Title
Airport Advertising Contract Amendment
Action
Action:
A. Approve a contract amendment with Intersection Media, LLC (formerly Titan Outdoor, LLC) for an advertising concession agreement for a five-year term, and
B. Authorize the City Manager to renew the contract for one, five-year term, consistent with the City's business needs for which the contract was approved.
Body
Staff Resource(s):
Brent Cagle, Aviation
Haley Gentry, Aviation
Explanation
* On July 22, 2013, the City Council approved a five-year advertising concession agreement with Intersection Media, LLC (formerly known as Titan Outdoor, LLC)(Intersection) to operate and manage the Airport's on-property advertising program.
* Intersection will design, develop, and maintain income-producing advertising contracts for assigned advertising locations throughout the Terminal. Intersection is also financially responsible for any capital investment required to outfit an assigned location.
* Aviation is currently in the midst of a Terminal renovation project, which will continue over the next three years, and will require Intersection to immediately provide capital investment as well as provide consultation regarding optimal advertising locations.
* The City Manager's Office approved a waiver of solicitation on October 31, 2017.
* Based on Intersection's experience, performance, and its commitment of an additional $1.1 million in capital improvements, Aviation is recommending an extension of five years, with the option to extend the agreement for an additional five years.
* A five-year term with the option for an additional five years is industry standard in Airport advertising agreements due, in part, to allowing advertisers sufficient time to amortize capital investments.
* This agreement generates revenue for the Aviation Department.
Airport Concessions Disadvantaged Business Enterprise (ACDBE)
The ACDBE participation goal is established at 15.00% of the total expenses of goods and services for...
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