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Solvang City Council
November 12, 2024

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November 12, 2024
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Solvang City Council
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“Provide a safe and reliable transportation network that serves all people and respects the environment” the third-party contract language, the contracted parties are better positioned to determine the appropriateness of using a Force Majeure clause, or another clause, as the mechanism to trigger a post award contract price change.

If you have questions regarding this letter please contact the OTGC FTA Programs Procurement Oversight Branch Chief, Frank Nevitt, at [email protected]. For questions regarding your federal grant funding program, please contact that funding program’s Branch Chief.

Thank you.

Frank Nevitt, Chief
FTA Programs Procurement Oversight Branch
Caltrans Office of Transit Grants and Contracts
Program Branch Chief email
Section 5310 Mark Barry [email protected]
Section 5311, 5311(f), and CMAQ Kathy Pongratz [email protected] Section 5339 Michael Lange [email protected]
Office of Transit Grants and
Contracts
Wendy King,
Office Chief [email protected]
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Santa Ynez Valley Transit/City of Solvang
Support for RATP Dev Request for Contract Increase
October 29, 2024
The purpose of this narrave is to provide independent jusficaon for the contract increase requested by RATP Dev pursuant to its Professional Services Agreement with the City of Solvang for Santa Ynez Valley Transit Operaons.

RATP Dev has requested both a restructuring and increase of its billing rate. The current contract bases the billing rate purely on vehicle revenue hours, or the number of hours buses are operated in service for both fixed-route and dial-a-ride modes. All overhead costs are included in a single hourly rate. RATP Dev is requesng a rate structure that includes a separate fixed rate for overhead costs and a flexible hourly rate that will vary depending on the actual number of revenue hours operated. The proposed rate structure is designed to accommodate the potenal for service disrupons or reducons (as was experienced during the COVID-19 pandemic). It will also protect SYVT if addional services resulng in increased revenue hours are realized. As a result of the rate restructuring, the hourly rate charged by RATP Dev will decrease, though the introducon of a fixed rate ulmately results in a higher net cost per hour.

Per the exisng contract, RATP Dev is due a 4% inflaonary rate increase every year for the next three years. The requested rate increase is 13.5% over the inflaonary increase, or 17.5% during FY 2024/25 and 3.5% over the remaining two years of the base contract.

At the request of Caltrans, the City has prepared this jusficaon document to review two specific claims:

First, that the contract has the ability to be amended, and second, that the nature of the increase requested by RATP Dev is supported by changes in the market as claimed.

Part I: Ability to Amend the Contract
RATP Dev and the City of Solvang entered into the current contract effecve July 1, 2022. The base period of the contract extends through June 30, 2027, a period of five years. The purpose of this secon is to demonstrate that an amendment is allowable within the current contract language. Page numbers refer to the current executed contract document.

The City of Solvang believes the language cited below effecvely confirms the ability of the pares to the contract to amend said contract in the manner desired.

Contract sec*on 1.04 (Compensa*on) (page 2) indicates compensaon can be changed in the event the Contractor and the City agree to do so: "The pares agree that total compensaon for the services detailed in Exhibit A shall not exceed the sum of $3,676,681, unless and unl this Agreement is amended as provided herein." This excerpt does not limit amendment values or provisions.

Contract sec*on 2.07 (Contractor’s Knowledge of Applicable Laws) (page 4): "Contractor shall keep itself informed of applicable local, state and federal laws and regulaons which may affect those employed by it or in any way affect the performance of its services pursuant to this agreement. Contractor shall observe and comply with all such laws and regulaons affecng its employees." The renewal in 2022 did not contemplate the $20.00/hour Fast Food Minimum Wage law's effects on all hourly wages since that law passed in September 2023, taking effect in April Attachment D
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2024. This change moves wages for many hourly workers up 25% from the minimum of $16.00/hour, puEng wage pressure on hourly transit jobs as well. Without the requested rate change, RATP Dev asserts it would connue to suffer significant losses by conducng the City’s required services under its current wage rates.

Contract sec*on 3.0 (Obliga*ons of City) (page 4): The City agrees to comply with all "reasonable requests of Contractor necessary to the performance of the Contractor's dues under this agreement." Without increasing the wages to be compeve, operators will resign. Without an amendment, RATP Dev will connue to experience significant losses on the overall contract. These two reasons validate "reasonable request" of an amendment that is also necessary for the performance of dues under this agreement as outlined in 2.07.

Contract sec*on 7.16 (Amendments) (page 19) indicates the contract can be amended by mutual agreement with specified values: "Amendments to this Agreement shall be in wring and shall be made only with the mutual wriGen consent of all the pares to this Agreement." Part II: Validity of Request for Price Increase
The primary catalyst for RATP Dev’s request for a contract price increase is the increase in the costs associated with operaon and maintenance of the transit program that lie outside of its ability to control.

This includes changes in California’s minimum wage laws, rising insurance costs, and increased non-labor maintenance costs (inclusive of parts, supplies, and materials). Research into each of these market sectors confirms these changes, as detailed below.

A. Operator Wages
Two factors have served to influence operator wages: Compeveness within the transit industry and compeveness with minimum wage laws for fast food employees in California. • At present, the starng (minimum) wage for SYVT bus operators is $19.00/hour. While higher than the state’s minimum wage, this is below market when compared to many peers in the region. For example, the current minimum wage offered by other area operators are:
o Ventura County Transportaon Commission: $21.00/hour
o City of Lompoc: $22.00/hour
o Gold Coast Transit: $23.19/hour
o Santa Barbara MTD: $26.83/hour
• RATP Dev seeks to provide a starng wage of $20.00/hour, which is more compeve with the minimum wage for fast food workers. This represents an increase of 5.4%. • According to Occupaonal Employment and Wage Stascs available from the Bureau of Labor Stascs, the naonal mean hourly wage for bus drivers in 2023 stood at $23.56.

Specific to the Santa Maria – Santa Barbara Metropolitan Area, the mean hourly wage for transit bus drivers in 2021 stood at $26.96. The California mean hourly wage transit bus drivers for 2023 was $31.51.
• The Bureau of Labor Stascs’ Employment Cost Index looks at the percent annual change in the cost of employees from year to year (similar to the Consumer Price Index). Between June 2021 and June 2024, the total increase in the Employment Cost Index was 16.27%, consistent with RATP Dev’s requested overall contract price increase. 168
B. Insurance Costs
RATP Dev has cited an overall increase of 42% in the cost of insurance (including Worker’s Compensaon, Auto Liability, and General Liability). As the impacts of the COVID-19 pandemic connued longer than expected, insurance costs have connued to rise. As a result, RATP Dev reported that annual increases in insurance, historically in the range of 5%-10%, have risen to as much as 64%.
• The change in the Consumer Price Index for motor vehicle insurance (average for U.S. cies, all urban areas) between June 2021 and June 2024 was 48.09%. • The Council of Insurance Agents and Brokers, which conducts a market survey every quarter, reported 25 quarters of consecuve premium increases as of the fourth quarter of 2023. While the organizaon reports that premium increases have slowed, condions remain challenging.

C. Non-labor Maintenance Costs
Non-labor maintenance costs refers to the parts, supplies, fluids, and materials required to operate the transit program. This also includes costs for outside maintenance vendors, many of whom are small businesses that face the same cost increases as the operaons contractor with its internal operaons.
• Between June 2021 and June 2024, the Producer Price Index (PPI) for motor vehicle electrical and electronic equipment increased by 13.53%. • Between June 2021 and June 2024, the PPI for motor vehicle steering and suspension parts increased by 4.84%.
• Between June 2021 and June 2024, the PPI for other motor vehicle parts manufacturing increased by 9.09%.
• Between June 2021 and June 2024, the PPI for motor vehicle gasoline engine and parts manufacturing increased by 5.25%.
• Between June 2021 and June 2024, the PPI for motor vehicle and parts merchant wholesalers increased by 52.55%.

Conclusion
Given the data support RATP Dev’s claims of increased costs, and that the contract allows for amendments in response to reasonable requests of the contractor, the contractor’s jusficaon based on labor, insurance and material costs have been verified.
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AMENDMENT NO. 1
to the Professional Services Agreement for
SANTA YNEZ VALLEY TRANSIT OPERATIONS with
ROADRUNNER MANAGEMENT SERVICES, INC.

