of cost recovery, encourage cost control and be intuitively acceptable to the user. Cost allocation should not be complicated to process or Iunderstand, and should not divert the focus of the fleet administrator from the primary goal of providing efficient service at a reasonable cost. IP Apex Transportation Consulting Group Page 33 I 0 Salt Lake City Fleet Operations Assessment and Optimization Plan III COST ALLOCATION EVALUATION $0 Prior to fiscal year 2002,general fund user agency billing was based on a budget allocation method. The method involved developing a budget utilizing prior year data and adjusted for inflation and anticipated variables. Effective fiscal year 2002,general fund user agencies are billed on a time and material basis. The rationale for the change in the billing process was to ensure cost ii recovery and promote accountability. N. The billing system prior to FY2002 was efficient to the extent that the results of the net 111 operations (charges for services less operating expenditures) were within a five percent margin and did not exceed $290,000 annually on the positive or negative side. The size of the variance on a revenue base of$5.5 million and utilizing a billing system that is not labor intensive for the user or illthe fleet agency is commendable. The effectiveness of the time and material billing system and the response of the general difund user agencies is not measurable as the system has been in affect for only three months. The policy of the operation not to have a cash reserve balances for unanticipated variances il shifts the responsibility of such expenditures to the user agency. In reality this sets up the probability of a supplemental request if the expenditures cannot be absorbed and creates a demand on general fund resources. Although in theory this is a fair approach we present the following 111 opposing rational. An internal service fund is established to provide for centralized management of fleet resources and create an environment wherein the vagaries of governmental budgeting and competing resource demands do not impact the long term decision making to ensure an effective do fleet, i.e., replacement planning and absorption of variances in maintenance expenditures. To the extent that Salt Lake City is confident that the current policy will not impact decisions that ensure an efficient fleet operation, the policy to have no cash reserves is appropriate. 110 There are several methods of cost allocation that can be implemented. Each of the mechanisms discussed below are reviewed in light of the Salt Lake City's work environment for IIIfeasibility of application in preference to the current system. Time and Material Charge-back System liUnder this system the user is charged for the actual cost of the vehicle maintenance through the means of a work order. Labor is assessed at an hourly rate for the time worked on the vehicle. 1111 Materials used to the repair the vehicle are charged against the vehicle via a work order generally with a mark-up to recover indirect operational costs. ilThe advantages of such a system are: • The process is similar to a commercial establishment, pay as you go concept is I enforced, and billing is associated with actual cost • There is no perception of improper charge-back rates • Proponents of this methodology suggest that this mechanism ensures that the service li provider is competitive and held accountable for performance. l' Apex Transportation Consulting Group Page 34 I 111 Salt Lake City Fleet Operations Assessment and Optimization Plan HI COST ALLOCATION EVALUATION The disadvantages of this system are: fi • Billing is cumbersome • • Fleet management must develop benchmarks for repair categories to ensure the user IIII agencies are charged fairly and can be given tools to assess the fairness independently • The user may not be not technically competent to offer a second opinion • The highest concern of all is the inability of the user to batlget end accept peaks and lill valleys that invariably occur with fleet maintenance cost • In governmental budgeting unencumbered funds cannot be carried over to another fiscal year and therefore any surplus attributable in one year to a user agency is subject to being spent on other programs. Consequently, the ability to absorb variances in maintenance expenditures is limited and the ownership of the variance is generally not attached to the user agency as they are not considered experts in the Ibusiness of fleet maintenance. Salt Lake City has adopted this billing process to ensure cost recovery and promote 111 accountability. The approach should be monitored to ensure that the disadvantages addressed above do not hinder the ability of fleet management to maintain an effective operation. IFlat and Mileage Charge-back System Under this system the user is charged for the use of the vehicle on a monthly basis. The user ill is assessed a flat rate to cover fixed costs, such as vehicle replacement, overhead expense and insurance costs, and a mileage rate to cover variable costs such as labor, parts and fuel. A class of similar vehicles irrespective of model year determines the flat rate. The advantages of such a system are: • The mileage rate is a direct motivation to the user to assist in controlling cost • The base rate is intuitively acceptable to the user, for example, all 1/2 Ton Pickup Trucks within the fleet will have a consistent flat rate 11 • Communication with the fleet user with respect to the methodology of calculating the replacement charge would have to be explained only once for all vehicles within the class. Therefore, a 1/2 Ton Pickup with a current cost of$15,000 would have a replacement cost of$17,755. This is computed as $15,000 times 1.317 (eight year life at 3.5 %inflation) less $2,000 salvage value. The monthly charge for all Pickups subject to replacement would be $17,755/96 months equal $185 per month. The disadvantages of such a system are: 1 • The complexity in maintaining accurate mileage systems • Investing in additional resources to monitor mileage data and make adjustments on a 0 daily basis to avoid erroneous data collection. Flat and mileage billing does have a clear advantage, it encourages accountability while IPenabling the fleet management to anticipate and plan for replacements in a timely manner. Apex Transportation Consulting Group Page 35 ISalt Lake City Fleet Operations Assessment and Optimization Plan III COST ALLOCATION EVALUATION 11110 However, there are resource requirements to be fulfilled prior to implementation. Manpower resources will be necessary to monitor the quality of interfaced mileage data as such data in the Isource of revenue. Salt Lake City funds a majority of its capital replacements via general fund appropriations and through lease purchases. Adopting a flat replacement charge would require a monthly fee to be billed to user agencies and the development of the reserve fund to replace Ivehicles per their life cycle. In addition it would require a change in the leasing strategy currently in place and the method of appropriation. Our earlier recommendation of iwplermenting a vehicle justification process within the City will initiate an objective review of capital requirements and add Ivalue to a flat and mileage billing system should it be considered in the future. I R E I C 0 1. Fleet Management should monitor the new billing system and M conduct a biannual survey among user agencies to refute the II. M disadvantages discussed above. E 2. Fleet Management should develop a set of tools to assist user IN agencies to evaluate the time and material billing to ensure that D repairs charges are consistent among users. A 110 T 3. No change is currently recommended to the cost recordation process. I I 0 N I S ISHOP LABOR RATE I The shop labor rate for Fleet Operations in Salt Lake City is $56 an hour and is below the average commercial labor rate of$75 per hour. The labor rate is based on budgeted cost data. The actual labor rate applied by fleet operations is $59.50 per hour. The labor rate of$56 an hour is I achieved as a result of recovering certain administrative and parts overhead charges through a parts surcharge, a work sublet surcharge, a fuel surcharge and offsetting expenditures with revenues from warranties and claims. Further, the personnel and operating costs associated with the vehicle I preparation team (for auctions and installation of accessories on new vehicles) is charged to the Fund. In the absence of such charges the shop labor rate would be $74 per hour. I Findings A shop labor rate is an hourly rate computation that captures all the direct and indirect costs I" incurred by the fleet operation. Examples of direct costs are mechanic salaries and wages. Apex Transportation Consulting Group Page 36 I Salt Lake City Fleet Operations Assessment and Optimization Plan III COST ALLOCATION EVALUATION Generally,when a mechanic charges a work order for work performed on a vehicle the direct costs of the mechanic is recovered based on an hourly rate that pays for his costs. However, there are certain additional costs called indirect costs. Examples of indirect costs are administrative salaries, overhead allocation charges from the corporate head office,rent charges,utilities, computer systems, office supplies, and infrastructure investments and repairs. Such indirect charges have to be passed on to the customer and a mechanism needs to be developed to incorporate the indirect costs into the customer's invoice. The most efficient and fair methodology is to develop a labor rate that adds up the direct and indirect costs and divides the total by the labor hours a mechanic will charge work orders over a course of the year. The key component is the "hours a mechanic charges to work orders over the period of one year"—known as direct billable hours or net productive hours. There are a total of 2,080 hours each mechanic can charge work orders assuming a 40-hour week. However, a mechanic does not work the entire 2,080 hours. The direct billable hours for the 31.7 mechanics of Salt Lake City are 45,894. This equates to 1,448 billable hours or productive hours per mechanic, which is lower than the industry average of 1,540 hours. Exhibit G shows the calculation of the labor rate on the basis of the full cost of the operations being passed through the billable hours,i.e., 45, 894. The direct hourly labor rate is $56.73 and the overhead is $17.45 per hour. The advantage of the methodology shown in Exhibit G is that all costs are identified in and charged via one process. Naturally, this process yields a high labor rate. However,the labor rate of$74 an hour is not beyond the margin of reasonableness given a commercial labor rate of$75 an hour plus parts mark up. Exhibit H shows the calculation of the labor rate as is currently done by Management Fleet M ement g and provides a cross walk to the $74 an hour earlier calculation. Of significance is the cost associated with the vehicle preparation team (6.75 work years) and associated operating costs directly attributable to the team. It is our understanding that the team has been eliminated in fiscal year 2002. The work will have to be either contracted or performed by the existing mechanics. In either case the cost should not be charged to the fund but added as an overhead expense and borne by the user agencies. If the costs are similar to 2001 then the labor rate will increase from $56 to $62 an hour shown in Exhibit H. The concept of marking up fuel at five percent and sublet work at fifteen percent is not material in size to warrant a change. The markup of parts by forty one percent is also reasonable given the commercial practice of 70-100 percent markups. However,with respect to Salt Lake City, the issue is the fairness of the approach to the user agencies. There may be a scenario wherein the light fleet bears a disproportionate burden of the parts markup resulting from higher turnover of parts as compared to the heavy fleet. The issue does warrant a review and if parts usage among the heavy and light fleet is materially different then a parts markup approach may not be a fair approach. However, we clearly understand the rationale of fleet operation and accept the notion that commercial operations do charge a parts markup. Further, in order for the fleet operation to prove its competitiveness to commercial providers it must engage in similar practices. 111 Apex Transportation Consulting Group Page 37 I ti Salt Lake City Fleet Operations Assessment and Optimization Plan III COST ALLOCATION EVALUATION EXHIBIT H SHOP LABOR RATE FOR SALT LAKE CITY BASED ON ANALYSIS OFFY01 BUDGETDATA A Direct Labor Costs 1,867,800 31.70 Wys Light and Heavy Mechanics Indirect Labor Costs 333,283 2.10 Wys Administrative 11 Indirect Labor Costs 192,865 5.60Wys Parts Room Indirect Labor Costs 191,408 6.75 Wys Vehicle Prep Team Indirect Labor Costs 18,500 0.85 Wy Fuel de`IiveryTabor B Salariesand Wages(S&W) 2,603,856 47.00 Wys C S&W Per Direct Employee 1,867,800 Labor attributable to Light and Heavy Mechanics Portion of Admin Labor attributable to 276,935 Light/Heavy Mechanics 2,144,735 dil ($2,144,735/31.7 Mechanics) 67,551 - D Direct Labor Rate: $46.65 70 percent direct labor recordation il (C/Net Productive Hours) 45,894 laborshourscharged (67,551/1448) E Overhead Operating Overhead 180,780 Light/Heavy Allocation Overhead 235,020 Admin/Risk Management/Data Processing attributable to Light and Heavy Shops I Total Overhead 415,800 F Overhead per Direct Billable Hr. 1,448 per Mechanic x 31.7 Mechanic $9.06 (415,800/45894) TOTAL SHOP LABO R RA1E $56 ACCOUN11NG FOR1HEDIFFEFENCEBEiWEN$74 AND$56 LABOR HOUR COSTS A $18 difference 45,894 billable hours A $826,092 recovered via another method $56.00 Hourly Rate Cross Walk B 41 percent markup to parts disbursed $317,980 $6.93 ill 15 percent markup to sublet repairs $70,425 $1.53 5 percent mark up to fuel pergallon $37,363 $0.81 Fund balance:Cost associated with vehicle $282,227 $6.15 prep team (laborand associated overhead) Warranty reimbursement 30,000 $0.65 Insurance Claims Revenue 88,097 $1.92 • $826,092 $74.00 iC: In FY02 the vehicle prep team of 6.75 positions has been eliminated and therefore isnot an issue going forward. The task to prepare vehiclesforauction and preparation of new vehicleswith required accessories 0 will have to be done by existing complement of 40 employeesorby contractual procurement. 111 Apex Transportation Consulting Group Page 38 Salt Lake City Fleet Operations Assessment and Optimization Plan III COST ALLOCATION EVALUATION R I E C 1. The process of calculating the shop labor rate is reasonable and o comparable to commercial practices. 2. Salt Lake City should not charge the Fund for the vehicle M preparation team or any similar charge going forward. E N 3. Allocation overhead charges for central services should be reviewed D each year and justified.A reduction in the overhead allocation charges will materially improve the hourly labor rate and improve A comparison to the commercial labor rate. T I 4. The practice of parts markup should be reviewed in light of the O value of parts disbursed between the light and heavy fleet to assess an equitable sharing of the expense. 1111 S V 0 I I I I I Apex Transportation Consulting Group Page 39 tiSalt Lake City Fleet Operations Assessment and Optimization Plan IV FINANCIAL PERFORMANCE ANALYSIS ,$), IV FINANCIAL PERFORMANCE ANALYSIS OVERALL ASSESSMENT to Financial Performance Analysis is a macro review of the performance of the maintenance operation. Budget data is measured against the Consumer Price Index (CPI). If the actual budget cost trend is below inflation, a real savings is realized. If actual budget cast trend is above inflation, a nominal cost is realized. A nominal cost is an opportunity cost, as another opportunity to provide additional government services is forgone to pay for budget costs that are above inflation. 0 Based on the analysis of the fleet budget data for period 1996 to 2001, Salt Lake City fleet management has demonstrated good management focus in several areas of financial performance. Overall, based on the review of the financial performance, it appears to us that the current fleet budgetary controls are satisfactory. Findings ilExhibit I is a recap of the 1996 to 2001 (estimated) fleet financial performance. A key macro measurement tool is net operations, the difference between Charges for Services and Operations Costs. As is evident the fleet operation has been three years in the red and three years in the black aggregating to a positive balance of$21,800 over the six years. This is a commendable performance given that the budgeting and billing process was largely based on an allocation to illgeneral fund agencies and involved a low level of manpower to facilitate revenue collection. Exhibit J compares the personnel costs to the CPI. Total Personnel Cost increased at a rate of 18.67 percent from 1996 to 2000. The CPI rose 14.2 percent during the similar period. However, as a result of reductions in the staffing complement in 2001, the 1996 to 2001 comparisons narrow materially. The 1996-2001 personnel costs increase is 18.67 percent compared to the CPI of 17.33 percent. Exhibit K compares the total maintenance cost excluding fuel expenditures to the CPI. The 1 results are excellent over the six year period. Maintenance costs have increased 8.4 percent while the CPI has increased 17 percent. This difference is material and is a direct benefit to the citizens of Salt Lake City. It should be noted that the maintenance operations incurred a significant drop in 2000 due to the capitalization of costs associated with replacement. Irrespective of the 2000 anomaly the six year trend speaks for itself. Exhibit L compares the charges for services to the CPI. The increases for charges for services are materially below the rate of inflation. Charges for services increased 3.4 percent from 1996 to 2001 while CPI rose 17 percent. An excellent performance. ii Exhibit M tracks the net operations results over the last six years around the mean trend line of zero representing breakeven. Given the size of the charges for services at $5.5 million the costs 10- overrun, or surplus, is not material and not cause for any alarm. As discussed in the Fleet Utilization chapter of this report we are biased towards evaluating fil ' fleet performance through the adoption of vehicle classes. The advantages of grouping similar Apex Transportation Consulting Group Page 40 I IISalt Lake City Fleet Operations Assessment and Optimization Plan IV FINANCIAL PERFORMANCE ANALYSIS 10 I..." pieces of equipment for analytical review and costs comparison are of immense value to the fleet manager. We recommend that you adopt a similar approach. EXHIBIT I SALT LAKE CITY CORPORATION il BUDGET TREND DATA N. 111 1996 1997 1998 1999 2000 2001 Charges for Services 5,551,348 5,837,753 5,537,849 5,649,651 5,547,428 5,741,588 Personnel Cost 2,245,038 2,326,987 2,531,617 2,597,061 2,664,005 2,398,667 Maintenance 3,017,186 3,347,227 3,288,786 3,171,420 2,705,154 3,550,670 Fuel 843,577 932,070 823,522 667,921 928,9721,193,616 Parts $ 1,534,733 $ 1,793,699 $ 1,283,049 $ 1,285,187 $ 489,412 815,136 Contractual Assignment 0 1,198 618,209 616,360 595,954 647,457 ITowing 33,744 33,390 42,476 29,706 26,874 19,938 Overhead Charges 605,132 586,870 521,530 572,246 663,942 874,523 Net Operations" 289,124 163,539 -282,554 -118,830 178,269 -207,749 I * Net Operations reflect the recovery of operating expenses from the charges for services excluding depreciation. 2001 Charges for Services is estimated EXHIBIT J PERSONNEL COSTS 1996 1997 1998 1999 2000 2001 Total Personnel cost 2,245,038 2,326,987 2,531,617 2,597,061 2,664,005 2,398,667 CPI ADJUSTED COST 2,245,038 2,323,614 2,404,941 2,489,114 2,563,787 2,634,291 Personnel Cost Versus CPI Adjusted Cost 3,000,000 — ----- -•---.-----.---------....-.- .._ d2,500,000 _ I i A-2,000,000- =° 1,500,000- Ti 0 .a 1 1,000,000 500,000 --- - -----___-___- .- ------- i . 0 1996 1997 1998 1999 2000 2001 el -- Year 1-0—Total Personnel cost—*--CPI ADJUSTED COST I Apex Transportation Consulting Group Page 41 g Salt Lake City Fleet Operations Assessment and Optimization Plan IV FINANCIAL PERFORMANCE ANALYSIS 4 )11 EXHIBIT K MAINTENANCE COSTS 1996 1997 1998 1999 2000 2001 Maintenance Cost* 2,173,609 2,415,157 2,465,264 2,503,499 1,776,182 2,357,054 if CPI ADJUSTED COST 2,173,609 2,249,685 2,328,424 2,409,919 2,482,217 2,544,272 t w Maintenance Cost Versus CPI Adjusted Cost 3.000.000-------- -- 2,500,000 t A 2,000,000- I � i ; 0 1,500,000- o 1,000,000- ' I 500,000- 0 1 1 1996 1997 1998 1999 2000 2001 11 Year +Maintenance Cost*-- --CPI ADJUSTED COST *Maintenance cost excludes fuel expenditures 11 1# 14 ill IP •j Apex Transportation Consulting Group Page 42 t Salt Lake City Fleet Operations Assessment and Optimization Plan IV FINANCIAL PERFORMANCE ANALYSIS 16 EXHIBIT L CHARGES FOR SERVICES i4 1996 1997 1998 1999 2000 2001 Charges for Services 5,551,348 5,837,753 5,537,849 5,649,651 5,547,428 5,741,588 CPI ADJUS 1 hD COST 5,551,348 5,745,645 5,946,743 6,154,879 6,339,525 6,498,013 i Charges for Services Versus CPI Adjusted Cost _— 7,000,000- • 6,000,000- A_____—_I 5,000,000- lit 4,000,000- - 111 A 3,000,000 ii2,000,000 i 1.000,000 ii IIP 0I 0 1996 1997 1998 1999 2000 2001 11111 Year tCharges for Services —CPI ADJUSTED COST it R E C O 1. Implement an annual program to prepare budgetary performance I statistics as presented in this report. M It M 2. Performance statistics should be shared with budgetary decision E makers on an annual basis preferably during funding request. IIN 3. Performance statistics should be shared with customers on an st A D annual basis preferably during communication of cost allocation A charges to the user agencies. 4. Implement a monitoring structure to evaluate fleet performance via • I vehicle classes that group similar equipment together. N 1 s 111 Apex Transportation Consulting Group Page 43 113 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS )11 V VEHICLE REPLACEMENT ANALYSIS OVERALL ASSESSMENT Fleet replacement planning and funding play a critical role in controlling fleet costs, safety and reliability. Timely replacement is important because vehicles and equipment beyond their useful life become less efficient and less reliable. In addition,vehicle and equipment failure lead to increased downtime costs and lost productivity due the inability of the user to use the vehicle. The correct replacement life cycle can be evaluated through conducting an economic life cost analysis. Such an analysis objectively determines the ideal time to replace a particular unit. There are two components to the development of an economic life analysis model. First is the current acquisition cost and second is the maintenance cost per mile (CPM) for various model years pertaining to the specific class of vehicle under review. Therefore, the integrity of the maintenance • CPM data is of significant importance. Utilizing maintenance data for the period 2000 and 2001 we developed CPM data for various model years to be utilised in the economic life cycle analysis. The economic life analysis was performed for seven classes of vehicles. The analysis recommends an ideal life cycle and mileage range at which vehicles should be replaced. The results of the economic life cycle analysis were compared to industry replacement standards for similar equipment to ensure that the results are within acceptable parameters. With respect to a majority of the heavy fleet,replacement guidelines are based on a review of industry practices, jurisdictions nationwide, and the results of a survey of jurisdictions surrounding Salt Lake dr City. We recommend guidelines resulting from the outcome of the survey of surrounding jurisdictions for the following reasons. The survey results are within acceptable parameters of national standards. The survey results reflect the environmental factors pertinent to Salt Lake City and therefore are more realistic and useful. To summarize, comparison of the recommended life cycle to the current replacement life cycle indicates that the recommended replacement cycle is marginally longer either than that being currently used by Salt Lake City or that being considered for use. The recommended replacement cycles are consistent with the three guiding principles of fleet management operation,which are to make the fleet affordable, available and functional. The recommended replacement for the light fleet is based on cost factors that are unique to the Salt Lake City operation and those for heavy equipment are consistent with surrounding jurisdictions to recognize environmental factors. An overriding caveat to our findings is that the fleet manager should review each change in the life cycle on a case-by-case basis. The findings should not be implemented in a manner that endangers the fleet users or the City's citizens. Parallel to the assessment of replacement criteria, this report presents a process to evaluate purchase versus renting as an option to addressing fleet requirements. Ideal candidates for such an evaluation are vehicles that accumulate less than 12,000 miles annually and are not subject to excessive wear and tear. Five classes of vehicles, totaling 474 vehicles, are candidates for this evaluation process. The report presents in-house cost per month for the five classes of vehicles that should be compared to commercial service providers in order to evaluate the option available to the fleet. IF Apex Transportation Consulting Group Page 44 i Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 4 E., Fleet rationalization is also an important aspect of optimizing replacement planning and utilization of scarce resources. We support the fleet management's focus on moving away from single-function vehicles and equipment to those with greater utility for the cost of the equipment. We recommend the vehicle justification process to enable users to justify their needs and to facilitate fleet management's verification of the requirements of the new vehicles in areas such 2WD versus 0 4WD. N. Subsequent to the determination of the replacement cycle, this report analyzes the total fleet I/ funded by the general fund and determines the replacement year by vehicle class. The sum total of all replacements are plotted on a 10-year time-line to determine the cash flow requirements for fiscal year 2003 to 2011. Within that time span certain classes of vehicles are scheduled for replacement twice as their life cycle is 5-8 years. Based on the analysis of the replacement funding necessary for the next 10 years, the fiscal impact is as follows. Without a lease purchase financing mechanism, the City would have to appropriate$58.7 million for the period 2003-2011. The average annual funding would be $6.5 million. The 2003-2005 appropriation would be a fiscally prohibitive $16.2 million. Therefore, a cash option is not recommended. Salt Lake City has adopted the lease purchase financing path to fund the acquisition of the replacement fleet. The primary factor that motivated the City to adopt this strategy was a significant backlog of police vehicles and other vehicles in 1998. The advantages and disadvantages of the lease purchase method are examined in this report. Our overall assessment of the lease purchase financing option for governmental bodies such as Salt Lake City is that it is the right strategy if other fleet controls are in place and effective. This would imply that utilization analysis to I uncover underutilized fleet is performed. The identified fleet is removed or consolidated into the motor pool to reduce overall replacement needs, and that the fleet is rationalized reduce replacement costs. As this report indicates there are opportunities to identify underutilized fleet and evaluate rental versus purchase options. This report has identified the tools that should be utilized by the fleet manager to monitor the fleet and optimize utilisation. Successful implementation of fleet controls combined with a leveraged financing plan is the ideal combination. The replacement requirements and cash flow planning is detailed for the next 10 years utilizing lease purchase financing for fiscal years 2003 through 2008. Based on an assessment of the effectiveness of internal controls to optimize fleet levels, lease purchase financing may be continued for 2009-2011. To facilitate an adjustment period to review this report's recommendations and in ,, view of the current economic environment being experienced by a number of local jurisdictions the I following is recommended. Replacement planning for a few vehicle classes has been phased in over two-three years rather than fiscal year 2003 as they are eligible based on the replacement guidelines. Police patrol fleet replacement is not recommended to be deferred. The result of such an adjustment is that the fiscal year 2003 general fund appropriation would remain at 2002 levels. The combined fiscal year 2002 appropriation of$3.9 million plus $0.5 million in auction proceeds which are currently targeted to meet 2002 lease payments of$3.2 million, should allow funds to be available to the City to address unanticipated replacement requirements. Based on the analysis of the replacement funding necessary for the next 10 years, the fiscal impact is as follows. Utilizing lease financing (for 2003-2008), the City would have to appropriate $64.2 million for the period 2003-2011. The average annual funding would be $7.1 million, which is consistent with the five-year business plan developed by the Salt Lake City fleet management. As ill Apex Transportation Consulting Group Page 45 $ air 111 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS )I°4 the data above suggest lease purchase financing would cost the City$600,000 more each year from 2003-2011 when compared to cash procurement but facilitate an achievable replacement funding. COST PER MILE (CPM) MAINTENANCE DATA 11/ The cost per mile data was summarized after reviewing the maintenance records for 2000 and 2001. Cost per mile was calculated and vehicles were sorted by similar claws and model year to capture a trend in the CPM for various model years. Maintenance cost is a reflection of total direct 0 and indirect costs. Appendix 2 (bound in a separate volume) details the raw results of the analysis. Exhibit N summarizes the data by class and model year. Given that this data forms the basis for the review of the economic life cycle,which in turn determines replacement strategy, the integrity of this data is critical. This exhibit provides an excellent tool to perform comparative analysis to help user agencies understand their time and material charges and gauge their costs with that of other users. During the annual budgeting process this exhibit can be a relatively quick tool to assist in the budgeting to fleet charges. The user agency is presented with their fleet makeup such as count by model year and average mileage. The user can then determine annual charges applying CPM on the fleet data provided. EXHIBIT N COST PER MILE TREND ANALYSIS I Acquisition Average Cost Mileage 2001 2000 1999 1998 1997 1996 1995 1994 1993 Average Patrol Sedan $19,800 14,632 0.11 0.13 0.18 0.19 0.25 0.39 0.33 0.23 illAdmin.Sedan $14,400 14,943 0.11 0.13 0.18 0.19 0.25 0.39 0.33 0.23 1 Ton Utility $23,000 6,269 0.29 0.37 0.38 0.39 0.39 0.43 0.49 0.39 Pickup 1/2 Ton $17,181 14,015 0.13 0.13 0.25 0.3 0.3 0.29 0.36 0.32 0.26 Pickup 1/4 Ton $16,650 6,656 0.12 0.14 0.15 0.18 0.2 0.21 0.24 0.25 0.35 0.20 International 2674 6x4 $81,900 12,375 0.6 0.68 0.91 0.98 1.19 0 87 Pickup 3/4 Ton $21,735 9,787 0.4 0.18 0.36 0.36 0.36 0.36 0.32 0.39 0.34 SUV $21,600 10,041 0.21 0.21 0.23 0.24 0.24 0.25 0.26 0.3 0.24 Volvo WXR64 $137,200 20,521 1.97 2.67 3.62 2.75 OBSERVATIONS In order to demonstrate the application of the Economic Life Cycle Analysis the Cost Per Mile(CPM)for various model years is necessary. The data above reflects the CPM of the Salt Lake City fleet to the extent available. Certain years that were missing data have been projected based on trend data for the preceding or following years. Appendix 2 details the raw data from which the above results were summarized. Ir Apex Transportation Consulting Group Page 46 1 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS li.is E C ill0 1. The fleet manager implements a formal process to document CPM itM maintenance data and a procedure to review variances. II M 2. After a suitable time frame of implementing the formal E documentation and correction process, the data should be compared N to industry standards and shared with user groups to increase their budgeting abilities and awareness of changing cost patterns. D A 3. The CPM data is an excellent concise tool to communicate to City II T Council members on the subject of timely replacement and the costs I of avoiding backlog. 0 N S 1111/ ECONOMIC LIFE ANALYSIS Findings Equipment and vehicle replacement is one of the most complex aspects of managing a fleet. Simply stated, an equipment or vehicle unit should be replaced when it costs more to keep it than to replace it. The concept is simple, but determining the economic life point requires analysis and accurate data. The correct replacement life cycle can be evaluated through conducting an economic life cost analysis. Such an analysis objectively determines the ideal time to replace a particular unit. To implement such an economic analysis one must have the acquisition cost and the maintenance cost data for each year of life of the vehicle. The basic premise of economic life analysis is that at some point in the equipment or vehicle unit's life, the maintenance will begin to rise so rapidly that the total cost (ownership plus maintenance and repair) will bottom out and begin to rise. It is at this bottoming out point on the 111 total cost curve that the unit has reached the end of its economic life. Ownership cost is the annual capital cost to own the vehicle. For example, as shown in Exhibit 0 a Police Patrol vehicle that cost $19,800 and is driven 14,632 miles in the first year has an ownership cost of$1.46 per mile in year one. In the second year the cumulative mileage driven is IF29,263 miles so the ownership cost decreases to $0.81 per mile. The total cost is a combination of ` Apex Transportation Consulting Group Page 47 I 4 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYS IS annual maintenance cost and ownership cost. As the years of use progress the total cost continues to move lower until the sixth year of the vehicle's life. The total cost on the sixth year has risen. Under the economic life analysis concept, the vehicle should be replaced at the end of the fifth year and therefore a five-year replacement guideline is recommended. Each of the exhibits 0 through U applies factors unique to the class of vehicle under review to determine a replacement guideline. As the economic life analysis indicates Police Patrol and Police Administrative vehicles are recommended for a five year replacement plan. Administrative General, SUV, I Ton Utility, and 1/4, 1/2, and 3/4 Ton Pickup are recommended for an eight year replacement plan and the International 2674 6x4 and Volvo WXR64 are recommended for a nine year replacement plan. Apex Transportation Consulting Group Page 48 ISalt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 10 EXHIBIT 0 ECONOMIC LIFE ANALYSIS Patrol Sedans YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST s � 1 $19,800 14,632 0.11 1.35 1.46 2 29,264 0.13 0.68 0.81 3 43,896 0.18 0.45 0.63 4 58,528 0.19 0.34 0.53 5 73,160 0.25 0.27 0.52 6 87,792 0.39 0.23 0.62 Public Safety Patrol 1.s I 1.4 1.2- I _m 1 - III a) a 0.8 - a 5 c 0.6 - 0.4 - I0.2 - . • 1 2 3 4 5 Years of Ownership -•-MAINTENANCE COST-l-OWNERSHIP COST-t-TOTAL COST IOBSERVATIONS: I The examination of economic life data(maintenance cost+ownership cost=total cost)represented above support the current replacement interval of 5 years. The total cost of the vehicle continues to decrease upto 5 years and begins to rise thereafter. This observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. i i ill 111 Apex Transportation Consulting Group Page 49 0 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 1? . EXHIBIT P ECONOMIC LIFE ANALYSIS Administrative Sedans 1111 YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST 1 $14,400 14,943 0.11 0.96 ' 1.07 2 29,886 0.13 0.48 0.61 3 44,829 0.18 0.32 0.50 4 59,772 0.19 0.24 0.43 5 74,715 0.25 0.19 0.44 ill6 89,658 0.39 0.16 0.55 Administrative Sedan • 1.2 0 1 111 o.e d f d a 0.6- ill _ro 0 O o.a- I 0.2 - • o 1 2 3 4 5 6 Years of Ownership —f—MAINTENANCE COST—•—OWNERSHIP COST--Ai—TOTAL COST OBSERVATIONS: The examination of economic life data(maintenance cost+ownership cost=total cost)represented above supports the current replacement interval of 5 years.The total cost of the vehicle continues to decrease up to 5 years and begins to rise thereafter. This observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. lir Apex Transportation Consulting Group Page 50 1 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS fa EXHIBIT Q ECONOMIC LIFE ANALYSIS • SUV YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST ,1, 1 $21,600 10,041 0.21 2.15 2.36 2 20,082 0.21 1.08 1.29 3 30,123 0.23 0.72 0.95 ii, 4 40,164 0.24 0.54 0.78 5 50,205 0.24 0.43 0.67 6 60,246 0.25 0.36 0.61 7 70,287 0.26 0.31 0.57 8 80,328 0.3 0.27 0.57 I SIN 2.5 I 2- I I d 1.5- 0° 2 a Fa 1 0.5-i 0 i 4 i i . 1 : ' 1 2 3 4 5 6 7 6 Years of Ownership -0-MAINTENANCE COST---OWNERSHIP COST-*-TOTAL COST OBSERVATIONS NI The examination of economic life data(maintenance cost+ownership cost=total cost)represented above suggests that a replacement cycle of 8 years is reasonable. This observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. As the graph indicates the total cost of ownership I bottoms out in 8 years. I/ ill Apex Transportation Consulting Group Page 51 1 0 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS )1 EXHIBIT R ECONOMIC LIFE ANALYSIS Pickup 3/4 Ton i YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST c 1 $21,600 9,787 0.4 2.21 2.61 111 2 19,574 0.18 1.10 1.28 3 29,361 0.36 0.74 1.10 4 39,148 0.36 0.55 0.91 5 48,935 0.36 0.44 0.80 6 58,722 0.36 0.37 0.73 7 68,509 0.32 0.32 0.64 8 78,296 0.39 0.28 0.67 iPickup 3/4 Ton 3 2.5 I 2 m Oil E w a 1.5 E A rz 0.5 0 t i 1 2 3 4 5 6 7 Years of Ownership I-.-MAINTENANCE COST-a--OWNERSHIP COST-A-TOTAL COST OBSERVATIONS The examination of economic life data(maintenance cost+ownership cost=total cost) represented above supports the current replacement interval of 8 years. The total cost of the vehicle continues to decrease up to 7.5 to 8 years and begins to level out thereafter. This observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. to IF 11 Apex Transportation Consulting Group Page 52 I Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS EXHIBIT S ECONOMIC LIFE ANALYSIS II 1/4 Ton Pickup 0 YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST t w 1 $21,600 6, 0.12 3.25 3.37 2 656 13,312 0.14 1.62 1.76 3 19,968 0.15 1.08 1.23 4 26,624 0.18 0.81 0.99 5 33,280 0.2 0.65 0.85 6 39,936 0.21 0.54 0.75 7 46,592 0.24 0.46 0.70 8 53,248 0.25 0.41 0.66 9 59,904 0.35 0.36 0.71 1/4 TON PICKUP a 3.5- 3- 6 ai 2.5- E m I/ a 2- m e 0 1.5- II 1 - ♦ ♦ ♦ A II 0.5 - ■-- ■ ■ E ■ ■ • ■ ■- 0 I- I1 1 i 1 2 3 4 5 6 7 8 9 Years of Ownership -0-MAINTENANCE COST --•-OWNERSHIP COST—*—TOTAL COST OBSERVATIONS The examination of economic life data(maintenance cost+ ownership cost=total cost)represented above supports I the current replacement interval of 8 years. The total cost of the vehicle continues to decrease u pto 8 years. This observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. 1' Apex Transportation Consulting Group Page 53 I ISalt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS III EXHIBIT T ECONOMIC LIFE ANALYSIS Administrative Vehicles YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST Nk 1 $14,400 8,582 0.11 1.68 1.79 2 17,164 0.13 0.84 0.97 3 25,746 0.18 0.56 0.74 4 34,328 0.19 0.42 0.61 5 42,910 0.25 0.34 0.59 6 51,492 0.27 0.28 0.55 7 60,074 0.29 0.24 0.53 8 68,656 0.31 0.21 0.52 9 77,238 0.33 0.i 9 0.52 10 85,820 0.35 0.17 0.52 II Administrative Vehicle 2 1.8 1.6- 1.4- ill 1.2- 5 `m a. 1 C a 2 0.8- 0.6- 0.4- II A 0.2- ��■ o 1 I II 1 2 3 4 5 6 7 8 9 10 • Years of Ownership -0--MAINTENANCE COST -Jr-OWNERSHIP COST --i-TOTAL COST 1 i OBSERVATIONS The examination of economic life data(maintenance cost+ownership cost=total cost)represented above supports the current replacement interval of 8-10 years. The total cost of the vehicle continues to decrease up to 8 years. This I observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. I ill Apex Transportation Consulting Group Page 54 1 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 1 )I) EXHIBIT U ECONOMIC LIFE ANALYSIS International 2674 6x4 YEAR ORIGINAL ANNUAL MAINTENANCE OWNERSHIP TOTAL COST MILEAGE COST COST COST - 1 $81,900 12,375 0.6 6.62 7.22 2 24,750 0.68 3.31 3.99 3 37,125 0.91 2.21 3.12 4 49,500 0.98 1.65 2.63 5 61,875 1.19 1.32 2.51 6 74,250 1.29 1.10 2.39 7 86,625 1.39 0.95 2.34 8 99,000 1.49 0.83 2.32 9 111,375 1.59 0.74 2.33 10 123,750 1.69 0.66 2.35 I International 2674 6x4 8 7- - 110 5 ct - E 4 R o G 3 ♦ ♦ ♦ ♦ ♦ 2 _ ■ ■ ■ ■ IV • • • i 0 1 1 1 1 1 1 V 1 1 2 3 4 5 6 7 8 9 10 Years of Ownership I--f—MAINTENANCE COST —•—OWNERSHIP COST —A—TOTAL COST 1OBSERVATIONS IThe examination of economic life data(maintenance cost+ownership cost= total cost)represented above supports the current replacement interval of 9 years. The total cost of the vehicle continues to decrease up to 8- I 9 years and begins to level out thereafter. This observation takes into account the utilization of 2001 vehicle prices and accommodates for the variance in cost per mile by model year. II Apex Transportation Consulting Group Page 55 IIP Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 10 E C O S ., M 1. Fleet Management should annually update the economic life analysis E for all light and heavy fleet that have CPM data. N 2. Economic life analysis review should be integrated into the budget D request process and utilized as a tool to educate budget decision- ', A makers on the fiscal impact of replacement versus deferment on total .r maintenance costs. - I 0 N S illo SUMMARY OF REPLACEMENT GUIDELINES The results of the economic life cycle were compared to industry replacement standards for similar equipment to ensure that the results were within acceptable parameters. For the majority of the heavy fleet replacement guidelines are based on a review of industry practices, jurisdictions nationwide and results of a survey of jurisdictions surrounding Salt Lake City. We recommend guidelines resulting from the outcome of the survey of surrounding jurisdictions because they reflect the environmental factors pertinent to Salt Lake City and therefore are more realistic and useful, and are within acceptable parameters of national standards. With respect to the heavy equipment, life cycle guidelines are a framework that the fleet if manager works within. Excessive maintenance occurrences and the life of the vehicle will determine if an adjustment to the recommended life cycle is necessary. An overriding caveat to the findings in Exhibit V is that the fleet manager should review each change in the life cycle on a case-by-case basis. The findings above should not be implemented in a manner that endangers the fleet users or the City's citizens. I ii.' IP Apex Transportation Consulting Group Page 56 I Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS ID Exhibit V Recommended Replacement Guidelines Asset Type Recommended Replacement Asset Type Recommended Replacement Years Mileage Years Mileage Patrol Sedan 5 70,000-80,000 Loader/backhoe 9 n/a Police Admin. 5 70,000-80,000 Excavator t '8 n/a Admin.Sedan 8 50,000-70,000 Grader 9 n/a SUV 8 80,000-90,000 Refuse truck 8 n/a 1 Ton Utility 8 45,000-60,000 Refuse truck side loader 6 n/a Pickup 1/4 Ton 8 55,000-70,000 Refuse truck rear loader 8 n/a Pickup 1/2 Ton 8 100,000-120,000 Refuse truck commercial 7 n/a 1 Pickup 3/4 Ton 8 75,000-85,000 Fire pumpers 16 n/a International 2674 6x4 9 100,000-120,000 Fire ladder truck 17 n/a IVolvo WXR64 9 180,000-200,000 Fire rescue 16 n/a Heavy truck single axle 10 n/a Ambulance 5.5 n/a Heavy truck tandem axle 11 n/a Other off-road 11 n/a Sweeper mechanical 8 n/a Other small powered 9.7 n/a Sweeper vacuums 8 n/a Other small non-powered 10 n/a Loader 9 n/a OBSERVATIONS Replacement guidelines for the light class with mileage parameters have been tested utilizing the economic life cycle analysis. Replacement guidelines for heavy class vehicles with age parameters only are based on a review of industry standards,jurisdictions nationwide and results of a survey of jurisdictions surrounding Salt Lake City. We recommend guidelines resulting from the outcome of the survey of surrounding jurisdictions due because the survey results are very close to national standards and they reflect the environmental factors of Salt Lake City and therefore are more realistic and useful. I 11 I I I IF Apex Transportation Consulting Group Page 57 1 iii Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 11) R E C 0 M M 1. The fleet manager should review the recommended life cycle for E applicability and thereafter share the data with user agencies and N budget decision-makers. D A T I - 0 N S I lbEVALUATION OF RENTING VERSUS PURCHASE OF FLEET REQUIREMENTS Parallel to the assessment of replacement requirements and criteria, the City fleet I management should evaluate purchase versus renting as an alternative solution. Renting of vehicles will alleviate capital requirements and will provide the City with the flexibility to meet current fleet requirements while implementing various recommendations of this report such as the Vehicle Justification Form and the establishment of a motor pool. Ideal candidates for such an evaluation are vehicles that accumulate less than 12,000 miles annually and are not subject to excessive wear and tear. Findings Five classes of vehicles, totaling 474 vehicles, are candidates for this evaluation process. ii I illo Apex Transportation Consulting Group Page 58 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 10 EXHIBIT W LIFE TIME COST AND EVALUATING RENTAL VERSUS PURCHASE OF FLEET Vehicle Replacement Maintenance Average Recommended Life Time Total Life Type Cost(Net) cost Miles Life Cycle Miles Cycle Cost Patrol Sedan $19,800 $0.23 14,650 5 73,250 $36,648 Police Admin $14,400 $0.23 14,950 5 t 74,750 $31,593 Admin.Sedan $14,400 $0.23 6,340 8 50,720 $26,066 SUV $21,600 $0.24 9,980 8 79,840 $40,762 i1 Ton Utility $23,000 $0.39 5,450 8 43,600 $40,004 Pick-Up 1/4 Ton $16,650 $0.20 6,660 8 53,280 $27,306 Pick-Up 1/2 Ton $17,181 $0.26 14,015 8 112,120 $46,332 Pick-Up 3/4 Ton $21,735 $0.34 9,790 8 78,320 $48,364 Internationals 2674 6x4 $81,900 $0.87 12,375 9 111,375 $178,796 Volvo WXR64 $137,200 $2.75 20,520 9 184,680 $645,070 dr Vehicle classes that are below 12,000 miles are ideal candidates for rental substitution. Cost Per Month Admin.Sedan $14,400 $0.23 6,340 8 50,720 $26,066 $272 I SUV $21,600 $0.24 9,980 8 79,840 $40,762 $425 1 Ton Utility $23,000 $0.39 5,450 8 43,600 $40,004 $417 Pick-Up 1/4 Ton $16,650 $0.20 6,660 8 53,280 $27,306 $284 1/ Pick-Up 3/4 Ton $21,735 $0.34 9,790 8 78,320 $48,364 $504 I OBSERVATIONS The cost per month is the in-house cost to the Salt Lake City fleet management. A decision to rent versus own should be evaluated on I the basis of the cost comprision between solicited rental cost and in-house costs per month. The above analysis assumes that a decision to reduce owned fleet with rental fleet will be accompanied with a reduction in mechanic staffing and a proportionate reduction in overhead charges from Admin and data processing. If the reduction are not achieved the cost i to the remaining owned fleet will increase as overhead will be shared by a smaller base of owned vehicles. I The above analysis demonstrates on the significance of the maintenance rate and therefore requires careful review in computation and recordation. I IF y Apex Transportation Consulting Group Page 59 I $ Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS 16 As Exhibit W indicates the five classes of vehicles,Administrative Sedan, SUV, 1 Ton Utility, and 1/4 and 3/4 Ton Pickup Trucks have annual mileage utilization of less than 12,000. II Based on the acquisition cost (less salvage value) and the maintenance rate applied to the lifetime projected miles, the total life cycle cost is calculated. Further, the cost is divided by the projected life span to arrive at a monthly cost. The next step is to evaluate the competitiveness of the monthly cost with the rental. It should be noted that the rental option is not necessarily cheaper in the long run as the I rental business must also recoup the replacement and maintenance cost like the City fleet. However, the rental option gives the City a breather to identify real needs versus needs that enhance convenience. Incorporation of rental vehicles into the fleet will provide an on-going competitive I comparison and provide user agencies with a choice. Failure of the City fleet to respond to the user and be competitive will automatically reduce the fleet size and allow private service providers to make in roads. I R E C 1 O M i. Salt Lake City fleet management should evaluate about competitive IDM rental cost for the five classes detailed. E 2. De artm p ents that are eligible, based on utilization, to participate in N the rental option should be motivated to participate by allowing them D to invest the cost differential (maintenance cost savings) in their A program operations. T I 111 O N S 4 FLEET RATIONALIZATION Fleet rationalization is also an important aspect to optimizing replacement planning and utilization of scarce resources. We support the fleet management's focus on moving away from single-function vehicles and equipment to those with greater utility for the cost of the equipment. We recommend the vehicle justification process to enable users to justify their needs and to facilitate ij fleet management's verification of the requirements of the new vehicles in areas such 2WD versus 4WD. 4111° IApex Transportation Consulting Group Page 60 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS Currently,general fund fleet specifications are prepared by the fleet operation staff while special fund agencies have their own staff to prepare their vehicle specifications. We suggest that Salt Lake City review the feasibility of consolidating the two teams to perform the activities as one entity. The benefits of such integration will be an increase in the skills of the staff and a rationalization of the options that are added to vehicles. 1 t R I E C O M M 1. Salt Lake City should review the staffing complement for vehicle E procurement functions citywide and begin the process of consolidating areas that overlap such as specification drafting, solicitation of bids, N warranty tracking and fleet liaisons that may be staffed in various I D Departments. A I O I REPLACEMENT FUNDING REQUIREMENTS Based on the analysis of the economic life cycle and the development of replacement guidelines the next step is to determine the annual replacement needs. Appendix III details the application of the replacement guidelines to the general fund fleet and provides the funding requirements by class of vehicle and fiscal year. Exhibit X provides a 2002-2011 assessment of replacement requirements. There is no lease purchase financing option assumed in this exhibit. The lease purchase option is reviewed later in this report. The funding levels determined as a result of data analysis in Appendix 3 (bound separately) are fiscally burdensome in 2003 through 2005. Without a lease purchase financing mechanism, the City would have to appropriate $60.8 million for the period 2003-2011. The average annual funding would be $6.75 million. The 2003-2005 appropriation would be a fiscally prohibitive $17.1 million. Therefore, a cash option is not recommended. We recognize the fact that a number of heavy pieces of equipment that met the replacement criteria for 2003 funding may have utilization value beyond 2003 and need not be replaced. Therefore we recommend a deferment of replacement due in 2003 to be phased-in over 2003-2006. 111— Apex Transportation Consulting Group Page 61 I Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS Similar extensions to replacements were made for the fire fleet and a few light fleet vehicles. Police patrol or police administrative vehicles were not deferred. • As Exhibit X indicates that subsequent to such adjustments (noted on the ten year plan as phase-ins) the all cash method of financing requires Salt Lake City to appropriate an additional$17.1 million for the period 2003 through 2005. Exhibit Y plots the increased appropriation required over and above the current $3.9 million to fund this plan. 1110 I I I I I I I Apex Transportation Consulting Group Page 62 I IIIIII -.- IMO IMO ill ON SIP - V 11111111 MIMI IIIIIII ill MIMI INS UN ire 11111111 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS EXHIBIT X • . . . _....._....._______________ CASH FLOW ANALYSIS WITHOUT LEASE PURCHASE 7 . .i . . . FY02 FY03 FY04 FY05 ! fi06 : FY07 . FY08 ' FY09 FY10 i FY11 i CASH INFLOW . . r i . .. . ..._. . ... . ,._ Current GF Appropriation 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,7949,537 3,949,537 3,949,537 3,949,5371 " • . • -"- - '""."*." - • "" " -. •CASH OUTFLOW I ••. . • - • • . ..._ Capital Replacement Requirements ... .. . 1 Acquisition for emergencies 1,228,020 P trO1Seclan s • • 4,246,000 1,232,0001 1,584,000 1,144,00-07 ---- 74,-246,600 1,232,000 1,584,000 1,144,0001 . 1. _ Patrol Sedans-Phase-in • • -1,000,000 1,000,000 PtbliC Safety-Acnin 96,000 128,000 48,000 893,000. _ 96,000. 128,000 - 4-8,000- 893,000-1 • • •••• .. Administrative I ! .. .. I Ton Utility 459,900 25,550 204,400 204,400 459,900'.1 :i Ton Utility-phase-in 1 255,500 255,5001 .. . _ 'SUV 1 744,000 48,0001 2,640,000 768,000 312,000 360,000 24,000 744,000i SUV-phase-in -24.0,000 ...240,000 .... . ... . .. 1 . . . . . 1/4 Ton Pickup vehicles 11 i,obb i i,fi o 74,000 185,000 111,0001 . . 1/2 Ton Pickup vehicles 95,500 38,200 1 133,700 38,200 ..... 95,500 3/4 Ton Pickup vehicles 1 603,750 169,050 48,300 241,500 603,7501 4 3/4 Ton Pickup vehicles-Phase-in -217735-6 iiF,5-66----•--- -- --- In tern a tion a 1 2674 1,183,000: 91,000 1,001,000 364,000 91,000 • •• • • • Fire 2,871,000 2,190,000 0 O. 1,350,000 270,000 782,500 625,000 625,000; Fire-Phase-in -2,871,000 1,000,000 1,000,000 871,000: Other Heavy Equipment . 6,204,489 1,038,490 1,610,527 1,530,373 1,458,740 1,371,052 2,137,328 903,201 1,296,573! Other Heavy Equipment-Phase-in ... I -4,000,000 1,000,000 1,000,000 2,000,000 0 .. . ........ .... . ..... ... ...... .... ......., I Inflation A djus tmen t 274,673 262,261 287,776 305,230 122,938 286,255 183,198 117,775 216,362 • 1..... ...._ ..... ... . .. . ... . .......... ...... .. ........ ............_........... _ i Total Required Replacement 1,228,020 8,122,462 7,837,351 8,170,303 8,720,153 3,516,678 7,188,407 4,240,426 3,368,976 6,1 89,0851 ........... _______________......._ - I.. .. .. ...... .. . .. .... Proceeds from Auctions (500,000) (517,500) (535,613) (554,359) (573,762) (593,843) (614,628)j 1(636,140) (658,405) (681,4-49)1 Current Lease Obligations . 3,221,517 2,311,659 2,311,658 1,821,687 325,961: ... ............ .... ... ... . 1... . General Fund Appropriation Required 3,9.4....... 9,916,621 9,613,396 9,437,631 8,472,352. 2,922,835. 6,573,780 5,604,286 2,710,571 5,507,6361 _ .. .. . . . . ..... .... _______._ . ........ .......___ .. _.. ,• .; Net Increased GF Appropriation • • Of 5,47,0.84 .5,663,8591 5,488,044 4,522,815 -1,026,702 2,624,243 1,654,749 -1,238,966 1,558,0991 : . Apex Transportation Consulting Group Page 63 r1111111011111111111 — — — 1 I S V - - OS V w all —O r Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS Notes: Cash Inflow represents the general fund appropriation received by Salt Lake City fleet management. Cash outflow represents the projected replacement requirements for the relevant fiscal year. Sale proceeds from auctions is projected to grow from FY01 levels with inflation. Current lease obligations represent the commitments on leases negotiated prior to 2002. Increase in General Fund appropriation required represents the sum total of all replacement and lease payments. Net Increased general fund appropriation required represents the difference between original general appropriation and the increased appropriation after accounting for replacement requirements and lease payments. OBSERVATIONS There are no planned capital acquisitions for FY02.In order to implement a FY03-FY11 replacement plan and focus on an overall strategy we have identified$1.23 million has a set aside in FY02 to address emergency acquisitions.Such capital acquisition Exhibit X does not reflect a lease purchase strategy.As is evident the FY03 requirements are at$9.92 million.This level of funding is not practical in the period of an economic slowdown. In order to moderate the cash flow requirements for 2003 a few classes of replacements have been deferred beyond 2003 and phased-in over 2004-2006.An example is a 1 Ton Utility that requires$459,900 in 2003 replacement based on the recommended life cyc Page 64 Apex Transportation Consulting Group SIN OVUM INS 1111111 SE MI INS OM II INS Ian 1111111 1111118 SIMI NM MI el IIIII Lake City Fleet Operations Assessment and Optimization Plan VL VEHI(.:L,.,EREP1ACFMENT AALALYSIS, EM-,^ EX HI I yr Y CASH FLOW ANALYSIS WITHOUT LEASE PURCHASE FY02 FY03 FY04 FY05 FY06 FY07 FY00 FY09 FY10 FY11 Increased GF Appropriation 0 5,967,084 5,663,859 5,488,094 4,522,815 (1,026,702) 2,624,243 1,654,749 (1,238,966) 1,558,099 - -- --------- ---- — __ - — - --- increased OF Appropriation 6,500,000 5'500'000 TYi-Pl:',di4V1q 44,•I &•4-..l'iAai 'li 4,t,-4,14-r,,A.4,„4,70.....v..,3o,-,444,4,4:,..-ti 4,,,..1:,4,m1,1k„,1g-,,,,,;.,'"....,'4„rl',,',''„,,,,-',1,„,1,,,,,,44:,4„W.1.114.„,,1,,,0,,,,4..1 4.1.1,?,ir,,.,4,,,1:7,,,,&,-...-: ,,‘,,,,'..4t,t,'"..1•i 0-.,.-,:41,7-.3..mt-4,o pe•r,,gtqwyratrsatn'tl-pA,s,v,itsr,t,,wt,trw,ze-10,4tc t4t,444,..,'.tr',f1ti.4r.--Ts,d,ip,,•mk,t,-n,.1.p,1.,,,,,,,,;t:.-,rv,',,,,.',.,*-,,,,,,-,t,,t,,,t7,l.Vt,..,0",,,,,7,,,,*P,.7,A,I,r,g,,,:4,.,..',.„..4,F,.41,4.1..0',,,..,r.A,, ,74 .— 4,:):*4.11i,,,011',, A.:E'Ad ,,•3.174 01;: •,,,,,,ram-A 41:: rt.0":,cmtmat'i..... 46-t,',41,,r444, 5474.,',-•-"',-.''no,,,,,,z74.' ' --,:".1wffoitvir4A4,-WiW,,..4-41/4,,,"'WFr7;f'N'''',..: -":?7,-,f1,7.1.,',,7,,17`71748 co 4,500,000 ..:;,-:;31.0:4,,,,,, ,,irkgrsti 1 ::=:.,, al,;.y., '11.,1014,511 S:,'r"t Elg,,Viqj tyY.,..,4P4,,N4qp 41. 4V4:01714.7:0YrMA.N;:41i.e,'Z'-:.,,'4,:t F':',".4i.',f;=: 0•4,q!NA.,14.4'.,T,'Z'A v. „ . ,7,1t.•rf:'"i5a•:.:'' :1.4:tiagiiw-: , i,Y.t•ar.,t ' Lip•40,;a4.1 sta,-:z'„.t,..,;,•,; •4•:titt'.1.,Rq•KgtA.,IN.kil,•174.4riv„,;:.ete7.24,141,1a, ,,I.:,:4,i.. .,,,,,,,,,:,,,i,, 1 <, ••'•••,r,•;.••::,,..,,,, • 3 500,000 ,-,:::,-;:,,,,,, -- -,i,--i46..' r,vtIMI",4A '1' ,.?15iitoi ,qi :71 k3.7.14,4314 troi-AA:f•,4r••''.• ,fAIWZ„itialvfOklyrifetyP:: w4:fif, :or',.• .,s,-,-•••• ••, •• 2 , ,,,-,--2„,00,' .°'"1e.".F 9-'1' v,,...=:1" l'y,Nei- tr,d,p,op,,,,f...,,,T-,.,L,f4i•::'..,,,,,I.,,{`,,,tl,hi.14,1,,,,14. ,,,,,,, 1,:A.4111i '' O'*''. s'.i.lritr.k,:'i.t'',:.Pitt'ZiiitieiVl•.i':',W'.t*iVtt,.*. a 2,500,til/L114,??..ilottyra .....,...:14f A gfildA Thfrsoltalvig*z, 11i&i. ,,, ;21.•ii;41:. ,42Nigkelk:i ?'''40W '''',;:tSP44.7.iil'I.i.',44 F3112*1 ErTiTik117110:1'17ntli''t'r5.; 51177,7t1',P.:;f41,''1777071P,717,1:7',7 Ft77:11 IL co 1.500,000 ,.. . 7,' '"..4,1 IFS17',5i'3', c 1110„,kilirp,a,ijinf,fr-455014 fe,,,110Z- 4314ATITY,„' ',4,444g,761.'.00);.'ikitddegiiii;:f,...44.:011 ,1,4 1 0 ,, !‘k-s-ArAlki r'312;a4,11 ',g= `i .4 47-"TA Vr44'` ItT"i''' I' F.Ir;24144 :titivr P.4iliz4".A'Aiktii r'VW.E,7.72iZ=2'7'.."'-'7,74'.'n tt'm 1 = 500 uuu '''''''''41' '•' 'Mall VM253231 ''il'"g411N7'7'''''. 4-''iri•-194111. v7,711,r4.'7:fillt'Z'itt'2`::'‘..'..1.1.":4.,iiiick.c,nZli''3:,;',4P,Sit.tra..47.:12inl;ZII 1 I _500,,,,,, .7,k,.ht4'„, 1 ,.. : an,,., .11W-:4421!';! liRil,,Ciliztlfi;]1-4-i...= ,,, 'il„Awikit,:;.,,,A,,,,,,„ „,,Ii4„,,„.,,e,,;'oe,,t•-i-17,,--f7:r :."07-Pgr• '41 tkkAis.ftiL,•:t.. Ip':::41ii uuu ,,ArvorAvsok,,,,,t-c.:0) pyci0,14, ,,IL ,4 .,„...:‘‘ ', .,•'`' ....1..", 4'.......,..,=:.:. ...L -1,500 000 , FISCAL YEAR k [E1 FY02 fa FY03 0 FY04 El FY05 El FY06 D FY07 FM FY08 El FY09 M Fri 0 ff-1 FY11 --------- ---- -- --- - --- - OBSERVATIONS Absence of lease purchase requires a substantial appropriation increase in FY03. The cash flow requirements represented above is a net increase to the current$3.95 million. _ Page 65 Apex Transportation Consulting Group _ ISalt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS ill R I E C I1. An all cash method of financing the fleet replacement is financially M prohibitive and is not fiscally plausible. The City should continue to M lease purchase if for no other reason; it is the only financing option IE that is viable. N 2. The data presented above should be shared among user agencies to ID send a clear message that significant fiscal challenges lie ahead and A that business practices must change. Overall fleet requirements must I be carefully scrutinized passing the test of adequate utilization must meet acquisition versus renting tests and must be standardized to minimize cost and increase utility. 0 I N S I ill LEASE PURCHASE FINANCING Findings ISalt Lake City enjoys a favorable financing rate, a rate that in fiscal year 2001 was below the rate earned by the City overnight fund balance. Lease purchasing has addressed the escalating I maintenance costs and reduced spare police vehicles. The fleet overall is closer to the expected average age,although not at par for some classes of vehicles. I As exhibit Z indicates that lease purchase financing does provide significant relief in capital requirements through 2006 as compared to the all cash option. Based on the analysis of the replacement funding necessary for the next 10 years, the following fiscal impact is summarized. I Utilizing lease financing(for 2003-2008), the City would have to appropriate $64.2 million for the period 2003-2011. The average annual funding would be $7.1 million. Without a lease purchase financing mechanism, the City would have to appropriate $60.8 million for the period 2003-2011. I The average annual funding would be $6.75 million. However, the 2003-2005 appropriation would be a fiscally prohibitive $17.1 million versus the lease purchase option that would require an appropriation of$3.7 for a similar period 2003-2005. The lease financing option is $3.4 million (for I the period 2003-2008) more expensive and therefore comes at a price. Exhibit AA plots the increased appropriation required over and above the current$3.9 million to fund this plan. 10 lir Apex Transportation Consulting Group Page 66 I .. 11111116111111 MIS _ .. NIP SNIP IF OM 1111111 Ile IIIIIII IIIII IIIIII MI ell. Mil Sa t Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS EXHIBIT Z CASH FLOW ANALYSIS WITH LEASE PURCHASE FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 CASH INFLOW Current GF Appropriation 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 3,949,537 Recommended Lease Financing CASH OUTFLOW Capital Replacement Requirements Acquisition for emergencies 1,228,020 Public Safety-Patrol 4,246,000 1,232,000 1,584,000 1,144,000 4,246,000 1,232,000 1,584,000 1,144,000 Public Safety-Patrol-Phase-in -1,000,000 1,000,000 Public Safety-Admin 96,000 128,000 48,000 893,000 96,000 128,000 48,000 893,000 Administrative I Ton Utility 459,900 25,550 204,400 204,400 459,900 I Ton Utility-phase-in -255,500 255,500 SUV 744,000 48,000 2,640,000 768,000 312,000 360,000 24,000 744,000 SUV-phase-in -240,000 240,000 1/4 Ton Pick-up vehicles 111,000 18,500 74,000 185,000 111,000 1/2 Ton Pick-up vehicles 95,500 38,200 133,700 38,200 95,500 3/4 Ton Pick-up vehicles 603,750 169,050 48,300 241,500 603,750 3/4 Ton Pick-up vehicles-Phase-in -217,350 217,350 International 2674 1,183,000 91,000 1,001,000 364,000 91,000 Fire 2,871,000 2,190,000 0 0 1,350,000 270,000 782,500 625,000 625,000 Fire-Phase-in -2,871,000 1,000,000 1,000,000 871,000 Other Heavy Equipment 6,204,489 1,038,490 1,610,527 1,530,373 1,458,740 1,371,052 A 2,137,328 903,201 1,296,573 Other Heavy Equipment-Phase-in -4,000,000 1,000,000 1,000,000 2,000,000 0 Inflation Adjustment 274,673 262,261 287,776 305,230 122,938 286,255 183,198 117,775 216,362 Apex Transportation Consulting Group Page 67 - -ter NIB MIS NIB ell al NM IF Gil MI - - - S w e w S Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Total Required Replacement 1,228,020 8,122,462 7,837,351 8,170,303 8,720,153 3,516,678 7,188,407 6,240,426 3,368,976 6,189,085 Current Lease Obligations 3,221,517 2,311,659 2,311,658 1,821,687 325,961 Lease Financing Payment 2003 1,795,056 1,795,056 1,795,056 1,795,056 1,795,056 Lease Financing Payment 2004 1,753,344 1,753,344 1,753,344 1,753,344 1,753,344 Lease Financing Payment 2005 1,827,828 1,827,828 1,827,828 1,827,828 1,827,828 Lease Financing Payment 2006 1,950,840 1,950,840 1,950,840 1,950,840 1,950,840 Lease Financing Payment 2007 786,732 786,732 786,732 786,732 786,732 Lease Financing Payment 2008 1,608,168 1,608,168 1,608,168 1,608,168 Proceeds from Auctions (500,000) (517,500) (535,613) (554,359) (573,762) (593,843) (614,628) (636,140) (658,405) (681,449) General Fund Appropriation Required 3,949,537 3,589,215 5,324,446 6,643,556 7,079,267 7,519,957 7,312,284 11,777,854 7,056,311 7,902,536 Net Increased GF Appropriation 0 (360,322) 1,374,909 2,694,019 3,129,730 3,570,420 3,362,747 7,828,317 3,106,774 3,952,999 Notes: Cash Inflow represents the general fund appropriation received by Salt Lake City fleet management. Cash outflow represents the projected replacement requirements for the relevant fiscal year. Sale proceeds from auctions is projected to grow from FY01 levels with inflation. Current lease obligations represent the commitments on leases negotiated prior to 2002. Increase in General Fund appropriation required represents the sum total of all replacement and lease payments. Net Increased general fund appropriation required represents the difference between original general appropriation and the increased appropriation after accounting for replacement requirements and lease payments. OBSERVATIONS There are no planned capital acquisitions for FY02. In order to implement a FY03-FY11 replacement plan and focus on an overall strategy we have identified$1.23 million as a set aside in FY02 to address emergency acquisitions. Such capital acquisitions may be necessary as a result of unanticipated vehicle repairs resulting in a replacement rather than a repair or the replacement of a vehicle due to an accident. In order to moderate the cash flow requirements for 2003 a few classes of replacements have been deferred beyond 2003 and phased-in over 2004-2006. An example is a 1 Ton Utility that requires$459,900 in 2003 replacement based on the recommended life cycle. It is recommended that$255,000 be deferred to 2004. Similar deferments are recommended for SUV, 3/4 Ton Pickups,Fire and Heavy classes of vehicles. As the chart above reflects FY03 is also planned to generate a surplus from existing appropriations and sale of vehicles. The result is the further availability of time to the fleet management to review underutilized vehicles and the establishment of a motor pool. The chart above plans for a five year lease acquisition for FY03-FY08. The interest rate applied is 4 percent for FY03 and 4.5 percent thereafter. Beyond FY08 the fleet management may continue with lease purchase if internal controls are working,underutilized fleet is tracked and addressed,a motor pool is functional and there exists a motivation among program managers to review fleet requirements and make sound judgments for fleet expansion. Apex Transportation Consulting Group Page 68 - OVUM INN ONO a.. - ONO ! I — III all — .. — ..40 — t Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS EXHIBIT.AA CASH FLOW ANALYSIS ITH LEASE PURCHASE FY02 FY03 FY04 F'Y05 F'Y06 FY07 FY08 FY09 FY10 FY13 Increased GF Appropriation 0 (360,322) 1,374,909 2,694,019 3,129,730 3,570,420 3,362,747 7,828,317 3,106,774 3,952,999 iricre d - Appropriation - 1 8,500,000 �7� 7,500,000 x.k v�x t Iv �, s..1. ^ON 2'''Y�-,-1;1; fi',u:' Y,.-,,I11s,•`4,,H. $ i t'' . ,,,,, H q 0'(.,s A . ,.v .i kv';x �'f i ,,, 'i �9'.,t'r4,.' ',,„„.,.,,;,lv ^,,p,?`s.. "e,,:4, 4.,€?mt,,,,,.,, x., x,,.,w,,r: .. V'a yL'M1 ., rdf; ,r ,. � -,-,„„}o ih ,,,1-4. x x,• .,s! },'„ .;».,v✓i 6•4h.'� ,�"�..1,,,J�"' .:gtv4t, F , " r.,,1r -,a as, \ v J, 'i=..1H`� 2cti¢ 6, ;�a�1 a.t r. .4' !Wv' }, -.�'�� F �€i��S,c�An •v(,� A mn ' 5 6, k Y ✓ �.r fir* �c^.� �� � � �s•'*f;�^�� . ,£ .. p��l' �` "�4„TA ..' v'�$f�rh d�`.�..�,6afa•�`X�.. � "f �✓�� � 'i�{�jA�.�i� } k" :T,:T�1��'«x'4���j's�:,w �:'a�.��..:,.�� 6,500,000 > .... t�/µayµ:�a '' k x f � � / ' �r ,r> $ :;5 ' � "��0...". ... .$'✓ sue..:,�'� .„!'�°L d �\:a\.x.R �'. �e �L a,...�: ���k�:; �.1.-v1:_ `' rCU'4 #:t$i"�-a �z kvi�•...�#� 4 S i;:,✓� �t 7F':[` €�'� n I wise l,',Fi a.w..C r.L ram .., v\�i 7�4 t6 �4a :.°,. c:' * A..s, ,�:t�✓;fia'r�3it5" ,6` 4�'6'9 /°- ryv`I-I� .,+�:�,* ��\`4'"{iG,.:.nx �ry yv"xa �`w �� lw•^ - -a 5,500,000 ,.M a ,, n._v�$ l��d�-�fiSa u�.2w�a�rtw�'�, Y�a ��e�7ir'.:N.�.�Gi.S., i?i�.4.� tY6 a✓ J ;''�`s -i ^�51 � �: x wf"y x x 3i��� r a��rY,�b �s.Sy�,E'"� ,'.�` .c r ^s�a+, 3' ,.. 7-kr- :4,/'..,,.,?4.1, -: " .. ? .'�Y° ,l ._,x&..a .:vrk4 •,k�` � l E�` .,.4 ^� ,T.' 9 � `ri'�f�" R1J wlY t'h e M r„+ •rr� - x'tW� ���.Z` b �; ® '1� �tt� .'� kr ds?9S"1 1«i.. , i,F, "'�.: ti t`..; I! f,, .r ,t4Y�, 1,, '. 16''. tti.4: r ,' ''''::" 4,500,000 .a�x.� � �'�fvEu�u'ea��X�hem-�t.�r. v is'�a la.Lk6 �:7.y,�,a.7'�4���<`a���m 1 Nv s I� � �k,�i�Z i�� cta��a,�4:4�7 ke�.9 �j \�4'.1 l v 7� ? 4 E f911 s ^7�rl .t °'�..S�' r +�1:c1. : C 'P y. !j:',;"? 70 , Go,' Ar ^* { . «\ i,l / yM Zj ;;Z a r .1 a .,,. t ,z t 't,f �S.,r r`tt3 '' zr a ;v�' 3 500 000 ��• � ��k� f,,, y ,��.�r 4 ��t,�}'��#ayayr f' ����h �., t' n 3�� /�'`^�' � :� � � ,' �r.,'' i��yt " ,\Ova fi �' F _�� �, v .1, n r� ., Asa s». r� ✓ r t.,r - 3, , R A;;4YKk".r�Y! is ct ! ,•r �a3� a. i ��T Csa,,,���d��'i�1� 77'+SIT�i�� �}.'f r 7r J u7,°a°�.'T"�l"\4��tt' Y v /�,.,�,�..w,.c, ,nr i":..L�aJ'. a^c,*v1kv, `a»�,Ka.,:��, if I S S.� "i U9 �' '. X �";+,,r, i y4- ?,;ra, , b c r y r -',y yt,. v r s"4�..s "- ';,'''''';'-'I "i 2,500,000 ;, Via- -5, ,s 4."i '� ,,,r; z ' ;s. �J' ':._.. , 0 1, , s _ior j � "h'_*�;,Q44:,; c; a4_,, ,. ,; 'e,': ,•i,.r: R` '. r c .,,{V ( �, �.'4,„s �'� @ : la. �` ,�rl 1,500,000 � .La'G.�s {w1�vY„'4i. Ma 4feJ'`y. R�^ 4�.�i, �C'a...f ((p(!�;' �ii :.;. Yn4Sy ' trd Xs,��� ,� .,�,•G ,,:v ,h ��#"., ,Tnr� f,G:,R fa � _t�,,' ;�,t ,^�, � i z P 1`Aat� sa s� G •�� \ .�. �..�,.,4 5 7 00,000 k p . �ti t 1 A 7 1 b ' i £x l�.E 14+ , tan , �E! �.. �� 11 �.� "'� 's �'■�"�'.'aa�.��tV;:. �n� "„"s'�-, ei r k�a yr � ��w �F„� �`t ,� � ��; ,�"��r l' ,000 ''''' 4k.' Y''Ic'e°; w'I'''.: '''''"' . -' ?,f 4,.� k 7 1 . ..a' 'M .a al.,' sil:3 ' 4,1;N 4.�t v FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FISCAL YEAR lIi FY02 FY03 LI FY04 J FY05 RI FY06 El FY07 El FY08 o FY09 Eg FY10 € FY111 OBSERVATIONS F Lease purchase facilitates a gradual increase in general fund appropriation requirements. The cash flow requirements represented above is a net increase to the current$3,95 million. Apex Transportation Consulting Group Page 69. 