ATTACHMENT E
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
REVISING FEES FOR OUTDOOR DINING, INCLUDING A LICENSE FEE WAIVER
FOR UNIMPROVED SIDEWALK DINING, TO SUPPORT ECONOMIC RECOVERY AND ALIGN WITH THE CITY’S REALIGNMENT PROGRAM
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
ATTACHMENT E
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
ATTACHMENT E
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 provide recommendations to adjust licensing fee rates for sidewalk dining to reflect the current fair market value for use of the City’s sidewalks; and
WHEREAS, on October 28, 2025, the Santa Monica City Council adopted a resolution revising license and wastewater capital facility fees applicable to outdoor dining in the City of Santa Monica, which established a monthly license fee of $2.00 per square foot for parklets and $1.00 per square foot for sidewalk dining beginning December 1, 2025, authorized the City to require performance bonds or higher security deposits for installations involving improvements within the public right-of-way, repealed prior resolutions governing outdoor dining license fees, and provided relief to applicants for certain wastewater capital facility fees for sidewalk dining and parklet permit applicants while continuing to require payment of the Amalgamated System Sewerage Facilities Charges (LA ASSFC) collected on behalf of the City of Los Angeles per Contract 7473; and
WHEREAS, the City is undertaking a realignment of its outdoor dining programs to ensure long-term economic vitality while maintaining safe and accessible public rightsof-way; and WHEREAS, the City Council recognizes that certain sidewalk dining operations consist solely of movable tables and chairs without barriers, decking, railings, platforms, or other fixed improvements in the public right-of-way; and
ATTACHMENT E
4 WHEREAS, other jurisdictions, including the City and County of San Francisco, have adopted policies that waive license fees for such minimally intrusive sidewalk dining configurations because they do not permanently occupy or alter public space; and WHEREAS, establishing a license fee waiver for such “unimproved sidewalk dining” will support small businesses while maintaining fees for installations that occupy or modify the public right-of-way with structures or improvements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. For purposes of this Resolution: “Unimproved Sidewalk Dining” means sidewalk dining consisting solely of movable tables, chairs, umbrellas, and similar furnishings that: (a) are not affixed to the ground or any structure; (b) do not include barriers, fencing, platforms, decking, railings, parklets, or other physical improvements; (c) can be removed from the public right-of-way without the use of tools or restoration work. “Improved Sidewalk Dining” means sidewalk dining that includes barriers, railings, fencing, decking, platforms, built parklets, or any structure or improvement that alters the public right-of-way or requires restoration upon removal; and (d) complies with all applicable provisions of the City of Santa Monica Sidewalk Dining Guidelines and Santa Monica Municipal Code.
SECTION 2. Sidewalk Dining License Fees.
(a) Unimproved Sidewalk Dining shall not be subject to a monthly license fee for use of the public right-of-way so long as the installation remains limited to the furnishings described in Section 1, or Santa Monica Sidewalk Dining Guidelines, as applicable, and
ATTACHMENT E
5 provided that such operations comply with the applicable provisions of City of Santa Monica Sidewalk Dining Guidelines and Santa Monica Municipal Code. Parklets and any outdoor dining installations occupying parking spaces or including built structures shall not qualify as Unimproved Sidewalk Dining and shall remain subject to the license fees established in this Resolution.
(b) Effective December 1, 2025, Improved Sidewalk Dining, including any sidewalk dining installation that includes barriers, fencing, railings, platforms, or other physical improvements in the public right-of-way, shall be subject to a monthly license fee of $1.00 per square foot per month.
(c) Effective January 1, 2027, and annually thereafter on January 1, the monthly license fee for Improved Sidewalk Dining shall be adjusted by the annual change in the Consumer Price Index (CPI), which adjustment shall be no less than three percent (3%) and no more than five percent (5%).
(d) The Public Works Director, or designee, shall determine whether a sidewalk dining operation qualifies as Unimproved Sidewalk Dining or Improved Sidewalk Dining based on the presence of barriers, decking, structures, or other physical improvements within the public right-of-way.
SECTION 3. Nothing in this Resolution exempts Unimproved Sidewalk Dining operators from requirements relating to pedestrian access, accessibility under the Americans with Disabilities Act, safety, maintenance of public right-of-way, insurance, indemnification, removal of furnishings when the business is closed or upon direction of the City, or other operational requirements established by the City.
ATTACHMENT E
6 SECTION 4. 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 5. Effective on July 1, 2026, the sidewalk dining fees established by this Resolution shall also apply to sidewalk dining operators located on the Third Street Promenade, except that Unimproved Sidewalk Dining shall remain exempt from license fees as provided in Section 2.
SECTION 6. Effective upon adoption of this Resolution, the City may require, for approval of a new or renewal of a license agreement for Improved 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
ATTACHMENT E
7 license area to its original condition upon expiration or earlier termination of operator’s license agreement.
SECTION 7. The City will waive permit and inspection fees for Unimproved Sidewalk Dining, consistent with the license fee waiver established in Section 2. Waivers only apply to Unimproved Sidewalk Dining and do not extend to Improved Sidewalk Dining or parklets.
SECTION 8. 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, payment of the Amalgamated System Sewerage Facilities Charges (LA ASSFC) collected on behalf of the City of Los Angeles, will continue to apply to outdoor dining operators.
SECTION 9. 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 or fee reductions adopted by a prior resolution, the fees and fee reductions adopted in this Resolution shall take precedence.
SECTION 10. This Resolution shall become effective on a date determined by the City Manager, or the City Manager’s designee, following the City’s completion of administrative preparations necessary to implement the Unimproved Sidewalk Dining program, including finalization of applicable program policies, publication of guidance for applicants, and launch of the City’s website and application process through which businesses may apply for permits to operate Unimproved Sidewalk Dining. The effective date shall be publicly posted on the City’s website and in the City of Santa Monica Sidewalk Dining Guidelines.
ATTACHMENT E
8 SECTION 11. 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:
________________________________
Heidi von Tongeln, City Attorney