SR-1000-001-09 (2)
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Council Meeting: February 11, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation for the City Council to Reject All Responses Received
for Transit Bus Advertising Concession
Introduction
This report requests that City Council reject all submissions received in response to the
City’s Request for Proposal to provide advertising concession services to Santa
Monica’s Big Blue Bus.
Background
On December 23, 2002, the City issued a Request For Proposal (RFP) for Advertising
Concession seeking proposals to provide assistance in selling, placing, administering
and managing commercial advertisements on the interiors and exteriors of the Santa
Monica Big Blue Bus vehicle fleet. The RFP required that any revenues exceeding a
minimum annual guarantee would be shared between the concessionaire and Big Blue
Bus, with 65 percent returned to Big Blue Bus.
The notice of the RFP was published in the Los Angeles Times and Passenger
Transport, a transit industry publication. The RFP was also mailed to a total of 18 firms.
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An Addendum to the RFP was issued on January 14, 2003, in which staff answered the
questions submitted in writing by interested firms. Final responses were due at noon on
January 21, 2003. Four firms responded within the time allowed.
Discussion
Evaluation of the responses resulted in the decision to modify the RFP to allow
respondents more flexibility as to the minimum guarantee at different revenue sharing
percentages. In addition, the term of the agreement will be shortened and other
advertising services included. These modifications will result in the best possible
service and financial package available. Council must reject the proposals received
before a new RFP can be issued.
Until a new advertising concession agreement is awarded, Big Blue Bus staff will
oversee advertising sales and placement efforts to avoid disruption in potential
advertising sales and revenue income.
Budget/Financial Impacts
There is no budget impact for rejecting the proposals. Staff intends to return with
contract approval within the next two months.
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Recommendation
It is recommended that the City Council reject all of the proposals submitted in response
to the Request For Proposal, Advertising Concession, issued on December 23, 2002
and direct staff to re-issue a modified Request For Proposal.
Prepared by: Stephanie Negriff, Director of Transit Services
Janeene De Martinez, Assistant Director, Transit Finance & Business
Services
Joe Stitcher, Customer Relations Manager
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