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Report regarding a resolution amending the proclamation of a local health emergency (adopted pursuant to Resolution No. 35-2020) to extend the Outdoor Dining Pilot Program and provide related authorizations. (Christopher Espiritu, Senior Planner and Tony Rozzi, Chief Planner)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council approve a resolution amending the proclamation of a local health emergency (adopted pursuant to Resolution No. 35-2020) to extend the Outdoor Dining Pilot Program and provide related authorizations.
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BACKGROUND
On July 8, 2020, the City Council passed Resolution No. 90-2020 amending the proclamation of a local health emergency to create an Outdoor Dining Pilot Program throughout the City, with the intent to provide restaurants with a way to sustain some minimum level of revenue and activity while shelter-in-place regulations prohibit indoor dining at full capacity.
Subsequently, staff developed an expedited, no-cost permit application process for interested businesses to participate in the program (Exhibit A to the accompanying resolution). Staff procured water-filled barriers to accommodate up to 20 businesses and obtained approval from the Parking Place Commission for the waiver of parking fees in support of the Outdoor Dining Pilot Program. In collaboration with the SSF Chamber of Commerce, staff conducted outreach to 30 businesses and assisted applicants through the application process.
Since the approval of the Program, staff has completed review of 12 applications from restaurants located in the Downtown, and 10 locations have been approved for outdoor dining on the public right-of-way; all 10 approved public right-of-way locations began outdoor dining operations shortly thereafter. Additionally, restaurants located on private property have established their own outdoor dining areas on private parking lots with guidance from the City.
Based on feedback from participating restaurants, the Chamber of Commerce, and staff’s observations, the Outdoor Dining Program appears to be successfully performing as intended. Participating downtown restaurants - Ben Tre, Thai Satay, Amoura, Grand Palace, Izanami, Café 382, Andiamo in Banca, Hing Lung, and Antigua - indicate that the outdoor dining program has been vital in helping them to maintain some minimum level of business activity during dire circumstances. In addition, other restaurants outside of Downtown have been inspired to offer outdoor dining, such as Gunther’s, Fort McKinley’s, 47 Hills, and H.L. Peninsula.
For some restaurant operators, the addition of outdoor dining on the public right-of-way has further supplemented operations that were only comprised of pick-up/take-out business, while maintaining conformance with San Mateo County Health Orders and State of California Department of Health Guidance for customers and employees.
The initial pilot program approval by the City Council was set to expire in November 2020. On October 14, 2020, Council approved an extension of the pilot program, with permits expiring in March 2021. For context, San Mateo County, like most counties in the state, entered into a restrictive second shelter-in-place stage in December 2020, where outdoor dining was prohibited. In January 2021, San Mateo County entered the purple tier (and later red tier), which allows outdoor dining and some indoor dining. Businesses, especially restaurants, have recently resumed on-site dining in the last two weeks. Unfortunately, businesses that were approved for the program in the last six months were only able to operate their outdoor dining areas for less than half of that time.
Staff is proposing to amend the Outdoor Dining Pilot Program by extending its duration to align with the Shelter In Place (SIP) restrictions and/or further openings of indoor dining activities when the County can operate at less restrictive tiers. Specifically, staff proposes to have the Program continue to remain in place as long as SIP orders and indoor dining restrictions are in place, and would terminate 60 days after the lifting of SIP orders or when indoor dining fully resumes depending on the County’s operational tiers, whichever occurs earlier. Staff also proposes that the Council provide authority to the City Manager, acting as Director of Emergency Services, for renewing permits and issue extensions for individual businesses to allow them to participate in the Program. To illustrate, this authority would allow the City Manager to renew any permits that may have previously expired. Finally, staff is also proposing to include additional performance measures (such as rules regarding previously approved but unused outdoor space), which are included in Exhibit A to the accompanying resolution.
These proposed amendments to the Outdoor Dining Pilot Program would allow restaurants to continue operating in approved outdoor dining areas for as long as COVID-19 health restrictions remain in place, and until such time as local restaurants are allowed to return to normal business operations, and provide rules and guidance on such operation. In addition, staff is working to amend all conditions of approval and provide the following clarifications to all participants:
• Process for removing underutilized, or neglected outdoor dining areas;
• Clarify City standards for parklet/platform design and construction; and
• Provide guidance for businesses operating on private property.
FISCAL IMPACT
Extending the outdoor dining program would involve the continued loss of approximately 20 metered parking spaces, which in turn would result in minor, short-term loses in City parking revenue of approximately $1,460 per month ($73 per space per month).
CONCLUSION
Staff recommends that the City Council approve an amendment to the proclamation of a local health emergency (adopted pursuant to Resolution No. 35-2020) to extend the Outdoor Dining Pilot Program and provide related authorizations.