That the City Council consider and approve the first reading of ORDINANCE NO. ______ ENTITLED:  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING ZONE CHANGE 22-03 TO REPEAL CHAPTER 15.40 (OUTDOOR ADVERTISING SIGNS AND STRUCTURES) OF TITLE 15 (BUILDINGS AND CONSTRUCTION), ADD CHAPTER 18.23 (SIGN STANDARDS) TO TITLE 18 (ZONING) AND AMEND VARIOUS SECTIONS OF TITLE 18 (ZONING) FOR CONSISTENCY WITH CHAPTER 18.23 (SIGN STANDARDS) OF THE LA HABRA MUNICIPAL CODE AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15061(B)(3) OF THE CEQA GUIDELINES.

On January 17, 2023, pursuant to Chapter 18.78 (Zone Changes) of the La Habra Municipal Code (LHMC), the City Council directed staff to initiate Zone Change 22-03 to update the City's sign regulations, with the goal of reducing sign proliferation, and creating a user-friendly sign code that is easier to understand and implement. Following City Council direction, staff prepared a draft ordinance that was presented to the Planning Commission at a public hearing on August 28, 2023. In response to public comments provided during the hearing, the Planning Commission continued the item until a date uncertain in order to provide staff with time to provide the Commission with additional information regarding electronic message signs. Following a public hearing on October 23, 2023, the Planning Commission approved a resolution recommending approval of the draft ordinance, which includes provisions to allow animated, digital and electronic message signs, subject to the approval of a conditional use permit and certain regulations and limitations.

The staff reports and minutes from the two Planning Commission meetings are provided as Attachments 2 through 5. The proposed draft ordinance (Attachment #1) is subject to the City Council's final review and approval. Should the ordinance undergo both a first and second reading and be adopted by City Council, it will become effective 30 days after said adoption. 

PUBLIC OUTREACH
Staff shared information about the proposed sign code update with the community at the following events and meetings:

 
On April 25, 2023, at the City's Top 25 Business luncheon, staff began informing business owners of the proposed sign code update. In May 2023, staff visited many of the city's local businesses in order to promote a sign code workshop, whereby they could learn more about the proposed sign code updates. Additionally, a copy of the first draft sign code was also made available for public review on the City's website.

On June 28, 2023, staff conducted the Sign Code Workshop at which a total of 11 local business owners attended. A few of the business owners expressed their desire for the City to allow electronic message signs. Staff explained these signs were currently prohibited and there were no plans to allow these types of signs, except for electronic message signs at public schools or signs the City may choose to install at City-owned facilities in the future, as neither public entity are subject to the Zoning Code. Staff noted that the only permitted electronic message sign on private property within the City was the sign for Howard's Appliances, which was approved through a zone variance in 1988. 

In addition to requesting electronic message signs, some business owners stated the need and importance of having adequate temporary signage; and, as a result, staff added language to allow the use of portable signs. Only one portable sign would be permitted per business and limited in size to no taller than 36 inches and no wider than 24 inches. In addition, these signs must be stored inside the building when the business is closed. The requirements for these signs can be found on page 41 of Attachment #1. An A-frame sign would be the typical type of sign that businesses could use in compliance with these requirements.  In addition to utilizing portable signs, under the existing and proposed sign code, business owners may apply for a banner permit, which allows the display of a banner for up to 30 days, three times a year. Feather signs, signs typically made of fabric and supported by a single pole, are proposed to continue to be prohibited in La Habra, and would not be permitted as a portable sign or through a banner permit.  Finally, some business owners expressed concerns over their ability to retain legal non-conforming signs if the new sign code is adopted. Staff explained that non-conforming signs that were previously legally established could likely remain in place unless there is a request to modify and/or expand the non-conforming sign, which would then result in the legal non-conforming status ending and may require any modified and/or expanded sign to fully comply with the City's new sign standards. 

On August 28, 2023, and subsequently on October 23, 2023, the Planning Commission held public hearings regarding the proposed sign code update. More information about these public hearings is provided below under "Planning Commission Action", and the associated staff reports and minutes can be found in Attachments 2 through 5 of this staff report. On October 23, 2023, prior to the Planning Commission meeting held later that day, Mr. Glenn Vodhanel, owner of Gold'N Coins, submitted written correspondence, dated October 20, 2023, to the Planning Commission to convey his areas of concern and suggestions for the proposed sign ordinance. The Planning Commission did not include any of Mr. Vodhanel's suggestions in the draft ordinances that are now being recommended for City Council approval. Mr. Vodhanel submitted the same correspondence to the City Council; his correspondence, along with staff's analysis, can be found in Attachment #7 to this report.
 

The following is a summary of components of the draft proposed ordinance.

The City's current sign regulations, codified as Chapter 15.40 (Outdoor Advertising Signs and Structures) of the LHMC, were last amended in 2010. These sign regulations have not since been updated for consistency with new Federal and State law requirements, including, but not limited to, relevant court decisions regarding freedom of speech as provided for by the First Amendment of the United States Constitution. In addition, the existing sign regulations have language that is outdated and difficult to implement as they reference obsolete sections of the California Building Code that have since been updated. The existing regulations also contain design standards, typically found in Title 18 (Zoning). Proposed Zone Change 22-03 would move the City's sign standards from Title 15 (Buildings and Construction) to Title 18 (Zoning) and repeal Chapter 15.40 in its entirety.  Chapter 15.40 is provided as Attachment #6 for comparison purposes with the draft ordinance (Attachment #1).

