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tv   [untitled]    May 10, 2013 12:30am-1:01am PDT

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like supervisor farrell i support the airports efforts to reduce the aesthetics. i want to say i'm looking at page 4 7s of the la report which has the chart of the 57 gross revenues. i think mr. roses is reporting to the last year of the gross revenues and the year before the 2011 where the gross revenues are lower and we're reaching a down turn and he we're back up to the level and i wonder if you
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can explain the trend is we're increasing the revenue and whichever is higher. i'm sorry. >> to be the best benefit for the city by a what you explain this again >> i should point out that the difficulty for the country were boom years for us we had the fastest growing airports in the world because of the expletive airfa airfare. so we weren't effected the same way as everyone else in the downturn. but we will see a 11 off of the traffic 2013 vs. 2012 we haven't
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seen a zero increase but the markets are not being opened up and no imply aircraft. so for that reason the competitive air traffic is not going to grow >> i think ms. newman talked about the new digital advertising. do you know how many clear channels you'll use that will use multiple advertiseers in one
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place >> it still has to go through the committee and so they wouldn't approval every one of those. has the clear up channel considers other places that will be determined but the fact that a lot of advertising was reflected from their bids >> but in looking at the 28 other airports it looks like a number of them - i'm trying to remember the page 56 - the advertising was through making and quite a few of the were percentage of growths including - i'm trying to think - lax and a number of the bigger ones could i let us know why we're
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different from the other ones who made the revenue? >> some of them - part of the reasons is companies tend to move telephone number on to pay percentage of rent but the minimal guarantee and rent is not going to want to be too aggressive and get locked into paying rent above their revenues they want to protect against that they'll bid lower on the making knowing their have to spend less on the revenues as they decrease over time.
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>> mr. chairman mr. mortgaging has mentioned at least twice that he would never had received a (1) 000-0000 minimal guarantee had he included the percentage of gross there's no shred of evidence to prove that. we don't know what the minimal guarantee would have been. and furthermore supervisors they continue to submit a lower percent. supervisors if that were true let's assume it's true think
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about it mr. mortgaging ton has awarded thousands of leases and including the lazys you've approved in every single instance he has as mr. martin now saying i purposely did that to get lower annual guarantees? i don't believe so. and he will talk about the as a matter of fact, is as every other airport in the country has done including j.f.k. and including dallas they've done
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that with a specific reason and with respect to the advertising locations ms. newman has pointed out a digital advertising and, in fact, supervisor has pointed out in those last two years clear channel has grossed over $14 million and they're going to make a lot of money on this contract so it's no wonder they bid $14 million. this is not in the best interest of the city. we're in the highest of economical the and economical times are getting better judges >> every other airport in the country there's a valid reason for having a gross or anything guarantee whichever is higher.
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>> so in terms of the digital advertising you can crank more adds but it's hard to say whichever one is going to be better. but to make sure i want to be clear there's nothing that says this would produce more money than a cardboard sign >> we don't have any documentation on that. the fact that there's a lower number of tvrdz locations which we don't disagree with doesn't main that the anything guarantee wouldn't have been just as much
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>> mr. chairman? >> and on others point i understand and agree with your point those two last year's the percentage h that kicked in was about $9.3 million at the same time in time it was down to $6 million but i find it compelling that the most of the airports that mr. martin was to downsize it's not going to last like it is today. >> supervisor farrell that's exactly why we're relating you contain both. we totally agree with you. the anything guarantee always
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protects on the downside. the city's general fund sdpoo doesn't protect >> in the upside. >> okay. mr. martin. >> this is a unique lease our retail lease has 12 percent of gross and 60 to 1 hundred percent retailers pay of the revenues but there's no question in his mind that a rationale person would be considered making only. if welize 10 percent or 20 percent of our traffic we've protected ourselves against that but there's a big risk for clear
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channel. it's a big risky feel we have to do given our current environment >> at this point we'll open to public comment. i have a number of them. i'll call them out. please feel free to come up (calling names) >> morning that you i'm mary dignity i'm the general manager for the clear channel. over the last several years i've had the joy of the working with the city. clear channel is excited to continue our supportive of local businesses.
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we continue to value them as partners. we continually use local carpenters and contractors. we are committed to the hiring of local folks. clear channel appreciates, respects and wholeheartedly likes our arrangement with the city. there's no way any vendor would every over a making of 10 million it is not a good business decision. if this was to go back and be required to be amassing percentage you're going to receive a lower making there's no way you would get
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$10 million. and it still is aggressive. i also want to commit on the dillal aspect that if you're removing 8 static locations to create a more pleasing environment to put one unit up i don't necessarily have 40 clients on those lcds. there are more sustainable and more appealing. it's the demand of our business and it's technology. thank you. >> thank you. next speaker. >> good morning. i want like to share with you our experience as the airport concession of the 1 hundred and 60 airs of the airports.
