City Council
Report
City Council Meeting: June 8, 2021
Agenda Item: 7.A
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Santa Monica Outdoors: Extending Pandemic-Era Emergency Allowances Including Outdoor Use Permits and Interim Zoning Changes to Support Santa Monica’s Economic Recovery
Recommended Action
Staff recommends that the City Council:
1. Introduce and adopt an Emergency Interim Zoning Ordinance to extend currently allowed temporary uses of private outdoor space for commercial activity that would otherwise expire 30 days after the conclusion of the County’s pandemic-related emergency orders, and extend certain zoning changes necessary for continued emergency response and economic recovery.
2. Introduce and adopt an Emergency Ordinance to authorize the issuance of permits and licensing agreements as part of a one-year pilot program that expires on June 30, 2022 to allow continued uses of public property, including streets and sidewalks, for commercial activity, the authorization for which would otherwise expire 30 days after the conclusion of the County’s pandemic-related emergency orders.
3. Adopt a Fee Resolution to authorize fee waivers for outdoor dining license fees and processing fees for outdoor dining permits, authorize fee waivers and fee reductions for outdoor fitness fees in City Parks and the Beach, extend the fee waivers associated with temporary use permits, establish fees for use of public property pursuant to Santa Monica Municipal Code Chapter 6.40 to commence no earlier than January 1, 2022, and authorizes temporary closure of portions of Main Street.
4. Adopt a Fee Resolution setting the outdoor dining license fees using the 2020 calendar year rates, effective as of January 1, 2022, with annual Consumer Price Index adjustments commencing January 1, 2023.
5. Authorize the City Manager to negotiate and execute a Memorandum of Understanding granting Downtown Santa Monica, Inc. authority and responsibility for managing community-serving events and programming in the downtown district, with direction to return with any proposed modifications to the event ordinance determined necessary to accomplish this.
6. Receive a plan for Pilot Program closure of Main Street and direct staff to proceed with the proposed plan for closure.
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Summary
Temporary Outdoor Use Permits authorized under the City’s emergency orders have been a critical component of the City’s crisis response to sustain locally owned small businesses in Santa Monica during the COVID19 pandemic. These permits have facilitated the rapid transition of traditional indoor commercial activities such as dining, retail, and fitness to outdoor venues that have helped to bolster the local economy and enhance the mental and physical wellbeing of residents and visitors by providing for “Santa Monica Outdoors.” These activities include:
• Parklets on many neighborhood-serving commercial corridors, including Main Street, Montana Avenue, and throughout the Downtown, have enabled business activity when many indoor activities were prohibited. Parklets (converted on-street parking spaces) are primarily utilized by local restaurants, though there are numerous examples of retail, personal services, and fitness parklets across the city.
• Outdoor Uses on Private Property have permitted parking lots and courtyards to be repurposed for a range of uses including outdoor dining, fitness, and nail salons.
These spaces have been a lifeline to businesses who cannot accommodate or do not have access to a parklet space.
• Outdoor Dining on the Pier has allowed restaurants to serve patrons on the Pier’s parking deck and public right-of-way.
• Satellite Dining on the Third Street Promenade and Satellite Uses on Main Street has permitted use of the Promenade in a new social gathering format that was contemplated in the Promenade 3.0 process and the Main Street parking lane to maximize the availability of parklet spaces.
• Outdoor Fitness Classes in City Parks and on the Beach have maximized a studio’s or an instructor’s ability to provide recreational training or wellness offerings to groups of people at a safe distance. • Outdoor Community Events have featured drive-in movies and performances.
These events have been held on both public (airport) and private property. 3 of 25
The Temporary Outdoor Use Permits, and associated license agreements entered into pursuant to the City’s emergency order authorizations, are set to expire 30 days after the County’s COVID-19 Health Officer Order expires. With the Governor’s announcement that California intends to fully reopen on June 15, 2021, it is anticipated that the County’s Health Officer Order may soon expire, which would trigger the termination of the Temporary Outdoor Use Permits. Should that happen, those currently using temporarily permitted outdoor spaces in the public right of way and on private property through emergency orders would no longer be able to do so. Parklets, outdoor dining on private property, outdoor dining on the Pier, satellite dining on the Third Street Promenade, and satellite space on Main Street may be extended by a Council-adopted ordinance. Outdoor fitness classes in City parks and on the Beach and outdoor events may be extended by modifications to regulations, guidelines, and permits, which do not require Council action.
