HomeMy WebLinkAbout9/1/2004 - STAFF REPORTS (12) DATE: September 1, 2004
TO: City Council
FROM: Director of Aviation
AIRPORT BULLETIN ADVERTISING
RECOMMENDATION:
It is recommended that the City Council approve the City Manager to enter into two
contracts, each for a six-month period, with The Lamar Companies, for the purpose of
continued bulletin advertising, in an amount not-to-exceed a combined total of$40,000.
SUMMARY:
This proposed action would allow the Airport to expand its bulletin advertising program
to include a second location, both along the 1-10 corridor between the Cabazon and
Hwy 62 exits. The bulletins are targeted to reach those passengers who are choosing
to use other airports in Southern California instead of Palm Springs International Airport.
The term for this lost business is leakage, and the goal of the bulletin advertisements
is meant to be one piece of a larger effort to reduce leakage and increase passenger
traffic.
BACKGROUND:
The Air Service Development Program of the Palm Springs International Airport has
realized incredible success during the last three years. The Airport has worked to
create a greater level of awareness of the expanded services available,especially those
directly related to air service. There have been four months of record passenger traffic
through July 2004, and the trend is expected to continue. The Airport continues to seek
ways to increase passenger traffic and decrease leakage to other Southern California
airports.
Advertising efforts undertaken locally have included television, print, and radio. The
newest form of advertising is in utilizing bulletins. There is currently one location
erected along 1-10 just east of the Hwy 111 junction. This bulletin, visible while
traveling west on the interstate, conveys the message that the driver would already be
onboard the aircraft had they flown from Palm Springs International Airport. While this
is a prime location to capture those who are potentially driving to another airport, there
is a need for a second bulletin to complete the message. The new bulletin, which will
be visible to those traveling east on 1-10,will convey the message that the driver would
already be home had Palm Springs International Airport been used.
The Airport Commission, at its May 5, 2004 meeting,voted unanimously to recommend
City Council approval of the bulletin advertising opportunity with The Lamar Companies.
The continuation of the bulletin component of the Airport's overall advertising program
is critical as it focuses attention to our passenger leakage during the drive to and from
competing airports. The not to exceed amount of $40,000.00 includes $30,000.00 in
location costs as per the contract, $3,120.00 in setup costs and $6,880 as contingency
for any potential changes in the bulletin advertising as reproduction costs.
AIRPORT BULLETIN ADVERTISIN
September 1, 2004
Page 2
k
CO)gj,
RICHAR S`-WALSH, A. A. E.,
Director of Aviation
APPROVESr
City Manager -- J i
Attachments: 1. Minute Order
2. Bulletin Contracts
Bulletin Contract Page 1 of 4
Palm Springs Date: July 12 2004
3500 Tachevah Drive THE i—�02 COMPANIES New/Renewal: NEW
••--^Palm Springs CA 92262 1
760-3274500
760-3274520 FAX Bulletin Contract
Lamar ID No. 401 301267
Customer Name: Palm Springs International Airport Advertiser. Same
Street Address: 3400 E.Tahquito Cyn Way Ste.OFC Cust.A/C#. 2DB959-00 Nafl/Local: LD
Mailing Address: Zip: Design:
City: Palm Springs State: CA Zip: 92262 Vinyl: Sections:
Phone: 318-3807 Term: 6 Months Start Date: Sep 20 2004
Fax: Contact Person: Brian Frances
Email: Rotary/Penn: Permanent
THIS INFORMATION FOR OFFICE USE ONLY
Billing Start Date: September 20 2004 Billing End Dale: March 19 2005
Monthly Billing Rate: $2,600,00 Commission: Political: Co-op:
Product Code: 93 Nafl Contract No.
Account Exec.Code: CPBO275 Split Billing:
Panel No: Market -Location Description: Bulletin:
of Ilium: Price Per
Code: Bulletin: Month:
31211 4 I-10 .3 mi e/o Apache Tr. 14x4o Y $2,500.00
on - second
dv rser authorizes and instructs The Lamar Companies to display in a good and workmanlike manner,and to maintain for the terms set forth
bov�l outdoor advertising displays described above or on the attached list.In consideration thereof,Advertiser agrees to pay The Lamar
om nies all contract amounts within thirty(30)days after the date of billing.Advertiser,acknowledges and agrees to be bound by the terms and
cenlained.on hoth pngp_e of lh'c rnnfrant
The undersigned representative or agent of Advertiser hereby warrants to The Lamar Companies that he/she is the Representative of the
Advertiser and is authorized to execute this contract on behalf of Advertiser.
