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HomeMy WebLinkAboutR-2013-065 Billboards and Digital Signs Six-Month Moratorium - Public HearingRESOLUTION NO. R- 2013 -065 A RESOLUTION adopting Findings of Fact supporting a six -month moratorium, enacted April 2, 2013 pursuant to emergency Ordinance No 2013 =13, adopting an immediate moratorium on the acceptance of applications for the installation, erection, construction, replacement, modification, or improvement of static billboards and digital billboards using changing electronic, digital, or changeable message copy, in all zoning districts within the City of Yakima; and authorizing the City Manager to study and develop appropriate comprehensive land use, licensing or registration regulations addressing such issues for consideration by the City Council. WHEREAS, pursuant to RCW 36 70A.390 and RCW 35.63.200, the City Council of the City of Yakima by unanimous vote of those present on April 2, 2013 adopted Ordinance No. 2013 -13 imposing a moratorium for six months prohibiting the filing, acceptance and issuance of development applications for the installation, erection, construction, replacement, modification, or improvement of static billboards and digital billboards using changing electronic, digital, or changeable message copy, in all zoning districts within the City of Yakima; and WHEREAS, RCW 36.70A.390 and RCW 35.63.200 require the City Council to hold a public hearing within sixty days after imposition of a moratorium to receive evidence and testimony regarding imposition of the moratorium, to consider whether such moratorium should be modified or continue in effect as originally adopted, and to adopt findings of fact supporting such decision; and WHEREAS, the City Council has held the required public hearing on May 21, 2013 pursuant to notice duly published, and having considered all evidence and testimony presented, hereby makes the following: Findings of Fact 1 The City Council of the City of Yakima has authority pursuant to RCW 36.70A.390 and RCW 35 63 200 to adopt a moratorium to preserve the status quo pending development of comprehensive land use controls and regulations, health and safety regulations, and business licensing or registration regulations and procedures, concerning billboard and digital signs as defined in the moratorium ordinance 2. Existing codes and provisions in the Yakima Municipal Code do not adequately address appropriate location or zoning of billboards and digital signs, determination of any areas within the city where billboards and /or digital signs are inappropriate or present an unmitigated intrusion upon the quiet use and enjoyment of property; appropriate and comprehensive regulation of lighting and maintenance; appropriate and comprehensive regulation of duration of digital images, brightness controls, intermission periods between digital messages, and other factors creating or contributing to driver distraction, pedestrian safety, and vehicular safety; appropriate and comprehensive regulations to eliminate or mitigate visual blight; appropriate and comprehensive regulation of signage within and upon any designated entryway corridors into the city; development of regulations designed to promote downtown and /or entryway beautification plans. 3. Digital signs and billboards or electronic variable message signs and billboards are being installed throughout the United States, which signs include digital technology, light emitting diodes ( "LEDs "), and electronic graphic displays that permit signs to display an electronic image similar to a color television set and permit a displayed image to quickly change from one image to another; changeable electronic message billboards, which allow operators to change content from remote locations in a matter of seconds Such signs and technologies are erected for the purpose of trying to get the attention of pedestrians and motorists by changing messages and pictures for short durations using a series of contrasting images produced mainly by LED technologies. Such digital signs, without appropriate regulation, present a threat to driver concentration by creating visual distraction, as shown by studies conducted by outside entities or agencies. See, e.g., FEDERAL HIGHWAY ADMINISTRATION, "Research Review of Potential Safety Effects of Electronic Billboards on Driver Attention and Distraction, " (Final Report, September 11, 2001). 4 The City is currently engaged in an extensive process to study and evaluate modifications to its billboard regulations for both static and digital billboards, and in a comprehensive review of sign standards and regulations pertaining to billboards in conjunction with traffic safety and abatement of visual clutter within the downtown core area, entryways into the City, and zoning districts within the City. 5. The City Council finds and determines that the City of Yakima needs time to consider additional zoning regulations, health and safety regulations, and business licensing regulations which would deal specifically with billboards and digital signs within the City of Yakima, and the City Council therefore finds and determines that the moratorium for the term of six months adopted and implemented in Ordinance No 2013 -13, commencing on April 2, 2013 and extending through October 1, 2013, is necessary and appropriate in order to study the issues and to consider adopting appropriate regulations. 6. The City Council finds and determines that imposition of the moratorium adopted pursuant to Ordinance No. 2013 -13 is necessary to (a) provide the City with an opportunity to study the issues regarding siting, zoning and regulation of billboards and digital signs within the City of Yakima and to prepare appropriate revisions to the City's codes and regulations; (b) to protect the health, safety and welfare of the citizens of Yakima by avoiding and ameliorating negative impacts of the proliferation of new billboards and digital signs, and (c) to avoid applicants possibly establishing vested rights contrary to and inconsistent with any revisions the City may make to its regulations and codes as a result of the City's study of this matter. 7. The City Council finds, determines and concludes that an emergency exists justifying emergency adoption of Ordinance No 2013 -13, to wit: (a) existing city codes and procedures are inadequate to provide for the receipt and processing of applications for billboards and digital signs, designation of appropriate zoning districts or priority of zoning districts for such uses, and protection of the general health, safety and welfare of residents of the City of Yakima; (b) neither City staff nor the Planning Commission have had sufficient opportunity to review the effects of permitting billboards and digital signs or to formulate, prepare and recommend appropriate zoning regulations, health and safety regulations, and business licensing regulations which would deal specifically such uses within the City of Yakima; and (c) the immediate imposition of this moratorium pursuant to Ordinance No 2013 -14 will 0 A' preserve the status quo to enable the City to further study the effects of such uses and to devise appropriate zoning and regulatory controls to address the effects of such uses. 8. The City Council finds and determines that the moratorium adopted and implemented pursuant to Ordinance No 2013 -13 should remain in effect according to its terms, and that such is in the best interests of residents of the City of Yakima and will promote the general health, safety and welfare; therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Findings of Fact set forth above are hereby adopted as the Findings of Fact supporting the adoption, implementation and continuation of the moratorium adopted April 2, 2013 pursuant to Ordinance No. 2013 -13 according to its terms. 2. The City Manager of the City of Yakima is hereby authorized and directed to perform those duties and functions set forth in Ordinance No. 2013 -13, including but not limited to, development of proposed comprehensive land use, licensing, and health and safety regulations pertaining to billboards and digital signs and any issues ancillary thereto. ADOPTED BY THE CITY COUNCIL this 21St day of May, 2013 YAKItij� � .oaxx�i.q t,. City Clerk V`��.��rrgr.;s 3 Micah Cawley Mayor Y BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7 For Meeting of: 5/21/2013 ITEM TITLE: Public Hearing, and consideration of a Resolution adopting findings of fact in support of moratorium regarding Billboards and Digital Signs. SUBMITTED BY: Jeff Cutter, City Attorney Mark Kunkler, Senior Assistant City Attorney SUMMARY EXPLANATION: On April 2, 2013, the City Council adopted Ordinance No. 2013 -013 imposing a moratorium on receipt, processing and issuance of permits for placement and erection of certain Billboards and Digital Signs, as defined in the moratorium ordinance. State law requires that a public hearing be held within 60 days after adoption of the moratorium. The purpose of the public hearing is to receive public testimony and evidence as to whether the moratorium should remain unchanged or modified Following the public hearing the City Council is asked to adopt a resolution setting forth findings of fact supporting the moratorium as originally adopted or as modified. The attached resolution sets forth proposed findings in support of the moratorium as originally adopted If the moratorium is modified following the public hearing, the proposed resolution will be modified to reflect any changes made by the City Council. Resolution: X Other (Specify): Contract: Start Date: Item Budgeted: Funding Source /Fiscal Impact: Strategic Priority: Insurance Required? No Mail to: Phone: Ordinance: Contract Term: End Date: