HomeMy WebLinkAbout061521-08.1 ADMINISTRATIVE STAFF REPORT 8.1 TO: Mayor and Town Council June 15, 2021 SUBJECT: Status of expanded outdoor space for restaurant seating, outdoor personal service and fitness uses BACKGROUND With the onset of the COVID-19 pandemic in early 2020, the State of California and Contra Costa County adopted a variety of public health measures aimed at slowing the spread of COVID. These measures severely limited or prohibited indoor activities for restaurants, retailers and a variety of personal service uses. These restrictions led the state and local governments to relax regulations to allow some of these businesses to operate outdoors. Utilizing existing provisions of the Town’s zoning ordinance, in May 2021, the Town began issuing Temporary Land Use Permits (TLUP) to allow existing businesses to expand outdoors in a manner that met social distancing requirements for COVID-19, as determined by the County Health Services, the State, or Center for Disease Control and Prevention. This included use of private or public property for expansion of outdoor restaurant seating, personal services, and fitness studios. This program was initially developed in consultation with the Danville Area Chamber of Commerce to meet the needs of local restaurants and was later expanded to allow personal service and fitness businesses to operate outdoors as well. By using the Town’s existing zoning ordinance, the TLUPs were structured to facilitate businesses being able to operate at 100% of their pre-pandemic capacities. For example, a restaurant authorized to operate with a total of 40 seats (indoors and outdoors) was permitted by the TLUP to operate with up 40 outdoor seats, in a configuration spread out to accommodate social distancing requirements. Over time, as health orders allowed for resumption of some indoor uses, the permitted indoor restaurant seats counted towards the 100% capacity allowed. By maintaining total seating capacity at 100% (consistent with the pre-pandemic capacity) and keeping the use temporary, businesses were not required to comply with the various regular zoning and operational requirements. In some instances, restaurants that lacked sufficient space to expand on site, were authorized by Town Council action to expand into adjacent public street rights-of-way, creating what are commonly referred to as “Parklets.” Status Update - TLUPs 2 June 15, 2021 To date, the Town has approved 56 TLUPs. These permits have been granted at no cost to the applicants and were envisioned to remain active until businesses were cleared to resume 100% of regular, pre-pandemic occupancy as directed by the State of California and Contra Costa County. These permits have been instrumental in helping these Danville businesses through the pandemic. Throughout this past year, and as health orders have changed, the Town has continued to approve extensions to all TLUPs every 90 days. Approved in April 2021, the most recent extension is valid until August 1, 2021. Subsequent to the April extension, the State announced that effective June 15, 2021, all businesses will be allowed to resume full pre- pandemic operations. Thus, on June 15, restaurants will be allowed to operate indoors at 100% of their pre-pandemic seating levels. On June 3, the Governor issued a letter allowing for local leaders to consider extending use of expanded outdoor seating until December 31, 2021, to facilitate statewide restaurant recovery. The letter cites reduced outdoor transmission for COVID-19 as basis for the position, indicating that continued outdoor operation is in the best interest of public health. The Legislature is also looking at extending the relaxation of alcohol controls which has allowed these expanded outdoor areas to operate. DISCUSSION While the expanded seating allowed by the TLUPs has dramatically supported our local restaurants during the pandemic, the option was envisioned and intentionally structured to be a temporary solution. Implemented quickly, in response to the onset of the pandemic, time was of the essence. As a result, the Town has worked with the businesses to navigate through a series of ongoing challenges that have needed to be mitigated frequently over the past year. Considerable time has been spent resolving a series of issues related to circulation, refuse collection and displacement, enclosure reconfiguration, delivery service, customer access, noise violations, visibility, loss of parking, abatement, etc. For several reasons, the popularity of these temporary expanded outdoor seating areas has grown. This is due in part to the ambience and comfort level for some businesses and patrons, and a desire on the part of the community to resume some level of pre-pandemic normalcy, especially over the past few months. Restaurant owners and patrons have expressed interest in making these temporary dining areas permanent. Faced with this issue as the state reopens, many communities are considering different approaches best suited for their needs. Should the Town Council wish to see the continuation of expanded outdoor dining, formal Council action would be required. With the June 15 reopening of the California economy, the original regulatory basis for the TLUPs (allowing businesses to continue to operate at up to 100% of pre-pandemic capacity) ceases to exist. Status Update - TLUPs 3 June 15, 2021 Given that the existing TLUPs were extended through August 1, businesses have relied upon that date, and consistent with the TLUP extensions, businesses should be permitted to operate as called for under the permits through August 1 or shortly thereafter. This would allow for businesses to gradually transition back to normal operations. Should Town Council determine that the temporary expansion of these TLUPs should occur beyond August 24, 2021, and terminate by no later than December 31, the following option may be considered: • Consider an ordinance amendment to allow for the continuation of outdoor expanded TLUPs to a date specified up to December 31, as permitted by the State of California that aligns with the needs for Danville. The Town Council would specify a date that provides additional time for businesses to recover and patrons to dine outdoors, potentially lowering the transmission of COVID-19 transitioning into the fall. The ordinance would include specific operational criteria to address and mitigate ongoing operational challenges (previously cited) and include more direct ability to cite or revoke a TLUP based upon non-compliance. This option would include setting a clear timeline for businesses with active TLUPs and provide adequate time for the businesses to plan accordingly for removal. It should be noted that this option does not include TLUPs authorized for fitness and personal service, as the August 1, 2021, expiration date of those permits would remain. Should Town Council wish to see more permanent zoning changes, it would be necessary to address the following issues: • Ordinance amendments to allow for increased use and to address design issues of permanent seating and/or parklets. • Long term solutions for issues including traffic circulation for vehicles, bicycles, business deliveries and refuse collection. • Collection of Downtown Parking-in-lieu fees that have not been charged for TLUPS but would be required under the existing ordinance. • Building code, drainage and ADA standards. The code standards for the initial, temporary uses are not the same as those for more permanent uses and structures. • Impacts on special events that involve use of the public right-of-way. Hartz Avenue has historically been home to the Town’s most popular and well attended special events. Because none of these events were held during the pandemic, this issue has not had to be addressed. It may be possible to consider some of these issues as a part of a new Downtown Master Plan, which the Town Council will be funding as part of the Town’s 2021/22 Capital Improvement Program (CIP). This process would include looking at all opportunities to Status Update - TLUPs 4 June 15, 2021 reimagine the downtown, providing guidelines and direction for future development, and evaluating all types of placemaking amenities such as lighting, benches, pocket parks, parking, outdoor dining, etc. Further, a comprehensive approach to evaluate the future of expanded parklet dining would provide an opportunity to establish criteria and mitigation measures to ensure safety for the community. Both short-term and long-term recommendations could be conducted independently or concurrently should the Town Council favor both options. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. In addition, notice of the meeting has been provided to businesses that have secured TLUPs. FISCAL IMPACT None. RECOMMENDATION After receiving public input on future outdoor seating, it is recommended that Town Council provide direction to Town staff on whether staff should: 1. Administratively allow for a short extension of the existing August 1 expiration through no later than August 24, 2021. 2. Proceed with an ordinance amendment to allow TLUPs to remain to a date specific up to December 31, 2021. 3. Consider a longer-term plan to allow for expanded outdoor uses as part of the upcoming Downtown Master Plan. Prepared by: Jill Bergman Economic Development Manager Reviewed by: Joseph A. Calabrigo Town Manager