On April 14, 1998, the City Council authorized the City Manager to negotiate and execute a contract with Larkin/Lamb Associates for the preparation of a citywide sign inventory. The inventory is complete in database form and affected signs have been identified. For each sign, there are separate data fields and a corresponding photograph(s). The data includes identification of the business name as recorded on business license information or as displayed at the site, the square footage of each sign, the type of sign, and its status as a conforming or nonconforming sign. The data also provides historical information regarding sign permit and sign adjustment approvals for the non-conforming sign types identified in Section 9.52.210(d).

ANALYSIS

Citywide Results of the Survey

There are 8,126 signs in the City of Santa Monica. Of those, 1,124 are nonconforming signs subject to Section 9.52.210 (d), which include:

California Business and Professions Code Sections 5490-5497 limit the extent to which cities can regulate "on-premises advertising displays." Section 5491 states that "no on-premises advertising display…shall be compelled to be removed or abated . . . without payment of fair and just compensation." There are a number of statutory exemptions to the requirement of just compensation. For instance, a city can require that signs located in redevelopment project areas be removed without providing compensation. Additionally, compensation is not required for signs which meet all of the following: (a) the display is located within an area shown on a local general plan as being residential, (b) the display is located in an area zoned for residential use, (c) the display is not required to be removed due to an overlay zone, special sign zone, or other special zoning district, and (d) the display is allowed to remain in existence for a fifteen year period from the date of the adoption of a local sign ordinance.

Signs In Redevelopment Areas

A total of 596 of Santa Monica's nonconforming signs are located in redevelopment areas (Attachment B). Of these nonconforming signs, 377 are freestanding signs, 92 are roof signs, 24 are upper level signs, and 103 are projecting signs.

Signs in Residential Areas

A total of 84 of Santa Monica's nonconforming on-premises signs are located in residential areas. Of these, 73 are freestanding signs, 6 are roof signs, 4 are projecting signs and 1 is an upper level sign.

As stated, State law provides certain other exceptions to the compensation requirement. Staff is assessing whether any of the City's nonconforming signs fall within these other exceptions.

Different state statues regulate billboards. Pursuant to Business and Professions Code Section 5412, compensation is generally required before a billboard must be removed. As with on-premises signs, however, there are several exceptions to this compensation requirement, although these exceptions tend to be more limited. Staff is reviewing whether any of these exceptions apply to the limited number of billboards in the City.

Notification of Business and Property Owners

Phase II will consist of the following steps to ensure that business and property owners are appropriately notified:

Notification of affected business and property owners. Staff is prepared to send the notification in Attachment F in early April. Each notification letter will indicate the category of nonconforming sign(s) together with a copy of the photograph of the nonconforming sign. Additionally, staff has worked collaboratively with the Chamber of Commerce in an effort to minimize the impact of compliance on businesses, and to provide them a clear direction and unambiguous process. To this end, the notification packet will include a separate letter from the Chamber to convey this collaboration.

Outreach to the business community. Since early 1998, the Santa Monica Chamber of Commerce has participated in discussions regarding the sign inventory and the requirement to remove nonconforming signage in April 2000. The Chamber of Commerce has created a Sign Enforcement Task Force to address business concerns regarding the removal of nonconforming signs. The City Planning Division, as part of an objective in the 1998/99 budget, included funding to contract with a consultant who is attuned to the needs of the business community and with the ability to act as liaison between the business community and the City process. The consultant will make presentations to various business groups, the Chamber of Commerce, and local merchants= groups and will be available from the time the first letters are sent through the entire processing period.

Second Notification Letter. A reminder letter will be sent out to property and business owners in late September 1999, approximately six months prior to the conformance date with detailed information regarding the application procedure to obtain approval of new or modified signs.

Process for Removal of Nonconforming Signs and Approval of New or Modified Signs

Since the adoption of the 1985 Sign Code, staff has advised ARB applicants of the requirements for removal of nonconforming signs. Under the current Sign Code, businesses have planned their sign programs with the understanding that any nonconforming signage specified in Section 9.52.210(d) is required to be removed or modified by April 2000. The Sign Code allows nonconforming signs to be refaced until the conformance date, if the sign has not been abandoned for more than 90 days and the sign was not remodeled, except for normal repair or maintenance.

In addition, the application forms for new business licenses and business license renewals given to all business owners have contained a notice regarding the year 2000 conformance for nonconforming signs every year since the 1997-98 fiscal year.

