STAFF REPORT
Meeting Date: May 16, 2023
To: Honorable Mayor & City Council
From: Timothea Tway, AICP, Director of Community Development Masa Alkire, AICP, City Planner
Cindy Gordon, AICP, Principal Planner
Chloe Chen, Senior Planner
Subject: Report on the OpenBH Code Changes and Fees Subcommittee Recommendations and Request for Direction on Permanent
OpenBH Program
Attachments: 1. Table 3. Summary of Potential Open Air Dining Fees and Costs
2. Handout for 3/14/2023 Open BH Subcommittee Meeting
and Survey
INTRODUCTION
In order to develop a permanent OpenBH program based on lessons learned from the temporary program that was launched during the Covid pandemic, the City Council established two City Council Ad Hoc Subcommittees: the Code Changes and Fees Subcommittee with Councilmembers Julian Gold and Lester Friedman, and the Design and Operation Subcommittee, with Councilmembers Lili Bosse and Sharona Nazarian.
The Code Changes and Fees Subcommittee is focused on the crafting of the permanent regulations and fees that will apply to those businesses participating in the permanent OpenBH program, while the Design and Operation Subcommittee is primarily focused on developing standards for parklet design and approval. This report provides an update from the Code Changes and Fees Subcommittee’s progress and recommendations regarding the permanent OpenBH program regulations and fees and seeks direction that will help staff move forward with the development of a draft ordinance that reflects these discussions.
The Code Changes and Fees Subcommittee has met on six occasions (November 29, 2021; January 26, 2022; March 2, 2022; April 4, 2022; May 5, 2022, and March 14, 2023) to review the existing open air dining regulations and determine if changes to code requirements, lease fees, and/or the approval process are necessary or desired. The Subcommittee considered several questions to guide discussions regarding potential changes to the City’s permanent open air dining program. These prior discussions were framed by the following questions:
• What type, how much, and where should outdoor dining be allowed in the city? • What is the appropriate relationship between indoor and outdoor dining? Meeting Date: May 16, 2023
• What are the appropriate sidewalk clearances between outdoor dining and obstructions in the public right-of-way (e.g., parking meters, utility boxes, etc.)? • Is there support for a ministerial or by-right (i.e., non-discretionary) approval process?
• What are the appropriate lease fees for outdoor dining on sidewalks and in parklets?
• Given the limitations on parking requirements per Assembly Bill (AB) 2097, should the City look at regulating patio dining on private property, such as in areas that were previously used for parking?
There has been broad support from restaurant owners and the City Council for updating the code requirements and approval process for permanent outdoor dining to create an easier and more efficient process. A summary of the Subcommittee recommended changes are outlined in this report. City staff plans to prepare an ordinance based on the supported changes to the code requirements and fees for the permanent OpenBH program. However, there were a few topics discussed at the most recent Subcommittee meeting that should be discussed by the full City Council to provide staff clearer direction in moving forward with drafting revised regulations. Staff requests that the Council provide this direction and their consensus on the currently proposed regulations, after which staff will prepare the draft ordinance and present it to both the Planning Commission and the full City Council at future public hearings.
DISCUSSION
This section provides an overview of the consensus reached by the Subcommittee at their last meeting on March 14, 2023, as well as the remaining topics they wished to discuss with the full City Council. The following topics were discussed by the Subcommittee, and they concluded that they were in support of these topics as presented. This information is for the Council’s reference and convenience, and staff would also like the City Council to articulate whether they support the proposed regulations as written, or if any changes should be made to these in the future draft ordinance.
Development Standards and Program Implementation for Open Air Dining The Subcommittee generally supported the proposed standards for open air dining that are summarized below. The proposed standards reflect the Subcommittee’s guidance for drafting revised open air dining regulations and a ministerial review process for certain outdoor dining configurations that meet specific standards. Specifically, the Subcommittee aimed to create standards that would allow for a more streamlined City approval process that provides more flexibility for businesses while also maintaining the safety and use of the public right-of-way areas by pedestrians. The Subcommittee’s recommendations regarding updated regulations are summarized as follows:
Location of Dining
• Current regulation: open air dining must be fully located immediately adjacent to the associated restaurant, and shall not extend beyond the building frontage.
