City Council Report
City Council Meeting: February 26, 2013
Agenda Item: 3-J
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: License Agreement for Private Encroachments into the Public Right-of-Way at 1401 Ocean Avenue
Staff recommends that the City Council authorize the City Manager to negotiate and execute a 10-year license agreement with King’s Seafood Company LLC, with option to renew for two additional 5-year terms, for existing landscaping and the construction of a concrete stairway and access ramp in the public right-of-way on Ocean Avenue for an area up to 490 square feet and charge fees for the net increase in encroachment area up to 150 square feet in the amount of $3,636 annually.
King’s Seafood Company LLC proposes to remodel an existing restaurant space in the Portofino Plaza at 1401 Ocean Avenue. The proposed scope of work along Ocean Avenue includes a façade remodel, landscape modification and permanent entry improvements in the public right of way. The improvements that are proposed to be constructed in the public right of way will not exceed 490 square feet. Staff recommends the City enter into a 10-year license agreement with King’s Seafood Company LLC for a total encroachment area up to 490 square feet and charge fees in the amount of $3,636 annually for the net increase encroachment area up to 150 square feet of private concrete stairway and access ramp in the public right-of-way.
On December 12, 2012, a plan check application was filed to remodel an existing restaurant space at the Portofino Plaza on 1401 Ocean Ave (former Ocean Avenue Seafood). The proposed scope of work includes remodeling the dining and kitchen area, exterior walls, reconfiguring existing sidewalk planters, stairway and access ramp to the public sidewalk.
On January 1, 2013, an Architectural Review Board (ARB) application was filed for the façade remodel and modification to the landscape planters at the existing restaurant space of the Portofino Plaza facing Ocean Avenue. This application will be considered by the ARB on February 21, 2013.
The existing restaurant space at 1401 Ocean Avenue currently has three semicircular planter areas in the public right of way. The existing encroachment is 340 square feet in area. The improvements that are proposed to be constructed in the public right of way are as follows:
Landscaping (existing planters reconfigured with no new sq. ft.) 340 square feet
Concrete stairway, landing and ADA accessible ramp 150 square feet
Total new encroachment 490 square feet
The net increase in encroachment area is 150 square feet (490 SF – 340 SF). The proposed plan provides improved access and an enhanced presence on Ocean Avenue and does not adversely affect the current adequacy of the sidewalk area for pedestrian use. The encroachment will provide for a sidewalk width of at least eight feet.
Current municipal codes and City ordinances do not provide staff with the authority to permit, license or charge a fee for the proposed improvements in the public right of way. A study session regarding a wider variety of private improvements placed within the public-right-of-way is anticipated to be on a March or April Council agenda.
Staff recommends that the City enter into a 10-year license agreement with the property developer, King’s Seafood Company LLC (Developer), with option to renew for two additional 5-year terms, and charge an amount equal to the outdoor dining fees for Ocean Avenue of $2.02 per square foot per month for the private improvements encroaching into the public right-of-way. In consideration of the existing encroachments, staff proposes to assess fees only for the net increase in encroachment area resulting in an annual license fee of $3,636 beginning in FY 2013-14.
In addition to specifying the value, the license agreement would contain maintenance and insurance requirements, and require the Developer to indemnify and hold-harmless the City of Santa Monica from any lawsuits, damages, or losses associated with the improvements. The Developer would also be required to remove any improvements within the public right-of-way at their sole expense and without recourse, should the City have any future need of the encroachment area for transportation or utility improvements. The encroachment rights granted to the Developer would commence upon the effective date of the license agreement and continue for 10 years. Should any tenant who occupies the area that benefits from this improvement change over the term of the license agreement, the property owner or new tenant shall be responsible for the terms of the agreement for the remaining duration of the agreement or for the removal and restoration of the sidewalk for the entire affected area within the public right-of-way per City of Santa Monica requirements.
The license agreement would begin in FY 2013-14 and would provide $3,636 in annual revenues at account 01402.401810. Revenues will be included in the proposed FY 2013-15 budget.
Exhibit B – Rendering of Proposed Improvements in the Public Right-of-Way