City of Hermosa Beach - File #: REPORT 23-0198

File #:

REPORT 23-0198 Version: 1

Name:

Type:

Action Item

Status:

Municipal Matter

File created:

3/21/2023

In control:

City Council

On agenda:

3/28/2023

Final action:

Title:

PROVIDE DIRECTION TO CITY STAFF REGARDING A DRAFT ORDINANCE AMENDING VARIOUS SECTIONS OF CHAPTER 12.16 OF THE HERMOSA BEACH MUNICIPAL CODE ESTABLISHING A PERMANENT OUTDOOR DINING AND RETAIL PROGRAM (Environmental Program Manager Doug Krauss)

Attachments:

Staff Report Text

Honorable Mayor and Members of the Hermosa Beach City Council

Regular Meeting of March 28, 2023

Title

PROVIDE DIRECTION TO CITY STAFF REGARDING A DRAFT ORDINANCE AMENDING VARIOUS SECTIONS OF CHAPTER 12.16 OF THE HERMOSA BEACH MUNICIPAL CODE ESTABLISHING A PERMANENT OUTDOOR DINING AND RETAIL PROGRAM

(Environmental Program Manager Doug Krauss)

Body

Recommended Action:

Recommendation

Staff recommends City Council:

1. Consider the draft ordinance amending various sections of Chapter 12.16 of the Hermosa Beach Municipal Code establishing a permanent outdoor dining program (Attachment 1); and

2. Provide direction on program elements to inform the finalization of the Ordinance to be brought back for first reading at the April 25, 2023 Council Meeting.

Body

Executive Summary:

At its December 14, 2021 meeting, City Council directed staff to develop a permanent version of the temporary outdoor dining, outdoor retail and downtown lane reconfiguration programs that were created in response to the COVID-19 pandemic. Council subsequently extended the temporary program through May 1, 2023 and directed staff to develop the elements of a permanent program to Council before that date.

City staff and the City Attorney have identified the necessary municipal code changes to implement a permanent program and seek City Council’s input on key elements to be able to return with a final version for first reading at the April 25, 2023 Council meeting, along with other materials necessary for establishing the permanent outdoor dining program.

Background:

The City has long supported and encouraged outdoor dining on private and public property to supplement indoor operations. With the onset of the pandemic and related health orders, businesses were limited to conducting business outdoors. Recognizing the hardship, City Council approved a program to allow expanded outdoor dining and other commercial activity. The City also suspended zoning and parking requirements to allow outdoor dining on private property and established a temporary encroachment permit program to allow encroachments into sidewalks, public streets, and Pier Plaza. Both the private property programs and encroachment program (together, the “Outdoor Permit Program”) include a basic set of guidelines pertaining to hours of operation, permitted uses, and maintenance.

The City issued over 60 permits during the term of the Outdoor Permit Program in a variety of commercial locations. Initially, City Council allowed these uses without consideration of any encroachment area rents or reimbursement of lost parking meter revenue. In June 2021, Council approved the extension of the pilot program through December 31, 2021, and authorized implementation of a reapplication process for outdoor dining areas that included, among other things, renewal of permissions from neighboring businesses, requirement of deposits or surety bonds to pay for removal of the decks should the City need to do so, and other operational measures meant to limit any negative impacts of these operations.

At its December 14, 2021 meeting, Council approved an extension of the programs through May 31, 2022. At its January 25, 2022 meeting, Council discussed implementing new fees for the temporary outdoor dining encroachments and approved a fee of $1.50 per square foot per month to begin March 1, 2022. This fee would have also been applicable to temporary outdoor retail encroachments should there have been any.

Council subsequently extended the program in both May and November of 2022 with a final extension to May 1, 2023, and directed staff to bring elements of a permanent program for consideration.

Additionally, at its November 3, 2022 meeting, Council provided feedback on the items below to help shape the details of the permanent outdoor dining program and, simultaneously, finalize the project description for California Environmental Quality Act (CEQA) purposes:

1. Permanent outdoor dining will only be allowed in C1, C2, and SPA-11 commercial zoning areas;

2. Permanent outdoor dining will only be allowed along roads posted 25 miles per hour or less;

3. No additional lane reconfigurations are required and the existing changes made in conjunction with the temporary program would remain;

4. There would be a maximum displacement of 80 on-street parking spaces for the permanent dining areas with a maximum total area of approximately 9,500 square feet of dining deck area;

5. The outdoor dining would only be allowed in areas where the new use does not obstruct access to public utilities and infrastructure for emergency or maintenance purposes;

6. All dining areas would be in an area where all public services and facilities are available to allow maximum development permissible in the General Plan;

7. The area in which individual dining areas would be located is not environmentally sensitive; and

8. No individual dining area that significantly impacts an historical resource would be permitted.

Items 5-8 listed above pertain to specific CEQA considerations related to location of specific outdoor dining areas that will be included in the final program details.