Amount: APPROVED FOR SUBMITTAL: City Manager RECOMMENDATION: Conduct Public Hearing, adopt Resolution. ATTACHMENTS: mom 0 Memo MORATORIUM BILLBOARDS Findings May 21 2013.doc 0 Resolution FINDINGS MORATORIUM Billboards May 21 2013.doc L-1 2013- 013 Moratorium on Billboards and Di Set Hearing Date,.,pd Description: Memo - Moratorium Billboards - Findings May 21 2013 Resolution - Findings Moratorium - May 21 2013 2013-013 Moratorium on Billboards and Digital Signs; Set Hearing Date CITY OF YAKIMA LEGAL DEPARTMENT 200 South Third Street Yakima, Washuigton %Rn (509)575bQ30 F" (,"P75 61W MEMORANDUM May 9, 2013 TO: Honorable Mayor and Members of the City Council Tony O'Rourke, City Manager FROM: Mark Kunkler, Senior Assistant City Attorney SUBJECT: Public Hearing — Moratorium — Billboards and Digital Signs The City Council adopted Ordinance No. 2013 -013 on April 2, 2013. This ordinance imposed a moratorium for up to six months prohibiting the filing, acceptance and issuance of development applications for the installation, erection, construction, replacement, modification, or improvement of static billboards and digital billboards using changing electronic, digital, or changeable message copy, in all zoning districts within the City of Yakima. Pursuant to RCW 36.70A.390 and RCW 35.63.200 authorizing the adoption of moratoria, the City Council is required to hold a public hearing within sixty days after imposition of a moratorium. The purpose of the public hearing is to receive evidence and testimony regarding imposition of the moratorium, to consider whether such moratorium should be modified or continue in effect as originally adopted, and to adopt findings of fact supporting such decision. To honor this requirement, a public record has been scheduled for May 21, 2013. Included within this agenda item is a Resolution that adopts proposed findings of fact supporting the adoption of the moratorium. If the City Council determines, after receipt of public testimony, comment or evidence, that the original moratorium should be modified in scope, length or effect, the proposed findings will be modified to reflect the decision of the City Council. Attached for your reference are copies of the following documents: (a) Resolution adopting proposed findings of fact in support of the moratorium adopted April 2, 2013 per Ordinance No. 2013 -013. (b) Ordinance No. 2013 -013 (moratorium ordinance). (c) Memorandum dated April 2, 2013, cover memorandum for Ordinance No. 2013 -013. RESOLUTION NO. R -2013- A RESOLUTION adopting Findings of Fact supporting a six -month moratorium, enacted April 2, 2013 pursuant to emergency Ordinance No. 2013 -13, adopting an immediate moratorium on the acceptance of applications for the installation, erection, construction, replacement, modification, or improvement of static billboards and digital billboards using changing electronic, digital, or changeable message copy, in all zoning districts within the City of Yakima; and authorizing the City Manager to study and develop appropriate comprehensive land use, licensing or registration regulations addressing such issues for consideration by the City Council. WHEREAS, pursuant to RCW 36.70A.390 and RCW 35.63.200, the City Council of the City of Yakima by unanimous vote of those present on April 2, 2013 adopted Ordinance No. 2013 -13 imposing a moratorium for six months prohibiting the filing, acceptance and issuance of development applications for the installation, erection, construction, replacement, modification, or improvement of static billboards and digital billboards using changing electronic, digital, or changeable message copy, in all zoning districts within the City of Yakima; and WHEREAS, RCW 36.70A.390 and RCW 35.63.200 require the City Council to hold a public hearing within sixty days after imposition of a moratorium to receive evidence and testimony regarding imposition of the moratorium, to consider whether such moratorium should be modified or continue in effect as originally adopted, and to adopt findings of fact supporting such decision; and WHEREAS, the City Council has held the required public hearing on May 21, 2013 pursuant to notice duly published, and having considered all evidence and testimony presented, hereby makes the following: Findings of Fact 1. The City Council of the City of Yakima has authority pursuant to RCW 36.70A.390 and RCW 35.63.200 to adopt a moratorium to preserve the status quo pending development of comprehensive land use controls and regulations, health and safety regulations, and business licensing or registration regulations and procedures, concerning billboard and digital signs as defined in the moratorium ordinance. 2. Existing codes and provisions in the Yakima Municipal Code do not adequately address: appropriate location or zoning of billboards and digital signs; determination of any areas within the city where billboards and /or digital signs are inappropriate or present an unmitigated intrusion upon the quiet use and enjoyment of property; appropriate and comprehensive regulation of lighting and maintenance; appropriate and comprehensive regulation of duration of digital images, brightness controls, intermission periods between digital messages, and other factors creating or contributing to driver distraction, pedestrian safety, and vehicular safety; appropriate and comprehensive regulations to eliminate or mitigate visual blight; appropriate and comprehensive regulation of signage within and upon any designated entryway corridors into the city; development of regulations designed to promote downtown and /or entryway beautification plans. 3. Digital signs and billboards or electronic variable message signs and billboards are being installed throughout the United States, which signs include digital technology, light emitting diodes ( "LEDs "), and electronic graphic displays that permit signs to display an electronic image similar to a color television set and permit a displayed image to quickly change from one image to another; changeable electronic message billboards, which allow operators to change content from remote locations in a matter of seconds. Such signs and technologies are erected for the purpose of trying to get the attention of pedestrians and motorists by changing messages and pictures for short durations using a series of contrasting images produced mainly by LED technologies. Such digital signs, without appropriate regulation, present a threat to driver concentration by creating visual distraction, as shown by studies conducted by outside entities or agencies. See, e.g., FEDERAL HIGHWAY ADMINISTRATION, "Research Review of Potential Safety Effects of Electronic Billboards on Driver Attention and Distraction," (Final Report, September 11, 2001). 4. The City is currently engaged in an extensive process to study and evaluate modifications to its billboard regulations for both static and digital billboards, and in a comprehensive review of sign standards and regulations pertaining to billboards in conjunction with traffic safety and abatement of visual clutter within the downtown core area, entryways into the City, and zoning districts within the City. 5. The City Council finds and determines that the City of Yakima needs time to consider additional zoning regulations, health and safety regulations, and business licensing regulations which would deal specifically with billboards and digital signs within the City of Yakima, and the City Council therefore finds and determines that the moratorium for the term of six months adopted and implemented in Ordinance No. 2013 -13, commencing on April 2, 2013 and extending through October 1, 2013, is necessary and appropriate in order to study the issues and to consider adopting appropriate regulations. 6. The City Council finds and determines that imposition of the moratorium adopted pursuant to Ordinance No. 2013 -13 is necessary to (a) provide the City with an opportunity to study the issues regarding siting, zoning and regulation of billboards and digital signs within the City of Yakima and to prepare appropriate revisions to the City's codes and regulations; (b) to protect the health, safety and welfare of the citizens of Yakima by avoiding and ameliorating negative impacts of the proliferation of new billboards and digital signs; and (c) to avoid applicants possibly establishing vested rights contrary to and inconsistent with any revisions the City may make to its regulations and codes as a result of the City's study of this matter. 7. The City Council finds, determines and concludes that an emergency exists justifying emergency adoption of Ordinance No 2013 -13, to wit: (a) existing city codes and procedures are inadequate to provide for the receipt and processing of applications for billboards and digital signs, designation of appropriate zoning districts or priority of zoning districts for such uses, and protection of the general health, safety and welfare of residents of the City of Yakima; (b) neither City staff nor the Planning Commission have had sufficient opportunity to review the effects of permitting billboards and digital signs or to formulate, prepare and recommend appropriate zoning regulations, health and safety regulations, and business licensing regulations which would deal specifically such uses within the City of Yakima; and (c) the immediate imposition of this moratorium pursuant to Ordinance No. 2013 -14 will preserve the status quo to enable the City to further study the effects of such uses and to devise appropriate zoning and regulatory controls to address the effects of such uses. 8. The City Council finds and determines that the moratorium adopted and implemented pursuant to Ordinance No. 2013 -13 should remain in effect according to its terms, and that such is in the best interests of residents of the City of Yakima and will promote the general health, safety and welfare; therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Findings of Fact set forth above are hereby adopted as the Findings of Fact supporting the adoption, implementation and continuation of the moratorium adopted April 2, 2013 pursuant to Ordinance No. 2013 -13 according to its terms. 