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Home My WebLink AboutAgenda Report - February 19, 1997 (72)CITY OF LODI COUNCIL COMMUNICATION 4 AGENDA TITLE: Approve Renewal of Contract with 3M Media National Advertising Company for City Leased Advertising Billboards MEETING DATE: February 19, 1997 SUBMITTED BY: City Manager RECOMMENDED ACTION: That the City Council authorize the City Manager to enter into a 36 month contract with 3M Media National Advertising Company for advertising on the two billboards on Highway -99 at a contract rate of $1085 per month for the first year and a 3% rate increase per year in years 2 and 3. That the City Council also authorize the City Manager to enter into a 36 month contract with 3M National Advertising Company for the Highway- 1 2Nicto r Road billboard at a contract rate of $160 per month for the first year and a 3% rate increase per year in years 2 and 3. BACKGROUND INFORMATION: Last year the City Council elected to renew the billboard contracts for 12 months only at a monthly rate of $1085 per sign (large signage on Hwy -99) and at $160 per sign (small sign on east Hwy -12). -The rate included a 5% escalator which 3M typically includes in their renewal contracts. The total cost of the billboard program was $27,960. However, the Lodi -Woodbridge Winegrape Commission agreed to assume the cost of the Hwy -12 sign, effectively reducing the City's obligation to $26,040. Circumstances surrounding the billboard issue appear to be much different than last year. First of all, we have a beautiful new sign whose artwork was designed by a community task force and financed by the Winegrape Commission. Secondly, the Winegrape Commission has effectively expanded Lodi's highway signage program by purchasing a sign equal in size to that which is located on east Hwy -12 at the commission's expense. This sign is located on Hwy -12 just west of Lower Sacramento Road as you enter our fine community. Finally, the community has verbally supported and applauded the quality with which we are advertising our prestigious City. 3M Advertising Company has offered us a 36 month contract with no increase in rate this year and only a 3% escalator per year for years 2 and 3. This would save us the 4% escalator (being charged this year on one year contracts) on a traditional 12 month contract. It would also lock in lower escalators, 3% for years 2 and 3, giving us an average escalator rate of 2% per year for each of the three years. In addition, Lodi Woodbridge Winegrape Commission has again agreed to assume the cost of the east Hwy -12 sign for the next 3 years. Copies of correspondence and renewal agreements are attached for Council review. APPROVED: H. Dixon Flynn -- City Manager-' ` 1 J FUNDING: Total Cost: $26,040.00 Community Promotions Account Respectively submitted, Tony C oe ring, Economiol5evelopment Coordinator Prepared by: Tony C. Goehring, Economic Development Coordinator TG:tg Attachments National Advcrtising Company 2050 W. Fremont Stockton. CA 95203-1913 209 466 5021 209 466 6013 Fax 300 343 5643 JAN 2 7 1997 City Manager's Once Tony Goehring City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 January 22, 1997 Dear Tony, Here are the options for the City of Lodi's three billboards. Renew all bulletins with a 4% rate increase this year; or purchase all agreements on a 36 month contract with no rate increase for the first year and a 4% rate increase per year in year 2 and 3. The 36 month agreements just need to be okayed where checked and returned. If the city opts for 12 month agreements, cross out the 36 month rates and escalators. Insert $1128.00 and 0% for the Hwy 99 bulletins; $166.00 and 0% for the Hwy 12 bulletins. Then initial all changes and return the agreements in the return envelope. I'll phone you to be sure you received the packet. Sincerely, Dave Spencer Sales Representative DS/Ir Encl. National Advertising Company Tony Boehring 3M City of Lodi 221 W. Pine Street Lodi, CA 95240 February 5, 1997 Tony, 2050 W. Fremont Stockton, CA 95203-1913 209 466 502 1 209 466 6013 Fax 800 343 5643 FEB 10 1�9� C4'40nagap.4 As an incentive for the city to purchase 36 month contracts; we would offer the agreements with a 3 % escalator each year in years 2 & 3. This is down from the 4% escalator originally proposed. Yours Truly, Z /e5 Dave Spencer DS/rb Farm N43h 24-HOUR CUSTOMER SERVICE DEPARTMENT 1-800-568-7446 Form 510M • 6195 Stmdard Outdoor Display Advertising Agreemerrt Braodr No. Conusct No. 3M MEDIA OUTDOOR DISPLAY ADVERTISING AGREEMENT CITY OF LODI LEGAL NAME OF ADVERTISER CITY OF LODI Trade Name of Advertiser 221 W. PINE