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52 APPENDIX C Sample Requests for Proposals
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70 Transit Authority of River City (TARC) Request for Proposals PART II â SCOPE OF WORK
71 SECTION 1: FLEET/OPERATIONS INFORMATION The Transit Authority of River City (TARC) is the agency of local government that operates public transit services in the Greater Louisville region. TARC operates sixty-seven (67) routes throughout Jefferson County and also serves Bullitt and Oldham Counties in Kentucky as well as Clark and Floyd Counties in Indiana. Most of TARCâs service operates between the hours of 4:30am to 1am on weekdays, 5am to 1am on Saturdays, and 5am to 1am on Sundays. As of January 1, 2002, it is estimated that TARC will be operating approximately 272 fixed route buses. Of the 272 buses that will comprise TARCâs fleet in 2002, approximately 230 buses will be full-sized forty (40) foot coaches while the remainder of the fleet will be thirty (30) foot coaches. On weekdays, TARC operates a total of one hundred eighty four (184) coaches during peak periods on fixed routes and eighty-eight (88) coaches during off-peak periods (middle of the day) on fixed routes. On Saturday, a maximum of fifty-seven (57) coaches operate on fixed routes while on Sunday a maximum of thirty-seven (37) coaches operates on fixed routes. During TARCâs most recent fiscal year that ended on June 30, 2001, over 15.2 million passengers were carried on fixed route services. This represents a 1.4% increase in ridership as compared to the previous fiscal year. SECTION 2: TRANSIT ADVERTISING PROGRAM OBJECTIVES The major objectives that TARC wishes to achieve for the transit-advertising program are as follows: 2.1 To maximize the advertising revenues paid to TARC. TARC seeks a sustainable Contractor to grow the transit advertising program. 2.2 To assist TARC with advertising and promoting its programs and services. TARC frequently uses both interior and exterior transit advertising to market various aspects of its service and to provide information to passengers. 2.3 To properly maintain TARCâs fleet of vehicles with respect to advertising frames and posters. Advertising on TARC vehicles must be attractively presented and the use of frames must not create safety hazards for passengers or TARC employees. The advertising racks must also not cause damage to wash racks or other TARC equipment. 2.4 To minimize the impact of posting activities for TARCâs Maintenance personnel. TARCâs Maintenance personnel are not responsible for posting exterior or interior signage. 2.5 To maximize opportunities for minorities, females, and Disadvantaged Business Enterprises to participate in the performance of this contract. TARC is committed to an affirmative action program that will employ minorities and women wherever employment opportunities exist. Whenever subcontractor services are needed, TARC strongly encourages that minority and female-owned businesses be given strong consideration by the Contractor. 2.6 To assist non-profit and community organizations and institutions with public service advertising when unsold space is available.
72 SECTION 3: FINANCIAL REQUIREMENTS 3.1.1 Revenue Split â Each proposal that is submitted to TARC for the transit advertising RFP must contain a percentage of gross amounts from advertising received by the contractor. The term âgross amounts from advertisingâ means the gross cash sums actually received by the contractor as payment from advertisers for the display of their advertisements after deductions of: (a) Commissions, if any, retained by the advertising agencies, not to exceed fifteen (15) percent. (b) National or regional sales representative commissions not to exceed fifteen (15) percent. (c) The amount of any and all sales, use, gross receipts, and similar taxes imposed upon the contractor in respect to the business transacted under the contract, but excluding income and property taxes. No posting charges or any other miscellaneous fees may be charged to TARC for the placement of exterior and interior signs. 3.1.2 Minimum Annual Guarantee â TARC will be guaranteed a minimum annual payment by the contractor, regardless of the contractorâs gross revenues from its advertisers. The guarantee will be renegotiated in the event that TARCâs fleet size and/or the amount of authorized advertising space is reduced by ten (10) percent or more at any time during the period of the contract. 3.1.3 Payments â Payments are to be made monthly. Payments earned in any one month are due no later than the 20th day of the following month. The Contractor must pay twenty-five (25) percent of the agreed upon minimum annual guarantee by the 20th day of the following month for each quarter of the calendar year. The only authorized deductions from this amount will be bad debts, as defined in Section 3.1.4, or a work stoppage lasting five days or more. The procedure for lessening or cessation of payments during a work stoppage will be negotiated with the successful proposer. 3.1.4 Bad Debts â Deductions for bad debts may only be made once a year, at the time of the annual reconciliation, for bills ninety (90) days or more in areas which have formally been declared non-collectable by the contractor. The contractor must receive written permission from TARC before a bill can be declared a bad debt. If a bill that has been declared a bad debt is subsequently collected, the contractor must then forward a payment to TARC based on the standard revenue split. 3.1.5 Current Advertising Contracts â The current TARC contract provides that upon its expiration, the current Contractor is to receive twenty (20) percent of the gross income for twelve months from existing advertising contracts extending beyond the expiration date of the current TARC contract. TARC will assign these contracts to the new Contractor. Gross income from such contracts shall be treated as any other income from advertising, except that for twelve (12) months new Contractor will remit to the current Contractor out of new Contractorâs share of the gross income an amount equal to twenty (20) percent of the gross income from such contracts.