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all of us have making and this works to the bin their protected indeed on the down side but they also share in the upside and it comes from an upswing in the economy or over the long term of working together with argue airport partners. we will xheerg some of them using advances in technology. and it's indeed producing results. we're xhooert from static to the digital do some of our best located signs we have revenue changes. we can't anticipate today what the current technology allows for revenue that's why we thought that $10 million making
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was too high we can't participate with the technology by not having a participant who pace rent the airport is depriving it's from the pay. we are happy to participate in the new solicitation that will make the city benefit in the future. thank you >> thank you very much. thank you. next speaker >> good morning. i'm michael i'm with local 6 and i just want to say we have had a great relationship with clear channel with a very responsible employer that who exercise for the workers for local higher local businesses and see that the
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$10 million on amassing which was certainly advertised equally so we hope you would approve this contract and allow it to go forward with a wonderful employer here in the city. thank you >> thank you very much thank you. next speaker please. >> i'm past president of san francisco beautiful. for 15 million visitors who enrich our city beautiful should begin at sf organizations instead we're about to ramp up
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the attorneys with flashy signs. san francisco beautiful urges the board to reject the clear channel before us. we have voted antibillboard. let's overturn the foregone conclusion that traffic hubs are overly commercial listed places. especially, since tourism is our number one revenue producer they don't look at billboards. one .3 percent of the general
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revenues measured another waybill board review is not 1/3rd the rental car raise. they obscure a art renovation. we're trying to create the unique accepts for our visitor and this is take i didn't to our city. since 9/11 this is from clear channels website this will be in addition to the sf o scenery. since they feel that our visitors - if allowed to proceed clear channel would have thirty
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or 40 more billboards and columns even the lunge of car sells and perhapses later - going from a whisper to a scream or the airport commission seems ambient to this visually cluster although at some tolerable level. we look forward to working with sf o to enhance other revenues. we will -- it was only 11 years ago that sf o partnered with the folks. this appears to be a good time
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for sf o to depart from this billboard business >> thank you. next speaker. >> you know the city and landscape and. >> pardon me? >> i think you need the microphone and. >> you want to play a video? >> can he ask sf tv cover that and i know this is a different
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advertising company and a different venue but this is how we see san franciscans. can we see the video. you know the city and the landscape to allow me to introduce you to the san francisco. it's and i fluent and young, in fact, b 3 percent of the population it 18 to 24 and it's a city where folks are exposed to billboard advertising. so much so that it reaches 93 percent our media reaches 93 of the bay area population on a monthly basis. second only to new york it is a unique and densely packed market
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where our outdoor is open to the sports context and their 2 had the million attendees. and how much of those cable cars pull in a staggering 9.2 million riders. public transit is the best way for folks to travel and our media helps with this >> 90 percent of san francisco residents live within two blocks of a light rail. do you know that subways are an average station dwell time is 20 minutes each day. it's unavailable in the east bay
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from downtown oakland to u s berkeley we deliver it like no other company can. any questions >> okay. thank you very much. i think you were making an advertisement too >> come on up next speaker. (calling names) >> yes all these veterans would like to speak on behalf of the clear channel initiative, however, because of time i'm speaking on behalf of them. >> good morning i've a rudy i'm
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a commissioner for the american leniently and executive director ever west bay a non-profit that provides economical services to filipino children and their families in the greater san francisco area. clear exchange has a track record of supporting community organizations. when times are hard many of the filipino veterans i work with on a daily basis in our non-profit can't afford the advertisements in radio or television so we're looking at promotion. clear channel provides attorneys not only in the airport but for
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billboards and makes it easy for the minority to help with the san francisco under served communities. and moreover, clear channel makes it easier for us in our languages. the economical impact speaks for itself in its action and it would be a major set back for us who need the communications. please approve the clear channel resolution with remedies they're good folks >> thank you and i want to thank all the veterans who are
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here. thank you. next speaker please. >> i'm dan kelly with the construction. we worked at the airport with clear channel out there and they know the drill. with the heightened security they've worked real hard the contractors the protection they know the entity and we work with very close with them and they hire union contractors so myself and on behalf of all the sub contractors we appreciate what clear kwhaenl has been. again, it's a security thing again clear channel is top of the market we put our support
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behind clear channel. i have only 3 other speaker cards (calling names). >> good morning. >> good morning supervisors i'm acting as the translator for the next 3 speakers.
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>> i'll just sum it up. mr. lee is 76-year-old and he's a resident of the valley and one of the bigger challenges is does not know what's going on in the community and the billboard he used the transportation and the buzz system and he's hopping the bilingual services will be increased for those who can't speak english. therefrom i'm asking you the supervisors of that great city
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to support the clear channels resolution. thank you very much >> thank you thank you. next speaker please. >> good morning she