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SR 05-10-2022 7B City Council Report City Council Meeting: May 10, 2022 Agenda Item: 7.B 1 of 9 To: Mayor and City Council From: David Martin, Director, Administration Subject: Introduction and First Reading of Ordinance Extending Santa Monica Municipal Code Chapter 6.40, Santa Monica Outdoors Pilot Program; Introduction and Adoption of Emergency Interim Zoning Ordinance Changes to Support Santa Monica's Economic Recovery; and Adoption of Resolution Related to Fee Waivers and Reductions Recommended Action Staff recommends that the City Council: 1. Introduce for first reading an ordinance to amend Santa Monica Municipal Code Chapter 6.40 Santa Monica Outdoors Pilot Program by extending the term of the pilot program through September 30, 2022. 2. Adopt a resolution to authorize the extension of fee waivers or, if applicable, reductions, through September 30, 2022 for monthly outdoor dining license fees, monthly licensing fees for businesses with permits under Santa Monica Municipal Code Chapter 6.40, outdoor fitness fees in City Parks and the Beach, and certain temporary use permits. 3. Introduce and adopt an Emergency Interim Zoning Ordinance amending and extending interim zoning regulations established by Emergency Interim Zoning Ordinance Number 2674 (CCS) and extended by Emergency Interim Zoning Ordinance 2678 authorizing temporary use of private outdoor space for commercial activity and extending certain zoning changes necessary for continued emergency response and economic recovery. Summary As a response to the COVID-19 pandemic, the City established a temporary outdoor use permit program allowing businesses to utilize public and private outdoor spaces for dining, physical fitness and other business uses. All permit and license fees were waived, including for those businesses that, prior to COVID, had entered into outdoor dining license agreements in the Santa Monica Sidewalk Dining program pursuant to 7.B Packet Pg. 1518 2 of 9 Santa Monica Municipal Code (“SMMC”) Section 9.31.200. These fee waivers are due to expire on June 30, 2022. Staff had anticipated that a permanent parklet program with guidelines and a fee schedule would be in place by June 30, 2022. Staff has engaged a consultant to evaluate a permanent parklet program that will also include a fee structure. Staff expects to return to Council on June 28, 2022 with a new program that would be adopted by ordinance and anticipated to go into effect by late summer. Staff recommends that Council extend the Santa Monica Outdoors Pilot Program and related fee waivers through September 30, 2022. Staff also recommends that the temporary zoning changes allowing the temporary use of private outdoor space for commercial activity and certain changes necessary for continued emergency response and economic recovery established by emergency IZO 2678 be extended through December 31, 2022. These extensions are needed to allow businesses to continue utilizing the public right-of-way and private outdoor space while staff finalizes a permanent outdoor program for both public and private spaces. Discussion The COVID-19 pandemic resulted in sudden closures and reduction in services throughout the Santa Monica business community. To enable commerce in accordance with Health Officer orders, expanded temporary use of outdoor space for business purposes was established through emergency orders. The types of uses included: outdoor commercial use on private property, on the sidewalk, in a parklet in the street adjacent to a sidewalk, or group exercise on private property or in the City’s designated parks and open space. To facilitate these uses prior to the emergency order expirations, City Council adopted an ordinance establishing the Santa Monica Outdoors Pilot Program (“Pilot Program”) as SMMC Chapter 6.40 on June 8, 2021 and adopted a resolution to waive certain fees for outdoor dining licenses and commercial fitness operators . (See Attachment B.) An Emergency Interim Zoning Ordinance (“IZO”) was also adopted on June 8, 2021 (and extended on July 27, 2021) to extend currently allowed temporary use of private outdoor space for commercial activity that would 7.B Packet Pg. 1519 3 of 9 otherwise end 30 days after the expiration of the County’s COVID-19 Health Officer Order, and further provided for flexibility in various zoning regulations to facilitate emergency response and further economic recovery. The extended IZO is set to expire on June 30, 2022. On December 14, 2021, Council extended these fee waivers through June 30, 2022 for both monthly outdoor dining license fees under SMMC 9.31.200—the outdoor dining program predating COVID—and licensing fees for the Pilot Program that were otherwise set to commence on January 1, 2022. (Attachment A.) Under the current Fee Resolution, on July 1, 2022, businesses that have either permits under the Pilot Program or outdoor dining licensing agreements under SMMC 9.31.200 would have to start paying monthly permit/licensing fees. Fees are typically charged for a business, property owner, or individual exclusively using the public right-of-way. In addition, quarterly use charges for businesses with Fitness Trainer Permits are set to resume on June 30, 2022. Extension of the Santa Monica Outdoors Pilot Program and Fee Waivers for Outdoor Licenses The proposed ordinance (Attachment C) and resolution (Attachment D) extends the Pilot Program and related fee waivers until September 30, 2022. Extending the Pilot Program until September 30th will allow businesses and their patrons additional time to enjoy the benefits of outdoor dining, fitness, and other activities during the summer months, providing for a smoother transition into longer-term operations, and support the economic recovery efforts of our local business community and neighborhood commercial districts. Many of our small businesses are still struggling to survive and work their way out of debt (e.g., deferred rent due to landlords, Federal disaster relief loan repayments). This extended Pilot Program with fee waivers would provide substantial support to our small businesses – over 105 participating in the Pilot Program. Extending the Pilot Program through September 30, 2022, would also provide 7.B Packet Pg. 1520 4 of 9 City staff and businesses sufficient time to transition businesses to the new parklet/sidewalk dining permit and license agreements. Staff anticipates that a permanent parklet program with guidelines and a fee structure will be in place this summer, with fees effective October 1, 2022. To further inform this effort, staff has engaged a consultant to evaluate best practices from other cities for a permanent parklet program that will include preparation of a parklet manual and a proposed application fee and annual permit fee structure, striving to balance the City mandated requirement of cost-recovery associated with staff administrative time and lost parking revenue, with the expectation that fees will be affordable to many small businesses in order to support an equitable and inclusive economic recovery. These fees will be outlined in the proposed Fiscal Year 2022/2023 budget study session on May 24. On June 28, 2022, the recommended fees would be included as part of the budget that City Council will be asked to adopt and staff will also be presenting the proposed parklet program to Council that night with the goal of having the permanent program in place prior to the expiration of the Santa Monica Outdoors Pilot Program on September 30, 2022. Once the parklet policy is adopted, staff will work with the Pilot Program participants who are interested in long-term outdoor operations under a permit or license agreement to start applying in July or August for the new parklet permits and/or outdoor dining license agreements so that by September 30th, they will transition to the longer-term program with confirmed costs. Staff also recommends extending the waiver of the outdoor dining license fees under SMMC 9.31.200—the outdoor dining program predating COVID—through September 30, 2022. (See Attachment D.) Doing so will not only be consistent with the fee waivers offered for businesses with Pilot Program permits, but it will also provide staff sufficient time to transition interested businesses with a Pilot Program permit to an outdoor licensing agreement under SMMC 9.31.200. 7.B Packet Pg. 1521 5 of 9 Extension of Outdoor Use of Private Property Temporary Outdoor Use Permits originally authorized under the City’s emergency orders also approved the use of private property for outdoor commercial operations. They have been a critical component of the City’s response to support businesses during the COVID-19 pandemic as well as to allow for certain zoning changes to support emergency response and economic recovery. Currently, 87 local businesses are using a Temporary Outdoor Use Permit issued pursuant to the IZO to conduct retail, restaurant, and fitness activities on private outdoor property—surface parking lots, courtyards, and other spaces on associated privately-owned commercial property—to help offset any pandemic-related indoor use restrictions or accommodate customer preference of being outdoors. This opportunity to use outdoor space on private property serves many businesses that are not eligible or not able to have a parklet in front of their business, particularly on commercial streets with higher traffic speeds such as Pico Boulevard and sections of Wilshire and Ocean Park Boulevards. Currently, outdoor dining is the primary activity of these private outdoor spaces. Similar to rules governing parklets for the Pilot Program, table service and alcohol sales are temporarily permitted within these spaces, and parking requirements are suspended. In developing the permanent outdoor program for private property, staff is evaluating the overall use of private outdoor space by businesses during the pandemic. Staff will continue to develop appropriate standards considering the size and location of outdoor spaces, parking and fire accessibility of the site, and noise when abutting residential districts. To allow businesses to continue to operate on private property, staff recommends that Council adopt the proposed Emergency Interim Zoning Ordinance, which will extend this program through December 31, 2022 (Attachment E). On a separate review path from the parklet program, staff will return to Council in the fall with a proposed outdoor use program specific to privately-owned property requiring amendments to the Zoning Ordinance that would enable such program. 7.B Packet Pg. 1522 6 of 9 Extension of Zoning and Land Use Related Changes There are a range of zoning and land use related changes that were made throughout the pandemic to facilitate emergency response and to also support local businesses. Changes that are recommended to continue through the IZO extension (Attachments D and E) include: ▪ Permitted Use in all Zoning Districts: Public Safety Facilities and Emergency Shelters. Allowing these uses provides flexibility in establishing uses related to health and safety supportive of emergency response and the pandemic recovery. ▪ Drive-through facilities only for COVID-19 testing and vaccination purposes at hospitals, clinics, and pharmacies. The Zoning Ordinance prohibits new drive-through facilities. This special exception is necessary as requests to establish testing and vaccination sites remain ongoing and some level of demand is anticipated to continue. Many of these facilities are established within tented parking spaces where tests or vaccinations are administered while patients remain in their vehicles. ▪ Temporary Use Permits for uses permitted pursuant to 9.31.370(b) of more than 45 days and not exceeding 180 days (6 months). Extending the temporary use permit period up to 180 days provides flexibility for outdoor temporary uses supportive of economic recovery efforts and consistent with social distancing practices during the pandemic recovery along with the associated permit fee waivers through September 30, 2022. ▪ Off-site alcohol sales for restaurants, consistent with the State Alcoholic Beverage Control (ABC) requirements: SB 389, which took effect on January 1, 2022, extended the authorization under the First Notice of Regulatory Relief issued by the California Department of 7.B Packet Pg. 1523 7 of 9 Alcoholic Beverage Control that expired on December 31, 2021 to allow the expansion of off-sale privileges for restaurants and breweries as a result of the Pandemic. This provision recognizes this expansion of alcoholic beverages “to- go” as allowed by the State and allows such privileges for restaurants, breweries, etc. consistent with ABC requirements to continue through December 31, 2022. The Notice of Regulatory Relief authorizing flexibility in retail sales of alcoholic beverages expired as of December 31, 2021. Staff proposes removing provisions in the interim zoning regulations allowing for flexibility in retail sales since that flexibility is no longer authorized by the State. Extension of Fee Reduction or Waiver for Commercial Fitness Trainers The permitting of fitness and recreation training in City parks and the beach was also extended through updates to the existing Fitness Trainer Permit program, as authorized by SMMC 4.55.030. On June 8, 2021, Council adopted Resolution No. 11339, which, among other things, waived or reduced the quarterly use charges for businesses with Fitness Trainer Permits through June 30, 2022. (Attachment B.) Outdoor fitness classes in City parks and on the beach have maximized a fitness studio’s or an instructor’s ability to provide recreational training or wellness offerings to groups of people at a safe distance. Additionally, there has been an increase to group sizes at Barnard Way-Linear Park and Tongva Park as well as new locations added at Ken Genser Square, Airport Park parking lot, and Memorial Park, as authorized under SMMC 4.55.030. As of March 2022, a total of 22 commercial fitness trainers have obtained a permit to provide instruction in Santa Monica’s parks and beaches. Staff recommends extending the waiver and reduction of the quarterly use fees through September 30, 2022 in order to help support our fitness businesses and their economic recovery. (Attachment D.) The fee waivers or reductions for the Fitness Trainer Program are otherwise due to expire on June 30, 2022. 7.B Packet Pg. 1524 8 of 9 Staff will analyze the Fitness Trainer Permit program and its current fee structure and will return to Council with a recommendation of new fees that, if approved, would begin October 1, 2022. Past Council Actions Meeting Date Description 12/14/21 (Attachment A) Adoption of Fee Resolutions to Extend Santa Monica Outdoors Fee Waiver 06/08/21 (Attachment B) Resolution Waiving Certain Fees on a Temporary Basis to Further Stimulate Economic Recovery, Establishing Fees for Santa Monica Outdoors Pilot Program, and Authorizing the Community Development Director to Temporarily Close Portions of Main Street for the Santa Monica Outdoors Pilot Program. Emergency Interim Zoning Ordinance 2674 (CCS) to extend temporary uses of private outdoor space for commercial activity and extend certain zoning changes necessary for continued emergency response and economic recovery (and as extended by IZO 2678 (CCS) on 07/27/21. Financial Impacts and Budget Actions The financial impact of extending the waiver of fees will result in an estimated $157,479 reduction in Outdoor Dining revenues and a $8,100 reduction in Beach & Park Fitness permit fee revenues for the first three months of FY 2022-23. However, the revenues for the remainder of the fiscal year that will be generated as a result of the proposed permanent Santa Monica Outdoors Program is still unknown. The temporary Santa Monica Outdoors programs were developed as a crisis response, so it is not certain how many of the Pilot Program businesses will opt to retain their outdoor operations, how much space businesses will want to utilize once fees are charged, or how many new permit applications will be received once the permanent programs are in place. Additionally, staff anticipates returning to Council on June 28, 2022 with recommendations for a permanent parklet program, including a fee structure that will go into effect on October 1, 2022. Once the permanent Santa Monica Outdoor program is implemented and applications are processed, in early FY 2022-23, revenues can be projected, and necessary budget adjustments will be included in the FY 2022-23 7.B Packet Pg. 1525 9 of 9 Midyear Budget. Staff will set aside as much Economic Recovery funds as possible to fill any gaps in revenue that the City is not able to recover once the fees are in place. Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council Attachments: A. 2021.12.14 Council.Report B. 2021.06.08 Council Report C. Proposed Ordinance Extending Term of Pilot Program D. Proposed Resolution Extending Certain Fee Waivers/Reductions E. Proposed Emergency Interim Zoning Ordinance F. Written Comments G. PowerPoint Presentation 7.B Packet Pg. 1526 1 City Council Meeting: June 8, 2021 Santa Monica, California RESOLUTION NO. 11339 (CCS) City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA WAIVING CERTAIN FEES ON A TEMPORARY BASIS TO FURTHER STIMULATE ECONOMIC RECOVERY ,ESTABLISHING FEES FOR SANTA MONICA OUTDOORS PILOT PROGRAM, AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO TEMPORARILY CLOSE PORTIONS OF MAIN STREET FOR THE SANTA MONICA OUTDOORS PILOT PROGRAM 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 DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1527 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 2 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 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, on March 27, 2020, the Director of Emergency Services issued a Ninth Supplement to the Executive Order (“Ninth Supplement”), which, among other things, suspended outdoor dining license payments for City licensees for the month of April 2020; and WHEREAS, on May 29, 2020, the Director of Emergency Services issued an Eighteenth Supplement to the Executive Order, which, among other things, extended the suspension of outdoor dining license payments for City licensees through June 2020 and authorized temporary outdoor dining extensions to adjacent sidewalk and/or adjacent parking, courtyard, or other private open space owned by the restaurant; and WHEREAS, on June 23, 2020, the Director of Emergency Services issued a Second Revised Eighteenth Supplement to the Executive Order that modified the First Revised Eighteenth Supplement to, among other things: extend the suspension of outdoor dining license payments for City licensees through August 2020 and expand the public outdoor spaces where certain eligible restaurants were authorized to operate outdoors; and DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1528 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 3 WHEREAS, the Second Revised Eighteenth Supplement also authorized Business Improvement Districts and individual eligible businesses that have obtained a temporary use permit to conduct sidewalk sales and other seasonal sales without otherwise complying with the provisions of the Executive Order and waived processing fees for such temporary use permits; and WHEREAS, on August 22, 2020, the Director of Emergency Services issued a Third Revised Eighteenth Supplement to the Executive Order (“Third Revised Eighteenth Supplement”), which, among other things, superseded and replaced the prior versions of the Eighteenth Supplement to further extend the suspension of outdoor dining license payments for City licensees and authorize the City to assess a monthly fee for the use of space in the public right-of-way after November 1, 2020, with 30 days’ notice provided to businesses; and WHEREAS, on September 18, 2020, the Director of Emergency Services issued a Twenty-Sixth Supplement to the Executive Order (“Twenty-Sixth Supplement”), which, among other things, authorized the Director of the Community Services Department to promulgate regulations and issue permits for gym and fitness establishments to engage in commercial fitness activities at City parks, City park parking lots, and City beaches; provided that, for any quarter or portion thereof during which the County’s Health Officer Order prohibited gym and fitness establishments from operating indoors at an occupancy rate greater than 50%, gym and fitness establishments are not required to pay the quarterly use charges, as set forth in forth in Resolution No. 11263 (CCS), adopted by the City Council on June 23, 2020, except for gym and fitness establishment operating at Palisades Park; and specified the rates for such quarterly use; and DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1529 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 4 WHEREAS, on October 7, 2020, the Director of Emergency Services issued a Twenty-Seventh Supplement to the Executive Order (“Twenty-Seventh Supplement”), which, among other things, authorized the Director of the Community Development Department to issue regulations regarding and issue temporary use permits for certain uses allowed by the County Safer at Home Order, including temporary outdoor sales and special events, for a period longer than 45 days but less than 180 days and waived processing fees for such temporary use permits; and WHEREAS, on November 23, 2020, the Director of Emergency Services issued a Twenty-Eighth Supplement to the Executive Order (“Twenty-Eighth Supplement”), which, among other things, authorized the Director of the Community Development Department to issue permits for and regulations regarding the temporary extension by certain eligible businesses of their operations into unused portions of the parking lane on Main Street where the City has placed K-rails, and authorized the City to assess a monthly fee for the use of such space in the public right-of-way after March 31, 2021, with 30 days’ notice provided to businesses; and WHEREAS, on January 28, 2021, the Director of Emergency Services issued a Thirty-Third Supplement to the Executive Order (“Thirty-Third Supplement”), which, among other things, authorized satellite outdoor dining in portions of the roadway in the Third Street Promenade pursuant to limitations set out in the supplement and regulations to be issued by the Director of the Community Development Department, and authorized the City to assess a monthly fee for the use of such space in the public right-of-way after March 1, 2021, with 30 days’ notice provided to businesses; and DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1530 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 5 WHEREAS, on March 19, April 6, April 14, May 12, May 26, June 9, June 23, July 14, July 28, September 8, October 27, and December 15, 2020 as well as on January 26, March 23, and effective May 22, 2021, the City Council ratified the Executive Order, as well as the supplements to the Executive Order in place at the time, including the Third Revised Eighteenth, Twenty-Sixth, Twenty-Seventh, Twenty-Eighth, and Thirty-Third Supplements; 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 has elected not to assess a monthly fee for the use of space in the public right-of-way, despite the authorization to do so in the Third Revised Eighteenth, Twenty-Eighth, and Thirty-Third Supplements; 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, 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 DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1531 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 6 WHEREAS, on June 11, 2011, the City Council adopted Resolution No. 10586, which established the license fees for outdoor dining area licenses; and WHEREAS, on June 23, 2020, the City Council adopted Resolution No. 11263, which, among other things, revised certain permit and user fee charges, including the annual permit and quarterly use charges for commercial fitness and athletic instruction permits issued pursuant to Santa Monica Municipal Code Section 4.55.030, and processing fees for temporary use permits; and WHEREAS, the City Council is concurrently adopting an emergency ordinance that establishes the Santa Monica Outdoors Pilot Program and thereby extends the authorizations to use public space provided by the Third Revised Eighteenth, Twenty- Eighth, and Thirty-Third Supplements, authorizes the City to issue permits and enter into licensing agreements with business to use portions of the Main Street roadway that are temporarily closed to traffic and designated for outdoor dining or other business activities pursuant to administrative regulations, and, as part of that emergency ordinance, authorizes the City Council to set charges by resolution to reflect the use of public property; and WHEREAS, the City Council is concurrently adopting an emergency interim zoning ordinance that extends the authorizations for issuance of temporary use permits for sidewalk sales and other seasonal sales that may operate without otherwise complying with the provisions of the Santa Monica Outdoors Pilot Program, and temporary use permits that may be issued for periods of more than 45 days but less than 180 days, as provided by the Third Revised Eighteenth and Twenty-Seventh Supplements, respectively; and DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1532 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 7 WHEREAS, California Vehicle Code Section 21101(e) authorizes local authorities, for those highways under their jurisdiction, to adopt rules and regulations by ordinance or resolution to temporarily close a portion of any street for celebrations, parades, local special events, and other purposes when, in the opinion of local authorities having jurisdiction or a public officer or employee that the local authority designates by resolution, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing; and WHEREAS, the City desires to authorize the City’s Community Development Director to temporarily close a portion of Main Street, since closure is necessary for the safety and protection of persons who are using the closed portion of Main Street during the temporary closing pursuant to the Santa Monica Outdoors Pilot Program; and WHEREAS, to stimulate economic recovery, the City Council desires to delay recovering fees for use of public space pursuant to the Santa Monica Outdoors Pilot Program until January 1, 2022 and to temporarily waive other fees. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Commencing no earlier than January 1, 2022, and following at least 30 days’ notice provided to businesses with a Santa Monica Outdoors Pilot Program permit, the charges for use of public property pursuant to Santa Monica Municipal Code Chapter 6.40 are as follows: Location Monthly License Fee Per Square Foot 3rd Street Promenade $2.66 Transit Mall (Santa Monica Boulevard/Broadway) $2.66 Ocean Avenue $2.48 DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1533 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 8 Location Monthly License Fee Per Square Foot Montana Avenue $2.20 Wilshire Boulevard $2.12 Main Street $2.12 Ocean Park Boulevard $2.12 Pico Boulevard $2.12 Other Streets $2.12 SECTION 2. From the effective date of this resolution until December 31, 2021, the City waives the monthly license fee that restaurants are required to pay pursuant to their respective outdoor dining license agreements with the City under Santa Monica Municipal Code Section 9.31.200. SECTION 3. From the effective date of this resolution until June 30, 2022, businesses with a commercial fitness or athletic instruction permit issued pursuant to Santa Monica Municipal Code Section 4.55.030 are not required to pay quarterly use charges, unless the business provides commercial fitness or athletic instruction at Palisades Park in which case the quarterly use charges shall be (i) $450 per quarter for small groups (not more than 2); $900 per quarter for medium groups (not more than 10); and (iii) $1,350 per quarter for large groups (not more than 15). SECTION 4. From the effective date of this resolution until June 30, 2022, the City waives processing fees for temporary use permits for sidewalk sales and other seasonal sales that are not otherwise required to comply with the provisions of the Santa Monica Outdoors Pilot Program, and for temporary use permits issued for a period longer than 45 days but less than 180 days, issued pursuant to the emergency interim zoning ordinance adopted concurrently with this resolution. DocuSign Envelope ID: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1534 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 9 SECTION 5. All fees established or waived by this resolution shall be effective immediately upon adoption of this resolution. SECTION 6. If there are any conflicts between the fees adopted or waived in this resolution and fees adopted or waived by any prior resolution or fee schedule, the fees adopted or waived pursuant to this resolution shall control. SECTION 7. The Community Development Director is hereby authorized to temporarily close the portion of Main Street between Hill Street and Kinney Avenue on weekends in compliance with administrative regulations issued pursuant to Santa Monica Municipal Code Chapter 6.40, because closure of this area is necessary for the safety and protection of persons who are using the closed portion during the temporary closing. SECTION 8. 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: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1535 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 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. 11339 (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: 72C6D32E-5527-4550-842E-815497C3E1D9 7.B.a Packet Pg. 1536 Attachment: 2021.12.14 Council.Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) City Council Report City Council Meeting: June 8, 2021 Agenda Item: 7.A 1 of 25 To: Mayor and City Council From: David Martin, Director, Administration Subject: Santa Monica Outdoors: Extending Pandemic-Era Emergency Allowances Including Outdoor Use Permits and Interim Zoning Changes to Support Santa Monica’s Economic Recovery Recommended Action Staff recommends that the City Council: 1. Introduce and adopt an Emergency Interim Zoning Ordinance to extend currently allowed temporary uses of private outdoor space for commercial activity that would otherwise expire 30 days after the conclusion of the County’s pandemic-related emergency orders, and extend certain zoning changes necessary for continued emergency response and economic recovery. 2. Introduce and adopt an Emergency Ordinance to authorize the issuance of permits and licensing agreements as part of a one-year pilot program that expires on June 30, 2022 to allow continued uses of public property, including streets and sidewalks, for commercial activity, the authorization for which would otherwise expire 30 days after the conclusion of the County’s pandemic-related emergency orders. 