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CC 2020-06-23_08j Encroachment Permit TUP Fee Waiver_Outdoor Dining MEMORANDUM TO: CITY COUNCIL FROM: WHITNEY MCDONALD, ACTING DEPUTY CITY MANAGER/ COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO WAIVE APPLICATION FEES FOR ENCROACHMENT PERMITS AND MINOR USE PERMITS-TEMPORARY USE PERMITS SUBMITTED BY RESTAURANTS SEEKING ADDITIONAL OUTDOOR DINING SPACE DURING THE COVID-19 REOPENING PROCESS DATE: JUNE 23, 2020 SUMMARY OF ACTION: Authorization of the Community Development Director to waive application fees for encroachment permits and Minor Use Permits-Temporary Use Permits for restaurants seeking additional outdoor dining space during the COVID-19 reopening process. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The application fee for an encroachment permit is $57 for a minor encroachment, and the application fee for a Minor Use Permit-Temporary Use Permit is $294. Waiver of these fees will result in the loss of revenue to the City that covers the costs associated with processing the applications. RECOMMENDATION: It is recommended the City Council adopt a Resolution authorizing the Community Development Director to waive application fees for encroachment permits and Minor Use Permits-Temporary Use Permits submitted by restaurants seeking additional outdoor dining space during the COVID-19 reopening process. BACKGROUND: Restaurants have suffered during the shelter-at-home orders issued by the State and County of San Luis Obispo in response to the COVID-19 pandemic. Although the State has allowed restaurants to reopen, they are required to ensure adequate physical distancing or protective measures installed between tables. The result is that many restaurants have been forced to substantially reduce the number of tables and seats available for their customers, limiting their operations. Some restaurants wish to expand their dining areas outdoors so that additional tables are available to customers. Item 8.j. - Page 1 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO WAIVE APPLICATION FEES FOR ENCROACHMENT PERMITS AND MINOR USE PERMITS-TEMPORARY USE PERMITS SUBMITTED BY RESTAURANTS SEEKING ADDITIONAL OUTDOOR DINING SPACE DURING THE COVID-19 REOPENING PROCESS JUNE 23, 2020 PAGE 2 ANALYSIS OF ISSUES: Restaurants seeking additional outdoor dining areas that are not already included in the restaurant’s existing land use entitlement will need to obtain a Minor Use Permit- Temporary Use Permit in order to comply with the City’s Development Code. Any proposed use of City right-of-way or other City-owned property, such as a sidewalk, will also require an encroachment permit. The Community Development Department has created a new encroachment permit/Minor Use Permit-Temporary Use Permit application to streamline the application process for restaurants seeking to place tables on sidewalks or other City-owned property. The current application fee for an encroachment permit is $57, while the application fee for a Minor Use Permit-Temporary Use Permit is $294. The City does not have an adopted procedure for fee waiver requests, except for waivers authorized for specific community events pursuant to Resolution No. 3760, adopted July 13, 2004. In order to support local restaurants in their efforts to recover and reopen following the COVID-19 shelter-in-place orders and to comply with the State and local physical distancing and other operational limitations, it is recommended that the City Council authorize the waiver of application fees for encroachment permits and Minor Use Permits- Temporary Use Permits for restaurants seeking permission for additional outdoor dining space. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Approve staff’s recommendation; 2. Do not approve staff’s recommendation; 3. Modify as appropriate and approve staff’s recommendation; or 4. Provide direction to staff. ADVANTAGES: Approval of the application fee waivers will support local restaurants through the COVID- 19 reopening process. DISADVANTAGES: Loss of revenue covering the costs associated with processing the applications. ENVIRONMENTAL REVIEW: No environmental review is required. Item 8.j. - Page 2 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO WAIVE APPLICATION FEES FOR ENCROACHMENT PERMITS AND MINOR USE PERMITS-TEMPORARY USE PERMITS SUBMITTED BY RESTAURANTS SEEKING ADDITIONAL OUTDOOR DINING SPACE DURING THE COVID-19 REOPENING PROCESS JUNE 23, 2020 PAGE 3 PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. At the time of report publication, no comments have been received. Item 8.j. - Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO WAIVE APPLICATION FEES FOR ENCROACHMENT PERMITS AND MINOR USE PERMITS-TEMPORARY USE PERMITS SUBMITTED BY RESTAURANTS SEEKING ADDITIONAL OUTDOOR DINING SPACE DURING THE COVID-19 REOPENING PROCESS WHEREAS, local restaurants have suffered during the shelter-at-home orders issued by the State and County of San Luis Obispo in response to the COVID-19 pandemic, and, although the State has allowed restaurants to reopen, they are required to ensure adequate physical distancing or protective measures installed between tables, resulting in many restaurants being forced to significantly reduce the number of tables and seats available in their existing spaces; and WHEREAS, restaurants seeking additional outdoor dining area not already included in the restaurant’s existing land use entitlement are required to obtain a Minor Use Permit- Temporary Use Permit in order to comply with the City of Arroyo Grande’s Development Code, and any proposed outdoor dining use of City right of way or other City-owned property will also require an encroachment permit; and WHEREAS, the current application fee for an encroachment permit is $57 and the application fee for a Minor Use Permit-Temporary Use Permit is $294; and WHEREAS, the City does not have an adopted procedure for requests for waivers of application fees in this situation; and WHEREAS, the City wishes to support local restaurants in their efforts to recover and reopen following the COVID-19 shelter-in-place orders and to comply with the State and local physical distancing and other operational limitations by facilitating additional outdoor dining space where otherwise appropriate under existing laws and regulations. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Arroyo Grande as follows: 1. The Community Development Director is authorized to waive application fees for encroachment permits and Minor Use Permits-Temporary Use Permits for restaurants seeking additional outdoor dining space during the COVID-10 reopening process. 2. The City Clerk shall certify to the adoption of this Resolution and shall cause a certified copy to be filed in the Office of the City Clerk. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 23rd day of June, 2020. Item 8.j. - Page 4 RESOLUTION NO. PAGE 2 KEITH STORTON, MAYOR PRO TEM ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: __ BILL ROBESON, ACTING CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.j. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.j. - Page 6