Local Transportation Authority seeks firm, hopes to augment
revenue
In response to the state’s ever-tightening budget belt, Local
Transportation Authority hopes to bring in nearly $50,000 per year
from allowing advertising on County Express buses and bus stop
shelters.
Local Transportation Authority seeks firm, hopes to augment revenue
In response to the state’s ever-tightening budget belt, Local Transportation Authority hopes to bring in nearly $50,000 per year from allowing advertising on County Express buses and bus stop shelters.
The agency, which operates through an agreement between San Benito County and the cities of Hollister and San Juan Bautista, is seeking bids from advertising agencies that would administer the program.
“We know that other transit agencies have this type of advertising on buses,” said Lisa Rheinheimer, executive director of the Council of Governments, under which the LTA operates. “It’s a way to bring in additional revenue. During these economic times, we’re scrounging for whatever we can get in terms of revenue.”
The selected advertising firm would have the exclusive right for five years to sell advertising on transit vehicles and bus stops, none of which currently display advertising. In return, the firm would provide the LTA with a minimum annual guarantee or 60 percent of the contractor’s annual gross revenues earned in connection with the local advertising, whichever is greater.
Local officials are seeking a minimum annual guarantee of $40,000 for the first two fiscal years and a slight increase over the next three years. The proposed agreement also calls for the advertising firm to pay administrative costs ranging from $6,000 in the first year to nearly $7,300 in the fifth year of the contract, bringing the total yearly amount to near $50,000.
Transportation planner Betty LiOwen said representatives from other counties that sell advertising space on transit vehicles “have said it has been a significant revenue source that provides a steady stream of revenue.
“We’ve looked at the advertising idea in-house over the years to see if it was possible,” she said. “Given the state’s budget, we’re really going for it right now.”
The request for proposals, which were due this week, includes regulations governing the type of advertising that will be allowed. For example, there are prohibitions against unlawful goods or services, obscenity, tobacco, alcohol, firearms, political or religious ads and adult-oriented goods or services.
LiOwen said all proposed advertisements will be forwarded to the LTA staff for approval. She expects to interview interested firms in April and said that advertisements could begin to appear on buses and bus stops by the summer.
