1 City Council Meeting October 28, 2025 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA REVISING LICENSE AND WASTEWATER CAPITAL FACILITY
FEES FOR OUTDOOR DINING TO STIMULATE ECONOMIC RECOVERY
WHEREAS, Santa Monica Municipal Code Section 9.31.200 allows sidewalk dining on the public right-of-way as a way to enhance the pedestrian ambiance of the City; and
WHEREAS, Chapter 6.42 of the Santa Monica Municipal Code governs the City’s Parklet Program and provides the City Council authorization to set monthly licensing fees for parklets by resolution; and
WHEREAS, Santa Monica Municipal Code Section 2.72.010 authorizes the imposition of charges for private use of public property; and WHEREAS, Santa Monica Municipal Code Section 2.72.020 authorizes setting such changes by resolution; and
WHEREAS, to stimulate economic recovery following the arrival of the COVID-19 pandemic, the City Council adopted Resolution No. 11339 which, among other things, waived, until December 31, 2021, the monthly license fee that outdoor dining operators are required to pay pursuant to their respective outdoor dining license agreements with the City under Santa Monica Municipal Code Section 9.31.200 and established fees for the Santa Monica Outdoors Pilot Program that expired on September 30, 2022; and 2 WHEREAS, on June 8, 2021, the City Council adopted Resolution No. 11340, which re-set the outdoor dining license fees for licenses issued pursuant to Santa Monica Municipal Code Section 9.31.200 so that the fee rates in 2022 would be the same as in 2020 and annually thereafter, commencing on January 1, 2023, such fees would be adjusted by the chance in Consumer Price Index (CPI); and WHEREAS, to provide additional relief, on December 14, 2021, the City Council adopted Resolution No. 11392 to waive monthly license fees through June 30, 2022, for operators of sidewalk dining under Santa Monica Municipal Code Section 9.31.200 and for eligible parklet operators pursuant to Santa Monica Municipal Code Chapter 6.40; and WHEREAS, on May 10, 2022, the Council adopted Resolution No. 11419 to waive, among other fees, the monthly license fees for outdoor dining operated on sidewalks and on parklets until September 30, 2022; and
WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 11429 to set the monthly licensing fee for parklets used for outdoor dining under Chapter 6.42 of the Santa Monica Municipal Code; and
WHEREAS, on June 25, 2024, the Council adopted Resolution No. 11597 to temporarily waive monthly license fees for sidewalk dining for the period from July 1, 2024, through June 30, 2025, and reduce monthly license fees to $1.00 per square foot per month for the period from July 1, 2025, through June 30, 2026, for sidewalk dining operators located on the Third Street Promenade, a critical economic engine to the City; and
3 WHEREAS, in January 2025, the City commissioned an appraiser to review the current license fees for sidewalk dining that were set by Resolution No. 11340 and adjust licensing fee rates for sidewalk dining to reflect the current fair market value for use of the City’s sidewalks; and
WHEREAS, the City Council may establish, amend, or revise from time to time by resolution the City's Wastewater Capital Facility Fee to be charged for any net increase in wastewater discharge pursuant to Section 7.04.460 of the Santa Monica Municipal Code; and
WHEREAS, the City is required by the City of Los Angeles to collect and transmit Amalgamated System Sewerage Facilities Charges (LA ASSFC) established by the City of Los Angeles per Contract 7473 (CCS) Section IIC for any net increase in wastewater discharge arising from new development, changes in land use, or increases in discharges from Industrial Dischargers within the City limits; and WHEREAS, on November 24, 2020, the City adopted Resolution No. 11308 to revise the wastewater capital facility fees that are assessed to restaurants and other establishments operating within the City of Santa Monica to recover the cost of increased demand on the City’s wastewater system from new development and/or changes in land use; and
WHEREAS, the City has an important government interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and
4 WHEREAS, businesses, and particularly restaurants, have suffered significant economic hardships as a result of the COVID-19 pandemic as well as the January 2025 Los Angeles region wildfires and the resulting closure of Pacific Coast Highway until May 2025.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. Effective on December 1, 2025, the license fee for use of public property pursuant to Santa Monica Municipal Code Chapter 6.42 for parklets shall be $2.00 per square foot per month. Effective on January 1, 2027, and annually thereafter on January 1, the monthly licensee fee will be adjusted by the annual change in the Consumer Price Index (CPI), which adjustment shall be no less than a three percent (3%) and no more than a five percent (5%) increase.
