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Board approves MTA transit‑advertising contract with Titan; supervisors press for earlier letter of credit and limits on naming rights
Summary
The Board adopted a resolution authorizing the Municipal Transportation Agency to contract with Titan Outdoor for transit advertising from 2009–2014. Supervisors asked the vendor to accelerate a proposed letter of credit and agreed contract language that any naming rights first go to the MTA board and then to the Board of Supervisors.
The San Francisco Board of Supervisors on June 16 adopted a resolution authorizing the Municipal Transportation Agency (MTA) to execute a transit advertising contract with Titan Outdoor, effective July 1, 2009, through June 30, 2014. The contract includes a minimum revenue guarantee to MTA of approximately $22,000,000 over the term.
Supervisor David Campos raised concerns about an advance payment of $4,000,000 that Titan had provided and asked whether the city should receive an immediate letter of credit to protect the public against vendor default. Gail Stein, project manager for the MTA, introduced Titan’s representatives; Don Allman, Titan’s chief executive, said the company initially planned to deliver a letter of credit by Oct. 1 but could “prepare to put the letter of credit in place in October.” When pressed, Titan chairman Bill Apfelbaum told the board the company could install the letter of credit sooner if required; after brief discussion Titan representatives agreed to expedite the security if the board so required.
Supervisor John Avalos asked about naming rights and corporate sponsorship included in the contract. The MTA staff said substitute language was inserted so that any naming‑right or corporate sponsorship proposals would first be considered by the MTA board and then by the Board of Supervisors; Titan confirmed its agreement with that contract language.
The board took a roll call vote on the resolution. The measure passed with nine ayes and one no (Supervisor Daly voted no). The MTA may now execute the contract subject to the agreed security provision and the naming‑rights process in the contract.
Key facts - Contract term: 07/01/2009 – 06/30/2014 - Minimum guarantee to MTA: approximately $22,000,000 (as stated in the staff report presented on the record) - Advance payment noted in the hearing: $4,000,000 (Titan to Muni as advanced payment) - Board vote: 9 ayes, 1 no (Supervisor Daly)
What comes next: MTA staff and Titan agreed on the record to finalize the letter‑of‑credit timing; the contract also includes the substituted language on naming rights that requires MTA board review and subsequent Board of Supervisors’ consideration before any naming rights are implemented.
