'& Clear Channel Oucoor
November 30, 2021
From: Bruce Qualls, Clear Channel Outdoor
Subject: San Jose Airport Addendum to EIR for Electronic Signdge, Item 5.2 Dear Honorable Mayor and San Jose City Council:
The following are key points worth emphasis and clarification in your evaluation of this important item on today’s city council agenda. In the interest of brevity| will state the information in bullet points:
DIGITAL BILLBOARDS APPROVED BYCITYCOUNCIL ON CITY OWNED PROPERTYAND AIRPORTS SITES SPECIFICALLYREMOVED FROM RFP PROCESS BYCITY:
1. Digital billboards on city owned property are legal and sought after by the city as a policy voted on and approved bycity council.
2. An addendum to EIR for the airportfor digital signs was conducted and thoroughly evaluated
3. A brief recap of the thorough process and how our companyis in this position with your direction. In terms of equity and fairness please note:
a) City Council already recognized and approved in writing the airport proceeding with this project with city council direction per the approval of the policy and the July 15, 2019 Memo from Kim Walesh: Quote:” The airport has an existing agreement with an advertising concessionaire who managesone cohesive facility-wide advertising program. Airportstaff is interested in leveraging their outdoor program to support in-terminal advertising...”
b) Same Kim Walesh memo specifically removed the airport sites from the city RFP process, and city council voted to support this procedure. c) February 2020 — City Attorney approved the signed agreement between CCO and SJA for CCO in support of the project plan and to process this Addendum. d) CCO shall remove/take downsignsat the ratio of 4:1 within the areas and criteria defined bycity policy 6-4
e) CCO has invested more than 2 years of expertise and $200,000 in processing and design costs
f) How can an RFP be conducted fairly? The point of an RFP is a closed bid. CCO economics are already published. All the risk of the EIR is on CCO. All the cost, time, effort, design, expertise, all on CCO. Any other bidder would have the benefit of all of this information garnered at the risk of CCO who merely followed the specific direction of the city.
Clear Channel Outdoor, LLC
555 12th Street, Suite 950, Oakland, CA 94607
Call (916) 414-2903 / Fax 510.834.9410/ Visit ClearChannelOutdoor.com / Follow W @CCOutdoorNA '& Clear Channel Outdoor
ADDENDUMTO AIRPORTEIR:
This documentis the most thorough, expensive and complete study conducted for a digital sign in the history of the bay area.
The bay area has more than 80 of these signs all with no adverse affects on traffic safety, or the environmentwith 12 years of operational experience. Many cities who havedigital signs have sought more due to the benefits and minimal impacts.
There are 10,000 of these across the country with no adverse impacts on traffic safety The majority of the site area wherethesesigns are to be located are heavily built up with parking lots, airport, concrete, fuel tank farms, an interstate freeway with no residential for nearly a mile.
The custom design of these signs exceed federal, Caltrans, and specifically city policy 6-4 requirements.
The signs have no motion, no blinking or flashing and appear as static images just as roadside signs have done for 110 years on printed signs.
The light from these signs automatically adjusts instantly to changes in ambientlight when a cloud comes overhead or at dawn and dusk. At night the power may beaslittle as 3% of potential to assure the light is within the context of the ambient light.
The hours of operation are reduced to 6am to midnight. This is in policy 6-4 and was a specific accommodation to the request of the observatory.
These signs are to be custom designed to limit light in directions away from the airport EIR PROCESS WORKED: The south location nearest the Guadalupe River was revised to remove the digital sign oriented north. This sign was converted to a back lit traditional printed sign to fully mitigate light emanating toward the river. The sign was also moved farther away. Light reaching the river will not exceed a barely measurable .1 foot candles in order to avoid any adverse impact on Steelhead breeding in the river.
This as part of the mitigations in Policy 6-4 and those specific to the Addendum to EIR show the process works and the Addendum toEIR is thorough and effective.