111 Salt Lake City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS The advantages of lease purchase financing are: ' •• Fleet replacement guidelines can be adhered to and the fleet can function in a competitive manner Maintenance cost trends are stabilized and are comparable to the industry when equipment is adhering to the industry life cycle • Maintenance cost is optimized as the economic life cycle models are followed and the vehicle is utilized to its fullest capabilities • With respect to public safety vehicles,morale is higher among personnel and'the Citizens of the City may have the perception of feeling safer with a modernized and visible fleet • As a practical approach Salt Lake City is meeting its fleet requirements and accomplishing other goals through the application of leverage. The disadvantages of lease purchase financing are: • Lease purchase financing over time does not increase the number of vehicles that are replaced • Lease purchase financing may not provide a motivation to program managers to reduce the fleet size. Funding vehicle replacements is not their responsibility and they have nothing to gain programmatically from recommending options that may ' increase their inconvenience, but may significantly save resources for the City • Lease purchase financing diffuses the crisis nature of a cash option replacement funding strategy and does not create an environment that may result in detailed scrutiny of fleet allotment and a justification review. It is our experience that budget decision-makers are reluctant to put the doomsday theories of consequences and impact on the Citizen to a detailed review resulting in fleet reduction or redirection 1111 efforts. Lease purchase financing provides a path to avoid the critical review of consequences. Our experience has been that a replacement funding process that is independent of the program manager's budget requires an administratively strong and influential fleet operation management. The fleet operation should be able to ensure that an optimum level of fleet capacity is being maintained. An alternative to central lease purchase financing would be to channel the appropriation through the user agencies. The user agency would have the responsibility of resource allocation similar to their personnel and operating funds. The fleet management operation would charge the Department a replacement fee similar to the charges for services. The program manager should become an integral part of fleet planning and replacement. Funds saved from fleet reductions should be available to the program manger for two fiscal years for one-time program enhancements. Our experience has been that incentives have a unique way of bringing alternative solutions to the forefront. 11111 I I I Apex Transportation Consulting Group Page 70 I Salt Lake City Fleet Operations 1111/ E 1. The City should pursue the path of lease purchase financing for the next few fiscal C years. This funding mechanism will ensure that the fleet improvements in place such as a lower complement of mechanics and maintenance cost is not lost. 0 2. As lease purchase financing does not increase the total number of vehicles replaced M and cost the City$5.5 million more for a six-year lease strategy,this option must be M applied to a lean and productive fleet. We recommend that a strategy to motivate program managers be reviewed with an incentive option be added that can be targeted E to one time program enhancements and thereby not built into the base of the budget. N M D A i T I 0 N S I I I I I 1 Apex Transportation Consulting Group Page 71 I ii Salt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS )1 VI FLEET MAINTENANCE OPERATIONS OVERALL ASSESSMENT • The maintenance shop is responsible for repair and maintenance of all vehicles and 11 equipment owned and operated by the City. The customers for the most part get the required service to maintain the fleet in accordance with industry standards. Eme.tgency response is good and most customers feel that the staff is technically qualified to maintain the fleet. At the same time 11 there are significant opportunities to improve operations and improve service. 0 Our overall conclusion is that shop operation is meeting the basic operational needs, but could be restructured to offer better service to using agencies. The acting fleet manager and shop service managers are in agreement that reorganization is in order to further meet the operational 0 needs of the agencies. Improving preventive maintenance service and operator awareness in use and care of equipment could reduce the cost of operation. Implementing a second shift will improve the service to the customers. In addition,mechanics could spend more time on technical work for which they are best qualified as opposed to spending a significant portion of their time in administrative and mundane activities. Some of the current positions can be exchanged for the support staff needed to allow technical and supervisory staff to direct their energies to managing duties. 11111 We strongly feel the role of senior mechanics needs to be redefined. The organizational structures would be revised to reflect the current needs. Personnel should be advised, trained and held accountable for their activities. Inevitably, this will streamline the supervision process, establish controls and reduce the overall cost of operation. Additional details are included in the Organizational Structure and Staffing chapter. Preventive Maintenance and Shop Operations An effective preventive maintenance process provides for a systematic, periodic servicing of equipment to minimize unscheduled repairs and downtime. Planning and scheduling preventive maintenance (PM) activity requires providing the right maintenance at right time at the lowest overall cost. The basic objectives of an effective preventive maintenance program are: • Prevents unexpected failures • Maximizes availability • Furnishes safe equipment to the users • Reduces downtime and repair costs • Extends useful life of the equipment • Increases reliability. r It is important to recognize that planning and scheduling preventive maintenance activities I'I requires providing correct maintenance at the appropriate time at a reasonable cost. Periodic attention to routine service, particularly for heavy and specialized units of equipment, can prevent lir Apex Transportation Consulting Group Page 72 II: ISalt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS I 10 excessive wear and irregular maintenance of major components that will result in breakdowns and necessitate costly repairs. The cost savings that will result from a well-defined preventive maintenance program will be primarily from prevention of breakdowns. In performing preventive maintenance it is necessary to i replace parts,which is a significant expense. However this additional expense is offset by a reduction in additional costs associated with delayed scheduled work. The decrease in work interruptions and delays will result in better use of personnel resources thereby reducing the overall cost of the Ioperation. PM Program—Expense or Savings A PM program could range from a limited lube and filter change to a full implementation of I manufacturer's recommendations with scheduled parts replacements whether needed or not. A limited PM program of oil and filter change is ineffective and a scheduled parts replacement program could be very expensive. In these times of constrained resources, one should avoid I performing more maintenance than what is necessary and called for. The goal should be to seek a level of maintenance that is in between the oil change and a tear down parts replacement schedule. I Preventive maintenance should be established at a level at which the additional investment in the program will not be effective in cost reduction. When the additional cost of more preventive maintenance exceeds the cost of additional repairs for preventing the breakdown, that is the 11110 optimum level of maintenance we are striving for an effective operation. Affordable Preventive Maintenance IThe approach described above appears to be simple. However,it is not always operationally feasible to determine how much preventive maintenance one needs to offset higher levels of non- I scheduled repairs. The task becomes easier if the data is available detailing how many hours of maintenance work and/or corrective versus preventive work is performed in the shop. In order to develop an affordable PM program it is critical to collect good PM cost data. The key elements in this process are to specify tasks that are part of the PM,who will do the task, the cost associated with these tasks, and control and monitoring. The important considerations in development of an affordable PM program are discussed below. Evaluate equipment manufacturer's recommended servicing and repair schedules for each type of equipment. These schedules should be evaluated in terms of amount of maintenance and time. Comparisons can be made of actual work orders that include a number of preventive maintenance inspection items. The ultimate result of this evaluation should be a clear comprehension of the total cost of the manufacturer's recommended program. The success of a PM program will be dependent upon the cooperation of the operators, mechanics and supervisory personnel in charge of administering the program. It is critical that appropriate discipline and the integrity of the program be maintained. 111 Another aspect of developing an affordable PM program is to include techniques such as oil analysis and testing. An oil analysis for each unit of equipment at each oil change may be Apex Transportation Consulting Group Page 73 Salt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS unreasonably expensive. However, selected intervals for select units of equipment, particularly heavy equipment, may be desirable and will assist in selecting appropriate interval for PM inspections. Findings if • The shop is responsible for repair and maintenance of approximately 1,750 units of rolling stock maintained from one central shop. In addition there are about 400 plus units of miscellaneous and stationary equipment. Minor maintenance is also performed at several satellite locations by the operating agencies. 0 • First echelon maintenance for the light equipment fleet is contracted out to two local vendors. The operators are responsible for taking the vehicles to the dealership for repairs. The schedule for PM for light equipment is every 4,000 miles. The program I is working well and the agencies are satisfied with the program. The annual PM for light equipment is performed in the shop. • All the PM for the heavy equipment is done in the shop. Several agencies have expressed their concern about the turn around time in completing repairs. • Currently PM is performed on heavy equipment when due and as and when the operator can bring the vehicle in to the shop. An effective and proven practice is to perform the PM during the off-season for a unit of heavy equipment. For example, for all snowplow and related winter equipment the major PMs would be performed 11 in July through October. Similarly the major PM for lawn movers and tractor should be conducted in January and February. • Most of the PM for the heavy equipment fleet is done in the shop with the exception of Fire Department Fleet. The shop has dedicated two mechanics and the PMs and substantial maintenance is performed at the customer's site. Providing mobile maintenance is well liked by the client and is working well. • Vehicle and equipment are scheduled for PM of various levels without checking to insure that the parts required to perform the PM are in stock. A more effective practice is to have the parts baskets ready a day before the PM is scheduled. This will significantly improve downtime,improve availability and cut down trips for the parts runner. • The preventive maintenance compliance rate (bringing the vehicle in to the chop when it is time for PM) by the agencies is inconsistent and should be improved. ii Strict adherence to bringing the vehicles to the shop when due also will be beneficial to the shop personnel in workload planning. • It appears that the routine daily maintenance performed by the operators is ii inadequate and inconsistent. The shop personnel feel that some operators are sensitive to the need for performing lubrication while others are extremely poor. I' The shop is of the opinion that the operators and their supervisors do not Apex Transportation Consulting Group Page 74 I t Salt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS iounderstand the importance of such preventive maintenance. The lack of maintenance on part of the operators is not due to ill intent but primarily due to lack of training and enforcement by the management staff. • • The shop contracts out a sizeable amount of workload to outside vendors. iii Examples of the contracted work are major engine, alignment, and bodywork, PM for light vehicle fleet,glasswork,exhaust repairs, etc. ,, 111 • Currently there is no oil analysis done to insure that the PM is performed at appropriate intervals. Selected use of oil analysis particularly for heavy equipment 0 will be useful in establishing correct PM intervals. • The mechanics are qualified to perform basic welding using the welding shop. illHowever, the welding shop area is in total disarray, dirty and uncared for. 1. The major PM for certain classes of specialized equipment should be performed during off-season months. The fleet management should be responsible for preparing, disseminating and enforcing effective PM policies and procedures. Management can prepare a three to six month PM schedule in advance and send it to all departments. io R 2. A memo or executive policy should be issued to all departments E outlining the critical need preventive maintenance, and asking for C their support in compliance, and supporting the fleet personnel in 0 meeting PM requirements. IM 3. Fleet management should conduct periodic oil analysis to determine M appropriate levels of preventive maintenance for vehicles and heavy E equipment. II N D 4. Implement the use of preventive maintenance stickers to remind A operators of the next level of maintenance. T 5. To improve the turn around time for PM and major repairs it is I essential that the shop be prepared to work on the unit prior to i 0 N bringing the vehicle in the shop. The shop should obtain the necessary parts required for a basic PM prior to scheduling equipment in the shop. This will reduce downtime on equipment. :1 S PM parts kits can be made for specific units of equipment and given Ito the mechanic. 6. Designate the senior mechanic to be in charge of the basic shop operation including the welding shop operation. The welding shop needs a thorough cleaning, shelving to get the material off the floor 1110 and proper accountability of tools and equipment in the shop. Apex Transportation Consulting Group Page 75 ISalt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS 16 PRE-AND POST-TRIP INSPECTIONS Mechanics see vehicles only when they are in the shop for repairs. The operators see the vehicles on an almost daily basis. For many operators the vehicle is their office. Consequently, the reporting of defects in a vehicle by the operator is important for controlling fleet costs. The Federal I Motor Carrier Safety regulations require the driver conduct and document a pre- and post-trip inspection on heavy equipment. t w Findings • There is a procedure for pre- and post-trip inspection for operators. The actual use and implementation is questionable. Operators should be responsible for pre and post use inspections to detect any malfunctions in equipment. We found that some I elements of pre-trip inspection may in place, but in general the operators do not consistently follow the regulations governing this requirement. • Operators are not specific enough in problem identification resulting in delays in diagnosis and repairs. 1111 • We found an unusual amount of rust on vehicles and equipment. We understand that a substantial portion of rust can be attributed to the local environmental conditions and the old age of the heavy equipment fleet. However, there are opportunities to reduce this delinquent rust situation by improved specifications and III operators routine care and maintenance. One of the simple solutions to prevent rust is to wash the equipment after a snowstorm and a through wash and clean up after the season. Although the operators claim to wash and clean the equipment, the actual implementation of this IIprocess is questionable. • The lack of enforcement of pre- and post-trip inspection is not due avoidance of law 111 but is mainly due to lack of training and enforcement by the supervisors. t li .� Apex Transportation Consulting Group Page 76 Salt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS R 1. The City should develop and use a pre-trip inspection checklist form that documents the items to be inspected. Maintenance department E should review the forms for equipment malfunctions and schedule C vehicles for repairs. 2. Clean,wash equipment frequently. The operating agencies should M have a campaign to clean,wash, and lubricate the fleet after the snow M season. Generally, March or April is a good time for the fleet to be E cleaned up for the next season. N 3. Operators can assist the shop by properly identifying the repairs needed and by adhering to the PM schedule and daily up keep of the A equipment. We recommend an Operator /Mechanic partnership alliance be formed to bridge the gap. A series of supervisor I facilitated meeting should be held to discuss the issues of common O interest. The operator-training program should include pre- and post-trip inspections. N S 4. The vehicles and equipment specifications should be revised to include rust prevention and rust inhibitors for the fleet. 110 WORK SCHEDULING, PRODUCTIVITY AND PRIORITIZATION The work scheduling process ensures reasonable productivity and efficiency from mechanics. Productivity is the percentage of a mechanic's total paid time spent doing productive work. Efficiency is defined as amount of productive work produced in a given time. Findings • The shop offers all the basic services to the customers. In addition to servicing vehicles and equipment, the range of services includes welding and fabrication,repairs to any type of mechanical equipment, and assistance in snow removal and other emergency situations. • The shop hours are 6:00 a.m. to 4:30 p.m. Monday through Friday. Some of the mechanics work 10 hours a day four days a week. In prior years the shop had a three-shift operation that was reduced to a two-shift operation. About 4 years ago the shop cancelled the two- shift operation and has been functioning on one shift 5 days a week. Several agencies have expressed the need for a multiple shift operation to reduce down time and improve fleet availability. 1111 Apex Transportation Consulting Group Page 77 IIISalt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS • Mechanics spend an extensive amount of time on non-technical work. The mechanics frequently involve themselves in parts pick up, and shuttling vehicles to vendors, radio shop, and to dealers for warranty work. -� • Some of the mechanics work a flexible schedule of 10 hours a day. Vacation and/or 1 sickness by the scheduled mechanics further impact the available work force on these days. In the event the recommendation relating thesecone shift operation is implemented, flex hours will be not be necessary. 1 R 1. Evaluate the feasibilityof implementing second m p g a eco d shift operation for E the shop both for light and heavy equipment shop. The personnel C requirements and organization for such a change are reflected in 0 Organizational Structure and Staffing chapter of this report. I M 2. With the implementation of an effective PM program and notification M of departments well in advance, the departments should be E encouraged to bring vehicles to the shop. Assistance by departments I N in bringing vehicles on schedule to the shop will enhance mechanic D productive time. The potential of providing a loaner fleet pool of to vehicles at the maintenance center could reduce the vehicle shuttle A time for the mechanics. Keeping older vehicles for another year and T recycling the same on periodic intervals can enable the establishment I0 of the loaner fleet. 3. Every effort should be made to use the technical personnel for N technical work and not for ancillary duties. S ACCIDENT MANAGEMENT Accident management is an avoidable expense for any fleet operation. It is imperative that an effective fleet management program focuses on driver awareness and accident avoidance. A continuing education program for drivers is essential to the overall fleet cost reduction due to accident damage. Findings a • The current procedure requires employees to fill in the accident report and send it to Risk Management for processing. Procedures require an appraiser to estimate the IDdamage and then the job is sent one of the several body shops under contract. IApex Transportation Consulting Group Page 78 ISalt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS 111 • The shop has adequate space for a body shop and a fully approved paint booth to spray paint the vehicles and equipment. The body shop positions have been Ieliminated and the future plans include contracting all body and paint work. • • Almost all clients feel that the procedure takes too long and could be shortened and improved. N. • The funds collected from third parties, such as insurance payments, are deposited in the General Fund and do not come back to fleet fund. • We understand from the acting fleet manager that the Airport fleet management is interested in providing the body shop repairs to the City. This interagency coordination should be encouraged to take advantage of spare capacity of any City or Iquasi City agency. I R I E 1. Approve and implement the draft accident reduction and safety C program consisting of safety awareness and monitoring of fleet safety ill O performance. M 2. Evaluate the current procedure for body shop repairs for light and M heavy equipment. Develop a simplified procedure to reduce the E N 3. downtime on accident-damaged vehicles. Evaluate the procedure relating to the disposition of accident funds ID collected from third parties. A .r 4. Pursue a cooperative relationship with Airport fleet management for I body shop work. 0 I N S I MECHANICS DUTIES AND SUPERVISION Mechanic supervision is necessary to ensure that mechanics are working productively, safely and efficiently. Furthermore,it assists in implementing and enforcing uniform policies and procedures in the shop. Position descriptions describe an organization's expectations regarding the 110 capabilities and responsibilities associated with a particular position. Apex Transportation Consulting Group Page 79 I I Salt Lake City Fleet Operations Assessment and Optimization Plan VI FLEET MAINTENANCE OPERATIONS Findings • The shop mechanics work independently. The mechanics perform a variety of duties including writing work order tickets, ordering parts, filing, and working with customers. The mechanics are experienced, knowledgeable and willing to perform associated duties. Furthermore, the mechanics possess diverse skills and are proficient in welding and rebuilding activities. s N. • The senior technicians perform the same duties as the regular mechanics. This is a significant cause of concern among the mechanics in the shop. A clear delineation of 0 senior mechanics duties will be helpful in improving morale in the shop. • The managers and supervisors are performing in administrative duties involving extensive clerical and non-managerial functions,leaving little time to attend to shop issues and other pressing fleet related issues. - li • Position descriptions for the Mechanic series are outdated and do not reflect the latest regulations regarding Commercial Drivers license and air conditioning certification. ID R E C 1. The senior mechanic positions should be reevaluated and properly 0 utilized. We have made specific recommendations in the Organizational Structure and Staffing chapter to utilize the positions M as lead person for each shift and for each of the light and heavy M equipment shops. The lead mechanic positions' duties and E responsibilities should be re-examined. The position should have N the authority and responsibility to carry out the day-to-day functions D of the shop. If necessary the position descriptions for these positions should be revised to accommodate the current needs of the shop. A T 2. Update the mechanic Position Description Specifications to reflect I the latest Federal requirements. 0 N S 1111 Apex Transportation Consulting Group Page 80 Salt Lake City Fleet Operations 11. Assessment and Optimization Plan VII PARTS MANAGEMENT VII PARTS MANAGEMENT )111 OVERALL ASSESSMENT 1 All fleet shops must have some parts on hand to reduce vehicle downtime. That is the only reason for stocking parts. Inventory can be a sizeable investment—first of all the parts themselves, then storage costs, pilferage cost and the cost of obsolescence if the part-isn't used. Parts need to be available for use when they are needed for service or repair. The cost of carrying the item must be 11 balanced against certainty of its use. How many items to stock and when to reorder requires forecasting what the future needs I I are likely to be and having the item ready. It also means reducing inventory by getting rid of obsolete items and overstocked parts. A good computerized system particularly helps to identify these inventory white elephants. _ 11 The ideal purchasing process requires that parts be of quality make, delivered in a reasonable time and at reasonable cost. These factors directly affect the fleet maintenance performance, service I effectiveness, vehicle availability and reliability, and fleet operating costs. I Our overall assessment of the parts management function is that inventory is excessive while not stocking the correct mix of parts. We suspect an excess inventory that may be attributed to seasonal parts or obsolete parts. There are positive changes in progress like a bar coding system that will offer better information that will assist in timely decision making. do Findings 0 • The shopparts inventoryconsists of 3,263 line items valued at 493 220. $ , • Inventory averaged 1.5 turns per year. In other words, the "average" part stayed in I. inventory 8 months before being issued. • Over the past year, 1,409 items in inventory valued at$146,895 had no issues. I ill • The total number of individual parts issued was 95,465. Parts issued from inventory totaled 65,126 or 68.2 percent. Parts not in inventory,which had to be acquired, totaled 30,339 or 31.8 percent. This means that 31.8 percent of the time a mechanic had to wait for the parts department to acquire the part. 111 • The value of parts issued against work orders, including surcharge, totaled J $1,859,419; $1,077,211 or 57.9 percent was issued from inventory and $782,208 or I 42.1 percent was purchased for direct issue. Assuming a 30 percent surcharge, the purchase price of these issued parts was $1,430,322. The high dollar value associated 1 with the non-inventory parts is because most of the parts may pertain to heavy I• equipment. to Apex Transportation Consulting Group Page 81 I Salt Lake City Fleet Operations Assessment and Optimization Plan VII PARTS MANAGEMENT • A parts runner is used to pick up and return parts from vendors to the maintenance I shop. • The parts department has undertaken the bar coding of all the inventory parts. It is expected that the project will be completed in the next 60 days and is expected to improve efficiency. t w • We found evidence of inventory adjustment in prior years. All inventory shortages should be fully investigated and not automatically adjusted. • Currently, for the most part there is only one vendor designated to provide a certain part. Many organizations have a policy of having an alternative vendor for frequently used items. The procurement office establishes a primary and secondary vendor for each item.The parts personnel in the shop can procure from the secondary vendor if the primary vendor is unable to meet the need in a reasonable time. • We reviewed a few sample contracts and did not find any delivery date requirement included as part of vendor obligations. This could be the primary reason for no or delayed deliveries by the vendor. Lack of vendor commitment in delivering parts on timely basis results in shop using a parts runner and maintaining excess inventory. • • Many heavy equipment users feel that the parts vendor base needs to be expanded to promote competition and get better pricing. • The City takes advantage of cooperative purchasing with other public agencies,i.e. State of Utah. This is good practice that should be enhanced with other local agencies and encouraged. I I I Apex Transportation Consulting Group Page 82 I Salt Lake City Fleet Operations Assessment and Optimization Plan VII PARTS MANAGEMENT LI 1. Overall stockage effectiveness should be increased to a minimum of 85 percent from the current 68 percent. When a mechanic requires a part it should be in current inventory 85 percent of the time. 2. The value of active inventory should be reduced by 20%. • 3. Inventory should be purged of obsolete stocks This will free space for usable inventory. I I 4. Parts inventory should include active parts. Exceptions should be R made on a case-by-case basis for seasonal or critical need parts. E "Special level"parts should not exceed 10 percent of the active parts. C 5. Select preferred and alternate stock suppliers for inventory based on a 0 combination of the following: II M M a) Lowest delivered price—any quantity discounts must be E evaluated against carrying costs. a N b) Quality—Quality of products must meet or exceed industry I D standards or OEM specifications. A I c) Reliability—This should include, but not be limited to, delivery schedules, minimum back orders, information and assistance. With parts purchases over$1 million annually there should be no 0 need for a parts runner. li N S d) Customer service—This should include, but not be limited to: i. Competitive return policies, including regular return of I overstocked or obsolete products ii. Establishment of initial new product support items iii. Technical support, including reference publications and I ` service assistance iv. Expediting of critical orders. 1 6. Leverage the value of over$2 million in parts and service purchases to improve the level of services received from vendors. This would include vendor deliveries,vendor stocking of high usage and/or critical parts and assistance in forecasting parts usage. 1 IN 1 Apex Transportation Consulting Group Page 83 I . ii Salt Lake City Fleet Operations Assessment and Optimization Plan VII PARTS MANAGEMENT 7. Periodic spot checks are needed to check the integrity of the system. IF R Inventory of all shop tools and equipment should be conducted once 1 E a year. C 8. Obsolete inventory should be purged and returned to vendor for 0 credit. 1111 M M 9. City should consider establishing blanket purchase orders with select E vendors that it uses most often. A primary and secondary vendor 11 N concept should be in place for certain key and commonly used items. D 10. The concept of cooperative purchasing should be fully explored and II A adopted where feasible. Bulk purchase power often results in better .i. pricing and leverage in quality of service received. The City could be a host on some items and other neighboring jurisdictions can li I participate in the process. The items may range from filters, batteries, alternative fuel, etc. The concept works well for other IN goods and commodities used by the City, and savings generated Is makes it worth the effort. Joint parts contracts with Salt Lake County,Airport, etc., should be explored. II II II Ii 1 I I I i I i s 1_2 I' Apex Transportation Consulting Group Page 84 r 111 Salt Lake City Fleet Operations Assessment and Optimization Plan VIII FACILITIES AND EQUIPMENT VIII FACILITIES AND EQUIPMENT OVERALL ASSESSMENT I The essential ingredients of a productive maintenance facility include adequate facility space, appropriate shop tools and equipment, and a safe work environment to perform maintenance on a City owned vehicles and equipment. The maintenance facility should besoperAtionally efficient, Ienvironmentally safe and effectively utilized to minimize fleet costs. Our overall assessment is that City maintenance facilities, though old and located in a I congested yard, are large enough for the workload requirements. The shop is equipped with the necessary tools, lifts, and equipment. The plans for a new facility at an estimated cost of$18-23 millions are on hold. We find significant opportunities and alternative avenues to defer, eliminate or I reduce major facility capital expense. We have outlined several recommendations including conducting a feasibility study of the entire yard to come with the best and the highest possible use for this site. IThe facilities are neglected in that the proper maintenance and is lacking.upkeep lkin . Our g recommendations include revised procedures to address these issues. IFindings 0 • The shop facility is old and the City had plans to build a new facility at another location. The plans for the new facility are currently on hold and there are no plans for approval of a new facility in the near future. The facility, though old, has all the necessary ingredients of functional shop. An office area separates the light and heavy equipment shops. There is an adjoining parts area. In addition, there is an area for a body shop and paint booth. The shop is well equipped for its intended purpose and has a welding shop and an exhaust system. I • Given the current financial situation of the City and other competing demands it appears that there is no real urgency in spending funds for the new facility. The estimated cost of the new facility is approximately $20 million. i • In reviewing of the facility needs, we looked at the entire compound where the shop is located. The maintenance shops are in the same compound with Streets,Traffic g and other Public Service agencies. The Street Division has a large fleet that is parked overnight in the same compound. i i fk 1 Apex Transportation Consulting Group Page 85 ISalt Lake City Fleet Operations Assessment and Optimization Plan VIII FACILITIES AND EQUIPMENT ill • The existing shop though functionally well equipped, does require repairs, replacement or additions in the following areas: I - Floor repairs in the auto shop p I - Ventilation in the auto shop, a new ventilation system was installed in the heavy equipment shop Repair or renewal of the exhaust system I - Some new lifts for auto shop Loading dock or other avenues for unloading of parts for the warehouse operation I - Lunchrooms for auto shop are too small;better lunch facilities for both shops, can be conveniently combined - Lube and service area for the heavy equipment shop Additional space for the parts room operation. I • The management made a decision to delete all auto body positions and subcontract all auto bodywork. This action leaves the auto body shop available for other uses. The possible uses under consideration are a prep and get ready shop for new Iequipment,expansion of the auto shop, and expansion of heavy shop and/or use of the space by the Streets Division. • The security around the compound needs to be tightened. Most of the equipment is left unlocked at night. We were able to enter the yard in the early morning with no checks and entered into many units of equipment that were not locked the night Ibefore. • The space allocation for the motorcycle shop is adequate to meet the service I requirements of the City motorcycle fleet and other motorcycle fleets that are maintained by the City. I • The current parts room is congested with several bulky slow moving seasonal parts, such as plow blades, sweeper brooms, etc., occupying valuable shelf space. I • The parking facility is totally congested and inadequate to meet the needs of the light and heavy equipment shop. Vehicles are parked all over the place and at times one I has to wait to find a parking space in the yard. There are no designated areas for ready line and vehicles awaiting repairs. I • Shop housekeeping is below normal industry standards. Work bays are not cleaned daily or washed at least once a week on a consistent basis. We found excessive metal shavings on all the machines. The shop needs a major steam cleaning and I organization. The heavy equipment shop particularly needs special attention. A good clean shop with organized tools improves morale and creates self-esteem in the work II Apex Transportation Consulting Group Page 86 I ISalt Lake City Fleet Operations Assessment and Optimization Plan VIII FACILITIES AND EQUIPMENT force. The shop needs thorough cleaning and regularly scheduled cleaning to keep it clean. I • The City provides the basic hand tools for mechanics. The City has a tool allowance per year to purchase specialized tools from the tool truck. I • Shop equipment is serviced or lubricated on scheduled bats by mechanics. This is a good practice and should be continued. I • The shop currently works on a one-shift basis Monday through Friday. The shopis g Y fully capable of operating a second shift, third shift or a split shift if the workload I demand is there to justify it. In prior years the shop did operate on multiple shift basis. I • The shop has the necessary machines and tools to perform the maintenance functions for the fleet. The shop does not conduct a tool inventory. 1 1. The current shopthough far fromperfect has all the necessarytools g and equipment to perform repairs to the fleet. The shop size is IR adequate to meet the fleet needs. In the event our recommendation E to implement a second shift is adopted the space will suffice for C foreseeable future. The existing shop can be renovated at a 110 0 substantially lower cost in lieu of constructing a new facility. We do not believe that an expense of$18-23 million is necessary until all the M other avenues to solve the problem have been exhausted. I M E 2. Conduct a feasibility study of the entire compound to include all the N agencies of Public Services at this compound. Reallocating and D reorganizing the space needs of each agency will result in efficient layout for all agencies. A I T 3. For the interim period, evaluate the needs of the shop and conduct a mini study to develop space planning to meet the fleet division I needs. For example, determining what is best and the most I 0 effective possible use of the body shop. The auto or heavy shop can N best utilize the space vacated by the body shop and the cost of IS associated changes must be determined. I I 1111 Apex Transportation Consulting Group Page 87 I 11 Salt Lake City Fleet Operations Assessment and Optimization Plan VIII FACILITIES AND EQUIPMENT I? 4. In the event the City decides to contract out the maintenance to an outside vendor, the issue of a new building becomes moot. The contractor will be conveniently able to work from the existing building and probably run a multiple shift operation. 5. Relocate the bulky slow moving seasonal parts to other secure location to make room for active parts in the-parts►area. A small secure area could be fenced in the old body shop for such bulky R items. E 6. The lunchroom in the heavy shop could be used for the supervisor's C office and create one lunchroom for both shops with basic kitchen 0 equipment. M 7. Thoroughly clean the entire shop, steam clean the shop, and steam M clean all shop equipment and tools. The shop managers should E N 8. make a schedule to keep the shop clean, hygienic and organized. Each mechanic has a primary bay and should be held responsible D for daily cleaning and upkeep of the area. All mechanics should A participate in overall cleaning of the shop. T 1110 I 9. Designate a specific area outside the shop for equipment awaiting O repairs. Label such area as "Waiting Line". 1111 N 10. Designate specific area outside the shop for equipment that has S been repaired and completed. Label such area as "Ready Line". 11. Make a complete listing of all shop tools and equipment, i.e., compressor, tire changer, diagnostic tools, diagnostic machines, welding equipment, machine shop equipment, etc. The shop tool inventory should be updated once a year. 12. Instruct mechanics to clean each machine after use, i.e. drill press, brake lathe. Also, instruct mechanics to remove metal shavings from the machine after each use. Participation and commitment by all shop personnel is mandatory. I I' Apex Transportation Consulting Group Page 88 Salt Lake City Fleet Operations Assessment and Optimization Plan IX FUEL MANAGEMENT 110 IX FUEL MANAGEMENT OVERALL ASSESSMENT Fuel cost is a major recurring expense for fleet operations. A small reduction in fuel cost can make a significant reduction in the overall operations cost for the fleet. The objective is to provide a fuel system that will meet the customers' needs, provide management-information, ;, procure fuel at competitive prices,reduce environmental risks, and comply with environmental IFregulations. I Salt Lake City Fleet Management maintains and operates 15 fuel-dispensing sites within the City limits. In addition to these main fuel sites, Fleet Management is also responsible for fueling smaller tanks associated with 19 backup electrical generator stations, 12 culinary water backup I generators, and six culinary water and sewer pump stations. Fleet Management has a 3,500-gallon mobile fuel truck capable of delivering and dispensing diesel fuel and unleaded gasoline to fuel tanks,vehicles and equipment in emergency situations. All City fuel-dispensing sites are now I controlled by a system of networked microcomputers. The City purchases all diesel fuel and unleaded regular gasoline from the State of Utah Purchasing Contract System. Vehicle users appear to receive convenient and reliable service from the current City fueling system. The City is considering whether to change to the State fuel system or to keep the City's in- house system. illOur overall assessment is that the fuel management is working well and the City is taking advantage of joint procurement with the State fuel procurement agency. The City is proactive in terms of its commitment to alternative fuels. The use of Bio Diesel is about to be implemented. Findings 0 • Five fuel sites account for 82.2 percent, or 96,000 gallons, of the City's fuel capacity of 116,800 gallons. • The mobile fuel truck could service all the remaining ten fuel sites and 31 user locations. • Total vehicle mileage for 2001 was 9,342,461. This is a reduction of 14.3 percent i from 2000 mileage of 10,896,009 and a reduction of 28.6 percent from the 1999 mileage of 13,083,591. (Information from Maintenance & Miles Reports) • During the same period that mileage decreased 28.6 percent, the number of vehicles increased from 1,733 in 1999 to 2,145 in 2000, and to 2,162 in 2001. This is an increase of 24.8 percent since 1999. (Information from Maintenance & Miles IReports) lir Apex Transportation Consulting Group Page 89 i iSalt Lake City Fleet Operations Assessment and Optimization Plan IX FUEL MANAGEMENT • With the decrease in total fleet mileage and increase in the number of vehicles, the ID • average mileage per vehicle decreased from 7,550 in 1999, to 5,080 in 2000 and to 4,321 in 2001. This is a decrease of 42.8 percent. While vehicles use odometers to . record mileage, most pieces of equipment, such as mowers and trailers, do not I record mileage. The actual rolling stock, cars and trucks,will have a higher average mileage. (Information from Maintenance &Miles Reports) t w II • The total number of gallons of fuel used in 1999 was 1,035,961,in 2000 it dropped slightly to 1,035,004 and in 2001 it fell to 900,236. This was a reduction of 13.1 percent from 1999 total fuel consumed. (Information from Maintenance & Miles IReports) • Fuel consumption in 2001 averaged 416 gallons per vehicle, less than 35 gallons per Imonth. • Fuel "Account Billing"work orders reflected charges of$38,998 for maintenance of Ithe fueling system. • The State of Utah has offered to take over City's fuel system and manage them. This I will offer State additional sites for fueling State owned vehicles. The City does not want to relinquish control of fuel sites. bp • Since the City and the State both purchase fuel using the State contract and both have automated, but different, fuel management systems the cost differences should I be minor. The practical difference would be in the surcharges added both entities. I ALTERNATIVE FUELS The City has a keen interest in pursuing alternative fuel technology for its fleet of vehicles and equipment. In prior years the City has purchased and/or converted vehicles to alternative fuels with limited success. The City is concerned about the air quality in the valley and the nation's reliance on foreign oil. Major findings are as follows. t Findings • In fiscal year 2000 the city purchased approximately 1.1 million gallons of fuel for 1759 units of mobile equipment. The City has a goal of purchasing 30 percent of the 11 eligible fleet with alternative fueled vehicles. The estimated incremental cost of this purchase is estimated to be $1.4 million 3/4 • The City has in prior years experimented with Compressed Natural Gas dual fuel vehicles. The program had limited success due to teething troubles experienced by y the drivers, and mechanics. Lack of training, commitment, and dual fuel vehicles were some of major reasons for poor performance of alternative fuel vehicles. 111 Apex Transportation Consulting Group Page 90 Salt Lake City Fleet Operations 1114. Assessment and Optimization Plan IX FUEL MANAGEMENT )11 • The City had an alternative fuel (CNG) fueling station that has been out of service for a number of years. The City has no immediate plans to own a CNG fueling facility. There is a Sinclair gas station near the shop vicinity that can be used for fueling. There are other CNG stations around to City to fuel CNG vehicles. • The City is quite open-minded about the type of alternative fuel to be used for the fleet. The fuels under consideration are Compressed Natural gas,Liquefied Natural Gas, Bio Diesel, and Hybrid electric gasoline vehicles. 11 • The heavy equipment shop is in the process of implementing a study of Bio Diesel on select units of heavy equipment. Bio Diesel has high BTU content and like diesel El has high cetane and lubricity. The fuel has significant recorded road miles and is biodegradable. 11101 A common mix of 20 percent Soya or other vegetable oil and 80 percent number 2 diesel commonly known as B20 runs like diesel and does not require any additional precautions. The cost of Bio Diesel is about 10-20 cents more per gallon depending ill upon the region. There is a proposed legislation that would provide tax incentive for Bio Diesel. Fleets covered by Energy Policy Act can use Bio Diesel to meet up to half of their alternative fuel requirements. There is no new or additional 101 infrastructure and specialized training required to use Bio Diesel. • Airport has alternative fuel vehicles and has a compressed natural gas station. The 111) Salt Lake County has no alternative fuel vehicles. Every effort should be made to combine infrastructure needs to reduce cost. 1111 1. The sharing of fuel sites is an excellent idea in that the cost of infrastructure is recovered at an accelerated pace. We do not see IIII R any major advantage in the City handing over the fuel sites to the E State since both agencies are buying fuel at the same price. The C only variable factor is the surcharge applied by each agency. In the O event the City wishes to retain the control of the sites, the City should entertain the concept of the State using the City sites. An M appropriate charge mechanism can be developed for accounting il M purposes. E N 2. Prior to purchasing alternative fuel vehicles or implementing any alternative fuel program, it is essential that training needs of the D mechanics,parts personnel and operators be addressed. This is A paramount to the success of the program. T 3. For heavy equipment, experimenting with Bio diesel is a safe bet. I No changes in infrastructure are needed. Training needs are :t 0 minimal. For long-term study evaluate the use of Liquefied Natural N Gas. LNG has all the qualities of CNG and does not have the S weight. ill Apex Transportation Consulting Group Page 91 I Salt Lake City Fleet Operations Assessment and Optimization Plan IX FUEL MANAGEMENT 10 R 4. Appropriate matching of vehicle use to the type of alternative fuel E should be the key component of the program. The user acceptance C of the operator is key to the success of the program and the vehicle O must perform its intended function with minimum hassle. M 5. The infrastructure cost of alternative fuel stations:4 enormously i M E high and it will be prudent to open up a dialogue with all E neighboring jurisdictions to ascertain their needs and plans for N alternative fuel technology. Establish a local Joint Alternative Fuel i D Task force consisting of members from all nearby local jurisdictions to share the cost and technology. A IT 6. The landscape of alternative fuel technology is far from final. As the I technology advances, the critical factors pertaining to cost and user acceptance are subject to change. There is no clear winner and the 111 0 front-runner depends on the application and time. It is important to Nproceed deliberately with caution, not over commit and be flexible S enough to change with time. I ilo I I I I ., Apex Transportation Consulting Group Page 92 I Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING toX ORGANIZATIONAL STRUCTURE AND STAFFING IOVERALL ASSESSMENT The purpose is to create an organization with committed and responsive management that is quality conscious, customer focused and employee oriented. Organization structure should reflect a reasonable span of control that is compatible with the authority and responsibilities. The staffing levels should be consistent with the type and quantity of work performed in house. The type of work done in house should be based on the core competency of the organization and cost effectiveness of the operation. Our overall assessment is that major changes in service and restructuring are needed to make the shop competitive with private industry standards. Currently the shop appears to have an II adequate number of mechanic personnel and inadequate personnel in several support functional areas. The examples of such functional areas include customer service, data management and analysis of fleet operating reports. We have proposed a revised organization structure that will I address the current lack of support staff and proper utilization of personnel according to their knowledge, skills and abilities. i The shop operating hours should be evaluated to determine optimum needs. We have recommended instituting a second shift to allow maintenance to be performed while most vehicle users are off duty. ID Findings • The current workforce complement for the Salt Lake City Fleet Management Division consists of 40 authorized positions.The managerial/supervisory positions include the Fleet Manager, Fleet Business Manager, Heavy Shop Manager, Light Shop Manager and Parts/Warehouse Manager. Other positions include 1 Office Technician, 1 Office Facilitator, 2 Warehouse Worker II, 1 Warehouse Worker 1, 1 Customer Service Advisor, 5 Senior Fleet Technicians, 22 Fleet Technicians and 1 Fleet Mechanic Trainee. A seven-person reduction from FY01 will be achieved gradually with the final employees leaving in March 2002. • The workforce for the Salt Lake City Fleet Management Division has been declining. Total personnel complement by fiscal year: 1 ii 111 - FY99—52 personnel FY00—50 personnel — FY01 —47 personnel — FY02—40 personnel (workforce will drop to 40 in March 2002). A • Managers appear to spend an inordinate amount of time performing administrative functions. This leaves them little time for monitoring and controlling the work performed by subordinates. A lack of control and discipline over data collection has f0 Apex Transportation Consulting Group Page 93 Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING a ilL,1 caused the validity of data to be questionable. A new vehicle information system cannot provide viable data to monitor and control performance of vehicles and ir personnel without validated input. Unless reliable data is input to the system it will continue to provide inadequate support. • • There are approximately 1,935 vehicles assigned unit numbers in the fleet information management system. Several other vehicles and pieces of equipment are grouped in "Account Billing" codes for miscellaneous equipment and work orders. • "Account Billing"work orders for calendar year 2000 totaled over $518,000. This III was over 10 percent of maintenance expenditures. Some of this work was for the City fueling system. However, much was for work on specific vehicles and pieces of equipment. • Several functions within the Fleet Management are contracted out to local businesses. City light vehicles received a total of 2,843 sublet preventive maintenance services in fiscal year 2001 at a cost of $76,428. This accounts for I almost 12 percent of the total sublet expenditure of$647,457. Other sublet activities include major engine and transmission work, glasswork,radiators, tires and other I work accomplished by private vendors. City employees perform the bulk of the maintenance in the city garage working staggered hours from 6:00 a.m. to 4:30 p.m. each weekday. II • Thirty-two mechanics have 66,560 hours available annually. In fiscal year 2001, 45,894 labor hours were recorded on work orders for a mechanic productivity rate of I 69 percent. Mechanic productivity is defined as the percentage of available labor hours expended as direct work order labor. Mechanic hours not expended on work orders are used for vacation,holidays, training, or waiting for parts or work. I • Vehicle out-of-service rates for 1,685 pieces of rolling stock averaged 4.8 percent, ranging from just over 4.0 percent for light vehicles to 10.3 percent for fire trucks I and 12.7 percent for garbage trucks. These figures are based on a 24-hour availability clock, that is, total downtime hours were divided by 8,740 total annual hours. This eliminates the determination of when vehicles should be available for use by users during"normal" duty hours. Although, we received several complaints from customers the figures reflect that the down time is well within the industry standards. • In our analysis of workforce requirements we have used 2,080 paid hours. In determining requirements, we used two mechanic productivity rates, 85 percent typically used in private fleets and 75 percent typically used in government and municipal fleets. The full impact of current sublet activity on workforce size cannot be determined without more extensive study. • Managers appear to be burdened with administrative tasks and have not developed strong managerial and supervisory controls. Typical performance measures, such as 111 Apex Transportation Consulting Group Page 94 Salt Lake City Fleet Operations Assessment and Optimization Plan p mzzatzon X ORGANIZATIONAL STRUCTURE AND STAFFING ,a Ill . downtime,rework, stockage effectiveness or mechanic efficiency, are not readily available and do not appear to be used to monitor and control the operation. • Fleet Management personnel use unique reports written in-house to manage and alaicontrol the fleet. The fleet information management system, CCG Faster, standard ir reports are not regularly used. CCG appears to be operated on a calendar year basis while the City operates on a different fiscal year basis. Managers accomplish much of the data input and report writing. STAFFING LEVELS IIIVehicle Equivalent Technique A challenge faced by management of a maintenance facility is how to determine the optimum number of mechanics for their respective maintenance operations. A universal formula for determining the optimum staffing levels is not feasible due to the varied nature of equipment within a fleet operation. There are three commonly used techniques to determine staffing needs of fleet garages. Staffing is determined based on: • Historical trends within an operation • A ratio between the number of vehicles and mechanics • Application of vehicle equivalents. IDStaffing based on historical trends is easily forecasted. However, this method does not dd aress the question of whether the initial staffing level is appropriate. It assumes that historical staffing is at optimum levels, an assumption not necessarily correct. Staffing based on a ratio between the number of vehicles and mechanics is also subject to 1111 error. Such ratios do not fully capture the internal changes that each operation may have implemented such as changing the mix of contractual and in-house repairs. The vehicle equivalent technique was first used by the U.S.Air Force, based on extensive data collected as well as time and motion studies and has since been adapted for municipal and other agencies. Different vehicle types have been identified and appropriate vehicle equivalents assigned. The fleet equivalents are totaled and multiplied by 16.5,which is the expected number of man-hours needed to maintain an automobile. I The next step is to determine the net annual available work hours of each employee. Although employees are paid on a 2,080 annual hour basis, the employee does not work the total 2,080 hours. To deduct for vacation, sick leave, holidays and other time off the shop floor a productivity factor is applied. Typical private industry shops use a productivity factor of 85 percent while government and municipal shops experience a productivity factor of 75 percent. Therefore the total number of man-hours derived above are divided by 2,080 hours and then divided by the productivity factor to determine the staffing level. I' Apex Transportation Consulting Group Page 95 Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING 10 Table X-1 illustrates the application of the vehicle equivalent technique and determines the optimum number of mechanics to be 27, at 85 percent productivity, or 31, at 75 percent productivity, for the Salt Lake City fleet. Findings 0 • Based on the analysis of the vehicle fleet,vehicle equivalents awe assigned and total equivalents are calculated as shown in Table X-1. Utilizing standard man-hours of 16.5 total man-hours are calculated. With an 85 percent productivity factor, total required man-hours of 56,174 are calculated. In the next step the man-hours are divided by 2,080 annual hours to arrive at an optimum staffing level of 27 mechanic di positions for the number of stated vehicles. With a 75 percent productivity factor, total required man-hours of 63,664 are calculated. In the next step the man-hours are divided by 2,080 annual hours to arrive at an optimum staffing level of 31 mechanic positions for the number of stated vehicles. - • The total number of work orders for fiscal year 2001 was 11,847. These work orders had a total of 32,050 repair lines and 45,894 labor hours with a total cost of $2,409,501. • Scheduled work orders accounted for 24.7 percent of work order lines and 22.5 percent of work order labor cost and direct labor hours. Scheduled maintenance is ill planned service. This includes preventive maintenance and inspection. It also includes accomplishing needed repairs discovered during the scheduled inspection. This would include replacing brake lining if measurement so indicated. It also I includes "minor" (not safety related) items,identified by the driver, but which could be safely postponed until the next scheduled maintenance visit. • Non-scheduled work orders accounted for 75.3 percent of work order lines and 77.5 percent of work order labor cost and direct labor hours. More than three out of four times a vehicle maintenance action was not a scheduled occurrence. • Several functions within the Fleet Management are contracted out to local businesses. City light vehicles received a total of 2,843 sublet preventive if maintenance services in fiscal year 2001 at a cost of $76,428. This accounts for almost 12 percent of the total sublet expenditure of$647,457. Other sublet activities include major engine and transmission work,glasswork, radiators, tires and other ,4 work accomplished by private vendors. Sublet work was not fully analyzed and will impact the number of mechanic positions. • Four positions in the New Car Preparation section are being eliminated. The I mechanics will leave in March 2002. When these individuals leave, new car preparation work will be accomplished by a combination of remaining personnel and it, sublet. ir Apex Transportation Consulting Group Page 96 1 III Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING 116 TABLE X-1 Vehicle Equivalents Vehicle Number of Number of Work Hours Work Hours Category Equivalents Vehicles in Equivalents @ 85% @ 75% I Category Productivity Productivity Light 1.0 906 906 S 17,�87 19,932 g Motorcycle 1.0 57 57 1,106 1,254 ` Miscellaneous 0.7 250 175 341 3,397 3,850 Police (Take Home) 1.2 284 6,616 7,498 • Medium 2.0 228 456 8,852 10,032 Heavy 3.4 77 262 5,082 5,760 Fire 3.6 37 133 2 586 2 930 Extra Heavy 4.8 54 259 - 5,032 5,702 Garbage (Rear Packers) 7.4 26 192 3,735 4,233 Garbage (Side loaders) 8.8 16 141 2,733 3,098 1,935 2,894 56,725 64,288 Work years (rounded) 27.00 31.00 Work years (not rounded) 27.27 30.91 1110 PROPOSED ORGANIZATION Staffing Alternative 1 I Based on the findings above we are proposing two alternative organizational structures. Alternative 1 is for a productivity rate of 85 percent that is generally used by private agencies. The total number of positions in alternative 1 is 41 positions. The detailed list by position, comparing it with the existing complement is detailed in Table X-2. A detailed organization chart showing the lines of authority is shown on Exhibit AB. 1 I I ii Os Apex Transportation Consulting Group Page 97 I Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING 10 TABLE X-2 Staffing Alternative 1 • SALT LAKE CITY FLEET MANAGEMENT Work Force at 85 Percent Productivity Rate Position Proposed Existing s ,Difference Fleet Manager 1 1 0 Day Shift Service Manager 1 0 1 Evening Shift Service Manager 1 0 1 Heavy Shop Service Manager 0 1 -1 I Light Shop Service Manager 0 1 -1 Fleet Business Manager 1 1 0 I Parts/Warehouse Manager 1 1 0 Warehouse Worker 3 3 0 Office Facilitator 0 1 -1 II Office Technician 3 1 2 Fleet Senior Technician-Light 2 1 1 al Fleet Senior Technician-Heavy 2 3 -1 Fleet Senior Technician-Fire 1 1 0 I Fleet Technician-Light 9 9 0 Fleet Technician-Heavy 12 12 0 Fleet Technician-Fire 1 1 0 Fleet Mechanic Trainee 0 1 -1 Fleet Service Worker 0 1 -1 Senior Mechanic 0 0 0 Body Repair Technician 0 0 0 1 Electronic Support Technician 0 0 0 Customer Service Advisor 3 1 2 • Totals 41 40 1 9 la Apex Transportation Consulting Group Page 98 I ma fi; ks.^� art d< ii.,.r zy ' -mot oca_= sir' air ai air MIN air am as ea ameirs Sa ake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING EXHIBIT 1 Staffing Alternative 1- 41 Full Time Employees re' 1414 111 0,,,,,,,41iA.,,,,,,,„:„, ..1,, ,..,_ , ,,i,..1.144i , , . , . . - ., , „ ,z, , . .....,..1.4 ', , , } Warehouse Worker Warehouse Worker .. Office Technician Days — Evening 3 3 2 atwuytwams'x'PSt�x�,,yryyyxx. .,tx'nc'_'�.,t:ww 1 ' a ( yyJJ^' jj ��gg [[ pp��, b5� 1 ' 1�Al�S�'1,-1'��3���� ��C.5: ,^, �•'c� ,.. :,«...� t 4�..!),4,,�i 0�ss qh ,,,,, S ; k '`p,".. , ' Fleet Senior Technician Fleet Senior Technician ` Fleet Senior Technician_ Fleet Senior Technician Light Heavy t Light H j Heavy , t� p �W{qr }' g3g Wyp{L+ ,}y F ,^g'1UUI i ' �g {y�'h. ��T F,7+ `I �Y^'f"'W�+ i�"' �3. 1 ' 'i �k:. ; :�A�.w.-^.xo..x.,,:_. ��.3 f: �-ywwu�..�ia 's�,"r yr i� r�3z Customer Service Advisor Fleet Senior Technician Customer Service Advisor 6 2 Fire I 1 I , Fleet Technician Fire 1 Apex Transportation Consulting Group ,...,.r .__ __ �_ ____. __, __ .__._.._ _...._.....___._.__.__ I i Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING ), Staffing Alternative 2 Alternative 2 staffing levels are reflective of a productivity rate of 75 percent that is typically used by public agencies. The total number of positions in Alternative 2 is 45. The detailed list by position, and a comparison with the existing complement is detailed in Table X-3. A detailed il organization chart showing the lines of authority is shown on Exhibit AC. TABLE X-3 t Staffing Alternative 2 SALT LAKE CITY FLEET MANAGEMENT Work Force at 75 Percent Productivity Rate Position Proposed Existing Difference Fleet Manager 1 1 0 Day Shift Service Manager 1 0 1 Evening Shift Service Manager 1 0 1 Heavy Shop Service Manager 0 1 -1 I Light Shop Service Manager 0 1 -1 Fleet Business Manager 1 1 0 II Parts/Warehouse Manager 1 1 0 Warehouse Worker 3 3 0 Office Facilitator 0 1 -1 Office Technician 3 1 2 Fleet Senior Technician-Light 2 1 1 Fleet Senior Technician Heavy 2 3 -1 Fleet Senior Technician-Fire 1 1 0 Fleet Technician-light 11 9 2 Fleet Technician-Heavy 14 12 2 Fleet Technician-Fire 1 1 0 Fleet Mechanic Trainee 0 1 -1 Fleet Service Worker 0 1 -1 Senior Mechanic 0 0 0 I Body Repair Technician 0 0 0 Electronic Support Technician 0 0 0 Customer Service Advisor 3 1 2 Totals 45 40 5 Ire Apex Transportation Consulting Group Page 100 NNW MU NIS gillire MS no siiisame us en sae me us emir sorl, oil* on- SYNTake City Fleet Operations Assessment and Optimization Plan X ORC:ANIZA2 YONA.L.S7 RUC7VRE AND S1 AFFING EKI-i1BIT AC Staffing Alternative 2--45 Foil TilrOlf:Employees •:,,,,4',112°-;',4t.t.rii;.,9„,„;..i.,....,!"9„.M::',.. ..• tlihly.,,t7.7. . — — .r, --,-.[.:;,•),...4...,A,,,fri.).1:-.,,,ko,t,9f.),.. ,,,, Warehouse Worker , I VVarehouso Workei Days 2 , .. . ___._ L Evening 1 Office Technician '. I 3 1,_ 7,i, -Li,-nr-,-4,:,;-'-'-.4i1-,-"7.::'•'..;:i•- .4 . . ,..-. ,--- Fleet Senior Technician . Fleet Senior Technician , Fleet Senior Technician Fleei Senior Technician Light 1 Heavy 1 Light 1 Heavy 1 1 1 1 :kcl,:i1.14tittilkpril.P.,6 'iwifyr.-400.1r,(q l':i0a'4.01itig...-1,i.li 1 ff,:::,.f.t.;4,1'. 4-4,0,44.p.',4,. .1'1:41.0.1v,011,:. .Vg.i:11.9,.i.fiAR:M,'. .:-.,.11.t.ipi.lt-..at..1i1•'1 '..:.'..:',..-.,.';,•-c‘,.-,_.,..,..„ .7,,-;,-;:-..'!':.;..., ,,,-.., ,.: t.-.',,.'.. ,,_:-.::•-.....,.,.:: : .;.4,W;',. .;1,..2:1';',', ..,.':',.. ft Customer Service Advisor Fleet Senior Technician Customer Service Advisor I 1 2 ------ fire Fleet Technician Fire Ape,Transportation Consulting Group Page 1.0- I Salt Lake City Fleet Operations Assessment and Optimization Plan X ORGANIZATIONAL STRUCTURE AND STAFFING Z 1. Salt Lake City should evaluate the addition of a second maintenance ir shift operation. Private fleets and many municipal fleets operate a second shift to allow much of the work to be accomplished during the hours a vehicle is not typically used. Major repairs would be accomplished during the day when vendor parts and support services are available. t 2. Increase administrative support to managers and supervisors. Allow R managers and supervisors to monitor and control performance of their IF E responsibility areas. Customer Service Advisors should debrief drivers and input work order information to CCG. An eliminated Office C Technician position should be restored. I . M 3. Data integrity must be established. Control and discipline must be M gained over the input process to ensure accuracy. Each vehicle or piece of equipment must have a separate unit number. "Account Billing" E code transactions should be limited to non-vehicle specific activities, N such as fuel service support or shop activities. ID 4. Administrative personnel should be trained in the CCG vehicle A management information system report-writing module. They could ill T then provide standard and locally defined reports for managers to I monitor and control performance. IS 5. The Fleet Management System, CCG Faster, should report activities on N a fiscal year basis. This would allow costs and revenues for all S procurements,vehicle charges, and the City financial system can be monitored using the same reporting period. 6. Scheduled repair work should be increased to a minimum of 60 percent; private fleets consider the standard to be 70 percent. Scheduled repair means that the work was planned; the vehicle was brought into the shop as scheduled, the mechanics knew it was coming, and therefore did not i have to leave other work to service it. Unscheduled repair means that the assigned work in the shop was interrupted to service the vehicle, i.e. a mechanic was taken off another job to take care of it. r I Ii' I' Apex Transportation Consulting Group Page 102 I ISalt Lake City Fleet Operations Assessment and Optimization Plan XI INFORMATION SYSTEMS XI INFORMATION SYSTEMS OVERALL ASSESSMENT In the recent years fleet management systems have become quite sophisticated and a good ill system offers the necessary tools to make effective operational decisions. The primary focus of a fleet information system is to collect and organize data regarding vehicle-cost and performance, maintenance and operation. The information supports work scheduling and performance monitoring of day-to-day operations and decision-making relating to budgets and replacement policies. A vehicle management system can compile major fleet indicators instantly and summarized under a variety of formats. The fleet management software can provide input and integrate data I relating to vehicle inventory,work order processing,labor tracking,preventive maintenance scheduling, shop scheduling,parts usage data,inventory data, fuel transactions, fuel supply, and charge back system to your customers. Our overall assessment is that the City is well equipped with an automated information system to effectively manage the fleet. The current fleet management and automated fuel systems are adequate to meet the basic needs of the City. Currently, the City does have an automated vehicle management system, known as CCG Faster that provides the necessary reports. The City has an automated fuel system that does interface with the maintenance system. However, the system is not docurrently utilized to its full potential and additional training is critical to the success and data integrity of the system. Findings • There is an automated vehicle management system, CCG Faster, operational in the shop and parts room operation. Mechanics are quite proficient in the use and care of the information system. The system has been in operation for nearly two years. Prior to CCG Faster system the city had another computer system, Uniforce Fleet Management system. • The shop is equipped with terminals and mechanics input the data into the system. Based on our site visits and interviews mechanics seem to be comfortable with the system. I • Although all the elements of the vehicles management system are in place, it appears that the system is not utilized to its full potential. The underutilization is not due lack of interest but mainly due to inadequate training of the system for shop and supervisory staff. • • We found extreme variations in cost per mile data and that can mainly be attributed Ito improper data input. It is critical that all employees using the system be cognizant di of the fact the correct data input is essential to obtain meaningful reports out of the system. Apex Transportation Consulting Group Page 103 I ' Salt Lake City Fleet Operations Assessment and Optimization Plan XI INFORMATION SYSTEMS I • The City has a fully automated fuel system that interfaces with maintenance system to compute the cost per mile for the fleet. The fuel system is also captures the mileage on the vehicles. The fuel and mileage data is used to schedule preventive s maintenance for the fleet. II • The acting fleet manager is well versed in use of the system and is doing a credible job in maintenance of the system without much clerical support. • The implementation of the time and material charge back system necessitates that the data input must be accurate. The agencies will be billed based on the data input ip by mechanics in the shop. The reports will be reviewed and scrutinized by the customers. • The fleet manager and shop produce operational reports on as needed basis to manage the fleet. The system is capable of producing reports that may be used by the operating agencies to effectively manage their fleet. Some agencies have expressed a keen desire to get such reports. • The software support Faster offers is on going support to fleets including a user meeting once a year. No one from the fleet has attended the meetings. The user conferences are an important tool to interface with other cities, counties and utility IPcompanies with similar fleets and issues. • All components of the system are networked and work well to serve the needs of the office,parts room operation and shop floor mechanics. • The heavy equipment shop has expressed the need to have two additional terminals in the shop to facilitate the data input for shop operations. • The vehicle management system and the fuel management system do not need to be changed. The current system will adequately meet the needs of the system. However with limited training the systems are not fully utilized to their full potential. Cost of improvement is minimal ranging from$3,000 - $5,000 for training of shop, parts, administrative and supervisory staff. ill • The basic system parameters should be revised to get the most meaningful reports. For example,vehicle identification by class code, and simplified down time analysis, etc. Some of the critical elements are not in place to readily get performance reports. ii With the inclusion of fleet parameters many of the important reports can be obtained instantly. 