HomeMy WebLinkAboutNB 5 BUS STOP SHELTER 05-03-93NEW BUSINESS N0. 5
5-3-93
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.LATE: MAY 3, 1993 I n t e r- C o m ?•
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: BUS STOP SHELTERS
Pleasure of the City Council.
FISCAL IMPACT
There are substantial revenues and other community benefits
associated with entering into a franchise agreement for the
installation and maintenance of advertising bus shelters at
locations throughout the city. Exact revenues cannot be estimated
at this time since franchise fees and terms would need to be
negotiated based on the number of shelter locations.
There would be costs to the city in staff time and legal services
to prepare a franchise agreement, process building permits, utility
relocations, encroachment permits and monitor any franchise
agreement.
BACKGROUND AND DISCUSSION
At a regular meeting on April 5, 1993, Councilman Thomas requested
that staff provide the City Council with information regarding
whether advertising bus shelters where permitted within the public
right-of-way in Tustin.
The issue of advertising bus shelters has been previously discussed
and considered by the City Council. The City Council in July of
1991, reviewed information regarding advertising bus shelters
located in the City of Irvine and referred the issue of advertising
bus shelters to the Planning Commission for review and
recommendation. At that time the Sign Code prohibited placement of
bus shelters with advertising displays in any public safety area or
in the public right-of-way. Based on direction provided by the
Planning Commission and City Council, the revised Sign Code adopted
in October 1991 includes criteria for permitting advertising
displays on bus shelters.
While advertising bus benches continue to be prohibited,
advertising display bus shelters would be permitted within the City
of Tustin pursuant to Section 9404 of the Tustin City Code (Sign
Code) if they meet the following conditions.
City Council Report
Bus Stop Shelters
May 3, 1993
Page 2
1. A franchise agreement or other contractual agreement
acceptable to the City Attorney is required for all
advertising bus shelters proposed within the public
right-of-way. City Council approval is also required for
all shelters located within a public safety area.
It should be noted that several cities have been
contacted regarding their franchise agreements with
various bus stop shelter companies. Based on preliminary
information gathered from other cities, potential revenue
to the city from shelters can range from $75.00 to
$150.00 per month per shelter. Staff, however, have also
been advised by the cities we contacted that staff time
and costs expended on processing and monitoring franchise
agreements can result in a net loss in revenues.
2. The Planning Commission and City Engineer must review and
recommend to the City Council appropriate locations,
design and construction details for all advertising bus
shelters prior to award of a franchise agreement or
approval of alternative contractual agreement. However,
in no case may an advertising bus shelter be located
within a residential neighborhood. The Planning
Commission may also recommend certain guidelines to the
City Council on appropriate standards for advertising
and/or design.
3. All advertising display bus shelters must be located
based upon ridership demand, as determined by the Orange
County Transit Authority and City Engineer.
4. Advertising display bus shelters must not contain
advertising for tobacco or alcohol products.
In addition to provisions of the Sign Code, the City also has the
ability to require standard benches or bus shelters to be
incorporated into the site plans for new developments. Currently
all new developments in the City of Tustin, such as the Tustin
Ranch, are conditioned through the subdivision process to provide
bus shelters based on projected ridership demands with the shelters
adhering to the architecture of the surrounding developments. New
projects such as the Costco/K-Mart site have been required to
provide and maintain bus shelters in order to comply with the Air
Quality Management Plan, the City's Congestion Management Plan and
the City's Trip Reduction Ordinance. Each of these plans or
Ci7:y Council Report
Bus Stop Shelters
Mav 3, 1993
Page 3
ordinances requires and/or implements measures to reduce traffic
and air pollution including actions such as making alternate
transportation modes more accessible (i.e. transit). The state Air
Quality and Congestion Management Plans also provide tools that
permit the City of Tustin to require the installation of bus
benches for certain new developments of a certain size outside the
Tustin Ranch area where the Orange County Transportation Authority
data shows the ridership is of a significant level to warrant the
installation. Since the City of Tustin can require the
installation of benches or shelters as a condition of project
approval, there is no fabrication or installation cost to the City
or its residents.
Recently City staff have been contacted by a local advertising bus
stop shelter company who wishes to proceed with negotiation of a
contractual agreement for installation of advertising bus shelters
in the City of Tustin. While this particular company has franchise
agreements with a number of Orange County cities, they are also
currently involved in Chapter 11 Bankruptcy action. As the Council
is aware, there have been previous concerns in the City regarding
sole source contracts. Since there are at least three major
companies currently providing advertising bus shelters under
contract to other cities, staff would recommend that a request for
proposal process be utilized in the event the City Council wishes
to proceed at this time with installation of advertising bus
shelters at high ridership areas within the City.
The Request for Proposal (RFP) would define certain guidelines and
appropriate locations, standards and details for advertising and
design of bus shelters which would first be reviewed by the
Planning Commission. A (RFP) respondent would be responsible for
the construction, installation, repair, maintenance, and insurance
for a specified number of locations around the City and would
stipulate the estimated compensation to be provided to the City
from advertising revenues. To assist the Community Development
Department and Public Works Department in preparation of an RFP
document the City staff have collected a number of franchise
agreements and RFP's used by other Orange County cities.
Christine A. Sh' leton Robert Ledendecker
Assistant City Wanager Director of Public Works
Community Development City Engineer
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