ST. Mailing Address LODI, CA 95240 City, State, Zip Code DIXON FLYNN 209333-6700 Advertiser Contact Person Telephone Number ADVERTISER'S AGENCY Mailing Address City, State, Zip Code Agency Contact Person Telephone Number AUTHORIZATION. National Advertising Company, a Delaware corporation, located at 6850 South Harlem Avenue, Bedford Park, Illinois 60501 and doing business as 3%4 Media ("3M Media") is hereby authorized to secure or reserve advertising space on the display(s) and in the manner listed below, and to place and exhibit advertising copy on those display(s) for the above advertiser and advertisels agency (jointly and severally "Advertiser"), ifany, upon the terms ofthis contract The display(s) shall advertise: r" r TX n, T nnT Location Number Location and Description Approx. Size Mum. Class See Note 1 Paintings Yearly (Inc. Orig.) Monthly Unit Charge See Note 2 0040410 E/S 99, .5 MI S/0 ARMSTRONG, FS 12x40 B 1 $1085.00 Print Name Title RENEWAL EFF. 3/1/97 Total 51085.00 Note 1: Class "A" displays are non -illuminated, Class "B" displays are to be illuminated daily from dusk until midnight standard time, and Class "C" displays are to be illuminated daily from dusk until dawn. Note 2: All cutouts, embellishments, special pictorials or paintings (e.g., clear coat) and -or blended backgrounds not specifically included in a Monthly Unit Charge will be billed at 3,14 Media's then current charges. All such charges shall be payable to 3 M Media upon completion. TERM. The term of this contract shall be 36 months. The term shall begin on the earlier of 'I or completion of the display(s) ("Effective Date"). 3M Media shall be permitted up to forty-five (45) days from receipt of acceptable fatal artwork to complete the display(s). PAYMENT. Advertiser agrees to pay 31M Media monthly in advance the Total Monthly Unit Charge above for display space charges plus applicable taxes, if any, beginning on the Effective Date and continuing throughout the full term of this contract If the tern of this contract is more than twelve (12) months, a y %per year increase in the Total Monthly Unit Charge will be applicable to each succeeding twelve (12) month period or portion thereof. All payments are due and payable within thirty (30) days of the invoice date at National Advertising Company, P.O. Bos 98829, Chicago, Illinois 60693-8829. CONTRACT PROVISIONS. 3M Media will provide service to Advertiser upon the terns stated on this page and the Additional Provisions on the reverse hereof. Advertiser has read and fully understands all such terns and provisions. NATIONAL ADVERTISING COMPANY Acceptance Date: ADVERTISER Date: / V Signature Signature Print Name Title Print Name Title BILLING ADDRESS (ifdifferent from above) ADVERTISER'S AGENCY Date: Signature Print Name Title DAVE SPENCER 274375 (209 )466-5021 3M Media Contact Person (Print Name) Employee No. 3M Media Local Phone Number 24-HOUR CUSTOMER SERVICE DEPARTMENT 1-800-568-7446 Form 51 ONI - 6/95 Standard Outdoor Display Advctising AWccnxnt Branch No. Contract No. 3M MEDIA OUTDOOR DISPLAY ADVERTISING AGREEMENT CITY OF LODI LEGAL NAME OF ADVERTISER CITY OF LODI Trade Name of Advertiser 221 W. PINE ST. Mailing Address LODI, CA 95240 City, State, Zip Code DIXON FLYNN (209 )333-6700 Advertiser Contact Person Telephone Number ADVERTISER'S AGENCY Mailing Address City, State, Zip Code f ) Agency Contact Person Telephone Number AUTHORIZATION. National Advertising Company, a Delaware corporation, located at 6850 South Harlem Avenue, Bedford Park Illinois 60501 and doing business as 33d Media ("3M Media") is hereby authorized to secure or reserve advertising space on the display(s) and in the manner listed below, and to place and exhibit advertising copy on those display(s) for the above advertiser and advertisees agency (jointly and severally "Advertiser"), if any, upon the terms of this contract. The display(s) shall advertise: CITY OF LODI Location Number Location and Description Approx. Size Ulum. Class See Note 1 Paintings Yearly (Inc. Orig.) Monthly Unit Charge See Note 2 007077 W/S 99, 50' N/0 PELTIER RD. FN 12x40 B 1 $1085.00 Print Name Title RENEWAL EFF. 4/1/97 -Total S 1085.0 Note 1: Class "A" displays are non -illuminated, Class "B" displays are to be illuminated daily from dusk until midnight standard time, and Class "C" displays are to be illuminated daily from dusk until dawn. Note 2: All cutouts, embellishments, special pictorials or paintings (e.g., clear coat) and -'or blended backgrounds not specifically included in a Monthly knit Charge will be billed at 3M Medias then current charges. All such charges shall be payable to 3.14 Nledia upon completion. TERM. The term of this contract shall be 36 months. The tern shall begin on the earlier of . or completion of the display(s) ("Effective Date"). 