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P I L E D

September 29, 2009 09 OCT - I PM M '3 0

TO: Vice Mayor, Ignacio De La Fuente, President Brunner and M embers ofthe CED Com mittee

FRO M: Council Mem ber Rebecca KaplanRe: CED Comm ittee 'Resolution Authorizing the City Administrator to Enter into a Billboard RelocationAgreement with Clear Channel Outdoor, Inc. ("CCO"): 1) Allowing CCO to: (A)Construct a New Billboard (with two facings) on East Bay Municipal UtiUty District(EBMU D) La nd E ast of the Bay Bridge Toll Plaza; and (B) Reco nstruct an E xistingBillboard (with one facing)on E BM UD L and East of the Bay Bridge Toll Plaza, inExchange for Clear Channel 's Agreement to Remove and Waive i ts Rights toCompensation, Including All Real Property and Personal Property Interests , forThirty Three Billboards at Various Locations, and Make a One-Time Payment ofFour Hundred Thousand Dollars ($400,000) to the City Plus Additional AnnualPayments in an Amount and For a Period to be Determined .

S U M M A R Y U P D A T EThis report discusses a proposal to authorize the City Administrator to negotiate andexecute on behalf of the City a Billboard Relocation Agreem ent w ith C lear ChannelOutdoor Inc., a Delaware corporation ("Clear Chann el" ) regarding the specific sitesidentified in the title of the report above .The Agreement will result in the removal thirty three billboards throughout variousOakland n eighborhoods in exchange for the two billboards, one new and one existing,with freeway visibility.In addition to the billboard exchange the city will receive a one time permitting fee of$400,000 for the construction of the new billboard and a yet to be determined annualpercentage of the total lease amount from EBMUD/Clear Channel.In addition to the billboard exch ange. Clear Channefw ill pay the City $400 ,000. and ayet to be determined annual payment from EBMUD/Clear Channel to the City for thedate of the agreementBecause billboards are regulated under state law allowing only a limited number, whichare monitored by C altrans, this proposal would be exempt fromCEQA review

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F I S C A L I M P A C TThe proposed Billboard Agreement will have a positive fiscal impact as a result of theone time $40 0,000 paym ent to the City for the construction of the new billboards, inaddition to an ongoing benefit from the annual payment in an amount yet to bedetermined.The billboard removal will not result in any direct cost impacts because Clear Channel iswaiving its rights to compensation including all real property and persona propertyinterests for the 16 billboards specified in the request.UPDA TE ON KEY ISSUES AND IMPA CTSBil lboard RemovalThe Agreement will result in the removal of 33 (totaling 4,116 square feet of advertisingspace) billboards throughout various O akland neighborhoods in exchange for three newbillboard facings (totaling 2,016 square feet of advertising space), two new and oneexisting, with freeway visibility.None of the 33 billboards identified for removal as part of this proposed agreement werepreviously required to be removed under other amortization requirem ents.This agreement calls for 2,016 square feet of new billboards in return for removal of4,116 square feet of existing billboard s. The new billboards that are being appro ved aretraditional bulletin boards (non-LED ). The roughly two to one ratio of billboard squarefootage removed/relocated, in effect results in a cumulative reduction of ambient lightcreated by these billboards by 50%.RECOMMENDATIONS1) Adopt the resolution

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A p p r o \ ^ ^ 5 ' ^ q A a p J W R I t

J ^ " ^ OAKLAND CITY COUNCIL , ,^ , ,^^^\^^ o^*"^ ?V^v-^^ RESOLUTION No. C.M.S.

0 " " ^ Introduced by Councilmember

RESOL UTION AUT HOR IZING THE CITY ADMINISTRATOR TO ENTER INTO AB I L L B OA R D R E L OC A T I ON A G R E E ME N T W I T H C L E A R C H A N N E L OU T D OOR ,INC. ( "CCO ") : 1) ALLOW ING CCO T O: (A) CON STRUCT A NEW BILLBOARD(WITH TW O FAC INGS) ON EAST BAY MUNICIPAL UTILITY D ISTRICT (EBMUD)LAND EAST O F THE BAY BRIDGE TO LL PLAZA ; AND (B) RECO NSTR UCT ANEXISTING BILLBO ARD (W ITH ONE FACING)ON EBMUD LAND EAST OF T HEBAY BRIDG E TOL L PLAZA, IN EXCHANGE FO R CLEAR CHA NNEL 'SA G R E E M E N T T O R E MO V E A ND W A I V E I T S R I G H T S T O C OM P E N S A T I ON ,I N C L U D IN G A L L R E A L P R OP E R T Y A ND P ER S ON A L P R O P E R T Y I N T E R E S T S ,FOR THIRTY THREE BILLBOARDS AT VARIOUS LOCATIONS, AND MAKE AONE-TIME PAYM ENT OF FOUR HUNDRED THOUSAND DO LLARS ($400,000) TOTHE CITY PLUS ADDITIONAL ANNUAL PAYMENTS IN AN AMOUNT AND FOR AP E R I OD T O B E D E T E R MI N E D .

WHEREAS, removal of a number of billboards at various locations throughout the Cityis consistent with the C ity's objective to remove billboard signage througho ut Oakland toenhance the City's aesthetic attributes; andWHEREAS, Clear Channel would waive their rights to compensation, including all realproperty and personal property interests, thereby eliminating the various billboards at no cost to

the City; andW H ER E A S, all the proposed billboards will be removed by C lear Channel at its solecost and expense; andWHEREAS, the proposed billboard relocation agreement would permit Clear Channel toconstruct one new billboard of 1,344 square feet of advertising space on EBMUD land andreconstruct one existing billboard with 672 square feet of advertising space; andW H ER E A S, C lear Channel would remove at least thirty three billboards totaUng at least4,116 square feet from various locations around the City of Oakland, resulting in a net decrease

of sign area in the City; andWHEREAS, the proposed billboard relocation agreement complies with the existingCity regulations that permit relocated and wholly reconstructed advertising signs pursuant to abillboard relocation agreement; now, therefore be itR ES O LV ED : TKat the City Council authorizes the City Administrator to enter into abillboard relocation agreement with Clear Channel Outdoor, Inc. ("CCQ"): (1) allowing CCO toremove and waive its rights to compensation, including all real property and personal propertyinterests, for a number of billboards at various locations, as designated in Exhibit A to thisResolution, in exchange for: (A) construction of a new billboard with 1,344 square feet of

advertising space on EBMUD land near the Bay Bridge Toll Plaza; and (B) reconstruct an396378 1

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existing billboard with 672 square feet of advertising space on EBMUD land near the BayBridge Toll Plaza; and be itFU RT HE R RE SO LV ED : That the City Administrator or her designee is authorized tocomplete all the required negotiations regarding the terms of, and to execute, a billboardrelocation agreement with Clear Channel in accordance with the intent of this resolution, andincluding other conditions and enforcement mechanisms as will be recommended by the CityAttorney; and be itFURTHER RESOLVED: That the City Attorney shall approve the billboard relocationagreement as to form and legality.

IN COU NCIL, OAK LAND , CALIFORNIA, , 2008P AS S ED BY THE F OLL OW ING VOTE:AYES - BROOKS, BRUNNER, CHANG, KERNIGHAN, NADEL, QUAN, REID, and PRESIDENT DE LAFUENTEN O E S -A B S E N T -A B S T E N T I O N -

ATTEST: LaTonda SimmonsCity Clerk and Clerk of the Councilof the City of Oakland, California

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