Loading...
HomeMy WebLinkAbout09/07/2004, C6 - REQUEST FOR PROPOSALS FOR ADVERTISING SERVICE ON SAN LUIS OBISPO TRANSIT VEHICLES council Mee ins Due Septan6er 7.2004 j acEnaa RepoiA It..N.6, CID CITY O F SAN LUIS O B I S P O FROM: Michael D. McCluskey, Public Works Director �°rlvfir Prepared by: Austin O'Dell, Transit Manager SUBJECT: REQUEST FOR PROPOSALS FOR ADVERTISING SERVICE ON SAN LUIS OBISPO TRANSIT VEHICLES CAO RECOMMENDATION: 1. Adopt resolution modifying the existing policy on exterior advertising on SLO Transit buses. 2. As recommended by the Mass Transportation Committee (MTC), approve a Request for Proposals (RFP) for Advertising Services on San Luis Obispo Transit Vehicles. 3. Authorize the City Administrative Officer to execute an agreement with selected contractor for advertising program on City buses. DISCUSSION Background The City has had an advertising program on City buses for a number of years. On February 18, 1997, Council approved Resolution 8635 (1997 Series) allowing advertising on City buses. Council did not approve advertising on the City trolley. Council's action was silent in terms of actual placement and advertisement standards to be used and delegated that issue to staff to negotiate appropriate coverage areas that would be used in the program. However, in the Agenda Report staff indicated that the areas under consideration at the time were the back windows. On February 19, 1997, the City entered into a trade agreement with CBS-12 TV. This agreement specified that advertisements were to be placed on the two rear windows and the rear of the buses only and this has been the practice since that time. Since this initial RFP process the City has not updated the advertising program and instead has only renegotiated a trade amount with KCOY for each year of media exchange. Last fiscal year, the Mass Transportation Committee, along with staff, developed a new marketing plan to implement beginning in FY 2005. The significant focus of the marketing plan is to spend the Transit Program's limited advertisng dollars more effectively. In addition, a major recommendation in the marketing plan is to solicit new proposals for adverting services on San Luis Obispo Transit (SLO Transit) vehicles to attempt to augment the limited existing advertising budget. This request for proposals (RFP) will solicit proposals from contractors to sell advertising space on the exterior sides of the buses and also, the interior"car card" areas in each bus. In return, it is anticipated that the vendor will pay the Transit Program a guaranteed fixed monthly fee for the litQ - 1 Council Agenda Report—Advertising on Public Transit Vehicles Page 2 use of the advertising space on SLO Transit buses. One major difference between the existing program and this RFP is the proposed location of potential advertisement. This RFP will allow advertising in the space below the windows and between the wheels instead of the current program that restricts advertising to the two rear windows. The proposed advertising area is considered to be "premium" advertising space and has a higher potential for rate of return. Because Resolution 8635 (1997 Series) is vague on these issues, staff is recommending that Council adopt a resolution modifying the existing City policy to be more accurate in describing the program, and authorizing staff flexibility in negotiating appropriate areas of advertising space on the buses. The current advertising program has very little annual return (approximately $3,600) for media exchange and it is believed that with a new RFP process, along with a better location for advertising, the program could generate higher revenues for marketing and transit advertising. The scope of work also contains a provision that requires that the City's bus logo must remain visible. The Contractor will be required to either: a) incorporate the logo, b) relocate the logo or c) work around the logo in its current location beneath the window. All advertisements will continue to meet the strict design standards used for the current program. RFP Scope of Work The Scope of Work of the RFP (Section 3) is provided as Attachment 1 of this report. Genera!Requirements. There are two general requirements to highlight for Council. The first is that the contractor will have exclusive rights to place City approved exterior and interior advertising on thirteen of the City's buses. This exclusive provision is consistent with the prior advertising contract and it is hoped that having exclusive rights will deliver a higher rate of compensation to the City. The second issue to highlight is that, regardless of advertising contractor, the City will reserve the right to use any unused advertising space for its own use (e.g. public service announcements, promoting the bus, etc.) that is not used by the contractor. The contract does not preclude us from using space if, and when it is available. Exterior Advertisements. Pursuant to City policy, the contractor will be permitted to place advertising on both exterior sides of the buses. The contractor must use a non-permanent adhesive vinyl material that directly applies to the bus. This is the same material that is used for the Art on Bus Program. The City will approve the exact location before all installations of advertisements. The dimensions of the exterior advertisements is limited to, and will range from thirty inches by eighty eight inches (30" x 88") to thirty inches by one hundred forty four inches (30"x 144"), depending on the size of each vehicle. Interior Advertisements. The contractor will be permitted to place three interior advertisements per bus in the "car card"area in the buses. This area is located above the passenger seating area and is currently used for passenger notifications. The contractor must use non-permanent ab -A Council Agenda Report—Advertising on Public Transit Vehicles Page adhesive vinyl material that will not damage the interior of the bus. The dimensions of the interior advertisements are eleven inches by seventeen inches (11" x 17").. Approval and Review of Advertisements. In consultation with the City Attorney, the agreement includes a strict approval and review process to insure that all advertisements are in good taste, uphold decency standards, and are acceptable to the community. The contractor will not be allowed to exhibit any advertisement material, announcements, or any other display for goods or services on City buses that:: a) are false, misleading, deceptive or relate to illegal activities, products, and/or services; b) advocate violence or crime; and c) are obscene, depict nudity, or pornographic images. Section 3.4 of the RFP outlines the complete list of unacceptable advertisement materials and standards that will be used in this contract. If an advertisement fails to comply with the City requirements, at any time as specified in Section 3.4.1 of the agreement; the contractor must immediately remove the unacceptable advertisement from the City buses or face a penalty. The contractor will have 24 hours to remedy the deficiency and comply with City direction. In the event that the contractor fails to remove the unacceptable advertisement within this timeframe, the City will remove the unacceptable advertisement at the contractor's expense. The agreement contains a monetary disincentive clause for the contractor to remedy advertising issues in a timely manner and will be used as necessary to enforce the City's standards. Schedule The tentative schedule for this project is as follows: Table 1-RFP Delivery Schedule 1 Issue Request for Proposals P September 7, 2004 Pre-Proposal Conference September 24, 2004 Proposals Due 4:00 p.m. PST October 15, 2004 Award November 16, 