• Proposed regulation: open air dining shall be located on the public right-ofway areas that are directly adjacent to the restaurant façade, but could extend beyond the restaurant façade in some cases. As proposed by the Meeting Date: May 16, 2023
Subcommittee, in certain cases, open air dining would be able to extend beyond the façade of the restaurant that it serves. The restaurant owner would be required to show proof of written permission from adjacent property owners and tenants in order to expand dining in front of adjacent spaces. If the permission is revoked by any party for any reason, the restaurant owner would be required to remove the open air dining from this area within 60 days and notify the City in order to amend their approval documents, which at minimum would include architectural plans and the encroachment agreement, to reflect the change. Any railings installed around open air dining located beyond the façade of the restaurant would be required to be movable and not affixed to the sidewalk.
Parking
• Current regulation: there is no parking required for open air dining located on public property and on privately owned portions of the Robertson Boulevard sidewalk. For open air dining located on private property, the same parking requirement shall apply as the indoor dining areas that are operated in conjunction with the outdoor dining.
• Proposed regulation: No additional parking for open air dining on private property as long as the open air dining is within the first 40 feet from the sidewalk
Note: Due to recent changes in state law (AB 2097), which preempts local agencies from imposing or enforcing parking requirements for properties that are located within ½ mile of a major transit stop, this standard would not apply to a majority of commercial properties. Rather, it would only apply to most properties along Olympic Boulevard and a small number of properties on North Robertson Boulevard. Accordingly, given its limited applicability, the Council may wish to consider whether this standard should be incorporated into the new regulations.
Path of Travel
• Current regulation: a minimum five-foot wide path of travel must be maintained at all times, and all open air dining areas shall be set back at least five feet from the edge of the curb and any fixed obstruction (e.g. parking meters, street trees, etc.)
• Proposed regulation: require a minimum six-foot path of travel on sidewalk for pedestrians, but allow for discretionary review if an applicant can only provide a five-foot path of travel. In addition, the City will create a unique process for existing applicants who wish to retain their five-foot path of travel that has already been established.
Umbrella and Barrier Standards
• Current regulation: umbrellas must have a minimum of seven-foot clearance from the lowest point of the umbrella to the ground, and shall be located completely within the open air dining areas. If alcohol is served in the open air dining area, a barrier to enclose the area is required (per Alcoholic Beverage Control (ABC) requirements).
Meeting Date: May 16, 2023
• Proposed regulation: require that umbrellas are integrated into railings and barriers, with the exception that free-standing umbrellas are permitted when it is not feasible to integrate them into barriers. Umbrella bases would be prohibited from being located outside the open air dining area, and barriers for open air dining installations serving more than eight persons would be required.
Approval Process for Open Air Dining
• Current regulation: the Director of Community Development shall approve open air dining permits (at the staff level), unless the open air dining area will be serving more than twelve persons and is located on private property within 170 feet of an R-1 or R-4 zone, in which case the Planning Commission shall review and approve the open air dining permit. In addition, if the open air dining permit request is submitted with another discretionary application request that requires Planning Commission or City Council review for the same site, the Planning Commission or City Council shall review the request. • Proposed regulation: create a process whereby the majority of open air dining cases may be approved ministerially (without discretionary review), upon meeting the following standards:
1. The dining may not extend beyond the façade of the restaurant that it serves;
2. The open air dining area must be smaller than 50% of the indoor square footage of the restaurant that it serves;
3. If the open air dining is on private property, it must be located farther than 100’ from residentially zoned property (excluding mixed use zones, and existing mixed use developments);
4. If the open air dining is on public property, it must be located in the Business Triangle or limited to South Beverly Drive, Wilshire Boulevard, Olympic Boulevard, Robertson Boulevard, San Vicente Boulevard, South Santa Monica Boulevard, and La Cienega Boulevard;
5. If the open air dining is located within a commercial-residential transition zone, it may not operate during “extended hours” (extended hours are anything after 10:00 PM and before 7:00 AM on a weekday or 9:00 AM on a weekend or holiday); and
6. The open air dining does not interfere with public utilities. • Projects that do not meet these standards would require discretionary review by the Director of Community Development and potentially the Planning Commission under certain circumstances.
• After issuance of any open air dining permit, the Director of Community Development will be able to review open air dining installations that are found to be problematic or operating in a manner not consistent with approvals.
