City Council

(19)\n26-0173\nPLANNING AND LAND USE MANAGEMENT COMMITTEE REPORT\nrelative to preparing an ordinance to amend the Los Angeles Municipal\nCode (LAMC) to mandate accountability, close regulatory loopholes,\nand safeguard the public right-of-way with penalties sufficient to deter\nillegal off-site signage and ambush marketing activity; and related\nmatters.\nRecommendations for Council action, as initiated by Motion\n(Yaroslavsky, Blumenfield – Harris-Dawson, et al.):\n1. INSTRUCT the Department of City Planning (DCP), with\nthe assistance of the Los Angeles Department of Building\nand Safety (LADBS), the City Attorney and the City\nAdministrative Officer (CAO), to prepare and present an\nordinance to amend to the LAMC to mandate\naccountability, close regulatory loopholes, and safeguard\nthe public right-of-way with penalties sufficient to deter\nillegal off-site signage and ambush marketing activity. The\namendments should include the following elements:\na. Establish a broad definition of Outdoor Advertising\nCompanies (OACs) that captures any entity\nmarketing space facing the public right-of-way;\nrequire all OACs to register a sworn inventory of\nassets, similar to the Home Sharing Ordinance\nregistration requirements; and mandate an\nirrevocable Letter of Credit or Surety Bond to\nguarantee compliance and cost reimbursement.\nb. Establish a fine of up to $50,000 per day for code\nviolations related to maintaining digital, off-site\nsignage in any format; and a fine of up to $25,000\nper day for violations related to maintaining static,\noff-site signage in any format; thereby establishing a\nsevere penalty framework with substantial daily,\nescalating fines.\nc. Redefine "on-site” to strictly require bona fide,\nprimary business operations, thereby prohibiting any\nartificial business arrangement designed to\ncircumvent the City’s off-site advertising prohibitions.\nd. Clarify that this framework applies to all commercial\nsign formats including but not limited to, billboards,\nwallscapes, wild postings, mobile, supergraphics,\nrooftop structures, and window-displays.\ne. Include mechanisms to hold parent companies,\nproperty owners, and affiliates liable for fines\nincurred by shell entities to halt the ability of OACs\nand property owners to hide assets.\nf. Exercise authority under California Government\nCode Sections 38771 and 38773 to declare illegal\noff-site signs a public nuisance per se, authorizing\nsummary abatement (removal) of signage and\nequipment, with all costs assessed against the\nowner via nuisance abatement liens.\ng. Ensure the applicability of this Ordinance to violators\nof the Olympic and Paralympic Planning and Zoning\nExemption Ordinance (Council file No. 15-0989-\nS47).\nh. Preclude any OAC or property owner with\noutstanding sign violations, or more than 3 violations\nof the revised enforcement framework within the\nprior 3 years, from bidding on future City contracts or\npartnerships and from obtaining a permit for any\nadditional off-site signage.\ni. Ensure the applicability of this Ordinance to violators\nof LAMC Section 14.4.17.\nj. Facilitate a streamlined process for sign takedowns\nand pulling demolition permits for unpermitted signs;\nand waive all related plan check and inspection fees.\nk. Provide a private right of action against registered or\nunregistered OACs or property owners, as well as\nadditional mechanisms to enlist registered OACs to\nassist the City in identification of and enforcement\nagainst unpermitted signs.\n2. INSTRUCT the DCP, with the assistance of the LADBS\nand the City Attorney to prepare and present an ordinance\nto amend LAMC Section 14.4.17 that includes the\nfollowing elements:\na. A mechanism to require a revenue share with the\nCity on all expected gross advertising revenue.\nb. Higher fees for vacant properties to discourage\ncontinued vacancies.\nc. Increased responsibility for graffiti and nuisance\nabatement clean-up.\nd. A requirement that all currently permitted temporary\nconstruction wall signs must:\ni. Register as an OAC.\nii. Immediately display identification signage\n("Imprint") listing the operator and permit\nnumber for the remainder of their permit term\nto facilitate enforcement and verify compliance.\n3. INSTRUCT the CAO, with the assistance of the DCP, the\nLADBS, and the City Attorney, to provide\nrecommendations within 30 days on:\na. Establishing substantial fines and penalties sufficient\nto fully offset the City’s costs derived from permitting\nlegal\nsignage,\nenforcement\nframework\nadministration.\nb. Mechanisms to maximize the City’s revenue-sharing\npercentage from permitted advertising.\nc. A requirement that signage on temporary\nconstruction walls comply with the City’s existing\nsign regulations and zoning code, including\napplicable limitations on size and location.\nd. A prohibition on temporary signs on construction\nwalls surrounding any open business.\ne. Penalties for OACs that fail to submit required clean-\nup information to the Office of Community\nBeautification and Council Offices. f. Staffing\nrequired for effective enforcement of sign\nregulations.\n4. INSTRUCT the DCP, with the assistance of the LADBS\nand the City Attorney, to provide recommendations\nregarding additional amendments to LAMC 14.4.17,\nincluding:\na. Improvements to the permitting process to\nencourage compliance.\nb. Restrictions on permits for temporary signs that are\nwithin the clean-up radius of an existing permitted\nsign.\n5. INSTRUCT the LADBS that reports submitted pursuant to\nCouncil file No. 25-1182 also be submitted under Council\nfile No. 26-0173.\n6. INSTRUCT the City Attorney, with the assistance of the\nLADBS and DCP, to report back with a legal analysis of\nthe revenue share, fine structure, regulatory authority to\nregulate a market when the City is a participant, and any\nother potential issues of liability and/or constitutionality as\noutlined in the motion prior to final consideration of the\nordinances.\n7. INSTRUCT the DCP to report to the Los Angeles City\nPlanning Commission (LACPC) with a report and\nrecommendations on both potential ordinances for LACPC\nand Council consideration.\n8. INSTRUCT the CAO, with the assistance of the LADBS\nand DCP, to report back with a budget and staffing\nanalysis and recommendations to enhance and support\npro-active code enforcement against illegal on-site\nsignage.\n9. REQUIRE that any replacement ordinance shall require\nthat signage on temporary construction walls comply with\nthe City's existing sign regulations and zoning code,\nincluding applicable limitations on size and location; the\nordinance shall not create a new category of off-site\nsignage exempt from those regulations and shall establish\nclear time limits to ensure such signage remains\ntemporary.\nFiscal Impact Statement: Neither the City Administrative Officer nor\nthe Chief Legislative Analyst has completed a financial analysis of this\nreport.