TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Emy-Rose Hanna, Financial Services Manager
SUBJECT:Title
Conduct Public Hearing Regarding Proposed Fees and Citations Related to Mobile Vending Business Permit and Consider Resolutions Amending the City’s Comprehensive Fee Schedule and Administrative Citation Fine Schedule (No Budget Impact) (Finance Director Bretthauer).
(Estimate Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NOS. 25-0123 AND 25-0124
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing regarding proposed fees and citations related to the Mobile Vending Business Permit, adopt Resolution No. 25-0123 amending the Comprehensive Fee Schedule and adopt Resolution No. 25-0124 amending the Administrative Citation Fine Schedule.
FISCAL IMPLICATIONS:
With the recent introduction of Mobile Vending Business Ordinance No. 25-0011 <https://manhattanbeach.legistar.com/View.ashx?M=F&ID=14865995&GUID=1C5A062A-13C6-4F14-B05E-3585C23BD0B1>, the City anticipates increased costs to regulate and enforce a mobile vending program, however, those increased costs would be recovered through the proposed Mobile Vending Business Permit (Permit) fees, appeal fee and administrative citation revenue recovered through enforcement activities.
The proposed Permit fee of $518 is based on cost recovery for staff time involved in issuing the Permit. Based on the existing six licensed mobile vendors, the City anticipates approximately $3,108 in annual revenue associated with this new Permit.
As is true with all violations of the Municipal Code, a violation of Ordinance No. 25-0011 constitutes a misdemeanor. However, to achieve compliance with Code provisions, the City has the option of issuing an administrative citation pursuant to Chapter 1.06. Additional revenue impacts are anticipated from enforcing Code requirements. However, the approximate amount is not quantifiable due to unknown factors such as the frequency and number of operators violating the Code at any given time.
BACKGROUND:
This summer, a number of mobile vendors began operating in Southern California cities, including congested coastal communities. On July 15, 2025, the City Council directed staff to agendize consideration of an update to the City’s mobile vendor regulations to protect public safety related to ADA access, increased congestion, narrow streets, limited visibility, and the slope of streets, especially on East/West streets.
On October 21, 2025, the City Council heard public testimony and introduced Ordinance No. 25-0011 amending Section 3.68 of the Manhattan Beach Municipal Code related to Mobile Vending Businesses.
If adopted upon second reading, Ordinance No. 25-0011 establishes a Mobile Vending Permit and requires any person applying for a Permit to pay a non-refundable application fee in an amount established by resolution of the City Council (Section 3.68.030).
Additionally, Section 3.68.070 (Appeals) requires that any mobile vendor whose Permit is denied or revoked and wishes to appeal the Finance Director’s decision shall pay an appeal fee set by resolution of the City Council.
Pursuant to Municipal Code Chapter 1.06, the City may issue an administrative citation for any violation of Chapter 3.68, in lieu of or in addition to proceeding with criminal prosecution to obtain compliance with the Municipal Code.
Following the introduction of Ordinance No. 25-0011 on October 21, 2025, staff prepared resolutions for the new fees and citations related to mobile vending to be considered at a public hearing on November 4, 2025 if Ordinance No. 25-0011 is adopted.
DISCUSSION:
The Mobile Vending Business Permit application process will involve staff time in reviewing the permit application, ensuring compliance with the operating requirements of the Mobile Vending Program, performing a fire inspection and issuing the permit.
The appeal process for denial or revocation of the Permit will also require a considerable amount of time for review by staff and the Finance Director, in addition to retaining an external hearing officer to consider the appeal.
Mobile Vending Business Permit Fees
To determine the appropriate Permit fees, staff met with the applicable departments that would be involved in issuing the Mobile Vending Business Permit. Based on a thorough review of the time and staff involved, the City developed a Permit workflow as follows:
1. Finance Department Review
• Lead Account Specialist (1 hour): Review permit application materials including:
o Seller’s Permit, which is a State-issued license that allows businesses to collect sales tax on goods and services sold to customers. The applicant will also acknowledge the requirement to report all sales activity in Manhattan Beach and remit the current 10.25% sales tax to the California Department of Tax and Fee Administration (CDTFA) under the City's jurisdiction.
o LA County Health Permit (Los Angeles County Mobile Food Facility Permit), which is crucial for protecting public health and ensures food safety regulations are followed.
o Confirmation/acknowledgement of operating requirements of Ordinance No. 25-0011.
o Completeness/confirmation of business license application or renewal, as required by Ordinance No. 25-0011.
2. Risk Management Review
• Risk Manager (15 minutes): Review permit application materials including:
o Certificate of Insurance and additional endorsements, which validates the mobile vendor meets minimum insurance requirements for general liability insurance and commercial automobile insurance.
o Acceptance of agreement by the applicant to indemnify and hold harmless the City, its officers and employees, for any damage or injury to the City or its property, and for any third-party claims against the City.
3. Community Development Department Review
• Traffic Engineer (30 minutes): Review permit application materials, including mobile vending vehicle dimensions and pictures.
4. Fire Department Review
• Fire Marshall (30 minutes): Review permit application.
