Fiscal Note
The Transit Utility 2008 Adopted Operating budget includes $400,000 in revenues derived from advertising. Of this amount, $175,000 is from bus wrap advertising. Future year advertising revenues, particularly those derived from bus wraps, may vary depending on the number and types of wraps that may be authorized.
Title
SECOND SUBSTITUTE - Authorizing an amendment to the Metro Transit Advertising and Leased Space Policy and to the Contract with Adams Outdoor Advertising, Ltd. Partnership to allow fully illustrated transit advertisements on Metro Coaches, not to exceed ten 20 full wraps per year.
Body
PREAMBLE
The original pilot allowing full bus wrap advertising called for a maximum of 15 fully wrapped buses. A subsequent amendment allowed 5 more full wraps, for a total of 20 during the pilot. During the first year of the pilot, Metro Transit received approximately $272,727.00 based on a minimum monthly guarantee. The contract with Metro's advertising provider guarantees only $225,000 for year three of the contract without full wraps. With full wraps, the estimated revenue for Metro is at least $300,000.
With fuel costs continuing to rise and a recommended goal in the draft final report of the Long Range Metro Transit Planning Ad Hoc Committee to secure 1% of Metro's overall funding through advertising revenue (approximately $500,000), Metro Transit needs the additional revenue that full wrap advertising on coaches will provide.
In response to public feedback, Metro proposes lowering the maximum number of fully wrapped coaches from 20 to 10. Metro also proposes continuing the practice of allowing unlimited partial wrap advertising to include new products such as king kongs (which cover from top to bottom with some windows left unwrapped), and half wraps (where one side of the coach is wrapped and one side is not wrapped.) These proposals acknowledge public concerns about light and visibility regarding the full wrap bus advertising produc...
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