HomeMy WebLinkAbout2020-09-01; City Council; ; Empower the Director of Emergency Services to Temporarily Suspend the Collection of Fees for Sidewalk Café, Outdoor Display, and Curb Café Permits to Mitigate the EconomiMeeting Date Sept. 1, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Laura Rocha, Deputy City Manager
laura.rocha@carlsbadca.gov, 760-602-2415
David Graham, Chief Innovation Officer
david.graham@carlsbadca.gov, 760-434-5992
Subject Empower the Director of Emergency Services to Temporarily Suspend the
Collection of Fees for Sidewalk Café, Outdoor Display, and Curb Café
Permits to Mitigate the Economic Effects of the COVID-19 Pandemic
State of Emergency on Local Businesses
Recommended Action
1.Adopt a resolution that includes the following actions:
a.Empower the director of emergency services to suspend the collection of fees
for sidewalk café, outdoor display, and curb café permits until February 28, 2021,
or for the duration of the local COVID-19 pandemic emergency, whichever is
later
b.Empower the director of emergency services to suspend the collection of fees
for sidewalk café, outdoor display, and curb café-related encroachment
agreements until February 28, 2021, or for the duration of the local COVID-19
pandemic emergency, whichever is later
c.Authorize the director of emergency services to reimburse fees that were paid
for sidewalk café, outdoor display, or curb café permits that were issued from
March 1, 2020, to the effective date of this resolution using Economic Recovery
and Revitalization Initiative funds set aside for contingency or future City Council
decisions
d.Authorize the director of emergency services to reimburse fees that were paid
for sidewalk café, outdoor display, or curb café-related encroachment
agreements that were issued from March 1, 2020, to the effective date of this
resolution using Economic Recovery and Revitalization Initiative funds set aside
for contingency or future City Council decisions
e.Authorize the deputy city manager of administrative services to offset revenue
lost from the suspension of fee collection associated with this action from the
Economic Recovery and Revitalization Initiative funds set aside for contingency
or future City Council decisions
Sept. 1, 2020 Item #8 Page 1 of 7
f. Authorize the director of emergency services to take any further action
necessary and appropriate to carry out the purpose and intent of this resolution
Executive Summary
The city has a process to approve the use of public right-of-way for business operations that
include sidewalk café, outdoor display, and curb café permits. The City Council has temporarily
modified certain standards and land use rules to provide more flexibility in approving these
permits during the pandemic. The city has since issued permits to more than 50 businesses
allowing them to temporarily move their operations outdoors, onto private property, public
sidewalks and on-street public parking spaces so that they can comply with the public health
orders issued to fight COVID-19.
The City Council passed a minute motion on August 18, 2020, directing staff to present the
council with this agenda item, which would enact a fee holiday for sidewalk café, outdoor
display, and curb café permits.
The proposed resolution would empower the city manager, as the city’s director of emergency
services, to suspend the fees on temporary and longer-term sidewalk café, outdoor display, and
curb café permits. It would also allow the director to refund any outdoor activation permit fees
that have been paid since March 1, 2020.
Discussion
The state and county public health orders issued to slow the spread of COVID-19 have closed
indoor operations or reduced operable space for many businesses. In response, city staff have
been working with local businesses to help them move their operations outdoors. The city has
also temporarily suspended or modified certain land use rules to allow for a greater number
and more varied types of businesses to operate on public sidewalks and in on-street public
parking spaces.
The city has long allowed for the use of public sidewalks and public on-street parking through
sidewalk café, outdoor display, and curb café permits. When the pandemic’s public health
orders required the closure of indoor operations, businesses were able to use these permits to
quickly activate outdoor spaces on public sidewalks and in on-street parking spots. Some
businesses were also granted no-cost permits allowing them to use private property, such as
their parking spaces, to add to their existing outdoor areas.
