Subject:     TRANSIT SHELTER ADVERTISING PROGRAM

 

COUNCIL DISTRICT:  Citywide

 

 

RECOMMENDATION

 

Approval of the third amendment to the Implementation Agreement for the Transit Shelter Advertising Program with the Santa Clara County Transit District, also known as the Santa Clara Valley Transportation Authority (“VTA”), the County of Santa Clara, various cities in Santa Clara County (“Participating Entities”) and Eller Media Company.

 

BACKGROUND

 

On October 17, 1995, City Council approved an agreement with Eller Media Company (formerly Patrick Media Group) and the VTA for the Transit Shelter Advertising Implementation Program.  This agreement requires Eller Media Company to maintain all of the VTA bus shelters in exchange for the right to place advertisements on 75% of the bus shelters.  Approximately 280 advertising bus shelters have been installed in the City of San José.

 

This program generates approximately $186,000 per year in advertising revenue for the City.  Additionally, each new shelter requires the issuance of an encroachment permit from the City, with a $300 permit fee payable for each permit.

 

In early 1997, the first and second amendments to the Implementation Agreement were approved to reflect the participation and inclusion of the City of Morgan Hill and the City of Campbell, respectively.  Current Participating Entities include the County of Santa Clara and the cities of San José, Sunnyvale, Gilroy, Campbell, Cupertino, Morgan Hill, Los Altos, Santa Clara, Mountain View and Milpitas.  All of these jurisdictions receive advertising revenue from this program.

 

ANALYSIS

 

The purpose of this amendment is to establish a schedule of liquidated damages to be assessed in the event Eller Media Company fails to comply with certain performance requirements in the Implementation Agreement.  Required maintenance obligations include meeting performance standards with regard to lighting, trash collection, vandalism repair, and graffiti removal.  In addition to any liquidated damages remedy, VTA and Participating Entities reserve the right to exercise any other terms and conditions they have pursuant to this contract, including performing needed repair or maintenance and demanding from Eller Media Company reimbursement for expenses incurred.

Title reports issued by First American Title Guaranty Company, dated January 3, 2001, indicate that the Heirs or Devisees of James A. White, deceased, subject to the administration of the Estate of the said decedent, hold fee title to the portion of White Street to be vacated.

 

PUBLIC OUTREACH

 

No applicable.

 

COORDINATION

 

This amendment has been coordinated with the City Attorney’s Office and the Santa Clara Valley Transportation Authority.

 

COST IMPLICATIONS

 

None.

 

 

RAJEEV BATRA

Acting Director, Public Works Department