Financial Performance and Budget Committee
TO: FINANCIAL PERFORMANCE AND BUDGET DATE: MARCH 11, 2022
COMMITTEE MEMBERS
FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARDS: ALL
DEPARTMENT
SUBJECT: RECEIVE AND FILE AN UPDATE ON REQUEST FOR PROPOSALS NO. 2127 FOR A CITYWIDE OUTDOOR DIGITAL MEDIA SIGNAGE PROGRAM AND DIRECT STAFF TO ISSUE TWO SEPARATE REQUESTS FOR PROPOSALS FOR DIGITAL MEDIA SIGNAGE PROGRAMS ISSUE:
Receive and file an update on Request for Proposals No. 2127 for a Citywide Outdoor Digital Media Signage Program and direct staff to issue two separate requests for proposals for Digital Media Signage Programs.
RECOMMENDATIONS:
That the Financial Performance and Budget Committee:
Receive and file an update on Request for Proposal No. 2127 for a Citywide Outdoor Digital Media Signage Program; and Direct staff to issue separate request for proposals for:
A Digital Media Signage Program specific to City-owned land abutting freeways, and arterial roadway rights-of-way; and A separate Digital Media Signage Program specific to City-owned pedestrian/bike rights-of-way, building/structures (such as parking garages, community centers, etc.), and/or other City-owned property near other nodes or corridors of activities (such as passenger rail corridors, etc.).
BACKGROUND:
On July 8, 2020, at the direction of the Financial Performance and Budget Committee (Committee), staff identified revenue generating opportunities including the potential placement of off-site advertising signs on City-owned properties along freeways and on arterial rights-of-way. Staff was directed to return to the Committee with comprehensive proposals received through a formal Request for Proposal (RFP) process seeking a firm to develop, construct, operate and maintain digital media signage on City-owned properties and arterial rights-of-way.
Following direction from the Committee, on November 3, 2020, staff from the Community & Economic Development Department (CEDD) issued Request for Proposals No. 2127 (RFP 2127), seeking a firm to develop, construct, operate and maintain digital media signage on City-owned properties and/or arterial rights-of-way.
On December 22, 2020, staff received proposals from:
Lamar Advertising Company (Lamar) of Baton Rouge, Louisiana; and Outfront Media (Outfront) of New York, New York
Neither proposal was responsive to RFP 2127 and the scope of work required. The Outfront proposal did not include any scope for the City arterial rights-of-way, and the Lamar proposal did not provide gateway, neighborhood specific, or aesthetically pleasing sign designs. In September 2021, staff issued an amendment to RFP 2127 for clarification and additional information from the shortlisted respondents of the original RFP 2127 issued on November 3, 2020 (Lamar and Outfront). The scope of work for Amended RFP No. 2127 required a Citywide Outdoor Digital Media Signage Program (Program) to include: 1) City-owned land abutting freeways; 2) arterial roadway rights-of-way; 3) pedestrian/bike rights-of-way 4); City-owned building/structures (such as parking garages, community centers, etc.); and/or 5) other City-owned property near other nodes or corridors of activities (such as passenger rail corridors, etc.).
DISCUSSION:
As clarified in Amended RFP No. 2127, the goal of the Citywide Outdoor Digital Media Signage Program (Program), among other things, was to generate revenue for the City, reinforce the City brand, promote the City’s community events, provide public service announcements, add value to the City’s urban landscape and image, and stimulate economic investment by supporting the local business community and other organizations. The locations identified included:
Table 1 – City Identified Locations
As part of Amended RFP No. 2127, staff offered several potential locations along freeways, on City-owned sites, and on arterial rights-of-way.
The RFP also specified that new billboard signs could include conventional, single or double-sided, digital or static off-site advertising signs, which could be located along State Route 60, Interstate 215 and State Route 91 (provided that the location is eligible for declassification as a Classified Landscaped Freeway by Caltrans). The Amended RFP No. 2127 allowed the responding firms to retain sub-consultants, if necessary, to provide all of the requested services. Both Lamar and Outfront were encouraged to perform their own feasibility analysis of any particular City-owned site and the requisite regulatory approvals associated therewith for the use of said City site for a digital sign(s). Both respondents were also required to provide a project pro-forma, in concise detail, to include the anticipated annual payments to the City.
Responses to Amended RFP No. 2127 were due November 15, 2021. Only Lamar submitted a proposal. The matrix below provides a summary of their proposal, including anticipated revenue generation. It should be noted that staff considers all financial proposals to be preliminary and subject to further negotiation prior to City Council review and approval.
