City Council
Report
City Council Meeting: June 28, 2022
Agenda Item: 10.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works
David Martin, Director, Community Development Department Subject: Introduction and First Reading of Ordinance Adopting SMMC Chapter 6.42 Establishing a Permanent Santa Monica Outdoors Parklet Program and Adoption of a Resolution Establishing Fees
Recommended Action
Staff recommends that the City Council:
1. Introduce for First Reading an Ordinance adopting Santa Monica Municipal Code Chapter 6.42 to establish a permanent Santa Monica Outdoors Parklet Program;
2. Adopt a Resolution establishing monthly license fees for the Santa Monica Outdoors Parklet Program; and
3. Adopt the CEQA findings in the staff report under “Compliance with the California Environmental Quality Act”.
Executive Summary
Following a two-year pilot program for parklets on public streets, implemented to support local businesses through the COVID-19 pandemic, the City seeks to preserve the popular outdoor dining amenity by implementing the Santa Monica Outdoor Parklets Program (see new proposed SMMC Chapter 6.42 (Attachment A). Building on the existing pilot program’s framework and lessons learned, the proposed permanent program will provide standards for the construction of parklets within the public right-ofway for improved access, maintenance and servicing of City infrastructure, and guidelines for character-defining enhancements such as lighting and landscaping.
The proposed Santa Monica Outdoor Parklets Program (Program) will continue to utilize the streamlined permitting process established during the pandemic and will be 2 of 14
institutionalized through a new Public Works permit that carries a two-year term in addition to a licensing agreement. Fees to support the program were reviewed by Council as part of the biennial budget study session on May 24, 2022. These include fees for plan review and inspection, wastewater fees (if applicable) as well as right-ofway licensing fees and a security deposit. A new parklet inspection fee from the Fire Department was not included in the biennial budget study session because the fee was not established at the time. It has been incorporated into the fee structure below in Table 2. Staffing needs, including a part-time Public Works Inspector position to monitor parklet activity is discussed in the body of this report. The position would be fully funded by fees collected from this proposed Program.
The proposed Program and its associated fees would be in place before the September 30, 2022 expiration of the Temporary Outdoor Use permits and associated license agreements that currently support the Santa Monica Outdoors Pilot Program.
Background
Temporary Outdoor Use Permits authorized under the Santa Monica Outdoors Pilot Program (SMMC Chapter 6.40) have been a critical component of the City’s crisis response to sustain locally owned small businesses during the COVID-19 pandemic.
During this period, the City enabled a variety of temporary outdoor uses such as parklets, dining on the Promenade roadway, Promenade satellite outdoor dining, Main Street “K-Rail” parklets, Ocean Avenue boardwalks, expanded pier deck dining and fitness zones, and use of private property parking lots for commercial activity including fitness training under the Santa Monica Outdoors Pilot Program umbrella.
These permits, which were issued on both public and private property, facilitated the rapid transition of traditional indoor commercial activities such as dining, retail, and fitness to outdoor venues, which helped bolster the local economy, retained local businesses and jobs, and protected and enhanced the mental and physical wellbeing of residents and visitors.
The Temporary Outdoor Use Permits and associated license agreements for the public right of way are set to expire on September 30, 2022, for the following amenities:
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• 90 parklets,
• 17 promenade extended dining areas (satellite and/or roadway dining), • 5 expanded pier dining areas, and
• 102 sidewalk dining patios
While this report is focused exclusively on the transition of the pilot parklets into a permanent program, the table below describes the timeframe for the transition of all the programs under the Santa Monica Outdoors umbrella.
PROGRAM Transition Date
Parklets
Businesses operating parklets under the Santa Monica Outdoors Pilot Program will be required to transition to the standards and guidelines of the permanent parklet program by the transition date. If businesses wish to continue providing their services in the public right of way, they will have the option to participate in either the sidewalk dining program that pre-existed the pandemic or the new parklet program with associated license agreements. The parklet program and its associated fees will be in place before the September 30, 2022 expiration of the Temporary Outdoor Use permits to give operators and staff enough time to begin transitioning.