1111, • The neighboring Salt Lake County has a similar system and the fleet manager at the county is willing to assist in any manner when needed. IP . ., Apex Transportation Consulting Group Page 104 ID il Salt Lake City Fleet Operations Assessment and Optimization Plan XI INFORMATION SYSTEMS • The parts room is in process of bar coding the entire parts inventory. It is expected that the bar coding will be in place early next year. 1. In order to get a better understanding of and make full use of the full IIII capability of the vehicles management system the Fleet Manager, business manager and key shop personnel should attend the CCG R Faster users conference to keep him updated with the latest E C 2. enhancements. A formal training of all key personnel is important to the success i 0 and effective use of the system. The key personnel should include M Fleet manager, Business manager, Parts supervisor, and Shop M Service managers. The training could be arranged in Salt Lake City. E 3. Provide additional terminals in the shop area to facilitate the data N input. D A 4. The using agencies have expressed a need for maintenance reports. Operational reports should be shared with using agencies to apprise T them of the cost and fleet data. We recommend a standard basic I cost and mileage data report that may be provided to all agencies. go 0 N S 5. Revise basic parameters to obtain the data by class code summary for performance measurement and cost comparison with like fleets. 6. Parts personnel should be trained to use the bar coding system soon to be implemented. This training should be part of the overall training of the system. i ii. • Apex Transportation Consulting Group Page 105 1 II Salt Lake City Fleet Operations Assessment and Optimization Plan XII CUSTOMER COMMUNICATION AND FEEDBACK $111 XII CUSTOMER COMMUNICATION AND FEEDBACK OVERALL ASSESSMENT • III A sound customer focused operation requires a total quality management approach. It is essential that the plan include employees as well as customers. Fleet management is a service business. It is critical that service be provided that excels and focuses orxgoing the extra mile to keep the customer satisfied. Effective customer service stems from sensitivity to the concerns of the using departments, maintaining adequate communication with all concerned participants. The quality indicators include dependable and consistent service, timely and responsive service; meet all 1! the laws and regulations, treatment of City employee as a customer and prompt resolution of problems and issues. Our overall assessment is that the quality of customer service rated by the using agencies is moderate. At the same time the customers feel optimistic about the potential of the shop personnel to perform at a superior level. There are significant opportunities for improving customer service by 111 educating the customers;and establishing and maintaining frequent contact with customers to further enhance the communication between the agencies. The customers are quite comfortable with the skill level or knowledge of maintenance personnel. Several departments are concerned about the replacement policies and one shift operation. We will be offering recommendations to rectify the noted concerns. We believe that a 1110 proactive stance by fleet management in improving their image is achievable and will remedy the situation. Findings • The customers feel that the fleet management staff and mechanics are well qualified to manage and maintain the fleet. Some of the customers have expressed their concern about the level of service and attitude of the selected number of personnel. Generally we found that the most of the City employees are reasonable satisfied with I the shop performance. Average rating on a scale of 1-10 is 6.5. (10 being the highest) • We found two clear opinions from customers as far as the service and replacement of the fleet is concerned. One that is very appreciative of the efforts of shop I personnel and accelerated replacement policies considering the available resources, second those who believe they are well qualified to perform at a superior level but display negative attitude towards the operators and inconsistencies in replacement polices of the fleet. Noted was an attitude such as "you broke the equipment and now we have to fix it for you" that is not conducive to effective customer relations. • Several agencies have expressed their concern about the repeat work in the shop. The vehicles and equipment are brought into the shop for the same defect frequently. Further investigation of repeat work with shop personnel revealed that at IF times it is lack of communication and not the repeat work. For example, a customer Apex Transportation Consulting Group Page 106 i Salt Lake City Fleet Operations Assessment and Optimization Plan XII CUSTOMER COMMUNICATION AND FEEDBACK lio brings in a vehicle to the shop for 5 defects, the shop repairs 3 out of 5 defects and returns the vehicle to the customer awaiting parts delivery on the other items. This is done because the other two items are non-safety related and the customer can use the vehicle thereby reducing down time on the fleet. With the new charge back '}a system in that the agencies are charged for work performed by the shop the City agencies are more vigilant about repeat work and resent paying for the repeat work. le We have offered specific recommendation to rectify such incidents. S ' s. 1111 • Several departments have expressed a need for more data relating to fleet management activities, downtime, cost information,miles per gallon, etc. The current CCG Faster computerized system is capable of providing the required 1111 information. • The current one shift operation Monday through Friday is a concern to public safety 111 agencies. Many of the departments would prefer to have the maintenance done during non-working hours to reduce downtime, e.g., perform preventive maintenance at off duty hours to enhance fleet availability. This is general practice in 11111 the industry. • Public Safety agencies,i.e., Police and Fire Departments, are quite content with the IIII fleet replacement policies in place. Several other agencies feel that the replacement decisions are made unilaterally and have expressed their willingness to get involved in the replacement criteria for the fleet. IIP • All customers rated response to emergency service provided by the shop high. The I staff and employees are aware of the customers needs in emergency and have gone an extra mile the get the fleet operational in snow and other emergencies. • The heavy equipment customers miss the multiple shift operation in the shop. Due to the expensive equipment it is difficult to have spares for the fleet. The shop working the same hours as the using agencies increases down time and reduces fleet availability. I • The shop provides mobile maintenance to the Fire Department and the department is appreciative of the effort and rates the service as high quality and responsive. • The fleet manager maintains informal communication with customers, and the feedback mechanism is informal. An organized approach to communicate on regular basis would be of benefit. A fleet coordinator concept may be adopted to improve communication. The process involves appointing a fleet coordinator for I each department in the City. The fleet coordinator will be the liaison person Ibetween the fleet service department and the using department. The fleet manager conducts three meeting a year with all the coordinators to apprise them of the ii• developments in the fleet operation and seeks their cooperation in better maintenance of the fleet. This will promote "one stop shopping" by referring all the fleet issues to the departmental coordinator. Apex Transportation Consulting Group Page 107 . I il Salt Lake City Fleet Operations Assessment and Optimization Plan XII CUSTOMER COMMUNICATION AND FEEDBACK • The fleet agency has at times attempted to gauge customer relations by asking for comments from the customers. We found some evidence that the customer survey was either planned or conducted. We firmly believe that it is difficult to manage if there is no measurement. One method used by agencies to improve customer Ifeedback is to initiate a Customer Comment Card. The card will be hung on the I inside of the vehicle each time a job is completed. A sample copy of a comment card is included in this report. il • All the cards will be sent to the Fleet Manager for review who in turn will share the results of the same to the shop employees. In order to gain customer support it is 11 recommended that all comment cards received with adverse comments be handled personally by a phone call from the fleet management department. IIII • There is no formal communication or scheduled meeting to discuss fleet issues with customers. Many customer focused agencies meet with the customers at least once a year on a one on one basis to discuss fleet related issues ranging from service levels, replacement of equipment, charges, operator responsibilities, etc. II • The using agencies are familiar with the new charge back system,but do not know the detailed mechanism or reporting of the same. Several agencies expressed their desire to learn more about the system and are interested in reports that may help 111 them to manage their fleet. IIII IIII ill I 1114 t 4 I 1", Apex Transportation Consulting Group Page 108 I '; 4 I1 Salt Lake City Fleet Operations Assessment and Optimization Plan XII CUSTOMER COMMUNICATION AND FEEDBACK it? 1. The fleet manager should meet with each customer at least once a year to discuss individual fleet needs for their respective agency. • 2. Fleet coordinator meetings should be held at least twice a year to � provide departments with an opportunity to exchange information I on technical and operational issues. S ' � il 3. To measure the customer satisfaction we suggest the fleet agency develop and implement a customer comment card. Each time a repair is done the customer will have an opportunity to comment on R the level of service provided. The customer comment card may be placed on the inside rear view mirror and should be evaluated by E fleet manager. All cards received with negative comments will be Ilifi C responded to by phone by responsible fleet personnel. A sample comment card is enclosed. The card could be could also be emailed M M by the customers to the shop manager to expedite the follow up 0 action. E 4. The fleet manager should implement the concept of departmental IF ND fleet coordinators in the City. 5. Fleet being a service business it is critical that each employee clearly lb A understands the importance of a satisfied customer. Evaluate the T feasibility of shop personnel to be trained in Total Quality I Management and importance of customer service. 6. Departments and agencies should be advised of the new charge N back system. Initiating a series of well-facilitated sessions focused S on customer education and improving understanding of fleet management may accomplish this. The subject topics could I include operational changes,new developments, rental rates, and other subjects of common interest and team building. This type of partnering with customers will help in improving communication 0 between fleet and using departments. 7. The fleet manager should take an active role in day-to-day activities of the shop to guide, train and motivate the staff particularly in ii customer service. We found evidence of improved employee communication under the guidance of the current acting fleet jj manager. Some of the customers also noted the proactive style of the acting fleet manager in dealing with problem resolution. 0 1, Apex Transportation Consulting Group Page 109 110 Salt Lake City Fleet Operations Assessment and Optimization Plan XII CUSTOMER COMMUNICATION AND FEEDBACK itSALT LAKE CITY er CUSTOMER SERVICE EVALUATION IIIIDATE: SUPERVISOR: VEHICLE NO: W/O NO: MMCH'.'NO 11 CUSTOMER DO NOT WRITE ABOVE THIS LINE 11 IIHOW DO YOU RATE OUR SERVICE - Excellent Good Average Poor 11 Service met expectation ❑ Ci ❑ 01 11 Service personnel courteous ❑ ❑ ❑ ❑ al Repair was completed on time ❑ ❑ ❑ CI ❑ Overall service quality ID :11 ❑ IIIIAdditional Comments/Suggestions: 1111 1111 Operator's Name Operator's Signature Date 111 THANK YOU FOR YOUR COMMENTS! 101 1111 1110 Apex Transportation Consulting Group Page 110 1111 ir Salt Lake City Fleet Operations Assessment and Optimization Plan XIII PERFORMANCE MEASUREMENT .711 )11 XIII PERFORMANCE MEASUREMENT • OVERALL ASSESSMENT 0 Performance measurement is the regular collection of specific information about the results of services performed. Together with benchmarking and continuous improvement, performance measurement forms the basis for managing for results. In general, a good performance ip measurement system should be able to provide answers for the following questions: • What was achieved? 0 • How efficiently was the work done? The CCG Faster Vehicle Management System collects a mountain of data about the Salt Lake City vehicle fleet. One of the difficulties we have experienced is getting useful information from this mountain of data. The emphasis is to use the custom designed reports rather than use the standard reports that will suffice. The system parameters should be simplified to get easy access to 0 the data. A good performance measurement system will allow management to determine the level of 0 service provided to specific users, the quality of performance by mechanics, the quality of parts support (by vehicle type and vendor), and the cost of each of these categories of service. Performance measures are used at both the macro and micro levels; an objective indication of 4 overall fleet management services. Findings 0 • Managers appear to be burdened with administrative tasks and have not developed I strong managerial and supervisory controls. Typical performance measures, such as downtime,rework, stockage effectiveness or mechanic efficiency, are not readily available and do not appear to be used to monitor and control the operation. III • Fleet Management personnel use unique reports written in-house to manage and control the fleet. CCG system standard reports are not regularly used. le • CCG appears to be operated on a calendar year basis while the City operates on a different fiscal year basis. il ii I' iApex Transportation Consulting Group Page 111 i( ill Salt Lake City Fleet Operations Assessment and Optimization Plan XIII PERFORMANCE MEASUREMENT I 1. Management should design and use a performance measurement system to monitor the service provided to users, the performance of fleet personnel and the costs of providing those services. A list of suggested key indicators is provided at the end of this section. ii 2. We recommend that the Fleet manager work with CCG Faster R personnel to define the reports to obtain the perfortnance data E needed to monitor the key indicators. 11 C 3. We recommend that the City start understanding and ultimately ill 0 implementing various performance measures as outlined above. M 4. Data integrity must be established. Control and discipline must be M gained over the input process to ensure accuracy. Each vehicle or E piece of equipment must have a separate unit number. "Account N Billing" code transactions should be limited to non-vehicle specific il D A 5. activities, such as fuel service support or shop activities. The City's fiscal year should be the standard reporting period for T Fleet Management. CCG Faster should convert to a fiscal year basis I for all data reporting, except special reports designed locally. 1110 0 6. Administrative personnel should be trained in the CCG vehicle N management information system report writing module. They could S then provide standard and locally defined reports to monitor and control performance. 7. Reports on the level of service provided should be shared with users. This will allow them to better understand the services provided by Fleet Management and perhaps initiate a higher level of cooperation concerning service issues. III KEY INDICATORS FOR PERFORMANCE MEASUREMENT Listed below are some of the performance indicators used in the industry. We suggest that these indicators may be used as benchmarks to monitor fleet performance. ill Turnaround Time ii Turnaround time is the amount of clock time it takes for a vehicle to be returned to service after it has been put in the shop for repair. A high turnaround rate can signify that mechanics are not doing a good job of preventive maintenance so that unresolved minor repairs turn into major repairs that require more time in the shop. The repair to vehicles is delayed because repair parts are not available when they are needed, work priorities are not managed and the equipment that is in for I' Apex Transportation Consulting Group Page 112 If Salt Lake City Fleet Operations Assessment and Optimization Plan XIII PERFORMANCE MEASUREMENT 16 more extensive repairs is receiving priority over those in for minor repairs. Often the mechanic's time is tied up performing major repairs, which can be conveniently contracted out to a local vendor thereby improving turnaround time. I Recommended Standards for turnaround time are: I I Less than 24 hours At least 70% `z S 24 to 48 hours 20% iiLonger than 48 hours Not to exceed 10% Scheduled Versus Unscheduled Work oi This is an indicator of quality of work, because it shows the extent to which equipment experience unanticipated repair needs that may require the equipment to be repaired before it is put in service or require it to be taken out of service. Unscheduled repair work can occur, for example, when a repair problem was not diagnosed during performance of preventive maintenance work. A disproportionate amount of unscheduled work raises questions regarding the quality of work 0 performed, and is very disruptive to users' departments. Recommended standard: Scheduled vs. Unscheduled At least 50% scheduled Average should be 65 to 70% liRepeat Work ill Repeat work is maintenance work that had to be redone, because it was not done correctly in the first instance. It is a clear indication of poor workmanship. III Recommended Standard: Repeat/ Rework Less than 2.5% illDowntime and Breakdowns ill These are two very important indicators of the quality of work done by a maintenance operation. Downtime measures the amount of time the equipment is out of service because it needs to be repaired. A high amount of downtime means that service is disrupted, since a vehicle is not il available, and that a large number of spare vehicles are required as backups. Breakdown measures the frequency with which a vehicle must be taken out of service because of the repair problems. Both indicators speak to the overall management of the maintenance operation and the quality of 10 repair work done. The major reasons for excessive downtimes are: ii • Parts availability in the inventory • Inadequate manpower • Shuttling time po . -71 Apex Transportation Consulting Group Page 113 14 Salt Lake City Fleet Operations ' Assessment and Optimization Plan XIII PERFORMANCE MEASUREMENT • Inadequate shopspace or bayspace availability q • Poor vendor response due to subcontracted work • Repairs taking too long • • Waiting for approval for expensive repairs. Recommended Standard: Downtime Not to exceed 6% t - 01 Mechanic Utilization This is a measure of the percentage of available time mechanics spend "turning wrenches", or working on vehicles rather than doing other things such as running for parts waiting for work, cleaning up the or running errands. The objective is to maximize the amount of time mechanics spend working on vehicles versus other activities. - Recommended Standard: Mechanic Utilization 75% PREVENTIVE MAINTENANCE 111 This is a measure of all preventive maintenance inspections and required annual state emissions performed as compared to the total number scheduled in a given period of time. Recommended Targets: PM inspections 95% Emission inspections 100% 111 Inventory Turn Over Rate 0 This standard is defined as total number of parts used annually divided by the average number of parts on hand. This measure is an indicator of too high or too low stock levels and also shows slow moving or obsolete stock. Private industry fleets typically have a goal of one month's parts usage on hand, or 12 inventory turns per year. Recommended Target: Six inventory turns per year, or two months parts usage on hand. 11 Stockage Effectiveness To measure the appropriate level of investment in inventory that results in lowest overall cost, a standard known as stockage effectiveness rate is used. The standard measures the percentage of parts that are filled from stocked inventory. The factor is calculated by dividing the parts used from stock by the parts issued from stock plus non-inventory purchases. ., Recommended Target: Eighty-five Ei h -five percent stockage effectiveness rate. IF ,:' Apex Transportation Consulting Group Page 114 ,a I Salt Lake City Fleet Operations Assessment and Optimization Plan XIV SAFETY AND TRAINING )11 . XIV SAFETY AND TRAINING OVERALL ASSESSMENT • ii The purpose of a safety program is to create a safe work environment for the employees, the facilities should meet applicable federal and local safety regulations, and the employees should be provided with protective safety gear. To achieve optimum productivity,the employees should be 0 trained about safety matters and technical issues consistent with fleet needs. To deliver quality service,it is essential that the personnel in charge of providing the service oi be trained to do the task. The continuing change in automotive technology requires a rigorous and pro-active training program for mechanics and supervisors. 0 Our overall assessment is that the shop has good safety and a satisfactory training program. The shop does have an Automotive Service Excellence Program in place. The mechanics are well experienced and familiar with use of shop tools and equipment. Employees have received sporadic 1111 training, but additional training is necessary to cope with the changing technology. The training on specialized units of equipment is limited and could be improved. The operator training in the use and care of equipment will be of mutual benefit to the fleet department and the operating 10 department. Findings III • Shop has library of books and service manuals in an area in the vicinity of the shop. The room is adequately equipped for the mechanics to access the material on as needed basis. This is a sound business practice and should be continued and expanded. ill • Material safety data sheets as required by law are in place. The employees are made aware of the basic safety procedures. IIII • The City's experience with alternative fuels in prior years has been less than satisfactory. Among other reasons cited the shop mechanics are supervisors are quick to point out lack of training would certainly have helped in reducing downtime ion vehicles. • Our site visits and interviews indicate that the pre- and post-trip inspections by drivers are done inconsistently. For safety reasons the drivers must do pre and post trip inspections? Driver and supervisor training will help reduce infractions. • The City does have an Automotive Service Excellence (ASE) program for mechanics. ASE is a voluntary program through which a technician can prove his abilities to benefit himself, his employer, and to his customers. By passing ASE tests Ia technician will earn the most valuable credentials available to technicians. 1 Apex Transportation Consulting Group Page 115 ii il Salt Lake City Fleet Operations Assessment and Optimization Plan XIV SAFETY AND TRAINING liek:... • Approximately 60 percent of the Auto shop mechanics are certified. Only a select few in the heavy equipment shop have ASE certification. Currently the City pays $5 per certification per month as long as the mechanic maintains the active certification. 1 This is a good program and is already in place and effort should be made of offer incentives to heavy equipment and other mechanics that have not opted for the certification. 1 • The supervisors and key employees in the shop need a course in the use of CCG Faster computer system. The City made a significant investment in purchasing the Isystem that is not being used to its full potential. • The mechanics are not up to date on the latest technology innovations in the auto I field. Mechanics spend more time in problem diagnosis due to lack of training. Some agencies use training material resources like All Data company that is engaged II in sending in technical CDs on the latest technology for a nominal fee of$25-$40 per • month. • To improve the specialized training for heavy and construction type equipment, one 1 avenue adopted by some agencies is to include training as a part of the equipment I purchase process. For example, purchase heavy dumps,refuse trucks, sweepers and I other units of specialized equipment. The specifications for the specialized unit of equipment could include factory training of a mechanic at a factory school to get the first hand knowledge of the intricacies on the unit to be purchased. The III specifications generally state that the cost of training shall be included in the equipment purchase cost. II II II Ii Ii I I LI ToT Apex Transportation Consulting Group Page 116 1 ' Salt Lake City Fleet Operations Assessment and Optimization Plan XN SAFETY AND TRAINING 1. The City should encourage the continuation of an Automotive Service Excellence program already in place. Some of the 'I I suggestions to improve participation include offer or pay for the 111 • preparation training for the certification examination and increasing the incentive from$5 per month to $10 per month. The additional IR cost will be minimal however the results far outweigh the cost. E 2. Additional emphasis should be placed on mechanic training to C acquaint them with the latest technology. The City should consider subscribing to All Data Company for latest information on light M vehicles. IM 3. In the event the City decides to purchase 30 percent of the eligible E fleet as alternative fuel fleet, it is important that appropriate funds be made available for on going training in the field of alternative fuel IN D technology. A 4. Assess the technical and supervisory training needs of the staff. I T Develop a training plan. The determination of training I requirements should be based on the need and not the proximity of I 0 training offered. Of course every attempt should be made to obtain N local or nearby training or training at minimal cost. 61 S 5. Implement an aggressive customer education program. The program should encompass all aspects of federal and state statutory requirements. Enforce a pre and post trip inspection program for I operators. Operational supervisors should conduct a random gate check as vehicles depart to assure that operators are complying with the regulations. r Ii II I el Apex Transportation Consulting Group Page 117 I ISalt Lake City Fleet Operations Assessment and Optimization Plan V NEXT STEPS III NEXT STEPS I ❑ REVIEW AND FINALIZE PART 1 OF THE REPORT. I ❑ MAKE POLICY DECISIONS REGARDING RECOMMENDATIONS. SOME PART OF PHASE II IS ALREADY INCLUDED IN PART 1. COMPLETE I PHASE II OF THE STUDY. UTILIZE THE CONSULTING RESOURCES TO IMPLEMENT THE RECOMMENDATIONS LISTED IN THE REPORT ID DEVELOP AN IMPLEMENTATION PLAN TO INCLUDE ACTIONS TO BE TAKEN, EVIDENCE OF BENEFIT, COST IMPLICATIONS,AND PERSONNEL RESPONSIBLE FOR ACTION. I ❑ MAKE SELECTED IMPROVEMENTS THAT CAN BE MADE BY EITHER CHANGING A PROCESS OR AT A MINIMAL COST. I ❑ FOR IMPROVEMENTS REQUIRING SIGNIFICANT ADDITIONAL COST, FUND THE ENHANCEMENTS FROM SAVINGS REALIZED THROUGH I OPERATIONAL EFFICIENCIES GAINED BY IMPLEMENTING THE RECOMMENDATIONS PRESENTED IN THIS REPORT. p I I I I I I 11111 Apex Transportation Consulting Group Page 118 I MEMORANDUM • DATE: April 5,2002 TO: City Council Members FROM: Russell Weeks RE: Proposed Amendments to Ordinances Regulating Vending Carts CC: Cindy Gust-Jenson,Rocky Fluhart,Margaret Hunt,Stephen Goldsmith, David Dobbins,Gary Mumford,Doug Dansie,Janice Jardine This memorandum is intended to address proposed amendments to ordinances regulating vending carts in Salt Lake City.Because the City Council will be briefed on the proposed amendments before calendaring them for action the memorandum contains no potential motions for the City Council to consider.According to the Administration transmittal,the purpose of the proposed amendments is to"make sidewalk vending easier ... and to clear up any existing ambiguities in the ordinance while ... balancing the needs of adjacent businesses and neighborhoods."There appear to be about 45 vending carts in Salt Lake City.Of that number 17 operate on Salt Lake City sidewalks. (Please see attachments.) The Administration has forwarded three versions of the proposed amendments in its transmittal to the City Council. Council Members may wish to focus on the third version,which is prefaced by a page that reads,"Administration endorsed Ordinance."The version contains the proposed amendments from the other two versions except one.The exception in the third version would leave the number of vending carts allowed per block at existing levels—two carts per block on Main Street and one cart per block in other locations. Council Members also may wish to read the minutes of the three Planning Commission meetings contained in the transmittal to help flesh out the background section of this memorandum. OPTIONS • Retain the existing ordinance. • Adopt the proposed ordinance endorsed by the Administration. • Adopt the proposed ordinance recommended by the Planning Commission. • Adopt one of the proposed ordinances but amend it to retain the$175 fee for land use permits. • Adopt one of the proposed ordinances but amend it to specify which City parks vending carts may locate. • Adopt one of the proposed ordinances but retain the existing ordinance language in Section 5.65.040 that requires certified copies of all State and Health Department permits and detailed scale drawings and other items in a vendor's application for a regulatory permit. 1 MATTERS AT ISSUE/QUESTIONS FOR CONSIDERATION • Has the Administration developed a policy to address locating vending carts in parks? • Are there any parks in the City where vending carts should not be located? . • Has the Administration determined policy criteria for setting fees for land use permits? • Is there value in retaining a uniform fee for all vending cart sites? • What would be an acceptable alternative to the current requirement to provide"detailed scale drawings"of a vending cart plus"material specifications,and in isometric drawing in color of at least two views showing all four sides of the vending device and any logos, printing or signs ... incorporated and utilized in the color schemes"in a vendor's application for a regulatory permit? BACKGROUND/DISCUSSION CURRENT ORDINANCE The DePaulis Administration first allowed vending carts in the downtown area in the late 1980s and early 1990s.According to Planning Commission meeting minutes,the current vending ordinance has been part of the City Code since 1993. The current ordinance(Chapter 5.65)for the most part allows vending carts in the Expanded Central Business District,the Sugar House Business District and in Pioneer Parlc, Dinwoody Park and Washington Square. Under the current ordinance the boundaries on the Expanded Central Business District are:North Temple from 400 West to 300 West;300 West from North Temple to South Temple; South Temple from 300 West to 200 East;200 East from South Temple to 600 South;600 South from 200 East to State Street; State Street from 600 South to 900 South;900 South from State Street to 400 West;and 400 West from 900 South to North Temple. Under the current ordinance the boundaries of the Sugar House Business District are: 2100 South from 900 East to 1300 East;Highland Drive between Ramona Avenue and Interstate 80;and Wilmington Avenue from Highland Drive to 1300 East Street. , The current ordinance requires vendors to obtain a base business license fee and a revocable land use permit from the City.The base business license fee is$70 and is collected by the Building Services and Licensing Division.The revocable land use permit fee is$175 and is collected by the Property Management Division.According to the Administration,when vending carts first were initiated the$175 fee was half the standard fee charged for any encroachments on the public right of way and sidewalks. Cart vendors also are required to obtain liability and property damage insurance if they locate on public property. Cart vendors also are limited in where they can locate. According to Section 5.65.120: A. No more than one vending permit operating area shall be allowed for each three hundred thirty feet of block frontage on Main Street between South Temple and 400 South.On other blocks,one permit shall be allowed per block face except that if the block face exceeds six hundred sixty feet,one permit shall be allowed for each additional six hundred sixty feet of block frontage. 2 B. There shall be two permit operating areas each allowed in Washington Square and Pioneer Park which shall include the adjacent sidewalk permit operating areas.There shall be one vending cart allowed in Dinwoody Park which shall include the adjacent sidewalk permit operating area. C. Vending carts may be located on private plazas and private open space within the expanded central business district.No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. In addition,vendors are limited to selling three things: • Food for immediate consumption, including beverages. • Inflated balloons. • Fresh-cut flowers. A vendor also can sell inflated balloons and fresh-cut flowers from the same cart. PROPOSED AMENDMENTS Perhaps the most significant change proposed involves where vendors can locate carts. All versions of the proposed ordinance would increase the size of the Expanded Central Business District's western border from 400 West Street to 600 West Street.All versions also would • amend the City's zoning ordinance to allow vending on private property"only in zoning districts that permit vending carts as a permitted use,as defined by individual zoning district land use tables."All versions also would limit the temporary use of a vending cart on private property "only ... in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event." The zoning districts where vending carts would be allowed as a permitted use are MI and M2 manufacturing zones,all Downtown zones,the Sugar House Business District,Research Park,Business Park and G-MU Gateway mixed-use zones. According to the Administration,the reason for the proposed change involves clarifying ambiguities in the current ordinance. According to an October 2,2000,Planning Division memorandum: The majority of Planning Commission and neighborhood concerns involve the use of vending carts within neighborhood commercial zones(either as a permitted or conditional use).The original ordinance(now in effect)was silent regarding vending carts on private property outside of Downtown and Sugar House. Carts on private property have been allowed in all commercial zones where outdoor sales are permitted, and allowed conditionally in zones where outdoor sales are listed as a conditional use, according to administrative interpretation. Also,administrative interpretations of temporary uses on private property have led to some cases where vendors renew temporary use permits every 40 days instead of obtaining one- year licenses. It also has led in some instances to vendors locating in zoning districts where they otherwise would not be allowed. According to the Administration,the proposed ordinance 3 changes would codify where vending carts are allowed and end the need for administrative interpretation of the ordinances. In addition,proposed amendments would: • Allow vending only on sites 2 acres or larger and only as a secondary use to another primary commercial,office or industrial use. • Prohibit vending carts on vacant or residentially used lots,regardless of zoning district. • Prohibit vending carts from occupying required parking stalls on private property. • Prohibit locating a vending cart from interfering with the internal circulation of a parking lot. • Require that vending carts next to residential zones be subject to site review to insure compatibility. An earlier section of the proposed ordinance(5.65.110)would require that permit operating areas be located in non-residentially zoned areas within the Expanded Central Business District,the Sugar House Business District,city parks or Washington Square. The second-most significant change involves allowing vending carts in all City parks. Proposed amendments to Sections 5.65.110 and 5.65.120 would allow vending carts in"city parks,"and would allow the number of vendors in city parks and Washington Square to be determined by administrative policy." According to a Planning Commission staff report contained in the transmittal: Vending carts are being proposed to be allowed in parks,consistent with an administrative approval process.The former ordinance had conflicts such as specifically allowing vending in Washington Square,yet the City had a prior contract with a food vendor in the building,which caused friction. Conversely,the City Parks Department wishes to occasionally allow vendors at ball games.This ordinance change will allow the latitude to determine policy for individual parks. One question the City Council may wish to consider is whether any administrative policy has been developed to address vending carts in parks.Another question the City Council may wish to consider is whether there are any parks in the City where vending carts should not be located. It should be noted that Sugar House Park technically is not a City park. Activities in Sugar House Park are overseen by the Sugar House Park Authority. A third proposed change(Section 5.65.030)involves eliminating the existing$175 fee for an annual revocable land use permit and instead determining the fee by administrative policy. According to the September 27,2000,Planning Commission meeting minutes,eliminating the $175 fee was proposed, "so that the fee may be determined by administrative policy for each location. This gives the administration latitude to adjust fees according to sites." Two questions the City Council may wish to consider are: Has the Administration determined criteria for setting fees for the land use permit?Is there value in retaining a uniform fee for all sites? 4 A fourth proposed change involves Section 5.65.100.As noted earlier in this memorandum,the current ordinance limits items vendors can sell to three things:Food for immediate consumption,including beverages;inflated balloons;and fresh-cut flowers.A vendor also can sell inflated balloons and fresh-cut flowers from the same cart. The proposed ordinance would allow vendors also to sell"daily or monthly news publications."In addition,a vendor could sell any combination of the four items or all of them from one cart. A fifth proposed change involves Section 5.65.040.The proposed amendments: • Would eliminate a requirement that vendors provide"certified"copies of"all permits required by the State or local health authorities."The proposed amendment would require only copies of the permit. • Would appear to make optional"detailed scale drawings"of a vending cart plus "material specifications,and in isometric drawing in color of at least two views showing all four sides of the vending device and any logos,printing or signs ... incorporated and utilized in the color schemes"in a vendor's application for a regulatory permit. One question the City Council may wish to consider is:What would be an acceptable alternative to the current requirement? A sixth proposed change actually involves retaining the existing ordinance's language for the spacing of carts in Section 5.65.120.The"Administration endorsed Ordinance"proposes to keep the spacing of carts at two per block face on Main Street between South Temple and 400 South streets and one per block face on other blocks.The proposed ordinance recommended by the Planning Commission reads,"No more than five vending permit operating areas shall be allowed per block face ..." The difference in the versions of the proposed ordinance appears to stem from an April 19,2001,discussion among Planning Commission Members on how many vending carts might be ideal to make Main Street more vibrant,according to Planning Commission meeting minutes. A seventh proposed change involves design requirements for vending carts in Section 5.65.140.The proposed changes would increase the area where a vending cart can locate from 24 square feet to 34 square feet; increase the length of a vending cart from six feet to eight feet;and allow vendors to have three coolers and one water container instead of only one cooler. 5 Here's a list and number of vending carts operating in the streets. ACTIVE VENDING CARTS'SITES 1. ACOSTA—3 E&F 2. AMARAL— 16F& 16E 3. AMZA M-AHMD—57G&H 4. BATALLA— 13D& 13C 5. CORTEZ—SITE 12 IN SUGARHOUSE DISTRICT 6. GONZALES—42 A&B 7. GONZALES—71D&71C 8. KOTLER— 69 E&F 9. M.FLORES—59A&59B 10. MENDOZA—21 A&B 11. MORENO-3 C&D(WILL MOVE DUE TO CONSTRUCTION), 75 H;58 G&H 12. POULSEN 76 G&H 13. QUICKIE CARTS—79H, 74F,75E, 68C,57E (WAITING FOR LARRY'S SIGNATURE) 14. RAMOS—50A&50B 15. ROSAS— 16B 16. SANCHEZ-75 A&B 17. SANCHEZ JAVIER— 16 C&D Prepared by James Benton 04/04/2002 Page 1 Sidewalk Vending Carts ID4 RENEW NAME # STREET BI ck# PHONE Comments Cart# 581 8004 04/05/02 LIZANNES 400-499 S West Side 200 E 38A&B 205-6677 0963 581 1125 02/01/021SALT LAKE KITCHEN 0-99 E South Side 200 S 57G&H 328-0606 0956 581 8079 09/19/02I BURRITOS CALIFORNIA 51 -99 W North Side 200 S 69C 347-1273 0417 581 7756 09/01/01 ;ANGELINAS FOOD SERVICE 100- 199 E North Side 200 S 71C&D 531-2661 0957 581 424 03/15/03;QUICKIE CARTS 100-150 W North Side 200 S 68C 554-1535 0424 581 7829 03/10/02IANGELINAS FOOD SERVICE 400 -499 S West Side 200 W 42A&B 531-2661 0959 581 7966 12/14/01 TACO SANTA TERESA 2 1040-1099 E South Side 2100 S 12G&H 963-8041 Sugarhouse 581 8114 12/01/02'PEDROS 1040-1100 E South Side 2100 S 12 557-8992 Sugarhouse 0420 581 8124 12/01/02 MAMA CHANAS BAJA GRILL 1300 E West Side 2100 S 8 688-8664 Sugarhouse 0421 581 8049 07/26/02 SUGARHOUSE BARBEQUE CC 55 W 300 S Parking Lo 463-4800 14 Temp 581 7963 12/06/01 MI LUPITA 300-399 S West Side 300 W 48A&B 595-8636 581 7936 10/01/01 1GUS MEXICAN FOOD 774 S 500 W Private Pr 524-0695 581 8055 08/06/02'A AND J FOODS 351 -399 W North Side 600 S 30D 532-1895 0302 581 7920 08/30/01 RICOS TACOS 100- 199 E North Side 700 S 20C&D 883-0124 581 8152 02/09/03 EL TORO 1 -99 E North Side 800 S 16A&B 349-5519 0423 581 8104 11/06/02;ANGELINAS FOOD SERVICE 100- 199 W South Side 800 S 5G&H 531-2661 0419 581 7984 01/31/02 SAVORY TACO 200-299 W South Side 800 S 6G&H 967-1185 Cart stole 581 8011 05/01/02 TACO DEL RANCHO 200 299 W South Side 800 S 6G&H 759-2232 581 7868 05/11/01 TACO SANTA TERESA 100 - 199 E North Side 900 S 2C&D 359-2411 0954 581 8019 05/07/02'VICTORS TACOS 200-299 W North Side 900 S 6C&D 243-4565 581 7835 03/01/02 TACOS COLIMA 79 S 900 W Corner 668-8713 0960 581 8005 04/10/02'RICOS TACOS 2195-2225 S West Side Highland 19 604-4803 Sugarhouse 0958 594 9593 02/02/02 WORLDWIDE INDUSTRIES INC 1 -50 S West Side _Main St 76A 304-9964 I 581 8017 05/03/02 EURO CHURRO 100- 150 S East Side Main St 70F 750-0815 0223 581 7949 11/06/01 EL TACOTOTE 1175 S Main St NateWad(366-9078 0955 581 8028 05/29/02''VERACRUZ 250-299 S West Side Main St 40B 232-7164 0222 581 7970 12/26/01 A N J'S CREATIVE CRAVINGS I 251 -299 S East Side Main St 57E 523-0222 581 8166 03/15/03,QUICKIE CARTS 251 -299 S East Side Main St 57E 554-1W 0426 581 8165 03/15/03'QUICKIE CARTS 51 -99 S East Side Main St 75E 554-1535 0425 581 7620 09/01/01 TACOS MI FOVARITO 700-799 S East Side Main St 16E&F 956-0273 0952 581 7843 04/01/02 EL PAISA 800 -899 S East Side Main St 3E&F 531-0795 0951 581 8073 09/14/021JOES TACOS 877 S Main St Auto Delu 347-0697 581 7930 09/22/01 I EL TACOTORRO#2 875 W North Temple David Ear 508-1223 581 8100 10/25/02 RIGOBERTO FLORES 910 W North Temple 'Cleaning 913-9712 0961 581 7937 10/11/01 COCOA TO GO 0-99 South Side South Temple 76G&H 532-3650 599 9643 04/06/01 'SWEET TREATS 100- 199 W South Side South Temple 77G&H 295-3523 1581 8163 03/15/03;QUICKIE CARTS 300-350 W South Side South Temple 79H 554-1535 0427 581 81641 03/15/03;QUICKIE CARTS 1 - 50 S East Side State St 74F 554-1535 0428 1 581 8037, 07/09/02 ATLANXOCHITL 1 -99 S West Side State St 75A&B 487-6520 0301 747 0239 08/16/01 PAUL RAMSEY 1302 S State St Waynes-516-5664 45 Day Temp 581 7796, 02.2,ANGELINAS FOOD SERVICE 150- 199 S East Side Stag 71E 531-2661 0962 , Prepared by Jai"Benton 04/04/2002 ' Page 2 ti 581 8063 08/01/02 EL NOPALITO 600-699 S West Side State St 21A&B 840-5253 0321 581 7814 02/01/02 TACOS DON RAFA 700-799 S West Side State St 16A&B 484-9798 0953 581 8064 08/01/02 JOHNNY'S DOGS 151 - 199 S West Side West Temple 68B 688-1077 0322 Discussed with Edna and all carts with have Vending Cart code: 1206-11 to search for. Note: Along Main St. 2 Carts are allowed per block face from South Temple to 400 S, all others only 1 per block/660 feet. , , / _ _ _Ns__ ,_______j r / - J ., NORTH TEMPLE ST SOUTH TEMPLE ST / 200 S; __ ,� o I _ � _ _ ---1I - q�I`r ca W I 17 - I , ,I I o I -400S ��' ___ - �_ ,600 S -_ _ ,,, ,== „ II I 1 _� $oo s I 900S- I l- _ 1J 1 \' J I HN �`� (-1 I N_ 12— I r w_ a a N I l 11300 S . �1 in W_ W 1 • 1 1-8'— I I W 1- 1700 S: c /111 ' o �� CI) I I COI V -� , I I / I H �^- / c - — -- RAMONA AVE- �M �_ _ � I 2100 5-- iivhi s y WILMINGTON 1-80 —2 �`.� O� I - 0 I r f I SIDEWALK VENDING 1 Current Area Where Vending Carts are Allowedq )1 SIDEWALKk,:r.,%_...VM ' VENDING } tasS Fmmxomx 7 h �Y rroxoxix = 011 r • MAP LEGEND x -Current Area Where Vending Carts are Allowed I�aoxw,m ys 1 :I Proposed Area Where Vending Carts Would Be Allowed ' r 1 L� Coral pOArs propetr9 y� 9111miun:\1, ..I1=11L11�1 IL I1�'i o II ., V„l �IL �b .JL1__j"jftI1b, . ev s�_ Iw ■',I����•( ` l� � U9iio il1� .-: — Ir --tea z ■ .� ��, s ti I�� _ - ' ��`",�- 11��❑: a 5 k ■1i■■■M1111 04 ,h Ai!1 ii�.-� T11���❑ ■■IIn1�11111�Y1 ���: 3 111!■■■i7111 u,..o w aauuja1111111110';16:1111pic.k(111;7711111.: cie t. � 11 N1■f11■11 =7 1 t L!'L. 111=1 c� o [ 11 IIIn11111■11111' o® yi'. ■■ ■■■.■■ CII111111!■1111■■■ wvemiew �- cr�i 1 i 4 u1, i .l Y-1 11'1111aiimm!_!��f III11 GLIFOxlM�VE *r Yd' ' . '" .. �,A i ,e[- - I ,ik��-.: , �■ �T*�...Iri �� III iiii���E7�ifink s V...711,--kftki;°:k-'. .,,,,I'':1:::;4''';.k> >a'�. +ry"43 �1�1 F 1:::1111�IJ �_ ��C=�ca 11 Aril:rirhill ,L,: 4* '. r um wn, is : ., i1!'LiI -!! $i11P 11 el 1 t I�Fi � .-,„ iii 1 1 IIII ...._ . . e1.,.., 1.di11���'II . TM J i Note:The proposed area includes the following zoning districts(CSHBD,D-1, D-2, D-3, D-4, G-MU, RP, BP,M-1, M-2) I �_, HYK-UJ-LUUL lUt IL;41 rfl UN1V Ur UIHH UHtfIIbIKT 1-HA NU. t1UI VIo4J3 _. -- --- . r, uLiuz Dear Councilmember, C 7` We would appreciate your vote inthe matter of moving vending carts to the original locations as approved by the Planning Commission on Oct. 7th 2000. We feel that would help in enforcem nt of health concerns — as well as other concerns listed below. Thank You. Concerned Citizens Major Concerns Regarding Vending Carts I.Location: According to original proposal carts were to be above Sixth West to Third East and from South Temple to Ninth South with the idea in mind to help that workers downtown could get a quick lunch. We would like the original proposal to stay in place and not put carts in neighborhood areas. 2. We are concerned about health issues such as,the lack of Liability Insurance, food handlers permits,workers not wearing gloves while serving food or hair nets,Inadequate restroom and hand washing facilities. These are of major concern to us especially with the world coming here in 2002. 3. Inspections: We feel that inspecting these carts twice a year is not enough. If the carts were kept within the boundaries,that were set in the original proposal we feel that this would make it easier to inspect the carts at least once a month. If we let these carts go whereever they want,it will be hard for the inspectors to find them,meaning possibly no inspections and with the world coming here in 2002 the chance of a possible disease outbreak is a very real possibility. 4. Fee's: We feel that the carts should pay more than the S175.00 a year, as a regular restaurant has to pay many times more than that and abide by strict enforcement of business license laws and health codes. The carts need to pay sales taxes,get business licenses,food handlers permits, insurance,and and stricter health codes followed. 5. Restaurants and Stores: No carts within a certain amount of space from a restaurant or store,serving a similar type of food. Weeks, Ru sell From: Ferguson, Boyd Sent: Monday,April 08, 2002 1:59 PM To: Weeks, Russell — Cc: Cutler, Roger; Spendlove, Larry Subject: Sidewalk art ordinance Russell: I read you memo to the Council about the ordinance regulating sales of artwork on sidewalks. I want to point out one thing that you should consider. In you paragraph about court cases, you summarized Bery v. City of New York as holding that a requirement that the artists be licensed constituted an unconstitutional infringement on their First Amendment rights. That is correct, but doesn't tell the entire story. Some regulations are per se unconstitutional. For example, viewpoint discrimination is always unlawful. On the other hand, some regulations are struck down simply because they do not satisfy time, place, and manner rules. A city can, under the Constitution, enact content-neutral time, place, and manner restrictions on speech so long as the restrictions (1) further a significant governmental interest, (2) are narrowly tailored to advance that interest, and (3) leave open adequate alternative means of communication. In Berv,the court did not hold that a permit requirement on artists is per se unconstitutional. Instead, the court ruled that the particular ordinance under review was not narrowly tailored (due to the limit on the number of permits the city would issue,the ordinance effectively barred all artists from selling their art), and it did not provide adequate alternative locations for sales of art. In other words, it is possible for a city to craft a constitutional permit requirement on art sales. In the 1998 case of Lederman v. Giuliani,the court, in a constitutional analysis, upheld a permit requirement for sales of art in parks. It distinguished Berv, holding that the ordinance in Lederman (which involved a permit lottery system)was narrowly tailored and allowed adequate alternative means for communication. (It is true that in 2001 the same judge held that the ordinance in Lederman should be read to not require a license for sidewalk artists(because they couldn't be treated worse than book sellers), but the court did not decide the case on constitutional grounds- it was a case of statutory interpretation). In sum, the Council should not be given the impression that there is no way for the City to constitutionally require a license for sidewalk artists. There is a way. The City simply has to do it right. Boyd Ferguson MEMORANDUM DATE: April 5,2002 TO: City Council Members FROM: Russell Weeks RE: Proposed Ordinance Relating to Sidewalk Entertainment and Art Displays CC: Cindy Gust-Jenson,Rocky Fluhart,Margaret Hunt,David Dobbins, Stephen Goldsmith,Nancy Boskoff,Gary Mumford,Janice Jardine This memorandum addresses a revised proposal by the Administration to enact a new ordinance relating to sidewalk entertainment and art displays.The proposed ordinance would allow artists to display their works or perform in certain zoning districts in Salt Lake City and in City parks. The Administration proposed the ordinance after local artists approached the Mayor and asked that the City take an active role in encouraging artists to exhibit their artwork or perform on city Streets in commercially zoned areas and in parks.The proposed ordinance would allow artworks to be sold,and people performing to be compensated through donations from people viewing the performances.The proposed ordinance would require that artwork for sale be the original works of the artists selling them. OPTIONS • Adopt the proposed ordinance with new language suggested by The Downtown Alliance and supported by the Administration. • Adopt the proposed ordinance as written. • Do not adopt the proposed ordinance. POTENTIAL MOTIONS • I move that the City Council adopt the proposed ordinance with an amendment to Section 14.38.190,titled Special Events, to require artists to request permission from holders of special event permits to remain within the boundaries of special events during the events. • I move that the City Council adopt the proposed ordinance as written. • I move that the City Council not adopt the proposed ordinance. MATTERS AT ISSUE/POTENTIAL QUESTIONS FOR CONSIDERATION In reviewing the most recent draft of the proposed ordinance The Downtown Alliance suggested that Section 14.38.190,titled Special Events, contain language requiring artists to 1 request permission from holders of special event permits to remain within the boundaries of special events during the events. Aside from that,The Downtown Alliance supports the proposed ordinance,as does the Business Advisory Board.The Administration submitted copies of the proposed ordinance to both organizations at the City Council's request during a briefing in December. Paragraph I of Section 14.38.140,titled Location Restrictions,limits artists and entertainers to staying at one location for no more than seven consecutive days. Other changes to the proposed ordinance since it first was presented include: • Requiring artists and entertainers apply for and pay for a permit to display and sell artwork or perform on sidewalks and in parks.The permit would cost$5 and be renewed annually. • Issuing civil citations"by an authorized City official"for violations of the ordinance. Three or more violations within a one-year period would constitute a misdemeanor. • Allowing the City to impound a display"after consultation with a City Attorney,"if an artist is issued a citation or"fails or refuses to remove any such display"in violation of City ordinances. BACKGROUND By way of background,City Council staff has included the following information taken from previous staff reports and memoranda. The proposed ordinance would allow artists to exhibit and sell or perform in the following commercially zoned districts outlined in the City's zoning ordinance: Neighborhood commercial,community business,community shopping, corridor commercial, Sugar House business,general commercial,central business,downtown support, downtown warehouse/residential,downtown secondary central business,and Gateway mixed-use. The ordinance also would allow artists to exhibit and sell or perform in"areas within City-operated parks specifically designated by the Director of Public Services." CURRENT ORDINANCES To a large extent,current City ordinances prohibit the sale or display of items on city sidewalks and parks. Ordinance 5.64.010,titled Displaying Materials On Streets Permit Required-Limitations, reads in part: It is unlawful for any person to engage in or cany on any business or occupation upon any street in the City,except in,upon or along any of the streets designated in this Chapter.No person shall,from any vehicle,stand or structure stationed,placed or located upon any street in the City by display or any advertising matter of any _ goods,wares,merchandise,fruits or vegetables in or about such vehicle, stand or 2 structure or about such street,invite travelers upon such streets to transact business or purchase any such wares then displayed upon or near such street,nor shall any person leave or permit to remain upon any street in the City any goods,wares, merchandise,fruits or vegetables displayed or offered for sale. • Ordinance 15.08.170,titled Selling Merchandise,reads,"No person shall sell or offer for sale any merchandise,article or thing whatsoever,without the written consent of the mayor within any park or playground,or within a distance of sixty feet(60')of any boundary line of any public park or playground." However,current ordinances allow exceptions. Ordinance 5.64.010 allows the Mayor to grant written permission to people who own or possess real property abutting"any street"the use of"a portion of the street contiguous to such property to display or sell merchandise for such period of time as is specifically stated in such written permit."Chapter 14.36,titled Newsracks, allows newspaper companies to place newspaper racks on city sidewalks in an"Expanded Central Business District"and other locations.The ordinance requires the companies to obtain permits and pay a fee of$5 "per newsrack"to"partially defray the city's cost of reviewing the certificate and the information contained therein."Chapter 5.65,titled Sidewalk Vending, allows the sale of food,balloons and flowers from vending carts in an"Expanded Central Business District,the Sugar House Business District,Pioneer Park,Dinwoody Park,and Washington Square."Vendors are required to obtain a business license and a"lease or revocable land use permit for the use of City property."The lease or land use permit is$175.The business license fee is$70.In addition, cart vendors are required to obtain liability and property damage insurance.Finally,cart vendors are limited in where they can locate.According to Section 5.65.120: A. No more than one vending permit operating area shall be allowed for each three hundred thirty feet of block frontage on Main Street between South Temple and 400 South.On other blocks,one permit shall be allowed per block face except that if the block face exceeds six hundred sixty feet,one pernut shall be allowed for each additional six hundred sixty feet of block frontage. B. There shall be two permit operating areas each allowed in Washington Square and Pioneer Park which shall include the adjacent sidewalk permit operating areas.There shall be one vending cart allowed in Dinwoody Park which shall include the adjacent sidewalk permit operating area. C. Vending carts may be located on private plazas and private open space within the expanded central business district.No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private playas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. PROPOSED ORDINANCE The proposed ordinance would allow a maximum of three artists or performers for every 330 feet of block frontage.According to Planning Commission meeting minutes,the ordinance would allow six artists per block face or 12 artists on both sides of a street. As said in the Administration's transmittal letter, "locations designated by the ordinance may be occupied by interested parties on a first-come, first served basis. Other pertinent regulations in the proposed ordinance: 3 LOCATION RESTRICTIONS No artist may perfonn or display in any of the following places: • Within 10 feet of the intersection of the sidewalk with any other sidewalk, marked or unmarked crosswalk or mid-block crosswalk. • Within the inner 8 feet of any sidewalk over 12 feet in width,"inner"meaning as measured from its farthest point from the curb. • Within the inner three-quarters of the width of any sidewalk less than 12 feet in width,but in no event nearer than four feet from the inner edge of any sidewalk. • Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line. • Within five feet of any handicapped parking space,or access ramp. • Within 10 feet of any bus stop. • Within five feet of any office or display window. Sidewalk artists also may not locate within 100 feet on the same linear block face of a door to a business displaying or selling artwork,if that business has direct access to the sidewalk. It should be noted that the above location restrictions to a large extent mirror the restrictions on sidewalk vending carts in Chapter 5.65. REMOVAL OF DISPLAYS AND HEARINGS The proposed ordinance allows the City to remove displays of artwork in emergencies or in instances where the City detennines that a display does not comply with the proposed ordinance or other City ordinances. HOLD HARMLESS CLAUSE Section 14.38.050 of the proposed ordinance says in part,"Anyone using Available City Property for sidewalk entertainment or sidewalk art display shall indemnify,defend and hold the City and its officers and employees harmless for any loss or damage,including attorney's fees, arising out of the use of such property." COURT CASES Other apparent reasons for the proposed ordinances are two court decisions. One decision was from the U.S. Second Circuit Court of Appeals in 1996 in a lawsuit by painters and other artists against New York City.In Bery vs. the City ofNew York the court determined that New York City's"requirement that appellants(the artists)be licensed in order to sell their artwork in public spaces constitutes an unconstitutional infringement of their First Amendment rights."New York City appealed the decision to the U.S. Supreme Court,but the court declined to hear the appeal. In another decision earlier this year,Lederman vs. Rudolph Guiliani and the City ofNew York, the U.S. District Court for the Southern District of New York determined that painters and other artists did not need a license or permit to sell their work in land administered by the New York City Parks Department because New York City law and regulations exempted book vendors from having to obtain licenses and permits to sell books. The court held that"art 4 vendors are subject to only those vending restrictions which are applicable to book vendors." DISCUSSION It should be noted that,according to research provided by the Administration to City Council staff,the cities of Boise;Portland;Cambridge,Massachusetts;and the Pike's Place Market Historical Commission in Seattle required people who sell items on sidewalks to obtain permits or licenses.The Boulder,Colorado,Downtown Management Commission also required permits for most activities.The Boulder Commission exempts the permit requirement in the Boulder Mall downtown"for performers who do not use amplification,juggle fire or sharp objects,or use equipment over 6-feet above the Mall ground."Performers who do those things are required to obtain a permit and"must have liability insurance in the amounts of $150,000/$600,000 listing the City of Boulder as an additional insured party." It is likely that during City Council consideration of the proposed ordinance that someone will raise the U.S. Second Circuit Court of Appeals decision in Bery vs. the City of New York.No one on the City Council staff is a lawyer,so no one on the staff feels qualified to outline implications that case,and the U.S.District Court decision in Lederman vs. Rudolph Guiliani, may have on the proposed ordinance and the City. However,it is interesting to note that in a footnote on Page 10 of the attached Bery case the appeals court says: Even if the City were to adhere to a licensing system to regulate street art sales, there exist less intrusive means of issuing the licenses:one amicus suggests a rotating first-come,first-served lottery system for assigning a limited number of licenses ...the system employed by San Francisco might provide a model;certain areas are set aside for art sales and a weekly lottery assigns spots.The district court made no mention of these potential alternatives. The San Francisco Street Artist Ordinance might be considered a benchmark ordinance because it appears to have been in effect for more than 25 years.It places the administration of the street artists program under San Francisco's Arts Commission and the commission's executive director.It requires a permit,and allows the San Francisco Board of Supervisors to designate areas"in or on any public street or public place where any street artist or craftsman certified pursuant to the provision of this ordinance may sell ... any art of craft item of his own creation."According to the Administration,one downside to the San Francisco ordinance requires a significant staff and budget to administer. 5 03/27/02 16:08 FAX 3595136 DOWNT0WNALLIANCE EI02 rja Downtown Alliance • SALT LAKE CITY • SALT LAKE 2002 9 Exchange Place,Suite 401 • `C7C7' Salt Lake City,Utth Rpiii VISA t:Ro1.359.5318 f:821.'59.5136 fir.+reae� www.downtownsic.org- tttttlit l�tl@I warweuoeiuosum David Dobbins DCED Salt Lake City Corporation 450 S.State Street SLC, UT;Mill Dear David, March 27,2002 Thank you for including the Downtown Alliance in the discussion regarding the latest draft of the ordinance that regulates sidewalk entertainers and artists. We applaud the efforts of Salt Lake City Corporation's to encourage artists to display and perform in the central business. These vendors and performers add a vitality and inter st to our large city blocks and enhance the goals the Downtown Alliance shares with the City in increasing activity within the CBID. In reviewing the ordinance, there is one section that we would like to see strengthened to protect special event permitted areas. Section 14.88.190 states.the `City may require one or more of the vendors to relocate' during special event permit times. It is essential to the management of any special event that the permit holder has sole discretion to control the permitted area.There are formal application processes along with reservation policies and fees that would be seriously disrupted if city lionised vendors were allowed to remain in a location during a permitted special schedule. The Downtown Alliance requests Section 14.38.190(Special Events)of the ordinance include a requirement that the vendor request permission from the special event permittee to remain in a location during a special event. If they have not requested this location from the special event permit holder then they will be required to move to locations outside the special event permit area or within the free speech areas • established by the Salt Lake City Parks Division. The Salt Lake City Police would need to be available to enforce this removal if an understanding was not made between the special event permit holder and the vendor. With a more detailed description of how city licensed street vendors would be controller.during special events, the Downtown Alliance will support this ordinance. Thank you for your help in strengthening the language in this ordinance to ensue the stability of the management of special events in downtown Salt Lake City. We look forward to the vitality that these artists and performers may bring. Sincerely, Tracy vox:Herten Special Event Director Downtown Alliance business vision community SALT LAKE CITY ORDINANCE No. of 2001 (Sidewalk Entertainment and Art Displays) AN ORDINANCE ENACTING CHAPTER 14.38, SALT LAKE CITY CODE, RELATING TO SIDEWALK ENTERTAINMENT AND ART DISPLAYS. Be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. That Chapter 14.38, Salt Lake City Code, pertaining to Sidewalk Entertainment and Art Displays be, and the same hereby is, enacted to read as follows: Chapter 14.38 SIDEWALK ENTERTAINERS AND ARTISTS Section 14.38.010 Purpose and Intent of Provisions. The City Council hereby finds and declares: A. Certain Salt Lake City ordinances (City Code § 5.64.010, et al)prohibit the conduct of any business or the sale of any goods or merchandise from any stand or structure upon certain streets or sidewalks of the City. B. The City has by ordinance provided for certain exceptions to the foregoing prohibition, including exceptions for sidewalk vending carts (Chapter 5.65), sidewalk sales by abutting businesses (§ 5.64.010 C), and news racks (Chapter 14.36). C. It is in the public interest to encourage artists' self-expression and to provide opportunities for the public to experience the artists' work. D. It is in the public interest that the First Amendment rights of visual artists immediately be protected by allowing them to display or sell their works on the sidewalks of the City and that legislation be enacted modifying the City ordinances to provide for and establish regulations governing such displays. E. It is also in the public interest that the First Amendment rights of entertainers, who wish to perfoiiii, whether gratuitously or for compensation, be protected by allowing them to perfoitli on the sidewalks of the City and that legislation be enacted to provide for and establish regulations governing such performers. F. The City has an obligation to the general public to ensure reasonably unobstructed passage over the public ways in a clean, safe and orderly manner. G. Inappropriately located entertainment or art displays can pose a significant hazard and annoyance to pedestrians, abutting landowners, vehicles, and the maintenance of public improvements. H. The above strong compelling governmental interests compete against public interests in freedom of expression and the private commercial interests of entertainers and artists. The City desires, in the time, place and manner regulations codified in this chapter, to balance those interests. Section 14.38.020 Title of Ordinance. The ordinance codified in this chapter may be referred to as the Salt Lake City Sidewalk Entertainment and Art Displays Ordinance. Section 14.38.030 Definitions. For the purpose of this chapter, the following words shall have the following meanings: A. "Artist"means a sidewalk entertainer or a sidewalk artist. B. "Available City Property"means: (1) portions of publicly owned sidewalks and park strip areas within the following commercially zoned districts: 2 21A.26.020 CN Neighborhood Commercial District 21A.26.030 CB Community Business District 21A.26.040 CS Community Shopping District 21A.26.050 CC Corridor Commercial District 21A.26.060 CSHBD Sugar House Business District 21A.26.070 CG General Commercial District 21A.30.020 D-1 Central Business District 21A.30.030 D-2 Downtown Support District 21A.30.040 D-3 Downtown Warehouse/Residential District 21A.30.045 D-4 Downtown Secondary Central Business District 21A.31.020 G-MU Gateway-Mixed Use District, but not including landscaped areas in the middle of any street; and (2) areas within City-operated parks specifically designated by the Director of Public Services who, in making such designation, shall take into consideration the interests: (a) of providing artists reasonable opportunities for self-expression, (b) of providing reasonable opportunities for the public to experience the artists' work, (c) of the public to peaceably enjoy the City's parks, and (d) of adequately maintaining park vegetation and properties C. "Display" includes display for sale or display without charge. D. "Perform" includes perfoiiuing for compensation or performing without charge. E. "Sidewalk entertainer"means a person, or group of persons together,who perform(s) sidewalk entertainment. 