Meeting Date: May 16, 2023
Renewal of Permit
• Current regulation: open air dining permits are valid for a period of five years and may be renewed for one additional five-year period on the same terms and conditions as set forth in the original approval. • Proposed regulation: Open air dining permits will be required to be renewed every five years after the initial permit issuance, with no limit on the number of times a permit may be renewed; current regulations limit renewals to one additional five-year period. Maintaining the renewal requirement would allow the City to periodically review the permit, the operation of the dining space, and the regulations to see if any regulations have changed in a way that would impact the open air dining.
Staff is requesting that the City Council indicate whether they approve of the general concepts and proposed open air dining regulations at this time, and staff will prepare a draft ordinance with further details and present it to the Planning Commission and City Council for final approval.
Fees
At the March 14, 2023 meeting, the Subcommittee reviewed the proposed fees for sidewalk and street leasing for the use of the public right-of-way for open air dining. The new proposed fee system provides different fees for open air dining located on the public sidewalk adjacent to the restaurant and dining located in a parklet on the street, and provides different fee rates based on the area of the City in which the dining area is located. In general, the idea behind a tiered fee system is that the lease fee should be assessed in a manner that is commensurate with the location’s foot traffic and demand.
This means that in general locations with higher demand will be assessed a slightly higher lease fee, while streets with lower rental rates and demand that may be more often occupied by small business owners, will be assessed slightly lower lease fees.
The currently proposed tiered fee schedule for sidewalk and street lease fees that has been previously supported by the Subcommittee is provided in Table 1. This table shows the newly proposed lease fees for the use of the public right-of-way on either the sidewalk or street adjacent to a restaurant.
Table 1. Proposed Sidewalk and Street Lease Tier Fee Schedule Tier Applicable Streets in Each Tier
Sidewalk Dining
(per square
foot/month)
Parklet Dining (per
square foot/month)
Tier 1
North Rodeo Drive
North Cañon Drive
North Beverly Drive
Beverly Cañon
Gardens
$1.75 $2.00
Tier 2
Other streets in the Business Triangle
South Beverly Drive $1.50 $1.75
Tier 3* All other streets not listed in Tier 1 or Tier 2: $1.00 $1.50 *Parklets may not be permitted on these streets due to specific speed and safety restrictions being developed by the other OpenBH Subcommittee. Once determined, this section may include a reference to that determination.
Meeting Date: May 16, 2023
Table 2 is being provided for reference and comparison purposes, as it shows a broad overview of the existing open air dining fees in the City’s fee schedule versus proposed fees. In addition, this table provides a more comprehensive picture of the scope of fees that could apply to an open air dining application. Table 2 also helps to highlight which fees are proposed to be changed as a result of the Subcommittee’s efforts or are newly proposed fees that would apply to the program moving forward, as these changes are all shown in red text. As shown, the main change to the existing fee is to the sidewalk lease fee, which is an existing fee for open air dining, and the newly proposed fees are the street (parklet) lease fee, parklet encroachment bond fee, and a ministerial review fee for the new open air dining process that will be implemented with the permanent OpenBH program.
Table 2. Comparison of Existing and Proposed Fees and Costs for Open Air Dining Type of Fee Existing Fees Proposed Fees
Open Air Dining
Application Fee
Commission Discretionary Review - $5,236 No change from existing Staff Discretionary Review - $2,948 No change from existing Ministerial Review – N/A To be determined
Sidewalk Bond Filing Fee - $819 No change from existing Permitting Fees
Sewer Fee – assessed per net new chair No change from existing This is a pass through fee1
Encroachment Bond – assessed per area of
encroachment
Sidewalks: no change from existing
Parklets: may add an encroachment
bond for parklet dining – to be
determined
Plan Review and Permitting Fees –
assessed per valuation and staff review No change from existing3 Sidewalk Dining
Lease Fee
Sidewalk with barrier - $1.64
Sidewalk without barrier - $1.13
(per SF, per month)
Tier 1 - $1.75
Tier 2 - $1.50
Tier 3 - $1.00
(per SF/month)
Parklet Dining
Lease Fee N/A
Tier 1 - $2.00
Tier 2 - $1.75
Tier 3 - $1.50
(per SF/month)
Lost Meter
Revenue N/A $280 - $310 (per month per meter
depending on location of meter)
Architectural
Review Fee Director or Restaurant Subcommittee Review
- $425
OR
Architectural Commission2 - $4,956
No change from existing
1 The sewer fee is a one-time fee required by LA Sanitation and is assessed per net new chair and type of restaurant. 2 Architectural Review for open air dining areas involving minor physical improvements can be approved by the Director. Open air dining area with more extensive areas would be reviewed by the Architectural Commission’s Restaurant Subcommittee for a determination as to whether the project is minor and can be approved by the Director. If the subcommittee finds the scope of the review as too extensive to be considered minor then review by the Architectural Commission is required and the commission review fee is required.
