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SUBJECT: 2014 DOWNTOWN PATIO PROGRAM DISCUSSION <br />DATE: OCTOBER 22, 2013 <br />PAGE4OF4 <br />• If a fee is charged, the `first year free' was appreciated. <br />RECOMMENDATION: <br />Discussion only during the Study Session. Based on the comments from the BRaD and <br />the public meeting with restaurateurs, and based on the positive public benefits of the <br />patio program and the sales tax revenue that it generates, staff recommends the <br />following: <br />• Adopt the guidelines on placement, availability and duration indicated above <br />• Charge a fee of $500 per season for each 12' patio section for each participating <br />business, and $250 per season for each 6' section. <br />• Businesses wanting to participate would be required to pay the total fee with the <br />options of paying in two equal installments; the first due March 1, and the second <br />due June 1. Should payments become 30 days late, City staff will notify the <br />business and if payment is not received within 15 days, the patio will be <br />removed. <br />• During the 2013 season, the City made the new, City -owned patios available for <br />free to all participating food establishments. To make that benefit available for <br />other food establishments that have not previously used the downtown patios, <br />the first patio season a business participates in the patio program would be free. <br />FISCAL IMPACT: <br />If all businesses that had patios this year continue to participate, the program would <br />generate $9,500 annually. Additional funds will need to be budgeted (roughly $12,000 <br />for each 12' section; although this cost may go up or down depending on the <br />competitive environment for bidders) and appropriated if the number of patios requested <br />exceeds the number the City currently has in inventory. Additionally, because the <br />proposed fees do not cover the full cost of maintaining the program (unless one <br />assumes that the increase in sales tax revenue offsets all costs over time) the City will <br />need to budget for the difference between what the restaurants pay and the amount <br />needed to maintain the program. <br />ATTACHMENTS: <br />None. <br />CITY COUNCIL COMMUNICATION <br />9 <br />