Agenda Item: 14


CITY OF SANTA CLARITA
AGENDA REPORT

NEW BUSINESS

City Manager Approval:

__________________________

Item to be presented by:

Tom Cole


DATE:


March 25, 2014

SUBJECT:

AGREEMENT WITH EDWARDS OUTDOOR ADVERTISING, INC. FOR THE VOLUNTARY REMOVAL OF BILLBOARDS

DEPARTMENT:

Community Development

_____________________________________________________________________________

RECOMMENDED ACTION


City Council approve the Agreement for Voluntary Removal of Billboards (Agreement) with Edwards Outdoor Advertising, Inc.; determine that approval of the Agreement is exempt from California Environmental Quality Act (CEQA); and authorize the City Manager or his designee to implement the agreement, including the payment of up to $1.3 million to Edwards Outdoor Advertising, Inc.

BACKGROUND

The City has been working for a number of years to reduce the number of billboards within the City as a means to enchance community beautification. Negotiations began with Edwards Outdoor Advertising, Inc. (Edwards) to discuss the removal of their billboard structures within the City of Santa Clarita in 2007 and resumed again in early 2013. As a result of the negotiations, the attached Agreement has been agreed to by Edwards.

The Agreement includes a three-year phased removal period of the billboard structures owned by Edwards, whereby 19 boards will be removed in the first year, 15 boards will be removed the second year, and the remaining boards will be removed the third year. With the exception of the first year, the order in which the billboards are to be removed is at the discretion of Edwards, provided that all boards owned by Edwards located within the METRO right-of -way are 100% removed by year two. This was requested by Edwards as a practical matter related to their existing lease agreements with their customers.

In exchange for the removal of the billboards, the Agreement provides a compensation amount of up to $1.3 million. The exact payment amount will be determined by applying a multiplier to the 2013 gross income of Edwards as identified on their final 2013 tax return. Payments will be made on a per billboard, pro-rata basis over three years.

Under the Agreement, Edwards is responsible for all removal activities and associated costs, and is required to obtain all necessary permits and insurance required for such removals. Edwards is required to indemnify the City for any and all claims associated with the removals, although the extent of their indemnification is limited to the policy limits of their insurance (for covered claims) or the amount to be paid by the City under the Agreement (for claims not covered by insurance). Edwards also covenants that it will not attempt to reinstall any billboards once removed.

This project is exempt from the California Environmental Quality Act (CEQA) per Article 19, Section 15301: Existing Facilities, Class 1.  Class 1 exemptions include the minor alteration of existing private structures involving a negligible or no expansion of existing use, including demolition and removal of existing small structures.

ALTERNATIVE ACTIONS

Other actions as determined by City Council.

FISCAL IMPACT

The total cost of the Agreement will not exceed $1.3 million. While not anticipated, lawsuits that exceed the scope of Edwards’ indemnification obligations could result in a cost to the City, which cost cannot be quantified at this time. Payments will be made in monthly installments. Money will be appropriated in the annual budget process based upon the schedule provided in the Agreement.


ATTACHMENTS

Agreement for Voluntary Removal of Billboards
Exhibit A to Agreement for Voluntary Removal of Billboards






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