TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ryan Heise, Acting Community Development Director
Adam Finestone AICP, Planning Manager
Jaehee Yoon AICP, Senior Planner
SUBJECT:Title
Consideration of:
a) Preliminary Plans to Implement the Long-Term Outdoor Dining Program Preferred Vision; and
b) Recommendations from the Outdoor Dining Task Force
(Acting Community Development Director Heise).
(Estimated Time: 3 Hr.)
DISCUSS AND PROVIDE DIRECTION
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council consider and provide direction on the outdoor dining task force recommendations and the preliminary plans to implement the preferred program vision.
EXECUTIVE SUMMARY:
Since May 1, 2023, the City has hosted 15 outdoor dining task force meetings with the goal of developing a long-term program that seeks to balance the preservation of residents’ quality of life and provision of adequate outdoor dining opportunities. Most task force meetings resulted in various recommendations that were periodically presented to the City Council for further direction. The task force recommendations thus far include, but are not limited to, the definition of outdoor dining for the City; program scope in terms of eligible businesses and locations, program regulations (e.g., permit process, occupancy, operating hours, permit duration, enforcement mechanism, design standards, etc.), and the preferred program vision.
The preferred program vision is a potential solution to the long-term outdoor dining program that stemmed from community and task force input, as well as interdepartmental discussions. The preferred program vision consists of three main components, which include widening sidewalks along select streets; reconfiguring on-street parking spaces; and identifying public flex spaces with public-serving amenities throughout Downtown and North Manhattan Beach. After considering the conceptual plan and a Rough Order of Magnitude (ROM) cost estimate prepared in-house, the City Council approved developing preliminary plans to further assess the technical and financial feasibility of the preferred program vision.
Based on the preliminary plans, sidewalks would be widened by four to nine feet (depending on location) into the vehicular right-of-way, which will result in five to eight-foot-wide sidewalk dining areas in front of the establishment. Accommodating the wider sidewalks by reconfiguring, removing, or adding on-street parking spaces to comply with ADA requirements in the public right-of-way will result in a net loss of seven on-street parking spaces. However, the peak parking occupancy (89%) is expected to be less than that experienced today (94%) despite the loss of parking spaces and increased parking demand resulting from increased outdoor dining seating because of the bundle of parking strategies proposed by the consultant team.
The cost to design, engineer, and construct the preferred program vision is estimated to be approximately $13 million. Due to many street segments in the preliminary plans that are heavily visited, the consultant team proposed a conceptual construction phasing plan. With 11 phases proposed, construction is anticipated to take up to 16 months if phases are combined, and each phase is built consecutively. However, intermittent breaks during busy periods throughout the year will be required between different phases in Downtown, extending the overall completion timeframe. Project phasing will also depend on the availability of funds, as described in the ‘Potential Funding Sources’ section in this report. Once the timing and scope of implementation is determined, further research on potential funding sources will be conducted.
The fiscal impact analysis on the temporary outdoor dining program found that there was a substantial positive correlation between outdoor dining, sales tax (both restaurants and retailers), and parking revenue increases. Despite repurposing 57 on-street parking spaces to accommodate temporary outdoor dining, the City’s net fiscal gain from the temporary program was estimated to be $336,500 - $447,000 per year. Conversely, there was a decrease in sales tax and parking revenue when the temporary program ended and on-street parking spaces returned. With the preferred program vision, the City’s yearly net fiscal gain is expected to be 16 to 37 percent greater than that of the temporary program due to sidewalk dining use fees, which were waived during the temporary program, and due to the minimal loss of on-street parking spaces.
The fiscal impact analysis noted that the positive impacts of outdoor dining went beyond sales revenue, with benefits to the community and culture in Manhattan Beach as a whole. Various community outreach efforts echoed some of the same sentiment, however, concerns were also raised on the negative impacts associated with outdoor dining as well. As a first step to balance the two and continue developing the program without committing additional resources, the City may initiate code amendments related to existing outdoor dining regulations to update the operational standards with task force recommendations. In addition, other elements of the preferred program vision, such as the public flex space improvements and parking strategies, may be implemented as a separate effort in the event the City Council does not wish to pursue the full preferred program vision at this time.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action of providing direction. Codifying recommendations from the outdoor dining task force will incur costs associated with staff time. Additional resources necessary to codify the recommended regulations will be provided by the outdoor dining consultant, Moore Iacofano Goltsman, Inc. (MIG), through the existing Professional Services Agreement (PSA) approved on June 6, 2023 and amended on April 16, 2024 for a total not to exceed amount of $491,727. Should the City Council desire to proceed with implementing the full scope of the preferred program vision, the project will require appropriating approximately $13 million in the future. Upon amending the code and receiving certification from the California Coastal Commission (CCC), the next step in implementing the preferred program vision would be to prepare construction documents, which will require identifying funding source(s) and appropriating additional funds in the amount of approximately $3 million of the $13 million estimated.