If adopted by Council, this new chapter of the Zoning Code (Title 18) would include the following ten sections which would clearly describe the City's requirements for all signs and sign structures that are visible from the public right-of-way or adjacent properties:
 

The majority of the standards contained in this chapter are generally the same in substance as those currently required by Chapter 15.40 (Outdoor Advertising Signs and Structures). City staff have worked with the City Attorney's office to develop proposed sign standards that are intended to comply with all current Federal and State Laws including, but not limited to, the free speech clause of the First Amendment and the Fifth Amendment related to protections against the taking of property, due process provisions, and registered trademark protections. The new proposed sign regulations focus on time, place, and manner and provide a clear and equitable review process. In addition, the proposed Chapter 18.23 (Sign Standards) addresses common sign types that were not previously addressed in Chapter 15.40 (Outdoor Advertising Signs and Structures). These sign types include menu boards for drive-through restaurants, sign regulations for canopies and awnings, regulations for the use of fuel pump video displays that are used in some service stations, real estate signs standards, and the implementation of sign programs to allow for flexibility. The proposed Chapter 18.23 received input from other City Departments, including the Building, Safety and Code Enforcement Division and the City Attorney's Office, with the goal of establishing a seamless transition from Title 15 (Buildings and Construction) to Title 18 (Zoning) of the LHMC.

Other Related Amendments
Staff also propose some minor amendments to several other sections of Title 18 (Zoning) to provide consistency with the proposed Chapter 18.23 (Sign Standards). Definitions that are currently in Chapter 15.40 (Outdoor Advertising Signs and Structures) will be moved and updated, as needed, in Chapter 18.04 (Definitions). Staff is making a concerted effort to list all definitions referenced in Title 18 (Zoning) into one chapter to help ensure consistency in terminology across development standards. Staff has also reviewed the existing definitions from Chapter 15.40, and added to these definitions, as needed, to make sure that terms are clearly defined and easy to understand, in order to reduce the potential for the subjective interpretation of the LHMC requirements. 

At the August 28, 2023 Planning Commission Meeting, staff presented Zone Change 22-03 to the Planning Commission. During the public comment portion of the public hearing, two individuals requested to modify the proposed Zone Change to allow electronic message signs rather than prohibit them. In addition, one of the individuals also requested that the Commission consider allowing window signs to encompass up to 50 percent of the area of a window rather than maintaining the maximum window coverage currently permitted, which is 33 percent. The input regarding electronic message signs was consistent with input received at the public workshop held by staff on June 28, 2023. After hearing the public testimony and further discussion, the Planning Commission generally agreed that they needed further information to help them determine whether electronic message signs should be permitted in La Habra. As a result, the Planning Commission voted 5-0 to continue Zone Change 22-03 to provide staff additional time to further research, and potentially modify, the draft ordinance. The Planning Commission did not recommend any changes to the requirements for window signs or any other portion of the Zone Change. Following the meeting, staff conducted a survey of other cities and found that the majority of other jurisdictions, including Anaheim, Brea, Buena Park, Diamond Bar, Fullerton and Whittier, require discretionary approval for electronic signs, and only allow electronic signs for select land uses. Staff found that a few other cities in the region, including La Mirada, Orange and Yorba Linda, completely prohibit these types of electronic signs. 

On October 23, 2023, the Planning Commission held a second public hearing for Zone Change 22-03. Staff provided a staff report and presentation describing the research that it had completed regarding electronic message signs. In addition, the Commission received two drafts of the proposed sign ordinance: one to continue to prohibit animated, digital and electronic message signs (staff's recommendation); the other to allow these types of signs, subject to the approval of a conditional use permit, and only for certain non-residential land uses. The uses were limited to theaters, cinemas, and auditoriums; educational institutions; hospitals/medical centers; and churches and other places used for religious worship. These uses must be the sole facility or business located on the lot, or located within an integrated development on a lot that is over five acres. In addition, the animated, digital and electronic message signs could only be constructed as wall or freestanding signs, and would need to meet the same design standards as static wall or freestanding signs. Following staff's presentation, two individuals provided comments in favor of electronic message signs. After deliberation, the Planning Commission voted 4-0 to recommend City Council approval of the draft ordinance that would allow animated, digital display and electronic message signs, subject to a conditional use permit and certain regulations and limitations. The staff report and minutes are provided as Attachments 4 and 5.  
 
The draft ordinance that the Planning Commission recommended for City Council approval is provided as Attachment #1 to this staff report. However, it remains staff's recommendation that the City continue to prohibit animated, digital display and electronic message signs. Therefore, staff has also provided the City Council with the draft ordinance that was presented to the Planning Commission that prohibits animated, digital display and electronic message signs (Attachment #8).

The City Council has several options:

This Zone Change implements the following FY 2023/24 City Council Goals and Objectives:

Goal 5 - Development Activity and Business Assistance