City Council Study Session Agenda and Packet 2013 10 22

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SUBJECT: 2014 DOWNTOWN PATIO PROGRAM DISCUSSION DATE: OCTOBER 22, 2013 PAGE 3 OF 4 3) Administration — Staff estimates it will cost $2,700 per year to administer this program. 4) Patio depreciation — The patios must be replaced when they have exceeded their useful life and the program should have funding available at the time it is needed. Current replacement cost for one 12 foot patio is $12,000. Assuming a 15 -year life and 3% inflation, $1,005 is needed per 12' patio per year to amass enough funds to replace the patio when needed. Yearly total is $18,094. 5) Insurance - $500 (staff estimate). 6) Storage - $500 (staff estimate). Total estimated costs to operate the program for the 2014 season are $26,794. This translates to a cost per 12 linear feet of patio of $1,488. Staff developed several fee scenarios to provide revenue to maintain and expand the program. Staff presented detailed information on various options to the BRaD committee on September 9, 2013. Comments received from the meeting included; • The fee should be modest. • The financial goal is not to make revenue but to cover costs. • The City should retain control of the patios. • Perhaps the fee should cover only maintenance and storage • It would be surprising if restaurants did not participate because it is such a successful program. • Aesthetics are important. Having visual continuity down the street has value. Staff also held a public meeting on September 9, 2013 and invited all downtown restaurants to attend. Representatives from 5 restaurants attended the meeting; • Jim from Empire Lounge • Adam from Melting Pot • Pete from The Porch Deli • Bob from B.O.B.S. Diner • Patrick from the Bittersweet Cafe Staff walked through the proposed guidelines and detailed cost options. Participants at the meeting expressed the following comments and concerns: • The timeframe the patios would be out was acceptable. • The restaurants should not have to pay at all. It should be a benefit of being a downtown restaurant. • The patios do not provide a significant increase to their sales. • Some restaurants would like to have more patios available for their business. • Some restaurants will likely not participate if a fee is charged. • A rental fee of $720 per 12 foot patio is too high. CITY COUNCIL COMMUNICATION 8