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SR 09-13-2011 7ACity Council Report City of ~auta 1lgonica City Council Meeting: September 13, 2011 Agenda Item: 7A To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: .Temporary Banners on City Streets Recommended Action Staff recommends that the City Council introduce for first reading an ordinance amending Santa Municipal Code Section 4.08.500 to allow the City or its agents to hang banners for purposes of promoting or calling attention to the City and its economic vitality. The amendment also updates reference to Bayside District Corporation, now referred to as "Downtown Santa Monica, Inc." Executive Summary In accordance with Municipal Code 4.08.500, the City or its agents are authorized to hang temporary banners for the purposes of promoting City-produced and City co- produced events and activities, or for the purposes of calling attention to the City, celebrating holidays, and aesthetic enhancement. Events and activities produced by Downtown Santa Monica,- Inc. and the Pier Restoration Corporation are classified as City-produced and may be promoted by banners hung over and along Third Street Promenade and the Pier, respectively. The proposed ordinance would modify the existing law to clarify the City's authority to hang temporary banners for the purpose of promoting or calling attention to the City and its economic vitality. This would help facilitate the promotion and celebration of initiatives such as Buy Local Santa Monica. The amendment would also reflect the recent change in name of Bayside District Corporation to Downtown Santa Monica, Inc. Background Santa Monica Municipal Code Section 4.08.500 allows temporary banners to be hung over, on, or in any public right-of-way by the City or its agents for the purpose of promoting City-produced or City co-produced events and activities, or for the purposes of promoting or calling attention to the City, celebrating holidays, and aesthetic enhancement. All other temporary banners are prohibited. 1 Historically, the Santa Monica Municipal Code included a general prohibition against temporary street banners. Moreover, their use to promote commercial activities, religious services and political events or issues was specifically prohibited. However, former section 4.08.500 contained an exception to the general prohibition that allowed private entities to hang banners publicizing cultural or civic events, and activities of "general public interest." In the early 1990's, the former City Attorney warned that this provision was constitutionally infirm because it constituted regulation of speech based on content. A few years later, the group, Food Not Bombs, sued the City challenging the community events and street banner ordinances. On April 8,.2003, legal staff asked Council to consider modifying the banner ordinance to bring it into conformance with the newly adopted Sign Code and to address the legal claims. Accordingly, on February 10. 2004 Council approved amendments to allow only banners "for the purpose of promoting City-produced or City co-produced events and activities." This ordinance was upheld by the Ninth Circuit Court of Appeal in Food Not Bombs v. Citv largely because it rests on the court-approved distinction between government speech and private speech which depends on the government's ownership and control of the message. That is, the ordinance allows the City and its agents to hang City banners on its streets, but does not allow banners that directly promote private interests. On October 23, 2007, Council again considered amendments to Section 4.08.500, which were partly intended to protect the opportunity to hang decorative banners during the holidays. Those revisions yielded the current ordinance. It allows the City and its agents to hang banners for the purposes of promoting the City, celebrating holidays, and enhancing aesthetics. Like its immediate predecessor, the current ordinance does not allow banners hung by or promoting private interests. Council considered, but rejected language that .would have allowed banners "calling attention" to "business 2 districts" based on the Council's determination that the banners should not be used for commercial messages. The legal principles that applied to the past revisions remain in effect today. The City has broad authority to hang banners in its own streets, but cannot selectively allow banners to be hung by or for the benefit of private entities or interests. Discussion The proposed amendment to the Municipal Code would expand the City's authority to hang temporary banners for the purpose of promoting or calling attention to the City and its economic vitality. This would help facilitate the promotion and celebration of initiatives such as Buy Local Santa Monica. As a result of the City Council's special budget allocation to support Buy Local initiatives, the City has solicited input from the business community and has prepared preliminary banner designs. If the recommended ordinance is approved, staff is prepared to produce and hang banners promoting