DRAFT CITY COUNCIW! UNFINISHED BUSINES~

Transcription

1 DRAFT CITY COUNCIW! UNFINISHED BUSINES~ OCTOBER 17, 2016 SUBJECT: PREPARED BY: [SELECTION OF TEAM FOR THE PILOT DIGITAL BILLBOARD AT 8775 SUNSET BOULEVARD COMMUNITY DEVELOPMENT D~TMENT (Stephanie DeWolfe, AICP, Direct. (John Keho, AICP, Assistant Direct ~ (Bianca Siegl, Long Range and Mobility\Planning Manager~ (Sarah Lejeune, Contract Senior Planner) <\L--- STATEMENT ON THE SUBJECT: rrhe City Council will consider ratification of the top-scoring team from a competitive bid process to partner with the City for the Pilot Digital Billboard on the City owned property of 8775 Sunset Boulevard. 1 ;RECOMMENDATION: I 1.!confirm selection of Orange Barrel Media!Tom Wiscombe Architecture/MoCA as the highest ranked team in the competitive bid process and direct staff to commence contract negotiations for financial compensation, design, construction, and operation of the Pilot Digital Billboard at 8775 Sunset. 2. Direct staff to evaluate expanding the project to identify an additional site or sites that could facilitate installation of additional pilot digital sign projects from the four finalist teams, including evaluating potential costs and revised revenue projections related to multiple pilot signs, and report back to the City Council with options for consideration. EXECUTIVE SUMMARY The City is currently engaged in the Sunset Boulevard Off-Site Signage Study to update the 1996 Sunset Specific Plan to revise the City's off-site advertising policies and reestablish the role of Sunset Boulevard as a premier site for creativity in outdoor advertising. As part of the study the City began a formal RFP process in October 2015 to seek a team to partner with the City on a Pilot Off-Site Digital Sign (The Sunset Spectacular) for the City-owned billboard located on the City-owned parking lot at 8775 Sunset Boulevard. Creating a pilot digital project allows the City to evaluate how new media is changing the long standing operations of outdoor advertising, as well as developing a Page 1of13 AGENDA ITEM 4.8.

2 competitive process with a focus on creativity that serves as an example to the private sector interests who seek to upgrade their off-site advertising product. The purpose of the pilot digital sign is to provide a well-managed digital display, to provide the City and the community the opportunity to evaluate and test state of the art advertising technology along the Sunset Strip. This report updates the Council on the RFP process, and recommends Orange Barrel Media!Tom Wiscombe Architecture as the high scoring team. In a rigorous multi-step competitive selection process, a review panel of City staff, and design and advertising professionals ranked this team the highest in meeting the criteria required by the RFP. This report requests that the Council ratify the recommendation for the team comprised of Orange Barrel Media, Tom Wiscombe Architecture, MoCA and Walter P. Moore to be the City's partner in realizing this exciting project. As currently envisioned, staff will return to Council for approval of the contract with the recommended team in late 2016, and again in mid-2017 for approval of the final design. This item was brought before the City Council on September 19 and tabled due to a typographical error in the staff report. The typing error in the second round point spread chart did not reflect the scoring system used by the panel, and does not impact the ranking and scores of the finalist teams. This report provides the correct points assigned to the second round criteria as well as the requested information about the RFP guidelines for the finalist scoring process. BACKGROUND I ANALYSIS:!Previous Council Direction In the fall of 2014, the Council began considering the replacement of the City-owned Billboard at 8775 Sunset Boulevard as a pilot digital billboard project as one of the main three components of the Sunset Boulevard Off-Site Signage Study. On October 6, 2015, the City Council approved release of a Request for Proposals (RFP) seeking concept proposals for a team who would work closely with the City to replace the existing static billboard at 8775 Sunset Boulevard with a creative pilot digital billboard for a limited period of time. The sign is intended to be a temporary project, and is located at the street frontage of an existing City owned parking lot. While the project may include a public gathering space at the base of the sign along the street frontage, the project should not prohibit future opportunities for the remainder of the City-owned site. Prior to issuing the RFP in fall 2015, the City Council directed staff to include a point spread to reflect priorities for a balance of both urban design and revenue to the City. Page 2of13