2004 CONCURRENCES On March 10, 2004, the Mass Transportation Committee (MTC) reviewed and concurred with the scope of work for advertising services on public transit vehicles. FISCAL IMPACT There is no impact to the General Fund or the Transit Fund since this is a solicitation for a revenue agreement. Because the Advertising Program is unique, it is difficult to estimate a total rate of return for the program. It is anticipated that the program will generate higher revenue return than the existing advertising program that generates approximately $3,600 annually in media exchange with KCOY television. Council Agenda Report—Advertising on Public Transit Vehicles Page 4 ALTERNATIVES Alternative 1. The Council may decide not to approve the solicitation for advertising services on public transit vehicles. The consequence would be that Transit Program would not receive advertising revenue in order to extend its marketing dollars to promote the bus service. Alternative 2. The Council may decide to maintain the current exterior advertising area that is restricted to the back two windows and the back of the buses. Staff believes that this restriction may be one reason the current advertising program has not generated significant revenue in previous years. Attachments 1. Excerpt from the RFP: Scope of Work 2. Proposer's List 3. Minutes of the March 10,2004 Mass Transportation Committee meeting 4. Resolution 8635. 5. Resolution (2004 Series) A full copy of the RFP is available in the Council Reading File 1:\1Council Agenda Reports\2004 agenda reports\Transportation and Development Review (Bochum)\Transit (O'Dell)\CAR Bus Advertising- PRODUCTION.doc ATTACHMENT Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 60 SECTION 3: SCOPE-OF-WORK 3.1 GENERAL REQUIREMENTS 1. The Contractor shall have exclusive rights to place City approved exterior bus side advertising upon City's fixed-route sixteen buses, subject to the terms and conditions set forth in this Request for Proposals. 2. Three 40 foot Gillig buses are participating in the City's Art on Bus Program. This program displays local landscapes in San Luis Obispo County. The Maruska Arts (referred as the "Artist", hereinafter) shall have exclusive rights on exterior sides on the designated buses (Please refer to Section 1.2.2). The Art on Bus Program has two components. The primary component is the displaying of art. The secondary component is local advertising to offset the Artist's costs of producing the art. At any time after the execution of the Agreement between the Contractor and the City, the Contractor at their own discretion may negotiate the advertising rights upon the Artist of the mutual consent with the City and the Artist. 3. City reserves the right to use any other portion of the buses, and more specifically, the rear exterior of the bus for advertising space for its exclusive use for any advertising, promotion or purpose it deems to be in the interests of City. City also reserves the right to use any unsold exterior bus side advertising space for its exclusive use as mentioned above. Production of any advertising materials for this purpose is the responsibility of City. 4. Space availability for advertising on City vehicles may change during the period of this Agreement for reasons including, but not limited to, the acquisition of new vehicles, the retiring of old vehicles or new bus designs or configurations which do not allow for exterior advertising capability. 5. The Contractor shall employ its best efforts to develop and make sales of advertising space and shall operate a fully staffed business office within the Central Coast area that: a. Has experienced local ad sales force with the capability of acquiring national advertising accounts, and Production, August 10, 2004 Cho - Bus Advertising on Public Transit Vehicles ATTACHMENT Release Date: September 7; 2004 Page 61 b. An office facility and work force capable of insuring proper installation, maintenance and removal of advertising displays.. 6. The Contractor shall comply with generally accepted industry principles with respect to good taste and all applicable laws and regulations including but not limited to truth in advertising, copyrights and trademarks. Additionally, the Contractor shall: a. Remove unapproved, damaged or defaced vinyls within 24 hours of notice given by the City. b. Remove all dated advertising materials within five (5)calendar days from its expiration date. Dated Materials refers to advertising materials that are relevant to a specific time period or relevant to an event that has been completed. 3.2. SPECIFIC REQUIREMENTS 3.2.1 Location 3.2.1.1 Bus Side Advertisement. Advertising will be permitted on exterior left and right sides of buses as described in Section 3.12. Prior to the initial installation of vinyl advertisements, City will approve the exact location for placement of an advertisement, on non-permanent adhesive vinyl material, on each type of bus in City's fleet. These locations will become the standard locations for placement of ads on buses within each subfleet through the term of the agreement. Advertisement shall comply with the City's Advertising Policy in Section 6. 3.2.1.2 Interior Advertisement. Advertising will be permitted on the interior left and right areas of the car card area of the bus as described in Section 3.12. Prior to installation of interior advertisement, City will approve the exact location for placement of an advertisement on non-adhesive material. At anytime, the City reserves the right to public and rider information in any location deemed necessary by the City. Advertisement shall comply with the City's Advertising Policy in Exhibit 2 in Section 6. 3.2.2 Material and Appearance of Advertisement. City requires that all exterior advertising installed as part of the proposal be of the non-permanent adhesive vinyl type, "direct application." The Contractor shall assure that all exterior advertisements are manufactured, installed, and removed in accordance with current industry standards. Additionally, each ad shall: (1) be free from wrinkles,blisters or similar defects; (2)be "squared" to the vehicle contour lines; and (3) present a sharp and clear appearance. Production, August 10, 2004 TTACHMENT-L Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 62 3.2.3 Dimensions of Advertisement. In no case shall the dimensions of any exterior advertising material exceed those dimensions defined in Section 3.12. Additionally, Contractor shall not allow any one exterior ad to remain adhered to any vehicle in excess of one (1) year. 3.2.4 Continuous Advertisement. Once a vinyl is applied to the side of a vehicle, a vinyl advertisement in good repair of the same size must always be displayed in the same location. No "layering" of vinyl advertisements shall be permitted. The previous vinyl must be removed before application of a new vinyl. 3.2.5 Restoration of Bus Side. Upon removal of vinyl advertisement, Contractor will be responsible for the cost of restoring the exterior surface of the bus covered by the vinyl advertisements to the condition of the surrounding exterior surface of the bus. The adhesive used to apply the vinyl type advertisement shall not cause damage to City's vehicles, their paint schemes or exterior surface. The Contractor will be notified of any such damage and City will not proceed with repair for 72 hours after notification to the Contractor to enable the Contractor time to inspect the damage if so desired. The Contractor shall be required to reimburse City for the full dollar cost to repair any damage to City's vehicles and/or property resulting from application or removal of the vinyl advertisement or any other activities of the Contractor. 