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HomeMy WebLinkAbout10B - Seasonal Advertising Signs on Fences on City Athletic Fields MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: CITY COUNCIL AGENDA REPORT February 4, 2007 10B Kelly Meyer, Asst. City Manager CONSIDER APPROVAL OF A RESOLUTION ADOPTING AN ADVERTISING SIGNAGE POLICY FOR SEASONAL SIGNS ON INTERIOR FACING FENCES IN CITY ATHLETIC FACILITIES AND A RESOLUTION DIRECTING THE STAFF TO INITIATE A ZONING ORDINANCE REVIEW AND AMENDMENT, IF NECESSARY. Introduction The purpose of this agenda item is for the City Council to consider adoption of a policy that would permit Prior Lake civic and athletic organizations to partner with the City to sell banner advertising for display on the interiors of certain athletic fields in City parks. The policy outlines the terms, conditions and responsibilities of the parties. Historv In April 2007, the Prior Lake American Legion Baseball team made a presentation to the Parks Advisory Committee requesting that the committee consider allowing the team to sell advertising to be displayed on the outfield fencing (interior or field side) at Veterans Memorial Park. The PAC directed staff to outline the issues of such a proposal, check with other cities and bring the item back to the PAC for discussion. The PAC discussed the issues related to a policy of this type at its meetings in September 2007, November 2007, and in January 2008. Current Circumstances The Parks Advisory Committee discussed a number of issues related to such a policy, including what parks should be included under the policy, roles and responsibilities of the parties, type of signs, fee structure, revenue sharing, and code compliance. They sought input from staff, the City Attorney, PLAY, and the Prior Lake VFW in making its recommendation. Conclusion The recommended policy is summarized below. Policy Summary The proposed policy provides for the following: Location Pro osed Advertisin Si na e Polic First locate signs at Veterans Memorial Field; once that outfield fence is full, include a field at The Ponds, once all fields at The Ponds are full, include Thomas Ryan park, and so on. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 Sign Material Large hole open mesh polypropylene windscreen. City Sign approval, facilitate sign design and purchase when Responsibility required, collect fees, distribute commissions, install, remove and store signs. Agent Must be a not-for-profit civic or athletic organization that Responsibility represents and supports Prior Lake, or be sponsored by a not-for-profit organization or activity that represents Prior Lake. Agents are responsible for selling signage space, collecting fees, and coordinating with the City. Revenues 50% commission to Sales Agent. 50% to park equipment replacement fund. Fees Annual fee for 8' X 10' fence space: $500 annually plus sign. If purchase 2 seasons upfront: $900 plus sign. If purchase 3 seasons upfront: $1200 plus sign. Signs Signs may be provided by the advertiser, as long as the sign meets the City's design criteria. The City may also facilitate purchase of sign through a local vendor at an approximate cost of $325 per 8'x1 0' sign. Barring extreme conditions, signs should last 2 - 3 years or more before fading. Zoning Code The current zoning code does not permit signage of this Compliance type in City parks. If the Council adopts the policy, it would also need to initiate a zoning amendment by adoption of the attached resolution. Advertising in athletic facilities is probably most common in privately owned professional athletic organizations. However, many people may also remember small-town ball parks with their plywood painted outfield advertising. In the metro area, there seem to be very few municipalities that permit advertising sales (or have specific policies in place) for their community parks. For cities that we found that did have advertising policies, the policies were usually specific to ice arenas and golf courses, and there was not much consistency in programs in terms of how they were managed or the fees charged. The proposed policy for Prior Lake seeks to outline what is best for this community. Below is the rationale for the key recommendations of the policy. Proaram ODeration: The staff, City Attorney and PAC believe that the City should retain management of its public assets, whether it is a building, field or fence. The policy provides that the City be responsible for setting fees, approving signs, facilitating purchase of signs when requested, marketing assistance, and for the installation, removal and storage of signs annually. This will assure that there is consistency in the application of the policy, and assure that each sales agent or advertiser is treated equitably. Based upon the responsibilities the City 2 is assuming, the City Attorney expressed concern about whether there is a basis to share the revenue, or such a high percentage of the revenue, with other Prior Lake organizations. Location: The initial request to consider a program of this type was specific to Veterans Memorial field. However, the PAC believed that if a policy was to be considered that it should address the prospect that other civic and/or athletic organizations may be interested in selling advertising as well, and that the policy should be applicable equally to any