Title
AUTHORIZATION TO ENTER INTO A DIGITAL BILLBOARD PLACEMENT LICENSE AGREEMENT WITH LAMAR CENTRAL OUTDOOR, LLC TO CONSOLIDATE PREVIOUSLY EXECUTED LICENSE AGREEMENTS INTO A NEW MASTER AGREEMENT
Staff Contact: Jean Moreno, Executive Officer, Strategic Initiatives and Special Projects
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Digital Billboard Placement License Agreement that will replace and supersede previously executed agreements with Lamar Central Outdoor, LLC for the operation of digital billboards along the Agua Fria Freeway (Loop 101) between Bethany Home Road and Orangewood Avenue.
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Background
In 2009, the City Council authorized the City Manager to enter into 5 digital billboard license agreements (Resolution No. 4332 New Series) at specific locations on city-owned property in the vicinity of the Loop 101 corridor. License agreements for two out of the five locations were executed in 2009 (contracts C-6855 and C-6855-1); and, two signs were constructed. In 2014, the City entered into two additional license agreements for signs at locations consistent with the 2009 resolution (contracts C-9245 and C-9246); and those signs were also constructed. The proposed fifth location concept was abandoned due to site restrictions. These agreements created new General Fund revenue streams and currently create an annual General Fund revenue impact of $513,606 collectively.
Analysis
The contract provisions between the existing 2009 agreements and the 2014 agreements vary on vital terms such as due dates, the calculation method for the annual license fee increase, insurance requirements, and commencement and effective dates. This resulted in inefficiencies for both the City and Lamar in managing the compliance aspects of the contracts. A recent internal audit of these contracts also resulted in several findings that require amending the existing agreements. In...
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