Contract for Transit Advertising by MaryJeanMenintigar


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									                                                                        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
           the contract.”

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
   Services Department

                                            (Page 2 of 2)

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