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The Parklet Permit would be approved if it complies with the Parklet Program Guidelines discussed above. If the Parklet Permit is approved, the applicant would then need to secure an Encroachment Permit with the Engineering Department —the Encroachment Permit is a standard authorization to a private entity to perform work in the public right-of-way, and/or to maintain private infrastructure in that area. An on-going Parklet Agreement and proof of insurance coverage, subject to annual renewal/verification, would also be required. The applicant would be responsible for acquiring all necessary City permits, installation of the parklet, and on-going maintenance of the parklet and surrounding area. If at any time the parklet applicant relocates (e.g., the property ownership changes or the business moves), the applicant must transfer the Parklet Agreement to a new applicant or remove the parklet. This process mirrors the existing requirements for outdoor dining in the right-of-way. The Parklet Agreement will outline the expectations of the applicant regarding on-going maintenance of the parklet (discussed in the Maintenance section of this report above), transfer of ownership, liability/indemnification, and insurance requirements. Staff suggests annual renewal of the Parklet Agreement which will allow the City to ensure insurance is active, that there are no maintenance issues with the subject parklet, and there are no planned street improvements in the upcoming year (e.g., repaving Main Street) that might require the parklet to be removed. The agreement would specify that either the City or the applicant may terminate the Parklet Agreement, at which time the applicant would need to cease use of the City's public property and repair/restore the City's property as needed. Initial Permit and Annual Operational Fees The Parklet Program as drafted by staff, proposes an application fee, as well as an ongoing annual fee for operation of the parklet. Staff reviewed several existing parklet programs to determine the typical range of fees that are charged. Fees varied widely, ranging from a complete waiver of fees in some jurisdictions, to charging upwards of$10,000 (annually) in fees. The waivers exist for a variety of reasons including equity concerns, COVID relief, and initial/parklet start-up incentive. Some cities included cost recovery for revenue lost from parking meters, for additional street maintenance that is required, "leasing" City right-of-way, alongside typical permit processing fees. Staff's recommended fees are summarized in Figures 2 and 3 below, and the fee amounts are further described below. Parklets Planning Commission 9 of 12