City Council Agenda Report
Meeting Date: December 5, 2023
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Daniel S. Wall, P.E., Director of Public Works Subject
Digital Billboard Development Agreements with Clear Channel Outdoors, LLC Recommendation
A. Find that the ordinances are not subject to CEQA because the adoption of these ordinances are not a “project” pursuant to CEQA Guidelines Section 15302, because the proposed development and conversion of static billboards to digital billboards contemplates only replacement or reconstruction of existing facilities at the sites having substantially the same size, purpose, and capacity;
B. Introduce and conduct first reading of Ordinance No. 1296 approving Digital Billboard Development Agreement No. CCO-01 for Assessor Parcel Numbers 5192-025-900 and 5192- 025-902 between the City of Vernon and Clear Channel Outdoor, LLC; C. Introduce and conduct first reading of Ordinance No. 1297 approving Digital Billboard Development Agreement No. CCO-02 for Assessor Parcel Number 6308-016-054 between the City of Vernon and Clear Channel Outdoor, LLC;
D. Introduce and conduct first reading of Ordinance No. 1298 approving Digital Billboard Development Agreement No. CCO-03 for Assessor Parcel Number 5192-019-801; and E. Direct staff to schedule second reading and adoption of Ordinance Nos. 1296, 1297, and 1298 for the January 16, 2024, Regular City Council meeting.
Background
Clear Channel Outdoor, LLC (CCO) wishes to convert existing static billboards that it owns at three locations in the City of Vernon into digital billboards. Municipal Code Section 17.96.020 permits the installation, construction, modification, or replacement of any outdoor advertising structure in the General Industry (I) Zone and all overlay zones, except for the Housing Overlay Zone, subject to the approval of a Development Agreement between the City and applicant, with appropriate standards and terms to be negotiated with the City. Municipal Code Section
17.84.060 requires a public hearing and adoption of development agreements by ordinance.
These ordinances do not reflect laws of the City and are therefore uncodified.
CCO and City Staff have negotiated Digital Billboard Development Agreements to be applied to each of the three locations where CCO will make the conversion from static to digital billboards.
The static billboards being replaced are at the following locations corresponding to the ordinance numbers as indicated on the following table:
Ordinance
No.
Location Billboard
Faces
1296 Eastside of Downey Rd 480 feet North of Bandini Blvd 2 1297 Westside of Santa Fe Ave 120 feet North of 55th St 2 1298 Northside of Washington Blvd 0.2 miles East of Industrial Wy 1 Development Agreement terms :
• A signing bonus payable to the City of $17,000 per billboard face for a total of $85,000 to be used for the installation, maintenance and operation of a digital sign at City Hall. • Agreement duration of 20-years, with a possible 10-year extension. • Development fees payable to the City of $10,000 per year per digital billboard face for years 1-10, totaling $50,000 per year for five digital faces. • Development fees payable to the City of $12,500 per year per digital billboard face for years 11-20, totaling $62,500 per year for five digital faces. • Development fees payable to the City of $15,000 per year per digital billboard face for years 21-30, totaling $75,000 per year for five digital faces. • City will have access to use of digital billboards for announcements on a space available basis.
• Prohibited uses – CCO will not use the digital billboards to advertise tobacco, marijuana/cannabis, adult entertainment businesses, obscene matter or any matter that is currently prohibited by the City.
• As part of the Atlantic Bridge Project the City has placed $34,405 into an escrow account as compensation to CCO for the removal of a billboard on Atlantic north of District to allow for the widening of Atlantic.
The ordinances were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City.
Fiscal Impact
The conversion of the five billboard faces will result in General Fund net revenue of $100,595 in the first year, followed by revenues of $50,000 per year in years 2 through 10, followed by revenues of $62,500 per year for years 11 through 20, followed by revenues of $75,000 per year for years 21 through 30; for a grand total of $1,925,595 in revenue to the General Fund over the life of the agreements.
Attachments
1. Ordinance No. 1296
2. Ordinance No. 1297
3. Ordinance No. 1298
4. Notice of Public Hearing