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HomeMy WebLinkAbout1992-08-25 - AGENDA REPORTS - BUS SHELTERS (2)AGENDA REPORT City Manager Approval Item to be presented by Jeff Kolin CONSENT CALENDAR DATE: August 25, 1992 SUBJECT: DEPARTMENT: BACKGROUND BUS SHELTERS Public Works At their May 12, 1992 meeting, the City Council directed staff to terminate the City's contract with Bustop Shelters of Southern California and directed staff to solicit bids for advertising bus shelters. At this time, staff feels it is appropriate to inform Council of what actions have transpired since that meeting, and what action staff anticipates will transpire in the future. The City, other than staff time, has not spent any additional funds on bus stop shelters or the contract. In fact, the City has been holding $23,000 from Bustop Shelters and will, along with it's motion to the court, plead for liquidated damages for staff time for approximately $12,000. The City Attorney's office has requested Bustop Shelters to respond to our request to terminate the contract. To date, neither Bustop Shelters nor their legal representatives have responded. Accordingly, the City Attorney's office will bring a motion to the Federal Bankruptcy Court to terminate the City's contract with Bustop Shelters. Staff has identified two possible methods in which the City can provide local bus stop shelters. The fust method is for the City to pay for the construction and maintenance of non -advertising bus shelters. The second method is for the City to contract with a bus shelter/advertising company to provide shelters at no cost to the City, and that further would pay the City some type of advertising revenue. The greatest advantage in advertising shelters is that the City receives free shelters, while paying no maintenance costs. The greatest detractions are; 1) The City does not own the shelters and should the shelter company become insolvent, as in the case of Bustop, Shelters, the City may have a difficult time removing or maintaining shelters that we do not own. 2) Ad shelters are outdoor advertising. The General Plan recognizes the aesthetic impacts of outdoor advertising. However, because of the size of the ads, bus shelter advertising falls within the permitted parameters of the City's Sign Ordinance No. 89-17. on Agenda Item• Bus Shelters August 25, 1992 Page 2 If Council directs staff to move towards non -advertising shelters, cost is a consideration. Under the current Transit budget, little funds are available to purchase and maintain non - advertising shelters. However, staff has applied for state and federal grants to provide 40 non -advertising bus shelters within the City. Staff expects to receive word back from the state and federal granting agencies some time in October of this year. Depending on the responses to the City's RFP, the design and construction cost of customized or semi -customized shelters may allow the City to develop a phased shelter program within existing revenue sources. Working within current budget parameters, and the estimated construction costs, staff believes that 15 shelters could be constructed within five years. Staff recognizes that there are immediate needs to provide benches or shelters at popular bus stops within the City. Two such locations are in the Friendly Valley and Val Verde areas. To meet the parameters as identified in this report: 1) Advertising versus non -advertising; 2) Costs and; 3) Immediate needs, staff plans to go forward with a multi-level RFP. Respondents to the City's RFP would be able to respond to all or one of the requests on the RFP. The first request would be to provide the City the cost/revenue of providing 40 advertising bus shelters. The second request would be to provide the City a per shelter cost for the installation of pre -fabricated standardized, non -advertising shelters. The third request would be to provide Santa Clarita with unique and customized bus stop shelters. If Council directs staff to pursue customized, non -advertising shelters, due to the cost staff would recommend reduction of the number of shelters purchased and that these shelters be placed in central locations where shade and protection from the weather are necessary. Conversely, if Council chose to move toward advertising shelters, due to their non -cost to the City and potential advertising revenue, it is conceivable that a shelter may eventually be placed at almost every non-residential bus stop in the City. At the May 28, 1992 Public Works Budget Hearing, Council requested an update as to when advertising bus stop benches in the City would be removed. Per Council's direction, at its October. 22, 1991 meeting, staff began to phase out advertising benches with advertising bus shelters; however, the Bustop Shelters, Inc. bankruptcy delayed our efforts. The reduced funding from Proposition A and Proposition C to the economy also eliminated funds for the direct purchase of non -advertising benches or shelters. The current 1992-93 Fiscal Year budget contains $2,000 for benches and no funds for shelters. Staff will proceed based on Council direction as to the type of shelter desired and available funding. Bus Shelters August 25, 1992 Page 3 Staff's preferred method of providing shelters to riders of Santa Clarita Transit are through non -advertising shelters. Pending the outcome of the grant applications, funding may be available to accomplish a non -advertising bus shelter program. In the event that the City's grant funding applications are unsuccessful, staff will continue with the preparation of a multi-level RFP so that we may go forward with the type of program that will meet our budgetary constraints. RECOMMENDATION Receive and file. ATTACHMENT Bus Shelters: Advertising v. Non -Advertising 7K:kmt busshelt.agn ATiACHMEIVT I BUS SHELTER: ADVERTISING v. NON -ADVERTISING ADVERTISING PROS Costs Capital: Maintenance: (Twice a week) ftaair: Total: Revenue: CONS NON -ADVERTISING CONS Costs None Capital: None *Maintenance: (Once a week) None ftair: None Total: Aesthetics Less pleasing Advertisements (City does have final approval) Public Complaints Estimated to be higher City does not own shelters $ figures used based on I1 shelters for 12 months * includes the 7 shelters the City already has BUSSHELT.ATT Revenue: PROS $ 77,000 $ 25,400 Aesthetics More pleasing No advertisements Public Complaints Estimated to be lower City owns shelters 111 None