Report Prepared by: Frank Quintero, Director of Economic Development
Title
SUBJECT: Adoption of a Resolution Temporarily Supplementing and Modifying Municipal Code Chapter 12.36, Restaurant Encroachment Permits, to Expand Outdoor Seating and Providing Staff Direction on Other Options and the Phasing of Those Options to Expand Outdoor Seating
REPORT IN BRIEF
The proposed Resolution allows for supplemental and modified changes to the City’s Restaurant Encroachment Permit ordinance allowing restaurants and other food and beverage serving establishments to use City right-of-way to expand seating capacity.
RECOMMENDATION
City Council - Adopt a Motion:
A. Adopting Resolution 2020-34, a Resolution of the City Council of the City of Merced, California, supplementing the existing municipal code Chapter 12.36 of the Merced Municipal Code (Restaurant Encroachment Permits) to allow for additional outdoor seating;
B. Providing additional direction to staff on suggested phasing to expand outdoor seating for future City Council adoption and implementation; and,
C. Authorizing the City Manager or the Assistant City to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff and the Council Downtown Subcommittee; or
2. Approve, subject to conditions as specified by the City Council; or
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council; or
5. Defer action until a specified date
AUTHORITY
Charter of the City of Merced, Article IV. City Council Section 405 - Powers vested in the City Council
CITY COUNCIL PRIORITIES
City of Merced FY 2019-2020 Budget, Section 7 - Economic Development, GOALS - A) Facilitate business development and catalysts projects in Merced’s economic centers; and C) Collaborate with partners to create a positive business image and provide exceptional business support.
DISCUSSION
The State of California Department of Public Health published the “COVID-19 Industry Guidance for Dine-In Restaurants” on May 12, 2020 (Attachment 1.) The Guidelines state that restaurant owners prioritize outdoor seating and expand their outdoor seating, with alcoholic offerings, if they comply with local laws and regulations. Given that restaurant owners are required to implement measures to ensure physical distancing of at least six feet between customers and workers, it is anticipated that restaurants may lose much of the facility’s seating capacity.
Several cities are preparing amendments and new measures allowing restaurants to capture a portion of the lost seating capacity through outdoor seating. The idea is to allow for outdoor seating, where appropriate, from curb to property line while maintaining a clear path of travel. To assist local establishments, increase their seating capacity, staff is asking Council to consider adopting the attached Resolution supplementing the existing municipal code Section 12.36 Restaurant Encroachment Permits (Attachment 2.)
Section 12.36 Restaurant Encroachment Permits of the Merced Municipal Code currently contains the provisions for allowing outdoor dining for restaurants wanting to use City right-of-way for tables and seating (Attachment 3.) The existing ordinance is primarily crafted for restaurants and restricts outdoor seating out to 10-feet from the property line.
The key proposed in the supplements and modification to the municipal code to include the following:
• Users: Expand to include restaurants, bars/brewpubs, bakeries, and grocery stores serving food and beverages.
• Seating Area: Curb to property lines, or the City right-of-way from the curb to the building property line. A clear path of travel of 5’ must be maintained for public access. The paver/parkway may also be used under the temporary provisions.
• Smoking: The current provisions allow for the business owner to determine if smoking is permissible. The proposed amendments restrict smoking and vaping.
• Public Property Use Fee: The fee for public property use under the current provision is $150.00. Staff and the Council Subcommittee are proposing a fee of $1.00.
Users will continue to be required to delineate the seating area from the 5-foot clear path of travel, provide insurance, and agree to hold the City harmless.
Alcoholic Beverages: The California Department of Alcoholic Beverage Control issued a Fourth Notice of Regulatory Relief. Under the Fourth Notice, a restaurant may serve alcoholic beverages to customers dining outdoors adjacent to the business. The restaurant must secure a COVID-19 Temporary Catering Authorization prior to serving alcoholic beverages to guests seated outside (Attachment 4). A COVID-19 Temporary Catering Authorization authorizes the on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges on property that is adjacent to the licensed premises, that is under the control of the licensee, and where bona fide meals are being served.
Applications: If the proposed Resolution is adopted, staff will amend the current Restaurant Encroachment Permit application reflecting the changes. Business owners currently possessing an Encroachment Permit will need to re-apply to take advantage of the new provisions for outdoor seating.
Forthcoming Actions: To expand outdoor seating opportunities, staff and the Council Subcommittee are working from a three-phased approach:
1) Expand outdoor seating options immediately by amending the existing Outdoor Restaurant Seating Encroachment Permit process,
2) Consider street closures on particular days and times, and
3) Prepare and introduce an Ordinance Amendment allowing for the installation of Parklets at on-street parking areas.
The proposed supplemental and modified changes to Municipal Code Section 12.36 as outlined in the attached Resolution are temporary. Staff will return with an ordinance to amend this code section, should any of these changes be recommended to remain on a permanent basis.
IMPACT ON CITY RESOURCES
No budget related action is required for adoption of the Resolution.
ATTACHMENTS
1. COVID-19 Industrial Guidance - Restaurant Dine-in
2. Proposed Resolution 2020-34
3. Current Restaurant Encroachment Permit Application
4. COVID-19 Temporary Catering Authorization Application