Sound like today we do. Come up. Good evening. Thank you commissioners. Me and my partner are with a ate aspen tech policy hub. Were really looking to try to figure out what the awareness is amongst Small Businesses and to help Small Businesses improve their posture and prevent attacks. This is a problem you dont hear about Small Businesses being attacked. You do hear a lot about public organizations. State of new orleans spent 7 million recovering from attacks. They declared state of emergency in the city. Which is impressive. There are some simple steps you can take. Why are the steps not been taken and what they can do. Were trying to figure out this is a hightech field. In order to get businesses to take these steps they need to be coached, consulted and to do them correctly. Reduce the friction and to helping them to protect both businesses as well as the customers. User data that businesses use that are associated with it. With that, we like to continue the conversation and answer any questions and come back at the next Council Meeting for more discussion. Any other Public Comment . Next item. Item 3, Office Small Business presentation. Discussion item. The presenter is director dickendrizzi office of Small Business. Good evening commissioners. Regina dickendrizzi director of the office of Small Business. I thought we take an opportunity just to take a look at some of the definitions with the department of Public Health and the Planning Department as it relates to the food related industry so that you can begin to think about your line of questioning for the department on wednesday. Sfgov tv, i have a slide. Im first going to start off with the mobile fooled food facility. Im not sure if youve been able to process the briefing document ahead of wednesdays meeting. We have three sort of ways in which they are being constructed. One is more in a catering type of facility. That is off our Main Commercial corridors. Another is on our commercial corridors and in brick and mortar space. Its designed more like a shared kitchen catering kitchen. Then we also have a virtual kitchen in the mobile food space. I want to highlight. There are three areas in which mobile food facilities can be placed. The first one is in the public rightofway. This is what we think of our traditional mobile food facili facility. The public works, the public rightofway is your traditional mobile food facility. It is a truck that can move in and out. I will not get into the great details of permitting. It is temporary. Its there for a very specific period of time. Its not stationary. We currently right now, i dont think that we would ever see a virtual kitchen permitted in the public rightofway. It would ultimately sort of have to be more or less permitted. Its much more substantial and doesnt quite have the moveability of moving in and out and also mobile food facilities are there for a very short period of time. They have a small window which they can operate in their space. To the far right is park property. Rec and park permits their own mobile food facilities. The middle is where were seeing the virtual kitchens that are being permitted under the mobile food structure on private property and private parked private are like parking lots. We see mobile food facilities like sometimes on gas station lots. Its not part of the public rightofway. Its on private property. Therefore, the Planning Department is the entity that provides the land use approval process for the mobile food facility. Where on public rightofway, it is department of Public Health. Each the mobile food facilities, any mobile mobile food facility for the Public Safety food handling, all of that is permitted through the department of Public Health. There are five different categories of mobile food facilities. They are in the written document. The most intensive mobile food facility is in a mobile food facility five which allows cooking, heating. Other mobile food facilities deal with just a range of maybe food prep but cooking and preparation. Cooking is done in a commissary. All mobile food facilities are designed to be temporary. Wherever they are located, whether its on the street, which d. P. W. Permits and planning on rec and park property. They need to leave their space after their permitted time is up and return to a commissary area where the truck is stored and cleaned and their food is removed from the mobile food facility and is also in a food commissary. Any questions up to that point . I have one. The vehicle has to leave if it was in the second category of private property, the vehicle has to leave and go to a vehicle storage area and the food has to come out of the vehicle every night . The vehicle cant be parked there it says here up to three days. It cannot. This is actually since im not an expert, i would take that question and i would ask planning about that. The temporary use authorization, they may be able to keep the facility there. That will be good question to ask d. P. H. And planning. If the vehicle is able to stay there stationary up to three days, what is required around the food safety handling. The food safety handling is going to be d. P. H. If theyre allowed to be there for three days, do they have to can they stay for three days on that property or do they have to leave. Are you aware of, this might be another question for planning and d. P. H. , does the property have to register or have license or permit to have these trucks . They do not. Planning requires that the mobile food facility get permission from the Property Owner. So the Property Owner has to allow permission. They also have to have a restroom within a certain radius of the facility as well. That is standard whether its private property or public property or on rec and park property. If a business had three