Agenda 07/09/2019 Item #11G (Resolution - Establishing CAT Policies & Strategies)07/09/2019
EXECUTIVE SUMMARY
Recommendation to approve a Resolution superseding Resolution No. 2016-140, establishing the
Collier Area Transit Advertising Policy and Standards, Fee Policy and the Agreed Terms and
Conditions for Advertising on Transit assets and facilities, to expand the advertising policy,
standards and fees to include fixed route exterior bus wraps and digital advertising.
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OBJECTIVE: To approve a resolution that provides an opportunity for alternative revenue generation to
be utilized for Collier Area Transit (“CAT”) operations.
CONSIDERATIONS: CAT is funded by a combination of federal, State, and local funds, as well as
farebox revenue. In 2014, the Board of County Commissioners (the “Board”) established a Transit
Advertising policy to provide a framework for the sale of advertising inside the transit buses and at
transfer terminals to generate revenues to supplement fares and cover unfunded operating costs. Since that
time, the program has been managed in a manner that brought in as much revenue as practicable, while
ensuring that the advertising does not discourage the use of the County transit system, diminish CAT’s
reputation in the community, or weaken the goodwill of its patrons.
Since the inception of this policy, the program has only generated $54,988 of revenue to support the
transit system. After conducting efforts to solicit a private entity for the sales of advertisement, staff
concluded that there is only a small market interested in the limited scope of the advertisement permitted
under the current policy. It appears that there is a greater market for advertising on the exterior of the
buses.
The transit system currently has a fleet of 28 Fixed Route buses and 25 Paratransit buses on which
advertising could be sold. Other transit agencies that utilize those resources for advertising have been able
to increase the funding for the operations for their system with the added revenue. Research on the
potential revenues to be raised if that option was implemented found that transit agencies charge the cost
for the bus wrap to the advertiser (between $4,500 - $6,500), which results in cost savings to the transit
agency. With the production cost of the wrap being charged to the advertiser, the monthly rate becomes
100% profit to the transit agency. Revenue potential on the existing Fixed Route fleet inventory would
range from $250,000 to $850,000 annually, depending on the number of buses wrapped and the actual
dimensions of the wraps purchased by the advertiser (e.g.; full length, half-length or bottom length).
Digital advertising is another potential source of revenue with limited production costs. Advertisements
would be sold on monitors that would be placed in the terminals and on the buses. This is fairly a new
media for transit agencies, so there is limited research available in the market.
If Collier County pursues those options, the rates included in the proposed policy will be utilized by
Public Transit & Neighborhood Enhancement (“PTNE”) staff when the sale of advertisement is initiated
by the County staff. Ultimately, the PTNE Division recommends hiring a private advertising agency to
conduct sales and production for CAT whereby it is contemplated that a portion of the revenues collected
through the sales would go to the advertising agency in the form of a commission. Working with the
Procurement Division, PTNE staff presumes that a percentage sales commission would comprise a critical
element of a solicitation to receive bids seeking firms to sell advertisements for CAT.
In December 2017 and November 2018, CAT wrapped two “Beach Buses” in a beach -themed design as
part of the seasonal Beach Bus route promotion (see attachment for photo). The Beach Bus has been well
received by the public as it is visually appealing. Staff ensured that the wrap maintained the beautiful
aesthetic of Collier County and it has garnered a lot of positive interest. The Beach Bus is in its third year
of service and had a ridership of over 6,000 more passengers than in its initial year of service.
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The current advertising options (Interior Bus Signs, Terminal Bus Signs, Voiceovers, Bus Schedules, and
Smart Cards) offered to potential advertisers generated a very limited amount of revenue. The desired
demographics for most advertisers include the entire population of Collier County, rather than just the
passengers that ride the bus.
As noted above, the transit system has 28 Fixed Route buses and 25 Paratransit buses available for the
sale of ad space to generate additional revenue for the system. Staff would initially limit advertising to
bus wrap sales to the Fixed Route buses. In Collier County, there is no significant outdoor advertising,
therefore the County has the potential to leverage that untapped market for a higher revenue stream.
If the Board approves the proposed policy, Staff will also initiate the solicitation process to obtain an
advertising agency to market the sale of CAT advertising consistent with the proposed policy. Reve nues
for this process will likely not be realized until the second quarter of FY 2020. The potential revenues
could be a funding source for the enhanced transit service desired by the community.
