SR-11-F (2)
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San taM 0 n i c a, C a 1 i for n t! J an u a r y 12! 1982
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TO:
Mayor and City Council
-~tA N J. 2 1982
FROM: City Staff
SUBJECT: APp~val of Transit Shelter Pilot Program
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Introduction ~
This report reque~ the City Council to a~prove in concept the
construction of tr~sit shelters at seve~l major bus stops on
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Wilshire Boulevard a~ other major as selected by the
City and direct the Cit~\\r.','fanage_,~ 0 ne:~iate a contract for 10
shel ters. .- ~ ;}
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:::::~:u::elters have been lnst~;~several California cities
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withi~ the past five years. These\ shelters are, in most cases,
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three-sided plexi-glass structures \~\~th lighting. Some cities
have allowed private firms to install \t,he shelters. Advertising
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is usually sold and installed on one end\~all of the shelter (see
Diagram)
immediate
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and the firm maintains and hleans the shelter and
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area and pays a fee to the \Ci ty for use of the
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sidewalk.
Staff has been contacted by several
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with requests to negotiate for the right to bUi}d
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businesspersons
shelters in the
City.
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GS:SES:MH:KS
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Santa Monica, Cali for!., January 12, 1982
The City may purchase shelters and install them with or without
advertising. A discussion of the advantages and disadvantages of
Clty-Insta11ed 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 costs, the City
would be required to maintain the shelters and make any necessary
repairs resulting from damage or vandalism. If the City chose to
allow advertising on the shelters, staff would negotiate
contracts with prospective advertisers. The City would receive
advertlsing 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 $130/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
$6,000/ shelter annually.
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Santa Monica, California, January 12,1982
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2. Contractor-Installed Shelters
Witn contractor-installed shelters, the City would be able to
negotiate the placement of the shelters, shelter deslgn 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 few, if any~ proposals.
The staff has received a proposal from Mrs. Ann Kahn which gives
the City 15% 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
national firms due to the small size of our proposed program.
The Contractor has sent staff an estimate of the expenses and
revenues involved in her proposal.
Expense
Construction
Installation
S3,300/shelter
150/shelter
1,500/3,500 per shelter
(depends on location,
electricity hookup, etc.)
85/shelter/year
50D/shelter/year
Delivery
Insurance
Maintenance
Estimated Cost Per Shelter $4,900 - $6,900
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Santa Monica, Cal ifor!, January 12, 1982
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Ci ty I S Revenue
ESTIMATED
REVENUE
GUARANTEED
MINIMUM
First Year
o 0
Second Year
$1260/shelter $420jshelter
$1440/shelter S480/shelter
Third Year
In subsequent years, 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 addition, the contractor
wlll clean and maintain the shelters twice a week. The shelters
will be cleaned more often on an individual basis if conditions
warrant.
The City will provide to the contractor the conditions
of advertising, i.e. what types of ads the City will allow on
the
shelters.
In
addition, 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 shelters are considered by most people, which the staff has
surveyed, to be in good taste and are enjoyed by the transit
passengers as they provide shade, protection from rain, 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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