Meeting Date: May 16, 2023
3Depending on the scope of the project, a one-time plan check fee would also be assessed to cover the cost of staff time spent reviewing any associated plans. It is likely that a minimum 2-hour plan check fee would be assessed as a basic fee, with additional plan check fees assessed as needed. Additionally, there are likely to be new parklet-specific fees related to plan check, inspections, and encroachment bonds. *Fees being modified and/or established as part of the permanent open air dining program are in red.
The OpenBH Design and Operating Standards Subcommittee is continuing their discussion on parklet design and operating standards, and the parklet-specific fees have not been established but will likely be considered once the parklet guidelines are finalized. However, the Subcommittee reviewed a fee summary that is included in Attachment 1, which provides an overview of all of the fees that could apply to Open Air Dining approvals, and acknowledged that some fees are yet to be determined by staff or are dependent upon the conclusions of the other Ad Hoc Subcommittee. This fee summary is also being provided for the public’s reference to estimate the total amount of fees that they may need to pay for an Open Air Dining approval.
Staff is requesting that the City Council provide their concurrence with the proposed changes to the lease fees pending a public hearing or provide further direction as appropriate.
Topics for Further Discussion and Direction
During the Subcommittee’s discussion, several topics arose that the Subcommittee felt warranted further discussion, and a summary of these topics are provided below. Staff requests that the Council discuss and provide direction on these topics, to inform the draft ordinance that will be developed to implement the permanent OpenBH program.
Several questions are provided at the end of this discussion, which will help frame the City Council’s conversation.
Topic 1: Open Air Dining on Private Property and Assembly Bill (AB 2097) As discussed at the last Subcommittee meeting, AB 2097 preempts cities from imposing or enforcing parking requirements for all commercial projects, including open air dining, that are located within ½ mile of a major transit stop. The ½ mile proximity standard covers a majority of commercial properties in the city, including the entirety of the Business Triangle. The commercial areas not subject to AB 2097 are a majority of the properties along Olympic Boulevard and a small number of properties on North Robertson Boulevard.
As noted in the Development Regulations section above, the Subcommittee previously identified that permanent open air dining on private property should be exempted from providing additional parking, so long as the dining area is located within the first 40’ of a property from the sidewalk. AB 2097 preempts this potential standard for the majority of commercial properties in the city and prevents the City from requiring additional parking regardless of the location of the additional outdoor dining area on a property. It should be noted that prior to State law changes, a majority of the patio-style dining that has been permitted on private parking lots either in front, behind, or beside a restaurant through the OpenBH program would have been difficult to establish on a permanent basis due to parking requirements. However, given the State law changes described above, AB 2097 removes one of the primary barrier that would have otherwise precluded a restaurant owner from seeking to establish open air dining within an existing parking area.
As a result of AB 2097, restaurant operators may more easily implement patio-style dining areas on existing private parking lots as they would not be subject to parking requirements. However the City could still require some level of discretionary review for Meeting Date: May 16, 2023
open air dining on private property, particularly in situations where a proposed dining area is in close proximity to residentially zoned properties. This discretionary process could include Planning Commission review if the open air dining is associated with a request to operate during extended hours, or through the City’s architectural review process. Additionally, the City’s existing open air dining standards require discretionary review for any open air dining on private property that serves more than 12 people and is located within 170’ of a residentially zoned property. The discussion at the last Subcommittee meeting noted that the City Council may wish to impose development standards on open air patios located on private property, such as surface parking lots, in order to ensure that these dining areas do not result in adverse impacts to surrounding properties or businesses. In contemplating potential regulations for these areas, the Council may wish to consider that there are existing regulations that may already apply to some of these areas as shown below, and that they may wish to create similar limitations for private property open air dining areas.
