Subject
title
Amendment to Agreement for Transit Advertising Revenue Program
overview
Overview
On August 28, 2023, the Orange County Transportation Authority Board of Directors approved an agreement with Vector Media to sell, place, and maintain advertisements on the interior and exterior of the Orange County Transportation Authority’s revenue vehicle fleet, which includes OC Bus, OC ACCESS, and the OC Streetcar, once in revenue service. Due to changes in available advertising inventory on the paratransit fleet, the revised OC Streetcar revenue service date, and changing market conditions, advertising revenue is currently estimated to be lower than anticipated. Vector Media has requested a revised minimum guaranteed revenue based on the aforementioned changes. Staff recommends a reduced minimum guarantee and an increased percentage of net advertising revenue, whichever is greater. An amendment to the existing contract is requested to exercise the agreement’s first option term inclusive of the changes to minimum guarantee.
recommendation
Recommendation(s)
Authorize the Chief Executive Officer to negotiate and execute Amendment No. 3 to Agreement No. C-3-2222 between the Orange County Transportation Authority and Vector Media, to exercise the first option term of the agreement, with a combined minimum guaranteed revenue to the Orange County Transportation Authority of $6,069,667, which includes $6,000,000 for transit advertising and an anticipated prorated OC Streetcar minimum guaranteed revenue of $69,667, assuming passenger service begins in April 2027, or 65 percent of net advertising revenue, whichever is greater, for the first option term effective December 1, 2026, through November 30, 2028.