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Kingman transit commission approves RFP to expand bus advertising to boost operating-match revenue
Summary
The Transit Advisory Commission voted to release a request for proposals to expand third-party advertising on buses and related assets to increase local-match revenue; staff said the program historically generated about $5,000 annually and the RFP would allow proposals for bus wraps, shelters and benches.
At its July 28 meeting, the City of Kingman Transit Advisory Commission voted to release a request for proposals to expand third-party advertising on transit buses and related assets to generate revenue for the city's local match requirement for operating expenses. The motion to release the RFP passed on a voice vote with commissioners saying “aye.”
The commission and staff framed the RFP as an attempt to grow a revenue stream that has been inconsistent. Public Transit Superintendent Sherry said, "we had just just, shy of $5,000, earned in advertising revenue last fiscal year," and noted the program has produced little or no revenue in some years. She told the commission the budgeted goal for advertising revenue has been $5,000 and that in the most recent fiscal year the program was about $26 shy of that goal.
Why it matters: the transit department uses advertising proceeds toward its required local share of operating costs for grant-funded service; unlike fare revenue, which is shared with grant partners, advertising income can be applied entirely to the local match. Commissioners described the RFP as a way to broaden offerings beyond current inside-poster and exterior-window ads to include full-bus wraps and potential shelter or bench advertising if vendors propose them.
Staff outlined how a third-party vendor relationship would likely work: a contractor would sell and maintain advertisements, remove them at the end of terms, and share revenue with the city. Staff also said some vendors offer shelters and benches in exchange for advertising rights; those vendors have been more active in larger urban markets. A vendor-response to the RFP would determine whether such shelter/bench models are available or viable in Kingman.
Commissioners raised maintenance concerns, including graffiti and upkeep of shelter assets; staff said any vendor chosen would be expected to maintain the advertising displays. The commission approved release of the RFP and asked staff to proceed.
The commission did not set a dollar guarantee in the motion; staff will return with proposals and recommended contract terms if vendors respond to the RFP. Public outreach and vendor interest will determine whether the program materially increases nonfare revenue going forward.