ADVERTISER
PCCOUNT EXECUTIVE:Chuck Baum DATE:
COMPANY:Palm Springs BY:
ADVERTISER SIGNED BY
This contract is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar outdoor Advertising Company.
ACCEPTED: THE LAMAR COMPANIES
DATE: BY:
GENERALMANAGER
Bill Houck
AGENCY
The agency representing this Advertiser in this contract executes this contract as an agent for a disclosed principal,but hereby expressly agrees
to be liable Jointly and severally and in soltdo with Advertiser for the full and faithful performance of Advertiser's obligations hereunder.Agency
waives notice of default and consents to all extensions of payment
Cust AIC: 206059-00 Nafl/Local: LD 3
Agency: Street Address:
Date: Melling Address:
By: City: State: _ Zip: ^_
http://www.lamarhq.com/fonns/Bulleti.n—HTML—Fonnat—l.efin 7/12/2004
Bulletin Contract rage J or 4
STANDARD CONDITIONS
1. If Lamar Is requested by Advertiser to submit artwork, then artwork submitted by Lamar shall be approved or substitute
artwork shall be furnished by Advertiser within ten (10) days after submission. In the case of default In furnishing or
approval of artwork by Advertiser,then the date of installation for purposes of commencement of the first monthly invoice
shall be deemed to occur on the date on which the various spaces are available for Installation.
2. Advertiser warrants that all approved designs do not infringe upon any trademark or copyright,state or federal.Advertiser
agrees to defend, indemnify and hold Lamar free and harmless from any and all loss, liability, claims and demands,
including attorney's,fees arising out of the character, contents or subject matter of any copy displayed pursuant to this
contract.
3. Upon completion and Installation of the initial painting/vinyl, or upon the circumstances described in paragraph 1 above
regarding default, an invoice for payment will be sent to Advertiser or Agency. Upon Advertiser's or Agency's request, e
report of such painting and installation will be sent with the initial notice.The first monthly invoice shall cover the perioc
from date of Installation (if more than one location Is Included, the average date of installation shall be used)to the end of
the month in which the invoice is rendered, and subsequent monthly Invoices shall be rendered in advance on the first of
each successive month.All prorated invoices and credits will be computed on the basis of a thirty(30)day month.
4. If Lamar is prevented from posting or maintaining any of the spaces by causes beyond its control of whatever nature,
including but not limited to acts of God,strikes, work stoppages or picketing, or in the event of damage or destruction of
any of the spaces, or in the event Lamar Is unable to deliver any portion of the service required in this contract, including
illumination,this contract shall not terminate. Credit shall be allowed to advertiser at the standard rates of Lamar for surf
space or service for the period that such space or service shall not be furnished or shall be discontinued or suspended.
Lamar may discharge this credit, at Its option, by furnishing advertising service on substitute spaces, to be reasonably
approved by advertiser, or by extending the term of the advertising service on the same space for a period beyond the
expiration date.The substituted or extended service shall be of a value equal to the amount of such credit.
5. Upon default In the punctual payment of the contract indebtedness orany part thereof,as the same shall become due anc
payable, the entire amount of the indebtedness contracted for herein shall be matured and shall be due and payable
immediately, at the option of Lamar, and unless same is promptly paid, Lamar may, at Its option, discontinue without
notice the outdoor advertising contracted for herein; provided, however, that such discontinuance shall not relieve the
Advertiser of the contract indebtedness. All payments in arrears shall bear interest at the highest contract rate permitter
by law, not to exceed 1?% per month. In addition, Advertiser shall pay Lamar all costs and expenses of exercising It
rights under this contract, including reasonable attorney's fees of not less than 25% of the amount due, or $250.00,
whichever Is greater,and all reasonable collection agency fees.
