Here's Text of Surfrider Foundation/LB Letter To City Hall re Beach Recycling...And LBReport.com Also Includes Personal Views of Surfirder Chair Robert Palmer

(Oct. 7, 2008) -- LBReport.com has further on tonight's (Oct. 7) scheduled City Council agenda item in which city management seeks approval to enter into an agreement with a private firm (Shoreline Media, LLC) to place "media capable" [carrying paid advertising or city messages] recyclable trash receptacles" on LB beaches, marinas, and esplanades (map below) under a revenue-sharing arrangement with the City.

In its agendizing memo, city management tells the Council and the public that "Aside from being self-sustaining, the proposed project will have a positive environmental impact along our shoreline . The program proposal has even garnered written endorsements from some prominent environmental advocacy groups prior to City approval of the concept . Public endorsers include...Surfrider Foundation - Long Beach Chapter."

Below is the text of the letter dated July 23, 2008 to the City of Long Beach on the letterhead of the Surfrider Foundation, Long Beach Chapter.

[begin text]

July 23, 2008

Honorable Mayor and City Council
City of Long Beach, California,

RE: Parks Recreation & Marine Recycling Program

The Surfrider Foundation, Long Beach Chapter is in full support of the City of Long Beach's current efforts to implement a city beach, shoreline recycling program. We look forward to continued work with the city to clean up our beaches and restore the shore in order to provide a beautiful recreation experience for residence and visitors alike.

Sincerely,

Robert Palmer
Chairman
Surfrider Foundation
Long Beach Chapter

The letter was provided to LBReport.com, at our request, by Mr. Palmer.

In a telephone conversation, Mr. Palmer also added the following...which he stressed (several times) are his personal views as a taxpayer, a resident and "someone who's been working on beach clean-ups for over ten years...even longer than Justin Rudd."

We typed his opinions as fast as he provided them; the text below conveys his views paraphrased from our rapidly typed notes.

[paraphrase] As someone who has been working on beach clean ups for eleven or twelve years now, and as someone who's been involved with an environmental organization, it really saddens me that when people ask me what they can do to recycle [beach trash], I have to tell them that the City of Long Beach doesn't have a recycling program at the beach.

I've researched the issue in depth. I know some people don't like the concept of advertising. That may be fine, but advertising pays for TV programs, magazines, outdoor advertising and more.

In this case, part of the outdoor advertising money would go into the City's coffers.

Some say they don't like the idea of another truck on the beach picking up trash. I'm told that the Conservation Corps (which operates at Colorado Lagoon) says they have a grant to fund alternative fuel vehicles...and those are the ones that'll pick up the recyclables at the beach and the profit from the recyclables will pay for the trucks. The Conservation Corps also funds youth programs in Long Beach that they fund from profits from the recyclables they collect at Colorado Lagoon.

Although the Marine Advisory Commission recommended a buy-out clause (paying Shoreline Media if the City isn't happy with the program), I'm told that the actual contract will be better for the City. If Shoreline Media doesn't meet certain parameters requested by the City, the bins automatically become property of the City at zero cost, so there's no need for a "buy-out" clause.

It seems to be a good thing. I have yet to see an argument that makes sense against this.

I think we need recycling at the beach. The City doesn't have the money so if we're going to have recycling this seems like a good program.

Larger bin
3 ft. wide x 4 ft. tall x 8 ft. long, holds (4) 55-gallon cans

Smaller bin
3 ft. wide x 4 ft. tall x 5 ft., 6" long and holds (2) 55-gallon cans

Exhibits from city management agendizing memo

The memo says the program will be self-sustaining, will have a positive environmental effect...and received the written endorsemens of the Ocean Conservancy, Ocean Conservation Society, Surfrider Foundation - LB Chapter, Heal the Bay, Santa Monica Baykeeper, Conservation Corps of Long Beach, City of Long Beach Office of Sustainability and Earth Resource Foundation before city management advanced the project.

City management says placement and types of the "Green Bins" (large and small sizes) will accept general refuse, as well as recyclables such as paper, plastic, bottles and aluminum...and Parks & Rec will decide where to place them, and what size to place, "based upon need and use patterns within the permitted areas" within areas indicated in green on the maps below:

Images from city management agendizing memo

City management says the bins were "designed to be seamlessly integrated into the City's current waste removal infrastructure, either as a replacement or to co-exist with the current trash receptacles."

