ITEM 9-D

Council Meeting:  March 24, 1992

TO:      The Mayor and City Council

FROM:    City Staff

SUBJECT: Recommendation to Approve Ocean  Avenue  Outdoor  Dining
         Standards

INTRODUCTION

This report requests approval of the Ocean Avenue Outdoor  Dining
Standards which have been presented to City Council previously in
1991  and  rewritten  incorporating   requested   changes.    The
Standards  have  had  input  and  approval  from  City  staff  in
pertinent departments, the Architectural Review  Board,  and  the
Planning   Commission.    Revisions  substantively  changing  the
document from previous versions are highlighted  in  this  report
and issues remaining for decision are presented.

BACKGROUND

In January of  1990,  City  Council  directed  staff  to  develop
guidelines for future Ocean Avenue outdoor Dining applicants.  At
that time,  Council  was  concerned  about  reserving  sufficient
sidewalk  space  for  pedestrians,  about  the type and height of
vertical separation between outdoor dining area and sidewalk, and
about obtaining input and approvals from the Architectural Review
Board (ARB) and Planning Commission before returning to the  City
Council.   ARB approved the Standards on December 3, 1990 and the
Planning Commission approved the Standards in concept on July 31,
1991.    Comments  and  recommendations  from  both  Boards  were
referred to City Council for their consideration and are included
in this report.

Based on numerous follow-up  discussions  with  City  staff,  ARB
members,  and  Councilmembers,  the  Ocean  Avenue Outdoor Dining
Standards were revised as follows:

    1.   Outdoor patios could extend up to twelve (12) feet  into
         the   public  right-of-way  if  there  are  no  sidewalk
         obstructions.  Under all circumstances, eight  (8)  feet
         of  completely  unobstructed  sidewalk  space  would  be
         required.  This would allow two couples to walk together
         or pass each other freely.

    2.   The solid, opaque portion of the  barrier  would  be  no
         higher  than  3'6".   A  windscreen  of  glass  would be
         permitted above the opaque barrier of two (2) feet.   If
         a  glass  windscreen  is used, awnings could only extend
         over 50% of the depth of outdoor dining area in order to
         avoid the effect of an enclosed room.

    3.   If the outdoor dining area exceeds  seven  (7)  feet  in
         depth,  awnings would be permitted over 50% of the area,
         to avoid the "enclosed room"  effect.   If  the  outdoor
         dining  area  is  seven  (7)  feet  or less in depth, an
         awning over the entire area  would  be  permitted  if  a
         windscreen is not attached.

    4.   The operational standards for new outdoor  dining  areas
         shall  include  requirements  for  a  designated  driver
         program modeled on the Third Street Promenade's  outdoor
         dining  program.   Outdoor  dining  areas  which operate
         under easement agreements shall abide by the  terms  and
         conditions of their conditional use permits.

    5.   Compliance of the Standards shall  be  enforced  by  the
         Police  or  by  the Economic Development Division staff.
         Notice of non-compliance shall be made in  writing  with
         three  violations  in  one  year  constituting cause for
         closure of the outdoor dining  area  and  revocation  of
         license agreements.

The Council had also recommended that only semi-permanent barrier
constructions  at  sidewalk level, and 30-day license agreements,
be permitted in order to reserve the City's right to  retake  the
public  space  if  needed.   However, in their meetings, Planning
Commissioners and ARB Board members debated  whether  unmitigated
ocean  breezes,  vehicular  noise  and  fumes,  the  viability of
handicapped  access,  and  an  interest  in  "quality"  warranted
permanent  constructions, perhaps raised off the sidewalk in some
circumstances.  Council members and ARB members have proposed  an
increased rental rate for outdoor dining operators with permanent
barrier construction.  These issues shall  be  discussed  in  the
next  section.  One Planning Comissioner recommended changing the
term Guidelines to Standards, which has been incorporated in  the
revised Standards.

DISCUSSION

Economic Development Division staff have considered  the  various
recommendations  from  Planning  Commissioners,  ARB members, and
Council and recommend the following:

    1.   As written in these Standards, outdoor  dining  barriers
         on Ocean Avenue would be semi-permanent constructions if
         the exterior area is level with, and  an  extension  of,
         the  interior  space.   Permanent constructions would be
         permitted if the grade levels are  uneven.   This  would
         abide  by  the  general  philosophy  that outdoor dining
         areas would generally  be  as  "pedestrian-friendly"  as
         allowable  by the slope of the grade fronting the dining
         area.  The current restaurants at Paseo del Mar, Fennel,
         and   Belle-Vue   would   have   semi-permanent  barrier
         constructions if reviewed today.  New constructions  and
         restaurants   with   long  frontage  would  more  likely
         confront  a  change  in  slope  and  require   permanent
         construction  to enable an outdoor dining area on public
         right-of-way.

    2.   Agreements shall be either licenses  for  semi-permanent
         barrier   construction,   or   easements  for  permanent
         construction.  Easement agreements reflect  the  reality
         of   permanent   barrier  constructions  and  restaurant
         operators interest in securing a return on their greater
         financial investment in construction.

    3.   Monthly  rental  rates  shall  reflect  the  degree   of
         permanence,  with  rates  beginning  at $1.50 per square
         foot for license agreements and $2.00  per  square  foot
         for easement agreements, and annual Consumer Price Index
         (CPI) adjustments.

City Council had requested a report  on  the  status  of  outdoor
dining  agreements  that  have  been  issued  to  date.   The two
restaurants at the Paseo del Mar corner - the Rigatta and Ivy  at
the  Shore  -  have easement agreements expiring in October 2003.
The new Fennel Restaurant  building  owner  retains  an  easement
agreement   which   will  expire  in  November  2003.   I  Cugini
Restaurant's easement agreement will expire in  June  2020.   The
Bell-Vue  Restaurant  is  out  of business and prospective buyers
have inquired about the  new  Standards.   Ocean  Avenue  Seafood
Restaurant  does  not  currently extend into public right-of-way,
but is awaiting approval of the new Standards to begin remodeling
their outdoor area.  The status report is attached herewith.

BUDGETARY IMPACT

Adoption of these Standards has no budgetary impact.

RECOMMENDATION

Staff respectfully recommends that City Council approve the Ocean
Avenue Outdoor Dining Standards and authorize the City Manager to
negotiate  and  execute  easement  and  license  agreements  with
restaurant  operators applying for outdoor dining on Ocean Avenue
consistent with the Standards.

Prepared by:  Darrell J. George, Manager
              Economic Development Division

              Ruta Skirius, Senior Administrative Analyst
              Economic Development Division

Attachments:  Ocean Avenue Dining Standards
              Status Report on Dining Agreements