Memorandum — San Jose City Council, February 15, 2022

TO: HONORABLE MAYOR FROM: John Aitken

AND CITY COUNCIL

SUBJECT: SEE BELOW DATE: February 3, 2022

Approved Date
2/3/2022

COUNCIL DISTRICT: 6

SUBJECT: ADDENDUM TO THE AMENDMENT TO THE NORMAN Y. MINETA

SAN JOSE INTERNATIONAL AIRPORT MASTER PLAN

ENVIRONMENTAL IMPACT REPORT FOR THE OUTDOOR

ADVERTISING DIGITAL BILLBOARDS

RECOMMENDATION

(a) Adopt a resolution approving the Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan Environmental Impact Report (EIR) (SCH# 2018102020), certified by the San José City Council on April 18, 2020 (Resolution No. 79497), in accordance with the California Environmental Quality Act.

(b) Conduct a Public Hearing regarding the Project Plan for two Outdoor Advertising Digital Billboards under the “Norman Y. Mineta San José International Airport City of San José Advertising Concession Agreement by and between the City of San José (“City”) and Clear Channel Outdoors Inc. (“Concessionaire”) with estimated annual revenue to the Airport of $490,000 and reaffirm the project plan.

OUTCOME

Adoption of the resolution will allow Concessionaire to proceed with coordinating the installation of two outdoor advertising digital billboard sites (“electronic signs”) on Norman Y.

Mineta San José International Airport (“Airport”) premises and the removal of eight billboards in unsightly and incompatible locations in San José. Conducting a public hearing for the Project Plan will comply with the public noticing requirement in Council Policy 6-4.

COUNCIL AGENDA: 2/15/2022
FILE: 22-148
ITEM: 5.1

HONORABLE MAYOR AND CITY COUNCIL
February 3, 2022
Subject: Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan for the Environmental Impact Report for the Outdoor Advertising Digital Billboards

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From the date of installation through June 30, 2027, the two electronic signs will generate a Minimum Annual Guarantee (MAG) of $490,000 in additional revenue to the City, apart from the approximately $2.1 million MAG for the in-terminal digital advertising program. In addition to the guaranteed revenue, the Concessionaire will dedicate ten percent of the advertising time to the Airport to promote Airport services and initiatives to the community.

EXECUTIVE SUMMARY

On November 30, 2021, the City Council considered adoption of a resolution to approve the Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan EIR (SCH# 2018102020) and to conduct a public hearing regarding the Project Plan for two Outdoor Advertising Digital Billboard sites. The City Council discussed the November 24, 2021 memorandum from Mayor Liccardo, Vice Mayor Jones, and Councilmembers Peralez, Cohen and Foley, which recommended to not approve the EIR Addendum and directed the City Manager to conduct a Request for Proposals (RFP) process for two proposed outdoor advertising digital billboards that includes: 1) a requirement for the elimination of four existing billboards citywide for every one digital billboard erected, pursuant to the 4:1 ratio requirement of Council Policy 6-4; and 2) signage located within an Airport Influence Area shall conform to illumination requirements specified in Sections 23.02.905 and 23.04.250 of the San José Municipal Code, and shall otherwise seek to minimize the safety risk of bird strikes resulting from the attraction of birds to illuminated structures. During the meeting, a representative from Clear Channel stated they were in voluntary agreement with the billboard take down ratio as well as with adhering to the illumination requirements in City Council Policy 6-4, including minimizing the safety risk of bird strikes. After discussion, the City Council did not take action on the item and instead voted to return the item back to the Airport Commission for their input regarding the new information on the billboard take down ratio.

