The URL can be used to link to this page

Home My WebLink AboutAgenda Report - February 15, 1995 (60)oF� CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Renewal of contract with 3M National Advertising Company for City -leased Advertising Billboards MEETING DATE: February 15, 1995 SUBMITTED BY: Assistant City Manager RECOMMENDED ACTION: The City Council renew the contract with 3M National Advertising Company in the amount of $1,034.57 per month for each billboard. This three-year contract for two billboards, one each on the north and south end of town on Highway 99, also contains an escalation factor of 6t per year. BACKGROUND INFORMATION: For approximately the last fifteen years, the City has .contracted for billboards advertising on Highway 99. The sign boards are now owned by 3M National Advertising, who appear to have a monopoly as we cannot find other signs along Highway 99. The City received an offer to renew the contract which contained an 8% increase over the amount now being paid, $976.01, with an annual escalation of 8%. I have been in contact with David Spencer, the account representative handling this contract, and have been able to reduce the increases to 6&. Mr. Spencer insist that this is below the market rate for the signs and they cannot reduce their cost anymore. I vividly remember when we put up the first signs in the late 70's - there was an immediate increase in the City's Transit Occupancy Tax receipts. If we loose our signs I do not know when we can get another and what the location. I, therefore, am reluctant to recommend that we not renew the contract. We do have funds budgeted for these signs. The additional cost for this fiscal year is $675. We can absorb that amount in previously appropriated funds so I am not recommending a special allocation at this time. FUNDING: General Fund Respectfully submitted, (� A,_ terry L. Glenn Assistant City Manager JLG:br CCOM-188/TXTA.07A APPROVED: ° THOMA TER ON recycled paper L City Manager CC -1 National Advertising Mr. Tom Peterson 3M City Of Lodi P.O. Box 3006 Lodi, CA 95241 January 12, 1995 Dear Tom; ipany 2050 W. Fremont Stockton, CA 95203-1913 209 466 5021 209 466 6013 Fax 800 343 5643 JAN 17 '95 010*rovwr,y Cifice Here are the renewal contracts for the City of Lodi painted bulletins located on Highway 99. Please note the expiration dates on each agreement. Please place these agreements on the agenda for the next city council meeting, if possible. Tom, here are some facts and figures you might find helpful. Your average. cost to deliver 1,000 messages to the driving public is $1.32. That is very low compared to any other major media including newspaper, radio or television. You are delivering Lodi's message very efficiently. Team that up with a tasteful design with annual repaints and Lodi has a very effective ad campaign. I also enclosed a copy of several outdoor ads for Palm Springs that you might find helpful. As before, there will be a painting included each year of the contract. Also, we will produce the camera-ready artwork free of charge for the annual repaints. If you have any questions, please feel free to give me a call to discuss these further. I can be reached via voice mail at (800) 637-0053, mailbox number 740-7774 or at our Stockton office, (209) 466-5021. Thank you for the business. Sincerely, 3M Media David Spencer Senior Account Representative DS/cjw Enc. I R44n Form 51OL-2/90 Standard Painted Display Agreement (NON -CANCELLABLE) NATIONAL ADVERTISING COMPANY GENERAL OFFICES: BEDFORD PARK, ILLINOIS 60501 Local office # )f O, - LA�.(� 21 _41 l._.Qi,t� 7{ (LEGAL NAME OF ADVERTISER t (TRADE NAME) r (Street Address) C7 (City, State, Zip Code) CONTRACT NO (ADVERTISER'S AGENCY) (Street Address) (City, State, Zip Code) An(" A"u so C. Person to call Telephone Number Person to call Telephone Number AUTHORIZATION. The above identified actual advertiser, together with the advertisers authorized advertising agency, 0 any (hereinafter referred to jointly and severally as the Advertiser), hereby authorizes and contracts with National Advertising Company, (hereinafter called 3M National), of Bedford Park, Illinois, a subsidiary of Minnesota Minin andanufacturing Company, to provide advertising services on the following fisted displays. advertising �rTy fir in accordance with copyprovidedorapproved bythe Advetiser. Location Number Location and Description Approximate Size Illumj- nation Class (A, B. C,) See Note 2 Paintings Yearly (Including Original) See Note 3 Monthly Unit Charge See Note 4 (3`1G�A \0 S $ _ 1 \ I zxyc) ... tGSy.00 NOTE 1: All cutouts, embellishments, pictorials and/or blended backgrounds will be charged for separately and quoted upon presentation of artwork. NOTE 2: 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 3: Special paintings or cut-outs In addition to those specified above will be made at 3M National's then current charges therefor which will be quoted upon request NOTE 4: The Monthly Unit Charge shown above is applicable only to the first 12 months or less of the contract term. A % per year Increase in the Monthly Unit Charge will be applicable to each succeeding year, commencing on each anniversary of the effective date of this agreement. TERM. The term of this contract as to each