In figures that management says were provided by the firm seeking the contract, projected revenue sharing for City Hall is estimated as follows "based upon an 80 percent advertising occupancy rate."

CY 09: $123,114 in City revenue;
CY 10: $401,995 in City revenue;
CY 11: $405,670 in City revenue;
CY 12: $443,974 in City revenue;
CY 13: $443,974 in City revenue.

And the visual messages wouldn't just be by commercial advertisers; City Hall would get a share of the message spaces. The private firm has agreed "to make available and maintain a panel on each of the B-Bins [smaller size bin] for City-sponsored promotional items for four months per calendar year at no cost to the City . In addition, the City shall receive advanced notice of any unused panels on any of the deployed A-Bins and BBins, and shall have the first right of refusal of the opportunity to post City-sponsored promotional items at its discretion."

Long time Belmont Shore resident (and one-time Belmont Shore Residents Ass'n president) Melinda Cotton has raised concerns and objections...and is pressing to have the item sent to a Council committee before commitments are made.

In an email to all Councilmembers (which she has allowed LBReport.com to publish as an opinion piece/open letter), Ms. Cotton writes that city management has "has chosen to ignore and overrule the decision of its own Marine Advisory Commission in bringing the item to the Council." She says the largest bins will be six feet long by three feet high and three feet deep "making pretty good advertising billboards along most of our currently advertising free beaches."

Ms. Cotton said members of LB's Marine Advisory Commission voiced concerns that in addition to advertising ("beach spam") there was no bid process, no request for proposals...and could provide another "large object for 'taggers' to draw on." She said several Commissioners sought but were denied a pilot program with a few bins to see how they work...and she added:

"No presentation or community meeting has been made to Belmont Shore residents...Peninsula residents did have a city presentation of the 'green bins'" and apparently didn't like what they saw because the Peninsula has opted out of the program. So the one-mile stretch of beach from Bayshore to the end of the Peninsula will be advertising free. Belmont Shore and other affected areas have been allowed no such option, if the Council approves the proposal we will be stuck with these advertising bins for five years."

LBReport.com provides below the text of the agendizing memo by Parks, Recreation & Marine Dir. Phil Hester describing the proposed program.

[begin text of memo by City of LB Parks, Rec & Marine Dir. Phil Hester]

Marine debris is a major threat to our Nation's coastal resources and to human health and safety along our shorelines. It is estimated that only five percent of this debris is ever collected or recycled. Federal, state, and local government entities have expressed concerns over these environmental issues and have initiated many programs intended to increase home and business recycling. The reason public beach recycling in the City of Long Beach (City) is not a part of these programs is simply because the cost of developing and maintaining an effective recycling program in these areas is prohibitive. In order to create a public beach recycling policy, it has become evident that an income-based self-sustaining program is required .

Shoreline Media, LLC, (Shoreline) was formed to increase environmental stewardship in California, through the establishment of municipal recycling programs, funded by the sale and operation of environmentally friendly outdoor media platforms . Its programs are 100 percent self-sustaining, through a combination of revenue from advertising on recyclable/trash receptacles (Green Bins) and processing of recyclables . Shoreline will deliver, install, and maintain the Green Bins in the impacted areas and share a significant portion of their gross advertising revenues with the City (see revenue projections below) .

Aside from being self-sustaining, the proposed project will have a positive environmental impact along our shoreline . The program proposal has even garnered written endorsements from some prominent environmental advocacy groups prior to City approval of the concept . Public endorsers include:

• Ocean Conservancy
• Ocean Conservation Society
• Surfrider Foundation - Long Beach Chapter
• Heal the Bay
• Santa Monica Baykeeper
• Conservation Corps of Long Beach
• City of Long Beach Office of Sustainability
• Earth Resource Foundation

The proposed project will add a new recycling program to the Tidelands areas, specifically, to the City's beaches, marinas, and esplanades, and will include the furnishing and maintenance of the Green Bins . The placement and types of Green Bins will be dictated by the Department of Parks, Recreation and Marine (PRM), and will be based upon need and use patterns within the permitted areas . The Green Bins have been designed to be seamlessly integrated into the City's current waste removal infrastructure, either as a replacement or to co-exist with the current trash receptacles . The scope of the program will be limited to the City's Tidelands areas (Attachments Al, A2, and A3) .

