outdoor advertising manual - aldot - home...1. base cost- this is computed based on a sign...

ALDOT Right of Way Outdoor Advertising

Revised January 2019

Outdoor Advertising

Manual



Table of Contents

Title Page ....................................................................................................... 1

I. Applicability and Purpose ..................................................................... 3

II. Sign Acquisition- General Procedure ..................................................... 3

III. Instructions for completing Short Form Appraisal ................................. 4

IV. Depreciation ......................................................................................... 6

V. Definitions. .......................................................................................... 9

VI. Outdoor Advertising Sign Schedule ...................................................... 10

VII. Miscellaneous Sign Schedule .............................................................. 12

VIII. Illustrations. ....................................................................................... 12



I. Applicability and Purpose

A. These procedures are applicable to non-conforming highway outdoor advertising signs,

that cannot be modified to make the sign conforming, on controlled routes (routes

controlled under the State’s Highway Beautification Act) and highway advertising signs on

other routes that have been made nonconforming due to local statutes, that cannot be

modified to make conforming. It is also applicable for on-premise signs when needed. If

the modification of a sign results in the loss of advertising space, the appraisal should be

for the depreciated, reproduction cost of the part of the sign not being moved and set back

up.

B. The purpose of these procedures is to provide compensation for non-conforming signs that

cannot be moved on right of way projects and sign removal projects for the removal of

non-conforming outdoor advertising signs in compliance with Legislative Act No. 276, Third

Session, Alabama State Legislature, 1971, enacted February 10, 1972, (as amended by Act

No. 79-672) and Federal Highway Administration 23 CFR Part 750, Subpart D.

II. Sign Acquisition- General Procedure A. Appraisals

1. Upon receipt of the OAS-1 forms, the Region/Area Staff Appraiser will complete a sign

appraisal (OAS-7) for each sign classified as nonconforming in accordance with the

instructions contained in the manual for the appraisal of Outdoor Advertising Signs.

2. Appraisal Review

1. The Region/Area Appraisal Review Section is to review the sign and submit same

to the central office along with their recommendations.

2. The recommendations should be made separately for the sign and right of way. 3. Approvals

1. The Regional Area personnel will ensure they have an approved offer for each sign

as well as the approved offer for the right of way from the Central Office before

beginning any negotiations with the property owner. This will enable

simultaneously negotiations for the required right of way and the outdoor

advertising sign(s).

4. Condemnation of Signs

1. If neither the landowner nor the sign owner agrees to separate acquisition offers

to both, then each party should be included as interested parties in the

condemnation petition.

2. If the sign owner accepts the acquisition offer for the sign but the land owner will

not accept the acquisition offer to him/her, then do not include the sign owner

as a party of the interest in the petition.

3. If the landowner accepts the acquisition offer but the sign owner will not accept



the acquisition offer, for the sign, then the interest of both parties must be

condemned.

4. The Appraiser and/or Sign Specialist is to testify in court to the value of the sign

and /or leasehold interest.

5. Administrative Settlements

Administrative settlements in the acquisition of signs shall be consistent with the

normal State practices in acquiring right of way by means of such settlements and shall

comply with applicable federal regulations. 6. Salvage and Retention

1. The Alabama Department of Transportation’s policy relative to the disposition of

signs on right of way projects is as follows.

a. To pay the depreciated value and encourage the sign owner to remove for

salvage.

b. When the relocation cost equals or exceeds the value of the sign, the

Central Office will approve an offer to purchase the sign and allow the

owner to retain for salvage if desired.

III. Instructions for Completing Sign Appraisal A. General Instructions-The instructions in this manual involve the valuation of two

types of signs: Outdoor Advertising Signs (paint bulletins and poster panels) and

Miscellaneous Nominal Value Signs (signs constructed of plywood, Masonite and

light metal) The sign appraiser shall be familiar with the design and construction of

outdoor advertising signs and shall keep up to date on the procedures and valuation

schedules pertaining to each. He or she shall also have a thorough knowledge of

depreciation as it applies to signs. When submitting the Sign Appraisal-outdoor

advertising sign (OAS-7), it is vital that all applicable information relative to the sign’s

valuation is furnished.

B. Identification-the project number and description will be furnished to the appraiser.

The remainder of this section will be completed from information obtained from the

OAS-1 prepared for each sign.



C. Ownership- This information will normally be OAS-1 form for each individual sign or as compiled in the appropriate database; however, if the information is not furnished or is incomplete, it will be the responsibility of the appraiser to complete this section.