Due to the widespread success of Temporary Outdoor Use Permits throughout the City’s commercial areas in supporting the economic viability of local businesses, recent survey results demonstrating overwhelming support of the residential and business communities for the continuation of these permit programs, and the recommendations of all City agencies that work within the public right of way, staff recommends that the Council adopt an Emergency Interim Zoning Ordinance (IZO) and an Emergency Ordinance (EO) to continue these permit programs “asis” through summer 2022, when economic conditions are predicted to be more favorable. Staff anticipates returning to Council at that time with a comprehensive outdoor permit program that would include design details and guidelines, fees for use of the public right of way, and potential staffing requests to maintain and monitor a safe, high-quality outdoor experience.
In addition to the temporary outdoor uses cited above,
certain zoning changes were also enacted to support emergency response and economic recovery; staff recommends that these zoning changes also be extended through the IZO.
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Background
The onset of the COVID-19 pandemic and resulting economic crisis necessitated a range of emergency-based regulatory changes to implement recovery measures and to strengthen community resilience. On March 13, 2020, the City declared the existence of a local emergency in response to COVID-19. On April 14, 2020, Council directed that a restructuring of City services be focused around health and safety, emergency response, and economic recovery. As introduced at the April 28, 2020 City Council meeting, the City implemented a multi-pronged economic recovery plan that focused on five policy areas:
• Business Retention/Reopening
• Business Process/Permitting Improvements
• Outreach/Marketing
• Community Economic Development/Local Hire
• Federal and State Resources/Funding Partnerships
From April 28 forward, the Economic Recovery Task Force (ERTF) and its five policy groups worked assiduously to implement actions and earmark over $1 million in ERTF funding to support businesses and residents that suffered economic impacts related to the pandemic health orders. These actions included modifications to the City’s regulatory framework and processes using emergency orders to provide immediate and short-term relief for our brick-and-mortar small businesses. The initial round of changes targeted common regulatory barriers that were perceived to add cost and time to the permitting process. Complementing this initial round of amendments was ongoing work to revamp permitting processes for Minor Outdoor Dining (aka “Sidewalk Dining”) and create new permit types to allow for outdoor use of public and private property in such a way that indoor businesses could expand their footprints into the public right of way and onto surface parking lots.
Discussion
The proposed Emergency Interim Zoning Ordinance (IZO) and Emergency Ordinance (EO) will have the effect of preserving the temporary use of outdoor 5 of 25
space programs, or “Santa Monica Outdoors,” as the emergency orders enabling them are due to expire. For clarity, these two related ordinances address:
• Use of the Public Right-of-Way: Programs in the public right-of-way, such as parklets and use of the sidewalk, are addressed through the Emergency Ordinance. • Use of Private Property: The Emergency Interim Zoning Ordinance addresses provisions that are in the Zoning Ordinance and therefore apply mostly to private property. These include outdoor dining in parking lots or courtyards, as well as a handful of other zoning-related provisions.
The current “Santa Monica Outdoors” program as implemented through the COVID-19 emergency orders relies on modifications to City processes and regulations to create optimal conditions for economic recovery and business operations during the pandemic. These modifications include suspension of certain zoning requirements, reduction of processing times through streamlined application requirements and regulations, and waiving or suspending fees that are typically associated with issuing permits for use of public property for commercial activities. The current Santa Monica Outdoors program is proposed to be carried forward “as is” to continue to support small business recovery and to afford staff time to establish a more comprehensive and institutionalized program for the long term. The programs recommended by this report for continuation include:
• Parklets in the Public Right of Way. Currently, approximately 90 parklets are located in Santa Monica streets serving predominantly restaurants, personal services businesses (such as nail salons), and fitness businesses. Parklets are licensed for private use, meaning that they are operated and maintained by local businesses for the exclusive use of paying customers. Table service and alcohol sales are permitted within parklets in accordance with State Alcohol and Beverage Control and City emergency regulations.
There are three types of parklets currently utilized in Santa Monica:
o “Kit of Parts” Parklets that involve metal rail fencing anchored by heavy planters and landscaping. Many businesses have procured these materials on their 6 of 25
own. Through a $15,000 allocation from the ERTF, the City loaned 15 of these parklet kits to businesses free of charge. Additional “kit of parts” were purchased by Downtown Santa Monica, Inc., (DTSM) and distributed to businesses in the Downtown. The Montana Avenue Merchants Association further fortified the Montana Avenue parklets with the addition of water-filled barriers at the ends. o Deck and Railing Parklets that conform to the City’s standards for structures in the public right of way. Many local businesses have invested in fabricating substantial parklet designs out of wood or metal. o The Main Street Al Fresco parklets that are characterized by the use of concrete K-rails. Many businesses have created decks within this space that are level with the curb, effectively creating a wider sidewalk space for outdoor dining. The original City-built parklets that were created as a pilot in 2015 have been integrated into the Al Fresco project.