The City does have existing regulations that could be used as a guide to develop regulations for open air dining patios on private property such as the requirement for setbacks and landscaping between commercial and residential uses, operational standards that regulate certain activities such as loading, trash storage, operational hours and loitering. Further, Architectural Review could be required for any dining, including dining that is located in a patio that is visible from a street or alley.
Topic 2: Other Types of OpenBH Approvals
Although the Subcommittee did not discuss this in detail, staff also requests that the City Council provide direction regarding how to treat other types of non-dining uses that were permitted to use the public right-of-way through the temporary OpenBH program. The Subcommittee’s discussions were primarily regarding open air dining, and not uses unrelated to dining. Examples of non-dining uses currently approved through the temporary OpenBH program include: the use of sidewalk space outside retail stores for queues to enter the store (often with the use of movable stanchions), the use of outdoor space by hair salons to provide services outdoors, and the use of outdoor space by religious institutions. Currently, there are eight retail stores, two hair salons, and one religious congregation that are participating in the OpenBH temporary program. If the City does not change its regulations, then once the temporary OpenBH program ends, these businesses will no longer be allowed to utilize the public right-of-way for these non-dining uses.
Questions for Direction
Staff requests that the City Council provide direction on the following items related to the above topics, so that staff may incorporate such direction into a draft ordinance that will be presented to the Planning Commission for review. After the Planning Commission’s review of the draft ordinance, staff will bring the final version of the ordinance to the City Council for review and adoption. As such, staff requests direction on the following:
• Is the City Council generally supportive of the code and fee changes outlined on pages 3 through 5 of this report?
• Should the City develop further restrictions for open air dining on private property that is not located adjacent to the street frontage, such as on a back patio? o Although there are existing code regulations (Commercial-Residential Transition and Architectural Review regulations) that may apply to certain open air dining configurations on private property patios, staff would like Meeting Date: May 16, 2023
to know whether further regulations are desired. Additional restrictions could include limitations on the types of improvements allowed, such as only limiting these areas to the use of movable furniture, and no permanent improvements, which could more easily allow the re-use of these areas by another tenant in the future.
• Should any of the non-dining types of uses (salons, congregations) be allowed to be approved under the permanent OpenBH program regulations? o If the City Council does want to allow these uses, what regulations should apply to these? What is the timeframe for these uses to obtain approval under the permanent OpenBH program?
• Should staff still be accepting any new OpenBH applications under the temporary program, which is set to expire on September 30, 2023?
PUBLIC OUTREACH AND NOTIFICATION
In preparation for the May 16, 2023 City Council meeting, staff provided notice to the OpenBH participant and interested parties list to make them aware that this report would be provided to the City Council.
At the Subcommittee meeting on May 5, 2022, staff was directed to conduct public outreach to restaurant owners/operators to gauge feedback on the proposed lease fee structure. Staff prepared an informational handout (Attachment 2) and an online survey opportunity in order to solicit feedback on the proposed changes. Additionally, City staff undertook an extensive public outreach campaign in order to provide information on the proposed lease fee structure, highlight and encourage participation in the online survey, and provide details on the March 14 Subcommittee meeting. This information was provided through a variety of means that included the following:
• In-person outreach meetings to all 29 parklet owners in January/February 2023; • Hand-delivered notice to all restaurants in the city in January/February 2023; • Verbal mention at the Beverly Hills Chamber of Commerce Government Affairs Meeting on February 16, 2023;
• Social media post on the City’s Instagram account on February 17, 2023; • Direct email to all OpenBH participants on February 21, 2023 and March 2, 2023; • Half-page newspaper notice in the Beverly Hills Courier on February 17, 2023 and in the Beverly Hills Weekly on February 23, 2023;
• Spotlight in the Beverly Hills Chamber newsletter on February 27, 2023.
The following provides a summary of the comments and/or concerns received from restaurant owners/operators.
In-Person Meetings
• Most businesses understood that there would be some fees for the use of the City’s public right-of-way but expressed concern about the uncertainty and lead time for implementation of such fees. Many businesses noted that the City should be aware that fees affect each business differently (e.g., businesses in the Business Triangle vs. businesses on South Beverly Drive/Robertson Boulevard/La Cienega are different in scale, revenue, and size; a sit-down restaurant, fast casual restaurant, and pastry or coffee shop may all have Meeting Date: May 16, 2023
different needs, different amount of use of the parklet or sidewalk dining, and different levels of affordability).