BACKGROUND:
Between June 2020 and February 2023, the City allowed for temporary outdoor placement of a variety of uses in response to COVID-19 protocols that restricted indoor operations. On August 24, 2021, the City Council directed staff to pursue a work plan item to study a long-term program for outdoor dining and business uses as the focus gradually shifted from a temporary program to one in a post-pandemic era. On July 5, 2022, the City Council also directed staff to form a 15-member ad hoc task force to assist in the long-term program development process, which was completed on April 4, 2023. On May 1, 2023, the first outdoor dining task force meeting kicked off with 15 meetings conducted.
On June 6, 2023, the City Council approved a contract with MIG to assist the City in specialized subject areas of developing the long-term program so as to expedite the development process and supplement the necessary resources that are currently not available in-house.
On September 5, 2023, the first status update report was presented to the City Council. The report included the task force-recommended program scope, a Minor Local Coastal Program amendment option, and potential contract revisions with MIG to conduct a statistically accurate community survey and alternative traffic pattern analysis. At the time, the City Council determined that the contract revision was not warranted.
On February 20, 2024, a second status update report was presented to the City Council. The report included community outreach efforts conducted; the preferred program vision for the long-term outdoor dining program; options for the walk street commercial corners east of Manhattan Avenue at 10th Street; and potential amendments to MIG’s contract to develop preliminary plans. Following discussions, the City Council directed staff to report back with a ROM estimate for the preferred program vision and confirmed that the task force need not explore other design alternatives during the interim.
On April 16, 2024, a third status update report was presented to the City Council. The report included the requested ROM estimate and related amendments to MIG’s contract to develop preliminary plans, as well as the outdoor dining task force recommendations on live outdoor entertainment/amplified music and enforcement mechanisms. At the time, the City Council approved amending MIG’s contract and took no action on the task force’s recommendations.
On October 1, 2024, a fourth status update report was presented to the City Council. The report included a proposal for a pilot project to test out the preferred program vision’s concept with a modular system along one block of Manhattan Avenue in Downtown. Due to other competing interests for resources, including Parking Lot 3, and the uncertainty of the sales tax measure ballot at the time, the City Council directed staff to take no further action.
DISCUSSION:
Preliminary Plan Development
The preferred program vision for long-term outdoor dining consists of widening sidewalks along select streets (Manhattan Avenue, Manhattan Beach Boulevard, and Highland Avenue); reconfiguring on-street parking spaces; and identifying public flex spaces with public-serving amenities throughout Downtown and North Manhattan Beach. The vision stemmed from community and task force input as well as inter-departmental discussions, to develop a potential solution that can help achieve the objective of balancing residents’ quality of life and providing outdoor dining opportunities, where appropriate in the context of the City’s built environment.
The purpose of the preliminary plans was to more accurately assess the technical and financial feasibility of the conceptual plans drawn in-house for the preferred program vision and inform the preparation of construction documents in the future. The preliminary plans developed by MIG identified sidewalk dining areas adjacent to 34 existing Eating and Drinking Establishments who expressed interest in the sidewalk dining opportunity. To accommodate this, the plans propose widening sidewalks between four to nine feet into the vehicular right-of-way (depending on location), which will result in five to eight-foot-wide sidewalk dining areas (again, location-dependent) running the length of the façade immediately adjacent to the establishments. The plans would require on-street parking spaces to be reconfigured, removed, or added to comply with ADA parking requirements in the right-of-way, resulting in a net loss of seven spaces (five in Downtown and two in North Manhattan Beach). It should be noted that nine of the on-street parking spaces that were proposed to be added by this concept have already been implemented in part by the additional temporary spaces created in Downtown following the closure of Parking Lot 3.