3.2.6 Fleet Size of Buses. The City shall have sole discretion for assignment of buses for daily route use. Any reference in this document to any particular number or count of buses (e.g. the available fleet size) shall not be construed to carry any guarantee, expressed or implied, that any certain count of vehicles or of fleet size shall be available to the Contractor for advertising displays at any given time. Up to twenty percent (20%) of the available fleet may not be in service during peak service hours. City shall be the sole judge of such matters of safety, convenience, appearance, and the number and location of vinyls on any vehicles in servie 3.2.7 No Route Specific Advertisements. Advertisements should not be route specific and the Contractor shall not represent to potential advertisers that advertising can be route specific, 3.2.8 Self Promotion. The Contractor will not be allowed to engage in unpaid self promotion without prior written approval by the City. 3.2.9 Maintenance of Advertisements. The Contractor shall be solely responsible to keep and maintain all the vinyls placed on City buses in good condition, and will bear the full cost of any and all maintenance and repair of the vinyls. In the event the Contractor Production, August 10, 2004 CU ATTACHMENT Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 63 fails to satisfy the requirements of subsections C and D below, City may elect to repair, alter or remove the vinyl and to charge the Contractor for all 'labor and material costs for all such work. The Contractor agrees to pay City the cost of performing such work provided City gives the Contractor verbal notice, followed by a written fax notice, of the intent to repair, alter or remove the vinyl advertisement prior to actually undertaking such activity. 3.2.10 Placement of Advertisement. a. No vinyl will be allowed to interfere with any safety devices, lights, signals, or distinctive logos on City vehicles. This includes, but is not limited to, reflective materials, side directional lights, side reflectors and other features. In addition, vinyls cannot interfere with the normal utilization of fuel doors, vents, glazing, and other equipment installed in the various vehicles that may require regular preventive maintenance. b. Vinyls shall not be placed over any body moldings. Vinyl applied over body panel seams shall be sliced and tucked into those seams. c. Vinyls smaller than the allocated area shall be centered in the allocated area. d. Vinyl shall not be placed within one (1) inch of City's name or its logo. Upon approval by the City, Contractor may incorporate logo and/or provide a temporary logo. 3.3 DEFACED OR DAMAGED ADVERTISEMENTS The Contractor shall develop and implement a fully staffed maintenance, cleaning, repair or replacement program plus a Quality Control Program that insures that the advertising material installed on City vehicles is in good condition at all times. More particularly, the Contractor will be required to remove immediately,but no later than 24 hours from notice given by City, any graffiti on the vinyls not removed during City's regular, daily cleaning of the vehicles (generally vehicles are run through an automatic bus washer daily), and to make other repairs as necessary to vinyls that are otherwise damaged or defaced. Any vehicle bearing a vinyl that is damaged, defaced or marked with graffiti that is not repaired, corrected or removed by the Contractor as required above, shall be considered unsuitable for revenue service and the Contractor will be assessed per Section 3.4. 3.4 APPROVAL AND REVIEW OF ADVERTISEMENT 3.4.1 Approval of Advertising Material 1. Contractor shall not exhibit advertisement material, announcements or any other display for goods or services on City buses which, to the knowledge Production, August 10, 2004 Bus Advertising on Public Transit Vehicles ATTACHMENT Release Date: September 7, 2004 Page 64 of the Contractor, are any of the following: a. False, misleading, deceptive or relates to illegal activities, products, and/or services. b. Advocates violence or crime. C. Infringement of copyright, service mark, title or slogan. d. Defamatory or likely to hold up to scorn or ridicule a person or group of persons. e. States or implies the endorsement of a product or service by the City. f. Obscene (i.e:, patently offensive sexual material lacking literary, social, artistic and/or political value, that appeals to the prurient interest of a person of average sensibilities) or pornographic. g. Includes language that is obscene, profane, violent, or libelous. h. Promotes alcohol, pharmaceutical, firearms, weapons, and/or tobacco products. i. The advertisement contains political information or local or national controversial subject or subjects not in accordance with the Statutes, Ordinances and court decisions pertaining to the City service area. j. "Take One!" pads or similar devices used to distribute print information; k. Images, copy or concepts that denigrate public transportation; 1. Advertisements concerning political, social or religious, issues of any kind (including but not limited to advertisements for political candidates, legislative activities, or ballot measures); In. Advertisements for adult entertainment or adult businesses; n. Any advertisement which: i. Appears to make a personal attack on any individual, or upon any company, product, or institution or falsely disparages any service or product, or is defamatory in any respect; . ii. Might be interpreted to be offensive to any religious, ethnic, racial, or political group; iii. Might be interpreted as condoning any type of criminal act, or which might be considered as derogatory toward any aspect of the law enforcement profession; iv. Portrays acts of violence, murder, sedition, terror, vandalism, or other acts of violence against persons or institutions; or Production, August 10, 2004 C,lP -q TACHMENT Bus Advertising on Public Transit Vehicles Release Dater September 7, 2004 Page 65 v. Depicts nudity, or portions of nudity that would be considered as offensive, distasteful, pornographic, erotic, or obscene; vi. Might be interpreted as condoning any type of discrimination; or vii.Might be interpreted as condoning or soliciting any unlawful act or conduct. o. Advertisements which are in conflict with any applicable federal, state or local law, statute, or ordinance; P. Text, photographs, or any type of visual or tactual element that is associated with material which is prohibited within this policy, either as a whole or in part; q. Telephone numbers, internet web addresses, mailing addresses, that direct people to material that is associated with elements that are prohibited within this policy; and r. Gender specific personal hygiene products and services. S. Advertisement shall comply with the City's Advertising Policy in Section 6. Reasonable proof of clarification of statements contained in any advertisement, exhibit material, announcement or any other display may be required by the City before approval. The City may review its standards for displaying advertising material as outlined above and therefore the City's policy may change. However, any change will not modify the number or size of available advertising space as otherwise set forth in this contract. 