Title
Street Furniture and Bus Advertising Services Procurement - Request to Issue Revenue Contract Solicitation
Description
Request to authorize the City Manager, or his designee, to issue a Revenue Contract Solicitation for the procurement of transit vehicle advertising and transit street furniture advertising services.
Report
Summary
The Transit Street Furniture and Transit Vehicle (Bus) Advertising programs are revenue-generating programs for the City. The purpose of these programs is to generate revenue for the City to then enhance the various passenger services it provides as components of the regional public transit system. This solicitation will replace existing advertising agreements which will expire on Dec. 13, 2021.
The evaluation criteria for the Revenue Contract Solicitation (RCS) will be based on a 1,000-point schedule as listed below:
- Method of Approach (450 points)
- Price Proposal (350 points)
- Qualifications and Experience (200 points)
This solicitation may result in one or more contracts with vendor(s), as proposers have the ability to submit for one, or both, advertising programs (furniture and bus).
Financial Impact
This is a revenue-generating contract. Contractors will be responsible for all costs associated with installation, maintenance, and restoration of advertising spaces pertaining to bus and/or transit furniture. The RCS and resultant contract(s) provide that the City will be paid the percentage of net sales revenue submitted in the bids, or a minimum annual guarantee, whichever is greater.
The most recent data shows that revenue under the current contracts has resulted in annual amounts of approximately $1.95 million and $1.4 million remitted to the city for transit furniture and bus advertising, respectively.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.