Consent 1.E.
Regular City Council Meeting
- Meeting Date:
- 02/27/2017
- TITLE
- Approval of Aviation and Transit Department Bus and Bench Advertising Concession Agreement
- PRESENTED BY:
- Kevin Ploehn
- Department:
- Transit
Presentation:
PROBLEM/ISSUE STATEMENT
A Request for Proposals (RFP) was recently advertised by MET Transit, seeking proposals from qualified concessionaires to operate the Bus and Bench Advertising Concession for the City. The advertising opportunities with MET Transit consist of 19 buses with various back and sign panels, as well as buses available for vinyl advertising wraps. The concession also includes 15 Paratransit vans, which can either be used for a vinyl back wrap or with the existing back advertising panels. Also, MET Transit has approximately 225 bus bench sites that display advertising at various locations throughout the City, and two 46" x 67" panels for advertising, one at each transfer center.
The RFP was advertised in The Billings Times on December 15 and 22, 2016, and January 12, 2017, and on MET Transit's Website. This resulted in 12 requests for the RFP to interested parties. Despite this activity, only one proposal was received. That proposal was from the current concessionaire, Blair Unlimited, Inc.
Staff evaluated the sole proposal from Blair Unlimited, Inc. to determine if the proposal met the specifications and various parameters as identified in the RFP. Subsequently, staff recommends selecting Blair Unlimited, Inc. as the concessionaire.
The RFP was advertised in The Billings Times on December 15 and 22, 2016, and January 12, 2017, and on MET Transit's Website. This resulted in 12 requests for the RFP to interested parties. Despite this activity, only one proposal was received. That proposal was from the current concessionaire, Blair Unlimited, Inc.
Staff evaluated the sole proposal from Blair Unlimited, Inc. to determine if the proposal met the specifications and various parameters as identified in the RFP. Subsequently, staff recommends selecting Blair Unlimited, Inc. as the concessionaire.
ALTERNATIVES ANALYZED
City Council may:
- Approve staff's recommendation to accept the proposal from Blair Unlimited, Inc. and enter into a five-year concession agreement; or
- Disapprove staff's recommendation to accept the proposal from Blair Unlimited, Inc. and advise staff on how to proceed.
FINANCIAL IMPACT
The Bus and Bench Advertising Concessionaire Agreement calls for the City of Billings Aviation and Transit Department to receive 40% of the annual gross sales revenue or a minimum annual guarantee of $50,000, whichever is greater. This is identical to the revenues offered in the existing Advertising Concession Agreement. In fiscal year 2016, the Transit Division received $135,600 in advertising concession revenues and MET staff anticipates similar revenue numbers in the future.
RECOMMENDATION
Staff recommends that Council approve the MET advertising concession proposal from Blair Unlimited, Inc. and authorize the Mayor to sign the five year agreement.