The Ocala City Council will consider a new contract that would give a Tampa-based company exclusive rights to advertising on nearly 100 bus stop benches across Ocala, with the city earning 18% of monthly, net ad revenue from the deal.
Council members will discuss the item during their regular meeting on Tuesday, April 15.
According to a city staff report, the city is considering entering a contract with Creative Outdoor Advertising of America, Inc., (COA) for the “continued placement, maintenance, and advertising of transit benches” throughout Ocala.
The agreement would replace a 1981 license that was granted to Metropolitan Systems to manage the city’s bus benches.
Under the terms of the new agreement, COA would be responsible for furnishing, installing, maintaining, and removing benches at city-approved locations. All the installations would have to meet ADA requirements and would be mounted on “city-approved pads,” according to staff.
Currently, there are approximately 90 bus benches across the city. Those benches are placed strategically all along SunTran’s seven operating routes, which cover every quadrant in the city.
Under the potential agreement, the city would earn 18% of the “net advertising revenue generated by the sale of advertising” by COA on the benches. Net advertising revenue is defined as “gross advertising revenue less expenses from printing, posting, design, and sales commissions.” All of those earnings would be paid to the city within 60 days from the end of each month throughout the term, according to the agreement.
“COA shall provide the city with a detailed monthly report of the net advertising revenue for the preceding month,” reads the contract.
The agreement would give COA exclusive advertising rights on the benches, with restrictions prohibiting certain content, including “political, tobacco, and sexually explicit” advertisements. The city would still retain the right to “reject or request the removal of any inappropriate advertising.” The contract also calls for COA to allocate “up to 10% of unsold advertising space” to the city at “production cost.”
According to the city, the new contract would mark a “significant improvement in structure, oversight, and accountability” over the previous agreement, which allowed for an open-ended license with no term limits. The new contract establishes a ten-year term with two optional five-year renewals.
Additionally, the city says the new contract enforces Americans with Disabilities Act (ADA) compliance, and clearly outlines “maintenance expectations, insurance requirements, and default remedies.”
“This Agreement supports the City’s commitment to accessible, well-maintained public transit infrastructure while ensuring a fair share of advertising revenue and maintaining oversight of messaging and placement,” reads the city’s staff report.
The Ocala City Council next meets on Tuesday, April 15, at 4 p.m. at Ocala City Hall (110 SE Watula Avenue).