AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute an Amendment to Extend the Transit Advertising Revenue Agreement with Valley Outdoor Advertising Through December 31, 2026, Under the Existing Terms and Conditions (PW)
end
MEETING DATE:
October 7, 2026
PREPARED BY:
Sean Nathan, Deputy Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing the City Manager to execute an amendment to extend the Transit Advertising Revenue Agreement with Valley Outdoor Advertising through December 31, 2026, under the existing terms and conditions.
body
BACKGROUND INFORMATION:
Since October 2015, the City of Lodi’s Transit Division has contracted out transit advertising services to generate additional revenue for transit operations and capital projects. Services include solicitation, sales, contracting, design, installation, administration, and maintenance of advertisements on city buses, bus shelters, and other transit facilities.
The current Transit Advertising Revenue Agreement with Valley Outdoor Advertising expired on September 30, 2026. Over the five-year term of the agreement, the Transit Division received $220,908 in advertising revenue.
Current Agreement Revenue History
Contract Year Minimum Annual Guarantee City Revenue Share Revenue Received by City
FY 2021/22 $33,750 43% $39,756
FY 2022/23 $45,000 43% $40,758
FY 2023/24 $45,000 44% $41,250
FY 2024/25 $50,000 45% $49,140
FY 2025/26 $50,000 46% $50,004
Five-Year Total $223,750 $220,908
Revenue received reflects amounts actually paid to the City. Certain advertising-related expenses were authorized separately by the Transit Division and deducted from payments during the contract term. Examples include the purchase of replacement glass advertising panels by Valley Outdoor Advertising on behalf of the City during a period of heavy vandalism when the City was not able to obtain replacement panels quickly. The City also commissioned Transit Division advertisements on interior panels and authorized the deduction of those expenses from the minimum guarantee payment to the City. These expenses were not required costs to Valley Outdoor Advertising under the Agreement.
The Transit Division has released a new Request for Proposals (RFP) for the Transit Advertising Revenue Program. Proposals are due October 9, 2026. Staff anticipates presenting a recommendation for award of the new contract to City Council on December 2, 2026, with the new agreement anticipated to begin January 1, 2027.
Due to current staffing constraints and the time required to complete the competitive procurement process, staff is requesting an extension of the existing contract through December 31, 2026, to maintain continuity of advertising services and associated revenue while the new procurement is completed. Valley Outdoor Advertising has agreed to continue providing services during the extension period.
The extension will maintain the existing financial terms, including the 46% revenue-share arrangement and $50,000 annual minimum guarantee, equivalent to a monthly minimum guarantee of $4,166.67.
Proposed Three-Month Extension
Extension Period Revenue Share Monthly Minimum Guarantee Minimum Revenue to City
October 1-December 31, 2026 46% $4,166.67 $12,500
No changes to the existing financial terms are proposed during the extension period.
FISCAL IMPACT:
The Transit Advertising Revenue Agreement is a revenue-generating agreement and does not require the City to pay Valley Outdoor Advertising for the services provided.
The proposed extension would provide the City with a minimum of $12,500 in advertising revenue from October through December 2026. The City will also continue to receive the applicable revenue-share amount if it exceeds the minimum guarantee.
FUNDING AVAILABLE:
This is a revenue-generating agreement and does not require City funding. Revenue received under the Agreement will be deposited into Transit Revenue Account 60000000.57321 and used to support Transit operations and capital needs.