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• Temporary Outdoor Business Use of Private Property. Currently, approximately 70 local businesses are using a Temporary Outdoor Use Permit to conduct retail, restaurant, and fitness activities on surface parking lots, courtyards, and other private spaces to help offset the pandemic-related indoor use restrictions. This opportunity serves many businesses that are not able to have a parklet in front of their business, particularly on commercial streets such as Pico Blvd. and sections of Wilshire and Ocean Park Boulevards with higher traffic speeds. Currently, the primary activity this supports is outdoor dining. Similar to parklets, table service and alcohol sales are temporarily permitted within these spaces, and parking requirements are suspended.
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• Satellite Dining on the Third Street Promenade. Approximately five restaurants in the immediate vicinity of the Promenade that were limited in their ability to use parklets and/or sidewalk dining in front of their business (due to bus lane, red curb, narrow sidewalk, or other limitations) have been approved and are operating parklet-style dining in the center of the Promenade right of way. Traditional rules required outdoor dining to occur directly adjacent to its restaurant tenant space, but emergency orders have permitted restaurants to set up tables and chairs in the pedestrianized roadway, leaving the sidewalk free and clear for pedestrian activity and window shopping. • Satellite Use of Main Street Parking Lane. The closure of the Main Street parking lane has enabled Main Street businesses to continue to operate fitness, retail, and personal services over the past year. This program has been very popular with the community and businesses alike and there is tremendous interest in using more of the street for this purpose. The Main Street Satellite program allows unclaimed spaces in the parking lane to be used for permitted uses by other licensed Santa Monica businesses (other than restaurants) as allowed in the Zoning Ordinance. • Expansion of Sidewalk Dining. Under the Temporary Outdoor Use Permits, existing permit holders and new operators were able to temporarily expand their sidewalk footprint for no charge and without triggering any parking requirements. • Outdoor Dining on the Pier. Restaurants are currently using the public right-ofway and Pier deck for outdoor dining. With the reopening of Pacific Park and the controlled reopening of the remainder of the Pier, continuing to allow for outdoor dining in certain sections of the Pier is important to serve customer demand and to support the survival of the Pier tenants. This will need to be balanced with upcoming capital improvement projects to the Pier deck and anticipated partial re-opening of the Pier deck to parking starting in September 2021
Fee Waivers to Support Outdoor Use Programs
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To support economic recovery and encourage businesses to participate in the temporary outdoor use programs, the following fees have been waived since the launch of the program. No application fee has been assessed for businesses applying for a Temporary Outdoor Use Permit. The temporary outdoor encroachment agreement signed by all businesses participating in the program includes the following table of fees for use of public space. The fees were based on the “Outdoor Dining Without a Barrier” fees set forth in Resolution No. 10586 (CCS) adopted by City Council on June 21, 2011. The emergency orders and agreement allowed the City to begin charging fees no earlier than March 1, 2021 for satellite uses of the Third Street Promenade and Main Street and November 1, 2020 for all other expanded uses of public space only after providing 30 days written notice and if the County’s Safer at Home Order allowed the business to operate at 50% or greater indoor capacity. Due to the continued economic hardships that local businesses have faced, the fee waivers have continued.
Per the existing local emergency orders, staff can start charging for the use of public property with 30 days’ notice. Staff recommends that Council extend these fee waivers through December 2021 with fees then being charged based on the fee schedule provided in Table 1 below using the rates from calendar year 2020, after providing 30 days’ notice to allow businesses to terminate their agreements if they choose. Staff also recommends that the outdoor dining license fees for the existing licensees be waived through December 2021 and that Council adopt a new resolution setting outdoor dining license fees using the rates from calendar year 2020 with annual adjustments for Consumer Price Index commencing January 1, 2023, and each year thereafter.
Table 1:
Use of Public Space Fees in Temporary COVID-19 Outdoor Encroachment Agreement Location Monthly Charge (per square foot)
3 rd Street Promenade $2.66
Transit Mall (Santa Monica
Boulevard/Broadway)
$2.66
Ocean Avenue $2.48
Montana Avenue $2.20
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Wilshire Boulevard $2.12
Main Street $2.12
Ocean Park Boulevard $2.12
Pico Boulevard $2.12
Other Streets $2.12
This extended fee waiver program reflects the economic hardships our small businesses are continuing to face, especially restaurants. According to Santa Monica’s latest quarterly sales tax report (Q4 2020), restaurants have experienced a 50- 66% decrease in sales from the same quarter in 2019 just prior to COVID. It is estimated that those businesses that are able to survive will take at least one year to recover to their pre-pandemic levels. Outdoor fitness and community wellbeing have been further supported by reduced fees at Palisades Park and waived fees at all other parks and the beach for Commercial Fitness Trainers. Staff are requesting the continuation of this program, to be assessed on a quarterly basis in accordance with LA County and State public health guidance and local demand for these services.
