HomeMy WebLinkAboutAgenda Statement 1978/10/24 Item 14CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT
Item No: 14
For meeting of 10/L4./78
ITEM TITLE Resolution 9340 Approving Agreement Between the City and Transit
Ads Inc. for Chula Vista Transit Bus Advertising
SUBMITTED BY Acting Director of Public Works
ITEM EXPLANATION
(4/5TH'S VOTE REQUIRED YES NO x )
Staff informed the Council, at the August 31st Council Conference on
negotiations with Aztec, of its intentions to recommend City takeover
of advertising on the interiors and exteriors of all CVT coaches. At
the present time, Aztec Bus Lines contracts with a local advertising
firm for provision of this service and receives 500 of all revenue
generated from advertising on its buses. The City does not receive
any revenue from CVT buses traveling on its streets. Over the past
year, the number of businesses advertising on CVT buses has definitely
dropped off to the point where only one firm has contracted for
advertising on one side of each of the 10 buses. That contract will
expire in January, 1979. Since the advertising firm does not provide
a guaranteed minimum to Aztec, they do not have an incentive to
generate a great deal more business.
Under the current Aztec bus service contract, the City pays a bus lease
charge of $300/month for each Aztec coach assigned to CVT service.
Thus staff feels it quite appropriate for the City to receive revenue
from advertising on the insides and outsides of buses it leases to
operate on its streets. It is anticipated that shortly after the
expiration of the present Aztec contract, the City will be acquiring
about 15 new buses to replace the current Aztec fleet assigned to CVT
service. At this point in time, staff would not recommend advertising
be placed on these proposed new coaches as it believes it would present
a negative image of a small but expanding transit system to the transit
rider as well as to the public at large. Thus advertising on these new
buses could give the appearance of a "moving billboard" rather than a
sleek modern transit vehicle used for transporting passengers within
the City. However, staff feels that advertising would not present as
JAg:nr/DP-002 (continued on supplemental page)
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Agreement x Resolution, Ordinance Plat Notification List
Proposed
Other Guidelines ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
The City will receive a guaranteed minimum of $8000 or 500 of the total
revenue generated from advertising, whichever is greater. If full
capacity of exterior bus advertising is achieved, the City can
expect to receive approximately $12,000 over the next 20 months.
STAFF RECOMMENDATION
Approve agreement with Transit Ads Inc. for provision of interior/
exterior bus advertising for a 20-month period from ilovember 1, 1978,
to June 30, 1980.
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION
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Agenda Item No. 14
For Meeting of 10/24/78
Supplemental Page Two
negative an appearance when placed on the present fleet of CVT coaches
as these buses are 18 years old. Also advertising has been placed on
these buses (and thus seen by riders and the public at large) over the
past several years.
Informal bids for provision of interior/exterior bus advertising were
requested of the following four advertising/communications firms in
Southern California which could provide this service:
1. Transit Ads Inc., La Mirada, CA
2. Benedict Communications, Del Mar, CA
3. Beals Advertising, San Diego, CA
4. Thompson Advertising, Huntington Beach, CA
Responses were received from two companies: Transit Ads Inc. and
Benedict Communications. Benedict has their one office located in Del
Mar and Transit Ads, headquartered in La Mirada, has a local office in
downtown San Diego. Benedict's only bus advertising account is North
County Transit whereas Transit Ads represent several small and large
California transit operators such as San Diego Transit and Santa Monica
Bus Lines. Benedict's proposal guaranteed the City $7349 for a 20-
month contract period or 500 of the net revenues received from the sale
of advertising displayed on CVT buses, whichever is the greater amount.
If full advertising capacity is achieved on all buses, Benedict will
pay the City $12,000 over the 20-month time period. Transit Ads will
guarantee the City a minimum amount of $8000 for the same time period,
which is $651 greater than the minimum guaranteed by Benedict. Transit
Ads also agrees to pay the City 50~ of net advertising revenues should
that amount be greater than the $8000 guaranteed minimum. Should full
advertising capacity be achieved on all CVT buses, Transit Ads would
pay the City the same amount as Benedict (i.e. $12,000) over the 20-
month contract period.
Other significant portions of the contract are as follows:
1. Transit Ads will not accept pornographic, liquor or tobacco
advertising. In addition, the City shall have the right to
refuse any advertising it deems objectionable or detrimental to
the City.
2. Transit Ads shall have exclusive rights to all outside space
except that City may use unsold space for public service announcements.
3. Installation and removal of advertisers' posters will be accomplished
by Transit Ads personnel.
Staff recommends awarding a 20-month exterior/interior bus advertising
contract effective 11/1/78 to Transit Ads Inc. The money paid the
City from revenues generated from bus advertising would reduce the City
local share of CVT operations by almost 1/4. The enclosed Guidelines
establish proposed standards of City's acceptance or rejection of
exterior/interior bus advertising copy as well as advertising on
proposed Bench Ad benches. Staff also recommends development of
exterior as well as interior bus advertising signs informing the public
of specific aspects of CVT operations as well as promoting CVT ridership
throughout the City.
93yd