Cost Estimate
Based on the preliminary plans, MIG established a cost estimate for the project of approximately $13 million ($11 million for Downtown and $2 million for North Manhattan Beach). This estimate includes costs related to design, engineering, construction, and contingencies, and has been broken down into different street segments clustered in Downtown and North Manhattan Beach that can be used to phase the construction. Due to the preliminary plans, MIG’s estimate provides a more accurate accounting than the ROM estimate prepared by staff and presented at the April 16, 2024, City Council meeting. At that time, the ROM estimate was in the order of $7.5 million to $12.5 million. MIG’s estimate includes several additional items related to grading activities required for sloped streets, multiple phases of construction, and more conservative costs for public flex spaces that added to the overall costs. After adjusting the ROM estimate to account for items that were omitted or assumed in different quantities (creating a more “apples-to-apples" comparison), it resulted in approximately $12 million, which is within the expected accuracy range (-15 percent to +30 percent) established by the Association for the Advancement of Cost Engineering (AACE International) for this level of cost estimate. If similar improvements to maintain a consistent aesthetic character were made on the opposite side of streets where sidewalk widening is proposed (albeit without widened sidewalks), the total project cost would increase by approximately $8 million, consistent with what was identified as part of the ROM cost estimate.
Conceptual Construction Phasing Plan
A conceptual construction phasing plan was prepared to account for the various street segments that are part of the preferred program vision in areas of Downtown and North Manhattan Beach that are heavily visited. There are 11 potential phases (eight in Downtown and three in North Manhattan Beach) proposed which intended to minimize impacts of construction by focusing on one side of the street at a time, combining areas of work at intersections where crosswalks will be relocated, and reducing the need for interim improvements. Although there are 11 phases proposed, each phase may be a standalone project or combined with one another depending on the circumstances and funding availability.
In general, the overall construction timeframe and phasing will depend on multiple factors such as the time of year, contractor, and funding. Based on staff’s empirical knowledge, the entire effort to build the project is estimated to take up to 16 months. This is assuming that the three phases in North Manhattan Beach can be combined into one and completed in six to eight weeks; and separate phases in Downtown can be constructed consecutively by overlapping with adjacent blocks which will take 10-14 months. However, it should be noted that construction activities in Downtown are limited to certain months throughout the year to avoid busy periods between Memorial Day and Labor Day, and the holiday season. As such, there will be intermittent breaks to the estimated 10-14 months of construction in Downtown, resulting in an extended completion date.
Outreach to Potential Business Participants
In July 2024, staff conducted outreach targeted to 37 businesses that were identified in the conceptual plan that may benefit from the enhanced sidewalk dining opportunity. The objective of the outreach was to gauge their interest in the preferred program vision and solicit input on the design of the sidewalk dining area fronting their establishment as the preliminary plans were being developed. Based on input received, most businesses were largely supportive of the concept, dependent on necessary investment required to participate. However, three businesses (Café Wild, Izakaya, and a currently vacant tenant space at 125 Manhattan Beach Boulevard) expressed no interest in participating due to financial or other operational factors.
In October 2024, a subsequent outreach was conducted to the 34 businesses who expressed interest, as well as to property owners of the buildings in which the establishments occupied. The outreach was intended to receive input on their willingness to financially contribute to the build-out, as their business will likely benefit from the improvements. The contents of the outreach included the overall cost to implement the program and an individual cost per establishment based on the necessary improvements to create their respective sidewalk dining areas (including utility relocation, sidewalk expansion, and associated design and engineering costs). The individual costs for establishments averaged approximately $143,000, totaling $4.9 million for all 34 businesses, which represents approximately 37% of the overall project cost estimate. Based on input received, 18 of the 34 businesses were still interested in seeing the project come to fruition. Most did not provide a specified amount they may be able to contribute as it was difficult to determine the return on their investments. On the other hand, some noted that they may be able to contribute between $10,000 and $60,000, generally corresponding to the size of their business. Regardless, there was input from numerous establishments that requested consideration of payment plans over time and waiver of sidewalk dining use fees until they can recover their investments. Establishments that were no longer interested cited that the figure was cost prohibitive; there was uncertainty with their leases; or the business was not profitable enough to invest in expansions.
Additionally, two property owners provided input during the outreach process. Neither anticipated a significant benefit in contributing to the build-out from a landlord’s perspective due to the uncertainty of return on investments in the near-term. Specifically, they stated that, while establishments can reap financial gains in the short-term with their expanded operations, it takes much longer for landlords to realize the gain because rents cannot be easily raised to market rates and there is no guarantee on when, if any, property value will increase in proportion to their investments.