• Fire Inspector (30 minutes): Perform inspection of mobile vending vehicle.
5. Finance Department Permit Issuance or Denial
• Lead Account Specialist (15 minutes):
o Provide notification and copy of approved permit to Parking Enforcement, Code Enforcement and Traffic Engineering.
o Notification of approval status and distribution of vehicle decal to mobile vending operator.
The Permit process described above results in a total amount of $518 which is calculated based on staff time and fully burdened hourly rates. The workflow described above is what a typical Permit process would entail, however, if additional time is warranted due to missing application materials or a failed fire inspection, then the applicant would be subject to re-review/resubmittal fees as follows:
1. Re-review/Resubmittal Fee for Finance Department
Lead Account Specialist (30 minutes): Upon incomplete application, review of resubmitted Permit materials. Fee is assessed per occurrence of incomplete application.
2. Re-review/Resubmittal Fee for Risk Management
Risk Manager (15 minutes): Upon incomplete application, review of resubmitted insurance coverage or Indemnification and Hold Harmless Agreement. Fee is assessed per occurrence of incomplete application.
3. Re-review/Resubmittal Fee for Community Development
Traffic Engineer (30 minutes): Upon incomplete application, review of resubmitted Permit materials. Fee is assessed per occurrence of incomplete application.
4. Re-review/Resubmittal Fee for Fire Department
Fire Inspector (30 minutes): Re-Inspection of mobile vending vehicle following non-compliant results from initial inspection. Fee is assessed per occurrence of re-inspection.
Based on the process described above, the proposed re-review/resubmittal fees were calculated at $46 for the Finance Department, $47 for Risk Management, $115 for Community Development and $83 for the Fire Department. The proposed re-review/resubmittal fees would be assessed individually based on the need and would not be charged collectively unless required (e.g. If the only non-compliant issue is the Fire Inspection, then the applicant would just pay the additional $83 Re-review/Resubmittal Fee for Fire Department).
Appeal Fee
The Mobile Vending Business Ordinance designates the Finance Director with authority to revoke a Permit after a fourth violation of Chapter 3.68 of the City’s Municipal Code. For any mobile vendor who wishes to appeal the Director’s decision to deny or revoke the Permit, the mobile vendor must file the appeal and pay an appeal fee with the City Clerk within 15 days following the date of the Director's decision.
Pursuant to Section 3.68.070 (Appeals) of Ordinance No. 25-0011, the appeal fee shall be set by resolution of the Manhattan Beach City Council. The intent of the appeal fee is to provide cost recovery of the appeal process for the denial or revocation of a Permit. To ensure consistency across other appeal fees within the Comprehensive Fee Schedule, staff proposes an appeal fee based on a $500 deposit, plus actual costs (billed at fully burdened hourly rates).
Administrative Citations
As identified in Section 3.68.100 (Violations) of Ordinance No. 25-0011, the amount of the fine associated with the administrative citation will be assessed according to a schedule of fines adopted by the City Council. Administrative Citations are designed to encourage compliance and discourage repeated violations of the City’s Mobile Vending Business Ordinance, staff proposes the following enforcement activities and Administrative Citation fines:
• $500 - 1st Administrative Citation for Violation of Mobile Vending Ordinance
• $750 - 2nd Administrative Citation for Violation of Mobile Vending Ordinance within one year of the first violation
• $1,000 - 3rd Administrative Citation for Violation of Mobile Vending Ordinance and each additional violation within one year of the first violation
As noted above in the Appeal section, the Finance Director has the authority to revoke the Permit after a fourth violation of Chapter 3.68.
As is the case with all existing administrative citation fines, a 50% late penalty is assessed if not paid within 30 days of the due date of the citation and another 50% second late penalty is issued for continued non-payment after thirty (30) days from the due date, plus an additional ten percent (10%) of the overdue fine for each month the payment is overdue. The maximum late fee is currently set at one hundred percent (100%) of the overdue fine (1.06.080 MBMC).
CONCLUSION:
To ensure cost recovery for the regulation and enforcement of the new Mobile Vending Business Ordinance, staff recommends approving Resolution Nos. 25-0123 and 25-0124, thereby approving the attached Exhibits (Amendment to Comprehensive Fee Schedule and Amendment to Administrative Citation Fine Schedule). If approved, the new Permit and appeal fees would go into effect beginning February 1, 2026, and have a deadline for mobile vending operators to apply by April 30, 2026, to coincide with the business license renewal period. A new Permit will subsequently be required each anniversary thereafter.
The Administrative Citations and code enforcement activities would take effect on December 4, 2025, to coincide with the effective date of Ordinance No. 25-0011.
PUBLIC OUTREACH:
Outreach efforts involved providing mailed notice to the six licensed mobile vending operators on Friday, October 24, 2025. Information regarding the fees and citations were also posted on the City’s website on Friday, October 24, 2025. Additionally, a legal notice was published in The Beach Reporter on Thursday, October 23, 2025.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0123 and Exhibit A - Amendment to Comprehensive Fee Schedule
2. Resolution No. 25-0124 and Exhibit A - Amendment to Administrative Citation Fine Schedule
3. PowerPoint Presentation