* Community Development 589-3095
City of Nashua Planning and Zoning 589-3090
. sone Building Safet 589-3080
Community Development Division Code enforcement 589.3100
City Hall, 229 Main Sireet, PO Box 2049 Coan araMs mission cevaree
Nashua, New Hampshire 03061-2019 Transportation 880-0100
www. nashuanh.gov FAX 589-3119
Date: July 15, 2020
To: Lori Wilshire, Board of Aldermen President and Jim Donchess, Mayor
From: Sarah Marchant, Community Development Division Director
Re: AMENDMENT TO TRANSIT ADVERTISING SERVICES
The Division of Community Development, Transportation Department is proposing a contract
amendment to the existing three-year contract for Transit Advertising Services with Fuel Media
Holdings.
In the fall of 2019, the City solicited Request for Proposals (RFP’s) from vendors experienced in
transit advertising services RFP0008-092719. A total of two (2) qualified proposals were received
and opened on October 11, 2019.
ATA Outdoor $65% NTS / 35% ATA; $50,000 Guaranteed Annual Minimum
Fuel Media Holdings $65% NTS /35% ATA; $120,000 Guaranteed Annual Minimum
After reviewing both of these submittals the Transportation Department recommended entering into
a contract with Fuel Media Holdings over the three-year contract period. The Transportation
Department found Fuel Media Holdings to be a responsive and responsible contractor. This contract
was approved by the Budget Committee, as it is a revenue contract, in the fall of 2020.
In early 2020, Fuel Media Holdings staff began to seek advertisers in our market when COVID-19
began to impact the area. Since that time, advertising sales have dropped significantly creating a
situation where meeting the Guaranteed Annual Minimum is not possible. In the first year of the
contract, Fuel Media Holdings was obligated to pay the City of Nashua a total of $90,000 split over
three equal payments in June, September and December. The Federal Government allocated
funding under the CARES Act directly to the transit system which will be used to cover expenses,
to offset the loss of revenue, in the FY21 budget due to not meeting the Guaranteed Annual
Minimum Payment.
The contract amendment changes the language in section C. Revenue Compensation and Payments,
related to the Guaranteed Annual Minimum for the first year of the contract only. Effective July 1,
2020 all revenue collected on next space billings through December 31, 2020, will be paid at a ratio
of (65%) to Nashua Transit System and (35%) to Fuel Media Holdings, regardless of meeting the
Guaranteed Annual Minimum Payment. As this is a revenue contract additional approval from the
Budget Committee is not required, however this communication is being sent to ensure the Board is
aware of the change.
Fuel Media Holdings has hired an additional sales person, to focus on our market, and will continue
to work towards meeting the Guaranteed Annuai Minimum. In the fall, the Transportation
Department and Fuel Media Holdings will reevaluate the market and sales trends for year 2 of the
contract which begins on January 1, 2021.
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