3.4.2 Review of Advertisement. The City reserves the right to approve all advertising, exhibit material, announcements, or any other display and their manner of presentation. All advertising displays on any City vehicle by the Contractor must be acceptable to the City. All advertising must comply, with industry standards for public advertising with respect to good taste, decency and community standards. Contractor will immediately remove from the City's premises or vehicles, at the contractor's sole cost and expense, upon written demand of the City or its authorized representative, any display, signs, poster or other advertising material, which does not meet the requirements of Section 3.4.1. In the event that such matter is not removed within 24 hours of receipt of the written demand, the City's authorized representative may remove said material or display and Contractor will Production, August 10, 2004 GLP- �� FACHMENT J_ Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 66 pay any warehouse, storage rental or labor costs incurred by such action. The City or its authorized representative shall not in any way be held responsible or liable for any damage to the materials or displays so removed. The City may also elect to use the assessment for non-compliance set forth in Section 3.5 as a remedy for Contractor's delay in removal. The City shall not be held responsible for any such removal or any other consequence thereof. 3.5 ASSESSMENT FOR NON COMPLIANCE For any breach of the requirements or failure to satisfy the conditions of this Contract, City may impose an assessment in the amount of$100 per day per bus or incident. 3.6 OFFICE LOCATION 1. Contractor shall provide, off City premises, an office, warehouse, and operations facilities necessary to prosecute and complete the required work, within the Central Coast area during the term of this Contract and any extensions thereof. 2. Contractor shall provide an emergency phone number for City to reach Contractor in the case of an emergency situation. Contractor will respond to an emergency situation immediately upon the City's request. 3.7 LOCATIONS OF BUS FACILITIES City currently operates vehicles from it's bus yard 955 Morro Street, San Luis Obispo, California. 3.8 CONTRACTOR INGRESS AND EGRESS 1. Contractor shall check-in before entering and check-out upon leaving City premises or leased property with the appropriate operations personnel and on-duty maintenance supervisor. 2. Contractor shall provide its safety equipment and company identification badges for its employees to be worn at all times while on City property. 3. Contractor shall use a clearly identifiable vehicle for purposes of entering City property. All vehicles used to install, remove or maintain the advertisements on City buses shall display a business sign on the outside of each front door, both left and right sides, Production, August 10, 2004 CLp - < < _TTACHMENT__L __ Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 67 signifying the name of the company authorized to perform work on City buses. The sign may be of the magnetized type. No unidentified vehicle will be allowed on City or City leased property. Private vehicles displaying the proper signage will be allowed. 4. Unless otherwise agreed to by the City, the Contractor shall conduct all of its work on City buses between 9:00 p.m. and 4:00 a.m. on weekdays when City' s transit vehicles are not in revenue service, or between 8:00 a.m. and 5:00 p.m. on weekends. Contractor shall not interfere with City operations when installing, removing or maintaining ads. 3.9 CONTRACTORS WORK ON CITY PROPERTY 3.9.1 City Property. a. Contractor will provide all necessary parts, equipment, materials and/or tools required to perform work and will not store any parts, equipment materials and/or tools on City property.. b. City shall make every attempt to provide sufficient room between bus rows so as to allow for installation or removal of ads while buses are parked, at each applicable site..Indoor workspace is not available. City and Contractor shall agree on how best to resolve any problems arising regarding the location of buses at each applicable site. The Contractor shall perform the work in such a manner as to eliminate unnecessary noise, obstruction, hazardous conditions or other disturbances to City's operation or its personnel. During the performance of the work, the Contractor shall bear full responsibility for the protection and safety of the public, City personnel and City equipment and facilities. Any damage arising from the Contractor's performance of the work shall be repaired or remedied immediately at the Contractor's sole expense. c. Contractor shall make available the necessary number of employees to conduct the Quality Control Program required by Section 1.4.9.4. d. During the performance of the work under this Contract, the Contractor shall keep the working area in a neat and safe condition. The Contractor shall make arrangements to dispose of any waste generated by its performance or activities off City property. 3.10 CONDUCT OF EMPLOYEES Production, August 10, 2004 Ccs -�a A-L fACHMENT Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 68 Contractor shall insure that its officers, agents or employees while on City property or using equipment will conduct themselves in a safe and proper manner and if a complaint is made by City personnel, the Contractor will take such corrective measures as are necessary. If the Contractor does not take such corrective measures, City may deem the Contractor in breach of its obligations under the Agreement. Contractor further covenants and agrees that in the exercise of the rights and privileges granted hereunder its employees or representatives will not deface or damage the property of City or deposit or scatter any rubbish, debris, waste, litter or other material in or about said premises. The Contractor agrees to assume full liability and responsibility for actions on the part of its employees and shall pay for any clean up required to restore the property to its condition prior to entry by Contractor or as otherwise determined to be necessary by City, 3.11 WARRANTY 1. The Contractor assumes all responsibility for all of the materials and services provided under this Contract, whether those materials and services are provided by the Contractor,purchased ready-made, or provided by a subcontractor. 2. The Contractor warrants that all products and/or processes utilized in production; installation, maintenance, repair and removal of all exterior advertisements during the term of the Contract shall not damage the exterior finished surface City vehicles. In the event that damage occurs, the Contractor shall reimburse City for its actual costs of repairs (burden labor parts and materials) plus a 25% administration overhead fee. Prior to undertaking City will provide 72 hours notice to enable the Contractor time to inspect the subject damage if so desired. Production, August 10, 2004 tiTTACHMENT Bus Advertising on Public Transit Vehicles Release Dater September 7, 2004 Page 69 3.12 ADVERTISING DIMENSIONS Vehicle Fleet Purchase No.of Vehicle Curb Driver Date Make Vehicles Length Side Side 1982 Orion 3 30' Queen Queen 1986 Gillig 2 35' Queen King 1992 Gillig 2 40' Queen King 1994 Orion 2 40' Queen King 1997 Gillig 4 35' Queen Queen 2000' Gillig 3 40' Queen King 'Excluded from Contract. Participating in Art on Bus Program Exterior Bus Side Advertising Standards Size Dimensions Queen 30" x 88" King 30" x 144" Available Interior Advertising No. of 11" x 1T' Cards No. Purchase of Vehicle Curb Driver Date Make Vehicle Length Side Side 1982 Orion 3 30' 3 3 1986 Gillig 2 35' 3 3 1992 Gillig 2 40' 3 3 1994 Orion 2 40' 3 3 1997 Gillig 4 35' 3 3 2000 Gillig 3 40' 3 3 Production, August 10, 2004 ATTACHMENT Bus Advertising on Public Transit Vehicles Release Date: September 7, 2004 Page 70 3.13 GROSS ADVERTISING REVENUE In the event that advertising display time is prorated, the following shall be considered: The term "gross advertising revenue" means all monies, remunerations, and considerations of every kind received from the sale of advertising space by the Contractor in its operations as permitted under the Agreement resulting from this RFP plus the revenue equivalent from all advertising (which may not have been sold) appearing on the exterior bus side space provided by City. "Net advertising revenue" shall mean "gross advertising revenue" less the following: 1. Deductions from gross sales of commissions paid to advertising agencies or sales representatives other than Contractor staff, if any, at a rate not exceeding fifteen percent(15%) of gross billings; and 1. The amount of any sales, use, gross receipts, occupational and similar taxes (but excluding income and property taxes) directly imposed or levied by any public agency on the sale or display of advertising under the terms of the Agreement resulting from this RFP and paid by the Contractor. 