Potential Funding Sources
In addition to the cost estimate generated from the preliminary plans, several funding sources were recommended by MIG to assist the City in implementing the preferred program vision. Local funding options include incorporating the project into the Capital Improvement Program (CIP) and constructing it over time, or issuing bonds to finance the project more efficiently, albeit with long-term repayment obligations as discussed in the April 16, 2024, City Council staff report. Other potential funding sources would be through regional, State, federal, or non-profit/private grant opportunities. Since grants are administered by different agencies/organizations and have different evaluation criteria and terms, each application would need to be customized to highlight certain elements of the project to align with the objectives of the specific grant. Given that the timing and scope of implementation is undetermined at this time, no specific funding sources have been identified because grant opportunities and requirements change regularly. Additional research to identify specific funding sources will be conducted if the City Council opts to move forward with the preferred program vision.
Fiscal Impact Analysis
The consultant team conducted stakeholder interviews from December 2023 through April 2024, that included both the residential and business community. The information obtained from the stakeholder interviews was also used in their fiscal and economic impact findings. The analysis focused on areas where outdoor dining was most active (Downtown and North Manhattan Beach) by comparing Q2-Q3 of 2022 (when the pandemic-related temporary outdoor dining program was in effect) to the same period in 2023 (when the temporary program was no longer in effect) to understand the impacts of the temporary outdoor dining program on sales tax and parking revenue.
Based on their findings, there was a substantial positive correlation between outdoor dining, sales, and parking revenue increases. Specifically, the temporary outdoor dining program yielded not only additional sales tax from restaurants and retailers, but it also generated more overall parking revenue despite repurposing 57 on-street parking spaces to temporary dining decks. Conversely, sales tax and parking revenue declined and underperformed compared to Citywide and Countywide trends after the temporary outdoor dining program ended. The analysis suggests that the loss of outdoor dining space led to fewer patrons visiting and parking, resulting in a revenue decrease from City-owned parking lots (12.4% or $243,600) that exceeded the increased parking revenue generated by the on-street parking spaces (7% or $79,000) that returned.
Overall, the City’s net fiscal gain from utilizing 57 on-street parking spaces during the temporary outdoor dining program generated $336,500 - $447,000 per year. Based on the preferred program vision, it is estimated that the City’s net fiscal gain will be greater by 16 to 37 percent even though less seating (580) is proposed to be created. This is due to including the sidewalk dining use fee, which was waived during the temporary program, and the fact that only seven on-street parking spaces will be removed, instead of 57 during the temporary program. In addition, they noted that the positive impacts went beyond sales with benefits to the community and culture in Manhattan Beach as a whole.
Parking Strategy Analysis
As parking demand is expected to be higher with the proposed allowance to increase dining occupancy by an estimated 580 seats with the preferred program vision, the consultant team analyzed strategies to alleviate potential parking issues in Downtown and North Manhattan Beach. The basis of the analysis used industry standards with the most conservative approach, field observations, and parking data collected during peak summer periods in 2023. The various strategies were grouped into three categories:
1) Programmatic: Policy changes or initiatives that affect parking supply or demand
2) Design/Spatial: Changes to the built environment that affect parking supply or demand
3) Transportation demand management (TDM): Strategies to maximize a traveler’s choice to reduce vehicle miles traveled and improve traffic congestion
Since no single strategy will be as effective alone in addressing additional parking demand, a bundle of strategies was recommended by the consultant team (shown in the table below) that focused on encouraging multimodal access, increasing the supply of on- and off-street parking spaces, maximizing the use of outdoor dining spaces, and relocating demand for long-term parking. With the bundle of strategies recommended, it is anticipated that the peak parking occupancy under the long-term outdoor dining program (89%) would be lower than that experienced today (94%). The analysis took into account the increased dining occupancy, net loss of seven on-street parking spaces, and a potential loss of 40 off-street parking spaces in Parking Lot 3 if it is rebuilt to its previous height and footprint. (This is because additional space will be needed on the Parking Lot 3 site to comply with updated building code and accessibility requirements.) Notwithstanding the anticipated increase in demand and reduction in supply noted above, the parking strategy analysis identified the potential to increase the supply through additional street modifications (restriping parallel to angled spaces), shared parking on private lots with different peak-hour parking demands, valet parking, and additional off-street parking opportunities. Furthermore, parking demand was estimated to decrease with quantifiable trip reduction factors from on-demand shuttles and additional bike parking opportunities, all of which resulted in a lower future peak parking occupancy rate. While the impacts were not quantified, bike valet and wayfinding signs are additional strategies that can help with further managing parking demand.
