SR 04-11-1989 6D
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Council Meeting: April 11, 1989
Santa Mo~a, California ~~
APR 1 1 1919
TO:
Mayor and City Council
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FROM:
City Staff
SUBJECT: Recommendation to Award Bid 2214 and Authorize the City
Manager to Execute a Contract with AMNI America Inc.
for Transit Bus Advertising Concession
INTRODUCTION
This report concerns the award of b1d to AMNI America Inc., for a
three-year advertising concession on Santa Monica's Big Blue
Buses.
BACKGROUND
On March 13 and March 14, 1989, in accordance with City charter
and Municipal Code provisions, Notices Inviting Bids were
published for a three-year concession, with two additional
one-year options, for advertising on the inside and outside of
Santa Monica's Big Blue Buses.
The one-year options may be
exercised unilaterally by the City. Proposal forms were mailed
to five potential concessionaires.
In addition, staff asked the bidders to submit an alternate
proposal, in the event that the City chose to prohibit the
advertising of cigarettes. One bidder, AMNI America Inc., bid
the same amounts under both proposals.
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council Meeting: April 11, 1989
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Santa Monica, California
Two bidders submitted proposals, as follows:
For the 12-month period
beginning:
AMNI America
Transit Ads Inc.
May 1, 1989
May 1, 1990
May 1, 1991
May 1, 1992*
May 1, 1993*
$310,000
$340,000
$375,000
$425,000
$450,000
$235,000
$250,000
$265,000
$278,000
$292,000
* one-year options that may be exercised unilaterally by the
city.
Alternate I - Cigarette Ads Prohibited:
For the 12-month period AMNI America Transit Ads Inc.
beginning:
May 1, 1989 $310,000 $220,000
May 1, 1990 $340,000 $230,000
May 1, 1991 $375,000 $240,000
May 1, 1992* $425,000 $250,000
May 1, 1993* $450,000 $262,000
* One-year options that may be exercised unilaterally by the
city.
BUDGET/FINANCIAL IMPACT
If the council accepts the AMNI America bid, whether or not it
includes a prohibition against cigarette advertising, then the
revenues would be as follows for each of the 12-month periods
beginning:
May 1, 1989
May 1, 1990
May 1, 1991
May 1, 1992
May 1, 1993
$310,000
$340,000
$375,000
$425,000 at the City's option
$450,000 at the City's option
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Council Meeting: April 11, 1989
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Santa Monica, California
FINDINGS REQUIRED
In order to prohibit cigarette advertising on the buses of the
Santa Monica Municipal Bus Lines, the city must adopt the
following findings prepared by the City Attorney's office:
1. In light of recent studies and official action, including
the 1986 Report of the United states Surgeon General which
found that cigarette smoking is a cause of disease and
source of air pollution for both smokers and non-smokers,
the May 1987 Report of the California Air Resources Board,
which found that tobacco smoke presents a significant public
health risk, and the listing of tobacco smoke as a substance
known to the state to cause cancer or reproductive toxicity
by Governor Deukmejian's Scientific Advisory Panel in 1988,
the Council finds that the public health, safety, and
general welfare of the riders of the Santa Monica Municipal
Bus Lines, as well as residents of, persons employed in, and
persons who frequent the City of Santa Monica is adversely
affected by cigarette smoking in the city.
2. The Council finds that cigarette advertising on the Santa
Monica Municipal Bus Lines is designed to maintain or to
increase the incidence of cigarette smoking, and that
cigarette smoking within Santa Monica contributes to an
increase in air pollution and health risks for those exposed
to environmental tobacco smoke.
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Council Meeting: April 11, 1989
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Santa Monica, California
3. The Council therefore finds that the prohibition of
cigarette advertising on the Santa Monica Municipal Bus
Lines would further the public health, safety, and general
welfare of riders of the Santa Monica Municipal Bus Lines,
as well as the residents of, persons employed in, and
persons who frequent the City of Santa Monica.
RECOMMENDATION
It is recommended that the City Council:
1. Adopt the findings contained in this staff report concerning
the prohibition of cigarette advertising;
2. Award Bid 2214 to AMNI America Inc. based on their proposal,
which does not include the advertising of cigarettes;
3. Authorize the City Manager to execute a contract with AMNI
America for the transit bus advertising concession.
Prepared by: E. O. Barnes, Purchasing Agent
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