The Airport Commission held a special study session and special meeting on January 26, 2022 and reviewed the environmental report for the proposed two billboards on Airport property as well as other items related to the City’s billboard policy but outside the scope of the environmental report. The Commission ultimately passed four motions:

1. Recommend that the City Council adopt a resolution approving the Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan EIR (“Addendum to the EIR”) (5-2-2, Commissioners Smith and Gupta absent);

2. Recommend that the City Council not proceed with the two billboards at the Airport (5-1-3, Commissioners Smith, Bains, Gupta absent);

3. Recommend that the City Council re-evaluate Council Policy 6-4 and Title 23 of the San José Municipal Code in light of public opposition to billboards (5-1-3, Commissioners Smith, Bains, Gupta absent); and

4. Recommend that if the City Council approves the Addendum to the EIR and moves forward with the two billboards at the Airport, that the following be included: green power mitigation above and beyond San José Clean Energy; billboard illumination and

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operation times should be coordinated with Lick Observatory for both digital and traditional billboards; dark hours between midnight and 6 a.m.; that the City examine the RFP process for future billboards; that the Airport study multiple ways to generate unencumbered revenue beyond digital billboards; that the City enforce illegally constructed digital billboards as well as existing billboards that are blighted (5-1-3, Commissioners Smith, Bains, Gupta absent).

BACKGROUND

The proposed signs on Airport Boulevard are located within the Airport Influence Area as listed in Attachment A of Council Policy 6-4, and sit adjacent to the 101 freeway, across from the Airport’s fuel farm, and are more than 0.06 light candles away from any residential or commercial areas. The concessionaire would be responsible for all costs associated with the design, permitting, development, construction, and management of the electronic signs. The electronic signs must comply with all guidelines as outlined in Council Policy 6-4 and operate in conformance with the operational requirements for Programmable Electronic Signs as specified in the San José Municipal Code.

The proposed billboards have been part of a three-year public process, as summarized below:

• On September 25, 2018, the City Council approved City Council Policy 6-4, which provides the policy, regulations, and process for electronic signs. Council Policy 6-4 also identified locations throughout the City including four sites on Airport property in the “Airport Influence Area” that are environmentally cleared for additional commercial signage.
• On April 3, 2019, under the authority and direction of the City Council, the Sixth Amendment to the concessionaire (Clear Channel) Agreement was executed, authorizing a new digital program to the Airport, providing the Airport Director with authorization to add/modify advertising sites, and extending the Agreement to 2027. • On August 6, 2019, the City Council considered Council Policy Priority #4: Electronic Billboards – Approval of Scope and Timeline for Request for Proposals for Large Format Signage/Billboards on City-Owned Property. The Council memorandum for the item included the list of Airport sites and noted that these sites were environmentally cleared and excluded from the RFP; the memorandum also noted that the Airport intends to use its current concessionaire (Clear Channel) for its proposed outdoor electronic billboards.

The City Council voted to accept staff recommendations for the scope and timeline of the two Large Format Signage/Billboard RFP on City-owned property, including the August 2, 2019 memorandum from Vice Mayor Jones and Councilmembers Peralez and Arenas that any take-down proposal prioritizes existing billboards that are historically or currently blighted permitting lease conditions, and that staff provides clarification on a comprehensive timeline of the RFP process including issuance and award date.

