Title
Bus Advertising and Transit Street Furniture Revenue Service Contracts - Amendment (Ordinance S-48208)
Description
Request to authorize the City Manager, or his designee, to execute amendments to Contracts: 143743 with Clear Channel Outdoor, Inc.; and 143744 with Lamar Transit, LLC, to extend both contracts for a period of six months, from Jan. 1, 2022 to June 30, 2022, with one option for an additional six-month extension.
Report
Summary
In October 2016, the City awarded the bus advertising contract to Clear Channel Outdoor, Inc. and the transit-street-furniture advertising contract to Lamar Transit, LLC for revenue-generating advertising services, which includes the installation, maintenance, and restoration of advertising on buses and transit furniture. The contracts were each authorized for a five-year term.
In July 2021, a revenue contract solicitation (RCS PTD21-002) was issued to contract for transit street furniture and bus advertising services. A notice of recommended award was posted in October 2021. In response to the notice, the Public Transit Department (PTD) received Public Records Requests (PRRs) from offerors for proposals submitted, which requires the City to afford each offeror the opportunity to seek protective orders for their confidential information. This process has extended the solicitation timeline and PTD seeks to extend the current contracts by six months, with one option to extend an additional six months, to ensure that services continue as PTD finishes procuring the new advertising services contract. These extensions would allow sufficient time to conclude the procurement process (including processing the PRRs and addressing protests, if any) and to facilitate a seamless transition for award of the new contract.
Contract Term
These amendments will extend the end date of the contracts’ terms from Dec. 31, 2021 to June 30, 2022, with an option, if needed, to further extend that end date from June 30, 2022 to Dec. 31, 2022.
Financial Impact
Original contract terms are as follows for each month:
- Clear Channel Outdoor, Inc. pays 66 percent of net sales revenue (or the monthly portion of its minimum annual guarantee of $1.26 million, whichever is higher) to the City for bus advertising sales; and
- Lamar Transit, LLC pays 68.25 percent of net sales revenue (or the monthly portion of its minimum annual guarantee of $2 million, whichever is higher) to the City for transit-street-furniture advertising sales.
Concurrence/Previous Council Action
The City Council approved:
- Bus Advertising Services Contract 143743 and Transit Street Furniture Advertising Services Contract 143744 Oct. 5, 2016; and
- Amendment to Public Transit Furniture Advertising Revenue Contract 143744 on July 1, 2020.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.