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Item 24 - Bus Stops/Shelters and Kiosks
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01/18/2022 Regular & Special SA
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Item 24 - Bus Stops/Shelters and Kiosks
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4/3/2024 4:12:15 PM
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City Clerk
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Agenda Packet
Agency
Clerk of the Council
Item #
24
Date
1/18/2022
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4. COMPENSATION TO CITY <br />Company shall pay the City the greater of the revenue share generated from the Advertising <br />Inventory or the minimum annual guarantee ("MAG"). The Revenue Share is defined as 25% of the <br />Gross Advertising Revenue. Gross Advertising Revenue shall be defined as gross advertising revenue <br />received from the sale of the Advertising Inventory without any deductions. <br />The MAG shall be calculated as $60 per ad shelter or kiosk per month ($720 per year). MAG <br />payments shall be adjusted on a quarterly basis based on the number of bus stops with ad shelters or kiosks <br />that are operational in such quarter. MAG payments and a forecast of revenue and payments based on the <br />current number of bus shelters and kiosks is provided in Exhibit B, attached hereto and incorporated by <br />reference. If, at any time during the Term, Company and City agree to add additional bus stops or bus <br />shelters after the Effective Date, the MAG payment shall be increased for each additional ad shelter or <br />kiosk by $60 per ad shelter or kiosk per month ($720 per year). The MAG shall be increased annually at <br />the end of each 12-month period from the effective date of this Agreement by a percentage equal to the <br />percentage change in the Consumer Price Index (CPI) statistics for all Urban Consumers for the Los <br />Angeles -Long Beach -Anaheim area, as published by the United States Bureau of Labor <br />(CUURS49ASA0). The percentage change shall be determined with reference to the year over year <br />percentage change in CPI for the prior 12-month period ending in December. <br />After the Effective Date and with prior written approval from the City, Company may install up <br />to ten (10) Company owned kiosks ("Company Owned Kiosks") at approved locations to generate <br />additional income at the beginning of the Term. Company Owned Kiosks shall adhere to the City's design <br />guidelines as provided in Exhibit A and be painted black by the Company at Company's own expense. <br />The Parties acknowledge that, at a later date, the City, at its sole discretion, may replace the Company <br />Owned Kiosks with City owned kiosks. All Company Owned Kiosks shall be excluded from the MAG <br />calculation until replaced with City owned kiosks. All revenue generated by the Company Owned Kiosks <br />shall be included in the Revenue Share calculations. <br />Company shall not derive revenue from any other sources other than advertising ("Ancillary <br />Revenue") without prior approval from the City Council. <br />5. PAYMENTS <br />MAG payments shall commence the first full calendar month after the Effective Date of the <br />contract. On a quarterly basis, Company shall pay the greater of the Revenue Share amount or the MAG <br />amount within thirty (30) days of the end of each calendar quarter (the "Revenue Payment"). <br />The Quarterly Maintenance Services Cost, as defined in Exhibit A, shall be subtracted from the <br />quarterly Revenue Payment. If the difference is positive, such amount shall be paid to the City. In the <br />event the difference is negative: <br />a. The negative balance shall be carried forward for up to three (3) years and offset by the MAG or <br />the Revenue Share. <br />b. At the end of the 4th year, any remaining negative balance shall be waived. <br />c. After the 4th year, any negative balance for the rest of the Term shall be waived. <br />Page 3 of 27 <br />
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