Memorandum. nl2/«o SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL. FROM: Harry Freitas

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1 COUNCIL AGENDA: 12/13/16 ITEM: 4.3 CITY OF SAN JOSE CAPITAL OF SILICON VALLEY Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Harry Freitas SUBJECT: SEE BELOW DATE: November 23, 2016 Approved Date nl2/«o SUBJECT: PP AN ORDINANCE AMENDING TITLE 23 OF THE SAN JOSE MUNICIPAL CODE RELATED TO ALLOWANCE FOR SUPERGRAPHIC SIGNS IN THE DOWNTOWN SIGN ZONE AND THE NORTH SAN JOSE SIGNAGE AREA, AND MAKING OTHER MINOR NONSUBSTANTIVE CODE CHANGES RECOMMENDATION (a) (b) (c) Adopt a resolution approving a Fourth Addendum to the Sign Code Negative Declaration (Resolution No ), for which an Initial Study was prepared, all in accordance with the California Environmental Quality Act, as amended. Approve an ordinance amending Parts 1 and 4 of Chapter and Parts 1 and 2 of Chapter of Title 23 of the San Jose Municipal Code: to allow and regulate supergraphic signs in the Downtown Sign Zone and the North San Jose Signage Area, including specific regulations related to the number, size, and location of supergraphic signs; to amend and add definitions related to supergraphic signs; and to make other nonsubstantive, ministerial, technical, or typographical changes to Chapter of the San Jose Municipal Code. Direct staff to report back to the City Council in three years with an evaluation of the effectiveness of the Ordinance and any recommended changes to improve outcomes. OUTCOME With approval of the proposed Ordinance, the City Council would adopt specific sign regulations implementing prior Council direction regarding supergraphic signs. These regulations would allow implementation of signs that further the City's objectives for visually vibrant signs that support Downtown and North San Jose businesses.

2 November 23, 2016 Page 2 BACKGROUND Supergraphics are very large wall signs consisting of a message printed on flexible material (generally plastic-based) attached to a building with adhesive or anchor bolts. An example would be the "Oracle" sign displayed during the 2016 Super Bowl. The Preferred Strategy for the Sign Code Update, approved by the City Council in 2010, included provision for supergraphic signs for on-site advertising in the Downtown Sign Zone and in North San Jose. The full City Council recently reaffirmed its interest in providing for the temporary display of this type of sign in the Downtown and North San Jose on November 15, 2016, when it approved the October 24, 2016, Community and Economic Development (CED) Committee minutes. The proposed Ordinance provides regulations for supergraphic signs in the Downtown Sign Zone and the North San Jose Signage Area in response to Council direction. ANALYSIS Existins Regulations The current Sign Code does not provide for "supergraphic" as an allowed sign category. Supergraphics would generally fall within the category of a "banner sign." The Sign Code defines a banner sign as "...a sign on cloth or other flexible material which projects from a building, pole or wire. Depending on its method of attachment, a banner sign may be a flat mounted sign, a projecting sign, or a freestanding sign." The Sign Code limits the size of banner signs and allows them to cover no more than 25 percent of a window. The largest banner signs are allowed in the Downtown Sign Zone. Buildings in the Downtown Sign Zone with a footprint of 75,000 square feet or greater may display up to five permanent banners, one of which may be up to 1,200 square feet in area. The current banner provisions do not allow for very large supergraphic signs. Other Cities' Regulations Table 1 provides a summary of some other large cities' regulations for supergraphic signs. Los Angeles and San Francisco have taken measures to preclude such signs, although San Francisco continues to allow them during special events. Provision for supergraphics is not included in a pending Atlanta signage initiative to activate that city's downtown. New York City, Denver, Las Vegas, and West Hollywood allow supergraphic signs subject to various parameters. Table 1. Supergraphic Regulations of Some Other Large U.S. Cities City San Francisco Los Angeles Times Square New York Summary of Regulations Based on a 2002 ballot measure, San Francisco prohibits supergraphics except during temporary special events. Since August of 2009, prohibits new supergraphic signs. Allows supergraphics for on- or off-site advertising without regard to size, number or duration.

