1 STAFF REPORT
DATE: December 6, 2022
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director Via: Simone McFarland, Asst. Community Development Director BY: Mary Hamzoian, Economic Development Manager
SUBJECT: Adoption of a Resolution Amending Resolution 20 -29,161 Authorizing the Temporary Extension of the Outdoor Dining Program in Downtown Burbank Including Continued Use of Certain Street Parking for Dining and Extension of Related Outdoor Dining Permits and Agreements
RECOMMENDATION
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURBANK AMENDING RESOLUTION NO. 20 -29,161 AUTHORIZING THE EXTENSION TO DECEMBER 31, 202 3, OF THE CITY’S OUTDOOR DINING PROGRAM INCLUDING
CONTINUED USE OF CERTAIN STREET PARKING FOR DINING AND EXTENSION
OF OUTDOOR DINING PERMITS AND AGREEMENTS TO ALLEVIATE IMPACTS FROM THE COVID-19 PANDEMIC (Attachment 1).
BACKGROUND
Since March 2020, the restaurant sector was faced with multiple challenges as a result of the COVID-19 Pandemic (Pandemic) and related State and Local Health Orders , requiring closures, operational limitations and mask mandates. On May 19, 2020, City Council approved the Economic Recovery Plan, which included amongst other things strategies to support the local economy by allowing restaurants to operate outdoors in private parking lots as well as in-street dining.
In July 2020, City staff identified several ways to increase outdoor dining opportunities.
Resolution No. 20-29,161 (Attachment 2) was approved by the City Council on July 14 , 2020 and established a temporary expanded outdoor dining program (Program) in the City. Under the Program, the Public Works Director may authorize a restaurant to expand seats and tables into the public right-of-way beyond what is otherwise allowed in the City, including expansion beyond the public sidewalk fronting the restaurant. To participate in the Program, restaurants must file an application with the Public Works Department, and the Public Works Director may approve the application by executing an encroachment agreement or permit with the restaurant, subject to compliance with the Program
2 guidelines. In addition, Resolution No. 20-29,172 (Attachment 3) expanded the Program along four blocks of San Fernando Boulevard between Angeleno Avenue and Magnolia Boulevard (SFB Blocks) by allowing restaurants or bars with frontage on the SFB Blocks to seek a permit to expand outdoor dining into parking stalls on San Fernando Boulevard.
The Program was extended several times, most recently through December 31, 2022.
Eventually, nine temporary parklets were installed along San Fernando Boulevard and Palm Avenue to help restaurants facilitate outdoor dining. Once indoor dining resumed, the two dining parklets in front of Fuji -Ya Sushi, and Kopan Ramen/Shake Shack were removed.
Should City Council approve the recommendation to extend the in-street outdoor dining through December 31, 2023, a more permanent plan that discusses the longevity of the program will be brought back to City Council in January 2023 for further discussion as a part of the first phase of the Complete Streets Plan Implementation (also known as the San Fernando Reconfiguration Pilot Program).
DISCUSSION
Ongoing Economic Uncertainty
The devastating economic impacts of the Safer at Home Orders in effect since March 2020, are still being felt. According to the 2022 State of the Industry Report published by the National Restaurant Association1:
• More than half of restaurant operators said it would be a year or more before business conditions return to normal.
o Food, labor, and occupancy costs are expected to remain elevated, and continue to impact restaurant profit margins in 2022.
• Ninety-six percent of operators experienced supply delays or shortages of key food or beverage items in 2021, and these challenges were projected to continue in 2022.
Furthermore, the latest national statistics from The National Restaurant Association 2 report that:
• Restaurant industry sales in 2021 were down $65 billion from 2019's pre-Pandemic levels.
• More than 90,000 restaurant locations are temporarily or permanently closed because of the Pandemic.
• 9 in 10 restaurants have fewer than 50 employees.
• 7 in 10 restaurants are single-unit operations.
• Restaurants employ more minority managers than any other industry. • 41% of restaurant firms are owned by minorities – compared to 30% of businesses in the overall private sector.