The following is a summary of fees that have been waived to support the outdoor use program:
• Sidewalk Dining
o Temporary Encroachment Agreement Licensing fees
o Monthly Outdoor Dining License Agreement Fees (for businesses who had approved sidewalk dining prior to COVID)
o Application fees for outdoor dining
o SMFD Special Event Permits for canopies and tents greater than 400 sf • Parklets
o Application fees
o Temporary Encroachment Agreement Licensing fees
o SMFD Special Event Permits for canopies and tents greater than 400 sf • Private Property
o Planning application fees for Temporary Use Permits
o Building permit fees waived in certain circumstances
• Sidewalk sales & seasonal sales
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o Planning application fees for Temporary Use Permits
• Outdoor Fitness
o Commercial Fitness Trainer Permits in parks and beach (reduced fees at Palisades Park)
Table 2:
Santa Monica Outdoor – Estimated Value of Fee Waivers
Program Beneficiaries Estimated Value of Fee
Waivers
Temporary Sidewalk
Dining Encroachment
License Fee
40 businesses - 27,542
SF total area @
$2.12/SF/mos
$700,668*
Monthly Sidewalk Dining
license fees (permanent
program)
72 restaurants (existing
ODAs pre-COVID)
$569,000
Parklets 90 businesses - 164 meters
@ $2,600/meter (annual
average revenue per parking
meter)
$426,000*
Permit Application Fees 40 businesses @ $1,490.34
(Minor Outdoor Dining
Permit Fee)
$59,600
SM Fire Dept Event Permits 11 businesses @ $228.98 -
$824.04
$3,321
Beach + Park Fitness Permit
Waivers
32 fitness trainers @ $450-
$1,350/quarter
$14,400
Total Value
of Santa Monica Outdoors
$1.8 million/year
*This fee is based on the estimated value of these new uses.
Outdoor Programs Extended Through Other Means
Several other components of Santa Monica Outdoors are being extended through other measures that do not require an adopted ordinance or Council action. These include:
• Outdoor Fitness: the permitting of fitness and recreation training in City parks, the beach, and City-owned parking lots is being extended through updates to the existing Fitness Trainer Permit program, as authorized by SMMC
4.55.030. Specifically, staff are proposing to increase group sizes at Barnard Way Linear Park and Tongva Park as well as to add new locations at 12 of 25
Ken Genser Square, Airport Park parking lot, and Memorial Park, as authorized under SMMC 4.55.030.
• Outdoor Community Events: the permitting of drive-in events and allowed outdoor events is being extended through changes to the Administrative Instruction on Events and Site Guidelines, in accordance with the existing Events Ordinance (SMMC Chapter 4.68).
Popularity of the Santa Monica Outdoors Program –
Residents, Businesses, and City Operations
To gather feedback about the suite of temporary outdoor programs, two surveys were administered. The first, a survey for business operators, received 441 responses, while another for residents and other patrons of businesses received 5,299 responses. Comprehensive responses from each survey, including select respondentsubmitted photographs, are included in Attachment D.
Business Survey Results
To date, approximately 212 businesses have participated in the temporary use of outdoor space programs, joining the three parklets and 72 sidewalk dining locations that pre-date the pandemic. According to the business survey, businesses are overwhelmingly supportive of these programs, including those that have not expanded outdoors. Their responses challenge long-held notions about the importance of street parking in Santa Monica’s business districts to a business’s success, with 83% valuing a parklet in front of their business more than curbside parking spaces. An even greater number, 88%, think the parklet program should be extended. And 93% of business that have expanded outdoors on private property (such as in parking lots or courtyards) would like to continue to do so.
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Businesses are supportive of the placemaking effect that parklets have on their districts, many of which are park-once destinations where people patronize more than one establishment per visit. Approximately two-thirds of business survey respondents do not believe there should be restrictions on the number of parklets per block and only 20% state that they would be opposed to a neighbor’s parklet in front of or near their storefront. Similarly, businesses are supportive of the permissive regulations that guide the day-to-day administration of the program. Fees have been waived to support small businesses during this challenging period and 58% support continuing to waive these fees until at least January 1, 2022. Charging fees at this juncture would have a chilling effect on participation, as only 40% of businesses stated that they would continue to operate a parklet if fees are charged. Further, 98% believe that restaurants and cafés should be allowed to serve food and drink (including alcoholic beverages) to customers in parklets, in contrast to prior rules that prohibited this activity at the three parklets established under the pilot program on Main Street.
Overall, parklet operators are grateful for the opportunities afforded by the program. Nine out of ten respondents credit their parklet with keeping their doors open through the pandemic, benefitting the community with essential goods and services, while also keeping community members employed. And now, with months of 14 of 25
experience, 85% view the parklets as integral to both their businesses’ operations and identity.