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• On February 21, 2020, the Airport Director under the authority delegated to him by the City Council approved the Clear Channel billboard project for the development and operation of an electronic billboard under the guidelines outlined in Council Policy 6-4 • On February 25, 2021, during a Special Council meeting on the City Roadmap, the City Council voted to approve the memorandum from Peralez to reaffirm allowing electronic billboard to go forward on City-owned sites.
• July/August 2021 – A 30-day public comment period on the Addendum to the EIR for the two outdoor electronic billboards at the Airport was conducted. City staff exceeded legal requirements as pursuant to CEQA Guidelines Section 1564(c), “an addendum need not be circulated for public review.”
• August 9, 2021, the Airport Commission received a briefing on the Project Plan details and were invited to submit comments and questions as part of the environmental review process.
• August 11, 2021, a link to the Addendum to the EIR comment webpage was distributed to collect questions and concerns from the Airport Commission. The Commission also received links to/details on City Council Policy 6-4, the City Council meeting on September 25, 2018 (where City Council approved Policy 6-4), and the City Council meeting on August 6, 2019 (when City Council approved a memorandum that included language noting the Airport’s intent to use Clear Channel). • November 2, 2021, City staff responses to questions submitted during the Addendum to the EIR review period was posted to the City’s website and shared with the Airport Commission.
• November 8, 2021, the Airport Commission received a second briefing on the project details, including the City’s response to public comments on the Addendum to the EIR report. Although not required, City staff responded to public comments outside the scope of the environmental review. The Commission had additional non-EIR suggestions and voted 7-2 to reject the report.
• November 30, 2021, the City Council considered adoption of a resolution to approve the Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan EIR and conducted a public hearing regarding the Project Plan for two Outdoor Advertising Digital Billboard sites. The City Council discussed the November 24, 2021 memorandum from Mayor Liccardo, Vice Mayor Jones, and Councilmembers Peralez, Cohen and Foley, which recommended to not approve the EIR Addendum and directed the City Manager to conduct a Request for Proposals (RFP) process for two proposed outdoor advertising digital billboards that includes: 1) a requirement for the elimination of four existing billboards citywide for every one digital billboard erected, pursuant to the 4:1 ratio requirement of Council Policy 6-4; and 2) signage located within an Airport Influence Area shall conform to illumination requirements specified in Sections 23.02.905 and 23.04.250 of the San José Municipal Code, and shall otherwise seek to minimize the safety risk of bird strikes resulting from the attraction of birds to illuminated structures. During the meeting, a representative from Clear Channel stated they were in voluntary agreement with the billboard take down ratio as well as with adhering to the illumination requirements in City Council Policy 6-4, including

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minimizing the safety risk of bird strikes. After discussion, the City Council did not take action on the item and instead voted to return the item back to the Airport Commission for their input regarding the new information on the billboard take down ratio. The Council memorandum on this item dated November 15, 2021, is available at:
https://sanjose.legistar.com/View.ashx?M=F&ID=10051505&GUID=282F5BC5-573A- 4CF0-80A5-1C950F187615. The supplemental memorandum dated November 29, 2021, is available at:
https://sanjose.legistar.com/View.ashx?M=F&ID=10301410&GUID=EEC91D4B-622F- 4686-A323-F60D3473377E
• January 26, 2022, the Airport Commission held a Special Study Session and a Special Meeting to review the Addendum to the EIR and additional information related to the billboards that was not available at the November 8, 2021 meeting, but was outside the scope of the environmental review. The Commission voted to recommend that the City Council adopt a resolution approving the Addendum to the Amendment to the Norman Y.

Mineta San José International Airport Master Plan EIR (5-2). However, the Commission also voted to convey their opposition to digital billboards with two votes. They voted against proceeding with the two billboards at the Airport (5-1) and voted to request a re- evaluation of Council Policy 6-4 (5-1). They also had a fourth vote that if the City did proceed that they would recommend additional green power mitigation beyond San José Clean Energy, that the billboards go dark between midnight and 6:00 a.m. (at a minimum), and that the City should closely examine the RFP process for future billboards (5-1). Additional details on the motions and recommendation made by the Airport Commission are provided in the Commission Recommendation/Input section of this memorandum.

ANALYSIS

The following details the considerations of the Project Plan and the environmental review process:

Approvals

The process throughout the project has been reviewed and approved by the City Attorney’s Office. The City has followed the policies and procedures as set forth by the City Council for this project. In the August 6, 2019 Council memorandum, City staff stated that the two billboard sites were excluded from the proposed City RFP process outlined in the memorandum and that the Airport intended to use the current Concessionaire. The City Council delegated authority to the Director of Aviation to approve additional advertising site plans at the Airport. Clear Channel received this approval on February 21, 2020. The agreement with Clear Channel allows them to propose new advertising opportunities. The Airport has worked with the City Attorney’s Office to ensure that the City and Concessionaire followed the proper legal processes for this project.

