PURPOSE

The purpose of this report is to provide Council with an analysis and recommendation concerning the Real Estate �Open House� Sign Ordinance which became effective July 24, 2004 and �sunsets� on June 30, 2005. 

BACKGROUND

At the June 8, 2004 City Council meeting Council directed staff to implement a temporary Real Estate �Open House� Sign Ordinance which will �sunset� on June 30, 2005.  Attached as Exhibit A, is the staff report from the June 8, 2004 Council meeting.   At this time, staff is re-introducing this matter to Council so they may review the progress of the ordinance well in advance of the �sunset� date.  Council has the choice of either: 

1.     Making a determination in favor of continuing the ordinance as written

2.     Continuing an amended form of the ordinance

3.     Discontinuing the ordinance altogether    

ANALYSIS

To date, the ordinance is working well.  This success is due to various  reasons, but primarily it is successful because the Burbank Association of Realtors is working closely and cooperatively with License and Code Services� and Public Works� staffs.  The initial challenge of implementing the ordinance was to effectively educate the public concerning the ordinance�s numerous operational standards.  Staff and the Burbank Association of Realtors had to convey the operational standards to targeted audiences in order for this ordinance to function as designed.  Those operational standards are:  

• Definitive locations for sign placement
• Limit the size of the �open house� signs
• Limit the number of signs for each property for sale, lease, or rent
• Establish time and day restrictions for the posting of the signs
• Require a permit for the posting of the signs
• Require insurance for each permit
• Require indemnification for each permit

Because of the operational standards, a timely and effective educational program was needed in order to convey the ordinance�s requirements to both the professional real estate community, as well as the general public.  It was the initial responsibility of city staff to educate the public about the Real Estate Open House Sign Ordinance.  To accomplish this, city staff has: 

�        Produced a video which has been programmed on Channel 6

�        Published public service announcements and press releases

�        Placed informational brochures on public counters

�        Made presentations to the Burbank Association of Realtors 

The Burbank Association of Realtors conducted their own �in house� membership educational program as well as providing appropriate information to the other professional associations in the surrounding areas of Southern California.  These combined educational efforts, in conjunction with thorough License and Code Services field enforcement and efficient administrative permitting efforts from the Public Works Department, have been very effective in providing ordinance successes during this trial period. 

Initial Concerns about the Permit Process   

At the June 8, 2004 City Council meeting, some of the real estate community expressed concerns about the proposed permit process, specifically the insurance requirement for securing a permit.  For the most part, this initial concern about the insurance has not been a problem.  The permit process, which is the responsibility of the Public Works Department, has been refined to provide a logical and smooth process for the acquisition of these permits.  Based on the City Attorney�s recommendations the Public Works Department has smoothly implemented the insurance requirements and the applicants have complied without many problems. 

 Public Complaints about the Ordinance 

There have been some public complaints about the effectiveness of the ordinance.  The primary focus of these complaints is, �that despite the ordinance, there are still illegal real estate open house signs being posted on public property.�  Without hesitation, staff acknowledges that this is true. However, this was predicted, anticipated, and is not a major issue for measuring the success or failure of this ordinance. 

Staff feels that there will always be code violations, including violations of the Real Estate Open House Sign Ordinance.  Just as there will always be traffic violations even though there are numerous traffic regulations, traffic signs, and traffic enforcement officials.  Consequently, despite the enactment and enforcement of the Burbank Real Estate Open House Sign Ordinance, there will always be some illegal real estate open house signs in Burbank.    

Measuring the Success of the Real Estate Open House Sign Ordinance 

The measurement of success of this ordinance is a matter of how many illegal signs exist relative to the dedicated resources and efforts in place to regulate the signs.   Further, we can also measure success by the magnitude of overall ordinance compliance, relative to the minor amounts of non-compliance.  In this respect, compliance with the ordinance is  between 80% to 90%.   

The 10% to 20% non-compliant signs receive the attention of the enforcement efforts of the program.  When the ordinance was initially implemented, there was a �honeymoon� period of three (3) months whereby if an inspector observed an illegal sign, the inspector would return the sign to the owner and provide them with information concerning the ordinance.  Once the �honeymoon� period ended, these illegal signs were no longer returned.  They were either impounded and went to the landfill, or they were released back to their owner after an impound fee of $27 was paid. 

During these first few months of the ordinance there were many illegal real estate open house signs.  However, as anticipated, due to the strong educational efforts of staff and the Burbank Association of Realtors, the number of violations has been substantially reduced.  Both staff and the Burbank Association of Realtors feel that because this ordinance was made a priority and began with a strong educational program, the ordinance is working very well.  However, as with any ordinance, effectiveness and success is generally a reflection of continuing to dedicate resources to managing the various elements of education, administration, and enforcement.  Consequently, if Council decides to continue the ordinance after it �sunsets�, resources will need to be perpetually maintained at their current level to continue the successes experienced during the ordinance trial period.

Improving the Ordinance 

The current permit fee structure does not allow for full recovery of the cost of the whole program.  Therefore, from the City�s perspective improvements can be made to this ordinance.  Specifically, it can be improved by having the permit fees fully pay for the costs of administration, implementation, and enforcement of the ordinance.   

Since the effective date of the ordinance, approximately 1,100 permits have been issued.  Regulatory permits and license fees, such as the Real Estate Open House Sign Permit fees, are usually established at levels commensurate to the costs associated with the implementation, administration, and enforcement of the regulatory permit or license.  In this respect the current $10 permit fee, which was initially established to cover the unknown costs associated with the estimated number of permits to be issued, doesn�t fully recover those costs. 

Therefore, it would improve the administration of the ordinance by raising the permit fees $2 per year to assist in recovering the associated costs of the ordinance.  Also, in order to keep the permit fee as low as possible, staff also feels that the current practice of prorating the permit fee on a quarterly basis should be discontinued.  Consequently, a $2 increase in the permit fee from $10 annually to $12 annually, coupled with discontinuing the pro-ration of the annual permit fee, will provide funding to help recover the costs associated with the administration and enforcement of the program. 

RECOMMENDATION 

It is recommended Council direct staff to return with a permanent ordinance before the existing ordinance �sunsets� on June 30, 2005.  Staff recommends the permanent ordinance contain the same standards and restrictions as written in the �sun-setting� ordinance.  It is further recommended that when staff returns with this ordinance, Council also amend the Burbank Fee Resolution to establish a non-prorated annual fee of $12 per fiscal year for permits to place Temporary Real Estate Open House Directional Signs on public property.

 EXHIBIT       A       Staff report from the June 8, 2004 City Council meeting

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