|
Strategy |
Desired Outcome |
Timeline |
Implementation Cost |
|
Street Modifications |
On-street parking |
Mid-term |
$$ (one-time; higher if |
|
(Design/Spatial) |
supply increase |
|
hardscaped) |
|
Shared Parking |
Increase supply and |
Short-term |
$ (continuous) |
|
(Programmatic) |
relocate long-term |
|
|
|
|
parking demand |
|
|
|
Valet |
Increase supply and |
Short-term |
$ (continuous) |
|
(Programmatic) |
relocate short/long- |
|
|
|
|
term parking |
|
|
|
|
demand |
|
|
|
Additional Off- |
Relocate demand |
Long-term |
$$$ (one-time) |
|
Street Parking |
for long-term |
|
|
|
(Design/Spatial) |
parking to a parking |
|
|
|
|
garage |
|
|
|
On-Demand |
Encourage multimodal |
Mid-term |
$$$ (continuous) |
|
Shuttle (TDM) |
access and decrease |
|
|
|
Bike Parking |
parking demand |
Short-term |
$$ (one-time) |
|
(Design/Spatial) |
|
|
|
|
Bike Valet (TMD) |
|
Short/Mid- |
$$ (continuous) |
|
Wayfinding |
Relocate demand |
Short-term |
$$ (one-time) |
|
(Design/Spatial) |
for long-term parking |
|
|
Bike Parking Opportunities
As part of the parking strategy analysis, potential locations ideal for bike facilities were identified, which considered avoiding prime locations with scenic views and busy streets and/or sidewalks that may add to the congestion. Based on the criteria, five viable options (four in Downtown and one in North Manhattan Beach) were identified, as follows:
1) Off-street at the US Bank site’s landscaped area near the intersection of Manhattan Beach Boulevard and Morningside Drive.
2) On-street area fronting Katwalk at 314 Manhattan Beach Boulevard.
3) Off-street on the upper level of Parking Lot 4 in North Manhattan Beach, adjacent to The Ryan Law Group.
4) Off-street at Metlox along Morningside Drive, between Waterleaf and Nick’s
5) Off-street along Morningside Drive, adjacent to Vuori.
Task Force Recommendations and Operational Standards
The City facilitated 15 outdoor dining task force meetings over the course of 16 months that included a series of informational sessions and discussions amongst the task force members. A summary of each meeting’s agenda topic is provided in the table below, followed by a brief overview of the task force consensus and recommendations.
|
Meeting Date |
Agenda |
|
May 1, 2023 |
Program scope; visioning exercise; and a strengths, |
|
|
weaknesses, opportunities, and threats (SWOT) analysis |
|
May 30, 2023 |
Living streets design manual, (rescinded) Downtown Specific |
|
|
Plan, outdoor dining case studies (City of San Diego and |
|
|
Capitola) |
|
June 27, 2023 |
Code considerations (fire, building and safety, public works, and |
|
|
traffic) |
|
July 25, 2023 |
Program scope refinement and overview of required code |
|
|
Amendments |
|
August 29, 2023 |
Provisions related to outdoor dining operations (hours, alcohol |
|
|
service, occupancy, etc.) |
|
September 26, 2023 |
Overview of Downtown and North Manhattan Beach parking |
|
|
data analysis |
|
October 24, 2023 |
Community outreach summary, outdoor dining definition, and |
|
|
targeted outreach scope for walk street commercial corners, |
|
|
design guideline elements |
|
December 12, 2023 |
Targeted walk street resident outreach summary, introduction of |
|
|
the preferred program vision, and considerations for public |
|
|
realm development |
|
January 23, 2024 |
Conceptual plan review of the preferred program vision; |
|
|
overview of provisions related to live entertainment, music, and |
|
|
vehicle loading |
|
February 27, 2024 |
Live outdoor entertainment and amplified music, waste |
|
|
management, and enforcement mechanism |
|
March 28, 2024 |
2nd floor outdoor dining regulations and public flex space |
|
|
Amenities |
|
April 23, 2024 |
2nd floor outdoor dining regulations and public flex |
|
|
space recommendations by location |
|
May 28, 2024 |
2nd floor outdoor dining regulations, vehicle loading regulations, |
|
|
and administrative process |
|
July 9, 2024 |
Overview of task force consensus/recommendations to date |
|
|
and consideration of outstanding items |
|
August 27, 2024 |
Parking analysis and strategies to accommodate the proposed increase in dining capacity |
Program Vision
The definition of outdoor dining in the City’s context reflects the vision that emerged from the task force kick-off meeting as well as community outreach efforts. The task force-recommended definition of “outdoor dining” is:
Open air “al fresco” dining on public and private property, in which the experience:
• Allows for opportunities to enjoy the pleasant weather and scenic ocean views
• Promotes a sense of community and interaction with others
• Enhances the ambiance and small-town character of Manhattan Beach
• Balances community vibrancy with residential quality of life
Proposed Program Scope
1) Business use: Eating and Drinking Establishments only
2) Location
- Public property: Downtown and North Manhattan Beach only; limited to sidewalk dining (not within the roadway)
- Private property: Citywide; on excess parking spaces, underutilized open spaces, and second floor decks that do not face residential uses and have a minimum 15-foot buffer.