3 F. "Sidewalk entertainment"means vocal, instrumental, or other entertainment perfoiiued personally by a person or a group of persons together, upon publicly owned sidewalks and park strip areas, or in City-operated parks. G. "Sidewalk art"means original works of art displayed upon publicly owned sidewalks and park strip areas, or in City-operated parks. It shall not include: (1) any artwork produced by any person other than the sidewalk artist displaying the artwork, (2) any artwork purchased or taken on consignment and held for resale, or(3) any clothing other than jewelry and other accessories, or hand painted or tie-dyed garments, which, if containing mass-produced or commercially manufactured parts, such mass-produced or commercially manufactured parts have been assembled by the artist and are not the predominant element of an item sold. H. "Sidewalk artist" means any person who displays his or her own sidewalk art. Section 14.38.040 Permit Required. It is unlawful to perform entertainment or to place or maintain a display of art on property owned by the City or on publicly owned sidewalks without obtaining a permit for providing entertainment or selling artwork on such property pursuant to the provisions of this chapter. Section 14.38.050 Yearly Permit or Certification. Anyone desiring to use Available City Property for entertainment or art sales shall, prior to any initial use, and annually thereafter, submit the required permit application or certification as specified below. Section 14.38.060 Permit Application. An application for a permit to use Available City Property for entertainment or art sales ("permit") shall be filed with the City's property manager upon a form provided by the property manager and shall include the following: 4 A. The name, address, and telephone number of the applicant; B. The name, address, and telephone number of a responsible person whom the City may notify or contact at any time concerning the applicant's display; C. A description of the type of entertainment to be perforliied or artwork to be displayed for sale; Section 14.38.070 Permit Fee. The permit application shall be accompanied by a fee in the amount of five dollars to partially defray the City's cost of reviewing the peiinit application. Section 14.38.080 Issuance of Permit. The property manager shall issue a permit upon receipt of a completed application and receipt of the application fee. In the event the peirnit is issued for use of space within parks operated by the City, the property manager shall coordinate such issuance with and provide a copy of each such issued permit to the City's Director of Public Services. Use of space by a peiuiittee within a park operated by the City shall be subject to the designation of the Director of Public Services, in accordance with the standards set forth in Section 14.38.030B, or its successor. Section 14.38.090 Certification Application. For any subsequent year after a sidewalk entertainer or artist permit has been issued, the permittee shall, on or before the expiration of one year from the previous date of issuance, submit a certificate, on a foiiu to be provided by the City, which shall include any changes in the information provided to the City in the permit application, or shall state, if true, that there are no changes to the information previously provided. 5 Section 14.38.100 Certificate Fee. Accompanying the certificate filing shall be a fee in the amount of five dollars per year to partially defray the City's cost of reviewing the certificate and the information contained therein. Section 14.38.110 Displays and Performances Allowed Only in Specified Areas. A. Sidewalk art may be displayed, and sidewalk entertainment may be performed, only upon Available City Property. It is unlawful to display sidewalk art or perform sidewalk entertainment on publicly owned sidewalks, park strip areas, and City-operated parks that do not constitute Available City Property. B. Notwithstanding section A above, during the period from February 5, 2002 through February 27, 2002, except in Pioneer Park, sidewalk art may not be displayed, and sidewalk entertainment may not be performed, in the following area: from the north side of North Temple Street to the south side of 900 South Street, and from the east side of 200 East Street to the east side of I-15. Section 14.38.120 Hold Harmless. Anyone using Available City Property for sidewalk entertainment or sidewalk art display shall indemnify, defend and hold the City and its officers and employees hainiless for any loss or damage, including attorney's fees, arising out of the use of such property. This shall not extend to any claims of loss, damages or injury sustained by any person or persons, or damage to property and all expenses, including reasonable attorneys' fees, incurred thereby, resulting from actions or omissions without the artist's reasonable control. Section 14.38.130 Number and Spacing of Artists Per Block. The maximum number of artists that may display or perform at the same time on any three hundred thirty feet of block frontage is three. 6 Section 14.38.140 Location Restrictions. No artist may perfoiiii or display in any of the following places: A. Within 10 feet of the intersection of a sidewalk with any other sidewalk, marked or unmarked crosswalk or mid-block crosswalk; B. Within the inner 8 feet of any sidewalk over 12 feet in width, "inner"meaning as measured from its farthest point from the curb; C. Within the inner three-quarters of the width of any sidewalk less than 12 feet in width, but in no event nearer than four feet from the inner edge of any sidewalk. D. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; E. Within five feet of any handicapped parking space, or access ramp; F. Within 10 feet of any bus stop; G. Within five feet of any office window or display window; or H. In the case of sidewalk artists, within 100 feet on the same linear block face of a door to a business displaying or selling artwork, if that business has direct access to the sidewalk. I. At the same location for more than 7 consecutive days and not sooner than 7 days from the last date on which such artist shall have previously perfoinied or displayed at a particular location. Section 14.38.150 Space Restrictions. No artist may display artwork using the surface of the sidewalk or ground, or a blanket or board placed immediately on the sidewalk or ground or on top of a trash receptacle or cardboard box, to display merchandise. No artist display may exceed five feet in height from ground level or six feet in length. The display may not be less than 24 inches above the sidewalk or ground if 7 the display surface is parallel to the sidewalk or ground, and may not be less than 12 inches above the sidewalk or ground if the display surface is vertical. Where a rack or other display structure is placed on top of or above a table or other base, the size of the base shall not be less than the size of the display structure place thereon. Nothing shall be placed on the base so as to exceed the size limitations contained in this section. No artist displaying artwork or handcrafted items shall use any area other than that area immediately beneath the surface of the display space for the storage of items for display. Artists may have a container for tips, but may not harass or intimidate people for tips. All artwork, entertainment displays, stands, and other equipment and structures shall be removed from property owned by the City and from City-owned sidewalks between the hours of 11:00 p.m. and 8:00 a.m. Section 14.38.160 Rights Granted. The approval of any location for use for sidewalk entertainment or sidewalk art displays shall not be construed as granting the user any property right or interest to or in any property owned by the City. The rights granted by this chapter are subject to the provisions of this chapter and other applicable law. The sidewalk artist displaying sidewalk art shall be personally present at such display at all times when such art work is on display, except for fifteen minutes in every two-hour time period. No agent, employee or other representative shall sell the artwork of a sidewalk artist. No display shall be left unattended at any time. Section 14.38.170 Violation - Removal. If at any time it is determined by the City that an artist's use of Available City Property or the display placed thereon is not in compliance with the requirements of this chapter or other applicable law, an administrative citation, as provided by Chapter 2.75, shall be issued to the artist, by an authorized City official. If, after receipt of such citation, an artist fails or refuses 8 to remove any such display in violation, the City may, after consultation with the City Attorney or his/her designee, impound such display. Although prior notice of such impoundment shall not be required, the City shall take reasonable efforts promptly to notify the artist following the impoundment. The artist owning any impounded display shall be responsible for the expense of removal and storage of such display. If the owner fails to reclaim the impounded display and pay the expenses of removal and storage within thirty days from notice of impoundment, the display may be deemed unclaimed property and may be disposed of pursuant to law. If, in subsequent proceedings on the underlying citation before the administrative law judge, it is deteiiuined that the artist did, in fact, have a penult from the City at the time of impoundment, or that the City has made an error in impounding the display, the City shall, forthwith, at its own expense, replace the display at its location. Section 14.38.180 Emergency Removal. A. Removal. In the event that a City zoning inspector or the City police or fire department determines that the artist's use of Available City Property or the display placed thereon constitutes an immediate physical threat to public life, safety or health, the sidewalk entertainment or sidewalk art display may be removed by the City immediately without any prior notice or hearing. This provision shall not be enforced in any way related to the content or expression of the material displayed or distributed by the artist. B. Notice and Hearing. In the event of such an emergency removal the City shall immediately contact the artist or the artist's representative if the artist has filed with the City's property manager the name, address and telephone number of the artist's representative whom the City may notify or contact at any time regarding the artist's display. The City shall inform the artist or the artist's representative of the removal and the reason(s) therefore. If requested by 9 the artist or the artist's representative, the City shall hold an expedited hearing before the property manager to determine whether or not the removed entertainment or art display constituted an immediate threat to the public's life, safety and health. In the event that the property manager determines that the display did not constitute such an immediate threat, the City shall forthwith, at its own expense, replace the display at its location. C. Appeal. The artist or the artist's representative may appeal any decision or order to the mayor or the mayor's designee. Any appeal shall be filed in writing within 10 days of the decision and shall specify the basis for the appeal. The mayor or designee shall consider the appeal based on the written submissions. Section 14.38.190 Special Events The restrictions of this chapter notwithstanding, nothing herein shall prohibit the City from authorizing entertainers or vendors, other than those artists governed by this chapter,to conduct concurrent sidewalk entertainment, art displays, or vending operations within the expanded central business district, or such other areas as the City may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, City policy, or executive order as may be applicable. During such special event the City may require one or more artists under this Chapter to relocate and perfoiin or display art at another available location within the Available City Property during the period of such special event. Section 14.38.200 Penalties. Any violation of this Chapter shall constitute a civil violation and shall be handled as provided by Chapter 2.75. Three or more violations within a one-year period shall constitute a misdemeanor. 10 SECTION 2. This ordinance shall take effect immediately upon the date of its first publication. Passed by the City Council of Salt Lake City, Utah, this day of 2001. CHAIRPERSON ATTEST: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on Mayor's Action: ❑Approved ❑Vetoed MAYOR ATTEST: CHIEF DEPUTY CITY RECORDER SEAL APPROVED AS TO FORM Salt Lake City Attorneys Office Date 4 /S ? _— Bill No. of 2001. gv Published: G:\Ordina0l\Sidewalk Entertainment and Art Displays-1-15-02 clean.doc 11 SALT LAKE CITY ORDINANCE No. of 2001 (Sidewalk Entertainment and Art Displays) AN ORDINANCE ENACTING CHAPTER 14.38, SALT LAKE CITY CODE, RELATING TO SIDEWALK ENTERTAINMENT AND ART DISPLAYS. Be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. That Chapter 14.38, Salt Lake City Code,pertaining to Sidewalk Entertainment and Art Displays be, and the same hereby is, enacted to read as follows: Chapter 14.38 SIDEWALK ENTERTAINERS AND ARTISTS Section 14.38.010 Purpose and Intent of Provisions. The City Council hereby finds and declares: A. Certain Salt Lake City ordinances (City Code § 5.64.010, et al)prohibit the conduct of any business or the sale of any goods or merchandise from any stand or structure upon certain streets or sidewalks of the City. B. The City has by ordinance provided for certain exceptions to the foregoing prohibition, including exceptions for sidewalk vending carts (Chapter 5.65), sidewalk sales by abutting businesses (§ 5.64.010 C), and news racks (Chapter 14.36). C. It is in the public interest to encourage artists' self-expression and to provide opportunities for the public to experience the artists' work. D. It is in the public interest that the First Amendment rights of visual artists immediately be protected by allowing them to display or sell their works on the sidewalks of the City and that legislation be enacted modifying the City ordinances to provide for and establish regulations governing such displays. E. It is also in the public interest that the First Amendment rights of entertainers, who wish to perform, whether gratuitously or for compensation, be protected by allowing them to perform on the sidewalks of the City and that legislation be enacted to provide for and establish regulations governing such performers. F. The City has an obligation to the general public to ensure reasonably unobstructed passage over the public ways in a clean, safe and orderly manner. G. Inappropriately located entertainment or art displays can pose a significant hazard and annoyance to pedestrians, abutting landowners, vehicles, and the maintenance of public improvements. H. The above strong compelling governmental interests compete against public interests in freedom of expression and the private commercial interests of entertainers and artists. The City desires, in the time, place and manner regulations codified in this chapter, to balance those interests. Section 14.38.020 Title of Ordinance. The ordinance codified in this chapter may be referred to as the Salt Lake City Sidewalk Entertainment and Art Displays Ordinance. Section 14.38.030 Definitions. For the purpose of this chapter, the following words shall have the following meanings: A. "Artist" means a sidewalk entertainer or a sidewalk artist. B. "Available City Property"means: (1)portions of publicly owned sidewalks and park strip areas within the following commercially zoned districts: 2 21A.26.020 CN Neighborhood Commercial District 21A.26.030 CB Community Business District 21A.26.040 CS Community Shopping District 21A.26.050 CC Corridor Commercial District 21A.26.060 CSHBD Sugar House Business District 21A.26.070 CG General Commercial District 21A.30.020 D-1 Central Business District 21A.30.030 D-2 Downtown Support District 21A.30.040 D-3 Downtown Warehouse/Residential District 21A.30.045 D-4 Downtown Secondary Central Business District 21A.31.020 G-MU Gateway-Mixed Use District, but not including landscaped areas in the middle of any street; and (2) areas within City-operated parks specifically designated by the Director of Public Services who, in making such designation, shall take into consideration the interests: (a) of providing artists reasonable opportunities for self-expression, (b) of providing reasonable opportunities for the public to experience the artists' work, (c) of the public to peaceably enjoy the City's parks, and (d) of adequately maintaining park vegetation and properties C. "Display" includes display for sale or display without charge. D. "Perform" includes performing for compensation or performing without charge. E. "Sidewalk entertainer"means a person, or group of persons together, who perform(s) sidewalk entertainment. 3 F. "Sidewalk entertainment" means vocal, instrumental, or other entertainment performed personally by a person or a group of persons together, upon publicly owned sidewalks and park strip areas, or in City-operated parks. G. "Sidewalk art"means original works of art displayed upon publicly owned sidewalks and park strip areas, or in City-operated parks. It shall not include: (1) any artwork produced by any person other than the sidewalk artist displaying the artwork, (2) any artwork purchased or taken on consignment and held for resale, or(3) any clothing other than jewelry and other accessories, or hand painted or tie-dyed garments, which, if containing mass-produced or commercially manufactured parts, such mass-produced or commercially manufactured parts have been assembled by the artist and are not the predominant element of an item sold. H. "Sidewalk artist"means any person who displays his or her own sidewalk art. Section 14.38.040 Permit Required. It is unlawful to perform entertainment or to place or maintain a display of art on property owned by the City or on publicly owned sidewalks without obtaining a permit for providing entertainment or selling artwork on such property pursuant to the provisions of this chapter. Section 14.38.050 Yearly Permit or Certification. Anyone desiring to use Available City Property for entertainment or art sales shall, prior to any initial use, and annually thereafter, submit the required permit application or certification as specified below. Section 14.38.060 Permit Application. An application for a permit to use Available City Property for entertainment or art sales ("permit") shall be filed with the City's property manager upon a form provided by the property manager and shall include the following: 4 A. The name, address, and telephone number of the applicant; B. The name, address, and telephone number of a responsible person whom the City may notify or contact at any time concerning the applicant's display; C. A description of the type of entertainment to be performed or artwork to be displayed for sale; Section 14.38.070 Permit Fee. The permit application shall be accompanied by a fee in the amount of five dollars to partially defray the City's cost of reviewing the permit application. Section 14.38.080 Issuance of Permit. The property manager shall issue a permit upon receipt of a completed application and receipt of the application fee. In the event the permit is issued for use of space within parks operated by the City, the property manager shall coordinate such issuance with and provide a copy of each such issued permit to the City's Director of Public Services. Use of space by a permittee within a park operated by the City shall be subject to the designation of the Director of Public Services, in accordance with the standards set forth in Section 14.38.030B, or its successor. Section 14.38.090 Certification Application. For any subsequent year after a sidewalk entertainer or artist permit has been issued, the permittee shall, on or before the expiration of one year from the previous date of issuance, submit a certificate, on a form to be provided by the City, which shall include any changes in the information provided to the City in the permit application, or shall state, if true, that there are no changes to the information previously provided. 5 Section 14.38.100 Certificate Fee. Accompanying the certificate filing shall be a fee in the amount of five dollars per year to partially defray the City's cost of reviewing the certificate and the information contained therein. Section 14.38.110 Displays and Performances Allowed Only in Specified Areas. A. Sidewalk art may be displayed, and sidewalk entertainment may be performed, only upon Available City Property. It is unlawful to display sidewalk art or perform sidewalk entertainment on publicly owned sidewalks, park strip areas, and City-operated parks that do not constitute Available City Property. B. Notwithstanding section A above, during the period from February 5, 2002 through February 27, 2002, except in Pioneer Park, sidewalk art may not be displayed, and sidewalk entertainment may not be performed, in the following area: from the north side of North Temple Street to the south side of 900 South Street, and from the east side of 200 East Street to the east side of I-15. Section 14.38.120 Hold Harmless. Anyone using Available City Property for sidewalk entertainment or sidewalk art display shall indemnify, defend and hold the City and its officers and employees harmless for any loss or damage, including attorney's fees, arising out of the use of such property. This shall not extend to any claims of loss, damages or injury sustained by any person or persons, or damage to property and all expenses, including reasonable attorneys' fees, incurred thereby, resulting from actions or omissions without the artist's reasonable control. Section 14.38.130 Number and Spacing of Artists Per Block. The maximum number of artists that may display or perform at the same time on any three hundred thirty feet of block frontage is three. 6 Section 14.38.140 Location Restrictions. No artist may perform or display in any of the following places: A. Within 10 feet of the intersection of a sidewalk with any other sidewalk, marked or unmarked crosswalk or mid-block crosswalk; B. Within the inner 8 feet of any sidewalk over 12 feet in width, "inner"meaning as measured from its farthest point from the curb; C. Within the inner three-quarters of the width of any sidewalk less than 12 feet in width, but in no event nearer than four feet from the inner edge of any sidewalk. D. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; E. Within five feet of any handicapped parking space, or access ramp; F. Within 10 feet of any bus stop; G. Within five feet of any office window or display window; or H. In the case of sidewalk artists, within 100 feet on the same linear block face of a door to a business displaying or selling artwork, if that business has direct access to the sidewalk. I. At the same location for more than 7 consecutive days and not sooner than 7 days from the last date on which such artist shall have previously performed or displayed at a particular location. Section 14.38.150 Space Restrictions. No artist may display artwork using the surface of the sidewalk or ground, or a blanket or board placed immediately on the sidewalk or ground or on top of a trash receptacle or cardboard box, to display merchandise. No artist display may exceed five feet in height from ground level or six feet in length. The display may not be less than 24 inches above the sidewalk or ground if 7 the display surface is parallel to the sidewalk or ground, and may not be less than 12 inches above the sidewalk or ground if the display surface is vertical. Where a rack or other display structure is placed on top of or above a table or other base, the size of the base shall not be less than the size of the display structure place thereon. Nothing shall be placed on the base so as to exceed the size limitations contained in this section. No artist displaying artwork or handcrafted items shall use any area other than that area immediately beneath the surface of the display space for the storage of items for display. Artists may have a container for tips, but may not harass or intimidate people for tips. All artwork, entertainment displays, stands, and other equipment and structures shall be removed from property owned by the City and from City-owned sidewalks between the hours of 11:00 p.m. and 8:00 a.m. Section 14.38.160 Rights Granted. The approval of any location for use for sidewalk entertainment or sidewalk art displays shall not be construed as granting the user any property right or interest to or in any property owned by the City. The rights granted by this chapter are subject to the provisions of this chapter and other applicable law. The sidewalk artist displaying sidewalk art shall be personally present at such display at all times when such art work is on display, except for fifteen minutes in every two-hour time period. No agent, employee or other representative shall sell the artwork of a sidewalk artist. No display shall be left unattended at any time. Section 14.38.170 Violation - Removal. If at any time it is determined by the City that an artist's use of Available City Property or the display placed thereon is not in compliance with the requirements of this chapter or other applicable law, an administrative citation, as provided by Chapter 2.75, shall be issued to the artist, by an authorized City official. If, after receipt of such citation, an artist fails or refuses 8 to remove any such display in violation, the City may, after consultation with the City Attorney or his/her designee, impound such display. Although prior notice of such impoundment shall not be required, the City shall take reasonable efforts promptly to notify the artist following the impoundment. The artist owning any impounded display shall be responsible for the expense of removal and storage of such display. If the owner fails to reclaim the impounded display and pay the expenses of removal and storage within thirty days from notice of impoundment, the display may be deemed unclaimed property and may be disposed of pursuant to law. If, in subsequent proceedings on the underlying citation before the administrative law judge, it is determined that the artist did, in fact, have a permit from the City at the time of impoundment, or that the City has made an error in impounding the display, the City shall, forthwith, at its own expense, replace the display at its location. Section 14.38.180 Emergency Removal. A. Removal. In the event that a City zoning inspector or the City police or fire department determines that the artist's use of Available City Property or the display placed thereon constitutes an immediate physical threat to public life, safety or health, the sidewalk entertainment or sidewalk art display may be removed by the City immediately without any prior notice or hearing. This provision shall not be enforced in any way related to the content or expression of the material displayed or distributed by the artist. B. Notice and Hearing. In the event of such an emergency removal the City shall immediately contact the artist or the artist's representative if the artist has filed with the City's property manager the name, address and telephone number of the artist's representative whom the City may notify or contact at any time regarding the artist's display. The City shall inform the artist or the artist's representative of the removal and the reason(s) therefore. If requested by 9 the artist or the artist's representative, the City shall hold an expedited hearing before the property manager to determine whether or not the removed entertainment or art display constituted an immediate threat to the public's life, safety and health. In the event that the property manager determines that the display did not constitute such an immediate threat, the City shall forthwith, at its own expense, replace the display at its location. C. Appeal. The artist or the artist's representative may appeal any decision or order to the mayor or the mayor's designee. Any appeal shall be filed in writing within 10 days of the decision and shall specify the basis for the appeal. The mayor or designee shall consider the appeal based on the written submissions. Section 14.38.190 Special Events The restrictions of this chapter notwithstanding, nothing herein shall prohibit the City from authorizing entertainers or vendors, other than those artists governed by this chapter, to conduct concurrent sidewalk entertainment, art displays, or vending operations within the expanded central business district, or such other areas as the City may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, City policy, or executive order as may be applicable. During such special event the City may require one or more artists under this Chapter to relocate and perform or display art at another available location within the Available City Property during the period of such special event. Section 14.38.200 Penalties. Any violation of this Chapter shall constitute a civil violation and shall be handled as provided by Chapter 2.75. Three or more violations within a one-year period shall constitute a misdemeanor. 10 SECTION 2. This ordinance shall take effect immediately upon the date of its first publication. Passed by the City Council of Salt Lake City, Utah, this day of 2001. CHAIRPERSON ATTEST: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on Mayor's Action: DApproved ❑Vetoed MAYOR ATTEST: CHIEF DEPUTY CITY RECORDER (SEAL) Bill No. of 2001. Published: G:\Ordina0l\Sidewalk Entertainment and Art Displays-1-15-02 draft.doc 11 SALT LAKE CITY COUNCIL STAFF REPORT DATE: April5,2002 SUBJECT: Short-Term Loans to Businesses Impacted by the South Temple Street Reconstruction STAFF REPORT BY: Gary Mumford Document Type Budget-Related Facts Policy-Related Facts Miscellaneous Facts Resolution The proposed Since the South Temple The City Council authorized authorizing a resolution authorizes Street reconstruction similar loan programs for short-term loan $500,000 to be set aside may adversely affect businesses that were program for from the City Small adjacent businesses,the impacted by light rail businesses Business Revolving Administration desires to construction on Main Street impacted by the Loan Fund for this assist the businesses by and 400 South. South Temple program. offering short-term loans. reconstruction The Administration is requesting that the Council adopt a resolution that authorizes the Department of Community and Economic Development to implement a loan program for businesses impacted by the South Temple Street reconstruction between Main Street and Virginia Street. KEY ELEMENTS: Loan terms: • Loans up to$15,000 • 60-month repayment period to start after a six-month deferral period from the date of disbursement of funds • 5% interest rate • No penalty for prepayment Eligibility criteria: • Collateral required • Financial viability of business as determined by a review of: (1)last three years of business tax returns, (2)statements of monthly revenue and expenses for the preceding year and current year to date, and(3)projected monthly statements of revenue and expenses for the current year and coming year • Credit report must demonstrate payment of past obligations (credit score of 660 or greater) OPTIONS: Following the briefing, the Council may wish to consider the following options: 1. Schedule consideration of the resolution in a future Council Meeting. 2. Request that the Administration revise the loan program or eligibility criteria. 3. Request additional information from the Administration. Page 1 ANALYSIS: The Federal Highway Surface Transportation Program has provided$10,500,000 for reconstruction of South Temple Street. The City has budgeted$869,849 as the local match, and the Department of Public Utilities plans to spend$1,300,000 to upgrade and replace utility lines under South Temple. The project will involve reconstruction of pavement,curb and gutter,and installation of improved storm drainage, traffic signals, and streetscape landscaping. Bid opening for this project is scheduled for April 23,2002. Construction is to be completed by the fall of 2003. Previously, the City offered loans to businesses on Main Street or on 400 South that were adversely affected by light rail construction. These two other loan programs didn't require collateral, a credit check,or a review to determine financial viability. Main Street loans-The City issued 15 loans of$10,000 each to businesses on Main Street for a total of$150,000. Ten of these businesses are current with loan repayments. Three businesses have gone out of business. One business has moved. The City has written off one loan, and another loan is 18 months past due. 400 South Street loans-The City issued 19 loans to businesses on 400 South for a total of $260,000. All loans are current or show only one month past due. Two businesses are no longer open for business. (See attached list of loan status for both programs.) The only criteria for the previous two construction impacted loan programs was that the business be located adjacent to the light rail construction. The Administration is suggesting that South Temple loans be secured with collateral,that a credit check be made to determine that the business has been current on past loan payments, and that a review be made to determine that the business is financially viable. These requirements will help guarantee repayment of the loan and will help prevent a business that is about to close (unrelated to the construction)from receiving a City loan. The proposed resolution authorizes up to$500,000 from the City's Small Business Revolving Loan Fund for the South Temple loan program. As of March 31, 2002,there was$3,972,000 available in the Small Business Revolving Loan Fund. Although the resolution doesn't specify the date the loan program ends,the Department will stop issuing loans under this program once construction is completed or sooner if funds are no longer available. cc: Rocky Fluhart,Jay Magure,Margaret Hunt,LuAnn Clark Page 2 SALT' {e) a Gt R1P0, ROSS C. "ROCKY" ANDERSON COMMUNITY AND ECONOMIC DEVELOPMENT MAYOR COUNCIL TRANSMITTAL,.,--_, TO: Rocky Fluhart, Chief Administrative Officer DATE: April 3, 2002 FROM: Margaret Hunt, Director RE: A resolution authorizing the Community and Economic Development Department to implement a loan program for businesses adjacent to South Temple reconstruction between Main Street and Virginia Street. STAFF CONTACT: LuAnn Clark, HAND Director DOCUMENT TYPE: Resolution BUDGET IMPACT: The City will provide a maximum of$500,000 from the Small Business Revolving Loan Fund, with no single loan exceeding $15,000. DISCUSSION: The Community and Economic Development Department has developed a short-term, low-interest loan program to assist businesses adjacent to South Temple reconstruction between Main Street and Virginia Street. Loan amounts will be up to $15,000 with payments deferred for six months from the date of disbursement of funds. Then, there will be monthly payments of principal and interest for a term of five years at an interest rate of five percent per annum. The loans will be secured, and there will be no penalty for prepayment. The borrower will be responsible to pay closing costs. To apply for a loan, a business will be required to submit a loan application including: (a) an outline of the proposed use of funds, (b) identification of collateral to secure the loan, (c) business tax returns for the past three years or since the business was established if less than three years, (d) monthly income statements of revenue and expenses for the preceding year and current year to date, (e)projected monthly income statements of revenue and expenses for the current year and coming year, and (f) a copy of a current City business license. In addition to the financial viability of the business, an applicant's credit report must demonstrate payment of past obligations and have a minimum credit score of 660. Loan applications will be reviewed by Department of Community and Economic Development staff and forwarded to the Department Director for a final decision. 451 SOUTH STATE STREET, ROOM 404, SALT LAKE CITY, UTAH 841 1 1 TELEPHONE: 801-535-6230 FAX: 801-535-6005 REcrcEo PAVER RESOLUTION NO. OF 2002 A LOAN PROGRAM FOR BUSINESSES ADJACENT TO SOUTH TEMPLE RECONSTRUCTION BETWEEN MAIN STREET AND VIRGINIA STREET WHEREAS, South Temple reconstruction between Main Street and Virginia Street will impact adjacent businesses; and WHEREAS, Salt Lake City desires to assist the businesses by offering short-term, low-interest loans; THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah: 1. It does hereby authorize an allocation not to exceed $500,000 from the City's Small Business Revolving Loan Fund to make loans to businesses located adjacent to South Temple reconstruction between Main Street and Virginia Street. 2. Loan amounts will be up to $15,000 with payments deferred for six months from the date of disbursement of funds. Then, there will be monthly payments of principal and interest for a term of five years at an interest rate of five percent per annum. The loans will be secured, and there will be no penalty for prepayment. The borrower will be responsible to pay closing costs. 3. To apply for a loan, a business will be required to submit a loan application including: (a) an outline of the proposed use of funds, (b) identification of collateral to secure the loan, (c)business tax returns for the past three years or since the business was established if less than three years, (d)monthly income statements of revenue and expenses for the preceding year and current year to date, (e)projected monthly income statements of revenue and expenses for the current year and coming year, and(f) a copy of a current City business license. In addition to the financial viability of the business, an applicant's credit report must demonstrate payment of past obligations and have a minimum credit score of 660. Loan applications will be reviewed by the Department of Community and Economic Development staff and forwarded to the Department Director for a final decision. 4. The Director of the Community and Economic Development Department is hereby authorized to execute the requisite loan documents on behalf of Salt Lake City Corporation and to act in accordance with their terms. Passed by the City Council of Salt Lake City, Utah,this day of March, 2002. APPROVED AS TO FORM Salt Lake ity ttomey's Office By. Date / a CHAIR Y ATTEST: Chief Deputy City Recorder 4/4/2002 MAIN STREET LIGHT RAIL IMPACT LOANS 1 BUSINESS LOAN LOAN PAYMENT BORROWER ADDRESS TYPE DATE AMOUNT AMOUNT STATUS '.heers to You 315 South Main Street Bar 6/3/98 10,000 229.34 Current 3panky's Pool 45 Wes`300 South Bar 6/18/98 10,000 229.34 Out of business; city wrote off$6689.30 _ynette's Birkenstock Plus 270 South Main Street Retail shoes 6/23/98 10,000 229.34 Current 3t. Petersburg Café & Deli 55 North 300 West Restaurant 7/2/98 10,000 229.34 Loan paid in full on 2/23/99 vlechanized Plastics 309 South Main Street Retail Music 7/2/98 10,000 229.34 Current; moved to 160 South 500 West Shogun Restaurant 321 South Main Street Restaurant 7/5/98 10,000 229.34 Past due two payments )ff Broadway Theater 272 South Main Street Live theater 7/22/98 10,000 229.34 Past due two payment lade Café 234 West 900 South Restaurant 7/22/98 10,000 229.34 Current vlaster Muffler& Brakes 690 South Main Street Auto repair 84/98 10,000 229.34 Current \merican Grill 280 South Main Street Restaurant 8/10/98 10,000 229.34 Out of business; past due four payments 3am Weller's Zions Books 254 South Main Street Retail books 8/12/98 10,000 229.34 Current ;omputer Associates 1318 South 200 West Retail-comp. 8/28/98 10,000 229.34 Current 'arador Television Prod. 10 West Broadway TVNideo Prod. 9/1/98 10,000 229.34 Out of business; lost contact; past due 18 payments merged with company in San Diego ko Auto Care .209 West 1300 South Auto repair 9/21/98 10,000 229.34 Current -HG Auto Broker 209 West 1300 South Auto sales 9/22/98 10,000 229.34 Current 4/4/2002 FOURTH SOUTH LIGHT RAIL IMPACT LOANS 1 BUSINESS LOAN LOAN PAYMENT BORROWER ADDRESS TYPE DATE AMOUNT AMOUNT STATUS Squirrel Brothers 605 East 400 South Restaurant 1/3/01 15,000 283.07 Current Omniserve Wireless 358 South 700 East Retail phones 2/6/01 15,000 283.07 Current Taj India 73 Eas(400 South Restaurarnt 2/8/01 15,000 283.07 Current Old Salt City Jail 460 Sotith 1000 East Restaurant 3/1/01 15,000 283.07 Past due one payment El Cha Cha's 435 East 400 South Restaurant 4/12/01 7,500 141.53 Out of business; past due one payment Baba Afghan 55 East 400 south Restaurant 4/16/01 15,000 283.07 Current Kasim &Co. Oriental Rugs 57 East 400 South Retail rugs 4/16/01 15,000 283.07 Current Stone Ground 249 East 400 South Restaurant 6/5/01 15,000 283.07 Current Charlie Chow's Dragon Grill 255 East 400 South Restaurant 6/7/01 15,000 283.07 Past due one payment Royal Eatery 379 South Main Street Restaurant 6/18/01 15,000 283.07 Current Rose of India 368 South State Street Restaurant 7/5/01 5,000 94.36 Out of business; current Cabana Club 31 East 400 South Private Club 7/13/01 7,500 141.53 Current Café Sha Sha 175 East 400 South Restaurant 7/16/01 15,000 283.07 Current Bourbon Street Bar& Grille 372 South State Street Private Club 7/16/01 15,000 283.07 Current Alltypes Checkcashing 369 South Main Street Check cash. 8/20/01 15,000 283.07 Current Planned Estates Benefits 376 East 400 South Estate Plan. 9/14/01 15,000 283.07 Current Shop N Go 365 South 900 East C-store 9/14/01 15,000 283.07 Current Hogi Yogi/Terriyaki Stix 820 East 400 South Fast food 9/24/01 15,000 283.07 Past due one payment B.C. Chicken 380 South State Street Restauarant 12/10/01 15,000 283.07 Current i THE APEX CONSULTING GROUP FETING YOUR FLEET CHALLENGES FTransportation Consulting Group, FLEET MANAGEMENT EVALUATION Apex Corporation, is a fleet con- sulting firm offering professional • Fleet operation analysis consulting, maintenance and engineering • Fleet utilization services to the public and utility fleets • Replacement funding and analysis QUALITY • Fleet financing and financial charge back systems around the country. We have established • Technical and supervisory training a reputation for leadership in presenting . Information system, selection and implementation real world solutions to our clients. We • Environmental challenges take great pride in successfully impie- • Warehousing and inventory control menting our recommendations with measurable results. LIP OPERATIONS AND LOGISTICS MANAGEMENT et our recognized consultants help . Cost saving procurement strategies you enhance your operation and • Contract maintenance oversight improve your bottom line. We have VALUE . Program implementation successfully helped many companies • Facility planning and design improve their fleet operations through our • Rightsizing fleet operations commitment to quality service and • Restructuring of operations innovative solutions. Some of our • Operational cost reduction strategies satisfied customers include: • Benchmarking rV r', Y San Diego Police Department o` ; ' PROJECT MANAGEMENT e, y • Asset condition assessment City of Kirkland, Washington o cr • Bus line inspection REAL WORLD SOLUTIONS Federal Highway Administration m d ft o. x • Maintenance Inspections 1 y • Transit triennial reviews District of Columbia Metropolitan n. A y • Privatization of operations Police Department ,, o ,� Y. l 1 New Jersey Turnpike Authority � ° EQUIPMENT ENGINEERING ` Potomac&Rappahannock o -n -o • Intelligent transportation systems Transit Commission s s c • Alternative fuel studies • o G� • Vehicle design reviews Federal Transit Administration W z --- o c • Transit bus and heavy equipment component design City of Gainesville, Florida N b • Vehicle defect analysis • Accident reconstruction Grand Rapids Area Transit Authority o W • Expert litigation support rOVe Lookin for Wa $ I ...when athletes needed transportation service,you g ynl p delivered. When visitors needed transportation, Your Fleet Operations? you delivered. Your commitment to transportation and your hard work toward achieving the Olympic transportation goal are commendable. TRANSPORTATION THE APEX CONSULTING GROUP IS YOUR Gordon J.Linton,Federal Transit Administrator ANSWER. We offer comprehensive fleet U.S.Department of Transportation CONSULTING GROUP management services to meet your needs. Washington,D.C. The Apex Group can help you control and �+,. lower your fleet costs, while providing the It was a refreshing experience to deal with a Apex COlpoiation means to improve service to your fleet users. consultant who has been in your shoes. The Our team of seasoned fleet specialists offer solutions you offered were real world answers to real world practical solutions, at a competitive our problems. The restructured organization is cost. We are expert in developing and working great. Many thanks to you. Rex Waits,Fleet Administrator implementing cost saving strategies which Shelby County Government,Memphis TN flow right to your bottom line. Let our team help you with all your fleet needs including: Your experience as a former fleet professional was useful and stimulating to our staff. The Real World Solutions recommendations relating to cost savings strategies without sacrificing service levels was particularly Cc Fleet Maintenance Reviews innovative and impressive. Dave Lang,Fleet Administrator Cost Saving Strategies Commonwealth Edison Company,Chicago IL O Fleet Rightsizing What I liked most about your report is that your 0 Equipment Replacement recommendations are affordable and could be11*111V I 4r O Shop Productivity and Performance implemented with measurable results. We will use =1 rt)fr- the savings to improve our fleet operations. Your 0 Standards assistance in implementing recommendations is IIIIIMN1 O Equipment Engineering particularly valuable. .1 Motiryo Keambiroiro O Fleet Financing Director Administrative Services 1111111I1 City of Kirkland,Washington siiiiiirA O Information Management Systems ♦��f O Vehicle Inspections O Parts Inventory System O Out Sourcing and Privatization O Benchmarking Sherman Sawhney Fleet Management Specialists President O Business Process Reengineering Transportation Consulting Group ' O Underground Storage Technology APEX CORPORATION x Alternative Fuels Technology Offering innovative programs for fleet manage- 7415 Cutty Sark Way ment to clients in Federal, state, and local 0 Expert Accident Litigation Support Laytonsville,MD 20882-4302 , governments, the utility industry, and operators Telephone 301-921-9463 Fax 301-208-0860 of private, transit bus, and school bus fleets. apextrans@aol.com M M MB r ill N M MI I MI a — M r — M gra — IIIApril 2002 L / ,' -B. 7\ 8 :tip►. x'' 'e*s � � r F N. ("^�.M SALT LAKE CITY, UTAH Fleet Operations Assessment and Optimization Plan Apex Corporation In association with Public Financial Management Transp rtation Consulting Gr up Suite 750 7415 Cutty Sark Way 660 Newport Center Drive Layt nsville, MD 20882-4302 Newp rt Beach, CA 92660-6408 301-921-9463 949-721-9422 E Olt N Mt — O 1I OM — - SIX MC /! ON ! Salt Lake City Fleet Operations Assessment and Optimization Plan /c ' ,j%. II FLEET UTILIZATION is,ca;4:{ii,T N f�_ i ';'At -4'y'ti • Our evaluation of the sub-components of fleet utilization included the following components: •t«. - Fleet Age Distribution Analysis - Mileage Distribution Analysis - Expected age versus actual age - Fleet use by model year - Underutilized vehicles by class - Savings by reducing one vehicle. • Our evaluation included a detailed review of 1,067 vehicles or 60 percent of the rolling stock. • The composition of the fleet is balanced in age across its life cycle, with the exception of Police Administration, SUVs, 1 Ton Utility, 1/4 Ton and 3/4 Ton Pickup Trucks. (Page 13 Exhibit A) • The composition of the fleet is balanced in mileage across its life cycle, with the exception of Police Administration and Administrative General Sedans. (Page 14 Exhibit B) • The review of expected versus actual average age indicates that the fleet warrants adjustments to the current vehicle replacement standards for Police Administration, Administrative General Sedans, SUVs, 1 Ton Utility Vehicle, 1/4 Ton and 3/4 Ton Pickup Trucks to better align the actual to the expected average age. (Page 16 Exhibit C) 1 Apex Transportation Consulting Group =NM MI ill MI MIR Me air V Mt OW UM Mt Ile MIN Mit ire IIINI Salt Lake City Fleet Operations Assessment and Optimization Plan is, ' L s. �rQ,'''4 1?;7 • Based on our evaluation of 1,067 vehicles: l +ir :4 I/ - 261 vehicles, excluding Police Patrol, indicated underutilization ‘,. ,; X.... ` - 80 Police Patrol Vehicles suggested underutilization - No 2001 vehicles were considered underutilized as their utilization data was of a short duration. (Page 21 Exhibit E) • The total estimated lifetime savings feasible from removing 26 vehicles, representing 10 percent of the fleet identified above as underutilized, and excluding Police Patrol, is projected to be $1,327,650. (Page 21 Exhibit E) • The draft Take Home Policy as prepared by fleet management operations dated January 1, 2001 covers key aspects of a good take home policy document. • We did not find any evidence of an annual vehicle justification review process. The vehicle justification process will create an objective evaluation to determine the validity of currently assigned and additionally requested vehicles to user agencies. 2 Apex Transportation Consulting Group r iIMI. .■ ON Oil WO - IMI - MNA MD Slit WO ell ON Salt Lake City Fleet Operations Assessment and Optimization Plan �.e.S, _,, III COST ALLOCATION EVALUATION l•%I , .... 1r't =`" :-'..' - 1 • Based on the current fleet size and manpower capabilities, the current billing mechanism is ...Lt.,.." satisfactory. • The fleet agency policy not to maintain a cash reserve balance for purposes beyond the payment of known liabilities should be reexamined. The framework of an internal service fund and its ability to maintain retained earnings makes it a viable entity to provide for unexpected variances in maintenance expenditures. • The billing system prior to FY2002 was efficient to the extent that the results of net operations (charges for services less operating expenditures) were within a five percent margin and did not exceed $290,000 annually on the positive or negative side. The size of the variance on a revenue base of $5.5 million and utilizing a billing system that is not labor intensive for the user or the fleet agency is commendable. SHOP LABOR RATE • The budgeted shop labor rate for Fleet Operations in Salt Lake City is $56 an hour and is below the average commercial labor rate of $75 per hour. • The budgeted labor rate of $56.00 an hour is achieved as a result of recovering certain administrative and parts overhead charges through a parts surcharge, a work sublet surcharge, a fuel surcharge and offsetting expenditures with revenues from warranties and claims. 3 Apex Transportation Consulting Group ii .r i a. .r N .. NS WO V — — V MI MO arc NMI el Mr Salt Lake City Fleet Operations Assessment and Optimization Plan h / ` 1 k, IV FINANCIAL PERFORMANCE ANALYSIS ifv lr It i'Z_ �-2L'f I 14 ,".Ti.'; • Based on the analysis of fleet budget data for the period 1996 to 2001, Salt Lake City fleet µ` management has demonstrated good management focus in several areas of financial performance. Overall, based on the review of the financial performance, it appears to us that the current fleet budgetary controls are satisfactory. • A key macro measurement tool is net operations, the difference between Charges for Services and Operations Costs. The fleet net operations have been three years in the red and three years in the black, aggregating to a positive balance of $21,800 over the six years. (Page 41, Exhibit I) • The 1996-2001 personnel costs increase is 18.67 percent compared to the CPI of 17.33 percent. Maintenance costs, excluding fuel, have increased 8.4 percent while the CPI has increased 17.33 percent. Charges for services increased 3.4 percent from 1996 to 2001 while the CPI rose 17.33 percent. (Page 41-43) 4 Apex Transp rtation Consulting Group MO MO ON MI SIN Ile IIIII MN MO WI 11111 11111111ir Salt La City Fleet Operations Assessment and Optimization Plan V VEHICLE REPLACEMENT ANALYSIS { grJl= • ��"i �1 iE: r 7 • The correct replacement life cycle can be evaluated through conducting an economic life „.Y,.,, #.9 cost analysis. Such an analysis objectively determines the ideal time to replace a particular unit. There are two components to the development of an economic life analysis model. First is the current acquisition cost and second is the maintenance cost per mile (CPM) for various model years pertaining to the specific class of vehicle under review. Therefore, the integrity of the maintenance CPM data is of significant importance. (Page 46, Exhibit N) • The results of the economic life cycle are compared to industry replacement standards for similar equipment to ensure that the results are within acceptable parameters. • To summarize, comparison of the recommended life cycle versus the current replacement life cycle, either being utilized by Salt Lake City or being considered, indicate that the recommended replacement cycle is marginally longer. • The recommended replacement cycles are consistent with the three guiding principles of fleet management operation, which are to make the fleet affordable, available and functional. ECONOMIC LIFE ANALYSIS • The basic premise of economic life analysis is that at some point in the equipment or vehicle unit's life, the maintenance will begin to rise so rapidly that the total cost (ownership plus maintenance and repair) will bottom out and begin to rise. It is at this bottoming out point on the total cost curve that the unit has reached the end of its economic life. 5 Apex Transportation Consulting Group IMII.11 I MO MI SIMI MI MI V MO M MI ON OM ailliele MO Salt Lake City Fleet Operations Assessment and Optimization Plan 40* `_ Based on the economic life analysis Police Patrol and Police Administrative are r y'Orr. 111k. recommended for a five-year replacement plan. Administrative General, SUV, 1 Ton Utility, i ;-`T n v, 1/4/1/2/3/4 Ton Pickups are recommended for an eight year replacement plan and the s,,, i"t_ . International 2674 6x4 and Volvo WXR64 are recommended for a nine year replacement ~"�tNw N"' plan. (Page 51-54) EVALUATION OF RENTING VERSUS PURCHASE OF FLEET REQUIREMENTS • Parallel to the assessment of replacement requirements and criteria, the City fleet management should evaluate purchase versus renting as an alternative solution. • Ideal candidates for such an evaluation are vehicles that accumulate less than 12,000 miles annually and are not subject to excessive wear and tear. Five classes of vehicles, totaling 474 vehicles, are candidates for this evaluation process. (Page 59, Exhibit W) • The five classes of vehicles, Administrative Sedan, SUV, 1 Ton Utility, 1/4 Ton and 3/4 Ton Pickup Trucks have annual mileage utilization of less than 12,000 miles. Based on the acquisition cost (less salvage value) and the maintenance rate applied to the lifetime projected miles, the total life cycle cost is calculated. Further, the cost is divided by the projected life span to arrive at a monthly cost. The next step is to evaluate the competitiveness of the monthly cost with the rental. • It should be noted that the rental option is not necessarily cheaper in the long run as the rental business must also recoup the replacement and maintenance cost like the City fleet. However, the renting option gives the City a breather to assess real needs from those that are merely convenient. 6 Apex Transportation Consulting Group • MI Salt Lake City Fleet Operations Assessment and Optimization Plan ,. l REPLACEMENT FUNDING REQUIREMENTS 4'J ;=, urr.,.�' --�_ 1.,/ • Without a lease purchase financing mechanism, the City would have to appropriate $60.8 %,, l 1�. million for the period 2003-2011. The average annual funding would be $6.75 million. The ~�INM 2003-2005 appropriation would be a fiscally prohibitive $17.1 million. Therefore, a cash option is not recommended. (Page 63, ExhibitX) LEASE PURCHASE FINANCING • Salt Lake City enjoys a favorable financing rate, a rate that in fiscal year 2001 was below the rate earned by the City overnight fund balance. • The lease purchase has addressed the escalating maintenance costs and reduced spare police vehicles. • The fleet overall is closer to the expected average age, although not at par for some class of vehicles. • Utilizing lease financing (for 2003-2008), the City would have to appropriate $64.2 million for the period 2003-2011. The average funding would be $7.1 million. The lease financing option is $3.4 million (for the period 2003-2008) more expensive and therefore comes at a price. (Page 67, ExhibitZ) • The report discusses advantages and disadvantages of the leasing system. 7 Apex Transportation Consulting Group NS MI ON Ole MSIIII a O OM Salt La City Fleet Operations Assessment and OptimizatM Plan VII PARTS MANAGEMENT jig y 7;71 *qrr may' • Current inventory of $493,220 is excessive. • Stockage effectiveness is too low, should be increased to 85% from the current 68%. When a mechanic requires a part, it should be filled from the current inventory 85% of the time. • Obsolete inventory should be purged. This action will free up stock room space for active inventory. • Implement preferred and alternate parts suppliers for inventory to reduce down time and improve availability. • Reduce active inventory by 20%. • Improve parts availability by fine-tuning the contracts in terms of delivery requirements by the vendors. • Implementation of bar coding is currently is in process. Good idea and should be supported. • Seasonal parts should be evaluated to determine its usefulness in the system. • Leverage the $2 million in purchases to improve vendor services and costs. Vendors should improve delivery time, stocking high usage items and assistance in forecasting critical parts usage. 9 Apex Transportation Consulting Group MIS ON r r r r r r r r — rr reral r Salt Lai.C% Fleet Operations Assessment and O timizati Plan City P P VIII FACILITIES AND EQUIPMENT I` -i.V:A`4111 • The current shop, though far from perfect, has all the necessary tools and equipment to perform repairs to the fleet. The shop size is adequate to meet the fleet needs. In the event our recommendation to implement a second shift is adopted the space will suffice for foreseeable future. We find opportunities to renovate the existing shop at less than ten percent of the cost of the new one and to be fully functional for years to come. We do not believe that an expense of $18-23 million is necessary until all the other avenues to solve the problem have been exhausted. • Conduct a feasibility study of the entire compound to include all the agencies of Public Services at this compound. Reallocating and reorganizing the space needs of each agency will result in efficient layout for all agencies. • For the interim period, evaluate the needs of the shop and conduct a mini study to develop space planning to meet the fleet division needs. For example, determining what is best and the most effective possible use of the body shop. The auto or heavy shop can best utilize the space vacated by the body shop and the cost of associated changes must be determined. • In the event the City decides to contract out the maintenance to an outside vendor, the issue of a new building becomes moot. The contractor will be conveniently able to work from the existing building and probably run a multiple shift operation. • Thoroughly clean the entire shop, steam clean the shop, and steam clean all shop equipment and tools. The shop managers should make a schedule to keep the shop clean, hygienic and organized. 10 Apex Transportation Consulting Group MI ON MO ON OS MO 111 MI N O 111111 IIIII M� Salt La City Fleet Operations Assessment and Optimization Plan 404 = • Each mechanic has a primary bay and should be held responsible for daily cleaning and ' upkeep of the area. All mechanics should participate in overall cleaning of the shop. • Designate a specific area outside the shop for equipment awaiting repairs. Label such area as "Waiting Line". • Designate specific area outside the shop for equipment that has been repaired and completed. Label such area as "Ready Line". 11 Apex Transportation Consulting Group IIIII ONO MI OM ell MS MI ilE 1111111 IIIIII OM NIB r NMI MIirli Salt Lak City Fleet Operations Assessment and Optimization Plan /1, . IX FUEL MANAGEMENT e.v, i...'%- - t i"t i'"t a . µf` . , • Fuel cost is major expense, City operates 15 fuel-dispensing sites. Fleet Management fuels l',, -1., ,,, smaller tanks at an additional 31 sites. City purchases diesel fuel and unleaded regular gasoline from State contract. City consumed just over 900,000 gallons of fuel last year. • City is considering changing to State fuel system. Both City and State have well functioning fuel systems. Users will notice little, if any, difference between systems. City and State surcharges should be closely analyzed. We did not find any economic advantage in transferring fuel system to State. However. transferring the fuel system to State will relieve the City of managing the fuel system. The City fleet staff can focus on the primary mission of maintenance and use the scarce resource to maintain the fleet. • Prior to purchasing alternative fuel vehicles, the training needs of the parts personnel and mechanics be addressed. Further, appropriate matching of vehicle use to the type of alternative fuel should be analyzed. The user acceptance in previous trial has been low and is the key to the success of the program. For heavy equipment, Bio diesel is appropriate. No major changes to the infrastructure are needed. Training requirements are minimal. For long-term use, evaluate the use of liquefied natural gas fuel as it offers all the qualities of CNG and does not have the weight. • The infrastructure cost of alternative fuel stations is high. We suggest a joint alternative fuel program with neighboring jurisdictions to share the cost and enhance usage. Further, the landscape of alternative fuel technology is changing and it is critical to proceed with caution in selecting the appropriate fuel and be flexible to take advantage of changes in technology. 12 Apex Transportation Consulting Group all NO WM MO - - — a I air MS In M r Salt LairC% Fleet Operations Assessment and O timizati Plan tY p P /1, X ORGANIZATION STURUCTURE AND STAFFING :.sr • Current staffing declined almost 25% over 3 years. Overall budget expenditures have not decreased. Mechanic numbers comparable to private industry staffing. Need sufficient administrative support. • Unscheduled maintenance currently over 75%. We recommend establishment of a second shift operation. We have outlined two plans to accomplish this with only marginal increase in manpower. Implementation of a second shift operation will significantly improve fleet availability and reduce down time on vehicles and equipment. • Scheduled repairs should be increased to 60%. The standard for private fleets is 70% • We have provided a revised organization structure that is consistent with industry standards. Total two shift staffing at 85% mechanic productivity, 41 personnel. This organization presents a lean and customer focused organization without significant increase in personnel.(Page 98-99) • Total two shift staffing at 75% mechanic productivity, 45 personnel. Current mechanic productivity at 63%. (Page 100-101) 13 Apex Transportation Consulting Group 111111 Sal MI OP IIIIIII MID III NIS MN MINI MO OM MI MO AIIII MIN Salt LaW cityFleet Operations Assessment and O timizat Plan P P R ,�� ' i% XI INFORMATION SYSTEMS dy �4`,._;,Ili 9'k :..'v/ mist �i4:.;= T A. I��.,A-�.,� � • In order to get a better understanding of and make full use of the full capability of the Is, . vehicles management system the Fleet Manager, business manager and key shop personnel ..0..., "�'" ,, should attend the CCG Faster users conference to keep him updated with the latest enhancements. • A formal training of all key personnel is important to the success and effective use of the system. The key personnel should include Fleet manager, Business manager, Parts supervisor, and Shop Service managers. The training could be arranged in Salt Lake City. • The maintenance and operational reports be shared with the using agencies. We recommend dissemination of standard basic cost and mileage data reports to agencies to better understand and manage their fleet. • Revise basic parameters to obtain the data by class code summary for performance measurement and cost comparison with like fleets. • Parts personnel should be trained to use the bar coding system soon to be implemented. This training should be part of the overall training of the system. • We found that the acting fleet manager and staff well familiar and comfortable in using the fleet computer systems. 14 Apex Transportation Consulting Group INII I O — I i 1M — ON N NM — INN INN AIN r Salt Lak ity Fleet Operations Assessment and Optimizati Plan fl �4s,_`` ,4 . XII CUSTOMER COMMUNICATION AND FEEDBACK - . ° -' -:L- , :,t7i Swjh. *f • The fleet manager should meet with each customer at least once a year to discuss individual fleet needs for their respective agency. • Fleet coordinator meetings should be held at least twice a year to provide departments with an opportunity to exchange information on technical and operational issues. • Departments and agencies should be advised of the new charge back system. Initiating a series of well-facilitated sessions focused on customer education and improving understanding of fleet management may accomplish this. The subject topics could include operational changes, new developments, rental rates, and other subjects of common interest and team building. This type of partnering with customers will help in improving communication between fleet and using departments. • To measure the customer satisfaction index, we suggest implementation of a customer comment card. The using agency will have the opportunity to comment on the quality of services provided. (Page 110) • The fleet manager should take an active role in day-to-day activities of the shop to guide, train and motivate the staff particularly in customer service. We found evidence of improved employee communication under the guidance of the current acting fleet manager. Some of the customers also noted the proactive style of the acting fleet manager in dealing with problem resolution. 15 Apex Transportation Consulting Group E I r OM it In 11 I I w MS as S I ir r Salt Lake City Fleet Operations Assessment and Optimization Plan '' NI. XIII PERFORMANCE MEASUREMENT 11'A it f 4i --7 • In order to determine the current level of services and the cost of providingthose services, kN,. ,;, Ns we recommend that, at a minimum, the following performance measures be monitored on an ongoing basis. This will allow City executives to determine the level of services and to compare those to other entities/municipalities and objectively measure improvement. - Turnaround Time - Scheduled versus unscheduled work - Repeat work - Downtime and breakdowns - Mechanic utilization - Preventive maintenance - Inventory turn over rate - Stockage effectiveness. • Performance measurement is crucial for managing results • Data must be converted to meaningful information • Performance measures used at both macro and micro levels • Data integrity must be improved • Train administrative personnel in MIS report writing module • Use standard and locally defined reports to monitor and control costs and services Share performance results with employees, City executives and using departments 16 Apex Transportation Consulting Group — MB — — — — IIM r r MI r w — Inir r Salt Lak City Fleet Operations Assessment and Optimization Plan XIV SAFETY AND TRAINING f . ='4 i�—.. "r„N0 • The City should encourage the continuation of an Automotive Service Excellence program already in place. Some of the suggestions to improve participation include offer or pay for the preparation training for the certification examination and increasing the incentive from $5 per month to $10 per month. The additional cost will be minimal however the results far outweigh the cost. • Additional emphasis should be placed on mechanic training acquaint uaint them with the latest q technology. The City should consider subscribing to All Data Company for latest information on light vehicles. • In the event the City decides to purchase 30 percent of the eligible fleet as alternative fuel fleet, it is important that appropriate funds be made available for on going training in the field of alternative fuel technology. • Assess the technical and supervisory training needs of the staff. Develop a training plan. The determination of training requirements should be based on the need and not the proximity of training offered. Of course every attempt should be made to obtain local or nearby training or training at minimal cost. • Implement an aggressive customer education program. The program should encompass all aspects of federal and state statutory requirements. Enforce a pre and post trip inspection program for operators. Operational supervisors should conduct a random gate check as vehicles depart to assure that operators are complying with the regulations. 17 Apex Transportation Consulting Group MN MINI IMO OM Mil MI lip MIN MN NIB OM SIM IMO NIB Salt Lake City Fleet Operations Assessment and Optimization Plan �M ' "7 NEXT STEPS • ptt � �,, s.„ , ❑ REVIEW AND FINALIZE PART 1 OF THE REPORT. ❑ MAKE POLICY DECISIONS REGARDING RECOMMENDATIONS. SOME PART OF PHASE 11 IS ALREADY INCLUDED IN PART 1. PHASE II IN PROCESS. COMPLETE PHASE II. UTILIZE CONSULTING RESOURCES TO IMPLEMENT THE RECOMMENDATIONS LISTED IN THE REPORT • DEVELOP AN IMPLEMENTATION PLAN TO INCLUDE ACTIONS TO BE TAKEN, EVIDENCE OF BENEFIT, COST IMPLICATIONS, AND PERSONNEL RESPONSIBLE FOR ACTION. o MAKE SELECTED IMPROVEMENTS THAT CAN BE MADE BY EITHER CHANGING A PROCESS OR AT A MINIMAL COST. o FOR IMPROVEMENTS REQUIRING SIGNIFICANT ADDITIONAL COST, FUND THE ENHANCEMENTS FROM SAVINGS REALIZED THROUGH OPERATIONAL EFFICIENCIES GAINED BY IMPLEMENTING THE RECOMMENDATIONS PRESENTED IN THIS REPORT. 18 Apex Transportation Consulting Group J r‘t 0 4 `L002 SAI2 r ' °CAN y RP M+ .°O IO1\ ROSS C.ANDERSON STEPHEN A: GOLDSMITH PLANNING DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT MAYOR BRENT B. WILDE PLANNING DIVISION DEPUTY PLANNING DIRECTOR COUNCIL TRANSMITT TO: Rocky Fluhart, Chief Administrative Officer Date: FROM: Stephen Goldsmith RE: Petition 400-00-41: A request from the Salt Lake City Community and Economic Development Department requesting that the Sidewalk Vending Ordinance be reviewed and changes made to simplify vending regulations in the public way and public parks within Salt Lake City. STAFF CONTACT: Doug Dansie, Principal Planner 535-6182 DOCUMENT TYPE: Ordinance BUDGET IMPACT: None DISCUSSION: The purpose of this petition is to make sidewalk vending easier in Salt Lake City and to clear up any existing ambiguities in the ordinance, while still balancing the needs of adjacent businesses and neighborhoods. Attached are three separate proposed ordinances for the Councils consideration. Ordinance 1 Planning Commission recommendation: The changes proposed by the Planning Commission will accomplish the following: • Increase the number of allowed vendors to five per block face in all areas of the City where vending is allowed (the present allowance is two per block face on Main Street and one per block face elsewhere). • Increases the size and number of coolers allowed(for Health Dept. reasons such as eliminating storage of raw meat with drinks, etc.). • Extends area where carts are allowed on both public and private property in the Downtown area(from 400 West to 600 West). • Simplifies the administrative approval requirements (first come-first served, no chance drawing required). • Allows sale of multiple items from carts(food, flowers/balloons and newspapers). • Allows vendors on private property, with restrictions, as a permitted use in the MI and M2 Manufacturing zones, all Downtown zones, the Sugar House Business District, Research Park, Business Park and G-MU Gateway mixed-use zones. (This will be set by ordinance rather than the past interpretation of allowing vendors in zones that allow outdoor sales [the new zones do not directly correspond to the former zones allowed by interpretation]). 