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Financial Performance and Budget Committee
August 12, 2022
REQUEST FOR PROPOSALS NO. 2188 – FOR
FREEWAYS, AND/OR ROADWAY RIGHT-OF-WAY
OUTDOOR DIGITAL MEDIA SIGNAGE
Community & Economic Development Department
RiversideCA.gov
2 • September 2021: Staff issued an amendment to RFP 2127 to Lamar and Outfront requesting a comprehensive
Citywide Outdoor Digital Media Signage Program with
City branding.
• November 2021 : Staff received a proposal from Lamar
Advertising Company and due to the incomplete
proposal, the Finance Department's Purchasing Division
determined the submittal non-responsive
BACKGROUND
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3 • March 2022 : The Financial Performance and Budget Committee directed staff to issue separate request for proposals for:
– A Digital Media Signage Program specific to City-owned land abutting freeways, and/or arterial roadway rights-of-way (RFP 2188); and – A separate Digital Media Signage Program specific to City-owned pedestrian/bike rights-of-way, bui lding/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.) (RFP 2187)
• March 2022 : Staff released RFP No. 2188 and 2187 and staff only received a proposal for RFP 2188 from Lamar Advertisement and Outfront Media for freeway billboard signs
BACKGROUND CONT.
RiversideCA.gov
4 COMPARISON
Freeway Signs 64
Arterial Signs 07
Total Signs 61 1
Traffic and Air Quality
Data
Provided Not provided
City Advertisement
Time
12.5%- No Cost, 12.5% at 50% of rate card 10% of Available Time, Not Total Time
Local Business Discount 50% discount during 20% of the advertising time spread over each operational day
Not provided
Term 10-year agreement with optional 10-year
extension
30-year with optional 30-year
extension
Revenue Share Effective Rate ~46% (40% years 1-10, 50% years 11- 20)
25%
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5 REVENUE COMPARISON
Upfront Payment $1,200,000 (First year guarantee paid
upfront)
$1,559,340 (Bonus)
Annual Guaranteed Revenue $1,200,000, Increases by 15% every 5 years
$480,000
Minimum Guarantee over 10 Years $12,900,000 $6,359,340
Minimum Guarantee over 20 Years $29,960,250 $11,159,340 Projected Revenue over 10 years $21,412,218 $6,914,156
Projected Revenue over 20 years $58,184,418 $13,519,730 RiversideCA.gov
6 PROPOSED FREEWAY SIGN LOCATIONS
Locations Size Requirements
860 E. La Cadena Drive
(Riverside Public Utilities Property)
14’x48’ (two sided) *Landscape Declassification or Caltrans Relocation Agreement. *High Potential for declassification and Caltrans Permit. *RMC Amendment may be necessary.
3575 Vine Street 14’x48’ (two sided) *Landscape Declassification or Caltrans Relocation Agreement. *Moderate Potential for declassification and Caltrans Permit. *RMC Amendment may be necessary.
3255 Panorama Road
(Riverside Public Utilities Property)
14’x48’ (two sided) *Landscape Declassification or Caltrans Relocation Agreement. *Moderate Potential for declassification and Caltrans Permit *RMC Amendment may be necessary.
Fairmont Park Golf Course 14’x48’ (two sided) *Landscape Declassification or Caltrans Relocation Agreement. *Moderate Potential for declassification and Caltrans Permit. *RMC Amendment may be necessary.
9501 Indiana Avenue 14’x48’ (two sided) *Landscape Declassification or Caltrans Relocation Agreement. *Low Potential for declassification and Caltrans Permit. *RMC Amendment may be necessary.
3472-3473 Farmham Pl. / 9384
Martha Way
14’x48’ (two sided) *Landscape Declassification or Caltrans Relocation Agreement. *Low Potential for declassification and Caltrans Permit. *RMC Amendment may be necessary.
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7 POSSIBLE DESIGNS
RiversideCA.gov
8 STRATEGIC PLAN ALIGNMENT
Strategic Priority No. 5 – High Performing Government
Goal No. 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.
Cross-Cutting Threads
Community
Trust
Fiscal
Responsibility
Sustainability
& Resiliency
Innovation
Equity
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9 That the Financial Performance and Budget Committee:
1. Consider the proposal received by Outfront Media, in response to RFP No. 2188, for a Citywide outdoor digital media signage program to generate revenue from City-owned property; and,
2. Provide direction to staff to negotiate an agreement with Outfront Media for billboard advertising on City-owned sites abutting freeways to be presented to City Council for final consideration.
RECOMMENDATIONS
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