October 1,2022
Private Property Operations
On private property (predominantly parking lots), the temporary use of private outdoor space for commercial activity, such as dining, fitness or salons, has already been extended through December 31, 2022, through an Interim Zoning Ordinance. Staff will return to Council prior to the expiration of the IZO with a recommendation for a permanent program to address the approximately 93 outdoor operations that currently exist on private property.
December 31,
2022
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Promenade Roadway and Satellite Dining
Staff will return to Council with recommendations for Promenade roadway outdoor dining permits prior to the expiration of the Temporary Outdoor Use Permits on September 30, 2022. Staff will sunset the satellite dining permit.
By September 30,
2022
Pier Deck Dining and Outdoor Operations
Extended dining areas on the Pier will be evaluated on a case-bycase basis as part of modifications to existing licensing agreements with Pier tenants, with important considerations such as infrastructure repair and emergency access. Some operators will require a new license agreement, which staff will assess.
Ongoing (does
not require
Council action)
Parklets
The Santa Monica Outdoors Pilot Program has been popular with the business community as well as residents and visitors. Specifically, parklets installed over street parking spaces have become an especially popular component of the Outdoors Pilot Program. Parklets convert curbside parking spaces into vibrant extensions of the sidewalk to provide more space for people. Parklets can be licensed for private use, meaning 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 the California Department of Alcoholic Beverage Control regulations and the City’s Interim Zoning Ordinance 2704.
In April 2022, staff conducted surveys (Attachments C and D) asking businesses, residents, and visitors for their input on the future of the program specifically as it pertains to parklets. Of those that participated in the survey, 84% of local businesses (135 respondents) replied that they support parklets in Santa Monica and 85% of residents and visitors (655 respondents) said the same. When asked if parklets are preferred over parking or loading, 62% of businesses (126 respondents) responded yes, parklets are preferred and 85% of residents and visitors (654 respondents) said the 5 of 14
same. Staff has responded by developing a comprehensive parklet program that helps activate public spaces for community enjoyment, placemaking, and economic recovery.
Past Council Actions
Below are past Council actions in response to the declaration of an emergency and subsequent restrictions on business activity that were ratified by Council.
Date Description
8/18/2020 Third Revised Eighteenth Supplement – temporary outdoor uses; extension of deadlines for planning, review, and permit-related actions 6/8/2021 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
5/10/2022 Introduction and First Reading of Ordinance Extending Santa Monica Municipal Code Chapter 6.40, Santa Monica Outdoors Pilot Program; Introduction and Adoption of Emergency Interim Zoning Ordinance Changes to Support Santa Monica's Economic Recovery; and Adoption of Resolution Related to Fee Waivers and Reductions Discussion
The Santa Monica Outdoors Pilot Program has transitioned parklets from a Citymanaged pilot located on Main Street starting in 2015, to a lifeline for struggling businesses from 2020 to 2022 during the COVID-19 pandemic, to now becoming a popular feature of Santa Monica’s outdoor lifestyle. The proposed Program focuses on creating a sustainable policy and fee framework to support local businesses, maintain public safety, and recover City maintenance and improvement costs. The proposed Program also aims to better align the proliferation of parklets with adopted City policy for enhanced pedestrian experiences in the City’s commercial areas.
The proposed Program is put forward to mimic the existing sidewalk dining program process and would preserve much of what was established for parklets during the temporary outdoor use emergency program, institutionalizing what has been successful, 6 of 14
modifying what has not, and developing clear regulations and guidance for a long-term, safe, and sustainable program.
Building from the success of the Santa Monica Outdoors Pilot Program in supporting businesses and social connectivity within the community, staff recommend adoption of a permanent program that includes:
• A streamlined permit process based on sidewalk dining that utilizes a new Public Works permit on a 2-year term with an accompanying licensing agreement. • Standards and guidelines for the construction of parklets in the right-of-way that will be established through administrative regulations. These include engineered plans for the creation of safe and durable ADA accessible decks, traffic-rated barriers for safety, and guidelines for optional enhancements to elevate the consumer experience.
• Fees for plan review and inspection, monthly licensing fees for use of the public right-of-way, wastewater capital facilities fee and a security deposit (reviewed by Council May 24, 2022).