THIS FIRST AMENDMENT is made and entered into this 12TH day of November 2024 between the CITY OF SOLVANG, a municipal corporation, and Charter City (City), and ROADRUNNER MANAGEMENT SERVICES, INC., a California Corporation with its principal place of business at 240 S. Glenn Dr. Camarillo, CA 93010 (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, July 1, 2022, for the additional amount not to exceed $335,099.04. for the total amount not to exceed $4,011,780.04.

Section 1.04 Compensation Fee Schedule Table is replaced with revised fee schedule attached to this amendment as EXHIBIT “B”, for the remaining three- year term to June 30, 2027.

Campaign Contribution Disclosure: Pursuant to Government Code Section 84308, any party to a City proceeding (which includes, but is not limited to, all contracts with the City, other than competitively bid, labor, or personal employment contracts) must disclose on the record any campaign contributions made to a member of the City Council or other elected or appointed officer of the City, any candidate for elected office of the City, or any candidate for elective office of any other agency who is also an elected or appointed officer of the City in excess of $250 in the past 12 months. This disclosure requirement includes contributions by the party’s agent, such as a consultant, and aggregated contributions from persons or entities related to the party. Consultant is required to fill out and provide the attached Exhibit C ‘Applicant/Interested Party Campaign Contribution Disclosure Form’ with submission of this Agreement and to update this form after each contribution and no later than the beginning of any associated proceeding.

All remaining portions of the original Agreement and applicable portions of prior Amendment(s) shall remain in full force and effect.

CITY OF SOLVANG ROADRUNNER MANAGEMENT SERVICES, INC.

Mark Infanti, Mayor Matthew Booterbaugh, Chief Development APPROVED AS TO FORM:

Chelsea O’Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
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EXHIBIT “A”

TERMS AND CONDITIONS

1. Compensation. Consultant shall be paid on a time
and materials or lump sum basis, as may be set forth
in Exhibit “C”, within 30 days of completion of the
Work and approval by the City.

2. Compliance with Law. Consultant shall comply
with all applicable laws and regulations of the federal, state and local government, including any
requirements to pay prevailing wage under the Labor
Code or similar laws. Consultant shall assist the City, as requested, in obtaining and maintaining all permits
required of Consultant by Federal, State and local
regulatory agencies. Consultant is responsible for all
costs of clean up and/or removal of hazardous and
toxic substances spilled as a result of his or her Work.

3. Standard of Care. The Consultant shall perform
the Work in accordance with generally accepted
professional practices and principles and in a manner
consistent with the level of care and skill ordinarily
exercised by members of the profession practicing
under similar conditions.

4. Insurance. The Consultant shall take out and
maintain, during the performance of all work under
this Agreement: A. Commercial General Liability
Insurance in the amounts specified in Section 6 of the
Agreement for bodily injury, personal injury and
property damage, at least as broad as Insurance
Services Office Commercial General Liability
coverage (Occurrence Form CG 0001), and if no
amount is selected in Section 6 of the Agreement, the
amounts shall be $1,000,000 per
occurrence/$2,000,000 aggregate; B. If automobiles
are used in providing the services, Automobile
Liability Insurance for bodily injury and property
damage including coverage for owned, non-owned
and hired vehicles, of at least $1,000,000 per accident for bodily injury and property damage, at least as
broad as Insurance Services Office Form Number CA
0001 (ed. 10/13) covering automobile liability, Code 1
(any auto); C. Workers’ Compensation in compliance
with applicable statutory requirements and Employer's
Liability Coverage of at least $1,000,000 per accident
or disease, and D. Professional Liability (Errors and
Omissions) coverage, if checked in section 6 of the
Agreement, written on an “occurrence” basis with a
limit not less than $1,000,000 per claim and which
shall be endorsed to include contractual liability. If
Consultant is unable to obtain coverage on an
occurrence basis, Consultant shall procure and pay
for appropriate tail coverage for a minimum of three
years following completion of the Scope of Services to
cover any errors or omissions occurring during the
Term. Insurance carriers shall be authorized by the
Department of Insurance, State of California, to do
business in California and maintain an agent for
process within the state. Such insurance carrier shall
have not less than an "A"; "Class VII" according to the latest Best Key Rating unless otherwise approved by
the City. The policies required under subsections A
and B shall be endorsed to include additional insureds
as follows: The City of Solvang and its Elected and
Appointed Officials, Officers, Employees, Agents,
and Volunteers. Consultant shall also submit to the
City a waiver of subrogation endorsement in favor of
the City on all policies where such endorsement is
commercially available.

5. Indemnification. To the fullest extent permitted by
law (including, but not limited to California Civil Code Sections 2782, 2782.8 and 2783), the Consultant
shall defend, indemnify and hold harmless the City, its Council, members of the Council, agents, officials,
officers, volunteers, and employees of the City,
against any and all claims, liabilities, demands,
expenses, costs and financial loss, or damages,
including reasonable attorneys’ fees, that arise
directly or indirectly from any acts or omissions
related to this Agreement performed by Consultant or
its agents, employees, subcontractors,
subconsultants, consultants, or other persons/entities
acting on Consultant’s behalf. This includes claims
for injury or death of any person, or damage to
property, or interference with use of property, or any
claim of the Consultant or subcontractor for wages or
benefits which arise in connection with the
performance of this Agreement, except to the extent
caused or resulting from the sole negligence or willful misconduct of the City, its Council, members of the
Council, agents and employees of the City.

Consultant shall be solely responsible for, and shall
save City harmless from, all matters relating to the
payment of Consultant’s employees, agents,
subcontractors and subconsultants, including
compliance with social security requirements, federal
and State income tax withholding and all other
regulations governing employer-employee relations.

The foregoing indemnity includes, but is not limited to, the cost of prosecuting or defending such action with
legal counsel acceptable to the City and the City’s
attorneys’ fees incurred in such an action.

6. Laws and Venue. This Agreement shall be
interpreted in accordance with the laws of the State of California. If any action is brought to interpret or
enforce any term of this Agreement, the action shall
be brought in a state or federal court situated in the
County of Santa Barbara, State of California.

7. Termination. The City may terminate or abandon
any portion or all of the Work by giving 10 calendar
days written notice to Consultant. In such event, the
City shall be immediately given title and possession to all original field notes, drawings and specifications,
written reports and other documents produced or
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developed for the Work. The City shall pay
Consultant the reasonable value of any portion of the
Work completed prior to termination. The City shall
not be liable for any costs other than the charges or
portions thereof which are specified herein.

Consultant shall not be entitled to payment for
unperformed Work and shall not be entitled to
damages or compensation for termination of work.

Consultant may terminate its obligation to provide
further Work under this Agreement upon 30 calendar
days' written notice to the City only in the event of
City’s failure to perform in accordance with the terms
of this Agreement through no fault of Consultant.

8. Agreement Terms. Nothing herein shall be
construed to give any rights or benefits to anyone
other than the City and the Consultant. The
unenforceability, invalidity or illegality of any
provision(s) of this Agreement shall not render the
other provisions unenforceable, invalid or illegal.

Notice may be given or delivered by depositing the
same in any United States Post Office, certified mail,
return receipt requested, postage prepaid, addressed
to the parties to the addresses set forth in the
Agreement. Consultant shall not assign, sublet, or
transfer this Agreement or any rights under or interest in this Agreement without the written consent of the
City, which may be withheld for any reason.

Consultant is retained as an independent contractor
and is not an employee of the City. No employee or
agent of Consultant shall become an employee of the
City. The individuals signing this Agreement
represent that they have the authority to sign on
behalf of the Parties and bind the Parties to this
Agreement. This is an integrated Agreement
representing the entire understanding of the parties
as to those matters contained herein, and
supersedes and cancels any prior oral or written
understanding or representations with respect to
matters covered hereunder. This Agreement may
not be modified or altered except in writing signed
by both parties hereto. City and Consultant agree
that no waiver of a breach of any provision of this
Agreement by either Consultant or City shall
constitute a waiver of any other breach of the same
provision or any other provision of this Agreement.

