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SR-08-27-2013-3Elama City of City Council Report Santa Monica' City Council Meeting: August 27, 2013 Agenda Item: 3` To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Transit Project Marketing Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a professional service agreement with Pulsar Advertising, a California based company, in an amount not to exceed $305,942 for transit projects marketing services for two years, with three additional one-year renewal options in the amount of $152,971 per year for a total amount not to exceed $764,855 over a five-year period. Executive Summary In order to ensure that the Big Blue Bus (BBB) successfully executes and implements marketing strategies and plans for transit projects, staff recommends securing a contract with Pulsar Advertising for expert marketing services in the amount not to exceed $305,942 for a two-year term and up to $152,971 for each one-year option, for a total of $764,855 the entire contract term. The recommended contractor's price was competitive. Upcoming projects include, but are not limited to: BBB's new farebox system, fare media launch, new customer interfacing technology launches, and BBB service planning integration with the Expo light rail service expansion. Background BBB aims to replace its existing farebox system in early 2014 with an Automatic Farebox Collection (AFC) system for its public transportation system. The objectives of the AFC system are to provide a state-of-the-art open access, user-friendly, fare collection system that can accept currency, convenience passes, transfer tickets, magnetic stripe cards, and smart cards. Conversion to smart card use and acclimation to the new farebox system requires significant marketing and outreach to existing and potential new customers. 1 The arrival of Expo is a significant change for the BBB system that has previously served rail only at the periphery until now. BBB would lead a planning and service analysis effort to determine alternatives for providing economical, efficient, dependable, frequent and direct services to and from current and new generators to the three new Expo rail stations in the City. The outcome of this effort would help determine future modifications to the current BBB fixed route system to enhance service to all three new rail stations. In addition to potential changes to service, many new customers would experience boarding and travelling on the BBB for the first time. The farebox and Expo projects and various upcoming customer interfacing products such as an Interactive Voice Response (IVR) system for bus stop specific bus arrival and departure times, a smart -phone mobile application for real-time bus information, and bus stop redevelopment project require a strategic and comprehensive marketing and outreach program. Discussion Over the next 6 to 18 months, BBB is developing support for new transit modes and technologies as well as appropriate marketing, outreach and educational strategies to ensure that existing and new customers are prepared for these changes. Scope of Work The scope of work for the initial term includes: a. Developing and/or reviewing and enhancing BBB's marketing plans for various transit projects. The firm would work with BBB and develop a complete marketing plan. All marketing strategies developed would include communication, outreach and education to assist people with disabilities, people with Limited English Proficiency, and low income and minority populations. The following summarizes the strategies to be developed by the firm: • Customer outreach during each phase of the respective project(s). • Customer communications: This strategy would define methods for communicating with our customers. Tactics would include, but not limited to, onboard bus signage, website information, brochures, and direct mail. • Customer education: This strategy would address methods for describing and/or demonstrating the project(s) and its benefits to customers. 2 • General advertising: This strategy would address print and electronic mass media advertising. • Targeted advertising: This strategy would define market specific advertising, such as multi-lingual, geographic, and targeted market segments. • Media relations: This strategy would address media training, media events and press releases. • Government and community relations: This strategy would identify tactics for keeping community leaders informed of the project(s) and encouraging their support. b. Developing and overseeing the copy, graphic designs, and production of all communication materials and advertising creative. BBB would place all media advertisements. c. Providing support for executing some, if not all, aspects of the marketing program. d. Providing methods for monitoring and measuring the effectiveness of the marketing program. e. Identify potential new markets and sales outlets as appropriate. After the initial two-year term BBB staff would identify transit projects, if any, that necessitate further engagement with the selected firm and determine if a renewal is warranted. Vendor Selection In May 2013, the City issued a Request for Proposals to provide professional marketing services for upcoming transit projects as required by the Big Blue Bus in accordance with City specifications. Six proposals were received, three firms were interviewed. The selection committee reviewed all proposals, taking into consideration project approach, experience and qualifications, and contract price as it relates to the RFP's proposed scope of work. The selection committee recommends Pulsar Advertising as the best bidder based on the firm's extensive experience in working with government entities, most notably transit agencies, marketing, advertising, media relations, government and community relations, and customer service. Pulsar Advertising's price, relative to all bidders, was competitive. Based on the scope of work, Pulsar Advertising would develop a comprehensive marketing plan that identifies a strategy for all assigned projects. All marketing strategies must include communication, outreach and education components to assist people with disabilities, people with Limited English Proficiency, and low income and minority populations. The marketing plan would establish milestone dates that correspond with the respective project timelines. Financial Impacts & Budget Actions The professional service agreement to be awarded to Pulsar Advertising is for an amount not to exceed $764,855. Funds in the amount of $305,942 are included in the FY 2013-14 Capital Improvement Program budget at the following accounts: FY 2013-14 Account Account Name Amount 0410099.589000 Farebox System $205,942 0410114.589000 Bus Stop Amenities 50,000 0417061.589000 Expo Light Rail Support 50,000 Total $305,942 Future year funding is contingent on Council budget approval. All funds used for this agreement come from funding sources specifically dedicated for transit uses. Prepared by: Suja Lowenthal, Transit Government and Community Relations Manager Edward F. King Director of Transit 0 Forwarded to Council: Rod Gould City Manager Reference: Agreement No. 9790