3. Adopt a Fee Resolution to authorize fee waivers for outdoor dining license fees and processing fees for outdoor dining permits, authorize fee waivers and fee reductions for outdoor fitness fees in City Parks and the Beach, extend the fee waivers associated with temporary use permits, establish fees for use of public property pursuant to Santa Monica Municipal Code Chapter 6.40 to commence no earlier than January 1, 2022, and authorizes temporary closure of portions of Main Street. 4. Adopt a Fee Resolution setting the outdoor dining license fees using the 2020 calendar year rates, effective as of January 1, 2022, with annual Consumer Price Index adjustments commencing January 1, 2023. 5. Authorize the City Manager to negotiate and execute a Memorandum of Understanding granting Downtown Santa Monica, Inc. authority and responsibility for managing community-serving events and programming in the downtown district, with direction to return with any proposed modifications to the event ordinance determined necessary to accomplish this. 6. Receive a plan for Pilot Program closure of Main Street and direct staff to proceed with the proposed plan for closure. 7.B.b Packet Pg. 1537 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 2 of 25 Summary Temporary Outdoor Use Permits authorized under the City’s emergency orders have been a critical component of the City’s crisis response to sustain locally owned small businesses in Santa Monica during the COVID- 19 pandemic. These permits have facilitated the rapid transition of traditional indoor commercial activities such as dining, retail, and fitness to outdoor venues that have helped to bolster the local economy and enhance the mental and physical wellbeing of residents and visitors by providing for “Santa Monica Outdoors.” These activities include: • Parklets on many neighborhood-serving commercial corridors, including Main Street, Montana Avenue, and throughout the Downtown, have enabled business activity when many indoor activities were prohibited. Parklets (converted on-street parking spaces) are primarily utilized by local restaurants, though there are numerous examples of retail, personal services, and fitness parklets across the city. • Outdoor Uses on Private Property have permitted parking lots and courtyards to be repurposed for a range of uses including outdoor dining, fitness, and nail salons. These spaces have been a lifeline to businesses who cannot accommodate or do not have access to a parklet space. • Outdoor Dining on the Pier has allowed restaurants to serve patrons on the Pier’s parking deck and public right-of-way. • Satellite Dining on the Third Street Promenade and Satellite Uses on Main Street has permitted use of the Promenade in a new social gathering format that was contemplated in the Promenade 3.0 process and the Main Street parking lane to maximize the availability of parklet spaces. • Outdoor Fitness Classes in City Parks and on the Beach have maximized a studio’s or an instructor’s ability to provide recreational training or wellness offerings to groups of people at a safe distance. • Outdoor Community Events have featured drive-in movies and performances. These events have been held on both public (airport) and private property. 7.B.b Packet Pg. 1538 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 3 of 25 The Temporary Outdoor Use Permits, and associated license agreements entered into pursuant to the City’s emergency order authorizations, are set to expire 30 days after the County’s COVID-19 Health Officer Order expires. With the Governor’s announcement that California intends to fully reopen on June 15, 2021, it is anticipated that the County’s Health Officer Order may soon expire, which would trigger the termination of the Temporary Outdoor Use Permits. Should that happen, those currently using temporarily permitted outdoor spaces in the public right of way and on private property through emergency orders would no longer be able to do so. Parklets, outdoor dining on private property, outdoor dining on the Pier, satellite dining on the Third Street Promenade, and satellite space on Main Street may be extended by a Council-adopted ordinance. Outdoor fitness classes in City parks and on the Beach and outdoor events may be extended by modifications to regulations, guidelines, and permits, which do not require Council action. Due to the widespread success of Temporary Outdoor Use Permits throughout the City’s commercial areas in supporting the economic viability of local businesses, recent survey results demonstrating overwhelming support of the residential and business communities for the continuation of these permit programs, and the recommendations of all City agencies that work within the public right of way, staff recommends that the Council adopt an Emergency Interim Zoning Ordinance (IZO) and an Emergency Ordinance (EO) to continue these permit programs “as- is” through summer 2022, when economic conditions are predicted to be more favorable. Staff anticipates returning to Council at that time with a comprehensive outdoor permit program that would include design details and guidelines, fees for use of the public right of way, and potential staffing requests to maintain and monitor a safe, high-quality outdoor experience. In addition to the temporary outdoor uses cited above, certain zoning changes were also enacted to support emergency response and economic recovery; staff recommends that these zoning changes also be extended through the IZO. 7.B.b Packet Pg. 1539 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 4 of 25 Background The onset of the COVID-19 pandemic and resulting economic crisis necessitated a range of emergency-based regulatory changes to implement recovery measures and to strengthen community resilience. On March 13, 2020, the City declared the existence of a local emergency in response to COVID-19. On April 14, 2020, Council directed that a restructuring of City services be focused around health and safety, emergency response, and economic recovery. As introduced at the April 28, 2020 City Council meeting, the City implemented a multi-pronged economic recovery plan that focused on five policy areas: •  Business Retention/Reopening •  Business Process/Permitting Improvements •  Outreach/Marketing •  Community Economic Development/Local Hire •  Federal and State Resources/Funding Partnerships From April 28 forward, the Economic Recovery Task Force (ERTF) and its five policy groups worked assiduously to implement actions and earmark over $1 million in ERTF funding to support businesses and residents that suffered economic impacts related to the pandemic health orders. These actions included modifications to the City’s regulatory framework and processes using emergency orders to provide immediate and short-term relief for our brick-and-mortar small businesses. The initial round of changes targeted common regulatory barriers that were perceived to add cost and time to the permitting process. Complementing this initial round of amendments was ongoing work to revamp permitting processes for Minor Outdoor Dining (aka “Sidewalk Dining”) and create new permit types to allow for outdoor use of public and private property in such a way that indoor businesses could expand their footprints into the public right of way and onto surface parking lots. Discussion The proposed Emergency Interim Zoning Ordinance (IZO) and Emergency Ordinance (EO) will have the effect of preserving the temporary use of outdoor 7.B.b Packet Pg. 1540 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 5 of 25 space programs, or “Santa Monica Outdoors,” as the emergency orders enabling them are due to expire. For clarity, these two related ordinances address: • Use of the Public Right-of-Way: Programs in the public right-of-way, such as parklets and use of the sidewalk, are addressed through the Emergency Ordinance. • Use of Private Property: The Emergency Interim Zoning Ordinance addresses provisions that are in the Zoning Ordinance and therefore apply mostly to private property. These include outdoor dining in parking lots or courtyards, as well as a handful of other zoning-related provisions. The current “Santa Monica Outdoors” program as implemented through the COVID-19 emergency orders relies on modifications to City processes and regulations to create optimal conditions for economic recovery and business operations during the pandemic. These modifications include suspension of certain zoning requirements, reduction of processing times through streamlined application requirements and regulations, and waiving or suspending fees that are typically associated with issuing permits for use of public property for commercial activities. The current Santa Monica Outdoors program is proposed to be carried forward “as is” to continue to support small business recovery and to afford staff time to establish a more comprehensive and institutionalized program for the long term. The programs recommended by this report for continuation include: • Parklets in the Public Right of Way. Currently, approximately 90 parklets are located in Santa Monica streets serving predominantly restaurants, personal services businesses (such as nail salons), and fitness businesses. Parklets are licensed for private use, meaning that they are operated and maintained by local businesses for the exclusive use of paying customers. Table service and alcohol sales are permitted within parklets in accordance with State Alcohol and Beverage Control and City emergency regulations. There are three types of parklets currently utilized in Santa Monica: o “Kit of Parts” Parklets that involve metal rail fencing anchored by heavy planters and landscaping. Many businesses have procured these materials on their 7.B.b Packet Pg. 1541 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 6 of 25 own. Through a $15,000 allocation from the ERTF, the City loaned 15 of these parklet kits to businesses free of charge. Additional “kit of parts” were purchased by Downtown Santa Monica, Inc., (DTSM) and distributed to businesses in the Downtown. The Montana Avenue Merchants Association further fortified the Montana Avenue parklets with the addition of water-filled barriers at the ends. o Deck and Railing Parklets that conform to the City’s standards for structures in the public right of way. Many local businesses have invested in fabricating substantial parklet designs out of wood or metal. o The Main Street Al Fresco parklets that are characterized by the use of concrete K-rails. Many businesses have created decks within this space that are level with the curb, effectively creating a wider sidewalk space for outdoor dining. The original City-built parklets that were created as a pilot in 2015 have been integrated into the Al Fresco project. 7.B.b Packet Pg. 1542 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 7 of 25 • Temporary Outdoor Business Use of Private Property. Currently, approximately 70 local businesses are using a Temporary Outdoor Use Permit to conduct retail, restaurant, and fitness activities on surface parking lots, courtyards, and other private spaces to help offset the pandemic-related indoor use restrictions. This opportunity serves many businesses that are not able to have a parklet in front of their business, particularly on commercial streets such as Pico Blvd. and sections of Wilshire and Ocean Park Boulevards with higher traffic speeds. Currently, the primary activity this supports is outdoor dining. Similar to parklets, table service and alcohol sales are temporarily permitted within these spaces, and parking requirements are suspended. 7.B.b Packet Pg. 1543 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 8 of 25 • Satellite Dining on the Third Street Promenade. Approximately five restaurants in the immediate vicinity of the Promenade that were limited in their ability to use parklets and/or sidewalk dining in front of their business (due to bus lane, red curb, narrow sidewalk, or other limitations) have been approved and are operating parklet-style dining in the center of the Promenade right of way. Traditional rules required outdoor dining to occur directly adjacent to its restaurant tenant space, but emergency orders have permitted restaurants to set up tables and chairs in the pedestrianized roadway, leaving the sidewalk free and clear for pedestrian activity and window shopping. • Satellite Use of Main Street Parking Lane. The closure of the Main Street parking lane has enabled Main Street businesses to continue to operate fitness, retail, and personal services over the past year. This program has been very popular with the community and businesses alike and there is tremendous interest in using more of the street for this purpose. The Main Street Satellite program allows unclaimed spaces in the parking lane to be used for permitted uses by other licensed Santa Monica businesses (other than restaurants) as allowed in the Zoning Ordinance. • Expansion of Sidewalk Dining. Under the Temporary Outdoor Use Permits, existing permit holders and new operators were able to temporarily expand their sidewalk footprint for no charge and without triggering any parking requirements. • Outdoor Dining on the Pier. Restaurants are currently using the public right-of- way and Pier deck for outdoor dining. With the reopening of Pacific Park and the controlled reopening of the remainder of the Pier, continuing to allow for outdoor dining in certain sections of the Pier is important to serve customer demand and to support the survival of the Pier tenants. This will need to be balanced with upcoming capital improvement projects to the Pier deck and anticipated partial re-opening of the Pier deck to parking starting in September 2021 Fee Waivers to Support Outdoor Use Programs 7.B.b Packet Pg. 1544 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 9 of 25 To support economic recovery and encourage businesses to participate in the temporary outdoor use programs, the following fees have been waived since the launch of the program. No application fee has been assessed for businesses applying for a Temporary Outdoor Use Permit. The temporary outdoor encroachment agreement signed by all businesses participating in the program includes the following table of fees for use of public space. The fees were based on the “Outdoor Dining Without a Barrier” fees set forth in Resolution No. 10586 (CCS) adopted by City Council on June 21, 2011. The emergency orders and agreement allowed the City to begin charging fees no earlier than March 1, 2021 for satellite uses of the Third Street Promenade and Main Street and November 1, 2020 for all other expanded uses of public space only after providing 30 days written notice and if the County’s Safer at Home Order allowed the business to operate at 50% or greater indoor capacity. Due to the continued economic hardships that local businesses have faced, the fee waivers have continued. Per the existing local emergency orders, staff can start charging for the use of public property with 30 days’ notice. Staff recommends that Council extend these fee waivers through December 2021 with fees then being charged based on the fee schedule provided in Table 1 below using the rates from calendar year 2020, after providing 30 days’ notice to allow businesses to terminate their agreements if they choose. Staff also recommends that the outdoor dining license fees for the existing licensees be waived through December 2021 and that Council adopt a new resolution setting outdoor dining license fees using the rates from calendar year 2020 with annual adjustments for Consumer Price Index commencing January 1, 2023, and each year thereafter. Table 1: Use of Public Space Fees