CITY PLANNING City f Ls Angeles CALIFORNIA PUBLIC WORKS VINCENT P. BERTONI, AICP OFFICE OF COMMUNITY BEAUTIFICATION PAUL K. RACS BUILDING AND SAFETY V: FRANK M. BUSH General Manager SUPERINTENDENT OF BUILDING ERIC GARCETTI MAYOR March 19, 2019 Ls Angeles City Cuncil c/ Office f the City Clerk City Hall, Rm 395 Ls Angeles, Califrnia 90012 Attentin: Dear Hnrable Members: TEMPORARY SIGNS ON TEMPORARY CONSTRUCTION SURROUNDING VACANT LOTS; WALLS AND FENCES On June 12, 2018, the Planning and Land Use Management Cmmittee (PLUM) cnsidered a prpsed rdinance t clarify regulatins regarding temprary signs n temprary cnstructin walls and n slid wd fences surrunding vacant lts. After discussin, PLUM cntinued the matter and instructed: 1. The Department f Building and Safety (DBS), with assistance frm the Department f City Planning (DCP), t reprt n mre detailed ptins regarding cnstructin wall requirements pertaining t temprary signs, including ptins fr perimeter walls arund larger prject sites. 2. DCP, with assistance frm the Department f Public Wrks Office f Cmmunity Beautificatin (OCB), t reprt n the verall efficacy f the graffiti abatement prgram, including past perfrmance; and reprt n ptins t further enhance City reprting requirements. 3. DCP, OCB and the City Attrney t reprt n recmmendatins n hw t quantify the value f temprary signs n cnstructin walls fr determining the benefits prvided t the City; including a discussin n whether the prgram participants can be cmpelled t share the data. BACKGROUND The prpsed rdinance, apprved by the City Planning Cmmissin (CPC) n May 25, 2017, clarifies regulatins pertaining t temprary signs lcated n temprary cnstructin walls and n wd fences surrunding vacant lts. Current regulatins were established as part f the Department f Public Wrks Graffiti Abatement Prgram in 2007 t prvide an incentive fr graffiti remval by allwing temprary signs in exchange fr maintaining the subject prperty and public prperty within the surrunding area free f graffiti and trash. Hwever, in recent years, sme ambiguity in the regulatins has resulted in enfrcement challenges. Examples f the issues encuntered are cnstructin wails erected that are nt required fr the cnstructin wrk underway and required cnstructin walls maintained lnger than necessary, primarily fr the
Page 2 intent f psting ff-site signs. The purpse f the prpsed rdinance is t clarify the regulatins t facilitate prper enfrcement. The fllwing are the key cmpnents f the prpsed rdinance apprved by the CPC and presented t PLUM: A permit fr a temprary sign n a temprary cnstructin wall can nly be issued when: there is a separate valid permit authrizing cnstructin wrk n site; at least a prtin f the temprary cnstructin wall is required fr public safety; and there is n perating business n the lt r lts n which the building underging authrized cnstructin is situated. If cnstructin wrk is suspended, discntinued, r abandned fr 6 mnths, the temprary sign permit becmes invalid. ADDITIONAL EVALUATIONS SINCE JUNE 2018 As part f the City s research fr this reprt, DCP and the DBS met with industry representatives t garner a mre detailed understanding f the industry dynamics. 1. Cnstructin Wall Requirement Temprary Cnstructin Wall Definitin As the prpsed rdinance is currently written, temprary signs are nly allwed n cnstructin walls if at least a prtin f the wall is required by Ls Angeles Municipal Cde (LAMC) t prtect pedestrian safety. Sme industry representatives expressed interest in expanding the prvisins s as t allw temprary signs n any cnstructin wall, whether it is required r nt, including thse erected fr security purpses. Recmmendatin: DCP recmmends n changes t the prpsed rdinance, and des nt recmmend that temprary cnstructin walls be expanded t include walls erected fr site security. The LAMC cntains n established criteria regulating when security walls are allwed. Therefre, allwing temprary signs n security walls culd result in a prliferatin f security walls erected fr the purpse f psting temprary signs n them. Operating Business Requirement The prpsed rdinance prhibits temprary signs n temprary cnstructin walls where there is an perating business n site. Sme industry representatives have advcated fr eliminating this prhibitin. Their ratinale is that businesses n large sites having multiple tenants wuld be prhibited frm participating in the prgram unless all the businesses n the site are clsed.
