TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Masa Alkire, Community Development Director
Erik Zandvliet, T.E., City Traffic Engineer
SUBJECT:Title
Consideration of Vehicle Wrap Advertising on One or More MB Wave Rider Microtransit Vehicles by Manhattan Village Shopping Center During Pilot Project (Budgeted) (Community Development Director Alkire)
APPROVE
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council approve vehicle wrap advertising on one or more MB Wave Rider microtransit vehicles by the Manhattan Village Shopping Center (Shopping Center) during the six-month pilot project, and authorize the City Manager to negotiate mutually agreeable terms with Circuit Transit for vehicle charging and parking at the Shopping Center.
FISCAL IMPLICATIONS:
The monthly service charge to provide citywide on-demand microtransit service by Circuit Transit, Inc. (Circuit) is approximately $82,618 per month. Per the Agreement, the monthly charge would be reduced by $1,000 per month in ad revenue for each vehicle that has a full wrap. The advertising revenue for one vehicle wrap is approximately $2,000 per month, which is split evenly with the City and Circuit to cover ad marketing and administration expenses.
The current agreement states that Circuit Transit will provide private parking and electrical vehicle charging for five microtransit vehicles. If the City had provided parking and charging, the contract service cost would have been reduced by $29,200 for the entire pilot period, or $4,867 per month.
BACKGROUND:
On April 7, 2026, the City Council approved a six-month pilot project to provide an on-demand Citywide microtransit service operated by Circuit Transit, Inc. The pilot project is funded with Proposition A Local Return funds. At the meeting, the City Council directed staff to evaluate the feasibility of charging vehicles at the Public Works Yard to offset costs, to explore the opportunity for advertising via corporate sponsorships (excluding alcohol sponsors), and return to City Council with potential cost reductions if sponsors are identified.
On May 12, 2026, the City received a letter of intent from the Shopping Center management to provide parking and charging facilities to Circuit for the Wave Rider vehicles. As part of its partnership with Circuit, the Shopping Center would like physical advertising on one or more of the microtransit vehicles. The specific terms of the partnership are yet to be determined but are intended to be mutually beneficial to the three involved parties.
DISCUSSION:
The Manhattan Village Shopping Center management is interested in vehicle wrap advertising on one or more of the City’s microtransit vehicles. In exchange for the advertising, Circuit Transit would be authorized to park and charge the five microtransit vehicles in electric vehicle charging stations at the Shopping Center overnight. The Shopping Center would enter into a private agreement with Circuit Transit to park and charge the microtransit vehicles at no cost to the City. In addition, the City would receive an approximate $1,000 credit on its monthly service charge for each full vehicle wrap advertisement. Staff supports one complete vehicle wrap or partial branding advertisement on multiple vehicles as part of the charging/parking arrangement proposed by the Shopping Center and Circuit.
Staff has explored the feasibility of providing electric vehicle charging at the Public Works Yard, located at 3621 Bell Avenue. While it is not feasible to install new vehicle charging locations by the June 1 service start date identified in the agreement, the City has existing charging stations at City-owned facilities that could be temporarily used at night to charge the microtransit vehicles until such time as Circuit finds a private parking and charging location. The City’s vehicles that normally charge in those stations will be charged during the day instead. For each month that Circuit charges the vehicles with City-owned stations, a $4,867 discount will be reflected on Circuit’s monthly invoice (and prorated for any partial month).
It should be noted that the City’s electrical cost to charge the five vehicles is approximately $2,000 per month. If the Shopping Center provides vehicle charging for five vehicles at no cost to Circuit, the value to Circuit is estimated to be at least $2,000 per month, excluding any separate costs to lease parking spaces from them. Therefore, if this advertising for charging arrangement is approved by the City Council, staff would like to negotiate a $2,000 credit to the City for each month that Circuit receives free charging services as part of the partnership.
PUBLIC OUTREACH:
The public has been informed of this agenda item as part of the City’s standard meeting notice practices via public bulletin boards, website calendar, and social media.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it is a fiscal activity of government to establish a service which will not result in a potentially significant impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. Agreement - Circuit Transit, Inc.
2. Manhattan Village Shopping Center Letter of Intent - 5/12/2026