Title
Transit Advertising Sales Representative Services
Action
Action:
Approve contract amendment #3 for $1,250,000 to the contract with Section 140 LLC for transit advertising sales representative services.
Body
Staff Resource(s):
Brent Cagle, CATS
Elizabeth Presutti, CATS
Catherine Kummer, CATS
Explanation
* Section 140 LLC, an independent contractor, provides services involving the management and execution of the Charlotte Area Transportation System's (CATS) advertising sales for transit-related assets.
* On July 15, 2022, the city entered into a one-year contract for $202,000 with Section 140 LLC for transit advertising sales representative services.
* On April 4, 2023, the parties agreed to contract amendment #1 to increase the contract amount by $110,000 and to amend the scope of services, extend the term of the contract by the first of four one-year renewals, and incorporate certain other changes.
* On May 23, 2024, the parties agreed to contract amendment #2 to increase the contract amount by $180,000, amend the scope of services, and extend the term of the contract by the second of four one-year renewals.
* This action will increase the contract amount by $1,250,000 to fund the remainder of the contract terms through June 30, 2027.
* Key responsibilities include identifying potential advertisers, building and maintaining relationships with local and national clients, and creating customized advertising solutions that align with the CATS Advertising Policy.
* The goal of this contract is to maximize revenue for the city's transit system while enhancing the visibility of businesses within the community, ultimately contributing to the city's economic development.
* The services provided by Section 140 LLC have resulted in increased revenues from advertisements. With the prior contractor, CATS earned $1.5 million in revenues from advertisements in fiscal year (FY) 2019, the highest producing pre-pandemic year. With Section 140 LLC, CATS's revenues from...
Click here for full text