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There is a long history of communication and collaboration on the terms and scope of the City’s relationship with this Concessionaire, including continued strong financial support to the Airport during the 2008 recession and the recent pandemic. These were both incidents of unprecedented decreases in passengers. The Airport regularly sought input and received City Council’s approval for all the amendments to the City’s agreement with the Concessionaire.

Billboard Takedowns

The proposed voluntary removal of eight billboards within the boundaries of the City of San José will follow the take down priorities outlined in Council Policy 6-4. The billboards to be removed will be from locations that are unsightly or incompatible with surrounding land uses. In contrast to those billboards being removed, the proposed billboards face the freeway and the Airport fuel farm (nonresidential), are in a location that already has similar electronic billboards nearby (just north of De La Cruz in Santa Clara), utilize automatic dimming technology to adjust the brightness of the sign relative to ambient light so that at no time shall a sign exceed a brightness level of 0.3 foot candle above ambient light, and will be turned off between midnight and 6:00 a.m. The removal of the eight billboards would be permanent.

Labor

Teamsters Local 853 supports the Project Plan for the two billboards at the Airport. This labor organization voiced support for the project as their members are residents of San José and asked for the City to consider their workers and families who will directly benefit from the jobs that this project will generate. A letter of support, dated November 23, 2021, was submitted to the City.

Industry Input

Miller Starr Regalia, representing Outfront Media, submitted a comment letter, dated August 17, 2021, on the Addendum to the EIR. Comments included that Clear Channel’s master concession agreement does not authorize the Project Plan and that Council Policy 6-4 requires the City to solicit proposals for the Project Plan. Glynn, Finely, Mortl, Hanlon and Friedenberg, LLP, representing Clear Channel, submitted a letter, dated December 28, 2021 to the Mayor and City Council, responding to Clear Channel’s stance and rebutting the objection.

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Trees

Clear Channel has agreed to follow the City’s tree replacement policy, which states that up to five new trees are to be planted for each native tree removed (depending on the diameter of the tree to be removed) and that up to four new trees are to be planted for each non-native tree removed. Trees impacted by the project would be either replaced on-site or off-site (but within San José) in accordance with the City’s Tree Replacement Policy.

Electricity

The electricity to be used for the billboards will come from San José Clean Energy, which is 90% carbon free. The remaining 10% is from unspecified sources from the grid, purchased through open-market transactions and may include additional carbon free sources. The Airport has plans to switch over to San José Clean Energy’s TotalGreen option, which is 100% renewable energy, within the term of this project.

Photosensitivity

At the Commission meeting on November 8, 2021, health concerns for people who are photosensitive were raised. City staff contacted Allison Nichol at the Epilepsy Foundation about this issue. Ms. Nichol worked for 20 years for the U.S. Department of Justice on disability rights. Ms. Nichol stated that there is no scientific evidence that LED lights as a light source creates issues for people who are photosensitive. She also stated that there are also no ADA issues. The issue for people who are photosensitive is when the lights are flashing, such as in the gaming and entertainment industry. Flashing and moving images are prohibited on billboards in San José.

The U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy has a website that discusses the “5 Common Myths about LED Street Lighting.” On this list they speak to the myth that LED streetlights are more harmful to humans and animals than other kinds of streetlights (rebutting it).

The International Telecommunication Union has produced guidelines for broadcasters to reduce the risk to people that are photosensitive. These recommendations include limits on five features: frequency of flashes, changes in luminance, area of flashes, color, and striped patterns.

The proposed billboards comply with these guidelines. The light output for the proposed billboards would be limited to 3% of capacity or 0.3 foot-candles. For reference, according to the reference guide on Light Poles Plus’s website (https://lightpolesplus.com/foot-candle-reference- guide/), a lighted walkway and parking garage are 2-10 foot candles bright.