in Temporary COVID-19 Outdoor Encroachment Agreement Location Monthly Charge (per square foot) 3rd Street Promenade $2.66 Transit Mall (Santa Monica Boulevard/Broadway) $2.66 Ocean Avenue $2.48 Montana Avenue $2.20 7.B.b Packet Pg. 1545 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 10 of 25 Wilshire Boulevard $2.12 Main Street $2.12 Ocean Park Boulevard $2.12 Pico Boulevard $2.12 Other Streets $2.12 This extended fee waiver program reflects the economic hardships our small businesses are continuing to face, especially restaurants. According to Santa Monica’s latest quarterly sales tax report (Q4 2020), restaurants have experienced a 50- 66% decrease in sales from the same quarter in 2019 just prior to COVID. It is estimated that those businesses that are able to survive will take at least one year to recover to their pre-pandemic levels. Outdoor fitness and community wellbeing have been further supported by reduced fees at Palisades Park and waived fees at all other parks and the beach for Commercial Fitness Trainers. Staff are requesting the continuation of this program, to be assessed on a quarterly basis in accordance with LA County and State public health guidance and local demand for these services. The following is a summary of fees that have been waived to support the outdoor use program: • Sidewalk Dining o Temporary Encroachment Agreement Licensing fees o Monthly Outdoor Dining License Agreement Fees (for businesses who had approved sidewalk dining prior to COVID) o Application fees for outdoor dining o SMFD Special Event Permits for canopies and tents greater than 400 sf • Parklets o Application fees o Temporary Encroachment Agreement Licensing fees o SMFD Special Event Permits for canopies and tents greater than 400 sf • Private Property o Planning application fees for Temporary Use Permits o Building permit fees waived in certain circumstances • Sidewalk sales & seasonal sales 7.B.b Packet Pg. 1546 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 11 of 25 o Planning application fees for Temporary Use Permits • Outdoor Fitness o Commercial Fitness Trainer Permits in parks and beach (reduced fees at Palisades Park) Table 2: Santa Monica Outdoor – Estimated Value of Fee Waivers Program Beneficiaries Estimated Value of Fee Waivers Temporary Sidewalk Dining Encroachment License Fee 40 businesses - 27,542 SF total area @ $2.12/SF/mos $700,668* Monthly Sidewalk Dining license fees (permanent program) 72 restaurants (existing ODAs pre-COVID) $569,000 Parklets 90 businesses - 164 meters @ $2,600/meter (annual average revenue per parking meter) $426,000* Permit Application Fees 40 businesses @ $1,490.34 (Minor Outdoor Dining Permit Fee) $59,600 SM Fire Dept Event Permits 11 businesses @ $228.98 - $824.04 $3,321 Beach + Park Fitness Permit Waivers 32 fitness trainers @ $450- $1,350/quarter $14,400 Total Value of Santa Monica Outdoors $1.8 million/year *This fee is based on the estimated value of these new uses. Outdoor Programs Extended Through Other Means Several other components of Santa Monica Outdoors are being extended through other measures that do not require an adopted ordinance or Council action. These include: • Outdoor Fitness: the permitting of fitness and recreation training in City parks, the beach, and City-owned parking lots is being extended through updates to the existing Fitness Trainer Permit program, as authorized by SMMC 4.55.030. Specifically, staff are proposing to increase group sizes at Barnard Way Linear Park and Tongva Park as well as to add new locations at 7.B.b Packet Pg. 1547 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 12 of 25 Ken Genser Square, Airport Park parking lot, and Memorial Park, as authorized under SMMC 4.55.030. • Outdoor Community Events: the permitting of drive-in events and allowed outdoor events is being extended through changes to the Administrative Instruction on Events and Site Guidelines, in accordance with the existing Events Ordinance (SMMC Chapter 4.68). Popularity of the Santa Monica Outdoors Program – Residents, Businesses, and City Operations To gather feedback about the suite of temporary outdoor programs, two surveys were administered. The first, a survey for business operators, received 441 responses, while another for residents and other patrons of businesses received 5,299 responses. Comprehensive responses from each survey, including select respondent- submitted photographs, are included in Attachment D. Business Survey Results To date, approximately 212 businesses have participated in the temporary use of outdoor space programs, joining the three parklets and 72 sidewalk dining locations that pre-date the pandemic. According to the business survey, businesses are overwhelmingly supportive of these programs, including those that have not expanded outdoors. Their responses challenge long-held notions about the importance of street parking in Santa Monica’s business districts to a business’s success, with 83% valuing a parklet in front of their business more than curbside parking spaces. An even greater number, 88%, think the parklet program should be extended. And 93% of business that have expanded outdoors on private property (such as in parking lots or courtyards) would like to continue to do so. 7.B.b Packet Pg. 1548 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 13 of 25 Businesses are supportive of the placemaking effect that parklets have on their districts, many of which are park-once destinations where people patronize more than one establishment per visit. Approximately two-thirds of business survey respondents do not believe there should be restrictions on the number of parklets per block and only 20% state that they would be opposed to a neighbor’s parklet in front of or near their storefront. Similarly, businesses are supportive of the permissive regulations that guide the day-to-day administration of the program. Fees have been waived to support small businesses during this challenging period and 58% support continuing to waive these fees until at least January 1, 2022. Charging fees at this juncture would have a chilling effect on participation, as only 40% of businesses stated that they would continue to operate a parklet if fees are charged. Further, 98% believe that restaurants and cafés should be allowed to serve food and drink (including alcoholic beverages) to customers in parklets, in contrast to prior rules that prohibited this activity at the three parklets established under the pilot program on Main Street. Overall, parklet operators are grateful for the opportunities afforded by the program. Nine out of ten respondents credit their parklet with keeping their doors open through the pandemic, benefitting the community with essential goods and services, while also keeping community members employed. And now, with months of 7.B.b Packet Pg. 1549 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 14 of 25 experience, 85% view the parklets as integral to both their businesses’ operations and identity. Residents and Visitors Survey Results According to the resident survey, the community is also heavily invested in the future of these programs, with 5,299 people taking the time to provide input. This sizable cohort is clear about their overwhelming support of these programs and desire to see them become permanent fixtures of the Santa Monica landscape. When asked to choose between outdoor business operations on private property and restoring parking spaces, 96% of respondents selected to allow outdoor operations to continue. A similar 92% think the parklet program should be extended, with 90% affirming that parklets provide a positive benefit to the Santa Monica community. When asked to rate their experiences on a five-star scale, with 5 being the best, parklet visitors gave an average score of 4.6 stars, while private property expansion patrons (parking lot diners) gave a slightly higher average of 4.7 stars. Three out of four respondents feel that parklets are a worthwhile use of limited public curbside parking. Patrons were also asked to select the various modes of 7.B.b Packet Pg. 1550 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 15 of 25 transportation they used to access parklets, and more people walk to parklets (65%) than drive (62%). These programs have served as economic development opportunities for businesses and have assuaged public health concerns for patrons, allowing them to feel comfortable emerging from Safer at Home Orders to access essential goods and services. A staggering 92% state that they are more likely to patronize a business because it has a parklet, and 95% of patrons feel safe when in a parklet. Similarly, 95% are more likely to patronize a business that has expanded outdoors on private property into parking lots and courtyards. City Staff and Public Safety Perspective on Outdoor Uses The creation of the temporary Santa Monica Outdoors program was coordinated with a range of City staff who have formed the ERTF Business Re-Opening Team and have a deep breadth of experience with varying roles servicing the public right of way. The programs were drafted and designed by staff in Planning, Mobility, Economic Development, Public Works, and the City Attorney’s Office. Throughout the implementation of the parklet program, private outdoor dining, and other outdoor activities mentioned in this report, staff from Fire, Police, Big Blue Bus, Street Services, Urban Forest, Parking, and Code Enforcement have also worked collaboratively to design solutions and monitor performance, including limited enforcement activities. Staff from these divisions continue to remain supportive of the Santa Monica Outdoors program and cite very few concerns related to the proposed continuation of these activities “as is.” Issues that will require deeper coordination as a more formalized program is developed for the summer of 2022 include: • Street cleaning and collection activities around outdoor dining activations • Tree canopy management in new parklet areas • Design and engineering of parklet “templates” that institutionalize a range of uniform criteria related to Public Safety and Public Works standards, including the ability for the City to remove a parklet to conduct road or utility repairs 7.B.b Packet Pg. 1551 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 16 of 25 • Educational materials for parklet operators about “do’s and don’ts,” design standards and operational requirements • Analysis and policy development for a City curb space management program to address the appropriate balance of parking, loading zones, number of parklets, etc. Related Efforts: Summer Weekend Closure Plan for Main Street On April 27, 2021, Council directed staff, as part of economic recovery efforts, to consider the proposals of the Main Street Business Improvement Association (MSBIA) and the Ocean Park Association (OPA) and return to Council with a plan to implement a pilot program for temporary summer weekend closure of all or part of Main Street to automobiles and bus traffic, as well as to assess the pilot’s traffic impacts on surrounding neighborhoods. Staff has been working with internal and external stakeholders to develop a pilot program and returns now to Council to seek approval to implement the following pilot program plan. Staff recommends closure of the roughly 1,000 feet between Hill Street and Kinney Avenue and is drafting a Temporary Traffic Control Plan to that effect. This differs slightly from what MSBIA and OPA requested, which sought closure of two short segments -- between Hill Street and north of Ashland Avenue as well as between Ashland Avenue and Kinney Street. As proposed by staff, the plan includes considerations of bikes and buses as well as passenger vehicles. Due to the potential disruption to bus ridership on weekdays, and the potentially inequitable impact of closures on transit-dependent riders, the closure would be limited to weekends (Saturday-Sunday). The exact hours would be part of the traffic control plan process. Currently, three to four weekend closures are being contemplated and would be held once per month. MSBIA and OPA recommend starting in July. Staff is working toward implementing quickly, but final dates will be subject to the availability of traffic control services, as well as business and community input. To assess event transportation impacts, staff has drafted a data collection plan that includes: 7.B.b Packet Pg. 1552 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 17 of 25 • vehicle volume counts on segments of 2nd and 3rd Streets south of Ocean Park Boulevard, • multimodal volume counts on Main Street and Neilson Way (including vehicles, bicycles, and pedestrians), and • on-street parking occupancy for 2nd and 3rd Streets south of Ocean Park Boulevard. These data would be collected in late June as a baseline for “business as usual” and then during the first event weekend for comparison. Staff is getting cost estimates from vendors and is currently reducing scope to reduce costs. In addition, staff will use existing data sources on bus ridership and parking meter and lot utilization. Staff will work with MSBIA/OPA regarding any intercept or public perception surveying to be done. As part of their request, MSBIA/OPA have committed to leading the outreach process and engaging their membership to assist in tasks leading up to and during the event. Staff has provided MSBIA/OPA with a summary of past outreach efforts to assist in their development of an outreach strategy. They are in the process of identifying which tasks can be achieved with the time and resources available. The City has a total of approximately $70,000 available for all the Main Street pilot closures sourced from the Metro grant for the 2020 COAST open streets event, which could not occur due to the pandemic. Metro has allowed for repurposing of funds to this and other Art of Recovery projects. If event costs exceed the available $70,000, including event public safety staffing, the event partners will need to scale back the event or seek other strategies and funding sources. To enable businesses to operate on the portions of Main Street roadway that are subject to temporary closure, staff recommends that Council adopt the Emergency Ordinance, which, in addition to extending the authorization in the emergency order supplements to use the public space, also authorizes the Director of the Community Development Department or designee to issue permits to and enter into licensing 7.B.b Packet Pg. 1553 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 18 of 25 agreements with eligible businesses for use of the Main Street closure area. The portions of the roadway that are unoccupied by businesses will be considered a common area and the City will bear the risk of liability for any injuries that may occur there. The businesses that have obtained a permit and licensing agreement to use the Main Street closure area will be required to maintain insurance as set forth in the Emergency Ordinance, similar to the requirements for use of other public space under the Santa Monica Outdoors program. MSBIA and OPA have expressed concern to staff that requiring businesses to engage in a process to obtain a permit for a short-term, temporary pilot program may discourage businesses from participating in the program. Staff recognizes that concern and are working to streamline the application and permitting process so that it will be as seamless as possible. However, this type of process—the issuance of a permit, a hold harmless agreement, and requirement to maintain insurance—is typical