D. Description of Sign – it is suggested that the appraiser refer to the manual and read the definition section prior to completing this section of the form appraisal. The required information to complete this section will normally be found on the OAS-1 form; however, it will be the responsibility of the appraiser to verify each item when the on-site inspection of the sign is made. It is essential that this section be totally completed to facilitate proper valuation of the sign.

E. Valuation of Sign- the appraiser will refer to Section III of the form appraisal to determine the various component parts to be included and valued in Section IV. The current schedule for each type sign will indicate the production cost of each component part of the sign based on; square foot, linear foot, and cubic foot values, except where indicated differently in the schedules. It is very important that the appraiser have the correct measurements of the sign. The following discussion will assist the appraiser in making the above determinations and is relevant to the valuation of paint bulletins and poster panels. Again, the appraiser should be familiar with the definition section of this manual.

1. Base Cost- This is computed based on a sign constructed with either a wood or

metal face erected on wood sign supports with a height above ground of 12

feet. This computation will be basic with each sign using the square foot area

of the sign face.

2. H.A.G.L.-The adjustment will be based estimated linear feet (LF) of height.

Note for direct-bury foundation support, for every 12 feet above ground, 3

feet of pole is below ground in the foundation. So, for every 12 feet of pole

height, add 3 linear feet. For platted support (poles bolted to the foundation),

do not add 3 feet. (In sandy-soil such as in Baldwin County, this depth figure

should be 8 ft. for every 12 ft.)

3. Direct bury –this term is for when the poles that extend into the ground (see

H.A.G.L.).

4. Metal Frame- If the sign has metal framework (not on a pole or one pole with

more than one sign), the valuation will require a square foot cost adjustment

from the schedule. The adjustment will be based on the square foot of the sign

face.

5. Lights- if the sign is lighted, the valuation of the sign will require a square foot

adjustment from the schedule. The adjustment will be based on the square

foot area of the sign face.



6. Scotch lite or Reflective Paint -if the sign has Scotch lite or Reflective Paint on

the sign face, the valuation of the sign will require a square foot adjustment

from the schedule

7. Panel Molding- the valuation of the sign will require a square foot adjustment

from the schedule. The adjustment will be based on square foot area of the

sign face. Molding will normally only be found on poster panels.

8. Posting Platform/Catwalk- the valuation of the sign will require an adjustment

from the schedule. The adjustment will be based on linear feet of the platform.

9. Cut out-requires an adjustment from the schedule. The adjustment will be

based on the estimated square foot area of the cut-out.

IV. Depreciation A. Depreciation will be determined based on observation and employing the following

guidelines in selecting the depreciation rate. There are three basic types of

depreciation that affect the value of a sign and they are as follows:

1. Physical Deterioration: This will apply for all types of signs. Indications of deterioration are rot, paint peeling, fading, rust, missing or broken parts (See the following Chart).

2. Functional Obsolescence: The presence or lack of structural features that decrease value. Some examples are as follows: a. The sign is owned by the business on site; if the owner goes out of business

or the business name changes, the message automatically becomes

obsolete.

b. When an activity ends that is of a specific nature and there is no longer a

need for the sign, after that activity the message becomes obsolete.

c. The sign structure is larger than the face.

d. The sign height when built is not sufficient for the present visibility. 3. Economic Obsolescence; decrease in value of a sign caused by outside source

such as:

a. A Sign located in an area that will very shortly be changed to residential

and the sign will not be allowed to remain. b. Newer construction on other sites, weeds, or tree growth over time

partially obstruct vision of a sign. c. Having an expired lease with a landowner which allows the land owner

to remove the sign at end of contract.



d. Physical Deterioration Chart

Percentage (%) Condition

0% Structure is new or maintained in a like new condition.

1-10%

Structure is sound in all aspects, but, minor deterioration is evident. Such as; fading or

peeling paint on components, wood is warped or show signs of rot and need re-

nailing. Metal show signs of rust.

11 to 25%

Structure is basically sound, but there is evidence of deferred maintenance.

Deterioration mentioned in the 1 to 10% range may be present and one of the

following parts need to be replaced; post, upright, back bracing, part of molding, one

or two planks on platform.

26 to 40%

Structure is still sound, but, the deterioration is much advanced past the 11 to 25%

range. Large amount of rust is in evidence and one or two of the components

mentioned in the 11-25% range need to be replaced.

41 to 60%

Structure is approaching an unsound condition, but, is still up-right. A great deal of

maintenance is required, and many component parts of the sign structure must be

replaced.