The Planning Commission discussed the process for removal of nonconforming signs at their February 10 and 17, 1999 meetings (Attachment C). The Planning Commission expressed the need to establish a clear and timely process for business and property owners to follow in removal, modification and replacement of signs. The Planning Commission also expressed the need to provide adequate education regarding the process to give business and property owners ample opportunity to conform to the Sign Code with the least amount of negative impact on their business. The Planning Commission was concerned with the large number of signs that will require some sort of City processing and suggested that either a lottery system be implemented to determine the order of review, or that the city establish an administrative process to review sign applications.

Staff expects a substantial increase in the number of sign applications associated with bringing 680 nonconforming signs into conformance (596 in redevelopment areas and 84 in residential areas). Applications for new signage or modified signage must be reviewed and approved. For some businesses with multiple signs, conformance may be as simple as removal of one sign. For businesses with multiple nonconforming signs or whose only signage is nonconforming, approval of new conforming signage will be necessary.

Some business owners may request approval of a sign adjustment to retain their nonconforming signs. Two findings must be made to grant a sign adjustment: (a) that the strict application of the Sign Code would result in practical difficulties or unnecessary hardships inconsistent with the general purpose and intent of the Sign Code or that there are exceptional circumstances or conditions applicable to the proposed sign that do not apply generally to other signs and (b) that the granting of a sign adjustment would not adversely affect public safety or public welfare and would not be detrimental or injurious to property and improvements in the surrounding area, and that the sign will be harmonious with the site. Staff believes that only a small number of nonconforming signs will meet the required findings for an adjustment.

Planning staff is working to develop a recommended procedure for approval of replacement signage or modification of nonconforming signs. Staff expects to bring this recommended procedure to the City Council in early summer.

Contract Amendment

Establishing the procedure for replacement signs, together with the thorough notification process outlined above, will require additional professional services on the part of Larkin/Lamb Associates. Larkin/Lamb's original contract amount was $80,000. The additional services are beyond this original scope of work. These additional services are estimated not to exceed $25,000. Funds exist in the current budget FY 98/99 to provide funding for this phase of the project.Meritorious Signs

In February 1998, the Planning Commission expressed concern that there may be nonconforming signs worthy of preservation due to their historic, cultural or aesthetic merit. In discussion, the Planning Commission referred to these potentially significant signs as Ameritorious." The Planning Commission requested that the Architectural Review Board and the Landmarks Commission consider possible criteria for a meritorious sign category and return to the Planning Commission with their recommendations. The recommendations of the Architectural Review Board and Landmarks Commission to the Planning Commission and the subsequent Planning Commission recommendations are included as Attachments C, D and E. The following summarizes their comments:

Architectural Review Board (ARB)

Use a procedure similar to a variance application, with the ARB as the decision-making body.

In order for a sign to be eligible to qualify for consideration as a meritorious sign, it must fall within at least two of the following categories:

1. Historical/dated and antique or aged signs

2. Techniques and craftsmanship

3. Icons

4. Integral

5. Beach signs

If the sign fits into two or more categories, the application would be brought before the ARB, or Planning Commission on appeal, and at least one of two findings must be made in order to approve the meritorious sign and allow preservation of the otherwise nonconforming sign:

The sign is well designed, well-constructed and aesthetically pleasing, contributes to the overall image of Santa Monica as a place of beauty, creativity and individuality, or contributes to the visible and historic built environment . . ..

The sign has an inherent character or quality which may be considered aesthetically quirky, funky, representative of pop art or humorous and contributes to the overall image of Santa Monica as a place of interest and folklore, exhibiting distinct visual or textual examples of social and cultural development . . ..

Meritorious sign designation should not require the sign to be preserved without the business owner's approval.

Landmarks Commission

• Focused on historic signage
• Recommended that historic signs be addressed in a manner similar to the City of Pasadena=s ordinance for designation of historic signs
• Suggested modification of the Pasadena ordinance by adding a provision for the Commission's historical significance review of nonconforming signs installed prior to 1975 (rather than 1960 in the Pasadena ordinance).
• Recommended at least one of two criteria listed in the Pasadena ordinance must be met in order to designate a sign as historically significant:

1. The sign is exemplary of craftsmanship, design, or style consistent with the period during when it was constructed. If the sign has been altered, it must be restorable to its historic function and appearance.
2. The sign possesses extraordinary aesthetic qualities, creativity or innovation, and findings to that effect are made to the Landmarks Commission.

