R2013-106 ACCEPTING PROPOSAL OF HOUCK TRANSIT ADVERTISING

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Mass Transit Memorandum No. 100113-1 October 1, 2013 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Paul McChancy, Mass Transit Administrator SUBJECT: Agreement for Transit Advertising Broker SUMMARY Staff recommends that Council adopt a Resolution awarding a RECOMMENDATION: contract for an advertising broker for the Transit System to the single bidder, Houck Transit Advertising. BACKGROUND: The City's current five year contract with Houck Motor Coach Advertising, Inc., expires on October 31, 2013. Houck Transit Advertising is a subsidiary company of Houck Motor Coach Advertising, Inc., which has served as the Transit System's advertising broker since 2003. The Transit System's advertising broker seeks, negotiates, and manages all facets of the contracts for advertising on the sides of our buses. Staff advertised for proposals for an individual or firm to serve as the Transit System's advertising broker for the next five years. An advertisement was placed in the August 28th issue of the Decatur Tribune and notices were sent by e-mail to six national firms known to provide this advertising servico. Only Houck Transit Advertising submitted a proposal by the September 27th deadline. The firm proposes to pay the City ether$25,000 per year or 50% of the amount of advertising contracts isold, whichever is greater. That is the same as the current contract. Over the past 12 months this contract paid Decatur$30,184 in advertising revenue. Staff has examined Houck's proposal and determined that it meets the minimum specifications published in the r6quest for proposals, and that it meets all of the other requirements of the bidding process. Staff has had a very good relationship with thi� firm over the past 10 years, and staff finds that Houck Transit Advertising is capable of, and competent to perform the work. POTENTIAL No known objection to awarding the contract to Houck Motor OBJECTION: Coach Advertising, Inc. INPUT FROM Richard Foiles, General Manager OTHER SOURCES: Decatur Public Transit System STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME Awarding this contract would increase the Cit�'s advertising IMPLICATIONS: revenue without increasing staff time spent on advertising.