Lane Reconfiguration

At the May 12, 2020 City Council meeting, City staff presented an item describing a concept to repurpose sections of public right-of-way to improve multimodal traffic safety and expand physical distancing options for the public and businesses per Los Angeles County Department of Public Health Officer Orders (HOOs) related to the COVID-19 pandemic. The City Council moved quickly to accommodate these programs. Staff developed guidelines based on information gathered from existing programs in other cities and through a review of the City’s existing policies and regulations.

City Council directed staff to work with the Economic Development Committee (EDC) to explore aspects of the program that could directly benefit local businesses. At meetings in August and September 2020, Council directed staff to move forward with designs of lane reconfiguration concepts for both Hermosa Avenue and Pier Avenue. These concepts included removing one through vehicle lane in each direction, adding a bike lane, installing new on-street ADA accessible parking spots, and adding associated signage and pavement markings. Work began in early January 2021 and was completed by January 16, 2021. At its July 13, 2021 meeting, Council approved a resolution extending the Downtown Lane Reconfiguration Program through December 31, 2021. At its May 24, 2022 meeting, Council approved an extension of both programs through January 1, 2023 and, in November 2022, extended the programs again until May 1, 2023.

Past Council Actions

Meeting Date	Description
June 9, 2020	Approved Ordinance 20-1410U allowing temporary permit program for outdoor dining in response to pandemic.
July 14, 2020	Directed staff to proceed with development of lane closure plans.
June 22, 2021	Approved extension of the outdoor permit program through December 31, 2021.
July 13, 2021	Approved Resolution authorizing extension of lane reconfigurations.
October 26, 2021	Approved development and implementation of permanent versions of these programs.
December 14, 2021	Approved development of permanent programs, and extension of temporary programs through May 2022
January 25, 2022	Discussion and approval of new fees for temporary encroachments
February 8, 2022	Approved reinstatement of existing fees for permanent encroachment areas
May 24, 2022	Approved extension of programs through January 2023
June 14, 2022	Approved additional refinements to the outdoor dining programs
November 3, 2022	Approved extension of temporary programs through May 1, 2023
January 24, 2023	Consideration market rate appraisal, temporary rooftop dining, and changes to Pier Plaza temporary encroachments

Discussion:

Due to the complexity of the proposed permanent outdoor dining program, staff and the City Attorney ask Council’s consideration and direction regarding a draft of the ordinance that would establish the permanent program (Attachment 1). Council’s direction will more efficiently guide staff and focus their efforts as they continue to craft the final program elements to bring to Council in April.

This draft ordinance amends Chapter 12.16 of the Hermosa Beach Municipal Code, which is the City’s existing ordinance on encroachments in the public rights-of-way and Pier Plaza. The Public Works Department administered the existing encroachment program, which was, in effect, the governing encroachments in the City prior to the COVID-19 pandemic.

Staff recommends creating a single program to regulate encroachments on Pier Plaza that includes encroachments that were approved before the pandemic. A single program would be easier for staff to implement and easier for the public to understand. These modifications propose outdoor dining encroachments that would be allowed in certain public areas (Pier Plaza and the public rights-of-way such as sidewalks and parking spaces) and that retail encroachments would be allowed only on Pier Plaza. This would be accomplished via an annual encroachment permit subject to required findings by the City Manager or designee that must be renewed yearly. Each possible type of encroachment (i.e., Pier Plaza, dining deck in a parking space, areas on the sidewalk) has its own operational standards and the City Manager would have the ability to promulgate regulations furthering the intent of the ordinance without contradicting it.

Additionally, these encroachment permits are not vested land use rights such as a Conditional Use Permit (CUP) or similar permit; rather, because the City is granting the use of public space for this private commercial activity, the City always retains the ability to revoke the permit without cause.

