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HomeMy WebLinkAbout1994-09-13 - AGENDA REPORTS - BUS STOP SHELTERS BENCHESr NEW BUSINESS DATE: SUBJECT: DEPARTMENT. BACKGROUND AGENDA REPORT September 13, 1994 City Manager Approv / Item to be presented Jeff Kolin. Deputy CiLyAanager BUS STOP SHELTERS AND BENCHES Public Works The City Council at its meeting of May 17,1994 directed staff to issue a Request For Proposals (RFP), for advertising and non -advertising bus benches and shelters. Additionally, the Council requested that the RFP contain a "revenue neutral" provision. That is, proposers were asked to provide proposals which would channel potential advertising revenue that would be realized by the City back to transit amenities in the form of non -advertising bus benches and shelters. Moreover, the non -advertising shelters and benches would be placed in residential areas of the City, leaving the advertising shelters and benches in the heavily traveled transportation corridors of the City. The City's history of advertising benches and shelters goes back to 1989, highlighted by the execution of an agreement in October 1991 with Bus Stop Shelters, Inc., for the construction of bus shelters and ebbing in January of 1992 when Bus Stop Shelters filed for bankruptcy protection under Chapter 11, prior to the construction of any shelters. Since 1992, Bus Stop Shelters has come out of Chapter 11 and has maintained its shelter contracts to the satisfaction of others Cities and the County of Los Angeles. On August 25, 1994 the City received three (3) responses to our RFP. These responses were from Bus Stop Shelters, Inc., United Coast Advertising, and County Bench Advertising Company. After reviewing each of the proposals, in order to maximize the number of advertising vs. non -advertising shelters and benches, it is staffs recommendation that the City award and execute agreements with Bus Stop Shelters, Inc., and Coast United Advertising for the construction and placement of bus shelters and benches respectively. The following represents a summary of the proposals that staff are recommending. BUS STOP SMELTERS Bus Stop Shelters, Inc. has submitted to the City a proposal which provides for the construction of: thirty (30) advertising shelters; ten (10) non -advertising shelters and; ten (10) shelters designated specifically for Public Service Announcements (PSA) within the Santa Clarita Transit Service Area. Additionally, Bus Stop Shelters, Inc. will provide weekly maintenance for the existing six (6) shelters owned by the City. These additional shelters will be designated as non -advertising, and bring the total number of non -advertising shelters within the City to twenty-six (26). v.LI• Bus Stop Benches and Shelters September 13, 1994 Page 2 In order to provide Council with a point of reference, staff will use the October 1991 executed shelter agreement as a baseline for comparison to the current "revenue neutral" proposal for the placement of advertising and non -advertising shelters. As depicted in attachment "A", the 1991 agreement provided the City with forty-seven (47) advertising shelters, four (4) non -advertising shelters, and the potential to yield a minimum $ 200,000 in advertising revenue over a five year period. In comparison, under the terms of the current proposal, the potential revenue that the City gives up translates into: seventeen (17) fewer advertising shelters; sixteen (16) additional non-advertising/PSA shelters and; no revenue to the City over a five year period. Further, the current proposal presented by Bus Stop Shelter, Inc. requires the contractor to provide weekly maintenance (clean-up, trash and graffiti removal, repairs as needed) for each shelter, and emergency next day service as requested by the Director of Public Works. Lastly, Bus Stop Shelter, Inc. agrees not to post any advertisements which promote alcohol, tobacco, are of a political nature or are sexually explicit. Any additional advertising which is deemed to be "questionable", will be, at the request of the City, removed by the contractor within twenty-four hours. BUS STOP BENCHES Bus stop benches offer an alternative to the placement of shelters. As a complement to the 56 shelter program, bus benches would be potentially placed at approximately 225 stops within the City portion of the transit system. Due to the increased ridership; it may be necessary to place multiple benches at one location. There are currently two bus bench placement/advertising firms servicing the Santa Clarita Valley on an informal basis. Benches are placed at various locations throughout the City; through the permit basis. The firms "canvass the area, determine where in fact new stops have been added, and place a bench. At this time, the City does not realize substantial revenue other than permit fees from this activity. As a result of the RFP process, both firms expressed an interest to work with the City on a formal basis for the placement of advertising and non -advertising bus benches. The City is in receipt of proposals from both firms; however at this time it is the finding of the City Clerk and the Public Works staff that the proposal received from County Bench Advertising Company is incomplete and consequently should be disqualified for the reasons described in attachment "B" (letter to County Bench Advertising Company), Presently, City staff estimates there to be approximately 250 bus benches that have been placed within the City portion of the transit system. As provided within their "revenue neutral" proposal for the placement of advertising and non -advertising bus benches, Coast United Advertising will provide to the City transit amenities in the form of 166 advertising and 83 non -advertising benches. As referenced above, under the current informal system the placement of bus benches provides the City with