City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02044 1/10/2023 Public Hearing Item 31.
City Council COVID-19 Response: American Rescue Plan Act of 2021 Framework and Funding Priorities: Implementing a New Fee Schedule for Al Fresco Dining Program and Approving the Al Fresco Dining Grant Program
File ID: 2022-02044
Location: Citywide
Recommendation: Conduct a public hearing and upon conclusion, adopt a Resolution: 1) implementing a new fee schedule for the Al Fresco Dining Program; and 2) approving the Al Fresco Dining Grant Program.
Contact: Valerie Mamone-Werder, Project Development Manager, (916) 808-5451, vmamone- [email protected], Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, [email protected]; City Manager’s Office of Innovation and Economic Development; Staci Hovermale, Operations General Supervisor, (916) 808-5047, [email protected], Matt Eierman, Parking Services Manager, (916) 808-5849, [email protected]; Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
4-Exhibit A - Fee Schedule
5-Exhibit B - Al Fresco Dining Grant Program Guidelines Description/Analysis
Issue Detail: On March 4, 2020, Governor Newsom proclaimed a state of emergency in the State of California due to the COVID-19 pandemic. On March 5, 2020, the County of Sacramento proclaimed a public health emergency. On March 13, 2020, the City Council adopted Resolution No. 2020-0075 declaring a local emergency. In response to COVID-related indoor dining restrictions, the City Manager, acting as the Director of Emergency Services pursuant to City Code
File ID: 2022-02044 1/10/2023 Public Hearing Item 31.
restrictions, the City Manager, acting as the Director of Emergency Services pursuant to City Code section 2.116.060, issued emergency rules and regulations on May 21, 2020, and again on June 25, 2020, for the temporary allowance of outdoor dining in private parking lots, consistent with local zoning, county health, and state alcoholic beverage regulations. On June 30, 2020, the City Council adopted Resolution No. 2020-0184
confirming the outdoor dining emergency rules and regulations. Concurrent with the temporary allowance of outdoor dining in private parking lots, the City offered temporary permits for expanded sidewalk dining and street closures for dining. On June 15, 2021, City Council passed Resolution 2021-0188, extending the Temporary Al Fresco Dining Program through June 30, 2022. This was to allow time for staff to develop and formalize a new Al Fresco Dining Program.
On June 21, 2022, City Council approved the Al Fresco Dining Program and the City launched a new permitting webpage for the Al Fresco Dining Program. The new web page allows restaurant owners to browse engineered layouts, and customize their design based on budget and available space, before starting the permit application process.
To encourage these outside dining venues, the city is establishing a new Al Fresco Dining Grant Program (“Grant Program”). Similar to the program initiated in the early months of the pandemic, this Grant Program will support the cost of building or expanding permanent dining within on-street parking spaces, parkway, sidewalk, or private parking/surface lots. The Grant Program will offer funding in the form of a reimbursable grant of up to $20,000 per establishment for approved expenses to build the customized Al Fresco dining area. The grant amount is higher than the previous program due to increased estimated costs for building permanent dining patios versus the temporary ones launched during the pandemic and is envisioned to result in a higher quality design.
Reimbursable expenses can be incurred from January 11, 2023, until June 1, 2024; Projects must be completed, and expenses submitted by June 30
th, 2024. The City will launch the Grant Program on
January 11, 2023 and will accept applications through June 30, 2023. The Grant Program Guidelines are included as Exhibit B to the Resolution.
The Grant Program will provide reimbursable funding for eligible expenditures based on the following amounts:
· A maximum of $20,000 for structures within on-street parking spaces or on Parkways that support outdoor dining.
· A maximum of $5,000 for sidewalk cafes with tables and chairs and up to $10,000 when including a railing to comply with their liquor license. · A maximum of $20,000 for private surface parking lots.
These dining facilities must comply with all applicable laws and governmental requirements and regulations, including Sacramento County Environmental Health, California Department of Alcoholic Beverage Control (ABC), and California Department of Public Health (CDPH) requirements and regulations.
File ID: 2022-02044 1/10/2023 Public Hearing Item 31.