73 SECTION 4: SERVICE REQUIREMENTS 4.1.1 TARC Marketing and Promotion â Providing that the TARCâs Director of Marketing or his/her agent give sixty (60) days advance notice to the contractor, TARC shall have the right to the exclusive use of no more than ten (10) percent of each type of exterior advertising for a maximum of twenty-six (26) weeks per year to market and promote TARCâs programs and services. Additionally, TARC shall have the right to the exclusive use of a minimum of eight (8) interior cards in each TARC coach at all times. TARC shall also have the right to use any unsold advertising space for the same purposes. In both cases, the contractor shall install, maintain, and remove TARCâs advertising at no charge. TARCâs use of advertising space for self-promotion may be pre-empted by paid advertisements only with the prior permission of the Director of Marketing. TARC will collaborate with the Contractor so as not to take away valuable revenue advertising space for potential advertising customers. 4.1.2 Public Service Announcements â The contractor must develop a program that discounts the cost of posting advertising for non-profit agencies or organizations, when unsold space is available. SECTION 5: ADMINISTRATIVE PROVISIONS 5.1.1 Term â The term of the agreement shall be for three (3) years commencing on January 1, 2002, and ending on December 31, 2004. TARC will have the option to extend the contract for up to two (2) one-year periods. The maximum length of the contract shall be for a period of not greater than five (5) years. 5.1.2 Rights Granted â TARC has authorized advertising rights as specified in the proposed agreement. However, TARC warrants and represents that the contractor shall only have the exclusive right to place such advertising as may be authorized. TARC does not warrant or represent that any particular level of advertising, or any advertising at all, will be authorized during any particular period of time covered by the agreement. TARC reserves the right to reject any proposed advertising. 5.1.3 Vehicle Advertising Space â It is anticipated that as of the effective date of the proposed agreement, there will be approximately 272 buses available for advertising. There are spaces for 875 signs. The number of authorized exterior advertising signs will be as follows: Name of sign Size Location on bus Quantity King 21â x 144â Street side 213 Queen 21â x 72â Curb side 224 Queen 21â x 72â Street 36 Tail 21â x 66â Back 238 Front 18â x 40â Front 139 Side 18â x 40â Curb side 25
74 A maximum of twenty-five (25) vehicles will be available for fully or partially (supertails, âking-kongsâ, etc.) wrapped illustrated buses. TARCâs trolleys and smaller neighborhood shuttle vans (25â or smaller) are not available for advertising. All designs for illustrated buses must have the written approval of the Director of Marketing. 5.1.4 Additional Advertising â TARC reserves the right to consider and implement other types of advertising media for bus interiors and exteriors at any time during the term of this contract. Such media may include, but not be limited to, advertising methods using various types of new technology. Such advertising methods would be contracted and implemented to TARCâs best advantage. TARCâs Director of Marketing or his/her agent must give written approval of the use of any new type of interior or exterior signage. 5.1.5 Audits â TARC reserves the right to have an annual audit conducted by a Certified Public Accountant selected by TARC. The contractor shall pay half the cost of this audit up to a maximum cost to the contractor of $5,000 per audit. The contractor shall be required to make available at its local Louisville office all records of the company necessary for a CPA to conduct the annual audit. 5.1.6 Reports â Along with each monthly payment that is due by the 20th day of the following month, the contractor shall include: ⢠A Statement of Gross Billings generated by the contractor during the period, for which the monthly payment is made, signed by a responsible officer. ⢠An Account Activity Summary that shall include a percentage allocation of gross billings by client categories. The client categories are Commercial, Political, TARC, and Public Service Announcements. ⢠A copy of all advertising contracts that were executed during the previous month. 