NOT TO BE CONFUSED WITH THIS PROKCT - ROGUE DIGITAL SIGNS:
These illegal signs at 1880/H101 near Gish are installed without permits by rogue operators These signs do not meet city or CCO standards and are not what is proposed Community residents are appropriately upset by these scofflaws These are deliberate illegal acts and the city is suing the operators BENEFITS TO THE CITY’S SANJOSE AIRPORT:
Airport finances and concessionaires have been adversely impacted by the pandemic TSA indicates ridership has been impacted significantly These signs are the highest per squarefoot rent at the airport Due to the existing contract, these outdoor signs will have the highest revenue shareof any in the bay area by a significant margin
This is the highest minimum rent for any digital billboards in the bay area Clear Channel Outdoor, LLC
555 12th Street, Suite 950, Oakland, CA 94607
Call (916) 414-2903 / Fax 510.834.9410/ Visit ClearChannelOutdoor.com / Follow @CCOutdoorNA YNL00PINODD®&MO]O4/WOJOOPINO|SUUeYDJeIIOSIA/OLVE'PES'OLSXe4/€06Z-H1r(916)12D LO9V6WO‘PURHHEO‘06A1INS‘Jea!SUIZLSSG
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COUNCIL AGENDA: 8/6/19
FILE: 9-602
a%, ITEM: 4, 9°
SANJOSE Memorandum
CAPITAL OF SILICON VALLEY
TO: HONORABLE MAYOR FROM: Kim Walesh
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: July 15, 2019
Approved r OS4 Date 4 23\\4
SUBJECT: COUNCIL POLICY PRIORITY #4: ELECTRONIC BILLBOARDS-
APPROVAL OF SCOPE AND TIMELINE FOR REQUEST FOR
PROPOSALS FOR LARGE FORMAT SIGNAGE/BILLBOARDS ON
CITY-OWNED PROPERTY
RECOMMENDATION
Accept staff recommendations for the scope and timeline of two Large Format Signage/Billboard Request for Proposals on City-ownedproperty.
OUTCOME
Approvalof staff recommendationsoutlined in this memorandum will result in the issuance of two Requests for Proposals for large format signs or billboards on City-owned property.
BACKGROUND
On September 25, 2018, the City Council approved proposed amendments to the General Plan Land Use Policy CD-10.4, City Council Policy 6-4, and Title 23 of the San José Municipal Code to allow signs on City-owned property, including billboards, programmable electronic signs, and signs displaying off-site commercial speech, as Phase 1 of a two-phase work plan. These amendments were in response to Council Priority #4 Electronic Billboards, options for public and private property that will allow electronic digital off-site advertising signs or billboard installations.
The Council’s action supported the following objectives:
HONORABLE MAYOR AND CITY COUNCIL
July 15, 2019
Subject: Council Policy Priority #4: Electronic Billboards - Approval of Scope and Timeline for Request for Proposals for Large Format Signage/Billboards on City-Owned Property
Commercial vibrancy and Downtown Sign Intensification. Expanding the types of allowable signs on City-ownedsites may enhance commercial vibrancy and create a more interesting visual environmentin appropriate locations, such as Downtown.
Reduction ofvisualclutter and blight. Existing policy calls for eliminating billboards from locations where they are unsightly or incompatible with surrounding land uses and may reducethe overall numberof existing billboards in the City.
Revenue. New sign proposals may generate revenue for the City, which could be used to support public amenities and place making efforts, as well as City-ownedfacilities, programs, or services.
Exploration ofbest practices. Allowing billboards, programmable electronic signs, and off-site displays on a limited number of City-ownedsites in Phase 1 enablesstaff to assess best practices and criteria should the City Council proceed with a Phase 2 program on non-City-ownedsites.
The City Council requested an opportunity to be updated on the scope of the Large Format Signage/Billboard Request for Proposal before issuing thesolicitation.
ANALYSIS
Since September 2018, staff has completed multiple rounds of outreach and discussion with stakeholder tenants and operators in the City-ownedfacilities (e.g. Convention Center, Museum of Art, Hammer Theatre and the Tech Interactive) that are locations for potential large format signs or billboards. These discussions allowedstaff to identify aesthetic and programming standards and evaluation criteria desired by each stakeholder tenant and operator, and to address operational questions for each City-ownedfacility.
Throughthis process it became apparent that procurement would be less complicatedif two request for proposals were issued simultaneously. Therefore, staff proposes that one Request for Proposal focus on previously identified City-ownedproperties located in the Downtown Sign Zonethat have cleared environmental review (Select Request for Proposal) for building-mounted static or digital signs, and the other Request for Proposal seek proposals from companiesthat have identified other City-owned property for consideration of free-standing digital signs (Alternative Request for Proposal). Request for Proposals for unidentified City-owned locations will require substantially more due diligence, including but not limited to environmental review, and the requirements to evaluate these proposals will differ slightly.