Failure of either City or Consultant to enforce at any
time, or from time to time, any provision of this
Agreement, shall not be construed as a waiver of
such provision or breach. Consultant shall promptly
inform City of any contract, agreement, arrangement,
or interest that Consultant may enter into or have
during the performance of this Agreement that may
conflict with City’s interests. This requirement
includes contracts, agreements and arrangements
with manufacturers, suppliers, contractors or other
clients whose interests might be served by the
services performed under this Agreement and
Consultant’s or Consultant’s clients’ interest in land
that might be affected by the services. Consultant
shall take such measures as are necessary in the
performance of this Agreement to prevent actual or
appearances of conflicts of interest. Consultant and
City agree that in any dispute, litigation, arbitration, or other proceeding by which one party either seeks to
enforce its rights under this Agreement (whether in
contract, tort or both) or seeks a declaration of any
rights or obligations under this Agreement, the
prevailing party will be awarded reasonable attorney’s
fees, together with any costs and expenses, to
resolve the dispute and to enforce any judgment,
including post judgment attorney’s fees costs and
expenses and any attorneys’ fees or costs incurred on
appeal of any judgment.
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EXHIBIT “B”

COMPENSATION FOR SERVICES
Year 3 Year 4 Year 5
FY 24-25 FY 25-26* FY 26-27*
Fixed Rate (Annual) $ 246,243 $ 254,862 $ 263,782
Variable Rate
Cost per Revenue
Hour
$50.83 $52.61 $54.45
SYVT Estimated
Annual Revenue Hours 11,775 11,775 11,775
(Annual) Variable Cost $ 598,523.25 $ 619,471.56 $ 641,153.07 SYVT Total Cost
(Fixed + Variable) $ 844,766.25 $ 874,333.07 $ 904,934.73 ∗ Year 4 and 5 rates reflect an inflationary increase of 3.5% year to year. City reserves the right to forgo the annual inflationary rate increase and hold the rate at FY 24-25 levels if Contractor’s projected costs for Driver Salaries and other expected cost increases are not realized over FY 24-25. 173

CITY COUNCIL STAFF REPORT
AGENDA ITEM 8.b
Meeting Date: November 12, 2024
SUBJECT: Discussion and possible direction on potential Amendments to Title 11 Chapter 13 Sign Ordinance.

PREPARED BY: Rafael Castillo, AICP, Planning and Building Manager DISCUSSION:

Background
The city’s sign ordinance was adopted in 1990 with the City’s Zoning Ordinance. The Sign Ordinance standards were constructed mainly for the safety of drivers, and the following:
“the economic and aesthetic welfare of the City as related to the existing and future economic significance of tourism and recognizing that the City’s future economic health depends on the avoiding a “Honky Tonk” atmosphere…”
Along with the adoption of the Sign Ordinance in 1990, design guidelines were also adopted with various requirements for signage including requirements for specific lettering (“old world style”), illumination, placement of signage, and other design elements. Most of these guidelines have been incorporated throughout the years. In 1992, a minor amendment was completed to allow for larger signs specific to lodging uses with another minor amendment for non-conforming signs completed in 1993. Another minor adjustment occurred in 1997 allowing larger signs outside of the Village area.

In 2003 and 2004, City staff undertook the first major overhaul of the sign ordinance. This undertaking included a series of workshops with the then Board of Architectural Review (BAR). The 2004 ordinance revision adopted by the Council included allowance for additional signage, limiting internally illuminated signs to hotels/motels, and revisions to removal of non-compliant signs.

A major revision to the sign ordinance occurred in 2012. Similar to the 2003/2004 work effort, a subcommittee was formed in 2011 that consisted of two (2) Planning Commissioners, two (2) BAR members, and three (3) members from the Solvang Chamber of Commerce. This was the first attempt to streamline the sign permit process “in an attempt to [respond] to the community’s desire for more liberal sign regulations, in the interest of economic development (March 12, 2012 Staff Report to Council).” Changes to the ordinance included a reformatting to make it clearer and easier to use, removal of the need for permits for exempt signage, provisions for additional signage, and allow for exceptions to the Sign Ordinance.

In 2018, at the direction of City Council, staff was tasked on updating the sign ordinance, the design guidelines, and the Community Design Element, as a part of a comprehensive update to City policy documents. City staff completed a request for proposal (RFP) for the directed scope of work, however, underestimated the total cost of this effort, therefore did not budget the required funding. In 2019, the City Council directed city staff to work on the Sign Ordinance, with the goal to “streamline the sign permit process.” The following amendments were proposed:
• Making most sign approvals administratively (over the counter) versus using the BAR; • Elimination of standards for signs on benches;
• Elimination of signs in kiosks on private property;
• Inclusion of exemption of flag poles and flags in the ordinance (separate amendment was completed for this in 2023).
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City staff was directed to proceed with these amendments in July 2018. The proposed amendments were approved by the Planning Commission in September 2018. However, the previous City Manager and City Attorney elected not to bring forward these revisions to Council for approval and the amendments were never incorporated. It is important to note that, while the 2018 proposed amendments focused on entitlement processing and minor amendments, this effort did not take into account major court cases affecting the sign ordinance.

City Staff temporarily relaxed signage regulations, particularly A-frame signs and other types of signage during 2020 through 2022 to address COVID-19 and other pandemic related regulatory hoops imposed by the State of California. After these relaxations were terminated, the City Council directed staff to enforce the sign ordinance as it was codified.

Court Cases affecting the Sign Ordinance
In 2015, the U.S. Supreme Court decided a case that changed how courts review the validity of sign ordinances (Reed v. Town of Gilbert, 135 S. Ct. 2218 (2015)). The Town of Gilbert’s sign ordinance required permitting for signs, but then listed out categories or types of signs exempt from permitting (23 other sign types) including “political signs,” “ideological signs,” and “temporary directional signs.” Other elements of its adopted sign code imposed different dimensional and durational requirements based on the content of the signs. The Supreme Court found this ordinance to be content based because the regulation “on its face” looked to the message on the proposed sign to determine how the City would regulate it. If a court finds a city expressly regulated, or intended to regulate, a message or content, then the court typically applies a more rigorous level of review to those ordinances, and that contentbased regulations are violation of the 1st Amendment right to free speech. Based on this court case, the Solvang’s current Sign Ordinance contains many instances that are content based.

Local jurisdictions may still have a compelling reason to regulate commercial signage based on the case of Central Hudson Gas & Elec. V Public Svc. Comm’n (44 U.S. 557 (1980), as courts apply a lower standard of review to the reasonableness of regulations. Courts generally uphold regulations that further a significant government interest, as long as reasonable alternative channels for communication exist. An argument can be made that it is in the City’s compelling interest that signage conform to certain standards to maintain the economic vibrancy and identify of the City through its regulations, particularly if the City wants to maintain signage standards that evoke Old World Danish, keeping with its brand.

Existing Sign Ordinance Process
The existing Sign Ordinance is provided in Attachment “A”. Sign placement, whether a new sign, replacement sign, etc. requires approval from the Design Review Committee (DRC) which replaced the Board of Architectural Review (BAR) and the Branding and Design Committee. The sign ordinance contains standards for signage within the City, particularly the village core (TRC zoning district). The sign ordinance is comprehensive; however, there are times where the ordinance is left up to interpretation, and the ordinance is sometimes in conflict with itself.

Prior to October 2023, staff created an arbitrary deadline to accept sign permit applications. Typically applicants would submit close to this deadline, and staff would quickly place a sign permit onto the DRC agenda in order to “streamline” the process of getting signs to the decision-making body.

However, this typically led to a lack of analysis by City staff, therefore creating an often adversarial approach between staff, applicants, and the DRC. The Planning Manager eliminated this practice in October 2023 for consistency with the California Permitting Streamlining Act, which gives municipal staff up to 30 days for review. This has allowed staff to work with applicants to point out issues with signage and allow for signs to be modified for consistency with the sign ordinance before going to the DRC, as well as provide guidance based on the current DRC’s preference for signs that contain dimensionality versus flat signage.

