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City Of Clt~/ Coun~/oi ~\~po~
Santa Monica
City Council Meeting: November 23, 2010
Agenda Item: ~ ""S
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Pilot Project for Downtown Parking Structure Signage
Recommended Action
Staff recommends that the City Council authorize aone-year pilot advertising and
signage project within the downtown parking structures.
Executive Summary
Over the years, the City has had various initiatives, such as the outdoor smoking laws,
that could have benefitted from additional signage locations. Additionally, the City and
Bayside District are challenged to find heavily traveled locations to promote events such
as GLOW and Winterlit. City and Bayside District Corporation (Bayside) staff have
identified the implementation of an advertising program within the downtown parking
structures as a means to provide additional locations to promote City and Bayside
events and programs as well as a means to generate additional revenue to further
downtown programs and projects. Staff proposes aone-year pilot project to install
advertising panels in the downtown parking structures to further these goals.- The
Bayside District Corporation Board would recommend a spending plan for the revenue
generated by the advertising program for- access and parking improvements with
Council having final discretion as part of the annual budget process.
Background
The City and Bayside District have various programs and initiatives that are facilitated
by the display of information in public areas. In order to address the need for additional
communication media, staff proposes implementing an advertising pilot project which
includes space for City and Bayside event and program signage in all of the downtown
parking structures 1-g. The project would also be used as an additional media outlet for
City initiatives, such as the outdoor smoking law education campaign and Shop Santa
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Monica, and other Bayside and City-related events. The pilot project would be paid for
from revenue generated by selling advertising space in panels not used to promote City
or Bayside events.
Discussion
Staff proposes to work with the Bayside District to develop a pilot program that would
include the installation of advertising panels within the downtown parking structures:
The proposed program would not be subject to the requirements of the sign ordinance
per SMMC 9.52.125, which exempts interior signs. The panels would be placed in high
foot-traffic areas inside the parking structures, such as the elevator landings and inside
the elevators. Up to a third of the available panels would be City-designated -
specifically allocated for City messaging. The number, size, percent of panels for City-
sponsored messaging, and locations of panels will be adjusted through the course of
the pilot project based on feedback received. Following completion of the first year of
the program, staff will report to Council the results of the twelve month period, feedback
received, and a proposal for formalizing, terminating or modifying the program. In order
to secure the best terms, staff will seek bids. for afive-year program that specifically
includes a termination clause to allow for the termination of the program after one year.
Financial Impacts & Budget Actions
The cost for the production and maintenance for each of the panels would be managed
by the Bayside District Corporation. The Bayside District would be required to operate
the program in a manner consistent with First Amendment requirements. By authorizing
Bayside District Corporation to manage the pilot program on behalf of the City, City staff
would have access to specified panels for public awareness campaigns, with no cost
and minimal impact on staff time. Under the pilot program, the remaining panels would
be utilized as advertising space for production promotion which would create revenue to
underwrite the cost of the pilot program. Annual estimated revenue could range from
$150,000 to $400,000, depending on the number of advertising locations, and will be
deposited to a special City revenue account following a payment of 20% of net revenue
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to the Bayside District Corporation for managing the program. Any additional revenue
generated from the proposed pilot project would be reinvested in programming to
support access and parking improvements to the downtown area, which will be
identified and recommended by Bayside District Corporation and presented to Council
as part of the annual budget process. After the one year pilot project, staff will revisit the
percentage to the Bayside District Corporation as part of the review of the pilot project.
Prepared by: Donald Patterson, Business & Revenue Operations Manager
Approved:
Forwarded to Council:
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Carol Swindell
Director of Finance
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Rod Gould
City Manager
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