6. This contract, both pages, constitutes the entire agreement between Lamar and Advertiser. Lamar shall not be bound by
any stipulations, conditions, or agreements not set forth in this contract. Waiver by Lamar of any breach of any provisior
shall not constitute a waiver of any other breach of that provision or any other provision.
7. Lamar reserves the right to determine if copy and design are in good taste and within the moral standards of the individua
communities in which it is to be displayed.
8. Lamar reserves the right to reject or withdraw any copy, either before or after posting. Lamar further reserves the right tc
terminate the contract for any reason,at any time.
9. Net cash payment is required thirty(30)days after the date of billing.
10. If a location should be lost during the period of display for any reason, a bulletin location of equal advertising value will be
substituted or credit issued for loss of service. Should there be more than a 50% loss of illumination, a 20% pro-rata credit
based on monthly advertising space billing will be given. If this contract requires illumination, it will be provided from dusk
until 11:00 p.m.
11. The customary agency commission will be allowed to accredited advertising agencies.Agency commissions will be forfeiter
after sixty(60)days, if payment is not received as outlined above.
12. All contracts are non-cancelable by Advertiser unless otherwise agreed upon in writing.The cancellation privilege, if agreec
upon in writing, must provide that written notice reach Lamar at least sixty (60) days prior to the date of the last invoice
for which the Advertiser will be liable.
13. Paint production charges are not included in the space rate, and will be determined by the degree of difficulty of the
reproduction. Charges are computed on a square foot basis.
14. Approved artwork and painting instruction shall be furnished by the Advertiser sixty (60) days prior to scheduled display
date.
15. Creative with mechanical, reflectors, Inflatable,etc,will be quoted upon request.
16. Cutouts/extensions, where allowed, are limited in size to 5 feet above, and 2 feet to the sides and 1 foot below norma
display area. Cutouts are the property of Lamar, and the basic fabrication charge is for a maximum 12 months, Lamar wil
not be responsible for cutouts/extensions after 120 days of storage time.
17. Vinyl for bulletins should be supplied by the advertiser fifteen (15) days prior to posting date.
18. Sections or vinyl will be held at customer's request upon management approval at the maximum rate of$100 per month.
19. Leeway of five (5) working days from the accepted start date is required to complete the installation of any display. Viny
should be shipped in time to arrive at least fifteen (15) days prior to the accepted start date.
20. Special Considerations:
SURETY AGREEMENT �®
In consideration of Lamar entering into this contract with Advertiser, the undersigned ("Surety") guarantees and becomes a surety for
Advertiser in favor of Lamar for all sums due by Advertiser under this contract.The obligation of Surety is joint and several and in solido witt
Advertiser and Agent(If applicable) for the full performance of all of Advertiser's obligations under this contract or any continuation. Surety
consents to all extensions.Surety waives any benefit that may allow him to limit this obligation to less than the full obligation of Advertiser. It k
understood that,without this guarantee or surety agreement,Lamar would not be willing to enter this contract with Advertiser.
http://www.lamarhq.com/forms/Butletin—HTN4L—Format—I.cftn 7/12/2004
IilllIctm Contract Page 1 of 4
Palm Springs - Date: July 12 2004
3600 Tachevah Drive THE + • COMPANIES New/Renewal: RENEWALPalm Springs CA 92262 °••!•^-^•^^-^•��---
760-3274500
7603274520 FAX Bulletin Contract
Lamar ID No. 401 301264
Customer Name: Palm Springs International Airport Advertiser. Same
Street Address: 3400 E.Tahquitz Cyn Way Ste.OFC Cust.A/C#: 20695MO Nat'gLocal: LD
Mailing Address: Zip: Design:
City: Palm Springs State: CA Zip: 92262 Vinyl: Sections:
Phone: 318-3807 Term: 6 Months Start Date: Sep 20 2004
Fax: Contact Person: Brian Frances
Email: Rotary/Perm: Permanent
THIS INFORMATION FOR OFFICE USE ONLY
Billing Start Date: September202004 Billing End Date: March 19 2005
Monthly Billing Rate: $2,500.00 Commission: Political: Co-op:
Product Code: 93 Narl Contract No.