To assist in streamlining sign permits, in June 2023, City staff began the practice of placing signs that met all code standards on the consent agenda, under the assumption that if a sign met the code, little to no discussion would be needed. Adding to that, the Planning Manager created an internal policy for 175
consistency with Reed v. Town of Gilbert to no longer review colors or fonts, as this was content-based analysis, which was contrary to Supreme Court Case law. The DRC still pulled items off the consent to discuss these signs, particularly the content (colors, fonts, etc.) that met all pertinent code requirements. However, the DRC has slowly started approving many of these signs under consent over the last six (6) months. Processing of signs generally follows this flow chart:

The chief complaint about the process is the time it takes to get to a decision as well as the cost. In many jurisdictions, sign decisions are completed at a staff level. The city of Lompoc and Buellton both process sign permit applications at an administrative/staff level. The cost of a sign permit ($390) takes into account staff’s review time, the requirement to complete a staff report, and the requirement to hold a public hearing.

Subjectivity and Content Based Regulations in the Existing Sign Ordinance Jurisdictions, including the City, need to determine if the ordinance regulates signs differently based on the content or message of the sign. A typical analysis to determine if the ordinance restricts speech of the sign includes asking the following:

1. Does the ordinance language refer to the content or the message of the sign?

2. If not, then is there evidence showing the City adopted the regulation specifically because of disagreement (or agreement) with the message expressed by the sign? Based on this test, there is language in the existing ordinance that points to “content” based signage, which requires a user, or in this case City staff acting as an enforcer, to determine the sign type based on the language contained on the sign. Content-based language in the City’s sign ordinance includes:
• Civic Event Signs;
• Construction Signs;
• No Trespassing Signs;
• Open House Signs;
• Product/Operating Information Signs;
• Real Estate Signs;
• Residential Identification Signs
• Prohibitions of specific words on a sign
• Prohibition of internally illuminated signs in the village area, yet allowance for “Vacancy/No Vacancy” signs for specific uses.
• Signage on benches limited to non-profits, or business, or donors. • Allowances for symbol signs
• Prohibition of color where no government health, safety, welfare connection has been established.
• In the existing ordinance, sign colors are required to be “consistent with eighteenth century Danish/Northern European design theme”, yet no standards are highlighted. Language in the existing ordinance states also states that signage within the Tourist Related Commercial (TRC) require that “individual lettering be the ‘traditional old world’ style is preferred”. The existing ordinance does not require lettering to be in the ‘old world style’, nor provide any guidance on font types to be utilized. This language is similar in the adopted Design Guidelines and provides no objective standard.

These regulations mentioned above and in other parts of the sign code are considered content-based, and if challenged, would not be enforceable. City staff walks an extreme fine line of enforcing the sign ordinance. Should the City be challenged in court, it may not prevail based on typical analysis and guidance provided by the Supreme Court.

Applicant Submits
Sign Permit
Applications
City Staff
Creates
Staff
Report
DRC
Decision
City Staff
Review
City Staff
Places on
DRC
Agenda
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Similar to objective standards in residential uses, any new sign ordinance needs to be clear on this reason and rationale and eliminate ambiguity including wording such as “preferred”, which can be subjective and potentially content-based, and instead place an emphasis on reasonable time, place, and manner restrictions, with clear alternative channels such as exceptions, and findings to grant them. 2024 Sign Survey
In the summer of 2024 City staff created a survey specifically sent out to existing business owners to gauge their understanding of the sign ordinance and other issues the City has been experiencing with signage, particularly temporary signage, and the processing of permits. This effort is in contrast to previous efforts which involved committees of either elected officials/board members, or selected committee members. City staff dropped off QR codes and flyers to over 200 businesses within Solvang City Limits. City staff received 55 responses to the survey. The survey asked six (6) questions. Three questions were multiple choice questions, one (1) was an open-ended question where a response was provided, and the last question asked what three (3) specific regulations affected their business operations. The following are the results of those questions asked, with the entire survey provided as Attachment B.
• 79% of respondents were aware of Solvang’s Sign Regulations. • 85% of respondents believed they were in compliance with the Sign Regulations. • 62% of respondents believed that the City’s sign regulations negatively affect their businesses as the regulations are too cumbersome and strict and hurts business growth. • 31% of respondents feel that the City’s sign regulations help maintain the community character. • 6% of respondents are indifferent regarding that the City’s sign regulations When asked about the challenges business has faced with the city’s sign regulations, the following phrases were most prominent.
• None" – appears frequently, indicating some respondents faced no challenges or issues. • "A-frame signs" / "sandwich boards" mentioned repeatedly as a common challenge for businesses with their inability to display such signs.
• "Not allowed" / "prohibits" / "restrictive" which is commonly used in the context of limitations on signage or advertising.
• "Approval" discussed in the context of needing approval for signs. • "Inconsistency" which is a recurring complaint about uneven enforcement of rules.

The following is a word cloud depicting all the comment received 177
Word Cloud of Improvements that Can be Made
When asked about the sign regulations, specific regulations that are impacting the respondent’s businesses, 21% stated that the lack of ability to put out an “A-Frame Sign/Sandwich Board” sign hurt their business. 14% of businesses responded that the need to increase banners and other temporary signs are needed. 11% cited a lack of clear sign regulations. Other responses are noted below. 21%
14%
11%
9%
8%
7%
7%
7%
7%
4%
3%
0% 5% 10% 15% 20% 25%
Need of An "A-frame/Sandwhich Board" Sign
Need Banner signs/Other Temp Signs
Lack of Clear Regulations
Cost of Sign Permit
Increase temp signs during specific times of the year
Speed of Obtaining Permit
Increase Temp Signs during special events
Requirement for Public Hearings for Signs
Not Enough Signage allowed
None
Other
Sign Regulations Impact Business
178
Direction to City Staff
The sign ordinance is a comprehensive document. As with other ordinances, the need to review and evaluate these ordinances, particularly when it may affect economic development of businesses is carefully needed every few years. City staff is recommending that the Council direct staff to amend the sign ordinance. However, staff seeks direction on some of the items below.

1. Processing of Sign Permits. Currently the DRC approves all sign permits. City staff seeks direction on whether the DRC should continue to approve sign permits, or as directed in 2018, have staff amend the ordinance to eliminate the DRC from approving signs if the signs meet standards in the ordinance. As envisioned in the 2018 proposed amendments, signs not meeting these standards would still need to be approved by the DRC.

2. Elimination of Content Based Regulation. City staff seeks direction on eliminating content-based elements in the ordinance. This would include elimination of subjectivity items such as fonts, requirements for text, and colors. This would be replaced with performance or objective standards that evoke “Old World Danish” as stated in the 2045 Solvang General Plan. The DRC would be instrumental in working with City staff to craft these objective standards. This would include materials, sizes, depth, projection, etc. This would bring the ordinance in line with pertinent federal case law.

3. A-Frame/Sandwich Board Signs. Based on the sign survey, respondents are requesting additional temporary signage. City staff is not opposed to greenlighting “A-frame” signage; however, it would need to be heavily regulated in terms of placement of signs, whether it is banned in the public rights-of-way, and how these A-frame signs would look (such as eliminating the use of plastic sandwich board signs, and instead requiring either wood, or wood like material). City Council should weigh in on the business interest of such signage versus maintaining the look and feel of the village.

4. Additional Temporary Signage. The Council may direct staff to approve additional temporary signage for a limited time duration. Again, the Council should weigh in on the business interest versus maintaining the aesthetic appearance of the village. City staff would need to work with the DRC on crafting any type of additional temporary signage envisioned.

5. Banner Signs. Currently banner signs are not allowed, except for “special permit issued by the City Manager” however, no criteria is given, which has provided for unclear regulations and a fee of $196. City staff seeks direction on banner signs when used for temporary events (civic/community events) and should outline objective standards that include maximum size, where these can be located, and revise the approval authority if it meets these requirements (City staff level instead).

6. Sign Handouts. At the conclusion of amending the sign ordinance, staff would produce a sign handout to guide business on the basics of a new sign ordinance. Council could direct staff on whether this should be a handout, or a handbook.

