Here. Commissioner william ortizcartagena is abstent. Commissioner irene yee riley. Here. Commissioner mar mar. Here. You have a 84 up. Item number 2 our presenter is not here yet and would you like to move to item 3. Yes please. All right. We will call item 3 forward. General Public Comment. Allows the members of the public to comment on generally on matters that are within the Small Business commissions jurisdiction but not for todays calendar and items for commissions future consideration. Do we have any Public Comments today. Seeing none Public Comment is closed. Item 4 is a presentation and public action to make recommendation to the board of supervisors for a resolution authorizing for office of Small Business to expend grants funds in the amount of 100,000 to disdurs grants at the qualified legacy business who apply for the Business Assistance grant between october 1, 2016 and december 15, 2016 and we have regina dickendrizzi. Members you talked about this grant and this resolution is for the office to extend grant funds for any Grant Application that comes in after september 31. We need to have a resolution by the board of supervisors to approve us expending these funds so before you today is a resolution. I am asking for your approval to forward on to the board of supervisors. One particular note they just want to make is that while we will not be expending funds up to a Million Dollars for the Business Assistance grant but how the budget line item is in terms of the budget for the business the Legacy Preservation fund is 1 million we havent set a specific allocation for the Business Assistance grant the City Attorney just to make it broad and cover everything has said up to a million because thats what is in the line item budget but were not expend expending the full 1 million and its going to the rent stabilization grant so i am just asking for approval to forward this resolution on to the board of supervisors. Okay. Is there are any questions any questions commissioners . No. Okay. So we will take Public Comment on this item. Any members of the public to comment on item 4. Seeing none. Public comment is now closed. Do we have a motion . I motion that we approve the resolution. As written . As written. I second. Okay. Okay. All in favor . Aye. All opposed . Okay the ayes have tits 50, two absent. Okay. Lets go back to item 2. All right. Item number 2. Presentation and public action to make recommendations to the board of supervisors file no. 160553 planning code signs exemptions and general advertising sign penalties ordinance amending the planning code to clarify that all noncommercial signs are exempt from regulation pursue to not planning code article six and increase penalties for repeat violations for display illegal general advertising sign and shorten the time for penalties for general advertising sign vlzs begin with the accrual allow property liens with the penalties that go unhade for the Planning Department determination under the California Environmental quality act and making finding of consistency with the general plan and eight priority policies of the municipal code section and public necessity, convenience, and welfare and section 302 and our representative is from the office of supervisor peskin. Let me make sure your mic is on. I am having trouble with this. Just one moment. Okay. Its almost it just keeps flipping me back to this other screen. Just a moment. Im sorry. Okay. There we go. Nope. Okay. Thank you. All right. Am i good to go . Yes. Thank you commissioners and president dwight for having me here this evening. I am from kins office and i will go through the aspects before the legislation before you right now. Legislation before you makes to two fundamental changes to the planning code which regulates generals advertising signs in the city. First it clarifies that noncommercial signs signs are exempt from any regulation. This includes religious symbols, informational plaques, non business related flags, and art murals across the city. The reason is that we know that the Supreme Court determined we cant regulate those signs in the way you regulate commercial signs provided that you provide legitimate interest in doing so and could and i think this is more critical to what were talking about this evening the Legislature Increases the penalties for violations of the existing general advertising sign requirements. To be clear were not changing any of the requirements. What were doing is changing the penalties that apply to violations. The reason for this is as follows. In 2002 when voters passed proposition g instituting a citywide ban on general advertising signs we had approximately 1500 general advertising signs at that time. In 2007 that level, the existing general advertising signs were approximately 800. In 2007 in that year we instituted new pen institute pen alternaties for the signs this. Was because we were seeing proliferations in the neighborhoods. In the years since 2007 and in fact it wasnt a deterrent but the penalties instituted were a of doing business and we had 200 new general advertising signs, illegal general advertising signs installed across the city. Each time this happened the city is forced to step in with either enforcement or litigation or some combination of the two in order to have the general advertising sign removed as a result its just an expenditure that should be directed to other pursuits so with this the legislation po poses the shortening this to three day s and the responsible body can submit an application to remove the general advertising sign or request application or reconsideration of the violation. In addition repeat violations of general advertising sign regulations would be subject to daily enhanced period penalties tofive times a day the base time of the violation and additionally for repeat violations there is an alternative calculation separate from the fines that would consist of calculating the income earned by the responsible parties for the display of the illegal general advertising sign and including but not le of the owner. These have become extraordinarily lucrative means of advertising for businesses, and in fact in 2015 we know that the revenue from general advertising signs rose 4. 