The URL can be used to link to this page

Home My WebLink About07 - Bus Shelter ProviderCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 October 28, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Dennis Danner, Director 949 - 644 -3123, ddanner @city.newport- beach.ca.us Evelyn Tseng Income Contract Administrator, Revenue Division 949 - 644 -3153, etseng(cDcity.newport- beach.ca.us SUBJECT: Selection of Clear Channel Outdoor as Sole Bus Shelter Provider for the City of Newport Beach ISSUE: Should the City select Clear Channel Outdoor as the sole bus shelter provider for the City of Newport Beach? RECOMMENDATION: Direct staff to draft and finalize an agreement with Clear Channel Outdoor based substantially on the deal points attached as Exhibit "A ". DISCUSSION: Bus Shelters in the City There are thirty-two bus shelters in Newport Beach, twenty -six of which have advertising. There are six non - advertising shelters in Corona del Mar that are maintained by the City, six maintained by Ravo Media and twenty by Clear Channel (Exhibit "B "). Ravo Media. When the City annexed the Newport Coast community, it also inherited seven bus shelters along Pacific Coast Highway, maintained by Ravo Media. Ravo Media's contract with the City terminated on July 31, 2008, at which time Ravo Media removed the one bus shelter located on City right -of -way. The remaining six shelters are located on CalTrans right -of -way. Ravo is disputing the City's authority to order their removal and the City Attorney's office has admonished Ravo to remove those shelters by October 24, 2008. Bus Shelter Provider October 28, 2008 Page 2 Clear Channel Outdoor. The contract between the City and Clear Channel Outdoor was originally approved on September 9, 1996, when Clear Channel Outdoor was Metro Display Advertising, Inc. Throughout the term of its agreement, the City has been satisfied with Clear Channel's performance. Clear Channel currently maintains 20 shelters throughout the City. Their agreement with the City is currently on a month -to- month basis. Request for ProDOSals On May 8, 2007, City Council directed staff to issue a Request for Proposals ( "RFP ") for one bus shelter provider in the City. Although there was some interest by Ravo Media and CBS Outdoor, only Clear Channel Outdoor submitted a proposal by the deadline. (Ravo Media submitted a letter one day after the deadline, which was unresponsive to the RFP.) Finance Committee approved the commencement of negotiations with Clear Channel Outdoor on August 28, 2007. Staff and Clear Channel Outdoor concluded negotiations in late May 2008, and on September 30, 2008, the Finance Committee approved the agreed -upon deal points. City staff recommends contracting with Clear Channel Outdoor based on the attached deal points. Environmental Review Not applicable. Public Notice The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Alternatives City Council may elect to install and maintain City owned bus shelters throughout the City, as done in Corona del Mar. The City Council may also elect to eliminate bus shelters at those locations where contractors are currently providing bus shelters. Prepared by: T Evel n Tseng CJ Income Contract Administrator Submitted by: D nnis Danner Administrative Services Director Attachments: Exhibit "A" — Clear Channel deal points sheet Exhibit "B" — Clear Channel current bus shelter locations in the City Exhibit A Page 1 CLEAR CHANNEL DEAL POINTS TERM: RENEWAL TERM: PAYMENT TO CITY: NON - ADVERTISING SHELTERS: OWNERSHIP OF SHELTERS: INITIAL LOCATIONS: DESIGN: CLEAR CHANNEL MAINTENANCE OBLIGATIONS: 5 years One 5 year terra at Clear Channel's option $60,000 /year for up to 27 new and replacement shelters. Rate at Renewal Term to be adjusted by CPI. Upon City's written request. 5 of the 27 shelters may be non - advertising shatters, which Clear Channel shall install and maintain, and which may be outfitted at no cost to City with advertising kiosks dedicated solely for City generated messages. At the expiration or termination of the agreement, Clear Channel shall remain the owners of all shelters. At City's request, Clear Channel shall remove all the shatters and Improvements and restore each site to it's pre - existing condition. Clear Channel to begin installation of the below shatters within 60 days of City's request, or relocate within 15 days of City's request. All shelters shall be installed no later than 6 months after contract start date is established. However, an extension of this time shall be given by the City if there are unforeseen delays, such as, permits, weather, etc... City may indicate Clear Channel the order in which the bus shatters shall be replaced. In addition to the 18 shelters listed below, City shall designate an additional 4 bus shelter locations within the 1" year of the agreement. Remaining shelters shall be designated within the first 5 years of the agreement. Each bus shatter to have: bench, 40 gallon trash receptacle, overhead shelter and lighting. Each shelter must comply with the ADA at Clear Channel's expense, including the cost of any required right -of -way upgrade/construction. Clear Channel must confirm feasibility and design with OCTA. Each bus shatter shall be in the design as attached [in Clear Channel's proposal]. Clear Channel shall clean the shelters at leasttwice/week and power wash the shelters at least twice /year. Clear Channel will also repair or replace any damaged or defaced shelters within 24 hours of notification. It is understood that some locations might need more maintenance than Exhibit A Page 2 the required twice/week. Therefore, if the City selects particular locations as being problem locations, Clear Channel shall clean those shatters three times a week. Upon City request, Clear Channel will provide City with monthly maintenance log and identify locations with frequent vandalism. At City's request, Contractor shall provide additional maintenance. INSURANCE REQUIREMENTS: Workers Comp as required by State Law. General Liability - $2,000,000.00 Automobile Liability - $2,0003000.00 At the commencement of Option Tenn, Clear Channel shall increase the amount of insurance as reasonably required by City's Risk Manager so that amount reasonably and fully protects the City. TERMINATION: The City Manager may suspend this Agreement at any time upon finding that Clear Channel is in breach of a material term of this Agreement and has not resolved the breach during the cure period. Except as otherwise provided herein, if either party is in default under this Agreement, the non - breaching party shall send written notice specifying the breach and stating that this Agreement will be terminated if not cured within thirty (30) calendar days from the date of the notice. If the breach is not cured within thirty (30) calendar days from the receipt of the notice, or if the default cannot be cured within thirty (30) calendar days, then this Agreement shall terminate on the thirtieth (30th) day after the date of the notice, unless the non - defaulting party agrees in writing to an extension of the cure period. 1 2. 3. 4. 5. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Clear Channel Bus Shelter Locations Pacific Coast Highway @ Newport Coast Drive Balboa Blvd @ 23rtl St. Balboa Blvd. @ 32ntl St. Campus Drive @ MacArthur Blvd. Dover Drive @ Pacific Coast Highway MacArthur Blvd. @ Birch Street Newport Blvd. @ Hospital Road (nib) Newport Blvd. @ Hospital Road (sib) Newport Center @ Four Seasons Pacific Coast Highway @ Orange Ave. Pacific Coast Highway @ 57" St. Balboa Blvd. @ River Ave. (nth) Balboa Blvd. @ River Ave. (sib) Westcliff @ Irvine Ave. Pacific Coast Highway @ Prospect St. MacArthur Blvd. @ Newport Place Dover Drive @ 16th Street San Nicolas Drive @ Newport Center Drive Newport Center Drive @ Newport Center Drive Pacific Coast Highway @ Superior Exhibit B Page 1