for use of public space, including, for example, community event permits under SMMC Chapter 4.68, outdoor dining licenses under SMMC Section 9.31.200, shared mobility devices under SMMC Chapter 3.22, and commercial fitness instruction under SMMC Section 4.55.030. Because such a process minimizes the City’s exposure to liability for use of public space arising out of private or commercial activity, the City Attorney’s Office recommends that Council require an application and permitting process, including the submission of insurance information, as proposed in the Emergency Ordinance. Finally, staff recommends that Council adopt the resolution (attachment C) that authorizes temporary closure of Main Street to comply with Vehicle Code Section 21101, which requires a resolution or ordinance to temporarily close streets if it is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing. Related Efforts Part 2 – Supporting Community-Serving Events in Downtown Santa Monica As part of economic recovery efforts, Downtown Santa Monica, Inc. (DTSM) is seeking authority from the City to advance community-serving events, programing, and arts activations in key public spaces downtown (including the Third Street 7.B.b Packet Pg. 1554 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 19 of 25 Promenade and other City-owned locations), which will stimulate pedestrian activity in and increase visitors to the downtown district. Staff are seeking Council authorization to negotiate and enter into a MOU which will give DTSM the ability to quickly program more community-serving events and minimize impact on City staff. As the plan develops, staff will return to seek any amendments to the events ordinance that may be necessary to accomplish this. Both DTSM and MSSBIA have proposed temporary street closure pilot programs to support the expansion of “Santa Monica Outdoors” activations in our commercial districts. To support these efforts, staff is working on updating the Community Events Permit process and administrative instructions to allow for temporary street closures in Santa Monica’s commercial districts to help support the safe re-opening of our local businesses and promoting community-service activations in our commercial districts . These partnership events would be authorized through a MOU and community event permits. They would also necessitate staff-approved Temporary Traffic Control Plans. Other Zoning and Land Use Related Changes that are Recommended to be Continued There are a range of other zoning and land use related changes that were made throughout the pandemic to facilitate emergency response and also support local businesses. Changes that are recommended to continue through the IZO and fee resolution are summarized below. Changes Recommended to continue through the IZO: • Temporary Permitted Use in all Zoning Districts: Public safety facilities and emergency shelters o Purpose: Provides flexibility in establishing uses related to health and safety supportive of emergency response and the pandemic recovery. • Temporary drive-through facilities for hospitals, clinics, and pharmacies, only for COVID-19 testing and vaccination o Purpose: The Zoning Ordinance prohibits new drive-through facilities. This special exception is necessary as requests to establish testing and 7.B.b Packet Pg. 1555 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 20 of 25 vaccination sites remain ongoing. Many of these facilities are established within tented parking spaces where tests or vaccinations are administered while patients remain in their vehicles. • Temporary use permits for sidewalk sales and seasonal sales that do not need to comply with Santa Monica Outdoors pilot program and for uses permitted pursuant to 9.31.370(B) of more than 45 days and not exceeding 180 days (6 months) - o Purpose: Provides flexibility for outdoor temporary uses supportive of economic recovery efforts and consistent with social distancing practices during the pandemic recovery. o • Off-site alcohol sales for restaurants and retail alcohol sales for retail establishments, consistent with the State Alcoholic Beverage Control’s (ABC) temporary relief measures. o Purpose: This provision provides restaurants and retailers that sell alcoholic beverages greater flexibility to provide off-site sales during this recovery period, consistent with ABC’s temporary relief measures. Changes Recommended to be Continued Through Fee Resolution • Planning application fees waived for Temporary Use Permits issued pursuant to the Emergency Interim Zoning Ordinance o Purpose: Extending the waiver of temporary use permit application fees would maintain consistency with the Temporary Outdoor Use Program and, as proposed, would continue through the term of the emergency interim zoning ordinance. Environmental Analysis The proposed IZO and EO to continue certain emergency provisions including temporary outdoor use of public right-of-way, zoning changes, and procedural changes to aid in economic recovery are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the 7.B.b Packet Pg. 1556 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 21 of 25 record, it can be seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. The proposal would not result in adverse physical environmental effects since such uses are compatible with surrounding commercial uses, would not create hazards or adverse health effects to any sensitive residential uses, and are permitted land uses in the Zoning Ordinance or have been permitted in many areas of the City for over a year. Therefore, no further environmental review under CEQA is required. In addition, the pilot program to close Main Street on summer weekends is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the State Implementation Guidelines. The proposed pilot program would be a temporary closure of all or part of Main Street for bicycle and pedestrian use. This is a temporary and minor alteration to the street in favor of bicycle and pedestrian improvements. Coastal Act In May 2020, the City submitted a coastal development permit waiver request to the Coastal Commission detailing actions undertaken in response to County and State health officer orders, which was granted by the Commission shortly thereafter. At that time, Coastal Commission staff advised that the City need only to report additional temporary measures undertaken in response to health officer orders to the Coastal Commission. Since that time, City staff has remained in contact with Coastal Commission staff to report temporary measures undertaken, including those that implemented the use of public and private outdoor spaces authorized by the Executive Order. The temporary uses that are proposed to be continued by the Santa Monica Outdoors Pilot program and the Emergency Interim Zoning Ordinance are consistent with current permitted uses and will not result in installation of any permanent structures. Should Council adopt the Emergency Ordinance and Emergency Interim Zoning Ordinance, City staff will report the extension of these temporary uses to Coastal Commission staff in accordance with the Coastal Commission’s prior directive. 7.B.b Packet Pg. 1557 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 22 of 25 Next Steps After Extension of Santa Monica Outdoors A broader policy for the parklet program will be recommended to Council at a later date, including permits and fees that would need to be put in place at minimum to cover staff administration costs and to help offset any loss in parking revenue, where needed. In the meantime, the proliferation of outdoor dining activity will help to generate much- needed sales tax revenue. Restaurants generated an estimated $7 million in sales tax revenue for the City of Santa Monica last year. Allowing our businesses to quickly pivot and use the outdoors has resulted in the most significant business retention measures under the City’s Economic Recovery efforts. Continued use of this space will help these struggling businesses survive and further increase sales tax revenue needed to fund our essential City services and schools. The gradual phasing in of outdoor dining fees will help to generate additional revenue for the City once our businesses have been able to safely resume full indoor operations and survive. Over the course of the following fiscal year, ERTF Business Reopening staff will work collaboratively with City divisions to develop standards and regulations for the permanent incorporation of Santa Monica Outdoors into the municipal framework. This work will include authoring a comprehensive program that is inclusive of design standards and guidelines, processes for application review and monitoring of outdoor spaces, fees for use of public right of way, and staffing assignments or budget requests for the review, permitting and performance inspection of all spaces authorized under the program and funded using new program revenues. Requests for enhanced staffing levels to administer the program would be addressed during the mid-year or exception- based budget process. Outreach to businesses will be a critical component of balancing economic development interests with the safety and maintenance of our public and private commercial activities. ERTF staff envisions returning to Council at a mid-way point in the program development for guidance on key policy areas that arise and report on progress. Staff may also consult with a variety of Boards and Commissions who have province over the public right of way, design of private commercial buildings and spaces, and zoning. 7.B.b Packet Pg. 1558 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 23 of 25 Past Council Actions In response to the declaration of an emergency and subsequent restrictions on business activity, the City enacted several Emergency Orders that were ratified by Council. The Emergency Orders relevant to this staff report are shown in the table below. Issue Date Description 3/17/20 (Attachment E) Fourth Revised Supplement – public safety facilities, hospitals and clinics, and emergency shelters permitted use in all zoning district; drive-through facilities for restaurants permitted use; drive-through facilities for clinics, convenience markets, farmers markets, general markets, hospitals, and pharmacies permitted use 3/21/20, modified 12/8/20 (Attachment F) Seventh Supplement, as superseded and revised by Thirtieth Supplement – Off-site and retail alcohol sales 4/24/20 (Attachment G) Twelfth Supplement – stays longer than 30 days permitted in hotels/motels 8/18/20 (Attachment H) Third Revised Eighteenth Supplement – temporary outdoor uses; extension of deadlines for planning, review, and permit- related actions 9/18/20 (Attachment I) Twenty-Sixth Supplement – permit use of City sites for drive-in movie theaters and other entertainment events; permit gyms and fitness in City parks, beaches, and park parking lots 10/7/20 (Attachment J) Twenty-Seventh Supplement – temporary use permits to allow events up to 180 days 11/24/20 (Attachment K) Twenty-Eighth Supplement – satellite use of Main Street parking lane; waive permit fees for tents larger than 400sf being used for temporary outdoor uses with permits filed with SMFD; temporary water suspension of commercial water service at request of owners; clarification regarding extension of deadlines for planning, review, and permit-related actions. 1/28/21 (Attachment L) Thirty-Third Supplement – satellite outdoor dining extension for Third Street Promenade Financial Impacts and Budget Actions The financial impact of these actions will result in continued reduction in City revenues which are being offset by the Federal stimulus funds. Because many of the temporary Santa Monica Outdoors programs were developed as a crisis response, 7.B.b Packet Pg. 1559 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 24 of 25 no existing fees are in place against which to judge revenue loss. Table 2 (above) lists the $1.8 million in value of “Santa Monica Outdoors” to the businesses and does not reflect the actual decreased revenue to the City as many of the programs authorized under the emergency orders are new programs that did not exist prior to COVID (e.g. private parklets). The only existing fee that is subject to an impact analysis is the extended waiver of pre-pandemic outdoor dining monthly licenses, which amounts to a loss of approximately $569,000 per year and is projected to generate similar revenues again in the Bi-annual Budget forecasts in FY21/22 and FY 22/23. Any reduction in fees in FY21/22 would be offset by the ARPA Federal Stimulus funds in the form of a grant to the General Fund to help cover extended small business outdoor dining fee waivers. Staff has also budgeted for 50% reduction in revenue for the next fiscal year in anticipation of the Commercial Fitness Permit fee waivers. To minimize future losses in parking revenue tied to “Santa Monica Outdoors,” staff are recommending the Pier parking deck re-open by September 1, 2021 to generate much-needed revenue for the Pier. The Pier restaurants have designated outdoor dining areas that will not be impacted by the parking deck re-opening. Citywide, parking revenues vary seasonally, but the current budget includes a 10-month revenue total estimate of $1.18M (average of $118K per month). For the Downtown and Main Street districts, the loss in on-street metered parking during COVID has been offset by parking revenue generated from the public parking lots and structures. Attachments A. Proposed Emergency Ordinance B. Proposed Emergency Interim Zoning Ordinance C. Fee Resolution Waiving Certain Fees on a Temporary Basis, Establishing Fees for Santa Monica Outdoors Pilot Program, and Authorizing Temporary Closure of Portions of Main Street D. Santa Monica Outdoors Survey Results E. Fourth Revised Supplement (weblink) F. Seventh Supplement (weblink) 7.B.b Packet Pg. 1560 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 25 of 25 G. Twelfth Supplement (weblink) H. Third Revised Eighteenth Supplement (weblink) I. Twenty-Sixth Supplement (weblink) J. Twenty-Seventh Supplement (weblink) K. Twenty-Eighth Supplement (weblink) L. Thirty-Third Supplement (weblink) M. Fee Resolution Establishing Fees for Outdoor Dining Area Licenses Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council Attachments: A. Exhibit A: Proposed Emergency Ordinance (SMMC Chapter 6.40) B. Exhibit B: Life Outdoors IZO C. Exhibit C: Resolution Waiving and Establishig Certain Fees and Authorizing Temp. Closure of Main St D. Exhibit D: Survey Results & Select Respondent-submitted Photos E. Exhibit E: Fourth Revised Supplement F. Exhibit F: Seventh Supplement G. Exhibit G: Twelth Supplement H. Exhibit H: Third Revised Eighteenth Supplement I. Exhibit I: Twenty-Sixth Supplement J. Exhibit J: Twenty-Seventh Supplement K. Exhibit K: Twenty-Eighth Supplement L. Exhibit L: 33rd Supplemental Order M. Exhibit M: Fee Resolution Establishing Fees for Outdoor Dining Area Licenses N. Written Comments 7.B.b Packet Pg. 1561 Attachment: 2021.06.08 Council Report (4858 : Santa Monica Outdoors Program Extension (15 mins)) 1 City Council Meeting: May 10, 2022 Santa Monica, California ORDINANCE NUMBER ___________(CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 6.40.050 TO EXTEND THE TERM OF THE SANTA MONICA OUTDOORS PILOT PROGRAM WHEREAS, on June 8, 2021, the City Council adopted Emergency Ordinance No. 2673, establishing Santa Monica Municipal Code Chapter 6.40, which implemented the Santa Monica Outdoors Pilot Program and continued the authorization originally provided in the City’s supplements to its declaration of the existence of a local emergency for eligible businesses temporarily to use certain outdoor public property for dining and other business activities; and WHEREAS, the Santa Monica Outdoors Pilot Program is set to expire on June 30, 2022; and WHEREAS, staff is in the process of working on a permanent parklet program and anticipates returning to Council on June 28, 2022 with a new program to replace the Santa Monica Outdoors Pilot Program that would be adopted by ordinance and go into effect by late summer 2022; 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 WHEREAS, extending the term of the Santa Monica Outdoors Pilot Program to September 30, 2022 will facilitate business recovery, generate increased sales tax 7.B.c Packet Pg. 1562 Attachment: Proposed Ordinance Extending Term of Pilot Program (4858 : Santa Monica Outdoors Program Extension (15 mins)) 2 revenue for the City, and provide City staff the time necessary to develop and bring to Council a permanent parklet program as well as transition interested businesses to, as applicable, the new parklet program or a sidewalk dining permit and license agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 6.40.050, Pilot program term, is hereby amended to read as follows: 6.40.050 Pilot program term. Permits issued pursuant to this Chapter shall terminate and be of no further force or effect beyond September June 30, 2022, unless otherwise extended or terminated earlier by the City at its discretion and consistent with any noticing requirements set forth in the administrative regulations or the licensing agreement between the City and the eligible business. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not 7.B.c Packet Pg. 1563 Attachment: Proposed Ordinance Extending Term of Pilot Program (4858 : Santa Monica Outdoors Program Extension (15 mins)) 3 declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _______________________ SUSAN Y. COLA Interim City Attorney 7.B.c Packet Pg. 1564 Attachment: Proposed Ordinance Extending Term of Pilot Program (4858 : Santa Monica Outdoors Program Extension (15 mins)) 1 City Council Meeting: May 10, 2022 Santa Monica, California RESOLUTION NO. (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING THE WAIVER OF CERTAIN FEES ON A TEMPORARY BASIS TO FURTHER STIMULATE ECONOMIC RECOVERY WHEREAS, on June 8, 2021, the City Council adopted Emergency Ordinance No. 2673, establishing Santa Monica Municipal Code Chapter 6.40, which implemented the Santa Monica Outdoors Pilot Program through June 30, 2022, continued the authorization provided in the City’s supplements to its declaration of the existence of a local emergency for eligible businesses temporarily to use certain outdoor public property for dining and other business activities, and authorized the City Council to set charges by resolution to reflect the use of the outdoor public property; and 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, on June 8, 2021, the City Council adopted Resolution No. 11339, which, among other things, (1) waived until December 31, 2021 the monthly license fee 7.B.d Packet Pg. 1565 Attachment: Proposed Resolution Extending Certain Fee Waivers/Reductions (4858 : Santa Monica Outdoors Program Extension (15 mins)) 2 that restaurants 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 (2) established fees for the Santa Monica Outdoors Pilot Program that are to commence no earlier than January 1, 2022 and following at least 30 days’ notice provided to eligible businesses with a Santa Monica Outdoors Pilot Program permit; (3) waived the quarterly use charges for businesses with a commercial fitness or athletic instruction permit issued pursuant to Santa Monica Municipal Code through June 30, 2022, except that such businesses operating in Palisades Park were required to pay a reduced quarterly rate; and (4) waived until June 30, 2022 processing fees for certain temporary use permits issued pursuant to Santa Monica Municipal Code Section 9.31.370; and WHEREAS, on June 8, 2021, the City Council adopted Resolution No. 11340, which re-set the outdoor dining licensing fee for licenses issued pursuant to Santa Monica Municipal Code 9.31.200 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; and WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 11392, which, through June 30, 2022, waived (1) the monthly license fee that restaurants 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 (2) the monthly license fee that eligible businesses with a Santa Monica Outdoors Pilot Program permit are required to pay for the use of public property pursuant to Santa Monica Municipal Code Chapter 6.40; and 7.B.d Packet Pg. 1566 Attachment: Proposed Resolution Extending Certain Fee Waivers/Reductions (4858 : Santa Monica Outdoors Program Extension (15 mins)) 3 WHEREAS, concurrent with this Resolution, City Council introduced for first reading an ordinance that would extend the term of the Santa Monica Outdoors Pilot Program until September 30, 2022; 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 WHEREAS, businesses, and particularly restaurants, have suffered significant economic hardships as a result of the COVID-19 pandemic and the threat of new variants and potential surges in the future continues to create much uncertainty in terms of economic recovery; and WHEREAS, to stimulate economic recovery, the City Council desires, until September 30, 2022, to waive the monthly license fees that restaurants are required to pay pursuant to their respective outdoor dining license agreements and the monthly license fee for use of outdoor public property pursuant to the Santa Monica Outdoors Pilot Program; to waive the processing fees for certain temporary use permits issued pursuant to Santa Monica Municipal Code Section 9.31.370; and to waive or reduce the quarterly use charges for businesses with a commercial fitness or athletic instruction permit issued pursuant to Santa Monica Municipal Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. From the effective date of this resolution until September 30, 2022, the City waives the monthly license fee that restaurants are required to pay pursuant to their respective outdoor dining license agreements with the City under Santa Monica 7.B.d Packet Pg. 1567 Attachment: Proposed Resolution Extending Certain Fee Waivers/Reductions (4858 : Santa Monica Outdoors Program Extension (15 mins)) 4 Municipal Code Section 9.31.200. Thereafter, restaurants shall resume paying their respective monthly outdoor licensing fees according to the fees established by Resolution No. 11340, or any amendments or successors thereto. SECTION 2. From the effective date of this resolution until September 30, 2022, the City waives the monthly license fee to eligible businesses with a Santa Monica Outdoors Pilot Program permit for the use of public property pursuant to Santa Monica Municipal Code Chapter 6.40. SECTION 3. From the effective date of this resolution until September 30, 2022, businesses with a commercial fitness or athletic instruction permit issued pursuant to Santa Monica Municipal Code Section 4.55.030 are not required to pay quarterly use charges, unless the business provides commercial fitness or athletic instruction at Palisades Park in which case the quarterly use charges shall be (a) $450 per quarter for small groups (not more than 2); $900 per quarter for medium groups (not more than 10); and (b) $1,350 per quarter for large groups (not more than 15). SECTION 4. From the effective date of this resolution until September 30, 2022, the City waives processing fees for temporary use permits for sidewalk sales and other seasonal sales that are not otherwise required to comply with the provisions of the Santa Monica Outdoors Pilot Program, and for temporary use permits issued for a period longer than 45 days but less than 180 days, issued pursuant to the emergency interim zoning ordinance adopted concurrently with this resolution that extends and amends interim zoning regulations set forth in Emergency Interim Zoning Ordinance Number 2678 (CCS). SECTION 5. The waiver of fees by this resolution shall be effective immediately upon adoption of this resolution. 7.B.d Packet Pg. 1568 Attachment: Proposed Resolution Extending Certain Fee Waivers/Reductions (4858 : Santa Monica Outdoors Program Extension (15 mins)) 5 SECTION 6. If there are any conflicts between the 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: _______________________ SUSAN Y. COLA Interim City Attorney 7.B.d Packet Pg. 1569 Attachment: Proposed Resolution Extending Certain Fee Waivers/Reductions (4858 : Santa Monica Outdoors Program Extension (15 mins)) 1 City Council Meeting: May 10, 2022 Santa Monica, California ORDINANCE NUMBER_________(CCS) (City Council Series) AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING AND EXTENDING INTERIM ZONING REGULATIONS ESTABLISHED BY EMERGENCY INTERIM ZONING ORDINANCE NUMBER 2674 (CCS) AND EXTENDED BY EMERGENCY INTERIM ZONING ORDINANCE 2678 (CCS) AUTHORIZING TEMPORARY USE OF PRIVATE OUTDOOR SPACE; TEMPORARY PERMITTED USES FOR EMERGENCY SHELTERS, PUBLIC SAFETY FACILITIES, AND DRIVE- THROUGH FACILITIES FOR COVID-19 TESTING AND VACCINATION PURPOSES; AND FLEXIBILITY IN ISSUANCE OF TEMPORARY USE PERMITS AND ALCOHOLIC BEVERAGE SALES 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, 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 17, 2020, the Director of Emergency Services issued a Revised Fourth Supplement to the Executive Order (“Revised Fourth Supplement”), which among other things, permitted public safety facilities, hospitals, clinics, and 7.B.e Packet Pg. 1570 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 2 emergency shelters in all zoning districts and allowed the Director of the Community Development Department or designee to waive development standards, design review, parking and access requirements, and sign standards related to such uses, and allowed drive-through facilities for clinics, convenience markets, farmers markets, general markets, hospitals, pharmacies, and restaurants; 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 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, on March 21, 2020, the Director of Emergency Services issued a Seventh Supplement to the Executive Order aligning the Santa Monica Municipal Code with a California Department of Alcoholic Beverage Control (“ABC”) “Notice of Regulatory Relief” permitting restaurants and retailers holding valid ABC licenses to sell alcoholic beverages for off-site consumption via delivery and take-out; and WHEREAS, on May 29, 2020, the Director of Emergency Services issued an Eighteenth Supplement to the Executive Order, which, among other things, authorized 7.B.e Packet Pg. 1571 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 3 temporary outdoor dining extensions to adjacent sidewalk and/or adjacent parking, courtyard, or other private open space owned by the restaurant; and WHEREAS, on June 23, 2020, the Director of Emergency Services issued a Second Revised Eighteenth Supplement to the Executive Order that modified the First Revised Eighteenth Supplement to, among other things: extend the authorization for temporary dining to adjacent private spaces not owned by the restaurant and to sidewalks in front of adjacent buildings with the consent of either the owner or tenant; extend the authorization for temporary dining to areas of the Pier to be specified by the Director of the Community Development Department subject to specified conditions and any additional regulations; extend the authorization for temporary dining to portions of the sidewalk or roadway in the Third Street Promenade to be specified by the Director of the Community Development Department subject to specified conditions and any additional regulations; authorize the temporary use by businesses of adjacent sidewalks, adjacent private outdoor space, and areas of the Pier to be specified by the Director of the Community Development Department for business activities other than temporary dining, subject to specified conditions and any additional regulations; and authorize restaurants and other businesses to establish temporary parklets for business activities and outdoor dining in on-street parking and loading spaces adjacent to the restaurant or business, subject to specified conditions, specified design and safety specifications, and any additional regulations; and WHEREAS, the Second Revised Eighteenth Supplement also authorized Business Improvement Districts and individual eligible businesses that have obtained a 7.B.e Packet Pg. 1572 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 4 temporary use permit to conduct sidewalk sales and other seasonal sales without otherwise complying with the provisions of the Executive Order; and WHEREAS, on August 22, 2020, the Director of Emergency Services issued a Third Revised Eighteenth Supplement to the Executive Order (“Third Revised Eighteenth Supplement”), which, among other things, superseded and replaced the prior versions of the Eighteenth Supplement, authorized the specified uses of public and private outdoor spaces through the duration of the County’s Health Officer Order, plus an additional 30 days, made other modification governing the conditions for use of the public and private space, and set fines for violations of the conditions for operating in the public right-of-way and in private outdoor spaces through administrative citations; and WHEREAS, on October 7, 2020, the Director of Emergency Services issued a Twenty-Seventh Supplement to the Executive Order (“Twenty-Seventh Supplement”), which, among other things, authorized the Director of the Community Development Department to issue regulations regarding and issue temporary use permits for certain uses allowed by the County Safer at Home Order, including temporary outdoor sales and special events, for a period longer than 45 days but less than 180 days and waived processing fees for such temporary use permits; and WHEREAS, on November 23, 2020, the Director of Emergency Services issued a Twenty-Eighth Supplement to the Executive Order (“Twenty-Eighth Supplement”), which, among other things, authorized the Director of the Community Development Department to issue permits for and regulations regarding the temporary extension by certain eligible businesses of their operations into unused portions of the parking lane on Main Street 7.B.e Packet Pg. 1573 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 5 where the City has placed K-rails and authorized such use through the duration of the County’s Health Officer Order, plus an additional 30 days; and WHEREAS, on December 8, 2020, the Director of Emergency Services issued a Thirtieth Supplement to the Executive Order (“Thirtieth Supplement”), which, among other things, superseded and replaced Sections 1 through 3 of the Seventh Supplement with amended rules regarding off-site and retail alcohol sales that, in particular, add the requirement that authorized sales of to-go alcoholic beverages may be delivered to customers only at the same time as the required accompanying meals; and WHEREAS, on January 28, 2021, the Director of Emergency Services issued a Thirty-Third Supplement to the Executive Order (“Thirty-Third Supplement”), which, among other things, authorized satellite outdoor dining in portions of the roadway in the Third Street Promenade pursuant to limitations set out in the supplement and regulations to be issued by the Director of the Community Development Department and authorized such use through the duration of the County’s Health Officer