File #: 2020-0387   
Type: Informational Report Status: Agenda Ready
File created: 5/28/2020 In control: Executive Management Committee
On agenda: 6/18/2020 Final action:
Title: RECEIVE AND FILE Report by the Office of Inspector General of Metro's Asset Valuation for Advertising, Sponsorship, and Other Revenue Opportunities
Sponsors: Executive Management Committee
Indexes: Advertising, Coronavirus Disease 2019 (COVID-19), Escalators, Informational Report, Program, Research, Strategic planning, Transit System
Attachments: 1. LACMTA Asset Valuation Study_v6.08.20, 2. Presentation
Related files: 2020-0888
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
JUNE 18, 2020

Subject
SUBJECT: OFFICE OF THE INSPECTOR GENERAL REPORT ON ASSET VALUATION FOR ADVERTISING, SPONSORSHIP, AND OTHER REVENUE OPPORTUNITIES

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE Report by the Office of Inspector General of Metro's Asset Valuation for Advertising, Sponsorship, and Other Revenue Opportunities

Issue
ISSUE

The LACTMA (Metro) Office of the Inspector General (OIG) prepared through its consultant the Superlative Group, an assessment 1) of the potential use of Metro resources to obtain revenue through sponsorship and advertising, on fare media TAP cards; and 2) an asset inventory and valuation of LACTMA-controlled lines, facilities and other assets that could be made available to generate revenue through naming rights, corporate sponsorships or other methods for the Board's consideration. The Study is attached to this report. The estimated values in the Study are based on pre-Covid 19 era circumstances.

Background
BACKGROUND

The OIG conducted an Opportunity Assessment / Audit Universe Program in FY 2019. This is a Program where we consider "opportunities" to carry out Board objectives and positive, pro-active, creative methods to carry out our duties to identify fraud, waste or abuse. This includes identification of any waste by nonuse of a resource at its highest and best use for the public benefit. During that Program we identified a review of our assets for advertising, station sponsorship, and other potential revenue opportunities as a Project.
Metro is unique among the nation's transportation agencies. It serves as transportation planner, coordinator, designer, builder and operator for one of the country's largest, most populous counties, Los Angeles. More than 10 million people - nearly one-third of California's residents - live, work, and play within its 1,433-square-mile service area. This diversity and Metro's extraordinary r...

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