HomeMy WebLinkAbout03.a. Receive additional information requested by Committee at March 20, 2018 meeting regarding patio dining capacity fees Page 1 of 2
Item 3.a.
Central Contra Costa Sanitary District
April 24, 2018
TO: FINANCE COMMITTEE
FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE ADDITIONAL INFORMATION REQUESTED BY COMMITTEE AT
MARCH 20, 2018 MEETING REGARDING PATIO DINING CAPACITY FEES
On March 20, 2018, the Finance Committee received an initial presentation and staff recommendation for
a revised definition of when to impose patio dining capacity fees. The topic arose from a previous
mentorship project that had studied 31 restaurants. That study of a sample area, found that 65% of those
restaurants had patio areas and also had potential unpaid fees. The current practice is to assess capacity
fees for all food service establishments with patio areas including, seated restaurants, fast food take-out,
coffee shops and delicatessens; these capacity fees are calculated in the amount of$7,346 per 1,000
square feet of patio area.
Staff is recommending to revise the patio dining definition to be limited to seated restaurants only; the
causality of added sewer burden for fast food take-out, coffee shops and delicatessens is tenuous as
patio areas for these type of food service establishments is often for convenience and does not
necessarily contribute to the added burden. The Finance Committee asked to review real numbers before
a decision could be made.
Staff has reviewed all of the 880 food service establishments within the service area and determined that
approximately 56% or 496 are seated restaurants that would be required to pay capacity fees if they
expand into a patio area. Here is a summary of all the food service establishments:
Business Category Total
Bakeries (RB) 23
Banquet Facilities (RC) 14
Coffee Shops & Delis (RD) 207
Ice Cream Parlors (RI) 14
Bars (RN) 46
Restaurants Seated (RS) 496
Restaurants Take-out (RT) 72
Yogurt Shops (RY) 8
April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 4 of 192
Page 2 of 2
Subtotal 880
Staff also did a comprehensive review of 60 Seated Restaurants (RS)with patio dining to determine how
many were in unpaid status for capacity fees. This extensive effort included review of permits issued,
capacity use charge agreements, review of multi-use shopping centers to determine where property
manager had applied credits, food service files and historical research to determine if establishment fees
were grandfathered, having been paid under the previous fixture fee methodology. This research indicated
that of the 60 restaurants with patio dining, only 10% or six have unpaid capacity fees outstanding.
Typically, restaurants have patios which are less than 400 square feet in size. In reviewing the 60
restaurant sample study, the median size is 378 square feet with the average size 355 square feet. If an
allowance of 360 square feet of patio dining area was included in the definition for Seated Restaurants
(RS), then only two of the six unpaid restaurant patios in the sample would still owe capacity fees.
Staff would like direction from the Finance Committee prior to presenting to the full Board on the definition
of what criteria to consider in assessing patio dining capacity fees. There are currently three options to
consider:
1. Continue to assess all food service establishments patio dining capacity fees as prescribed in the
fee schedule.
2. Revise the definition to assess patio dining capacity fees only to Seated Restaurants (RS) and Bars
(RN); the following would be exempt: Restaurants Take-out (RT), Bakeries (RB), Banquet Facilities
(RC), Coffee Shops and Delicatessens (RD), Ice Cream Parlors (RI) and Yogurt Shops (RY).
3. Revise the definition to assess patio dining as described in Option 2 and provide for a 360 square
foot patio dining area allowance.
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage Costs
April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 5 of 192