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FROM: Neil Killens DATE: February 6, 1998.
Manager of Transportation
REPORT M TRAN H 001/98
SUBJECT: EXECUTION OF THE AGREEMENT WITH STREET LEVEL
MEDIA INC. FOR THE RIGHT TO ADVERTISE ON PICKERING TRANSIT
VEHICLES
ORIGIN: Street Level Media has been awarded an extension of their previous
Agreement with the Town.
FINANCIAL IMPLICATIONS:
1998 - 2000 OPERATING:
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Transportation Services - Publia Transit Operating Budget
Account N 2350 - 9940 Advertising Space Revenue
For each contract year, Street Level Media will pay the Town the greater of;
a) 50% of total Gross Billings, or
b) the following schedule of Total Annual Guaranteed Payments (based on the
assumption of 23 active buses);
Total Annual Guaranteed Payments:
6/1/97- 5/30/98: $55,175
6/1198- 5/30/99: $59,350
6/1/99- 5/30/00: . $61,650
Additional Revenue Payable by Street Level Media:
5900 /year for each "tail wmp" advertising sign
56,000 /year for each "full wrap' advertising sign
54,150 /year for each "half wrap' advertising sign
BACKGROUND:
On July 11, 1997 Street Level Media were selected as the successful bidder for the right
to sell advertising space on Pickering Transit Vehicles, RFP -1.97. ARer the contract was
awarded, the issue of "bus wrap' advertising became a concern. The process of bus wrap
f advertising involves the design of a digital image which is produced in large scale on
4: vinyl. The vinyl advertisement Is "wrapped" on the exterior surface of the bus. A
contravision product is used on exterior glass areas of the advertisement in order to allow
passengers to see outside from the interior of th6.bus,
t�7 2
Conditions for acquiring approval from the. Town ftlPbus wrap advertising were not
clearly defined at the outset of the most recent extension'of our Agreement with Street
Level Inc,. Due to the polentik sensitive nature of this form of advertising, the Town
provided direction to Strect Level Media to draft a formal Agreement for approval by
Council, Street Level Media have identified a review process in the Agreement whereby
each bus wrap design would be individually reviewed, assessed for suitability and
approved prior to installation.
The attached contract was received by Pickering Transit on January 21, 1998. The
principle items contained in the agreement include:
I. The contract term shall be for three (3) years commencing on June I, 1997 and until
May 30, 2000 with an option to renew for one additional two (2) year term.
2. The Town grants Street Level Media exclusive right to sell and place advertisements
both on and in Pickering Transit buses. i
3. The Town grants the right to the Company to sell and install one "Full Wrap' bus for a
period of 12 months beginning in February 1998 as a pilot project, Having assessed
this pilot project, the Town may grant the Company the right to sell up to a total of
four (4) "Full Wrap" buses plus four (4) "Half Wrap' buses. The Town shall have the
right to approve in advance, the pictorial design and messages on all "Full Wrap' or
"Half Wrap" buses. A decision on the suitability of each bus wrap design shall be
provided by the Town to the Company within 30 days of a submission of a design by t
the Company. -j
4. Pickering Transit identification will be integrated into the pictorial design of each
wrapped bus. Street Level Media will be responsible for all costs associated with
production, installation and removal of vinyl advertising.
5. The Town may grant Street Level Media up to four (4) full -wrap and four (4) half-
wrap, bus advertisements.
6. The Town may produce at our cost,' adIve'rtising'th'at' will be used as "filler-copy" in
unsold space. Street Level Media agrees to post this material at no cost to the Town I
as unsold space permits. 1
7. The Town is the sole and final arbiter in all matters relating to the acceptance of !�
advertising to be placed in or on Pickering Transit buses. The Town may refuse or
order the removal of any message, at any time, at our discretion.
The Town Solicitor has reviewed the Agreement as to form and as to the legality of same,
ATTACHMENTS:
I. Draft By -Law to execute the Agreement.
Neil Killens
Manager of Transportation J
Copy: T,1. Quinn, General Manager ^�
P. Wyger, Town Solicitor u'
G. Peterson, Director of Financial Servic�a !
Councillor Brenner' ` !
104N OF P m
THE CORPORATION OF THE TOWN OF PICKERING
BY-LAW NO. 5213/98
Being a by -law to authorize the execution of the Agreement
between the Corporation of the Town of Pickering and Street
Level Media Inc. respecting the right to sell advertising both
on and in Pickering Transit buses.
WHEREAS Street Level Media Inc, has supplied an Agreement that meets with the
approval of the Department of Transportation;
NOW THEREFORE, the Council of the Corporation of the Town of Pickering
HEREBY ENACTS AS FOLLOWS:
The Mayor and Clerk are hereby authorized to execute the Agreement between the
Corporation of the Town of Pickering and Street Level Media Inc. regarding the right to
sell advertising on Pickering's buses, which Agreement shall be substantially in
accordance. with the forth attached hereto as schedule "A ".
By -law read a first, second and third time and finally passed this 2nd day of March, 1998.
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lWayne Arthurs, Mayor
�. Bruce Taylor, Town Clerk
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