• Many businesses wanted to know the full picture of what fees would be applied for permanent open air dining configurations. Confusion about what fees have been paid already and what fees will or will not be assessed. • Requested the City provide ample noticing and lead time before implementation of new fees and regulations, especially if such changes are significant. • Interest to have the City bundle as many fees together as possible, and provide flexibility in terms of payment intervals (i.e., some businesses want yearly payments and others want quarterly payments of lease fees). • Concern that additional fees will be assessed when many businesses have already made significant investments in their open air dining configurations (both on the sidewalk and in parklets) and interest in knowing if there is a way for the City to incorporate or account for the expenses already paid. • Questions regarding grandfathering in or waiving some fees for those already in the OpenBH program vs those that join after the new program is in effect. • Businesses don’t want to have to modify previously approved open air dining layouts and parklets that have already been reviewed and approved through the City’s discretionary process just to get a new parklet permitted. Some businesses are concerned that they may have pre-existing nonconforming open air dining configurations that would no longer be allowed if they have to go through the review process again in order to permit a parklet or open air dining. • Some businesses had never been part of the City’s pre-existing open air dining program and were discovered during the pandemic and enveloped in to OpenBH as a stop gap and expressed concerns about what the transfer would look like for them.
Online Survey
Staff also prepared an online survey to request feedback from restaurant owners and operators regarding factors that may affect into their decision to have sidewalk or parklet dining, and regarding the proposed lease fees for such dining. Staff advertised this survey in multiple ways, as described in the preceding section. The survey was available starting January 26, 2023, and was closed for responses on March 7, 2023, resulting in a total of 24 responses. Although the majority of respondents did not provide very detailed responses, many noted that the main factors that would influence their decision whether or not to include open air dining or a parklet were the associated permitting costs and time required to get this approved and installed. While some respondents were supportive of the proposed fee structure as-is, one respondent suggested that the lease fees should include the lost meter revenue fee as well, and a few respondents noted that they would likely remove their outdoor dining if a fee is required. One reason noted for potentially removing open air dining was that the business (located on Robertson Boulevard) mostly provides delivery and take-out food services, and so they would not see the benefit of paying for open air dining. In addition, one response suggested that the fees were adjusted based on the income of the restaurant, since they felt there can be a wide range in the amount of income received by restaurants, even if they are on the same street.
The majority of respondents did not provide additional suggestions or feedback on the standards and regulations that would apply to open air dining, however, one respondent noted that closing the streets for pedestrians-only on the weekends could help foster business, and some noted concerns about maintenance, cleaning, and security in open Meeting Date: May 16, 2023
air dining areas. Another respondent noted that specifically in the South Beverly Drive area, businesses may not be doing well enough to pay for open air dining, and have ongoing concerns related to crime and the homeless population in the area. In addition, one respondent requested that the food pickup loading spaces remain for the foreseeable future, as these are helpful for their delivery services.
Public Comment
At the last Subcommittee meeting, some members of the public inquired whether the sewer fee was a one-time fee, and whether this fee was duplicative of the water usage fees that are already assessed. Staff present at the meeting clarified that the sewer fee is a one-time pass-through fee that is collected by the City, but passed along to the City of Los Angeles Sanitation and Environment Department, and that the sewer fee is a separate fee from a water usage fee because it is considered a wastewater fee. No other public comments were submitted in response to the notification provided to the interested parties list ahead of the May 16, 2023 City Council meeting.
FISCAL IMPACT
There is no anticipated fiscal impact to be considered at this time. The proposed fees that will apply to the permanent OpenBH program will be cost-recovery fees for staff time and resources used to process the open air dining approval. It should be noted that the City Council has previously decided the current temporary no-fee OpenBH program is extended to September 30, 2023. Similarly, the current Open Air Dining program has not been charging annual lease fees at the direction of the City Council to keep the two programs in parity. Application fees for the City’s existing Open Air Dining program were continued to be paid by new and renewing applicants during the last three years.
RECOMMENDATION
Staff recommends that the City Council receive the report on the progress and current recommendations from the OpenBH Code Changes and Fees Subcommittee Subcommittee, and provide direction on the proposed regulations for the permanent open air dining program. Specifically, staff is requesting that the City Council review the Subcommittee recommendations for code and fee changes and direct staff to work with the Planning Commission to develop an ordinance memorializing the proposed changes.
