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12.B Report Parklet Program Direction 2022-02-01

Pismo Beach City Council
February 1, 2022

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12.B Report Parklet Program Direction 2022-02-01
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February 1, 2022
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Pismo Beach City Council
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B

SUBJECT/TITLE:

DIRECTION ON DEVELOPMENT OF A CONCEPTUAL PARKLET PROGRAM TO

ALLOW OUTDOOR DINING WITHIN THE PUBLIC RIGHT-OF-WAY

RECOMMENDATION:

Review and consider the conceptual parklet program and provide direction to staff.

BACKGROUND:

In August of 2020, the City Council recognized that because of state and county public health orders, local restaurants had been drastically impacted in their ability to operate normally, potentially affecting their ability to remain operational in the long term. In response to the pandemic and the ensuing social distancing orders, the Council adopted Resolution R-2020-0711 to close portions of public streets and sidewalks (Pomeroy Avenue, Cypress Street, Shell Beach Road, and Hinds Avenue sidewalk) and authorize the City Manager to enter into no-cost encroachment permits to allow local restaurant businesses use of public right-of-way for outdoor dining parklets.

The temporary parklet program was extended by the Council several times over the last eighteen months and is currently set to expire April 30, 2022. The latest extension was due to continued uncertainty regarding the pandemic, as well as to provide time for staff to present the outline of a program for direction on preparing an amendment to the Local Coastal Program (LCP) for subsequent local approval and California Coastal Commission (CCC) certification.

Staff has closely monitored other coastal and non-coastal jurisdictions as well as coordinated with CCC staff to identify components of a potentially successful parklet program. This report serves to provide Council with information regarding what a successful parklet program might look like to be certified by the CCC, should Council direct that work be pursued.

Local Coastal Program (LCP) Amendment
The City’s LCP does not currently allow for parklets or outdoor dining accessory to an existing restaurant within the public right-of-way. An LCP amendment would be required to support development of provisions to allow the use. This amendment would need to be reviewed by the Planning Commission for recommendation for action by the Council, and ultimately certification by the CCC. Preliminary discussions with CCC staff have indicated support for a parklet program, subject to consideration and provisions that carefully approach protecting key public access resources, especially no-cost public access parking.

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Conceptual Parklet Program
The recommendations outlined in this report are based on the input of and coordination with Police, Fire, Finance, Engineering, Risk Management, Building, and Planning. The following list outlines staff’s recommendations to establish a permanent program that has the best chance at obtaining CCC certification, should the Council direct this work be undertaken.

Purpose
The purpose of the program would be to establish standards and permit requirements for outdoor dining in the public right-of-way (parklets). It would not be the intent of this program to regulate outdoor dining areas that are located on private property, as these would continue to be handled through standard Coastal Development Permit processes.

Location
Since August 2020, a total of seven businesses have requested and been granted no- cost encroachment permits from the City. Six of these are still in operation today and paying the fee set by the Council on January 4, 2022. These six businesses are located within the Downtown Commercial Core and commercial strip along Shell Beach Road in Planning Area H and operate year-round, depending on weather.

Both the Downtown Core and Planning Area H have the highest density of restaurants with limited or no private parking lots. Based on the City’s layout of land uses and circulation patterns, monitoring of other jurisdictions’ developing parklet programs, and minimal contact or interest from businesses in other parts of the city, staff recommends the program be limited to these two areas. Due to limited amounts of public street parking in the southern portion of the city, staff does not recommend allowing parklets in those areas.

Maximum Number of On-Street Parking Spaces
As of the writing of this report, 24 parking spaces and a section of sidewalk are occupied by the six businesses in the existing temporary parklet program. Five of the businesses are within the Downtown area, and one in the Shell Beach planning area. Based on staff’s discussions with other coastal jurisdictions and CCC staff, limiting the number of overall parking spaces establishes expectations and assures minimal impact to parking in the Coastal Zone.

Staff recommends the number of parking spaces not exceed 30 in both planning areas, allowing a maximum number of 25 spaces in the Downtown Core and 10 spaces in Shell Beach, on a first-come, first-serve basis. Staff recommends that the maximum number of spaces be greater downtown because of the higher number of restaurants in that area.

Additionally, staff intends to include a provision (see Operational Standards below) that the length of a parklet will not be allowed to exceed the length of the business frontage, or three spaces, whichever is less. This limitation would allow up to 10 parklets.

