R11483City Council Meeting 11-15-2022 Santa Monica, California
RESOLUTION NUMBER 11483 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
DECLARING ITS INTENT TO AWARD A DIGITAL WAYFINDING AND OUT-OF-HOME
ADVERTISING KIOSK FRANCHISE TO
BIG OUTDOOR.
WHEREAS, on January 26, 2021, the City Council directed City of Santa
Monica staff to issue a Request for Proposals to identify a franchise partner to
implement a digital wayfinding and out-of-home advertising program to provide
interactive information to community members and visitors, enhance public safety with
emergency capabilities, deliver community messaging, and generate new revenues
through advertising sales; and
WHEREAS, the City of Santa Monica issued Request for Proposals #300 on
December 1, 2021 for a franchise partner that has successfully deployed, operated, and
maintained kiosk programs in a minimum of three other similar markets, has a
demonstrated history of producing strong advertising revenues, and is committed to
actively managing the program to meet the needs of the City of Santa Monica and the
community; and
WHEREAS, City Charter Section 1601 requires that the City Council City pass a
resolution declaring its intention to grant the franchises, stating the name of the proposed
grantee, the character of the franchise and the terms and conditions upon which it is
proposed to be granted; and
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WHEREAS, such resolution must fix and set forth the day, hour and place when
and where any persons having any interest in the franchises or any objection to the
granting thereof may appear before the City Council and be heard thereon; and
WHEREAS, the resolution must direct the City Clerk to publish said resolution at
least once within fifteen (15) days of the passage thereof, in the official newspaper; and
WHEREAS, the time fixed for such hearing shall not be less than twenty (20) nor
more than sixty (60) days after the passage of said resolution; and
WHEREAS, at the time set for the hearing, the City Council shall proceed to hear
and pass upon all protests and its decision thereon shall be final and conclusive.
Thereafter it may grant, or deny, the franchise, subject to the right of referendum of the
people; and
WHEREAS, the City initiated the Digital Wayfinding and Out-of-Home Advertising
Kiosk Program to provide interactive information to residents and visitors, enhance public
safety via emergency capabilities, deliver community messaging, and generate revenues
through advertising sales; and
WHEREAS, deployment of the kiosk network would be structured as a franchise
agreement with an exclusive vendor that would require no direct costs incurred or
investment made by the City, with the franchisee required to install, operate, and maintain
the kiosks; and
WHEREAS, compensation for the City and the franchisee would be realized
through profit-share of advertising revenues; and
WHEREAS, after an extensive evaluation process, finalist interviews, and
reference checks, an internal evaluation team selected BIG Outdoor as the best bidder,
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based upon several factors, including a financial package that was significantly higher
than all other bidders ($4 million signing bonus and a 50% revenue share offer to the City
with a $5 million minimum annual guarantee), significant community benefits, and kiosk
technology and design most appropriate for the culture and aesthetic of Santa Monica;
and
WHEREAS, BIG Outdoor has agreed that the terms and conditions upon which
the digital wayfinding and out-of-home advertising kiosk franchise will be granted are as
follows: the franchise term will be twenty (20) years; installation of up to fifty (50) digital
kiosks; the City will receive a fifty-percent (50%) share of adjusted gross revenues or a
minimum annual guarantee of five-million dollars ($5,000,000) per year with a three-
percent (3%) escalation every three years, whichever is higher; the franchise grantee will
contribute two-percent (2%) of franchisee’s annual net media revenues to community
programs and services at the City’s discretion; and a one-time signing bonus in the
amount of four-million dollars ($4,000,000) that will be paid to the City prior to the
effectiveness of the franchise agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The above referenced recitals are incorporated by reference as
true and correct.
SECTION 2. Council hereby declares its intent to grant a digital wayfinding and
out-of-home advertising kiosk franchise to BIG Outdoor.
SECTION 3. The terms and conditions upon which the digital wayfinding and
out-of-home advertising kiosk franchise will be granted are as follows: the franchise term
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will be twenty (20) years; installation of up to fifty (50) digital kiosks; the City will receive
a fifty-percent (50%) share of adjusted gross revenues or a minimum annual guarantee
of five-million dollars ($5,000,000) per year with a three-percent (3%) escalation every
three years, whichever is higher; the franchise grantee will contribute two-percent (2%)
of its annual net media revenues to community programs and services at the City’s
discretion; and a one-time signing bonus in the amount of four-million dollars ($4,000,000)
that will be paid to the City prior to the effectiveness of the franchise agreement.
SECTION 4. The public hearing at which Council shall hear and pass upon all
protests with respect to the proposed digital wayfinding and out-of-home advertising kiosk
franchise grantee set forth in Section 2 will take place on December 13, 2022, at 5:30
p.m., at 1685 Main Street, Santa Monica, California 90401.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth the same shall be in full force and effect. The City Clerk shall cause this
Resolution to be published once in the official newspaper within 15 days after its adoption.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Adopted and approved this 15th day of November 2022.
__________________________
Sue Himmelrich, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11483 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 15th day of November 2022, by the following vote:
AYES: Councilmembers Brock, Davis, De la Torre, Negrete, Parra,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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