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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2001 - SECOND READING OF ORDINANCE NO. 159, 2001, AUTHORI AGENDA ITEM SUMMARY ITEM NUMBER: 30 DATE: November 6, 2001 •F FORT COLLINS CITY COUNCIL STAFF: James B. O'Neill Tom Frazier SUBJECT: Second Reading of Ordinance No. 159, 2001, Authorizing the Purchasing Agent to Enter into an Agreement with Outdoor Promotions,Inc.to Provide Bus Shelters,Bus Benches,and Advertising for the City of Fort Collins Transit Service for 20 Years. RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: Outdoor Promotions, Inc., submitted the successful proposal to the City's May 11, 2001, Request for Proposal No.P-793 regarding providing bus shelters and bus benches and sale of advertising space on the same. The City and Outdoor Promotions,Inc.currently have a Services Agreement that expires December • 31,2001. This Ordinance,which was adopted 5-1 on October 16,2001,authorizes the City to extend that agreement for a 20-year period commencing January 1, 2002 and extending through December 31, 2021. i i s . ORDINANCE NO. 159, 2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT WITH OUTDOOR PROMOTIONS, INC. TO PROVIDE BUS SHELTERS, BUS BENCHES,AND ADVERTISING FOR THE CITY OF FORT COLLINS TRANSIT SERVICE FOR 20 YEARS WHEREAS, on May 11, 2001, the City issued Request for Proposal Number P-793, regarding providing bus shelters and bus benches and sale of advertising space on same; and WHEREAS, Outdoor Promotions, Inc., was selected based on its proposal in response to Request for Proposal Number P-793; and WHEREAS,the proposed agreement between the City and Outdoor Promotions,Inc.,a copy of which is on file in the Office of the City Clerk and available for public inspection and incorporated herein by this reference (the "Agreement"), is currently in force for an initial period ending December 31, 2001,with a 20-year extension period commencing January 1, 2002, subject to Council adoption of this Ordinance; and WHEREAS, the Agreement requires Outdoor Promotions, Inc., to provide, install and maintain bus benches and bus shelters at all approved Transfort bus stops,and sell advertising space on the benches and shelters; and WHEREAS, the Agreement establishes the desired form and content of advertising on the Transfort bus benches and shelters in order to advance the City's objectives of generating revenue for the Transfort system while maintaining a neutral position on political,religious and ideological matters, promoting healthful products and services appropriate for citizens of all ages, and to otherwise further the City's interest in protecting the health, safety and welfare of the public; and WHEREAS, the capital investment by Outdoor Promotions, Inc., in bus bench and bus shelter improvements will benefit the City and users of the City's Transfort bus system; and WHEREAS, providing for a term of 20 years will enhance the ability of Outdoor Promotions, Inc., and the City to plan and implement a systematic improvement of Transfort bus stop and bus bench facilities; and WHEREAS, pursuant to Section 8-186 of the Code of the City of Fort Collins, no contract for services shall be made by the Purchasing Agent for a longer period than five years uni::ss authorized by the City Council by ordinance. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FC :T' COLLINS that the Purchasing Agent be, and hereby is, authorized and directed to enter int an agreement with Outdoor Promotions, Inc. for the provision of bus benches and shelters cons-i , with the Agreement. Introduced, considered favorably on first reading, and ordered published this 16th day of October,A.D. 2001, and to be presented for final passage on the 6th day of November,A.D. 2001. - Mayor ATTEST: City Clerk Passed and adopted on final reading this 6th day of November, A.D. 2001. Mayor ATTEST: City Clerk AGENDA ITEM SUMMARY ITEM NUMBER: 1 FORT COLLINS CITY COUNCIL DATE: October 16, 2001 STAFF: James B. O'Neill Tom Frazier SUBJECT: First Reading of Ordinance No. 159,2001,Authorizing the Purchasing Agent to Enter into an Agreement with Outdoor Promotions, Inc.to Provide Bus Shelters,Bus Benches,and Advertising for the City of Fort Collins Transit Service for 20 Years. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. 17 FINANCIAL IMPACT: The advertising on bus benches and shelters will provide a minimum$100,000 annually to the 404 Transit Fund. If all advertising is sold for the benches and shelters,the expected revenue should be $130,000 to $150,000 annually. i EXECUTIVE SUMMARY: Outdoor Promotions, Inc., submitted the successful proposal to the City's May 11, 2001, Request for Proposal No.P-793 regarding providing bus shelters and bus benches and sale of advertising space on the same. The City and Outdoor Promotions,Inc.currently have a Services Agreement that expires December 31,200h: This Ordinance authorizegthe City to extend that agreement for a 20-year period commencing Januaryp -2002 and extending through December 31,2021. The 20-year term was negotiated recognizing the subst ial capital investment(over$1.3M)required by the contractor, and the agreement by Outdoor Promotions,'-Inc., to increase the City's share of the net proceeds from the advertising sold from 15% annually to OK annually after the fifth year of the agreement. The agreement will provide for installation of 105 bus shelters and 400 benches. The contractor will be responsible for all installations,maintenance. selling of advertisements, graffiti and snow removal, trash collection, cleaning and maintenance of the shelters and benches. All advertising shall be commercial in nature,shall comply with the City Sign Cody: and other limitations, and must be approved by the City prior to placement. If the City decides to discontinue the use of City bus benches or shelters for paid advertising,the City n: terminate this agreement by appropriating funds in an amount sufficient to purchase the shelters i)oot benches from Outdoor Promotions, Inc., for the agreed upon amount of$10.000 per shelter and $1,000 per bench, depreciated from the date of installation at a rate of 14.3%per year.