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An alternative could be to allow more than 30 parking spaces to support parklets and allow more than 10 restaurants to take advantage of the program. While there is no "magic” number to determine whether reduction in parking spaces would exceed a significance threshold for impacts to coastal resources, the risk becomes that the higher the number, the more likely it is that program certification could be stalled by the CCC.

In addition to setting a maximum number of on-street parking spaces to be utilized by parklets, it is just as important to consider the total number of parking spaces that each parklet may be allotted to support their business. Limiting the number of parking spaces per parklet allows more businesses the opportunity to establish a parklet. To accommodate the current parklets and have availability for additional parklets, staff determined three spaces per parklet may be appropriate; however, this could be adjusted if as desired.

Should the Council want additional flexibility, staff could administer the program dependent upon the total number of businesses interested in parklets. In other words, additional spaces can be allocated for businesses that desire them until such time that the desire for parklets exceeds the number of available spaces, at which point existing parklets would need to be reduced in size.

Space Allocation Lottery
As the total amount of spaces would be limited, staff is recommending parklets be permitted on a first-come, first-serve basis. Other jurisdictions who have anticipated more applications than available spaces have proposed a lottery system to select applicants.

Staff recommends the following process and lottery should the number of requests received exceed the number of spaces available, so long as all other portions of the program are met, such as the flexibility discussed above:
 Open the application period for a period of 30 days
 If the requests total fewer than 30 spaces, award spaces to the applicants through the applicable permitting process.
 If total requests exceed 30, evenly distribute up to three spaces per business. o If there are 10 applicants or fewer, assign up to three spaces to each applicant.
o If there are more than 10 applicants, hold a lottery assigning up to three spaces to each applicant until all 30 spaces have been allocated.  After two years, applications would be sought again, with a preference given to those businesses that have not recently operated a parklet.

Parklet Design
Parklets are typically created by building a platform on the pavement to extend the sidewalk space, and furnishing it with benches, planters, tables and chairs, umbrellas, and bicycle racks. Their shape can vary from linear, square, rectangular, triangular, or irregular. Parklets are built out of semi-permanent materials and are installed in a way that does not require reconfiguring or excavating the roadway or pouring concrete. They are usually developed by a local business that pays to design and build them and agrees to keep them maintained. An advantage of parklets is their low installation and

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maintenance costs for cities, which is due in part to their relatively small size, less permanent nature, and partnerships with adjacent businesses.

Staff investigated the types of parklets allowed in other jurisdictions and identified two pathways for businesses to consider in establishing a parklet within the right-of-way: 1) predesigned parklet or 2) custom design parklet.

Predesigned Parklet. A predesigned parklet is designed to be built as an “off-the-shelf” plan for businesses to choose from. Predesigned parklets are an option communities have developed to provide quicker and more cost-effective permitting for participating businesses. These designs would be considered through review and approval of a “master” Coastal Development Permit (CDP) to run concurrently with the LCP Amendment. Following approval and certification by the CCC, the approval will act as a CDP for any participant in the program utilizing one of the approved designs. An application for an Administrative CDP would be required for the individual business proposing a predesigned parklet; however, this could be waived by the Council if desired.

If preferred by Council, staff would develop several designs for businesses to choose from. These designs could look similar to those shown in Figure 1. It is anticipated that these predesigned parklets would include a structure and layout that is linear and uniform in nature with different options for colors. Material choices can include wood paneling, steel railing, planter boxes, concrete/plaster siding. Plantings would be required around the perimeter to soften the aesthetic. Concrete siding would be required on both ends of the parklet. K-rails would be installed within the concrete siding to ensure protection and safety measures for patrons in the event of an impact. Any concrete siding along the length of the parklet and parallel to flow of traffic, will also be required to be designed with a k-rail inside. Additional design and layouts will be considered for the various parking spaces in the Downtown Core and Shell Beach area (parallel, perpendicular, diagonal).

Figure 1. Sample of Predesigned Parklets
Custom Design Parklet. Custom design parklets would be any proposed parklet design that is not a predesigned parklet. A custom design parklet would be required to use the same materials, colors, and safety specifications of the predesigned parklets. However, a custom design would allow businesses to be more creative and responsive to the needs of their operations and patrons. For example, offering fewer tables, more bench seating, accommodating a waiting area, or incorporating passive use area(s).

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If a business is interested in pursuing a custom design, a CDP would be required. This would follow the standard CDP process where an application would be reviewed and approved by the Planning Commission.