Outdoor commercial activation of the public right-of-way can contribute to a vibrant walkable
experience in the city by allowing certain business operations to be appropriately conducted
outdoors while still providing adequate space for pedestrians. Dining and shopping outdoors
can enhance the vitality of the Village and other commercial areas throughout the city.
The fees associated with the temporary and longer-term permits to activate public right-of-way
for business operations are as follows:
Type of permit Fees
Private property activation $0
Sidewalk café or outdoor display $381, one time
Sept. 1, 2020 Item #8 Page 2 of 7
Parking stall used for temporary or long-term
curb café
$381, one time + $1,200
per parking stall per year
Encroachment agreement processing for activation
improvements affixed to the public sidewalk $369, one time
These fees were set long before the pandemic’s health restrictions were imposed on businesses
across the state. A statewide public health order was issued July 13, 2020, closing bars, pubs,
brewpubs, and indoor operations of dine-in restaurants, wineries and tasting rooms, family
entertainment centers, movie theaters and certain other attractions. The orders allow these
businesses to move their operations outdoors, which studies show reduces the risk of disease
transmission.
It is not known when indoor operations at businesses that have been closed by the statewide
public health order will be allowed to reopen. In his news conference on August 19, 2020,
Governor Gavin Newsom announced that the state was working with county health officers on
a plan for reopening businesses. That plan will include new criteria and new conditions. The
approach currently under consideration would likely involve reopening different sectors in
stages, in a phased approach intended to give epidemiologists the time they need to better
understand whether a particular type of business or activity causes COVID-19 case rates to
increase.
The city has been trying to help businesses weather these uncertain times by reducing barriers
to business operations during the pandemic. Suspending the collection of fees businesses have
been required to pay to move operations outdoor is in keeping with these ongoing efforts.
The proposed resolution would reimburse applicants for the fees paid for sidewalk café,
outdoor display, and curb café permits from March 1, 2020, to the effective date of the
resolution associated with this action.
On August 24, 2020 the Ad Hoc City Council Economic Revitalization Subcommittee considered
the proposed temporary suspension of permit fees outlined by this item and recommended
approval.
Suspending these fees will provide economic relief to businesses that have had indoor
operations restricted due to the public health orders while providing more outdoor space for
business activities, which reduces the risk of disease transmission and contributes to the
longer-term activation of public right-of-way to foster dynamically walkable commercial areas.
Fiscal Analysis
The city has allocated $5 million to COVID-19 related economic response, recovery and
revitalization. Fee reimbursement and the revenue offset from the suspension of fee collection
will be funded from the Economic Recovery and Revitalization Initiative funds set aside for
contingency or future city council actions. There is $225,000 remaining for contingency or
future city council actions.
It is difficult to estimate how many sidewalk café, outdoor display, and curb café permits may
be issued given the uncertain nature of the COVID-19 health emergency. To estimate the
Sept. 1, 2020 Item #8 Page 3 of 7
potential fiscal impact of this measure, staff evaluated permit applications that are in process,
engaged with businesses that expressed interest in the temporary right-of-way permits and
conducted a citywide visual assessment of business areas. An analysis of permitting activity
shows that there is significantly more use of private property than the public right-of-way by
businesses moving operations outdoors. Fourteen percent of temporary activation permits are
on public sidewalks and public on-street parking.
The city collected between $7,500 and $8,000 in fees for outdoor activation permits issued
from March 1 to Aug. 25, 2020. Staff will present updated fees paid to date information to the
City Council during the council meeting.
Given the information currently available, staff estimates that suspending the collection of fees
authorized by this action could result in an approximate loss of $15,000 to $25,000 over the
next six months. This would be offset by the Economic Recovery and Revitalization Initiative
funds set aside for contingency or future City Council actions. Future public health orders, the
length of time the COVID-19 pandemic persists, and the decisions of local businesses will either
increase or decrease the loss of revenue that would need to be covered.
