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HomeMy WebLinkAboutStaff Report 2.E 04/20/200921 CITY OF PETALUMA CALIFORNIA AGENDA BILL April 20, 2009 A,aenda Title: Resolution Awarding City Bus Advertising a Contract to Meeting Date: April 20, 2009 Provide Advertising on Petaluma Transit Buses and Inside the Keller Street Parking Structure Meetin, Time: 7:00 PM Cate2orv. ❑ Presentation ❑ Appointments © Consent ❑ Public Hearing ❑ Unfinished Business ❑ New Business Department: Dire or: Contact Person: Phone Number: Public Works Vinerengo Barbara Duffy 778-4421 . j - Total Cost of Proposal or Proiect: Name of Fund: Advertising from both venues will bring to the City a Transit and Public Works minimum of 35% of City Bus Advertising's monthly gross Account Number: revenues. The anticipated share of monthly revenue is a 6500.65100.43220 minittlum of $2,000 per month for transit, and $100-$300 1100.16100.43220 per month for the Keller Street parking structure. For Current Fund Balance: pricing details see Scope of Work. Not Applicable --- this is a revenue generating Amount BudEeted: Revenue to be included in FY09/10 contract budget Recommendation: It is recommended that the City Council tale the following action: Award contract to City Bus Advertising to provide advertising on Petaluma Transit buses and inside the Keller Street parking structure. 1. ❑ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ❑ First reading or Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ❑ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: The City of Petaluma generates revenue from the sale of advertising space on Petaluma Transit and Petaluma Paratransit vehicles and public parking structures. Since 1990, City Bus Advertising (CBA) (formerly Petaluma Transit Advertising) has been providing outdoor advertising services for the City of Petaluma. The current agreement with City Bus Advertising expired on December 31, 2008, although the City and Consultant have continued to abide by the terms of the previous contract. By signing a new Professional Services Agreement with CBA, the City of Petaluma can be assured of a continued level of service. Additionally, this new Agreement will increase the exterior bus space available for advertising, resulting in an increase in advertising revenue. Advertising sales are regulated by the advertising policy adopted by the City in 2005, which prohibits certain advertising, including all political and religious advertising, and advertising that does not serve to promote a commercial transaction. Attachments to ALrenda Packet Item: 1. Resolution Awarding Contract to City Bus Advertising, including Exhibit A, Scope of Work to City Standard Professional Services Agreement 2. City Bus Advertising Biography ;Rev. `'ewed by Fina ce Director: Reviewed by City Attorney: Apurovedhv-City Manauer: t . f f (] Date: Date: # 2 Date Lkt evisd: Rev. # 1, 417109, 9:30 am File: s: -I I3ilk,Hli �iivcF isiEti ,,�I Ell 417/09 2II.21HH:1,-tIILklIIiIP'RusAckCrtising;i eitdabill.lnc 5:45 pm CITY OF PETALUNIA, CALIFORNIA APRm 20,2009 AGENDA REPORT FOR RESOLUTION AWARDING CITY BUS ADVERTISING A CONTRACT TO PROVIDE ADVERTISING ON PETALUMA TRANSIT BUSES AND INSIDE THE KEELLER STREET PARKING STRUCTURE 1. RECOMMENDATION: Award contract to City Bus Advertising to provide advertising on Petaluma Transit buses and inside the Keller Street parking structure. 2. BACKGROUND: City Bus Advertising (CBA) is owned and operated by Robert Stowe, who has been in business for almost 20 years. CBA markets and provides to local businesses, advertising on spaces located on Petaluma Transit buses. CBA also markets advertising spaces located in the Keller Street parking structure to local businesses. Currently, revenue to the City of Petaluma for Petaluma Transit is $1,000, or 35% of the monthly gross revenue, whichever is greater. This contract will add additional bus exteriors to the available advertising space. The City of Petaluma will receive revenue from this additional space at a rate of 40% of the monthly gross revenue, which will not be counted against the minimum. Revenue to the City of Petaluma for the Keller Street parking structure will be 35% of the monthly gross: The City's share is currently $100 each month. The contract, as proposed, is for three years with two, one-year extensions. 