Permits and Approvals
As mentioned, an LCP Amendment is required to allow for parklets in the public right-of- way. Following approval of an LCP Amendment, the City will be responsible for ensuring adherence to the provisions outlined in the program. As such, staff recommends two permitting levels as outlined below.

Administrative Permit Standards (Predesigned Parklet)
Applications for predesigned parklets would be acted on by the Community Development Director and must comply with the following:
 Must be designed consistent with a predesigned parklet approved by the Planning Commission
 Must comply with all applicable requirements of the Zoning Code, and all other applicable laws, administrative policies, rules, and regulations.  The parklet must be consistent with the Local Coastal Program and will not adversely impact coastal resources, access, and views.
 Must utilize high-quality, durable materials that are compatible with surrounding development and can withstand inclement weather.
 The parklet must be a design authorized by a valid Coastal Development Permit.

Coastal Development Permit Findings (Custom Design Parklet) Applications for parklet CDPs would be viewed and acted on by the Planning Commission. For CDPs issued pursuant to this section, the Planning Commission would make the following findings:
 The parklet area complies with all applicable requirements of this section, the Zoning Code, and all other applicable laws, administrative policies, rules, and regulations.
 The parklet is consistent with the LCP and will not adversely impact coastal resources, access, and views.
 Must utilize high-quality, durable materials that are compatible with surrounding development and can withstand inclement weather.

Encroachment and Other Permits
All applications for parklets would be required to obtain an Encroachment Permit from the City’s Public Works Engineering Division and comply with the Encroachment Permit Requirements and Inspections application form. The Encroachment Permit is required to be acted on by the Public Works Director. Parklets would also subject to all other applicable permits, licenses and/or entitlements required by state or local law. This may include but is not limited to a City encroachment permit, environmental health permits, business licenses, and California Department of Alcoholic Beverage Control (ABC) licenses.

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Use of Permit Fees in Coastal Zone
CCC staff have indicated to other coastal jurisdictions the importance of apportioning fees toward coastal access programs, maintenance, and improvements. While other jurisdictions have limited the percentage of permitting fees allotted to these programs, staff recommends that, consistent with Resolution R-2022-022, which created the City’s parklet fee, the City utilize 100% of the fees invested into the Parking Enterprise Fund to support coastal access programs, maintenance, and improvements. However, due to concerns related to maintenance of streets adjacent to parklets, staff could investigate the ability to reduce this percentage into the Parking Enterprise Fund should the Council provide that direction. This could lead to potential certification delay at CCC in the future.

Operating and Development Standards
To ensure parklets are permitted and designed in conformance with the City’s Local Coastal Program, a formal program would be developed that, to the greatest extent possible, ensures all parklets will be required to meet the following standards:
 Must serve an eating and drinking establishment (restaurant). Must be incidental and subordinate to the restaurant; no subletting of space for multiple tenancy.  One parklet only. A restaurant may have only one parklet.  Limited to restaurant frontage. A parklet is allowed in the public right-of-way only on parking spaces that are:
o Wholly located in the right-of-way.
o Directly adjacent to the restaurant frontage.
 In no case shall the length of a parklet exceed the length of the restaurant frontage, or three spaces, whichever is less, to ensure emergency access is unimpeded.  Parklets must be located a minimum of 10 feet on each side of a fire hydrant and shall meet the standard for minimum distance from crosswalk, street corner, alley, driveway, or intersection; and are prohibited from blocking an access ramp, accessible parking space, or bus stop as described in the City’s Engineering Standards and Specifications (April 2020).
 Parklet may not be in the following locations:
o Along a curb painted red or blue
o Within or adjacent to an alley
o Adjacent to a bus stop
o Within 5 feet of storm drain inlets or cleanouts
o Over or in front of utility appurtenances including but not limited to access panels, manhole covers, handholes, transformers, water meters, or water valves.
o Within 10 feet of each side of a fire hydrant and any emergency equipment.  Parklets shall not be connected to power or use portable heaters.  Parklets shall comply with all State of California Department of Alcoholic Beverage Control license requirements, as applicable.
 Outdoor cooking and food preparation within or adjacent to the parklet is prohibited.

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 Exceptions. Due to road and parking space layout, the outdoor dining area cannot be designed without extending the area beyond immediately adjacent parking spaces (e.g., diagonal spaces); extending the outdoor dining area will not have significant impact on adjoining businesses as determined by the review authority; and, extending the parklet area will not adversely impact coastal access, as approved by the Public Works Director and Community Development Director.

