HomeMy WebLinkAboutAddenda - RFP - P792 ADVERTISING ON EXTERIOR AND INTERIOR OF BUSESAGREEMENT
THIS AGREEMENT, made and entered into this day of , 2001, by and
between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, hereinafter
referred to as "the City" and OUTDOOR PROMOTIONS, Inc., a Colorado corporation, hereinafter
referred to as "the Contractor."
WITNESSETH:
WHEREAS, the Contractor submitted the sole responsive proposal to the City's October 9,
1995, Request for Proposal No. P-548, regarding sale of advertising space on the exterior and in the
interior of Transfort buses, and has provided services to the City pursuant to the Agreement between
the City and Contractor's predecessor in interest, OUTDOOR PROMOTIONS, L.L.C., and dated
as of December 21, 1995, which Agreement was extended through February 2001 by an
ADDENDUM thereto; and
WHEREAS, the Contractor has agreed to provide the exterior and interior Transfort
advertising services for a new term beginning March 1, 2001, and extending through May 31, 2001,
subject to reasonable conditions and restrictions upon said advertising as set forth herein; and
WHEREAS, the City wishes to permit the Contractor to place advertising on and in Transfort
buses under the terms of this new agreement for the term hereof, subject to such conditions as are
hereinafter specified.
NOW, THEREFORE, in consideration of the mutual covenants and obligations herein
expressed and other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, it is agreed by and between the parties hereto as follows:
1. Term of the Agreement. This Agreement shall be in effect from March 1, 2001,
through May 31, 2001, unless terminated prior to that date as hereinafter provided.
2. Scone of Service. The Contractor agrees to provide the following services to at least
the extent indicated, with such limitations as provided in this Agreement.
a. Contractor agrees to make a "good faith" effort to sell appropriate
advertising space on the exterior and interior of Transfort buses. Throughout the
term of the Agreement, advertising must be sold on no less than ninety-seven percent
(97%) of all advertising spaces on all buses, excluding advertising spaces reserved
for the City in accordance with Paragraph 3(e), below.
b. Contractor agrees to be solely and completely responsible for the
maintenance, repairs, and upkeep of all exterior and interior bus advertising panels.
C. Contractor agrees to be solely and completely responsible for the
fabrication of bus advertising panels, both exterior and interior, and to deliver any
such panels to the Transfort facility at 6570 Portner Road at least seven (7) Transfort
working days prior to any contractual placement of advertising on any Transfort bus.
d. Contractor agrees that all advertising shall be sold at the rates set forth
on the rates sheet attached hereto as Exhibit A and incorporated herein by this
reference. Contractor may not charge any rates or fees except as listed in Exhibit
"A", unless the City grants to Contractor express written percussion to deviate from
such rates.
e. Contractor agrees to bear all costs relating to the arrangement for and
preparation of bus advertising for Transfort buses. The City shall be responsible for
placement of all advertising on Transfort buses.
f. Contractor is not subject to general restrictions regarding the use of
color on advertising panels; provided, however, that the City reserves the right to
review and approve or disapprove all advertising copy, design, and colors to be
displayed in Transfort buses based on aesthetic considerations within the sole
discretion of the City.
g. The parties acknowledge that the City's objectives for the advertising
program to be carried out through the performance of the Agreement are to: (1)
generate revenue for the City through the placement of advertising on and in City -
owned buses; (2) maintain a neutral position on political, religious and ideological
matters; and (3) limit advertising to advertising that proposes a legitimate commercial
transaction and that will promote healthful, family -oriented products and services
appropriate for citizens of all ages. Because the City's sale of advertising space is for
the purpose of raising revenue, and not for the purpose of establishing a forum for
public speech, the City reserves to itself the sole and final authority as to whether
proposed advertising is consistent with these objectives. All advertising in place during
the term of this Agreement shall comply with this provision. Advertising that is determined
by the City to be inconsistent with these objectives shall be removed immediately upon
receipt of a written request for such removal by the Contractor. Advertising hereunder may
not include or constitute the following:
i. advertising that primarily conveys a political, religious, ideological
or other non-commercial message;
ii. advertising of alcohol or tobacco products;
iii. advertising that promotes illegal activities or transactions;
iv. advertising that is misleading or deceptive, or that constitutes a public
nuisance;
2
V. advertising of products or services available to adults only by law;
vi. advertising of any product or service primarily related to sexual or
violent activities or practices, or advertising of any product or service
in a manner that is sexually suggestive or that displays or suggests
violence or is inappropriate for minors; and
vii. any advertising reasonably determined to be inconsistent with the
above -stated objectives of the advertising program.
3. ner ti . In consideration of the right to sell advertising on and in Transfort buses,
the Contractor agrees:
a. To remit to the City within ten (10) days after the end of the term of
this Agreement an amount equal to fifty-one percent (51%) of the gross revenues
received by the Contractor during that period from the advertising displayed on
Transfort buses. Contractor may adjust its gross revenues by subtracting fees paid
to national account advertising agencies, provided, however, that no adjustment for
any such fee may exceed fifteen percent (15%) of the quarterly gross revenues from
the advertising account for which the fee is charged.
b. To pay to the City a minimum amount for advertising under this Agreement
of no less than Thirty Four Thousand Three Hundred Seventy Six Dollars ($34,376.00), less
any national account advertising agency fees allowed in accordance with the above
Paragraph 3(a).
