From: Murchison Consulting
To: [email protected]
Subject: Fwd: council agenda item 15 for May 6th
Date: Friday, May 2, 2025 4:13:18 PM
Attachments: HB May 2025.docx
You don't often get email from [email protected]. Learn why this is important Mayor and City Council members:
Please find attached letter for your consideration, in response to staffs award to Rio Media.
Mike Murchison,
Representing Interstate Outdoor Advertising
Best Regards,
Mike Murchison -
"Mike 24-7"
Murchison
Consulting
[email protected]
www.murchisonconsulting.net
562-884-3009
5/6/25
15 (25-335)
May 2, 2025
Dear Mayor and Council Members,
Re: Lifeguard Tower Advertising RFP – Agenda Item 15
Interstate Outdoor Advertising vs. Rio Media
Opportunity:
The City of Huntington Beach has a unique opportunity to generate thousands of dollars of revenue from lifeguard tower advertising. Interstate Outdoor Advertising responded to an RFP in January 2025. The guaranteed amount to be paid to Huntington Beach by Interstate Outdoor Advertising is a minimum of $40,000 based on estimated revenue generated by 22 lifeguard towers. Rio Media has a guarantee of $0 to the city.
Background:
In November 2023, Interstate Outdoor Advertising approached Huntington Beach with the idea of advertising on lifeguard towers, based on the success they have had in Los Angeles County. In February 2025, the City of Huntington Beach issued an RFP, in which two firms responded.
The City of Huntington Beach staff ranked the firms written proposals as follows:
Interstate Outdoor Advertising: 1082.50 points
Rio Media: 990 points.
City staff proceeded to hold oral interviews with each firm. No oral scores were published.
On March 12, 2025, Rio Media was notified of the City’s intent to award them the RFP.
Final findings to warrant awarding the project to Interstate Outdoor Advertising:
• Interstate Outdoor Advertising will guarantee a minimum of $40,000 annually. Rio Media’s guarantee is $0.
• Interstate Outdoor Advertising currently has advertising on 125 lifeguard towers in LA County in which they guarantee 50% of the revenue back to the county. (They generate $500,000 annually, of which they pay $250,000 back to LA County Fire).
• Interstate Outdoor Advertising was ranked 92 points higher than Rio Media. • Interstate Outdoor Advertising is the only company with successful results in California for this type of project.
• Interstate Outdoor Advertising has California Coastal Commission experience which is required to gain approval for this project. (Rio Media does not).
Concerns regarding the award to Rio Media:
• Annual Revenue
o Rio Media made a written assertion that they would generate $1M in annual revenue and “give 70%” of that to the city. There was NO documentation or facts to justify that amount of revenue.
o With 22 towers, there is no feasible way they could generate $1,000,000 in revenue. Interstate Outdoor Advertising has experience in lifeguard tower revenue (with125 towers in LA, they generate $500,000 annually). • Minimum annual guarantee to HB
o There is no annual minimum guarantee by Rio Media in their written proposal to Huntington Beach, yet Interstate Outdoor Advertising has a written commitment for a minimum of $40,000 annually.
o Even after the notification of the award, and at the urging of city staff, Rio Media has declined to offer a minimum guarantee, as indicated by city staff’s agenda item report.
• Rio Media has NO experience in lifeguard tower advertising or municipal advertising concessions experience.
• Coastal Commission approvals.
o Rio Media has NO California Coastal Commission experience.
Based on these facts, we strongly urge you to consider rejecting the award to Rio Media and awarding the project to Interstate Outdoor Advertising. At a minimum, the council should table this item set for May 6, for further discussion and review, once all the facts have been evaluated.
If a company is not willing to offer a minimum guarantee, how confident are they in their own services,
and how confident are you
in their ability to perform.
Thank you for your consideration.
Mike Murchison,
Representative for Interstate Outdoor Advertising