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Dark Skies

When creating Council Policy 6-4, the City held conversations with many stakeholders to get their feedback and concerns, including with the Director of Lick Observatory. Based on these concerns and the guidelines published by the International Dark Sky Association, Council Policy 6-4 has requirements to protect the night skies including the following:
• Turning off billboards from midnight to 6:00 a.m.
• Tilting the signs towards the ground at 15 degrees and provide a rimmed edge along the top or utilize other alternative(s)
• Automatic dimming capabilities
• Restricting white/bright backgrounds and utilizing warmer colors • Restricts east facing signs in the Alum Rock Planning Area

The Project Plan also includes the following additional lighting control features:
• Additional efforts to minimize vertical and lateral light spillage are incorporated into the designs
• Side shielding to eliminate light spillage
• Top shielding to block nearly all light upwards towards the runways and planes • Illumination would be set at level to be similar or less than the moon. • Additional dimming controls would limit light spillage to the riparian zone, potential to lower power to 1% to limit lighting
• The conventional sign would use backlighting which reduces the brightness when compared with conventional billboard lighting.
• Automatic dimming using photoelectric sensors

During the creation of Council Policy 6-4, the public comments list the primary areas of concern from Lick Observatory as: shielding/directionality of light emission, timing of light emission, cumulative amount of light/white mix/dimming over time across all signs, and color spectrum of LEDs. As outlined above, these elements were included in the restrictions in Council Policy 6-4.

Additionally, in 2018 in a discussion between City staff and Lick Observatory staff, it was noted that the Airport sites were far enough away from Lick Observatory to be outside the discussed ‘area of influence.’ The environmental consultant calculated that the proposed billboards are 16 miles away from Lick Observatory and would have an illumination of 0.0000000003 foot- candles at this distance. The consultant also stated that between midnight and 6:00 a.m., no light would be emitted from the proposed billboards.

The International Dark Sky Association’s guideline document states that applying their guidelines “has the potential to result in no net increase or even a net reduction in light pollution.” Should the Airport billboard be approved, there would be a reduction in light pollution during the key hours of midnight to 6:00 a.m., as the proposed billboard will be required to go dark (all sides) and the removal of eight other billboards in the City would go dark (as they are being permanently removed).

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Federal Aviation Administration (FAA)

The proposed signs are in the Airport Influence Area and will conform to the illumination requirements as specified in the San José Municipal Code and meet all FAA criteria. The Concessionaire submitted all appropriate documentation to the FAA and received the FAA 7460 "Determinations of No Hazard" for both signs.

Airport Marketing

The Airport will receive 10% of the time on the digital billboards to promote San José International Airport, such as direct destinations and international routes. This advertising will be critical for helping the Airport earn back passengers as the country emerges from the pandemic. This type of advertising could help promote the many direct routes that the Airport has including direct flights to Hawaii, seven cities in Mexico, New York, Chicago, and Atlanta.

It will certainly be helpful when an airline launches new routes or relaunches old routes, such as a return to London. In order to keep these nonstop destinations, it is critical that passengers take advantage of these flights from San José instead of bypassing San José to go to other Bay Area airports.

Airport Revenues

The Project Plan for the outdoor electronic signs includes the greater of 55% of Gross Revenue or a MAG of $300,000 on the Northern location and $190,000 for the Southern location on Airport Boulevard for additional guaranteed annual revenue of $490,000 for both signs. This represents the minimum amount of revenue to the Airport. Over the past three-years, Clear Channel exceeded their MAG for their in-terminal advertising program by an average of 83 percent. If Clear Channel exceeded their MAG for the billboards by the same rate, this would represent total annual revenue of nearly $900,000 to the Airport.

The electronic billboard project by itself would be one of the highest paying concession programs at the Airport, ranking within the top five of the 16 concessionaires at the Airport if it were a stand-alone project. When all advertising is bundled together, which is often how it is sold, the advertising revenue to the Airport was the leading revenue generator. In FY21, Clear Channel brought in more revenue to the Airport than all retail and food and beverage concessionaires combined.