451 SOUTH STATE STREET, ROOM 406, SALT LAKE CITY, UTAH B411 1 TELEPHONE:801-535-7757 FAX: 801-535-6174 ♦�� RECYCLED PAPER • Allows vendor to use multiple sites (up to 5) with one vending cart (this allows the vendor the mobility to maximize business). • Slightly increases size of allowable carts and associated umbrellas, etc. • Allows vending carts in all City parks subject to administrative standards set for each park. Ordinance 2 Modified Planning Commission recommendation: The Planning Staff received additional comments from other City departments (submitted by Property Management) after the Planning Commission approval. These comments have not been integrated into the attached draft ordinance submitted by the Planning Commission, however, the suggestions are reasonable and would serve to clarify administration and enforcement of the ordinance, therefore an alternative ordinance has also been prepared. The comments include: • Removal of the term "lease". Note: no leases are issued. • Change the size from 34 to 36 sq. ft. Note: this is to better accommodate the geometrics of the carts size. • Define the maximum width of a cart as 3 feet. Note: There presently is no maximum width. • Require attachment of any canopy to the cart. Note: Canopies are presently allowed, but their attachment is not defined. • Add the word"stool", as an alternative to a chair. Note: The ordinance presently identifies that one chair is allowed but not a stool. The letter containing the staff comments is included in the transmittal packet. Ordinance 3 Administration Recommendation: The Planning Commission recommends modifications to Section 5.65.120.A, which would increase, to five, the number of vendors allowed per block face. The Administration would prefer that section 5.65.120.A be left as it currently exists. The current status allows two vendors per block face on Main Street (between South Temple and 400 South) and one per block face on all other blocks (where vending is allowed). All other changes to the Ordinance are supported by the Administration. A separate Administrative ordinance is included for the City Council's consideration. It contains all of the recommendations made by the Planning Commission and all the additional recommendations outlined by staff in the alternative ordinance, but leaves the number of vendors allowed per block at present levels. In summary: the proposed ordinance slightly modifies the geography where vendors are allowed on public property(the Expanded Central Business District, Sugarhouse and City parks) and defines where they are allowed on private property by listing vendors within the land-use tables of appropriate zoning districts (Ml and M2 Manufacturing zones, all Downtown zones, the Sugar House Business District, Research Park, Business Park and G-MU Gateway mixed-use zones). Public Process: The proposal went through the following public process: • Downtown Alliance and Retail Merchants Association in July 2000. • Community Council Chairs at their monthly Mayor's meeting on August 3, 2000. • Planning Commission public hearing was advertised in the Salt Lake Tribune and Deseret News on August 24, 2000. • Planning Commission held a public hearing regarding the issue September 7, 2000. • Planning Commission held a public hearing regarding the issue on October 5, 2000. • The Administration asked the Planning Commission to review their proposed changes to the ordinance on February 15, 2001. • The Planning Commission held a public hearing regarding the issue on April 19, 2001. Planning Commission Findings: The Planning Commission finds the following: • The existing vending ordinance has unnecessary restrictions, which may be modified to simplify the permitting process. • The proposed ordinance simplifies the process of approving vending carts in City Parks and other areas that currently require conditional use approval. • The vending ordinance is consistent with the Downtown Master Plan. • The proposed changes will enhance vending opportunities and profitability while eliminating existing conflicts. Planning Commission Recommendation: The Planning Commission forwarded a positive recommendation to the City Council for Petition 400-00-41 by the Salt Lake City Community and Economic Development Department, subject to the following conditions: 1. Prohibit vending carts in the CB, CC, CG and CS zones (these zoning districts presently allow outdoor sales). Allow vendor carts in all Downtown zones, Business Park, Sugar House, Gateway, Light and Heavy Manufacturing and Research Park zoning districts. Vendors in the CG zone will be prohibited with the exception of the Downtown corridor from North Temple to 900 South and 600 West to 200 East, and wording to the effect that vendors may sell only "on non- residentially zoned property within the Expanded Central Business District"(as defined by the vending ordinance)will be added to the appropriate ordinance section. Note: The previous ordinance did not specifically allow or prohibit vendors outside of the Expanded Central Business District or the Sugar House Business District. However, vendors were allowed in all zoning districts that allow outdoor sales by administrative interpretation. The proposed ordinance changes will codify which zoning districts vendors are allowed. The proposed zoning districts were chosen by the Planning Commission after hearing comment from Community Councils regarding the impacts of vendors on their neighborhoods. The communities impacted most were West Salt Lake, Poplar Grove and Peoples Freeway. 2. That the Staff be directed to work with the Health Department to determine an appropriate number of coolers and their size for health and safety. Note: The staff and Health Department conclusion was three coolers and one water cooler. 3. That five permits be allowed per block face, including Main Street. Note: This change was made at the April Planning Commission meeting. 4. That the Gallivan Plaza (during events) be specifically listed as a site subject to spacing regulations. Note: The Gallivan Plaza Manager and Arts Council Events Coordinator expressed concern over conflicts with event vendors. 6. That in anticipation of the Olympics the moratorium on the issuance of vending permits within the geographic area of the Olympic Special Event application go into effect January 31, 2002 and expire by April 1, 2002,unless there is already an agreement between the City and SLOC in conflict with those dates. 7. That the definition of "vending cart"be added to the zoning ordinance definitions. Note: This is necessary due to the fact that vending carts are now listed in the "use tables"accompanying each zoning district. 8. That the City may authorize up to an additional four (4) sites for each licensed cart. Note: This is intended to allow vendors to `follow business" and activate unclaimed vending locations on a limited basis. 9. That the Temporary Use Ordinance be interpreted so as to not allow vendors in zoning districts where they would otherwise not be allowed. Note: This is to plug a "loophole"which had been used to allow vendors in areas they were not specifically permitted by ordinance. Master Plan: The Downtown Master Plan encourages the lively use of Downtown streets and increased activity levels. The Administration has made it a high priority to encourage small businesses in all other portions of the City. Relevant Ordinances: Title 21A.50 of Salt Lake City Code. Amendments CONTENTS Chronology Proposed Ordinance Alternative Ordinance Notice of City Council Public Hearing Newspaper Notice Mailing Notice Mailing List Planning Commission Hearing Newspaper Notice Staff Report Additional Staff Comments Minutes Original Petition Chronology Chronology July, 2000 The issue of providing more opportunities for vendors was presented to the Downtown Alliance and Retail Merchants Association. August 3, 2000 Formal petition initiated by the Salt Lake City Community and Economic Development Department. August 3, 2000 The issue was presented to the Community Council Chairs at their monthly Mayor's meeting. August 24, 2000 The Planning Commission public hearing was advertised in the Salt Lake Tribune and Deseret News. September 7, 2000 Planning Commission held a public hearing regarding the issue. October 5, 2000 Planning Commission held a public hearing regarding the issue. October 6, 2000 The petition was forwarded to the Attorneys Office to create an ordinance. October 30, 2000 The ordinance was received by Planning Staff. October 31,2000 The petition was transmitted to the Administration. February 15, 2001 The Administration asked the Planning Commission to review their proposed changes to the ordinance. April 19, 2001 The Planning Commission held a public hearing regarding the issue. April 23, 2001 The petition was forwarded to the Attorneys Office to create a new ordinance. May 24, 2001 The ordinance was received by Planning Staff. June 2001 Second ordinance was requested by CED, incorporating extra comments. Request was made to Attorneys Office to draft second ordinance. July 20,2001 Staff received second ordinance. October,2001 Staff received third ordinance _ Planning Commission Proposed Ordinance SALT LAKE CITY ORDIANCE No. of 2000 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS, PURSUANT TO PETITION NO. 400-00-41. WHEREAS, the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS, the City Council of Salt Lake City, Utah, finds after public hearings before its own body and before the Planning Commission, that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW, THEREFORE,be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 SIDEWALK VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter, the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District"means the following streets within the City and all areas bounded within such streets: 1.North Temple Street on the north, from FourthSixth West Street to Third West Street; 2. Third West Street on the east, from North Temple Street to South Temple Street; 3. South Temple Street on the north, from Third West Street to Second East Street, on the south side of South Temple Street only; 4. Second East Street on the east from South Temple Street to Sixth South Street; 5. Sixth South Street on the south from Second East Street to State Street; 6. State Street on the east from Sixth South Street to Ninth South Street; 7. Ninth South Street on the south from State Street to FourthSixth West Street; 8. FourthSixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating area means a portion of a sidewalk which has been designated by the City for the conduct of business. C. "Sidewalk vending cart" means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor" means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. one, of the following: I. Food for immediate consumption, including beverages; or 2. inflated balloons and/or fresh cut flowers. FE."Special event" means the Days of'47 Parade, Christmas Parade, children's parades or other special events which the Mayor shall so designate. G.F."Sugar House Business District" means those streets within Salt Lake City as follows: 1. Twenty First South Street from Ninth East Street to Thirteenth East Street; 2. Highland Drive Street between Ramona Avenue and the I-80 Freeway; 3. Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District,the Sugar House Business District, city parks P' Pa k, Di weedy Park and Washington Square, in accordance I with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services, for profit, on any sidewalk within the City, except as provided by this Chapter or by subsection 5.64.01 OC of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to newsracks,telephone or telex booths or stands, post boxes,nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message. (Ord. 12-91 § 1, 1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West, or from 300 to 400 West and 200 to 400 South, or from 300 to 400 West and North Temple to 300 North, during the time period of January 31,2002 to March 31,2002. Vending on 2 private property, consistent with Section 5.65.220, is not included within this moratorium. 5.65.030 Regulatory Permit,Lease Or Revocable Land Use Permit,And Fees Required: No person shall conduct business on any City sidewalk, without first obtaining a valid base business license and entering into a lease or revocable land use permit for the use of City property, and paying the required fees. In addition to the base business license fee, the annual lease or revocable land use permit payment shall be one hundred seventy five dollars($175.00)determined by administrative policy. 5.65.040 Application For Regulatory Permit: Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. Individual applications shall be accepted for a single product type only. Written notification shall be provided to the permits and licensing office of any proposed change of product type. D. A certified copy of all permits required by State or local health authorities. E. A signed statement that the permittee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including, but not limited to, a description of any mobile container or device, to be used for transport or to display products or services to be offered for sale. The description of the container or device shallmay-be in the form of detailed scale drawings of the device to be used, I material specifications, and in isometric drawing in color of at least two (2)views showing all four(4) sides of the vending device and any logos,printing or signs which will be incorporated and utilized in the color scheme. Said description shallmav include any additional items (e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area-only. In-order to allow a single cart mobility to coincide with daily changes in activity,the City may authorize,per administrative policy, up to four additional secondary locations, based upon availability after awarding primary locations. 3 Multiple operating areas may not be contiguous. A separate revocable permit must accompany each operating area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued, remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application tlerefertherefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. No sidewalk vending permit shall be issued or continued in operation,unless there is on file with the city recorder a certificate of insurance executed by an insurance company or association authorized to transact business in this state, approved as to form by the city attorney,that there is in full force and effect public liability, food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended, or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant, unless the supervisor finds one or more of the following: 1. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year,the zoning administrator, in consultation with the city's planning division„ shallmay set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. 4 Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing, if the number of applications warrant and it is deemed necessary by the Zoning Administrator. Iicense but who choose to move to another locationshall b ar aed by_ Nance drawing to be held h f T : 1 nth n li .at•„ fer„ ermits shall he aeeepted-by---the-eity-beginnin-g-December 1st. New applications received between December 1st and December 31st shall be award€ad-by ch a , at a date and time to be determined by the zoning, , a istrator but not ►ater than b b C . . 7 b December 31st, he/she will be considered-on-a-fifst- e . frst >d b„sis• f,r b b . Incomplete applications shall be rejected. 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permittee,the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31st of the year so issued. B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently, by written notice from the traffic engineer to permittee, in the event of construction or remodeling of any nearby structure or of a force majeure which, in the opinion of the traffic engineer,renders permittee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section,means acts of God, acts of public enemy,blockades, wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances, or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5 5.65.090 Use, site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications therefer-therefore shall be reviewed and approved by the planning official to assure the — proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons;and 3. Fresh cut flowers:: and 4. Daily or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District,the Sugar House Business District, city parks Pioneer Part Dino"a..Part r or Washington Square. B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination,the traffic engineer shall consider the width of sidewalk,the presence of bus stops, truck loading zones,taxi stands or hotel zones, the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture, including but not limited to: signposts, lamp posts, fire hydrants,parking meters, bus shelters, benches,phone booths, street trees and newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding a certain application,he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. A. No more than onefive vending permit operating areas shall b l a f ach three South, O other block o e permit shall be allowed per block face except that if the block face exceeds six hundred sixty feet, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. 6 BC. Vending carts may be located on private plazas and private open space on non- _ residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. GD. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window. E. D. No food vendor shall operate within 100 feet on the same linear block face of a door to a restaurant, City authorized Special Event selling food (outside public right- of-way), Gallivan Plaza(during events), or fruit or vegetable market, with direct access to the sidewalk. No flower or balloon vendor shall operate within 100 feet on the same linear block face of a door to a flower or balloon shop or City authorized Special Event selling flowers/balloons (outside public right-of-way), Gallivan Plaza (during events),with direct access to the sidewalk. No newspaper/magazine vendor shall operate within 100 feet on the same linear block face of a door to a newspaper/magazine shop or City authorized Special Event selling newspapers/magazines (outside public right-of-way), Gallivan Plaza(during events), with direct access to the sidewalk. In the event of multiple entries/spacing requirements.the above requirement does not invalidate a legally authorized vending permit area. The vendor will still be authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permittee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design.review. 7 The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition,the planning official, shall consider whether or not the proposed design,materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart, together with the operator and any trash receptacle, cooler or chair, shall not exceed twentythirty-four square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed six eight-feet excluding including-hitch; the hitch shall not extend the length L'the cart m e than o e et C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed Forty sixty square feet in area. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to oncthree coolers (stacked), one water container, one trash receptacle and one chair external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit,the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard,wood or plastic containers, wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; _ 8 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary, to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. B. Seasonal chances in product types shall be acceptable as long as not more than one single product type is sold at the same time. C. Food and non food items shall not be vended from the same cart. 5.65.180 Special events. The restrictions of this chapter notwithstanding,nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter, to conduct concurrent sidewalk vending operations within the expanded central business district, or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the general public, such authorization of special event vendors shall not require removal of a permittee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event, unless otherwise provided under the city's ordinances. If the City is closing a public right-of-way to general access, either partially or fully, in order to accommodate a special event,the City may relocate the vendor to an adjacent location outside the special event boundary, subject to the spacine requirements of Section 5.65.120.D. 5.65.190 Denial, suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. 3. Any required license or permit has been suspended,revoked or canceled; or 4. The permittee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 5. That the permittee has abandoned the use of the permit operating area for the conducting of business. The failure of a permittee to vend from a vending cart within 9 the permittee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation,the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons therefertherefore. Such notice shall contain the further provision that it shall become final and effective within ten days, unless such action is the result of a failure of the permittee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A, Zoning,where they conform to the requirements below. 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E; the requirement of insurance under Section 5.65.060; the requirement of location review under Section 5.65.110; the suspension or revocation of business license due to a lack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; — 10 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall be required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots, regardless of zoning district, is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals, neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Commercial Districts,"shall be and hereby is amended to read as set forth on Exhibit"A"attached hereto. SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code, entitled"Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B"attached hereto. SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled"Table of Permitted and Conditional Uses for Downtown Districts,"shall be and hereby is amended to read as set forth on Exhibit"C"attached hereto. 11 SECTION 6. The table located at Section 2I A.31.050 of the Salt Lake City Code entitled"Table of Permitted and Conditional Uses for Gateway Districts,"shall be and hereby is amended to read as set forth on Exhibit"D"attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled"Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit"E"attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart"includes any non-motorized mobile device or push cart from which limited types of products,as listed in Chapter 5.65 of this Title,are sold or offered for sale directly to any consumer,where the point of sale is conducted at the cart,where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City,Utah,this day of ,2000. CHAIRPERSON ATTEST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on 12 Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER (SEAL) Bill No. of 2000. Published: G:1Ordina01\Amending Code re vending carts-May 23,2001.doc 13 Exhibit A 21A.26.080 Table Of Permitted And Conditional Uses For Commercial Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Residential Assisted living center,large P P P Assisted living center,small P P P Dwelling units,including multi-family dwellings,above or below P P P P P P first story office,retail and commercial uses or on the first story,as defined in the Uniform Building Code,where the unit is not located adjacent to the street frontage Group home,large(see Section 2IA.36.070 of this Title) P P Group home,small(see Section 21A.36.070 of this Title) P P Halfway homes(see Section 21 A.36.110 of this Title) P Living quarters for caretaker or security guard P P P P P P Multi-family residential P Nursing home P P P Residential substance abuse treatment home,large(see Section C P 21A.36.100 of this Title) Residential substance abuse treatment home,small(see Section C P 21 A.36.100 of this Title) Transitional treatment home,large(see Section 21A.36.090 of this C P Title) Transitional treatment home,small(see Section 21A.36.090 of this P P Title) Transitional victim home,large(see Section 21A.36.080 of this P P Title) Transitional victim home,small(see Section 21 A.36.080 of this P P Title) Office And Related Uses Financial institution,with drive-through facilities P P P P P Financial institutions,without drive-through facilities P P P P P P Medical and dental clinics P P P P P p Offices P P P P P P Veterinary offices,operating entirely within an enclosed building P P P P P and keeping animals overnight only for treatment purposes Retail Sales And Services Auction sales P P Automobile repair,major P C P Automobile repair,minor C P P P P P Automobile sales/rental and service P P Boat/recreational vehicle sales and service P P Car wash as accessory use to gas station or convenience store that P P P P P sells gas Car wash,with or without gasoline sales P P P Department stores P P — Equipment rental,indoor and outdoor P P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Furniture repair shop P P P P P Gas station(may include accessory convenience retail and/or"minor P P P P P P repairs"as defined in Part VI,Chapter 21A.62 of this Title) Health and fitness facility P P P P C Liquor store C C C C C Manufactured/mobile home sales and service P Pawnshop P Restaurant,with drive-through facilities C P P P P P Restaurants,without drive-through facilities P P P P P P Retail goods establishments with drive-through facilities C P P P P P Retail goods establishments without drive-through facilities P P P P P P Retail services establishments with drive-through facilities C P P P P P Retail services establishments without drive-through facilities P P P P P P Truck repair,large P Truck sales and rental,large P P Upholstery shop P P P P P Value retail/membership wholesale P Institutional Uses(sites<2 acres) Adult daycare center P P P P P P Child daycare center p P P P P P Community recreation centers on lots less than 4 acres in size P P P P P P Government facilities(excluding those of an industrial nature and P P P P P P prisons) Museum P P P P Music conservatory P P P P Places of worship on lots less than 4 acres in size P P P P P Schools,professional and vocational P P P P P P Commercial And Manufacturing Bakery,commercial P Blacksmith shop P Blood donation centers,commercial and not accessory to a hospital C P or medical clinic Cabinet and woodworking mills P Commercial laundries,linen service and dry cleaning P Industrial assembly P Laboratory;medical,dental optical P P P P Laboratory;testing C C P Mini-warehouse P P Motion picture studio P P P Photo finishing lab P P P P Plant and garden shop,with outdoor retail sales area C C C C C P Sign painting/fabrication P Warehouse P P Welding shop P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CS1 CSHBD1 CG Wholesale distributors P P Recreation,Cultural And Entertainment Amusement park P P Art gallery P P P P P P Art studio P P P P P P Commercial indoor recreation P P P P Commercial outdoor recreation C P Conu„ercial video arcade p P P Dance studio P P P P P P Live performance theaters P P P P Miniature golf P P P Movie theaters P P P Natural open space and conservation areas C C C C C C Parks and playgrounds,public and private,on lots less than 4 acres P P P P P P in size Pedestrian pathways,trails,and greenways P P P P P P Private club C C P P P Sexually oriented businesses p Squares and plazas on lots less than 4 acres in size P P P P p p Tavern/lounge/brew pub;2,500 square feet or less in floor area P P P P Tavem/lounge/brew pub;more than 2,500 square feet in floor area C C P P Miscellaneous Accessory uses,except those that are specifically regulated in this P P P P P P Chapter,or elsewhere in this Title Ambulance services,dispatching,staging and maintenance P p p P conducted entirely within an enclosed building Ambulance services,dispatching,staging and maintenance utilizing P outdoor operations Auditorium P P P P Auto salvage(indoor) P Bed and breakfast P P P P P P Bed and breakfast inn P P P P P P Bed and breakfast manor C3 C3 P P P Bus line terminals P P Bus line yards and repair facilities P Commercial parking garage or lot C P P Communication towers P P P P P Communication towers,exceeding the maximum building height C C C C C Contractor's yard/office(including outdoor storage) C P Farmers'market C C P Flea market(indoor) P P P P Flea market(outdoor) P Funeral home P P P P Homeless shelter C LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Hotel or motel P P P Kennels P Limousine service,utilizing 4 or more limousines P Limousine service,utilizing not more than 3 limousines C C P Micro brewery P Park and ride lots C C C P P Park and ride,parking shared with existing use P P P P P Pet cemeteries4 p Off-site parking;as per Chapter 21A.44 of this Title P C P Outdoor sales and display C P C P P Outdoor storage C P Outdoor storage,public C P Precision equipment repair shops p P Public/private utility buildings and structures C C P P C P Public/private utility transmission wires,lines,pipes and poles2 P P P P P P Radio,television station C P P Recreational vehicle park(minimum 1 acre) C Recycling collection station P P P P P P Reverse vending machines P P P P P P Taxicab facilities,dispatching,staging and maintenance P Temporary labor hiring office P Vehicle auction use P Vending Carts on Private Property as per Chapter 5.65 of this P Title Wireless telecommunications facility(see Table 21A.40.090E of this Title) Qualifying Provisions: 1. Development in the CS District and CSHBD District shall be subject to planned development approval pursuant to the provisions of Section 21 A.54.150 of this Title. 2. See subsection 21A.02.050B of this Title for utility regulations. 3. When located in a building listed on the Salt Lake City Register of Cultural Resources(see subsections 21A.24.010S of this Part and 21A.26.010K of this Chapter). 4. Subject to Salt Lake City/County Health Department approval. Exhibit B 21A.28.040 Table Of Permitted And Conditional Uses For Manufacturing Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, MANUFACTURING P=Permitted Use DISTRICTS Use M-1 M-2 Office And Related Uses Financial institutions,with or without drive-through facilities P Offices,medical and non-medical p Retail Sales And Services Automobile and truck repair p p Automobile and truck sales and rental(including large truck) P p Automobile parts sales p p Building materials distribution p p Communication services p p Convenience store p p Electronic repair shop p Equipment rental p p Furniture repair shop p p Laundry;dry cleaning and dyeing p p Liquor store C p Package delivery facility p p Recreational vehicle sales and service P p Restaurant,with or without drive-through facilities p Tire distribution retail/wholesale p p Truck repair,large p p Upholstery shop p p Institutional Uses(sites<2 acres) Adult daycare center p p Child daycare center p p Local government facilities p p Schools,professional and vocational(no outdoor activities) P p Schools,professional and vocational(w/outdoor activities) P Commercial Uses Blacksmith shops p p Carpet cleaning p p Commercial laundry,linen service and dry-cleaning establishments P P Diaper service p p Gas station(sales and/or minor repair) p p Greenhouse for food and plant production p Heavy equipment(rental) p p Heavy equipment(sales and service) p p Precision equipment repair p p Welding shop p p Manufacturing Uses LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,MANUFACTURING P=Permitted Use DISTRICTS Use M-1 M-2 Bottling plant p p Cabinet making/woodworking mills p p Chemical manufacturing and storage C Commercial Bakery p p Concrete manufacturing C p Drop-forge industry p Explosive manufacturing and storage C Flammable liquids or gases,heating fuel distribution and storage p Food processing p p Grain elevator p Heavy manufacturing p Incinerator,medical waste/hazardous waste C Industrial assembly p p Laboratory;testing p p Light manufacturing p p Moving and storage p p Outdoor storage,public p p Paint manufacturing p Photo finishing lab p p Printing plant p Publishing company p p Railroad freight terminal C Railroad repair shop p Recycling collection station p p Recycling processing center(indoor) p p Recycling processing center(outdoor) C p Refinery of petroleum products C Rock,sand and gravel storage and distribution C p Sign painting/fabrication p p Truck freight terminal p p Warehousing p p Wholesale distributors p p Recreation,Cultural And Entertainment Commercial indoor recreation p p Commercial outdoor recreation p p Commercial video arcade p p Natural open space and conservation areas p p Pedestrian pathways,trails,and greenways p p Sexually oriented business p p Taverns,private clubs,brew pubs and micro breweries p Miscellaneous Accessory uses, except those that are otherwise specifically regulated in P p this Chapter,or elsewhere in this Title LEGEND PERMITTED AND CONDITIONAL c=Conditional Use USES,MANUFACTURING P=Permitted Use DISTRICTS Use --- —._ M-1 M-2 Agricultural use P P Animal pound,kennel and veterinary offices offering general overnight P P boarding Automobile salvage and recycling(indoor) P P Automobile salvage and recycling(outdoor) C P Boilcrworks Bus line terminals - _ — P---- — P — Bus line yards and repair facilities P Communication towers P P Communication towers,exceeding the maximum building height C C Contractor's yard/office(with exterior storage) P P Display room;wholesale P P Hotel or motel Limousine service P P Living arters for caretaker or security uard,limited to uses on lots 4 P P acres in size or larger Motion picture studio P P Off-site parking 1' P Outdoor storage and display P P Park and ride lots P P Park and ride,parking shared with existing use P P Pet cerneteries2P Poultry farm or processing plant P Public/private utility buildings and structures P P Public/private utility transmission wires,lines,pipes and poles' P P Radio,television station ---- Railroad"spur"delivery facility Raising of fur-bearing animals C P Sewage treatment plant C C Slaughterhouses C P Solid waste transfer station C C Stockyards C P Taxicab operation;dispatching,staging and maintenance P P Vehicle auction establishment P P Vendintr carts on private property as per Chapter 5.65 of this Title P P Wireless telecommunications facility(see Table 21A.40.090E of this Title) Qualifying Provisions: I.See subsection 21A.02.050B of this Title for utility regulations. 2.Subject to Salt Lake City/County Health Department approval. Exhibit C 21A.30.050 Table Of Permitted And Conditional Uses For Downtown Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Residential Dwelling units, including multiple-family dwellings above or below first P P P P story office,retail and commercial uses or on first story,as defined in the Uniform Building Code,where the unit is not located adjacent to the street frontage Group home,large(see Section 21A.36.070 of this Title) P P Group home,small(see Section 21A.36.070 of this Title) P P Homeless shelter C Multiple-family dwellings C C P C Residential substance abuse treatment home,large(see Section 21A.36.100 P C of this Title) Residential substance abuse treatment home, small (see Section P P 21A.36.100 of this Title) Transitional treatment home,large(see Section 21 A.36.090 of this Title) P C Transitional treatment home,small(see Section 2IA.36.090 of this Title) P P Transitional victim home,large(see Section 21 A.36.080 of this Title) P C Transitional victim home,small(see Section 21A.36.080 of this Title) P P Office And Related Uses • Adult daycare centers P P P P Child daycare centers P P P P Financial institutions,with drive-through facilities P P C P Financial institutions,without drive-through facilities P P P P Medical and dental clinics P P P P Offices P P P P Veterinary office, operating entirely within an enclosed building and P P keeping animals overnight only for treatment purposes Retail Sales And Services Automobile sales/rental and service C C Department stores P P Furniture repair shop P P P P Gas station, may include accessory retail sales and/or minor repair, as C P C C defined in Part VI,Chapter 21A.62 of this Title • Health and fitness facility P P P P Liquor store C C C C Merchandise display rooms P P P P Pawnshop C P Restaurants,with drive-through facilities P P P P Restaurants,without drive-through facilities P P P P Retail goods establishments P P P P Retail laundries,linen service and dry cleaning P P P P Retail services establishments p P P P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-I D-2 D-3 D-4 Upholstery shop P P Institutional Uses(sites<4 acres) Colleges and universities P P P P Community and recreation centers,public and private, on lots less than 4 P P P P acres in size Government facilities(excluding those of an industrial nature and prisons) P P Libraries P P Museum P P Music conservatory P P Places of worship P P P P Schools,K-12 private p P Schools,K-12 public p P Schools,professional/vocational P P P P Seminaries and religious institutes P P Recreation,Cultural And Entertainment Art galleries P P P P Artists lofts and studios P P P P Brew pub(indoor) P P P P Brew pub(outdoor) P P C P Commercial indoor recreation P P P P Commercial video arcade P P P P Motion picture theaters P P P P Natural open space and conservation areas on lots less than 4 acres in size C C C C Parks and playgrounds on lots less than 4 acres in size P P P P Pedestrian pathways,trails,and greenways C C C C Performance arts facilities P P P P Private club(indoor) P P C P Private club(outdoor) P P P P Sexually oriented business P P P Squares and plazas on lots less than 4 acres in size C C C C Tavern/lounge(indoor) P P P P Tavern/lounge(outdoor) P P C P Miscellaneous Accessory uses, except those that are otherwise specifically regulated in P P P P this Chapter,or elsewhere in this Title Automobile repair,major C P C C Automobile repair,minor C P C C Bed and breakfast P P P P Bed and breakfast inn P P P P Bed and breakfast manor P P P P Blood donation center, commercial and not accessory to a hospital or P medical clinic Bus line terminal P Bus line yards and repair facilities P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Commercial laundry, linen service, and commercial dry-cleaning C P C C establishments Commercial parking garage,lot or deck C P C C Communication towers p P P P Communication towers,exceeding the maximum building height C C C C Food product processing/manufacturing P Graphic/design business P P P P Heliports,accessory C C Homeless shelter C Hotels and motels P P P P Industrial assembly C C Limousine service p Micro breweries C Mini-warehouse P P Off-site parking P P P P Outdoor sales and display C P P C Precision equipment repair shops P C Public/private utility buildings and structures C C C C Public/private utility transmission wires,lines,pipes and poles' P P P P Publishing company P P P P Radio stations P P p 2 P Railroad passenger station P P P P Social service missions and charity dining halls P P Street vendors(see Chapter 5.64 of this Code) Temporary labor hiring office P C TV stations P P P Vending carts on private property as per Chapter 5.65 of this Title P P P p Warehouse P P Warehouse,accessory P p P p Wholesale distribution P P Wireless telecommunications facilities (see Table 21A.40.090E of this Title) Qualifying Provisions: 1. See subsection 21A.02.050B of this Title for utility regulations. 2. Radio station equipment and antennas shall be required to go through the site plan review process to ensure that the color, design and location of all proposed equipment and antennas are screened or integrated into the architecture of the project and are compatible with surrounding uses. Exhibit D 21A.31.050 Table Of Permitted And Conditional Uses For Gateway Districts: LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Residential Uses Group home,small(see Part IV,Section 21 A.36.070 of this Title) P Group home,large(see Part IV,Section 21A.36.070 of this Title) C Halfway homes(see Part IV,Section 21A.36.110 of this Title) Living quarters for caretaker or security guard P Multiple-family dwellings P Residential substance abuse treatment home,small(see Part IV,Section 21A.36.100 P of this Title) Residential substance abuse treatment home,large(see Part IV,Section 21A.36.100 C of this Title) Single-family,residence-attached P Transitional treatment home,small(see Part IV,Section 21 A.36.090 of this Title) P Transitional treatment home,large(see Part IV,Section 21A.36.090 of this Title) C Transitional victim home,small(see Part IV,Section 21A.36.080 of this Title) P Transitional victim home,large(see Part IV,Section 21A.36.080 of this Title) C Office And Related Uses Financial institutions,with drive-through facilities C Financial institutions,without drive-through facilities P Medical and dental clinics P Offices P Veterinary office, operating entirely within an enclosed building and keeping animals overnight only for treatment purposes Retail Sales And Services Auction sales(indoor) P Automobile repair,major(indoor) P Automobile repair,major(outdoor) Automobile repair,minor(indoor) P Automobile repair,minor(outdoor) Automobile sales/rental and service(indoor) P Automobile sales/rental and service(outdoor) Boat/recreational vehicle sales and service(indoor) P BoaUrecreational vehicle sales and service(outdoor) Car wash C Department stores Electronic repair shop P Equipment rental,indoor and outdoor P Furniture repair shop Gas station (may include accessory convenience retail and/or minor repairs as C LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU defined in Part VI,Chapter 21A.62 of this Title) Health and fitness facility P Liquor store C Merchandise display rooms P Pawnshop Restaurants,with drive-through facilities Restaurants,without drive-through facilities P Retail goods establishments P Retail services establishments P Upholstery shop C Value retail/membership wholesale Institutional Uses Adult daycare center P Child daycare center P Colleges and universities P Community and recreation centers P Government facilities(excluding those of an industrial nature and prisons) P Libraries P Museum P Music conservatory P Places of worship P School,professional and vocational P Schools,K-12 private P Schools,K-12 public P Seminaries and religious institutes P Commercial And Manufacturing Bakery,commercial Blacksmith shop Blood donation centers,commercial and not accessory to a hospital or medical clinic Bottling plant Cabinet and woodworking mills Carpet cleaning P Industrial assembly C Laboratory;medical,dental,optical P Mini-warehouse C Motion picture studio C Moving and storage Photo finishing lab P Plant and garden shop,with outdoor retail sales area C Printing plant C LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Publishing company P Sign painting/fabrication(indoor) Truck freight terminal Warehouse C Welding shop Wholesale distributors C Recreation,Cultural And Entertainment Amusement park C Arenas,stadiums P Art galleries P Artists lofts and studios p Botanical gardens P Brew pub(indoor) P Brew pub(outdoor) C Commercial indoor recreation p Commercial outdoor recreation C Commercial video arcade P Dance studio P Live performance theaters p Miniature golf p Motion picture theaters P Movie theaters P Museums P Park(public and private) P Performance arts facilities P Private club(indoor) P Private club(outdoor) C Private recreational facilities P Tavern/lounge(indoor) P Tavern/lounge(outdoor) C Zoological park C Miscellaneous Accessory uses, except those that are otherwise specifically regulated in this P Chapter,or elsewhere in this Title Ambulance services, dispatching, staging and maintenance conducted entirely C within an enclosed building Amphitheater P Auditorium P Auto salvage and recycling(indoor) C Bed and breakfast p Bed and breakfast inn p _ LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Bed and breakfast manor p Bus line terminal C Bus line yards and repair facilities C Commercial parking garage,lot or deck C Communication towers p Communication towers,exceeding the maximum building height C Community garden p Contractor's yard/office(with exterior storage) C Emergency response and medical service facilities including fire stations and living C quarters Farmer's market p Flea market(indoor) p Funeral home Graphic/design business p Heliports,accessory C Hotels and motels p Limousine service Micro breweries Off-site parking p Outdoor sales and display C Park and ride lots C Park and ride,parking shared with existing use p Precision equipment repair shops Public/private utility buildings and structures C Public/private utility transmission wires,lines,pipes and poles C Radio stations C Railroad passenger station C Railroad"spur"delivery facility C Recycling collection station Reverse vending machines Social service missions and charity dining halls C Street vendors(see Chapter 5.64 of this Code) Taxicab facilities,dispatching,staging and maintenance Television station C Temporary labor hiring office p Vending Carts on private property as per Chapter 5.65 of this Title. P Wireless telecommunications facilities(see Table 21A.40.090E of this Title) (Ord. 83-98 § 6(Exh. D), 1998) Exhibit E 21A.32.140 Table Of Permitted And Conditional Uses For Special Purpose Districts: LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Residential Assisted living facility p (see Section 21 A.36.050 of this Title) Congregate care facility p p p Dwelling units,above first p floor commercial or office Group home,large(see C Section 21A.36.070 of this Title) Group home,small(see p Section 21A.36.070 of this Title) Living quarters for P P P P P p p caretakers and security • guards Manufactured home p Mobile homes p Multi-family(no p maximum density limitation) Multiple-family dwellings p Nursing care facility p p p Resident health care p facility(see Section 21 A.36.040 of this Title) Single-family attached p dwellings Single-family detached P p p dwellings Twin home and two- p family dwellings Rooming(boarding)house p Office And Related Uses Accessory offices p supporting an institutional use Financial institutions,with P P P3 drive-through facilities Financial institutions, P P p without drive-through facilities Government offices P P P p p p p LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MN EI MU Medical and dental offices P P p p p Offices P p p Offices,research related P P p Veterinary offices, P p operating entirely within an enclosed building and keeping animals overnight only for treatment purposes Retail Sales And Services Accessory retail sales and P p p p p p p services uses,when located within the principal building and operated primarily for the convenience of employees Commercial service, C establishments Gas station(may include P3 accessory convenience retail and/or minor repairs as defined in Part VI, Chapter 21A.62 of this Title) Restaurants with drive- P3 through facilities Restaurants without drive- p through facilities Retail goods p establishments Retail service p establishments Institutional Uses Adult daycare centers p p p Child daycare centers P P P p p p p Cemeteries and accessory P crematoriums Colleges and universities p p Community and recreation p P p p p centers Conference center P p C p Convention center,with or C without hotels Convents and monasteries p p Dental P p C p laboratories/research facilities LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Emergency response and C P P medical service facilities including fire stations and living quarters Exhibition hall C C P Hospitals,including C P P accessory lodging facilities Libraries P P P Medical and dental clinics P P P P p Medical research facilities P P P Medical/nursing schools p Meeting halls of P P P P membership organizations Nursing care facility; P p sanitariums Pet cemetery p4 pas Philanthropic uses P P Places of worship P P p Prison or jail C Religious assembly with C P exhibit hall Research,commercial, P P P C scientific,educational Reuse of schools and C C C P churches Seminaries and religious P P P institutes Schools,K-12 private P P Schools,K-12 public P Schools, C P P P P professional/vocational Recreation,Cultural And Entertainment Art galleries P Arenas,stadiums, C C C fairgrounds Botanical gardens C Community gardens as p defined in Part VI,Chapter 21A.62 of this Title Country clubs P Dance studio p Golf courses P P P Movie theaters/live p performance theaters — Museums C P p P LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Natural open space and P conservation areas Nature P P P preserves/conservation areas,public and private Park(public) C P P P Pedestrian pathways,trails P and greenways Private recreational P P P P P facilities Tavern/lounge/brew pub; C 2,500 square feet or less in floor area Zoological park P Airport And Related Uses Air cargo terminals and P P package delivery facilities. Airline service and P maintenance operations Airline ticketing and P baggage processing Airport operations P (including air traffic control,navigational aids, emergency and maintenance operations) Alcoholic beverage P consumption establishments(on- premises)(within terminal complex only) Automobile rental P P agencies Commercial recreation P center(within terminal complex only) Financial institutions P (within terminal complex only) Fuel storage for on-site P distribution General aviation facilities P Heliport C C P C C Light manufacturing P Meeting rooms(within P terminal complex only) Offices P LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI Mil EI MU Restaurants;other food P services Retail goods P establishments specialty, primarily for airport customers(within terminal complex only) Retail services P establishments primarily for airport customers (within terminal complex only) Miscellaneous Accessory uses,except P P P P P P P P P P P P those that are otherwise specifically regulated in this Chapter,or elsewhere in this Title Agricultural uses P P Bed and breakfast C 2 P P Bed and breakfast inn C 2 P P Bed and breakfast manor P P Communication towers P P C P P P P P Communication towers, C C P C C C C exceeding the maximum building height Concrete or asphalt P manufacturing Hotels and motels C C P P Industrial assembly P P Jewelry fabrication and P associated processing Kennels,on lots of 5 acres C P or larger Local government P P P P P P P P P P P facilities Mining and extraction of P minerals and materials, including ore,stone,sand, gravel,oil and oil shale Off-site parking P C C C C Outdoor storage,accessory P P P Park and ride lots P C Park and ride parking, P P P P P P P shared with existing use Parking structure P P P P P P C C P P Production related to on- P C LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU site research Public/private utility C C C C C P C C C C C C buildings and structures Public/private utility P P P P P P P P P P P P transmission wires,lines, pipes and polesl Seasonal farm stands p Storage of extracted p material Transportation terminals, p C including bus,rail and trucking Trucking,repair,storage p etc.,associated with extractive industries Vending Carts on private P P property as per Chapter 5.65 of this Title Warehouse,accessory to C retail and wholesale business(5,000 square foot or greater floor plate) Warehouse,accessory to retail and wholesale business(maximum 5,000 square foot floor plate) Warehouse,including P p mini-storage warehouses Wholesale distribution P P C Qualifying Provisions: 1. See subsection 21 A.02.050B of this Title for utility regulations. 2. When located in a building listed on the Salt Lake City Register of Cultural Resources. 3. When located on an arterial street. 4. Subject to Salt Lake City/County Health Department approval. 5. In conjunction with,and within the boundaries of,a cemetery for human remains. SALT LAKE CITY ORDIANCE No. of 2000 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS,PURSUANT TO PETITION NO. 400-00-41. WHEREAS,the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS,the City Council of Salt Lake City, Utah, finds after public hearings before its own body and before the Planning Commission, that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW,THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter, the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District"means the following streets within the City and all areas bounded within such streets: 1.North Temple Street on the north, from Sixth West Street to Third West Street; 2. Third West Street on the east,from North Temple Street to South Temple Street; 3. South Temple Street on the north,from Third West Street to Second East Street, on the south side of South Temple Street only; 4. Second East Street on the east from South Temple Street to Sixth South Street; 5. Sixth South Street on the south from Second East Street to State Street; 6. State Street on the east from Sixth South Street to Ninth South Street; 7. Ninth South Street on the south from State Street to Sixth West Street; 8. Sixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating area,"means a portion of a sidewalk which has been designated by the City for the conduct of business. C. "Sidewalk vending cart" means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor" means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. E. "Special event" means the Days of'47 Parade, Christmas Parade, children's parades or other special events which the Mayor shall so designate. F. "Sugar House Business District" means those streets within Salt Lake City as follows: 1. Twenty First South Street from Ninth East Street to Thirteenth East Street; 2. Highland Drive Street between Ramona Avenue and the I-80 Freeway; 3. Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District, the Sugar House Business District, city parks and Washington Square, in accordance with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services, for profit, on any sidewalk within the City, except as provided by this Chapter or by subsection 5.64.010C of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to news racks,telephone or telex booths or stands,post boxes, nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message. (Ord. 12-91 § 1, 1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West, or from 300 to 400 West and 200 to 400 South,or from 300 to 400 West and North Temple to 300 North, during the time period of January 31, 2002 to March 31, 2002. Vending on private property, consistent with Section 5.65.220, is not included within this moratorium. 5.65.030 Regulatory Permit,Lease Or Revocable Land Use Permit,And Fees Required: No person shall conduct business on any City sidewalk,without first obtaining a valid base business license and entering into a lease or revocable land use permit for the use of 2 City property, and paying the required fees. In addition to the base business license fee, the annual revocable land use permit payment shall be determined by administrative policy. 5.65.040 Application For Regulatory Permit: Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. D. A copy of all permits required by State or local health authorities. E. A signed statement that the permitee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including, but not limited to, a description of any mobile container or device,to be used for transport or to display products or services to be offered for sale. The description of the container or device may be in the form of detailed scale drawings of the device to be used, material specifications, and in isometric drawing in color of at least two (2) views showing all four(4)sides of the vending device and any logos,printing or signs which will be incorporated and utilized in the color scheme. Said description may include any additional items (e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area. In order to allow a single cart mobility to coincide with daily changes in activity,the City may authorize,per administrative policy,up to four additional secondary locations,based upon availability after awarding primary locations. Multiple operating areas may not be contiguous. A separate revocable permit must accompany each operating area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued,remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application therefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. 3 No sidewalk vending permit shall be issued or continued in operation, unless there is on file with the city recorder a certificate of insurance executed by an insurance company or association authorized to transact business in this state, approved as to form by the city attorney,that there is in full force and effect public liability, food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended, or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant,unless the supervisor finds one or more of the following: 1. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year, the zoning administrator, in consultation with the city's planning division may set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing, if the number of applications warrant and it is deemed necessary by the Zoning Administrator. 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permitee,the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31 st of the year so issued. 4 B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently, by written notice from the traffic engineer to permitee, in the event of construction or remodeling of any nearby structure or of a force majeure which, in the opinion of the traffic engineer,renders permitee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section, means acts of God, acts of public enemy, blockades,wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances, or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5.65.090 Use, site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications therefore shall be reviewed and approved by the planning official to assure the proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons; 3. Fresh cut flowers; and 4. Daily or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District,the Sugar House Business District, city parks or Washington Square. B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination,the traffic engineer shall consider the width of sidewalk,the presence of bus stops,truck loading zones,taxi stands or hotel zones,the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture, including but not limited to: signposts, lamp posts, fire hydrants,parking meters,bus shelters,benches,phone booths, street trees and 5 newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding a certain application,he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. A. No more than five vending permit operating areas shall be allowed per block face except that if the block face exceeds six hundred sixty feet, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. C. Vending carts may be located on private plazas and private open space on non- residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. D. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window. E. No food vendor shall operate within 100 feet on the same linear block face of a door to a restaurant, City authorized Special Event selling food (outside public right-of- way), Gallivan Plaza(during events), or fruit or vegetable market, with direct access to the sidewalk. No flower or balloon vendor shall operate within 100 feet on the same linear block face of a door to a flower or balloon shop or City authorized Special Event selling flowers/balloons(outside public right-of-way), Gallivan Plaza (during events),with direct access to the sidewalk. No newspaper/magazine vendor shall operate within 100 feet on the same linear block face of a door to a newspaper/magazine shop or City authorized Special Event selling newspapers/magazines (outside public right-of-way), Gallivan Plaza(during events), with direct access to the sidewalk. 6 In the event of multiple entries/spacing requirements,the above requirement does not invalidate a legally authorized vending permit area. The vendor will still be authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permitee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design review. The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition,the planning official, shall consider whether or not the proposed design, materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart, together with the operator and any trash receptacle, cooler or chair, shall not exceed thirty-four square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed eight feet including hitch. C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed sixty square feet in area. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to three coolers (stacked), one water container, one trash receptacle and one chair external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit,the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. 7 A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard,wood or plastic containers, wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary, to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. 5.65.180 Special events. The restrictions of this chapter notwithstanding,nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter,to conduct concurrent sidewalk vending operations within the expanded central business district, or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the general public, such authorization of special event vendors shall not require removal of a permitee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event,unless otherwise provided under the city's ordinances. If the City is closing a public right-of-way to general access, either partially or fully, in order to accommodate a special event, the City may relocate the vendor to an adjacent location outside the special event boundary, subject to the spacing requirements of Section 5.65.120.D. 5.65.190 Denial,suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 8 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. 3. Any required license or permit has been suspended, revoked or canceled; or 4. The permitee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 5. That the permitee has abandoned the use of the permit operating area for the conducting of business. The failure of a permitee to vend from a vending cart within the permitee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation,the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons therefore. Such notice shall contain the further provision that it shall become final and effective within ten days, unless such action is the result of a failure of the permitee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A, Zoning,where they conform to the requirements below. 9 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land Iease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E;the requirement of insurance under Section 5.65.060; the requirement of location review under Section 5.65.110; the suspension or revocation of business license due to a lack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall be required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots, regardless of zoning district, is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals,neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Commercial Districts,"shall be and hereby is amended to read as set forth on Exhibit "A"attached hereto. SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B"attached hereto. 10 SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Downtown Districts," shall be and hereby is amended to read as set forth on Exhibit"C"attached hereto. SECTION 6. The table located at Section 21A.31.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Gateway Districts," shall be and hereby is amended to read as set forth on Exhibit "D"attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit"E"attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart"includes any non-motorized mobile device or push cart from which limited types of products, as listed in Chapter 5.65 of this Title, are sold or offered for sale directly to any consumer, where the point of sale is conducted at the cart, where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah, this day of , 2000. CHAIRPERSON 11 ATTEST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER POVED'zI;TO FO,-M. Salt Lake Cky Mtarney's Otfte Date a'— THY pl 6y (SEAL) Bill No. of 2000. Published: G:\OrdinaOl\Amending Code re vending caits-Clean-May 23,2001.doc 12 Exhibit A 21A.26.080 Table Of Permitted And Conditional Uses For Commercial Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Residential Assisted living center,large P P P Assisted living center,small P P P Dwelling units,including multi-family dwellings,above or below P P P P P P first story office,retail and commercial uses or on the first story,as defined in the Uniform Building Code,where the unit is not located adjacent to the street frontage Group home,large(see Section 21A.36.070 of this Title) P P Group home,small(see Section 21A.36.070 of this Title) P P Halfway homes(see Section 21A.36.110 of this Title) P Living quarters for caretaker or security guard P P P P P p Multi-family residential P Nursing home P P P Residential substance abuse treatment home,large(see Section C P 21A.36.100 of this Title) Residential substance abuse treatment home,small(see Section C P 2I A.36.100 of this Title) Transitional treatment home,large(see Section 21A.36.090 of this C P Title) Transitional treatment home,small(see Section 21A.36.090 of this P p Title) Transitional victim home,large(see Section 21A36.080 of this P P Title) Transitional victim home,small(see Section 21A.36.080 of this P P Title) Office And Related Uses Financial institution,with drive-through facilities P P P P P Financial institutions,without drive-through facilities P P P P P P Medical and dental clinics P p P p P p Offices P P p p P P Veterinary offices,operating entirely within an enclosed building P P P P P and keeping animals overnight only for treatment purposes Retail Sales And Services Auction sales P P Automobile repair,major P C P Automobile repair,minor C P P P P P Automobile sales/rental and service P P Boat/recreational vehicle sales and service P P Car wash as accessory use to gas station or convenience store that P P P P P sells gas Car wash,with or without gasoline sales P P P Department stores p P Equipment rental,indoor and outdoor P P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Furniture repair shop P P P P P Gas station(may include accessory convenience retail and/or"minor P P P P P P repairs"as defined in Part VI,Chapter 21A.62 of this Title) Health and fitness facility P P P P C Liquor store C C C C C Manufactured/mobile home sales and service P Pawnshop P Restaurant,with drive-through facilities C P P P P P Restaurants,without drive-through facilities P P P P P P Retail goods establishments with drive-through facilities C P P P P P Retail goods establishments without drive-through facilities P P P P P P Retail services establishments with drive-through facilities C P P P P P Retail services establishments without drive-through facilities P P P P P P Truck repair,large P Truck sales and rental,large P P Upholstery shop P P P P P Value retail/membership wholesale P I Institutional Uses(sites<2 acres) Adult daycare center P P P P P P Child daycare center P P P P P P Community recreation centers on lots less than 4 acres in size P P P P P P Government facilities(excluding those of an industrial nature and P P P P P P prisons) Museum P P P P Music conservatory P P P P Places of worship on lots less than 4 acres in size P P P P P Schools,professional and vocational P P P P P P Commercial And Manufacturing Bakery,commercial P Blacksmith shop P Blood donation centers,commercial and not accessory to a hospital C P or medical clinic Cabinet and woodworking mills P Commercial laundries,linen service and dry cleaning P Industrial assembly P Laboratory;medical,dental optical P P P P Laboratory;testing C C P Mini-warehouse P P Motion picture studio P P P Photo finishing lab P P P P Plant and garden shop,with outdoor retail sales area C C C C C P Sign painting/fabrication P Warehouse P P Welding shop P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CS CSHBD' CG Wholesale distributors P p Recreation,Cultural And Entertainment Amusement park p P Art gallery P P P P P P Art studio P P P P P P Commercial indoor recreation P P P P Commercial outdoor recreation C P Commercial video arcade p P P Dance studio P P P P P P Live performance theaters P P P P Miniature golf P P p Movie theaters P P p Natural open space and conservation areas C C C C C C Parks and playgrounds,public and private,on lots less than 4 acres P P P P P P in size Pedestrian pathways,trails,and greenways P P P P P P Private club C C P P P Sexually oriented businesses P Squares and plazas on lots less than 4 acres in size P P P P P P Tavern/lounge/brew pub;2,500 square feet or less in floor area P P p p Tavern/lounge/brew pub;more than 2,500 square feet in floor area C C P P Miscellaneous Accessory uses,except those that are specifically regulated in this P P P P P P Chapter,or elsewhere in this Title Ambulance services,dispatching,staging and maintenance P p p P conducted entirely within an enclosed building Ambulance services,dispatching,staging and maintenance utilizing P outdoor operations Auditorium P P p p Auto salvage(indoor) P Bed and breakfast P p P P p p Bed and breakfast inn P P P P P P Bed and breakfast manor C3 C3 P P P Bus line terminals P P Bus line yards and repair facilities P Commercial parking garage or lot C P p Communication towers P P P P p Communication towers,exceeding the maximum building height C C C C C Contractor's yard/office(including outdoor storage) C P Farmers'market C C P Flea market(indoor) p P P p Flea market(outdoor) P Funeral home P P P p Homeless shelter C LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSl CSHBD' CG Hotel or motel P P P Kennels P Limousine service,utilizing 4 or more limousines P Limousine service,utilizing not more than 3 limousines C C P Micro brewery P Park and ride lots C C C P P Park and ride,parking shared with existing use P P P P P Pet cemeteries4 P Off-site parking;as per Chapter 2I A.44 of this Title P C P Outdoor sales and display C P C P P Outdoor storage C P Outdoor storage,public C P Precision equipment repair shops P P Public/private utility buildings and structures C C P P C P Public/private utility transmission wires,lines,pipes and poles2 P P P P P P Radio,television station C P P Recreational vehicle park(minimum 1 acre) C Recycling collection station P P P P P P Reverse vending machines P P P P P P Taxicab facilities,dispatching,staging and maintenance P Temporary labor hiring office P Vehicle auction use P Vending Carts on Private Property as per Chapter 5.65 of this Title P Wireless telecommunications facility(see Table 21A.40.090E of this Title) Qualifying Provisions: 1. Development in the CS District and CSHBD District shall be subject to planned development approval pursuant to the provisions of Section 21A.54.150 of this Title. 2. See subsection 21A.02.050B of this Title for utility regulations. 3. When located in a building listed on the Salt Lake City Register of Cultural Resources(see subsections 21A.24.010S of this Part and 21A.26.01 OK of this Chapter). 