Why Did L.A. Fail To Bank Over $23 Million In Street Furniture Revenue? Because The City Procrastinated.
City Controller Wendy Greuel announced today that Los Angeles could have an extra $23 million in the bank had officials not dragged their feet to approve permits for advertising on street furniture.
What is street furniture, you ask? Outdoor structures like benches, newsstands, public toilets, waste receptacles and kiosks are all examples of street furniture, which is reportedly quite unpopular in some L.A. neighborhoods.
An audit of the city's 20-year contract with CBS Decaux, a private firm responsible for installing and advertising on street furniture, revealed that the city waiting too long to grant permits for some of the items per the contract. Expiring in 2022, the contract calls for the company to pay for and install thousands of pieces of street furniture. CBS Decaux benefits from most of the advertising revenue, but the city receives a small fee for each piece of furniture.
The permit delays, plus miscalculations of annual fees due to the city, could total up to $57 million in additional losses. Each furniture installation must be approved by city officials.
The contract aimed to bring approximately $150 million in revenue for the city but has yielded less than $30 million thus far. Gruel called the contract "unrealistic in terms of expectations from the very beginning."
