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 4 Local Outreach Efforts The Purchasing Division advertised RFP No. 25-107 on the City's online bid management and publication system, which directly notified two Santa Ana vendors. No Santa Ana vendors downloaded the RFP or submitted a bid for consideration. An evaluation committee reviewed and rated the proposals based on qualifications, experience with bus shelter advertising, proposed profit-sharing structure, and references. Based on this evaluation, the firms were ranked as follows: Firm City Rank Creative Outdoor Advertising of Sherman Oaks, California 1 America Inc. My Emerald Hands LLC San Diego, California 2 Staff recommends awarding an agreement to the highest ranking firm, Creative Outdoor Advertising of America, Inc. (COA) (Exhibit 1). COA, a privately held company established in 1984, employs approximately 120 full- and part-time staff and operates public amenity advertising programs across more than 300 municipalities in North America. The company manages over 45,000 advertising units and serves thousands of clients across local, regional, and national markets. Company materials and investor statements indicate that COA has expanded significantly over the past decade, managing tens of thousands of advertising units across more than 300 municipalities and achieving notable financial performance improvements under previous ownership, including an increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). COA's proposal emphasizes maximizing advertising revenue through data -driven sales strategies. The firm will proactively identify and pursue potential advertisers and provide auditable monthly reports detailing advertising sales, occupancy rates, and total revenue generated. In addition, COA will implement a comprehensive digital management system to oversee advertising operations, including the use of barcodes and scanners to uniquely identify and track each advertising location and asset citywide. COA's revenue projections are based on 160 advertising units with 320 advertising faces. Staff reviewed the assumptions supporting these projections, including anticipated occupancy rates, market advertising rates, and COA's demonstrated experience selling advertising in comparable municipal markets. Staff also evaluated current utilization of advertising space in Santa Ana and determined the projections to be reasonable and achievable under current market conditions. Most importantly, the agreement provides the City with a Minimum Annual Guarantee (MAG) of $160,000 regardless of actual advertising performance, ensuring predictable revenue even if projections are not fully realized. The proposed revenue -sharing structure provides the City with either a MAG of $160,000, paid in equal monthly installments, or 55% of gross advertising revenue, whichever is greater, regardless of advertising performance, provided the minimum inventory of 160 advertising units and 320 advertising faces is maintained.