4. Subject to Salt Lake City/County Health Department approval. Exhibit B 21A.28.040 Table Of Permitted And Conditional Uses For Manufacturing Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, MANUFACTURING P=Permitted Use DISTRICTS . Use M-I M-2 Office And Related Uses Financial institutions,with or without drive-through facilities P Offices,medical and non-medical p Retail Sales And Services Automobile and truck repair p p Automobile and truck sales and rental(including large truck) P p Automobile parts sales p p Building materials distribution p p Communication services p p Convenience store p p Electronic repair shop p Equipment rental p p Furniture repair shop p p Laundry;dry cleaning and dyeing p p Liquor store C p Package delivery facility p p Recreational vehicle sales and service p p Restaurant,with or without drive-through facilities P Tire distribution retail/wholesale p p Truck repair,large p p Upholstery shop p p Institutional Uses(sites<2 acres) Adult daycare center p p Child daycare center p p Local government facilities p p Schools,professional and vocational(no outdoor activities) P p Schools,professional and vocational(w/outdoor activities) P Commercial Uses Blacksmith shops p p Carpet cleaning p p Commercial laundry,linen service and dry-cleaning establishments P p Diaper service p p Gas station(sales and/or minor repair) P p Greenhouse for food and plant production p Heavy equipment(rental) p p Heavy equipment(sales and service) p p Precision equipment repair p p Welding shop p p Manufacturing Uses LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES,MANUFACTURING P=Permitted Use DISTRICTS Use M-1 M-2 Bottling plant p p Cabinet making/woodworking mills p p Chemical manufacturing and storage C Commercial Bakery p p Concrete manufacturing C p Drop-forge industry p Explosive manufacturing and storage C Flammable liquids or gases,heating fuel distribution and storage p Food processing p p Grain elevator p Heavy manufacturing p Incinerator,medical waste/hazardous waste C Industrial assembly p p Laboratory;testing p p Light manufacturing p p Moving and storage p p Outdoor storage,public p p Paint manufacturing p Photo finishing lab p p Printing plant p Publishing company p p Railroad freight terminal C Railroad repair shop p Recycling collection station p p Recycling processing center(indoor) p p Recycling processing center(outdoor) C p Refinery of petroleum products C Rock,sand and gravel storage and distribution C p Sign painting/fabrication p p Truck freight terminal p p Warehousing p p Wholesale distributors p p Recreation,Cultural And Entertainment Commercial indoor recreation p p Commercial outdoor recreation p p Commercial video arcade p p Natural open space and conservation areas p p Pedestrian pathways,trails,and greenways p p Sexually oriented business p p Taverns,private clubs,brew pubs and micro breweries p Miscellaneous Accessory uses, except those that are otherwise specifically regulated in P p this Chapter,or elsewhere in this Title LEGEND PERMITTED AND CONDITIONAL c=Conditional Use USES,MANUFACTURING P=Permitted Use DISTRICTS Use M-1 M-2 Agricultural use P P Animal pound,kennel and veterinary offices offering general overnight P P boarding Automobile salvage and recycling(indoor) P P Automobile salvage and recycling(outdoor) C P Boilerworks-- — — — P Bus line terminals --- P-- -----1' Bus line yards and repair facilities P Communication towers P P Communication towers,exceeding the maximum building height C C Contractor's yard/office(with exterior storage) P P Display room;wholesale P P Hotel or motel P Limousine service P P Living quarters for caretaker or security guard,limited to uses on lots 4 P P acres in size or larger —.—_—.—.—_--.—__—.— Motion picture studio P P Off-site parking P P Outdoor storage and display ---- — ---—-----P _- --—----P — -- Parkandridelots Park and ride,parking shared with existing use P P Pet cemeteries' P Poultry farm or processing plant P Public/private utility buildings and structures P P —_—_ Public/private utility transmission wires,lines,pipes and poles' P P Radio,television station P P Railroad"spur"delivery facility I' P Raising of fur-bearing animals C P Sewage treatment plant Slaughterhouses C P Solid waste transfer station C C Stockyards C P Taxicab operation;dispatching,staging and maintenance P P Vehicle auction establishment P P Vending carts on private property as per Chapter 5.65 of this Title P P Wireless telecommunications facility(sec Table 21A.40.090E of this Title) Qualifying Provisions:I.See subsection 21 A.02.050B of this Title for utility regulations. 2.Subject to Salt Lake City/County Health Department approval. Exhibit C 21A.30.050 Table Of Permitted And Conditional Uses For Downtown Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Residential Dwelling units, including multiple-family dwellings above or below first P P P P story office,retail and commercial uses or on first story,as defined in the Uniform Building Code,where the unit is not located adjacent to the street frontage Group home,large(see Section 2IA.36.070 of this Title) P P Group home,small(see Section 21A.36.070 of this Title) P P Homeless shelter C Multiple-family dwellings C C P C Residential substance abuse treatment home,large(see Section 21A.36.100 P C of this Title) Residential substance abuse treatment home, small (see Section P P 21 A.36.100 of this Title) Transitional treatment home,large(see Section 21A.36.090 of this Title) P C Transitional treatment home,small(see Section 21A.36.090 of this Title) P P Transitional victim home,large(see Section 21A.36.080 of this Title) P C Transitional victim home,small(see Section 21A.36.080 of this Title) P P Office And Related Uses Adult daycare centers P P P P Child daycare centers P P P P Financial institutions,with drive-through facilities P P C P Financial institutions,without drive-through facilities P P P P Medical and dental clinics P P P P Offices P P P P Veterinary office, operating entirely within an enclosed building and P P keeping animals overnight only for treatment purposes Retail Sales And Services Automobile sales/rental and service C C Department stores P P Furniture repair shop P P P P Gas station, may include accessory retail sales and/or minor repair, as C P C C defined in Part VI,Chapter 21A.62 of this Title Health and fitness facility P P P P Liquor store C C C C Merchandise display rooms P P P P Pawnshop C P Restaurants,with drive-through facilities P P P P Restaurants,without drive-through facilities P P P P Retail goods establishments P P P P Retail laundries,linen service and dry cleaning P P P P Retail services establishments P P P P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Upholstery shop p p Institutional Uses(sites<4 acres) Colleges and universities P p p p Community and recreation centers,public and private,on lots less than 4 P P P P acres in size Government facilities(excluding those of an industrial nature and prisons) P p Libraries P p Museum P P Music conservatory P P Places of worship P p P p Schools,K-12 private P P Schools,K-12 public P P Schools,professional/vocational P p P P Seminaries and religious institutes P P Recreation,Cultural And Entertainment Art galleries p p P P Artists lofts and studios P p p p Brew pub(indoor) P p P p Brew pub(outdoor) P p C P Commercial indoor recreation P p p p Commercial video arcade P P P p Motion picture theaters P p p P Natural open space and conservation areas on lots less than 4 acres in size C C C C Parks and playgrounds on lots less than 4 acres in size P p P p Pedestrian pathways,trails,and greenways C C C C Performance arts facilities P P P p Private club(indoor) P p C P Private club(outdoor) P P p p Sexually oriented business P p P Squares and plazas on lots less than 4 acres in size C C C C Tavern/lounge(indoor) P p P P Tavern/lounge(outdoor) P P C P Miscellaneous Accessory uses, except those that are otherwise specifically regulated in P P p P this Chapter,or elsewhere in this Title Automobile repair,major C P C C Automobile repair,minor C P C C Bed and breakfast P p P p Bed and breakfast inn P P p P Bed and breakfast manor P P P P Blood donation center, commercial and not accessory to a hospital or P medical clinic Bus line terminal P Bus line yards and repair facilities P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Commercial laundry, linen service, and commercial dry-cleaning C P C C establishments Commercial parking garage,lot or deck C P C C Communication towers P P P P Communication towers,exceeding the maximum building height C C C C Food product processing/manufacturing P Graphic/design business P P P P Heliports,accessory C C Homeless shelter C Hotels and motels P P P P Industrial assembly C C Limousine service P Micro breweries C Mini-warehouse P P Off-site parking P P P P Outdoor sales and display C P P C Precision equipment repair shops P C Public/private utility buildings and structures C C C C . Public/private utility transmission wires,lines,pipes and poles I P P P P Publishing company P P P P Radio stations P P p 2 P Railroad passenger station P P P P Social service missions and charity dining halls P P Street vendors(see Chapter 5.64 of this Code) Temporary labor hiring office P C TV stations P P p Vending carts on private property as per Chapter 5.65 of this Title P P p p Warehouse P P Warehouse,accessory P P P P Wholesale distribution P P Wireless telecommunications facilities (see Table 21A.40.090E of this Title) Qualifying Provisions: 1. See subsection 21A.02.050B of this Title for utility regulations. 2. Radio station equipment and antennas shall be required to go through the site plan review process to ensure that the color, design and location of all proposed equipment and antennas are screened or integrated into the architecture of the project and are compatible with surrounding uses. Exhibit D 21A.31.050 Table Of Permitted And Conditional Uses For Gateway Districts: LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Residential Uses Group home,small(see Part IV,Section 21A.36.070 of this Title) P Group home,large(see Part IV,Section 21A.36.070 of this Title) C Halfway homes(see Part IV,Section 21 A.36.110 of this Title) Living quarters for caretaker or security guard P Multiple-family dwellings P Residential substance abuse treatment home,small(see Part IV,Section 2IA.36.100 P of this Title) Residential substance abuse treatment home,large(see Part IV, Section 21A.36.100 C of this Title) Single-family,residence-attached P Transitional treatment home,small(see Part IV,Section 21A.36.090 of this Title) P Transitional treatment home,large(see Part IV,Section 21 A.36.090 of this Title) C Transitional victim home,small(see Part IV,Section 21A.36.080 of this Title) P Transitional victim home,large(see Part IV,Section 21A.36.080 of this Title) C Office And Related Uses Financial institutions,with drive-through facilities C Financial institutions,without drive-through facilities P Medical and dental clinics P Offices P Veterinary office, operating entirely within an enclosed building and keeping animals overnight only for treatment purposes Retail Sales And Services Auction sales(indoor) P Automobile repair,major(indoor) P Automobile repair,major(outdoor) Automobile repair,minor(indoor) P Automobile repair,minor(outdoor) Automobile sales/rental and service(indoor) P Automobile sales/rental and service(outdoor) Boat/recreational vehicle sales and service(indoor) P Boat/recreational vehicle sales and service(outdoor) Car wash C Department stores Electronic repair shop P Equipment rental,indoor and outdoor P Furniture repair shop Gas station (may include accessory convenience retail and/or minor repairs as C LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU defined in Part VI,Chapter 21A.62 of this Title) Health and fitness facility P Liquor store C Merchandise display rooms P Pawnshop Restaurants,with drive-through facilities Restaurants,without drive-through facilities P Retail goods establishments P Retail services establishments P Upholstery shop C Value retail/membership wholesale Institutional Uses Adult daycare center P Child daycare center P Colleges and universities P Community and recreation centers P Government facilities(excluding those of an industrial nature and prisons) P Libraries P Museum P Music conservatory P Places of worship P School,professional and vocational P Schools,K-12 private P Schools,K-12 public P Seminaries and religious institutes P Commercial And Manufacturing Bakery,commercial Blacksmith shop Blood donation centers,commercial and not accessory to a hospital or medical clinic Bottling plant Cabinet and woodworking mills Carpet cleaning P Industrial assembly C Laboratory;medical,dental,optical P Mini-warehouse C Motion picture studio C Moving and storage Photo finishing lab P Plant and garden shop,with outdoor retail sales area C Printing plant C LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Publishing company p Sign painting/fabrication(indoor) Truck freight terminal Warehouse C Welding shop Wholesale distributors C Recreation,Cultural And Entertainment Amusement park C Arenas,stadiums p Art galleries p Artists lofts and studios p Botanical gardens p Brew pub(indoor) p Brew pub(outdoor) C Commercial indoor recreation p Commercial outdoor recreation C Commercial video arcade p Dance studio p Live performance theaters p Miniature golf p Motion picture theaters p Movie theaters p Museums p Park(public and private) p Performance arts facilities p Private club(indoor) p Private club(outdoor) C Private recreational facilities p Tavern/lounge(indoor) p Tavern/lounge(outdoor) C Zoological park C Miscellaneous Accessory uses, except those that are otherwise specifically regulated in this P Chapter,or elsewhere in this Title Ambulance services, dispatching, staging and maintenance conducted entirely C within an enclosed building Amphitheater p Auditorium p Auto salvage and recycling(indoor) C Bed and breakfast p Bed and breakfast inn p LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Bed and breakfast manor P Bus line terminal C Bus line yards and repair facilities C Commercial parking garage,lot or deck C Communication towers P Communication towers,exceeding the maximum building height C Community garden P Contractor's yard/office(with exterior storage) C Emergency response and medical service facilities including fire stations and living C quarters Farmer's market P Flea market(indoor) P Funeral home Graphic/design business P Heliports,accessory c Hotels and motels P Limousine service Micro breweries Off-site parking P Outdoor sales and display C Park and ride lots C Park and ride,parking shared with existing use P Precision equipment repair shops Public/private utility buildings and structures C Public/private utility transmission wires,lines,pipes and poles C Radio stations C Railroad passenger station C Railroad"spur"delivery facility C Recycling collection station Reverse vending machines Social service missions and charity dining halls C Street vendors(see Chapter 5.64 of this Code) Taxicab facilities,dispatching,staging and maintenance Television station C Temporary labor hiring office P Vending Carts on private property as per Chapter 5.65 of this Title. P Wireless telecommunications facilities(see Table 2lA.40.090E of this Title) (Ord. 83-98 § 6(Exh. D), 1998) Exhibit E 21A.32.140 Table Of Permitted And Conditional Uses For Special Purpose Districts: LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I Ul MH El MU Residential Assisted living facility P (see Section 21 A.36.050 of this Title) Congregate care facility p p P Dwelling units,above first P floor commercial or office Group home,large(see C Section 21A.36.070 of this Title) Group home,small(see P Section 21A.36.070 of this Title) Living quarters for P P p p p P P caretakers and security guards Manufactured home P Mobile homes p Multi-family(no P maximum density limitation) Multiple-family dwellings P Nursing care facility p P P Resident health care p facility(see Section 21A.36.040 of this Title) Single-family attached P dwellings Single-family detached P p P dwellings Twin home and two- P family dwellings Rooming(boarding)house p Office And Related Uses Accessory offices P supporting an institutional use Financial institutions,with P P P3 drive-through facilities Financial institutions, P P p without drive-through facilities Government offices P P P P P P P LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Medical and dental offices P P p p p Offices p p _ P Offices,research related P P p Veterinary offices, P P operating entirely within an enclosed building and keeping animals overnight only for treatment purposes Retail Sales And Services Accessory retail sales and P P p p p p p services uses,when located within the principal building and operated primarily for the convenience of employees Commercial service C establishments Gas station(may include P3 accessory convenience retail and/or minor repairs as defined in Part VI, Chapter 21 A.62 of this Title) Restaurants with drive- P3 through facilities Restaurants without drive- P through facilities Retail goods P establishments Retail service P establishments Institutional Uses Adult daycare centers p p P Child daycare centers P P p p p p p Cemeteries and accessory p crematoriums Colleges and universities p p Community and recreation p p p p p centers Conference center P p C p Convention center,with or C without hotels Convents and monasteries p p Dental p p C P laboratories/research facilities LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Emergency response and C P P medical service facilities including fire stations and living quarters Exhibition hall C C P Hospitals,including C P P accessory lodging facilities Libraries P P P Medical and dental clinics P P P P P Medical research facilities P P P Medical/nursing schools P Meeting halls of P P P P membership organizations Nursing care facility; P P sanitariums Pet cemetery p4 p4,5 Philanthropic uses P P Places of worship P P P Prison or jail C Religious assembly with C P exhibit hall Research,commercial, P P P C scientific,educational Reuse of schools and C C C P churches Seminaries and religious P P P institutes Schools,K-12 private P P Schools,K-12 public P Schools, C P P P P professional/vocational Recreation,Cultural And Entertainment Art galleries P Arenas,stadiums, C C C fairgrounds Botanical gardens C Community gardens as p defined in Part VI,Chapter 21A.62 of this Title Country clubs P Dance studio P Golf courses p P P Movie theaters/live P performance theaters Museums C P P P LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Natural open space and P conservation areas Nature P P P preserves/conservation areas,public and private Park(public) C P P P Pedestrian pathways,trails P and greenways Private recreational P P P P P facilities Tavem/lounge/brew pub; C 2,500 square feet or less in floor area Zoological park P Airport And Related Uses Air cargo terminals and P P package delivery facilities. Airline service and P maintenance operations Airline ticketing and P baggage processing Airport operations P (including air traffic control,navigational aids, emergency and maintenance operations) Alcoholic beverage P consumption establishments(on- premises)(within terminal complex only) Automobile rental P P agencies Commercial recreation P center(within terminal complex only) Financial institutions P (within terminal complex only) Fuel storage for on-site P distribution General aviation facilities P Heliport C C P C C Light manufacturing P Meeting rooms(within P terminal complex only) Offices P LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MN El MU Restaurants;other food P services Retail goods P establishments specialty, primarily for airport customers(within terminal complex only) Retail services P establishments primarily for airport customers (within terminal complex only) Miscellaneous Accessory uses,except P P P P P P P P P P P P those that are otherwise specifically regulated in this Chapter,or elsewhere in this Title Agricultural uses P P Bed and breakfast C 2 p P Bed and breakfast inn C 2 P P Bed and breakfast manor p P Communication towers P P C P P P p P Communication towers, C C P C C C C exceeding the maximum building height Concrete or asphalt p manufacturing Hotels and motels C C P p Industrial assembly P P Jewelry fabrication and P associated processing Kennels,on lots of 5 acres C P or larger Local government P P P P P P P P P P P facilities Mining and extraction of P minerals and materials, including ore,stone,sand, gravel,oil and oil shale Off-site parking P C C C C Outdoor storage,accessory P P p Park and ride lots P C Park and ride parking, P P P P P P P P shared with existing use Parking structure P P P P P P C C P P Production related to on- P C LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU site research Public/private utility C C C C C P C C C C C C buildings and structures Public/private utility P P P P P P P P P P P P transmission wires,lines, pipes and poles] Seasonal farm stands P Storage of extracted P material Transportation terminals, P C including bus,rail and trucking Trucking,repair,storage P etc.,associated with extractive industries Vending Carts on private P P property as per Chapter 5.65 of this Title Warehouse,accessory to C retail and wholesale business(5,000 square foot or greater floor plate) Warehouse,accessory to P retail and wholesale business(maximum 5,000 square foot floor plate) Warehouse,including P P mini-storage warehouses Wholesale distribution P P C Qualifying Provisions: 1. See subsection 21 A.02.050B of this Title for utility regulations. 2. When located in a building listed on the Salt Lake City Register of Cultural Resources. 3. When located on an arterial street. 4. Subject to Salt Lake City/County Health Department approval. 5. In conjunction with,and within the boundaries of,a cemetery for human remains. Staff Alternative Ordinance (Exhibits from Planning Commission Proposed Ordinance should be attached to Staff Alternative Ordinance if Alternative is chosen) The alternative ordinance includes the following: • Removal of the term "lease". Note: no leases are issued. • Change the cart size from 34 to 36 sq. ft. Note: this is to better accommodate the geometrics of the carts size. • Define the maximum width of a cart as 3 feet. Note: There presently is no maximum width. • Require attachment of any canopy to the cart. Note: Canopies are presently allowed, but their attachment is not defined. • Add the word"stool", as an alternative to a chair. Note: The ordinance presently identifies that one chair is allowed but not a stool. SALT LAKE CITY ORDIANCE No. of 2000 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS, PURSUANT TO PETITION NO. 400-00-41. WHEREAS,the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS, the City Council of Salt Lake City, Utah, finds after public hearings before its own body and before the Planning Commission, that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 SIDEWAI.,K VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter,the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District" means the following streets within the City and all areas bounded within such streets: 1.North Temple Street on the north,from FourthSixth West Street to Third West Street; 2. Third West Street on the east, from North Temple Street to South Temple Street; 3. South Temple Street on the north, from Third West Street to Second East Street, on the south side of South Temple Street only; 4. Second East Street on the east from South Temple Street to Sixth South Street; 5. Sixth South Street on the south from Second East Street to State Street; 6. State Street on the east from Sixth South Street to Ninth South Street; 7.Ninth South Street on the south from State Street to FthSixth West Street; 8. FourthSixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating area=',_means a portion of a sidewalk which has been designated by the City for the conduct of business. C. "Sidewalk vending cart" means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor" means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. E. For purposes of this Ordinance a"single productbut not m e than one, of the following: 1. Food for immediate consumption, including beverages;or 2. Inflated balloons and/or fresh cut flowers. FE."Special event" means the Days of'47 Parade, Christmas Parade, children's parades or other special events which the Mayor shall so designate. O.F."Sugar House Business District"means those streets within Salt Lake City as follows: 1. Twenty First South Street from Ninth East Street to Thirteenth East Street; 2. Highland Drive Street between Ramona Avenue and the I-80 Freeway; 3. Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District,the Sugar House Business District, city parks Pioneer Dinweekly- and Washington Square, in accordance I with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services, for profit, on any sidewalk within the City, except as provided by this Chapter or by subsection 5.64.01 OC of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to news racks,telephone or telex booths or stands, post boxes,nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message. (Ord. 12-91 § 1, 1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West, or from 300 to 400 West and 200 to 400 South, or from 300 to 40f)West and North Temple to 300 North, during the time period of January 31, 2002 to March 31,2002. Vending on 2 private property, consistent with Section 5.65.220, is not included within this moratorium. 5.65.030 Regulatory Permit, Revocable Land Use Permit,And Fees Required: No person shall conduct business on any City sidewalk, without first obtaining a valid base business license and entering into a lease or revocable land use permit for the use of City property, and paying the required fees. In addition to the base business license fee, the annual lease or revocable land use permit payment shall be one hundred seventy five dollars($175.00)determined by administrative policy. 5.65.040 Application For Regulatory Permit: Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. r di ' ' ppli tion hall + a D. A certified copy of all permits required by State or local health authorities. E. A signed statement that the permitee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including, but not limited to, a description of any mobile container or device,to be used for transport or to display products or services to be offered for sale. The description of the container or device rhallinav-be in the form of detailed scale drawings of the device to be used, material specifications, and in isometric drawing in color of at least two (2)views showing all four(4) sides of the vending device and any logos,printing or signs which will be incorporated and utilized in the color scheme. Said description shallmav include any additional items(e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area-efly. In-order to allow a single cart mobility to coincide with daily changes in activity. the City may authorize,per administrative policy, up to four additional secondary locations,based upon availability after awarding primary locations. 3 Multiple operating areas may not be contiguous. A separate revocable permit must accompany each operating area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued, remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application therefertherefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. No sidewalk vending permit shall be issued or continued in operation, unless there is on file with the city recorder a certificate of insurance executed by an insurance company or association authorized to transact business in this state, approved as to form by the city attorney,that there is in full force and effect public liability, food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended,or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant,unless the supervisor finds one or more of the following: 1. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year, the zoning administrator, in consultation with the city's planning division_, shallmav set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. 4 Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing, if the number of applications warrant and it is deemed necessary by the Zoning Administrator. their current permit ope tin•' v st de cla h t t it t th + y i u'c drawing to be held on or before January 10th. Applications for new permits shall be accepted by the city beginning De ember 1 st N t• d betwe. January 10th. The drawing for and-assignment of permit operati„g a als seek-ing-new4peatieris-shail-be-eempieted-prior--te-the-dfawing-,for-new-pertnits,If-the r 9 said-drawings-shall-be awarded on a first come first served basis beginning the day r December 31 ,+ h ; h ll idered on a first come, first served basis for b Incomplete applications shall be rej-cted. 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permitee,the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31 st of the year so issued. B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently,by written notice from the traffic engineer to permitee,in the event of construction or remodeling of any nearby structure or of a force majeure which,in the opinion of the traffic engineer,renders permitee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section, means acts of God,acts of public enemy,blockades,wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances,or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5 5.65.090 Use,site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications there€ortherefore shall be reviewed and approved by the planning official to assure the proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons; and 3. Fresh cut flowers..-: and 4. Daily or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District,the Sugar House Business District, city parks Pioneer P.,rL Dinweedy Park r or Washington Square. r 1V11v�.1 i W , , � B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination,the traffic engineer shall consider the width of sidewalk, the presence of bus stops,truck loading zones,taxi stands or hotel zones, the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture, including but not limited to: signposts, lamp posts, fire hydrants,parking meters, bus shelters,benches,phone booths, street trees and newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding • a certain application,he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. A. No more than oncfive vending permit operating areas "hall be allowed f r each three hundred thirty feet of block front go r r St t b + tt, T t a 400 South. n vrrvser„ th blk, `� ermit shall be allowed per block face except that if the vvuuoc block face exceeds six hundred sixty feet, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. 6 sidewalk„ rmit o rating a BC. Vending carts may be located on private plazas and private open space on non- residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. GD. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window. E. D. No food vendor shall operate within 100 feet on the same linear block face of a door to a restaurant, City authorized Special Event selling food(outside public right- of-way), Gallivan Plaza(during events), or fruit or vegetable market, with direct access to the sidewalk. No flower or balloon vendor shall operate within 100 feet on the same linear block face of a door to a flower or balloon shop or City authorized Special Event selling flowers/balloons (outside public right-of-way), Gallivan Plaza (during events), with direct access to the sidewalk. No newspaper/magazine vendor shall operate within 100 feet on the same linear block face of a door to a newspaper/magazine shop or City authorized Special Event selling newspapers/magazines (outside public right-of-way), Gallivan Plaza (during events), with direct access to the sidewalk. In the event of multiple entries/spacing requirements, the above requirement does not invalidate a legally authorized vending permit area. The vendor will still be authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permitee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design review. 7 The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition, the planning official, shall consider whether or not the proposed design, materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart,together with the operator and any trash receptacle, cooler or chair, shall not exceed twentythirty-sixfeur square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed six three-feet in width and eight feet in length,exeluding including-hitch; the hitch shall not extend the length ofthe cart a tha,, e f of C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed ferry-sixty square feet in area and must be attached to the cart. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to enethree coolers (stacked), one water container, one trash receptacle-arm one chair/stool, and one water/drink container, external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit,the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard, wood or plastic containers, wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business 8 on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary,to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. B. S- sonal changes in product types shall be acceptable as long „et more tha o„e single product type is sold at the same time. C. Food and non food items shall not be vended from the same cart. 5.65.180 Special events. The restrictions of this chapter notwithstanding, nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter,to conduct concurrent sidewalk vending operations within the expanded central business district, or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the general public, such authorization of special event vendors shall not require removal of a permitee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event, unless otherwise provided under the city's ordinances. If the City is closing a public right-of-way to general access. either partially or fully, in order to accommodate a special event, the City may relocate the vendor to an adjacent location outside the special event boundary. subject to the spacing requirements of Section 5.65.120.D. 5.65.190 Denial, suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 5.02.250,or its successor section, or in any other city ordinance or state or federal law or regulation. 3.Any required license or permit has been suspended,revoked or canceled; or 4. The permitee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 9 5. That the permitee has abandoned the use of the permit operating area for the conducting of business. The failure of a permitee to vend from a vending cart within the permitee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation,the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons then-efer-therefore. Such notice shall contain the further provision that it shall become final and effective within ten days,unless such action is the result of a failure of the permitee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A,Zoning,where they conform to the requirements below. 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E; the requirement of insurance under Section 5.65.060; the requirement of location review under Section 5.65.110; the suspension or revocation of business Iicense due to a 10 lack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall be required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots, regardless of zoning district,is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals, neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Commercial Districts," shall be and hereby is amended to read as set forth on Exhibit"A"attached hereto. SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B" attached hereto. SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Downtown Districts," shall be and hereby is amended to read as set forth on Exhibit"C"attached hereto. 11 SECTION 6. The table located at Section 21A.31.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Gateway Districts," shall be and hereby is amended to read as set forth on Exhibit"D" attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit "E" attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart" includes any non-motorized mobile device or push cart from which limited types of products, as listed in Chapter 5.65 of this Title, are sold or offered for sale directly to any consumer,where the point of sale is conducted at the cart,where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah,this day of , 2000. CHAIRPERSON ATTEST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on . 12 Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER (SEAL) Bill No. of 2000. Published: G:\Ordina0l\Amending Code re vending carts-July 20,2001.doc 13 SALT LAKE CITY ORDIANCE No. of 2000 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS,PURSUANT TO PETITION NO. 400-00-41. WHEREAS,the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS,the City Council of Salt Lake City, Utah, finds after public hearings before its own body and before the Planning Commission,that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW, THEREFORE, be it ordained by the City Council of Salt Lake City,Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter,the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District" means the following streets within the City and all areas bounded within such streets: 1.North Temple Street on the north, from Sixth West Street to Third West Street; 2. Third West Street on the east, from North Temple Street to South Temple Street; 3. South Temple Street on the north,from Third West Street to Second East Street, on the south side of South Temple Street only; 4. Second East Street on the east from South Temple Street to Sixth South Street; 5. Sixth South Street on the south from Second East Street to State Street; 6. State Street on the east from Sixth South Street to Ninth South Street; 7. Ninth South Street on the south from State Street to Sixth West Street; 8. Sixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating area,"means a portion of a sidewalk which has been designated by the City for the conduct of business. C. "Sidewalk vending cart" means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor" means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. E. "Special event" means the Days of'47 Parade, Christmas Parade, children's parades or other special events which the Mayor shall so designate. F. "Sugar House Business District" means those streets within Salt Lake City as follows: 1. Twenty First South Street from Ninth East Street to Thirteenth East Street; 2. Highland Drive Street between Ramona Avenue and the I-80 Freeway; 3. Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District, the Sugar House Business District, city parks and Washington Square, in accordance with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services, for profit, on any sidewalk within the City, except as provided by this Chapter or by subsection 5.64.010C of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to news racks, telephone or telex booths or stands,post boxes, nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message. (Ord. 12-91 § 1, 1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West, or from 300 to 400 West and 200 to 400 South, or from 300 to 400 West and North Temple to 300 North, during the time period of January 31, 2002 to March 31, 2002. Vending on private property, consistent with Section 5.65.220, is not included within this moratorium. 5.65.030 Regulatory Permit, Revocable Land Use Permit,And Fees Required: No person shall conduct business on any City sidewalk, without first obtaining a valid base business license and entering into a lease or revocable land use permit for the use of City property, and paying the required fees. In addition to the base business license fee, 2 the annual revocable land use permit payment shall be determined by administrative policy. 5.65.040 Application For Regulatory Permit: Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. D. A copy of all permits required by State or local health authorities. E. A signed statement that the permitee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including,but not limited to, a description of any mobile container or device, to be used for transport or to display products or services to be offered for sale. The description of the container or device may be in the form of detailed scale drawings of the device to be used, material specifications, and in isometric drawing in color of at least two (2)views showing all four(4) sides of the vending device and any logos,printing or signs which will be incorporated and utilized in the color scheme. Said description may include any additional items (e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area. In order to allow a single cart mobility to coincide with daily changes in activity,the City may authorize, per administrative policy, up to four additional secondary locations, based upon availability after awarding primary locations. Multiple operating areas may not be contiguous. A separate revocable permit must accompany each operating area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued, remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application therefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. No sidewalk vending permit shall be issued or continued in operation, unless there is on file with the city recorder a certificate of insurance executed by an insurance company or 3 association authorized to transact business in this state, approved as to form by the city attorney, that there is in full force and effect public liability, food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended, or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant, unless the supervisor finds one or more of the following: 1. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year,the zoning administrator, in consultation with the city's planning division may set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing, if the number of applications warrant and it is deemed necessary by the Zoning Administrator. 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permitee,the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31 st of the year so issued. B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on 4 the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently,by written notice from the traffic engineer to permitee, in the event of construction or remodeling of any nearby structure or of a force majeure which, in the opinion of the traffic engineer, renders permitee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section,means acts of God, acts of public enemy, blockades,wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances, or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5.65.090 Use, site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications therefore shall be reviewed and approved by the planning official to assure the proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons; 3. Fresh cut flowers; and 4. Daily or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District,the Sugar House Business District, city parks or Washington Square. B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination,the traffic engineer shall consider the width of sidewalk,the presence of bus stops,truck loading zones,taxi stands or hotel zones,the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture,including but not limited to: signposts,lamp posts, fire hydrants,parking meters, bus shelters, benches,phone booths, street trees and newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding 5 a certain application,he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. A. No more than five vending permit operating areas shall be allowed per block face except that if the block face exceeds six hundred sixty feet, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. C. Vending carts may be located on private plazas and private open space on non- residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. D. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window. E. No food vendor shall operate within 100 feet on the same linear block face of a door to a restaurant, City authorized Special Event selling food (outside public right-of- way), Gallivan Plaza(during events),or fruit or vegetable market,with direct access to the sidewalk. No flower or balloon vendor shall operate within 100 feet on the same linear block face of a door to a flower or balloon shop or City authorized Special Event selling flowers/balloons(outside public right-of-way), Gallivan Plaza (during events),with direct access to the sidewalk. No newspaper/magazine vendor shall operate within 100 feet on the same linear block face of a door to a newspaper/magazine shop or City authorized Special Event selling newspapers/magazines(outside public right-of-way), Gallivan Plaza(during events), with direct access to the sidewalk. In the event of multiple entries/spacing requirements,the above requirement does not invalidate a Iegally authorized vending permit area. The vendor will still be 6 authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permitee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design review. The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition, the planning official, shall consider whether or not the proposed design, materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart,together with the operator and any trash receptacle, cooler or chair, shall not exceed thirty-six square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed three feet in width and eight feet in length, including hitch. C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed sixty square feet in area and must be attached to the cart. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to three coolers (stacked), one water container, one trash receptacle, one chair/stool, and one water/drink container, external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit, the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. 7 A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard,wood or plastic containers, wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary, to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. 5.65.180 Special events. The restrictions of this chapter notwithstanding,nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter,to conduct concurrent sidewalk vending operations within the expanded central business district, or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the general public, such authorization of special event vendors shall not require removal of a permitee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event,unless otherwise provided under the city's ordinances. If the City is closing a public right-of-way to general access, either partially or fully, in order to accommodate a special event,the City may relocate the vendor to an adjacent location outside the special event boundary, subject to the spacing requirements of Section 5.65.120.D. 5.65.190 Denial, suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 8 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. 3. Any required license or permit has been suspended, revoked or canceled; or 4. The permitee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 5. That the permitee has abandoned the use of the permit operating area for the conducting of business. The failure of a permitee to vend from a vending cart within the permitee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation,the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons therefore. Such notice shall contain the further provision that it shall become final and effective within ten days, unless such action is the result of a failure of the permitee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A, Zoning,where they conform to the requirements below. 9 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E; the requirement of insurance under Section 5.65.060;the requirement of location review under Section 5.65.110; the suspension or revocation of business license due to a lack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall be required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots,regardless of zoning district, is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals, neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled"Table of Permitted and Conditional Uses for Commercial Districts," shall be and hereby is amended to read as set forth on Exhibit"A"attached hereto. SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code,entitled"Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B"attached hereto. 10 SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled"Table of Permitted and Conditional Uses for Downtown Districts,"shall be and hereby is amended to read as set forth on Exhibit"C"attached hereto. SECTION 6. The table located at Section 21A.31.050 of the Salt Lake City Code entitled"Table of Permitted and Conditional Uses for Gateway Districts," shall be and hereby is amended to read as set forth on Exhibit "D"attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit"E"attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart"includes any non-motorized mobile device or push cart from which limited types of products, as listed in Chapter 5.65 of this Title, are sold or offered for sale directly to any consumer,where the point of sale is conducted at the cart,where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah, this day of , 2000. CHAIRPERSON 11 ATTEST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER (SEAL) Bill No. of 2000. Published: G:\Ordina0l\Amending Code re vending carts-Clean-July 20,2001.doc 12 Administration endorsed Ordinance (Exhibits from Planning Commission Proposed Ordinance should be attached to Administration endorsed Ordinance if it is chosen) The Administration endorsed Ordinance contains all of the concepts outlined in the staff Alternative Ordinance,including the following: • Removal of the term`lease". Note:no leases are issued. • Change the cart size from 34 to 36 sq.ft. Note:this is to better accommodate the geometrics of the carts size. • Define the maximum width of a cart as 3 feet. Note:There presently is no maximum width. • Require attachment of any canopy to the cart. Note:Canopies are presently allowed,but their attachment is not defined. • Add the word"stool",as an alternative to a chair. Note:The ordinance presently identifies that one chair is allowed but not a stool. The Administration endorsed ordinance differs from the other two ordinances in that it leaves the number of vendors allowed per block at existing levels:two per block on Main street(South Temple to 400 South)and one per block elsewhere. SALT LAKE CITY ORDIANCE No. of 2001 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS, PURSUANT TO PETITION NO. 400-00-41. WHEREAS, the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS, the City Council of Salt Lake City, Utah, finds after public hearings before its own body and before the Planning Commission, that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 SIDEWALK VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter,the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District"means the following streets within the City and all areas bounded within such streets: 1. North Temple Street on the north, from FouftlhSixth West Street to Third West Street; 2. Third West Street on the east, from North Temple Street to South Temple Street; 3. South Temple Street on the north, from Third West Street to Second East Street, on the south side of South Temple Street only; 4. Second East Street on the east from South Temple Street to Sixth South Street; 5. Sixth South Street on the south from Second East Street to State Street; 6. State Street on the east from Sixth South Street to Ninth South Street; 7. Ninth South Street on the south from State Street to FourthSixth West Street; 8. FourthSixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating area means a portion of a sidewalk which has been designated by the City for the conduct of business. C. "Sidewalk vending cart" means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor"means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. • one, of the following: 1. Food for immediate consumption, including beverages; or 2. Inflated balloons and/or fresh cut flowers. FE."Special event" means the Days of'47 Parade, Christmas Parade, children's parades or other special events which the Mayor shall so designate. G.F."Sugar House Business District" means those streets within Salt Lake City as follows: 1. Twenty First South Street from Ninth East Street to Thirteenth East Street; 2. Highland Drive Street between Ramona Avenue and the I-80 Freeway; 3. Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District, the Sugar House Business District, city parks Pioneer P r , Din ood Park-and Washington Square, in accordance with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services, for profit, on any sidewalk within the City, except as provided by this Chapter or by subsection 5.64.010C of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to news racks,telephone or telex booths or stands, post boxes, nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message. (Ord. 12-91 § 1, 1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West, or from 300 to 400 West and 200 to 400 South, or from 300 to 400 West and North Temple to 300 North, during the time period of January 31,2002 to March 31,2002. Vending on 2 private property, consistent with Section 5.65.220, is not included within this moratorium. 5.65.030 Regulatory Permit,Lease Or-Revocable Land Use Permit,And Fees Required: No person shall conduct business on any City sidewalk, without first obtaining a valid base business license and entering into a lease or revocable land use permit for the use of City property, and paying the required fees. In addition to the base business license fee, the annual lease or revocable land use permit payment shall be one hundred seventy five dollars($175.00)determined by administrative policy. 5.65.040 Application For Regulatory Permit: • Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. Indi F-•i ;cations shall be accepted for a single product type only. Written-notification shall be provided to the p it d l'L lJtt :ed change of product type. D. A certified copy of all permits required by State or local health authorities. E. A signed statement that the permitee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including, but not limited to, a description of any mobile container or device,to be used for transport or to display products or services to be offered for sale. The description of the container or device sh-allmay-be in the form of detailed scale drawings of the device to be used, material specifications, and in isometric drawing in color of at least two (2)views showing all four(4) sides of the vending device and any logos,printing or signs which will be incorporated and utilized in the color scheme. Said description shallmav include any additional items (e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area-only. In-order to allow a single cart mobility to coincide with daily changes in activity,the City may authorize,,per administrative policy,up to four additional secondary locations, based upon availability after awarding primary locations. 3 Multiple operating areas may not be contiguous. A separate revocable permit must accompany each operating: area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued, remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application therefertherefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. No sidewalk vending permit shall be issued or continued in operation,unless there is on file with the city recorder a certificate of insurance executed by an insurance company or association authorized to transact business in this state, approved as to form by the city attorney,that there is in full force and effect public liability, food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended, or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant, unless the supervisor finds one or more of the following: 1. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year,the zoning administrator, in consultation with the city's planning division„ shallmay set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. 4 Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing, if the number of applications warrant and it is deemed necessary by the Zoning Administrator. C. Applications for permits for a particular operating area for a calendar year beginning drawing to be held on or before January l 0th. Applications for new permits shall be : at a date and time to be determined by the zoning administrator, but not later than December 31 st, he/she will be considered on a first come, first served basis for Incomplete ., plications shalt be „t .7 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permitee, the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31st of the year so issued. B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently,by written notice from the traffic engineer to permitee, in the event of construction or remodeling of any nearby structure or of a force majeure which, in the opinion of the traffic engineer,renders permitee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section, means acts of God, acts of public enemy, blockades, wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances, or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5 5.65.090 Use, site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications therefertherefore shall be reviewed and approved by the planning official to assure the proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons;and 3. Fresh cut flowers,,-: and 4. Daily or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District, the Sugar House Business District, city parks P1Vlleli� ,Park Di ody P k, or Washington Square. 1 B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination,the traffic engineer shall consider the width of sidewalk, the presence of bus stops, truck loading zones, taxi stands or hotel zones, the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture, including but not limited to: signposts, lamp posts, fire hydrants,parking meters, bus shelters,benches,phone booths, street trees and newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding a certain application, he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. A. No more than one vending permit operating area shall be allowed for each three hundred thirty feet of block frontage on Main Street between South Temple and 400 South. On other blocks, one permit shall be allowed per block face except that if the block face exceeds six hundred sixty feet, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. err i, „hich shall nclude-the-adjacent-sidew lk permit-operating-areas,--There 6 sidewalk permit operating area. BC. Vending carts may be located on private plazas and private open space on non- residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. GD. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window. E. D. No food vendor shall operate within 100 feet on the same linear block face of a door to a restaurant, City authorized Special Event selling food (outside public right- of-way), Gallivan Plaza(during events), or fruit or vegetable market,with direct access to the sidewalk. No flower or balloon vendor shall operate within 100 feet on the same linear block face of a door to a flower or balloon shop or City authorized Special Event selling flowers/balloons (outside public right-of-way), Gallivan Plaza (during events),with direct access to the sidewalk. No newspaper/magazine vendor shall operate within 100 feet on the same linear block face of a door to a newspaper/magazine shop or City authorized Special Event selling newspapers/magazines (outside public right-of-way), Gallivan Plaza(during events), with direct access to the sidewalk. In the event of multiple entries/spacing requirements.the above requirement does not invalidate a legally authorized vending permit area. The vendor will still be authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permitee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design review. 7 The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition, the planning official, shall consider whether or not the proposed design,materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart, together with the operator and any trash receptacle, cooler or chair, shall not exceed tythirty-sixfer square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed six three feet in width • and eight feet in length,excluding_including hitch; the hitch shall not extend the length of the ,,rf e tha o f + C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed fort sixty square feet in area and must be attached to the cart. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to enethree coolers (stacked), one water container, one trash receptacle.,-and one chair/stool, and one water/drink container, external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit,the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard,wood or plastic containers, wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business 8 on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary, to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. l; Seasonal changes in product types shall be acceptable as long o} t1 single product type is sold at the same time. C. Food and non food items shall not be vended from the same cart. 5.65.180 Special events. The restrictions of this chapter notwithstanding,nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter, to conduct concurrent sidewalk vending operations within the expanded central business district, or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the_general public, such authorization of special event vendors shall not require removal of a permitee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event,unless otherwise provided under the city's ordinances. If the City is closing a public right-of-way to ;general access. either partially or fully, in order to accommodate a special event, the City may relocate the vendor to an adjacent location outside the special event boundary. subject to the spacing requirements of Section 5.65.120.D. 5.65.190 Denial, suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. 3. Any required license or permit has been suspended,revoked or canceled; or 4. The permitee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 9 5. That the permitee has abandoned the use of the permit operating area for the conducting of business. The failure of a permitee to vend from a vending cart within the permitee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation,the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons therefertherefore. Such notice shall contain the further provision that it shall become final and effective within ten days, unless such action is the result of a failure of the permitee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A,Zoning,where they conform to the requirements below. 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E; the requirement of insurance under Section 5.65.060; the requirement of location review under Section 5.65.110; the suspension or revocation of business license due to a 10 Iack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall be required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots, regardless of zoning district,is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals, neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Commercial Districts," shall be and hereby is amended to read as set forth on Exhibit"A"attached hereto. SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code, entitled"Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B"attached hereto. SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Downtown Districts," shall be and hereby is amended to read as set forth on Exhibit "C"attached hereto. 11 SECTION 6. The table located at Section 21A.31.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Gateway Districts," shall be and hereby is amended to read as set forth on Exhibit"D"attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit "E"attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart" includes any non-motorized mobile device or push cart from which limited types of products, as listed in Chapter 5.65 of this Title, are sold or offered for sale directly to any consumer,where the point of sale is conducted at the cart,where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah,this day of ,2001. CHAIRPERSON ATTEST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on 12 Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER (SEAL) Bill No. of 2001. Published: G:1Ordina01\Amending Code re vending carts-Oct 26,2001.doc 13 SALT LAKE CITY ORDIANCE No. of 2001 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS, PURSUANT TO PETITION NO. 400-00-41. WHEREAS, the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS, the City Council of Salt Lake City,Utah, finds after public hearings before its own body and before the Planning Commission,that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter,the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District" means the following streets within the City and all areas bounded within such streets: 1.North Temple Street on the north, from Sixth West Street to Third West Street; 2. Third West Street on the east,from North Temple Street to South Temple Street; 4. Second East Street on the east from South Temple Street to Sixth South Street; 5. Sixth South Street on the south from Second East Street to State Street; 6. State Street on the east from Sixth South Street to Ninth South Street; 7. Ninth South Street on the south from State Street to Sixth West Street; 8. Sixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating area,"means a portion of a sidewalk which has been designated by the City for the conduct of business. C. "Sidewalk vending cart" means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor" means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. E. "Special event" means the Days of'47 Parade, Christmas Parade, children's parades or other special events which the Mayor shall so designate. F."Sugar House Business District" means those streets within Salt Lake City as follows: 1. Twenty First South Street from Ninth East Street to Thirteenth East Street; 2. Highland Drive Street between Ramona Avenue and the I-80 Freeway; 3. Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District,the Sugar House Business District, city parks and Washington Square, in accordance with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services, for profit, on any sidewalk within the City, except as provided by this Chapter or by subsection 5.64.01 OC of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to news racks,telephone or telex booths or stands,post boxes,nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message. (Ord. 12-91 § 1, 1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West, or from 300 to 400 West and 200 to 400 South,or from 300 to 400 West and North Temple to 300 North, during the time period of January 31,2002 to March 31,2002. Vending on private property, consistent with Section 5.65.220,is not included within this moratorium. 5.65.030 Regulatory Permit, Revocable Land Use Permit,And Fees Required: No person shall conduct business on any City sidewalk,without first obtaining a valid base business license and entering into a lease or revocable land use permit for the use of City property, and paying the required fees. In addition to the base business license fee, 2 the annual revocable land use permit payment shall be determined by administrative policy. 5.65.040 Application For Regulatory Permit: Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. D. A copy of all permits required by State or local health authorities. E. A signed statement that the permitee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including, but not limited to, a description of any mobile container or device,to be used for transport or to display products or services to be offered for sale. The description of the container or device may be in the form of detailed scale drawings of the device to be used, material specifications, and in isometric drawing in color of at least two (2)views showing all four(4) sides of the vending device and any logos,printing or signs which will be incorporated and utilized in the color scheme. Said description may include any additional items (e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area. In order to allow a single cart mobility to coincide with daily changes in activity,the City may authorize,per administrative policy, up to four additional secondary locations,based upon availability after awarding primary locations. Multiple operating areas may not be contiguous. A separate revocable permit must accompany each operating area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued, remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application therefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. No sidewalk vending permit shall be issued or continued in operation, unless there is on file with the city recorder a certificate of insurance executed by an insurance company or 3 association authorized to transact business in this state, approved as to form by the city attorney, that there is in full force and effect public liability,food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for — personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended, or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant, unless the supervisor finds one or more of the following: 1. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year, the zoning administrator, in consultation with the city's planning division may set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing, if the number of applications warrant and it is deemed necessary by the Zoning Administrator. 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permitee,the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31 st of the year so issued. B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on 4 the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently, by written notice from the traffic engineer to permitee, in the event of construction or remodeling of any nearby structure or of a force majeure which, in the opinion of the traffic engineer, renders permitee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section, means acts of God, acts of public enemy, blockades, wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances, or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5.65.090 Use, site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications therefore shall be reviewed and approved by the planning official to assure the proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. • 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons; 3. Fresh cut flowers; and 4. Daily or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District,the Sugar House Business District, city parks or Washington Square. B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination,the traffic engineer shall consider the width of sidewalk,the presence of bus stops,truck loading zones,taxi stands or hotel zones,the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture, including but not limited to: signposts, lamp posts, fire hydrants,parking meters,bus shelters, benches,phone booths, street trees and newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding 5 a certain application, he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. A. No more than one vending permit operating area shall be allowed for each three hundred thirty feet of block frontage on Main Street between South Temple and 400 South. On other blocks, one permit shall be allowed per block face except that if the block face exceeds six hundred sixty feet, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. C. Vending carts may be located on private plazas and private open space on non- residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. D. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window. E. No food vendor shall operate within 100 feet on the same linear block face of a door to a restaurant, City authorized Special Event selling food (outside public right-of- way), Gallivan Plaza(during events), or fruit or vegetable market,with direct access to the sidewalk. No flower or balloon vendor shall operate within 100 feet on the same linear block face of a door to a flower or balloon shop or City authorized Special Event selling flowers/balloons (outside public right-of-way), Gallivan Plaza (during events),with direct access to the sidewalk. No newspaper/magazine vendor shall operate within 100 feet on the same linear block face of a door to a newspaper/magazine shop or City authorized Special Event selling newspapers/magazines (outside public right-of-way), Gallivan Plaza(during events), 6 with direct access to the sidewalk. In the event of multiple entries/spacing requirements,the above requirement does not invalidate a legally authorized vending permit area. The vendor will still be authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permitee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design review. The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition,the planning official, shall consider whether or not the proposed design, materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart,together with the operator and any trash receptacle, cooler or chair, shall not exceed thirty-six square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed three feet in width and eight feet in length, including hitch. C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed sixty square feet in area and must be attached to the cart. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to three coolers (stacked), one water container, one trash receptacle, one chair/stool, and one water/drink container, external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit,the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. 7 If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard, wood or plastic containers,wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary, to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. 5.65.180 Special events. The restrictions of this chapter notwithstanding,nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter,to conduct concurrent sidewalk vending operations within the expanded central business district,or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the general public, such authorization of special event vendors shall not require removal of a permitee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event, unless otherwise provided under the city's ordinances. If the City is closing a public right-of-way to general access, either partially or fully, in order to accommodate a special event,the City may relocate the vendor to an adjacent location outside the special event boundary, subject to the spacing requirements of Section 5.65.120.D. 5.65.190 Denial, suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct 8 business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. 3. Any required license or permit has been suspended, revoked or canceled; or 4. The permitee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 5. That the permitee has abandoned the use of the permit operating area for the conducting of business. The failure of a permitee to vend from a vending cart within the permitee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation, the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons therefore. Such notice shall contain the further provision that it shall become final and effective within ten days, unless such action is the result of a failure of the permitee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. 9 A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A,Zoning,where they conform to the requirements below. 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E; the requirement of insurance under Section 5.65.060; the requirement of location review under Section 5.65.110; the suspension or revocation of business license due to a lack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall be required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots,regardless of zoning district, is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals, neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled"Table of Permitted and Conditional Uses for Commercial Districts,"shall be and hereby is amended to read as set forth on Exhibit"A" attached hereto. 10 SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B" attached hereto. SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Downtown Districts," shall be and hereby is amended to read as set forth on Exhibit"C" attached hereto. SECTION 6. The table located at Section 21A.31.050 of the Salt Lake City Code entitled"Table of Permitted and Conditional Uses for Gateway Districts," shall be and hereby is amended to read as set forth on Exhibit"D" attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit"E" attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart" includes any non-motorized mobile device or push cart from which limited types of products, as listed in Chapter 5.65 of this Title, are sold or offered for sale directly to any consumer,where the point of sale is conducted at the cart,where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah,this day of , 2000. 11 Passed by the City Council of Salt Lake City, Utah, this day of , 2001. CHAIRPERSON AT l EST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER (SEAL) BYP " Bill No. of 2001. Published: G:\Ordina0l\Amending Code re vending carts-Clean-Oct 26,2001.doc 12 Notice of City Council Public Hearing Newspaper Notice Mailing Notice Mailing List Classified ad (Special Notices) copy for Salt Lake City Council Public Hearing Newspaper Agency Fax 237-2776 Run Ad in"Special Notices"on , 2001 (one time only)in Deseret News and Salt Lake Tribune Billing Address: 451 S. State Street RM Salt Lake City, UT 84111 Contact: [Ad copy as follows] Salt Lake City Petition 400-00-41 On , 2001, the Salt Lake City Council will hold a public hearing to consider making alterations to the vending cart ordinance. The ordinance will be reviewed and changes considered, which are intended to simplify the ordinance and expand opportunities for vending in the public way,public parks and private property within Salt Lake City. The public hearing will begin at_: p.m. in room 315 of the City County Building, 451 South State Street, Salt Lake City, UT. For more information or for special arrangements, call Doug Dansie at 535-6182. NOTICE OF PUBLIC HEARING The Salt Lake City Council is currently considering Petition 400-00-41 from Salt Lake City Community and Economic Development requesting that the sidewalk-vending ordinance be reviewed and changes made, which are intended to simplify the ordinance and expand opportunities for vending in the public way, public parks and private property within Salt Lake City. As part of their study, the City Council is holding an advertised public hearing to receive comments regarding the request. Anyone desiring to address the City Council concerning this issue will be given an opportunity to speak. The hearing will be held: DATE: TIME: 6:00 P.M. PLACE: ROOM 315 City and County Building 451 South State Street Salt Lake City If you have any questions relating to this proposal,please attend the meeting or call Doug Dansie at 535-6182,between the hours of 8:00 AM and 5:00 PM, Monday through Friday. We comply with all ADA guidelines. Assistive listening devices and interpreter services provided upon 24 hour advance request. ,Jv75- , ate, �t...t� __ __rry _,iz......•�.F... r_v, iraa John& Samantha Francis Jay Ingleby 70 Van Buren Avenue 1148 Redwood Dr. Salt Lake City, UT 84104 Salt Lake City, UT 84104 Randy Sorensen 1184 Redwood Road Salt Lake City, UT 84104 Casey Jarmen SLC Arts Council 54 Finch Lane Salt Lake City, UT 84102 OibB `�? axu aiuS b0I n `�?Da tluS its in ` .30)1g1;IuS �,1P o2I P ^Wa2i 811 ICI Poo all 8bI I arum V alma uuA OL suaaoS Cp gaiul Cef spire/ su mil uzuS ag uyof lit; , _9.E `Wo o_• r ,,y,`-;.tc":;_5 a6A E.�.4f3ows- LARRY RIGBY,CHAIR KATHERINE GARDNEK,CHAirc GRTR.AVENUES COMM.COUNCIL CAPITOL HILL COMMUNITY COUNCIL CENTRAL CITY COMMUNITY COUNCIL 1428 E.CIRCLE WAY 606 DESOTO STREET 555 EAST 100 SOUTH,#206 SALT LAKE CITY,UT 84103 SALT LAKE CITY,UT 84103 SALT LAKE CITY,UT 84102 TAMARA WHARTON,CHAIR SAMANTHA FRANCIS,CHAIR BETSY BRADLEY,CHAIR LIBERTY WELLS COMM.COUNCIL PEOPLES FREEWAY COMM.COUNCIL RIO GRANDE COMMUNITY COUNCIL 1487 SO.EDISON ST. 70 W.VAN BUREN AVENUE 48 W.BROADWAY#1705 SALT LAKE CITY,UT 84115 SALT LAKE CITY,UT 84115 SALT LAKE CITY,UT 84101 BRUCE ALDER,CHAIR JIM BYRNE,CHAIR SHAWN McMILLEN,CHAIR ARCADIA HEIGHTS/BENCHMARK FOOTHILUSUNNYSIDE H ROCK COMMUNITY COUNCIL COMMUNITY COUNCIL COMMUNITY COUNCIL 1855 SOUTH 2600 EAST 1835 SO.LAKELINE DRIVE 1966 EAST 900 SOUTH SALT LAKE CITY,UT 84108 SALT LAKE CITY,UT 84109 SALT LAKE CITY,UT 84108-1367 MIKE ZUHL,CHAIR PAUL TAYLER,CHAIR DOUG FOXLEY,CHAIR INDIAN HILLS COMMUNITY COUNCIL OAK HILLS COMMUNITY COUNCIL ST.MARY'S COMMUNITY COUNCIL 2676 E.COMANCHE DRIVE 1165 SO.OAKHILLS WAY 1449 DEVONSHIRE DRIVE SALT LAKE CITY,UT 84108 SALT LAKE CITY,UT 84108 SALT LAKE CITY,UT 84108 JEFFREY MULLINS,CHAIR TIM DEE,CHAIR SUNNYSIDE EAST ASSOCIATION SUNSET OAKS COMMUNITY COUNCIL 873 SO.WOODRUFF WAY 1575 DEVONSHIRE DRIVE SALT LAKE CITY,UT 84108 SALT LAKE CITY,UT 84108 RICH OSGUTHORPE,CHAIR LISETTE GIBSON,CHAIR JULIA ROBERTSON,CHAIR WEST OF LOWER FOOTHILL(WOLF) YALECREST COMMUNITY COUNCIL EAST CENTRAL COMMUNITY COUNCIL 1942 E.ST.MARYS DRIVE 1764 E.HUBBARD AVE. 1218 EAST 600 SOUTH SALT LAKE CITY,UT 84109 SALT LAKE CITY,UT 84108 SALT LAKE CITY,UT 84102 BORIS KURZ,CHAIR PATRICK TAN,CHAIR WILLIAM COOLEY,CHAIR EAST LIBERTY PARK COMM. JORDAN MEADOWS COMM.COUNCIL ROSE PARK COMMUNITY COUNCIL COUNCIL 566 NO.SIR MICHAEL DRIVE 1009 TALLY HO AVENUE 1203 SOUTH 900 EAST SALT LAKE CITY,UT 84116 SALT LAKE CITY,UT 84116 SALT LAKE CITY,UT 84105 BRUCE NEWMAN,CHAIR KADEE NIELSON,CHAIR RAY PUGSLEY,CHAIR STATE FAIRPARK COMM.COUNCIL WEST POINTE COMM.COUNCIL SUGAR HOUSE COMM.COUNCIL 459 NORTH 600 WEST 1410 NO.BARONESS PLACE 2171 HANNIBAL STREET SALT LAKE CITY,UT 84116 SALT LAKE CITY,UT 84116 SALT LAKE CITY,UT 84106 EDIE TRIMMER,CHAIR RANDY SORENSEN,CHAIR POPLAR GROVE COMM.COUNCIL WEST S.L.COMMUNITY COUNCIL 246 SOUTH 1300 WEST 1184 SO.REDWOOD DRIVE SALT LAKE CITY,UT 84104 SALT LAKE CITY,UT 84104 Revised 2/6/01 sj Planning Commission Hearing Newspaper Notice Staff Report (The attached staff report is the April 2001 staff report. It includes: a cover memo, letter from the CED Director, original staff report and correspondence, minutes from the September and October 2000 meetings and the draft ordinance approved by the Planning Commission on October 5, 2000.) Additional Staff Comments (These comments were received after the Planning Commission approval and are not integrated into the attached ordinance.) Minutes (The minutes are from the final approval—April 19, 2001. Minutes from the September and October 2000 meetings are included with the staff report.) BY Diii ��W CIO Q THE/1` ,V 4 j� , SAN '1 a e'' r�t'3 w Woodsendo- O, � 0a� Q racy"golf b., o (� `�a.-Y zine ads,but custom-made ` ra g O „4. ik everyday duffe s edged Tuesday.. -R ar federal court. 3§Q o • Nike Inc.said uses for his mons £ may. �q produce 300-plus-y.. '„ t N k, a slightly harder in's'J Tj F- core than the balls dPI_. ., ra 41 a public. �r M� i Those two ele PTr• f ,^; slightly firmer than th. /6p : pg ball," Mike Kelly, mare O0 • Pe, rector for Nike Golf,tot.. : v sociated Press. �S Kelly said it is common i f'��"�Y. in the golfing world to sell t Q :dt /Bo a 41 tic different products than ` t o/e ail the pros really use. "Ifs an industry practic.. ��� 4'Sb. •v s t ' make minor specification chin dy 'aq$Q y P. to golf products:irons,putters. .°0 , II/ e i g golf balls for tour players;'Ke yP k, s• s, q said. "Slight specification an q'kOQ.fPp • ?2p % .§ modifications need to be made I. 4,,,, .iy° ; 2� ' f';m their equipment for their game." 4 rs,, e '� r � But other leading names in golf ' s / say their customers get exactly ei dribs° what their pros endorse. Joe Go es,a spokesman for Ti- 4h0d04 N e /, a tleist,of Fairhaven,Mass.,said its , -) Bountiful's Utah Upholstery g�e < . Pf '0Y gc�C 06.,L/s O c,,.,,1,s145 S�t,,�'245 C'• �. t j �. afs 4 .( ' Sr�Od /5� 295-7404 �, (j��� A,� fi°frk. r Visit newreveletions.com ,r �fq Qa (pit* 70 'PG-ids da a,P 9 ` d4y. ,04,.. �j0 op To read received PATIOS,S i, 2)49 I" `� °k6's,�PQo from the lord,obtained after LAxpsc ?� �aa IPoP � �y tf o 52 days of fasting.Find out Fl ptE o o. &e o°aa Y� us y^d', do 4''0''''e what is.,...., to hoppen. E5�IM 3o PcP a `Q�b It., 0!o�0' oP t - .2.,3q�y^'�^,y`. ♦fa� 4+P LPS�S tea ' /p) 4, ✓%"°' �NV/ Safe 7 11, � s%P< 010 Special 03 ost and Found 035—Lega �/�f�O%6O O ,s �•A , Notices LOS(16'a .n- AktaMire RroCriminalA 2, ' ?,i, ixdi fs S teat, aweo.txda3 m oe . + 9', 2,r a Solt WYe Cry Petition i000041 MrM,Ge.•.I z33a997/s16G1]e The 1Icso1C ofroa.. , ,� 6 (�. 2OP a/L O7 Sealaa✓Jel 7.2000,The Sal 1051:C• 'B00 S.32f10 W.!//14 6 �V �� late City wvniv camistiai %ea a coil:2-25123a>le/wl. 2 J e fq wa hdd a pelt Lang la car BAN RUPTC Pam'�'s '- f ya roc �mtyy econr,��datps 1 wi Can, a Yebw Lab, r C�j ! S� �` e we c"1,11 dry 4. n�.-•area.801 o J,wdO19 DI MY ICE/tuwlaw cad. r9 $ / s 6� , R nmordinance w`ie ma.iiewead o d L,,,,,ik,..e .lardan tact your �hi ion,J. (,,, .- �j s ,�o '999p oses 0005 h ada a sin aB°' 4 nvacAnaaet osl.2 /0/°7-'� 0 '0 .5 or d F PW vendi9 LY ii.gGtc way.f.1SSYKs .. cook.wtile p.,=teawginrapellc p Ta,ga rivf.. a vonedr".1 `!!:, nat't ,P - ,0 4. 82S . w111i1 Ito CM.11s P�K stu Narak Vic.Po pq.g{y Adar.Atlar.Y •••�(J CO,a o .? <.o �r oven :bec,t,j.15 Cpantyl 5.110D REWARD.Cd501-1}U �µ .sem,oa,cM/ +�Q� �O 7Q�S . 3r p�g�p�p120.51 Sa�lh Hale Steel, A( ChM�a.Ilex&Wmai 5J3-610 `?(7 / `.O �d>p+ s Sd on Cil'.UI.in mad Ha. Qo3 caiiwMeAW 237-2000 d E monk,a la a a< Insurance .� 80 %, 6 - = roas, .. monk Sao Mug oawe a 5"�'.s 1, 't Vs a c�`a $m 4 saBtiatec pal0bn.,,62 IndividudHeaflttirou0nce 036 Con Counseling 330 98• :D m / S, gam#48, 0.1 s //y�, IS 6b g _E�i.9-ig J 61, 9° am.�°,o o m`a--' o�E o° Classified ad (Special Notices) copy for Salt Lake City Planning Commission Public Hearing Newspaper Agency Fax 237-2776 Run Ad in"Special Notices"on August 24, 2000 (one time only) in Deseret News and Salt Lake Tribune Billing Address: Lucille Taylor Planning Division 451 S. State Street RM 406 Salt Lake City,UT 84111 Contact: Doug Dansie 535-6182 [Ad copy as follows] Salt Lake City Petition 400-00-41 On September 7, 2000,the Salt Lake City Planning Commission will hold a public hearing to consider making recommendations to the City Council regarding the sidewalk- vending ordinance. The ordinance will be reviewed and changes made in order to simplify vending in the public way,public parks and private property within Salt Lake City. The public hearing will begin at 7:15 p.m. in room 126 of the City County Building,451 South State Street, Salt Lake City,UT. For more information or for special arrangements, call Doug Dansie at 535-6182. ';rxa arepaan'Z is Si atelsaalul;o salter pu *CI° ., -,, , -won at'} uo var. tom AVØAU 3A3 Acuopos�sare tear to j,oun s.Septio sad p£:g of'm's 0£:6 moa;}: 51 Elm mop aka;Pa}atalsaa ay MOT ;aatoad u1.1rd e s oa renal 3IUd ai}s.q a;o}.ted se wigs' aa}d, -aaqu 9utkmq air smaaj sKaam aaatu ao;ouer ar`dup e o;pa;ltlt l ess3 7 papal 0q IPA u0p20 rn 1saM oOE o] moa;gem;orquanta ;o sous' ptmoq;sea ay a393M O sp ivmpq i°H— -uo"euop 1 ogt Mph pesegamd near!aneq -1 paa}.dun 6penstn ay;ao;ads} o .Septi,3 pus Aepsaupa�AupuoN ao srooq AlT RSIA M 1 Snore 0 ;i op sjja�1g SyronHalf., s}siuucttioo 'nouns aalndmoo e uo lxot am -. salmiso•-.-_ 0.9 '. Thursday,April The Salt Lake Tribune_- Mike Chabries, Corrections B6 ••An me less a c. executive director,and others fl j mittee "' such as erect repeat lY warned lawmakers R1 Crowding: pensive options. dnrg court bed shortage. miner Teacher C t Mils.not reporting C a potential a ni trot eon centers.The commission also of ab pot llion to opeT' Waives Hearing Drug Offenders to investigate Utah's asked for$195 w which included intends ends absconding Pam in ah's ding year. tracts In Drug Case Pose Dilemma which makes it a led fund county lam:won Aforme sRoytu to of from B 1 to leave the area or state with tilre allotted$ig4 mill teacher and coach accused r Continued out fast notifying the s part? 470 eher FREE COPTSUm$R pr¢ssur urg-students to g rs mates Aim _ � $bo prescription waivedR so they can cr who violated their Pa her reserved. vital move in- 1�were convicted of ()N 1n Wednesdayhear- safely role in and sent to Prison, i..t9P� fight to a preliminary mates. absconding For rice..modetacrr.. a cushion __ �, 9 a.s ' c x of 5 � �t SBt oo++ 11�� rTM �iur;r6nia nnheikerl� �+ ,: s tter calls_..the ';°��"M�Ikp1Ok eva°.°ruses-no-+m 5 �� con Dtl•+.urcwmY R�`��A.r�� 1 1 se i --.- . 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State Street RM 406 Salt Lake City,UT 84111 Contact: Doug Dansie 535-6182 [Ad copy as follows] Salt Lake City Petition 400-00-41 On April 19, 2001, the Salt Lake City Planning Commission will hold a public hearing to consider making recommendations to the City Council regarding the sidewalk-vending ordinance. The ordinance amendments are intended to simplify the process for approving vending in the public way,public parks and private property within Salt Lake City. The public hearing will begin at 5:45 p.m. in room 126 of the City County Building,451 South State Street, Salt Lake City, UT. For more information or for special arrangements, call Doug Dansie at 535-6182. NESTEPHEN A. GOLDSMITH S ` !I ° f A\ Q `=' E T CORD®D ,.' iIO ROSS C. ANDERSON PLANNING DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT MAYOR BRENT B. WILDE PLANNING DIVISION DEPUTY PLANNING DIRECTOR MEMORANDUM Date: April 12, 2001 To: Planning Commission From: Doug Dansie, AICP Subject: Vending ordinance petition The Salt Lake City Planning Commission has previously recommended the adoption of changes to the Sidewalk Vending Ordinance. The proposed ordinance has been forwarded to the Administration, but has not been transmitted to the City Council for final action. In a letter to the Planning Commission dated February 15, 2001, Alison Gregerson, CED Director, asked that the Planning Commission review the proposed vending ordinance changes and consider the following: • Return to a 100-foot spacing(the proposed ordinance,previously recommended by the Planning Commission, changed the distance from 100 feet to 300 Feet). • Return to two vendors per block on Main Street (two vendors were originally allowed, the proposed ordinance reduces the number of vendors to one per block). • Delete the exemption for required spacing from special events and the Gallivan Plaza (this exemption is new to the proposed ordinance). It is recommended that the Planning Commission hold the public hearing and discuss only the specific items in question. Alterations that would accommodate Ms. Gregerson's request a_o.illustrated on pages 6 and 7 of the attached ordinance(the attached ordinance was derived from the Planning Commission's previous approval). If the Planning Commission concurs with the proposed alterations, it is recommended that the Planning Commission adopt the alterations, direct the City Attorney to draft an updated ordinance and forward the new ordinance to the City Council. Attachments • Letter from Alison Gregerson CED Director • Original staff report and associated correspondence • Minutes from previous meetings and public hearings • Proposed ordinance(derived from the previous Planning Commission approval) with alterations highlighted (pages 6 and 7) that coincide with Ms. Gregerson's request. 451 SOUTH STATE STREET, ROOM 406, SALT LAKE CITY, UTAH 84111 TELEPHONE: 801-535-7757 FAX: B01-535-6174 alk RECYCLED PAPER Letter ALISON TREGERSEN WEYHER AT I \a��.�.�� (CORM DIe (�`©"'F ROSS C. "ROCKY" ANDERSON ACTING DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT MAYOR February 15, 2001 Max Smith, Chair Salt Lake City Planning Commission 451 South State Salt Lake City 84111 Dear Commissioner Smith and Planning Commissioners: Recently the Planning Commission approved changes to the Sidewalk Vending Ordinance. Many of the changes, including allowing multiple items to be sold from the carts, adding newspapers to the list of approved merchandise, clarifying and simplifying both the application process and locations allowed for carts, strengthen our vending cart program. However, I believe that the changes limiting the proximity of the carts to similar businesses and the Gallivan Plaza, as well as reducing the number of carts per block face in the CBD, will have a negative impact on the vibrant street life we are all trying so hard to create. For that reason,before forwarding your recommendations to the City Council,I wanted to visit with you so that I could better understand your concerns on the following issues. 5.65.120A As you will remember, during the Main Street design process, in order to create a more vibrant pedestrian walkway, we established separate sections of the sidewalks—clear paths for pedestrians, living room areas for visiting, locations for art displays and street vending. We envisioned being able to buy a cup of coffee or a magazine and sit in the sun with friends enjoying the sense of community. Limiting one cart per block face, including Main Street, restricts the street life/pedestrian activity allowed. If our goal is to encourage a more walkable Central Business District, allowing carts at midblock and at corners will not be excessive or cause congestion. I understand cart operators may not like the competition, but frequent carts are necessary for the program to succeed. For example, an espresso cart outside Crossroads Mall (which Nordstrom used to do) will not compete with a sandwich vendor adjacent to the Crandall Building. If that vendor were required to locate on the southern side of the block,he would not be permitted to do so because of Subway on the Main Street edge and the Marriott on the West Temple edge (which does have an entrance to the restaurants off the street). Requiring the carts to maintain a 300 foot separation would still limit the number of vendors but would encourage pedestrians to walk from cart to cart perusing the merchandise. 451 SOUTH STATE STREET, ROOM 404, SALT LAKE CITY, UTAH 8411 1 TELEPHONE: 801-535-6230 FAX: 801-535-6005 wce+eco..... 5.65.120 SECTION E Changing the spacing requirements to require vendors to be 300 feet from a building that sells the same type of merchandise instead of 100 feet, is an issue that is partly my fault. This issue was raised by a Mexican restaurant that objected to the close proximity of a taco cart. It was an unfortunate situation, however, we do not restrict restaurants from locating adjacent to each other, or require other businesses to maintain spacing requirements, nor do I believe that individuals would choose a cart over a restaurant unless they were looking for take-away food, or did not want to patronize the restaurant. For example, the short-lived coffee vendor outside the Walker Bank Building did not have the same clients as those who go into Lamb's for a meal. He might have had an impact a fast food restaurant, or a coffee store, but not an established restaurant. I would advocate leaving the 100 foot spacing requirement and encouraging existing establishments, if appropriate, to open vending carts in close proximity to their business, as is being suggested in the Omnibus Special Events Ordinance. Finally,while I can understand the desire of the Gallivan Plaza management to insure the success of vendors at their events, I do not believe it is fair or appropriate to grant them special exceptions and require vendors to locate 300 feet away from the Plaza during special events. We have not extended the same requirements to the Farmer's Market or other downtown festivals (including First Night or the Music Festival) and I don't understand why it is appropriate to do it here. I hope we will be able to discuss these issues this evening. I am anxious to forward this transmittal to the Council, and appreciate your clarification of what has been a very confusing ordinance. Thank you for your help. Sincerely, .` ' Alis n A. Gregersen Original staff report i SALT LAKE CITY PLANNING COMMISSION STAFF REPORT PETITION 400-00-41 FROM SALT LAKE CITY COMMUNITY AND ECONOMIC DEVELOPMENT REQUESTING THAT THE SIDEWALK VENDING ORDINANCE BE REVIEWED AND CHANGES MADE TO SIMPLIFY VENDING IN THE PUBLIC WAY AND PUBLIC PARKS WITHIN SALT LAKE CITY BACKGROUND AND-OVERVIEW Salt Lake City has an existing vending ordinance that allows sidewalk vendors to operate on public sidewalks and private property in the Downtown area and the Sugar House business district. Vendor are also allowed on private property in other zoning districts which allow outdoor sales. The Administration has asked that the ordinance be reviewed and changes made to simplify the process to encourage more vendors. PROPOSAL Highlights of the existing ordinance include the following: • Allows one vendor per block face (two on Main Street) • Requires 100 foot spacing from similar uses on private property (restaurant, etc.) • Limits hours of operation (closed at night except special events—midnight to 6 am) • Limits size and number of coolers, chairs, etc. • Requires lottery to determine vendor location • Limits carts to single item for sale(food or flowers and balloons) • Allows vendors on private property Downtown (and other zoning districts where outdoor sales are allowed) • Allows vendors in Downtown parks (Dinwoody, Washington Square, Pioneer) The proposed changes will do the following: • Requires 300 foot spacing from similar uses on private property (remains 100 foot spacing on Main Street) • Increase size and number of coolers allowed(for Health Dept. reasons—eliminate storage of raw meat with drinks, etc.) • Extends area where carts are allowed(from 400 West to 600 West, into all City parks and onto some private commercial property which now requires a conditional use process) • Simplifies the administrative requirements(no lottery required) • Allows sale of multiple items from carts (food, flowers/balloons and newspapers) • Would allow vendors,with restrictions, as a permitted use, in some zones that now allow outdoor sales only as a conditional use (CB Commercial Business, CS Shopping Center,M1 and M2 Manufacturing, and G-MIJ gateway mixed-use). They are not being allowed as a permitted use in "neighborhood"oriented commercial zones (CN Neighborhood Commercial, RB Residential Business, R- MU Residential Mixed-use) • Allows vendor to use multiple sites (up to 5)with one vending cart • Slightly increases size of allowable carts and associated umbrellas, etc. • Allow vending carts in all City parks subject to administrative standards set for each park ANALYSIS MASTER PLAN CONSIDERATIONS The Downtown Master Plan encourages the lively use of Downtown streets and increased activity levels. The Administration has made it a high priority to encourage small businesses in all other portions of the City. COMMUNITY COUNCIL RECOMMENDATION The issue of providing more opportunities for vendors was presented to the Downtown Alliance and Retail Merchants Association in July of 2000 and the Community Council Chairs at their August 2000 meeting. No formal recommendation was provided. The public hearing was advertised in he Salt Lake Tribune and Deseret News on August 24, 2000. ZONING SPECIFICS The vending ordinance occupies its own section of the City Code, Chapter 5.65,however, some changes are proposed to the use tables within the zoning ordinance, therefore,the staff report is being written using the criteria of a zoning ordinance change. STANDARDS FOR GENERAL AMENDMENTS TO THE ZONING ORDINANCE The following standards are listed in the zoning ordinance [21A.50.050] and must be considered for all proposed zoning amendments: A) Whether the proposed amendment is consistent with the purposes, goals, objectives, and policies of the adopted general plan of Salt Lake City. Discussion: The Downtown Master Plan calls for the enlivenment and active use of the sidewalk area. Other Master Plans are silent or neutral regarding the subject. The current Administration has placed a high priority on encouraging small businesses. Finding: The zoning amendment is consistent with applicable master plans. B)Whether the proposed amendment is harmonious with the overall character of existing development in the immediate vicinity of the subject property. Discussion: The changes to the zoning ordinance affects multiple properties. Sidewalk vending is presently allowed by the vending ordinance on the sidewalk (public property) and private property in the Downtown and Sugar House areas. Vending is also allowed on private property in all commercial zones that allow outdoor sales as a permitted use. Vending has historically been allowed as a conditional use on private property in all zones that allow outdoor sales as a conditional use. The proposed amendment would make vending a permitted use in some zones that presently allow outdoor sales only as a conditional use(CB Commercial Business, CS Shopping Center,Ml and M2 Manufacturing, and G-MU gateway mixed-use). Those zones where vending is changing from a conditional to permitted use are generally not near residential zones, however, criteria have been included in the proposed draft ordinance to minimize residential conflicts. These criteria include limitation of operating hours (7 am to 10 pm, consistent with the Salt Lake City/County Health Department noise ordinance). Also, site review for vendors is required if the site is located adjacent to residential zoning. As a practical matter, most vendors on private property locate near the building entry,however, site review will allow the city to minimize conflicts with adjacent residential properties. Another item of conflict is with special events. The existing vending ordinance allows vendors to remain at their permitted sites during special events. The intent is to not force dislocation during parades, etc. However, some special events involve street closures and/or admission charges (arts festival, music festival, Living Traditions festival). The proposed change would allow the City to relocate vendors outside special event boundaries if the right-of-way is closed to general public access, but not if the right-of way remains open to the public. The proposed changes would also include spacing requirements from the entry to special events on private/non right-of-way property (similar to the 100/300 foot spacing from restaurants on private property, etc.). In response to complaints form restaurant owners, general spacing requirements from similar businesses have been increased from 100 to 300 feet(except on Main Street where two permits are allowed per block). No spacing requirement has been included between vendors. Some complaints have been received regarding vendors operating too close together because two vendors may be located on different street faces,but move to the same corner. Any attempt to space vendors from each other in this instance becomes complicated because all attempts to regulate result in a "first one there" argument. The staff does not deem the problem to be critical,but one that should work itself out in a free market. Vending carts are being proposed to be allowed in parks, consistent with an administrative approval process. The former ordinance had conflict such as specifically allowing vending in Washington Square,yet the City had a prior contract with a food vendor in the building, which caused friction. Conversely, the City Parks Department wishes to occasionally allow vendors at ball games. This ordinance change will allow the latitude to determine policy for individual parks. Finally, the issue of spacing on private property has been raised. The existing and proposed ordinance has square footage/spacing requirements to eliminate saturation of the market on private property, however, if a private property owner does not want a vendor on their property, they simply need not lease to them. Finding: The proposed amendment is harmonious with existing development. C) The extent to which the proposed amendment will adversely affect adjacent properties. Discussion: Since vending is allowed as a permitted or conditional use in all of the zones affected by the draft ordinance, impacts should be minimal. The intent of the ordinance is to streamline the permitting process. Increasing the spacing distance on the sidewalk will actually decrease impacts to some adjacent properties. Finding: Adjacent properties will generally be no more affected than they presently are. D) Whether the proposed amendment is consistent with the provisions of any applicable overlay zoning districts which may impose additional standards. Discussion: The vending ordinance does not apply to physical structures, therefore historic overlays, etc., do not apply. Finding: Not Applicable. E)The adequacy of public facilities and services intended to serve the subject property, including but not limited to roadways, parks and recreational facilities, police and fire protection, schools, stormwater drainage systems, water supplies, and wastewater and refuse collection. Discussion: The Salt Lake City Public Utilities Department has stated that they are only concerned if there are secondary impacts, such as wastewater discharge into public drains etc. The carts themselves do not cause a problem Finding: Public facilities are adequate. FINDINGS AND RECOMMENDATION The staff finds the following: • The existing vending ordinance has unnecessary restrictions,which may be modified to simplify the permitting process • The proposed ordinance simplifies the process of approving vending carts in City Parks and other areas that currently require conditional use approval. • The vending ordinance is consistent with the Downtown Master Plan. • The proposed changes will enhance vending opportunities and profitability while eliminating existing conflicts. The staff recommends that the Planning Commission forward a positive recommendation to the City Council recommending adoption of the proposed ordinance changes (both modifications to zoning districts and modifications to the vending ordinance). MEMORANDUM Date: September 27, 2000 To: All Planning Commissioners From: Doug Dansie, AICP Subject: Vending ordinance At the Planning Commission Meeting on September 7, 2000, the Planning Commission held a public hearing regarding vending carts. The Planning Commission tabled the petition pending resolution of additional issues. Attached is a revised copy of the vending cart ordinance, and associated ordinances, showing both the original and new proposed changes. Changes have been made per Planning Commission request which accomplish the following: 1. The Administration may authorize up to four additional sites per cart (as opposed to former language that implied the administration must authorize four additional sites,regardless of other conditions). [5.65.050] 2. One permit is allowed per block face, including Main Street,which presently allows two per block face (this is an issue advocated by some of the vendors). [5.65.120.A] 3. Spacing from similar"fixed"uses is increased to 300 feet in all areas (since there will be only one site per block on Main Street, instead of two, the spacing will also be increased from 100 to 300 feet). Vendors have complained that the 300 foot spacing is too large (blocks are generally 660'). [5.65.120.D] 4. Gallivan Plaza(during events)was specifically listed as a site subject to spacing regulations. [5.65.120.D] 5. Two coolers and one water container are allowed, instead of three coolers. The Planning Commission may specifically wish to refine this criteria. The vendors argue that they need the coolers because the refrigerators on the carts are actually iceboxes,which are rendered ineffective during the heat of the summer months. [5.65.140.G] 6. Proposed language,which allows vendors outside the Expanded Central Business District,has been adjusted from the previous proposal. The current draft would NOT allow vendors in zoning districts that presently allow outdoor sales as a — conditional use. It would limit vendors to sites of two acres or more within specific zoning districts that allow outdoor sales as a permitted use. The new draft ordinance proposes only the CC, CG, all Downtown zones, G-MU, Sugar House, and all Manufacturing zones allow vending on private property. A map has been included that illustrates zones where vending on private property could be allowed. Those zones that are presently listed within the attached draft are marked with an asterisk. Additional zoning districts are also illustrated for discussion purposes. The map includes only those parcels over 2 acres in size (consistent with the draft ordinance). The Planning Commission is being specifically asked to provide guidance as to which zoning districts they believe should be added or subtracted from the draft. The proposed language, as written, is more restrictive than the current administrative interpretation regarding vendors and outdoor sales. Vending on private property outside Downtown and Sugar House was not addressed within the original/existing ordinance. It has been allowed in zones that allow outdoor sales through administrative interpretation. The Planning Commission is also being asked to give specific policy direction to the entire concept of vendors on private property outside the originally defined sidewalk vending area. [5.65.220] 7. After the Planning Commission public hearing, staff checked complaints of illegal vendors. It was discovered that some of the vending carts in question had actually received permits in zoning districts where outdoor sales is not otherwise permitted, without going through the conditional use process. The vendors were approved through the use of the "temporary use"ordinance. To rectify this problem,proposed modifications of the Temporary Use ordinance are included with this memo, Section 21A.42.020. It is recommended that the Planning Commission also include changes to this ordinance, along with the other ordinance modifications, in order to eliminate confusion and clarify that the Temporary Use ordinance was not intended to allow vendors in zoning districts where they would otherwise not be allowed. Those vendors who have received permits via the Temporary Use ordinance will be expected to move to another legal location at the expiration of their existing temporary permit. [21A.42.020] 8. In anticipation of the Olympics, a moratorium on the issuance of vending permits within the geographic area of the Olympics Special Event application, has been included to eliminate potential conflicts. The moratorium will expire in March 2002. [5.65.025] 9. Since the Vending Cart ordinance will now be cross-referenced to the zoning ordinance, a definition of"vending cart"is proposed to be added to the zoning ordinance definitions. [21 A.62] 10. The issue of insurance waiver was raised at the Planning Commission hearing. Section 5.65.220.A.1 eliminates the requirement for insurance on private property because the insurance required by this ordinance (5.65.060) is for City indemnification only. It is assumed that if a private property owner enters into a private contract with a vendor, they will have their own insurance demands and that the City is neither participatory nor liable for the private contract. This does not exempt the vendor from other health and licensing considerations. [5.65.220.A.1 & 5.65.0601 MEMORANDUM Date: October 2, 2000 To: Stephan Goldsmith, Planning Director From: Doug Dansie,AICP Subject: Vending and outdoor dining ordinances The question has been raised as to why the second draft of the vending ordinance appears to be more strict than the first draft of changes, as opposed to more relaxed, as requested by the Administration. The Planning Commission held a public hearing on September 7, 2000. There was considerable public input regarding the program, including numerous complaints of competition and neighborhood intrusion. The Planning Commission tabled the petition and asked that it be returned with several items reevaluated. It is scheduled to be reheard on October 5th The original petition was to liberalize the ordinance, although there were mixed messages. The Administration also asked that the spacing requirement from similar businesses be increased from 100 to 300 feet, which actually makes the ordinance more restrictive. Most of the changes suggested within the first draft (which loosen the ordinance)remain intact in the second draft. For example: • The definition of the Expanded Central Business District has been moved from 400 to 600 West, • The size of the carts has been increased, • The number of coolers is increased, • All City Parks have been included, • The permit process has been simplified, • The fee structure is to be set by policy(rather than mandated by ordinance), • The number of locations a single vendor may occupy has been increased. The majority of Planning Commission and neighborhood concerns involve the use of vending carts within neighborhood commercial zones (either as a permitted or conditional use). The original ordinance (now in effect) was silent regarding vending carts on private property outside of Downtown and Sugar House. Carts on private property have been allowed in all commercial zones where outdoor sales are permitted, and allowed conditionally in zones where outdoor sales are listed as a conditional use, according to administrative interpretation. The first draft of proposed ordinance changes would have permitted this by ordinance, rather than interpretation. However, there was a great deal of concern as to whether it was appropriate to allow vendors on private property in all commercial zones where outdoor sales are presently allowed, specifically neighborhood oriented commercial zones. After the hearing,it was also discovered than several vendors had been permitted in neighborhood oriented commercial zones,bypassing the conditional use process,using the temporary use ordinance. The primary issue to be discussed at the next Planning Commission meeting will be to clarify which commercial zones the City wishes to permit vendors on private property and to delineate it by ordinance,rather than interpretation. Except for the codifying of administrative interpretation regarding vendors on private property,the second draft remains more lenient than the existing ordinance. If the Administration has a particular direction they would like the Planning Commission (and the staff)to pursue,it would be appropriate to clarify the administrative stance. In regards to outdoor dining: Dining on the sidewalk is an administrative process, which is not set by ordinance. Therefore ordinance changes are not necessary. Outdoor dining in the buildable yard area has historically been allowed.Therefore ordinance changes are also not necessary. The only remaining issue is dining in required yard area, which has historically been allowed only as a conditional use. The proposed changes make outdoor dining in the required yard area a permitted use in appropriate zones(and leaves it within the conditional process in neighborhood oriented commercial zones,due to noise and parking conflicts). The proposed ordinance is more lenient than the existing ordinance. Minutes SALT LAKE CITY PLANNING COMMISSION Minutes of the meeting held Thursday, September 7, 2000 451 South State Street, Room 126 Planning Commission Members present were Aria Funk (Acting Chairperson), Robert "Bip" Daniels, Jeff Jonas, Craig Mariger, Mary McDonald and Judi Short. Kay (berger) Arnold, Andrea Barrows and Max Smith were excused. Planning Staff present were Deputy Director Brent Wilde, Joel Patterson, Ray McCandless, Margaret Pahl, Doug Dansie and Cheri Coffey. Petition No. 400-00-41 by Salt Lake City Community and Economic Development requesting amendments to the sidewalk vending ordinance to simplify vending in the public way, public parks and private property within Salt Lake City. Doug Dansie is the Principle Planner for the petition. Mr. Danise explained that the City presently has a vending cart ordinance that was originally adopted in 1993, and the proposed changes are to address expansion and concerns of vendors. The current ordinance allows vending carts on sidewalks in the downtown CB District and specific locations in the Sugar House area. Carts are also allowed on private property in any zoning district that allows outdoor sales. One of the proposed changes to the vending cart ordinance expands the CB District two blocks to the west. The CB District is currently located from South Temple to 900 South and from 200 East to 400 West, and would be expanded to 600 West. The expansion is being considered because of recent development in the downtown area which has actually expanded the area, and the City has received requests to allow additional vending carts in these areas. The expansion is intended to include the Triad Center, the Gateway Project and areas above and beneath the newly shortened freeway viaducts. Mr. Dansie continued explaining that Section 5.65.100 limits items for sale and allows only one product to be sold from a cart. The proposed change would still limit items, but more than one item could be sold from a cart. Daily or monthly news publications have been added to the list of items. Language in Section 5.65.040 also refers to single product type, and it has been eliminated. Section 5.65.110 currently allows vending carts in the Expanded Central Business District, the Sugar House Business District and specifically lists Pioneer Park, Dinwoody Park and Washington Square. The proposal eliminates "Pioneer Park" and "Dinwoody Park" and simply states "city parks". In regards to city parks and Washington Square, language was added in Section 5.65.120 that states the number of vendors in these areas shall be determined by administrative policy. The intent of this change is to limit the number of carts. The current ordinance allows several vendors on the Washington Square block that conflicted with the contract between the City and the restaurant located within that block. Mowing vending in parks according to administrative policy, allows the parks to decide on appropriate vendors rather than having an ordinance mandate one. Section 5.65.030 sets a land use fee of$175 annually. This has been changed so that the fee may be determined by administrative policy for each location. This gives the administration latitude to adjust fees according to sites. Language has been added in Section 5.65.050 to allow a single vending cart mobility. It allows a vendor to pick five places for one cart and move according to changes in activities during the day. The language still ties the vendor to a location and exclusive rights to sites. Ms. Funk expressed her concerns that this language may cause the monopolizing of sites. The first year that vending carts were allowed, the City received over 80 applications and Section 5.65.070 mandates an elaborate lottery system in order to set up locations for applications. The lottery has not been needed since and vendors who come back year after year usually renew at their existing site. The proposed change does not require it by ordinance, but it may be implemented by administrative policy if ever needed again. Also vendors who come back year after year usually renew at their existing site. Mr. Jonas asked for clarification regarding spacing as referred to in Section 5.65.120. Mr. Dansie explained that no spacing between carts is required, but spacing between a cart selling similar items and a stationary store, such as a food cart and a restaurant, is required. No food vendor shall operate within 100 feet on Main Street between South Temple and 400 South, and all other streets require a spacing of 300 feet. This allows two carts per block face on Main Street and one per block face everywhere else. Section 5.65.180 addresses vendors during special events. When the ordinance was originally adopted, there was a great deal of discussion. The vendors did not want to be told to move if the event was a parade or of similar nature. On the flip side, special events vendors expressed frustration when they were paying fees to be part of an event and the proximity of daily cart vendors make the appearance that they are part of the event without paying additional fees. The proposed language intends to address these situations by requiring carts to be moved outside the special event boundary if the City closes a public right-of-way for the event subject to the same spacing requirements as on Main Street if like items are sold. If the public right-of-way remains open, the City can not ask the vendor to move. Ms. McDonald asked how this will effect the Olympics vending. Mr. Dansie answered that it depends largely on how the special events process will be applied for the Olympics which is leaning toward geographic sites. Language for special events including the Olympics will need review by the Attorney's Office so that it is fair to both cart vendors and special event vendors. Mr. Dansie explained that it is the desire of the administration to expand opportunities for vending carts, and Section 5.65.220 is added to address expansion by allowing vending carts on private property outside the expanded CB District. Applicants proposing vending carts in these locations currently require permission by conditional use, such as Case #410-489. Section 5.65.220 would allow them as a permitted use on private property in zones that allow outdoor sales. The ordinance would required the vendor to provide proof of permission from property owners. Jay Ingleby, from the Glendale Community, expressed his opposition to mobile food carts on public streets, and most particularly carts located within neighborhoods on the west side. Mr. Ingleby is concerned that the carts impose unfair competition and create economic hardships for stationary restaurants. He also suggested that the Planning Commission and the City Council consider advertising their agendas in local newspapers. Decisions substantially effecting west side communities are being made and the communities are not getting notice. It is noted that Mr. Dansie reviewed the proposed changes with the downtown - retail merchants, downtown alliance, and the community council chair. The meeting was also advertised in the local newspaper. Mr. Wilde added that the City briefs community council chairpersons and then responds to any questions or concerns. After the briefing, Mr. Dansie followed up with a memo and a copy of the ordinance with instruction to distribute. The meeting was held August 1 and the memo was mailed mid-August. Randy Sorenson and other west side residents in the audience voiced their concerns about food cart regulations and sanitation standards. Gretchen Faulk was present to respond to the concerns and questions. Ms. Faulk is employed by the Bureau of Food Protection of the Salt Lake Valley Health Department and manages the mobile food program which includes vending carts. She explained that carts are regulated under the same regulations and held to the same standards as other restaurants. Vendors are required to a three-compartment sink at the commissary where the food is prepared. Each cart must have a two-compartment sink on board with hot and cold running water. Carts are inspected with the same frequency as restaurant and if complaints are received, the Division is required to respond within two working days. If complaints are an imminent health hazard, the Division responds as immediately as manpower allows. Everyone who works with food must have a food handlers permit or a management certification which is a higher level of training. The Health Department does not make regulations regarding ages of food workers. Any egregious sanitation error, such as the one described by a neighbor who saw a vendor rinse his knife with gutter water and then cut meat, must be reported to the Health Department. If the Department does not know of incidents like this, they can not do anything about it. The Department will respond to anonymous complaints and without witnesses. If vendors are operating from car trunks or any other means other than a cart, they may be operating illegally and must also be reported. The vendors are required to have available on the carts copies of Health Department permits and business licenses. By policy, the business name and phone number must be posted on the cart. The temperature of food is regulated and can not be below 40 degrees or above 140 degrees. The only foods commonly requiring refrigeration are cheese and meats and must be stored in ice chests. Every cart operator is required to have a thermometer designed to be placed right in the food. A pre-opening inspection is required before carts are placed on the street. The carts are then inspected twice a year or more, and certainly when a compliant is received. All carts are required to pay sales tax. Mr. Dansie added that Section 5.65.040 states that the Health Department may require a permit to be present on the cart along with all licenses. He also added that the design standards of the carts are clear and so if someone is operating out of something that is not clearly a vending cart, it is illegal. Vendors are licensed by Salt Lake City and the City will not issue a business license without a State tax identification number. Applicants for vending carts must also go through a background check. Ron Rosenlyn noted that a cart is operating on a public sidewalk on Redwood Road and 1000 South. Annie Lou Gutman, is a cart operator located on 100 South and Main Street, and said that it is unfair for the neighborhood to judge all carts unsanitary and a threat to businesses. She explained that she works closely with the Health Department and the Subway near her site. She follows all rules and regulations and more. No one has ever became ill from her cart and she has received many letters praising the cleanliness. Jena Bert voiced her concerns about vendors encroaching into the neighborhood. She explained that a vacant lot on the southwest corner of 700 South and 900 West is constantly filled with vendors selling all kinds of merchandise from any kind of vehicle including big trucks. Ms. Bert is also concerned about parking. Mr. Dansie said that carts are primarily oriented to foot traffic, but parking occurs on the street or if the cart is located on private property, then the parking lot respective to the property is used. Dixie Carter also voiced her concerns about vendors encroaching into the neighborhood. Greg Reed, from the Public Service Division of Salt Lake City and presenting the Galvan Center, explained that he is in charge of bringing over 200 special events to Block 57 every year, and the language regarding special events concerns him. He requested that the Galvan Center be specifically listed, and wants language that will protect vendors who participate in special events at the Center. Vendors participating in special events must pay a fee and it is a conflict when permitted vendors with like items appear to be a part of the event without paying the fee. He would like the Center to be recognized as a special event venue with the same distance from the entrance as afforded restaurants. Anza M-Ahmd explained that he has a cart on 200 South between Main Street and State Street. He is required to be 300 feet from the restaurant and believes that this distance is far enough and perhaps too far because there is no space left for anymore carts. Restaurants on 200 South are next to each other and they are selling without any problems. He said that vendors too pay taxes and licensing permit fees, and the 300-foot distance may be unfair when taking in account the scale of their business. He would like to see two carts allowed on Main Street. Mr. M-Ahmd also believes it is unfair to ask vendors to move their carts outside of an event if he is permitted on a daily basis. He said he would rather pay a special fee than be asked to go away. He would also like to be able to operate later especially during special events and the Olympics. Mr. M-Ahmd noted that the ordinance does not address back-up water and asked that carts be allowed back-up water, allowed four coolers instead of one and increase the cart size to eight feet from six. Mr. Dansie explained that the proposed changes include increasing the length of the cart from six feet to eight feet including the hitch, allowing for a larger umbrella and allowing two coolers instead of one. He noted Public Utilities requested that the language include prohibiting dumping water from carts into the storm water system. Currently, carts are allowed to operate 24 hours on the Day of'47 Parade. Bill Roberg, Assistant Coordinator for the Glendale Mobile Watch, said he is also opposed to expanding to the west. This opens more opportunities for illegal vendors in the west areas which is already a problem. Mr. Roberg explained that the Mobile Watch works closely with the Salt Lake City Police Department and they have been informed to be aware of ice cream vendors and trucks that front for selling drugs. William Hall said that he believes a cart operator who is willing to be in a location day after day maintaining his business and following the regulations should be allowed to continue regardless of special events. The hearing was closed to public comment and the Commission Members discussed the proposal. Ms. Funk advised residents to contact their Community Action Team Representative in the Mayor's Office to help with the illegal vending that they have witnessed. Mr. Dansie added that Detective Crowley of the SLC PD works closely with the Business Licensing Division regarding carts and can be contacted, and taking pictures of illegal vending during weekends would help. Responding to other concerns of the Commission, Mr. Dansie recommended postponing a findings on the proposed changes until case #410-489 has been heard. The case may bring up more concerns regarding allowing carts as a permitted use on private properties in zones that now require a conditional use process. Motion for Petition No. 400-00-41 Mr. Jonas made a motion to continue this petition until the Planning Commission has the opportunity to review concerns arising from the following conditional use application for a vending cart. Ms. Short seconded the motion, all voted aye; the motion passed. Case No. 410-489 by Evy Barney requesting a conditional use for outdoor sales and display for a vending cart in the Smith's grocery store parking lot located at 828 South 900 West in a Community Business CB zoning district. Cheri Coffey is the Principle Planner for the case. Ms. Coffey explained that the Petitioner currently has a cart in the Sears parking lot on 800 South and State Street. Because of the number of carts at that location, the administration held a lottery to relocate some carts and Ms. Barney's was one that was required to be moved. She,approached the Smith's on 800 South and 900 West which is located in a CB Zone. Smith's agreed to lease a part of their parking lot for her vending cart, but the current ordinance considers this an outdoor sale which is a conditional use and before the Planning Commission for approval. Ms. Coffey reviewed the conditional use standards and Staff findings: The vending cart is allowed as a conditional use in the CB Zone, and the request is in harmony with the Zoning Ordinance and the City's master plan. The cart will be located in the northeast corner of the Smith's parking lot and front 900 West. This location will not interfere with the internal circulation system, but the Transportation Division would like final approval on location to make certain the cart will not interfere with circulation of the parking lot. No utilities are proposed. Concerns regarding the application were buffering and hours of operation. Residential uses are located to the south of the Smith's property on Genesee Avenue and on the east side 900 West. The Applicant originally proposed the southeast corner of the parking lot, but the City's idea was to move the cart as far from the residential uses as possible and recommended the northeast corner. Currently, news paper recycling dumpsters are located in this area. Complaints were also received about noise from people congregating around an illegal cart during later hours of the day, so the hours of operation were limited to 7:00 a.m. and 10:00 p.m. The Applicant wanted to stay open as late as midnight. The request was reviewed by the Poplar Grove Community Council and the Council supports the request. Ms. Coffey said that she recommends approval of the application with the following conditions: • Vending cart be located in the northeast portion of the parking lot. • The Transportation Division shall have final location approval of the vending cart. • The operation of the cart limited to 7:00 a.m. and 10:00 p.m. • The applicant comply with the proposed design standards of the proposed amended Vending Cart ordinance Section 5.65.140. • The Applicant comply with the Operational Requirement of Vending Cart Ordinance 5.65.170. Jay Ingleby said that locating the cart in the northeast corner of the parking lot would hinder traffic. The parking spaces in this area are filled most of the time and create congestion. The cart would further block the entrance. Jena Bert, Member of the Poplar Grove Community Council, explained that this request was presented to the Community Council in May. She noted that a taco cart is already operating in the parking lot. Dixie Carter said that she believes the proposed location of the cart will create congestion in the parking lot. She noted that fireworks stands allowed in the lot have created congestion in the past. She also believes that a taco cart is not necessary. A restaurant, Little Ceasars Pizza, a 7-11 store and Campos Market along with Smith's all serve food and are located in the immediate area. Ms. Carter asked the Planning Commission to voted against the proposal because she feels the neighborhood does not need any vending. She added that she believes the area is not a safe place for a cart vendor or customers. Richard Denton, lives in the Glendale area, and said that one cart is presently operating in the Smith's parking lot and also one at the Campos grocery store. Mr. Denton said that he is concerned about the magnitude of vendors moving into the west side neighborhoods and the City has done nothing to stop it. The neighborhood has also had to deal with catering trucks that may be illegal and he is also concerned about safety. The hearing was closed to public comment and the Commission Members discussed the application. Mr. Jonas reasoned that the proposed changes to the vending cart ordinance would allow the subject vending cart without a conditional use and this concerns him because of the testimony from the neighborhood. He noted that the proposed changes would not require insurance (Section 5.65.060) and he believes that carts should be required to have insurance. Mr. Wilde noted that the intent for some requirements were primarily addressing carts occupying public property. Ms. Coffey said that the Planning Commission may require insurance as a condition. The consensus of the Commission was the vending cart ordinance was originally adopted to attract and promote activity in the downtown area and to provide a supplementary service. They reasoned that a parking lot location may not address the intent of the ordinance. Also the request does not provide a supplementary service or even a necessary service because of other like stationary establishments in the surrounding area. The Commission also noted concerns about traffic congestion in the parking lot and safety issues. Motion for Case No. 410-489 Mr. Jonas made a motion for the Planning Commission to deny the request for the conditional use because it is not necessary and it does not contribute to the neighborhood. Ms. Short seconded the motion, all voted aye; the motion passed. The case brought up other concerns in regards to the proposed changes of the vending cart ordinance and the Commission discussed these concerns: The cart in case #410-489 would have been located across the street from other food establishments, but still within 300 feet. The Commission asked Staff to review this, the concerns of the Galvan Center and how the changes will effect vendors in regards to the Olympics. Mr. Wilde noted that Staff has considered a radius rather than a linear distance. Vending carts allowed on private property may present a unique unfairness in that vendors are not required to pay property taxes and the proposed ordinance may be authorizing unfair competition. Mr. Mariger suggested a bidding process. Enforcement on illegal carts, especially during the weekends, must be implemented. All carts should also be required to carry public liability insurance. Allowing vending carts as a permitted use in CB and CC zones may not be appropriate and should continue to be reviewed by the Commission especially when considering the concerns voiced by the neighborhood in case #410-489. Mr. Wilde explained that the directive of the administration was to liberate vending carts and it may be more appropriate in industrial park areas because of the pools of work force. The Planning Staff will re-evaluate zoning districts and may eliminate the CB and CC zones that fringe neighborhoods. SALT LAKE CITY PLANNING COMMISSION Minutes of the meeting held Thursday, October 5, 2000 451 South State Street, Room 126 Present from the Planning Commission were Chairperson Max Smith, Kay (berger) Arnold, Robert "Bip" Daniels, Jeff Jonas, Mary McDonald, and Judi Short. Andrea Barrows, Arla Funk and Craig Mariger were excused. Present from the Planning Staff were Planning Director Stephen Goldsmith, Deputy Planning Director Brent Wilde, Ray McCandless, Robert Glessner, Everett Joyce, Doug Dansie and Craig Hinckley. Petition No 400-00-41 by the Salt Lake City Community and Economic Development Department requesting amendments to the sidewalk vending ordinance to simplify vending in the public way, public parks and private property within Salt Lake City. Planning Commission discussion of this petition is continued from September 7, 2000. Mr. Smith then directed the Commission's attention to Petition No. 400-00-41. Mr. Dansie explained that he had attempted to integrate the Commission's requests from the previous discussion on this petition into his new report. It was difficult to show the original changes and the changes to the changes in a coherent manner. He summarized the Commission's requests and came up with the following changes to the petition: 1. The Administration may authorize up to four additional sites per cart (as opposed to former language that implied the administration must authorize four additional sites, regardless of other conditions). [5.65.050] 2. One permit is allowed per block face, including Main Street, which presently allows two per block face. [5.65.120.A] 3. Spacing from similar "fixed" uses is increased to 300 feet in all areas (since there will be only one site per block on Main Street, instead of two, the spacing will also be increased from 100 to 300 feet). Vendors have complained that the 300 foot spacing is too large (blocks are generally 660'). [5.65.120.D] 4. Gallivan Plaza (during events) was specifically listed as a site subject to spacing regulations. [5.65.120.D] 5. Two coolers and one water container were allowed, instead of three coolers. The Planning Commission may specifically wish to refine this criteria. The vendors argue that they need the coolers because the refrigerators on the carts are actually iceboxes, which are rendered ineffective during the heat of the summer months. [5.65.140.G] 6. Proposed language, which allows vendors outside the Expanded Central Business District, has been adjusted from the previous proposal. The current draft would NOT allow vendors in zoning districts that presently allow outdoor sales as a conditional use. It would limit vendors to sites of two acres or more within specific zoning districts that allow outdoor sales as a permitted use. The new draft ordinance proposes only the CC, CG, all Downtown zones, G-MU, Sugar House, and all Manufacturing zones allow vending on private property. A map has been included that illustrates zones where vending on private property could be allowed. Those zones that are presently within the attached draft are marked with an asterisk. Additional zoning districts are also illustrated for discussion purposes. The map includes only those parcels over 2 acres in size (consistent with the draft ordinance). The Planning Commission is being specifically asked to provide guidance as to which zoning districts they believe should be added or subtracted from the draft. The proposed language, as written, is more restrictive than the current administrative interpretation regarding vendors and outdoor sales. Vending on private property outside Downtown and Sugar House was not addressed within the original/existing ordinance. It has been allowed in zones that allow outdoor sales through administrative intpretation. The Planning Commission is also being asked to give specific policy direction to the entire concept of vendors on private property outside the originally defined sidewalk vending area. [5.65.220] 7. After the Planning commission public hearing, staff checked complaints of illegal vendors. It was discovered that some of the vending carts in question had actually received permits in zoning districts where outdoor sales is not otherwise permitted, without going through the conditional use process. The vendors were approved through the use of the "temporary use" ordinance. To rectify this problem, proposed modifications of the Temporary Use ordinance are included with this memo, Section 21A.42.020. It is recommended that the Planning Commission also include changes to this ordinance, along with the other ordinance modifications, in order to eliminate confusion and clarify that the Temporary use ordinance was not intended to allow vendors in zoning districts where they would otherwise not be allowed. Those vendors who have received permits via the Temporary use ordinance will be expected to move to another legal location at the expiration of their existing temporary permit. [21 A.42.020] 8. In anticipation of the Olympics, a moratorium on the issuance of vending permits within the geographic area of the Olympics Special Event application, has been included to eliminate potential conflicts The moratorium will expire in March 2002. [5.65.025] 9. Since the Vending Cart ordinance will now be cross-referenced to the zoning ordinance, a definition of "vending cart" is proposed to be added to the zoning ordinance definitions. [21A.62] 10. The issuance of insurance waiver was raised at the Planning Commission hearing. Section 5.65.220.A.1 eliminates the requirement for insurance on private property because the insurance required by this ordinance (5.65.060) is for City indemnification only. It is assumed that if a private property owner enters into a private contract with a vendor, they will have their own insurance demands and that the City is neither participatory nor liable for the private contract. This does not exempt the vendor from other health and licensing considerations. [5.65.220.A.1 & 5.65.060] Mr. Dansie said that in regards to provision number 3, a vendor would still be allowed to be closer than 300 feet if necessary, but would have to stay as far away as possible. Ms. Arnold asked why, since the vendors had asked for three coolers, did the Staff limit it to two coolers. Mr. Dansie explained that the vendors wanted four and the Commission had asked why any at all if the vendors had refrigerators. He tried to take a medium approach to satisfy both sides. Coolers are an issue because vendors are supposed to be mobile and therefore not have access to electricity. The more peripheral things a vendor has, the bigger the space it takes on the sidewalk and the harder it is to move. Mr. Dansie spent some time explaining provision number 6 and showed the Commission a map of all the zones which allow outdoor sales. If vendors are considered outdoor sales, and outdoor sales are allowed in a zone, the issue is then whether to allow vendors as outdoor sales on property as a conditional use in those zones which allow sales as a conditional use. He asked the Commission to specifically codify which zones the Commission wants to allow vending carts on private property. Mr. Wilde noted that East 4th South was in a CC zone, but because of the acreage limitation, there isn't a lot of opportunities if the Commission imposes a two acre amendment. Mr. Dansie said in response to the last discussion on this issue, he had added a caveat that limited vendors to only private property over two acres. The map showed only those Commercial zones that had private property over two acres. Mr. Daniels asked for an idea of the process used to check provision number 7, and those vendors who had received temporary permits. Mr. Dansie did not have all the information at that time, but said that Cheri Coffey had done this investigation for him. Mr. Dansie directed the Commission's attention to another map which showed the area the Olympics wanted to use for a special event area. Ms. Arnold asked when the Olympics moratorium started. Mr. Dansie said he had written the moratorium to start on the adoption of the proposed ordinance, to which Ms. Arnold objected because it didn't seem fair to restrict people until December of 2001. Mr. Dansie said he had done that because most of the spots in that area are not occupied now. Ms. McDonald asked if that meant there would be no vendors with hot chocolate or coffee during the Olympics. Mr. Dansie said the Olympics were basically requesting to take over that area and would have their own vendors. Ongoing