2. The City Manager of the City of Yakima is hereby authorized and directed to perform those duties and functions set forth in Ordinance No. 2013 -13, including but not limited to, development of proposed comprehensive land use, licensing, and health and safety regulations pertaining to billboards and digital signs and any issues ancillary thereto. ADOPTED BY THE CITY COUNCIL this 21St day of May, 2013. ATTEST: City Clerk Micah Cawley, Mayor ORDINANCE NO. 2013 -013 AN ORDINANCE relating to land use and zoning; adopting an immediate moratorium on the acceptance of applications for the installation, erection, construction, replacement, modification, or improvement of static billboards and digital billboards using changing electronic, digital, or changeable message copy, in all zoning districts; such moratorium to be effective for six months, through October 1, 2013; exempting from such moratorium vested applications for billboard installation or billboard relocation permits, and applications for repair of existing billboards for purposes or implementation of safety improvements mandated by state or federal standards; declaring an emergency in the passage of this ordinance providing for immediate effective date; and setting May 21, 2013 as the date for the public hearing on the moratorium. WHEREAS, RCW 36.70A.390 and RCW 35.63.200 authorize the City Council to adopt an ordinance imposing a moratorium and provide a process for public hearing which must be held within sixty days of the date of adoption of the moratorium; and WHEREAS, the City of Yakima ( "City ") has previously adopted ordinances codified at Chapter 15.08 of the Yakima Municipal Code ( "YMC ") regulating signs and displays on signs in all zoning districts to reduce traffic hazards and visual blight; and WHEREAS, billboards are currently permitted in several zoning districts in the City as described pursuant to YMC 15.08.130; and WHEREAS, digital signs and billboards or electronic variable message signs and billboards are being installed throughout the United States that include digital technology, light emitting diodes ( "LEDs "), and electronic graphic displays that permit signs to display an electronic image similar to a color television set and permit a displayed image to quickly change from one image to another; and WHEREAS, changeable electronic message billboards, which allow operators to change content from remote locations in a matter of seconds, are erected for the purpose of trying to get the attention of pedestrians and motorists by changing messages and pictures for short durations using a series of contrasting images produced mainly by LED technologies; and WHEREAS, the City is currently engaged in an extensive process to study and evaluate modifications to its billboard regulations for both static and digital billboards; and WHEREAS, the City is currently engaged in a comprehensive review of sign standards and regulations pertaining to billboards in conjunction with traffic safety and abatement of visual clutter within the downtown core area, entryways into the City, and zoning districts within the City; WHEREAS, the City Council finds and determines that current City codes and regulations do not adequately address static billboards, digital billboards, changeable electronic message billboards and billboards using such electronic LED technologies; and, WHEREAS, the City Council finds that a immediate moratorium is necessary and appropriate within all zoning districts of the City to preserve the status quo and prevent significant investment pending the development of a comprehensive code and regulations pertaining to static billboards and changing electronic, digital, or changeable message billboards; and WHEREAS, the City Council finds and determines that such moratorium shall not apply to applications for new billboards or permits for relocation of existing billboards that have vested prior to the effective date of this ordinance, permit applications to conduct repair of existing billboards, and permit applications to implement safety improvements for existing billboards as mandated by state or federal standards; and WHEREAS, the adoption of such moratorium is exempt from SEPA threshold determination as an emergency action pursuant to WAC 197 -11 -880, but subject to further SEPA review and determination as deemed appropriate by the SEPA responsible official; and WHEREAS, the City Council finds, determines and concludes that an emergency exists, to wit: (a) the City has received proposals for installation of static and electronic billboards within the City; (b) neither City staff nor the Planning Commission have had sufficient opportunity to review the effects of static and electronic billboards with regard to concerns for economic development, preservation and /or promotion of traffic and pedestrian safety, prevention of visual clutter and public nuisances associated with inadequate code provisions and regulation of static and electronic billboards, and development of a comprehensive plan, program or regulation of static and electronic billboards within all zoning districts of the City; and (c) the immediate imposition of this moratorium will preserve the status quo to enable the City to further study the effects of such uses and to devise appropriate zoning and regulatory controls to address the effects of such uses; and WHEREAS, the City Council authorizes and directs the City Manager to review existing City codes and zoning regulations, further study the effects resulting from location of static and electronic billboards within the boundaries of the City, prepare comprehensive proposed amendments to the City codes and zoning regulations to address the effects of such uses, to confer with community members and City advisory commissions as appropriate, and to present recommended legislation addressing such issues to the City Council for consideration and action; and WHEREAS, the City Council finds and determines that a public hearing on this moratorium should be held on May 21, 2013, whereupon the City Council may adopt findings of fact in support of the adoption of this moratorium, or modify the terms thereof; and WHEREAS, notwithstanding the term of six months set forth above for the moratorium adopted herein, this moratorium may at any time hereafter be (a) modified by the City Council in accordance with applicable law; (b) extended for additional term(s) of six months upon action following public hearing and adoption of findings in support thereof; (c) terminated by the City Council upon adoption of appropriate zoning and regulatory codes; or (d) terminated by the City Council for any reason deemed necessary or appropriate; now, therefore: BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Recitals Adopted as Findings. The "Whereas" recitals above are hereby adopted as the City Council's findings of fact as if fully set forth herein. Section 2. Moratorium Adopted. A moratorium is hereby adopted on the receipt of applications, permitting, installation, erection or construction of (a) any new off- 2 premises static billboard, including billboards displaying static printed message and material, within all zoning districts of the City, and (b) on- premises and off - premises digital billboards consisting of or including changing electronic, digital, or changeable message billboards in all zoning districts within the City, and (c) the alteration, modification, or replacement of any existing billboard, so that the existing billboard (as altered or modified) uses changing electronic, digital or video display or flashing, motion, animated, or changeable electronic variable message copy. Static copy on existing billboards may continue to be changed. Section 3. Definitions. For purposes of this moratorium, "static billboard" means an off - premises sign greater than 72 square feet in size. This type of sign displaying static printed message and material, and is generally composed of poster panels or bulletins mounted on a building wall or free - standing structure, or painted directly on the wall or free - standing structure. "Digital billboard" means an on- premises or off - premises sign greater than 72 square feet in size, utilizing changing electronic, digital or video display or flashing, motion, animated, or changeable electronic variable message copy, or digital message technology capable of changing the message or copy on the sign electronically. In addition to the above definitions and as necessary to interpret or apply this Ordinance, the City hereby adopts those definitions and provisions of the Yakima Municipal Code pertaining to land use, zoning, design and regulation, including without limitation the provisions and definitions in Chapter 15.08 YMC. Section 4. Exemption — Vested Rights — Repair and Mandated Safety Improvements. The moratorium shall not apply to applications for new billboards or permits for relocation of existing billboards that have vested prior to the effective date of this ordinance, permit applications to conduct repair of existing billboards, and permit applications to implement safety improvements for existing billboards as mandated by state or federal standards. Section 5. Public Hearing. Pursuant to RCW 36.70A.390 and RCW 35.63.200, a public hearing will be held on Tuesday, May 21, 2013, for the purpose of