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Breakdown of the All Vision's Proposed Outdoor Advertising Services Agreement: • The RFP and the staff report calls the agreement a "consulting and management services" agreement. • The title of the agreement document is actually "Outdoor Advertising Services Agreement. • The "service" portion of the agreement comes at no charge to the city during the 1 -year evaluation period. (But there is a catch — all costs will be charged back to the city later.) • AV's service to the city includes providing a Strategic Plan covering the following: 1. An analysis of sign development opportunities based on development feasibility and revenue potential (to the city) 2. Evaluation of current and potential value of signs located on City property best (suited) for revenue generation; 3. Current market research and competitive analysis; 4. Analysis of a potential new overlay zone and ordinance for private development of digital billboards; 5. Analysis and recommendations for the strategic placement of new transit shelter furniture w/ advertising components and incorporate unique designs for place - making and community -oriented design; and, 6. Evaluation of bundling opportunities for development of different types of outdoor advertising. • AV to build, license, and cover all costs —all AV costs will then be reimbursed to AV within first 5 years of the agreement for city -controlled properties. (In other words, AV will be first in line to recover its costs and to receive its shares before the city does. Why would the City be interested in taking on the risk and absorbing or financing a consultant's costs?) • AV to pay city $100K/year/digital sign (2 displays) for the first 5 years while AV recovers all of its costs, increased to $200K/year after 5 years. • Section 3.5. AV to be paid 30% of revenues above the rate of $95/shelter/month for transit shelter agreement secured as part of this service or "bundled" service. • Sections 2.4 & 3.3. AV gets exclusivity as part of this agreement. City can't permit anyone else for off-site sign uses. • Section 4.3 & 4.4. City to pay AV 30% of revenues through other forms of approvals (e.g. development agreements done as part of private property). 30% payment runs the entire course of such DA term, extended term, etc ... or for 30 years) l • Section 4.5 —AV can be a developer of digital signs. In such case, the revenue share will be negotiated with the City. (This provision along with the entire agreement conflicts with the RFP. The RFP's preamble states that only non -operators are qualified to bid. However, this entire agreement contemplates terms for 30 -year agreements with All Vision. Clearly, conflicts with the term of the RFP.) • Section 5.1 (Key Provision) — If City approves of AV's Strategic Plan, and such plans contains identified one or more sign locations, then the City SHALL enter into a Site Agreement for each site. (This is the Trojan horse in the agreement.)