Proposed Fees
To administer and enforce the Al Fresco Dining Program, staff are proposing the establishment of fees to recover program costs. The proposed Al Fresco Dining Program fees will provide funding for staff time to administer the Al Fresco Dining Program and revenue recovery for each Central City parking space converted to outdoor dining.
Exhibit A of the Resolution is the proposed Al Fresco Dining Program fee schedule. The monthly fees are based on estimated program participation, patio size and type, and revenue recovery for loss of on-street parking spaces.
Policy Considerations: These recommendations are consistent with the City Council’s adopted ARPA Framework and Funding Priorities to support small businesses and commercial corridors and the City’s General Plan goal to enhance livability and retain and support small businesses.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed actions are exempt from the California Environmental Quality Act (CEQA) because it can be seen with certainty that there would be no potential for causing a significant effect on the environment pursuant to CEQA Guidelines section 15061(b)(3).
Sustainability: This program will improve the infill areas and provide opportunities for enhanced usage for existing public spaces in a sustainable way.
Commission/Committee Action: None.
Rationale for Recommendation: Pursuant to Resolutions 2021-0066 and 2021-0188, Temporary Al Fresco Dining and the Pilot Parklet Programs expired on June 30, 2022. Establishing a fee schedule will allow the City to recoup expenses for the program including ongoing permitting and monitoring of the Al Fresco dining facilities. Formalizing the Al Fresco Grant Program will support restaurant owners as they build safe, longstanding, and beautiful outdoor dining spaces that contribute to our city’s thriving dining scene and foster pedestrian friendly streets.
Financial Considerations: On October 19, 2021, Council approved an allocation from ARPA of $2,000,000 for the Al Fresco Dining Grant Program. These funds are in the ARPA Small Business Support Program (I02612000). To date, approximately $200,000 has been spent for the design work and web portal. Approximately $80,000 additional will be spent on permit software for the program.
File ID: 2022-02044 1/10/2023 Public Hearing Item 31.
This results in approximately $1,720,000 for implementation of the Grant Program and this funding is available (ARPA Reinvestment Fund, Fund 1003) in the ARPA Small Business Support Program (I02612000).
The annual administrative cost of the Al Fresco Dining Program is anticipated to be $120,000. It is estimated that 100 businesses will participate in the Al Fresco Dining Program and the administrative costs will be recovered by charging fees outlined on the attached Fee Schedule (Exhibit A to the Resolution).
Local Business Enterprise (LBE): The program will support the City’s local business enterprises by providing grant funding to assist in developing outside dining venues.
Attachment 2
ARPA Reinvestment Fund (Fund 1003) $112,313,331
Pr
ogram Description Approved
Expenditure Category
Aggie Square Job Center 1,000,000 3
Al Fresco Dining Program Development 189,139 1
Animal Services for the Homeless (ASHR) Response Team 753,230 2 ARPA Grant Liaison Consulting Services 530,490 5
Arts and Cultural Nonprofits 250,000 4
Arts and Cultural Nonprofits Grant Matching Funds 2,000,000 4 Arts Journalism Grant Program 250,000 4
Business Compliance Unit (BCU) Night Team 1,656,101 5
Center for Workers' Rights 550,000 3
Childcare Services 1,500,000 3
Citywide Equity Study 250,000 1
Code Enforcement 205,683 2
Community Response Staffing Expansion 1,025,157 2
Comprehensive Siting Plan - Location Buildout 1,568,236 2 Comprehensive Siting Plan - Meadowview Acres Tree Removal 224,999 5 Comprehensive Siting Plan - Property Acquisition 12,312,624 2 Continuation of Existing Homelessness Programming 6,283,277 2 COPS Hiring Program Grant Matching Funds 4,057,327 5
COVID-19 Homeless Response Program 1,650,000 2
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Digital Equity Response Program 250,000 3
Direct Investment Program 750,000 3
Downtown Core and Old Sacramento Revitalization 3,675,000 1 Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
FY2022/23 Affordable Housing Project 11,210,003 2
Gang Prevention and Intervention 1,500,000 3
Grove Emergency Bridge Housing 92,500 2
Illegal Dumping Support 787,000 2
Individual Artists and Creatives 2,750,000 4
