Memorandum

City of Lawrence

City Clerk’s Office

TO:	David L. Corliss, City Manager
FROM:	Jonathan Douglass, City Clerk/Assistant to the City Manager
CC:	Toni R. Wheeler, City Attorney
DATE:	June 20, 2012
RE:	Sidewalk Sales Permits

As part of a review of City Clerk’s Office license/permit procedures and fees, I am submitting this recommendation to adopt Ordinance No. 8754, which would establish a new Sidewalk Sales Permit.

Background

Currently sidewalk sales downtown are regulated through the right-of-way permit process. In 2011 we issued 29 separate permits for sidewalk sales, a number of which were for numerous dates. A few businesses held sidewalk sales on every home football game weekend.

The current City Code regarding sidewalk sales is somewhat convoluted. Chapter 16, Article 8, generally prohibits placing items on the sidewalk without a Temporary Use of Public Right-of-Way Permit. Chapter 6, Article 8, regulates transient merchants, and 6-815 excludes from the licensing requirements “sidewalk sales conducted by an adjoining retail business or a non-profit organization on not more than three (3) consecutive days and not less than forty-five (45) days since a prior sidewalk sale at the same location.” Transient Merchants Licenses are valid for five days, so presumably after holding their first sidewalk sale in the 45 day period, an applicant could then apply for a Transient Merchants License to hold an additional five days of sidewalk sales.

The proposed ordinance would simplify the permit requirements and address some issues that have come up as sidewalk sales have become more frequent over the last few years.

Proposed Ordinance

The proposed ordinance created a Sidewalk Sales Permit with the following basic requirements and conditions:

• Permit fee is $10 per day
• Sidewalk sales at any address are limited to no more than three consecutive days and no more than twelve total days in a calendar year.
• At least six feet of continuous, uninterrupted sidewalk must be maintained for pedestrian travel.
• Applicant must provide proof of insurance and adjoining property owner permission.

Fee Justification

The level of the fee was established after reviewing the following criteria, per the city’s fee policy:

• What is the service?  Permitting of downtown sidewalk sales.
• Why does the city provide the service? To ensure that public sidewalks are safe and appropriately used. Requiring a permit allows the city to track the number of sidewalk sales and communicate rules about the use of the temporary use of the public sidewalk for private purposes.
• Who uses the service? Downtown businesses and non-profit groups.
• How much does it cost the city to provide the service?  Processing of the permit application will require minimal staff time and judgment, but it will require use of staff time, and overhead costs such as computers, scanners, financial software, permitting software, etc. If the fee is any lower than $10/day it is probably not worth the cost of collecting and processing it.
• How much of the cost of the service is subsidized by general tax revenue?  None.
• How much of the cost does the city intend to recover through fees and charges? 100%. The applicants for this permit will be using the public sidewalk as a venue to pursue financial gain, therefore it is not appropriate for the public to subsidize the cost of the permitting process.
• How many people or businesses use the service? In 2011, 29 temporary use of public right-of-way permits were issued for sidewalk sales, to 13 different applicants.
• How do the City’s fees compare with other cities or with private businesses? We do not “compete” with other cities or private businesses for this service so that comparison is probably irrelevant. The service is somewhat comparable to the Sidewalk Dining License, the fee for which is $3.50 per square foot per year.
• What part of the City Code or other legal authority guides the fee? Ordinance No. 8754 would guide this fee, if adopted.
• How will the City collect the fee? Fees can currently be to the City Clerk’s Office via cash or check. We expect to be able to accept credit cards later this year.

ACTION:      Adopt on first reading, Ordinance No. 8754, regarding sidewalk sales permits.