The following is an overview of significant changes, staffing needs, and formalized standards included in the new parklet program.
Parklet Size
Current rules do not limit the number of parking spaces an operator can use for their parklet. The proposed Program would allow a maximum of two parking spaces (approximately 320 square feet) per business. Balancing demands of the curb will help facilitate multiple modes and better accommodate important uses such as deliveries or curbside pick-up, and more easily allow for City maintenance work within the right-ofway. Finally, right sizing parklets will be more manageable for staff across many departments. If the parklet operator’s frontage space is not directly in front of the parking space or if half or more of such a space is in front of a neighboring tenant space, the parklet operator will be required to obtain written consent from the neighboring tenant in order to submit their parklet application. If the neighboring tenant 7 of 14
space is vacant, the parklet operator will be required to obtain written consent from property owner or its agent in order to submit their parklet application. This is similar to a process used by the City of San Francisco in administering their parklet program for neighbor consent. If a new tenant moves in after a parklet has been approved, the new tenant will have an opportunity to deny the use of the space during the renewal period, which occurs every two years.
Fee Structure
Permit fees for parklets have been waived since the emergency pilot program was established in June 2020. This was designed as a one-time interim measure to help businesses impacted by health orders and the costs of adapting their businesses to remain profitable. Today, businesses have begun to see a recovery and have absorbed many of the one-time costs associated with adapting their operations.
Staff assessed fees from peer cities to understand baseline costs (Attachment B).
Although fees vary from city to city, on average the City of Santa Monica’s annual license fees to operate a parklet (one space) in the public right-of-way (PROW) are higher than that of Culver City and Long Beach but lower than Beverly Hills.
Table 1: Comparison of Parklet License Fees in Other Cities
LICENSE FEE FOR ONE AVERAGE SIZE PARKING SPACE
CITY APPROXIMATE FEE (ANNUAL)
Santa Monica $4,070.40
Culver City $2,080.00 plus $1,000 meter fee
Long Beach $1,375.00
Beverly Hills $6,720.00 plus meter fee
San Diego $3,200.00
To simplify the fee structure and encourage a balanced use of outdoor space across both programs, City staff determined that it was best to align parklet fees with the City’s existing sidewalk license fees outlined in Resolution No. 11340 (adopted by City Council on June 8, 2021). Staff recommends that Council adopt a new resolution that sets the monthly licensing fees for parklets at $2.12 per square foot. (Attachment E.) Plan 8 of 14
check and permit fees are cost recovery for staff time to review plans and the license fee matches fees charged for sidewalk dining. It is not proposed to charge applicants for loss of parking revenue from street parking.
Operating costs and expenses for the Parklet Program are intended to take effect following the expiration of the temporary outdoor use emergency program on September 30, 2022. The estimated fees for a parklet, are as follows:
Table 2: Estimated Fees for a Parklet
ESTIMATED FEES TO OPERATE A PARKLET
FEE NAME/TASKS FEE
Plan Check - Public Works (if more than 2 hours, apply
fee for each additional hour) - (One-time) $253.64
Plan Check - Mobility and Traffic Engineering (if more
than 2 hours, apply fee for each additional hour) - (Onetime) $239.60 Plan Check - Planning (if serving alcohol) - (One-time) $456.00 Inspection - Fire (One-time) $186.49
Security Deposit (One-time, Refundable) $3,500.00
SM Wastewater Capital Facility (One-time)
Restaurant - Sit Down (Full Service) $1,071.97 per seat Restaurant - Sit Down (Fast Food) $893.31 per seat
LA Wastewater Capital Facility (One-time) $294.09 per seat (approximate) Fire - Permit Propane Cylinder (Annual) $358.85
Inspection – Public Works (At time of installation and
annually) $252.66
License Fee to Operate in Public Right of Way (PROW)
(Monthly)
$2.12 per square foot per month or
$339.20 monthly for 1 parking space
($339.20 x 12 months = $4,070.40)
Note that the wastewater fee is a one-time fee that carries over even if operators change (Water Resources tracks payment of the one-time fee), can be offset with existing seating, and is offset by credit for fees already paid for existing sidewalk dining.
