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NOVEMBER 22, 2011 11-504 RESOLUTION
(CARRIED__7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: AWARD BID TO HOUCK ADVERTISING SERVICES, INC. FOR BUS
ADVERTISING SERVICES FOR THE TRANSPORTATION
DEPARTMENT
INITIATED BY: PURCHASING DIVISION
WHEREAS, the City of Oshkosh has heretofore advertised for bids for Bus Advertising
Services for the Transportation Department; and
WHEREAS, upon the opening and tabulation of bids, it appears that the following is
the most advantageous bid:
HOUCK ADVERTISING SERVICES, INC.
4610 Milton Street North
St. Paul, MN 55126
Minimum Guaranteed Revenue: $1,750/mo. ($21,000/yr)
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the said bid is hereby accepted and the proper City officials are hereby
authorized and directed to enter into an appropriate agreement for the purpose of same, all
according to plans, specifications, and bid on file.
Revenue from this contract is hereby directed to:
Acct. No. 511-1728-4944-00000 Advertising Revenue
CITY HALL
215 Church Avenue
P.O.Box 1130
Oshkosh,Wisconsin
54903 903-1130 City of Oshkosh
#114
OIHKOIH
TO: Honorable Mayor and Members of the Common Council
FROM: Jon G.Urben,General Services Director
DATE: November 14,2011
RE: Bid for Bus Advertising Services
BACKGROUND
The Oshkosh Transit System allows the exterior of buses to be used for advertising as a way to
augment system revenues. In order to promote more effective use of staffing resources, the City has
used a third-party contractor (Houck Transit Advertising, Inc.) to sell and install advertising since
2008. A request for proposals was issued to select a contractor for this work. The awarded contract
will be for three years commencing on January 1, 2012 with options to extend for two one-year
periods.
ANALYSIS
Working in conjunction with the Transit Division, a request for proposals (RFP) to prospective
bidders was issued on September 1, 2011. This RFP was distributed to the current provider and other
local firms,was advertised in the local paper, and was posted online on NovusVendor and VendorNet.
Proposals were due on October 13, 2011. Only one proposal was received, which was evaluated
against the requirements of the RFP and the revenue we currently receive through bus advertising. Per
Federal Transit Administration guidelines, the City negotiated a "best and final offer" with the lone
bidder. The proposal calls for a minimum guaranteed net revenue of$1,750 per month (equivalent to
$21,000 per year) or 50 percent of ad revenues,whichever is greater. This is similar in structure to the
current bus advertising contract, which calls for a minimum guarantee of $2,000 per month
(equivalent to $24,000 per year) or 50 percent of ad revenues. City staff does not expect that re-
bidding this request for proposals would yield better results for the City.
FISCAL IMPACT
The guaranteed minimum revenue in the proposal ($21,000 per year) is less than the level in the
current contract($24,000 per year). Depending on ad sales volume,the City may receive less revenue
than it has previously. However, in recent months, stronger advertising sales have led our advertising
revenue to be based on 50 percent of ad sales rather than on the guaranteed minimum, so it is possible
that there would be no reduction in revenue.
RECOMMENDATION
City staff recommends the Common Council award the contract for bus advertising services to Houck
Transit Advertising, Inc. Please contact Transportation Director Chris Strong or myself if you have
any questions.
Respectf ly u itted, Approved:
Jon G.Urben,General Services Director City Manager