61 to 100%

Structure is unsound and needs to be replaced. The total depreciation depends upon

how much material the sign owner can salvage when the structure is torn down.



B. It will be the responsibility of each appraiser to determine the depreciation

applicable to each sign and provide sufficient explanation in the space provided in

the form appraisal. Note: In each of the ranges listed above, the appraiser shall

weigh the condition of the components and place the deterioration at its proper

place in the range. For example, if in the 1 – 10% range, the only thing wrong with

the structure is that a couple of the small wood members are slightly warped, the

deterioration would be in the upper part of the range. In all cases, the appraiser will

be called upon to use their best judgment in applying depreciation rates.

In estimating the deterioration on painted bulletins, the appraiser shall exercise reasoned judgment because these signs will be various sizes where the poster panel is a standard size with normally the same component parts. The components, such as posts, may not contribute the same to the overall cost of painted signs because of the differences in size. If one post of a three-post sign needs to be replaced, the percent of deterioration would probably be higher than if one post of a six-post sign needed replacement. This same reasoning shall be followed in estimating the deterioration on all painted signs.

C. Functional Obsolescence

1. It appears that functional obsolescence will be more prevalent in painted signs than in poster panels because the posting copy is not considered as a part of the cost new of a poster panel. The appraiser will use judgment based on observation in estimating the amount of functional obsolescence which is to be deducted from the residual after physical deteriorations is subtracted from the cost new.

D. Economic Obsolescence

1. The appraiser shall judge if a sign’s area development trends are such that

they may hasten the sign’s removal. There should not be any economic

depreciation applied if the sign is expected to remain in place 5 or more years.

2. When a sign is completely obscured or screened from the view of the

traveling public, it can be considered to have 90% economic obsolescence.

Any degree of screening less the described amount will require application of

judgment by the appraiser.



V. Definitions A. Non-conforming Sign-one which was lawfully erected, but which does not

comply with the provisions of State Law or State Regulations passed after the

sign was erected.

B. Poster Panel-A structure that is designed to support a flat surface upon which

printed advertising or other messages are affixed by pasting.

C. Junior Panel- A structure that is designed to support a flat surface upon which

printed advertising or other messages are affixed by pasting. The typical poster

panel is 12’x25’.

D. Painted Bulletin-An industry-built structure that is designed to support a flat

surface which printed advertising or other messages, over 200 square feet in

copy area are affixed by painting.

E. Single display- one sign not dependent upon another for support.

F. Back to Back Sign- a sign with two surfaces facing in opposite directions and

supported by the same structure.

G. Double Deck Sign- An outdoor advertising device containing two separate

panels supported by the same uprights and facing in the same direction.

H. V-shaped Display –A sign with at least two faces with the angle of intersection

usually 90 degrees or less. Each sign supported by separate panels.

I. Panel molding- The trim or decorative frame surrounding the entire panel of

printed message.

J. Apron-The decorative trim at the bottom of the sign. Normally found on

standard painted bulletins.

K. Posting Platform (CATWALK)-A horizontal walking area at the base of the sign

face used when work is being performed on a larger bill boards.

L. Cut Outs- The portion of the copy that is reproduced to emphasize a certain

figure and draw attention.

M. H.A.G.L. – Pole (aka support) height above ground level. The distance from the

base of the sign face to the ground.

N. Controlled Route- Any route of the National Highway System, which includes

the Interstate System, and any route on the former Federal-Aid primary

system in existence today.

O. Sign-An outdoor advertising sign, light, display, device, figure, painting,

drawing, message, placard, poster, billboard or other thing which is

designated, intended or used to advertise or inform, any part of the

advertising or informative contents of which is visible from any place on the

main traveled way of a controlled route.



VI. Outdoor Advertising Sign Schedule

Poster Panel (4”x4” Steel) Other Costs (large signs steel) Paint Bulletin

Base Cost * $26.00/sf $26.00/sf $12.85/sf

Metal Framework $7.50/sf $15.00/sf

Lights-Florescent $2.45/sf

Lights-Metallic Vapor $3.40/sf

Cat Walks $38.00/lf

Installation Labor Cost - $12.00/sf

Concrete- $30.00/cf

*Note: If the above is not considered adequate for plastic, interior lighted signs-use Marshall& Swift,

Section 64, Service Station signs.

H.A.G.L. Schedule (Linear Foot Cost)

H.A.G.L.* Steel Uprights (aka poles or supports) (4”x4” same as 4” dia. poles)

0’ – 29’ $38/lf

30’ & up $38/lf $150/lf

*Note; for each 2” increase in diameter (side), increase $/lf by a factor of 1.3 -Ex. 6” dia. is $38x1.3=$50

(R); 10” dia. is $38x1.3x1.3x1.3=$85 (R).