street vendors would have the option of moving in after March of 2002. Ms. Arnold wanted to allow the vendors to come into the area if they wanted to until December of 2001. She did not want to implement something now for the Olympics. She suggested the moratorium become effective from January 1, 2002 to March 18, 2002. Mr. Dansie wanted to make the Commission aware that another issue has arisen about whether to have carts in the Gateway Plaza, similar to the carts seen inside the malls only bigger. They are called "Retail Merchandizing Units" which are portable but very large. At some point, the Commission will need to interpret whether the Gateway complex is a mall. These carts would not be vending carts and therefore could not be included in the proposed ordinance. Mr. Dansie also wanted to make the Commission aware that an issue from the Attorney's office had arisen regarding First Amendment issues. In expanding what the Commission allows on the carts, the vendors were allowed to sell daily newspapers and magazines. The vending ordinance required a fee determined by the administration or by policy, not ordinance. The Attorney's office had a problem about mixing a First Amendment speech thing and then not having definitively set fee schedules. The Attorney's office recommended that the Commission could either put hard guidelines and fees back in, or take out newspapers and dailies. Ms. Arnold asked for clarification on what the problem was with having a set fee. Mr. Dansie said it had been set at $175 and the administration wanted to have the flexibility of reducing the fees. If the fee is set by ordinance, there is no administrative authority to reduce or increase fees. Mr. Smith said the Commission could certainly request that the fees be consistent. The Commission turned their attention to provision number 6 on the Staff report regarding zoning. Mr. Dansie pointed out areas on the zoning map and their zoning requirements. For instance, Foothill Village is a CS zone which doesn't allow outdoor sales. However, they are an area that may want to include some vending carts within Foothill Village. Fred Meyer is also in CS zone. Mr. Jonas noted that fireworks could be sold at these places. Mr. Dansie said fireworks were covered under a separate ordinance. Mr. Jonas asked about sidewalk sales. Mr. Dansie said yes, Foothill Village could do sidewalk sales, but no vending carts according to the way the draft is written at this point. Conversely, CC zones allow outdoor sales, but there are areas around Redwood Road and North Temple that may not be appropriate to have vending carts. Ms. Arnold asked if there had been any problems with the area around Sears on 8th South and Main. Mr. Dansie said that Sears was in a D-2 zone and it is also within the sidewalk vending area. There had been some complaints from the Taco Time in the area and other businesses about the vending carts. Mr. Wilde asked if the Commission needed more clarification on the map of zones. The Commission asked Mr. Wilde to walk through the zones, starting from the middle of the map out. Mr. Dansie then explained each area on the map and their particular zoning issues. Ms. McDonald asked about the 300 foot spacing requirement and if it was possible in the Sugar House area. Mr. Dansie explained that there was a caveat to that requirement that said if there were three or four restaurants in a 660 foot block area which makes it impossible to meet the 300 foot requirement, there could still be a vending cart allowed (one per block). It would just have to stay as far away from the restaurants as physically possible. Research Park was singled out as a place that could use vending carts. CB and CS zones were not included in the drafts because most areas did not meet the two acre requirement. A few exceptions, such as Foothill Village, were mentioned. Mr. Jonas expressed his opinion that vending carts belong downtown on the streets where people are walking. Ms. McDonald made the argument that manufacturing areas could also use vending carts. Mr. Daniels asked about the issue of vendors setting up 200 feet from Taco Time selling tacos. Mr. Jonas said clearly the vending cart by Sears is closer than 200 feet. Mr. Dansie replied that was because the existing ordinance allowed 100 feet. Also, there is no spacing requirement between vendors, which if that were attempted would put the Commission in a position of micro-managing. Mr. Dansie suggested that if the Commission wanted to drop a zone, the CC zone would be the first one to look at. Mr. Jonas suggested the Commission look at restricting CB, CS and parts of CG zones for vending carts. He mentioned that Costco has done outside sales for a long time. Mr. Dansie explained that Costco was in a CG zone that allows outside sales. Mr. Jonas then brought up the issue of vending carts complying with health regulations, i.e., keeping food warm, using thermometers, and using coolers for drinks and ice. Ms. McDonald asked if the vendors could be required to conceal the coolers in the carts instead of setting them out on the sidewalks. Mr. Dansie said the ordinance did allow for increasing the size of the carts somewhat in the first draft. Mr. Smith expressed concern for vendors "spreading out" along the sidewalk with coolers card tables and chairs, etc. Ms. Arnold said coolers were a health and hygiene issue and she didn't think to limit the coolers to two made a whole lot of sense. Mr. Dansie said the Board of Health has said a minimum of two coolers was reasonable to store food and drinks in separate containers. Mr. Daniels said the Board of Health was advocating "two or more" coolers. He would prefer allowing 3 or 4 coolers. Mr. Smith believed the Commission needed to come up with a limit to keep the carts as vending carts and not something that can grow. A logical limit to him would be the ability to store food and drinks. Ms. Arnold said she wouldn't want to see the same ice used to cool the drinks being used in the drinks themselves. It would be appropriate for the Commission to decide on a size of coolers. Mr. Smith would like to see the Commission define what a reasonable size for a cooler is and then ask the Board of Health to sustain that decision. Ms. McDonald said the Commission should also consider the success of the vending cart that it has sufficient supplies on hand. Ms. Short suggested a "footprint" that would allow four small coolers or three medium sized coolers. Mr. Jonas asked if 50 square feet was the space a vendor could use. Mr. Dansie said it was 34 square feet, which is an increase from 24 square feet. Mr. Daniels asked if Mr. Smith was advocating that the City Health Officials or the Planning Commission should decide the size of the coolers. Mr. Smith said the Commission could define the sizes with Staffs assistance and ask the Health Department to sustain the decision. Mr. Daniels said he would trust the Staff to make the decision on the size of the coolers. Ms. Short clarified that the decision the Commission makes would have to go to the City Council. Mr. Smith wants the Commission to make it clear that it is a vending cart taking limited space. Mr. Dansie clarified that he would work with the Health Department to determine what the exact size and number of coolers should be. Mr. Jonas asked about the insurance waiver provision. He asked if a person operating a restaurant would have to show proof of insurance to get a business license. Mr. Dansie said the way the ordinance is written the insurance is to indemnify the City. If the cart is out on the public right-of-way then the City wants to avoid a lawsuit if someone should trip on a cooler or get sick. The waiver is in the ordinance because if the vendor is on private property, the insurance agreement becomes the negotiating point between the private property owner and the vending cart. Mr. Daniels expressed concern for the competitive nature of having a vending cart selling tacos in front of a Taco Time. The distance issue is not addressed in this instance because the vending cart is across the street so that the 300 foot spacing would not apply. Ms. Arnold said it was in the spirit of competition. Mr. Smith then asked if there were any Chairs from Community Councils present. Samantha Francis, Chairperson of the People's Freeway Community Council, addressed the Commission. Ms. Francis expressed concern that originally outside sales was proposed for the downtown area, not down to 8th South and Washington Street (240 West). The vendor in that area is doing a lot of littering and promoting loitering in the community. There is a lot of concern as well about the food that is coming out of the vendor carts — gloves aren't being used, etc. Ms. Francis did not want to see the vending carts expanding out of the downtown into residential areas. Mr. Jay Ingleby addressed the Commission next. He expressed his concern over the locations of the carts, noting again that they were originally set for the downtown area. He talked about his concern over health issues, such as lack of liability insurance, food handlers permits and workers not wearing gloves or hair nets, and inadequate restroom and hand washing facilities. He felt that inspecting the vending carts only twice a year was not enough, and that the carts should have to pay more than $175.00 in fees every year. He also expressed concern about the spacing requirements for a cart by a restaurant selling like foods. He then passed around several photographs of vending carts and owners, showing some evidence of violations of health codes and City policies. Ms. Arnold informed Mr. Ingleby that restaurants are not inspected on a monthly basis in Salt Lake City. Mr. Jonas asked if there was a consensus among the Commission members that all the zones on Mr. Dansie's map were acceptable for vending carts except CB, CC, CG and CS zones. This would allow outside sales in all downtown zones, business parks, Sugar House, Gateway, light and heavy manufacturing and Research Park. Ms. Arnold said that CG zone would put them very close to Gateway. Mr. Jonas modified the CG zone to say "only General Commercial between North Temple and 9th South and 6th West and 3rd East." Mr. Dansie explained that the ordinance basically said that already. Mr. Wilde clarified that Mr. Jonas was asking to eliminate the CC and the CG zones, with the exception of the downtown corridor to 9th South. Mr. Smith wanted to exclude neighborhoods with residential houses. Mr. Wilde said that one of the things to consider if the Commission limits it to a 2 acre minimum was that a vending cart would only be allowed on a large parcel. Mr. Dansie said one way to get around the residential home problem is to insert wording such as "on non-residentially zoned property within the expanded Central Business" area be added to the section allowing vendors on private property. That would take Washington and Jefferson streets out of the picture. Mr. Jonas said another issue was to come up with wording about the coolers. The Commission suggests 2 to 4 coolers depending on Health Department and Staff recommendations. The Commission also needs to address the issue of the moratorium on the Olympics and when it will begin and end. The Commission decided to use the dates of January 31 to April 1 of 2002 for the beginning and ending of the moratorium, unless the City has some other agreement with the Olympic Committee. Mr. Dansie reminded the Commission that the Staff had inserted new language in the ordinance at the September 7, 2000 meeting to say that if the City streets are being closed for a special event, the City can ask the vendors to move outside the boundary. Mr. Smith asked if a tarp on a vending cart is illegal. Mr. Dansie said the Staff had tried to put in design requirements for a cart, but that there was only so much they could do to codify good taste. Motion for Petition No. 400-00-41: Mr. Jonas made the motion that the Planning Commission forward to the City Council a positive recommendation towards the resolution of Petition 400-00-41 by the Salt Lake City Community and Economic Development Department, subject to the condition that said recommendation include: 1. Prohibit vending carts in the CB, CC, CG and CS zones, allowing vendor carts in all downtown zones, business parks, Sugar House, Gateway, light and heavy manufacturing and Research Park. Vendors in the CG zone will be prohibited with the exception of the downtown corridor from North Temple to 900 South and 600 West to 200 East, and wording to the effect that vendors may sell only "on non-residentially zoned property within the expanded Central Business" area will be added to the appropriate section. 2. That the Staff be directed to work with the Health Department to determine an appropriate number of coolers and their size for health and safety. 3. That the spacing be increased to 300 feet as specified in the Staff report. 4. That one permit be allowed per block face, including Main Street. 5. That the Gallivan Plaza (during events) be specifically listed as a site subject to spacing regulations. 6. That in anticipation of the Olympics the moratorium on the issuance of vending permits within the geographic area of the Olympic Special Event application go into effect January 31 of 2002 and expire in April 1 of 2002, unless there is already an agreement between the City and SLOC in conflict with those dates. 7. That the definition of "vending cart" be added to the zoning ordinance definitions. 8. That the City may authorize up to an additional 4 sites for each licensed cart. 9. That the Temporary use ordinance be clarified to not allow vendors in zoning districts where they would otherwise not be allowed. Ms. Short seconded the motion. Ms. Arnold, Ms. McDonald, Mr. Jonas, Ms. Short, and Mr. Daniels voted "Aye". Mr. Smith, as Chair, did not vote. Mr. Mariger, Ms. Barrows and Ms. Funk were not present. Ordinance and proposed new alterations -X niarr "1 , SALT LAKE CITY ORDIANCE No. of 2000 (Amending the Salt Lake City Code regarding Sidewalk Vending Carts) AN ORDINANCE AMENDING THE SALT LAKE CITY CODE REGARDING SIDEWALK VENDING CARTS, PURSUANT TO PETITION NO. 400-00-41. WHEREAS, the Salt Lake City Code contains regulations concerning sidewalk vending carts; and WHEREAS, it is proposed that the regulations regarding such vending carts be modified to better reflect the needs of the City and of such venders; and WHEREAS, the City Council of Salt Lake City, Utah, finds after public hearings before its own body and before the Planning Commission, that portions of the Salt Lake City Code which relate to sidewalk vending carts should be amended and that such amendments are in the best interest of the City; NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Chapter 5.65 of the Salt Lake City Code shall be and hereby is amended to read as follows: Chapter 5.65 SIDEWALK VENDING CARTS 5.65.010 Definitions: For the purpose of this Chapter,the following words shall have the meanings as defined in this Section: A. "Expanded Central Business District" means the following streets within the City and all areas bounded within such streets: 1. North Temple Street on the north,from FeurthSixth West Street to Third West Street; 2. Third West Street on the east, from North Temple Street to South Temple Street; 3. South Temple Street on the north, from Third West Street to Second East Street, on the south side of South Temple Street only; 4.Second East Street on the east from South Temple Street to Sixth South Street; 5.Sixth South Street on the south from Second East Street to State Street; 6.State Street on the east from Sixth South Street to Ninth South Street; 7.Ninth South Street on the south from State Street to FoorthSixth West Street; 8.FourthSixth West Street on the west from Ninth South Street to North Temple Street. B. "Permit operating a ea-,_means a portion of a sidewalk which has been designated by the City for the c nduct of business. C. "Sidewalk vending cart"means a mobile device or push cart meeting all of the requirements of this Chapter for the conducting of business in a specified permit operating area approved by the City. D. "Sidewalk vendor"means a person meeting all of the requirements of this Chapter and being issued the appropriate business license and regulatory permit to conduct business in a specified permit operating area by the use of a sidewalk vending cart. E--For-pu+-ponesofthis-(ordinance a"single product type"means-one.hut-not-mere-than one;of the lollowirtg: -Teo d--1er-imme-chate-eonsampt+en-inc-1-a liu erages:-or lntlated-baflnens-a+3dk>r•fresh-ctH-Power+ FL."Special event"means the Days of'47 Parade,Christmas Parade,children's parades or other special events which the Mayor shall so designate. E.F."Sugar House Business District"means those streets within Salt Lake City as follows: 1.Twenty First South Street from Ninth East Street to Thirteenth East Street; 2.Highland Drive Street between Ramona Avenue and the 1-80 Freeway; 3.Wilmington Avenue from Highland Drive to Thirteenth East Street. 5.65.020 Sidewalk Vending Allowed: Vendors of products specified in this Chapter may conduct business by use of sidewalk vending carts within the Expanded Central Business District,the Sugar House Business District,city parks P onee-nark Din..eea..P -'- and Washington Square,in accordance with the provisions of this Chapter. It shall be unlawful for any person to sell any goods or services,for profit,on any sidewalk within the City,except as provided by this Chapter or by subsection 5.64.010C of this Division pertaining to sidewalk sales by abutting property owners or possessors. The provisions of this Chapter notwithstanding, nothing in this Chapter shall pertain to newsracks,telephone or telex booths or stands, post boxes,nor to the sale by nonprofit organizations of merchandise which is inextricably intertwined with a statement carrying a religious,political,philosophical or ideological message.(Ord.12-91 §1,1991) 5.65.025 Moratorium on Vending Carts No permits for vending carts within the public way will be issued within the area bounded by North Temple to 200 South and West Temple to 500 West,or from 300 to 400 West and 200 to 400 South,or from 300 to 400 West and North Temple to 300 North,during the time period of January 31,2002 to March 31,2002. Vending on 2 private t)ropertN, consistent IN ith Section 5.65.220, is not included NA ithin this moratorium. 5.65.030 Regulatory Permit, Lease Or Revocable Land Use Permit, And Fees Required: No person shall conduct business on any City sidewalk, without first obtaining a valid base business Iicense and entering into a lease or revocable land use permit for the use of City property, and paying the required fees. In addition to the base business license fee, the annual lease-or-revocable land use permit payment shall be-one-hundred seventy fiYe dollars ($175.00) determined by administrative policy. 5.65.040 Application For Regulatory Permit: Application for a regulatory permit to conduct business at a particular permit operating area shall be made with the permits and licensing office on forms prepared by the business license supervisor. Such application shall require the following information: A. The correct legal name and present residence address and telephone number of the applicant. B. The expiration date of applicant's base business license, if any. C. Type of product to be sold. Individual-applications-shall-be aeee-pted--lor--a single product type oni ritttn ironfication shall be provided-to-the it, office of any proposed change of product type. D. A certified copy of all permits required by State or local health authorities. E. A signed statement that the permittee shall hold the City and its officers and employees harmless from any and all liability and shall indemnify the City and its officers and employees for any claims for damage to property or injury to persons arising from any activity carried on under the terms of the permit. F. A description of the means to be used in conducting business including, but not limited to, a description of any mobile container or device, to be used for transport or to display products or services to be offered for sale. The description of the container or device shall-may-be in the form of detailed scale drawings of the device to be used, I material specifications, and in isometric drawing in color of at least two (2) views showing all four(4) sides of the vending device and any logos, printing or signs which will be incorporated and utilized in the color scheme. Said description sltl-lmav include any additional items (e.g., color and material samples, layouts of signage and graphics, or photographs)which may reasonably be necessary to clearly visualize the proposed design. G. The proposed permit operating area for conducting applicant's business, including a diagram showing the proposed area in proximity to nearby streets, intersections and property owners and adjacent ground level tenants. 5.65.050 Separate Applications: A separate application shall be required for each mobile container or device to be used for transportation or display. Individual applications shall be accepted for one primary permit operating area-enly. In -order to allow a single cart mobility to coincide with daily changes in activity. the City may authorize, per administrative policy, up to four additional secondary locations, based upon availability after awarding primary locations. 3 \lultiple operation areas ma\ not be contiluouc. _\ separate revocable permit must accompan\ each operation area. No application shall be accepted for a permit operating area for a term of which a current sidewalk vendor permit has been issued, remains unexpired or otherwise is not terminated or for which an application is pending. The permit operating area may be changed upon written application therefertherefore accompanied by an additional application fee and upon approval of the planning official. 5.65.060 Insurance required. No sidewalk vending permit shall be issued or continued in operation, unless there is on file with the city recorder a certificate of insurance executed by an insurance company or association authorized to transact business in this state, approved as to form by the city attorney, that there is in full force and effect public liability, food products liability and property damage insurance covering the operation of applicant's business operations with minimum limits of two hundred fifty thousand dollars/five hundred thousand dollars for personal injury and one hundred thousand dollars for property damage or such greater amounts as set forth in Section 63-30-34, Utah Code Annotated, 1953, as amended, or its successor. A current certificate of insurance shall be kept on file with the city's recorder at all times that a sidewalk vending permit is held verifying such continuing coverage and naming the city as an additional insured. The certificate shall contain a statement that the city will be given written notification at least thirty days prior to cancellation or material change in the coverage without reservation of non-liability for failure to so notify the city. Cancellation shall constitute grounds for revocation of the sidewalk vending permit issued hereunder unless another insurance policy complying herewith is provided and is in effect at the time of the cancellation/termination. 5.65.070 License and permit-Issuance conditions. A. The city business license supervisor shall approve the issuance of a business license and a regulatory permit to the applicant, unless the supervisor finds one or more of the following: I. The applicant has failed to provide the information on the application required by this chapter; 2. The applicant has falsely answered a material question or request for information as authorized by this chapter; 3. The applicant has failed to meet any of the provisions of this chapter; 4. There are grounds for denial as set forth in Section 5.02.250, or its successor section,or in any other city ordinance or state or federal law or regulation. B. Prior to December 1st of each year,the zoning administrator,in consultation with the city's planning division_, shallmay set a maximum on the number of permits to be issued for the following year based upon the success of the vending program in prior years, including a review of(1)the percentage of applications received by the city which ultimately resulted in permits and business licenses actually obtained, (2)the percentage of licensed vendors which ultimately commenced operations at their permit operating areas, (3)the percentage of vendors which commenced operations and subsequently ceased operations because of market conditions. The city will issue permits first to vendors seeking renewal of existing permits. 4 Additional permits shall be issued up to the maximum number set by the city. The additional permits may be awarded by chance drawing. if the number of'applications _ warrant and it is deemed necessary by the /onina Administrator. C. Applications for permit:: b r a particular operating area-T • •;;,;T�;;: the following .I-anttarv--I-st sl}all ;oini ide—wit-h-the--renew tl-ol=the--busiriivss-livens App -eat+ons for license renewals and appropriate fees shall he filed with the city by • their- ttr-rent-E mit-opefat -area-mutt--deeIare-suE=li-intentio rit-ing-to-the-e-i with tlt license but who choose to move to another location shall be awarded by chance druwint_,-to-be-held-on-or-befor Januai-y=-}-0-th.--Applieatio1}s-IeFnewpermits-shay--be accepted the cit\ beginning Decembe-r I. . . • • ,,. een • ving if necessary. at-a--date and time to-be determined-b.Hfie zonittinistrator,but-not-late-Fthan i ti n , seeking ne ,,,. • ,e completed prior to the drawing for new permits. If the fflaNt111-11i 3--miff -bef--Set-by-the-eity--s-not-Fn t;-an =-pt rinit-opera ttng-areas-availabte-a ter said draw ings sh-a4-1 be rde,a ,* fl ., a v •' r f tils; to apply for renewal l December—j-lit, he=shf3-will4 -eonside}retd-en-u first come.—fir-st-seFved--ba4:;--ter permit olx • • be rejected. 5.65.080 Form and conditions of regulatory permit. The regulatory permit issued shall be on a form deemed suitable by the business license supervisor. In addition to naming the permittee, the permit shall contain the following conditions: A. Each permit issued shall expire at midnight on December 31st of the year so issued. B. The permit issued shall be personal only and not transferable in any manner. C. The permit shall be valid only when used at the permit operating area designated on the permit. D. The permit shall be openly displayed on the permitted vending cart during all times of operation. E. The permit is valid for one cart only. F. The permit operating area may be changed, either temporarily or permanently, by written notice from the traffic engineer to permittee, in the event of construction or remodeling of any nearby structure or of a force majeure which, in the opinion of the traffic engineer, renders permittee's continued operation at the original permit operating area unsafe for any person. The term "force majeure," as used in this section, means acts of God, acts of public enemy, blockades,wars, insurrections or riots, epidemics, landslides, earthquakes, fires, storms, floods or washouts, civil disturbances, or explosions. G. The permit is subject to the further restrictions of this chapter. H. The permit as it applies to a given permit operating area may be suspended by the mayor for periods of not to exceed ten days for special events, as defined by Section 5.65.010. 5 5.65.090 Use, site and design review required. Prior to issuance of a sidewalk vending regulatory permit, all applications therefortherefore shall be reviewed and approved by the planning official to assure the proposed vendor meets the use and design criteria and by the transportation engineer to assure compliance with the location criteria as set forth in this chapter. 5.65.100 Items for sale. A. Items approved for sale from sidewalk vending carts shall be limited to the following: 1. Food for immediate consumption, including beverages; 2. Inflated balloons; aild 3. Fresh cut flowers.: and 4. l?ails or monthly news publications. B. The performance of personal services for sale shall not be provided from a sidewalk vending cart except as such may be necessary in connection with the sale of items allowed for sale under this section. 5.65.110 Location review. A. The permit operating area must be located in non-residentially zoned areas within the Expanded Central Business District, the Sugar House Business District, city parks , or Washington Square. B. The use of the permit operating area for sidewalk vending must be compatible with the free flow of pedestrian and other traffic and with public safety. In making such determination, the traffic engineer shall consider the width of sidewalk, the presence of bus stops, truck loading zones, taxi stands or hotel zones, the proximity of entrances to nearby business establishments, and the proximity and location of existing street furniture, including but not limited to: signposts, lamp posts, fire hydrants, parking meters, bus shelters, benches,phone booths, street trees and newsstands. C. In the event the applicant is dissatisfied with the traffic engineer's decision regarding a certain application,he/she may appeal the decision by filing a written request with the business license supervisor for a hearing before a hearing examiner appointed by the mayor in accordance with the procedures set forth in chapter 5.02, or its successor chapter. 5.65.120 Location requirements. Ye.Ah A. No more than one vending permit operating area shall be allowed f each thfe (-lc q � N Scutt,. O ll Vl ther blocks, � t shall be allowed per block face except that if the 1 block face exceeds s hundre six et, one permit shall be allowed for each additional six hundred sixty feet of block frontage. B. The number of vendors in city parks and Washington Square shall be determined by administrative policy. z,t mil e l Di 6 c . BC. Vending carts may be located on private plazas and private open space on non- _ residentially zoned property within the expanded central business district. No more than one sidewalk vending cart shall be allowed per every forty thousand square feet of private plazas and private open space. At least one vending permit may be awarded for any private open space larger than twenty-four square feet. Vending carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030 or its successor. Use of private property by sidewalk vendors hereunder shall be arranged with the real property owner. Cll. No person may conduct business from a sidewalk vending cart in any of the following places: 1. Within ten feet of the intersection of the sidewalk with any other sidewalk or mid- block crosswalk, except that the traffic engineer may waive this restriction in writing for any location upon finding that construction of extra-width sidewalks makes such use consistent with the standards established by Sections 5.65.110; 2. Any location which would reduce the clear, continuous sidewalk width to less than four feet; 3. Within five feet of an imaginary perpendicular line running from any building entrance or doorway to the curb line; 4. Within five feet of any handicapped parking space, or access ramp; 5. Within ten feet of any bus stop; or 6. Within five feet of any office or display window reAviryll E. D. No food vendor-shall operate within -me hundred 300 eet on the same linear 40 t1o1 block face of a door to a restauran City authorized , pecial Event selling food S Gh� (outside public right-of-wav), _r livan Plaza during events} r ruit or vegetable mar et, with direct s to the sidewalk. o flower or balloon vendor shall operate within Lb hundred 300 eet on the same linear block face of a door to a flower or ,,` Ow balloons or City authorized Special Event se ling flowers/balloons outside ublic. O A t rite tt-ot-way), Gallivan Plaza "durin J events with direct access to the sidewalk. No CCt, c newspaper magazine vendor shall operate within 300 feet on the same linear block face of a door to a news a er/ma azine sho r City authorized S ecial Event selling e l -Jew.papers "outside public rig it-of-way), Gallivan Plaza(during events . 64'lloa.. wi irect access to the sidewalk. Flap co ,Q In the event of multiple entries/spacing requirements. the above requirement does not .5 lat invalidate a legally authorized vending permit area. The vendor will still be authorized to operate at a maximum available spacing from all affected entries The above requirement may be waived if the application is submitted with the written consent of the proprietor of such restaurant or shop. The consent shall be on forms deemed appropriate by the license supervisor. Payment of any consideration to a proprietor of such restaurant or shop or receipt of such consideration by a proprietor for such written consent is prohibited. Such waiver shall not except the permittee from compliance with the other location and distance restrictions of this chapter. 5.65.130 Design review. 7 The planning official shall examine the sidewalk vending application to determine if the proposed design meets the design requirements of Section 5.65.140 applying current urban planning standards. In addition, the planning official, shall consider whether or not the proposed design, materials, colors, signage and graphics are compatible with the immediate surroundings of the proposed installation. 5.65.140 Design requirements. A. The area occupied by the mobile device or pushcart, together with the operator and any trash receptacle, cooler or chair, shall not exceed twentythirty-four square feet of sidewalk space. B. The length of the mobile device or push cart shall not exceed six eight-feet excluding including-hitch; the hitch shall not extend the length of the cart more than one foot. C. The height of the mobile device or push cart, excluding canopies, umbrellas, or transparent enclosures, shall not exceed five feet. D. Umbrellas or canopies shall be a minimum of seven feet above the sidewalk if they extend beyond the edge of the cart. E. Umbrellas or canopies shall not exceed lorty sixty_square feet in area. F. The mobile device or push cart shall be on wheels and of sufficiently lightweight construction that it can be moved from place to place by one adult person without any auxiliary power. The device or cart shall not be motorized so as to move on its own power. G. The vendor shall be limited to enethree coolers (slacked), one water container, one trash receptacle and one chair external to the cart. Coolers shall not exceed 3.75 square feet each in size. 5.65.150 Fire marshal inspection. Prior to the issuance of any permit, the fire marshal shall inspect and approve any mobile device or push cart containing cooking or heating equipment to assure the conformance of any such equipment with the provisions of the city fire code. 5.65.160 Approved kitchen. If the vending cart includes an area for food preparation and/or sale, it must be approved by the Salt Lake City-County department of health. 5.65.170 Operational regulations. A. All persons operating under a sidewalk vendor regulatory permit issued by the city shall comply with the following regulations: 1. Display in a prominent and visible manner the business license issued by the city under the provisions of this chapter and conspicuously post the price of all items sold; 2. Pick up any paper, cardboard, wood or plastic containers,wrappers, or any litter in any form which is deposited by any person on the sidewalk within twenty-five feet of the place of conducting business; and clean up all residue from any liquids spilled upon the sidewalk within said twenty-five-foot area. Each person conducting business on a public sidewalk under the provisions of this chapter shall carry a suitable container for the placement of such litter by customers or other persons; _ 8 3. Obey any lawful order of a police officer to move temporarily to a different location to avoid congestion or obstruction of the sidewalk or to remove the vending cart entirely from the sidewalk, if necessary, to avoid such congestion or obstruction; 4. Conduct no sidewalk vendor business at a location other than that designated on his/her permit; 5. Make no loud or unreasonable noise of any kind by vocalization or otherwise for the purpose of advertising or attracting attention to his/her wares; 6. Except for the day of the Days of'47 parade, leave no permitted cart or device unattended on a sidewalk nor remain on the sidewalk between midnight and six a.m. of any twenty-four-hour period; 7. Conduct no business in violation of the provisions of any ordinance or mayor's executive order providing for a special event, as defined by Section 5.65.010. 13 �asonnal •n`gcs in product types shall be acceptable as long as not more than one single-product type-is-sold-at-the-same-time, (-1,eed and n f od ate ... s i? ...,t ? ended f , ,h e same cart. 1\llll 111 5.65.180 Special events. The restrictions of this chapter notwithstanding, nothing herein shall prohibit the city from authorizing vendors, other than those licensed under this chapter, to conduct concurrent sidewalk vending operations within the expanded central business district, or such other areas as the city may deem appropriate, during special events (special event vendors). The special event vendors shall not be governed by this chapter, but shall be governed by such other ordinance, city policy, or executive order as may be applicable. However, as long as the public right-of-way remains open to the general public. such authorization of special event vendors shall not require removal of a permittee under this chapter from operating within his/her designated permit operating area or a mutually acceptable adjacent alternative location during such special event, unless otherwise provided under the city's ordinances. if the City is closing a public right-of-way to general access, either partially or fully, in order to accommodate a special event, the City_ may relocate the vendor to an adjacent location outside the special event boundary, subject to the spacing requirements of Section 5.65.120.D. 5.65.190 Denial, suspension or revocation of business license and regulatory permit. A. The business license supervisor may revoke or suspend the business license and sidewalk vendor regulatory permit, or deny renewal thereof, of any person to conduct business on the sidewalks of Salt Lake City if he/she finds: 1. That such person has violated or failed to meet any of the provisions of this chapter; 2. That there are grounds for denial, suspension or revocation as set forth in Section 5.02.250, or its successor section, or in any other city ordinance or state or federal law or regulation. 3. Any required Iicense or permit has been suspended, revoked or canceled; or 4. The permittee does not have a currently effective insurance policy in the minimum amount provided in this chapter; or 5. That the permittee has abandoned the use of the permit operating area for the conducting of business. The failure of a permittee to vend from a vending cart within 9 the permittee's permit operating area for thirty continuous calendar days or more, except during the period December, January, and February, shall constitute abandonment. B. Upon denial, suspension or revocation,the business license supervisor shall give notice of such action to the permit holder or applicant, as the case may be, in writing stating the action he/she has taken and the reasons therefertherefore. Such notice shall contain the further provision that it shall become final and effective within ten days, unless such action is the result of a failure of the permittee to maintain liability insurance as required by this chapter, or is the result of a threat to the public health, safety or welfare in which case the action shall be effective immediately upon issuance of such notice. Any person receiving such notice, other than a notice effective upon issuance, shall have ten days from the date of receipt thereof to file a written request with the license supervisor for a hearing thereon before a hearing examiner appointed by the mayor. Upon receipt of such request the license supervisor shall schedule a hearing in accordance with the procedures set forth in Chapter 5.02, or its successor chapter. If the notice of denial, suspension or revocation is effective upon issuance thereof, as provided in this section, a hearing shall be held within five business days of the date of issuance without any requirement of a request for such hearing from the permit holder. 5.65.200 Penalty for violation. Any person convicted of violating any of the provisions of this chapter shall be guilty of a class B misdemeanor, and shall be punished as provided by Section 1.12.050 of this code, or its successor section. 5.65.210 Violation a nuisance-Summary abatement. The placement of any cart or device on any sidewalk in violation of the provisions of this chapter is declared to be a public nuisance. The planning official may, as provided by law, cause the removal of any cart or device found on a sidewalk in violation of this chapter and is authorized to store such cart or device until the owner thereof shall redeem it by paying the removal and storage charges. 5.65.220. Vending Carts on Private Property Outside the Expanded Central Business District. A. Permits for vending carts on private property outside the expanded Central Business District may be approved pursuant to the applicable district regulations in Chapter 21A,Zoning,where they conform to the requirements below. 1. Vending Carts on private property are subject to all of the requirements of this chapter except for the requirement of a land lease with the city under Section 5.65.030; the requirement of a signed statement of liability and indemnity with the city under Section 5.65.040.E; the requirement of insurance under Section 5.65.060; the requirement of location review under Section 5.65.110; the suspension or revocation of business license due to a lack of use under Section 5.65.190 A. 5 and geographic location limits under Section 5.65.020; 10 2. Use of private property by vendors shall be arranged with the real property owner and proof of such property owner authorization shall he required prior to the issuance of a business license; 3. Allowed only in zoning districts that permit vending carts as a permitted use, as defined by individual zoning district land use tables; 4. Allowed only on sites 2 acres or larger and only as a secondary use to another primary commercial, office or industrial use. Vending carts on vacant or residentially used lots, regardless of zoning district, is prohibited; 5. No vending cart or device shall occupy required parking stalls; 6. No vending cart or device shall interfere with the internal parking lot circulation; and 7. Vending carts adjacent to residential zones shall be subject to site review to insure compatibility. SECTION 2. Chapter 21 A.42.020 of the Salt Lake City Code shall be and hereby is amended to read as follows: 21A.42.020 Applicability: This Chapter is intended to regulate all temporary uses conducted on private property. Temporary Uses of vending carts shall only be allowed in zones where vending carts = are allowed as a permitted use and only where the vending carts are associated with an Outdoor Sales Event or Special Event. Art festivals, neighborhood fairs and other similar activities, authorized by other City regulations to operate on public property or within the public way, are not subject to the provisions of this Chapter. SECTION 3. The table located at Section 21A.26.080 of the Salt Lake City Code, entitled "Table of Permitted and Conditional Uses for Commercial Districts," shall be and hereby is amended to read as set forth on Exhibit"A"attached hereto. SECTION 4. The table located at Section 21A.28.040 of the Salt Lake City Code, entitled"Table of Permitted and Conditional Uses for Manufacturing Districts," shall be and hereby is amended to read as set forth on Exhibit"B"attached hereto. SECTION 5. The table located at Section 21A.30.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Downtown Districts," shall be and hereby is amended to read as set forth on Exhibit "C" attached hereto. 11 SECTION 6. The table located at Section 21A.31.050 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Gateway Districts," shall be and hereby is amended to read as set forth on Exhibit "D" attached hereto. SECTION 7. The table located at Section 21A.32.140 of the Salt Lake City Code entitled "Table of Permitted and Conditional Uses for Special Purpose Districts," shall be and hereby is amended to read as set forth on Exhibit "E" attached hereto. SECTION 8. Section 21A.62.040 of the Salt Lake City Code shall be and hereby is amended to include the following definition in alphabetical order: "Vending Cart" includes any non-motorized mobile device or push cart from which limited types of products, as listed in Chapter 5.65 of this Title, are sold or offered for sale directly to any consumer,where the point of sale is conducted at the cart,where the duration of the sale is longer than 14 days and where the vending cart meets the requirements of Chapter 5.65 for the conducting of business in a specified permit operating area approved by the City. SECTION 9. Effective Date. This Ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah, this day of , 2000. CHAIRPERSON ATTEST AND COUNTERSIGN: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on 12 Mayor's Action: Approved. Vetoed. MAYOR CHIEF DEPUTY CITY RECORDER (SEAL) Bill No. of 2000. Published: G:\Ordina00\Amending Code re vending carts-Oct 26,2000.doc 13 Exhibit A 21A.26.080 Table Of Permitted And Conditional Uses For Commercial Districts: IP LEGEND PERMITTED AND CONDITIONAL c=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN I CO I CC CSI I CSIIBD1 I CG Residential Assisted living center,large P ( P P Assisted living center,small P P 1' Dwelling units,including multi-family dwellings,above or below P P P P P I' first story office,retail and commercial uses or on the first story,as defined in the Uniform Building Code,where the unit is not located adjacent to the street frontage Group home,large(see Section 21 A.36.070 of this Title) P P Group home,small(see Section 21 A.36.070 of this Title) P P Halfway homes(see Section 21 A.36.1 10 of this Title) P Living quarters for caretaker or security guard P P P P P P Multi-family residential P Nursing home P P P Residential substance abuse treatment home,large(sec Section C P 21 A.36.100 of this Title) Residential substance abuse treatment home,small(see Section C P 2I A.36.100 of this Title) Transitional treatment home,large(see Section 21 A.36.090 of this C P Title) Transitional treatment home,small(see Section 21A36.090 of this P P Title) Transitional victim home,large(sec Section 21A.36.080 of this P P Title) Transitional victim home,small(see Section 21 A.36.080 of this P P Title) Office And Related Uses Financial institution,with drive-through facilities P P P P P Financial institutions,without drive-through facilities P P P P P P Medical and dental clinics P P P P P P Offices P P P P P P Veterinary offices,operating entirely within an enclosed building P P P P P and keeping animals overnight only for treatment purposes Retail Sales And Services Auction sales P P Automobile repair,major P C P Automobile repair,minor C P P P P P Automobile sales/rental and service P P - Boat/recreational vehicle sales and service P P Car wash as accessory use to gas station or convenience store that P P P P P sells gas Car wash,with or without gasoline sales P P P Department stores P P Equipment rental,indoor and outdoor P P LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CS 1 CSHBD' CG Furniture repair shop P P P . P P Gas station(may include accessory convenience retail and/or"minor P P P P P P repairs"as defined in Part VI,Chapter 2I A.62 of this Title) Health and fitness facility P P P P C Liquor store C C C C C Manufactured/mobile home sales and service P Pawnshop P Restaurant,with drive-through facilities C P p P P p Restaurants,without drive-through facilities P P P P P P Retail goods establishments with drive-through facilities C P P P P P Retail goods establishments without drive-through facilities P P P P P P Retail services establishments with drive-through facilities C P P P P P Retail services establishments without drive-through facilities P P P P p P Truck repair,large P Truck sales and rental,large P P Upholstery shop P P P P P Value retail/membership wholesale P Institutional Uses(sites<2 acres) Adult daycare center P p P P P P Child daycare center p P P p p P Community recreation centers on lots less than 4 acres in size P P P p p P Government facilities(excluding those of an industrial nature and P P P p P P prisons) Museum P P P P Music conservatory P P P P Places of worship on lots less than 4 acres in size P P P P P Schools,professional and vocational P P P P P P Commercial And Manufacturing Bakery,commercial P Blacksmith shop P Blood donation centers,commercial and not accessory to a hospital C P or medical clinic Cabinet and woodworking mills P Commercial laundries,linen service and dry cleaning P Industrial assembly P Laboratory;medical,dental optical P P P P Laboratory;testing C C P Mini-warehouse P P Motion picture studio P P P Photo finishing lab P p P P Plant and garden shop,with outdoor retail sales area C C C C C P Sign painting/fabrication P Warehouse P P Welding shop P LEGEND t PERMITTED AND CONDITIONAL c=Conditional Use USES,BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Wholesale distributors I P P Recreation,Cultural And Entertainment Amusement park P P Art gallery P P P P P P Art studio P P P P P P Commercial indoor recreation P P P P Commercial outdoor recreation C P Commercial video arcade P P P Dance studio P P P P P P live performance theaters P P P e Miniature golf P P P Movie theaters P P P T Natural open space and conservation areas C C C C C C Parks and playgrounds,public and private,on lots less than 4 acres P P P P P P n size Pedestrian pathways,trails,and greenways I' P P P P P —..__—_—._.—___.— Private club C C P I' P Sexually oriented businesses P Squares and plazas on lots less than 4 acres in size I' P P P P P Tavern/lounge/brew pub;2,500 square feet or less in floor area P P P P Tavern/lounge/brew pub;more than 2,500 square feet in floor area C C P P Miscellaneous Accessory uses,except those that are specifically regulated in this P P P P P P Chapter,or elsewhere in this Title Ambulance services,dispatching,staging and maintenance P P P P conducted entirely within an enclosed building Ambulance services,dispatching,staging and maintenance utilizing P outdoor operations Auditorium --- — -- P P P P Auto salvage(indoor) P Bed and breakfast P P P P P P Bed and breakfast inn P P P P P P Bed and breakfast manor C' C' P P P Bus line terminals P P Bus line yards and repair facilities P Commercial parking garage or lot C P P Communication towers P P P P P Communication towers,exceeding the maximum building height C C C C C Contractor's yard/office(including outdoor storage) C P Furnaces'market C C P Flea market(indoor) P P P P Flea market(outdoor) P Funeral home P P P P Homeless shelter C LEGEND PERMITTED AND CONDITIONAL III C=Conditional Use USES, BY DISTRICT COMMERCIAL P=Permitted Use DISTRICTS Use CN CB CC CSI CSHBD' CG Hotel or motel P P P Kennels P Limousine service,utilizing 4 or more limousines P Limousine service,utilizing not more than 3 limousines C C P Micro brewery p Park and ride lots C C C P P Park and ride,parking shared with existing use P P P P P Pet cemeteries4 P Off-site parking;as per Chapter 2I A.44 of this Title P C P Outdoor sales and display C P C P P Outdoor storage C P Outdoor storage,public C P Precision equipment repair shops p P Public/private utility buildings and structures C C P P C P Public/private utility transmission wires,lines,pipes and poles2 P P P P P P Radio,television station C P P Recreational vehicle park(minimum 1 acre) C Recycling collection station P P p P P p Reverse vending machines P P p P P p Taxicab facilities,dispatching,staging and maintenance P Temporary labor hiring office P Vehicle auction use P Vending Carts on Private Property as per Chapter 5.65 of this P Title Wireless telecommunications facility(see Table 21A.40.090E of this Title) Qualifying Provisions: I. Development in the CS District and CSHBD District shall be subject to planned development approval pursuant to the provisions of Section 21A.54.150 of this Title. 2. See subsection 21A.02.050B of this Title for utility regulations. 3. When located in a building listed on the Salt Lake City Register of Cultural Resources(see subsections 2IA.24.010S of this Part and 21A.26.010K of this Chapter). 4. Subject to Salt Lake City/County Health Department approval. Exhibit B 21A.28.040 Table Of Pennitted And Conditional Uses For Manufacturing Districts: • LEGEND PERMTITED AND CONDITIONAL c=Conditional Use USES,MANUFACTURING P=Permitted Use DISTRICTS Use al-I M-2 Office And Related Uses Financial institutions,with or without drive-through facilities P Offices,medical and non-medical P Retail Sales And Services Automobile and truck repair P P Automobile and truck sales and rental(including large truck) P P Automobile parts sales P J P Building materials distribution--- ------—_— P----------—�P -- Communication services P P Convenience store ------ ---_—�— -- P P -- Electronic repair shop I' Equipment rental P P Furniture repair shop laundry;dry cleaning and dyeing P P Liquor store C P Package delivery facility P P Recreational vehicle sales and service P P Restaurant,with or without drive-through facilities I' Tire distribution retail/wholesale P P Truck repair,large Upholstery shop P P Institutional Uses(sites<2 acres) ------- ----- -- ---_---�--- Adult daycare center P P Child daycare center P P Local government facilities P P Schools,professional and vocational(no outdoor activities) P P Schools,professional and vocational(w/outdoor activities) P Commercial Uses Blacksmith shops P P Carpet cleaning P P Commercial laundry,linen service and dry-cleaning establishments P P Diaper service T P P Gas station(sales and/or minor repair) P P Greenhouse for food and plant production P Heavy equipment(rental) P P Heavy equipment(sales and service) P P Precision equipment repair P P Welding shop P P Manufacturing Uses LEGEND PERMITTED AND CONDITIONAL 11111 C=Conditional Use USES,MANUFACTURING P=Permuted Use DISTRICTS Use M-1 M-2 Bottling plant P P Cabinet making/woodworking mills P P Chemical manufacturing and storage C Commercial Bakery P P Concrete manufacturing C P Drop-forge industry Explosive manufacturing and storage C Flammable liquids ur gases,heating fuel distribution and storage P Food processing P P Grain elevator P I leavy manufacturing P Incinerator,medical waste/hazardous waste C Industnal assembly P P Laboratory;testing P P Light manufacturing P P Moving and storage P P Outdoor storage,public P P Paint manufacturing Photo finishing lab P P Panting plant P Publishing company P I' Railroad freight terminal C Railroad repair shop P Recycling collection station P I' Recycling processing center(indoor)------— —— — ----- P —-- — P Recycling processing center(outdoor) C P Refinery of petroleum products C Rock,sand and gravel storage and distribution C P Sign painting/fabrication P P Truck freight terminal P P Warehousing P P Wholesale distributors P P Recreation,Cultural And Entertainment Commercial indoor recreation P P Commercial outdoor recreation P P Commercial video arcade P P Natural open space and conservation areas P P Pedestrian pathways,trails,and greenways P P Sexually oriented business P P Taverns,private clubs,brew pubs and micro breweries P Miscellaneous Accessory uses,except those that am otherwise specifically regulated in P P this Chapter,or elsewhere in this Title LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES, MANUFACTURING P=Permitted Use DISTRICTSIII Use M-1 M-2 Agricultural use P P Animal pound, kennel and veterinary offices offering general overnight P p boarding Automobile salvage and recycling(indoor) P P Automobile salvage and recycling(outdoor) C P Boilerworks P Bus line terminals P P Bus line yards and repair facilities P Communication towers P P Communication towers,exceeding the maximum building height C C Contractor's yard/office(with exterior storage) P P Display room;wholesale P P Hotel or motel P Limousine service P P Living quarters for caretaker or security guard, limited to uses on lots 4 P P acres in size or larger Motion picture studio P p Off-site parking p P Outdoor storage and display P p Park and ride lots P P Park and ride,parking shared with existing use P P Pet cemeteries2 P Poultry farm or processing plant P Public/private utility buildings and structures P P Public/private utility transmission wires,lines,pipes and poles' P P Radio,television station P P Railroad"spur"delivery facility P P Raising of fur-bearing animals C P Sewage treatment plant C C Slaughter houses C P Solid waste transfer station C C Stockyards C P Taxicab operation;dispatching,staging and maintenance P P Vehicle auction establishment P P Vending carts on private property as per Chapter 5.65 of this Title P P Wireless telecommunications facility(see Table 21A.40.090E of this Title) Qualifying Provisions: 1. See subsection 21A.02.050B of this Title for utility regulations. 2. Subject to Salt Lake City/County Health Department approval. Exhibit C • 21A.30.050 Table Of Permitted And Conditional Uses For Downtown Districts: LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Residential Dwelling units, including multiple-family dwellings above or below first P p P p story office,retail and commercial uses or on first story,as defined in the Uniform Building Code,where the unit is not located adjacent to the street frontage Group home,large(see Section 21A.36.070 of this Title) P P Group home,small(see Section 21 A.36.070 of this Title) P P Homeless shelter C Multiple-family dwellings C C P C Residential substance abuse treatment home,large(see Section 21A.36.100 P C of this Title) Residential substance abuse treatment home, small (see Section P P 21 A.36.100 of this Title) Transitional treatment home,large(see Section 21A.36.090 of this Title) P C Transitional treatment home,small(see Section 21A.36.090 of this Title) P P • Transitional victim home,large(see Section 21A.36.080 of this Title) P C Transitional victim home,small(see Section 2IA.36.080 of this Title) P p Office And Related Uses Adult daycare centers P P P P Child daycare centers P P P P Financial institutions,with drive-through facilities P p C P Financial institutions,without drive-through facilities P p p P Medical and dental clinics P p P P Offices P P P P Veterinary office, operating entirely within an enclosed building and P p keeping animals overnight only for treatment purposes Retail Sales And Services Automobile sales/rental and service C C Department stores P p Furniture repair shop P P P P Gas station, may include accessory retail sales and/or minor repair, as C P C C defined in Part VI,Chapter 21A.62 of this Title Health and fitness facility P P P P Liquor store C C C C Merchandise display rooms P P P P Pawnshop C P Restaurants,with drive-through facilities P P P P Restaurants,without drive-through fa^ilities P p p P Retail goods establishments P P P P Retail laundries,linen service and dry cleaning P P P P Retail services establishments - P P P p LEGEND PERMITTED AND CONDITIONAL C=Conditional Use USES III P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 I D-4 Upholstery shop p p Institutional Uses(sites<4 acres) Colleges and universities P P p p Community and recreation centers,public and private,on lots less than 4 P p p p acres in size Government facilities(excluding those of an industrial nature and prisons) P p Libraries P p Museum P p Music conservatory p p Places of worship P P p p Schools,K-12 private P p Schools,K-12 public p p Schools,professional/vocational P P P P Seminaries and religious institutes p p Recreation,Cultural And Entertainment Art galleries p P P P Artists lofts and studios P P P P Brew pub(indoor) P P p p Brew pub(outdoor) P p C P Commercial indoor recreation P p p p Commercial video arcade P p p P Motion picture theaters P P P P Natural open space and conservation areas on lots less than 4 acres in size C C C C Parks and playgrounds on lots less than 4 acres in size P P P P Pedestrian pathways,trails,and greenways C C C C Performance arts facilities P p p P Private club(indoor) P P C P Private club(outdoor) P P P p Sexually oriented business P p p Squares and plazas on lots less than 4 acres in size C C C C Tavern/lounge(indoor) P P P P Tavern/lounge(outdoor) P p C P Miscellaneous Accessory uses, except those that arz otherwise specifically regulated in P P P P this Chapter,or elsewhere in this Title Automobile repair,major C P C C Automobile repair,minor C P C C Bed and breakfast P p p p Bed and breakfast inn P p P P Bed and breakfast manor P P P P Blood donation center, commercial and not accessory to a hospital or P medical clinic Bus line terminal p Bus line yards and repair facilities P 4111, LEGEND PERMITTED AND CONDITIONAL 110 C=Conditional Use USES P=Permitted Use DOWNTOWN DISTRICTS Use D-1 D-2 D-3 D-4 Commercial laundry, linen service, and commercial dry-cleaning C P C C establishments Commercial parking garage,lot or deck C P C C Communication towers P P P P Communication towers,exceeding the maximum building height C C C C Food product processing/manufacturing P Graphic/design business P P P P Heliports,accessory C C Homeless shelter C Hotels and motels P P P P Industrial assembly C C Limousine service P Micro breweries C Mini-warehouse P P Off-site parking P P P P Outdoor sales and display C P P C Precision equipment repair shops P C Public/private utility buildings and structures C C C C Public/private utility transmission wires,lines,pipes and poles I P P P P Publishing company P P P P Radio stations P P p 2 P Railroad passenger station P P P P Social service missions and charity dining halls P P Street vendors(see Chapter 5.64 of this Code) Temporary labor hiring office P C TV stations P P P Vending carts on private property as per Chapter 5.65 of this Title P P P P Warehouse P P Warehouse,accessory P P P P Wholesale distribution P P Wireless telecommunications facilities (see Table 21A.40.090E of this Title) Qualifying Provisions: I. See subsection 21A.02.050B of this Title for utility regulations. 2. Radio station equipment and antennas shall be required to go through the site plan review process to ensure that the color, design and location of all proposed equipment and antennas are screened or integrated into the architecture of the project and are compatible with surrounding uses. Exhibit D 21A.31.050 Table Of Permitted And Conditional Uses For Gateway Districts: 11111 LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Residential Uses Group home,small(see Part IV,Section 21A.36.070 of this Title) P Group home,large(see Part IV,Section 21A.36.070 of this Title) C Halfway homes(see Part IV,Section 2l A.36.1 10 of this Title) Living quarters for caretaker or security guard P Multiple-family dwellings P Residential substance abuse treatment home,small(see Part IV,Section 21 A.36.100 P of this Title) Residential substance abuse treatment home,large(see Part IV, Section 2IA.36.100 C of this Title) Single-family,residence-attached P Transitional treatment home,small(see Part IV,Section 21A.36.090 of this Title) P Transitional treatment home,large(see Part IV,Section 21A.36.090 of this Title) C Transitional victim home,small(see Part IV,Section 21A.36.080 of this Title) P Transitional victim home,large(see Part IV,Section 21A.36.080 of this Title) C Office And Related Uses Financial institutions,with drive-through facilities C Financial institutions,without drive-through facilities P Medical and dental clinics P Offices P Veterinary office, operating entirely within an enclosed building and keeping animals overnight only for treatment purposes Retail Sales And Services Auction sales(indoor) P Automobile repair,major(indoor) P Automobile repair,major(outdoor) Automobile repair,minor(indoor) P Automobile repair,minor(outdoor) Automobile sales/rental and service(indoor) P Automobile sales/rental and service(outdoor) Boat/recreational vehicle sales and service(indoor) P Boat/recreational vehicle sales and service(outdoor) Car wash C Department stores Electronic repair shop P Equipment rental,indoor and outdoor P Furniture repair shop Gas station (may include accessory convenience retail and/or minor repairs as C 1 LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU defined in Part VI,Chapter 21 A.62 of this Title) Health and fitness facility P Liquor store C Merchandise display rooms P Pawnshop Restaurants,with drive-through facilities Restaurants,without drive-through facilities P Retail goods establishments P Retail services establishments P Upholstery shop C Value retail/membership wholesale Institutional Uses Adult daycare center p Child daycare center P Colleges and universities ;1-3 P Community and recreation center:, P Government facilities(excluding those of an industrial nature and prisons) P Libraries P Museum p Music conservatory p Places of worship P School,professional and vocational P Schools,K-12 private p Schools,K-12 public p Seminaries and religious institutes p Commercial And Manufacturing Bakery,commercial Blacksmith shop Blood donation centers,commercial and not accessory to a hospital or medical clinic Bottling plant Cabinet and woodworking mills Carpet cleaning p Industrial assembly C Laboratory;medical,dental,optical P Mini-warehouse C Motion picture studio C Moving and storage Photo finishing lab P Plant and garden shop,with outdoor retail sales area C Printing plant C • LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Publishing company P Sign painting/fabrication(indoor) Truck freight terminal Warehouse C Welding shop Wholesale distributors C Recreation,Cultural And Entertainment Amusement park C Arenas,stadiums P Art galleries P Artists lofts and studios P Botanical gardens P Brew pub(indoor) P Brew pub(outdoor) a C Commercial indoor recreation P Commercial outdoor recreation C Commercial video arcade P Dance studio P Live performance theaters P Miniature golf P Motion picture theaters P Movie theaters P Museums P Park(public and private) P Performance arts facilities P Private club(indoor) P Private club(outdoor) C Private recreational facilities P Tavern/lounge(indoor) P Tavern/lounge(outdoor) C Zoological park C Miscellaneous Accessory uses, except those that are otherwise specifically regulated in this P Chapter,or elsewhere in this Title Ambulance services, dispatching, staging and maintenance conducted entirely C within an enclosed building Amphitheater P Auditorium P Auto salvage and recycling(indoor) C Bed and breakfast P Bed and breakfast inn P I — ,l LEGEND Permitted And Conditional Uses C=Conditional Use Gateway Districts P=Permitted Use USE G-MU Bed and breakfast manor P Bus line terminal C Bus line yards and repair facilities C Commercial parking garage,lot or deck C Communication towers P Communication towers,exceeding the maximum building height C Community garden P Contractor's yard/office(with exterior storage) C Emergency response and medical service facilities including fire stations and living C quarters Farmer's market P Flea market(indoor) P Funeral home Graphic/design business P Heliports,accessory C Hotels and motels P Limousine service Micro breweries Off-site parking P Outdoor sales and display C Park and ride lots C Park and ride,parking shared with existing use P Precision equipment repair shops Public/private utility buildings and structures C Public/private utility transmission wires,lines,pipes and poles C Radio stations C Railroad passenger station C Railroad"spur"delivery facility C Recycling collection station Reverse vending machines Social service missions and charity dining halls C Street vendors(see Chapter 5.64 of this Code) Taxicab facilities,dispatching,staging and maintenance Television station C Temporary labor hiring office P Vending Carts on private property as per Chapter 5.65 of this Title. P Wireless telecommunications facilities(see Table 21 A.40.090E of this Title) (Ord. 83-98 § 6(Exh. D), 1998) Exhibit E 21A.32.140 Table Of Permitted And Conditional Uses For Special Purpose Districts: • LEGEND PERMITTED AND CONDITIONAL USES C Conditional Use SPECIAL PURPOSE DISTRICTS P—Permitted Use Use RP BP FP ! AG OS l A PL I CI MH El MU Residential Assisted living facility P (see Section 21 A.36.050 of this Title) Congregate care facility P P Dwelling units,above first P floor commercial or office Group home,large(see C Section 21 A.36.070 of this Title) Group home,small(see P Section 2IA.36.070 of this Title) Living quarters for P P P P P P P caretakers and security guards Manufactured home P_ Mobile homes Multi-family(no P maximum density limitation) Multiple-family dwellings P Nursing care facility ,._. P_— P Resident health care P facility(see Section 21 A.36.040 of this Title) Single-family attached ----�— -- �— �— -- — - --_— P dwellings Single-family detached P P dwellings Twin home and two- P family dwellings Rooming(boarding)house, Office And Related Uses Accessory offices P supporting an institutional use Financial institutions,with P P Pr drive-through facilities Financial institutions, P P P without drive-through facilities Government offices P P L P P P P -_—P - •` LEGEND PERMITTED AND CONDITIONAL USES • C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AC OS A PL I UI MII El MU Medical and dental offices P P P P P Offices Offices,research related P P _p Veterinary offices, P p operating entirely within an enclosed building and keeping animals overnight only for treatment purposes Retail Sales And Services Accessory retail sales and P P PP P p p services uses,when located within the principal building and operated primarily for the convenience of employees Commercial service C establishments Gas station(may include pa accessory convenience retail and/or minor repairs as defined in Part VI, Chapter 2tA.62 of this Title) Restaurants with drive- Pr through facilities Restaurants without drive- P through facilities Retail goods p establishments Retail service P establishments L Institutional Uses Adult daycare centers _ P P Child daycare centers P P P P P P _ P Cemeteries and accessory P crematoriums Colleges and universities p P Community and recreation P P P P P centers Conference center P P C P Convention center,with or C without hotels Convents and monasteries P P Dental P P C P laboratories/research • facilities LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH EI MU Emergency response and C P P medical service facilities including fire stations and living quarters Exhibition hall C C P Hospitals,including C P P accessory lodging facilities Libraries p P p Medical and dental clinics P P P P P Medical research facilities P P p Medical/nursing schools P Meeting halls of P P P P membership organizations Nursing care facility; p P sanitariums Pet cemetery p4 p4,5 Philanthropic uses P P Places of worship p P p Prison or jail C Religious assembly with C p exhibit hall Research,commercial, P P P C scientific,educational Reuse of schools and C C C P churches Seminaries and religious P p P institutes Schools,K-12 private P P Schools,K-I2 public p Schools, C P P P P professional/vocational Recreation,Cultural And Entertainment Art galleries p Arenas,stadiums, C C C fairgrounds Botanical gardens C Community gardens as P defined in Part VI,Chapter 2IA.62 of this Title Country clubs p Dance studio P Golf courses P P P Movie theaters/live P performance theaters Museums C p P P LEGEND PERMITTED AND CONDITIONAL USES C=Conditional Use SPECIAL PURPOSE DISTRICTS P=Permitted Use Use RP BP FP AG OS A PL I UI MH El MU Natural open space and p conservation areas Nature P p p preserves/conservation areas,public and private Park(public) C p p p Pedestrian pathways,trails p and greenways Private recreational P p p p p facilities Tavern/lounge/brew pub; C 2,500 square feet or less in floor area Zoological park p Airport And Related Uses Air cargo terminals and P p package delivery facilities. Airline service and p maintenance operations Airline ticketing and p baggage processing Airport operations p (including air traffic control,navigational aids, emergency and maintenance operations) Alcoholic beverage p consumption establishment