3) Public flex space improvements (i.e., street furniture, bike facilities, landscape, hardscape, etc.) in Downtown and North Manhattan Beach, which may cater to Food and Beverage Sales uses as well as visitor-serving amenities to balance privatization of public spaces for commercial outdoor dining. Public flex space locations at major intersections (i.e., along Manhattan Avenue, Manhattan Beach Boulevard, and Highland Avenue) are to incorporate similar amenities and landscaping for uniformity.
4) Walk street commercial corners:
There are 15 commercially-zoned parcels located at the corner of walk streets where the public right-of-way within the walk street were proposed as potential outdoor dining areas. However, due to the strong opposition received during the targeted outreach to residents on blocks where parcels described above are situated, the use of the walk street commercial corners for outdoor dining was no longer recommended.
Notwithstanding, some task force members opined that special consideration should be given to the east side of Manhattan Avenue at 10th Street, as residential uses are not immediately adjacent to the walk street commercial corners, which is the case for all other parcels considered. Specifically, the walk street commercial corners between Uncorked and Manhattan Denim are uniquely situated with a buffer between the commercial corners along Manhattan Avenue and the multifamily residences at the opposite end of the block near Bayview Drive. Based on their input, staff presented the following options to the City Council at its February 20, 2024, meeting, at which time no action was taken:
i) Maintain the status quo of prohibiting commercial use of walk streets.
ii) Same as Option No. 1 above but with public-serving amenities developed along the walk streets as public flex space.
iii) Amend the Manhattan Beach Municipal Code (MBMC), General Plan, and Manhattan Beach Local Coastal Program (MBLCP) to allow private commercial use of this specific walk street for outdoor dining in lieu of sidewalk dining in front of the establishment. By doing so, additional sidewalk widening and alteration of the existing landscaped area along this segment of the street would not be necessary.
Proposed Program Regulations
1) Permit process: Administrative, staff-level decisions, including instances when alcohol service is requested in the outdoor dining area.
- Duration: Perpetual, unless there is a change in ownership or the permit is revoked; yearly renewals required to ensure compliance with all applicable requirements.
- Deviations: Requests to deviate from the outdoor dining regulations would be reviewed by the Parking and Public Improvements Commission (PPIC) for sidewalk dining and the Planning Commission (PC) for private property outdoor dining.
- Revocation: Permits would be revoked using the three strikes and out rule if three violations occur within a one-year period, and permit holders would be prohibited from reapplying for one-year subsequent to the revocation.
2) Occupancy: Net increase in dining occupancy (seating area) would be allowed if an adequately sized trash enclosure is provided on private property and appropriate levels of service for pick-up are available, both of which will be reviewed with applicable provisions at the time, prior to permit issuance by the Public Works Department. In addition, bussing stations would be prohibited in outdoor dining areas.
3) Live outdoor entertainment and amplified music: Existing permits (i.e., Entertainment Permit and Amplified Sound Permit) would be used to allow such activities from 9 a.m. to 10 p.m.; enforcement would be subject to the “reasonable person test” in MBMC Section 5.48.140 (Noise Disturbance)
- Sidewalk dining: Live entertainment would be limited to special events only and speakers for amplified music shall be placed on private property.