2. Gross advertising revenue shall be calculated on the accrual basis, (i.e., amounts are prorated to the time periods, which correlate to the time periods during which the advertising is displayed). Deductions to determine net advertising revenue (e.g., commissions) shall be amortized over the term of the advertising. Production, August 10, 2004 AnAc PROPOSER'S LIST ADVERTISING SERVICES ON PUBLIC TRANSIT VEHICLES CITY OF SAN LUIS OBISPO 1. Barnett, Cox and Associates Phone: 545-8887 748 Pismo Street Fax: 545-0860 San Luis Obispo, CA 93401 2. S. Lombardi and Associates Phone: 544-9220 520 Higuera Street Fax: 5445627 San Luis Obispo, CA 93401 Att: Steve Lombardi 3. Viacom Outdoor Group Phone: 212-340-3526 275 Madison Avenue Fax: 212-338-9795 New York, New York 100116 Att: Lawrence Levine 4. Richter? Phone: 801-521-2903 280 South 400 West, Suite 200 Fax: 801-359-2420 Salt Lake City, UT 84101 Att: Peggy Lander Cu - (tto ATTACHMENT 3 CORRECTED CITY OF SAN LUIS OBISPO MASS TRANSPORTATION COMMITTEE MEETING MINUTES March 10, 2004 CALL TO ORDER Chair Bob Johnson called the meeting of the Mass Transportation Committee (MTC) to order at 2:35 p.m. on Wednesday, March 10, 2004, at the Planning Conference Room, City Hall, 955 Palm Street, San Luis Obispo, California. ROLL CALL Present: Bob Johnson (Chairperson), Deby Anderson (Vice-Chairperson) absent, Jean Knox,Jim Weir, absent, Denise Martinez, Andrew Ruben and D.Gregg Doyle. Alternates: Kathryne Howard, and Rob Nesbitt.. Staff: Austin O'Dell,Transit Manager Tim Bochum, Deputy Director Public Works Vacancies: Student ANNOUNCENTMENTS Mr. O'Dell announced that the Advisory Body Dinner will be held on March 11, 2004 at 5:30 p.m. at the Ludwick Recreation Center on Santa Rosa Street. He also introduced Chris Overby to the meeting. Mr. Overby is the new Transportation Assistant for the City. He formerly served as a member of the Bicycle Advisory Committee. PUBLIC COMMENTS None A-1 Approval of Minutes January 14, 2004 Kathryne Howard noted one correction to the minutes under Public Comments, second sentence, the intersection mentioned should read Tank Farm and Broad not Laurel and Johnson. The Committee concurred. The motion made by Chairperson Johnson to approve the minutes of the January 14, 2004 meeting as amended, seconded by Mr. Doyle,was carried unanimously. 1 lir �� MTC Minutes Al .LACHMENT 3 March 10, 2004 Page 2 of 4 DISCUSSION ITEMS: B-1 Discussion Items—Draft Marketing Plan 2004104 Mr. O'Dell stated the Ad hoc Committee had met and suggested offering a coupon with an attached survey included in utility bills. The Ad hoc Committee's emphasis for the creation of the coupon was to bring awareness to the.community about mass transit and allow them input into the program. The plan was divided into five sections and summarized by Mr..O'Dell; Executive Summary, Marketing Analysis, Marketing Strategies,Marketing Budget and Implementation Schedule. A summary of the Ad hoc Committee's recommendations are as follows: - Build Usage and Market Share for Transit Services - Implement service changes that reflect the community's input and input from the MTC - Provide passenger aids to assist core riders and assist trial riders Participate and/or coordinate transit fairs to promote the city bus service and inform the public - Build Community support for SLO transit and alternative modes of transportation - Enhance SLO Transit's awareness and image - Launch general advertising campaign to promote awareness of transit service - Implement a complementary "Try Transit" program primarily to promote awareness and to provide non-statistical data from potential and current riders - Increase Advertising Revenue - Hire an advertising firm to sell interior and exterior space on the local city buses. Mr. O'Dell concluded that there are no time constraints to approving the Marketing Plan. Mr. O'Dell suggested that staff prepare a Draft Marketing Plan for the MTC to review and approve before presenting to Council for approval (if required). Chairperson Johnson suggested to Mr. O'Dell that he add color or make the patterns of the figures in Attachment 1 different, as they were so similar it was difficult to read. Mr. O'Dell said he would. Mr. Bochum said it might be helpful to add 2003 figures and 2.004 figures as year-to-date figures. Mr. O'Dell agreed, as did the Committee. Mr. Doyle said that Cal Poly students and faculty had done a survey which concluded that a publication be created that shows all the bus routes from Cal Poly to downtown so that they don't have to look at five different bus route maps. Mr. O'Dell said he would gladly look at their data. There was some discussion about the "image" some people may have about riding the bus. Discussion ensued and Mr. Doyle stated that back east there doesn't seem to be any "stigma" attached to riding the bus or subway because of the high cost of parking in the cities. He said the "smart, right thing," was to focus on the product(mass transportation), rather than the image. He suggested such images as "getting there faster, cheaper," were images that should be marketed. 2 MTC Minutes ATTACHMENT--_-- March 10 2004 Page 3 of 4 After reviewing the proposed Bus Pass and survey, Chairperson Johnson asked if the coupon could be re- produced allowing people multiple "free rides." Mr. O'Dell said"No, the bus drivers will be trained on what the product looks and feels like and there will be an expiration date." Chairperson Johnson moved to approve the MTC Ad hoc Committee's advertising plan with the addition that should a citizen ask for a coupon/survey (that doesn't receive a water bill) they be given one, and with the stipulation that staff move forward with the planning of a three year budget, but that the Committee move ahead now to pass the one year budget as written. Mr. Nesbitt seconded and the motion passed unanimously. C-1 Action Items None INFORMATION ITEMS D-1 Transit Managers Report The Transit Manager presented the Preliminary Service Report. The report indicated an increase in ridership and overall system performance for the month of January 2004. MEMBER COMMENTS Ms. Knox asked the Committee if she could help "spread the word" about mass transit to business' for example,by telling members of the Chamber of Commerce. The Committee said yes! Ms. Knox inquired if"Run-A-Bout"program would be a better option to the disabled population. Ms. Martinez stated that riders can't be discriminated against because of their disabilities. In response, Mr. Bochum said a second#3 bus is sent out whenever one is 20 minutes or more late. Later,Ms. Martinez stated that when she was wheelchair bound she felt especially defenseless and needed extra care, and hoped that the Committee never eliminate service to the disabled.. She was reassured that would never happen. Mr. Doyle asked if there was service to Cuesta College and was told no by Mr. Bochum because it is out of City limits. When asked about service to the airport and trolley business, Mr. O'Dell stated that the buses no longer service the airport, and trolley ridership seems to be down, although it peaked during the holiday season as expected. Mr. O'Dell said a meeting will be held to market the Trolley more in conjunction with Art programs. 