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RESOLUTION AUTHORIZING EXECUTION OF A THIRD AMENDMENT TO CONTRACT TR03-ADV WITH CBS OUTDOOR, INC. (FORMERLY KNOWN AS VIACOM OUTDOOR GROUP, INC.) FOR TRANSIT ADVERTISING SERVICES FOR TRANSIT VEHICLES, METRORAIL STATIONS, AND THE SOUTH MIAMI-DADE BUSWAY ADVERTISING KIOSKS BY ALLOWING NON-COMMERCIAL ADVERTISEMENTS BUT DISALLOWING POLITICAL ADVERTISEMENTS; AND AUTHORIZING THE COUNTY MAYOR OR MAYOR�S DESIGNEE TO EXERCISE THE PROVISIONS CONTAINED THEREIN

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves this Third Amendment to Contract TR03-ADV between Miami-Dade County and CBS Outdoor, Inc. (formerly known as Viacom Outdoor Group, Inc.) to provide transit advertising services in substantially the form attached hereto and made a part hereof by allowing non-commercial advertisements but disallowing political advertisements; and authorizes the County Mayor or Mayor�s Designee to execute same for and on behalf of Miami-Dade County, and to exercise the provisions contained therein.

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Date:

To: Honorable Chairwoman Rebeca Sosa
and Members, Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Resolution Authorizing Execution of Third Amendment to Contract TR03-ADV with CBS Outdoor
Group, Inc. (formerly known as Viacom Outdoor Group, Inc.)

STAFF RECOMMENDATION
RECOMMENDATION
It is recommended that the Board of County Commissioners (Board) approve the Third Amendment (Amendment) to Contract TR03-ADV with CBS Outdoor Group, Inc. (CBS Outdoor). This is a non-exclusive contract for the purpose of selling advertising space on transit vehicles, Metrorail stations, and the South Miami-Dade Busway.

Miami-Dade Transit (MDT) maintains that its vehicles and facilities are non-public and proprietary in nature and are not intended for use as a zone of free speech and expression. The attached Amendment updates the policy contained in Contract TR03-ADV relating to advertisements on transit vehicles, Metrorail stations, and the South Miami-Dade Busway.

SCOPE
The policy change recommended in this Amendment, will have a countywide impact.

FISCAL IMPACT/FUNDING SOURCE
This Amendment provides a revenue source for MDT and has the potential to increase MDT�s net advertising revenues; therefore, this item will have no negative fiscal impact on current or future budgets.

TRACK RECORD/MONITOR
MDT has entered into Contract TR03-ADV with CBS Outdoor on September 2004. To date, the contractor�s overall performance and submission of monthly reports and revenue payments, has been satisfactory. The staff responsible for monitoring this Contract TR03-ADV is Rosemary Cortes, MDT Contracts Administrator.

MANAGER'S BACKGROUND
BACKGROUND
On July 13, 2004, the Board awarded Contract TR03-ADV to Viacom Outdoor Group, Inc. for the purpose of selling advertising space on transit vehicles, Metrorail stations, and the South Miami-Dade Busway advertising kiosks for MDT (R-862-04). The contract had an initial five (5) year term with two options-to-renew (OTR) for up to five additional years; the first OTR was for three (3) years and the second is for two (2) years. On December 29, 2005, Viacom Outdoor Group, Inc. changed its name to CBS Outdoor Group, Inc.

Under the current Contract, CBS Outdoor sells, installs, and maintains all advertising on Metrobus, Metromover and Metrorail vehicles, Metrorail passenger stations, and the South Miami-Dade Busway advertising kiosks.

CBS Outdoor pays Miami-Dade County (County) a monthly Annual Minimum Guarantee (AMG), or 60% of its net billings, whichever is greater. Total advertising revenues received from CBS Outdoor since the inception of Contract TR03-ADV through November 2012 is approximately $22,788,505.00.

On December 16, 2008, the Board approved the First Amendment to Contract TR03-ADV, which increased the AMG from $1,000,000.00 to $2,000,000.00 and exercised the first OTR (R-1424-08). On May 25, 2012, the second and final OTR was approved and is scheduled to end September 2014.

Through Resolution R-976-10, the Board approved a Second Amendment allowing advertising of alcoholic beverages (with some restrictions) and updating the regulations relating to non-commercial advertisements contained in Contract TR03-ADV. However, the current regulations limiting, with few exceptions, advertisements to only those which are commercial in nature have had unintended consequences. Specifically, paid advertisements promoting federal, state, municipal, and/or not-for-profit agencies are ineligible to be placed at any of the above sites, unless they promote a commercial activity. As such, several of these ads have been rejected by MDT. For example, the Florida Department of Transportation (FDOT) requested the placement of paid advertisements which promoted an anti-littering campaign. However, since the ads were non-commercial in nature, they were ineligible for placement. Other advertisements paid for by government agencies and/or not-for-profit entities have likewise been deemed ineligible.

This Amendment would eliminate the current requirement that advertisements be commercial in nature, by allowing non-commercial advertisements, but prohibiting political advertisements for all interested entities. Finally, in an effort to avoid the perception of bias or approval of any particular political views or candidates, this Amendment would also prohibit political advertisements on transit vehicles, Metrorail stations, and the South Miami-Dade Busway.

All other terms and conditions contained in Contract TR03-ADV shall remain the same.



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Alina T. Hudak
Deputy Mayor