Application Process, Maintenance, and Permit Renewals
Current parklet operators under the Pilot Program are required to self-certify their parklets for compliance and sign a licensing agreement that requires operators to 9 of 14
maintain the parklet and establishes terms of use of the permitted space. Because the temporary parklet program is currently staffed by a multi-departmental team, inspections have been done on an ad hoc basis, typically in response to complaints or enforcement actions. Fees have never been collected throughout the emergency and Pilot Program.
An interdepartmental team from Mobility, Economic Development, Public Works, and City Planning created the temporary parklet program under the umbrella of the economic recovery task force but with the transition to a permanent program, lessons learned from the past two years have highlighted the need to have dedicated inspections and enforcement resources to ensure the proposed Program’s long-term success. Significant staff time has been spent over the past two years working with individual operators to bring their parklets into compliance for safety reasons and researching and adjusting design requirements to be responsive to business needs while also balancing traffic safety and shared use of public streets. Thus, the focus has been on standardizing requirements and simplifying the process for operators and staff as much as possible to create an efficient and sustainable program.
Although Public Works staff have not been involved in the permitting of existing parklets under the Pilot Program, for efficiency and to align with the already established sidewalk dining program, City staff determined Public Works would be best suited to serve as the lead agency of the proposed Program. This is consistent with peer cities. A biennial renewal along with an annual inspection and a maintenance plan will allow the City to periodically review the permit, the operation of the parklet space, and the regulations to see if any adjustments would need to be made. Applicants will be required to submit documents into the City’s permit application portal, just as they do today. The following workflow has been established for receiving and processing parklet applications:
• The Public Works Department would oversee the overall application intake process, verify accuracy of the design, maintain records, and issue permits. Public Works staff would also conduct field inspections to verify compliance with standards and guidelines and resolve any right-of-way issues. A new 0.5 FTE Public Works Inspector would be necessary to support the program.
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• The Department of Transportation, Mobility Division would support the review and verification of the design to ensure traffic safety standards are met that protect all users of the roadway.
• The City Planning Division and the Fire Department would review proposed parklets to verify compliance with applicable codes as needed. • The Risk Management Division would verify insurance requirements are met. • The Economic Development Division would, upon approval of the permit, issue the license agreement to use the public right-of-way and collect monthly license fees.
Parklet Permit Workflow Diagram
Components of the license agreement would also include provisions for maintenance, removal of the parklet following termination of the agreement, requirements that the parklet be kept free of litter at all times, and insurance and indemnification provisions. 11 of 14
All parklet operators would be required to follow the parklet regulations that the Director of Public Works or their designee would be authorized to establish through the proposed ordinance. Parklet operators must remain in compliance with the parklet regulations and requirements. Failure to comply with program may lead to revocation of the permit and termination of the licensing agreement.
Parklet operators with a permit issued under Chapter 6.40 (the Santa Monica Outdoors Pilot Program) that want to continue operating must submit a complete application by no later than September 15, 2022, which will provide staff time to issue a provisional permit and licensing agreement pursuant to the new Chapter 6.42 before the September 30, 2022, expiration date of Chapter 6.40. The provisional permit would allow a short period for operators to continue to operate and come into compliance with the new permanent parklet program before the full 2-year permit is issued.
Operators may need to make a range of minor changes to bring their parklets into compliance with the regulations including, but not limited to, adjusting for permitted height allowance, creating sufficient space around red curbs for first responders, and other changes to meet ADA compliance. Non- compliance would result in the revocation of the provisional permit and appropriate enforcement action. Any existing parklet operator who does not submit a complete application by September 15, 2022, must remove all materials from the public right-of-way by no later than September 30, 2022.
Staffing Needs
As noted in this report, it is not sustainable to operate a permanent parklet program with existing staff. During the COVID emergency, staff from multiple departments contributed time to the temporary parklets program given the urgency of need for economic recovery. At times, this effort was to the detriment of other ongoing work and priorities. Further, given limited staffing resources, field inspections to monitor the condition of parklets and ensure their compliance with City guidelines and Council’s Clean and Safe priority proved to be challenging and inconsistent. In designing the proposed Program, the Economic Recovery Taskforce has addressed these shortcomings, and has coordinated between departments to adequately sustain the 12 of 14
needs of the program and address the public safety and access requirements from Fire, Police, Public Works, and Traffic Engineering.
