SR-042286-6HPU:EOB:jw Santa Monica, California
Council Meeting: April 22, 1986 /~
1'T
APR 2 2 1986
TO: Mayor and City Council ,~ ~~~
FROM: City Staff
SUBJECT: RECOMMENDATION TO AWARD BID 2048 AND AUTHORIZE THE CITY
MANAGER TO EXECUTE A CONTRACT WITH WINSTON NETWORK,
INC. FOR TRANSIT BUS ADVERTISING CONCESSION
Introduction
This report concerns the award of bid for transit bus advertising
concession in the amount of $190,000 first year, $200,000 second
year, $210,000 third year, and at the City's option, $225,000
fourth year and $240,000 fifth year.
Background
Notices Inviting Bids were published on March 28 and 29, 1986 for
transit bus advertising concession. In addition, proposal forms
were mailed to *five vendors. Notices were advertised in
accordance with City Charter and Municipal Code provisions. One
bidder submitted two proposals which were publicly opened and
read on April 8, 1986 as follows:
**Winston Network, Inc. - Minimum guarantee of $179,400 per year
plus 50 percent of the difference between the minimum monthly
rental and the monthly gross billings. Annual increases in the
minimum monthly rental would be based on the annual CPI
increases.
* No WMBE's
** Not WMBE
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APR 2 2 1985
PU:EOB:jw Santa Monica, California
Council Meeting: April 22, 1986
Winston Network, Inc. (Alternative proposal) - Flat fee of
$190,000 first year, $200,000 second year, $210,000 third year,
also at the City's option, $225,000 fourth year and $240,000
fifth year.
Staff has reviewed both proposals and feels the alternative
proposal will generate more revenues to the City and reduce the
time spent administering the contract. In reviewing advertising
revenues for the past two calendar years, the City has received
$164,129 in 1985 and $163,323 in 1984. While both proposals
guarantee revenues above past receipts, staff feels that the
alternative flat rate proposal will provide more revenues to the
City. Because of the finite amount of advertising space
available it is unlikely that revenues from the proposal, based
on the minimum guarantee plus a percentage of any excess, will
exceed the flat fee proposal revenues.
Winston Network, Inc. has been the City's advertising
concessionaire for the past 10 years and has performed well
during that time.
Based on the above analysis and the past performance of the
company, staff recommends that the contract be awarded to Winston
Network, Inc. and that their alternative proposal be accepted.
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PU:EOB:jw Santa Monica, California
Council Meeting: April 22, 1986
Budgetary/Financial Impact
The contract will provide the following revenues to the Municipal
Bus Lines for the 12 month period beginning:
May 1, 1986 $190,000
May 1, 1987 $200,000
May 1, 1988 $210,000
May 1, 1989 $225,000 at the City's option
May 1, 1990 $240,000 at the City's option
Recommendation
It is recommended that the award for bid 2048 be made to Winston
Network, Inc. based on their flat rate proposal and that the City
Council authorize the City Manager to execute a contract with
Winston Network, Inc. for the transit bus advertising concession.
Prepared by: E. O. Barnes, Purchasing Agent
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Reference Contract
No. 4665 (CCS).