taking testimony and, if this ordinance is passed, adopting written findings and conclusions justifying the moratorium established by this ordinance. Section 6. Effective Period of Moratorium. The moratorium adopted by this ordinance shall become effective immediately upon passage and approval of this ordinance, and shall remain in effect for six months, through October 1, 2013, subject to adoption of findings and conclusions as provided in Section 5 above. This moratorium shall also terminate upon the adoption of permanent regulations governing the location, land use and regulation of drive - through facilities within the Downtown Yakima Business Improvement District. Notwithstanding the above, this moratorium may be extended as provided in RCW 36.70A.390 and RCW 35.63.200. Section 7. Directive to City Manager. The City Council hereby authorizes and directs the City Manager to review existing City codes and zoning regulations; to further study the effects resulting from billboards and digital billboards; to prepare comprehensive proposed amendments to the City codes and zoning regulations to address the effects of such uses; to confer with community members and City advisory commissions as appropriate; and to present recommended legislation addressing such issues to the City Council for consideration and action. Section 8. Declaration of Emergency. Pursuant to Article VI Section 2 of the Charter of the City of Yakima, the City Council finds, determines and declares that this ordinance is an emergency ordinance to provide for the immediate preservation of the public peace, property, health or safety. The unanimous vote of the City Council shall be necessary for the passage of this emergency ordinance. Section 9. Severability. If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 10. Ordinance to be Transmitted to Department. Pursuant to RCW 36.70A.106, this Ordinance shall be transmitted to the Washington State Department of Commerce as required by law or otherwise posted, published or recorded as permitted by law. Section 11. Effective Date. This ordinance shall be in full force and effect immediately upon its passage and approval as provided by law and the City Charter. PASSED BY UNANIMOUS VOTE OF THE CITY COUNCIL, signed and approved this 2nd day of April, 2013. ✓��r' Ca. Mica Ca ey, Mayor ATTEST: By 2 City Clerk ': 1 Effective Date: April 2, 2013 Publication Date: April 5, 2013 .� Ordinance Approved by Unanimous Vote of Council Members: April 2, 2013 4 Distributed at the CITY OF YAKIMA !Meet_ ing LEGAL DEPARTMENT 200 Sot fl Third Street Yala n Washington 98901 (509)575.6(M Fa)c (509P5-6160 PRIVILEGED AND CONFIDENTIAL: COVERED BY THE ATTORNEY - CLIENT AND ATTORNEY WORK PRODUCT PRIVILEGES MEMORANDUM April 2, 2013 TO Honorable Mayor and City Council Tony O'Rourke, City Manager FROM: Mark Kunkler, Senior Assistant City Attorney SUBJECT Moratorium — "Billboards" and Digital Signs A. Scope of Moratorium. The City Council has asked staff to develop a proposed ordinance enacting a moratorium on the approval and installation of "billboards." The attached proposed ordinance would impose a six -month moratorium on the receipt of applications for, approval of, and installation of the following signs. (a) Any new sign, greater than 72 square feet in size, using "static" print and /or pictures, for the advertising of any product or service not made or provided on the premises of the property where the sign is located. (This is known as an "off- premises" advertising sign. Most signs commonly known as "billboards" are off - premises advertising signs ) (b) Any new sign, greater than 72 square feet in size, for the advertising of any product or service, whether made or provided on- premises or off - premises, where the sign uses changing electronic, digital, or changeable message copy. The city's current code does not provide a definition of "billboard." The current code simply states that a billboard cannot exceed 300 square feet in size and must comply with certain proximity and maintenance standards. The current code does not specifically state that billboards are limited to off - premises advertising. The city's current code has definitions for "changing message center sign," "electrical sign," and "flashin,g sign," but does not regulate any such signs. YMC 15.08.020. Memorandum to Honorable Mayor and Members of the City Council April 2, 2013 Page 2 B. Signs Not Affected by Moratorium. The effect of the moratorium will leave available the following types of signs: On- premises advertising signs (that use "static" or printed copy and /or pictures) will be allowed in accordance with the existing city codes. (The moratorium would only stop placement of "static" off - premises advertising signs that exceed 72 square feet in size.) • On- premises or off - premises advertising signs 72 square feet or less in size, which use changing electronic, digital, or changeable message copy, would be allowed in accordance with existing city codes. (Only digital signs greater than 72 square feet in size would be subject to the moratorium.) The "72 square feet" standard has been drawn from a similar moratorium ordinance adopted by the City of Tacoma.' C. Reasons for Moratorium. A number of scientific studies have recently become available describing the potential for driver distraction associated with electronic billboards These are currently being reviewed by staff, but a comprehensive study is necessary. Staff and the Planning Commission will need time to properly study and assess these reports.2 Current code provisions do not define "billboards," nor make any reference to whether such signs are limited to off - premises advertising In fact, YMC 15.08.130 is entitled "Off- premises signs and billboards," creating an ambiguity as to whether "off- premises signs" are different from "billboards." As noted above, current code has definitions for "changing message center sign," "electrical sign," and "flashing sign," but does not regulate any signs on such basis Without a moratorium, the city is without sufficient existing means to regulate billboards and larger digital signs. ' City of Tacoma Ordinance Nos. 27982 (May 17, 2011), and 28009 (August 9, 2011) 2 See, e.g., FEDERAL HIGHWAY ADMINISTRATION, "Research Review of Potential Safety Effects of Electronic Billboards on Driver Attention and Distraction," (Final Report, September 11, 2001) Memorandum to Honorable Mayor and Members of the City Council April 2, 2013 Page 3 D. Recommendation. The attached ordinance would establish a moratorium crafted to reach off - premises billboard signs greater than 72 square feet in size, and on- premises /off - premises electronic or digital signs greater than 72 square feet in area. The proposed. moratorium would allow on- premises signs (using static copy or message) to be processed under existing city codes. It would also allow on- premises /off - premises electronic signs (72 square feet or less) to be processed in accordance with existing city codes. The scope of the proposed moratorium is intended to reach "larger" static signs, together with electronic signs greater than 72 feet in area, and leave room for businesses to proceed with appropriate on- premises sign application and installation. Under state statutes governing moratoria, a public hearing must be held within 60 days to receive comment and testimony regarding the moratorium and its scope. A public hearing will be set for May 21, 2013 for these purposes. Under the City Charter, adoption of a moratorium is an "emergency ordinance" that must be approved by the unanimous vote of all Council members considering the action Charter, Article VI, Section 2. ;Distributed al the r: r Meeting D __ _ �j /�� ;I May 21, 2013 Steve Osguthope, Director of Community Development City Hall - 2nd Floor 129N 2nd St Yakima, WA 98901 RE: Moratorium regarding Billboards and Digital Signs Dear Mr. Osguthope: MAY 21 2013 OFFICE OF CITY COUNCIL This letter is in response to the proposed moratorium regarding billboards and digital signs being discussed at this evenings City Council meeting. As an introduction, I will provide a brief synopsis on our history in the Yakima market regarding outdoor advertising. My family owned and operated all of the billboards in the Yakima market in the 1960's operating as Grover Outdoor Advertising. Eventually our company was acquired and is now operated as CBS Outdoor. In the early 1990's, my father Steve joined a company called Obie Media. He again developed several new locations in Yakima. I joined this company in 1991 and also developed several new billboard locations. Obie Media was eventually sold to Lamar and they are the current operator of those locations. In all, my estimation is that a minimum of 95% of the billboards in Yakima were developed by my father Steve or me. We always felt that the regulations regarding billboards were effective and protected the integrity of the marketplace by not allowing an influx of billboard displays. Also during this time, my father Steve was instrumental in the writing and passage of the existing code that is currently in place regulating billboards. He diligently worked with the staff at that time and they developed a new code which is in place today. The current code is quite restrictive and regulates the zones in which billboards can be built on, the size, height, illumination, and spacing from other billboards which is 500'. It also regulates distance from residential which is a minimum of 300'. These two distances are very aggressive and make finding any new locations in Yakima that meet this criteria extremely difficult. I have worked in several cities across the country developing billboard locations from large to small and the code currently in place in