C. To maintain such books, records, documents, and other evidence and
accounting procedures and practices as may be necessary to reflect the services performed
by it pursuant to this Agreement. All such records shall be available to the City at all
reasonable times for inspection, review or audit.
d. That the City shall be entitled to conduct, and Contractor shall cooperate in
the completion of annual audits of Contractor's receipts. Any adjustments required as a
result of such audits, shall take place during the quarter in which the audit is conducted.
e. To allow to the City the use of up to one interior bus advertising space
on each bus, at the City's discretion; provided, however, that the City shall not have
the right to displace existing advertisements for its own use.
4. Insurance. The Contractor agrees to designate the City as an additional named
insured upon a general liability insurance policy with not less than Five Hundred Thousand Dollars
($500,000) combined single limit coverage. Such general liability insurance shall remain in full
force and effect during the term of this Agreement and any renewal thereof. The Contractor agrees
to provide evidence of such liability insurance prior to the placement of any bus advertising pursuant
to this Agreement.
5. Conditions of the Agreement. It is further agreed by and between the City and the
Contractor as follows:
a. The Contractor shall neither assign any of the rights nor delegate any
of the duties imposed upon him under the provisions of this Agreement without
having first obtained the written permission of the City.
b. This Agreement may not be enlarged, modified, or altered except in
writing signed by the parties as amended hereto.
C. No waiver of any breach of this Agreement shall be held or construed
to be a waiver of any subsequent breach thereof.
d. This Agreement shall not constitute an exclusive franchise for the
benefit of the Contractor.
e. In entering into this Agreement, Contractor acquires no status, rights,
or benefits of an employee of the City. Furthermore, the Contractor shall be
considered as an independent contractor and the City shall incur no liability due to
the operations of the Contractor.
6. Indemnification. The Contractor agrees to hold harmless and indemnify the City for
any and all claim, obligation, liability, or cause of action arising from any operation of the
Contractor.
7. Notices. Notices permitted or required to be given shall be in writing and shall be
deemed given upon personal delivery or upon deposit in the United States Mail, certified, return
receipt requested, postage fully prepaid, addressed as follows or to such other address as the parties
may designate from time to time by notice given in accordance with this paragraph:
To Contractor: Gary D. Young
Outdoor Promotions, Inc.
5724 South College Ave.
Fort Collins, CO 80525
To City: Transfort Manager
6570 Portner Road
Fort Collins, CO 80525
4
Early Termination.
a. In the event of any default by the Contractor under the terms and
conditions of this Agreement, the City may terminate this Agreement within thirty
(30) days after written notice setting forth the nature of the default is delivered to the
Contractor. If this Agreement is terminated as herein provided, all rights of the
Contractor shall become null and void.
b. In the event that the City should, for any reason whatsoever, cease to
operate its municipal bus system (Transfort), then this Agreement shall, within sixty
(60) days of such cessation, terminate and become null and void.
9. Survival. To the extent necessary to carry out all of the terms and provisions hereof,
the said terms, obligations and rights set forth herein, including Paragraph 6, shall survive and shall
not be affected by the expiration or termination of this Agreement.
10. Contract Documents Entire Agreement. This writing, together with the exhibits
attached hereto, constitutes the entire agreement between the parties, their officers, employees,
agents and assigns and supersedes all prior agreements, understandings, warranties or promises
between the parties hereto, whether written, spoken or implied from the conduct of the parties hereto;
provided, however, that in the event the terns of such documents conflict, the requirements of this
writing shall supercede any such previous documents.
11. Benefit. This Agreement is made for the sole and exclusive benefit of the parties and
shall inure to the benefit of their respective survivors, heirs, personal representatives, successors and
assigns. It is not made for the benefit of any third party.
12. Severability. In the event any covenant, condition or provision of this Agreement is
held to be invalid by final judgment of any court of competent jurisdiction, the invalidity of such
covenant, condition or provision shall not in any way affect any of the other covenants, conditions
or provisions of this Agreement, provided that the invalidity of any such covenant, condition or
provision does not materially prejudice either party in its respective rights and obligations under the
valid covenants, conditions or provisions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed,
in duplicate, as of the day and year first herein written.
COLORADO
THE CITY OF FORT COLLINS,
a municipal corporation
By: r, 136"L
fe . O'Neill II, CPPO
for of Purchasing and Risk Management
OUTDOOR PROMOTIONS, Inc.
a Colorado corporation
By:
Gary Yo g
Its President
EXHIBIT A
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Pr. omoflons, Inc -
Ft Cow
81,744
400
39
$2160
$2052
$1944
S1375
300
27
$1728
$1620
$1560
$1450
200
18
31220
S1150
$1080
$1000
100
9
$650
$610
$575
t540
75
7
$525
$300
$475
$434
50
5
5400
$380
3360
1320
25
3
$270
$258
S246
$230
Cti"WM
53,687
200
18
$900
$8"
$804-
$756
100
9
$469
S444
$420
$306
75
7
$385
$364
$343
$322
50
5
$292
$274
957
$240
25
3
S18S
$172
S161
$150
Ftcoum$ 81.744
125
10
$2700
$2532�
$2366
=00
n®CO� 6275
300
8
$2200
$2068
$1934
$1800
75
6
$1680
$1580
$1480
SIM
50
4
51169
51092
$1026
$960
25
2
$600
$567
5534
$500
Loveland 45,728
123
10
S1S90
$1820
$1750
$1680
100
8
51600
$1531
$1463
$1395
75
6
$1295
$1232
$1150
$1080
SO
4
$950
$882
$816
$750
25
2
$495
$W
$430
$395
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- $220
$M
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$231
$U1
$211
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$241
$w
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10+
3173
$169
Sim
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$202
$191
S181
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1104
5225
$20
$204
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$t43
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$161
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$194
$184
S174
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Anmtd ridership ofR Collins buses is 1034g541 based on 1M repo&