Head of Corporate property, in consultation with the Head of Law and Governance and Head of Financial Services to enter in a bus shelter and advertising concession contract with Clear Channel, with Oxford City Council for a term of 15 years plus an extension period of 10 years. The contract sum consists of a fixed payment, paid annually and subject to RPI at 3%, totalling £8m for the full 25 years (if extended) plus a revenue share of 20% of the advertising revenue realised under the contract.

Following a procurement process two bids were received for this contract. Both were evaluated and the successful supplier agreed as the current incumbent, Clear Channel UK(CCUK).

The financial offer was broken down into a fixed annual income and percentage income from the advertising revenue generated. CCUK have offered a fixed annual income starting in Year One of £320,000 increasing by 3% RPI over the 15 to 20 year contract period and 20.5% of the advertising revenue starting in Year Two.

The Council will not incur any expenditure.

The current contract ends in November 2024. The procurement process has identified CCUK as the preferred supplier.

An extension of the current contract was considered but the opportunity to generate additional revenue from advertising was identified. The procurement has confirmed the current incumbent as the successful supplier and has provided an updated income offer.