Planning commission pauses proposed sign-fee jump, asks staff and industry to negotiate

Planning Department staff told the Planning Commission it is proposing an ordinance to tighten refund, waiver and phase-payment rules for the general-advertising sign program, include wall signs, and raise the annual inventory maintenance fee. Staff said the changes would generate roughly $321,000 annually — about $168,000 from the listed program changes and $152,000 from the maintenance-fee increase — and that the revenue is assumed in the FY2010 budget, so the ordinance should be forwarded to the Board of Supervisors to avoid a budget shortfall.

The proposal would raise the one‑year maintenance fee to $211 per sign face (staff said the increase is temporary for one year and would revert to $75 in 2011) to cover litigation, city-attorney costs and higher fringe‑benefit rates. Staff emphasized the program includes annual reporting to balance revenues and expenditures and that any over‑recovery would lower future fees.

Representatives of major outdoor-advertising firms urged a short continuance to negotiate. Ryan Brooks of CBS Outdoor said his company supports the department’s intent to close loopholes on wall‑sign definitions but called the one‑year fee “constitutionally” suspect and said the staff report did not justify the size of the increase. Michael Colbruno of Clear Channel Outdoor said changing the fee base from “structure” to “face” would multiply charges for multi‑faced signs and that small signs in the current economy could lose two months of revenue to the higher fee. Both asked the commission for time to work with staff to clarify language and to avoid unintended consequences.

Commissioners questioned timing. Commissioner Antonini asked whether the ordinance must be approved that night; staff replied that the revenue is already assumed in the Board of Supervisors’ budget committee action and urged a quick resolution to avoid creating a budget hole, while also saying a short continuance might be possible. After discussion a motion was made to continue the item so staff can meet with industry and clarify the language; the motion to continue to the July 9 calendar was put to a vote and carried.

What happens next

The commission continued Item 14 to a later hearing to allow staff and industry to negotiate the definitions and fee mechanics noted in the draft ordinance and to align the legislation with the Board of Supervisors’ budget assumptions. If staff and industry cannot reconcile differences at the continuance, the commission may either adopt the ordinance as revised or bring it back with additional changes for the commission’s recommendation to the Board.