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HomeMy WebLinkAboutPW Transit Shelter; CBS OutdoorCITY OF Agenda Item No: Meeting Date: SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works 3 k. Nov. 21, 2011 Prepared by: City Manager ApprovalP Nader Mansourian (RL) IM="07691Ki ;i SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE AN AMENDMENT TO THE ADVERTISING TRANSIT SHELTER AGREEMENT WITH SUCCESSOR IN INTEREST CBS OUTDOOR, INC. RECOMMENDATION: Adopt Resolution BACKGROUND: On September 7, 1993, the City entered into an Advertising Transit Shelter Agreement with Gannett Outdoor Co. for a term of 15 years, commencing on the date the first shelter was put into operation. Over that period, Gannett was succeeded by Outdoor Systems and then CBS Outdoor, the current contractor. Both the City and the contractor have continued to operate under the terms of the original agreement, which expired in 2008. In exchange for "the exclusive right to erect and maintain advertising transit shelters on City property" the Contractor would pay a portion of its advertising revenue to the City. The initial payment was the greater of $90 per shelter or 18% of gross advertising revenue. The $90 guaranteed monthly payment has increased by $2 per year since 1993 and is now $126 per shelter. There are now 35 advertising shelters in San Rafael, generating consistent revenue over time. For example, CBS Outdoor paid the City $44,904 in FYI0-11, $44,658.00 in FY 09-10 and $43,365 in FY 08-09. ANALYSIS: If approved, the Amendment would extend the original agreement for an initial term of 5 years (through November 2016) and an additional 5 year term "by written agreement of both parties" and "the written approval of the Public Works Director." In addition to duration, the amendment would change payment (see Fiscal Impact below), update City and Contractor contact information and delete paragraph XIII (Arbitration). All other terms and conditions "shall remain unchanged and in full force and effect for the term of this Agreement as amended." FOR CITY CLERK ONLY File No.: ;= ,- i Council Meeting: Disposition: A�'x,Y, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 It is important to emphasize that CBS Outdoor and its predecessors have consistently maintained these shelters in the manner described in the original agreement. Their crews have responded in a timely and thorough way to the few complaints Public Works has received over the years, the majority of which were for litter and graffiti. FISCAL IMPACT: Annual advertising shelter revenues are approximately $45,000. CBS Outdoor has agreed to increase revenues by 19%, from the current $126 per shelter to $150 per shelter, consistent with their agreement with the City of Novato. If revenues remain steady, San Rafael's share should increase proportionally, to approximately $53,550 per year ($45,000 + 19% = $53,550). OPTIONS: Council may choose not to adopt the Resolution but staff does not recommend this option. The City has derived extensive benefits from the bLIS shelter program, in terms of enhanced service for transit riders, fiscally (as described above) and the added advantage of relieving Public Works personnel of any significant shelter maintenance responsibilities over time. ACTION REQUIRED: Adopt Resolution. Enclosures: Resolution Amendment to Advertising Transit Shelter Agreement I Advertising Transit Shelter Agreement I RESOLUTION NO. 13266 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE AN AMENDMENT TO THE ADVERTISING TRANSIT SHELTER AGREEMENT WITH SUCCESSOR IN INTEREST CBS OUTDOOR, INC. WHEREAS, the parties entered into an Advertising Transit Shelter Agreement, dated September 7, 1993 ("Agreement"), under which CONTRACTOR had the obligation to install transit shelters in the CITY's right-of-way, on which CONTRACTOR could place advertising in exchange for compensation paid to the CITY; and WHEREAS, CBS Outdoor, Inc., the CONTRACTOR, is the successor in interest to Outdoor Systems, Inc., which was successor in interest to the original contractor, Combined Communications Corp. dba Gannett Outdoor Co. of Northern California; and WHEREAS, following expiration of the Agreement on September 6, 2008, the parties have continued to operate under the terms of the Agreement, but now desire to approve an Amendment extending and revising certain other terms of the Agreement; and WHEREAS, the parties wish to amend Paragraph II (Duration of Contract) of the original Agreement to extend the term for an initial period of 5 years, November 21, 2011 through November 20, 2016 and, by written agreement of both parties, for another 5 year period on the same terms, subject to the written approval of the Public Works Director; and WHEREAS, the parties wish to amend Paragraph V (Payment) of the original Agreement to raise the amount paid to the CITY by the CONTRACTOR from the original $90.00 per shelter per month to $150.00 per shelter per month or 18% of gross advertising revenue, whichever is greater; and WHEREAS, the parties wish to amend Paragraph XII (Notice) of the original Agreement to revise the recipients of notices as follows: CITY: Public Works Director City of San Rafael P.O. Box 151560 San Rafael, CA 94915-1560 CONTRACTOR: CBS Outdoor Inc. 450 Lexington Ave. New York, NY 10174 WHEREAS, the parties wish to amend the Agreement to delete Paragraph XIII (Arbitration) and to renumber Paragraph XIV (Modification of Agreement) as Paragraph XIII.; and 1 WHEREAS, all other ten -ns and conditions of the Agreement shall remain unchanged and in full force and effect for the teen of this Agreement, as amended; and WHEREAS, this Amendment to Advertising Transit Shelter Agreement is found to be exempt from the California Environmental Quality Act ("CEQA") pursuant to the State CEQA Guidelines, since it can be seen with certainty that there is no possibility that this Amendment or its implementation would have a significant effect on the environment (14 Cal. Code of Regulations Section 15061(b)(3)). NOW THEREFORE BE IT RESOLVED, by the City Council of the City of San Rafael, that it approves and authorizes the Director of Public Works to execute the Amendment to the Advertising Transit Shelter Agreement, a copy of which is hereby attached and by this reference made a part hereof. 1, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 21" day of November, 2011 by the following vote, to wit: AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Levine & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, City Clerk 2