3. DISCUSSION: At this time of decreasing revenues from traditional public sources, it is prudent to ensure a stream of revenue from alternative sources. City Bus Advertising has a track record of successfully selling the available transit vehicle and parking garage space. To encourage additional advertising and increase revenues, this new contract will provide more transit exterior space, and also allow for other additional space or creative alternatives to existing ad placement, such as partial bus wraps, to further enhance revenues. 4. FINANCIAL IMPACTS: Petaluma Transit will receive from CBA a minimum of $12,000 annually; however, with the additional available advertising space, projected revenues are $24,000 per year. Keller Street parking structure receives an average of $1,200 annually towards maintenance costs. Parking structure revenue could increase if additional advertising spaces are identified within the garage. 2 5:%l ransit & 'fransprnrt<ationlCC Agenda 13ilkALLs ;kdvenisinwApril 20. 2009 Agmk) 13011,13us Adti°ertisim, agenda bill.doc ATTACHMENT I RESOLUTION AWARDING CITY BUS ADVERTISING A CONTRACT TO PROVIDE ADVERTISING ON PETALUMA TRANSIT BUSES AND INSIDE TBE KELLER STREET PARKING STRUCTURE WHEREAS, the City of Petaluma wishes to reduce its expenditure of TDA/STA funding, and a contract for advertising placement on buses enables Petaluma Transit to generate revenue to the transit system; and WHEREAS, the City of Petaluma wishes to defray its maintenance costs of the Keller Street parking structure, and a contract for advertising placement in the garage will generate revenue toward maintenance costs of same; and WHEREAS, City Bus Advertising can provide advertising for Petaluma Transit and the Keller Street parking structure, and generate revenue toward both City of Petaluma venues. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Petaluma hereby authorizes City Manager to execute the City's standard Professional Services Agreement, to include a Scope of Services as set forth in Exhibit A attached hereto and incorporated herein by reference, with City Bus Advertising to provide advertising on Petaluma Transit buses and inside the Keller Street parking structure at the following rates: a) Consultant shall pay to City the greater of 1) the sum of ONE THOUSAND DOLLARS ($1,000.00); or 2) THIRTY-FIVE PERCENT (35%) of the monthly gross revenues earned from all advertisers obtained and/or advertisements placed on the rear and sides of the Petaluma Transit Gillig buses and the rear of the Petaluma Transit Chevy and Paratransit buses. b) Consultant shall pay to the City the sum of FORTY PERCENT (40%) of gross revenues earned from all advertisers obtained and/or advertisements placed on the sides of the Petaluma Transit Chevy buses. c) Consultant shall pay to the City the sum of THIRTY-FIVE PERCENT (35%) of the gross revenues earned from all advertisers obtained and/or advertisements placed in the Keller Street parking structure. 3 5:'i l ransit h Transporlaiim iTC Apmda RI IIs113L1s Adv crtkings'.Apri1 20. 2€ 09 Agenda 13iIhBus Advenkitlg agenda hiILdoc City of Petaluma Professional Services Agreement SCOPE OF SERVICES FOR CITY BUS ADVERTISING 1. Consultant shall market rear and side panel exterior advertising space on Petaluma Transit Gillig and Chevy buses and rear panel exterior advertising space on Petaluma Paratransit vans. (Interior advertising space on all Petaluma Transit vehicles is reserved for use by the City of Petaluma and/or for public service advertising approved by the City). Consultant shall also market designated advertising space in the City's Keller Street parking structure. Consultant shall be responsible for the solicitation of advertisements, maintenance, repair and removal of any and all signs displayed on Petaluma Transit and Petaluma Paratransit vehicles and in the Keller Street parking structure. 2. If, during the term of this contract, it is deemed in the shared interest of the City and Consultant, additional exterior advertising space (e.g. full or partial bus wraps) may be marketed by Consultant at a rate consistent with that codified in this Agreement. 