This ordinance will ultimately return to the City Council for final review and approval. In addition, staff is requesting direction from the Council on regulations for private property patio dining and non-dining uses that were installed as part of the temporary OpenBH program.
NEXT STEPS
Staff requests that the City Council review the Subcommittee’s recommendations, and determine whether they concur with these recommendations. Further, staff requests that the City Council discuss and provide direction on the questions that are still outstanding from the Subcommittee’s discussions (listed on pages 9 and 10 of this report). Once there is a clear consensus on the proposed code changes and fees, staff will prepare a separate discussion for the City Council related to the implementation of the proposed new regulations, including the timing for when such changes will apply to participants in the temporary OpenBH program and when approval under the permanent OpenBH program will be required.
Meeting Date: May 16, 2023
Once staff receives feedback and a consensus from the City Council on these items, staff will start to prepare a draft ordinance for the Planning Commission’s review at a public hearing. After the Planning Commission has reviewed the draft ordinance, it will be presented to the City Council at a public hearing for final review and adoption. The temporary OpenBH program is set to expire on September 30, 2023, and as such, staff is aiming to adopt the permanent OpenBH program ordinance so it becomes effective before this date.
Timothea Tway, AICP,
Director of Community Development
Approved By
Attachment 1
Table 3. Summary of Potential Open Air
Dining Fees and Costs
Table 3. Summary of Potential Open Air Dining Fees and Costs General Fees One-Time Fees
Open Air Dining Application Fee
Please note these are the base fees established by the
City, there may be additional surcharges that are
applicable to all applications.
Commission-level (discretionary): $5,236.00
-orStaff-level (discretionary): $2,948.00
-orMinisterial (by-right): To be determined
Sidewalk Encroachment Bond + Application Fee
This fee only applies to open air dining on the public
sidewalk withl a railing or barrier installed into the sidewalk.
The application fee is not refundable; however, the bond is eligible to be refunded when the street is restored/repaired to the original condition - after conditions are approved by City inspector.
Application fee: $819.00
Encroachment Bond:
Length of outdoor dining area multiplied by the
width of sidewalk (Property Line [PL] to curb)
multiplied by $30.00, rounded to the nearest
thousand
Sewer Fee
LA Sanitation required one-time fee per chair & type of restaurant
$200-$300 multiplied by # of net new chairs
Sidewalk Dining Fees Recurring Fees (monthly)
Sidewalk Dining Lease Fee
Based on location of dining (see table 1 for tiers)
Tier 1: $1.75
Tier 2: $1.50
Tier 3: $1.00
(per square foot per month)
Parklet Dining Lease Fees Recurring Fees (monthly)
Lost Meter Revenue From Parklet Fee
*Meter rates vary throughout the city. Approximate parking meter revenue loss calculated from 27 existing parklets using a combined 76 meters between S. Beverly Drive & the Business Triangle combined.
$280 - $310 per month per meter based on location
of meter
Parklet Dining Lease Fee
Based on location of dining (see table 1 for tiers)
Tier 1: $2.00
Tier 2: $1.75
Tier 3: $1.50
(per square foot per month)
Attachment 2
Handout for 3/14/2023 Open BH
Subcommittee Meeting and Survey
Dear Beverly Hills Restaurant Owner/Operator,
The City of Beverly Hills is developing permanent regulations for open air dining and parklets in the city. City Council ad hoc committees are currently discussing potential changes to the existing regulations for permanent open air dining, adoption of regulations for parklets, and potential changes to fees for the rental of public sidewalk space that is used for open air dining and new fees for parklet dining. These regulations and fees are still being developed and are anticipated to become effective by September 30, 2023, or a date determined by the City Council.
WE NEED YOUR INPUT!
At this time, the City is inviting you to complete an online survey specifically for restaurant/cafe owners and operators about these potential changes to gather your valuable input. The survey can be found online at www.surveymonkey.com/r/openBH. Input from restaurant/cafe owners and operators like you is crucial as the City moves forward in this effort.
