The chickens have come home to roost on fees for parklets as we noted last month here. The council went with a $250 per month cleaning fee in addition to the $1,500 annual rental fee. Per the Daily Journal article there was some discussion along the lines of what we noted last month about Broadway perhaps being a lower fee than the Avenue, but that did not come to pass. It was unanimous. I was in contact with John Kevranian who heads the Broadway Business Improvement District ("the BID") and I asked if I could publish his whole letter to the Council since I believe it explains very well the state of small businesses on B'way and more generally. Here's the full letter:
Dear Mr. Mayor, Vice Mayor and City Council members,
I have been asked by my Broadway BID members to convey our position in regards to the parklet owners sidewalk cleaning fee. We on Broadway are Not in support of the recommended city staff report on sidewalk cleaning fee of $250 per month.
Some of you may perceive and have the impression that our restaurants are doing very well. Well, the bottom line is, they are not doing the business they had pre-Covid. The staffing shortages, increased cost of products, and supply chain issues have taken a toll to their bottom-line profit. Also, I would like to remind all of you that the majority of the business landlords did not discount rent the past 22 months during the pandemic.
This year, the increase in minimum wage, sewer rate increases, extra cost of composting, new food-to-go container mandates in March 2022 and other cost increases in the food industry will take a chunk of profit away from our restaurants. Also, not to mention Covid issues and less indoor dining.
The cleaning fee of $250 has to come from somewhere such as reducing the hours of workers or increasing prices on customers. The cost of chicken has tripled and the cost of beef and other products have skyrocketed. How much can you increase on a customer?
Over the past 2 years, I have convinced my Broadway BID board of directors to waive our assessments (2 years' worth $54,000) to help save our businesses. I approached San Mateo County Supervisor Dave Pine to have the county waive the Environmental Health Department fees county wide for 1 year totaling $5.8 million, and I was successful with my request. I have done everything possible to save these merchants expenses, so they can survive during the pandemic and after.
Businesses who have Parklets and outside seating are being targeted with federal lawsuits for ADA noncompliance. So far, I have 3 Broadway BID members who have received the lawsuit. The plaintiff's attorney will not settle for less than $10.000 and also the cost to remediate the violation.
I respectfully ask the entire council Not to adopt this program.
Best Regards,
John Kevranian
President
Broadway Burlingame Business Improvement District
John also researched the Covid relief funding that the City has received and reports that it was $371,871 from the CARES Act and is estimated to be $5,814,178 from the American Rescue Plan allocation. As I noted in the comments to the December post, my surveying of restauranteurs about the additional fees has yielded split views. Some will pay thinking they have little choice and others will give up the parklet. John asked that I also publish the joint email address for the Council in case you want to weigh in even after the vote. It is [email protected].
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