Streetscape Licenses Streetscape Licenses Economic Development Economic Development Committee Committee April 21, 2014 April 21, 2014
Mar 31, 2015
Streetscape LicensesStreetscape Licenses
Economic Development Economic Development CommitteeCommittee
April 21, 2014April 21, 2014
22City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
PurposePurpose Follow-up to Council meeting January 22, Follow-up to Council meeting January 22,
20142014 Quality of Life reviewed proposal in June and Quality of Life reviewed proposal in June and
November 2013November 2013 Committee requested staff to move forward Committee requested staff to move forward
with reduced fee optionswith reduced fee options Encourage increased use of street amenitiesEncourage increased use of street amenities Encourage economic developmentEncourage economic development
City Council requested another briefing to City Council requested another briefing to Economic Development CommitteeEconomic Development Committee
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Why Accommodate Use of Right-of-Why Accommodate Use of Right-of-Way?Way?
Compliments Complete Streets Vision
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ExamplesExamples
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Why Licenses Are RequiredWhy Licenses Are Required
Home rule cities hold the right-of-way Home rule cities hold the right-of-way (ROW) in trust for the public(ROW) in trust for the public Public has the right of free and full use/ Public has the right of free and full use/
passagepassage City may or may not own underlying fee City may or may not own underlying fee
titletitle
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Why Licenses Are RequiredWhy Licenses Are Required
Licenses best fit the type of “rights” Licenses best fit the type of “rights” that can be granted in the right-of-that can be granted in the right-of-wayway Right to use; not an interest in landRight to use; not an interest in land TerminableTerminable Non-exclusiveNon-exclusive Not assignable without consentNot assignable without consent
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Why Licenses Are RequiredWhy Licenses Are Required State statute (Texas Transportation State statute (Texas Transportation
Code Section 316.001 et seq) Code Section 316.001 et seq) provides that:provides that: Governing body of city may permit use of Governing body of city may permit use of
ROWROW For decorative landscaping, sidewalk For decorative landscaping, sidewalk
cafés, ornamental features and street cafés, ornamental features and street amenities (like benches, water fountains, amenities (like benches, water fountains, bus shelters, planters)bus shelters, planters)
To abutting owner of underlying fee title To abutting owner of underlying fee title or tenant with permission to useor tenant with permission to use
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Why Licenses Are RequiredWhy Licenses Are Required State statute provides that State statute provides that
Governing body must find that:Governing body must find that: Encroachment into roadway or part of Encroachment into roadway or part of
sidewalk is not needed for pedestrian sidewalk is not needed for pedestrian use;use;
Encroachment will not create a Encroachment will not create a hazardous condition or obstruct travel;hazardous condition or obstruct travel;
Design and location of encroachment Design and location of encroachment includes reasonable planning to includes reasonable planning to minimize potential injury and minimize potential injury and interference.interference.
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Why Licenses Are RequiredWhy Licenses Are Required
Dallas City Charter and Article VI, Dallas City Charter and Article VI, Sec. 43 of the Code require license:Sec. 43 of the Code require license: Be granted by Council ordinance Be granted by Council ordinance To abutting property ownersTo abutting property owners Not be inconsistent with or Not be inconsistent with or
unreasonably impair public useunreasonably impair public use City retaining right to terminate as City retaining right to terminate as
necessarynecessary
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Why Licenses Are RequiredWhy Licenses Are Required Enables staff to perform due diligence Enables staff to perform due diligence
required by State and City statutesrequired by State and City statutes Confirms grant to appropriate partyConfirms grant to appropriate party Location and coordination with other uses in ROW Location and coordination with other uses in ROW
(especially utilities)(especially utilities) Insurance protection of public & CityInsurance protection of public & City Indemnification and defense of CityIndemnification and defense of City Confirm no hazards, interference, obstructions, etc.Confirm no hazards, interference, obstructions, etc. Removal from and restoration of ROW upon Removal from and restoration of ROW upon
terminationtermination
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Current ProcessCurrent Process
Applicant submits request along with:Applicant submits request along with: $750 non-refundable application fee$750 non-refundable application fee Field notes describing licensed area and a Field notes describing licensed area and a
measured drawing showing proposed usemeasured drawing showing proposed use Deed showing ownership, or tenant leaseDeed showing ownership, or tenant lease Written concurrence of abutting ownersWritten concurrence of abutting owners
1212City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Current ProcessCurrent Process City routes request to departments and City routes request to departments and
outside agencies / utilities for review and outside agencies / utilities for review and approvalapproval Any concerns must be addressed by applicant Any concerns must be addressed by applicant If concerns cannot be resolved, license does not If concerns cannot be resolved, license does not
progressprogress License fee determined through formula License fee determined through formula
based on assessed value or one-time feebased on assessed value or one-time fee Request submitted to City Council for Request submitted to City Council for
authorization by ordinanceauthorization by ordinance
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Typical Review Typical Review ConsiderationsConsiderations
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Key ConcernsKey Concerns
Accessibility and Accessibility and sidewalk clearancesidewalk clearance
City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Key ConcernsKey Concerns
