City Council – June 21, 2022
Standard Outdoor Dining Guidelines & Lease Rate Update andWalk On Wilshire Pilot Bike Lane 1 Need for Update
March 15, 2022 – Council provided direction to extend temporary outdoor dining until June 13th for businesses expressing interest in pursuing a standard outdoor dining encroachment agreement. Temporary permits would be extended further, to September 30th for businesses submitting applications by June 13th (excluding WOW).
Nine (9) businesses signed affidavits expressing interest and willingness to pay a monthly lease for use of public land, effective April 1, 2022.
The 2012 program Guidelines required an update to processes, procedures, applications, and agreements for businesses pursuing standard encroachment.
Council also directed staff to revisit the lease rates and suggested businesses be charged current market rates for use of public land. 2 Outdoor Dining Guidelines Update
Minor updates include:
Application requirements
Application form, including applicable fees
Letter of authorization from applicant's landlord
Application Review Process
Additional information on protocol when applicant is requesting use of City owned paid parking lots/stalls Removal of fee & lease rates; to be included in fee schedule Updated Encroachment Agreement
Operational Requirements
Design criteria, minor changes based on new Federal, State, and local requirements 3 Outdoor Dining Guidelines Update, cont.
Parking Lots
Clarifies legislative body approval
Parking Lots #1 and #2
Board of Parking Place
All other areas
City Council
Requires lessee to pay the lost revenue in area with a paid parking program in addition to lease rates 4 Lease Rate Update
2011, staff recommended a monthly lease rate of 75% market value = $1.34/sf/month 2/2012, Council directed staff to reduce to 50% of market value = $0.90/sf/month 5/2012, Council approved a tiered rate schedule base on liquor sales:
No liquor: $0.30/sf; Beer and Wine only: $0.60/sf; Full Liquor: $0.90/sf* 2022, an Opinion of Value assessment was performed by a brokerage firm which details a reset to our outdoor dining lease rate values given Consumer Price Index (CPI). Staff directed the consultant to use the 2011 recommended rate (75% of market value; $1.34/sf/month) as the baseline to reset rates. In addition, we maintained the same tiered approach based on the applicant’s alcohol license. Based on the Opinion of Value, the 2022 market lease rates for outdoor dining are as follows:
No liquor: $0.58/sf ; Beer and Wine only: $1.14/sf; Full Liquor: $1.71/sf * *Monthly/annual lease rates are to be waived for restaurants with outdoor dining on public property of less than 100 s.f. and without alcohol service. However, an encroachment agreement, subject to the applicable application fee is a requirement in order to secure indemnification and other liability safeguards for the City. 5 Lease RateComparison
6 Walk on Wilshire
Walk on Wilshire Temporary Outdoor Dining Program was extended by City Council on March 15th, 2022.
As part of this action, the installation of a bike lane in the middle of the WOW dining area was approved as recommended by the Active Transportation Committee.
The pilot bike lane utilized barriers due to temporary nature of the WOW program (terminates September 30, 2022) and ability to store and reuse this equipment for City operations.
Due to the minimal use by the cycling community and aesthetic impact of pilot, staff recommends removal of the bike lane.
The bike lane element will be revisited when City Council considers the future of the WOW program at an upcoming meeting. 7 Recommendation
Approve updated Standard Outdoor Dining Guidelines and grant staff administrative approval of minor changes as needed.
Provide direction on lease rates by adoption of either a. Affirming current lease rates
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, AMENDING THE CITY’S SCHEDULE OF FEES AND CHARGES FOR MUNICIPAL SERVICES PERTAINING TO THE PUBLIC WORKS DEPARTMENT’S LEASE RATES FOR STANDARD OUTDOOR DINING IN THE PUBLIC RIGHT-OF-WAY OR
b. Adopting new lease rates
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, AMENDING THE CITY’S SCHEDULE OF FEES AND CHARGES FOR MUNICIPAL SERVICES PERTAINING TO THE PUBLIC WORKS DEPARTMENT’S LEASE RATES FOR STANDARD OUTDOOR DINING AND PANDEMIC-RELATED TEMPORARY OUTDOOR DINING PEOGRAM IN THE PUBLIC RIGHT-OF-WAY
3. Authorize removal of pilot Bike Lane deployed within the Walk on Wilshire Temporary Outdoor Dining area. 8 Questions?
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