Agenda Item No.: G.2.a.
Edmonton Transit Advertising Contract G
Recommendation: Report 2
That the October 25, 2005, A tendering process was conducted in a
Transportation Department report September 1999 to award a new transit
2005TS1267 be received for advertising contract.
information. Based on the highest minimum
guaranteed annual revenue, and a strong
Report Summary supporting business case, Pattison
This report provides a response to an Outdoor Group was awarded a 10-year
administration inquiry regarding a request contract with an optional mutually
for a copy of the Edmonton Transit agreed to 5-year addition.
Advertising Contract – Pattison Outdoor The Pattison contract provides for
Group and a summary of the cost benefits of significant revenue improvements
the contract. compared to the previous transit
advertising agreement. The City
Previous Council/Committee Action
receives guaranteed minimum payments
At the January 10, 2006, Transportation that escalate over the 10-year contract
and Public Works Committee meeting, period.
the request to speak by C. Roubekas was Revenues to the City are protected with a
approved, and the October 25, 2005, performance bond of $1,020,000.
Transportation and Streets Department The contract also provides for up to 750
report 2005TS1267 was postponed to the new accessible shelters, 2000 new and/or
February 28, 2006, Transportation and refurbished benches, and up to 66 new
Public Works Committee meeting. advertising posters. Title to all shelters,
At the November 8, 2005, benches and posters revert to the City at
Transportation and Public Works the end of the contract.
Committee meeting, the October 25, Under the terms of the contract the City
2005, Transportation and Streets retains the right to 10 percent of all the
Department report 2005TS1267 was advertising space for use by Edmonton
postponed to the January 10, 2005, Transit to support its marketing
Transportation and Public Works activities. Pattison has also agreed to
Committee meeting. waive posting fees that would normally
At the September 13, 2005, City Council be charged to Edmonton Transit for the
meeting, the following inquiry was made installation and removal of its
by Councillor M. Nickel: advertising.
“I would like Administration to There are no costs to Edmonton Transit
provide a copy of the Edmonton with respect to the contract other than for
Transit Advertising Contract, the maintenance and cleaning of the new
between the City of Edmonton transit shelters and advertising frames;
and Pattison Transit Group, to however, these costs are offset by the
the Transportation and Public additional revenues received from
Works Committee, as well as a Pattison Outdoor Group.
summary of the cost benefits of
Routing: Transportation and Public Works Committee
Delegation: R. Millican/K. Koropeski
Written By: P. Waisman
October 25, 2005 Transportation Department
File: 2005TS1267 (Page 1 of 2)
Edmonton Transit Advertising Contract (M. Nickel)
If the Committee wishes to review the
full version of the Edmonton Transit
Advertising Contract, it will be available
for consideration in private pursuant to
Section 16 of the Freedom of
Information and Protection of Privacy
Act. The Edmonton Transit Advertising
Contract between Pattison Transit Group
should remain confidential to protect
Pattison’s competitive position.
Others Approving this Report
J. Tustian, General Manager, Corporate
(Page 2 of 2)