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Detectability for Visually Impaired
Durability
Some design elements could diminish visual attributes of the public realm
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Why Fees are ChargedWhy Fees are Charged
Texas Constitution prohibits gifts Texas Constitution prohibits gifts of public funds exclusively for of public funds exclusively for private benefitprivate benefit There must be a definite public There must be a definite public
benefit to City articulatedbenefit to City articulated
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Why Fees are ChargedWhy Fees are Charged
Fees pay for staff time and resources spent Fees pay for staff time and resources spent discussing requests with applicants, viewing discussing requests with applicants, viewing details of proposed sites in the field, details of proposed sites in the field, reviewing field notes and designs to ensure reviewing field notes and designs to ensure compliance, drafting legal documents and compliance, drafting legal documents and preparing agenda items for City Council preparing agenda items for City Council considerationconsideration
Based on existing workload and fees, annual Based on existing workload and fees, annual license revenue into General Fund currently license revenue into General Fund currently funds these FTEs at $230,000funds these FTEs at $230,000
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Three Fee Approaches: Three Fee Approaches: Market-Based – past modelMarket-Based – past model
Until 2007, calculation based on assessed valueUntil 2007, calculation based on assessed value State law allows municipalities to receive market value State law allows municipalities to receive market value
(more than cost recovery)(more than cost recovery)
Partial Cost-Recovery – current modelPartial Cost-Recovery – current model In 2009, reduced fees based on pilot programIn 2009, reduced fees based on pilot program FY 13-14 Fee Study to include Real Estate license feesFY 13-14 Fee Study to include Real Estate license fees
Public Subsidy – model under considerationPublic Subsidy – model under consideration QOL Committee direction from June 2013QOL Committee direction from June 2013 Encourage public amenities and Complete Street goals Encourage public amenities and Complete Street goals
while meeting regulatory requirementswhile meeting regulatory requirements
1919City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
QOL Committee Direction:QOL Committee Direction:Café Sliding Scale; $250 for One-Time Café Sliding Scale; $250 for One-Time
FeesFees
Assumes Equal Requests for Café Assumes Equal Requests for Café SizesSizes
One-Time One-Time Streetscape Streetscape License Fee:License Fee:
$250$250
ANNUALANNUAL
Sidewalk Sidewalk Café Max. 3 Café Max. 3 Tables and 6 Tables and 6
ChairsChairs
$300$300
ANNUALANNUAL
Sidewalk Sidewalk CaféCafé
Max. 6 Max. 6 TablesTables
And 12 And 12 ChairsChairs
$600$600
ANNUALANNUAL
Sidewalk Sidewalk CaféCafé
7+ Tables 7+ Tables and and
13+ Chairs13+ Chairs
$1,000$1,000
Potential Potential Combined Combined One-Year One-Year Revenue Revenue Cafes & Cafes &
One-time One-time (Rounded)(Rounded)
Annual Annual
Projected Projected Streetscape Streetscape
Revenue Revenue
Based on Based on
Current Current Volume:Volume:
$15,000$15,000
(59 (59 streetscape streetscape elements)elements)
$22,800$22,800
36 total cafes36 total cafes
(12 of each size café)(12 of each size café)
$39,000$39,000 $201,000$201,000
Projecting aProjecting a
25% 25% Increase:Increase:
$21,000$21,000
(74 (74 streetscape streetscape elements)elements)
$28,500$28,500
45 total cafes45 total cafes
(15 of each size café)(15 of each size café)
$50,000$50,000 $212,000$212,000
2020City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Budget ImplicationsBudget ImplicationsAssuming 25% Increase in ApplicationsAssuming 25% Increase in Applications
Reduced fees with 25% increase in applications have potential to result in: Revenue reduction
Current streetscape revenue: $315,000 Potential revenue with reduced fees and sliding
scale for sidewalk cafés: $212,000 Reduction in annual revenue of $103,000
Increased workload May have staffing and associated cost
implications to the General Fund in addition to any lost revenue
2121City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Quality of Life Committee Quality of Life Committee RecommendationRecommendation
Revise City Code to allow two-year trial Revise City Code to allow two-year trial period of the following:period of the following: One-time license fees of $250 (vs. $1,000)One-time license fees of $250 (vs. $1,000) Sidewalk café fees to a sliding scale based Sidewalk café fees to a sliding scale based
on number of tables / chairs of $300 to on number of tables / chairs of $300 to $1,000 (vs. formula determination based on $1,000 (vs. formula determination based on square feet and appraised value, up to a square feet and appraised value, up to a maximum of $2,500)maximum of $2,500)
2222City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Next StepsNext Steps Establish and implement Sidewalk Café Establish and implement Sidewalk Café
Design Standards Design Standards Ensure accessibility and conformance with ADAEnsure accessibility and conformance with ADA Ensure adequate sidewalk clearance for Ensure adequate sidewalk clearance for
pedestrian traffic volumes at a particular pedestrian traffic volumes at a particular locationlocation
Minimize conflicts with other uses of the right-Minimize conflicts with other uses of the right-of-way (i.e. bus shelters) of-way (i.e. bus shelters)
Ensure design that enhances streetscapeEnsure design that enhances streetscape Ensure durability of proposed improvementsEnsure durability of proposed improvements
2323City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Next StepsNext Steps Survey all existing sidewalk cafes and Survey all existing sidewalk cafes and
determine which:determine which: Are illegal and need to be licensed or terminatedAre illegal and need to be licensed or terminated Meet design requirementsMeet design requirements Do not meet requirements and need to be Do not meet requirements and need to be
brought into conformancebrought into conformance Monitor impact of trial period on revenues Monitor impact of trial period on revenues
and expenditures for upcoming budget yearand expenditures for upcoming budget year
2424City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014
Council Action RequiredCouncil Action Required
Approval of amendments to Chapter Approval of amendments to Chapter 43 of the City Code to implement 43 of the City Code to implement proposed license feesproposed license fees