Metro - File #: 2023-0074

• File #: 2023-0074
• Type: Contract
• Status: Passed
• File created: 1/30/2023
• In control: Board of Directors - Regular Board Meeting
• On agenda: 3/23/2023
• Final action: 3/23/2023
• Title: AUTHORIZE the Chief Executive Officer to: A. EXECUTE Modification No. 5 to Contract No. PS41099B - License to Sell and Display Advertising on Metro Bus System, with OUTFRONT Media Group, LLC, to: 1. Revise Revenue Compensation to LACMTA, to adjust the minimum annual guaranteed (MAG) payments and annual true-up revenue shares for the remainder of the contract as depicted in Attachment A - Revenue Summary; 2. Extend the Contract period of performance for an additional two years from February 28, 2028, to February 28, 2030, to help recover revenue lost during the COVID pandemic; 3. Increase Metro's share of voice (agency ad space) from 10% to 15% as part of the media inventory where the Contractor covers materials and services. B. EXECUTE Modification No. 3 to Contract No. PS41099R - License to Sell and Display Advertising on Metro Rail System, with Intersection Parent, Inc. to: 1. Revise Revenue Compensation to LACMTA to adjust the minimum annual guaranteed (MAG) payments and annual ...
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Audit, Budget, Bus rapid transit, Contractors, Contracts, Los Angeles Union Station, Maintenance, Payment, Procurement, Program, Purchasing, Ridership, Vandalism

Date	Action By	Action	Result
3/23/2023	Board of Directors - Regular Board Meeting
3/16/2023	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
MARCH 16, 2023

Subject
SUBJECT: METRO SYSTEM ADVERTISING CONTRACT MODIFICATIONS
(LICENSE TO SELL AND DISPLAY ADVERTISING ON BUS AND RAIL)

Action
ACTION: APPROVE CONTRACT MODIFICATIONS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to:

A. EXECUTE Modification No. 5 to Contract No. PS41099B - License to Sell and Display Advertising on Metro Bus System, with OUTFRONT Media Group, LLC, to:
1. Revise Revenue Compensation to LACMTA, to adjust the minimum annual guaranteed (MAG) payments and annual true-up revenue shares for the remainder of the contract as depicted in Attachment A - Revenue Summary;
2. Extend the Contract period of performance for an additional two years from February 28, 2028, to February 28, 2030, to help recover revenue lost during the COVID pandemic;
3. Increase Metro's share of voice (agency ad space) from 10% to 15% as part of the media inventory where the Contractor covers materials and services.

B. EXECUTE Modification No. 3 to Contract No. PS41099R - License to Sell and Display Advertising on Metro Rail System, with Intersection Parent, Inc. to:
1. Revise Revenue Compensation to LACMTA to adjust the minimum annual guaranteed (MAG) payments and annual true-up revenue shares for the remainder of the contracts as depicted in Attachment A - Revenue Summary;
2. Extend the Contract period of performance for an additional two years from February 28, 2028, to February 28, 2030, to help recover revenue lost during the COVID pandemic;
3. Increase Metro's share of voice (agency ad space) from 10% to 15% as part of the media inventory where the Contractor covers materials and services;
4. Expedite the digital screen placement program to deploy 500 screens by 2026 to improve our riders' customer experience and prepare for the 2028 Olympic and Paralympic Games.

Issue
ISSUE

Commercial advertising revenues are an important supplemental revenue source supporting Metro's transpo...