Processing Amendments
Based on direction from the City Council, staff would likely amend the proposed sign ordinance inhouse. Rather than use committee members as completed in the 2004 and 2012 work efforts, staff recommends that the DRC be utilized to assist in crafting proposed standards. The following is the proposed work effort:
• City staff work with the DRC over a series of meetings during late winter and spring 2025. • Admin Draft ordinance would be presented to the Chamber of Commerce to go over proposed revisions.
• Draft Ordinance check-in with the City Council to confirm proposed changes. • City staff makes additional changes as directed by the Council. • DRC recommendation for approval.
• Planning Commission recommendation for approval
• City council approval.

ALTERNATIVES:

There are no alternatives to this report.
179
FISCAL IMPACT:

City staff estimates approximately $35,000 of city staff time will be spent on this work effort, plus additional expenses by the City Attorney to review a draft ordinance and assist city staff on technical questions.

ATTACHMENTS:

Attachment A – Existing Sign Ordinance
Attachment B – City Staff 2024 Sign Survey
180


 

 

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ID Are you aware of the City
of Solvang's sign regulations that apply to your business? Do you belive your business is currently compliant with the City's Sign Regulations? What challenges have you faced with the City's Sign Regulations How do the City's Sign Regulations directly affect your business operations Thinking about the City's Sign Regulations, which specific regulations have impacted your business? (Choose up to 3) Thinking about your business needs, what improvements could be made to the City's Sign Regulations to better support your business or other businesses here in the City? Are you a business owner within the City of Solvang?
Business Info - What type of Business do you own?
1 Yes Yes Racist Cherry picking. The old traditionalist and conservatives would have the City believe that The Solvang old school way, is the only way to run a business, this is how the City continues to discriminate against minority Businesses.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.;Lack of clear sign regulations; Regulate. The way to be fair is to make clear rules and regulation. Do not change rules for each community members preference.Who is really running the City of Solvang?Not the Major or City council.

Yes Tourist Related Business
2 Yes Yes The regulations seem enforce on some
while they are unenforced on others.

Positively, as signs help to maintain the community character Lack of clear sign regulations;Cost of obtaining a sign permit;Requirement to have a public hearing for signs; Clear and precise sign regulations that apply to all including businesses owned by City Council members.

Yes Retail, bakeries, museum and to go food.
3 Only Some Yes As a food service business it is critical to be able to display a copy of our current menu outside so the people walking by can see that we serve food and what exactly we have available. Many people will walk right by if there isn’t a menu to stop and look at, and many people will walk inside to order something specifically because they read it on the menu outside. Having nothing outside for customers to consider is a direct impact on our ability to conduct business effectively.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Not enough permanent signage allowed;Inability to put out an "AFrame"/Sandwich board sign;Requirement to have a public hearing for signs; Food service businesses should be allowed to display their food menu outside without needing to apply for a special permit to do so with some guidelines about size or style of display. Temporary sandwich board signs should be allowed provided that they do not impede foot traffic or block ADA access. Neither of these items should require payment of a fee to the city and a special permit approval. These are basic ways of conducting business and generating foot traffic that are embraced all around the world (and all around our valley). People expect a sign outside with some information about a business (hours, menus, special menus, seasonal changes, prices, availability, events, classes, deals, sales, etc) and not allowing businesses to communicate that information effectively to potential customers is a hindrance to our ability to conduct business.

Yes Food/Beverage Restaurant style & a retail
food/grocer store
4 Yes Yes No challenges Positively, as signs help to maintain the community character
None; I think that the city is doing a good job and the violations are minor
Yes Entertainment/education
222
5 No Yes No consistency in The City of Solvangs.

Your City employee’s pick and choose what businesses have to follow the rules. The City of Solvang are Racist Cherry pickers.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Lack of clear sign regulations;Requirement to have a public hearing for signs;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; The City needs to enforce the rules for every business.

Yes Tourist Related Business
6 Yes Yes None - I just comply Positively, as signs help to maintain the community character
Lack of clear sign regulations;Lack of compliance by other businesses ; Enforce the regulations so that we’re all on the same page Yes Hotel/Motel/Lodging
7 Yes Yes Our complex on Mission (ParcPlace) is
virtually invisible and our businesses suffer because both tourists and locals don’t know we are here. The signage limitations are a serious problem for us.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Not enough permanent signage allowed;Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; Our complex needs larger permanent signage or banners letting people know what’s inside our complex No
8 Yes Yes Not very challenging this time, very helpful
staff made it very easy for us.

Positively, as signs help to maintain the community character Speed of which to obtain a sign permit; N Yes Wine tasting / Beer Tasing 9 Yes Yes Not allowing additional signage Positively, as signs help to maintain the community character
Not enough permanent signage allowed;
Requiring the name of the business and not allowing sales people to canvass customers from their doorway. It affects business's on either side Yes Retail
10 Yes Yes Hyper focus on sign placement while
customers are unaware of where to go and where the bathrooms are and what we have to offer.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to have banner signs, or other temporary signage;Requirement to have a public hearing for signs;Inability to place signs on our own private property, in our covered patios.; Business is suffering. Town is busy but the crowd is not spending outside of food and hotel. We would maintain that the myriad businesses lurking in the doorways passing out cosmetic samples and pressuring visitors is not only a detriment to visitor experience and thus our business, but a much higher priority than sign patrol.

Yes Wine tasting / Beer Tasing
11 No Yes We would like to put a sandwich board but
we aren’t allowed. It helps with sales, special events.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; Allow limited signage outside Yes Retail
223
12 Only Some Yes Temporary balloons! Sale signs! Were put up out of walkway, on my property and I was made to remove them- while adjacent neighbor had loud animated witch cackling all day long without one mention! Positively, as signs help to maintain the community character Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.;Lack of clear sign regulations; Grateful our city managers asked, grateful our city cares about keeping city looking nice & uniform! Thanks for asking my opinions! No
13 Only Some Yes Not able to put out an a frame sign to attract business or notify of special event, etc
Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Cost of obtaining a sign permit;Inability to put out an "A-Frame"/Sandwich board sign;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.; alloweing a framesTemp signs for special days/times/seasonsSmall signs for live musi lc and signs for day of special event Yes Wine tasting / Beer Tasing
14 Yes Yes Can not put sale sign outside by door Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth
Not enough permanent signage allowed;Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage; Have permits for temporary signs Yes Retail
15 No Not sure Taking down signs that I had in place for my ice cream cooler for the ice cream not to melt in the hot heat, also I’m desperate to have other signs for people to see that I’m open (located in an area where people don’t come to my store because of it) Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Requirement to have a public hearing for signs;Cost of obtaining a sign permit;Speed of which to obtain a sign permit; Need to be given the freedom to make a store unique and visible to tourists as long as it doesn’t look trashy, their should be a fine line of doing things as long as it doesn’t make Solvang look bad.So people should be able to put a certian amount of signs to be visible to the public, AGAIN WITHOUT LOOKING TRASHY OR WITH FAKE ADVERTISEMENTS.

Yes Retail
16 Yes Not sure The ordinance does not really provide
clear guidelines, I feel like A-frame signs should be allowed Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Lack of clear sign regulations;Inability to put out an "A-Frame"/Sandwich board sign; N/a No
224
17 Only Some Yes Being in business for over 20 years, we have had a sign above our door outside offering readings available. As we recently updated the sign due to weathering, we were told we had to get approval, since we’ve had one up for 20 years we didn’t think it needed approval. That was a little shocking. So we have it inside our shop.

As a business owner, I am indifferent about the sign regulations Cost of obtaining a sign permit;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; Allowing temporary signs during certain time of the year.

Yes Retail
18 Yes Yes Limits our ability to advertise our business and products.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.; Streamline the process for changes to signage and special banners Yes Wine tasting / Beer Tasing
19 Yes Yes We lose the ability to advertise special
events via sandwich boards. There is no way to grab ppls attention for day of events Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.; More temporary day of signage allowed without special request process Yes Retail
20 Yes Yes Huge events like classic car shows, parades
and any large attractions that gather huge crowds. We are still not allowed to have any signage posted.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; As stated previously, letting businesses have extra signage on days during large events.

Yes Restaurant
225
21 Yes Yes When we opened we wanted to have a
cute wooden carved bench with our name on it but we’re not allowed to have it even though it was tasteful and attractive. We love the signs we are allowed to have though.