Account Exec.Code: CPB0275 Split Billing:
Panel No: Market Location Description: Size of Ilium: Price Per
Code: Bulletin: Month:
6541 1 I-10 .6 mi e/o Hwy 111 14x48 Y $2,500.00
secondThe ternris on the page are part of
Advertiser authorizes and Instructs The Lamar Companies to display In a good and workmanlike manner,and to maintain for the terns set forth
above,outdoor advertising displays described above or on the allached list.In consideration thereof,Advertiser agrees to pay The Lamar
Companies all contract amounts within thirty(30)days after the date of billing.Advertiser acknowledges and agrees to be bound by the terms and
conditions contained on both pages of this contract.
The undersigned representative or agent of Advertiser hereby warrants to The Lamar Companies that he/she is the Representative of the
Advertiser and is authorized to execute this contract on behalf of Advertiser.
ADVERTISER
ACCOUNT EXECUTIVE:Chuck Baum DATE:
COMPANY:Palm Springs BY:
ADVERTISER SIGNED BY
This contract is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar Outdoor Advertising Company.
ACCEPTED: THE LAMAR COMPANIES
DATE: BY:
GENERAL MANAGER
Bill Houck
AGENCY
The agency representing this Advertiser in this contract executes this contract as an agent for a disclosed principal,but hereby expressly agrees
to be liable jointly and severally and in solido with Advertiser for the full and faithful performance of Advertiser's obligations hereunder.Agency
waives notice of default and consents to all extensions of payment.
Cust A/C: 206959-00 Nafl/Local: LD
Agency: Street Address:
Date: Mailing Address:
By: City: State: _ Zip:
http://www.lainarhq.com/forms/Bulletin—HTML—Format—I.cfin 7/12/2004
Bulletin Contract Page 3 ot"4
STANDARD CONDITIONS
1. If Lamar is requested by Advertiser to submit artwork, then artwork submitted by Lamar shall be approved or substitute
artwork shall be furnished by Advertiser within ten (10) days after submission. In the case of default In furnishing of
approval of artwork by Advertiser, then the date of installation for purposes of commencement of the first monthly invoice
shall be deemed to occur on the date on which the various spaces are available for installation.
2. Advertiser warrants that all approved designs do not infringe upon any trademark or copyright,state or federal. Advertiser
agrees to defend, indemnify and hold Lamar free and harmless from any and all loss, liability; claims and demands,
including attorney's fees arising out of the character, contents or subject matter of any copy displayed pursuant to thi;
contract.
3. Upon completion and installation of the Initial painting/vinyl, or upon the circumstances described in paragraph 1 above
regarding default, an invoice for payment will be sent to Advertiser or Agency. Upon Advertiser's or Agency's request, a
report of such painting and installation will be sent with the initial notice. The first monthly invoice shall cover the perioc
from date of installation (if more than one location is Included,the average date of Installation shall be used)to the end of
the month in which the invoice Is rendered, and subsequent monthly invoices shall be rendered In advance on the first of
each successive month.All prorated invoices and credits will be computed on the basis of a thirty (30)day month.
4. If Lamar is prevented from posting or maintaining any of the spaces by causes beyond Its control of whatever nature,
including but not limited to acts of God, strikes, work stoppages or picketing, or in the event of damage or destruction of
any of the spaces,or In the event Lamar is unable to deliver any portion of the service required in this contract, Including
illumination, this contract shall not terminate. Credit shall be allowed to advertiser at the standard rates of Lamar for such
space or service for the period that such space or service shall not be furnished or shall be discontinued or suspended.
Lamar may discharge this credit, at its option, by furnishing advertising service on substitute spaces, to be reasonably
approved by advertiser, or by extending the term of the advertising service on the same space for a period beyond the
expiration date.The substituted or extended service shall be of a value equal to the amount of such credit.