Specifically, staff seeks Council’s direction on the following items and any other items the Council deems pertinent:

• Pier Plaza Encroachments. At its January 24, 2023 meeting, Council discussed options for the temporary encroachments allowed on Pier Plaza during the COVID-19 pandemic. Pier Plaza businesses have benefitted from the use of the extra encroachment areas, which allowed the businesses to expand their existing 13 feet of permanent encroachment area by an additional 12 feet into Pier Plaza. Businesses outside of Pier Plaza have also benefitted from the opportunity to utilize on-street dining decks, sidewalk areas, and private property dining areas. To address the desired usage of public right-of-way currently occupied by these Pier Plaza and non-Plaza businesses, staff recommends Council consider three options for these encroachments as it considers permanent changes to outdoor dining:

o Suspend use of the additional temporary encroachment areas on Pier Plaza. This would allow some of this iconic community area, currently being used by private businesses, to be enjoyed again for passive use by members of the community and the general public. Council may also consider suspending all temporary right-of-way encroachments, excepting on-street dining deck areas.

o Limit the size and configuration of these temporary encroachment areas. In an attempt to address the sentiments shared during Council’s discussion at the January 24, 2023 meeting and those of businesses on and off Pier Plaza, staff offers an option utilizing a fixed maximum size for the permanent encroachments as well as a restriction that the encroachments be located only directly in front of their own frontage. This would balance some of the disparities in size between the various encroachments and would more closely align with the sizes of the on-street dining decks. It would also help lead to more coherent and orderly encroachments in the right-of-way, especially on Pier Plaza.

City staff recommends limiting the size of a temporary encroachment area to 500 square feet. This aligns with the average size of current on-street dining decks and Pier Plaza temporary encroachments, which is also about 500 square feet.

The range of encroachment area sizes on Pier Plaza currently spans from 120 square feet to 1095 square feet, and there are currently four businesses on the Plaza with temporary encroachment areas larger than 500 square feet. There is one off-Plaza business with a temporary encroachment over 500 square feet. Thus, a maximum of 500 square feet would affect 5 of the 13 businesses that currently operate temporary off-street public right-of-way encroachments and would result in the elimination of the 2 encroachments that expand into other properties’ frontages. It would also allow the continued use of Loreto Plaza but at less than half the size of the current dining area located there. This maximum would not apply to on-street dining decks that are proposed to be limited in area based on maximum parking spaces occupied, as described in the draft Ordinance.

o Leave the encroachments as they are and allow them to become permanent in their current configurations, but subject to the operational and permitting standards of the ordinance.

The draft ordinance only addresses public right-of-way encroachments. The rooftop dining decks on Pier Plaza discussed by Council at the January 24, 2023 meeting and other dining areas allowed on private property would need to be addressed separately and would require a modification to Title 17 of the zoning code and Planning Commission review and recommendation. Chapter 12.16 is only geared toward public areas-not private property-and thus would not require a change to the zoning title.

• Hours of Operation. Currently, all temporary outdoor encroachments on the public right-of-way are required to cease operation and vacate by 11 p.m. Staff seeks Council direction on the hours of operation for a permanent program. Currently, a temporary encroachment area is required to close by 11 p.m., but the adjacent permanent encroachment areas, such as those on Pier Plaza, could remain open for operation until a later hour, based on an existing encroachment permit. Staff believes that establishing a uniform ending hour for all encroachments on Pier Plaza may be worthwhile to improve consistency and make enforcement more efficient. Another potential feature to consider is to base the size of Pier Plaza encroachments on the hours of operation of the applicant. That is, only those businesses that close at a certain hour would be allowed an increase in the size of an allowable encroachment. For businesses that currently close outside this certain hour, the additional encroachment area allowance could be an option should the business voluntarily reduce its hours via a CUP amendment. Currently, of the seventeen dining establishments on Pier Plaza, six are late-night businesses that this option could impact. Rules on hours of operation could be applied uniformly or individually to the three encroachment areas of: Pier Plaza, off Pier Plaza, and on-street dining decks.

• Serving of alcohol. Staff seeks Council’s direction on allowing alcohol to continue to be served in the encroachment areas. Currently, businesses are required to get approval for serving alcohol on these temporary encroachments through Alcohol Beverage Control (ABC). These temporary allowances are set to expire in early 2024, per Assembly Bill 61. The City could establish its own guidelines and require proof of ABC approval for any businesses wishing to serve alcohol in these encroachment areas.

• Outdoor Music. Outdoor music in the public right-of-way was permitted by emergency order in April 2021 to enrich the outdoor dining experience during the COVID-19 pandemic (Attachment 2). Staff seeks Council’s direction on including a permanent allowance for outdoor music in conjunction with the outdoor dining program. Staff seeks direction as to whether music should be allowed outdoors and whether it should be allowed at all commercial establishments or only those with outdoor dining. The allowance for outdoor music could be codified with specific guidelines developed separately to match the City’s noise ordinance and consequent enforcement. Should Council wish to modify or increase the availability of indoor music, this would come back separately because it would potentially involve zoning and other Community Development concerns related to private property.