Positively, as signs help to maintain the community character Not enough permanent signage allowed;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.;Requirement to have a public hearing for signs; Allowing some attractive temporary signage Yes Bakery/to-go treats 22 Yes Yes None. My business sign was approved
without any problems.

As a business owner, I am indifferent about the sign regulations Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.; I’m a less regulation is better kind of guy. I’m not sure we need a bunch of restrictions just some common sense rules.

Yes Restaurant
23 Yes Yes They are not current and vague. Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth
Cost of obtaining a sign permit;Speed of which to obtain a sign permit;Lack of clear sign regulations; That they are the same for every business Yes Retail
24 Yes Yes Not sure what is a violation or not. What is considered private display or public display. Are courtyards private property? Positively, as signs help to maintain the community character Inability to put out an "AFrame"/Sandwich board sign; Let A frame signs allowed, as long as they are not seen from the street. Yes Wine tasting / Beer Tasing 25 Yes Yes No street signage to bring in customers
prohibits awareness of new and upcoming businesses
Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Cost of obtaining a sign permit;Speed of which to obtain a sign permit;Inability to put out an "AFrame"/Sandwich board sign; Less oversight, more help for small businesses to drive business No
26 Yes Not sure The signs that we’d put up on our patio would bring in business. We’ve had customers ask where our signs have gone because they enjoy the humor and take photos. The City is too restrictive on Aframes even when they are on our property(not sidewalk). This hurts our income and tax revenue.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.;Cost of obtaining a sign permit; If temporary signs/Aframes are on our property, the City should consider not being Nazis.

No
226
27 Yes Yes None Positively, as signs help to maintain the community character
Keeping signs appropriate to town character.;
Continue to stress the old world Danish theme. 2) Maintain standards of size and obstruction of public sidewalk.

Yes Retail
28 Yes Yes None Positively, as signs help to maintain the community character
None; None, keep them they have worked for 50+ years.

People don’t look that much at signs as most are walking by and see the shop that’s there.

Yes Retail
29 Yes Yes Street signs not properly placed Positively, as signs help to maintain the community character
Lack of clear sign regulations; Have the sidewalk signs placed properly Yes Retail 30 Yes Yes Size Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth
Speed of which to obtain a sign permit;Inability to put out an "AFrame"/Sandwich board sign;Requirement to have a public hearing for signs; For our location at the end of the west end, a-frame signs on weekends would help attract foot traffic. That would probably be the most impactful change for us Yes Tourist Related Business
31 Yes Yes None Positively, as signs help to maintain the community character
Inability to have banner signs, or other temporary signage;Speed of which to obtain a sign permit;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; Door are alot better than they used tobe-thanks Yes Retail 32 Yes Yes Takes a long time. Lots of restrictions. Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth
Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during specified times of the year such as weekends, or summer/winter, etc.; Allow more signage and temporary signage. Yes Wine tasting / Beer Tasing 33 Yes No Inconsistency with what other businesses
violate and what I must follow
Positively, as signs help to maintain the community character Lack of clear sign regulations; Insure we Regulate all businesses equally with the present sign ordinance ….Doesn't need to change just plain enforcement with all Yes Restaurant
34 Yes Yes None Positively, as signs help to maintain the community character
Inability to have banner signs, or other temporary signage;Requirement to have a public hearing for signs; None that I know of Yes Retail
35 Yes Yes can't think of any challenges Positively, as signs help to maintain the community character
Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;Inability to have an increase amount of temporary signage during special events such as 4th of July, Julefest, Danish Days, etc.; i would like to be able to use a sandwich board style sign on days when i host a special event in the gallery Yes Retail
36 Yes Yes If we could have better signage I believe
we could do more sales.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Cost of obtaining a sign permit;Speed of which to obtain a sign permit;Inability to put out an "AFrame"/Sandwich board sign; Allow where safe A frame signs No
227
37 Yes No The biggest issue is that in order to get a
sign that meets requirements, the cost is the most expensive aspect of my business. With existing quotes, unless we are able to change the nature of the sign, we simply won't have one, which is disappointing.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;The wooden engraved signs are prohibitively expensive, with quotes in the thousands of dollars. One quote was more expensive than the bar in our wine tasting room.; Some flexibility in the materials and requirements that keep a level of consistency, for example wooden or wooden like signs that have the appearance of being burnt in, could still look appropriate and would be significantly less expensive.

Yes Wine tasting / Beer Tasing
38 Yes Yes The regulations that apply to “A” frame,
sandwich board type signs are harmful to local businesses.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Lack of clear sign regulations; Businesses that can display A frame signs on their own property without impeding normal foot traffic or interfering with ADA pathways should be allowed to do so. Especially if they are neat and professionally done. They are a VERY effective tool for driving traffic into our business.

Yes Wine tasting / Beer Tasing
39 Only Some Yes None As a business owner, I am indifferent about the sign regulations
None; None Yes Hotel/Motel/Lodging
40 No No I can’t even hang a simple sign with the
name of my business without approval? There should be a default sign and font, super easy to make, so ppl can sign a temporary sign without approval Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Speed of which to obtain a sign permit;Lack of clear sign regulations;Cost of obtaining a sign permit; I would check every box above / this is an archaic and detrimental system with unnecessary costs and regulations Yes Wine and retail
41 Yes Yes Permit cost for what reason? 400$ to pay
on my own building is ridiculous
Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Cost of obtaining a sign permit;Inability to put out an "A-Frame"/Sandwich board sign;Inability to have banner signs, or other temporary signage; Remove so many restriction. Let businesses be businesses without so much regulation No
42 Yes Yes We would really like to use an Aframe sign
to show we are open when the AC is on. Our windows are too dark to show we are open.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign; Allow us to use Aframe signs No 43 Yes Yes Being able to market our business with a
sign out front
Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign; We would benefit a lot from being able to market our business with a frame signs No 228
44 Only Some Yes Lost revenue because people don’t know we are open on hot days when our doors are closed. That affects our tax dollars and direct revenue.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage;Requirement to have a public hearing for signs; Make it essiet and shorter to obtain sign permits. Yes Wine tasting / Beer Tasing 45 Yes Yes When is hot outside we close our doors to
keep it cool with AC. Without a sign on the street people assume we are closed for business.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Not enough permanent signage allowed;Inability to put out an "AFrame"/Sandwich board sign; Let us put signage out front of the business Yes Bar/Tavern 46 Yes Yes We need signage out front. It’s difficult to draw customers in without proper information on display.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Not enough permanent signage allowed;Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage; Allow A-frames with clearly drafted rules approved by the City so everyone is happy.

Yes Bar/Tavern
47 Yes Not sure Too restrictive Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth
Cost of obtaining a sign permit;Inability to put out an "A-Frame"/Sandwich board sign;Lack of clear sign regulations; Please allow us to put out sandwich board signs near the sidewalk during summer. It would really help people know that we are open for business (even when our doors are closed to preserve air conditioning).

Yes Wine tasting / Beer Tasing
48 Yes Yes Having to reapply due to minor changes
needed to correct sign for weather and product changes.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Speed of which to obtain a sign permit;Lack of clear sign regulations; Make process easier Yes Retail
49 Only Some Yes Confused and no one seems to know what is allowed or has been approved in the past.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Not enough permanent signage allowed;Lack of clear sign regulations; First and foremost have the same rules for all businesses and not allowing some to do things that we/ others cannot? Customers need to know where businesses are and when they are open and maybe we need to update our rules . Denmark has more simple rules and regulations and we are the sister city to Aalborg and we should make our city more customer friendly. Directing people towards the bathrooms etc is one simple thing Yes Restaurant
50 Yes Yes None Positively, as signs help to maintain the community character
None; Have less restrictions. Yes Restaurant
51 Yes Yes None for now Signs do not have any impact on business operations
None; None for now Yes Chocolate store
52 Yes No A-Frame with our menu and special events
is not allowed. It is on our patio and not on a public pathway and not blocking the doorway, but it is still not allowed.

Negatively, as the sign regulations are too cumbersome and strict that it hurts business growth Inability to put out an "AFrame"/Sandwich board sign;Inability to have banner signs, or other temporary signage; Allow for A-frame signs and temporary signs that draw attention to our businesses, especially during special events and the holiday season.

