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.
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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
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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.
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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)
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