San Rafael — The City Council on Aug. 18 approved changes to streetery and sidewalk dining fees intended to encourage more downtown outdoor dining and reduce administrative barriers for small businesses.

Why it matters: Downtown outdoor dining is presented by staff as an economic-vitality tool that increases pedestrian activity and supports local restaurants. Staff said fees and insurance requirements implemented after the pandemic were a barrier to participation and that lowering certain costs and streamlining review would bring more businesses back to outdoor dining.

What council approved: The council adopted a resolution revising street and outdoor sidewalk dining fee categories and structures in the city’s master fee schedule. Key changes include reducing the one-time streetery application fee closer to existing sidewalk-dining fees, eliminating a one-time deposit that had been required to secure removal of streetery infrastructure, providing a temporary 50% reduction in the encroachment lease fee for one- and two-space streeteries for two years, and adding an annual inspection and insurance review fee of $310 for all outdoor dining permits.

Staff estimates and examples: Staff reported that San Rafael had 32 active outdoor dining operations during the COVID-era peak, falling to as few as six streeteries in 2024. Under the proposed fees a one-space streetery’s first-year cost would fall from roughly $7,991 to about $3,737, with annual renewals covering the encroachment lease and the inspection/insurance-review fee.

Staff and process changes: City staff said they had adjusted the internal review process so that Community & Economic Development will now centrally handle outdoor-dining and streetery applications (rather than dispersed reviews), and reduced insurance umbrella requirements to lower premiums for small businesses. Director Micah Hinkle said the city’s goal is to increase participation while maintaining public-right-of-way safety and ADA compliance.

Council reaction and vote: Council members supported the change as an economic-support measure. The council voted 4-0 to adopt the fee revisions and authorize the incentives.

Ending: Staff said it will monitor program participation and compliance and may adjust fees and procedures over time if needed.