Yakima is one of the most restrictive I have worked with. Over the past 2.5 years, there has been one new billboard permit issued, however, this was just a permit to upgrade an existing structure. All in all, the last new billboard permits go back to my company which was back in 2009. There is no substantive issue regarding billboards in Yakima as shown by the number of permits issued over the past four years. As stated above, there are very few properties in Yakima that would even qualify as a legal location due to the current restrictive regulations. Billboard companies lose locations through attrition over time and need to have a code in place that allows the relocation or new development to replace lost locations and maintain their business. What I have noticed is that the definition of signs with the staff in Yakima is getting a bit off track. There are two types of signs in any city and they are on- premise and off - premise. Obviously, billboards fall into the category of off- premise and advertise goods and services not on the property in which the display is located. I would strongly disagree that considering all signs over 72 square feet as billboards is a rational and effective way to regulate signs. The on- premise sign code should regulate signs identifying the businesses on the property and the off - premise sign code should regulate billboards. This is how 99% of the codes across the country are written and provide the necessary delineation between the two. There are three main companies operating billboards in Yakima which are CBS Outdoor, Lamar, and Metro Outdoor. There are two other companies that have one to two locations each. Yakima is not overrun by billboards and the market is not overbuilt. I would agree that the on- premise sign code needs to be addressed as they do not appear to have much regulation. They are allowed to overhang the right -of -way and there seems to be a lot of leeway regarding the types of signs which are allowed. All three of the companies listed above are vested in Yakima and provide a great service to the businesses in the marketplace. We use local vendors and take pride in the appearance and success of Yakima. We would all like to be part of any discussions regarding a potential change to the current regulations and feel that a study group including staff and industry representatives would be most beneficial for all. I appreciate you taking the time to review my comments and look forward to the opportunity to meet in person and discuss the current code and how best we can all move forward in a positive and beneficial manner. I respectfully request that this letter be provide to council members at the City Council meeting this evening and be read to the public in attendance. 1 would have attended this meeting but was not able due to a family emergency. Sincerely, Peter A. Grover Owner Metro Outdoor, LLC Distributed at the #�7 Meeting Statistical Analysis of the Relationship between ®n- Premise Digital Signage and Traffic Safety by H. Gene Hawkins, Jr., Ph.D., P.E. Associate Professor and Research Engineer Zachry Department of Civil Engineering Texas A &M University Pei -Fen Kuo Graduate Research Assistant Texas A &M Transportation Institute and Dominique Lord, Ph.D. Associate Professor and Research Engineer Zachry Department of Civil Engineering Texas A &M University Sponsored by Signage Foundation, Inc. P.O. Box 14392 Washington, DC 20044 Texas Engineering Extension Service The Texas A &M University System College Station, TX 77843 December 17, 2012 1 DISCLAIMER The contents of this report reflect the views of the authors, who are responsible for the facts and accuracy of the information presented herein. This document is disseminated under the sponsorship of the U.S. Department of Transportation University Transportation Centers Program in the interest of information exchange. The U.S. Government assumes no liability for the contents or use thereof. The U.S. Government and the State of Texas do not endorse products or manufacturers. Trade or manufacturers' names appear herein solely because they are considered essential to the object of this report. ACKNOWLEDGMENT The authors wish to recognize the Signage Foundation, Inc., for providing the funding for this research effort. The authors also wish to acknowledge the sign companies that provided proprietary information regarding the installation of the digital signs that were used to create the databases analyzed in this project. Although they are not recognized by name in order to protect the proprietary nature of the information, their contributions are greatly appreciated. 11 ABBREVIATIONS The abbreviations shown below are used in this report. AADT Annual Average Daily Traffic ADT Average Daily Traffic AASHTO American Association of State Highway and Transportation Officials AIC Akaike Information Criterion ANOVA Analysis of Variance BIC Bayesian Information Criterion CEVMS Commercial Electronic Variable Message Signs CG Control Group DF Degrees of Freedom EB Empirical Bayes EBB Electronic Billboard FHWA Federal Highway Administration HSIS Highway Safety Information System HSM Highway Safety Manual LCD Liquid Crystal Display LED Light- Emitting Diode MS Mean of Sum of Squares MSE Error Mean Square MST Treatment Mean Square RTM Regression to the Mean SAR Spatial Autoregressive Model SEM Spatial Error Model SFI Signage Foundation, Inc. SPF Safety Performance Function SS Sum of Squares SSE Sum of Squares for Error SST Total Sum of Squares TTI Texas A &M Transportation Institute iii TABLE OF CONTENTS Page Listof Figures .................................................................................................. ............................... v Listof Tables .................................................................................................. ............................... vi ExecutiveSummary ....................................................................................... ............................... vii Chapter1: Introduction .................................................................................... ............................... 1 ResearchApproach .................................................................................... ............................... 1 Descriptionof a Digital Sign ..................................................................... ............................... 1 Research Activities and Report Organization ............................................ ............................... 2 Chapter 2: Background Information ................................................................ ............................... 3 On- Premise Digital Signs .......................................................................... ............................... 3 Off - Premise Digital Signs ......................................................................................................... 4 SafetyEffects ....................................................................................... ............................... 4 Characteristics of the Evaluation Methods Used in Previous Studies . ............................... 7 Chapter3: Study Data ...................................................................................... ............................... 9 CrashData .................................................................................................. ............................... 9 SignData .................................................................................................. ............................... 11 Data - Merging Procedure .......................................................................... ............................... 12 Chapter 4: Study Methodology ...................................................................... ............................... 16 A Before -After Study and a Cross - Sectional Study ................................ ............................... 16 TheBefore -After Study ..................................................................... ............................... 16 Common Methods for Conducting a Before -After Study ........................ ............................... 18 NaiveMethod ..................................................................................... ............................... 18 ControlGroup Method ....................................................................... ......•........................ 19 EmpiricalBayes Method .................................................................... ............................... 20 Calculation Procedures and Examples ..................................................... ............................... 21 Chapter5: Results .......................................................................................... ............................... 25 Individual and Combined Results ............................................................ ............................... 25 Results for Crashes Related to Multiple and Single Vehicles ................. ............................... 28 Results for Crashes Related to Different Types of Signs ........................ ............................... 29 Impactof Sign Hold Time ....................................................................... ............................... 32 Chapter 6: Summary and Conclusions ........................................................... ............................... 34 Chapter7: References .................................................................................... ............................... 36 Appendix A: Step -By -Step Instructions for Students to Record Sign Data .. ............................... 