FROM:
Development Services
SUBJECT:
Title
Cost Sharing Agreement with Sunrise Ford for the Digital Reader Board Replacement
End
RECOMMENDATION:
Recommendation
1. Adopt Resolution No. 2024-125 and approve the cost sharing Sale Agreement with Sunrise Ford, to fund the digital freeway sign upgrade located 16005 Valley Blvd. Fontana, CA 92335.
2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.
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COUNCIL GOALS:
• Operate in a businesslike manner by improving services through the effective use of technology.
• Increase citizen involvement by utilizing technology to promote communication and linkages in the community.
• Practice sound fiscal management by living within our means while investing in the future.
DISCUSSION:
The City of Fontana received a request from Sunrise Ford auto dealership for financial assistance in funding the upgrade of the Sunrise Ford digital freeway sign. The existing digital reader board has reached the end of its life. The manufacturer is no longer supporting warranties nor providing replacement parts. The current board’s LED’s do not operate with the same brightness and visibility as more modern boards.
Sunrise Ford has secured competitive bids for this necessary upgrade from Electra-Media, Inc. who has vetted through multiple vendors and technology options to provide us with the highest quality product at the best price point including prevailing wage for on-site labor. This upgrade will include the removal of the existing LED display with new high-resolution LED displays, along with updating ID cabinet with new logos and channel letters, retrofit "City of Fontana" ID with new white LED lighting, and repaint sign. This will return readership drastically back up to 98% which is estimated to result in increased sales of 10% to 12% and in turn, increased sales tax revenue to the City of Fontana of the same percentage. In return, the City will have the right to use 15% of the sign's operating time each hour for City messaging and content, such as events and announcements for 10 years.
The City's participation in this Agreement may result in increased auto sales, an important element to the City's general fund, as well as provide a public service by granting the City the right to advertise on the sign along the I-10 Freeway, which sees 270,000 vehicles daily.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is 50% ($397,294) of the total purchase price of the upgrade which is ($794,587). The expenditure will be submitted in the 2nd quarterly budget report and will be funded by Capital Reinvestment Fund (601).
MOTION:
Approve staff recommendation.