HomeMy WebLinkAbout14. 16-554
DECEMBER 13, 2016 16-554 RESOLUTION
(CARRIED 7-0 LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AGREEMENT WITH HOUCK TRANSIT
ADVERTISING FOR BUS ADVERTISING SERVICES FOR GO
TRANSIT (2017: +$24,000.00, 2018: +$27,000.00, 2019: +$27,000.00)
INITIATED BY: PURCHASING DIVISION
BE IT RESOLVED by the Common Council of the City of Oshkosh that the
appropriate City officials are hereby authorized directed to enter into an appropriate
agreement with Houck Transit Advertising for bus advertising services for 2017-2019 in
accordance with the advertised Request for Proposals and proposal submitted by Houck
Transit Advertising and that said City officials are authorized and directed to take those
steps necessary to implement the terms and conditions of the Agreement.
TO: Honorable Mayor and Members of the Common Council
FROM: Jon G. Urben, General Services Manager
DATE: November 30, 2016
RE: Approve Agreement with Houck Transit Advertising for Bus Advertising Services for
GO Transit (2017: +$24,000, 2018: +$27,000, 2019: +$27,000)
BACKGROUND
GO Transit allows the exterior and interior of buses to be used for advertising as a way to augment
system revenues. In order to promote more effective and efficient use of staffing resources, the City has
used a third -party contractor to sell and install advertising on buses since 2008. The current contract for
this service with Houck Transit Advertising expires on December 31, 2016.
In preparation for this procurement, Transportation and Purchasing staff began formulating a request
for proposal (RFP) to solicit contractors to sell, install and maintain advertising space on GO Transit's
16 bus fleet. The RFP listed the length of the contract to be for three years commencing on January 1,
2017 with options to extend for two, one-year periods. The RFP was advertised in the local paper. It
was also posted online with the State of Wisconsin's VendorNet system. The deadline for submitting a
proposal was November 17, 2016. Two proposals were received from the following firms: Art City
Signs & Houck Transit Advertising. Both proposals met the minimum requirements necessary to move
forward in the evaluation process.
ANALYSIS
An evaluation team was assembled to review the proposals. Each vendor's proposal was evaluated
based on revenue proposed; experience and references; ad sales strategy; and proposal organization.
The revenue proposed was given added consideration during the evaluation. Vendors were required to
propose monthly revenue based on two factors. First, each vendor was required to provide a minimum
monthly payment over each year of the agreement. Second, each vendor was required to provide a
monthly percentage of gross ad sales. Between the two factors, GO Transit receives whichever monthly
amount is greater. The current ad revenue contract with Houck Transit Advertising provides GO
Transit with a minimum of $1,750 per month ($21,000 annually) or 50% of gross sales. The monthly
minimum amounts and percentage of gross ad sales proposed by each vendor are as follows:
City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 http://www,ci.oshkosh.wi.us
Vendor
Monthly Min / %of gross
sales
Annual Minimum Revenue
Art City Signs, LLC
2017:2,000/50%
2017: 24,000
2018: 2,000/50%
2018: 24,000
2019: 2,000/50%
2019: 24,000
2020: 2,000/50% (option
2020: 24,000
year)
2021: 24,000
2021: 2,000/50% (option
ear)
Houck Transit
2017:2,000/50%
2017: 24,000
Advertising
2018: 2,250/50%
2018: 27,000
2019: 2,250/50%
2019: 27,000
2020: 2,333/50% (option
2020: 27,996
year)
2021: 27,996
2021: 2,333/50% (option
ear)
Over the first 3 years of the 2017-2019 contract, Houck Transit Advertising's proposal provides GO
Transit with a minimum payment of $78,000. Over the same term, Art City Signs proposes a minimum
of $72,000. In addition to the higher revenue proposed, Houck Transit Advertising included $1,000 per
year in free printing of interior or exterior signage for GO Transit's self -promotion when advertising
space is available. This provision was not requested or required with the RFP, so the evaluation team
considered it a value-added service. Both vendors provided references demonstrating the ability to
professionally install vinyl and work with local businesses. Houck Transit Advertising had an edge in
sales experience with statewide and national sales experience. Houck Transit Advertising also had
more experience providing similar bus ad sales services for other transit properties in Wisconsin and
across the Midwest. It was the consensus of the evaluation team and Purchasing that in consideration
of all the RFP evaluation criteria, the proposal from Houck Transit Advertising provided the best
service and value for the City of Oshkosh.
FISCAL IMPACT
The guaranteed minimum annual revenue for GO Transit will be $24,000 in 2017, $27,000 in 2018 and
$27,000 in 2019. The 2017 amount represents a 14% increase in guaranteed annual revenue over the
current agreement. Ad revenue is credited to the Transit Utility's Advertising Revenue account (511-
1728-4944-00000).
RECOMMENDATION
Purchasing recommends that the Common Council award this three-year agreement to Houck Transit
Advertising, 1025 Tomlyn Avenue Suite 100, Shoreview, MN 55126. If you have any further questions
on this agreement please contact Transportation Director Jim Collins, or myself.
Respectfully Submitted,
Approved:
Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager