The Transportation Committee is recommending that the City Council note and file a Los Angeles Department of Transportation (LADOT) report on transit vehicle advertising.

What is Being Proposed?

The Transportation Committee is recommending that the City Council note and file a Los Angeles Department of Transportation (LADOT) report on transit vehicle advertising. This is an informational matter requiring no Council action—the committee is simply acknowledging receipt of the report and placing it on the official record.

Background and Rationale

The report provides an update on the city's current transit vehicle advertising contract, which was part of a Request for Proposals (RFP) issued in 2023. The committee reviewed this report on October 22, 2025, and determined that it was suitable for filing as an informational item after allowing for public comment.

Key Details

Report date: July 22, 2025 Committee action date: October 22, 2025 What the report covers: Details on the current advertising contract, the number of vehicles involved, types of advertisements displayed, revenue generated, and status of the 2023 RFP process Committee vote: 3 yes votes (Hutt, Hernandez, Nazarian), 2 absent (Park, Padilla)

Impact

This matter is primarily administrative and informational. No fiscal impact or community impact statement was required. The report provides transparency about how the city is using transit vehicles for advertising and the revenue this generates—information relevant to residents interested in municipal operations and transportation funding.

What is Being Proposed?

This document contains a public comment submitted on July 29, 2025, regarding a contractual agreement under Council File 23-1376-S1. The commenter is not proposing new action but rather questioning whether the City adequately considered financial terms during contract negotiations.

Why?

The commenter raises a concern about the City's negotiating strategy. They point out that the contract will be in effect during three major, high-profile events: the World Cup, Super Bowl, and the Olympics/Paralympics games. Given the heightened visibility and economic activity surrounding these events, the commenter suggests the City should have leveraged this timing to negotiate more favorable financial terms.

Key Details

Submission Date: July 29, 2025 at 9:33 AM Major Events Referenced: World Cup, Super Bowl, and Olympics/Paralympics games (all occurring during the contract period) Specific Suggestion: The commenter asks whether the City considered negotiating a signing bonus or other premium compensation as part of the contract

Impact

This comment raises questions about contract negotiation practices and whether the City maximized financial benefits during a period of significant international attention and economic opportunity. The concern is relevant to all residents as it touches on how effectively city resources are being leveraged in major commercial agreements.

What is Being Proposed? The Department of Transportation is providing a status report on Los Angeles's transit vehicle advertising program. The recommendation is simply that the City Council note and file the report. There is no new action being requested—this is an informational report responding to a February 2025 Council directive. Why? Council requested this report to understand how LADOT's advertising program operates, including how many vehicles carry ads, what revenue is generated, and how it compares to other transit agencies like LA Metro and Long Beach Transit. The program, which began in 2006, generates revenue that supports transit operations with no cost to the City. Key Details LADOT currently has advertisements on 387 transit vehicles (Commuter Express buses, Community DASH buses, and Cityride vehicles). The contractor, Outfront Media Group LLC, receives 60% of net revenues (with no minimum guarantee waived since COVID-19). Over the past nine years (2017-2025), the program has generated between roughly $300,000 to $1.2 million annually, though revenues remain about 30% below pre-pandemic levels. A new three-year contract with Outfront is pending City Council approval, expected by October 2025, which will expand advertising to 155 new battery-electric buses not previously available. Impact Revenue from advertising supports the City's Proposition A Local Transit Assistance Fund, which directly funds transit services. Residents primarily see this as advertisements displayed on buses they ride. The program affects advertising companies choosing between LADOT and Metro buses based on their target neighborhoods.

What is Being Proposed?

The Los Angeles City Council adopted a Transportation Committee Report regarding the city's transit vehicle advertising contract. The report examines the current status of this advertising program, including details about which vehicles carry advertisements, the types of ads displayed, and the revenue generated. The report also reviews a Request for Proposals (RFP) that was issued in 2023 to potentially modify or improve the advertising contract.

Why?

The city regularly reviews its contracts and revenue-generating programs to ensure they are operating effectively and in the public interest. Transit vehicle advertising generates revenue for the city while providing advertising space to businesses. The 2023 RFP suggests the city was evaluating whether new vendors or updated terms could better serve the city's interests or public benefit.

Key Details

Council Meeting Date: March 14, 2025 Agenda Item: 18 Vote Result: Adopted (with 11 yes votes, 4 absent, 0 no votes) Original Report Date: February 12, 2024

Impact

This decision affects transit riders who see advertisements on Los Angeles buses and other transit vehicles, businesses seeking advertising opportunities, and the city's revenue stream from advertising contracts. The adoption of this report signals the city's continued commitment to managing its transit advertising program and evaluating options to optimize it.

What is Being Proposed?

The Westside Neighborhood Council has submitted a Community Impact Statement (CIS) supporting Council File #23-1376-S1. The council voted to support the item and requested an evaluation and report on the status of an advertising contract with a comparable cities analysis to maximize revenue potential.

Why?

The Westside Neighborhood Council determined this matter warrants community input and formal positions through the CIS process, which is enabled under Los Angeles Administrative Code §Section 22.819. This mechanism allows neighborhood councils to formally communicate their positions on matters before City Boards and Commissions, ensuring community voices are included in municipal decision-making.

Key Details

Council File Number: 23-1376-S1 Neighborhood Council: Westside Contact: Joseph Roth (wncseat18@gmail.com) Board Vote: Yes(13), Nay(0), Abstain(0), Ineligible(0), Recusal(0) Vote Date: February 13, 2025 CIS Submission Date: February 15, 2025

Impact

This CIS supports the City Council's directive to evaluate and report on the advertising contract's performance against comparable cities. The action aims to ensure the city is optimizing its advertising revenue potential, which could affect city budgets and services funded through such revenue streams.

What is Being Proposed?

Councilmember Heather Hutt is proposing that the Los Angeles Department of Transportation (LADOT) conduct a comprehensive review and report on the City's transit vehicle advertising program. The motion asks LADOT to evaluate the current contract status, revenue generation, advertising coverage across the transit fleet, and explore potential new revenue opportunities in this sector.

Why?

The City faces significant fiscal challenges with budget shortfalls projected through 2028, making it necessary to explore all possible solutions for generating additional revenue. Since 2006, transit vehicle advertising has been a revenue source for LADOT operations. With Los Angeles being the nation's second-largest media market, city officials believe there may be untapped opportunities to increase revenue through expanded or innovative advertising programs that haven't been fully explored.

Key Details

Since 2006, LADOT has contracted for transit vehicle advertising to supplement operational revenue. The current contract was extended in August 2024 through March 2025 after a Request for Proposals (RFP) was issued in December 2023 with a February 2024 deadline. The motion specifically requests information on: current contract status and the 2023 RFP results; number of vehicles with advertising and revenue generated over the past five years; comparison with LA Metro's bus advertising program; and evaluation of advertising programs in comparable cities that could be replicated in Los Angeles.

Impact

This motion would help city decision-makers identify whether the City is maximizing revenue from an existing asset. Residents may see changes to transit vehicle advertising in the future, and the findings could help address budget pressures affecting city services.

What is Being Proposed?

The Transportation Committee is recommending that the Los Angeles Department of Transportation provide a comprehensive report on the City's transit vehicle advertising program. The motion instructs the department to investigate the current advertising contract status, the 2023 Request for Proposals process, vehicle inventory with ads, revenue generation, and best practices from other cities.

Why?

The motion, initiated by Council Members Hutt and Lee, seeks transparency and optimization of the City's transit advertising program. By examining the current contract, proposal results, and comparing Los Angeles's approach with other jurisdictions and the LA Metropolitan Transportation Authority (Metro), the City aims to identify potential improvements and partnership opportunities to maximize this revenue stream.

Key Details

The report must address: (1) the status of the current contract and 2023 RFP; (2) the number of transit vehicles carrying ads, types of advertising (interior/exterior), and revenue generated over the past five years; (3) comparison with Metro's bus advertising program; and (4) evaluation of advertising programs in comparable cities. The Transportation Committee voted unanimously in favor on February 12, 2025, with all three members (Hutt, Park, and Hernandez) voting yes. The Westside Neighborhood Council has indicated community interest in this matter.

Impact

This report will help City leadership and residents understand whether the City is effectively monetizing its transit vehicles and potentially identify new revenue opportunities. No financial analysis has yet been completed, so the fiscal implications remain under review.