San Fernando council pauses June outdoor market after business owners, unions raise contracting concerns

Dozens of small-business owners and union representatives told the San Fernando City Council they oppose outsourcing public-works tasks for city-sponsored outdoor markets, saying private contractors would hurt local jobs and public safety.

The council heard detailed public comments and a staff explanation of the city’s special-events and cosponsorship practices after the agenda item on small-business and employee concerns. Councilmember Victoria Garcia asked whether city approval of the June outdoor market also authorized contracting out public-works services; staff said that special events that are not produced by the city are permitted under the special-events process and may either provide their own traffic-management plans or opt to use city services, reimbursing the city for staff time.

The concern drew speakers from two unions and a business representative. Charles Leon, coordinator for SEIU Local 721, told the council: “When the city begins to contract out these services, it risks losing oversight and control over the quality and reliability of the work that is performed.” He said services already contracted out include “water and backflow testing” and warned privatization could set a precedent for more functions to be outsourced.

Ryan Murillo, SEIU Local 721 local union representative, cited the city’s memorandum of understanding and said the MOU “requires the city to meet and confer with our union before any contracts are considered or signed.” He asked that the city “come to the table and meet with us before any contracts are signed.”

Lupita Gonzales, who said she represents about 20 downtown businesses, told the council those merchants had lost money during prior markets and urged officials not to hold the market in June. Gonzales said she submitted “20 signatures of business owners” and documents alleging four years of losses; she told the council local businesses “are even talking about not renewing their licenses.”

City staff and councilmembers discussed the distinction between a city-run event and a cosponsored special event. City attorney/staff described cosponsorship as a level above a special-event permit, permitting use of city social media and sometimes fee waivers. Staff said third-party producers such as MyValleyPass handle event contracts and typically require about 45 days to produce an outdoor market. Councilmember Garcia and staff confirmed in the meeting record that the city received correspondence before the session notifying staff that the June market was canceled.

Council and staff directed that the issue be referred back to the ad hoc committee reviewing the mall memorandum of understanding and that the ad hoc refocus on the MOU’s services and special-events provisions now that the immediate June market was not proceeding. City staff told council the ad hoc originally had been formed to review the mall MOU and that special events was a subsection of that work; staff said, in effect, the ad hoc could resume its broader MOU review rather than only address the imminent outdoor markets.

Councilmembers raised related operating questions: Vice Mayor Salodio asked staff to confirm last year’s activity and was told there were 10 street-closure markets last year and that city staff were present at those events; she and others noted that if the city discontinues cosponsorship then city staff would not be assigned to market setups and their overtime hours could be repurposed to other public-works needs. Councilmember Garcia asked staff to produce a list of businesses that had obtained temporary business licenses so the council could evaluate how many participating vendors are San Fernando businesses.

Councilmembers asked the ad hoc to consider whether plazas or areas in front of City Hall might better host future markets, whether the city should prioritize using public-works staff for city-sponsored events, and whether the downtown mall’s payment of a special tax (a fund the mall association may draw on, described in materials as roughly $200,000) creates a participation/fee dynamic that disadvantages adjacent local shops.

What’s next: Staff said the June market was canceled and recommended returning the issue to the ad hoc committee to review the mall MOU, special-events processes, and the options for keeping event work in-house. The council did not take a formal vote on a policy change during this meeting; the record shows direction to the ad hoc and requests for follow-up information, including the temporary-business-license list and the mall MOU documents.

Ending: Councilmembers emphasized balanced treatment of local businesses and public employees and asked staff to return with documentation and options. The ad hoc committee will resume consideration of the mall MOU and the special-events provisions that govern when city staff must be used and how cosponsorship operates.