SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to execute an agreement with Clear Channel Outdoor, LLC to manage CapMetro’s transit advertising program for a one (1) three-year base period with three (3) renewable option periods of two (2) years each for a guaranteed payment to CapMetro of $7,727,250 in the base period, and a total guaranteed payment of $25,397,765 with the base and options.
end
FISCAL IMPACT:
Refer to executive summary for clarification.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☒ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: Execution of an agreement with Clear Channel Outdoor, LLC to manage CapMetro’s transit advertising program will promote sustainability of CapMetro’s operations by potentially increasing transit advertising revenue and improving CapMetro’s financial position.
BUSINESS CASE: The agreement has the potential to increase transit advertising revenue by leveraging the expertise of a partner with vast, successful experience in transit advertising sales and operations.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on October 20, 2025,
EXECUTIVE SUMMARY: As part of CapMetro’s desire to promote sustainability of operations through financial diversity, this resolution authorizes execution of an agreement with Clear Channel Outdoor, LLC to manage CapMetro’s transit advertising program for a one (1) three-year base period with three (3) renewable option periods of two (2) years each. Clear Channel Outdoor, LLC will pay CapMetro a guaranteed payment or a percentage of transit advertising revenue, whichever is greater. The guaranteed payment for the base period is $7,727,250 and the total payment to CapMetro with base and options is $25,397,765.
SBE PARTICIPATION: Does not apply
PROCUREMENT: On April 10, 2025, a Request for Proposals was issued and formally advertised. By the closing date of June 3, 2025, five (5) proposals were received. The evaluation team used the following factors: The proposer’s demonstrated understanding of the project undertaking; the proposed plan for the performance of the work and the technical approach; the proposer’s sales plan detailing the proposer’s experience in selling out-of-home media as well as specific plans and expectations for national, regional and local sales; the proposer’s business plan detailing how the proposer will accomplish the day-to-day management of transit advertising assets; the proposer’s maintenance plan that ensures all advertising displays will be installed, maintained and removed in a professional manner; the proposer’s demonstrated, relevant work experience and capabilities of the firm as a whole and of the proposed project personnel on projects of a similar size, scope, complexity and nature.
The proposal from Clear Channel Outdoor, LLC was determined to be the best value to the Authority. The contract is a revenue contract. Clear Channel Outdoor will pay a guaranteed payment or the specified percentage of transit advertising gross revenue, whichever is greater. The term of the contract is one (1) three-year base period with three (3) renewable option periods of two (2) years each. Revenue is as follows:
|
Description |
Guaranteed Total Payment To CapMetro |
Percent of Gross Revenue |
|
Base Year 1 |
$2,500,000 |
70.5% |
|
Base Year 2, Year 2 of the contract |
$2,575,000 |
70.5% |
|
Base Year 3, Year 3 of the contract |
$2,652,250 |
70.5% |
|
Total Revenue for Base Period |
$7,727,250 |
|
|
|
|
|
|
Option Period 1, Year 4 of the contract |
$2,731,818 |
70.5% |
|
Option Period 1, Year 5 of the contract |
$2,813,772 |
70.5% |
|
Option Period 2, Year 6 of the contract |
$2,898,185 |
70.5% |
|
Option Period 2, Year 7 of the contract |
$2,985,131 |
70.5% |
|
Option Period 3, Year 8 of the contract |
$3,074,685 |
70.5% |
|
Option Period 3, Year 9 of the contract |
$3,166,925 |
70.5% |
|
Total Revenue Payment for the Option Periods |
$17,670,515 |
|
|
Total Revenue Payment for Base + Option Periods |
$25,397,765 |
|
RESPONSIBLE DEPARTMENT: Marketing
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2025-1630
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro management endeavor to further CapMetro’s mission and vision by promoting sustainability; and
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro management recognize the need to diversify financially to improve CapMetro’s financial position.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to execute an agreement with Clear Channel Outdoor, LLC to manage CapMetro’s transit advertising program for a one (1) three-year base period with three (3) renewable option periods of two (2) years each for a guaranteed payment to CapMetro of $7,727,250 in the base period, and a total guaranteed payment of $25,397,765 with the base and options.
____________________ Date: ____________________
Secretary of the Board
Becki Ross