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HomeMy WebLinkAbout25K - AGMT - BUS SHELTER SRVSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 17, 2014 TITLE: AMENDMENT TO AGREEMENT WITH CLEAR CHANNEL OUTDOOR, INC., FOR BUS SHELTER AND BENCH SERVICES �l CITY MANAG RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2'd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the extension of the bus shelter and bus bench services agreement with Clear Channel Outdoor, Inc., for a period of one year, expiring June 30, 2015, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The recommended action will provide for continued maintenance of City bus shelters and bus benches while staff evaluates the revenue potential of enhanced advertising options. The cost of maintaining and cleaning bus shelters and bus benches is significant; however, that cost is offset by bus shelter advertising revenue. Extending the agreement will allow staff sufficient time to research and establish a policy on digital advertising, and to proceed with a grant application to install up to 56 new bus shelters citywide. Since December 8, 2000, the City has had an exclusive agreement with Eller Media Company /Clear Channel Outdoor, Inc., (Clear Channel) to provide and maintain bus shelters and benches in the public right -of -way, at bus stop locations throughout Santa Ana. Bus shelters and benches provide bus commuters with shelter from the elements, locations visible to the public, a safer environment at night, and a place for the disabled and elderly to rest while waiting for the bus. In June 2013, Council approved a one -year extension of the Clear Channel agreement through June 30, 2014, to give staff the opportunity to solicit proposals for bus shelter /bus bench services from qualified service providers. Although the Request for Proposals process has been completed, staff is suspending award of the contract while the option of modern advertising, including the use of digital technology, is evaluated. Clear Channel has agreed to extend its agreement for an additional year, providing quarterly revenue of $37,500, for a total of $150,000, for exclusive rights to install, operate, and maintain bus shelters and bus benches in the City of Santa Ana. 25K -1 Amendment to Agreement with Clear Channel Outdoor, Inc., for Bus Shelter and Bench Services June 17, 2014 Page 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The extension of this agreement is expected to generate 5150,000 in General Fund revenue (Account 01117002- 51004). APPROVED AS TO FUNDS AND ACCOUNTS: Edwin "William" Gal , P.E. Francisco Gutierrez Interim Executive 15irector Executive Director Public Works Agency Finance & Management Services Agency ` EWGICK Exhibit: 1. Amendment to Agreement 25K -2 THIRD AMENDMENT TO AGREEMENT THIS THIRD AMENDMENT TO AGREEMENT is entered into on June 17, 2014, by and between Clear Channel Outdoor, Inc., a Delaware corporation ( "Grantee ") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ( "City "). RECITALS: A. The parties entered into that certain Agreement # A- 2000 -179, dated December 8, 2000 (hereinafter "said Agreement') by which Grantee was awarded the exclusive right to install, operate and maintain bus shelters and bus benches in the City of Santa Ana. B. The parties executed a First Amendment to Agreement A- 2009 -044, dated May 4, 2009, to extend the term for an additional three year period. C. The parties executed a Second Amendment to Agreement A- 2013 -099, dated June 17, 2013, to extend the term for up to an additional twelve (12) months, through June 30, 2014. D. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Compensation and extend the term for an additional one year period, during which the City will request and review proposals for exclusive bus shelter and bus bench services. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this Third Amendment to Agreement, the parties agree as follows: 1. Section 2, TERM, shall be amended to extend the term for one (1) year, through June 30, 2015, unless said Agreement is terminated earlier, pursuant to the provisions of said Agreement, or otherwise according to law. 2. Section 2.a., COMPENSATION, shall be deleted in its entirety and replaced with the following: "As consideration for the continued exclusive rights granted by said Agreement, Grantee agrees to pay to City a quarterly fee of $37,500, during the term commencing July 1, 2014." 3. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. I!/ 25K -3 IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to Agreement on the date and year first written above. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: goNTA -R. CARVALHO Ryan City RECOMMENDED FOR APPROVAL: EDWIN "WILLIAM" GALVEZ, P.E. Interim Executive Director Public Works Agency CITY OF SANTA ANA DAVID CAVAZOS City Manager CLEAR CHANNEL OUTDOOR, INC. (NAME) (Title) 25K -4