- Private property outdoor dining: Both activities would be allowed with permits; however, they would be prohibited on second floor decks, including areas not fully enclosed, on the same level. It should be noted that for second floor outdoor dining, the applicant would be required to incorporate noise mitigation measures into their design based on a menu of options recommended by the consultant team.
4) Hours of operation: Service would be allowed until 10 p.m., with the area cleared by 10:30 p.m., for sidewalk dining, second floor dining decks, and other private property outdoor dining within 150 feet of residential uses. Private property outdoor dining areas (except second floor decks) more than 150 feet away from residential uses would be subject to Use Permit conditions.
5) Design standard:
- No regulations are recommended on the type and color of chairs, tables, or other associated appurtenances.
- No branding or identification signs would be allowed on barrier/fencing or shade structures.
- Vertical clearance and horizontal projections of the shade structure would be governed by the California Building Code.
- Sidewalk dining:
• Barrier/fencing materials would be restricted to wood, metal, or composite materials no taller than 42 inches in height that are at a minimum 50 percent open to light and air.
• Heaters would be limited to natural gas and electrical devices.
• Umbrellas would be prohibited on the ground floor of streets along the east-west direction (e.g., Manhattan Beach Boulevard); retractable awnings would be preferred.
- Private property outdoor dining:
• No restrictions are recommended for heaters, including propane heaters.
• Roof/shade structures would be allowed at the discretion of the establishment.
• Balcony projections into the right-of-way would continue to be prohibited for second floor dining decks.
6) Sidewalk dining use fee: A higher use fee than current levels ($3/sq.ft.) and a tiered use fee with incremental increases are recommended depending on the location and alcohol service as it correlates to more pedestrian traffic and/or sales revenue. For instance, the base fee would increase by a certain amount for establishments located in Downtown and/or if alcohol service is provided. Based on the consultant team’s analysis, they recommended that monthly fees should not exceed the average market rent for indoor retail space as it may discourage participation. At the time of their analysis in 2023-2024, the average market rent for indoor retail space in Downtown was $5/sq.ft. and North Manhattan Beach was $4/sq.ft.
7) Vehicle loading: Large vehicle loading activities in residential areas and on streets that are less than 36 feet in width would be prohibited from 11 p.m. to 4 a.m. (Sunday -Thursday) and 6 p.m. to 4 a.m. (Friday - Saturday). This provision will be applicable to all commercial loading activities and not limited to outdoor dining. (Note that current restrictions on loading activities in the MBMC are very limited without specific geographic areas identified)
More information on each outdoor dining task force meeting, including the agenda, minutes, and PowerPoint slides, can be found on the City’s outdoor dining webpage.
Code Amendment Initiation
Due to the emergency orders issued during the early stages of the pandemic, outdoor dining regulations were relaxed to spur economic activity and allow businesses to stay afloat. This includes expansion of outdoor dining capacity, relaxation of regulations related to alcohol sales and service, expanded use of the public right-of-way for outdoor dining, and others. Since that time, some regulations have been dialed back, as is evident with the City’s elimination of on-street dining decks. Other regulations, particularly those established by the State (AB1217) for expanded alcohol service in outdoor dining areas and waiver of local parking requirements, are set to expire in July 2026. In order to continue the outdoor dining program in its current form, it is necessary to prioritize amendments to the existing outdoor dining regulations in the MBMC and MBLCP. By doing so, the code amendments will, at a minimum, serve as an alternative to the preferred program vision without losing sight of recommendations from the task force that are crucial in making improvements to the City’s outdoor dining landscape.
If initiated, proposed amendments will focus on operational standards that reflect current operations as well as a number of task force recommendations related to net occupancy, alcohol service (subject to the State Alcoholic Beverage Control), live entertainment and amplified music, and second floor outdoor dining decks. Procedurally, proposed regulations will be presented to the PPIC and PC for their review and recommendation, prior to City Council’s consideration of adopting the code amendments. Additional information on this option as an alternative to the preferred program vision is provided in the ‘Next Steps’ and ‘Direction Needed’ sections below which are closely tied to alternatives for the identified public flex space improvements and parking strategies.
