RFP_Bus Advertisement ReinitiateMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Reinitiate Bus Advertisement, Request for Proposal
DATE: February 24, 2010
Transit Manager Jon Rodocker recommends City Council rejection of the only bid in
response to a Request for Proposal for bus wrap advertisement and authorize a re-
initiate of the Request for Proposals.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jon Rodocker, Transit Manager
--_______
Michael C. Van Milligen
Dubuque
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1
2007
Masterpiece on the Mississippi
To: Michael C. Van Milligan, City Manager
David Heiar, Economic Development Director
From: Jon Rodocker, Transit Manager
Subject: Reinitiate Bus Advertisement, Request for Proposal
Date: February 16, 2010
Dubuque
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All Amedea City
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2007
INTRODUCTION
The purpose of this memorandum is to request the opportunity to re- initiate the Request for
Proposals process for KeyLine Transit bus wrap advertisement. We ask the approval of City
Council to go forward with this second Request for Proposals.
DISCUSSION
KeyLine Transit had received one bid from Houck Transit Advertising during the initial Request
for Proposals. The bid only outlines that 50% of the Annual Income from the advertising would
be payable to the City of Dubuque with a minimum guarantee of $7,200.00 per year. It does not
specify any details regarding costs. The minimum guarantee remains the same throughout
each year of a proposed five year contract.
This bid does not offer KeyLine Transit and the City of Dubuque the maximum level of revenue
that could be generated. In addition, we have received phone calls from other interested
vendors, including McCullough Creative from Dubuque, and Atmospheres from the Quad Cities.
KeyLine management believes there are better prospects, and asks that the City of Dubuque
reject the single bid received.
ACTION STEP
The action requested is that the City Council rejects the bid from Houck Transit Advertising; and
authorizes the RFP process for bus wrap advertisement on the KeyLine Transit fleet.
2 -22 -2010
Mr. Dave. Heiar
Dubuque Transit
Dubuque, IA.
Dear Dave,
Thanks for your time on the phone on Friday regarding the transit advertising contract. As mentioned on the
phone, I would like you to look at a number of things when making your decision about the award. Houck
Transit Advertising has over 90 years of experience in managing advertising programs for medium to small
transit systems and hope that you would consider our recommendations.
Houck Transit Advertising has paid Keyline Transit System approximately $11.000.00 to $13,000.00 per
year for the last 2 years which represents 50% of the total advertising revenue. We expect to continue those
numbers for the next year and to grow it over time. Our service includes sales, marketing of the media,
negotiating contracts, producing artwork for the advertiser and also producing the signs, installing and
removing the signs, billing of the advertising space, and collection of the monies. The 50% split is the
common split nationwide for transit systems of this size and is based upon what is billed —not what is
collected.
The advertising industry as a whole, and transit advertising specifically, has seen a 20% to 30% drop in ad
revenue nationwide because of the economy. In addition, we have seen the larger transit advertising
companies going back to their transit systems and renegotiating their minimum guarantees and in some cases
going to a straight percentage with no minimum. Houck Transit Advertising has fulfilled all of our contract
obligations to every transit system in full during this trying time.
It is EXTREMELY important for transit systems to insure that the company it contracts with has an exact
understanding of the inner working of a transit system so the advertising program operates successfully and
quietly and without controversy. Over the years, we have seen inexperienced individuals and companies
approach transit systems with grandiose promises of a lot more money but have no past experience to back
up their claims. Additionally, we have seen these inexperienced contractors cause problems with placing
questionable advertisers on, place ad copy that causes problems, and have frequently seen transit systems not
be paid on time —or at all.
Houck Transit Advertising has extensive experience in sales, pricing and packaging the media to insure that
it is affordable to the local merchants as well as regional and national advertisers.
In conclusion, Houck Transit Advertising does have its finger on the pulse of the industry as well as the
Dubuque market. Please call me if you have questions or would like to discuss this further.
Sincerely,
Tom Houck
Houck Transit Advertising
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TRANSIT AdVERTis INq
wwwhouckads.com
4610 N. Milton St., St. Paul, MN 55 126 (651) 488 -8933