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R115971 City Council Meeting June 25, 2024 Santa Monica, California RESOLUTION NUMBER 11597 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TEMPORARILY WAIVING AND REDUCING OUTDOOR DINING LICENSE FEES FOR THIRD STREET PROMENADE TO STIMULATE ECONOMIC RECOVERY WHEREAS, the Santa Monica Municipal Code Section 9.31.200 allows for outdoor dining on the public right-of-way to enhance pedestrian ambiance of the City; 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 would expire on September 30, 2022. 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; and DocuSign Envelope ID: 7E7F4ABA-FDB9-4739-AE6E-F1A98239B362 2 WHEREAS, to continue to provide relief to outdoor dining operators, on December 14, 2021, the Council adopted Resolution No. 11392 to waive monthly license fees through June 30, 2022, for operators of outdoor dining on City sidewalks under Santa Monica Municipal Code Section 9.31.200 and for eligible parklet operators with a Santa Monica Outdoors Pilot Program permit 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 outdoor license fees for outdoor dining operated on sidewalks and on parklets until September 30, 2022; and WHEREAS, the Third Street Promenade has played an important role in positioning the City of Santa Monica as an international visitor destination and is a critical economic engine to the City; and WHEREAS, an estimated 10 million people visit the Santa Monica Pier each year but, currently, only a small fraction of this number currently visit the pedestrian mall on the Third Street Promenade; and WHEREAS, restaurants located on the Third Street Promenade, continue to be heavily impacted by the loss of international tourism, a nearly 20 percent retail vacancy rate, the highest in the City, and a slow return of daytime workers employed by Downtown Santa Monica’s office and retail tenants that have resulted in significantly less visitors for the Third Street Promenade; and WHEREAS, to enhance the appeal of the Third Street Promenade, attract and support restaurants and entertainment uses to this area, consistent with the City’s recent DocuSign Envelope ID: 7E7F4ABA-FDB9-4739-AE6E-F1A98239B362 3 zoning changes that were enacted to support the conversion of vacant retail spaces to entertainment and dining uses, and lend a vibrancy to an area that has struggled with a high number of retail vacancies, the City Council desires to temporarily waive the monthly license fees for the period from July 1, 2024, through June 30, 2025, and temporarily reduce the license fee to $1.00 per square foot per month for the period from July 1, 2025, through June 30, 2026, for outdoor dining operators located on the Third Street Promenade that provide outdoor dining under an executed license agreement and that comply with Santa Monica Municipal Code Section 9.31.200 and all other applicable local, state, and federal laws. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. For the period from July 1, 2024, through June 30, 2025, the City will temporarily waive the monthly license fees that outdoor dining operators, located on the Third Street Promenade, are required to pay under their respective executed outdoor dining license agreements with the City and pursuant to Santa Monica Municipal Code Section 9.31.200. SECTION 2. For the period from July 1, 2025, through June 30, 2026, the City will temporarily reduce the license fee to $1.00 per square foot per month for outdoor dining operators, located on the Third Street Promenade, under their respective executed outdoor dining license agreements with the City and pursuant to Santa Monica Municipal Code Section 9.31.200. Thereafter, such outdoor dining operators shall resume paying their respective monthly outdoor licensing fees according to fees established by Resolution No. 11340, or any amendments or successors thereto. DocuSign Envelope ID: 7E7F4ABA-FDB9-4739-AE6E-F1A98239B362 4 SECTION 3. 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, including outdoor dining operators located on the Third Street Promenade, and the monthly license fees for other areas outside the Third Street Promenade will continue to apply according to the outdoor license fees established by Resolution No. 11340, or any amendments or successors thereto. SECTION 4. The temporary waiver and reduction of the monthly licensee fees specified in this Resolution will apply to outdoor dining operators that comply with Santa Monica Municipal Code Section 9.31.200 and all other applicable local, state, and federal laws. SECTION 5. This Resolution shall be effective immediately upon its adoption. SECTION 6. If there are any conflicts between the monthly license fees waived in this Resolution and fees waived by any prior resolution, the waiver of fees pursuant to this Resolution shall control. SECTION 7. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ Douglas Sloan, City Attorney DocuSign Envelope ID: 7E7F4ABA-FDB9-4739-AE6E-F1A98239B362 Adopted and approved this 25th day of June, 2024. __________________________ Phil Brock, Mayor I, Nikima S. Newsome, Interim City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11597 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 25th day of June, 2024, by the following vote: AYES: Councilmembers Parra, Torosis, de la Torre, Mayor Pro Tem Negrete, Mayor Brock NOES: Councilmembers Zwick, Davis ABSENT: None ATTEST: _____________________________________ Nikima S. Newsome, Interim City Clerk DocuSign Envelope ID: 7E7F4ABA-FDB9-4739-AE6E-F1A98239B362