3 On August 15, 2016 the Council approved the contract for CEQA analysis of the Pilot Digital Billboard project on City-owned property at 8775 Sunset Boulevard, but chose to table the principal discussion about the recommended design and operations team until September 19, 2016 so staff could address additional Council Member questions regarding the project, process and recommendation rationale. This report contains the requested additional information. Vision for the Pilot Digital Sign: Request for Proposals (RFP) The pilot digital sign is an opportunity to set the tone for future projects can contribute to the anticipated Sunset Boulevard outdoor advertising district envisioned as a result of the Off-Site Signage Study. The Pilot project runs concurrently with the Sunset Boulevard Off-Site Signage Study. The RFP describes a vision for the City-owned project that supports the creative brand of the City of West Hollywood, and resonates with the tradition of the Sunset Strip as a destination that fosters excitement and innovation. The Pilot Digital Billboard project is expected to be a unique installation, providing cutting edge digital technology that elevates the quality and programming of the outdoor advertising signs along the Strip. The RFP set out parameters for a pilot project to incorporate century technology and media and allow for testing of policies that support the vision of innovative programming and responsible, cutting edge design as an example for future signage along the Sunset Strip. The project replaces the existing City-owned billboard, with a custom designed project that integrates both static and digital advertising, allows for arts programming, and provides a temporary, well-managed digital display. A critical component of promoting creativity for Sunset Strip offsite signage is acknowledging the evolving role of digital technology in outdoor advertising. The pilot project should demonstrate how updated signs could enhance the unique Sunset Strip experience. The RFP defines this project as a "Spectacular", an advertising industry term for a nonstandard creative display that incorporates the latest digital technologies. The final project will exemplify the balance of materials, technology, media, programming, and design, to show how billboards can contribute to the Strip while being good neighbors. Project Team Selection Process Staff and the consultant team have followed a comprehensive process to identify a vision for a pilot project, with review criteria that support the City's concept for innovation and financial partnership in this project. The RFP detailed a rigorous multistep selection process based on the method used for the West Hollywood Park Phase 11, featuring review and screening of submittals to choose finalists, public presentations Page 3of13

4 of design concepts, and interviews with a professional panel. STEP ONE: Request for Proposals (RFP), Issued October 6, The RFP encouraged the proposals to include creative elements, such as specialized lighting, interactive media programming, curved, multi-planar forms, integral extensions, or 3-D projections, and innovative materials and textures. The project requirements included strict limitations to avoid negative impacts, minimizing brightness, refresh rates and other specifics. Each proposal was also required to provide a detailed programming and revenue plan for at least the first year of the five-year contract period. The pilot project has a five year term, with an option to extend for an additional five years. The RFP identified a vision with supporting review criteria, outlining a three-part panel review process that assigned a point spread to the RFP criteria according to stated priorities. STEP TWO: Initial review, Submittal Screening, Convened February 2, Nine teams submitted proposals: Branded Cities Network/Panasonic/AKA Architecture + Design JC Decaux/Zaha Hadid Project Management Ltd./Buro Happold I-Kahan Media Interstate Outdoor Advertising/Sussman Prejza/IBA Farshid Shooshani/David Denton/Aerva lnc./hologram USA /Steven Weinglass/ ACE Outfront/Gensler/MAK Orange Barrel Media/Tom Wiscombe Architecture/MoCA/ Walter P. Moore Tait Towers Inc. Total Outdoor/A+A Design A professional panel representing the fields of outdoor advertising, architecture, planning and urban design, and including City staff from Community Development, Finance, Arts and Economic Development, Public Works, and Innovations and Strategic Initiatives, reviewed the written applications and selected four exceptional finalist teams using the criteria from the RFP as the principal evaluation tool. Initial Screening Review: Criteria Understanding of work scope/ completeness, accuracy and quality of 5 proposal Creativity and innovative approach to performing project, including the 30 selection and curating of proposed programming Professional skills and credentials 30 0 Related experience of the Applicant, Applicant's employees and consultants to be assigned to the project. 0 References (within the past five years) and demonstrated ability of the Applicant to successfully undertake and complete the project Possible Points Page 4of13