Residents and Visitors Survey Results
According to the resident survey, the community is also heavily invested in the future of these programs, with 5,299 people taking the time to provide input. This sizable cohort is clear about their overwhelming support of these programs and desire to see them become permanent fixtures of the Santa Monica landscape. When asked to choose between outdoor business operations on private property and restoring parking spaces, 96% of respondents selected to allow outdoor operations to continue. A similar 92% think the parklet program should be extended, with 90% affirming that parklets provide a positive benefit to the Santa Monica community.
When asked to rate their experiences on a five-star scale, with 5 being the best, parklet visitors gave an average score of 4.6 stars, while private property expansion patrons (parking lot diners) gave a slightly higher average of 4.7 stars.
Three out of four respondents feel that parklets are a worthwhile use of limited public curbside parking. Patrons were also asked to select the various modes of 15 of 25
transportation they used to access parklets, and more people walk to parklets (65%) than drive (62%).
These programs have served as economic development opportunities for businesses and have assuaged public health concerns for patrons, allowing them to feel comfortable emerging from Safer at Home Orders to access essential goods and services. A staggering 92% state that they are more likely to patronize a business because it has a parklet, and 95% of patrons feel safe when in a parklet.
Similarly, 95% are more likely to patronize a business that has expanded outdoors on private property into parking lots and courtyards.
City Staff and Public Safety Perspective on Outdoor Uses The creation of the temporary Santa Monica Outdoors program was coordinated with a range of City staff who have formed the ERTF Business Re-Opening Team and have a deep breadth of experience with varying roles servicing the public right of way. The programs were drafted and designed by staff in Planning, Mobility, Economic Development, Public Works, and the City Attorney’s Office. Throughout the implementation of the parklet program, private outdoor dining, and other outdoor activities mentioned in this report, staff from Fire, Police, Big Blue Bus, Street Services, Urban Forest, Parking, and Code Enforcement have also worked collaboratively to design solutions and monitor performance, including limited enforcement activities.
Staff from these divisions continue to remain supportive of the Santa Monica Outdoors program and cite very few concerns related to the proposed continuation of these activities “as is.” Issues that will require deeper coordination as a more formalized program is developed for the summer of 2022 include:
• Street cleaning and collection activities around outdoor dining activations • Tree canopy management in new parklet areas
• Design and engineering of parklet “templates” that institutionalize a range of uniform criteria related to Public Safety and Public Works standards, including the ability for the City to remove a parklet to conduct road or utility repairs 16 of 25
• Educational materials for parklet operators about “do’s and don’ts,” design standards and operational requirements
• Analysis and
policy development for a City curb space management program to address the appropriate balance of parking, loading zones, number of parklets, etc.
Related Efforts: Summer Weekend Closure Plan for Main Street On April 27, 2021, Council directed staff, as part of economic recovery efforts, to consider the proposals of the Main Street Business Improvement Association (MSBIA) and the Ocean Park Association (OPA) and return to Council with a plan to implement a pilot program for temporary summer weekend closure of all or part of Main Street to automobiles and bus traffic, as well as to assess the pilot’s traffic impacts on surrounding neighborhoods. Staff has been working with internal and external stakeholders to develop a pilot program and returns now to Council to seek approval to implement the following pilot program plan.
Staff recommends closure of the roughly 1,000 feet between Hill Street and Kinney Avenue and is drafting a Temporary Traffic Control Plan to that effect. This differs slightly from what MSBIA and OPA requested, which sought closure of two short segments -- between Hill Street and north of Ashland Avenue as well as between Ashland Avenue and Kinney Street. As proposed by staff, the plan includes considerations of bikes and buses as well as passenger vehicles. Due to the potential disruption to bus ridership on weekdays, and the potentially inequitable impact of closures on transit-dependent riders, the closure would be limited to weekends (Saturday-Sunday). The exact hours would be part of the traffic control plan process.
Currently, three to four weekend closures are being contemplated and would be held once per month. MSBIA and OPA recommend starting in July. Staff is working toward implementing quickly, but final dates will be subject to the availability of traffic control services, as well as business and community input.
To assess event transportation impacts, staff has drafted a data collection plan that includes:
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• vehicle volume counts on segments of 2
nd and 3rd Streets south of Ocean Park
Boulevard,
• multimodal volume counts on Main Street and Neilson Way (including vehicles, bicycles, and pedestrians), and
• on-street parking occupancy for 2nd and 3rd Streets south of Ocean Park Boulevard.