The Green Bins come in two sizes: a large size (A-Bin) and a small size (B-Bin) (Attachments B and C) . Both Green Bin sizes will accept general refuse, as well as recyclables, such as paper, plastic, bottles, and aluminum . All of the receptacles are separated for easy removal and disposal . Each Green Bin will incorporate separate receptacles for refuse and recyclables . Shoreline anticipates that one-third of the Green Bins will require replacement within two years and that this replacement cycle will remain constant over the length of service . Shoreline will be required to maintain a back stock of Green Bins greater than or equal to ten percent of the total number of deployed Green Bins. Shoreline will secure storage of the units at their sole cost within the city of Long Beach .

The Green Bins are designed to target "green" and potentially "green" consumers . A key objective of Shoreline is to pair eco-friendly and environmentally responsible advertising campaigns with its Green Bins . Shoreline has identified, or has working relationships with a growing number of large corporate brands and agencies, that intend to bridge the gap between the "green" consumer and their products . Shoreline's officers have extensive experience and current backgrounds in outdoor advertising (Attachment D).

PRM [Parks, Recreation & Marine] received administrative approval of this program, with no issue, from the California Coastal Commission on April 11, 2008. The following are major provisions of the proposed permit :

Green Bin Costs: Shoreline shall pay all costs associated with the furnishing and maintenance of the Green Bins . Maintenance shall be on an ongoing basis, as warranted, including, but not limited to, graffiti removal, weather damage, unit replacement, etc .

Graffiti Removal/Maintenance Reportinq: Shoreline shall be required to remove, replace, or repair any Green Bin due to graffiti within 48 hours of the report . Shoreline will maintain a toll free (800) number and a website, which will be posted on each Green Bin to receive reports of repair and/or maintenance requirements. The toll free number will have a live operator to receive calls 365 days per year . The operator will document the date and time of the reported issue and shall inform Shoreline on a daily basis of all calls received .

Permitted Areas: Beaches, marinas, and esplanades, as specified in Attachments All, A2, and A3.

Permitted Use: Furnishing and maintenance of media-capable Green Bins and the collection and processing of recyclables . Quantity and location shall be determined by PRM.

Term: Five years, through December 31, 2013.

Renewal Options: Two five-year renewal options at the discretion of the City Manager or his designee .

Minimum Rent: Shoreline shall either pay an annual minimum guaranteed amount of $750 per A-Bin and $500 per B-Bin for each year of the permit (approximately $76,000 per year), or a percentage of gross advertising sales, whichever is greater. However, in the initial year (calendar year 2009), the annual minimum rent shall be $375 per A-Bin and $250 per B-Bin.

Revenue Sharinq Percentages:
17% of gross advertising sales revenue from $0 to $1,000,000 ;
19% of gross advertising sales revenue from $1,000,000 to $2,000,000 ;
21 % of gross advertising sales revenue from $2,000,000 to $3,000,000 ;
23% of gross advertising sales revenue from $3,000,000 to $4,000,000 ;
25% of gross advertising sales revenue over $4,000,000 .

*Projected City Revenue from Revenue Sharing:
CY 09 : $123,114 in City revenue;
CY 10 : $401,995 in City revenue;
CY 11 : $405,670 in City revenue;
CY 12 : $443,974 in City revenue;
CY 13 : $443,974 in City revenue.
*Projected City revenue from revenue sharing amounts was provided by Shoreline and based upon an 80 percent advertising occupancy rate.

Recyclable Collection: Shoreline or its agents shall accept sole responsibility for the collection of recycled goods from the Green Bins . Service levels and liability shall be the sole responsibility of Shoreline or its agents, as defined by the City's Risk Manager . PRM has determined that additional truck trips (light "green" vehicles, aka alternative fuel vehicles) will be needed to pick up recycling ; however, the total number of truck trips may decrease because, due to the separation of refuse from recyclables, the trash may not need to be emptied as often . Shoreline shall partner with the Conservation Corps of Long Beach to collect recyclables from the Green Bins . Pickup schedules will be monitored on an ongoing basis to ensure proper disposal .

Refuse Collection: The City shall be solely responsible for the removal of refuse from the Green Bins .

City-Sponsored Advertising: Shoreline shall make available and maintain a panel on each of the B-Bins for City-sponsored promotional items for four months per calendar year at no cost to the City . In addition, the City shall receive advanced notice of any unused panels on any of the deployed A-Bins and BBins, and shall have the first right of refusal of the opportunity to post Citysponsored promotional items at its discretion . Shoreline shall install and maintain, at its sole expense, the City-sponsored promotional items ; however, the City shall pay the direct production costs for these items .