Yes Restaurant
229

CITY COUNCIL STAFF REPORT
AGENDA ITEM 8.c
Meeting Date: November 12, 2024
SUBJECT: Discussion and possible action to provide staff direction regarding fulfillment of a potential District 3 City Council vacancy PREPARED BY: Randy Murphy, City Manager
Chelsea O’Sullivan, City Attorney
DISCUSSION:

Staff seeks direction from City Council on the process to fill a potential vacancy for a City Council seat in District 3.

Current Council Member David Brown ran for Mayor during the November 5, 2024 general election.

While the results of that election have not yet been finalized, the current vote counts suggest that Member Brown will likely win the mayoral seat. If that does occur, Member Brown’s current District 3 seat on the Council will become vacant. The local elections results will be certified on or before December 5, 2024.

If Member Brown’s District 3 seat becomes vacant, within 60 days from the date the general election is certified the City Council must fill the vacancy either by (i) appointment or (2) calling a special election. (Government Code Section 36512(b)).

Staff is seeking direction now, prior to the election certification, to allow for a longer application period should the Council wish to fill the vacancy by appointment. Staff will bring an item back to Council after the election is certified to actually fill the vacancy consistent with the Council’s direction today.

Appointment
Under Government Code Section 36512(b)(2), Council may fill the potential vacancy by appointment. If the vacancy does occur, an individual appointed to the District 3 seat would hold office for the unexpired term of the former incumbent.

There is no specific process required to fill a Council vacancy by appointment other than to make sure any appointee is legally allowed to be a Councilmember in District 3. If the Council wishes to proceed by appointment, City Staff and the City Attorney recommend an application process similar to filling a Planning Commission seat.

Such an application process would include a period of community outreach and advertising. Staff would be able to screen all applicants to ensure they are qualified to be a Council member (age, registered to vote, live in the District, etc.). This type of process is already well known to Staff and can be implemented quickly and efficiently. Finally, the process is open and transparent and allows the Council to engage the community to find the best possible candidate to fill these vacant seats.

Council could also provide direction on the timeline for accepting applications and the process for selection. Council could consider allowing applicants to present before the Council or a ranked choice voting system for selection among multiple applicants.

Only applicants that reside full time and are registered to vote within District 3 will be eligible to apply. 230
Special Election
Under Government Code section 36512(b)(1), “If the council calls a special election, the special election shall be held on the next regularly established election date not less than 114 days from the call of the special election. A person elected to fill a vacancy holds office for the unexpired term of the former incumbent.”
Elections Code section 1000 defines “established election dates” to include the “first Tuesday after the first Monday in March of each odd-numbered year” and “the first Tuesday after the first Monday in November of each year.” Per these definitions, the next established election date is Tuesday, March 4, 2025. It would not be possible to hold a special election on this date because it is less than 114 days from when the election results are likely to be certified. The next regularly established election date is Tuesday, November 4, 2025.

Therefore, if City Council were to direct staff to set a special election, the earliest date for that election by law would be Tuesday, November 4, 2025. This would mean the Council would operate with four (4) member until November 2025. The person elected to fill the vacancy would serve until the end of the District 3 term in 2026.

The City of Solvang is not equipped to perform stand-alone elections and utilizes the County of Santa Barbara for its elections. Staff could approach the County of Santa Barbara to get an estimated cost for them to perform a special election solely for the City of Solvang. If an election is required, the City could administer a regular ballot on its own, which would involve renting voting machines, hiring polling personnel, and utilizing the County for verification of signatures.

Alternatively, the City could administer a mail in ballot, which would have similar needs, excluding the voting machines but include additional costs. At the time of this writting, no estimates could be obtained.

Recommendation
Staff recommends Council decide to fill the anticipated District 3 Council vacancy by appointment and to direct staff to begin to accept applications for the anticipated vacancy.

ALTERNATIVES:

Either appointment or special election can be utilized to fill the anticipated vacancy. If an appointment is not made within the 60-day time frame from when the County Certifies the Election and any vacancy would be confirmed, then a special election would be required to fill the vacancy FISCAL IMPACT: An appointment process would incur nominal costs from staff time that are within current budgets. A special election would be significantly more costly and such costs are not currently budgeted.

ATTACHMENTS:

A. Government Code Section 36512.
231
Government Code - GOV
TITLE 4. GOVERNMENT OF CITIES [34000 - 45345]
( Title 4 added by Stats. 1949, Ch. 79. )

DIVISION 3. OFFICERS [36501 - 41805]
( Division 3 added by Stats. 1949, Ch. 79. )

PART 1. GENERAL [36501 - 36525]
( Part 1 added by Stats. 1949, Ch. 79. )

36512.
(b) If a vacancy occurs in an elective office provided for in this chapter, the council shall, within 60 days from the commencement of the vacancy, either fill the vacancy by appointment or call a special election to fill the vacancy.
(1) If the council calls a special election, the special election shall be held on the next regularly established election date not less than 114 days from the call of the special election. A person elected to fill a vacancy holds office for the unexpired term of the former incumbent. (2) If the council fills the vacancy by appointment, the person appointed to fill the vacancy shall hold office pursuant to one of the following:
(A) If the vacancy occurs in the first half of a term of office and at least 130 days prior to the next general municipal election, the person appointed to fill the vacancy shall hold office until the next general municipal election that is scheduled 130 or more days after the date the council is notified of the vacancy, and thereafter until the person who is elected at that election to fill the vacancy has been qualified. The person elected to fill the vacancy shall hold office for the unexpired balance of the term of office.
(B) If the vacancy occurs in the first half of a term of office, but less than 130 days prior to the next general municipal election, or if the vacancy occurs in the second half of a term of office, the person appointed to fill the vacancy shall hold office for the unexpired term of the former incumbent. (c) Notwithstanding subdivision (b) and Section 34902, a city may enact an ordinance that does any of the following:
(1) Requires that a special election be called immediately to fill every city council vacancy and the office of mayor designated pursuant to Section 34902. The ordinance shall provide that the special election shall be held on the next regularly established election date not less than 114 days from the call of the special election.
(2) Requires that a special election be held to fill a city council vacancy and the office of mayor designated pursuant to Section 34902 when petitions bearing a specified number of verified signatures are filed. The ordinance shall provide that the special election shall be held on the next regularly established election date not less than 114 days from the filing of the petition. A governing body that has enacted such an ordinance may also call a special election pursuant to subdivision (b) without waiting for the filing of a petition.
(3) Provides that a person appointed to fill a vacancy on the city council holds office only until the date of a special election which shall immediately be called to fill the remainder of the term. The special election may be held on the date of the next regularly established election or regularly scheduled municipal election to be held throughout the city not less than 114 days from the call of the special election.
232
(d) (1) Notwithstanding subdivision (b) and Section 34902, an appointment shall not be made to fill a vacancy on a city council if the appointment would result in a majority of the members serving on the council having been appointed. The vacancy shall be filled in the manner provided by this subdivision. (2) The city council may call an election to fill the vacancy, to be held on the next regularly established election date not less than 114 days after the call.
(3) If the city council does not call an election pursuant to paragraph (2), the vacancy shall be filled at the next regularly established election date.
(e) (1) If the city council of a city that elects city council members by or from districts elects to fill a vacancy on the city council by appointment as a result of a city council member resigning from office, the resigning city council member may cast a vote on the appointment if the resignation will go into effect upon the appointment of a successor. A city council member shall not cast a vote for a family member or any other person with whom the city council member has a relationship that may create a potential conflict of interest.
(2) If a city council member elects to cast a vote under this subdivision, the city council member shall be prohibited from the following actions for a period of two years after the appointment of a successor:
(A) Advocating on any measure or issue coming before the city council in which the city council member may have a personal benefit.
(B) Entering into a contract of any kind with the city or a city vendor. (C) Accepting a position of employment with the city or a city vendor. (D) Applying for a permit that is subject to the approval of the city council. (3) This subdivision shall not apply to any city council member who is resigning from the city council due to charges of, or conviction for, corruption or criminal behavior, or who is subject to a recall election.
(Amended by Stats. 2015, Ch. 185, Sec. 1. (AB 952) Effective January 1, 2016.) 233
City of Solvang, California
1644 Oak Street
Solvang, CA 93463
PH: (805) 688-5575
www.cityofsolvang.com
November 12, 2024
SUBJECT: CITY COUNCIL VACANCY
Dear Interested Parties,
On November 12, 2024, the City Council voted to appoint a member to fill the vacant City Council seat of David Brown, District 3, who has been elected to be Mayor. The position will serve until the next General Municipal Election on November 2026.

