City Council
Report
City Council Meeting: September 30, 2025
Agenda Item: 4.L
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To: Mayor and City Council
From: Jing Yeo, Director, Administration
Subject: Award RFP #456 and Professional Services Agreement to Playfly, LLC for Economic Analysis of Potential Digital Display District Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award RFP#456 to Playfly, LLC for economic consulting services for the Community Development Department;
3. Authorize the City Manager to negotiate and execute an agreement with Playfly, LLC for an amount not to exceed $226,750 over a 5-year period.
Summary
During the past few months, staff has been working to develop a new ordinance to establish a Digital Billboard District for the Third Street Promenade and Santa Monica Place shopping center. To support the forthcoming ordinance, an economic study is necessary to analyze the economic effects of future large format, off-site digital billboards.
Staff recommends that RFP #456 be awarded to Playfly, LLC for the preparation of the economic study and assistance in development agreement negotiations for future digital billboards. The direct City costs for work associated with the economic study amounts to $51,750. In addition, funding in an amount not to exceed $175,000 is also being requested for the contract, which are associated with costs that would be charged to applicants seeking to install digital billboards in the proposed Digital Billboard District. 2 of 5
Each applicant / agreement developed for a digital billboard would be assessed $17,500, with the contract with Playfly assuming up to ten agreements total, for the total $175,000 additional allocation. To that end, the total contract with Playfly assumes a total amount not to exceed $226,750 over a five-year period.
Discussion
The City has received four development agreement applications for the installation of new large format digital, off-site displays in the City’s Downtown. Since the City’s Municipal Code does not permit such large scale, digital billboards that displays off-site advertising, development agreements were submitted for the installation of these digital displays. Signage in the City of Santa Monica is currently regulated under Chapter 9.61 of the Santa Monica Municipal Code. The Sign Code currently prohibits free-standing signs such as billboards and also prohibits offsite signage.
On June 10, 2025, City Council directed staff to proceed with establishing a new ordinance for a digital signage district for the Promenade, inclusive of the Santa Monica Place Shopping Center. The new ordinance would establish new regulations and standards to govern the installation of large scale, off site digital billboards. Once adopted, the new ordinance would facilitate processing of the pending and future development agreement applications for digital billboards.
To support the forthcoming ordinance, an economic study is necessary to assess anticipated revenue generation from the digital billboards and potential advertising saturation. The study would provide a comprehensive analysis of the potential economic effects of the new Digital Billboard District Ordinance, focusing on two primary areas:
• Estimating the potential revenue that could be generated within the digital advertising market, and
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• Assessing the potential effects of advertising saturation on consumer engagement, advertiser return on investment, and overall market dynamics.
The study will be used to inform the ordinance's regulatory framework as well as negotiation of the pending and future development agreements.
On July 24, 2025, a Request for Proposals (RFP) was issued for economic consulting services to provide an economic study for the proposed Digital Billboard District Ordinance and to provide as needed consulting services to assist the City in negotiating future digital billboard development agreements.
Vendor Selection
Bidder Recommendation
Best Qualified Firm Playfly, LLC
Evaluation Criteria Experience/technical competence with digital advertising economics and experience in municipal projects; project understanding and proposed work plan(s)/timeline(s) to
carry out the work; project team; and cost.
Municipal Code SMMC 2.24.190
RFPs Received
Boundless View Collective, Inc Playfly, LLC The Superlative Group RFP Data
Posted On Posted On Vendors Downloaded Date Publicly
Opened
July 24, 2025 City’s Online
Bidding Site
31 August 21, 2025
Justification to Award
The proposals were reviewed by an evaluation committee, consisting of staff from the City Planning Division. Based on the evaluation criteria, staff recommends Playfly, LLC as the best-qualified firm based on Playfly’s lowest bid, extensive experience in providing economic services for similar digital billboard programs, such as in the City of West Hollywood, and expedited workplan timeline.
Environmental Review
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The award contract is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The award contract would not result in any adverse physical environmental effects as it encompasses economic consulting services for the forthcoming digital billboard district ordinance. Therefore, the award contract is exempt from CEQA and no further environmental review under CEQA is required.
Past Council Actions
Meeting Date Description
06/10/2025
(Attachment A)
Large Format Digital Signage Study Session
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award a contract with Playfly, LLC to provide economic consulting services.
Contract Request
FY 2025-26 Budget Request Amount Department Account # Total Contract Amount $51,750 01700002.552010 $51,750
Total $51,750
The remaining balance of the contract, not to exceed $175,000, will be charged to applicants of pending and future digital billboard development agreements on an asneeded basis. Each agreement will be assessed $17,500, with the contract assuming up to ten agreements in total. Payments to the consultant will be administered as passthrough transactions. Developers will deposit funds with the City, and the City will forward those funds directly to the consultant. Because the City is not financially responsible for these costs, the payments will be recorded in a pass-through account and will not affect the City’s operating revenues or expenditures. This approach ensures transparency, avoids inflating the City’s budget, and reflects the City’s limited role as an intermediary between developers and the consultant.
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Prepared By: Rachel Kwok, Environmental Planner
Approved Forwarded to Council
Attachments:
A. Large Format Digital Signage Study Session (Web Link)