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SR 05-09-2023 5H City Council Report City Council Meeting: May 9, 2023 Agenda Item: 5.H 1 of 4 To: Mayor and City Council From: Edward F King, Director, Department of Transportation, Community Engagement & Customer Experience Subject: Adoption of a Resolution Revising Policy Governing Advertisements Displayed on the Exterior of City Buses to Comply With Legal Requirements Recommended Action Staff recommends that the City Council: 1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. 2. Adopt a Resolution revising the policy governing advertisements displayed on the exterior of City buses to comply with legal requirements. Summary In 2016, the City Council adopted advertising guidelines for Big Blue Bus (BBB), a division of the Santa Monica Department of Transportation (DoT), consistent with federal case law on the issue. As more challenges on the legality of bus advertising continue to take place in the courts in a variety of different areas, staff recommends updating the existing guidelines to reflect those changes. Background DoT sells advertising space on the exterior panels of its buses to generate revenue to support BBB transit operations. Currently, 91% of the ads are for movies and television programs or for services including legal, education, hospitality, and healthcare. The income from bus advertising is approximately $3 million annually. 5.H Packet Pg. 518 2 of 4 DoT’s advertising guidelines are utilized by staff to ensure that advertisements on bus exteriors do not conflict with its mission of providing safe and efficient public transportation. A copy of the existing guidelines is included (Attachment A). The guidelines constitute an advertising policy intended to meet DoT goals, which include but are not limited to maximizing ridership; preventing harm or abuse to passengers and buses; maximizing revenue; maintaining governmental neutrality and avoiding actual or perceived discrimination; and preserving the marketability of advertising space. Discussion In 2016, the City Council approved a set of bus advertising guidelines to be consistent with newly developed case law on the issue. The guidelines addressed the following issues: political campaign speech; adult-related products and services, alcohol, firearms, and tobacco, smoking, smoking materials, including electronic smoking or "vaping"; sexual or excretory subject matter; false, misleading, or deceptive; copyright, trademark, or otherwise unlawful; illegal activity; profanity or violence; demeaning or disparaging; harmful or disruptive to transit system; lights, noise and special effects; and unsafe behavior while riding public transit. Since 2016, courts have provided further relevant case law requiring an update to the guidelines to stay in compliance. While many of the new guidelines (Attachment B) remain the same, there are new issues to be addressed. First, the current guidelines reference American Freedom Defense Initiative v. King County, 796 F.3d 1165 (9th Cir. 2015) which is no longer applicable as newer case law has eliminated the impact of this ruling. The new guidelines also remove the prohibition on “demeaning or disparaging” advertisements, which Courts have deemed unconstitutional because it is not viewpoint neutral. The new guidelines provide more detail on each of the conditions. Courts have allowed discretion on workable standards so additional background information has been added to help City staff and the public better understand advertisement eligibility. Finally, the new guidelines require disclaimer language on advertisements, indicating the views of the advertiser do not necessarily reflect the views of the City. 5.H Packet Pg. 519 3 of 4 The newly revised guidelines do not change the City’s position on advertisements on political issues. The 2016 guidelines prohibited political campaign speech, but otherwise allowed political issue advertisements, and the revised guidelines maintain that status quo. Courts have held that a policy of prohibiting political issue advertisements is generally unconstitutional because such policies place City staff in a position of making viewpoint-based decisions on expression, in violation of the First Amendment. Adopting the attached resolution (Attachment C) will delegate authority to the Department of Transportation to administratively update guidelines in the future, to promptly address future changes in the law that may affect the guidelines. Past Council Actions Meeting Date Description 2/9/2016 (Attachment D) Big Blue Bus Advertising Policy Environmental Review The revised guidelines are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. 5.H Packet Pg. 520 4 of 4 Prepared By: David Feinberg, Transit Government Relations Officer Approved Forwarded to Council Attachments: A. Attachment A: Current Big Blue Bus Advertising Guidelines B. Attachment B: Proposed Big Blue Bus Advertising Policy C. Attachment C: Proposed Bus Advertising Guidelines Resolution D. Attachment D: Big Blue Bus Advertising Policy 2016 (Web Link) 5.H Packet Pg. 521 ATTACHMENT A BIG BLUE BUS ADVERTISING GUIDELINES The City may change these advertising guidelines at any time and without notice to Advertiser. Advertiser may contact the Transit Community Relations Officer to obtain the current advertising guidelines. The Transit Community Relations Officer only licenses advertising space for commercial advertisements. A commercial advertisement has as its primary purpose the promotion of a product for sale or a service for hire by the public generally. The Transit Community Relations Officer cannot license advertising space for any prohibited advertisements. An advertisement is prohibited if it meets one or more of the following criteria: 1. Causes the vehicle, if posted individually or in combination with o ther advertisements, to become a public forum for the dissemination, debate, or discussion of any such issues; 2. Is not a commercial advertisement; 3. Contains false, misleading or deceptive information; 4. Contains material that is explicitly sexual, obscene, or harmful to minors as those terms as defined in California Penal Code section 311; 5. Advocates, promotes or incites violence or illegal activity; 6. Ridicules, derides, embarrasses, or defames any individual, group of individuals, or entity; 7. Contains language that presents a clear and present danger of causing any riot, disorder, or other imminent threat to public safety, peace or order; 8. Contains any direct or indirect promotion of the sale or use of alcoholic beverages, tobacco or firearms; 9. Interferes with safe and efficient provision of public transportation service; or violates any copyright or other intellectual property rights. 5.H.a Packet Pg. 522 Attachment: Attachment A: Current Big Blue Bus Advertising Guidelines (5693 : Big Blue Bus Advertising Guidelines Update) CITY OF SANTA MONICA BIG BLUE BUS POLICY FOR ADVERTISEMENTS ON BUS EXTERIORS This bus advertising policy is intended to maximize bus ridership, maintain governmental neutrality, avoid actual or perceived discrimination in advertising, respect First Amendment rights, avert harm or abuse to bus riders and buses and to the City’s transit system, maximize advertising revenues, and preserve marketability of advertising space on City bus exteriors. To achieve these purposes, the City allows all types of exterior bus advertising, without regard to content and viewpoint, except advertising that contain material falling within one or more of the following categories: 1. Political campaign speech. Ads that promote or oppose the election of any candidate or group of candidates for federal, state, or local government office, or any legislation, initiative, referendum or ballot measure. 2. Adult related products and services, such as alcohol, firearms, and tobacco, smoking, smoking materials, including electronic smoking or “vaping.” 3. Sexual or excretory subject matter, and/or Harmful Matter as defined by the California Penal Code Sections 311 or 313. 4. False, misleading or deceptive material. Any material that is, or the sponsor reasonably should have known is, false, fraudulent, misleading, deceptive, or would constitute a tort of defamation or invasion of privacy. 5. Material that infringes on any copyright, trade or service mark, title, or slogan . 6. Illegal Activity. Material that promotes or encourages unlawful or illegal behavior or activities under local, state, or federal laws. 7. Profanity or violence. Advertising that contains any profane language, or portrays images or descriptions of graphic violence, including dead, mutilated or disfigured human beings or animals, or intentional infliction of pain or violent action towards or upon a person or anima l, or that depicts weapons or devices that appear to be aimed or pointed at the viewer or observer in a menacing manner. 8. Material harmful or disruptive to the transit system. Material so objectionable under contemporary community standards as to be reasonably foreseeable to result in harm to, disruption of, or interference with the transit system. 9. Lights, noise, and special effects, including but not limited to rotating, revolving, or other movable parts, mirrors, flashing devices, or anything that may interfere 5.H.b Packet Pg. 523 Attachment: Attachment B: Proposed Big Blue Bus Advertising Policy (5693 : Big Blue Bus Advertising Guidelines Update) with the safe operation of the bus or the safety of bus riders, pedestrians, drivers of other vehicles, or the public at large. 10. Material depicting unsafe transit behavior, such as non-use of normal safety precautions in awaiting, boarding, riding upon or debarking from the bus. 11. Material that conflicts with any applicable federal, state, or local law, statute, or ordinance. The City’s acceptance of an advertisement does not constitute express or implied endorsement of the content of the message of the advertisement, including any person, organization, products, services, information or viewpoints contained therein , including content that may be found via internet address or quick response (QR) codes that may appear in posted ads that direct viewers to external sources of information. All third-party advertisements appearing on City transit property must contain the following disclaimer, appearing in a consistent form and manner: The views and/or opinions expressed by the advertiser are not necessarily those of the City of Santa Monica. Rev. 3/2/2023 5.H.b