K Street Lighting 619,150 1
Labor Negotiations 9,893,510 5
Lighting and Safety Enhancement 1,325,000 1
Local Food Bank Provider Support 500,000 3
Northgate Boulevard Economic Recovery Plan 3,000,000 1
Northgate Boulevard Fence Repair Project 2,000,000 1
North Sacramento Code Enforcement and Outreach 450,000 1 American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 12/6/2022)
Attachment 2
Program Description Approved
Expenditure Category
North Sacramento Economic Recovery Plan 5,000,000 1
Public Records Staffing 3,639,334 5
Public Works Support of Homelessness Programming 572,000 2 Respite Centers Program 2,240,290 2
Sacramento Inclusive Economic Development Collaborative 3,500,000 1 Sacramento Native American Health Center 100,000 1
#SacYouthWorks Summer 2022 Program 720,000 3
Small Business Priorities 7,391,711 1
Substance Use Respite and Engagement Program 1,300,000 2 Tourism Recovery through Iconic Event Production 1,500,000 4 Towing Administration Fee Reform 200,000 1
Vaccine Outreach and Education 1,000,000 1
Workforce Training Programs 2,750,000 3
Youth Pop-Up Program 1,300,000 3
$111,521,761
ARPA Balance $791,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 11,820,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 111,521,761$
RESOLUTION NO. 2022-
Adopted by the
Sacramento City Council
January 10, 2023
ESTABLISH FEE SCHEDULE FOR AL FRESCO DINING
PROGRAM AND AL FRESCO DINING GRANT PROGRAM
BACKGROUND
A. On March 18, 2014, the City Council passed a Motion (Motion No. 2014- 0055) establishing a two-year pilot program for the installation of temporary sidewalk extensions, called Parklets, within the City’s right-of-way and approving associated guidelines for the program (Motion No. 2014- 0055).
During the initial pilot period, there was limited interest, resulting in the installation of only one Parklet.
B. In response to COVID-related indoor dining restrictions, the City Manager, acting as the Director of Emergency Services pursuant to City Code section
2.116.060, issued emergency rules and regulations on May 21, 2020, and again on June 25, 2020, for the temporary allowance of outdoor dining, consistent with local zoning, county health, and state alcoholic beverage regulations.
C. On June 30, 2020, the City Council adopted Resolution No. 2020-0184 confirming the outdoor dining emergency rules and regulations.
Concurrently with the temporary allowance of outdoor dining in private parking lots, the City offered temporary permits for expanded sidewalk dining and street closures for dining.
D. On June 15, 2021, City Council passed Resolution 2021-0188, extending the Temporary Al Fresco Dining Program through June 30, 2022. This was to allow time for staff to develop and formalize a new Al Fresco Dining Program.
E. The City hired HDR, an engineering consultant, to assist in the development of the Al Fresco Design Standards and Civil Concepts (Exhibit A), marketing materials and interactive customer-facing website. The City, along with HDR, conducted extensive stakeholder engagement to create five civil design concepts, two structural concepts and one electrical concept. These concepts will be available to restaurants at no cost and will streamline the permitting process, ensure quality design, and reduce patio startup costs.
F. Businesses will be provided a program overview (Exhibit C) which will direct the users to the City’s interactive website to see design layouts, compare costs and square-footage estimates, and gather information to support their permit application. The City will work with businesses to submit required paperwork, including Initial Interest Form and permit applications per the timeline outlined in the Al Fresco Dining Program Transition Schedule (Exhibit B). Once the application has been approved by the City, a Revocable Permit will be issued to allow for outdoor dining within the City’s right-of-way.
G. On June 21, 2022, Council established the Al Fresco Dining Program.
H. City staff have engaged with Property and Business Improvement Districts (PBIDs) throughout the City to establish the Fee Schedule for the Al Fresco Dining Program and the Al Fresco Dining Grant Program. The Al Fresco Dining Grant Program is funded through the American Rescue Plan Act funding. Council approved $2 million for the program in October 2021.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council finds and determines that the background statements A through H are true.
