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1 City Council Meeting March 24, 2026 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA MODIFYING CERTAIN PROVISIONS OF RESOLUTION NO. 11308 TO PROVIDE
CITYWIDE WASTEWATER CAPITAL FACILITY FEE SUBSIDIES FOR SIT DOWN
RESTAURANTS
WHEREAS, the City Council may establish, amend, or revise from time to time by resolution the City’s wastewater capital facility fees to be charged for any net increase in wastewater discharged 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
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2 WHEREAS, sit down restaurants provide significant economic and community benefits, including job creation, local economic activity, and activation of commercial corridors; and
WHEREAS, wastewater capital facility fees applicable to sit-down restaurants may represent a significant upfront cost that can deter new establishments, expansions, or conversion of vacant spaces; and
WHEREAS, recent economic conditions, including increased operating costs, changing consumer patterns, and reduced margins, have disproportionately impacted full-service restaurants; and
WHEREAS, commercial vacancy and underutilized spaces remain a concern in the City of Santa Monica, and facilitating restaurant occupancy can help activate storefronts and support economic recovery; and
WHEREAS, restaurants and other hospitality uses can activate street-level storefronts, generate foot traffic, enhance pedestrian vibrancy and safety, and strengthen the City’s overall commercial ecosystem while protecting the health, safety, and economic welfare of the community; and
WHEREAS, the City Council desires to reduce barriers to the establishment and expansion of sit-down restaurants by subsidizing the City’s portion of wastewater capital facility fees while maintaining the fee structure established by Resolution No. 11308 (CCS); and
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3 WHEREAS, providing such targeted financial relief supports economic vitality while preserving required regional wastewater charges and the integrity of the City’s cost recovery framework;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. Definitions. “Sit-Down Restaurant” or “Full-Service Restaurant” shall mean a restaurant use in which food and beverages are ordered by and served to patrons while seated and for which payment is typically made after service, consistent with the definition of “Full-Service Restaurant” set forth in the Santa Monica Municipal Code, as may be amended from time to time. “Issued” shall mean the date on which a building permit or other applicable permit authorizing construction or tenant improvements is approved and released by the City for construction.
SECTION 2.Wastewater Capital Facility Fee Subsidy. Effective March 24, 2026, all qualifying Sit-Down Restaurants shall be eligible for a City-funded subsidy of the City of Santa Monica wastewater capital facility fees established by Resolution No. 11308 (CCS) where a net increase in wastewater discharge arises from the establishment, expansion, or change in land use to Sit-Down Restaurant provided that no building permit (or, where no building permit is required, other ministerial construction or tenant improvement permit that triggers the wastewater capital facility fee) has been issued for the project prior to the effective date of this Resolution. The underlying fee obligation shall remain in effect pursuant to Resolution No. 11308 (CCS); however, the City shall satisfy the City’s portion of such fees on behalf of the applicant through a General Fund appropriation. The City shall subsidize such fees from the City’s General Fund. This
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4 subsidy shall remain in effect unless and until modified or terminated by subsequent action of the City Council.
SECTION 3. Regional Wastewater Charges. Applicants receiving a subsidy under this Resolution shall remain responsible for payment of the Amalgamated System Sewerage Facilities Charges (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. 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 and paid in full at the time of permit issuance.
SECTION 4. Other Fees. Unless otherwise provided under a City resolution or policy, all other applicable City permitting, inspection, and regulatory fees shall continue to apply.
SECTION 5. Relationship to Prior Resolutions. Except as expressly provided herein, Resolution No. 11308 (CCS) shall remain in full force and effect. This Resolution does not amend the fee schedule established therein but instead provides for a Cityfunded subsidy of certain fees applicable to Sit-Down Restaurants.
SECTION 6. Application and Timing Requirements. The City Manager or designee shall require that requests for subsidy be submitted prior to or concurrently with application for a building permit or other permit that triggers the wastewater capital facility fee. Eligibility for subsidy shall be determined based on whether a building permit (or equivalent permit triggering the fee) has been issued as of the effective date of this
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5 Resolution. Projects for which a complete application has been submitted but for which no such permit has been issued as of the effective date shall be eligible, subject to compliance with this Resolution.
SECTION 7. Documentation and Verification. Applicants seeking subsidy shall provide documentation sufficient to demonstrate eligibility, including project scope, seating capacity, and change of use, as applicable. The City may verify such information prior to approval.
SECTION 8. Audit and Compliance. The City reserves the right to audit subsidy recipients. If a subsidy is issued in error or based on inaccurate information, the City may require repayment.
SECTION 9. Prospective Application. The subsidy established by this Resolution shall apply prospectively only to eligible projects for which a building permit or equivalent permit has not been issued as of the effective date of this Resolution.
SECTION 10. No Refunds for Prior Payments. No refunds shall be issued for wastewater capital facility fees paid prior to the effective date of this Resolution, nor shall the subsidy apply to any project for which a building permit or equivalent permit was issued prior to the effective date, regardless of whether the fees have been paid.
SECTION 11. Administration. The City Manager or designee may establish administrative controls such as maximum subsidy amounts per project as necessary to manage fiscal impacts within appropriated limits. The City Manager or designee is authorized to administer this Resolution and execute any agreements or documents necessary to implement the subsidy described herein.
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6 SECTION 12. Effective Date. This Resolution shall be effective immediately upon its adoption.
SECTION 13. 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, City Attorney