Planning Commission

• Criteria should focus more on the specific design of the sign and less on the materials used to fabricate the sign.
• Limit the extent to which techniques and craftsmanship and icons are used as criteria for meritorious signs.
• Nonconforming signs should be considered on their individual design merit
• Signs categorized as icons should be limited to signs whose businesses are unique to Santa Monica or Southern California.
• Use Pasadena criteria of any sign installed prior to 1960
• Important to establish clear definition of a meritorious sign and identify potential meritorious signs early in the process to eliminate any false hope on the part of business owners that their sign could remain due to its meritorious status.
• The number of meritorious signs is relatively small, possibly as few as 20 signs.

Although no exact number has been determined yet, staff agrees with the Planning Commission that the number of potentially meritorious signs is small. To properly identify and fairly evaluate meritorious signs, staff will retain an expert in the field of signs and environmental graphics within the next two months. This expert will help to identify unique or meritorious signs.

Staff has synthesized the input of the Planning Commission, ARB and Landmarks Commission and reviewed the sign codes of several cities, including West Hollywood, Riverside and Pasadena. Based on this synthesis and further review, staff proposes the following criteria for designating meritorious signs:

A sign shall/may be designated as "meritorious" if the sign was installed prior to January 1, 1960, and meets one or more of the following criteria:

1. The sign exemplifies technology, craftsmanship or designs of the period when it was constructed, and may contain neon, unusual lighting techniques, hand painted lettering or graphics or sculpted elements.
2. The sign is an icon representative of a certain era or generation of popular culture that exemplifies the history, ideals, or particular aesthetic of the City of Santa Monica and/or southern California, including inventive representation of the use, name or logo of the building or business; or
3. The sign is integrated into the architecture of the building or enhances the architecture of the building.

Staff recommends that the Council establish a streamlined review and designation process for meritorious signs. Given the complexity of the issues, staff proposes that the City Council establish a review board composed of the following five representatives:

• Member of the Architectural Review Board (appointed by the Board)
• Member of the Landmarks Commission (appointed by the Commission)
• Member of the Planning Commission (appointed by the Commission)
• Member of the business community (recommended by the Executive Committee of the Chamber of Commerce)
• Community representative at-large (appointed by the Council)

The Review Board would identify all the signs eligible for meritorious designation at one time. Once the list is established, all business and property owners will be sent the list of meritorious signs and advised of the application procedure for a meritorious sign if they feel a sign was overlooked. The list will then be certified by the Planning Commission, appealable to Council. By September, when the second notification letter is sent, all potential meritorious signs will have been reviewed and, if appropriate, designated. The Meritorious Sign Review Board would be dissolved after the final designations have been certified.

Should Council agree to the process outlined above, staff will return within the next 90 days with ordinance amendments to implement the process.

BUDGET/FINANCIAL IMPACT

If compliance is required citywide, those property owners and businesses located in commercial areas, and outside redevelopment areas, must be compensated for the cost of removal and replacement of signage. Depending on how costs are estimated, the funds required to compensate these business and property owners would be significant. The City Council appropriated $200,000 in FY 98/99 in account 01-210-266-00000-5506-00000 with which to fund Phase II (current phase) of the sign project. As noted above, Larkin/Lamb Associates' scope of work will require a contract amendment in order to establish the procedure for replacement signs and implement the notification process. This amendment is estimated at $25,000. This contract amendment would be funded through the FY 98/99 appropriation. Staff recommends that the City Council authorize the City Manager to negotiate and execute a contract amendment with Larkin/Lamb not to exceed $25,000. Staff are evaluating the possible need for additional funding to be included in the City's Proposed Budget for FY 1999/00.

RECOMMENDATION

It is recommended that the Council:

1. Provide input on the meritorious sign criteria
2. Direct staff to initiate an amendment to the Sign Ordinance to exclude meritorious signs from the requirements of Section 9.52.210 (d) and create the designation and certification process for meritorious signs.
3. Authorize the City Manager to negotiate and execute a contract amendment with Larkin/Lamb Associates not to exceed $25,000.

Prepared by:

Suzanne Frick, Director

Jay Trevino, AICP, Planning Manager

David Martin, Senior Planner

Susan Healy Keene, AICP, Associate Planner

City Planning Division Planning and Community Development Department

Attachment A: List of Nonconforming Signs Citywide

Attachment B: List of Nonconforming Signs in Redevelopment Areas and Residential Areas

Attachment C: Memo from Planning Commission re: Recommendations on Process of Removal of Nonconforming Signs and Recommendations on Criteria for Meritorious Signs

Attachment D: Memo from ARB re: Meritorious Signs

Attachment E: Memo from Landmarks Commission re: Meritorious Signs

Attachment F: Draft Letter to Business and Property Owners