The revenue sharing of 55% of gross revenue represents an excellent negotiated deal for the City and Airport. When Clear Channel started the negotiations with the City, they wanted the revenue sharing to be between 30-40% for the billboards but had to agree to the higher amount because of the existing agreement. If the Airport was not able to leverage this existing agreement, the likely revenue sharing agreement would be significantly less. Staff requested information from other airports to measure what the industry standard is for revenue sharing on outdoor digital advertising. The New Orleans Airport and Victoria International Airport reported

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receiving 35% revenue sharing for their billboards, and Piedmont Triad International Airport (NC) reported a 37% revenue share.

The 55% revenue sharing for the Airport also far exceeded similar revenue sharing agreements in the Bay Area by Clear Channel:

Location Revenue Sharing
San José Airport 55%
San Carlos – Location 1 35%
San Carlos – Location 2 30%
Belmont 30%
Oakland 30%
South San Francisco 15%
Milpitas 10%
Alameda 10%

Over the remaining five-year term of the project, the billboards would generate a minimum of nearly $2.5 million. This is revenue that the Airport could certainly use, given that passenger traffic has been very slow to rebound. In 2021, San José fell to the third ranked Airport in the Bay Area by number of passengers and ranks near the bottom in terms of recovery of the 50 largest airports by percent of passengers compared to our 2019 passenger counts. The billboard revenue can be used to leverage matching grants or support our ADA enhancement projects. It is not money that would need to be collected from other operations (such as higher parking rates or charges to the airlines), nor is it money that would need to be cut from expenses by delaying projects or decreasing passenger services.

Environmental Review

Following the Airport Director’s approval of the Project Plan, the Concessionaire and the City followed the established process to install two electronic digital billboard structures on City- owned Airport sites as outlined in Council Policy 6-4. Clear Channel and the City went above and beyond in voluntarily conducting a public circulation and comment period for the Addendum to the EIR, which is not required under CEQA.

Although Council Policy 6-4 environmentally cleared the locations in the Airport Influence Area for additional commercial signage, paragraph 2 of the “Sign Approval Process,” requires development-specific environmental clearance under CEQA.

On April 28, 2020, City Council certified the Amendment to the Norman Y. Mineta San José International Airport Master Plan Final Environmental Impact Report (Airport Master Plan EIR) (File No. PP18-103) and approved the amended Master Plan, which provides a blueprint for the continued growth of the Airport through the year 2037.

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The proposed San José Airport Electronic Signs Project (the Project) was not included in the Airport Master Plan project and, therefore, represents a change to the project analyzed in the Airport Master Plan EIR. As a result, the City of San José, as CEQA Lead Agency, prepared an Initial Study/Addendum for the Project. Under CEQA Guidelines Section 15162(a), the purpose of the Initial Study/Addendum was to determine on the basis of substantial evidence, if the Project would result in one or more of the following outcomes:
(1) Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (2) Substantial changes occur with respect to the circumstances under which the project is undertaken, which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following:
• The project will have one or more significant effects not discussed in the previous EIR; or
• Significant effects previously examined will be substantially more severe than shown in the previous EIR; or
• Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project, but the project proponents decline to adopt the mitigation measure or alternative; or
• Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative.

The Initial Study/Addendum (July 2021) concluded that none of the above outcomes would occur if the Project were to be approved. In each of the CEQA subject areas, analysis concluded that the proposed sign project would result in either the “Same Impact as Approved Project” or a “New Less Than Significant Impact” from the project. These conclusions were reached for critical CEQA topic areas such as aesthetic, biological impacts, and transportation impacts. The project would further be subject to existing mitigation measures from the Airport Master Plan EIR. Therefore, these conclusions indicate that major revisions of the previous EIR due to new significant environmental effects, substantial increase in the severity of previously identified significant effects, or new information would not occur if the project were to be approved, and no subsequent EIR need be prepared. The EIR addendum and all relative documents have been reviewed by both Planning, Building and Code Enforcement (PBCE) and Airport departments.

