TITLE
Recommendation to authorize City Manager to execute a five-year Agreement with CBS-Decaux to construct and maintain ad-bearing bus shelters, with an option to extend the agreement for two (2) additional five-year terms. (Citywide)
DISCUSSION
Since January of 1998, CBS Outdoor, currently CBS-Decaux, has provided and maintained ad-bearing bus shelters along with refuse containers for the City of Long Beach. In anticipation of the expiring contract, City staff issued a Request for Proposals for a new ad-bearing bus shelters contract. The City received only one response to the Request for Proposal, which was from the current contractor, CBS-Decaux.
The proposal offered by CBS-Decaux is essentially the same as their current contract, which includes a revenue of $140 per shelter per month, or 20 percent of the gross revenue for that shelter, whichever is greater. Added to the contract is an option that would allow a bike shelter contractor to subcontract with CBS-Decaux to install and maintain ad-bearing bike station modules or bike parking shelters. Approval from Public Works for each proposed bike station module will be required.
Based on the City’s favorable past experience with both the maintenance and the ad revenues from this contractor, staff is recommending that a new five-year agreement be entered into with CBS-Decaux, and authorization for the City Manager to extend the Agreement for two (2) additional five-year terms.
This matter was reviewed by Deputy City Attorney Linda Vu on October 23, 2014, and by Budget Management Officer Victoria Bell on October 27, 2014.
TIMING CONSIDERATIONS
City Council action on this matter is requested for November 18, 2014, to allow for a new contract by the end of November.
FISCAL IMPACT
The City of Long Beach will continue to receive approximately $350,000 per year over the five-year term of this contract, in the General Fund (GF) in the Public Works Department (PW). Approval of this recommendation will ...
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