Table 1 below lists the City-ownedsites in the Downtown Sign Zone that will be included in the Select Request for Proposal described in this memorandum. Table 2 lists the City-ownedsites that will be included in the Alternative Request for Proposal and Table 3 lists the City-owned
HONORABLE MAYOR ANDCITY COUNCIL
July 15, 2019
Subject: Council Policy Priority #4: Electronic Billboards - Approval of Scope and Timeline for Request for Proposals for Large Format Signage/Billboards on City-Owned Property
sites that have been environmentally cleared for additional commercial signage but will not be included in either Request for Proposalin this process.
Table 1. City-ownedsites included in the Select Requestfor Proposal
APN CURRENT USE ADDRESS SIGNS
264-29-113 McEnery Convention Center 150 West San Carlos 2 259-42-023 The Tech Interactive 201 South Market Street 1 259-40-066 San Jose Museum of Art 110 South Market Street 1 467-46-109 Hammer Theater 101 Paseo San Antonio 2
259-43-064 Center for Performing Arts 255 Almaden Boulevard 2 259-34-039 Market/ San Pedro Parking Garage 45 North Market Street 2. 467-21-002 Third Street Parking Garage 95 North Third Street 1 467-46-097 Second and San Carlos Parking Garage 280 South Second Street 1 Table 2. City-ownedsites included in the Alternative Requestfor Proposal
APN CURRENT USE ADDRESS SIGNS
259-04-019 City of San Jose Parking Lot Hwy 87 and West Mission 1 259-06-054 City of San Jose Parking Lot 737 North San Pedro Street 1 Table 3. sites not included in either Request for Proposal
APN CURRENT USE ADDRESS
254-01-004 Mabury Service Yard 1404 Mabury Road
259-28-043 SAP Center 525 West Santa Clara Street
230-37-020 Vacant Lot (Near National Guard) Hwy 87 and West H
Thesites listed in Table 1 and included in the Select Request for Proposal are the McEnery Convention Center, the Tech Interactive, the San Jose Museum of Art, the HammerTheatre, the Center for Performing Arts, the Market/San Pedro Garage, the Third Street Garage and the Second and San Carlos Street Garage. A total of 12 signs will be possible on these eight locations. The McEnery Convention Center, Hammer Theatre, Center for Performing Arts and Market/San Pedro Garage have each been environmentally cleared for two signs. City-owned parking lots at Hwy 87 and Mission Street and North San Pedro Streetlisted in Table 2 have each also been environmentally cleared for one new off-site commercial sign. These two locations will be offered in the Alternative Request for Proposalsolicitation.
Seven additional sites listed in Table 3 were environmentally cleared as part of the City Council action in September. Of these sevensites, one site - the Mabury Service Yard - is limited to
HONORABLE MAYOR AND CITY COUNCIL
July 15, 2019
Subject: Council Policy Priority #4: Electronic Billboards - Approval of Scope and Timeline for Request for Proposals for Large Format Signage/Billboards on City-Owned Property
displaying on-site commercial speech, three sites are committed to Sharks Sports and Entertainmentas part of their Arena Management Agreement with the City of San Jose (SAP Center, Hwy 87 and West Hedding, and 2500 Seaboard Ave), and three sites are at Mineta San The material elements included in each Request for Proposal are City benefit, commercial advertising policy, technical requirements, lease term, procurementtimeline, and proposal evaluationcriteria.
City benefit. Both Request for Proposalsolicitations seek a minimum annual cash guarantee or percentage of revenue as well as a percentage oftime for City messaging on signs. The percentages requestedarein line with industry standards based on staff research and inquiries of other cities. The solicitations also seek an art accompaniment (e.g. mural, artistic lighting installation, sculpture, etc.) to static sign(s). Each Request for Proposal also includes a request for periods of time where on-screen advertisement would be limited to advertising related to event sponsors of major national or international events with a presenceat the designated City location or in a City designated Special Event Zone. This requirementis in anticipation of the City’s future ability to attract events such as the World Cup, College Football Championship or Super Bowl.
Commercial advertising policy. The proposed commercial advertising policy is consistent with the policies of other public agencies such as the Valley Transportation Authority and San Francisco Municipal Transportation Agency. Generally, restrictions will be placed on proposed content that is demeaning, profane, promotes violence, unlawful, obscene, prurient, adverse to the City of San Jose, political, religious, false or misleading, or promotes the sale or use of firearms, tobacco marijuana, cannabis-related products or alcohol.
