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Digital Billboards and Digital Banners <br />April 19, 2022 <br />Page 2 <br />Firm <br />City <br />Rank <br />Outfront Media, LLC <br />New York, NY <br />1 <br />Clear Channel Outdoor <br />Torrance, CA <br />2 <br />Lamar Advertising Company <br />Los Angeles, CA <br />3 <br />Based upon ranking and proposed advertising revenue -sharing with the City, staff <br />recommends that Outfront Media be awarded an agreement for the design, construction, <br />maintenance, and management of digital billboards and digital banners for a 25-year <br />period, with a ten-year extension option, for a potential total agreement term of 35 years <br />(Exhibit 2). <br />First -year revenue is estimated at $550,000 in bonus payments while the billboards and <br />banners are being constructed (a period of up to one year per site). Once operational, the <br />City will receive annual payments of 40 percent of the estimated net advertising revenue <br />of $830,304, or the minimum annual guarantee of $1,180,000, whichever is greater. <br />Revenues will be utilized to support various right-of-way programs and improvements. <br />The agreement includes the development of a comprehensive community outreach and <br />communication plan for each location. Outfront Media will be required to hold community <br />meetings for each location and to address all questions and concerns raised by the <br />community to the satisfaction of the City. <br />ENVIRONMENTAL IMPACT <br />The City will determine the level of environmental review required based on the initial <br />study performed by Outfront Media. Outfront Media will be responsible for the preparation, <br />at its own cost, of any required environmental review and documentation. <br />FISCAL IMPACT <br />Revenues from this Digital Billboards and Digital Banners Management agreement will <br />be generated as billboards and banners are installed and advertising revenue streams <br />are established. Revenue will be received and utilized for the sole purpose of maintaining <br />the public right-of-way in Fiscal Year 2022-23, and in perpetuity. Funds (revenue and <br />expenditure) will be budgeted and made available in the following accounts. <br />Fiscal <br />Accounting Unit <br />Fund <br />Accounting Unit, <br />Amount <br />Year <br />- Account # <br />Description <br />Account Description <br />Public Works Revenues, <br />2022-23 <br />01117002-57797 <br />General Fund <br />PWA Digital <br />$550,000 <br />Billboards/Banners <br />