A City Council ad hoc committee meeting will be held on Tuesday, March 14 at 3:00 PM in Room 280A on the Second Floor of City Hall. You are encouraged to attend, either in person or virtually (via Zoom), and provide input on the potential fee structure, which is summarized below. Please refer to the end of this notice for meeting location details and virtual meeting login information.
PROPOSED FEE STRUCTURE CHANGES FOR PERMANENT OPENBH PROGRAM In addition to process changes and regulatory changes to open air dining, the City is considering changing the existing fee structure for permanent open air dining and creating a fee structure for parklet dining. Currently, open air dining operators pay the following fees for the use of the public sidewalk:
Open air dining area with a railing/barrier = $1.64 per square foot/month Open air dining area without a railing/barrier = $1.13 per square foot/month The proposed fee structure would be a tier-based structure depending on the location of the business in the city, and whether the outdoor dining area is proposed within a parklet (dining that occurs on platforms located in the street) or proposed on sidewalk. The proposed fees for each tier would be as follows:
Tier Applicable Streets in Each Tier
Sidewalk Dining
(per square
foot/month)
Parklet Dining
(per square
foot/month)
Tier 1
North Rodeo Drive
North Cañon Drive
North Beverly Drive
Beverly Cañon Gardens
$1.75 $2.00
Tier 2 Other streets in the Business Triangle
South Beverly Drive $1.50 $1.75
Tier 3
Robertson Boulevard
Olympic Boulevard
La Cienega Boulevard
Wilshire Boulevard
South Santa Monica Boulevard (only that portion located outside of the Business Triangle)
$1.00 $1.50
The proposed fees are only for the use of public space (e.g., sidewalk area or a metered parking space) that would be converted to open air dining; the fees outlined above would not be assessed for any open air dining that occurs on private property. It should be noted that there may be additional fees associated with an application and installation of a sidewalk or parklet dining configuration, such as a substantial charge for the Los Angeles Amalgamated System Sewer Facility Charge that is based on a net increase in chairs.
If a parklet is using an area that is a metered parking space, the parklet operator will be responsible for paying all or a portion of the lost meter revenue to the City.
Please note, these potential regulatory and fee changes are still in development and will require final adoption by the City Council at a future date. Nothing has been approved at this point. The intent of this notice is to provide preliminary information and invite you to participate in a survey to gather input.
Please share your input! The survey can be found online at www.surveymonkey.com/r/openBH.
VISIT OUR WEBPAGE FOR UP-TO-DATE INFORMATION
For more information on this effort, including the effort to develop regulations and designs for parklets in the city, please visit www.beverlyhills.org/openbh. This webpage has all staff reports and public notices for upcoming ad hoc committee and City Council meetings on the topic, in addition to other pertinent documents or information, such as prior meeting recordings.
IF YOU ARE CURRENTLY PARTICIPATING IN OPENBH
The proposed changes being discussed by the City are for the permanent outdoor dining regulations and fees.
If you are currently participating in the OpenBH Program, nothing is changing at this time and the program is currently approved by City Council to run through September 30, 2023. You are responsible for ensuring that you have a valid OpenBH permit to participate in the program by renewing your permit every 90 days. However, it is a great time to start thinking about whether you are interested in making your OpenBH dining area permanent when the program ends. To learn more, visit the webpage and take the survey about permanent regulations.
CITY COUNCIL AD HOC COMMITTEE – PARTICIPATION DETAILS
The ad hoc committee meeting will be held on Tuesday, March 14 at 3:00 PM in Room 280A on the Second Floor of City Hall and you are encouraged to attend, either in-person or virtually, to provide your input on the topic! Please see below for information on the in-person meeting location, as well as log in information for those interested in participating virtually.
In Person Participation Virtual Participation
Beverly Hills City Hall
Room 280A, Second Floor
455 North Rexford Drive
Beverly Hills, CA 90210
Public parking is available in nearby City parking structures located at 450 North Rexford Drive and 450 North Crescent Drive. https://beverlyhills-org.zoom.us/my/committee
Meeting ID: 516 191 2424
Passcode: 90210
+1 669 900 9128 US
+1 833 548 0282 (Toll-Free)
QUESTIONS?
If you have additional questions or comments or would like to be added to the interested parties list for future updates, please contact [email protected].
Thank you,
The OpenBH Team
City of Beverly Hills
455 North Rexford Drive
Beverly Hills, CA 90210
www.beverlyhills.org