3M Media shall be permitted up to forty-five (45) days from receipt of acceptable final artwork to complete the display(s). PAYMENT. Advertiser agrees to pay 351 Media monthly in advance the Total Monthly Unit Charge above for display space charges plus applicable taxes, if any, beginning on the Effective Date and continuing throughout the full term of this contract. If the term of this contract is more than twelve (12) months, a y % per year increase in the Total Monthly Unit Charge will be applicable to each succeeding twelve (12) month period or portion thereof. All payments are due and payable within thirty (30) days of the invoice date at National Advertising Company, P.O. Box 98829, Chicago, Illinois 60693-8829. CONTRACT PROVISIONS. 3M Media will provide service to Advertiser upon the terms stated on this page and the Additional Provisions on the reverse hereof. Advertiser has read and fully understands all such terms and provisions. NATIONAL ADVERTISING COMPANY Acceptance Date: ADVERTISER Date: J Signature Signature Print Name Title Print Name Title BILLING ADDRESS (if different from above) ADVERTISER'S AGENCY Date: Signature Print Name Title DAVE SPENCER 274375 r 209)466-5021 3M Media Contact Person (Print Name) Employee No. 31N1 Media Local Phone Number 24-HOUR CUSTOMER SERVICE DEPARTMENT 1-800-568-7446 Form 510M -6195 Branch No. Standard Outdoor Display A&mLising Agr= mmem Conaact No. 3M MEDIA OUTDOOR DISPLAY ADVERTISING AGREEMENT CITY OF LODI LEGAL NAME OF ADVERTISER ADVERTISER'S AGENCY CITY OF LODI Trade Name of Advertiser 221 W. PINE ST. Mailing Address LODI, CA 95240 City, State, Zip Code _DIXON FLYNN (209) 333-6700 Advertiser Contact Person Telephone Number Mailing Address City, State, Zip Code Agency Contact Person Telephone Number AUTHORIZATION. National Advertising Company, a Delaware corporation, located at 6850 South Harlem Avenue, Bedford Park, Illinois 60501 and doing business as 314 Media ("3b[ Media") is hereby authorized to secure or reserve advertising space on the display(s) and in the manner listed below, and to place and exhibit advertising copy on those display(s) for the above advertiser and advertiser's agency (jointly and severally 'Advertiser"), if any, upon the terms of this contract. The display(s) shall advertise: CITY OF LODI Location Number Location and Description Approx. Size 111Unt. Class See Note I Paintings Yearly (Inc. Orig.) Monthly Unit Charge See Note 2 004540 N/S 12, 2.9 E/0 LODI C/L 12x24 A 1 $160.00 Print Name Title RENEWAL EFF. 7/16/97 -Totals 160.00 Note 1: Class "A" displays are non -illuminated, Class "B" displays are to be illuminated daily from dusk until midnight standard time, and Class "C" displays are to be illuminated daily from dusk until dawn. Note 2: All cutouts, embellishments, special pictorials or paintings (e.g., clear coat) andr'or blended backgrounds not specifically included in a Monthly Unit Charge will be billed at 3 .%l Medias then current charges. All such charges shall be payable to 3M Media upon completion. TERM. The term ofthis contract shall be 3 A months. The term shall begin on the earlier of . or completion ofthe display(s) ("Effective Date"). 3M Media shall be pemtined up to forty-five (45) days from receipt of acceptable final artwork to complete the display s). PAYMENT. Advertiser agrees to pay 3 M Media monthly in advance the Total Monthly Unit Charge above for display space charges plus applicable taxes, if any, beginning on the Effective Date and continuing throughout the full term of this contract. If the term of this contract is more than twelve (12) months, a t i % per year increase in the Total Monthly Unit Charge will be applicable to each succeeding twelve (12) month period or portion thereof. All payments are due and payable within thirty (30) days of the invoice date at National Advertising Company, P.O. Box 98829, Chicago, Illinois 60693-8829. CO.NTR-kCT PROVISIONS. 3M Media will provide smite to Advertiser upon the terms stated on this page and the Additional Provisions on the reverse hereof. Advertiser has read and fully understands all such terms and provisions. NATIONAL ADVERTISING COMPANY Acceptance Date: ADVERTISER Date: Vte Signature Signature Print Name Title Print Name Title BILLING ADDRESS (ifdifferent from above) ADVERTISER'S AGENCY Date: Signature Print Name Title DAVE SPENCER 274375 r 209) 466-5021 3M Media Contact Person (Print Name) Employee No. 3M Media Local Phone Number