title
Amend Contract for Transit Shelter Advertising and Maintenance
end
|
DESCRIPTION: Request Board authorization to amend contract to Vector Media, LLC for transit shelter advertising and maintenance |
AGENDA NO: Click or tap here to enter text. |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to amend a contract with Vector Media, LLC, formerly Laurel New Orleans, LLC, to extend term seven months and thereafter month-to-month and complete shelter repairs downtown in an amount not to exceed $250,000 using fees owed to RTA from advertising revenue.
end
ISSUE/BACKGROUND:
body
The use of advertising to build and/or maintain shelters, kiosks and public information stations is a common industry practice. In order to accelerate the installation of shelters primarily at bus stops throughout the RTA system, RTA procured and contracted with Laurel New Orleans, LLC in 2008 to install and maintain 100 shelters whose costs would be offset with advertising revenue on shelters in permitted locations for an initial term of ten (10) years. That contract was amended four times during that time as approved by the Board of Commissioners in Resolutions 09-047, 10-051, 13-031, and 18-070. These amendments significantly expanded the number of shelters for installation using additional funds from RTA and including a mix of shelters for both advertising and non-advertising. Change order #3 specifically extended the contract extension date to August 24, 2024 and updated the contract provision for maintenance (Section 9: Maintenance) to clarify its application to include “cleaning, repairing or replacement of any parts on all shelters”. During this time Laurel New Orleans, LLC was acquired by Vector Media, LLC which assumed the contract. Vector Media, LLC also has a separate contract with RTA for advertising on shelters, bus and streetcar vehicles which is also reached the end of its term and transitioning to month-to-month.
Going forward, staff intending to combine the services of both contracts for advertising on all eligible assets including vehicles, shelters, streetcar stations and future passenger facilities as well as maintenance of transit shelters for cleaning and repairs. The development of this solicitation through execution of a new contract is estimated to take six (6) to nine (9) months.
Additionally, there is a significant need to address a growing backlog of cleaning, repairs and other maintenance issues at shelters in the downtown area. This backlog is partly attributed to the Downtown Development District halting its cleaning and basic maintenance of shelters in 2023 and a shortage of RTA staff to take on the added work. The shelters downtown also have some of the highest ridership, use, and exposure to abuse due to the concentration of jobs and entertainment in the area. The estimated cost to complete these cleaning and repairs is $250,000.
end
DISCUSSION:
In order to continue to generate revenue from existing permitted shelters and complete repairs to shelters in the downtown area in a timely manner, the staff recommends extending the current contract seven (7) months to March 31, 2025. This will not only allow RTA to continue to earn revenue and staff time to complete a new contracting process, it will also allow the repair costs to be offset by the advertising revenue which is expected to spike during the major events of the Super Bowl and Mardi Gras in early 2025. Additionally, RTA is set to receive $125,000 from the State of Louisiana through GNO Inc, the regional economic development non-profit, to support beautification downtown specifically at shelters which will further offset costs. To account for any potential delays in the procurement/contracting process, the amendment will also include provision to convert the contract to month-to-month bases following March 31, 2025 until such time as either party terminates the contract by issuing the 30-day prior written notice to the other party.
FINANCIAL IMPACT:
This is a no cost extension. As a result of the increased offset for added shelter repair, only $75,000 - $125,000 of Net Payment (Fee minutes repair and maintenance cost) during the extension down from an estimated $200,000 - $250,000.
NEXT STEPS:
Following authorization, staff will execute Change Order #5 with Vector Media specifying the new term date and continuation terms along with specified added cleaning and repair work.
ATTACHMENTS:
1. Resolution
2. Contract and Change Orders 1-4
3. Quote for additional cleaning and repair work
Prepared By: Dwight Norton
Title: Chief Planning & Capital Projects Officer
Reviewed By: Tracy Tyler
Title: Chief Legal Officer
Reviewed By: Angele Young
Title: Director of Marketing
11/11/2024
Lona Edwards Hankins Date
Chief Executive Officer