Signage
Staff recommends that the formal parklet program restrict commercial signage to one business identification sign and one menu sign, each not to exceed two square feet; temporary banners and temporary A-frame signs would be prohibited.

Stormwater Drainage and Utilities
As part of the design considerations and review for new parklets, the program would outline provisions to ensure stormwater infrastructure and utilities within the right-of-way were not impacted or impeded by development. For example, parklets would be constructed on raised platforms aligned with the top of curb over the City gutter to not interfere with drainage flow along the gutter line. Parklets would need to be located so as not to interfere with utility boxes, fire hydrants, and all other related facilities.

Trash and Maintenance
While parklets can provide an enriched community experience, if not maintained in a responsible manner, they can be untidy and damaging to the aesthetic of the neighborhood. To ensure the parklet improves and enhances the space and street aesthetic, the permit holder must be responsible for maintaining the parklet. Maintenance would include posting of the name, phone number, and email address of the person responsible for the parklet in a location visible from the public right-of-way, keeping the parklet free of litter, and preventing litter attributable to the parklet from entering adjacent properties or the public right-of-way. Additionally, landscaping around the perimeter of the parklet or within should contain live, healthy vegetation.

Sound and Noise
Approved parklets would be conditioned to comply with the sound level limits of the Pismo Beach Municipal Code and those of the adjacent use of the restaurant. Staff recommends music, amplified sound, or live entertainment not be permitted within a parklet, except through consideration of a Temporary Use Permit as described in “Hours of Operation” below.

Bicycle Parking
Based on conversations with CCC staff, if the parklet program reduces the total number of parking spaces available for coastal access and resources, the City could present a creative alternative to replace that parking. Bicycle parking has been proposed by other coastal jurisdictions, including Capitola and Carpinteria, to offset the reduction in parking and requiring at least two spaces per occupied vehicle space. The bicycle spaces would be integrated into the parklet design or within the private property of the restaurant. If integrated into the parklet design, an additional parking space may be required to

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accommodate the bicycle parking spaces. This could lead to an overwhelming amount of bicycle parking that ultimately may be underutilized in each of these areas. As an alternative, Council could opt to consolidate the required bicycle parking in an area of Downtown rather than requiring each business to provide bicycle parking at their parklet.

While this has not been proposed by other coastal communities, staff would continue working with CCC staff to better understand this option.

Hours of Operation
Parklets are intended to be incidental to the restaurant they serve. As such, if this program were to be implemented, staff would require parklets to be limited to normal business hours of operation of the restaurant. The Police Department has indicated concern with allowing parklets to remain open after business hours. Other jurisdictions have had issues with transient use when allowed to remain open, thus as a lesson learned, City parklets should be limited to business hours.

Extended hours for special events and holidays could be considered. Currently, the City issues Temporary Use Permits to allow short-term activities that might not meet the normal development or use standards of the applicable zoning but may be acceptable because of their temporary nature. Examples of temporary uses currently allowed in Pismo Beach include, but are not limited to, seasonal sales lots and special events on private property.

Indemnification and Removal
Consistent with the existing temporary parklet program, a permanent parklet would require an Encroachment Permit issued by the Public Works Engineering Division subject to indemnification, general liability insurance, and a maintenance agreement to ensure protection of the City’s infrastructure. Applicants will be required to indemnify the City from the business to the extent of the parklet. This includes the sidewalk space between the restaurant and parklet.

Regarding removal of parklets, if desired by the Council to limit the total duration of individual parklet placement, the CDP could be conditioned to require removal by a specified expiration date outlined in the permit.

Enforcement
While businesses may be eager to add parklets to their operations, parklets can attract negative behavior and be damaging to the aesthetic of the right-of-way. Issues that are common in other jurisdictions include transient use during off-hours, accumulation of refuse and rubbish, sign clutter, encroaching beyond permitted space, operating outside of business hours, and noise complaints. As such, staff recommends the LCP Amendment include an enforcement provision outlining the process for concerned individuals or businesses to contact the City’s enforcement number of visit Pismo Pulse to report concerns. The City’s Code Compliance personnel would investigate complaints received. If a violation of the applicable provisions is found, the eligible business and property owner will be responsible for resolving the issue, including payment of any enforcement-related fines or penalties, as applicable.

