Staff recently advertised a Request for Proposals (RFP), seeking qualified concessionaires to operate the Bus/Bench Advertising Concession for the City.  The advertising opportunities with MET Transit consist of 26 buses with various side and back sign panels, as well as buses available for vinyl advertising wraps.  The concession also includes 15 paratransit vans, each with one back advertising panel, or as needed, made available for a back wrap.  Also, MET Transit has 225 bus bench sites that display advertising at various locations throughout the City.

The RFP was advertised in the Billings Times on December 1 and 8, 2011, and a notice extending the closing date to January 5, 2012 was also published in the Billings Times on December 22 and 29.  Notice was also posted on the City's Website.  

Blair Unlimited, the current concessionaire, and Creative Outdoor Advertising of Jupiter, Florida responded to the RFP.  The proposal from Creative Outdoor Advertising is considered non-responsive because its offer was for the bench advertising and did not include the bus advertising and it did not meet the Minimum Annual Guarantee (MAG) % or dollars.  The proposal from Blair Unlimited is the only response that is considered to be responsive to the RFP.  

The City Council may:

• Approve staff's recommendation to accept the proposal from Blair Unlimited and enter into a new five-year agreement.
• Not approve staff's recommendation to accept the proposal from Blair Unlimited and proceed according to City Council direction.

The Bus/Bench Advertising Concessionaire Agreement calls for the City of Billings Aviation and Transit Department to receive a Minimum Annual Guarantee (MAG) of 40% of the annual gross sales revenue or $50,000, whichever is greater.  For this past fiscal year the Transit Division received $111,750 in revenue through this Agreement.  It is anticipated that this level of annual revenue will continue during the new Agreement term.

Staff recommends that Council accept the proposal from Blair Unlimited and authorize the Mayor to execute the Agreement between the City and Blair Unlimited.