39 Appendix B: Statistical Symbols ................................................................... ............................... 41 IV LIST OF FIGURES Page Figure 1. Summary of study results .............................................................. ............................... viii Figure 2. The flow chart for data collection and merging procedure ............ ............................... 13 Figure 3. Example work table of site data collection ..................................... ............................... 15 Figure 4. A comparison of sample sizes from similar studies ....................... ............................... 26 Figure 5. The safety effectiveness index and the 95 percent confidence interval for each state(all crash types) ....................................................................... ............................... 27 Figure 6. The safety effectiveness index and the 95 percent confidence interval for each state (multi - vehicle crashes) ...................................•---.................... ............................... 28 Figure 7. The safety effectiveness index and the 95 percent confidence interval for each state (single-vehicle crashes .................................... ............................... 29 Figure 8. The histogram of digital signs for each sign dimension ................. ............................... 31 Figure 9. Example screenshot of Google Maps ............................................. ............................... 40 Figure 10. Example screenshot of Google Earth ........................................... ............................... 40 v LIST OF TABLES Page Table I. Safety effects of off - premise digital signs ......................................... ............................... 6 Table 2. HSIS crash coverage and roadway length by state .......................... ............................... 10 Table 3. Coefficients for multi and single - vehicle crash regression model ... ............................... 22 Table 4. Sign site sample size yield ............................................................... ............................... 26 Table 5. Results of statistical analysis of before -after crash condition .......... ............................... 27 Table 6. The typical form of a one -way ANOVA table ................................ ............................... 30 Table 7. Analysis of variance table ( color) .................................................... ............................... 31 Table 8. Analysis of variance table (sign dimension) .................................... ............................... 32 Table 9. Analysis of variance table (six business types) ............................... ............................... 32 Table 10. Analysis of variance table (two business types) ............................ ............................... 32 Table 11. Summary of sign hold times .......................................................... ............................... 33 Table 12. Example work table of site data collection procedure ................... ............................... 39 vi EXECUTIVE SUMMARY The use of digital on- premise signs, which are typically business- related signs that have the ability to change the displayed message, has increased significantly in recent years. On- premise digital signs are located on the same property as the businesses they promote, and some part — or a significant part in some cases — of the sign contains a digital display that can be programmed to change the message at pre -set intervals. Because the use of these signs has increased, jurisdictions have used local sign codes or ordinances to regulate the manner in which digital messages are displayed. Jurisdictions typically justify these regulations by citing traffic safety impacts. However, no comprehensive and scientifically based research efforts have evaluated the relationship between on- premise digital signs and traffic safety. In this study, researchers collected large amounts of sign and crash data in order to conduct a robust statistical analysis of the safety impacts of on- premise digital signs. The statistical tools used the latest safety analysis theory developed for analyzing the impacts of highway safety improvements. The research team acquired the crash data from the Highway Safety Information System, which is a comprehensive database of crash records from several states. One of the advantages of these data is that they also include information about roadway characteristics, such as the number of lanes, speed limit, and other factors. The research team then acquired information about the location of on- premise digital signs from two sign manufacturing companies. Through significant effort by the researchers, these two datasets were merged into a single dataset that represented potential study locations in California, North Carolina, Ohio, and Washington. Of the initial set of over 3,000 possible sites, the research team was able to identify 135 sign locations that could be used for the safety analysis. Potential sites were eliminated from consideration due to any of the following factors: The sign location was not on a roadway that was included in the crash dataset; only major roads were represented in the crash data. The sign location provided by a sign manufacturing company could not be verified through online digital images of the location. Only signs installed in calendar years 2006 or 2007 could be included in order to have adequate amounts of crash data before and after the sign was installed. The research team then used the empirical Bayes method to perform a before -after statistical analysis of the safety impacts of the on- premise digital signs. In a before -after study, the safety impact of a treatment (in this case, the installation of an on- premise digital sign) is defined by the change in crashes between the periods before and after the treatment was installed. However, simply comparing the crash frequencies (known as a naive before -after analysis) is not adequate to account for factors such as regression to the mean (a statistical concept that explains why after data can be closer to the mean value than the before data) and to provide a means of controlling for external factors that can also cause a difference in crash frequencies. The empirical Bayes method represents the recommended procedure for evaluating the impacts of safety treatments because it overcomes the deficiencies of the naive method. The safety impacts are represented by the safety index, which is indicated by the symbol 0. In simple terms, the safety index represents a ratio of safety in the after period compared to safety in the before period, although it is not as vii simple as dividing the crashes in the after period by the crashes in the before period. A safety index greater than 1.0 indicates an increase in crashes in the after period, and a value less than 1.0 indicates a reduction in crashes in the after period. However, because of the variability in the crash data, the analysis must have statistical validity. Statistical variability is established by defining the 95 percent confidence interval for the safety index, which is based on factors such as sample size and the variability of the data. If the 95 percent confidence interval includes the value of 1.0, then there is a 95 percent chance that there is no statistically significant change in crashes between the before and after periods. The results of the statistical analysis are presented in Figure 1. This figure shows that the safety index for all of the states was 1.0 with a 95 percent confidence interval that ranged from 0.93 to 1.07. This indicates that, for the 135 sites included in the analysis, there was no statistically significant change in crashes due to the installation of on- premise digital signs. The same can also be said about the results for each of the four states on an individual basis because the confidence interval for safety index for each state includes 1.0. The larger confidence intervals for some of the states are due to greater variability in the data and/or smaller sample sizes. The researchers also analyzed single - vehicle and multi - vehicle crashes and found the same result of no statistically significant change in crashes. Finally, the researchers performed an analysis of variance for the sign factors of color, size, and type of business and found no statistically significant differences in the mean safety index values for individual factors. 3.0 -i -- --- — ------------------------------ - — -- -- -,. - - - - - -` '--------------------------------- . - -: -- -- u > >er hound - - -- I 2.0 i %. - -- -- ------------------ - - - - -- e - `� .. .