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Amendment/Extension to the Exclusive Right to Market Advertising Space on RTA Buses, Streetcars, Ferries, and Ferry Terminals
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DESCRIPTION: Requesting Board authorization to amend and extend the advertising contract with Vector Media (previously Laurel Communications) |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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To authorize the Chief Executive Officer to amend the contract to reflect the merging of Laurel Communications and Vector Media. All payments to contract should be made payable to Vector Media.
To amend the contract to allow Vector Media, subject to necessary permits and approvals, to purchase and install two (2) information/wayfinding/advertising digital kiosks at locations agreed upon by both parties at a total cost not to exceed $150,000.
To extend the contract term to December 31, 2024. The extension of the contract will cover the period between December 31, 2022, through December 31, 2024.
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ISSUE/BACKGROUND:
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To avoid agency revenue disruption through the sales of advertising, the RTA needs to extend the contract term which ends on December 31, 2022 to December 31, 2024. The agency intends to procure the contract before this extension expires.
Additionally, the RTA would like to improve ferry rider communications at both the Canal and Algiers ferry terminals by installing information/wayfinding/advertising digital kiosks at each location. These kiosks will help the agency better communicate fares, schedules, payment options, and special event schedules to riders. The kiosks will also provide paid digital advertising opportunities for interested parties which will increase agency advertising revenue. Vector Media will purchase, install, and facilitate the sales of digital advertising on the digital kiosks. The estimated cost for two (2) kiosks includes but not limited to equipment, permits, and necessary utility connections is $150,000.
Finally, the contract extension/amendment should reflect that since the execution of the original contract Laurel Communications, the entity has merged with Vector Media and as such payments and correspondence will be with Vector Media going forward.
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DISCUSSION:
Extending the contract is necessary to allow RTA to continue to market advertising space on RTA Buses, Streetcars, Ferries, and Ferry Terminals and generate revenue under this line of business. Further, improving ferry rider communications is critical as the agency expects increased ridership and the need
FINANCIAL IMPACT:
Subject to receipt of the necessary permits and approvals, Vector agrees to purchase and install, at locations to be agreed upon by the parties, two (2) information/wayfinding/advertising digital kiosks at a total cost not to exceed $150,000. The annual agency marketing budget will be utilized to reimburse the costs of the purchase and installation of the digital kiosks and the account is the following account # 1.1126.
NEXT STEPS:
Upon board approval, staff will proceed to extend and amend the Vector Media (previously Laurel Communications). Vector Media, in consultation with RTA staff, will immediately begin the process purchase kiosks to have the kiosks available as soon as possible for rider information and advertising sales.
ATTACHMENTS:
1. Current Contract with Laurel Communications (now Vector Media)
2. Vector Media Transit Contract and Kiosk Request
3. Board Resolution
Prepared By: Ana Rodriguez
Title: Marketing Coordinator
Reviewed By: Katherine Felton
Title: Chief of Staff
Reviewed By: Alex Wiggins
Title: Chief Executive Officer
12/1/2022
Alex Wiggins Date
Chief Executive Officer