Due to the instability of the restaurant industry during the past three years, many of the restaurants in Burbank still continue to face challenges with hiring and retaining staff ,
1 "2022 State of the Restaurant Industry" February 2022, https://restaurant.org/research-and- media/research/research-reports/state-of-the-industry/ (accessed August 1, 2022). 2 "Restaurant Industry Facts at a Glance" November 2022, https://restaurant.org/research-and- media/research/industry-statistics/national-statistics/ (accessed November 9, 2022).
3 inflation and supply chain issues, and loss of revenue from the daytime workforce population as some of the City’s largest employers are still offering hybrid in -office and work from home options.
In-Street Dining Survey Results
Since December 2020, when the in-street dining parklets were allowed to operate, staff has received positive feedback from both restaurants , businesses and visitors to Downtown Burbank, as patrons enjoy the alternative option of dining outside. In a 2021 survey of Downtown Burbank businesses, property owners, and residents, when asked if they preferred a complete closure of San Fernando B oulevard, a hybr id set up that allowed traffic flow and in -street dining parklets, or reverting back to the original format with traffic flow and no parklets, 52.6% of respondents agreed that a hybrid set up that allowed for traffic flow while supporting in -street dining parklets was the best option for Downtown Burbank, while another 35.1% wanted the streets reverted back to allow for maximum parking and 12.3% wanted the street completely closed.
Economic Development staff continues to work c losely with the Downtown Burbank Property Based Business Improvement District (PBID) and Public Works Department to allow businesses in Downtown the ability to install semi -permanent in-street dining parklets along San Fernando Boulevard. Over/Under Public House Restaurant located in Downtown Burbank recently pulled a permit to install a semi -permanent outdoor deck in their in -street dining parklet. The PBID has also approved the installation of semi - permanent decking in their two communal dining areas alon g San Fernando B oulevard as well.
FISCAL IMPACT
There are minimal costs t o the City to continue the Outdoor Dining Programs related to the review and processing of outdoor dining encroachment permits and/or agreements, and the inspection of installed outdoor dining areas in the public right -of-way. However, property owners and/or the tenant will incur the majority of the cost and shoulder the burden of installing and maintaining their sidewalk dining areas for the durat ion of the program(s).
CONCLUSION
On June 15 , 2022, the County formally decided to rescind most of the health protocols previously in effect as a result of the Pandemic , nevertheless restaurants continue to require support and opportunities for recovery. As restaurants continue to seek recovery and build resiliency, Burbank like its neighboring cities must do what it can to provide opportunities for these businesses to maintain their ability for outdoor dining. Without these measures in place, many restaurants do not have the ability to expand their outdoor dining. Continuing to allow for outdoor dining in public streets will not only help restaurants regain financial stability by enhancing their capacity, but it will also provide alternative dining options for patrons who are still cautious about in-door dining.
On May 19, 2020, the City Council approved the Economic Recovery Plan. Within the Plan were a number of actions that the City Council could take to help encourage economic recovery. One of these actions included allowing for streamlined processes for outdoor dining. Approval of this Resolution aligns with the actions in the City’s Economic
4 Recovery Plan. This is a time for the City to continue to be flexible in its requirements to reduce constraints and help our businesses survive.
ATTACHMENTS
Attachment 1 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURBANK AMENDING RESOLUTION NO. 20 -29,161 AUTHORIZ ING THE
EXTENSION TO DECEMBER 31, 202 3, OF THE CITY’S OUTDOOR
DINING PROGRAM INCLUDING CONTINUED USE OF CERTAIN
STREET PARKING FOR DINING AND EXTENSION OF OUTDOOR
DINING PERMITS AND AGREEMENTS TO ALLEVIATE IMPACTS
FROM THE COVID-19 PANDEMIC
Attachment 2 - Resolution 20-29,161
Attachment 3 Resolution 20-29,172
Attachment 4 - Resolution 24,927
Attachment 5 - Resolution 15-28,734
Attachment 6 - Proclamation of the Director of Emergency Services