As a result, a 0.5 FTE Public Works Inspector is included in the budget to support the program’s initial transition, as well as ongoing inspection and monitoring needs. The position is fully offset by the new revenues generated from the permanent parklet program.
Parklets in the Coastal Zone
There are currently 36 operators occupying approximately 87 street parking spaces on Main Street and Downtown in the Coastal Zone (the area generally west of 4th Street, north of I-10 and the area generally west of Lincoln, south of I-10). It is not known if all 36 operators will opt to continue operating their parklets with the changes in the permanent program, including payment of license fees for use of the public right-of-way.
Coastal Commission staff have been aware of the parklets under the emergency and pilot programs; however, with the transition to a permanent program, over the next several months, staff will assess the impacts of the parklets within the Coastal Zone and work with the Coastal Commission to develop a plan that enables a successful Parklet Program for Santa Monica.
Compliance with the California Environmental Quality Act The proposed outdoor use of public right-of-way such as the development of a permanent parklet program is 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 record, it can be seen with certainty that there is no possibility the proposed parklet program may have a significant effect on the environment. The proposal would not result in adverse physical environmental effects since such uses are ancillary to existing businesses, 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 two 13 of 14
years through interim zoning Therefore, no further environmental review under CEQA is required.
Parklet Program Next Steps
Staff would engage BID leaders, local business groups, and existing parklet operators to ensure that operators that want to continue past the September 30, 2022, expiration of the Temporary Outdoor Use permits, and associated license agreements are aware that they will need to submit a completed application for the permanent program by no later than September 15, 2022. Staff would produce a public facing Parklet Program Design Manual that would contain the administrative regulations and update the website to equip businesses with the information needed to establish a successful parklet operation. As mentioned earlier in the report, it is important to establish and coordinate the policies and requirements of the parklet program from infancy. Therefore, staff recommends adding a 0.5 FTE Public Works Inspector position to support this program through inspection services for parklets.
Financial Impacts and Budget Actions
Establishing the permanent parklet program would generate revenue from licensing fees depending on how many operators elect to continue into the permanent program.
Based on survey results, there appears to be strong interest from existing parklet operators to continue with the program even if fees are charged. Based on an annual license fee of $8,140, if all 90 operators converted into the permanent program (assuming two parking spaces each), it would generate approximately $732,600 in annual leasing fees. While it is anticipated that at least 60% of existing operators (approximately 54 operators) will apply to convert into the proposed Program, based on past experience with application review and operator responsiveness timeframes, staff estimates about 38 operators to complete the permanent parklet process and receive full permits from September through the end of June 2023, generating approximately $241,600 in licensing and inspection fees.
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The cost of adding 0.5 FTE Public Works Inspector position is $63,985 and would be fully offset by the new revenues from the proposed Program. The addition of the position and the revenue and expenditure budget changes have been included in the final changes to the Proposed FY 2022-23 Budget, pending Council adoption. If the position is not approved, inspections of parklets would occur on an ad hoc basis as limited staff resources allow, and would likely result in delays in application/permitting processing time, and could also impact the implementation of other workplan priorities.
Prepared By: Jacqueline Swartz, Transportation Planning Associate Approved Forwarded to Council
Attachments:
A. Attachment A Proposed Ordinance Adopting SMMC Chapter 6.42 B. Attachment E Resolution Establishing Monthly Licensing Fees C. Peer Cities Parklet Research Memo
D. Santa Monica Outdoors Resident Survey Summary Results (May 2022) E. Santa Monica Outdoors Business Survey Summary Results (May 2022) F. Third Revised Eighteenth Supplement – temporary outdoor uses; extension of deadlines for planning, review, and permit-related actions (Web Link) G. Introduce and adopt an Emergency Ordinance to authorize the issuance of permits and licensing agreements to allow continued uses (Web Link) H. Ordinance Extending Santa Monica Municipal Code Chapter 6.40, Santa Monica Outdoors Pilot Program (Web Link)
I. Written Comments
J. PowerPoint Presentation