Meeting_Body
REVISED
EXECUTIVE MANAGEMENT COMMITTEE
FEBRUARY 18, 2021
Subject
SUBJECT: COMMERCIAL SPONSORSHIP AND ADOPTION POLICY
Action
ACTION: ADOPT NEW BOARD POLICY
Heading
RECOMMENDATION
Title
CONSIDER:
ADOPT the Commercial Sponsorship and Adoption Policy (Attachment B) in order to create a Commercial Sponsorship and Adoption Program with the goals of generating revenues to support agency programs and initiatives.
Issue
ISSUE
The financial impact of the COVID-19 pandemic - loss of sales tax funding and loss of ridership fare revenues - has driven the agency into a budget shortfall and financial crisis. Various reports and studies call for exploring alternative revenue sources and expanding revenues programs. Commercial sponsorship is estimated to generate up to $665M over twenty-five years in long-term revenues for Metro.
The adoption of a Commercial Sponsorship and Adoption Policy ("Sponsorship Policy") would set the guidance and structure to take advantage of the system's future commercial revenue opportunities. Metro has the fiscal responsibility to maximize the utilization of available resources effectively and efficiently to create long-term, consistent, agency-generated revenues. Furthermore, diversifying Metro's revenue sources prepares the agency for future economic shortfalls and unexpected agency impacts.
This report provides the history and conditions leading to the development of a Commercial Sponsorship and Adoption Policy.
Background
BACKGROUND
2020 saw unprecedented stress upon Metro and the entire world in coping with the impact of COVID-19 - the snowball effects of pandemic trauma, economic uncertainty, and social unrest pushed the agency to re-evaluate all aspects of service, funding, safety, and operating. As noted below, the call to diversify and expand Metro's revenue opportunities has never been more appropriate and timely than now.
May 2020 - Metro CEO presents the report, Call to Action to Control Costs Pertaini...
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