REPORT TO THE CITY COUNCIL
FROM: JOE VARGAS, Director
Department of Transportation
BY: BELINDA MCMILLAN HAENER, Interim Assistant Director
Department of Transportation
CAROLINA ILIC, Planning Manager
Department of Transportation, Planning Division
JEFF LONG, Senior Transit Planner
Department of Transportation, Planning Division
SUBJECT
Title
Award a revenue contract for bus advertising services to Lamar Transit LLC for $2,190,000 over five years (Bid Eval 9650)
Body
RECOMMENDATION
Staff recommends Council approve the award of a five-year revenue contract to Lamar Transit LLC, for bus advertising services for a total minimum guaranteed revenue of $2,190,000 over five years, with two optional one-year extensions for a total minimum guaranteed revenue of $3,090,000 over seven years.
EXECUTIVE SUMMARY
The Department of Transportation/FAX has contracted for Bus Advertising Services since 2001. Lamar Transit provides full-service placement and maintenance of advertisements, financial reporting, and customer relations on the FAX fleet on behalf of the Department. The current contract is with Lamar Transit and will expire on August 19, 2022. The revenue from the advertising contract is received directly by FAX and provides funding for transit operating services. Lamar Transit will guarantee FAX minimum revenue payments of $430,000 per year in the first two years, $440,000 in the third and fourth years, and $450,000 in the fifth and optional sixth and seventh years of the contract for bus advertising services. All advertisements, before being placed on a bus, are subject to review and approval by the Director of Transportation or their designee.
BACKGROUND
In 1999, FAX staff was directed to evaluate bus advertising as a potential revenue source. From this evaluation, a determination was made to procure Exterior Bus Advertising.
Over the course of the last twelve years, the Department has received total revenues of more than $5,000,000 from ...
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