2020 2:00:00 PM

Meeting Link: https://zoom.us/j/92925183633
Meeting Dial-in #: 669 900 6833 Meeting ID: 929-2518-3633

General Business: 9.7

Title: Consideration, discussion, and possible approval of Resolution 3363, waiving annual fees associated with Outdoor Dining and Encroachment Permits during Fiscal Year 2021

Petitioner/Presenter: John Martini, Assistant City Manager/John Martini or Armando Ornelas, Assistant Community Services Director

Recommendation: Staff recommends City Council approve Resolution 3363 to waive annual fees for Outdoor Dining and Encroachment Permits in Victorian Square.

Financial Impact: If a waiver is approved, the City would forgo $10,000+/- in anticipated revenue from fees in Fiscal Year 2021.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

Chapter 5.77 of the Sparks Municipal Code allows the use of sidewalks and public right-of-way for outdoor cafés subject to certain standards and restrictions. A permit is required, and permit holders are required to pay the City for the use of City sidewalks. Permit fees are based on the size of the outdoor café, and fees for these permits totaled $9,338 in Fiscal Year 2020. Because the COVID-19 pandemic has severely impacted many businesses that hold outdoor café permits, and the special events that generate customers for these businesses are likely to be curtailed or canceled, City staff proposes that the City Council waive rent payments for outdoor café permits in Fiscal Year 2021. If a waiver is approved, staff estimates the City would forgo approximately $10,000 in fee revenue in Fiscal Year 2021.

Background:

Chapter 5.77 of the Sparks Municipal Code (SMC) allows the City to issue outdoor dining and encroachment permits for use of City sidewalks and right-of-way as outdoor cafés. SMC Chapter 5.77 specifies standards for the installation and use of outdoor cafés, including regulations on serving alcoholic beverages. The City normally renews outdoor dining and encroachment permits (“Permits”) for Victorian Square establishments prior to the start of each new fiscal year on July 1.

The COVID-19 pandemic has severely impacted many Victorian Square businesses that hold Permits. Many of the special events that generate customers for these businesses may be canceled or limited, which will continue to impact Permit holders’ revenues and viability. In the interest of retaining these businesses in Victorian Square and in furtherance of the City’s redevelopment goals, City staff proposes that the City Council waive fees for Permits in Fiscal Year 2021.

Analysis:

During the current fiscal year (2020), Permit fees ranged from $240 to $2,130 per Permit based on the size of the outdoor dining area; fees for these permits totaled $9,338 in Fiscal Year 2020. If a waiver is approved, staff estimates the City would forgo approximately $10,000 in fee revenue in Fiscal Year 2021.

Should the City Council choose to waive fees, staff would still need to renew Permits and Permit holders would still be required to comply with Permit regulations such as the use of barriers to delineate outdoor dining space and hours of operation. Permit holders who violate the applicable rules would still be risking revocation of their Permits.

Pursuant to SMC 5.77.100, City Council may issue a Permit upon such terms, conditions and fees as it deems appropriate. The attached resolution provides for the City Council to waive Permit fees for Fiscal Year 2021. Permit fees will resume in Fiscal Year 2022 unless the City Council extends the waiver.

Alternatives:

The City Council could approve Resolution 3363.
The City Council could reject Resolution 3363 and provide direction to the City Manager.

Recommended Motion:

I move to approve Resolution 3363 to waive annual fees associated with Outdoor Dining and Encroachment Permits for Fiscal Year 2021.

Attached Files:

Resolution 3363 Outdoor Dining Permit Fee Waiver 6-8-20.pdf

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