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PUBLIC HEARING TO ADOPT AN ORDINANCE AMENDING STOCKTON MUNICIPAL CODE, TITLE 11, CHAPTER 11.32, DOWNTOWN PROMOTIONAL BANNER FRANCHISE
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RECOMMENDATION
It is recommended that the City adopt an ordinance amending the Stockton Municipal Code, Title 11, Chapter 11.32, Downtown Promotional Banner Franchise.
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Summary
In December 2008, the City Council adopted Ordinance No. 030-08 C.S. (Attachment A) allowing the Downtown Stockton Alliance (“DSA”) to install banners with advertisements in the downtown core as outlined in the Downtown Promotional Banner Franchise. The current franchise expires on November 5, 2018, and DSA desires to amend the existing ordinance and extend the franchise an additional ten years. A nominal, annual fee will be collected by the City from DSA for each banner that DSA installs.
DISCUSSION
Background
In 2007, Destination Development Inc. (DDI) was hired to perform an assessment of the City of Stockton and to prepare a branding, development, and marketing action plan for the City. DDI specializes in community branding, development, marketing, and tourism. DDI has assisted nearly 1,000 communities in North America with their efforts to become outstanding destinations.
In July 2008, the final Stockton Branding, Development, and Marketing Action Plan was presented to the community. Since the Branding, Development, and Marketing Action Plan was finalized, both DSA and Stockton’s Convention & Visitors Bureau have adopted resolutions approving the Brand recommended in the action plan.
At DDI’s recommendation, Stockton City Council adopted the Downtown Promotional Banner Franchise ordinance on December 16, 2008, granting the DSA permission to place and maintain banners with advertising on light poles within Downtown Stockton for a five-year period. The franchise was extended for an additional five-year period beginning November 5, 2013. The current franchise granted to DSA on December 5, 2013, is scheduled to expire November 5, 2018. The Banner Franchise Ordinance has proven to be a successful marketing tool, fostering a positive perception of Downtown Stockton as both a business and tourist destination. Banners are all designed using a consistent color pallet and are changed periodically to celebrate seasonal events and activities.
Present Situation
The current Downtown Promotional Banner Franchise ordinance was renewed and adopted effective November 5, 2013, and expires on November 5, 2018. DSA has expressed a desire to extend the ordinance an additional ten years but has requested changes to the current ordinance. Staff recommends extending the ordinance, which allows “sponsorships” to help fund the installation of colorful banners in City rights-of-way. The City shall have the right to examine and review any proposed advertisement prior to installation for the purpose of approving or denying any proposed advertisement.
DSA will install banners on standard light poles and antique-style light poles. The standard light poles are approximately 28 feet in height, and the antique-style street lamps are approximately 16 feet tall. There shall be no limit on the percentage of the banner which may be used for advertising space, the current ordinance limits advertising space to no more than 20 percent of the banner. City staff will continue to review all artwork for the banners to ensure consistency prior to installation.
DSA has requested a reduction in the current fees paid per light pole. With the current fee schedule, the DSA pays the City of Stockton $75 per standard light pole per year and $40 per antique-style light pole per year. With the proposed fee schedule, the DSA will pay the City of Stockton $25 per standard light pole per year and $10 per antique-style light pole per year. The DSA is also proposing to reduce the minimum number of banners placed on standard light poles to be installed and maintained each year from 45 to 25 banners. The reduced costs will allow the program to break even for the DSA. The DSA will inspect the banners monthly to ensure they are kept in good and safe condition. The DSA will also be required to obtain all necessary permits associated with the installation and maintenance of the banners.
A franchise ordinance is necessary since DSA desires sponsorship recognition on the banners and will be installing them on City property per Charter Article XXI “Franchises” Sections 2100, 2101 and 2108 (Attachment B - Redline Version of Franchise Ordinance). Approval of this ordinance requires a two-thirds vote of the City Council. If approved, the amended ordinance would become effective 30-days from Council adoption.
PUBLIC NOTICE
A notice of this public hearing was published in The Record on October 3, 2018.
FINANCIAL SUMMARY
The current franchise ordinance with DSA to place and maintain banners on City light poles allows for the collection of $3,775 each year. Continuing the franchise ordinance with DSA to place and maintain banners on City light poles, at the new proposed fees, will allow for collection of a minimum of $625 each year, which will be deposited into General Fund Economic Development Department Rents/Leases/Concessions Account No. 010-1750-362.
Attachment A - Ordinance No. 030-08
Attachment B - Redline Ordinance for Downtown Banner Franchise