Title
Billboard Outdoor Advertising Request to Issue Revenue Contract Solicitation at Phoenix Sky Harbor International Airport
Description
Request to authorize the City Manager, or his designee, to issue a revenue contract solicitation (RCS) for the upgrading of two existing billboards and the installation of three new billboards on land located at Phoenix Sky Harbor International Airport.
Report
Summary
Five billboards are located on Aviation Department (AVN) property. Two of those billboards are static billboards located along Interstate 10 (I-10). AVN has identified underutilized, non-aeronautical land along State Route 143 (SR 143) that is suitable for the installation of three new digital billboards. The RCS will award two packages. The first package will award a lease for the two billboards along I-10 to the successful respondent and require that the billboards be upgraded from static to digital. The second package will award a lease for land located along SR-143 for the installation, maintenance, and repair of three new digital billboards.
Procurement Information
AVN will conduct an RCS to select a successful respondent for each package. Responsive and responsible respondents will be evaluated according to the following evaluation criteria:
- Proposed Minimum Annual Guarantee (MAG)
- Business and Marketing Plan
*Maintenance plan
*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 for each package will be recommended for the 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 each lease will be 10 years and will include one, 10-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
This item was recommended for approval at the Transportation, Infrastructure and Innovation Subcommittee meeting on Sept. 2, 2020, by a vote of 4-0.
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.