5 Economic value to the City 30 Team composed of varied range of disciplines 5 The panel selected the following four finalist teams to make public presentations and participate in the interview process. JCDecaux /Zaha Hadid Project Management Ltd./ Buro hapold Orange Barrel Media/Tom Wiscombe Architecture/MoCA/Walter P. Moore Outfront Media/Gensler/MAK Tait Towers Inc. While the finalist proposals were exciting and noteworthy, none fully met all criteria outlined in the RFP. The panel provided the applicants with written comments and questions to be answered in the interview process. All of the finalists chose to revise their proposals prior to the presentations and interviews. STEP THREE: Public Presentations: Finalists, May 18, 2016 and Interviews, May 19, The finalists gave public presentations of their revised proposals at a publicly noticed meeting in the West Hollywood Council Chambers. The City mailed invitations to property owners and residents within 1,000 feet of the property, as well as to stakeholders who had previously indicated interest in the Sunset Off-Site Signage Study. In response to the public presentations, the City received four public comment cards and three speaker comments in support of the Outfront Media/Gensler project. Staff received one phone call requesting prevention of glare on adjacent properties. The competition also received attention from local media, citing the City's innovative approach and highlighting the high caliber and renown of the applicants. As outlined in the RFP, each finalist team was also interviewed by the thirteen member selection pane and evaluated based on the following guidelines from the RFP: Initial proposal assessment score Approach to performing the project - implementation timeline, operations, and sales Financial and programming strategy Demonstrated professional skills and credentials of the overall team and its individual members, including related experience and references Demonstrated ability of the team to successfully undertake and complete the Project The RFP notes that additional materials may be requested from the finalists, including, visuals, and the panel may independently verify any of the information in the proposal. The review criteria for the final round reflected the key RFP criteria, focusing on urban design and programming priorities as follows: Page 5of13

6 Finalist Review: Criteria Possible Points Responsiveness to review panel comments 20 Creativity and innovative approach to for revised design including 25 programming Demonstrated ability to meet the City's intent for timeline and 25 operations Delivers and optimal financial and programming strategy to meet the 25 City's intent Team composed of varied range of disciplines 5 Following the interviews, the panel requested additional information from all of the final four teams. Staff conveyed the information from follow-up discussions to the full selection panel at a second meeting, resulting in a robust discussion regarding the merits of each project prior to final scoring. The panel discussed each of the teams, evaluating their approach to the design process, and operational strategy, their experience in piloting partnerships between art and advertising, and considering their ability to evolve the presented concepts through design development and refinements resulting from public input, engineering factors, public safety, and construction details. Final scores were determined by combining the first and second round of points for each team, for a total of 200 possible points. These rankings reflect each team's ability to address the criteria from the RFP, emphasizing the importance of a team who would best provide a project that piloted the City's future vision for Sunset Boulevard. Finalist Proposals The City was extremely pleased that the project attracted such high caliber of design talent and interdisciplinary collaboration that resulted in concepts with an impressive range of ideas. Each of the chosen finalists showed innovation and creativity exceeding expectations in one or more categories. All of the finalists proposed a preference for a 10 year contract term, citing the importance of recouping the value of the initial investment as a reason for the longer term. Attachment 1 provides a comparison summary of the four finalists including revenue projections. The revenue projections that are shown in this report are for a 10 year period, because they provide the most comparable projections across the proposals, as some of the 5 year proposal terms varied. It should also be noted that the City considered all of the financial proposals to be preliminary and that the final financial terms would be negotiated. The numbers that are shown are meant to show how the top proposals ranked in comparison to each other in terms of proposed revenues. Attachment 2 provides images of the four final presentations. The following describes the finalist projects in their final ranking, including the final score. 1. Orange Barrel Media and Tom Wiscombe Architecture with MoCA and Walter P. Moore Engineers Page 6of13

