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Public Works Agency <br />www.santa-ana.org/public-works <br />Item # 12 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />February 4, 2025 <br />TOPIC: Agreement Amendment for the Provision of Digital Billboards and Digital Banners <br />on City Owned Properties <br />AGENDA TITLE <br />First Amendment to Agreement with Outfront Media LLC for the Provision of Digital <br />Billboards and Digital Banners on City Owned Properties (No Fiscal Impact) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute the first amendment to an agreement with <br />Outfront Media LLC, for the provision of Digital Billboards and Digital Banners on City <br />owned properties amending the termination clause (Agreement No. A-2025-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />On April 19, 2022, City Council approved an agreement with Outfront Media, LLC <br />(Outfront) for the design and construction of digital billboards and -banners on City- <br />owned properties. The agreement allows Outfront to design, construct, maintain, and <br />operate digital billboards and banners on freeway adjacent City-ownedproperties, and <br />share advertising revenue for a 25-year period beginning on April 19, 2022, and ending <br />April 18, 2047, with an option to extend for a period of ten-years. <br />To ensure timely installation of the digital billboards, the agreement includes a <br />termination clause that allows the City to terminate the agreement if Outfont fails to <br />construct and operate at least one digital billboard within three years of agreement <br />execution. While staff has been working with Outfront to identify appropriate locations <br />for digital billboards and obtain the necessary permits from CalTrans for construction, <br />no such approvals have been obtained and no billboards have been constructed. Staff <br />continues to work diligently with Outfront and have identified a site and strategy for <br />obtaining regulatory approvals such that a revenue generating billboard can be installed <br />within the next two years. <br />Staff recommends approval of the the proposed amendment (Exhibit 1) which modifies <br />the termination clause to extend the time period from three to five years, effectively <br />providing two additional years for Outfront to install the first revenue-generating <br />billboard.