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R113401 City Council Meeting: June 8, 2021 Santa Monica, California RESOLUTION NO. 11340 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING FEES FOR OUTDOOR DINING AREA LICENSES WHEREAS, Santa Monica Municipal Code Section 9.31.200 allows outdoor dining on the public right of way as a way to enhance the 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 charges by resolution; and WHEREAS, in June 2010, the City had an appraiser develop licensing fee rates for outdoor dining that reflected the fair market value of the use of public space; and WHEREAS, on June 11, 2011, the City Council adopted Resolution No. 10586, which established the license fees for outdoor dining area licenses that are adjusted every January 1 by the annual change in the Consumer Price Index and that were set below fair market value to reflect community recognition that outdoor dining areas provide public benefits by enlivening sidewalks and pedestrian pathways and by promoting visual interest throughout commercial districts in the City; DocuSign Envelope ID: 0687C200-AC08-4D69-BB8D-4FA7C886345F 2 WHEREAS, the novel coronavirus 19 (“COVID-19”) disease is caused by a virus that spreads easily from person to person and may result in serious illness or death, and is classified by the World Health Organization (“WHO”) as a worldwide pandemic; and WHEREAS, COVID-19 has broadly spread throughout California and, in the absence of herd immunity achieved through vaccinations, presents a significant health risk to the community, especially members of our most vulnerable populations; and WHEREAS, on March 13, 2020, the City Manager, in his role as the Director of Emergency Services, proclaimed the existence of a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability of mutual aid and an effective City response to the COVID-19 pandemic, and this local emergency was restated on March 14, 2020, through a revised declaration of local emergency to ensure compliance with all digital signature requirements (the “Executive Order”); and WHEREAS, on March 19, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of COVID-19, amending and superseding its earlier March 16, 2020 Order, closing all nonessential businesses, and limiting gatherings to 9 people or less; and WHEREAS, since March 19, 2020, the Los Angeles County Department of Public Health has on multiple occasions amended and modified its Health Officer Order, and as part of these amendments and modifications, nonessential DocuSign Envelope ID: 0687C200-AC08-4D69-BB8D-4FA7C886345F 3 businesses, including restaurants, lower-risk retail businesses, and gym and fitness establishments were subject to, at various times, prohibitions on operating indoors or restrictions on capacity; and WHEREAS, through supplements to the Executive Order, the City suspended outdoor dining license payments for City licensees through June 15, 2021; and WHEREAS, the City Council is concurrently adopting a resolution that waives outdoor dining license payments until January 1, 2022; and WHEREAS, as a result of the restrictions imposed by the State’s COVID-19- related guidance and the County’s Health Officer Order, businesses, and particularly restaurants, have suffered significant economic hardships; for example, according to Santa Monica’s fourth quarter sales tax report from 2020, restaurants are down 50-66% in sales from the same quarter in 2019 just prior to COVID-19; and WHEREAS, due to the economic hardships suffered by businesses and to stimulate economic recovery, the City Council desires to re-set the outdoor dining licensing fee so that the rate in 2022 shall be the same as the rate in 2020, and that annually thereafter, commencing on January 1, 2023, such fees shall be adjusted by the change in the Consumer Price Index. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1: The following fees are established for outdoor dining area licenses, effective January 1, 2022: DocuSign Envelope ID: 0687C200-AC08-4D69-BB8D-4FA7C886345F 4 Location Monthly License Fee Per Square Foot Fully Enclosed Outdoor Dining Area Partially Enclosed Outdoor Dining Area Outdoor Dining Area Without a Barrier 3rd Street Promenade Not allowed $3.78 $2.66 Transit Mall (Santa Monica Boulevard/ Broadway) Not allowed $3.78 $2.66 Ocean Avenue $7.05 $3.53 $2.48 Montana Avenue Not allowed $3.02 $2.20 Wilshire Boulevard Not allowed $3.02 $2.12 Main Street Not allowed $3.02 $2.12 Ocean Park Boulevard Not allowed $3.02 $2.12 Pico Boulevard Not allowed $3.02 $2.12 Other Streets Not allowed $3.02 $2.12 SECTION 2. Commencing January 1, 2023 and annually thereafter on January 1, the fees shall be increased by the annual change in the Consumer Price Index, which adjustment shall be no less than a three percent (3%) or more than a five percent (5%) increase. SECTION 3: All fees established by this resolution shall be effective immediately upon adoption of this resolution. SECTION 4: Resolution No. 10586 is hereby repealed in its entirety. SECTION 5: If there are any conflicts between the fees adopted in this resolution and fees adopted by any prior resolution or fee schedule, the fees adopted pursuant to this resolution shall control. DocuSign Envelope ID: 0687C200-AC08-4D69-BB8D-4FA7C886345F 5 SECTION 6. 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: _______________________ GEORGE S. CARDONA Interim City Attorney DocuSign Envelope ID: 0687C200-AC08-4D69-BB8D-4FA7C886345F Adopted and approved this 8th day of June 2021. __________________________ Sue Himmelrich, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11340 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 8th day of June 2021, by the following vote: AYES: Councilmembers Brock, Davis, De la Torre, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: Councilmember McKeown ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 0687C200-AC08-4D69-BB8D-4FA7C886345F