Buy Local-Santa Monica, Banners have proven to be acost-effective and efficient communication tools in reaching thousands of Santa Monica's residents, employees and visitors in a relatively short period of time and making them aware of local programs, events and initiatives. Currently, banners are installed by approved contractors. The average cost for the production and fabrication of an over-the-street banner is approximately $700, whereas the average cost for a vertical pole banner can run between $60 and $100, depending upon size. Banners are permitted for three weeks. By comparison, the average cost for a one-day, full-page advertisement in a local newspaper is approximately $1,000. The FY 2011/12 Capital Improvement Project budget includes replacement and installation of three .new over-the-street banner poles within the City's commercial districts. This will further expand the City's ability to promote its programs, services and events. 3 The amendment would also reflect the recent change in name of Bayside District Corporation to Downtown Santa Monica, Inc. In the coming weeks, staff will present, for Council approval, the budget for Downtown Santa Monica, Inc. and request approval of other matters, including formal approval of the former Bayside District Corporation's new name. Alternatives The alternative is to retain the existing Code, which does not specifically allow City banners promoting the local economy such as Buy Local Santa Monica. Financial Impacts & Budget Actions No budget impacts are anticipated. Funds for banner production and installation are available in account # 012681.544390. Prepared by: Jennifer Taylor, Senior Development Analyst Approved: --- _/= ~,/- ,% ) Andy Agle, Director - Housing and Economic Development Forwarded to Council: a~ _~~~ Rod Gould City Manager Attachments: A. Proposed Ordinance 4 City Council Meeting: 9-13-11 Santa Monica, California ORDINANCE NUMBER (CCS) (City Couhcil Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 4.08.500 TO CLARIFY THE CITY'S AUTHORITY TO HANG TEMPORARY BANNERS FOR THE PURPOSE OF PROMOTING OR CALLING ATTENTION TO THE CITY AND ITS ECONOMIC VITALITY AND TO ALSO REFLECT THE CHANGE IN NAME OF BAYSIDE DISTRICT CORPORATION TO DOWNTOWN SANTA MONICA, INC. WHEREAS, Santa Monica Municipal Code Section 4.08.500 authorizes temporary banners to be hung over, on or in any public right-of-way by the City or its agents for the purpose of promoting City-produced or City co-produced events and activities, or for the purposes of promoting or calling attention to the City, celebrating holidays, and aesthetic enhancement; and WHEREAS, all other temporary banners are prohibited; and WHEREAS, the amendment would help facilitate the promotion and celebration of initiatives such as Buy Local Santa Monica that help to promote the City's overall economic vitality; and 1 WHEREAS, banners have proven to be a cost-effective and efficient communication tool in reaching Santa Monica's residents, employees and visitors and making them aware of local programs, events and initiatives; and WHEREAS, this ordinance would clarify the City's authority to hang temporary banners for the purpose of promoting or calling attention to the City and its economic vitality; and WHEREAS, this ordinance amendment would also reflect the recent change in the name of Bayside District Corporation to Downtown Santa Monica, Inc. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 4.08.500 is hereby amended to read as follows: 4.08.500 Street banners prohibited-Exceptions. Notwithstanding anything contained in Section 4.08.490 hereof, temporary City banners over, on or in any public right-of-way may be hung by the City or its agents for the purpose of promoting City-produced or City co-produced events and activities or for the purpose of promoting or calling attention to the City and its economic vitality, celebrating holidays, and aesthetic enhancement. All other temporary banners are prohibited. 2 A City-produced event is developed and implemented in its entirety solely by a City department or departments. A City co-produced event is one that has significant City staff involvement in both the planning and the implementation of the event together with anon-City entity. To be considered an event co-produced by the City, City staff must be involved in all aspects of the event including creative direction, funding and fund development, marketing and media relations, and staffing and support services. For purposes of this Section, events and activities produced by the--Sa~side Downtown Santa Monica, .Inc. and the Pier Restoration Corporation, or their successors are classified as City-produced and may be promoted by banners hung along and over the Third Street Promenade and Pier, respectively. The City Manager is authorized to adopt administrative guidelines that are consistent with and that further the terms and requirements set forth in this Section. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. 3 SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: -~ S MAR HA JON S MOUT IE City Forney ~ 4