A. Additions:

1) Scotch-lite or Reflective Paint $12.00/sf of Sign

2) Panel Molding $4.00/sf of sign

3) Posting Platform

a. Wood- $7.55/lf

b. Metal- $40.00/lf

4) Cutouts- $22.00/sf

The State of Alabama building code concerning the construction of bill boards and lesser sized

signs states that the usage of wood will only be allowed in the repair of presently constructed

wooden signs. All existing wooden signs will be grandfathered into the new sign ordinance up

until their time of replacement. Any wooden signs which have disintegrated supports may be

allowed to have the replacement of those supports made of wood. However, all replacement

signs must be constructed of steel. Wood is no longer allowed in the construction of new signs

along State Highway and Interstates Systems. Note: If a wood supports are being valued, local

pricing of wood posts should be obtained, and depreciation shall include economic obsolescence.

Electronic (digital) signs are not included in this schedule and need to be priced locally.



Labor and material cost have increased tremendously since the previous Outdoor Advertising

Manual dated August of 2002. The previous $8.60/sf value placed on the sign base cost has now

increased to $26 /sf. This value includes the cost of the sign material and the labor to prepare the

sign, not the labor cost to erect the sign. The signs constructed today must use either 4”x4” or

8”x8” steel supports for signs 1’-29’ H.A.G.L; and 30’ and taller H.A.G.L signs must use wider

diameter steel upright supports based on the size of the attached metal bill board/ sign.

All steel poles/uprights, no matter their height used in the construction of signs must have at least

3 feet of steel support extending below ground into the concrete foundation for every 12 feet

H.A.G.L. The cost of concrete per cubic foot has now been included in the Outdoor Advertising

Sign Schedule. The appraiser shall determine the width and length of the concrete base. For every

12 ft. of pole height, add an additional have 3 ft. depth in the calculation (width x length x depth)

x $30/C.F. (In sandy-soil such as in Baldwin County, this depth figure should be 8 ft. for every 12

ft.)

The cost of platforms or “Catwalks” which are used on signs taller than 30’ has now been added to

the above Outdoor Advertising Sign Schedule. The cost for the catwalks of $38/lf will be applied

based on the estimated linear feet of the catwalk.

The cost of labor to erect the sign/bill board has increased to $12/sf and covers the cost of

machinery and man hours to physically construct the billboard and erect the steel support

uprights.

B. Depreciation: Observed Method-All Three Types Depreciation

C. Adjustment for Multiple Construction:

1. Back to Back- 1.60 times the cost of a single panel.

2. Double Deck- 2 times the cost of a single panel.

3. V-Shaped- 2 times the cost of a single panel.

4. Back-to-Back and One Panel on Top of Another-(4 sign faces in all). (Take Three times the

cost of a single panel.)

D. Monopole Signs are paint bulletins with only one metal support. They tend to have supports

with large circumferences and high H.A.G.L.s. The above schedule was designed for standard

poster panels and paint bulletins; however, it can be used to value smaller monopole signs. If

there is an occasion where a large monopole sign must be acquired, it is suggested that

replacement cost be obtained from a sign company (other than the company owning the sign to

be acquired which produces this type sign. The Region/Area appraiser would then apply the

applicable depreciation to the replacement cost so obtained.



VII. Miscellaneous Sign Schedule A. Costs:

1. 1 sf to 4 sf= $65.00/sf

1. 5 sf to 24 sf and above = $26/sf

Above signs constructed of plywood, Masonite and Light Metal.

B. Basis for Depreciation:

1. Double-Face-Factor=60%

2. Back to Back Factor-75%

3. Less 10% sign in well-made condition.

4. Less 10%- 40% -Sign is in fair condition. Sign needs repainting.

5. Less 40%-70% - Sign is in poor condition. Sign has physical decay and paint extremely

deferred maintenance.

6. Other Conditions: Age, typical economic life of a sign in this classification is 10 to 15 years

old and would fall into the 40% depreciation category class.

7. If the sign is blocked from view partially by weeds, trees, etc., this should be weighed in

the depreciation factor selected.

VIII. Illustrations

Bulletin Board Length

Paint Bulletin Board with Apron

Apron



Apron

Paint Bulletin Board with Cut out

25’ (Face + Molding)

24 ‘Face

Poster Panel

Cut Out

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