Technical requirements. The technical requirements of each sign (location,size, illumination, hours of operation, building placement, etc.) shall be consistent with criteria outlined in City Council Policy 6-4.
Lease term. Asthis is the first time the City of San Jose has allowed off-site advertising on City-owned property, staff has attempted to strike a balance between proposing a financially viable program for proposers and providing the City with the necessary degree of flexibility. Staff envisions an initial term of 10 years for the lease at each site with two additional 5-year term options. The execution of any lease between the City and the
HONORABLE MAYORAND CITY COUNCIL
July 15, 2019
Subject: Council Policy Priority #4: Electronic Billboards - Approval of Scope and Timeline for Request for Proposals for Large Format Signage/Billboards on City-Owned Property
winning proposerof either Request for Proposalis conditioned on successful negotiations of an amendmentto the existing agreement between the City and tenants and/or operators of the City-ownedsite.
Procurementtimeline andprocess. Both Requests for Proposals will be released at the same time and will follow an identical solicitation timeline. Barring any major changes to the elements contained in each document by City Council, the Request for Proposals will be released through the City’s BidSync system in mid-August and the procurement process will close at the end of September. The process will include a customary pre- proposal conference, objection and questions period and City’s response to written objections and questions.
Proposal evaluationcriteria. Both Requests for Proposals will contain experience, aesthetic quality standards, and City benefit categories as evaluation criteria. The Select Request for Proposal will contain additional site-specific evaluation criteria. The Alternative Request for Proposal will include the removalof existing free-standing billboards at a ratio of 4:1 as required by Council Policy 6-4 to promote the reduction of visual clutter and blight.
Pursuantto the City’s Procurement and ContractIntegrity and Conflict of Interest Policy (Resolution 77135, Section 7), potential proposers should not participate in the development of the specifications for the Request for Proposal. Once the Request for Proposalis issued, potential proposers mustlimit their inquiries to the designated representative for the Request for Proposal until the protest process is complete. Potential proposers that do not comply with these requirements could be precluded from participating in the procurementor disqualified. These precautions are intended to increase competition and ensure a fair and transparent procurement process.
EVALUATION AND FOLLOW-UP
Pending no major changesto the proposed parameters of each request for proposal, and City Council approval, the Request for Proposals will be released to the public in mid-August.
Staff will conduct this solicitation in accordance with standard City process and procedures around procurement and will return to Council by December 2019 for approval on the selection of a vendor(s).
PUBLIC OUTREACH
The memorandum will be posted on the City’s website for the August 6, 2019 City Council agenda.
HONORABLE MAYOR AND CITY COUNCIL
July 15, 2019
Subject: Council Policy Priority #4: Electronic Billboards - Approval of Scope and Timeline for Request for Proposals for Large Format Signage/Billboards on City-Owned Property
COORDINATION
This memorandum has been coordinated with the City Attorney's Office, the City Manager’s Budget Office, the Airport, and the Department of Planning, Building and Code Enforcement.
COMMISSION RECOMMENDATION/INPUT
No commission recommendationis associated with this action.
FISCAL/POLICY ALIGNMENT
The recommendations brought forward in this memorandum will result in the issuance of two Request for Proposals for large format signsor billboards on City-owned property which are anticipated to produce revenue forthe City through a lease agreement with the successful proposer(s). The exactfinancial benefit to the City is currently unknown. The desired outcome of staff recommendations in this memorandum align with Council Priority # 4 Electronic Billboards.
CEQA
Negative Declaration for General Plan Text, Municipal Code and Council Policy Amendments for Signs on City-ownedSites, including Billboards, Programmable Electronic Signs and Signs Displaying Off-site Commercial Speech, File No. PP 18-058. /s/
KIM WALESH
Deputy City Manager
Director of Economic Development
For questions please contact Blage Zelalich, Downtown Manager,at (408) 535-8172.
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VACATI
12/9/21, 2:36 PM Mail - Agendadesk - Outlook
https://outlook.office365.com/mail/[email protected]/AAMkADUxOWI4ZjE3LTRkNDEtNGUzMS04MjAwLTIzNzdiYTdkMjc5NAAuAAAAAAC… 2/2 today.
Let’s not spoil the unique character of our City and turn San Jose into Anyplace USA.
Thank you.
Rev. Joy-Ellen Lipsky. CCP. PMP, CCM
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