Pursuant to CEQA Guidelines Section 1564(c), “an addendum need not be circulated for public review.” However, City staff exceeded legal requirements when PBCE reviewed the EIR addendum and posted a copy for public comment on July 26, 2021.

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CONCLUSION

Council Policy 6-4 states that a Site Development Permit is not required, and paragraph 2 of the same policy requires that the City follow the noticing requirements that would apply for a Site Development Permit. Consequently, PBCE cannot issue a Site Development Permit for signs in the Airport Influence Area. Therefore, a public hearing of the Project Plan at Council is the only available discretionary action for the required environmental clearance required under CEQA.

The Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan EIR concluded that the proposed sign project would result in either the “Same Impact as Approved Project” or a “New Less Than Significant Impact” from the project. The Airport Commission voted to recommend that the City Council adopt a resolution approving the Addendum to the EIR. Not approving the Addendum to the EIR would conflict with the findings of the CEQA process. Adoption of a resolution approving the Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan EIR (SCH# 2018102020), will allow the Project Plan to be constructed.

The two signs are located on a portion of Airport land with limited uses, would generate guaranteed revenue to the City in the amount of $490,000 per year, and would provide new advertising opportunities to promote new destinations, services and other initiatives at no cost to the Airport. These advertising opportunities are needed to drive awareness and remain competitive against two neighboring airports that are less than an hour’s drive from San José.

The Project Plan addresses two main concerns expressed by public commenters: 1) it decreases the number of billboards in San José (removing eight for the two being erected), and 2) it addresses light pollution during the key hours of midnight to 6AM (eight billboards will permanently go dark and the two proposed billboards are required to turn off at midnight).

Staff recommends that the City Council approve the Addendum to the Amendment to the Norman Y. Mineta San José International Airport Master Plan EIR and conduct a Public Hearing regarding the Project Plan as outlined in the recommendation section of this memorandum.

EVALUATION AND FOLLOW-UP

The Director of Aviation shall be responsible for the coordination of the Agreement and shall render overall supervision of its progress and performance.

CLIMATE SMART SAN JOSE

The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.

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PUBLIC OUTREACH

This memorandum will be posted on the City’s Council Agenda website for the February 15, 2022 Council Meeting. This item was also brought before the City Council on November 30, 2021.

The amendment to the Envision San José 2040 General Plan, Revise City Council Policy 6-4, and Update Sections 23.02.870 and 23.02.1310 of Title 23 (Sign Code) of the Municipal Code to allow signs on city-owned property, including billboards, programmable electronic signs, was coordinated with the Airport Land Use Commission. On June 27, 2018, the Airport Land Use Commission conducted a hearing and determined the project to be consistent with the Comprehensive Land Use Plan for San José International Airport. On August 22, 2018, a public hearing was held by the Planning Commission and on September 25, 2018, a public hearing was held by Council to discuss the subject.

The September 25, 2018 and August 6, 2019, Council Meetings regarding Council Policy 6-4 included details to the public on electronic billboards at the Airport.

A copy of the Addendum to the EIR was posted for public comment on July 26, 2021 and ended August 25, 2021. All questions, including those not related to the Addendum to the EIR were responded to and released on November 1, 2021.

Staff went to the Airport Commission on August 9, 2021 to provide an informational update on the project and to solicit public comments for the Addendum to the EIR, which was open to public comments. Staff returned to the Airport Commission on November 8, 2021 to report back to them on the outcome of the Addendum to the EIR responses to public comment and to answer any additional questions they had. The Airport Commission held a special study session and a special meeting on January 26, 2022 to review additional information that has become available since they last met. The outcome of this meeting is detailed below.

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office, Department of Planning, Building, and Code Enforcement, and the City Manager’s Budget Office.