Page 3 Recm mendatins: DCP recmmends n changes t the prpsed rdinance, and des nt recmmend allwing temprary signs n temprary cnstructin walls n sites with perating businesses. The purpse f the prgram is t allw temprary signs as an incentive fr maintaining the subject prperty and public prperty within the surrunding area free f graffiti and trash. When a site includes perating businesses, the incentive t maintain the prperty already exists, thereby eliminating the need fr the incentives prvided by the prgram. Furthermre, since these temprary signs can generate a substantial amunt f revenue, allwing the signs in additin t ther nrmal business activity, can create an incentive t pst signs primarily fr the purpse f generating revenue, rather than fr the intended purpse f abating trash and graffiti. Allwing businesses t remain in peratin while participating in the prgram facilitates the use f the fence fr an unintended purpse and the prliferatin f unnecessary and unaesthetic fences fr lnger perids f time, which culd als adversely affect ther nearby businesses r residents. Allwing temprary signs n sites where there is an perating business wuld greatly increase the number f sites thrughut the City that wuld be eligible t pst temprary signs, effectively expanding the scpe f this prgram. Shuld the rdinance be mdified t allw temprary signs n temprary cnstructin walls n sites with perating businesses, DBS recmmends that the rdinance render the sign permit expired if cnstructin authrized by the building permit has nt cmmenced, r has been suspended, discntinued r abandned fr a cntinuus perid f 60 days. This wuld allw DBS t enfrce vilatins mre expeditiusly. Further, PLUM may chse t cnsider limiting hw far temprary signs may be lcated frm peratinal businesses. 2. Review f Graffiti Abatement Prgram The Graffiti Abatement Prgram allws temprary signs n temprary cnstructin walls r n slid wd fences surrunding vacant lt in exchange fr graffiti remval. The prgram was established t prvide an incentive t clean up cnstructin sites and/r vacant lts and their surrunding areas and maintain them free f graffiti and trash. Prgram participants are bligated t patrl a required cleanup area every 24 hurs t search fr graffiti and trash and remve it within 24 hurs f its discvery. The required cleanup area is a 500-ft radius arund the prperty prpsed fr the temprary sign; the cleanup area can be extended up t a radius f 1500 feet by OCB, depending n the presence f graffiti r trash. While cleanup is enfrced by OCB, currently n mandatry reprting is required t dcument cleanup perfrmed; DCP is aware f nly ne cmpany that vluntarily reprts the cleanup data t OCB n a regular basis. A few ther cmpanies prvide spradic reprts. Withut cmplete data frm all the sign peratrs, it is difficult t evaluate the efficacy f the prgram. Required mnthly reprting wuld quantify cleanup benefits, identify areas where cleanup culd be imprved and areas where the cleanup radius shuld be expanded, and wuld facilitate enfrcement. The prpsed rdinance prvides OCB with the authrity t establish administrative plicies and prcedures which wuld allw fr the enfrcement f mandatry mnthly reprting n cleanup effrts, as well as prvide additinal guidelines and requirements fr graffiti abatement effrts.