not-for-profit civic or athletic group representing Prior Lake. By utilizing Veteran's Memorial Field first, followed by The Ponds, and then Thomas Ryan fields, fields don't end up with sporadic or intermittent signs posted which should be more aesthetically pleasing, streamline installation and removal for our maintenance staff, and sales agents will only be limited in the number of signs they sell by the amount of outfield fencing in our community parks. Park Maintenance Supervisor AI Friedges believes each baseball/softball field can accommodate between 40 and 45 8'x10' signs. Initially the policy does not include signage for the baseball field at Lakefront Park which utilizes a break away four-foot fence, or for the hockey rink boards which will involve an entirely different process and material considering the time of the season and the nature of the boards. Sian ContentlZonina Ordinance: The City Attorney recommends signs should fall into the category of "Commercial Advertising Signs." Commercial advertising signs, for the purpose of the policy, are signs that advertise commercial enterprise, goods, services, products or support for an athletic team or activity. One of the chief difficulties with these signs is that they are offsite advertising which is not presently permitted in any zoning district in the City. At the last zoning ordinance workshop, the Council indicated that it is not interested in allowing offsite advertising signs. Assuming this remains the Council's position, the challenge will be how to distinguish these signs from other offsite advertising signs. The City Attorney will need to weigh in on this question. The regulation of commercial signs must be content neutral. Sian Material; The sign material to be used was of particular concern to the park maintenance staff because of the additional load it could put on the existing fencing, and because of the ease of installation, removal, storage and maintenance of the signs. Most of the city's athletic fields have chain link outfield fencing. The ball field at Veterans Memorial park currently has a chain link fence with a windscreen. The material proposed is a large-hole open mesh polypropylene windscreen that can be printed with full color graphics. This material allows wind to pass through the signs and eliminate the significant wind loads that occur with the more traditional materials like wood, aluminum or vinyl. The material is also resistant to mildew, holds up well to weather exposure and is easy to install. Revenues: Because these are public facilities, and because the construction, maintenance and improvement of these facilities is a result of public investment, 3 it seems appropriate that the City taxpayer realize a benefit from this program. The City Council has also directed that the City seeks out additional revenue sources where appropriate. There was much discussion among the PAC members about the division of any revenue. The policy provides that the sales agent would receive a 50% commission from selling fence space, and that the revenue retained by the City be directed into a new park equipment replacement fund. There would be no revenue generated from the actual cost of the sign itself. The City Attorney's concerns are set out above. Advertisina Fees: The policy proposes that advertisers who wish to lease fence space to display their advertising banner would pay: 1. the cost of their sign; and 2. an annual lease fee for use of the fence space. The estimated cost of a sign of this type and size, utilizing a full-color process, is $325. Depending upon the background color used and weather conditions, the signs should last 2-3 years before fading or needing replacement. Some potential advertisers may wish to provide their own sign because they can get it at a lesser cost. This is permitted as long as the sign meets the City's material and size and content criteria. The advertiser is responsible for the replacement of the signs if they are damaged, vandalized, or in disrepair. The policy also provides a discount if advertisers purchase a multi-year advertising package. . Annual lease fee (April 1 - Sept. 30) $500 (plus sign) . 2 seasons purchased upfront: $900 (plus sign) . 3 seasons purchased upfront: $1200 (plus sign) . New advertising sold mid-season, would be prorated at $83/month. For the sake of example, if 45 spaces were sold at Veterans Memorial field for 1 year, the lease revenue would be $22,500. At the SO/50 division of proceeds proposed in the policy, $11,250 would be the commission distributed to the sales agents, and $11,250 would be directed to City's park equipment replacement fund. These fees would be up for renewal annually, except in the case of a multi-year package. VFW: The PAC directed that the staff solicit input from the VFW given their past contributions to Veterans Memorial field. Staff met with VFW President Lyaman McPherson, and also spoke to the VFW Board about the proposed policy. The VFW was generally in support of the project as long as it benefited civic and athletic not-for-profit organizations that represented Prior Lake. The other questions the group had were related to how they might be a sales agent, and the cost of purchase advertising. The PAC is recommending that if the VFW wishes to advertise itself and provide a sign that complies with the terms of the City's policy, that the VFW have a reserved 8'x10' space at Veterans Memorial field for their advertising at no cost. This is in consideration of the funds and effort the VFW has devoted over the years to this park. Marketina: The City would work to put together marketing materials to be used by the sales agents. We would also work to promote the advertising policy on the City's web site, in the Wavelength, and on Cable Channel 15. 