TAMRMS#: B06
10.3
REQUEST FOR DECISION
title
Transit Advertising Contract
Presented by: Trever Sparrow, Senior Manager, Public Operations - Transit
label
RECOMMENDED MOTION(S)
recommendation
That the Chief Administrative Officer be authorized to execute the renewal and amending agreement for the provision of bus, bus bench and transit shelter advertising with Pattison Outdoor Advertising Limited Partnership by its general partner, Pattison Outdoor Advertising Ltd. for a 5 year renewal term starting August 1, 2026 and ending July 31, 2031, on terms and conditions acceptable to the Chief Administrative Officer.
body
SUMMARY
In October 2016, the City entered a 10 year agreement with Pattison Outdoor Advertising Limited Partnership by its general partner, Pattison Outdoor Advertising Ltd. (“Pattison”) for the provision of advertising on bus benches, transit shelters and buses expiring on July 31, 2026. In accordance with this agreement, the parties may agree to renew the agreement for a further period not exceeding 10 years. The parties also propose to amend certain terms of the agreement, in particular the amount of the annual advertising production credit and the proportional share of the net advertising revenue.
The estimated annual revenue to the City during the proposed renewal period exceeds $100,000, which is the limit defined in Council Policy C-CAO-01 Chief Administrative Officer Delegations and Administrative Directive A-PUR-01 Purchasing Directive; therefore, Council approval is required for this renewal and amendment.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
N/A.
BACKGROUND AND DISCUSSION
The City issued Invitation to Tender, ITT16-0009 on January 8, 2016 (“ITT”). The ITT contemplated a renewal period not exceeding 5 years.
Pattison was the successful proponent of the ITT and in October 2016, the City and Pattison entered into an agreement for the provision of advertising on bus benches, transit shelters and buses expiring on July 31, 2026 (the “Original Agreement”).
The Original Agreement was then amended by an amending agreement dated February 27, 2018 (the “First Amending Agreement” and together with the Original Agreement the “Advertising Agreement”).
Pattison requested a renewal of the Advertising Agreement.
The Advertising Agreement states that the parties may renew the agreement for a further period not exceeding 10 years. Since the renewal period contemplated in the ITT is a period not exceeding 5 years the proposed renewal period at this time is 5 years.
Following Pattison’s request to renew the Advertising Agreement, the parties entered negotiations for the terms of the renewal. The proposed renewal terms are to:
- renew the Advertising Agreement for a period of 5 years, starting August 1, 2026 and ending July 31, 2031;
- increase the City’s annual advertising production credit by 10% (the annual advertising production credit is the amount provided by Pattison to the City for the purpose of producing material to promote the St. Albert brand on transit advertising within St. Albert); and
- increase the City’s proportional share of the net advertising revenue by 12% (the net advertising revenue is the total gross revenue derived by Pattison from its operations under the Advertising Agreement net of all sales and goods services taxes and qualifying expenses).
Council Policy C-CAO-01 Chief Administrative Officer Delegations and Administrative Directive A-PUR-01 Purchasing Directive limit delegation to the Chief Administrative Officer to enter into revenue contracts exceeding $100,000. The anticipated revenue received under the Advertising Agreement during the renewal term exceeds this value and subsequently requires Council approval.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A.
IMPACTS OF RECOMMENDATION(S)
Financial:
The renewal terms will increase the revenue received from Pattison by 12% and will increase the annual production credit granted to the City by 10%.
Compliance & Legal:
None at this time.
Program or Service:
None at this time
Organizational:
None at this time
Risks
None at this time
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
None at this time
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
G.1.7 Transit Fixed Asset Management and Maintenance
body
Report Date: July 14, 2026
Author(s): Trever Sparrow
Department: Public Operations
Department Director: Tim Saunders
Managing Director: Dinu Alex
Chief Administrative Officer: William Fletcher