SECTION 2. Effective on December 1, 2025, the fees for license areas for sidewalk dining shall be $1.00 per square foot per month. Effective on January 1, 2027, and annually thereafter on January 1, the monthly license fee for sidewalk dining shall be adjusted by the annual change in CPI, which adjustment shall be no less than a three percent (3%) and no more than a five percent (5%) increase.
SECTION 3. This Resolution does not repeal Resolution No. 11597, which temporarily established sidewalk dining license fee at $1.00 per square foot per month for sidewalk dining operators located on the Third Street Promenade for the period from July 1, 2025, through June 30, 2026. Effective on July 1, 2026, the sidewalk dining fees established by this Resolution shall also apply to sidewalk dining operators located on Third Street Promenade.
5 SECTION 4. Effective upon adoption of this Resolution, the City may require, for approval of a new or renewal of a license agreement for sidewalk dining, either a performance bond (or other applicable bond) or a higher security deposit than the security deposit amount established by the Public Works Director, or designee, for sidewalk dining license agreements where an operator either improved or intends to improve the public right-of-way with structures and/or other improvements for which the cost to restore the operator’s license area to its original condition exceeds the applicable security deposit amount established by the Public Works Director, or designee. Should the Public Works Director, or designee, request a performance bond (or other applicable bond) or higher security deposit, the amount of such bond or additional security deposit shall not exceed the amount necessary to recover the City’s estimated costs to remedy operator’s failure to comply with the sidewalk dining operator’s obligation to restore the license area to its original condition upon expiration or earlier termination of operator’s license agreement.
SECTION 5. Effective on December 1, 2025, Resolution Nos. 11340 and 11429 are hereby repealed in their entirety.
SECTION 6. Effective on November 1, 2025, applicants for sidewalk dining and parklet permits will not be required to pay the wastewater capital facility fees that are set by Resolution No. 11308 and which apply to restaurants that use the City of Santa Monica’s wastewater system when there is a net increase in wastewater discharge arising from a new development and/or change in land use. The City will subsidize these fees from the City’s General Fund.
SECTION 7. With respect to wastewater capital facility fees, effective on November 1, 2025, prior to receiving a permit to operate sidewalk dining or a parklet on 6 the City’s public right-of-way, an applicant will only pay the LA ASSFC established by the City of Los Angeles for any net increase in wastewater discharge arising from new development, changes in land use, or increases in discharges from Industrial Dischargers within the City limits.
SECTION 8. The amount of LA ASSFC charged to owners or developers of a property will be based on the City of Los Angeles’ Annual Report of Wastewater Flow and Strength Loadings and the Amalgamated System Sewage Generator Factors. Funds collected from owners and developers will be transmitted to the City of Los Angeles on a bi-monthly basis.
SECTION 9. Unless otherwise provided under a City resolution or policy, all other fees applicable to outdoor dining operators on the City’s public right-of-way, including without limitation, permit and inspection fees, will continue to apply to outdoor dining operators.
SECTION 10. Unless otherwise provided in this Resolution, if there are any conflicts between the monthly licensee fees for sidewalk dining and parklet operations adopted in this Resolution and any license fees adopted by a prior resolution, the fees adopted in this Resolution shall take precedence.
SECTION 11. This Resolution shall be effective immediately upon its adoption. 7 SECTION 12. The City Clerk shall certify the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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Heidi von Tongeln, Interim City Attorney