Restaurant owners in Palm Desert concerned about proposed fee for outdoor dining deck permits

Update 5/2/24

A revised proposal will be brought to the city council for consideration during a meeting on May 23, city officials said.

The city said councilmembers requested that staff gather feedback on the proposed changes to the dining deck program, which was the topic of the meeting on March 29.

"Based on that initial feedback, staff is further digging into the topic. The City will be meeting with businesses that currently have dining decks and will be refining the proposed changes based on these upcoming meetings," a city officials wrote to News Channel 3.

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Original Report 4/30/24

Some restaurant owners in Palm Desert are concerned over the City's new guidelines for outdoor dining decks, often also known as parklets.

The city's updated Outdoor Dining Deck Temporary Use Permit program is set to take effect on July 1 and will require restaurant owners to submit paperwork along with a proposed fee in order to renew their permits.

Skip Paige, who owns Little Bar on Palm Desert Drive, has recently posted about the situation on the restaurant's social media pages.

Paige wrote that the changes "would virtually eliminate all dining decks on El Paseo and make the remaining decks unfeasible to operate."

On November 16, 2023, the Palm Desert City Council adopted changes to the Outdoor Dining Deck Guidelines. At that same meeting, the Council approved a two-year extension for the Dining Deck Program, in alignment with the state's extension which was signed int law October 8.

Below are highlights of the major modifications, per the City's website:

Insurance Requirements

Insurance limits should be at least $2M per occurrence, $4M general aggregate, and $4M products-completed operations aggregate.

• All endorsements must be attached to the certificate.
• All insurance documents are required to cover the entire length of the dining deck term.
• Dining Deck operator is required to submit updated insurance before expiration.

Administration and Compliance

• Implementation of quarterly dining deck inspections. A copy of the outdoor dining deck checklist is attached.
• If the operator does not comply within the documented time, removal of the dining deck will be requested.
• Any dining deck working to bring deficiencies up to standard will be inoperable until all deficiencies have been resolved and final approval from the City has been given.
• Any alterations or modifications must be submitted to the City’s Planning Department before commencing work.

Maintenance and Storage

• Business owners and outdoor dining deck operators shall keep the outdoor dining space clean and free of debris. Outdoor dining furniture, restaurant equipment, or appliances are not permitted to be stored in the outdoor dining space or in the public right-of-way.
• Advertising is not permitted. This includes logos, advertising, and other branding.
• The City’s Planning Department must be contacted regarding any minor/maintenance issues that arise. Outdoor dining deck operators will have 48 hours to draft a plan and timeline that addresses all issues.
• If the City determines that a dining deck is a safety hazard to either drivers or diners, the dining deck must be removed or repaired immediately. Any dining deck not repaired within 24 hours will be removed by the City, and all charges associated with the removal will be the responsibility of the business owner.

Aside from the updated dining deck guidelines, please note the following updates to the program:

• Current TUPs will be honored through the current program expiration of June 30, 2024.
• Outdoor Dining Deck Design Guidelines are effective immediately, thus the items outlined above become effective immediately as well.
• Quarterly Inspections will begin in January 2024.
• If you would like to continue operating your dining deck after June 30, 2024, you must complete a TUP application and revocable license agreement by May 1, 2024.
• TUP applications and revocable license agreements will need to be renewed again by May 1, 2025.

Ahead of the change being implemented, Skip Paige said staff for the city gave him and other restaurant owners a packet of information last Friday, which includes an annual permit fee "based on a per square footage rent, which is comparable to buildings, not comparable to parking lots," according to Paige.

City Council was shown a presentation where staff recommended a proposed dining deck fee, which could take effect July 1, 2024.

Paige said based on a formula he was shown, he'd have to pay the city around $12,000 to renew his dining deck permit for another year, which he called "unfair." He added that he'd "like to see a reasonable fee that is somewhere less than what we're paying for the actual building structure."

Thomas Soule, Publics Affairs Manager for the city of Palm Desert, told News Channel 3 that the fees are not set in stone and Council has yet to take formal action on them. Council could discuss the matter at the May 23 Council meeting. Currently, there is no application fee.

Sally Hill, who owns Sweet Basil California Eatery on El Paseo, said not only is she concerned with the high proposed cost of permit renewals, she is also concerned with plans by the city for a street repaving project, which would require every restaurant on El Paseo to tear down their dining decks by June 1.

Hill said she was told dining decks on this street would be able to be rebuilt by September. However, she would like the City to delay its repaving project until 2026, which is when a state law allowing dining decks expires.

Hill said building the dining deck was costly and she and her husband have invested a lot of money into the patio. "I don't know that this business will sustain without the patio. Its a very small dining room I have. I opened with this patio," according to Hill.

News Channel 3 has reached out to city staff for information regarding the new outdoor dining deck guidelines and fees and is waiting to receive the information.