The City of Rocklin currently has a Business Support Program (Program) in place that:
(1) suspends the enforcement of the City’s temporary promotional sign ordinance,
(2) provides flexibility regarding late payment of business license renewal taxes,
(3) authorizes the Police Chief to extend the deadline for collection of massage establishment permit fees,
(4) waives permit and inspection fees for outdoor operations implemented in response to COVID-19 (with the exception of Fire Department inspection fees), and
(5) approves continuation of the City’s “Shop Local” campaign in partnership with the Rocklin Area Chamber of Commerce.
The Program was implemented to assist businesses struggling with the impacts of COVID-19 and the operational restrictions placed on the local economy. It was originally approved in May 2020, extended in August 2020, then extended again in January 2021. The January 2021 extension required that the Program be brought before City Council for further consideration at the meeting following termination of the City’s declaration of local emergency related to COVID-19, which occurred on June 22, 2021.
With the end of California’s Blueprint for a Safer Economy and nearly all business sectors now able to operate without restrictions, some or all sections of the City’s Program, in their current form, may no longer be necessary.
Summaries of the impacts of the different sections of the Program are outlined below for consideration by the City Council:
Non-Enforcement of the Commercial Sign Ordinance. A large number of businesses took advantage of the suspension of enforcement of elements of the commercial sign ordinance when it was first implemented, through its extension in January, 2021. Today, additional signage allowed under the non-enforcement program in the Rocklin business community has decreased, coinciding with the end of California’s Blueprint for a Safer Economy operations restrictions, allowing businesses to fully open; however, there are still businesses with signage that is not in compliance with the City’s commercial sign ordinance.
If the City Council directs staff to wind down this section of the Program, staff recommends providing notice that the program will continue for an additional 90 days to allow businesses time to transition. Following the 90 days, enforcement of continuing violations would follow the traditional code enforcement process, beginning with a courtesy notice, followed by a notice of violation and then into the citation phase, if the issue was not resolved.
Business License Permit Late Fee Waivers. As of June 30, 2021, 416 businesses had availed themselves of fee waivers for late business license renewals, resulting in approximately $6,000 in waived fees. Overall, annual business permit revenues saw nearly no change when comparing Fiscal Year (FY) 2020/21 to the previous year, FY 2019/20, with most businesses paying for the renewal of their licenses after having fees waived.
If this section of the Program were designated to end, staff recommends ending fee waivers for late payment of business license renewal fees immediately for any business that has not already contacted the City about a hardship.
Massage Establishment Permit Fees Deadline Extension. As of June 30, 2021, no Rocklin massage establishments had requested deadline extensions for payment of permit fees. The Rocklin Police Department does not anticipate a need for this section of the Program moving forward.
Temporary Outdoor Operations Permitting. The temporary outdoor operations permitting and dining program may have been the most impactful section of the Program, as well as the section of the Program that conflicts most with other important ordinances and practices designed for the safety and stability of the community.
To date, approximately 40 restaurants, and a few other business types, have implemented some type of temporary outdoor operation at their establishment. At least twenty businesses have ceased their temporary outdoor operations after the full reopening of the economy.
Active temporary installations range from easily removable items (umbrellas, tables and chairs under existing awnings) to more long-term installations such as large, fenced in tents, wood decks, and other more substantial structures. During the warmer months, the tents and shade structures provide respite from the sun. During the winter, the cooler temperatures bring additional challenges in maintaining a comfortable environment for customers while meeting temporary permitting requirements.
Some of the current temporary operations have applied for and received temporary permits, but many have not completed the process.
The Rocklin Fire Department has performed cursory reviews of the current temporary outdoor operations at various points over the past year and is not aware of any apparent life-safety violations. However, the temporary nature of the outdoor dining operations presents challenges. Many of the tents are designed for special events, and not meant to be permanent in nature. Additionally, the space heaters that many restaurants use during the winter months could cause very unsafe conditions if not properly installed and operated.
California has extended its regulatory relief that allows restaurants and bars to maintain their expanded outdoor operations until Dec. 31, 2021, allowing expansion of licensed restaurant footprints, expanded outdoor alcohol service, and the sale of alcoholic beverages to go. Governor Newsom has also encouraged cities to continue to allow and support expanded outdoor dining options in a letter published online and sent to municipalities.
Outdoor dining operations have allowed establishments to potentially reduce the spread of COVID-19 by providing air flow and space for social distancing. The operations have also allowed customers to feel safer, helped restaurants stay in business, and could assist restaurants and bars in recovery as the pandemic subsides. However, staff recommend that if the expanded outdoor dining program is continued it is modified to enhance safety and code compliance.
Options for the City Council’s consideration are as follows:
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Discontinue the temporary outdoor dining program after a specified date. If the City Council directs staff to wind down this section of the Program, staff recommends providing notice that the program will continue for approximately 90 days (November 1) to allow businesses time to transition. This timeframe will also ensure that the temporary outdoor structures are removed prior to the weather significantly changing, which is when it is more likely that space heaters would be deployed. As the temporary program is discontinued, direct staff to create a streamlined program to permit applicants for permanent outdoor dining expansions, and to set aside funds from the City’s American Rescue Plan Act allocation to cover some or all of the permitting costs. Applicants would be required to follow all building and fire codes and the Rocklin Municipal Code (RMC), and obtain property owner consent, but would be provided expedited plan review.
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Discontinue the program, effective November 1 as indicated above. However, instead of allowing for a streamlined program to permit permanent outdoor dining installations, direct staff instead to create a seasonal temporary outdoor dining policy that would be implemented next spring, allowing restaurants to expand their outdoor usage for a set period of time, following all applicable building and fire codes, and the RMC, with property owner consent. Provision of alcoholic beverages in the expanded space would be contingent on the State continuing to allow for expanded outdoor alcohol service past the end of the calendar year.
Shop Local “We’re Open” Campaign and Other Support. In June 2020, the City and the Chamber of Commerce partnered on the “Come in Rocklin, We’re Open!” campaign to support the business community with toolkits including posters, window and floor decals, lawn signs, posts and graphics for social media, and other materials for businesses to notify residents of reopening, and communicate COVID-19 safety protocols. Staff does not anticipate a need to continue this section of the Program.
Initial Funding Sources. Activities were initially paid for through the City’s advertising and promotional budget. In October 2020, a total of $149,952.46 in Rocklin CARES Act funding was awarded to nearly 50 Rocklin restaurants as part of the Restaurant Assistance Program. In the spring of 2021, approximately $170,000 in Placer County CARES Act money was also awarded to nearly 175 Rocklin businesses through the Keep the Lights on Program.
Next Steps. The City will receive almost $7 million in Federal American Rescue Plan Act (ARPA) funds. Local business support programs are an eligible use for the ARPA funds. Strategies for use of these funds, including business support, are being developed for presentation to City Council for discussion. Based on the City Council’s direction, staff will include any eligible Business Support Program continuation items into the presentation on the potential uses of the City’s ARPA allocation. Staff anticipates this item will be brought to the City Council in late August or early September.
Additionally, based on direction received, staff will prepare formal authorizing resolutions as needed, and return to the City Council for formal consideration. Actions that do not require formal authorization in order to move forward will be immediately implemented.