Metro - File #: 2020-0456

• File #: 2020-0456
• Type: Informational Report
• Status: Filed
• File created: 6/30/2020
• In control: Board of Directors - Regular Board Meeting
• On agenda: 8/27/2020
• Final action: 8/27/2020
• Title: RECEIVE AND FILE staff update on commercial sponsorship efforts and expanded advertising options for the purpose of generating additional revenues. This is intended to be informational and will not require a Board Action. However, staff are seeking feedback in order to present actionable items for the Board at a later date.
• Sponsors: Executive Management Committee
• Indexes: Advertising, Budgeting, Call For Projects, Contractors, Contracts, Coronavirus Disease 2019 (COVID-19), Customer Experience Plan, Freeway service patrols, Guidelines, Informational Report, Intersections, Los Angeles Union Station, Metro Rail A Line, Payment, Policy, Program, Program management, Race, Strategic planning, Vehicle sharing

Date	Action By	Action	Result
8/27/2020	Board of Directors - Regular Board Meeting
8/20/2020	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
AUGUST 20, 2020

Subject
SUBJECT: ADVERTISING, COMMERCIAL SPONSORSHIPS, AND OTHER REVENUE OPPORTUNITIES

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE staff update on commercial sponsorship efforts and expanded advertising options for the purpose of generating additional revenues. This is intended to be informational and will not require a Board Action. However, staff are seeking feedback in order to present actionable items for the Board at a later date.

Issue
ISSUE

This report serves as Marketing's response to the Office of Inspector General's report on Metro's Asset Valuation for Advertising, Sponsorship, and Other Revenue Opportunities and CEO's COVID 19 Call to Action to Control Costs.

In order to explore further revenue generating opportunities, Marketing staff have been coordinating internally to:

* compose the agency asset / program list for sponsorship opportunities;
* develop a new policy to responsibly execute sponsorship opportunities;
* develop a program to support and manage sponsorship opportunities;
* and identify additional advertising techniques to employ.

Background
BACKGROUND

In the June 2020 Executive Management Committee, the Office of Inspector General presented the informational report, Metro's Asset Valuation for Advertising, Sponsorship, and Other Revenue Opportunities. The report provided an estimated valuation of $665M revenue opportunity if Metro wishes to explore commercial sponsorship as a business model to generate additional revenues. Activities include assigning title sponsorship to rail and bus lines, rail stations, parking facilities, and programs such as Freeway Service Patrol, Bike Share, and Dodgers Express.

In the May 2020 Board meeting, Metro CEO presented the Call to Action to Control Costs Pertaining to COVID-19. The Call to Action detailed the agency's financial crisis due to COVID-19 pandemic and loss of critical agency fund...