Packet Pg. 524 Attachment: Attachment B: Proposed Big Blue Bus Advertising Policy (5693 : Big Blue Bus Advertising Guidelines Update) City Council Meeting, May 9, 2023 Santa Monica, California RESOLUTION NUMBER _________ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING UPDATED BIG BLUE BUS ADVERTISING GUIDELINES WHEREAS, the current Big Blue Bus guidelines were adopted by Council February 9, 2016; and WHEREAS, due to recent changes in the law, the Department of Transportation and the City Attorney’s Office recommends updating the guidelines; and WHEREAS, the Department of Transportation recommends the Council delegate authority to the City Manager to make future changes to the guidelines, through the Department of Transportation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The Council hereby adopts the guidelines attached hereto as Exhibit A. SECTION 2. The Council hereby delegates authority to the City Manager, through the Department of Transportation, to update the guidelines from time to time as necessary. /// 5.H.c Packet Pg. 525 Attachment: Attachment C: Proposed Bus Advertising Guidelines Resolution [Revision 1] (5693 : Big Blue Bus Advertising Guidelines Update) SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ DOUGLAS T. SLOAN City Attorney Exhibit A: Guidelines 5.H.c Packet Pg. 526 Attachment: Attachment C: Proposed Bus Advertising Guidelines Resolution [Revision 1] (5693 : Big Blue Bus Advertising Guidelines Update) EXHIBIT A CITY OF SANTA MONICA BIG BLUE BUS POLICY FOR ADVERTISEMENTS ON BUS EXTERIORS This bus advertising policy is intended to maximize bus ridership, maintain governmental neutrality, avoid actual or perceived discrimination in advertising, respect First Amendment rights, avert harm or abuse to bus riders and buses and to the City’s transit system, maximize advertising revenues, and preserve marketability of advertising space on City bus exteriors. To achieve these purposes, the City allows all types of exterior bus advertising, without regard to content and viewpoint, except advertising that contain material falling within one or more of the following categories: 1. Political campaign speech. Ads that promote or oppose the election of any candidate or group of candidates for federal, state, or local government office, or any legislation, initiative, referendum or ballot measure. 2. Adult related products and services, such as alcohol, firearms, and tobacco, smoking, smoking materials, including electronic smoking or “vaping.” 3. Sexual or excretory subject matter, and/or Harmful Matter as defined by the California Penal Code Sections 311 or 313. 4. False, misleading or deceptive material. Any material that is, or the sponsor reasonably should have known is, false, fraudulent, misleading, deceptive, or would constitute a tort of defamation or invasion of privacy. 5. Material that infringes on any copyright, trade or service mark, title, or slogan. 6. Illegal Activity. Material that promotes or encourages unlawful or illegal behavior or activities under local, state, or federal laws. 7. Profanity or violence. Advertising that contains any profane language, or portrays images or descriptions of graphic violence, including dead, mutilated or disfigured human beings or animals, or intentional infliction of pain or violent action towards or upon a person or animal, or that depicts weapons or devices that appear to be aimed or pointed at the viewer or observer in a menacing manner. 8. Material harmful or disruptive to the transit system. Material so objectionable under contemporary community standards as to be reasonably foreseeable to result in harm to, disruption of, or interference with the transit system. 5.H.c Packet Pg. 527 Attachment: Attachment C: Proposed Bus Advertising Guidelines Resolution [Revision 1] (5693 : Big Blue Bus Advertising Guidelines Update) 9. Lights, noise, and special effects, including but not limited to rotating, revolving, or other movable parts, mirrors, flashing devices, or anything that may interfere with the safe operation of the bus or the safety of bus riders, pedestrians, drivers of other vehicles, or the public at large. 10. Material depicting unsafe transit behavior, such as non-use of normal safety precautions in awaiting, boarding, riding upon or debarking from the bus. 11. Material that conflicts with any applicable federal, state, or local law, statute, or ordinance. The City’s acceptance of an advertisement does not constitute express or implied endorsement of the content of the message of the advertisement, including any person, organization, products, services, information or viewpoints contained therein, including content that may be found via internet address or quick response (QR) codes that may appear in posted ads that direct viewers to external sources of information. All third-party advertisements appearing on City transit property must contain the following disclaimer, appearing in a consistent form and manner: The views and/or opinions expressed by the advertiser are not necessarily those of the City of Santa Monica. Rev. 3/2/2023 5.H.c Packet Pg. 528 Attachment: Attachment C: Proposed Bus Advertising Guidelines Resolution [Revision 1] (5693 : Big Blue Bus Advertising Guidelines Update)