Order, plus an additional 30 days; and WHEREAS, on March 19, April 6, April 14, May 12, May 26, June 9, June 23, July 14, July 28, September 8, October 27, and December 15, 2020, as well as on January 26, March 23, and effective May 22, 2021, the City Council ratified the Executive Order, as well as the supplements to the Executive Order in place at the time, including the Revised Fourth, Third Revised Eighteenth, Twenty-Seventh, Twenty-Eighth, Thirtieth, and Thirty-Third Supplements; and 7.B.e Packet Pg. 1574 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 6 WHEREAS, the City has issued approximately 70 permits to use private outdoor space pursuant to the Third Revised Eighteenth, Twenty-Eighth, and Thirty-Third Supplements; and WHEREAS, the eligible businesses and restaurants with permits to use public and outdoor space as authorized under the Third Revised Eighteenth, Twenty-Eighth, and Thirty-Third Supplements have been issued temporary outdoor permits or entered into temporary outdoor encroachment agreements with the City, the terms of which are coterminous with the County’s Health Officer Order plus an additional 30 days; and WHEREAS, on April 6, 2021, the Governor of the State of California announced the California would fully re-open its economy on June 15, 2021, provided that vaccine supply was sufficient and hospitalization rates were stable and low; and WHEREAS, on May 21, 2021, the California Department of Public Health announced that, other than for mega events (those with crowds greater than 5,000 for indoor events and 10,000 for outdoor events), beginning on June 15, 2021, the State would not impose on businesses restrictions on capacity and physical distancing; and WHEREAS, on May 21, 2021, the Los Angeles County Department of Public Health announced that the County would align with the State’s June 15, 2021 reopening plans that ease many capacity limits and distancing requirements for businesses; 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 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 7.B.e Packet Pg. 1575 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 7 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, on June 8, 2021, as a result of the State and County’s announcements regarding a planned June 15 reopening, the City Council adopted Emergency Interim Zoning Ordinance Number 2674 (CCS) (“Emergency IZO 2674”) establishing interim zoning regulations to support economic recovery following the anticipated termination of the authorizations to use public space for outdoor business activities as set forth in the City’s Third Revised Eighteenth, Twenty-Eighth, and Thirty-Third Supplements, and to support continued emergency response and pandemic recovery, by authorizing: temporary use of private outdoor space; temporary permitted uses for emergency shelters, public safety facilities, and drive through facilities for Covid-19 testing and vaccination purposes; and flexibility in issuance of temporary use permits and alcoholic beverage sales; and WHEREAS, on June 8, 2021, concurrently with consideration of Emergency IZO 2674, the City Council adopted Ordinance Number 2673 (CCS), an emergency ordinance adding Santa Monica Municipal Code Chapter 6.40, Santa Monica Outdoors Pilot Program, authorizing continued use of public space under the Third Revised Eighteenth, Twenty-Eighth and Thirty-Third Supplements; and WHEREAS, on June 14, 2021, the Director of Emergency Services issued a Thirty- Seventh Supplement to the Executive Order (“Thirty-Seventh Supplement”) which, among other things, allowed provisions of the Revised Fourth, Third Revised Eighteenth, Twenty-Sixth, Twenty-Seventh, Twenty-Eighth, Thirtieth, and Thirty-Third Supplements 7.B.e Packet Pg. 1576 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 8 authorizing continued use of public and private outdoor space for business, emergency response, and pandemic recovery activities to expire because they had been superseded by the adoption of Emergency IZO 2674 and Ordinance 2673; and WHEREAS, on July 27, 2021, the City Council adopted Emergency Interim Zoning Ordinance Number 2678 (CCS) extending the interim zoning regulations established by Emergency IZO 2674 (the “interim zoning regulations”) until June 30, 2022; and WHEREAS, on December 31, 2021, the Notice of Regulatory Relief expired, including provisions authorizing off-site sales of alcoholic beverages by restaurants, and flexibility in retail sales of alcoholic beverages; and WHEREAS, on January 1, 2022, SB 389 became effective, which extends authority for off-site sales of alcoholic beverages by restaurants; and WHEREAS, the interim zoning regulations support economic recovery by temporarily suspending zoning regulations and provisions of previously-issued permits, including, but not limited to, parking requirements (except for those relating to accessible parking) and maximum floor area ratio, to the extent necessary to accommodate the temporary uses permitted by Emergency IZO 2674 and the Santa Monica Outdoors Pilot Program; and WHEREAS, currently, and in accordance with the interim zoning regulations, 87 local businesses are using a Temporary Outdoor Use Permit to conduct retail, restaurant, and fitness activities on private outdoor property—surface parking lots, courtyards, and other spaces on associated privately-owned commercial property—to help offset any pandemic-related indoor use restrictions or accommodate customer preference of being outdoors; and 7.B.e Packet Pg. 1577 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 9 WHEREAS, the interim zoning regulations have been a critical component of the City’s response to sustain businesses in Santa Monica during the COVID-19 pandemic as well as to allow for certain zoning changes to support emergency response and economic recovery; and WHEREAS, continuing to allow eligible businesses to expand their operations to certain public and private outdoor spaces, and providing continued flexibility in the issuance of temporary use permits and alcoholic beverage sales, will facilitate business recovery, generate increased sales tax revenue for the City, and provide City staff the time necessary to develop and bring to Council a permanent and expanded program for businesses to use public and private outdoor space for their operations; and WHEREAS, continuing to permit emergency shelters and public safety facilities, and drive-through facilities for COVID-19 testing and vaccination sites offered by hospitals, clinics, and pharmacies in all zoning districts provides flexibility in uses related to health and safety that are supportive of emergency response and pandemic recovery; and WHEREAS, the City Council finds and declares that a current and immediate threat to the public health, safety, and general welfare continues to exist as a result of the termination of the authorizations for: temporary use of public and private outdoor space as provided by the Third Revised Eighteenth, Twenty-Eighth, and Thirty- Third Supplements; permitted emergency shelters, public safety facilities, and drive- through facilities for COVID-19 testing and vaccination purposes in all zoning districts as provided by the Revised Fourth Supplement; issuance of temporary use permits as provided by the Third Revised Eighteenth and Twenty-Seventh Supplements; and 7.B.e Packet Pg. 1578 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 10 allowed flexibility in off-site and retail sales of alcoholic beverages as provided by the Thirtieth Supplement; that approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement in accordance with current zoning regulations would impede the City’s ability to allow for uses related to health and safety that are supportive of emergency response and pandemic recovery and cause disruption to and economic harm to the City’s businesses; and that as a result extension of the interim zoning regulations established by Emergency IZO 2674 and extended by Emergency IZO 2678 pursuant to this emergency interim zoning ordinance is necessary to protect the public health, safety, and welfare. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Authorization for Temporary Uses. A. Definitions. The following words and phrases have the following meanings when used in these interim zoning regulations: 1. “Eligible business” means (a) a business that operates out of a physical location in the City and has received any necessary entitlements from the City to operate; and (b) the use of the physical location by the business is a non- residential use classification that is permitted or conditionally permitted in the district, other than a liquor store, or an automobile/vehicle service and repair, minor or major, as those terms are defined by Santa Monica Municipal Code Section 9.51.030. 2. “Private outdoor space” means all or a portion of a parking lot, courtyard, plaza, or other private open space area either owned by the eligible 7.B.e Packet Pg. 1579 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 11 business or temporarily used by the eligible business as authorized by these interim zoning regulations. The private outdoor space must be on the same parcel or a parcel immediately adjacent to the eligible business. 3. “Director” means the Director of the Community Development Department or designee. 4. “Santa Monica Outdoors pilot program” means the use by a restaurant or eligible business of the Main Street Closure Area, Main Street satellite space, a parklet, the Promenade outdoor dining area, the Promenade satellite outdoor dining area, or a sidewalk for either, as applicable, outdoor dining or business activities in compliance with Santa Monica Municipal Code Chapter 6.40. B. Temporary Use of Private Outdoor Space. 1. Authorization. The Director is authorized to issue permits for temporary use of private outdoor space to eligible businesses that meet the requirements set forth in these interim zoning regulations and associated administrative regulations. 2. Temporary Use of Private Outdoor Space Requirements. a. Application and Fees. Any eligible business seeking to obtain a temporary use of private outdoor space permit shall submit an application using a form designated by the Director for that purpose. Any application shall be accompanied by the required fee, if any, adopted in accordance with Santa Monica Municipal Code Section 9.37.020(C). 7.B.e Packet Pg. 1580 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 12 b. Permit required. No person may conduct a temporary use of private outdoor space without having obtained a permit from the City. c. Posting of Temporary Use of Outdoor Private Space Permit Required. The temporary use of private outdoor space permit shall be displayed by the eligible business during business hours. d. Signs. Notwithstanding anything to the contrary in Chapter 9.61 of the Santa Monica Municipal Code, an eligible business that has obtained a temporary use of private outdoor space permit may place a single, non-permanent sign with the eligible business’s name and, if the eligible business is a restaurant, a menu within the private outdoor space that is subject to the temporary use of private outdoor space permit. e. Removal of new construction. Regardless of whether a building permit for any new construction in the private outdoor space is required or obtained, the City reserves the right to require the eligible business to remove any new construction in the private outdoor space following the expiration of these interim zoning regulations, or any permit issued for temporary use of private outdoor space pursuant to these interim zoning regulations, for any reason, including that the structure fails to comply with any provisions of Article IX of the Santa Monica Municipal Code, or any conditions to permits previously issued by the City, including, but not limited to, parking requirements and maximum floor area ratio that are temporarily suspended under Section 3 of these interim zoning regulations. The construction of a temporary deck or other structure in the 7.B.e Packet Pg. 1581 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 13 private outdoor space does not confer any vested rights to any ongoing or continuing activities or use of such a deck or structure beyond the expiration of these interim zoning regulations or any permit issued for temporary use of private outdoor space pursuant to these interim zoning regulations. f. Compliance with Permit Requirements and Administrative Regulations. An eligible business that has obtained a temporary use of private outdoor space permit shall comply with any other permit requirements or conditions set forth in the administrative regulations issued under these interim zoning regulations. 3. Administrative Regulations. a. The Director may adopt administrative regulations to implement the provisions of this Section 1(B), including, but not limited to, restrictions on hours of operation, and additional conditions for conducting the temporary outdoor eligible business activity use authorized by these interim zoning regulations. b. No person shall fail to comply with the City’s administrative regulations. C. Temporary Permitted Uses. 1. Notwithstanding anything to the contrary in the land use regulations set forth in Sections 9.07.020, 9.08.020, 9.09.080, 9.10.040, 9.11.020, 9.13.020, 9.14.020, or 9.15.020 of the Santa Monica Municipal Code, for the term set forth in Section 2(B) below, the following use classifications shall be temporarily permitted uses in all zoning districts: 7.B.e Packet Pg. 1582 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 14 a. Public safety facility, as defined by Santa Monica Municipal Code Section 9.51.030(A)(10); and b. Emergency shelter, as defined by Santa Monica Municipal Code Section 9.51.020(A)(4); and c. Drive-through facility for a clinic, as defined by Santa Monica Municipal Code Section 9.51.030(A)(8)(a); hospital, as defined by Santa Monica Municipal Code Section 9.51.030(A)(8)(b); general retail sales, small scale, as defined by Santa Monica Municipal Code Section 9.51.030(B)(22)(b) that is operating as a pharmacy; or general sales, medium scale, as defined by Santa Monica Municipal Code Section 9.51.030(B)(22)(b) that is operating as a pharmacy, all for the limited purpose of conducting COVID-19 testing and vaccination services. 2. Establishment of and development standards for the above-listed uses shall be approved by the Director or designee. No conditional use permit or temporary use permit shall be required for any of the above-listed uses. Development standards, design review, parking and access requirements and sign standards related to any of the above-listed uses may be waived at the discretion of the Director or designee. D. Temporary Use Permits. 1. Business Improvement Districts and individual eligible businesses that have obtained a Temporary Use Permit in accordance with Santa Monica Municipal Code Chapter 9.44 may conduct sidewalk sales and other seasonal sales in accordance with Santa Monica Municipal Code Section 9.31.370, 7.B.e Packet Pg. 1583 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 15 Temporary Uses and Seasonal Sales, without otherwise complying with the provisions of Santa Monica Municipal Code Chapter 6.40, Santa Monica Outdoors Pilot Program. 