SR-10-28-2014-8AID
Awa City Council
City of
Santa Monaca
Agenda A..
To: Mayor and City Council
From: David Martin, Director of Planning and Community Development
Subject: Downtown Parking Structure Advertising Program Update
Recommended Action
Staff recommends that City Council:
1. Authorize the continuation of the advertising and signage project with the
expansion of the program to include 28 additional signs on the upper floors of
parking structures 1 -8 through August 31, 2018;
2. Appropriate the budget increases as outlined in the Financial Impact and Budget
Action section of the staff report.
Executive Summary
In November 2010, Council authorized a one -year pilot advertising and signage project
within the downtown parking structures. The project was intended to provide locations
to promote City and Downtown Santa Monica Inc. (DTSM) events and programs as well
as a means to generate revenue to further downtown programs and projects. A total of
24 sign structures have been installed on the lower levels of parking structures 1 -5 and
7 -8. Revenues from the program have been applied towards projects directly
supporting access and parking improvements in the downtown area. Staff recommends
continuing the project for an additional four years and expanding the program to allow
for 28 additional signs above the second floor of the parking structures.
Background
Previous Council Actions
On November 23, 2010, Council authorized a one -year pilot advertising and signage
project within the downtown parking structures.
The request for proposals (RFP) process and selection of the operator was conducted
by DTSM in 2011. After selecting Van Wagner, agreements were executed between
the City and DTSM, the City and Macerich, and DTSM and Van Wagner. Once all
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agreements were executed, all stakeholders coordinated with the Public Works
Department regarding the location and placement of each sign within the parking
structures.
The one -year pilot advertising and signage project began on September 1, 2013 and
included 24 sign structures on levels one and two of parking structures 1 -5 and 7 -8.
The sign structures consist of 14 wallscape signs and 10 backlight signs. Parking
structure 6 was included in the initial contract however signs were not installed since the
facility was under construction at the beginning of the program. Two signs designated
as an additional media outlet for City and DTSM - related initiatives and events were
placed in parking structure 9 because it is mostly utilized by residents.
Discussion
The program is managed by DTSM with support from Van Wagner Communications,
LLC. The majority of the advertisements to -date have been main stream entertainment-
related, typically movie and television, and are similar to current Big Blue Bus
advertisements. While Section 8.4 of the License Agreement between DTSM and Van
Wagner clearly prohibits "advertisements promoting alcohol or tobacco products." All
content is approved by City and DTSM staff prior to posting.
The program is structured around separate agreements between the City and DTSM,
the City and Macerich, and DTSM and Van Wagner. Revenues from parking structures
1 -5, and 6 going forward, are split according to an agreement between the City and
DTMS as shown in the following table:
Van Wagner Communications, LLC.
40%
City of Santa Monica
48%
Downtown Santa Monica, Inc.
12%
Revenues from parking structures 7 & 8 are split according to an agreement between
the City and Macerich as shown the following table:
K
Van Wagner Communications, LLC.
40%
Macerich
30%
City of Santa Monica
24%
Downtown Santa Monica, Inc.
6%
On August 28, 2014, the DTSM Board recommended continuation of the program for
another four years and expansion to upper floors of the parking structures. The
expansion will occur above level two of each garage and includes 15 wallscape signs
and 15 backlight signs at the following locations:
® Two wallscape and two backlit signs in parking structure 6 to bring that garage in
line with the existing program
• Two additional wallscape and two backlit signs in parking structures 1 -6
® Two additional wallscape signs in parking structures 7 & 8
® Two backlight signs in parking structure 10 dedicated for City and DTSM - related
initiatives and events
Between September 1, 2013 and August 31, 2014, the City received $142,659 from the
program. Revenue reports are received from Van Wagner (via DTSM) on a monthly
basis. The City then provides copies of the reports to Macerich, along with monthly
payments of their portion. The City's revenue has been applied towards projects
directly supporting access and parking improvements in the downtown area including
elevator repair, installation of the new parking and revenue control system, traffic signal
improvements at Wilshire Boulevard and 3`d Street, and this past summer's "Go With
the Flow" program. Staff supports the DTSM Board decision and recommends
continuing the project for an additional four years to further the initial goals.
Revenue from the existing 24 signs is expected to increase in future years since some
months of the pilot program did not receive advertisements. This was due to the startup
of the program and advertisers were not yet familiar with the locations. Revenue from
the expansion is not anticipated to be proportionate to the existing 24 signs since the
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new signs will be located on above level two of each garage. The prominence of the
existing signs will generate a higher rental rate than the expansion signs. The addition
of parking structure 6 and expansion of 28 signs to the upper floors is estimated to
generate between $60,000 and $80,000 in additional revenue per year.
In discussions with Van Wagner and DTSM, expansion to other facilities was not
recommended at this time given the types of parking uses supported by the Civic
Center and Main Library lots. Most Civic Center parking patrons are either long -term
City or Downtown employees, or patrons of City Hall or the Superior Court. At the Main
Library, the primary parking patrons are library users and long -term Downtown
employees. The focus of the program has been on short-term visitors and areas of
more frequent parking turnover.
The cost for the production and maintenance for each of the panels is managed by
DTSM. DTSM will continue to manage the program on behalf of the City and City staff
would have access to specified panels for public awareness campaigns, with no cost
and minimal impact on staff time.
N
Financial Impacts & Budget Actions
The current advertising and signage project with 28 signs on the lower floors of
structures 1 -8 will generate an estimated net annual revenue amount of $228,632. The
addition of 28 new signs on the upper floors of the parking structures 1 -8 will generate
an additional net annual revenue amount of $42,000.
Approval of the continuation of the advertising and signage project with the expansion of
the program to include 28 additional signs on the upper floors of parking structures 1 -8
will generate a total net annual revenue amount of $270,632, and requires the following
FY 2014 -15 budget changes:
1. Establish revenue budget at account 01417.410220 in the amount of $325,326.
2. Appropriate the following expenditures to reflect payment of the license fees:
$54,694 to account 01417.522560.
Prepared by: Andrew Maximous, Acting Principal Traffic Engineer
Approved:
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David Martin, Director
Planning and Community Development
l.".
Forwarded to Council:
Rod Gould
City Manager