4 Timeline: If the program is effective for the 2008 season, time is of the essence because time would be needed to: 1) amend the zoning ordinance (because of public hearing notification requirements, the earliest this process can be concluded is April 7); 2) sell the advertising, 3) get signs made, and 4) have signs installed in April. The timeline is tight, but marketing material and the sales agent contract could be available by March 1. The first date for installing the signs would be as soon as possible following zoning ordinance amendment - say, April 15. FINANCIAL IMPACT: The financial impact to the City will primarily be in labor costs for administering the policy and installing any signs, with additional costs in providing marketing materials and removing signs for storage. The amount of staff time dedicated to this project will largely be driven by the number of spaces sold. If the City concurs with the PAC that its revenue should be directed to a park equipment replacement fund, the General Fund would absorb the costs for staff time and supplies. The staff and PAC believe the policy proposes a partnership that both creates a revenue source for the City, and a fund-raising opportunity for not-for-profit civic and athletic organizations representing Prior Lake. ALTERNATIVES: 1. Adopt a resolution approving the Advertising Policy for Seasonal Signs in City Parks, and a resolution directing the staff to initiate a zoning code amendment, and work with the City Attorney to draft appropriate contracts. 2. Adopt the Advertising Policy for Seasonal Signs in City Parks with amendments. 3. Motion and Second to table the proposal indefinitely. RECOMMENDED Alternative NO.1 MOTION: Frank Boyles, City 5 Motion By: Second By: WHEREAS, The City has constructed athletic fields to serve citizens of the Prior Lake area; and WHEREAS, The City Council desires to establish revenue sources which can assist in the cost of the maintenance and replacement of such facilities; and WHEREAS, Sponsoring groups for athletic teams playing on City fields are seeking a means of raising funds to support the teams and the Prior Lake citizens who are members thereof; and WHEREAS, To the extent that funds are provided for field maintenance from this source the public can benefit from a lower tax levy expense. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The policy entitled "Advertising Signage Policy for Seasonal Signs on Interior Facing Fences in City Athletic Facilities," dated February 4,2008, is hereby approved. PASSED AND ADOPTED THIS 4th DAY OF FEBRUARY 2008. YES NO Hauaen Hauaen Erickson Erickson Hedbera Hedbera LeMair LeMair Millar Millar Frank Boyles, City Manager www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 Motion By: Second By: WHEREAS, The City Council has seemed it appropriate to adopt an "Advertising Signage Policy for Seasonal Signs on Interior Facing Fences in the City Athletic Facilities," dated February 4, 2008; and WHEREAS, The City Council desires that there be consistency between the zoning ordinance and this Policy; and WHEREAS, In such instances the City Council may initiate a review and revision of the zoning ordinance by resolution. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The staff is hereby directed to review the zoning ordinance as it relates to the "Advertising Signage Policy for Seasonal Signs on Interior Facing Fences in City Athletic Facilities," and initiate any and all amendments it deems appropriate to assure continuity between the two documents. PASSED AND ADOPTED THIS 4th DAY OF FEBRUARY 2008. Hauaen Hauaen Erickson Erickson Hedbera Hedbera LeMair LeMair Millar Millar YES NO Frank Boyles, City Manager www.cityo{priorlake.com Phone 952.447.9800 / Fax 952.447.4245 CITY OF PRIOR lAKE ADVERTISING SIGNAGE POLICY FOR SEASONAL SIGNS ON INTERIOR FACING FENCES IN CITY ATHLETIC FACILITIES Adopted February 4,2008 SECTION 1: Purpose The City is asked from time to time to allow not-for-profit civic and athletic organizations and their sponsors to sell and erect advertising signage on playfield fencing, scoreboards and facilities within City parks for the express purpose of fundraising. The purpose of this policy is to clarify under what conditions advertising signage for this purpose may be permitted. SECTION 2: Interpretation and Revision The City of Prior Lake reserves the sole and exclusive right and authority to make interpretations of this policy or to make revisions to the policy as the City in its sole determination may deem appropriate. SECTION 3: Prior lake City Code In the event of inconsistency between this policy and Prior Lake city code, the city code shall take precedence. SECTION 4: Findings The City finds that it is desirable to seek additional revenues by permitting temporary seasonal advertising signage in City parks on playfield fencing; to provide an opportunity for not-for-profit civic and athletic organizations serving Prior Lake residents and businesses to