Meeting_Body
REVISED
EXECUTIVE MANAGEMENT COMMITTEE
JANUARY 21, 2021
Subject
SUBJECT: METRO SYSTEM ADVERTISING
(LICENSE TO SELL AND DISPLAY ADVERTISING ON BUS AND RAIL)
Action
ACTION: APPROVE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. EXECUTE Modification No. 4 to Contract No. PS41099B - License to Sell and Display Advertising on Metro Bus System, with Outfront Media Group, LLC, to
1) Extend the temporary replacement of the Minimum Annual Guarantee (MAG) payments to Metro with monthly payments of 55% of actual sales revenues for one year, from January 1, 2021 to December 31, 2021;
2) Allow contractor to submit payments by the 80th day following the close of each month beginning January 1, 2021;
3) Amend ARTICLE VI of the Contract to revise the basis of the Letter of Credit from 50% of the Minimum Annual Guarantee (MAG) to 50% of projected Gross Annual Advertising Revenue Share for calendar year 2021;
B. EXECUTE Modification No. 2 to Contract No. PS41099R - License to Sell and Display Advertising on Metro Rail System, with Intersection Parent, Inc. to
1) Extend the temporary replacement of the Minimum Annual Guarantee (MAG) payments to Metro with monthly payments of 55% of actual sales revenues for one year, from January 1, 2021 to December 31, 2021;
2) Allow contractor to submit payment by the 80th day following the close of each month beginning January 1, 2021;
3) Amend ARTICLE VI of the Contract to revise the basis of the Letter of Credit from 50% of the Minimum Annual Guarantee (MAG) to 50% of projected Gross Annual Advertising Revenue Share for calendar year 2021;
4) Contingent on outcome of a Commercial Sponsorship and Adoption Policy ("Sponsorship Policy"):
i. Upon Board adoption of a Sponsorship Policy - Amend Exhibit B Statement of Work, Article 8, Subarticles 8.6.2.2 and 8.6.2.3 to remove the station domination restriction of maximum 90 days occupancy and repeat sponsor for inter...
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