HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/16/2001 - FIRST READING OF ORDINANCE NO. 159, 2001, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 17
DATE: October 16, 2001
FORT COLLINS CITY COUNCIL 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.
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.
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 authorizes the City to extend that agreement for a 20-year period commencing
January 1,2002 and extending through December 31,2021. The 20-year term was negotiated recognizing
the substantial 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 20%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 Code
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 may
terminate this agreement by appropriating funds in an amount sufficient to purchase the shelters and
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.
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 unless
authorized by the City Council by ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Purchasing Agent be, and hereby is, authorized and directed to enter into an
agreement with Outdoor Promotions, Inc. for the provision of bus benches and shelters consistent
• 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