7 "The Belltower" is a 72 foot tall open air, three sided structure that incorporates a digital and a static screen as well as projected media, and a space at ground level for pedestrians to interact with the signage programming. The sign includes dedicated areas for arts programming on the interior and exterior, as well as a public plaza surrounding the sign. Panelists noted that this project responded most fully to the vision and intent of the pilot project, exploring the intersection of innovative technology, unique media programming capabilities including commercial and public art, and pedestrian engagement, as well as suggesting the integration of digital media with architectural forms. Panelists supported the innovative, experimental thinking behind the proposal. The media partner is a firm that specializes in custom advertising installations, and the designer is a respected emerging Los Angeles architect. Total Projected Minimum Guarantee over 10 years: $9, 744, JCDecaux and Zaha Hadid Project Management Ltd. with Buro Happold Engineering, Levin-Morris Architects, and Mia Lehrer + Associates 156/200 "The Prism" is an 83 foot tall organically curved structure, evoking a plant form with curved billboard surfaces, one digital screen facing east and one static advertising surface facing west. The project was designed by the late Pritzker Prize winning, internationally renowned architect Zaha Hadid just prior to her death. The elegant, eye-catching proposal includes the curved sign structure situated in a public plaza along the frontage of Sunset Boulevard which features multiple curving elements, including a small pavilion structure allowing for interactive media and a lighting program by designer Jason Bruges. The components of the plaza work with the sculptural billboard to create a dynamic urban design experience. The panel commented that the project provides an iconic sculptural form and recognition of the potential for the site as a public place, but does not embrace the potential for unique programming, a priority of the pilot project RFP. Concerns about the relatively lower rate of financial return offered by the team were expressed. Total Projected Minimum Guarantee over 10 years: $7,000, Outfront Media and Gensler with MAK Center for Art and Architecture 149/200 "Now Playing: Sunset" provides multiple separate billboard structures ranging from 16.5 feet to 28 feet high, grouped around a public plaza that allows for interactive media, arts and advertising programming. As the viewer proceeds down Sunset, the separate sign faces appear to re-arrange themselves into a single plane. Panelists expressed concerns about the organizing principles, number of disparate elements, and the bright lights at eye level, while appreciating the pedestrian qualities and focus on place-making. Total Projected Minimum Guarantee over 10 years: $16,600, Tait Towers Inc. 147/200 A 90 foot high rotating, multi-sectional, illuminated digital sign that becomes a moving sculptural form that can be programmed remotely with art and media for multiple visual juxtapositions. The kinetic sign faces would inspire custom- Page 7of13

8 designed advertising content. Panelists were very much intrigued by the technology of the sign and its multiple image opportunities, but concerned about the placement, potential for glare, relatively lesser degree of pedestrian experience, and sense that the project design did not reflect the unique qualities of Sunset Boulevard. Total Projected Minimum Guarantee over 10 years: $9,500,000 The panel was tasked with recommending only one of these highly qualified teams to complete the pilot project and operate the sign. As is apparent from the scoring, it was a close competition, and each team provided elements that reflected the intent of the Pilot Project and would enhance the Sunset Strip. Each finalist team had widely different concepts and design or programming details that elevated the discussion, expanding the idea about what a billboard can be, while bringing perspectives that included kinetic signage, creative programming, viewer participation via social media, and site design for a multi-use public space as anticipated by the Sunset Boulevard Specific Plan. Recommended Team: Orange Barrel Media, Tom Wiscombe Architecture, MoCA, Walter P. Moore Engineers The highest scoring team was Orange Barrel Media with Tom Wiscombe Architects and MoCA. This team combines uniquely qualified talents to respond to the City's vision. 1. Orange Barrel Media specializes in one-of-a-kind outdoor advertising projects that engage the viewer in surprising ways, focusing exclusively on urban largeformat projects. Their innovative work in Boston with the Art on the Marquee, exemplifies the type of innovative arts based programming that the City hopes to achieve. Orange Barrel Media has a track record of working closely with local arts organizations to develop programming packages that highlight the arts so as to enhance the value of a project while bringing exciting new arts concepts outside the walls of the museum and gallery, and into the public realm. 2. Tom Wiscombe Architecture has worked on many innovative projects that meld sculpture and architecture. Panel members were impressed with his work as project architect on the complex Akron Ohio art museum designed by the internationally known firm Coop Himmelb(l)au. Now with his own firm, the Tom Wiscombe aesthetic is recognized regionally as part of the LA tradition of contemporary architecture, uniquely inspired by the diverse architectural history of Los Angeles. Members of the panel noted the synergy with the firm's concurrent project, the Main Museum of Los Angeles Art, which combines sculptural architectural form and adaptive reuse. 3. MoCA will act as a curator and arts liaison to allow for a mix of the work of both emerging and established artists to be represented on the sign. MoCA's long Page 8 of 13

