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 the agreement. Intersection Media, LLC has agreed to utilize certified ACDBE firms in order to meet or exceed the established goal for the duration of this Agreement. The obligations of both City and Intersection under this Agreement shall be subject to the provision of all federal regulations relating to the ACDBE program.
Fiscal Note
Funding: Revenues generated from this agreement will be deposited in the Aviation Operating Fund