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Mass Transit Memorandum <br /> No. 101303-1 <br /> October 13,2003 <br />' TO: Honorable Ma or Osborne and Cit Council Members <br /> Y Y <br /> FROM: Steve Garman, City Manager <br /> Paul McChancy, Mass Transit Administrator ' � <br /> � <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: Staff advertised for proposals for an individual or firm to serve as <br /> an advertising broker for the Transit System, to seek, negotiate, and <br /> manage contracts for advertising on the sides of our buses. Notices <br /> were placed in the Sept. lst. issue of a national publication <br /> (APTA's Passenger Transport) and in the Herald & Review, and <br /> were mailed to 27 firms. Four firms and one individual requested <br /> more information about the contract. Only one proposal was <br /> received by the time of the bid opening on October 2, 2003. Houck <br /> Motor Coach Advertising proposes to pay the City, after a <br /> six-month startup period, either $18,000 per year or 50% of the <br /> amount of advertising contracts sold, whichever is greater. (For <br /> comparison, Transit generated only $9,755 in advertising revenue <br /> in F'Y 2002-2003, and has budgeted only $10,000 in revenue for <br /> the current year.) Staff has examined Houck's proposal and <br /> determined that it meets the minimum specifications published in <br /> 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 should significantly increase the City's <br /> IMPLICATIONS: revenue from advertising on buses, while eliminating staff time <br /> spent on advertising. <br /> , <br />