Next Steps
City staff will contact and reimburse fees paid for permits issued from March 1, 2020, to the
effective date of the resolution. City staff will continue outreach and engagement with
businesses to support permitting outdoor operations of businesses on private and public right-
of-way. Staff will continue working with businesses that have not been granted permits but are
conducting business operations on outdoor private property areas or in to public right-of-way
to educate their managers on the requirements and help bring the businesses into compliance.
Environmental Evaluation (CEQA)
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 in that it has no potential to
cause either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment and therefore does not require environmental review.
Public Notification
Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1. Resolution
Sept. 1, 2020 Item #8 Page 4 of 7
Sept. 1, 2020 Item #8 Page 5 of 7
RESOLUTION NO. 2020-181
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, EMPOWERING THE DIRECTOR OF EMERGENCY SERVICES TO
TEMPORARILY SUSPEND THE COLLECTION OF FEES FOR SIDEWALK CAFE,
OUTDOOR DISPLAY, AND CURB CAFE PERMITS
WHEREAS, on February 14, 2020, the San Diego County Health Officer declared a Local Health
Emergency as a result of the spread of COVID-19; and
WHEREAS, on March 4, 2020, Governor Newsom proclaimed a statewide state of emergency as
a result of the spread of COVID-19; and
WHEREAS, on March 16, 2020, the Director of Emergency Services proclaimed a local state of
emergency as a result of the COVID-19 pandemic, which the City Council subsequently ratified and
extended; and
WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33-20 directing
individuals living in California to comply with a State Public Health Officer order to stay at home except
as needed to facilitate authorized, necessary activities or to maintain the continuity of operations at
critical infrastructure sectors; and
WHEREAS, on May 4, 2020, Governor Newsom issued Executive Order N-60-20 allowing non-
essential businesses to reopen in four stages in compliance with criteria set by the State Public Health
Officer and based on certain public health criteria being met on a county-by-county basis; and
WHEREAS, on June 19, 2020, dine-in restaurants, alcohol-serving businesses offering dine-in
meals, personal care services businesses and other businesses in the County of San Diego were
permitted to reopen subject to compliance with state issued guidance; and
WHEREAS, on July 13, 2020. a statewide public health officer order was issued closing bars,
pubs, brewpubs, and closing indoor operations of dine-in restaurants, wineries, tasting rooms, family
entertainment centers, movie theaters, zoos, museums, and cardrooms; and
WHEREAS, the July 13, 2020, statewide public health officer orders states that the rationale for
moving activities outdoors to reduce risk is anchored in the science of disease transmission and recent
studies show that transmission is greater in indoor settings due to the release of infectious particles
into the air when someone speaks, coughs, sneezes, or sings, which is exacerbated in indoor spaces
particularly when lacking appropriate ventilation; and
Sept. 1, 2020 Item #8 Page 6 of 7
WHEREAS, the State of California has issued industry guidance for businesses that are allowed
to reopen that require modification to business operations which has a direct cost and may have an
impact on the space in which businesses may operate thus impacting revenue; and
WHEREAS, the impact of COVID-19 on businesses and the workforce is significant with the State
of California unemployment rate in July standing at 13.3%, which is higher than the 12.3% it was during
the height of the Great Recession (March, October, and November 2010); and
WHEREAS, the City of Carlsbad unemployment rate in June was 11% compared to a 2019
average of 2.9%; and
WHEREAS, the City of Carlsbad conducted a survey of businesses impacted by COVID-19 which
ended in July and found that seventy-two percent of companies indicated the need for further financial
assistance to maintain operations over the next six months; and
WHEREAS, 78% of businesses surveyed indicated that they experienced a revenue decrease of
more than 25% due to COVID-19; and
WHEREAS, it is in the public interest to take steps to ensure local businesses remain
economically viable during the COVID-19 pandemic state of emergency; and
WHEREAS, there is a public benefit to providing economic relief to businesses impacted by the
COVID-19 health emergency, so they may continue providing jobs and tax revenue to the City of
Carlsbad to fund public services; and
WHEREAS, there is a public benefit to permitting sidewalk cafe, outdoor display, and curb cafe
operations for the enjoyment of patrons and to assist businesses in generating revenue; and
WHEREAS, there is a public benefit to expanding outdoor business operations to reduce the risk
of disease transmission which according to the California Department of Public Health is exacerbated
in indoor spaces particularly when lacking appropriate ventilation; and
WHEREAS, adopting this resolution is necessary and appropriate to mitigate the immediate
threats to the public health, safety, and welfare of residents and local businesses from the significant
economic impacts of the COVID-19 pandemic by providing economic relief and providing resources to
remain open in compliance with the public health orders.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
Sept. 1, 2020 Item #8 Page 7 of 7
2. That the director of emergency services is empowered to suspend the collection of
fees for the issuance of sidewalk cafe, outdoor display, and curb cafe permits until
February 28, 2021, or for the duration of the local COVID-19 pandemic emergency,
whichever is later.