parcels of property and had three vehicles that can just once every three days, rotate them all without ever having to it sound the temporary use authorization that planning has, when we were discussing developing the initial mobile food facilities program. It does not become a permanent structure. I would get as i understand it, no, they would not. That would definitely be a question that i would ask the Planning Department. Just kind of curious, it does appear there are Business Models coming up that are essentially that. They have multiple parcels. It looks like they could dodge the permitting use provision by shuffling the vehicles between parcels. They would need to get land use approval for each parcel and those conditions of each parcel would be established. If they violate those conditions and the Planning Department can take action. Ada commissioner adams i do know little bit about this. Theres these carts all over financial district that are on the sidewalk. I talked to some of the owners of those. They are permitted from 10 00 to 3 00 p. M. They are there right at 10 00 a. M. They do have to go. They say they have a facility and the ones that eive talked to, its a place down near the produce terminal. Some of the most of the others, their permits for set for a certain period of time. I dont know of anybody who has a permit up to three days. Most of them, all of them that are on the sidewalk at least in the financial district, theyre only permitted from 10 00 a. M. To 3 00 p. M. Then they have to move. The trucks can only be there from the morning but by 4 00, everybody has to be gone within the financial district. Commissioner dooley follow up on commissioner adams, do you know if theres any difference in types of mobile trucks like what were looking at here. You can only stay three days. They still have to leave that premises. They cant just stay where they are. Correct. Unfortunately you will not be here, commissioner dooley, that is a question for planning is to know whether theres going to be any given consideration. The virtual kitchens under one particular model of mobile food isnt classic mobile food. Its more of a larger trailer. Physical space and so it would be a good question to ask the Planning Department on whether there would be considerations around an entity like that on a permanent basis. President laguana any other commissioners . I know lot of brick and mortar businesses i talk to are constantly asking questions related to mobile food facilities. I know theres a lot of misinformation because of the change in laws. I remember at one point, they added a statute that they couldnt be within a certain radius of like commercial corridors or Something Like that. It was a radius of a restroom. It was changed to 50 feet. I think that in order to it will be great to make this available to some of our Small Businesses who maybe still spreading they say theyre not paying the same taxes that we are and kind of repeat ma mantra. We dont what they are paying. If the commission would like im going to really sort of encourage differentiation between mobile foods that are trucks, that are on our streets, what were familiar with and some of the food park, mobile carts that are on sidewalks. If you want a presentation and get specifics in relationship to that, what im trying to do tonight is really sort of focus in on the structure as it relates to virtual kitchen and preparation for wednesday. Commissioner adams i agree with you director. When we were discussing the mobile food trucks years ago on this commission, those food trucks, they are not virtual kitchens. They are Small Businesses. Good example, they can bake in, they started out as a food truck and they wound up opening up a brick and mortar location. Theres a few of those. What were talking about here is these virtual kitchens which i think is the dangerous thing thats happening now. The virtual kitchens are the ones that are putting out the Small Businesses in my opinion. We just got to know the difference between the two. Theres a lot of misinformation out there. I realize years ago that lot of these food trucks, they are Small Businesses too. You have to create that even playing field. I hope this hearing will clarify. Commissioner adams its those virtual kitchens. I agree with commissioner ortizcartagena said. As you said, we trying to create a framework for Small Business to succeed. What i think were seeing here, now have to contemplate is whether the code itself contemplated a very wellfunded Tech Industry coming in with hundred of millions of dollars. Its real estate and trucks and for them its just a way to facilitate food delivery at scale. Where does that leave the Small Business community thats actually Building Community and making the city a good place to visit. Nobody coming here to visit an uber pickup spot. Thank you for that commissioner. Thats a very clear distinction unlike the mobile foods thats happening. The trucks thats b to c, b to consumer where the other model is b to b. Its business to the Third Party Delivery platform. Thats, perhaps, also a clear distinction is that while it may be in the parking lot and look accessible like a mobile food truck, you cant walk up and order food. At least at this particular format. I think that that for this particular document, i think im going to move on. Are we moveing on to the next item . No. The next document are the definitions from the planning code. If you havent had an opportunity to really look at it between now and wednesday, i do encourage you to. I will not go into everything in detail. We have sort of the planning code about eating and drinking uses. Theres mobile food facility. Thats what creates that specific definition of which the planning first set of definitions are under the planning