3 November 23, 2016 Page 3 Denver Allows on or off-site advertising supergraphic signs in the Downtown Theater District consistent with a sign plan for the area. Signs may cover windows but may not be located on historic buildings. Atlanta A proposed sign program intended to activate the Downtown does not allow for supergraphic signs. Las Vegas Allows supergraphic signs on commercial buildings of 9+ stories and 120,000 West Hollywood Intent of the Proposed Ordinance sq. ft. for on-site advertising only. Allows supergraphics with a minimum size of 5,000 sq.ft. and no maximum size. Signs may cover windows. Duration is six months, or one year with an extension. The Downtown Sign Zone and the North San Jose Signage Area are two of the most intensely developed areas of San Jose that are key centers of business activity. Downtown San Jose is also the city's cultural center, attracting large numbers of visitors and residents to conventions, cultural activities, and sporting events. The Sign Code regulations for Downtown and North San Jose have been amended numerous times over the past decade to provide opportunity for on-site or non-commercial signage that supports existing businesses and creates a vibrant visual environment, while minimizing visual clutter. The proposed Ordinance would allow a new type of large-scale sign not currently addressed in the Sign Code that is commensurate with the scale of high-rise buildings (exceeding 100 feet in height) in these areas. The regulations are intended to allow these signs in a manner that supports business and cultural activities, adds visual interest, and minimizes visual clutter. Further, in accordance with Municipal Code Section , supergraphic signs will not be permitted in violation of any applicable statute or regulation of the State of California or of the United States, including but not limited to the Outdoor Advertising Act, Business & Professions Code Section 5200 et seq. Overview of Proposed Regulations Staff is recommending that the Sign Code be amended to define supergraphic sign as "a sign, other than a banner sign, which consists offlexible material attached flush to a building faqadef and to allow these signs on high-rise buildings in the Downtown Sign Zone and the North San Jose Signage Area, subject to regulations related to the number, size, and location of supergraphic signs including the permitting requirements of Part 4 of Chapter of the Sign Code. The proposed Ordinance would allow development permits to be issued for supergraphic signs on non-residential buildings during time periods that coincide with up to 40 Large Downtown Conventions or Large Downtown Special Events per calendar year, and for additional limited-duration supergraphic signage on non-residential buildings. The proposed regulations are discussed in further detail below. Suversraphic Sims for Laree Downtown Conventions or Larse Downtown Special Events The proposed Ordinance would allow supergraphic signs associated with a Large Downtown Convention or Large Downtown Special Event to be displayed on a non-residential building that

4 November 23,2016 ( Page 4 is 125 feet or greater in height. A "Large Downtown Convention" is a convention or other event held in the Downtown Core Area with 700 or more San Jose hotel rooms booked on a single night by the San Jose Convention and Visitor's Bureau or by the convention or event sponsor. A" Large Downtown Special Event" means a Downtown Special Event, as defined in Municipal Code Section , with a projected attendance of 10,000 people or more as determined by the City Manager designee authorized to declare such events, and a permit for such event approved pursuant Chapter of the Municipal Code. Team San Jose, which handles hotel rooms for conventions and other events, has indicated that it has booked 700 or more San Jose hotel rooms for approximately 23 downtown events over the past year, including the Oracle convention. The Office of Cultural Affairs (OCA), which issues permits for downtown special events, reports that 16 events in the past year had an attendance of 10,000 or greater. The Rock and Roll Marathon is an example of an outdoor event that would qualify as a Large Downtown Special Event. Based on the estimates, the proposed Ordinance places a limit of 40 on the total number of combined Large Downtown Conventions and Large Downtown Special Events during which supergraphic signs could be displayed on buildings. The proposed Ordinance would allow supergraphic signs to be displayed on qualifying buildings for a maximum of seven days before and seven days after a Large Downtown Convention or Large Downtown Special Event. These relatively short timeframes would give local businesses an opportunity to display supergraphic signs during major events, and at the same time, help to ensure that the supergraphic displays are fresh, ever-changing, and do not result in long-term effects on interior office environments. Consistent with existing Sign Code requirements, supergraphic signs displayed during these events could not be used as billboards (for offsite advertising), but would be limited to on-site or noncommercial messages. A qualifying building could display a message promoting a business or product on that site or could display a noncommercial message, including expressions on debatable topics such as religion, political views, commentary on arts, and philosophical expression in compliance with Code Section A hotel or other building that serves as a convention/event venue, and meets the height requirements, might be able to advertise that convention or event as an on-site message. Limiting supergraphic signs to on-site or non-commercial advertising focuses these signs on local businesses, products, and events, and avoids potential conflicts with current Envision San Jose 2040 General Plan Policies. Based on input from the Fire Department, the proposed Ordinance specifies that supergraphic signs that cover windows must be located at a minimum of 75 feet above grade. The Fire Department has indicated that this fire safety measure is provided so that signs do not interfere with ladder access to exterior windows that may be needed for ventilation or other fire suppression purposes. The proposed minimum building height of 125 feet for supergraphic signs would provide an adequate height for display of a supergraphic sign above the minimum height of 75 feet for signs that cover windows or doors, and is intended only to be applicable to Large Convention and Special Event signs.