Section 2. The City of Sacramento Master Fee Schedule is hereby amended as set forth in Exhibit A to establish the fees authorized by Section 5.156.080 of the Sacramento City Code.
Section 3. The Al Fresco Dining Grant Program included as Exhibit B is approved.
Section 4. The City Manager or the City Manager’s designee may modify the Grant Program as needed to implement the program.
Table of Contents:
Exhibit A: Fee Schedule for the Al Fresco Dining Program Exhibit B: Al Fresco Dining Grant Program
EXHIBIT A
Fee Name: Al Fresco Dining Program Fees
Current Fee:$0
Proposed Fees:
Location of Outdoor Dining Proposed Monthly Fee
Patios (excluding Tables and Chairs only) $100
Large Patios (Over 200 Sq. Ft.) Additional $100
Central City On-Street Parking Spaces $150 per space
Tables & Chairs Only
$25 for two tables (4 seats max per table)
$20 per additional table
Outdoor Dining Patios with Existing
Sidewalk Café Permits $25
Justification for Fees
Recover costs associated with staff time to administer the Al Fresco Dining Program and revenue recovery for each parking space converted to outdoor dining.
Proposition 26
This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will cover the department’s cost to administer the program.
Fee Schedule
Al Fresco Dining Program
Exhibit B
Al Fresco Dining Grant Program Guidelines
City of Sacramento’s Al Fresco Dining Program makes it easy for local restaurant owners to create safe, durable, and beautiful patios in the public right-of-way or on private property. With City Council approval on July 1, 2022, the City launched a new permitting webpage for the Al Fresco Dining Program. Now restaurant owners can browse engineered layouts and customize design based on their budget and available space before starting the permit application process.
To support the cost of building or expanding a permanent dining parklet, parkway, sidewalk café, or dining on a private surface parking lot, the City is establishing an Al Fresco Dining grant program. The grant program will offer funding in the form of a reimbursable grant for approved expenses to build the customized Al Fresco dining area.
Grantees can incur reimbursable expenses between January 11, 2023, and June 1, 2024; Projects must be completed, and expenses submitted by June 30, 2024. The City will launch the program on January 1, 2023, and will accept applications through June 30, 2023.
Al Fresco Dining Program Overview
Restaurants may provide new or expanded Al Fresco dining areas within the following locations:
• On public sidewalks or on-street parking spaces in front of the restaurant • In private parking/surface lots adjacent to the restaurant Note that all new or expanded outdoor dining facilities must comply with all applicable laws and governmental requirements and regulations, including Sacramento County Environmental Health, California Department of Alcoholic Beverage Control (ABC), and California Department of Public Health (CDPH) requirements and regulations.
Al Fresco Dining Grant Program Eligibility
• Must be an independently owned and operated restaurant within the City of Sacramento • Must have a current City of Sacramento Business Operations Tax Certificate (BOTC) • Must have a current encroachment permit issued by the City if expanding dining onto a public sidewalk or on-street parking space
• Must have letter of approval from property owner if expanding dining on private surface parking lot
• Must complete and sign the City’s Al Fresco grant agreement
Funding
The grant will provide reimbursable funding for eligible expenses with grant amounts of:
• A Maximum of $20,000 for a Parklet: a seating platform where the sidewalk meets the street creating a space for dining utilizing a minimum of two parking spaces per location, and a Parkway: a sidewalk and landscaping area with tables and chairs on the with the option to build a structure that spans into the street. • A maximum of $5,000 for a sidewalk cafe with tables and chairs • A maximum of $10,000 for a sidewalk cafe that includes a railing • A maximum of $20,000 for a private surface parking lot, including funding for design
Attachment 1
Authorized Costs
The following costs incurred to expand or add outdoor dining are eligible for reimbursement under the grant program:
1. Costs of materials and supplies such as tables, chairs, benches, umbrellas, canopies, shade structures, lighting
2. Costs of construction materials and electrical supplies such as: : Lumber steel, concrete, conduit, circuit breakers
3. Costs for design services such as Engineering, architecture, signage
4. Costs of labor such as : Construction and contractor fees