TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34874 with In-Ter-Space Services, Inc., dba Clear Channel Airports of Allentown, PA, for the development and operation of the Long Beach Airport’s advertising program, to extend the term of the contract through January 31, 2027. (Districts 4,5)
DISCUSSION
City Council approval is requested to amend Contract No. 34874 with Clear Channel Airports (Clear Channel) to continue developing and operating Long Beach Airport’s (Airport) advertising program.
On December 12, 2017, the City Council awarded a contract to Clear Channel as part of its adoption of RFQ No. AP17-053 for developing and operating the Airport’s advertising program for a period of five years with the option to renew for two additional one-year periods. The current contract will expire on July 31, 2023. The Airport is requesting to renew for the two one-year periods and further extend the term an additional one and a half years through January 31, 2027.
The aviation industry has been significantly affected over the last several years due to the COVID-19 pandemic. Although the economic recovery is underway, several years of unanticipated financial impacts occurred. The pandemic began during the second year of Clear Channel’s term, reducing advertising sales due to a significant decrease in travel. Clear Channel invested heavily in digital networks, custom static displays, and theming throughout the Airport, without the ability to recoup its initial investment. The Airport’s Phase II Improvement Program was also launched, which altered passenger traffic patterns and required frequent relocation or removal of advertising displays, which further diminished the profitability of the Airport’s advertising program. Extending the contract term through January 2027 will allow Clear Channel to compensate for opportunities lost during the pandemic and further reinvest in the program.
As...
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