Encinitas council approves CPI increase to outdoor dining parking-space fee

The Encinitas City Council unanimously approved a 3.1% increase to the city’s outdoor dining right-of-way usage fee on a motion during its September meeting, raising the rate from $2.50 to $2.58 per square foot per month.

Senior Planner Evan Jed Mac told the council the increase follows the city’s prior direction to adjust the fee annually in line with the San Diego Consumer Price Index; the 2024 CPI for the region was 3.1 percent. The fee applies to private use of public parking spaces for outdoor dining under the temporary outdoor-dining authority the council extended last year under Assembly Bill 1217.

Public comment was mixed. Molly Hentlian (District 2) urged the council to end AB 1217-era rights-of-way uses and argued that permanent parking conversions for restaurant dining harm daytime retail and create safety and visibility problems; other speakers and councilmembers noted that many businesses support outdoor dining and that policy changes should follow public outreach. City Manager Campbell said staff is drafting an ordinance and will publish it for public comment, hold community meetings and bring the item to the Planning Commission early next year for a recommendation to council, with final council action expected before the current program’s July 1, 2026 expiration.

Councilmember Jim O’Hara moved the fee adjustment and Deputy Mayor Lyons seconded. The motion passed unanimously. Councilmembers stressed that tonight’s action only adjusted the rental fee; broader policy questions about permanent right-of-way conversions and block limits will be considered in the ordinance and outreach process.

Staff clarified next steps: finish and publish a draft ordinance for at least three weeks of public comment, hold community meetings with affected business districts, present the ordinance to the Planning Commission for a recommendation, and return to the council for any final policy decisions in advance of July 1, 2026.