5.1.7 Schedule of Rates and Charges â On or before the first business day of each calendar year, the contractor shall submit to TARCâs Director of Marketing a complete Schedule of Rates and Charges for all advertising charges under the proposed agreement. 5.1.8 Trades, Discounts, and Bonuses â No trades are permitted without the prior written consent of the Executive Director. Discounts or bonuses will be permitted without prior written approval providing all of the following condition are met: such a transaction results in a direct financial benefit to TARC and in no way relates to the sale of transit advertising on other transit systems; the contractor is prohibited from receiving any consideration or commission other than payments from which TARC receives a cash percentage; and discounts or bonuses are clearly itemized with appropriate footnotes in contractorâs sales contracts. 5.1.9 Ownership and Maintenance of Equipment â Contractor, at its own expense, shall furnish all new displays, racks, space frames and other such equipment, with the following exceptions. New vehicles purchased by TARC shall be equipped with ad frames at TARCâs cost of replacing frames during the process of painting, repairing and refurbishing its vehicles in the
75 course of TARCâs own maintenance programs. TARC will retain full title and ownership rights to all of this equipment once it has been installed. The contractor will also be responsible, at its own expense, for the maintenance of all artwork on all illustrated buses during the term of the contract. Material that becomes torn or absent during normal operation and maintenance of the coach must be replaced at the expense of the contractor in a timely fashion Contractor will be responsible for removing the advertising material from an illustrated bus upon the expiration of the advertising contract. 5.2.0 Insurance and Indemnification â The contractor will maintain Workersâ Compensation Insurance insuring the employers responsibility under the Kentucky Revised Statutes; Employersâ Liability with limits of not less than $500,000 each occurrence; Comprehensive General Liability Insurance with limits of not less than $1,000,000 each occurrence; and Comprehensive Automobile Liability Insurance with limits of not less than $1,000,000 each occurrence. The contractor will also indemnify TARC and its employees. Contractor shall indemnify and save harmless the Authority, its Board of Directors, officers, and employees from and against all loss, costs (including but not limited to reasonable attorneyâs fees), liability, damage and expense for personal injury, death or property damage, arising out of the acts or omissions of the Contractor, its employees, subcontractors, or agents, related to performance or nonperformance of work under this Contract by the Contractor, its subcontractors, employees or agents. Contractorâs indemnification obligations shall exclude such loss, costs, liability, damage or expense to the extent caused by the negligent acts, errors or omissions of the Authority, its employees, agents or third party contractors, willful misconduct by the Authority, its employees, agents, or its third party contractors, or Authorityâs breach of this Contract or any other Contract Document. 5.2.1 Local Sales Representative â The Contractor shall maintain a full-time local sales representative in Louisville in order to facilitate coordination between TARC and the Contractor. TARC will provide Contractor with a shop location for the preparation and posting of signage. This area must be kept in a neat and working order. 5.2.2 Nondiscrimination, Affirmative Action, and Disadvantaged Business Enterprise The Contractor shall comply with all of TARCâs policies regarding nondiscrimination and Affirmative Action and shall support TARCâs policies regarding Disadvantaged Business Enterprise participation. These policies are detailed in PART I, Section 4.6 of this RFP.