3. Page 4 Valuatin f Temprary Signs n Cnstructin Walls/ Fences Surrunding Vacant Lts DBS reprts that as f September 2018, there were a ttal f 97 active temprary sign permits, 59 f which were lcated n cnstructin walls and 38 n fences surrunding vacant lts. In cnferring with industry representatives, DCP learned that media cmpanies engage in a cmplex prcess in their effrt t prject ptential revenue frm temprary signs n cnstructin walls and fences surrunding vacant lts. Variables such as a prperty s lcatin, length f street frntage, leasable advertising area, cnstructin duratin, and estimated turnver rate fr temprary signs are the majr factrs cnsidered in estimating the value f psting signs in varius lcatins. Media cmpanies als cnsider the cst f psting temprary signs, including mnthly rent paid t the prperty wners, expenses incurred during the prcess f finding eligible prperty, selling leasable space fr advertisement, securing entitlements, and cst f cnstructin, clean-up and administratin. Negtiatins between stakehlders invlved in the prcess, such as media brkers, prperty wners, cntractrs, and advertising buyers impact these csts. Rughly half f the revenue a media cmpany receives frm psting a temprary sign is paid as rent t the site-wner where the sign is psted. Accrding t surces, after deducting csts, the estimated earnings by media cmpanies fr a temprary sign at a single site vary cnsiderably but are estimated t range frm $500-14,000 per mnth, depending n specific site characteristics. Given these myriad factrs and cnsideratins, DCP did nt discver any standardized frmula fr determining the value f these temprary signs. With regard t crrelating the amunt f revenue as a basis t determine whether the City can expand the required cleanup area, research suggests that there is n crrelatin between the expected revenue and the need fr cleanup near the site. Often, the value f temprary signs is inversely crrelated with the presence f trash and graffiti, as trash and graffiti tend t be mre prevalent in less affluent lcatins which are less likely t be cnsidered prime lcatins fr advertising. Fr this reasn, there wuld be n utility in requiring media cmpanies seeking temprary sign permits n cnstructin walls and fences t prvide their anticipated revenue frm the signs. Hwever, it shuld be nted that the current regulatins authrize OCB t expand the 500-ft radius cleanup area in 250-ft increments, up t a maximum radius f 1,500 feet depending n the presence f graffiti r trash. This type f cleanup requirement is based n the actual amunt f graffiti and trash that needs t be cleaned up. The cleanup requirement begins with a relatively mdest 500-ft radius, which is increased incrementally nly after OCB finds that cnditins at the site make such an increase necessary. Als, the cleanup requirement serves as a reasnable mitigatin fr the additinal neighbrhd blight caused by the display f the temprary signage, which is always present but is difficult t quantify. This authrizatin is maintained in the prpsed rdinance. OTHER RECOMMENDATIONS DBS ffers the fllwing recmmendatins t further strengthen the regulatins. Mdify the Expiratin Prvisins f the Sign Permits Currently, a permit fr temprary signs n temprary cnstructin walls des nt expire until the cnstructin permit has expired r been revked. This prevents DBS frm quickly enfrcing against illegal sign pstings. DBS recmmends that the rdinance be mdified t expire the sign
Page 5 permit withut having t wait fr the cnstructin permit t expire r be revked. If the rdinance allws fr sign permits t expire while a cnstructin permit is still valid, DBS can enfrce against abuses f the prgram mre quickly and effectively. This mdificatin t the rdinance wuld allw fr the plicies f the rdinance t be enfrced mre effectively. Restrictins t Limit Repeat Vilatrs DBS recmmends including a prvisin in the rdinance that wuld enable DBS t deny a sign permit if the site had a sign permit that was expired r revked in the previus tw years. This wuld help prevent repeat vilatrs f the prgram frm immediately psting signs after being required t take them dwn. SUMMARY After additinal evaluatin requested by PLUM n June 12, 2018, n changes are recmmended t the rdinance regarding: 1) temprary signs n cnstructin walls surrunding perating businesses, 2) reprting requirements fr the Graffiti Abatement Prgram, r 3) the valuatin f temprary signs. DBS has ffered recmmendatins t strengthen the enfrcement f the prpsed rdinance fr PLUM s cnsideratin. Please cntact Yi Lu, 213-978-1287 r Erin Cleman, 213-978-1338 at the Department f City Planning with any questin regarding this reprt. Sincerely, VINCENT P. BERTONI, AICP Department f City Planning FRANK M. BUSH General Manager Department f Building and Safety 4 PAUL K. RAC^/ Office f Cmmunity Beautificatin Department f Public Wrks