Item 13 - Award an Agreement for Managment of Ad Services at Bus Stops

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Agreement for Bus Stop Advertising February 17, 2026 Page 3 As a result, competition for the contract was limited, and the City's options were constrained by market realities at the time. Staffs subsequent experience demonstrated that combining maintenance and advertising responsibilities under a single vendor reduced competition and ultimately contributed to performance challenges. Maintenance service levels ultimately proved insufficient to meet community expectations. On April 1, 2023, the City Council approved a supplemental agreement with FMG to provide expanded maintenance services at a cost not to exceed $250,000 over a two-year term ending on April 1, 2025. Despite these efforts, the City continued to receive more than 200 service requests annually, most related to excessive trash accumulation and unsanitary conditions. As a result, no additional funding was granted to continue this service model, and the supplemental agreement was allowed to expire. In response to these lessons learned, the current procurement intentionally separated maintenance from advertising services. This approach allowed firms specializing in advertising sales to compete without assuming maintenance risk and resulted in proposals better aligned with each firm's operational strengths while ensuring that maintenance services are provided separately through the City's existing maintenance programs. COA will be responsible for labor associated with replacing plexiglass panels, while the City will supply the replacement materials, remove graffiti, service the refuse bins, and ensure the bus stops are in clean and sanitary condition. PWA subsequently implemented a revised maintenance strategy focused on improving service delivery while reducing costs. Bus stop maintenance responsibilities were absorbed by existing public works programs, namely, the Clean City Program under the existing refuse agreement with Republic Services at no additional cost to the City, resulting in approximately $125,000 in annual savings. With maintenance services reassigned, PWA issued a Request for Proposals focused solely on bus shelter advertising sales in order to maximize the revenue to the City. Request for Proposals (RFP) No. 25-107 was issued on August 4, 2025 on the City's online bid management and publication system, PlanetBids. A summary of vendor participation and results is as follows: 859 Vendors notified 1 Santa Ana vendor notified 21 Vendors downloaded the RFP packet 2 Responsive proposals received 0 Responsive proposals received from Santa Ana vendors Proposals were solicited, opened on August 19, 2025, and evaluated. Two proposals were submitted by the RFP deadline and were determined to be responsive to the specifications and they met the City's requirements.