• lower bound .. w --- ..._..._------- - - - - -- - -- - - -' _... - - - -- - - - 1.11 ......... .... '� - - - - -- . .. - . , ... ..:..... i 0.0 -, -- - -- - - r- -- -- cx NC' OH '%VA ALL The results of this study provide scientifically based data that indicate that the installation of digital on- premise signs does not lead to a statistically significant increase in crashes on maj4 roads. / viii CHAPTER 1: INTRODUCTION For many generations, most signs — including both traffic and business signs — were static. They displayed only one message that did not change with time. Advances in information display technologies in recent years have led to an increase in the use of many types of digital signs, particularly in the area of on- premise and off - premise business signs. On- premise digital signs provide the ability to communicate a wide variety of messages and to change the manner in which the message is presented over time. As such, these digital signs.represent a significant advancement in communication technologies and the ability to deliver valuable marketing information to potential customers. However, some groups have raised questions related to the traffic safety aspects of business signs that change messages on a frequent basis. The traffic safety concerns are often related to issues of potential driver distraction from the roadway due to the dynamic nature of these signs. These safety concerns are sometimes addressed through local regulation of these types of signs, which may prohibit or limit the use of on- premise digital signs. These regulations tend to be developed at the local level and do not have a significant level of scientific, nationally based research supporting the regulations. The traffic safety concerns associated with on- premise digital signs have existed for some time, but there has been little research, particularly on a national level, that directly addresses the safety impacts of on- premise digital signs. In part, this is due to the fact that the use of such signs has grown only in the last 5 -10 years. The research described in this report was conducted to provide a scientifically based, national analysis of on- premise digital signs so that the traffic safety impacts of such signs can be better understood. RESEARCH APPROACH The basic research method used in this study is a before -after statistical analysis of the change in traffic crashes at locations where digital signs were installed. The research team used digital sign installation information provided by sign manufacturers to identify locations in selected states where digital signs had been installed in the 2006 -2007 time frame (this time frame was selected to provide adequate numbers of crashes in both the before and after periods). The analysis locations were limited to California, North Carolina, Ohio, and Washington because these states are part of the Federal Highway Administration (FHWA) Highway Safety Information System (HSIS). The HSIS is a database of crash records that includes detailed information about the roadway and crashes, including such factors as the number of lanes, the speed limit, crash severity, and other factors. The researchers then mapped the sign sites to the crash datasets to identify locations with crashes. These locations were then analyzed to compare the crashes before installation of the digital sign to the crashes after installation of the sign using statistical analysis procedures. DESCRIPTION OF A DIGITAL SIGN For the purposes of this study, a digital sign is defined as a sign that uses an electrical display, such as a liquid crystal display (LCD) or light- emitting diode (LED), to provide changeable messages or graphics. There are several types of digital signs, including digital billboards, indoor video advertisements, and street -level advertisements (such as LED signs on bus shelters). For this study, the researchers focused only on on- premise digital signs, which are signs located on the same property as the business with which they are associated. The research effort did not include or address off - premise signs or billboards. RESEARCH ACTIVITIES AND REPORT ORGANIZATION There were five major activities associated with this research effort. The study began by reviewing and evaluating previous research on the safety aspects of digital signs and the statistical methods that other researchers have used to evaluate the safety aspects of signs. Chapter 2 describes the results of the review of background information. The researchers then began to collect information related to digital signs and crash data in the selected states. The sign information included the location and date of installation, and the crash data included the location and date. The researchers then devoted extensive effort to matching the locations and dates of the signs and crash datasets. Chapter 3 describes the sign and crash data and how the two datasets were merged together. Once this was accomplished, the next step was to develop a valid and scientifically based statistical analysis procedure to determine if there were any statistically significant changes in crashes after installation of digital signs. Chapter 4 describes the development of a statistical methodology, including a comparison of the advantages of the different options for conducting the statistical analysis. Finally, the research team used the results of the statistical analysis to define the key study findings, which are described in Chapter 5. Chapter 6 presents the conclusions and recommendations for the research study. OA Distributed at the 7 Meeting UNIVERSITY OF Cincinnati The Economic Value of On- Premise Signage S.AJy�•i�i.F4.' "�' tl'r 4i.. M3'{ f„ i 1 t' qY` .v - ':�.n�il,,. 'i y,� ,,,'7'.lft -f•�r.;�, M^ 5�T „7 : -y- f, � S�Fn „��y., i., - {' klyPie. Prepared for the Signage Foundation, Inc. Prepared by the Economics Center, University of Cincinnati August 2012 Principal Investigator Jeff Rexhausen Co- Investigator Henry Hildebrandt Co- Investigator Christopher Auffrey, PhD Research Economist Jennifer Shand Pitzer, PhD Research Economist Benjamin Passty, PhD August 2012 t QP ��. signage {oundatioti, inc Design, architecture' Ec®nomicSCenter Art, and Planning UNIVERSITY OF Cincinnati i"h�e � q m'�+�Ualk"i"e of Oa -f're �e 5'�3na e1I� ., U�mI1Y�onw��mlM lAt:���'.f1�WS�w� h1u4�rr� fik4 on ���di'�:" University of Cincinnati Businesses of all sizes and types use on- premise signs to communicate with their customers. It has been suggested that on- premise signs and the regulations that limit them can significantly impact the performance of some types of businesses, yet there has been limited recent research to inform decisions about sign investment or regulation. To provide more current insight, researchers at the University of Cincinnati conducted a national survey of businesses and a series of case studies. The purpose was to assess how changes in on- premise signage affect business performance. This report provides details about that research's approach and results. Business owners responding to the national survey reported that additional and improved signs are associated with increases in their revenues and profits. The case studies suggest that signage visibility and conspicuousness are especially important, and that signage plays an important role in a business'overall branding and marketing strategy. This research indicates that appropriately designed and located on- premise signage can be an important factor for retail business success. The implication of these results is that on- premise signage indirectly influences the vitality of a community and the quality of life of consumers by providing information about the availability of goods and services. Examination of one field of economic theory — search theory — and application of this concept to the subject of signage presents a new explanation for why on- premise signs have positive economic impacts, not only for businesses, but also for consumers and communities: namely, signs make it easier for shoppers to obtain the information they need to make a purchase. A national survey asked businesses about sign changes and the impact of those changes on business performance. In addition, detailed questions inquired about the nature of the business and the use of signs. The survey produced some significant findings regarding both economic impacts and sign preferences. Sign changes generally had significant, positive impacts on sales, number of transactions and profits. Roughly 60 percent of businesses reported increases averaging about 10 percent. • Sign changes also led to small positive impacts on employment. Nearly a quarter of respondents reported hiring more people. • While most single establishments and small firms have either wall signs or pole signs, most large companies have both. In general, larger companies tend to have more types of signs. • Helping customers find their location was the most important purpose for respondents. Legibility is the most important characteristic of signs across all sizes of companies. • Business logos and the size and location of the signs were more important for companies with more establishments, for whom branding is presumably more important, compared with single establishment companies. Among the case studies, positive business performance was generally associated with greater use of on- premise signage and better quality signs, as the following results indicate. The national lodging chain case study found that the use of a digital .� electronic sign to dis la ricing was associated with increased average occupancy rate . The impact app o e especially strong for properties with lower occupancy rates. • The national retail banking business case study found that pylon signs were strongly associated with high visibility, monument signs were moderately associated with high visibility, and wall signs contributed to identity but not visibility. In addition, pylon signs were associated with significantly more teller transactions. • The specialty store small business case study demonstrated the need for signage to reaffirm the value offered by a niche retailer. Sign design must be sensitive to community and customer expectations, and able to reinforce the brand of a small business. The signage should communicate a "promise" of value for a product and /or service that is not commonly found • ~ e car dealership small business case study found that the addition of a video sign board was associated with increases in both service department and customer traffic. n added enefit was the "goodwill"and reputational gain associated with using the video board for community - related public service messages. Given the economic importance of signs, regulations should balance community design objectives with full knowledge of how sign design and location impact businesses success. Business success is important because of its impact on a community's tax base, and it ultimately leads to the availability of greater fiscal resources to provide needed community services. 