HomeMy WebLinkAboutCORRESPONDENCE - RFP - P793 BUS SHELTERS BENCHES ADVERTISING ON SAMEAGENDA ITEM SUMMARY
ITEM NUMBER: 17
FORT COLLINS CITY COUNCIL
DATE: October 16, 2001
James B. O'Neill
STAFF: 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 I
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 i
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.