3 u , ( 9 MTC Minutes ATTAQ--ENT March 10, 2004 Pa eQ 4 of 4 Chairperson Johnson asked about the condition of the buses. Mr. O'Dell said two of the buses are due to be replaced in the near future. Ms. Knox commented on how clean the buses are and how attractive the art work is both in and outside of the buses. Mr. Nesbitt asked staff whether or not the City receives money from Developers for street/lighting/road work, etc. that come in to do huge construction projects. Mr. Bochum replied that yes, the City receives money for various things such as improvements at Los Osos Valley Road and Madonna Road from the contractors of Costco for example, but that the state puts limits on such funds. Mr. O'Dell said that Mr. Weir has resigned from the Committee (effective immediately) as he is moving out of the area. ADJOURNMENT Chairperson Johnson adjourned the meeting at 4:26 p.m. The next regular meeting is scheduled for May 12, 2004 at 2:30 p.m. Respectfully submitted, Kathleen Olsen Recording Secretary 4 r��J ATTACHMENT 8635 RESOLUTION NO. (1997 Series) WHEREAS, the City of San Luis Obispo desires to increase its revenues so as to offset operating losses; and WHEREAS, advertising on City buses is one method of increasing revenues. NOW, THEREFORE, BE IT RESOLVED, that the City hereby approves a policy allowing advertising on City buses,but not the City Volley,subject to City approved standards and conditions. Upon motion of Rzmero seconded by Williams and on the following roll call vote: AYES: Council nem s P.omero, williams, Rdoahnan, Smith and Mayor Settle NOES: idone ABSENT`. i7one The foregoing resolution was adopted this 18th day of Fhb--uarY 1997. ATTEST: Broe Gawf, City erk Mayor Allen K. Settle OVED` @ gen#,/eh mey C� rel ATTACHMENT. -- council j acEnaa Repout °." C I TY OF SAN LU IS OBISPO FROM: Michael D.McCluskey;Director of Public Works Prepared By: Harry Watson,Transit Manager SUBJECT: Advertising on SLO Transit Buses CAO RECOMMENDATION 1. Approve a resolution establishing a policy that allows exterior advertising on SLO Transit buses. 2. Authorize staff to negotiate an agreement for in-lieu advertising on the exterior of SLO Transit buses and return to Council for final approval. DISCUSSION Background: History The City has not advertised on its buses, bus benches or shelters in the past. Two years ago, the City Council denied a proposal to allow advertising on internally illuminated bus shelter signs. Although not directly stipulated, buses were assumed by staff to be covered by that Council action. Industry Standard(What are other trwisit operators doing?) The practice of advertising on transit buses has been common practice in other communities on the central coast for many years. Five Cities, Santa Maria, Santa Barbara and Monterey all allow bus advertising. For the past two years, San Luis Obispo Regional Transit has advertised on their buses and for the past year,Ride-On vans have carried advertising in San Luis Obispo. Current Status In the wake of the recent increase in bus fares, it is important to increase the advertising effort to attract new riders, replace those lost to the fare increase and maintain our current customer base. One effective way is to develop an in-lieu agreement with a local media provider offering to advertise SLO Transit on television in return for advertising on the buses. Because of the current financial difficulties facing City transit, staff has investigated various options to increase advertising of the system. Staff has determined the in-lieu advertising value to be approximately$3000 per month. ATTACHMENT Council Agenda Report-Advertising on SLO Transit Buses Page 2 Proposal • Allow in-lieu advertising on the bus exteriors. • No advertising on the trolleys, nor on bus interiors. Exterior Bus Advertising As mentioned above, previous Council action denied advertising on internally illuminated bus shelters. Staff believes there is and should be a distinction between exterior bus advertising and bus shelter advertising: Exterior bus advertising is mobile by its very nature, so does not pose a lasting impact on any location in the city. Shelter advertising is stationary. Exterior advertising on the buses will be constrained to the rear two side windows of the bus, preventing the buses from being turned into rolling billboards. Shelter advertising uses billboards. Exterior bus advertising does not pose an issue of sight distance obstructing motorists clear view of the road. Shelter advertising could pose a sight distance problem Exterior bus advertising is not internally illuminated impacting the area around it. Shelter advertising is illuminated during all periods of darkness. Thus staff feels there is merit in bringing the issue back to Council for separate consideration. The In-Lieu Agreement An in-lieu agreement would be consummated trading the value of exterior bus advertising for a Eke value of television advertising. The basics of any agreement would have the following: * The ON controls the sJ placement and content of all ads(to the extent allowed by law). * The rear most two side windows and the rear window on those buses that have rear windows would be used for advertising (see attachment 1). This would maintain the identification of the bus, as the logo would not be covered tip. * Perforated vinyl signs would be used to allow riders to see out while the sign presents a near opaclrie appearance from the outside. * The advertiser would be responsible for the cost of prorhiction and installation of the signs * The term of the agreement would be one year. Council Agenda Report-Advertising on SLO Transit Buses ATTACHMENT , Page Staff has been contacted by three potential advertisers (two TV stations and one phone company) and has tentatively(dependent upon Council action) negotiated an annual in-lieu trade amount of$36,000 with a network affiliate television station, CBS-12. The $36,000 value in spot air time to promote SLO Transit would produce 720 runs in a year. (Followup calls with the remaining TV station and the. phone company were not productive.) Why an In-Lieu Agreement rather than selling bus ads for cash? An in-lieu agreement allows for a much greater advertising return for SLO Transit ($3000 per month). In-lieu enjoys a three to one advantage over cash sale. The option to the in-lieu agreement into sell the ad space for cash. Staff estimates the cash value to be $1000 per month for our fleet (based on staff's experience with past operations). The selling,billing and collecting of revenues is labor intensive and would most likely best be performed by a professional marketing firm on a commission basis, thus decreasing cash revenue. Regional Transit does not do direct cash sales, but has been successful using in-lieu agreements. Much larger transit operations such as Santa Barbara, Fresno and Sacramento do sell their advertising for cash. In either case, the sale of ad space or a reciprocal agreement, staff would have the authority to negotiate the most beneficial terms for the City. Interior Bus Advertising Interior bus advertising does not enjoy'the leverage necessary to make it attractive as an in-lieu option to an advertiser. Interior advertising value has much less economic value due to the size of the audience it impacts. Interior bus advertising could best be sold for cash and, as mentioned above, would be best