Community Workshop No. 2
On January 27, 2025, the City conducted its second community workshop to provide an update on the program development. The workshop was attended by approximately 30 community members who provided input on the preferred program vision, task force-recommended regulations, and parking strategies. The informational session included a presentation and exhibits in an open house format for the public to ask questions and provide input. In general, the participants were largely supportive of the preferred program vision; and the task force recommended regulations pertaining to the streamlined permit process, waste management, occupancy increase, permit duration, enforcement mechanism, tiered sidewalk use fee, and design elements. Conversely, there were questions and concerns on the estimated cost to build out the improvements; noise and nuisance issues that may arise from public flex spaces near residential uses; effectiveness of the reconfigured parking spaces and strategies proposed to alleviate parking demand; and loss of parking supply and narrower street lanes that result from wider sidewalks.
Next Steps
In light of other major projects in the City that require additional resources and attention, the Council may consider taking action on parts of the program development that could proceed without providing the physical improvements associated with the preferred program vision. As previously mentioned, amendments to the MBMC and the MBLCP can be initiated to incorporate elements from the task force recommendations to address operational standards related to outdoor dining in the public right-of-way and encourage use of private property for outdoor dining activities. In addition, the public flex space concept can become a project in the CIP (separate from the larger, preferred program vision) to help future efforts in activating Downtown and North Manhattan Beach. Furthermore, parking strategies recommended by the consultant team can be utilized to address parking issues associated with the closure of Parking Lot 3 regardless of any action being taken on the preferred program vision.
If the City Council desires to continue developing the preliminary plans, the MBMC and MBLCP amendments necessary to implement the task force’s operational recommendations will still be required, though the actual code language may be tailored so that it is more specific to the preferred program vision. Following adoption of the MBMC, the MBLCP amendments will be submitted to the CCC for certification. Upon receiving certification from the CCC, the City will process a blanket Coastal Development Permit (CDP) for outdoor dining activities in the Coastal Zone which will eliminate the need for individual CDPs by participating businesses. At that time, the City will also work on preparing construction documents and planning for build out of the preferred program vision in phases as funding becomes available.
DIRECTION NEEDED:
Based on the discussion, staff requests City Council direction on the following matters:
1. Options regarding the commercial walk street corner on the east side of Manhattan Avenue at 10th Street to either:
a) Continue prohibiting commercial use of walk streets (maintain status quo);
b) Continue prohibiting commercial use of walk streets but pursue public flex space improvements for the benefit of the general public; or
c) Amend the Municipal Code, General Plan, and MBLCP to allow for commercial use of walk streets limited to outdoor dining in this specific area and prohibit sidewalk dining along the frontage of the Eating and Drinking Establishment.
2. Future direction on the long-term program development with either option below:
a) Continue developing the preferred program vision for future build out.
b) Proceed with an alternative with no sidewalk widening, which would limit sidewalk dining opportunities for businesses on sloped streets. This alternative would entail:
i) code amendments to update the existing operational standards with task force recommendations.
ii) public flex space improvements incorporated into an existing or new CIP project.
iii) identification of parking strategies from the recommended bundle that should be pursued in consideration of other projects related to parking.
c) Take no action. It should be noted that relief for expanded alcohol service and parking waivers related to outdoor dining areas will expire in July 2026, unless extended by the State.
PUBLIC OUTREACH:
An announcement was made at the end of the January 27, 2025, second community workshop presentation that a special meeting was being planned for, including an email to task force members with the same contents on January 28, 2025. A courtesy notice was published in The Beach Reporter on February 27, 2025, and an email was sent out to all interested parties, including task force members, notifying them of the scheduled discussion before the City Council. Additionally, this report will be uploaded to the City’s dedicated outdoor dining webpage. As of the writing of this report, staff received no public comments.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the discussion and direction from Council is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. However, the long-term outdoor dining program as well as the associated code and policy amendments are subject to CEQA and will be analyzed prior to said activities being brought back to City Council for consideration.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Preliminary Plans (Incl. Conceptual Construction Phasing Plan)
2. Preliminary Plan Cost Estimate
3. Stakeholder Interview Memo
4. Fiscal and Economic Impact Findings
5. Parking Strategy Analysis
6. Community Workshop No. 2 Memo
7. Council Direction Matrix for Future Plans
8. Outdoor Dining Task Force Members and Alternates
9. Votes on Outdoor Dining Task Force Recommendations
10. Dates of Outdoor Dining Task Force Meetings and City Council Meetings Related to Outdoor Dining
11. City Council Status Update Report No. 1 (September 5, 2023)
12. City Council Status Update Report No. 2 (February 20, 2024)
13. City Council Status Update Report No. 3 (April 16, 2024)
14. City Council Status Update Report No. 4 (October 1, 2024)
15. PowerPoint Presentation