no revenue other than permit fees paid, no non -advertising benches, very few PSA's, and no trash receptacles. In addition to 84 fewer advertising benches, the Coast United Advertising proposal provides the City 83 non -advertising bus benches, of which a portion or all could be used for the promotion of City events and/or PSA's. Further, of the 166 benches designated as advertising, ten percent (10%) of these benches will be dedicated for the placement of PSA's three months out of each year that this contract is in place. Bus Stop Benches and Shelters September 23, 1994 Page 3 Lastly, this proposal provides that Coast United Advertising will place trash receptacles at approximately twenty-five percent (25%) of the advertising bench locations and will provide monthly maintenance (clean-up, trash and graffiti removal, repairs as needed) for each bench and emergency next day service as requested by the Director of Public Works. In conclusion, staff strongly believes that the execution of two separate agreements for bus stop shelters and benches will provide the City maximum number of advertising vs. non -advertising transit amenities, which includes 26 non -advertising shelters and 83 non -advertising benches, RECOMMENDATION That Council receive report and direct staff to disqualify the County Bench Advertising Company proposal, and direct the City Manager to execute agreements with Bus Stop Shelters, Inc., and Coast United Advertising for the construction and placement of bus stop shelters and benches respectively.. JK:kmt Shelagen.da ATTACHMENTS Transit Amenities Fact Sheet Letter to County Bench Advertising Company TRANSIT AMENITIES FACT SHEET Attachment "A" Bus Shelters: Bus Shelters: Bus Benches: Bus Benches: Baseline 1991 Current Proposal Baseline 1991 Current Proposal Unregulated Potential# of 47 Shelters 30 Shelters 250 Benches 166 Benches Advertising Units No Shelter space No shelter space Companys run 10% of these designated for designated for PSA's when space benches will be placement of placement of is available dedicated to run PSA's PSA's PSA's three months out of each year Potential # of 4 26 N/A 83 Non -Advertising Units 16 shelters (ten Space can be constructed and six utilized for City existing/City Art or PSA's owned) dedicated as non -advertising; 10 shelters dedicated as PSA only Maintenance by Twice weekly/ Once weekly/ Once a month/ Once a month/ Agency Emergency call out Emergency call out Emergency call Emergency call out out Public Service Yes Yes Yes Yes Announcements Advertising Next day removal Will not post N/A Next day removal Limitations policy upon Tobacco, Alcohol,. policy upon request by City or explict ads request by City Total Minimum $ 200,000 $ 0 $ 0 $ 0 Revenue for Five Year Term to City Cost if Maintained $ 56,100 $ 61,600 $ 52,750 $ 41,000 by City/ Per Year Cost if Maintained $ 1,100 $ 1,100 $ 247 $ 247 by City Per Unit. per Year Capital $ 7,000 per $ 7,000 per $ 900 per $ 900 per Outlay/City unit/$357,000 unit/$350,000 unit/$369,000 unit/$225,000 Provided Per Unit Total Total* Total Total *Six Shelters already existing Capital Outlay By $ 0 $ 0 $ 0 $ 0 City/ Agency Provide ATTACHMENT "B" City of Santa Clarita 23920 Valencia Blvd. Suite 300 City of Santa Clarita California 91355-2196 August 30, 1994 Lawrence Leicht 12329 Firestone Blvd. Norwalk, CA 90650 Phone (805)259-2489 Fax (805)259-8125 Subject: Proposal for Bus Benches Dear Mr, Leicht: Thank you for your August 22, 1994 response to the City's Request For Proposal (RFP) regarding the placement of Bus Benches in the City of Santa Clarita. After careful review, it is the City's finding that the County Bench Advertising proposal is incomplete, and that a recommendation will be made to the City Council asking that the proposal be disqualified for the following reasons: 1) The City's RFP stated that: "Proposers shall submit proposals which shall include at minimum; revenue structure, a general design concept, a client list of advertisers, and a sample of contractor's standard contract. Proposers are encouraged to respond to all requirements contained in this RFP in order to comparatively evaluate each proposal." It is the finding of the Public Works staff that the proposal submitted by the County Bench Advertising Company is incomplete and therefore can not be "comparatively" evaluated to other proposal's received.. 2) Within the RFP, Attachment "A"; General Specifications for Furnishing and Maintaining Bus Shelters and Benches in the City of Santa Clarita, Section "B", proposers were required to "post and maintain" a Certificate of Deposit to the City in the amount of ten thousand dollars ($10,000). The County Bench Advertising Company's proposal received by the City proposed a performance bond in the amount of $5,000. 3) Per the specification of the City RFP, proposers were asked to provide the City with a revenue neutral proposal which channeled potential revenue that would be realized by the City, back to transit amenities in the form of non - advertising bus benches. Additionally, the RFP requested proposers to provide for trash receptacles and trash removal at bench sites. Upon review of the proposal, County Bench Advertising Company did not provide the City with these types of transit support amenities. PRINTED ON RECYCLED PAPER Lawrence Leicht August 30, 1994 Page 2 Per your conversation with Kevin Tonoian, Public Works Administrative Analyst, County Bench Advertising has requested that their proposal be forwarded to the City Council, with the understanding that Public Works staff will recommend that the proposal be disqualified for the above stated reasons. If you have any questions regarding the City's decision, or should you choose to withdraw your proposal, please contact me at (805) 294-2500. SincKKolin Deputy City Manager/Public Works IK:kmt Countybe.nch CC: Donna Grindy, City Clerk