Table 2 – Lamar Proposal Breakdown
Freeway Signs
4 Arterial Signs
7 Total Signs
11 City Advertisement Time
10% of the available time to spread over each operational day Term
(30) Year Agreement
1 Time Upfront Bonus Payment
$1,559,340
Revenue Share
25%
Minimum Guarantee over 10 Years
$6,359,340
Table 3 – Lamar’s Proposed Freeway LED Digital Signs Locations Locations
Size
Requirements
91 FWY at Marketplace
14’x48’ (two sided)
*Landscape Declassification or Caltrans Relocation Agreement. *Caltrans Permit.
91 FWY at Central
14’x48’ (two sided)
*Zoning change required.
*Landscape Declassification or Caltrans Relocation Agreement *Caltrans Permit
60 FWY at Fairmount Park
14’x48’ (one sided)
*Zoning change required.
*Landscape Declassification or Caltrans Relocation Agreement. *Caltrans Permit.
1-215/60 FWY at Watkins/Central
14’x48’ (two sided)
*Assign easement to the City with lease back to Lamar
*Landscape Declassification or Caltrans Relocation Agreement *Caltrans Permit
Table 3 – Proposed Arterial LED Digital Signs Locations Locations
Size
Requirements
14th Street at Vine
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
La Sierra at Hole
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
Indiana at Madison
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
Market at University
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
Arlington at Indiana
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
Tyler at Diana
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
Van Buren at Indiana
11’x22’ (two sided)
*Approved City Relocation Agreement.
*Changes to the City Municipal Code
After a review of Lamar’s proposal, staff deemed it non-responsive, because Lamar’s proposal only addressed two out of the five scope of work requirements. The proposal was non-responsive to: 1) Site locations or revenue projections for pedestrian/bike rights-of-way signs (concept images were provided); 2) Signs on City-owned structures; and 3) Signs on City-owned property near other nodes or corridors of activities.
Next Steps
To move forward with the potential consideration of a Digital Media Signage Program, an analysis of each potential freeway sign site will need to be completed. This includes potential impacts related to light and aesthetics that may require a review of the General Plan and zoning to consider impacts if they are placed on City-owned land in a commercial or industrial zone as required by Caltrans Outdoor Advertising (ODA). For Quail Run Park (Site 8 on Table 1), a ballot measure would be required by Proposition R and Measure C. The analysis would require an environmental review of all potential freeway sign sites.
Each of the proposed freeway locations will also require a Caltrans ODA permit for placement because they are all located adjacent to a Classified Landscaped Freeway. Staff will have to request that Caltrans declassify the sections of Classified Landscaped Freeway where the potential freeway sign site would be located. Each section would need to be evaluated for eligibility for declassification based on Caltrans criteria such as billboard location and display.
Prior to 2005, off-site advertising signs, along arterials, were permitted in the C-3 (General Commercial) and M-2 (Industrial) zones subject to certain site location and development standards. However, in 2005, off-site advertising signs, along arterials, were prohibited as set forth in Title 19 – Zoning (Chapter 19.623) to reduce the negative visual and aesthetic impacts on the City’s residential neighborhoods, business districts, residents and visitors.
An amendment to the Riverside Municipal Code, including, but not limited to Title 10, may be needed to allow City-owned properties to host off-site advertising signs.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 3 – Economic Opportunity and Goal 5.4 – Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
The item also aligns with each of the five Cross-cutting Threads as follows:
Community Trust – The proposed Outdoor Digital Media Signage Programs will provide conduits for public information which serves the public interest.
Equity – The proposed Digital Media Signage Programs will ensure that City-owned properties will be maximized for community benefit and will generate revenue for the City to fund public services necessary to promote growth and provide equitable economic benefits throughout the immediate area.
Fiscal Responsibility – The proposed Outdoor Digital Media Signage Programs demonstrates that Riverside is a prudent steward of public funds and ensures responsible management of the City’s financial and property resources.
Innovation– The proposed Outdoor Digital Media Signage Programs demonstrate that Riverside is innovative by maximizing opportunities to reinforce the City’s image and identifying and implementing programs to generate revenue for the City.
Sustainability & Resiliency – The proposed Outdoor Digital Signage Programs demonstrates Riverside’s commitment to meeting the needs of the present without compromising the needs of the future and ensuring the City’s capacity to persevere, adapt and grow during good and difficult times alike.
FISCAL IMPACT:
There is no immediate fiscal impact associated with this report. However, allowing billboard advertising signs on City-owned sites could result in additional positive revenue to the General Fund.
Prepared by: David Welch, Community & Economic Development Director Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/City Treasurer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Presentation
Citywide Outdoor Digital Media Signage Program RFP No. 2127Page 2