COMMISSION RECOMMENDATION/INPUT

The Airport Commission is appointed by the City Council to provide advice to the Airport Director and City Council regarding the airport and aeronautical issues. The Airport Commission’s policy is to promote and protect air transportation to serve the public interest, particularly insofar as it relates to the Norman Y. Mineta San José International Airport. The

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primary responsibility of the Commission is to ensure the provision of public and private facilities and services adequate to serve the public need for air transportation, by an orderly and balanced growth of Airport and Airport activities.

The Project Plan was first presented to the Airport Commission on August 9, 2021 to brief them on the project and the Addendum to the EIR addendum that was currently taking public comments. As staff was actively soliciting input and comments from the public at this time, no action by the Airport Commission occurred at this meeting. Airport Commission requested an update on the project following the conclusion of the Addendum to the EIR process and the release of the responses to public comments.

On November 8, 2021, City staff returned to the Airport Commission to provide an update on this project and to recommend accepting the staff report on the Environmental Impact Report Addendum and the intent for the City Council to hold a public hearing. The Airport Commission voted (7-2) to reject the staff report and was against moving forward.

The City Council heard the item on November 30, 2021 and asked that it be referred back to the Airport Commission to give the Airport Commission more time to hear the new details about the project’s take down provisions and to receive a more comprehensive briefing.

The Airport Commission held a special study session and special meeting on January 26, 2022 to take up the proposed Airport digital billboards. During the extensive study session, the Airport Commission had an in-depth conversation with Airport staff and the environmental consultants on the issues related to the environmental report and billboard related items outside the scope of the environmental report. The discussion included things such as City’s policies and procedures on billboards, the business model and justification for the proposed billboards, the contract terms and related amendments with the Concessionaire, the RFP process, Council process for adopting Council Policy 6-4, the approval process for the proposed billboards, the take down provisions, light shielding and light issues, traffic, appropriate use of electricity from San José Clean Energy, environmental, health, Federal Aviation Administration approval, indemnification, concerns from a competing billboard company about the process that did not include them, and the potential for other billboards throughout San José.

After the study session concluded, the Airport Commission reconvened for a special commission meeting to vote on recommendations to Council. The Commission ultimately passed four motions to convey their recommendations.

The Airport Commission’s first recommendation to the City Council was to adopt a resolution approving the Addendum to the Amendment to the Master Plan Environmental Impact Report (5-2-2, Commissioners Smith and Gupta absent). The majority of Commissioners agreed that the environmental analysis was properly conducted by the staff and the environmental consultant and as such should be adopted.

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The next two votes were to convey the Commission’s opposition to digital billboards, in specific and in general. The Commission voted to recommend not proceeding with the two billboards at the Airport and voted to request that the City Council re-evaluate Council Policy 6-4 and Title 23 of the San José Municipal Code in light of public opposition to billboards in San José and San José’s Climate and Vision Zero policies. Both of these votes passed 5-1-3, Commissioners Smith, Bains, Gupta absent.

Finally, the Commission voted to provide several additional recommendations to the City Council. Related to the Airport billboards, the motion included the language that if the City proceeds with the digital billboard proposal then: green power mitigation above and beyond San José Clean Energy, billboard illumination and operation times should be coordinated with Lick Observatory for both digital and traditional billboards, dark hours between midnight and 6:00 a.m., minimum, and the City should closely examine the RFP process for future billboards. In addition, the motion included that the Airport should study multiple ways to generate unencumbered revenue beyond digital billboards (e.g., solar farms, property development, etc.) and that the City should be enforcing illegally constructed digital billboards (e.g., Highway 87, and 101/880) as well as those billboards that are blighted. This fourth motion passed 5-1-3, Commissioners Smith, Bains, Gupta absent 5-1.

CEQA

US 101 Electronic Signs Addendum, File No. ER21-015.

/s/
JOHN AITKEN, A.A.E.

Director of Aviation

For questions, please contact Matthew Kazmierczak, Manager of Strategy and Policy, at [email protected]
or (408) 392-3640.

San Jose City CouncilFebruary 15, 2022

San Jose City Council
February 15, 2022