3. That the director of emergency services is empowered to suspend the collection of
fees for the issuance of sidewalk cafe, outdoor display, and curb cafe related
encroachment agreements until February 28, 2021, or for the duration of the local
COVID-19 pandemic emergency, whichever is later.
4. That the director of emergency services is authorized to reimburse fees that were paid
for sidewalk cafe, outdoor display, or curb cafe permits that were issued from
March 1, 2020, until the effective date of this resolution funded by the Economic
Recovery and Revitalization Initiative monies set aside for contingency or future City
Council decisions.
5. That the director of emergency services is authorized to reimburse fees that were paid
for encroachment agreements related to sidewalk cafe, outdoor display, or curb cafe
permits issued from March 1, 2020, until the effective date of this resolution funded
by the Economic Recovery and Revitalization Initiative monies set aside for
contingency or future City Council decisions.
6. That the deputy city manager, administrative services is authorized to offset revenue
lost from the suspension of fee collection associated with this action from the
Economic Recovery and Revitalization Initiative monies set aside for contingency or
future city council actions.
7. That the director of emergency services may take any further action necessary and
appropriate to carry out the purpose and intent of this resolution.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 1st day of September, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
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(SEAL)
Mia De Marzo
Subject: FW: Agenda Item 8 -Suspension of Fee Collection
From: Christine Davis <ch ri s@carlsbad-vil lage.com>
Sent: Tuesday, September 1, 2020 1:05 PM
To: City Clerk <Clerk@carlsbadca.gov>
All Receive -Agenda Item # .B.
For the lnformitien ef the:
' CITY COUNCIL
~ateCl I l}'ZtDcA ~cc )=:
CM ~ACM 'lcocM (3) j9
Cc: David Graham <David.Graham@carlsbadca.gov>; Matt Sanford <Matt.Sanford@carlsbadca.gov>
Subject: Agenda Item 8 -Suspension of Fee Collection
Dear Mayor and City Council Members:
I am writing in regards to Agenda Item #8 -the temporary suspension of fee collections for sidewalk cafes, outdoor displays, and
curb cafe permits.
As the council, city staff, and the residents of Carlsbad know, the small businesses in Carlsbad Village are still struggling
financially and are still recreating themselves and the way they do business. Their resiliency has been nothing short of
inspirational, but there is still much work to be done.
The health pandemic continues to push our operations outdoors for safety reasons. Therefore, being able to utilize the
sidewalks, and other public right of way areas, is very helpful until which time indoor operations can resume. To that end, the
Carlsbad Village Association would like to ask that council adopt the resolution to temporarily suspend fee collections for these
types of outdoor activations to further help in the recovery efforts of our small business community.
CVA has been working with city staff to help with permit compliance, rules and regulations, and will continue to do so to help
make this financial program effective for all parties involved.
Thank you again for all that you are doing to support the ongoing recovery efforts of Carlsbad Village businesses. CVA is here to
assist in any way possible.
Sincerely,
CHRISTINE DAVIS I Executive Director
Carlsbad Village Association
p: 760.644.2121
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