The attached proposed Resolution submitted for Board approval supersedes the prior Resolution and
reflects the proposed new fees for Bus Wraps, Digital Advertising, as well as revised Package Offerings.
The Resolution also includes as incorporated exhibits the revised CAT Advertising Policy and Standards
and the Agreed Terms and Conditions for transit advertisements, reflecting additions to the Policy with
underscoring and redactions from the policy with strikethrough notations.
As part of the advertising approval process, PTNE staff will continue to coordinate with the County
Attorney’s Office to ensure that the proposed advertisements comply with the standards established in the
Board approved policy.
FISCAL IMPACT: Approval of this item may result in an estimated $190,00 to $350,000 of additional
revenue during the first year of offering this type of advertising service. This amount is based on space
available on the buses utilized in the system. After two (2) to three (3) years, CAT has the potential to
bring in up to $600,000 in additional revenue annually.
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this
Executive Summary.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as
to form and legality, and requires majority vote for approval. -JAK.
RECOMMENDATION: To approve a Resolution superseding Resolution No. 2016-140, establishing
the Collier Area Transit Advertising Policy and Standards, Fee Policy and the Agreed Terms and
Conditions for Advertising on Transit assets and facilities, to expand the advertising policy, standards and
fees to include the sale of fixed route exterior bus wraps and digital advertising.
Prepared By: Elena Ortiz Rosado, Events, Sales, & Marketing Coordinator, Public Transit &
Neighborhood Enhancement Division.
ATTACHMENT(S)
1. Resolution No 2019 Advertising Policy_Fees (PDF)
2. Transit Advertising Policy Power Point (7-9-19 BCC Agenda) (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.G
Doc ID: 9187
Item Summary: Recommendation to approve a Resolution superseding Resolution No. 2016-
140, establishing the Collier Area Transit Advertising Policy and Standards, Fee Policy and the Agreed
Terms and Conditions for Advertising on Transit assets and facilities, to expand the advertising policy,
standards and fees to include fixed route exterior bus wraps and digital advertising. (Michelle Arnold,
Public Transit and Neighborhood Enhancement Division Director)
Meeting Date: 07/09/2019
Prepared by:
Title: Division Director - Pub Tran & Nbrhd Enh – Public Transit & Neighborhood Enhancement
Name: Michelle Arnold
05/31/2019 3:41 PM
Submitted by:
Title: Division Director - Pub Tran & Nbrhd Enh – Public Transit & Neighborhood Enhancement
Name: Michelle Arnold
05/31/2019 3:41 PM
Approved By:
Review:
Public Transit & Neighborhood Enhancement Caroline Soto Additional Reviewer Completed 05/31/2019 4:35 PM
Public Transit & Neighborhood Enhancement Omar Deleon Additional Reviewer Completed 06/03/2019 7:52 AM
Public Services Department Joshua Hammond Level 1 Reviewer Completed 06/04/2019 10:17 AM
Public Services Department Todd Henry Level 1 Division Reviewer Completed 06/04/2019 1:41 PM
Grants Erica Robinson Level 2 Grants Review Completed 06/04/2019 2:11 PM
Public Transit & Neighborhood Enhancement Michelle Arnold Additional Reviewer Completed 06/25/2019 11:13 AM
Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 06/25/2019 12:49 PM
Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 06/26/2019 4:29 PM
County Attorney's Office Scott Teach Additional Reviewer Completed 06/27/2019 12:07 PM
Budget and Management Office Ed Finn Additional Reviewer Completed 06/27/2019 1:19 PM
Grants Therese Stanley Additional Reviewer Completed 06/27/2019 1:21 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/01/2019 9:23 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 07/02/2019 8:49 AM
Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM
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11.G.1Packet Pg. 269Attachment: Resolution No 2019 Advertising Policy_Fees (9187 : Transit Advertising Policy)
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Full Wrap
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Packet Pg. 285 Attachment: Transit Advertising Policy Power Point (7-9-19 BCC Agenda) (9187 : Transit Advertising
Half Wrap (Streetside)
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Packet Pg. 286 Attachment: Transit Advertising Policy Power Point (7-9-19 BCC Agenda) (9187 : Transit Advertising
Bottom Wrap
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Packet Pg. 287 Attachment: Transit Advertising Policy Power Point (7-9-19 BCC Agenda) (9187 : Transit Advertising
Quarter Bottom Wrap
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Packet Pg. 288 Attachment: Transit Advertising Policy Power Point (7-9-19 BCC Agenda) (9187 : Transit Advertising