• Lane Reconfigurations. Additionally, staff seeks Council’s direction regarding the permanence of the downtown lane reconfigurations. Although this matter is technically separate from the outdoor dining program and will be brought to Council separately for consideration, the two programs are intimately connected and were analyzed for the permanent outdoor dining program concurrently in regard to their environmental concerns under CEQA. The current on-street outdoor dining decks are made effective and desirable largely due the presence of the lane reconfigurations. The bike lane not only provides a valuable option for multi-modal transportation but serves as a buffer zone between the dining decks and vehicular traffic. This improves both safety and comfort for dining patrons. It also provides extra space for the decks to expand and allows more efficient and spacious outdoor dining. If the bike lane was removed, the decks would have to reduce their depth by three feet to ensure a safe buffer between the deck wall and vehicles. Although many decks were originally built before the lane reconfiguration, the City’s traffic engineer strongly recommends retaining the buffer zone to improve both the safety of the dining decks and passing vehicles. Returning to two lanes of travel would result in decks that are in most cases too shallow to be feasible for adequate seating. For example, a typical on-street deck located in a parallel parking spot is eight feet deep, including the deck barrier wall, which leaves six and a half feet of usable depth. If these were reduced by three feet to accommodate a buffer zone due to the restoration of the second drive lane, the resulting deck would be three and a half feet deep which is not sufficient for a full-size table and chairs. Additionally, should a deck operator choose, they could expand their new permanent decks further into the right of way up to two feet from the right edge of the bike lane.

In addition, traffic counts performed each summer since 2020 have shown that the effect of the lane reconfigurations on traffic has been negligible. Although a 32 percent increase in overall vehicular volume in the downtown area was observed between summers 2021 and 2022, a five percent decrease in speeds was also measured along with increases of 33 percent and 26 percent in walking and biking activity, respectively. A more elaborate discussion of the project’s effect on traffic and transportation patterns will be brought to Council at the April 25, 2023 meeting.

Other Program Elements and Next Steps

A discussion of proposed fees for all affected encroachment areas will be brought to Council at the April 25, 2023 meeting. Materials related to the environmental review of the proposed permanent outdoor dining program, guidelines for dining areas, and proposed encroachment fees are in progress and will also be brought to Council on April 25, 2023, along with the final draft of the ordinance. Staff continues to craft these elements and gather feedback from relevant businesses and stakeholders to ensure a thoughtful proposal for Council’s consideration. Should the permanent program be approved by Council, staff will then engage Coastal Commission to apply for the necessary Coastal Development Permit.

Finally, staff seeks the Council’s direction on whether, if the permanent program is not in place by May 1, 2023, should another extension be considered to allow existing businesses to continue to operate until the permanent program is completely finalized.

General Plan Consistency:

The proposed program options match the model of “living streets”, also known as “complete streets”, which supports a key guiding principle of the General Plan Vision, of fostering a vibrant local economy. A living street combines safety and livability while supporting ground floor and outdoor economic activities. This centers on designing streets that can be safely shared by both vehicular and non-vehicular traffic. A living street should also contribute to an engaging public realm and a vibrant local economy.

Relevant Goals and Policies are listed below:

Governance Element

Goal 6. A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism.

Policies:

• 6.4 Business support. Support the Chamber of Commerce, retailers, tourist service businesses, artists, and other agencies to develop an aggressive marketing strategy with implementation procedures.

• 6.6 Pop-up shops. Develop plans and programs for underutilized spaces, such as vacant buildings, utility corridors, parkways, etc., for temporary retail, restaurant, and community promoting uses.

Mobility Element

Goal 1. Complete Streets (Living Streets) that serve the diverse functions of mobility, commerce, recreation, and community engagement for all users whether they travel by walking, bicycling, transit, or driving.

Policy:

• 1.1 Consider all modes. Require the planning, design, and construction of all new and existing transportation projects to consider the needs of all modes of travel to create safe, livable and inviting environments for all users of the system.

Goal 7. A transportation system that results in zero transportation-related fatalities and which minimizes injuries.

Policy:

• 7.1 Safe public rights-of-way. Encourage that all public rights-of-way are for all users at all times of day where users of all ages and ability feel comfortable participating in both motorized and non-motorized travel.

Fiscal Impact:

There is no fiscal impact from the consideration of the draft ordinance. Staff anticipates a more complete discussion of fiscal impacts of the proposed permanent program when brought to Council in April.