25F - AGMT - OUTDOOR ADVERTISING SRVS

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Agreement with All Vision November 18, 2014 Page 4 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 4 City Financial Stability, Objective No. 3 (achieve a structurally balanced budget with appropriate reserve levels); Goal No. 6 Community Facilities & Infrastructure, Objective No. 1 (establish and maintain a Community Investment Plan for all City assets); and Goal No. 3 Economic Development, Objective No. 4 (leverage private investment that results in tax base expansion and job creation citywide). FISCAL IMPACT All Vision's consulting services, including preparation of the Outdoor Advertising Strategic Plan and its associated components, come at no cost to the City. Should the City pursue the digital billboards and /or transit shelters components, All Vision would collect percentages of revenues from advertising licenses. Digital 8iilboards The agreement with All Vision for outdoor advertising management services comes at no additional cost to the City. Based on preliminary staff analysis of the All Vision proposal, the licensing of current bus shelters, and the development of several new signage installation opportunities citywide would generate potential revenues to the City. As proposed, the development model guarantees a minimum $200,000 annually per two-sided digital billboard or 60% of revenues from advertising licenses on digital billboards after the five -year cost recovery period ends. During the five -year cost recovery period, All Vision guarantees the City a minimum $100,000 annually per two -sided digital billboard. Transit Shelters In addition, the Outdoor Advertising Strategic Plan would assist the City in identifying a franchisee that would guarantee a minimum amount and revenue allocation program for transit shelters citywide. If the City adopts All Vision's proposed Strategic Plan's transit shelter advertising components, All Vision would collect 30% of any revenues from advertising in excess of $95 per year for the first five years of the program's implementation. Combined, the digital billboards and bus shelters revenue could exceed one million dollars annually, depending on the ultimate build -out of bus shelters and signage installations throughout Santa Ana. Revenues received from these two components will be deposited into Outdoor Advertising revenue account (01116002- 50055). APPROVED AS TO FUNDS AND ACCOUNTS: vv .O Karen Haluza Interim Executive Director Planning and Building Agency AP:rb M ;Reports \SteB Reports for CCNIlvision RFCA 111814 Exhibit: 1. Agreement T 1\h mz -- Francisco Gutierrez Executive Director Finance & Management Services Agency i 25F -4