These data would be collected in late June as a baseline for “business as usual” and then during the first event weekend for comparison. Staff is getting cost estimates from vendors and is currently reducing scope to reduce costs. In addition, staff will use existing data sources on bus ridership and parking meter and lot utilization. Staff will work with MSBIA/OPA regarding any intercept or public perception surveying to be done.
As part of their request, MSBIA/OPA have committed to leading the outreach process and engaging their membership to assist in tasks leading up to and during the event. Staff has provided MSBIA/OPA with a summary of past outreach efforts to assist in their development of an outreach strategy. They are in the process of identifying which tasks can be achieved with the time and resources available.
The City has a total of approximately $70,000 available for all the Main Street pilot closures sourced from the Metro grant for the 2020 COAST open streets event, which could not occur due to the pandemic. Metro has allowed for repurposing of funds to this and other Art of Recovery projects. If event costs exceed the available $70,000, including event public safety staffing, the event partners will need to scale back the event or seek other strategies and funding sources.
To enable businesses to operate on the portions of Main Street roadway that are subject to temporary closure, staff recommends that Council adopt the Emergency Ordinance, which, in addition to extending the authorization in the emergency order supplements to use the public space, also authorizes the Director of the Community Development Department or designee to issue permits to and enter into licensing 18 of 25
agreements with eligible businesses for use of the Main Street closure area. The portions of the roadway that are unoccupied by businesses will be considered a common area and the City will bear the risk of liability for any injuries that may occur there. The businesses that have obtained a permit and licensing agreement to use the Main Street closure area will be required to maintain insurance as set forth in the Emergency Ordinance, similar to the requirements for use of other public space under the Santa Monica Outdoors program.
MSBIA and OPA have expressed concern to staff that requiring businesses to engage in a process to obtain a permit for a short-term, temporary pilot program may discourage businesses from participating in the program. Staff recognizes that concern and are working to streamline the application and permitting process so that it will be as seamless as possible. However, this type of process—the issuance of a permit, a hold harmless agreement, and requirement to maintain insurance—is typical for use of public space, including, for example, community event permits under SMMC Chapter 4.68, outdoor dining licenses under SMMC Section 9.31.200, shared mobility devices under SMMC Chapter 3.22, and commercial fitness instruction under SMMC Section 4.55.030.
Because such a process minimizes the City’s exposure to liability for use of public space arising out of private or commercial activity, the City Attorney’s Office recommends that Council require an application and permitting process, including the submission of insurance information, as proposed in the Emergency Ordinance.
Finally, staff recommends that Council adopt the resolution (attachment C) that authorizes temporary closure of Main Street to comply with Vehicle Code Section 21101, which requires a resolution or ordinance to temporarily close streets if it is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing.
Related Efforts Part 2 – Supporting Community-Serving Events in Downtown Santa Monica
As part of economic recovery efforts, Downtown Santa Monica, Inc. (DTSM) is seeking authority from the City to advance community-serving events, programing, and arts activations in key public spaces downtown (including the Third Street 19 of 25
Promenade and other City-owned locations), which will stimulate pedestrian activity in and increase visitors to the downtown district. Staff are seeking Council authorization to negotiate and enter into a MOU which will give DTSM the ability to quickly program more community-serving events and minimize impact on City staff.
As the plan develops, staff will return to seek any amendments to the events ordinance that may be necessary to accomplish this.
Both DTSM and MSSBIA have proposed temporary street closure pilot programs to support the expansion of “Santa Monica Outdoors” activations in our commercial districts. To support these efforts, staff is working on updating the Community Events Permit process and administrative instructions to allow for temporary street closures in Santa Monica’s commercial districts to help support the safe re-opening of our local businesses and promoting community-service activations in our commercial districts .
These partnership events would be authorized through a MOU and community event permits. They would also necessitate staff-approved Temporary Traffic Control Plans.
Other Zoning and Land Use Related Changes that are Recommended to be Continued There are a range of other zoning and land use related changes that were made throughout the pandemic to facilitate emergency response and also support local businesses. Changes that are recommended to continue through the IZO and fee resolution are summarized below.
Changes Recommended to continue through the IZO:
• Temporary Permitted Use in all Zoning Districts: Public safety facilities and emergency shelters
o Purpose: Provides flexibility in establishing uses related to health and safety supportive of emergency response and the pandemic recovery. • Temporary drive-through facilities for hospitals, clinics, and pharmacies, only for COVID-19 testing and vaccination
o Purpose: The Zoning Ordinance prohibits new drive-through facilities. This special exception is necessary as requests to establish testing and 20 of 25
vaccination sites remain ongoing. Many of these facilities are established within tented parking spaces where tests or vaccinations are administered while patients remain in their vehicles.