5. Upon default In the punctual payment of the contract indebtedness or any part thereof, as the same shall become due anc
payable, the entire amount of the indebtedness contracted for herein shall be matured and shall be due and payable
Immediately, at the option of Lamar, and unless same Is promptly paid, Lamar may, at its option, discontinue without
notice the outdoor advertising contracted for herein; provided, however, that such discontinuance shall not relieve the
Advertiser of the contract indebtedness. All payments in arrears shall bear interest at the highest contract rate permittec
by law, not to exceed 1?% per month. In addition, Advertiser shall pay Lamar all costs and expenses of exercising its
rights under this contract, including reasonable attorney's fees of not less than 25% of the amount due, or $250.00,
whichever Is greater, and all reasonable collection agency fees.
6. This contract, both pages, constitutes the entire agreement between Lamar and Advertiser. Lamar shall not be bound by
any stipulations, conditions, or agreements not set forth In this contract. Waiver by Lamar of any breach of any provisior
shall not constitute a waiver of any other breach of that provision or any other provision.
7. Lamar reserves the right to determine if copy and design are In good taste and within the moral standards of the indlvidua
communities In which it is to be displayed.
8. 'Lamar reserves the right to reject or withdraw any copy,either before or after posting. Lamar further reserves the right tc
terminate the contract for any reason,at any time.
9. Net cash payment is required thirty(30) days after the date of billing.
10. If a location should be lost during the period of display for any reason, a bulletin location of equal advertising value will be
substituted or credit issued for loss of service.Should there be more than a 50% loss of illumination,a 20% pro-rata credit
based on monthly advertising space billing will be given. If this contract requires illumination, it will be provided from dusty
until 11:00 p.m.
11. The customary agency commission will be allowed to accredited advertising agencies.Agency commissions will be forfettec
after sixty(60)days, if payment is not received as outlined above.
12. All contracts are non-cancelable by Advertiser unless otherwise agreed upon in writing.The cancellation privilege, if agreec
upon in writing, must provide that written notice reach Lamar at least sixty (60) days prior to the date of the last invoice
for which the Advertiser will be liable.
13. Paint production charges are not included in the space rate, and will be determined by the degree of difficulty of the
reproduction. Charges are computed on a square foot basis.
14. Approved artwork and painting instruction shall be furnished by the Advertiser sixty (60) days prior to scheduled display
date.
15. Creative with mechanical, reflectors, inflatable,etc. will be quoted upon request.
16. Cutouts/extensions, where allowed, are limited in size to 5 feet above, and 2 feet to the sides and 1 foot below norms
display area. Cutouts are the property of Lamar, and the basic fabrication charge Is for a maximum 12 months. Lamar wll
not be responsible for cutouts/extensions after 120 days of storage time.
17. Vinyl for bulletins should be supplied by the advertiser fifteen (15) days prior to posting date.
18. Sections or vinyl will be held at customer's request upon management approval at the maximum rate of$100 per month.
19. Leeway of five (5) working days from the accepted start date is required to complete the Installation of any display. Viny
should be shipped in time to arrive at least fifteen (15)days prior to the accepted start date.
20. Special Considerations:
SURETY AGREEMENT
In consideration of Lamar entering into this contract with Advertiser, the undersigned ("Surety") guarantees and becomes a surety for
Advertiser in favor of Lamar for all sums due by Advertiser under this contract The obligation of Surety is joint and several and In solido wilt
Advertiser and Agent (if applicable) for the full performance of all of Advertisers obligations under this contract or any continuation. Surety
consents to all extensions.Surety waives any benefit that may allow him to limit this obligation to less than the full obligation of Advertiser.It is
understood that,without this guarantee or surety agreement,Lamar would not be willing to enter this contract with Advertiser.
http://www.lamarhq.coria/forms/]Bulletin—HTNM—Format—I.cfin 7/12/2004
MINUTE ORDER NO.
AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH THE LAMAR
COMPANIES FOR BULLETIN ADVERTISING IN AN
AMOUNT NOT TO EXCEED $40,000.
---------------------------
I HEREBY CERTIFY that this Minute Order, authorizing the City
Manager to enter into a contract with The Lamar Companies for
bulletin advertising, in an amount not to exceed $40,000 was
approved by the City Council of the City of Palm Springs, California,
in a meeting thereof held on the la'day of September, 2004.
PATRICIA A. SANDERS
City Clerk