code. This creates the ability for the Planning Department having a very specific definition around mobile food facilities in terms being able to permit on a private property. Below that is the definition of the temporary use authorization. Im not going to go into detail about that. It is the temporary use authorization in which emotional food falls under and being able to operate on private property. The next definition is around restaurants and restaurants one of the key distinguishing factors are its abc licenses. I highlighted that for you which is abc licenses type 2, 23, 41, 47, 49. Theres some others. Its generally the 47 and 49 that we are type 41 and 40. One is beer and wane an wine anr is beer and wine and spirits. Theres the restaurant limited. These licenses are on sale only. Theres a distinction between on sale and off sale licenses. On sale means the consumption has to take placed in the premise. Theres restaurant limited and under restaurant limited, you will see, i highlighted that it shall not provide beer and wine on site. But may provide type 20 off sale beer and wine license so you can walk in, buy the beer and wine, leave with the alcohol. One of the things to highlight here is what weve identified and for you to have a discussion with the Planning Department is for the virtual restaurants that are in our neighborhood commercial corridors. They are being permitted under limited restaurant. To date, i have not seen that alcohol is included. This may be sort of very clear alcohol alcohol maybe something you want to set recommendations around. One is so that our brick and mortar restaurants have a leg up and ensuring if theyre able to serve beer and wine or spirits, that gives them an economic advantage. Our limited restaurants are able to serve limited restaurants are able to serve that gives them an economic advantage and kind of an economic advantage over our Liquor Stores in our Neighborhood Corner stores sell alcohol. You may want to think about some policy considerations to provide. Thats one area where the city could provide some very specific criteria to help give our brick and mortar and economic advantage. For d. P. H. One second. Commissioner yekutiel. Commissioner yekutiel what do you think their appetite will be . Given that Cloud Kitchens are a pretty new concept . Thats a very good question for you to have an engagement with. At times, departments either this is what we see all the time with the Business Assistant centre, new models kind of come in. We work with the departments to figure out how they might fit within the current regulatory structure for them to get permitted in an open. Its not consistent where departments if they are seen in abundance, the department may initiate that we may need to do something. If they are not, they may not. Thats a good question for you to ask the planning staff if theyve been seeing this and if theyre thinking about and giving it any consideration. If not, you may want to make a recommendation that this is something that is taken a look at. I think anything sort of business wise that were looking at in relationship to planning, d. P. H. That we would encourage and interagency kind of review and taking a look at it with our office, looking both planning and health as these things are being permitted and coming up. Commissioner yekutiel do you know when the different rules around mobile food facilities and food trucks came about . A long time. The changes in the mobile food was because initially the mobile food was under the Police Department. There were significant challenges in dealing with the Police Department. This is not their primary area. Its permitting businesses. They still do have some of that. It was taking it from the Police Department and putting it in both planning and department of public works code. That probably took place around 2009 and 2010 with some revisions couple of years later. This question came up recently. I want to make sure im clear on this. Planning has they can add new definitions and new types of businesses at their discretion . Does that require action from the board . It requires action from the board. The department may initiate and work with the board member. Any changes to the planning code does require legislation. Got it. That was my question. Just to kind of sort of put a little asterisk there is the cdp3 program. Thats not, thats an internal process. That was not codified through legislation and it is not in the planning code. Its not an actual designation for a type of business rather its a designation for type of process thats attached to an existing category. Correct. Commissioner dooley where are we with the mobile food trucks with the subject of formula retail . There was a point in time a number of years back, we did see like a jack in the box, food truck. Are we making any changes . Where are we with that part of it . There have been no changes in applications to the formula retail. Id have to verify that. To my knowledge, it hasnt been an issue. I think what we have seen is that formula retailers tend to do promotional and they may park a truck in front of one of their stores of which they can get a oneday permit. I do think that area of formula retail especially if were looking at some of these models in relationship to virtual kitchens that are intending to be there and in parking lots on private property. I think the question for the Planning Department is formula retail now as you read it and read what triggers formula retail. Thats b to c businesses. Business to consumer not b to b. Those are some questions that i highly encourage and discussion for the commission to have with the Planning Department. To talk about if these entities end up being permanent, especially in the mobile food realm. Also in the virtual neighborho