6 to 7. 3 billion dollars, an all time high nationally so we believe that the current pen altes are a cost of doing business and no longer a deterrent for the behavior and the proposed legislation proposes to aggravate this and so the city doesnt enforce and litigate these but providing a deterrent to the signs and with that i am happy to take any questions that you may have. I will answer them to the best of my ability. What form do these illegal sort of gorilla signage, what form does it take . I am familiar with one that was drapeod embarcadero one during the super bowl. That was a prominent example. Technology has made it easy to install these signs virtually anywhere and can be projected on various services. I think that they are being sort of installed on an ad hoc basis across the city where they dangle over the side of a major arterial. I wish i had an inventory of the past signs but so it includes projected images . It would, yeah. Interesting. And is there a limit, a legal limit to what you can charge as a deterrent sign here or do you have to go to some other legal body to establish the fines would be . No, we havent been advised to the limit we can fine. We have said for repeat violations and on the second day its two times the initial fine and three days up to three times and up to five times and the five times repeats. Escalation. Great. Commissioners any questions . I have a question. What is the definition of general advertising sign . What is it . That definition is in i believe section 603 of the planning code. I am happy to have that before me. So this penalty applies to any general advertising signs . That is correct. Regardless of size or [inaudible] that is correct. My understanding the fine can be calculated based on the size of the sign and i think what a definition of general advertising signs may be clearer in terms what is exempt and theyre informational signs, plaque cards that are instructive to the public where to find something, and flases, religious signage. These are the exemptions . Correct. As to the definition. For example a small Retail Business with an advertising would be subjected to this type of penalty, increased penalty . Is that correct . That is correct. Not so much my understanding not so much a more key or says where the business is or takes up the interior of a window and large advertising sign so if it has on the window a product its selling then this retail would be subjected to this increase in penalties, correct . Perhaps its a unlaw sign. I have a hard time saying that 50 of the product in the store right now falls under the definition of general advertising sign no, what theyre going after what happened downtown is buildings with large window facings started renting out the space and putting vinyl advertisements for the businesses. That maybe the case but i am wondering if it will have affect on the Small Businesses. Any Small Business requires the permit and the issue is if you put up a sign without a permit youre subject to enforcement if someone complains. This is a question not expressioning an opinion but a question. Right. Perhaps commissioner on page eightit and one definition and lee correct me but one says that a general advertising sign not exceeding 24 square feet so theres a size i think definition to it, and so there is a size element because its initially the general advertising signs were working with the definition of billboards, that concept so in 2007 there was a proliferation of billboards before we got into the technology and projection on sides of properties so anyway. So the question so the question is its talking about thats what i was leading to but thank you helping me. So are we talking about 24 square feet above or below . Its my understanding from the section that director read from its to shelters or kiosks from the mta and you know it when you see it and on the side of the a building. Its a vinyl the interior entire side of a shop window. Billboards of course. I am talking about general advertising is advertising about the product that has nothing to do with identifying the business, correct . Correct. Okay. So this increased penalty can apply to any sign as long as its general advertising sign . General advertising sign . I want you to clarify. If its a new illegal general advertising sign, yes the penalties apply without any limit . What is that . No limit as to the penalties, the accrued penalties. Yeah, theyre calculated i believe on the size of the sign in question and then accumulate or rather escalate over five days and capped five days or five times in perpetuity until the sign is removed. So the and accrue indefinitely. Indefinitely and it doesnt matter because i know the underlying because you stated it policy was to deter these big advertising signs proliferating in the city and county of San Francisco. Correct. But this will also affect smaller businesses. I think it may have an effect on fall smaller businesses and why were before the Small Business commission. I think there is a way to do it legally or illegally. If they get the violation its an opportunity to remove the sign and correct the violation or seek a permit in order to do so. So you have the opportunity to correct the situation. How much time do you have . You have. This would shorten the time and currently shirt days and would be three days. Is it set in stone or does the department have leeway imagine someone goes to great pains to do the sign and could get a permit to do it and do they have to take it down within three days or get a permit. You have 30 days to get the permit or take it down or is everyone subject to the three days rule. I think with most laws there is inherently a modicum of discretion involved with these things. I dont know how the city would ultimately enforce this. I hope they enforce it strictly but aside from enforcement