raise funds to support their program by selling advertising signage on behalf of the City; and to provide businesses serving Prior Lake an opportunity to advertise to users of City park facilities. SECTION 5: Agent for the City. Not-for-profit athletic or civic organizations that are either sponsored by Prior Lake civic organizations, or represent the Prior Lake community may enter into a contract with the City for the purpose of selling space for advertising on City park field fencing. The contract would establish the organization as an agent for the City whose purpose is to solicit sales of advertising signage for installation in City community park athletic fields. The City will sell signage only through a sales agent. For each sign sale, the agent would receive a 50% commission payable by the City. SECTION 6: Sign Locations: Sign location is limited to interior facing athletic facility fences or surfaces including baseball/softball outfield fences. Signs shall not be installed on the exterior facing surfaces of such fences. So that the advertising signage displayed does not become fragmented or cumbersome to install, signs will be installed first at Veteran's Memorial Field. If more signs are sold than can be accommodated at Veteran's Memorial Field, the signs will be installed at The Ponds community park on a field determined by the City. If each of the athletic fields at The Ponds reaches its capacity for signs, then signs will be installed at fields at Thomas Ryan Memorial Park. Signs shall be installed on the interior side of the field fencing only. The City reserves the right to determine locations of all advertising signage. M:\City PolicieslAdvertising Signage Policy for Seasonal Signs on Interior Facing Fences In City Athletic Facilities.doc 1 SECTION 7: Signs a. Design. Signs shall be 8' tall x 10' wide in size and produced on a large-hole open-mesh windscreen material acceptable to the City. The City shall determine, in its sole discretion, the appropriateness of any advertising signage to be displayed in a community park. It is expected that advertising signage be of a type that is appropriate for a family environment. For aesthetic and safety reasons, the City reserves the right to limit sign size, material, location, and color. b. Sales Conditions. Sales agents must submit a drawing of the sign design and remit all collected adyertising payments to the City. Upon receipt of the sign design and fee, City staff will work with the advertiser and vendor to facilitate ordering the sign if desired by the advertiser. Advertisers may use their own vendor to provide signage if (1) the sign meets the City's material, size and approved design criteria, and (2) the sign has been approved by the City. No signage shall be installed until all fees for the current season haye been paid in full and the City has approyed the sign in writing. c. Sign Content. Signs as contemplated in this policy are considered, "Commercial Advertising Signs" that advertise a commercial enterprise, goods, services, products or support for an athletic team, activity or civic/community organization. The regulation of commercial signs will be content neutral. Sign examples are shown on Exhibit 1. d. Installation. The City shall be responsible for installation, removal and storage of all signs. The City will make every attempt, weather permitting, to install advertising signage by April 1st of each year. Signage will be removed by the City by September 30th of each year. The City shall store the advertising signage until the next season. If the sign sponsor does not renew for the next season, the sign will be returned to the owner. e. Purchase, Maintenance and Replacement. The cost, maintenance and replacement of seasonal advertising signage is solely the responsibility of the sign owner in addition to the advertising fee required herein. The City shall not replace or repair any sign for any reason, but may remove signs that are in disrepair or damaged due to wear and tear at its sole discretion. The sign owner shall be solely and exclusively responsible for sign replacement due to wear and tear, vandalism, theft, and damage due to weather elements. The City shall not refund any advertising fees paid due to the sign owner's failure to replace a damaged sign. f. Advertisina Fee. The City shall collect an adyertising fee for each 8'x10' fencing space shall be as follows: Annual Fee per season (April 1 - Sept. 20) If 2 Seasons purchased upfront If 3 seasons purchased upfront $500 (plus the sign) $900 (plus the sign) $1200 (plus the sign) The cost of producing the sign in a size and material acceptable to the City, at its sole discretion, shall be borne by the sign owner. If an advertiser wishes to purchase multiple spaces in order to accommodate a larger sign, the permit fee shall be multiplied by the number of spaces to be used, and collected at the time the sign is authorized by the City. New advertising space sold mid-season shall be prorated at the cost of $83/month. SECTION 8: Indemnification The Agent shall indemnity the City for any and all liability or damages arising out of the lease of advertising space, or the sale, display, or damage to advertising signage contemplated by this policy. M:\City PolicieslAdvertising Signage Policy for Seasonal Signs on Interior Facing Fences in City Athletic Facilities,doc 2 ![yfl;~'+)