SR-1000-003
.G S : S E, S : M H : d d I
Council Meeting Ja ary 12t 1982
Santa~niCat California
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TO:
Mayor and City Council
. . t' ~ I)
J i..; h 1 u 1982
FROM: City Staff
SUBJECT: Approval of Transit Shelter Pilot Program
Introduction
_This report transmits information to the City Council regarding
the concept of construction of transit shelters at major bus
stops and major streets as selected by the City.
Background
Transit shelters have been installed in several California cities
within the past five years. These shelters aret in most casest
three-sided plexi-glass structures with lighting. Some cities
have allowed private firms to install the shelters. Advertising
is usually sold and installed on one end wall of the shelter (see
Diaqram) and the firm maintains and cleans the shelter and
immedlate area and pays a fee to the City for use of the
sidewalk.
Staff has been contacted by several businesspersons
with requests to negotiate for the right to build shelters in the
City.
The City may purchase shelters and install them with or without
advertising. A discussion of the advantages and disadvantages of
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Council Meeting January 12t 1982
santa~niCat California
City-Installed versus Contractor-Installed shelters is presented
for consideration.
1. City-Installed Shelters
The City could request proposals to furnish bus shelters. This
was recently done in Torrance and only one bid to provide the
shelters was received. Staff has determined that the cost per
shelter is about $6,000 including installation.
In addition to the purchase and installation costst the City
would be required to maintain the shelters and make any necessary
repairs resulting from damage or vandallsm. If the Clty chose to
all ow
advertising
on the shelters, staff would negotiate
contracts with prospective advertisers.
The City would receive
advertising revenue of about ~600-700 per month per shelter
depending
on
the location of the shelter.
The cost of
maintaining the shelters would be about S130/month depending on
the
frequency
of cleaning.
The payback period for City
construction and operation will be approximately 2.5 years after
which time the City could expect to receive net revenues of about
$6tOOO/ shelter annually.
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Council Meeting Ja ary 12t 1982
Santa~niCat California
2. Contractor-Installed Shelters
With contractor-installed shelters, the City would be able to
negotiate the placement of the shelters, shelter design and size,
advertising restrictions and conditions for maintenance and
repair, while receiving income. for allowing the placement of
shelters on City sidewalks.
Most cities have attempted to receive between 10-20% of the gross
profits.
However, they have received fewt if any, proposals.
The staff has received a proposal from Mrs. Ann Kahn which gives
the City 1S% of the actual gross receipts received from selling
the advertising space on the shelters after the first year. The
staff chose not to deal with either of the two very large
n a t ion a 1 firm s due tot he sma 1 1 s i z e 0 f 0 u r pro p 0 sed pro g ram.
The Contractor has sent staff an estimate of the expenses and
revenues involved in her proposal.
Expense
Construction
Insurance
$3,300jshelter
150/shel ter
It500/3,500 per shelter
(depends on location,
electriCity hookUPt etc.)
85jshelter/year
SOD/shelter/year
Del i very
lnstallation
Maintenance
Estimated Cost Per Shelter $4t900 - $6,900
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Council Meeting January 12t 1982
santa~nica, California
City's Revenue
ESTIMATED
REVENUE
GUARANTEED
MINIMUM
First Year
o 0
Second Year
$1260jshelter $420/shelter
$1440jshelter $480/shelter
Third Year
In subsequent yearst the revenues will increase in
accordance with inflation of costs of advertising.
The contractor has requested the right to construct 10 shelters
for a period of 7 years with a right of first refusal to
construct 10 additional shelters. In additiont the contractor
will clean and maintain the shelters twice a week. T~e shelters
will be cleaned more often on an individual basis if conditions
warrant.
The City will provide to the contractor the conditions
of advertisingt i.e. what types of ads the City will allow on
the
shelters.
In
additiont the City will approve each
advertisement before it is displayed on the shelter. The City of
Beverly Hills has in the past six months received complaints on
only one ad; this was immediately replaced by the contractor.
These s~elters are considered by most peoplet which the staff has
surveyed. to be in good taste and are enjoyed by the transit
passengers as they provide shadet protection from raint and an
element of security at night because of the lighting. The
shelters will be designed for disabled persons. The shelters
will have bus schedules and route information installed and
maintained by contractor and furnished by City. The City will
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Council Meeting January 12, 1982
santa~nicat California
also require space for public information of a general nature
including recreationt housing, anti-discrimination informationt
and notification of elections.
This space will be under the
control of the City Public Information Officer. The advertising
is allowed by permit in Section 8517 of the Santa Monica
Municipal Cadet but Section 8530 will be required to be modified
if the Council decided to allow advertising.
ALTERNATIVES:
1. The City Council can decide not to be involved with bus
shelters.
2. The City Council can advertise for bids to construct 10 or
more shelterst arrange for advertisingt and allocate funds
for maintenance of the shelters.
2. The City Council can request proposals for construction and
operation and maintenance of the 10 shelters.
3. The City Council can direct the City Manager to negotlate a
Pllot contract with Mrs. Ann Kahn to constructt operate. and
maintain 10 transit shelters contingent upon approval of the
shelter design by the Architectural Review Board and evaluate
the program to determine its benefits.
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Council Meeting January 12, 1982
Santa~nica) California
4. The City Council can authorize the staff to make further
study of thlS proposal and determine if there are methods to
further maximize the revenue to the City and aesthetic
concerns of the public and convenience to the public.
Recommendation
Staff recommends Alternative No.4.
Prepared by: Stan Scholl
Marsha Hafkemeyer
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