solicited, sold and invoiced by a professional marketing firm. Estimates are that the gross income from interior advertising for cash would be $3000 to $5000 per year if all "spots" were in use all the time, less any commission_ Although this revenue is extremely small, the MTC, in its deliberation, recommended exterior advertising but wanted additional research on interior advertising. Staf, however is not recommending this option since the staff time required to manage interior advertising renders the"net profit"negligible. Current SLO Transit Advertising The total current marketing budget is$12,000. It is currently used as follows: • TV advertising for spring and fall promotion • Radio advertising for winter promotion • Special event advertising in the print media The in-lieu agreement represents an expansion of that effort by three times. Staff would propose to use that portion of the current budget used for TV to lease professionally produced, higher grade TV spots customized for SLO Transit. These spots would replace the locally produced spots we have used in the past. CLO Council Agenda Report-Advertising on SLO Transit Buses ATTACHMENT Page 4 Advertising on the Trolley The trolley does not lend itself to external or internal advertising due to the small window size, unless the metal logo area of the trolley sides were used. The primary green trolley does not have interior ad space designed into it as do the buses, but the interior side ceiling panels may provide a suitable surface for interior advertising. Modification would be necessary to allow interior ad space. The concept of reserving interior advertising on the trolley to merchants in the downtown core was discussed by the BIA Board and received a favorable response. However, staff feels any potential monetary gain to the system received via advertising revenue would be more than offset by: a) cost of modifying the green trolley to accept interior ad space; and b) a general overall degradation to the character of and what the trolley represents to the downtown and the City in general, and therefore this option is not recommended. CONCURRENCES The Mass Transportation Committee on December 19, 1996 voted unanimously to support bus advertising. The'Committee concurred that advertising on the buses should include both exterior and interior advertising. A copy of the minutes of that meeting is attached. FISCAL EMPACT There is no Fiscal Impact, as no funds would be received or expended with an in-lieu agreement for bus advertising. A greater amount of higher quality advertising for SLO Transit would result. ALTERNATIVES 1. Do nothing. Marketing for SLO Transit will continue as it is currently programmed, with a mix of print, radio and television, using short spot ads tied to special events. As in the past (and with anyin-lieu),the City will continue to pursue Rideshare participation in our ad campaigns to extend the number of dollars available for the effort. 2. Only advertise on the exterior of the buses. 3. Pursue bus advertising but advertise for cash, using a commission agent. A Request for Proposals would be developed and issued to secure a commission agent to solicit potential advertisers on SLO Transit buses. 4. Only advertise on the interior of the buses. Attachments: bus schematic resolution MTC minutes ,mm cn9ss Morro/*S/g ,PS bind) C� ATTACHMENT i J i ^ I Q I� -- w cq3ui¢ I �l u ° oA 0 Oddd \ O \ O cA N� O N ° o 0 0 o e � 0 0 n -- - -- cis ,DQ ATTACHMENT RESOLUTION NO. (1997 SERIES) A RESOLUTION ESTABLISHING A POLICY THAT ALLOWS ADVERTISING ON SAN LUIS OBISPO CITY TRANSIT BUSES WHEREAS, the City of San Luis Obispo desires to allow advertising on the outside of City buses;and WHEREAS,the City of San Luis Obispo does not desire to allow advertising on the City trolleys;and WHEREAS, the City of San Luis Obispo does not desire to allow advertising on the interior of City buses. NOW, THEREFORE,BE IT RESOLVED,that the City hereby approves a policy allowing in-lieu advertising on the outside of City buses. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this—day of 11997. ATTEST: Bonnie Gawf, City Clerk Mayor Allen Settle APPROVED: Jeff Jorgensen, City Attorney t+ITACHMENT 4- CITY CITY OF SAN LUIS OBISPO MASS TRANSPORTATION COMMITTEE MEETING MINUTES THURSDAY, DECEMBER 19, 1996 CALL TO ORDER: The Mass Transportation Committee Was called to order at 10:05 a.m. on Thursday, December 19, 1996 in the Planning Conference Room of City Hall, 990 Palm, San Luis Obispo. ROLL CALL: Present: Doris Highland Jack Pisano Mike Spangler Kevin Rice Randell La Vack Jacquie Paulsen Harry Watson Absent: Ken McCracken and Walter Rice Staff: Transportation Technician Reinie Jones Traffic Engineer Deb Larson Also present were Bob Roundtree, Cindy Campbell, and Dan Herron. PUBLIC COMMENT: There were no public comments at this time. COMMITTEE COMMENTS: Vice Chairwoman Highland announced that Chairman McCracken will not be returning and a new chairperson needs to be elected. Ms. Paulsen nominated Mr. La Vack as Chair of the MTC. The election of a new chairperson will be added to the next agenda for action. ACTION ITEMS: 1. APPROVAL OF THE MINUTES: ATTACHMENT The Mass Transportation Committee Meeting Minutes of September 18, 1996 were approved as presented. 2. APPROVE THE PURCHASE OF REPLACEMENT BUSES FUELED BY DIESEL: Mr. Watson stated there is an approved grant to purchase up to three buses. The number of buses purchased will depend on how much grant match can be located.. He is asking that the Council relieve the MTC from the mandate to buy CNG buses and to allow latitude for advanced design diesel buses. When the policy was established, there was quantum difference between diesel technology and CNG from an emissions standpoint. If there is a go ahead from the MTC and Council, we will be arranging to tag on to a larger purchaser and the buses can be customized for our particular needs. Mr. La Vack doesn't want to see any policy changes towards assigning the importance of moving towards alternative fuel buses. He noted the staff report is missing pages. He feels there should be a rebuttal position for the Californians Against Hidden Taxes. He is not opposed to staffs recommendation, but he would like to see less emphasis in the staff report relative to downgrading CNG buses. He doesn't want to see the MTC push this issue too far and sour the City on acquisition of CNG buses.. Mr. Rice agrees with considering diesel on its own merit as far as being cleaner. He doesn't feel the purchase of up to three buses is going to significantly impact our pollution. Ms. Paulsen concurred with Mr. La Vack concerning the downgrading of CNG buses in the report. We've been trying to get the buses but we haven't been able to and diesel has improved. We need to go forward with this, but use it on its own merit. Mr. Rice noted we have experienced problems with our CNG fleet. Mr. Herron stated SLOCOG is not changing its policy. They continue to encourage and promote alternative fuels. Ms. Paulsen moved to go forward with the purchase of replacement buses fueled by diesel. The motion was seconded by Mr. La Vack and unanimously approved. 