2. Notwithstanding anything to the contrary in Section 9.44.060 of the Santa Monica Municipal Code, the Director or designee may issue Temporary Use Permits for uses that are permitted pursuant to Santa Monica Municipal Code Section 9.31.370(b) of more than 45 consecutive days, but in no event more than 180 consecutive days, subject to making the required findings in Santa Monica Municipal Code Section 9.44.030 and any conditions of approval imposed by the Director or designee pursuant to Santa Monica Municipal Code Section 9.44.040. The Director may issue only one temporary use permit under this paragraph per use during the term set forth in Section 2(C) below. Applicants that were issued a temporary use permit for up to 180 days pursuant to the Twenty-Seventh Supplement may receive one temporary use permit for up to 180 days during the term set forth in Section 2(C). E. Alcoholic Beverage Sales. 1. Off-site Alcohol Sales for Restaurants. Notwithstanding anything to the contrary in Section 9.31.040 of the Santa Monica Municipal Code, or any conditions to permits previously issued by the City, for the term set forth in Section 2(D) below, off-site alcohol sales shall be permitted for Restaurants, Full-Service, as that term is defined by Section 9.51.030(B)(8)(b) of the Santa Monica Municipal Code, and Restaurants, and Limited-Service and Take-Out, as that term is defined by Section 9.51.030(B)(8)(c) of the Santa Monica Municipal Code that: 7.B.e Packet Pg. 1584 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 16 a. Have obtained and are operating under a license to sell alcoholic beverages from the California Department of Alcoholic Beverage Control (“ABC”); b. Have obtained and are operating under a Conditional Use Permit or Alcohol Exemption issued by the City of Santa Monica, or are operating as an existing alcohol outlet without a Conditional Use Permit pursuant to Section 9.31.040 of the Santa Monica Municipal Code; c. Conduct such sales in accordance with all conditions and requirements set forth in California Business and Professions Code Section 23401.5 related to selling alcoholic beverages for off-sale consumption ABC’s First Notice of Regulatory Relief issued on March 19, 2020, including, but not limited to, provisions related to On-Sale Retailers Exercising Off-Sale Privileges and Sales of Alcoholic Beverages To Go; and d. Do not serve, deliver, or otherwise provide to the consumer any to-go alcoholic beverages before serving, delivering, or otherwise providing the consumer the meals sold in conjunction with any such to-go alcoholic beverages. 2. Retail Sales. Notwithstanding anything to the contrary in Section 9.31.040, or any conditions to permits previously issued by the City, for the term set forth in Section 2(D) below, retail sales of alcohol shall be permitted in accordance with the conditions and requirements set forth in ABC’s First Notice of Regulatory Relief issued on March 19, 2020 and the Second Notice of Regulatory 7.B.e Packet Pg. 1585 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 17 Relief issued on April 1, 2020 for Convenience Markets, as that term is defined by Section 9.52.030(B)(10)(a) of the Santa Monica Municipal Code, General Markets, as that term is defined by Section 9.51.030(B)(10)(c) of the Santa Monica Municipal Code, and Liquor Stores, as that term is defined by Section 9.51.030(B)(10)(d) that: a. Have obtained and are operating under a license to sell alcoholic beverages from ABC; b. Have obtained and are operating under a Conditional Use Permit or Alcohol Exemption issued by the City of Santa Monica, or are operating as an existing alcohol outlet without a Conditional Use Permit pursuant to Section 9.31.040 of the Santa Monica Municipal Code; and c. Conduct such sales in accordance with all conditions and requirements set forth in ABC’s First Notice of Regulatory Relief issued on March 19, 2020 and the Second Notice of Regulatory Relief issued on April 1, 2020, including, but not limited to, Off-Sale Transactions Through Pass- Out Windows, Hours of Operations for Retail Sales, and Deliveries to Consumers. SECTION 2. Term of Temporary Uses Authorized by Interim Zoning Regulations. A. Temporary Use of Private Outdoor Space. The Director’s authority to issue permits for temporary use of private outdoor space pursuant to Section 1(B) of these interim zoning regulations shall terminate and be of no further force and effect upon expiration of these interim zoning regulations, unless otherwise extended in accordance 7.B.e Packet Pg. 1586 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 18 with Section 9.46.090(C) of the Santa Monica Municipal Code. Permits to authorize temporary use of private outdoor space issued pursuant to Section 1(B) of these interim zoning regulations shall terminate and be of no further force or effect beyond December 31, June 30, 2022, unless otherwise extended or terminated earlier by the City at its discretion, and consistent with any noticing requirements set forth in the administrative regulations or the permit issued by the City. B. Temporary Permitted Uses. Temporary permitted uses authorized by Section 1(C) of these interim zoning regulations shall terminate upon expiration of these interim zoning regulations, unless otherwise extended in accordance with Section 9.46.090(C) of the Santa Monica Municipal Code. C. Temporary Use Permits. The Director’s authority to issue temporary use permits pursuant to Section 1(D) of these interim zoning regulations shall terminate and be of no further force and effect upon expiration of these interim zoning regulations, unless otherwise extended in accordance with Section 9.46.090(C) of the Santa Monica Municipal Code. Temporary uses permitted by temporary use permits issued pursuant to Section 1(D) of these interim zoning regulations shall terminate and be of no further force and effect in accordance with the terms of the temporary use permit. D. Alcohol Sales. Alcohol sales authorized by Section 1(E) of these interim zoning regulations shall terminate upon expiration of these interim zoning regulations, unless otherwise extended in accordance with Section 9.46.090(C) of the Santa Monica Municipal Code, or upon termination of the Notice of Regulatory Relief issued by ABC authorizing such sales, whichever is sooner. 7.B.e Packet Pg. 1587 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 19 SECTION 3. Temporary Suspension of Zoning Regulations. The provisions of the City of Santa Monica Comprehensive Zoning Ordinance, Divisions 1 through 5 of Article IX of the Santa Monica Municipal Code, or any conditions to permits previously issued by the City, including, but not limited to, parking requirements (except for those relating to accessible parking) and maximum floor area ratio, are hereby temporarily suspended to the extent necessary to accommodate the temporary uses permitted by these interim zoning regulations and Santa Monica Municipal Code Chapter 6.40, Santa Monica Outdoors Pilot Program. SECTION 4. No Vested Rights Conferred. Eligible business activity authorized by these interim zoning regulations shall be conducted as a temporary use, or a temporary accessory use to a legally established business that is located on the parcel, on an adjacent parcel, or, if the eligible business activity is conducted on a sidewalk, adjacent to the eligible business. Nothing in these interim zoning regulations, or any permits issued pursuant to these interim zoning regulations, shall be considered an entitlement or permit for permanent use or to confer any vested rights to any ongoing or continuing activities beyond the expiration of these interim zoning regulations, or the expiration of any permits issued pursuant to these interim zoning regulations. SECTION 5. Enforcement. A. Any person who violates any provision of these interim zoning regulations, including any administrative regulations, shall be guilty of an infraction, which shall be punishable by a fine not exceeding $250 dollars, or a misdemeanor, which shall be 7.B.e Packet Pg. 1588 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 20 punishable by a fine not exceeding $500 dollars per violation or by imprisonment in the County Jail for a period not exceeding six months or by both such fine and imprisonment. B. Any person who violates any provision of these interim zoning regulations, including any administrative regulations, shall be subject to administrative fines and administrative penalties pursuant to Chapter 1.09 and Chapter 1.10 of this Code. C. Any person convicted of violating these interim zoning regulations in a criminal case, or found to be in violation of these interim zoning regulations in a civil or administrative case brought by a law enforcement agency, shall be ordered to reimburse the City and other participating law enforcement agencies their full investigative costs. SECTION 6. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Emergency Interim Zoning Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Emergency Interim Zoning Ordinance. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Emergency Interim Zoning Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Emergency Interim Zoning Ordinance. The City Council hereby declares that it would have passed this Emergency Interim Zoning Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 8. The Mayor shall sign and the City Clerk shall attest to the passage of this Emergency Interim Zoning Ordinance. The City Clerk shall cause the same to be 7.B.e Packet Pg. 1589 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) 21 published once in the official newspaper within 15 days after its adoption. This Emergency Interim Zoning Ordinance shall become effective immediately upon adoption. SECTION 9. This Emergency Interim Zoning Ordinance shall be of no further force or effect after December 31, 2022 unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090(C). APPROVED AS TO FORM: _______________________ SUSAN Y. COLA Interim City Attorney 7.B.e Packet Pg. 1590 Attachment: Proposed Emergency Interim Zoning Ordinance [Revision 1] (4858 : Santa Monica Outdoors Program Extension (15 mins)) Board Executives Chair Michael Ricks Providence Saint John’s Health Center Chair-elect Greg Morena The Albright Past Chair Becky Warren Elevate Public Affairs Treasurer Len Lanzi Stubbs, Alderton & Markiles LLP Vice Chair Julia Ladd Santa Monica Place/Macerich Vice Chair Paula Larmore Harding Larmore Kutcher & Kozal LLP Vice Chair Ellis O’Connor MSD Hospitality/Fairmont Miramar Hotel Board Members Younes Atallah Loews Santa Monica Beach Hotel Craig Babington Morley Builders Andrew Barrett-Weiss GoodRX Dom Bei Santa Monica Firefighters Local 1109 Jason Berkowitz Arrow Up Training Jasson Crockett Snapchat Kevin Delijani Delphi Real Estate Group Dr. Ben Drati SMMUSD Celia Fisher Beach Moms Daycare Rudy Flores Santa Monica Police Officers Association Board Members, Cont. Jeffrey Fritz Fritz Buffone Group | Compass Realty Lisa Glasser Oracle Ryan Ole Hass Align RE | a global real estate collaboration Ann Hsing Pasjoli Kathy Irby Commercial Bank of California Jeff Jarow PAR Commercial Dr. Kathryn Jeffery Santa Monica College Kim Koury Spin PR Julien Laracine Proper Hospitality Hayden Lee Hayden Lee Coaching Intl. Charlie Lopez-Quintana ETC Hotels Jonathan McCowan 310 Tutors Susan Neisloss Big Bite Productions Pam O’Connor Terry O’Day In Charge Energy Janet Rimicci UCLA Health Laura Rosenbaum CIT One West Beth Schroeder Raines Feldman Jon Shoemaker Gumbiner Savett, Inc. Nat Trives Coalition for Engaged Education Jerry L. Yu Kaiser Permanente May 10, 2022 City Council City of Santa Monica 1685 Main Street Santa Monica, California, 90401 RE: Item 7.B – Santa Monica Outdoors Pilot Program - SUPPORT Dear Mayor and Council Members: On behalf of the Santa Monica Chamber of Commerce we write in support of item 7.B on tonight’s agenda. The City’s swift action in standing up a no-cost outdoor business program has provided a lifeline to our local businesses which have struggled through the past two years of a global pandemic. While the horizon is brighter than it has been in the past two years, the reality is our businesses still need as much support as possible to stabilize their finances and operations. Extending the pilot program, fee waivers, and IZO will provide our businesses with additional financial relief and certainty that the investments they have made in their outdoor business spaces will continue to serve customers and generate revenue for them. We thank you for your attention to our business community’s concerns and your continued action to support our community’s economic recovery. Sincerely, Matt Stauffer Michael Ricks Interim CEO 2021-22 Board Chair Item 7.B 05/12/22 1 of 1 Item 7.B 05/12/22 7.B.f Packet Pg. 1591 Attachment: Written Comments (4858 : Santa Monica Outdoors Program Extension (15 mins)) SANTA MONICA OUTDOORS TEMPORARY OUTDOOR PROGRAM Extension Request City Council May 11, 2022 7.B.g Packet Pg. 1592 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension SANTA MONICA OUTDOORS PILOT PROGRAM ​TONIGHT'S REQUEST 1) Amend SMMC Chapter 6.40 Santa Monica Outdoors Pilot Program to extend term to September 30, 2022 (TUP operations + fee waivers)​ 2) Adopt a resolution to authorize extension of fee waivers for monthly outdoor license fees, including existing monthly sidewalk dining license fees and outdoor fitness fees in City Parks and the Beach 3) Introduce and Adopt an Emergency IZO amending and extending interim zoning regulations established by Emergency Interim Zoning Ordinance No.2674 (CCS)​ and extended by Emergency IZO Ordinance No. 2678 7.B.g Packet Pg. 1593 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension SANTA MONICA OUTDOORS –TEMPORARY USE PERMIT SANTA MONICA OUTDOORS PILOT PROGRAM ❑Established under City Council Emergency Orders ❑To facilitate these uses prior to the Emergency Order expirations, City Council adopted an ordinance establishing the SM Outdoors Pilot Program (SMMC Chapter 6.40) and a resolution to waive associated fees on June 8, 2021 ❑On December 14, 2021 Council extended the Pilot Program to June 30, 2022 Recommended Action:To extend the SM Pilot Program through September 30, 2022 Staff will return to Council in June 2022 to review options for longer-term parklet program. 7.B.g Packet Pg. 1594 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension IZO Extension of Outdoor Use of Private Property | Extended Through December 31, 2022 ❑Temporary Outdoor Use of Private Property »Outdoor Dining | Retail | Fitness | Personal Services »Surface Parking Lots | Other Open Space Areas ❑Emergency Response & Economic Recovery »Temporarily allow Public Safety Facilities and Emergency Shelters in all Zones »Temporarily allow Drive-Through Facilities (COVID Testing + Vaccination Sites) ❑Continued Economic Recovery »Allow Temporary Uses supportive of Economic Recovery (up to 6 months) »Off-Site Restaurant Alcohol Sales and Retail Alcohol Sales ❑Separate Review Path from the Parklet Program »Staff to return to Council in Fall 2022 (specific Program for Outdoor Use of Private Property) 7.B.g Packet Pg. 1595 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension SIDEWALK DINING –LEVERAGING CITY ASSETS TO SUPPORT LOCAL BUSINESSES 7.B.g Packet Pg. 1596 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension PARKLETS DINING –LEVERAGING CITY ASSETS TO SUPPORT LOCAL BUSINESSES 7.B.g Packet Pg. 1597 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension OUTDOOR DINING ON PRIVATE PROPERTY 7.B.g Packet Pg. 1598 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension MAIN STREET AL FRESCO Photo Credit: Sean Paul Franjet 7.B.g Packet Pg. 1599 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension TEMPORARY FITNESS ZONES + PERMITS 7.B.g Packet Pg. 1600 Attachment: PowerPoint Presentation (4858 : Santa Monica Outdoors Program Extension