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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 ~ =k (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 Subscribe to our eNewsletter !CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe.I 1