Metro - File #: 2015-1629

• File #: 2015-1629
• Type: Agreement
• Status: Passed
• File created: 10/15/2015
• In control: Executive Management Committee
• On agenda: 11/19/2015
• Final action: 12/3/2015
• Title: AUTHORIZING the Chief Executive Officer to amend the existing revenue contract with Allvision LLC (Allvision) to provide for the following terms: A. Metro will waive the requirement for Allvision to pay $500,000 in accrued Guaranteed Annual Revenue Payment that was due June 30, 2015; B. Allvision will waive and not recapture $769,000 in incurred Contractor Expenses that were reimbursable costs under the revenue contract resulting in an increase in future net incremental revenue payments to Metro; C. Allvision will reduce its revenue share from 30% to 25% of the Net Incremental Revenue payable for billboard project structured under Option 1 of the Board-approved Strategic Plan; D. Allvision will receive 25% of net incremental revenue generated from the proposed City-approved digital billboard project in Long Beach and the proposed digital billboard project in Carson, if those projects are successfully completed and generating revenue; E. Allvision will develop, for Metro...
• Sponsors: Executive Management Committee
• Indexes: Board approved a Motion, Board approved Contract, Carson, Central Los Angeles subregion, City of Los Angeles, Contractors, Contracts, Division 11, Downey, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Long Beach, North Los Angeles County subregion, Payment, Project, Roadside advertising, San Fernando Valley subregion, Santa Clarita, South Bay Cities subregion, South Bay Service Sector, Westside Cities subregion

Date	Action By	Action	Result
12/3/2015	Board of Directors - Regular Board Meeting
11/19/2015	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
NOVEMBER 19, 2015



Subject/Action
SUBJECT: OUTDOOR ADVERTISING REVENUE CONTRACT

ACTION: AMEND EXISTING REVENUE CONTRACT WITH ALLVISION LLC


Heading
RECOMMENDATION

Title
AUTHORIZING the Chief Executive Officer to amend the existing revenue contract with Allvision LLC (Allvision) to provide for the following terms:

A. Metro will waive the requirement for Allvision to pay $500,000 in accrued Guaranteed Annual Revenue Payment that was due June 30, 2015;

B. Allvision will waive and not recapture $769,000 in incurred Contractor Expenses that were reimbursable costs under the revenue contract resulting in an increase in future net incremental revenue payments to Metro;

C. Allvision will reduce its revenue share from 30% to 25% of the Net Incremental Revenue payable for billboard project structured under Option 1 of the Board-approved Strategic Plan;

D. Allvision will receive 25% of net incremental revenue generated from the proposed City-approved digital billboard project in Long Beach and the proposed digital billboard project in Carson, if those projects are successfully completed and generating revenue;

E. Allvision will develop, for Metro staff approval, a proposed work plan and budget prior to commencing any new billboard projects; and

F. Allvision Contractor Expenses incurred from any future billboard projects in the City of Los Angeles will not be subject to reimbursement from net incremental revenue being generated from the existing billboard project in Downey, the proposed City-approved digital billboard project in Long Beach and proposed digital billboard project in Carson until Metro has received the Minimum Annual Guaranteed Payment (MAGP) owed under the Amended and Restated Contract as of such date.


Issue
ISSUE

In January 2010 the Board approved a five-year (5-year) revenue contract with Allvision to manage billboards on Metro property. The Allvision Contrac...