Advertising Content Oversight: PRM shall have oversight of all advertising content.

Insurance/Program Liability: Shoreline shall provide insurance coverage, as defined by the City's Risk Manager . Shoreline shall assume all fiscal and operational liability for the proposed program .

This matter was reviewed by Deputy City Attorney Gary J . Anderson on May 6, 2008 and August 25, 2008, and Budget Management Officer Victoria Bell on May 7, 2008 and August 25, 2008.

SUSTAINABILITY

To date, Long Beach's recycling efforts have given the City one of the highest waste diversion rates in the State. The City's 2006 waste diversion rate is 69 percent, up from 66 percent in 2005 . The proposed permit will augment the City's waste diversion efforts by adding a turnkey recycling program to the City's beaches, marinas, and esplanades, where presently, there is no means of recycling in these areas .

The proposed permit provides an opportunity to collect both trash and recyclable materials, resulting in cleaner beaches, marinas, and esplanades that are free from litter. The Green Bins, aside from being an aesthetic improvement over PRM's current trash receptacles in the permitted areas, will be manufactured using environmentally friendly materials, such as recycled aluminum, recycled polyethylene, and polypropylene to mitigate any potential adverse environmental footprint.

The Green Bins have a large capacity to contribute to a litter-free Long Beach . Each 55-gallon recycling receptacle (one per Green Bin) will have the capacity to hold approximately 150 12-ounce aluminum cans or 162 12-ounce plastic bottles. Shoreline estimates that it will collect approximately 2,247,167 CRV beverage containers annually, and estimates that 80 percent of these beverage containers will be plastic and that 20 percent will be aluminum . This equates to approximately 449,433 aluminum cans and 1,797,734 plastic bottles annually .

TIMING CONSIDERATIONS

City Council action is requested on October 7, 2008, in order to enable execution of the permit. In addition, the City Manager requests the authorization to enact the permit term earlier than the intended start date of January 1, 2009, contingent upon Shoreline's receipt of project materials earlier than anticipated .

FISCAL IMPACT

All revenues will accrue to the Tidelands Fund (TF) in the Department of Parks, Recreation and Marine (PR).

SUGGESTED ACTION :

Approve recommendation .

Respectfully submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MARINE

[among attachments]

Shoreline Company Dossier

Darren E . Kopp, President & CEO

Darren E . Kopp is the founder of Shoreline Media and leverages over fifteen years of experience in operations, marketing, sales strategy and new business development . In the past Mr . Kopp has successfully lead comprehensive marketing and sales programs at numerous Fortune 500 companies and governmental agencies, helping to streamline operations and generate positive revenue sales .

Prior to starting Shoreline Media, Mr . Kopp served as the Vice President and General Manager of Intelligent Media Corporation, an outdoor advertising company with various national brand advertisers and here he networked solid industry contacts . His work experience also includes the position of Vice President of Sales and Business Development for IDG & Associates . His extensive expertise in alternative advertising has been used to build new business models and innovative, secondary marketing channels for nationally marketed products .

Donald W. Kopp, Vice President & General Partner

Donald W. Kopp oversees all general operations for Shoreline Media and has had a proven track record of successful management expertise, serving as Vice President of Real Estate for Transamerica Corporation for thirty two years . Here he directed numerous operational and administrative activities within the organization and specialized in a highly efficient and proactive management style . Mr. Kopp brings to the table his expansive work experience covering the fields of business development, finance and budgeting, and project planning to his position as Vice President & General Partner of Shoreline Media.

Milton Dowse, Vice President of Sales

Milton R. Dowse is the President of One Source Communications and directly oversees the sales and marketing of Hello Inc management services, which provides communication services to the United States Postal Service, the Immigration and Naturalization Services and Ventura and Riverside County Sheriffs Departments as well as national corporate clients .

Mr. Dowse started his career in communications with Public Communications Services Inc., where he served as Vice President of Sales . The company started with eight employees and within five years grew to over 400 employees . His personal integrity and honesty shaped the Public Communications Services sales force into one of the best performing communications companies in corporate America.

The above individuals are investors and general partners of Shoreline Media. Additional private investors will be limited partners in the ongoing project.

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