• Temporary use permits for sidewalk sales and seasonal sales that do not need to comply with Santa Monica Outdoors pilot program and for uses permitted pursuant to
9.31.370(B) of more than 45 days and not exceeding 180 days (6 months) - o Purpose: Provides flexibility for outdoor temporary uses supportive of economic recovery efforts and consistent with social distancing practices during the pandemic recovery.
o
• Off-site alcohol sales for restaurants and retail alcohol sales for retail establishments, consistent with the State Alcoholic Beverage Control’s (ABC) temporary relief measures.
o Purpose: This provision provides restaurants and retailers that sell alcoholic beverages greater flexibility to provide off-site sales during this recovery period, consistent with ABC’s temporary relief measures.
Changes Recommended to be Continued Through Fee Resolution • Planning application fees waived for Temporary Use Permits issued pursuant to the Emergency Interim Zoning Ordinance
o Purpose: Extending the waiver of temporary use permit application fees would maintain consistency with the Temporary Outdoor Use Program and, as proposed, would continue through the term of the emergency interim zoning ordinance.
Environmental Analysis
The proposed IZO and EO to continue certain emergency provisions including temporary outdoor use of public right-of-way, zoning changes, and procedural changes to aid in economic recovery are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the 21 of 25
record, it can be seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. The proposal would not result in adverse physical environmental effects since such uses are compatible with surrounding commercial uses, would not create hazards or adverse health effects to any sensitive residential uses, and are permitted land uses in the Zoning Ordinance or have been permitted in many areas of the City for over a year. Therefore, no further environmental review under CEQA is required.
In addition, the pilot program to close Main Street on summer weekends is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the State Implementation Guidelines. The proposed pilot program would be a temporary closure of all or part of Main Street for bicycle and pedestrian use. This is a temporary and minor alteration to the street in favor of bicycle and pedestrian improvements.
Coastal Act
In May 2020, the City submitted a coastal development permit waiver request to the Coastal Commission detailing actions undertaken in response to County and State health officer orders, which was granted by the Commission shortly thereafter. At that time, Coastal Commission staff advised that the City need only to report additional temporary measures undertaken in response to health officer orders to the Coastal Commission. Since that time, City staff has remained in contact with Coastal Commission staff to report temporary measures undertaken, including those that implemented the use of public and private outdoor spaces authorized by the Executive Order. The temporary uses that are proposed to be continued by the Santa Monica Outdoors Pilot program and the Emergency Interim Zoning Ordinance are consistent with current permitted uses and will not result in installation of any permanent structures. Should Council adopt the Emergency Ordinance and Emergency Interim Zoning Ordinance, City staff will report the extension of these temporary uses to Coastal Commission staff in accordance with the Coastal Commission’s prior directive. 22 of 25
Next Steps After Extension of Santa Monica Outdoors
A broader policy for the parklet program will be recommended to Council at a later date, including permits and fees that would need to be put in place at minimum to cover staff administration costs and to help offset any loss in parking revenue, where needed. In the meantime, the proliferation of outdoor dining activity will help to generate muchneeded sales tax revenue. Restaurants generated an estimated $7 million in sales tax revenue for the City of Santa Monica last year. Allowing our businesses to quickly pivot and use the outdoors has resulted in the most significant business retention measures under the City’s Economic Recovery efforts. Continued use of this space will help these struggling businesses survive and further increase sales tax revenue needed to fund our essential City services and schools. The gradual phasing in of outdoor dining fees will help to generate additional revenue for the City once our businesses have been able to safely resume full indoor operations and survive.
Over the course of the following fiscal year, ERTF Business Reopening staff will work collaboratively with City divisions to develop standards and regulations for the permanent incorporation of Santa Monica Outdoors into the municipal framework. This work will include authoring a comprehensive program that is inclusive of design standards and guidelines, processes for application review and monitoring of outdoor spaces, fees for use of public right of way, and staffing assignments or budget requests for the review, permitting and performance inspection of all spaces authorized under the program and funded using new program revenues. Requests for enhanced staffing levels to administer the program would be addressed during the mid-year or exceptionbased budget process. Outreach to businesses will be a critical component of balancing economic development interests with the safety and maintenance of our public and private commercial activities.
ERTF staff envisions returning to Council at a mid-way point in the program development for guidance on key policy areas that arise and report on progress. Staff may also consult with a variety of Boards and Commissions who have province over the public right of way, design of private commercial buildings and spaces, and zoning. 23 of 25
Past Council Actions
In response to the declaration of an emergency and subsequent restrictions on business activity, the City enacted several Emergency Orders that were ratified by Council. The Emergency Orders relevant to this staff report are shown in the table below.