The City Council is the legislative body of the City and is composed of five (5) members, (1) Mayor who serves at-large, and four who serve by District The City Council meets the second and fourth Monday of every month at 6:30 p.m. Special meetings are called as needed.

Interested parties are encouraged to apply for the vacant City Council seat through the application process. To qualify for consideration, you must be a registered voter and residing within the incorporated City of Solvang and within District 3, and submit a cover letter, application, and resume to the City Clerk's Office no later than 5:00 p.m. on Friday, January 3, 2025 [email protected] Paper copies will not be accepted.

Upon successful submittal of your cover letter, application, and resume, the City Clerk's Office will verify you are a registered voter within District 3 in the City of Solvang.

Each verified applicant will be invited to interview in front of the City Council at an open televised meeting of the City Council. Council has scheduled interviews for Monday, January 13, 2025, at 6:30 p.m. or as soon thereafter in the Council Chamber located at 1644 Oak Street, Solvang, CA 93463. Each qualified applicant will be allowed ample opportunity to address the City Council.

If you have any questions or concerns, please contact the City Clerk's Office at (805) 688-5575 ext. 206 or via email at [email protected].

Sincerely,
Annamarie Porter, CMC
City Clerk
234

CITY OF SOLVANG, CALIFORNIA
CITY COUNCIL DISTRICT 3 APPLICATION
2-Year Term to December 2026
City Clerk's Office
1644 Oak Street, Solvang, CA 93463
PH (805) 688-5575 x206
Email: [email protected]
Interested parties must submit cover letter, application, and resume to the City Clerk's office at [email protected] no later than 5:00 p.m. on Friday January 3, 2024 Applicant's Name
Registered Voter's Home Address District#
Home Phone Cell Phone: _
E-mail: Years Lived in Solvang-'-: _
Present Occupation-'-: Name of Employer-'-: _
Previous service on any Commission/Board/Council? --- Yes --- No If Yes, which C/B/C? When?
Are you available to attend evening meetings?
Are you able to Attend Day Meetings?
---
---
Yes
Yes
---
---
No Earliest Hour?---
No
Are you able to attend weekend community meetings or events? -- Yes --- No Do you presently contract any services or are you otherwise employed by the City? Yes No If so, what is the nature of the contract or employment? Educational Background:
235
Professional Experience:

Civic Activities & Community Involvement:

Approximately how many City Council meetings have you attended in the last 24 months? Please describe the reasons for attendance or topics of Interest? Why are you seeking the appointment to the City Council? I hereby certify that the information contained in this application and any accompanying documents is true and correct to the best of my knowledge.

Signature Date:

Information provided on this form is public information and may be made available to other applicants, members of the press, or the general public.
236

1. How to Apply: Each person seeking appointment shall obtain and file an application administered by the Office of the City Clerk.

2. Applicants are encouraged to attend at least one full meeting of the City Council.

3. Interview Process and Appointment Recommendation: Applicants shall be offered the opportunity to address the City Council regarding their qualifications during the City Council meeting of January 13, 2025.

4. Limitations: No applicant shall be appointed to serve on the City Council and any advisory body simultaneously. If an applicant is appointed, they must immediately resign from one body upon being appointed to another.

5. Oath of Office: Following appointment, the City Clerk, or designee, will administer the Oath of Office pursuant to the City Charter. The Oath may also be administered in the Office of the City Clerk.

6. Training - The City Attorney conducts Brown Act and Public Records Act training every two years to review Conflict of Interest laws, Brown Act regulations, and best practices for meeting management and records retention. All council members are encouraged to view archived recordings of the training available on the City’s website and to communicate any questions they may have to the City Manager.

7. Term of Office –. The term of office will be for the remaining term of the vacancy. In this case it would be through the election of 2026.

8. Conflict of Interest and Ethics. Duties shall be performed in good faith and in a manner which the member believes to be in the best interest of the City. It is improper for any member to utilize, for personal pecuniary gain or in an otherwise self-dealing manner, any information which is received by reason of said membership and is not a matter of public record. No member shall have a material financial interest in any contract or other transaction involving the City of Solvang’s purview. The member shall promptly disclose such interest in any proposed activity and shall not participate in any related deliberations or actions, nor vote on the matter.

Potential conflicts of interest may arise when a council member serves on another board within the community and there is a clash of duties between the two positions, e.g. when one board exercises supervisory, auditory, or removal powers over the other.

9. Statement of Economic Interest: The Political Reform Act of 1974, as amended (Government Code sections 81000-91014) and the City’s Conflict of Interest Code; require certain elected and appointed officials and designated employees to disclose certain personal financial holdings. Leaving Office Statement – Must be filed within 30 days of leaving office. A late fee of $10.00 per day may be assessed for filing late. In addition, failure to file timely or not at all may be grounds for removal, so it is important to comply with the filing requirements and associated deadlines.

10. Ethics Training: City Councilmembers are required to complete two full hours of ethics training pursuant to State Law and to renew this training at least once every two years thereafter. The original proof of participation certificate, awarded after completion of the training, must be provided to the City Clerk. It is important to comply with the training requirements and associated deadlines.

11. Individual council members should avoid making public comments on Council actions or public policies that might appear to represent the official position of council. Council actions, with the voting of each member, are conveyed to the Public in the form of official minutes or by resolution. The Mayor is the spokesperson for the City. Questions regarding possible ethical issues or conflicts of interest should be reviewed with the City Manager, or City Clerk, as appropriate under the circumstances, in advance of the subject meeting or discussion. 237

BLUE FOLDER ITEM
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.

City Council Meeting
November 12, 2024
Item 8.b
b. Discussion and Possible Action to Provide Staff Direction regarding Updates to Solvang Sign Ordinances.

PUBLIC COMMENT RECEIVED AFTER POSTING OF THE AGENDA
From: rene kaerskov.com
Sent: Friday, November 8, 2024 9:46:44 AM
To: David Brown ; Elizabeth Orona
Robert Clarke
Subject: Sign ordinance
Dear Elizabeth, David and Robert
I would have come to this upcoming CC meeting to talk about sign ordinance. However, I am sitting in the airport on my way to Asia/Middle East.

There seems to be a lot of noise about A-frame signs. My five cents and humble opinion is – • The most important sign for all of us is “The Solvang look & feel sign” – not the individual ice cream store’s, bakery’s or restaurant’s sign or A-frame. We all live and die by the “look and feel” of Solvang. The sign ordinance is important no matter how difficult it might be. Could probably be a little more clear and user friendly and applied evenly to all. • A town where every single business has an A-frame sign outside might not create the best “look & feel” for Solvang. Think about it – would any one business be better off if we all have an A-frame?
• If you approve A-frame signs, you also need to allow them for retail stores and museum/entertainment businesses. These businesses need customers just as much as a restaurant. And… they (we) are already slowly dying. Solvang without retail stores and museum/entertainment might not be such a good thing. Don’t put these businesses at a further disadvantage.
• Last but not least. I assume that CC members who own businesses as well as already using A-frame/sidewalk signs on city sidewalks, will recuse themselves during the meeting. These FPPC cases take a lot of time and last time the city used the taxpayers’ money on defending an individual member.
• Comment number “2” in your CC meeting package (full disclosure) is from me.

Best regards / Med venlig hilsen
René Gross Kærskov
DANISH MILL BAKERY / BRØD & KAGE / THE COPENHAGEN HOUSE / ÆBLESKIVEHUSET /

SOLVANG VIKING MUSEUM / BERING TIME
This e-mail message is intended only for the individual or entity to which it is addressed and may contain certain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this messag is not the intended recipient, the employee or agent responsible for delivering the message to the intended recipient, please know that any dissemination, distribution or copying of this communication is strictly prohibited. Accordingly, if you have received this communication in error, please notify René Gross Kærskov immediately via e-mail at Thank you.

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