The Los Angeles City Council recently approved a $30 million spending plan aimed at improving transportation infrastructure in underserved areas. This plan includes the replacement and addition of bus shelters, as well as sidewalk enhancements surrounding these areas.
With a 10-0 vote, the council granted the request made by the Board of Public Works. Council members Kevin de León, Eunisses Hernandez, Imelda Padilla, Curren Price, and Monica Rodriguez were absent during the vote.
The Board of Public Works sought authorization to utilize a $30 million loan from the Public Works Trust Fund to cover the cost of installing new bus shelters. They also plan to create a loan repayment schedule and explore alternative funding sources to minimize interest expenses.
According to a letter from the City Administrative Office, the trust fund, which holds deposits from permit applications, operates separately from the city treasury.
Lance Oishi, a contract administrator for the Bureau of Street Services, explained that the allocated $30 million will be used to install a total of 280 new shelters throughout the city. This includes replacement shelters for around 230 existing ones and 50 new shelters in currently uncovered areas.
The installation process is set to begin early next year, and the city plans to repay the loan in five equal payments of $6 million through 2028. These payments will be financed by revenue generated from bus shelter advertising.
This initiative to install 280 new shelters aligns with the city’s broader goal of implementing 3,000 shelters within the next five years through the Sidewalk and Transit Amenities Program.
In 2022, the council established a 10-year contract with Tranzito-Vector for the installation and maintenance of bus shelters, as well as the sale of advertising space on them. Under the agreement, the city will receive 60.5% of the advertising revenue.
The Bureau of Street Services estimates that the city will generate approximately $500 million in revenue from these advertisements.
In addition to the funding plan, the council established the RAISE LA Fund (Reinvestment in Accessibility, Infrastructure, and Streetscape Enhancements for Los Angeles). This fund will hold the advertising revenue generated by the bus shelters to finance further shelter installations and infrastructure improvements, such as maintenance, street upgrades, and landscaping.
Furthermore, a separate bank account has been created to hold approximately $4 million of advertising revenue. This amount will be divided among the 15 council district offices for discretionary use.
Prior to the vote, Councilwoman Nithya Raman, a member of the Public Works Committee, expressed her optimism about the dedicated revenue source. She believes it will help achieve the ambitious goal of providing bus shelters for all stops in the city, creating a more comfortable and safe public transit experience for residents.
Councilman Bob Blumenfield, the vice chair of the Public Works Committee, voiced his support for both the $30 million plan and the RAISE LA Fund. He emphasized the importance of generating revenue to address the lack of shelters and protect the vulnerable population from extreme weather conditions.
Blumenfield criticized the previous contract and bureaucratic hurdles, noting that the city had only installed a meager 25 new bus shelters over the past decade. He described this figure as “pathetic and embarrassing.” Creating a sustainable revenue stream, as proposed in the plan, will enable the development of additional shelters.
He added, “In my district, summer temperatures can reach 120 degrees. People are left standing without any shelter, and our riders are the most vulnerable residents. It’s crucial that this new program generates revenue dedicated to creating more shelters.”
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