display shall be months, beginning on the day such display is completed, herein called the effective date. The effective date of this agreement will normally be within sixty days (for a single display) orninetydays (for more thanone display) from the date 3M National receives the approved artwork from the Advertiser. If the Advertiser's approved artwork has not been received within the forty-five day limit as specified in the"Copy Approval" paragraph herein, 3M National may, at itsoption, charge the Advertiser 1/30of theabove Monthly Unit Charge foreach day beyond the said forty-five day limit until the said artwork has been received, and the Advertiser agrees to pay such charges upon receipt of billing therefor by QW National. If this is a contract for a renewal term of an existing contract, the effective date will be the expiration date of such prior contract term. ADDITIONAL PROVISIONS. The undersigned hereby authorizes National Advertising Company to investigate any reference or source to obtain credit infor- mation. The provisions on the reverse hereof are hereby incorporated herein by specific reference thereto and constitute a part of this agreement. Both sides of this contract and the information inserted herein have been carefully read and are fully understood. and the provisions herein correctly state the intentions of the undersigned. RECEIVED BY (Subject to acceptance by 3M National) r'J'Z Date: t / 1A eprese e N ACCEPTE D D NATIONAL ADVERTISING COMPANY By Billing Address: 'V',, r) , T�i (Signature) (� ` (Title) (Print Name '& Co.) (Signature) (Title) (Print Name & Co.) 411111111111111 Form 51OL-2/90 Starfdard Painted Oisplay Agreement (NON -CANCELLABLE) CONTRACT NO. NATIONAL ADVERTISING COMPANY GENERAL OFFICES: BEDFORD PARK, ILLINOIS 60501 Vlilf a t t�JL Local office # �- 1(LEGAL NAME OF ADVERTISER d.b.a. (TRADE NAME) (Street Address) (City, State, zip Code) r . CA Person to tail Teleohone Number ADVERTISER'S AGENCY) (Street Address) (City, State, Zip Code) Person to call Telephone Number AUTHORIZATION. The above identified actual advertiser, together with the advertiser's authorized advertising agency, if any (hereinafter referred to jointly and severally as the Advertiser), hereby authorizes and contracts with National Advertising Company, (hereinafter called 3M National), of Bedford Park, Illinois, a subsidiary of Minnesota Mining and M ufacturing Company, to provide advertising services on the following fisted displays. advertising in accordance with copy provided orapprovedbytheAdvediser. Location Number Location and Description Approximate Size Illumi- nation Class (A, B, C,1 See Note 2 Paintings Yearly (Including Original) See Note 3 Monthly Unit Charge See Note 4 she r, o 17 40 3 NOTE 1: All cutouts, embellishments, pictorials and/or blended backgrounds will be charged for separately and quoted upon presentation of artwork. NOTE 2'. 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 3: Special paintings or cut-outs in addition to those specified above will be made at 3M National's then current charges therefor which will be quoted upon request. NOTE 4: The Monthly Unit Charge shown above is applicable only to the first 12 months or less of the contract term. A % per year Increase In the Monthly Unit Charge will be applicable to each succeeding year, commencing on each anniversary of the effective date of this agreement. TERM. The term of this contract as to each display shall be �b months, beginning on the day such display is completed, herein called the effective date. The effective date of this agreement will normally be within sixty days (fora single display) or ninetydays (for more than one display) from the date 3M National receives the approved artwork from the Advertiser. If the Advertiser's approved artwork has not been received within the forty-five day limit as specified in the "Copy Approval" paragraph herein, 3M National may,at its option, chargethe Advertiser 1/30 of the above Monthly Unit Chargeforeach day beyond the said forty-five day limit until the said artwork has been received, and the Advertiser agrees to pay such charges upon receipt of billing therefor by W National. It this Is a contract for a renewal term of an existing contract, the effective date will be the expiration date of such prior contract term. t ADDITIONAL PROVISIONS. The undersigned hereby authorizes National Advertising Company to investigate any reference or source to obtain credit infor- mation. The provisions on the reverse hereof are hereby incorporated herein by specific reference thereto and constitute a part of this agreement. Both sides of this contract and the information inserted herein have been carefully read and are fully understood, and the provisions herein correctly state the intentions of the undersigned. RECEIVED BY (Subject to acceptance by 3M National) <--_ Date: 1 / i 2 19 Representativ ACCEPTED V/ NATIONAL ADVERTISING COMPANY (S ignatpre) (Title) By �' 1 r 1 Billing Address: (Print N669 & Co.) (Signature) (Print Name & Co.) (Title) OUTDOOR'S FINEST THE COLLECTION OF 1982 OBIS AWARD WINNERS Grand Prize Winner Advertiser: Palm Springs Convention & Visitors Bureau Agency: GumpertzlBentley/ Fried Los Angeles, CA Art: Newell Nesheim, Darryl Shimazu Copy: Elaine Cossman