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