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Home My WebLink About06 - Clear Channel Outdoor Bus Shelter ProviderCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 January 13, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Dennis C. Danner, Director 949 - 644 -3123, ddanner(acity.newport- beach.ca.us Evelyn Tseng Income Contract Administrator, Revenue Division 949 - 644 -3153, etseng(aDcity.newport- beach.ca.us SUBJECT: Selection of Clear Channel Outdoor as Bus Shelter Provider for the City of Newport Beach ISSUE: Should the City select Clear Channel Outdoor as the 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 Ci There are 26 bus shelters in Newport Beach, 20 of which have advertising. The 6 non- advertising shelters, in Corona del Mar, are maintained by the City. The other shelters are maintained by Clear Channel Outdoor. (Ravo Media previously maintained shelters along Pacific Coast Highway, but removed them in November 2008, when their agreement with the City terminated.) 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. Its agreement with the City is currently on a month -to -month basis. Bus Shelter Provider January 13, 2009 Page 2 Reauest for Proposals 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 express by Ravo Media and CBS Outdoor to respond to the RFP, only Clear Channel Outdoor submitted a proposal by the deadline. The City Council 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. On July 30, 2008, however, Clear Channel had merged with Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. Although the operating name remained Clear Channel, the new entity re- evaluated all pending deals and, in doing so, requested the following changes in the deal points: • 20% of the bus shelters, in locations to be determined by Clear Channel, may be used for City generated messages. The original deal point had been that City may request up to 5 non - advertising shelters to be installed; and • Clear Channel shall replace 5 of the original installations with new shelters in the first 12 months of the agreement, 5 more in the second 12 months of the agreement, and the remaining 10 shelters during the remaining 3 years of the first term. Originally, Clear Channel had agreed to replace all 20 of the existing installations with new shelters within 6 months of the commencement date. Unfortunately, Clear Channel claims that it cannot now do so under the current economic circumstances. City staff recommends contracting with Clear Channel Outdoor based on the attached revised 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). Funding Availability Not applicable. Bus Shelter Provider January 13, 2009 Page 3 Alternatives The 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: Eve n TsendD Income Contract Administrator Submitted by: Dennis C. Danner Administrative Services Director Attachments: Exhibit "A" — Clear Channel deal points sheet 12 -18-08 Clear Channel Agreement— deal sheet TERM: RENEWAL TERM: PAYMENT TO CITY: NON -ADVERTISING SHELTERS: OWNERSHIP OF SHELTERS: PERMITS: INITIAL LOCATIONS: RELOCATION: DESIGN: Exhibit "A" 5 years One 5 year term at Clear Channel's option $60,000 /year for up to 27 new and replacement replacement shelters. Rate at Renewal Term to be adjusted by CPI. Up to 20% of the shelters, at locations determined by Clear Channel, may be used 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 shelters and improvements and restore each site to its pre - existing condition. Clear Channel to obtain a Public Works Encroachment Permit, Building Permit, Electrical permit, and any other permit deemed necessary by the City for each shelter installed. Clear Channel shall replace or install up to 5 new shelters within 12 months of the contract start date. Clear Channel shall replace or install an additional 5 new shelters in the following 12 months. Clear Channel shall completely replace the shelters listed below in the P year of the agreement. City shall provide, in writing, the order in which the bus shelters shall be replaced or installed. In addition to the 20 shelters listed below, City may designate an additional 7 bus shelter locations within the first 5 years of the agreement, to be installed by Clear Channel within the first 5 years of the agreement. City may require Clear Channel to relocate bus shelters as the bus lines change, if there is higher than normal vandalism in that area, or upon complaints from the public. Each bus shelter 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 shelter shall be in the design as attached [in Clear Channel's proposal]. y CLEAR CHANNEL MAINTENANCE OBLIGATIONS: INSURANCE REQUIREMENTS: TERMINATION: INITIAL SHELTER LOCATIONS: Clear Channel shall be responsible for installing the shelters per the "Bus Slop Safety and Design Guidelines" prepared by OCTA dated March 2004. Clear Channel shall clean the shelters at least twice/week and powerwash the shelters at least twicetyear. 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 the required twicetweek. Therefore, if the City selects particular locations as being problem locations, Clear Channel shall dean those shelters 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. Workers Comp as required by State Law. General Liability - $2,000,000.00 Automobile Liability - $2,000,000.00 At the commencement of Option Term, 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. 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. These shelters shall be installed /replaced within 3 years of the execution of the agreement: 1. MacArthur Boulevard w/s @ Newport Place 2. Dover Drive e/s @ W Street 3. San Nicholas Drive s/s @ Newport Center Drive 4. Newport Center w/s @ Newport Center West 5. Balboa Boulevard e/s @ 3Z' Street 6. Campus Drive s/s @ MacArthur Boulevard 7, Dover Drive e/s @ Pacific Coast Highway 8. MacArthur Boulevard w/s @ Birch Street 9. Newport Boulevard w/s @ Hospital Road 10. Newport Boulevard e/s @ Hospital Road 11. Newport Center e/s @ 4 Seasons 12. Pacific Coast Highway w/s @ Orange Avenue 13. Pacific Coast Highway w/s @ 57ih Street 5 14. Pacific Coast Highway w/s @ Newport Coast Drive 15. Westcliff Drive s/s @ Irvine Avenue 16. Pacific Coast Highway n/s @ Superior 17. Pacific Coast Highway w/s Prospect Street 18. Balboa Boulevard as @ 23` Street 19. Balboa Boulevard as @ River Avenue 20. Balboa Boulevard ws @ River Avenue