3. APPROVE ADVERTISING ON SLO TRANSIT BUSES: Mr. Watson stated when the City was faced the funding issues discussed at the last meeting, start was charged with several goals. This item deals with a marketing issue for San Luis Obispo Transit. With the fare increase, we will be losing ridership and this is'a timely opportunity to use marketing efforts to recapture some of the losses and attract new riders. This item would recommend to the Council a change in policy to allow advertising on the transit system.. There are media in the community who are willing to pay to advertise on SLO Transit. The media would be giving payment in the form of C� , A . Al TACHMENT 4- advertising in their media. Staff is proposing to use perforated vinyl see through signs which would be dedicated to the rear two side windows for advertising. The rear windows of four buses was also offered. To the person on the outside, it is an opaque sign. To the people inside the bus, it is a clouded view. It is kind of like looking through a veil. Additionally, this advertising doesn't wipe out the sides of our buses or our logo. Vice Chairwoman Highland asked if there is interior advertising. Mr. Watson stated currently signs inside the buses are transit related and public service announcements. Mr. Watson.stated this is a timely issue. The need is here for more marketing and we can also get a three or four return on our investment. Mr. Rice would like to move forward with this item, with the ability to review it in one year. He is concerned about the backs of the buses being too dark and encouraging trouble. He is also concerned about the drivers and the potential necessity for additional interior lighting. Mr. Pisano has had experience with window advertising and feels additional lighting is not necessary. Mr. Roundtree asked if the Police Chief has okayed the use of advertising and if the audience attracted by the advertising are already riding the bus. Mr. Watson stated this has not been run by our Police Department. He is taking his information from periodicals he has read. We operate with the interior lights on all the time. Mr. Watson stated the advertiser will offer us 536,000 worth of S50 30-second ads in one year. Mr. Watson displayed a video of professional commercials to the Committee. Mr. Watson stated if this on-bus advertising were passed by the MTC and the Council, . this would free up the dollars that we normally buy airtime with. We could use our marketing budget for the rental of the video taped commercials. Mr. Rice supports this item. ,4 Mr. Rice moved to approve the advertising as drafted by staff. The motion was seconded by Mr. La Vack and unanimously approved. Ms. Paulsen suggested recommending interior advertising to the Council. She would like to have control over what is advertised. ATTACHMENT 4 Mr. Watson stated any advertising will be controlled by the City. Vice Chairwoman Highland asked staff to research interior advertising. 4. APPROVE THE SERVICE REQUEST FOR PROPOSAL: Mr. Watson stated we've had a three-year contract with Mayflower Contract Services and the Council elected to extend it for two additional years. We don't have the latitude to extend the contract.further. Itis timely to see what service providers are out there who are willing to bid on operating our transit. We are being innovative.and flexible in the RFP which will hopefully result in savings. All of the responsible recipients from last time will be invited and we're looking for some new ones. Ms. Paulsen asked if the RFP is available for review. Mr. Watson has the RFP in his office and it is available at any time. Mr. La Vack asked if this type of contract is in existence in other transit systems. Mr. Watson doesn't believe so. We're trying to open the doors to new ideas. Mr. Herron distributed an informational memo to the Committee. Mr. Watson added the City is very motivated to get a cost savings contract because of the funding dilemma. Mr. La Vack feels this make economic sense. He is concerned about the supervision and management of the meshing of the systems and personnel. Mrs. Jones stated the concept of the new contract is to only contract out for the bus driving. Everything else is going to be done in-house. Mr. Watson noted the office staff support would also be by contract. Mr. La Vack and Ms. Paulsen would like to see more information relative to this issue. Mr. La Vack moved to support the concept for the Service RFP. The motion was seconded by Ms. Paulsen and unanimously approved. Mr. Watson informed the Committee he will include in the Council report that the MTC has not seen the final document, but it will be made available. If any members of the Committee has a problem with the document, they can make their feelings known at,the Council hearing. ATTACHMENT - 5. APPROVE THE GOALS FOR SLO TRANSIT FOR THE UPCOMING BUDGET PERIOD: Mr. Watson stated we don't have the dollars to take on anything new and most of the goals are continuations. Mr. La Vack feels with the fiscal situation being up in the air, a long-term funding source needs to be researched. This should be a high priority goal of the MTC. We should also be looking at local funding options. Ms. Paulsen suggested adding to 47, "Continued search for funding sources." Mr. La Vack moved to approve the modified goals for the upcoming budget period. The motion was seconded by Mr. Rice and unanimously approved. INFORMATION ITEMS`. 6. UPDATE ON THE MULTI MODAL TRANSFER CENTER PROJECT: Mrs. Jones stated she has been working on the Amtrak location. The appraisal and environmental assessment are complete. There is work being done on a concept design for the site. The Division of Rail would like to add more parking to the site and we are also looking into bicycle and pedestrian facilities to connect with the train station from the Multi-Modal Center. The stakeholders for the Downtown Super Stop had a meeting and have not yet decided on an exact location. Mr. Roundtree asked if there's been discussions with Greyhound rewarding the Amtrack site. Mrs. Jones stated this is being looked into by SLOCOG. Mr. Watson stated Greyhound owns their site and it's next to the freeway. They do not seem to be interested. Mr. Watson added hazardous materials were identified on the site. A letter from the County was received allowing the continuation of the project. 7. RECEIVE THE OPERATIONS REPORT: Mr. Watson reviewed the report with the MTC and stated ridership continues to go up. It will be interesting.to watch the non Cal Poly ridership numbers in January when the fares increase. FURTHER COMMITTEE COMMENTS: Ai _ACHMENT !� Mr. Rice noted the ASI at Cal Poly putting together a transportation committee and he will be a member. ADJOURNMENT: There being no further business to come before the Committee, the meeting was adjourned at 11:44 a.m. to the next meeting of the Mass Transportation Committee, time and date to be announced. Respectfully submitted, Leaha K. Magee Shorthand Reporter Attachment 5 RESOLUTION NO. (2004 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ALLOWING EXTERIOR ADVERTISING ON CITY TRANSIT VEHICLES AND MODIFYING RESOLUTION NO. 8635 (1997 Series) WHEREAS, the City of San Luis Obispo desires to increase its transit revenues so as to offset operating losses; and WHEREAS, advertising on the exterior and interior of City buses is one method of increasing revenues for use in offsetting marketing and advertising costs. NOW THEREFORE, the City Council hereby modifies its existing exterior advertising policy on City transit vehicles, except the trolleys in Resolution No. 8635 (1997 Series), to allow advertising on the buses below windows and between the wheel wells. FURTHER, it shall be the responsibility of the Chief Administrative Officer (CAO), or his/her designee, to negotiate final location and approval of advertising space on each vehicle and review proposed advertising media to insure that appropriate standards and conditions are upheld. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was adopted this_day of 2004. ATTEST: Mayor David F. Romero City Clerk Audrey Hooper Approved as to Form: Ci At ey Jonathan P. Lowell hAlcouncil agenda repores\2003 agenda reporMtransportation and development review @ochum)Uransit(o dell)�car bus advertising-resolutionAm