5 November 23,2016 Page 5 Supergraphic Sisns on Non-Residential Buildings and Parkins Garases The Ordinance would allow additional opportunity for limited-duration display of supergraphic signs that do not cover windows, doors, or interfere with other required ventilation on nonresidential buildings 100 feet or greater in height, or parking garages with three or more levels of parking above grade. Because these signs would not cover windows or doors, they would not be subject to the 75-foot minimum height; however, they would need to conform to Building Code requirements for garage ventilation. The Ordinance would allow such signs to be displayed for a maximum of 120 consecutive days, and no more than 120 days total in a calendar year. A number of non-residential buildings in the Downtown with blank walls could accommodate large supergraphic signs, and there may be some potential in North San Jose as well. Both Downtown and North San Jose have parking garages suitable for such signs. These signs would also be limited to on-site advertising and non-commercial messages. This provision would allow an additional opportunity for display of supergraphic signs for a longer period of time where signs would not affect the quality of interior building space. Other Requirements for Supergraphic Signs The proposed Ordinance specifies requirements for supergraphic signs pertaining to historic buildings, sign placement, Building Code requirements, and permit process. Historic Buildings. The Ordinance would prohibit supergraphic signs on categories of historic landmark structures or structures that qualify for landmark status, as identified on the City's Historic Resources Inventory. This provision is not expected to limit significantly supergraphic signs because few historic buildings conform to the proposed minimum height requirements. Sign Condition and Placement. The proposed Ordinance specifies that supergraphics may not be roof signs, and it would limit supergraphic signs to a single fafade, but would allow some flexibility for a sign to extend onto a second fafade, if the sign does not exceed the area otherwise allowed on a single facade. The proposed Ordinance would put no other limit on the sign area except the limits posed by placement requirements. However, as noted above, under Municipal Code Section , supergraphic signs will not be permitted in violation of any applicable statute or regulation of the State of California or of the United States, which may impose additional limitations on supergraphic signage visible to highways. Permit Process. The Building Division recommends that proposed supergraphic signs be reviewed for compliance with flammability, ventilation, and other Building Code requirements, and that these signs may require building permits. For these reasons, the proposed Ordinance specifies that a supergraphic sign requires approval of a development permit. Concurrent Display. The proposed Ordinance prohibits concurrent display on a building of a sign authorized for a Large Downtown Convention or Large Downtown Special Event and a sign authorized for a non-residential building.

6 November 23, 2016 Page 6 EVALUATION AND FOLLOW UP Staff recommends that the effectiveness of this proposed Ordinance be evaluated in three years to assess how well the regulations are working and whether additional revisions are needed. POLICY ALTERNATIVES Alternative #1: Approve an ordinance that allows display of supergraphic signs for longer time. Cons: Longer displays of signs could reduce the visual interest that new images and messages offer and longer display of signs over windows could have a negative effect on the quality of interior office space. Pros: Longer displays may encourage businesses to invest in supergraphic sign installation. Reason for not recommending: This alternative does not support the City's goals for vibrant and visually interesting signage and high quality office space. PUBLIC OUTREACH Public outreach complies with the City Council's Public Outreach Policy and the Municipal Code. A notice of the public hearing for this ordinance was ed to a list of interested individuals, published in the San Jose Post-Record, and posted on the City's website. Community outreach conducted for the 2010 Sign Code Update solicited community response regarding supergraphic signs. This input was generally quite positive; however, participants very consistently expressed negative reactions to signs that covered windows and doors, or were located on historic buildings. Objections to signs covering windows were based on concern that such signs replace a building's architecture and block natural light and views that would otherwise be available to building occupants. Participants in a focus-group meeting held October 20, 2016, on pending signage initiatives that was attended by representatives of the Preservation Action Council of San Jose, the Chamber of Commerce, and the Downtown Association questioned whether there were potential safety and energy effects of placing supergraphic signs over windows, and they commented on potential aesthetic and quality-of-life effects on the workplace. These stakeholders indicated such signs were not appropriate on historic buildings. The stakeholders support signs on parking garages if ventilation is maintained. Some of the attendees observed that the timing of implementing Sign Code changes for supergraphics should be coordinated with how and when a Downtown Sign Intensification program is implemented, and that oversight of design standards for a signage intensification program would be positive for supergraphics. Members of the public attending a community meeting on October 20, 2016, expressed concerns about additional advertising having a negative effect on quality of life, and in particular, on children to the extent that seeing such advertising was unavoidable. Attendees also pointed out that the City would not have control over sign content. One individual stated that supergraphic signs should not be located north of Highway 237. The Sign Code proposals were discussed at the CED Committee meeting

7 November 23, 2016 Page 7 on October 24, 2016, and the meeting minutes were reported out to the City Council on November 15, COORDINATION This memo was coordinated with the Fire Department and the Office of Economic Development. COMMISSION RECOMMENDATION/INPUT No commission recommendation or input is associated with this action. CEOA Negative Declaration, File No. PP10-111, and Addenda thereto File Nos. PP12-041, PP13-015, PP andpp /s/ HARRY FREITAS, DIRECTOR Planning, Building and Code Enforcement For questions, please contact Jenny Nusbaum, Supervising Planner, Ordinance and Policy Team, Planning Division at (408) Attachment: Supergraphic Sign Examples

8 ATTACHMENT 1 - SUPERGRAPHIC SIGN EXAMPLES luwfcday Customers Figure 1. Oracle Supergraphic Sign displayed in February 2016 Figure 2. For illustration only: Supergraphic Sign on a Parking Garage not in San Jose