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If Council directs staff to prepare the LCP Amendment, in addition to the provisions for enforcement described above, staff will develop an Administrative Policy outlining an enforcement and monitoring program to be implemented by the Community Development Department. This would include quarterly monitoring by the Code Compliance personnel and progress tracking to ensure restaurants with parklet additions are complying with the provisions and standards of the amendment. Staff also recommends a three-strikes policy per year (effective on permit issuance), wherein if more than three violations are substantiated, their permit is immediately revoked, subject to removal of the parklet as outlined in the encroachment permit and indemnification agreement.

Local Coastal Program Amendment Process
Should the Council direct staff to move forward with an LCP Amendment, staff will prepare the amendment along with a blanket Coastal Development Permit for the predesigned parklet option. The parklets will be designed by City staff based on other jurisdictions, whose efforts have already led to successful design and implementation of these spaces.

If certified by the California Coastal Commission, businesses or property owners interested in establishing a parklet will have two options:

1) Use of predesigned parklet requires an Administrative Coastal Development Permit subject to the Community Development Director’s review and approval, and an Encroachment Permit.
2) Use of a custom design requires a Coastal Development Permit, Planning Commission review and approval, and an Encroachment Permit.

Following local approval, and as a condition of approval, operators of the parklets would need to enter into an agreement with the City to comply with the Indemnification and Removal provision listed above.

Timing
Should the Council give direction to pursue the LCP amendment, staff anticipates the process would take approximately four months to submit the amendment for Coastal Commission consideration. Below is a sample timeline should the Council direct staff to pursue the amendment:

 February 1, 2022 – City Council direction
 February – SB 18 Tribal Consultation for LCP Amendment  March/April – Planning Commission consideration and recommendation  May/June – City Council decision
 July/August – Coastal Commission consideration of LCP Amendment

This timeline corresponds with the City’s efforts to update the General Plan/LCP. As an alternative to developing an LCP amendment specific to parklets, the Council could give direction to incorporate these provisions as part of the overall General Plan/LCP update.

However, based on the scale of the General Plan/LCP update, if the Council desires to

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process the parklet program quicker, staff would recommend keeping these items separate.

Environmental Review
The California Environmental Quality Act (CEQA) defines a project as an action that is subject to discretionary approval, has the potential to physically change the environment, and any action undertaken by a public agency or through entitlement from a public agency. If the Council decides to allow an administrative permit for preapproved designs, like other jurisdictions, without a discretionary approval, the permit for a parklet would not be subject to CEQA. If a discretionary approval is required, the project would be subject to CEQA and likely qualify for a categorical exemption under the CEQA Guidelines pursuant to Sections 15305 and 15311 regarding minor alterations to land use limitations and accessory structures, respectively. An amendment to the LCP and adoption of an ordinance to allow for parklets is consistent with these two exemptions, because the requested action would not result in a direct or reasonably foreseeable change in the environment and because there is no possibility that the activity in question may have a significant effect on the environment.

Conclusion and Recommendation
While outdoor dining has been enjoyed by residents and visitors during the COVID-19 pandemic, it does present challenges to the community, including decreased parking capacity, reduction in coastal access, impact on traffic flow, pedestrian safety, and emergency vehicle response. However, these last two years have demonstrated the resilient nature of the Pismo Beach business community and their ability to adapt with these uncertain times. Staff recommends that the Council provide direction on development of a permanent parklet program; based on the Council’s direction staff will then proceed to prepare any necessary implementation documents for consideration.

FISCAL IMPACT:

There is no immediate fiscal impact with providing staff direction on developing an LCP Amendment. However, if Council directs staff to move forward with the parklet program, there would be additional revenues to the City from the permit fees to cover City costs.

These fees are already included in the City’s fee schedule and are listed below.

Per Resolution R-2022-002, a monthly fee of $580 per parking space, or equivalent area of right-of-way, occupied by a parklet, will be charged to the businesses that participate in the program. The fee would be deposited into the Parking Enterprise Fund.

In addition to the monthly fee per space, an applicant pursuing a predesigned parklet would be charged a one-time Administrative Coastal Development Permit fee ($673) and an Encroachment Permit fee ($220). Custom design parklets would be charged a one- time Coastal Development Permit application fee ($3,402) and the Encroachment Permit fee.

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ALTERNATIVES:

1. Direct staff to develop an LCP Amendment to allow parklets in the public right-of- way on a permanent basis.

2. Provide alternative direction to staff.

ATTACHMENTS:

None
Prepared by: Meeting Date: February 1, 2022
Megan Martin, Planning Manager
Submitted by: Matthew Downing, Community Development Director City Manager Approval:

12.B-11Council Agenda 2-1-2022

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