9 standing role in contemporary art in the Los Angeles region will ensure both visibility and quality for the arts programming. 4. Walter P. Moore provides depth of experience in innovative structural engineering. The principal on the project, Greg Otto, has a reputation for enhancing innovative design with state of the art structural engineering. In addition, the team includes Imaginary Forces, who are known for their engaging advertising campaigns using contemporary media, including outdoor displays in Times Square and the Mad Men title sequence. The proposed concept design creates a site that catalyzes an innovative future for the Sunset Strip to once again be a visual destination that honors the creative media of the moment, while anticipating the future. The panelist discussion noted that this team addressed the RFP criteria with the following important blend of place-making design and innovative, feasible operations: Designing a unique project that responds to the qualities and character of the Sunset Strip and could not be replicated elsewhere. Integrating digital media and architectural form, with a unique layering of technology, custom advertising content, with a track record of creating an integrated platform for public art programming. Providing new ideas as an example for future innovative outdoor media installations that reflect City of West Hollywood's broad vision for the Sunset Strip. Providing the opportunity for public space at a key pedestrian oriented location along the Sunset Strip. Allowing the public to occupy the space inside the sign as part of the public plaza, providing a unique pedestrian experience. Providing a potential strong financial return to the City. While the final financial terms of the deal will be negotiated, the Orange Barrel proposal describes a competitive financial return. For a ten year term the estimated minimum guaranteed revenue to the City was $9,744,297, which ranked second for greatest financial return among the four finalists. Staff respectfully brings this recommended team before the Council to ratify the result of the extensive and careful review process. Next Steps Per the Council's direction, Staff will conduct contract negotiations with the winning team, refining the financial compensation package, and negotiating the appropriate balance of assets and revenue. The financial projections and designs noted in this staff Page 9of13

10 report are based on concepts only, and likely to change as details are negotiated. If negotiations are unsuccessful, the City may choose to commence discussions with the second ranked team. Pursuant to the California Environmental Quality Act (CEQA), the City is required to conduct environmental analysis on the concept design prior to taking formal action on the project (such as approving the contract with the project team). As potential impacts for all of the proposals are similar, the CEQA document will address the potential impacts applicable to any of the finalist concepts. Concurrently, the City will enter into contract negotiations with the selected team to define the terms of the final design, construction, operations, and revenue structure for the Pilot Digital Sign. Once the CEQA evaluation process and contract negotiations are complete, the selected team will finalize the design. Final design refinement will include opportunities for more community input at a neighborhood meeting The operations and parameters of the concept design provide the information necessary to conduct CEQA analysis for the sign. It is anticipated that the detailed design specifications may evolve slightly as the project moves from concept to a finall design for a built structure. Public safety staff will be involved in the design development of the project to ensure that it does not present a hazard. Review of the final design and programming will include public involvement through neighborhood and stakeholder meetings, and public hearings at the Planning and the Arts and Cultural Affairs Commissions. The project will be presented to the City Council for final approval. Staff estimates the public review process of the final design to take place in mid to late Analysis of Additional Sites Due to the exemplary proposals submitted in response to the City's RFP, the Council may wish to consider the possibility of installing pilot digital signs in more than one location. This would allow for the potential expansion of the program to include more than one pilot digital project. Based on the approved Sunset Boulevard Specific Plan, the current thinking for the Sunset Boulevard Off-Site Signage Study is that the Holloway Triangle area could accommodate multiple creative digital signs due to its locale as a pedestrian oriented junction. While there are other sites on Sunset that could be considered, only the Holloway Triangle site is owned by the City at this time. The draft project description for the CEQA document for the overall Sunset Off-Site Signage Study anticipates several signs in this area and staff will evaluate the advisability of multiple digital signs in this central node of high activity. Staff will also evaluate options for partnerships with private property owners to implement one or more of the concept proposals from the four finalist teams. The evaluation will consider costs and revenues associated with multiple projects. Page 10of13