Issue Date Description
3/17/20 (Attachment E) Fourth Revised Supplement – public safety facilities, hospitals and clinics, and emergency shelters permitted use in all zoning district; drive-through facilities for restaurants permitted use; drive-through facilities for clinics, convenience markets, farmers markets, general markets, hospitals, and pharmacies permitted use
3/21/20,
modified
12/8/20 (Attachment F)
Seventh Supplement, as superseded and revised by Thirtieth Supplement – Off-site and retail alcohol sales
4/24/20 (Attachment G) Twelfth Supplement – stays longer than 30 days permitted in hotels/motels
8/18/20 (Attachment H) Third Revised Eighteenth Supplement – temporary outdoor uses; extension of deadlines for planning, review, and permitrelated actions 9/18/20 (Attachment I) Twenty-Sixth Supplement – permit use of City sites for drive-in movie theaters and other entertainment events; permit gyms and fitness in City parks, beaches, and park parking lots 10/7/20 (Attachment J) Twenty-Seventh Supplement – temporary use permits to allow events up to 180 days
11/24/20 (Attachment
K)
Twenty-Eighth Supplement – satellite use of Main Street parking lane; waive permit fees for tents larger than
400sf being used for temporary outdoor uses with permits filed with SMFD; temporary water suspension of commercial water service at request of owners; clarification regarding extension of deadlines for planning, review, and permit-related actions. 1/28/21 (Attachment L) Thirty-Third Supplement – satellite outdoor dining extension for Third Street Promenade
Financial Impacts and Budget Actions
The financial impact of these actions will result in continued reduction in City revenues which are being offset by the Federal stimulus funds. Because many of the temporary Santa Monica Outdoors programs were developed as a crisis response, 24 of 25
no existing fees are in place against which to judge revenue loss. Table 2 (above) lists the $1.8 million in value of “Santa Monica Outdoors” to the businesses and does not reflect the actual decreased revenue to the City as many of the programs authorized under the emergency orders are new programs that did not exist prior to COVID (e.g. private parklets). The only existing fee that is subject to an impact analysis is the extended waiver of pre-pandemic outdoor dining monthly licenses, which amounts to a loss of approximately $569,000 per year and is projected to generate similar revenues again in the Bi-annual Budget forecasts in FY21/22 and FY 22/23. Any reduction in fees in FY21/22 would be offset by the ARPA Federal Stimulus funds in the form of a grant to the General Fund to help cover extended small business outdoor dining fee waivers.
Staff has also budgeted for 50% reduction in revenue for the next fiscal year in anticipation of the Commercial Fitness Permit fee waivers. To minimize future losses in parking revenue tied to “Santa Monica Outdoors,” staff are recommending the Pier parking deck re-open by September 1, 2021 to generate much-needed revenue for the Pier. The Pier restaurants have designated outdoor dining areas that will not be impacted by the parking deck re-opening. Citywide, parking revenues vary seasonally, but the current budget includes a 10-month revenue total estimate of $1.18M (average of $118K per month). For the Downtown and Main Street districts, the loss in on-street metered parking during COVID has been offset by parking revenue generated from the public parking lots and structures.
Attachments
A. Proposed Emergency Ordinance
B. Proposed Emergency Interim Zoning Ordinance
C. Fee Resolution Waiving Certain Fees on a Temporary Basis, Establishing Fees for Santa Monica Outdoors Pilot Program, and Authorizing Temporary Closure of Portions of Main Street
D. Santa Monica Outdoors Survey Results
E. Fourth Revised Supplement (weblink)
F. Seventh Supplement (weblink)
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G. Twelfth Supplement (weblink)
H. Third Revised Eighteenth Supplement (weblink)
I. Twenty-Sixth Supplement (weblink)
J. Twenty-Seventh Supplement (weblink)
K. Twenty-Eighth Supplement (weblink)
L. Thirty-Third Supplement (weblink)
M. Fee Resolution Establishing Fees for Outdoor Dining Area Licenses Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council
Attachments:
A. Exhibit A: Proposed Emergency Ordinance (SMMC Chapter 6.40) B. Exhibit B: Life Outdoors IZO
C. Exhibit C: Resolution Waiving and Establishig Certain Fees and Authorizing Temp. Closure of Main St
D. Exhibit D: Survey Results & Select Respondent-submitted Photos E. Exhibit E: Fourth Revised Supplement
F. Exhibit F: Seventh Supplement
G. Exhibit G: Twelth Supplement
H. Exhibit H: Third Revised Eighteenth Supplement
I. Exhibit I: Twenty-Sixth Supplement
J. Exhibit J: Twenty-Seventh Supplement
K. Exhibit K: Twenty-Eighth Supplement
L. Exhibit L: 33rd Supplemental Order
M. Exhibit M: Fee Resolution Establishing Fees for Outdoor Dining Area Licenses N. Written Comments