3. The advertising services authorized by this Agreement are for the purposes of producing revenue for the City of Petaluma, and the advertising spaces to be marketed by Consultant are deemed to be a nonpublic forum subject to the City of Petaluma's authority to regulate the type of advertising to be allowed. As such, the subject matter of all advertising shall be limited to those advertisements that propose a commercial transaction. (Advertising that proposes a commercial transaction for purposes of this policy excludes advertising that includes expression of political or religious views, regardless of speaker or viewpoint.) Advertisements may not be displayed that: a. Advertise alcohol or tobacco products; b. Advertise illegal activity; c. Contain words or images that are defamatory in nature or that are directed toward inciting imminent lawless actions; d. Contain obscene matter, as that term is defined in California Penal Code section 311(a), or contain statements or words of an obscene, indecent or immoral character, or any picture or illustration of the human figure in such detail as to offend public morals or decency, pursuant California Business and Professions Code section 5402. The City of Petaluma reserves all legal rights to reject or to remove, without notice to Consultant, any sign that the City deems to be in violation of the foregoing policies. Amounts received from advertisers for advertising not in conformance with City policy will be returned to the advertiser. 4. Consultant shall establish contracts with advertisers that are no longer than month-to-month and shall bill all advertisers on a monthly basis. 4 5'iI'ransit &- Transporiatiom',CC Agenda 10[s113us Advertisin riApril 20. 2009 Agenda Ili] k1lus Advertising aLenda hill.doc a. Consultant shall pay to City the greater of 1) the sum of ONE THOUSAND DOLLARS ($1,000.00); or 2) THIRTY-FIVE PERCENT (35%) of the monthly gross revenues earned from all advertisers obtained and /or advertisements placed on the rear and sides of the Petaluma Transit Gillig buses and the rears of the Petaluma Transit Chevy and Para transit buses. b. Consultant shall pay to the City the sum of FORTY PERCENT (40%) of gross revenues earned from all advertisers obtained and/or advertisements placed on the sides of the Petaluma Transit Chevy buses. c. Consultant shall pay to the City the sum of THIRTY-FIVE PERCENT (35%) of the gross revenues earned from all advertisers obtained and/or advertisements placed in the Keller Street parking structure. d. Payments hereunder shall be made to City by Contractor on or before the 20th day of the month following the month for which payments are being made. E 5;Vhunsit & Transportalion!CC Agenda M[15U3us Advertising'.:'lpril 20. 2009 Agenda Bill"Bus Advertising a renda hill.doc City Bus Advertising Company Biography City Bus Advertising is owned and operated by Robert Stowe and was founded in 1990. The first transit advertising service contract was awarded to City Bus Advertising (then Petaluma Transit Advertising) by the City of Petaluma in 1990 and the second advertising contract was with the City of Napa, now known as the VINE, in 1991. City Bus Advertising also provides transit and other advertising services for the City of Benicia/Benicia Breeze; the City of Rio Vista/Delta Breeze, the City of Vacaville/City Coach, MV Transportation, South Lake Tahoe Transit/Blue Go and now with the City of Vallejo Transit which includes Vallejo buses, Baylink buses and Baylink ferries. Robert Stowe and Luda Stowe operate City Bus Advertising with help from Noll Design and Marketing and Callbox Sales and Marketing Solutions. City Bus Advertising utilizes independent sales contractors when needed. All transit signage for advertisers is produced, installed and maintained by City Bus Advertising. Also, all transit signage is inspected 2 to 4 times per month for each transit system. If any of the signage is damaged or needs replacement, City Bus Advertising promptly males new signage and installs it at no charge to advertisers. It is our goal to be responsible and fair to the advertisers and to the cities to whom we provide transit advertising services. 6 4:V ['ran.sit K 'Transportation!('(' Agenda Bi1Is113us ALIvertising1Apri1 20. 2009 Agcnda 13 IH3us Advertising agenda hill.dou