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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 17, 2014 <br />TITLE: <br />AMENDMENT TO AGREEMENT WITH <br />CLEAR CHANNEL OUTDOOR, INC., FOR <br />BUS SHELTER AND BENCH SERVICES <br />�l <br />CITY MANAG <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2'd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the extension of the bus shelter and bus bench services agreement with Clear Channel <br />Outdoor, Inc., for a period of one year, expiring June 30, 2015, subject to nonsubstantive changes <br />approved by the City Manager and City Attorney. <br />DISCUSSION <br />The recommended action will provide for continued maintenance of City bus shelters and bus <br />benches while staff evaluates the revenue potential of enhanced advertising options. The cost of <br />maintaining and cleaning bus shelters and bus benches is significant; however, that cost is offset <br />by bus shelter advertising revenue. Extending the agreement will allow staff sufficient time to <br />research and establish a policy on digital advertising, and to proceed with a grant application to <br />install up to 56 new bus shelters citywide. <br />Since December 8, 2000, the City has had an exclusive agreement with Eller Media <br />Company /Clear Channel Outdoor, Inc., (Clear Channel) to provide and maintain bus shelters and <br />benches in the public right -of -way, at bus stop locations throughout Santa Ana. Bus shelters and <br />benches provide bus commuters with shelter from the elements, locations visible to the public, a <br />safer environment at night, and a place for the disabled and elderly to rest while waiting for the <br />bus. <br />In June 2013, Council approved a one -year extension of the Clear Channel agreement through <br />June 30, 2014, to give staff the opportunity to solicit proposals for bus shelter /bus bench services <br />from qualified service providers. Although the Request for Proposals process has been <br />completed, staff is suspending award of the contract while the option of modern advertising, <br />including the use of digital technology, is evaluated. <br />Clear Channel has agreed to extend its agreement for an additional year, providing quarterly <br />revenue of $37,500, for a total of $150,000, for exclusive rights to install, operate, and maintain <br />bus shelters and bus benches in the City of Santa Ana. <br />25K -1 <br />