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Title:
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Billboard Outdoor Advertising Revenue Contract Solicitation Request to Issue at Phoenix Sky Harbor International Airport
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Title
Billboard Outdoor Advertising Revenue Contract Solicitation Request to Issue at Phoenix Sky Harbor International Airport
Description
This report requests the Transportation, Infrastructure, and Innovation Subcommittee to recommend that the City Council approve the issuance of a Revenue Contract Solicitation (RCS) for an outdoor advertising company to install, upgrade, maintain, and manage advertising for five billboards located at Phoenix Sky Harbor International Airport.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
There are currently five billboards located on Aviation Department (AVN) property, including two static billboards located along Interstate 10 (I-10) and three others at various locations on AVN property. AVN has identified underutilized, non-aeronautical land along State Route 143 (SR 143) that is suitable for the installation of three new billboards. The RCS will award two packages--the first package will assign the billboards along I-10 to the successful respondent and will include the requirement that these billboards be upgraded from static to digital. The second package will award three locations along SR-143 for three new digital billboards.
Procurement Information
AVN will conduct an RCS to select a successful respondent. Responsive and responsible respondents will be evaluated according to the following evaluation criteria:
Proposed Minimum Annual Guarantee (MAG)
Business and Marketing Plan
Maintenance Plan
Project Design, including proposed improvements, design, and quality
Sales plan, including approach to managing advertising requests and strategies to maximize revenue
Qualifications and Experience of Respondent
Number of years of experience
Type of experience in managing outdoor advertising
The highest ranked respondent will be recommended for award of a lease.
AVN intends to issue the RCS at the appropriate time based on the national and regional economy performance.
The City’s Transparency Policy will be in effect when the RCS is released and throughout the RCS process.
Public Outreach
The RCS process will include all standard and required outreach efforts and will conduct targeted outreach efforts to attract interest for each of these unique contracting opportunities.
Contract Term
The term of the contract will be 10 years and will include one ten-year option to extend the term that may be exercised at the sole discretion of the Aviation Director or his designee.
Financial Impact
Each respondent shall propose a MAG. In the first year of the lease, the successful respondent shall pay the proposed MAG or percentage rent at 60 percent of gross sales, whichever is greater. For every year thereafter, MAG shall be adjusted to 75 percent of the prior years’ annual rent payment or 100 percent of the previous year’s MAG, whichever is greater.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended approval of this item on May 21, 2020 by a vote of 7-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.