'The-Economiaie of Qrtcprem {we51�rge,. University of Executive Summary I. Introduction .................................. ..............................1 II. Context ....................................... ..............................5 A. The Problem ............................. ..............................5 B. Research Challenge ..................... ............................... 5 C. Previous Research ....................... ..............................6 D. Research Approach ...................... ..............................8 III. Economic Theory and On- Premise Signs .... ............................... 11 A. Origins of Search Theory ................ .............................12 B. Relevance of Search Theory to On- Premise Signage ..................13 IV. National Survey ............................... .............................17 A. Survey Approach ............................... .....................17 B. Survey Results ......................... ............................... 17 V. Case Studies .................................. .............................25 A. National Lodging Chain —Value Place . ............................... 25 B. National Retail Banking Business ....... .............................27 C. Specialty Store Small Business — Bob Roncker's Running Spot ....... 34 D. Car Dealership Small Business — Anderson Ford ...................... 39 VI. Summary of Research Findings .............. ............................... 43 VII. Conclusion ....... ............................... ..........................47 A. Implications for Businesses ............ ............................... 47 B. Implications for Communities ........... .............................48 C. Implications for Future Research ......... .............................48 Appendices............................................ .............................51 1. Survey Instruments .................... ............................... 51 2. Retail Banking Technical Appendix .... ............................... 57 References........................................... ............................... 61 Acknowledgements ................................... .............................65 v T e Economi�/'�1�"e�o_:�pO�remi e Si�n�g feamW6'arANS f`l. • Communication is perhaps the single most important activity for the success of human societies (Richmond & McCroskey, 2009). Signs are among the most important elements of visual communication. The visual communication provided by signs on our streets and highways is essential for an effective transportation system to aid in getting us where we want to go. Similarly, the visual communication provided by on- premise business signage is essential for the efficient function of our system of commerce and the success of many businesses. Effective signage can drive job creation, generate tax revenues, and provide quality access to goods and services. Communities depend on clear, legible and conspicuous signs for direction, safety and information. Businesses have a long established history of using signs to announce their products and services. On- premise business signs are especially important within the context of our highly mobile society where we frequently venture to unfamiliar areas. On- premise signage allows a business to cost - effectively communicate with potential customers who are moving through its trade area. The wayfinding, identification and marketing information, provided by on-premise signage is essential for assisting existing and potential customers in finding the goods and services they seek.This connection between customers and businesses is crucial for business success, and the local governments that depend on the employment and tax revenues which businesses generate. On- premise signs are a potentially powerful medium for commercial communication. Frequently, on- premise signage is a key element, which is often used with other media, to develop and maintain a business brand.The more consistently that brand is communicated, the greater the likelihood that existing and potential customers will associate it with specific expectations for price, product brand, or service quality at specific locations. On- premise signs that are designed well and properly located are especially important for generating impulse sales. While some goods and services are primarily purchased on the basis of careful consideration and forethought, many others are impulse purchases. Indeed, impulse sales generate an important part of revenue for a wide variety of retail businesses. One study (Conroy 2004) found 68 percent of purchases during major shopping trips were unplanned, and 54 percent on smaller shopping trips. In these cases, on- premise signage is critical. This study provides current analysis of how on- premise signage is linked to business success. A California study from the 1990s indicated that changes to the number and location of on- premise signage can have a direct impact on business performance (Ellis, Johnson & Murphy, 1997). That study— which used statistical analysis of signage, business performance and location- specific data for two business chains — found that an increase in the number of on- premise signs at a particular site had a significant and positive impact on sales, number of customer transactions,'and the amount of the average transaction. Case studies also have been used extensively in the small business and signage trade literature to document the impact of signage on the economic performance of businesses. For example, the New York State Small Business Development Center (Conroy 2004) details a number of case studies. One case, based on the experience of a car wash, documents the association of improved sign legibility and visibility with higher sales, as well as suggesting that the introduction of message boards can lead to increased sales. Another case, based on the experience of a small restaurant, documents the association of improved sign visibility and conspicuousness with increased sales. While these case studies do not provide conclusive evidence of the economic value of on- premise signage, they do provide insight to specific causal mechanisms that may be useful for interpreting the statistical analyses of the survey data. For decades, alancing the signage needs of individual businesses with the broader concerns of communities has been a concern of local officials, the sign industry, and planning and design professionals. Funding for essential local government services such as police, fire, roads, and education often depend on the success of local businesses. This linkage between on- premise signage, business success, and local government revenues (and the public services they fund) highlights the need for sign regulation process to be informed by research such as is being conducted here. Signs regulations can and should promote designs that promote business success while meeting appropriate local standards. The impact of on- premise signage is dependent on visual elements that may interact with and complement a business'marketing and branding strategies. Visual characteristics and perceptual concepts related to signs, symbols, semiotics, and the built environment have been addressed in Berger's Seeing is Believing (2007) and the two groundbreaking treatises byTufte (Envisioning Information (1990) and Visual Explanations (1997)). An appreciation for the layering of economic and marketing roles together with a visual identity program becomes important for understanding the contribution of on- premise signage within a comprehensive marketing strategy. The research presented in this report provides an analysis of the economic effects of signage within a context of varied scales and types of business. The objective of the study is to provide an updated assessment of the impact of signage on businesses and communities. Several earlier publications have identified key issues and economic factors associated with on- premise signage, with "The Economic Value of On- Premise Signage" "The Signage Sourcebook, and "What's Your Signage" providing reference and guidance for much of the past two decades. Except for the recent work of Taylor (2010;Taylor, Sarkees & Bang, 2012), the value of signage has lacked recent rigorous analysis. This study uses survey data and case studies to bring the economic impact of on- premise signage into a clearer focus within prescribed theoretical frameworks and a diversity of sign applications. Venturi and Brown in "Learning from Las Vegas" (1971) analyzed the Las Vegas strip, its sign /buildings relationships, and their impact within our urban / suburban environment. Their study systematically assessed the visual impact of signs within a concentrated market area with ever - changing views from the automobile. Venturi was the first to connect on- premise signage to commercial symbols that contained economic value in their meanings beyond the direct communication objective and architectural product. Berger,Tufte, and others have provided additional understanding to advance the symbolic meanings contained in signage and signs. It is within such a broader framework that this research utilizes case studies in combination with economic data to bring the value of on- premise signage into a clear focus. Case studies are used for illustrating the diverse sign typologies and as an analytical interface with communities, brand identity, and the "marketing functions "of signs (Taylor, 2010).