11 ALTERNATIVES: As all of the finalist projects were strong, and the rankings were very close, if the Council wishes to modify the selection process, staff has provided options for the Council to consider: 1) Change the parameters of the RFP criteria to reflect different Council priorities and request staff to re-convene the review panel to re-score the finalist teams based on the revised priorities. This alternative allows the Council to choose to reconsider their initial priorities by adjusting the point spreads to reflect different priorities. The review panel would reconvene to evaluate the finalists in light of the revised scoring system. 2) Conduct an additional public interview process for the finalist teams with City Council as final arbiter. The Council may choose to interview top-ranked close scoring finalists in a public meeting which may or may not include revised priorities to make the final selection. This alternative allows the Council to interview the finalists in a public forum and make the final choice among close scoring teams based on that process. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: ifhis item is consistent with the Primary Strategic Goal(s) (PSG) and/or Ongoing Strategic Program(s) (OSP) of: OSP-1: Adaptability to Future Change. OSP-3: Promote Economic Development while Maintaining Business Vitality & Diversity. In addition, this item is compliant with the following goal(s) of the West Hollywood General Plan: LU-15: Maintain Sunset Boulevard as a regional, national, and international destination for entertainment, and the primary economic engine of the City. LU-16: Maximize the iconic urban design value and visual creativity of signage in West Hollywood. I Page 11of13

12 EVALUATION PROCESSES: rrhe Long Range & Mobility Planning Division will carefully track the timeline, expenses, and quality of the submittals of preferred vendor. ] ENVIRONMENTAL SUSTAINABILITY AND HEAL TH: lfhe implementation of the Spectacular as a result of this RFP will be evaluated for environmental impacts pursuant to the California Environmental Quality Act (CEQA). COMMUNITY ENGAGEMENT: The City mailed invitations to attend the April 2016 public presentations by the four finalist teams and the September 19, 2016 Council meeting to property owners within 1,000 feet of the property, as well as to stakeholders who had previously indicated interest in the Sunset Off-Site Signage Study. The competition received attention from local media, citing the City's innovative approach to billboards, and highlighting the high caliber and renown of the applicants. Review of the final design and programming will include public involvement through neighborhood and stakeholder meetings, and public hearings at the Planning and the Arts and Cultural Affairs Commissions. The project will be presented to the City Council for final approval. Staff estimates the public review process of the final design to take place in mid to late ] OFFICE OF PRIMARY RESPONSIBILITY: COMMUNITY DEVELOPMENT DEPARTMENT I LONG RANGE & MOBILITY PLANNING DIVISION FISCAL IMPACT: There is no fiscal impact at this time. Based on Orange Barrel Media's proposal the City would receive $9, 744,297 in minimum guaranteed revenue over 10 years. However, this number should be considered an estimate for comparison purposes, as the final revenue terms will be subject to negotiation. While Orange Barrel's proposal did not have the highest compensation package it was on the high-end of the other proposals, and reflects a feasible rate of return based on the submitted materials. Costs associated with construction management are typically estimated between 10-15% of construction costs. Staff anticipates that the future cost to the City for construction management and owner representation services will be in the range of $650,000 to $850,000 but will have a better understanding of the costs upon completion of contract negotiation with the design/builder for the project. With the assistance of the owner's representative for preconstruction services, staff will issue an RFP for Page 12of13

13 construction management and support services upon approval by City Council of the contract with the selected team. ATTACHMENTS: Attachment 1: Finalist Comparison Chart with Revenue Projections Attachment 2: Pilot Digital Sign - Images of Finalist Proposals Page 13of13