this is to detear the unlawful behavior. Yeah, were just trying to get at the unintended consequences with this. Yes of course. And most violators are not the Small Businesses, correct . This is a gorilla marketing tactic and as pointed out they calculate how much its going to cost and they do it. Right. I think that it sends it plainly. There is a vivid and clear evil which this is trying to get at and adopting obscenity language. You know it when you see it. You know what gorilla advertising sign. There have been several hundred in the last years and knowing full well this is a blight on the urban environment and we are trying to curb that by giving the city all the tools that it needs in order to go after this and deter this behavior. This includes sidewalk stenciling as well . We addressed that earlier in the year because we were noticing that is that a different i believe its different yeah, because we were seeing a lot of the advertisements if you recall of certain music albums and proliferating on the sidewalks along the corridors and we attempted to address that with legislation this year and again its a tool that the city it use to wren force. Okay. So can you define what is legal or illegal . Is it the general rule they have a sign up without a permit is illegal . Thats correct and in fact i mean the city has a ban on new general advertising signs so i think that the permit comes into play if you need to remove a general advertising sign that has gone up unlawfully. I believe that is the case but since 2002 there has been a ban on new general advertising signs citywide. Is store signage a different part of the code . Code . The sign window signage [inaudible] no, i mean a sign indicating a business on an awning . That is different. I think thats the only what were you referring to . Grocers. You said window signage. I said making a distinction into a store front and identify the sign above it that is not governed by general advertising sign. That is a demarcation that wouldnt fall under this rubric of general advertising sign. The question is beyond that if there is i general advertising sign about a product say on a window. Its clear that the increased penalty and the shortening day from 30 days to three days would apply correct . I believe it would correct and if the entire windy has a vinyl advertisement that is among the urban visual distractions that voters decided in 2002 that distract from the urban environment that is counterproductive or blight. Yeah, but getting to the Commissioners Point i mean okay, so lets say have a window front and advertise soapos that one and deordant on that one and my goods are and not a dick ad for one thing. Its a series of ads on sale and in its collective it might be considered blight but i am curious if there is any kind of definition or limit on you know because many stores, grocers are going to advertise something on sale, commercial goods or produce or Something Like that and i wonder what is the limit. Thats not what he is talking about under the law and i remember voting for this and like billboards i understand that but extends what we consider a traditional billboard and a building being a billboard in of itself and the borming as they call it entire window complexes with a contiguous you know advertising embarcadero during the super bowl. Right or the windows downtown. Can i ask you provided a review for the commission on yeah, so some of the signs that would be considered general advertising sign considers are signage that advertises a product that is only incidentally sold there so if a Convenience Store as a cocacola advertisement in the signs that is a general advertising sign whereas a sign that advertising the business name is not. Is there a size restriction . Can a business have a certain amount of frontage of their building going because bars have [inaudible] signs for beers and could be considered general advertising so do we have im not aware of the size restriction. What i understand is a series of examples and i know that after 2002 there were the Contest Promotions and a bunch of replastered posters and at the top it would say go into soandsos store for a poster and general advertising signs and that is currently being litigated and there is also somebody tacks up a sign on the gate that is considered a general advertising sign and of course the billboards and wall mural, cocacola wall mural is another example and besides that lee was referring where it comes dangles down the side but i dont think its as much and i will check on this but i spoke with somebody of the general Advertising Sign Program and he didnt mention a size requirement. Its about the function and whether the product is a primary product. Are we talking about outside signs . Yeah. Not inside a store or anything . Or window sign. Every liquor store in the city has beer and that covers it. The reason is first to clarify so people can hear your testimony and understand the application of this law to their business, correct . Correct. So is it the conclusion so that we dont misstate the facts that general advertising sign although is not the purpose of this law i mean we are targeting the bigger signs could have an effect on smaller businesses with smaller signs as long as theyre under the definition of general advertising sign, correct . That is correct. I want to make the point too that this legislation doesnt change the definition of general advertising sign. It doesnt change the legality of general advertising signs. What it does is it altders the penalties so the city can go after what we consider general advertising signs. So as a policy under this proposed amendment we dont discriminate between the small and big fish. Everybody is in the same pot so you get a shorter notice for penalties and hit with penalties regardless of your size and what your general advertising sign may be, correct . I think that is correct and for Small Businesses if the concern theyre not going to be able to mitigate the violation or remove the general advertising sign in