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Mass Transit Memorandum <br /> No. 082008-1 <br /> August 20, 2008 <br /> TO: Honorable Mayor Carrigan anc� City Counc'1 Members <br /> FROM: John A. Smith, Interim City Manager <br /> Paul McChancy, Mass Transit Admin stra �J7�,,,`- , <br /> SUBJECT: Agreement for Transit Advertising Broker <br /> SUMMARY Staff recommends that Council adopt a Resolution awarding a <br /> RECOMMENDATION: contract for an advertising broker for the Transit System to the <br /> single bidder, Houck Motor Coach Advertising, Inc. <br /> BACKGROUND: The City's current five year contract with Houck Motor Coach <br /> Advertising expires on October 31, 2008. As the Transit System's <br /> advertising broker, the firm seeks, negotiates, and manages all facets <br /> of the contracts for advertising on the sides of our buses. Staff <br /> advertised for proposals for an individual or firm to serve as the <br /> Transit System's advertising broker for the next five years. Notices <br /> were placed in the July 7th issue of a national publication, APTA's <br /> Passenger Transport, and in the July 9th issue of the Decatur <br /> Tribune. The complete Request for Proposals (RFP) was mailed to <br /> two firms and one individual who had earlier requested to be on the <br /> mailing list for this contract. 'The RFP was mailed to one firm that <br /> responded to the ad in Passenger Transport. Only Houck Motor <br /> Coach Advertising submitted a proposal by the August 11�' <br /> deadline. The firm proposes to pay the City either$25,000 per year <br /> or 50% of the amount of advertising contracts sold, whichever is <br /> greater. The current contract requires the firm to pay the City either <br /> $18,000 per year or 50% of the amount of advertising contracts sold, <br /> whichever is greater. This contract generated $24,834 in advertising <br /> revenue in FY 2007-2008. Staff has examined Houck's proposal <br /> and determined that it meets the minimum specifications published <br /> in the request for proposals, and that it meets all of the other require- <br /> ments of the bidding process. Staff finds that Houck Motor Coach <br /> Advertising, Inc., is capable of, and competent to perform the work. <br /> POTENTIAL No known objection to awarding the contract to Houck Motor <br /> OBJECTION: Coach Advertising, Inc. <br /> INPUT FROM Richard Foiles, General Manager <br /> OTHER SOURCES: Decatur Public Transit System <br /> STAFF REFERENCE: Paul McChancy, Mass Transit Administrator <br /> BUDGET/TIME Awarding this contract would increase the City's advertising <br /> IMPLICATIONS: revenue without increasing staff time spent on advertising. <br />