TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Transit Shelter Contract Update
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the status of the District's contract with Clear Channel Outdoor (CCO) to install and maintain transit shelters throughout the AC Transit service area.
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Service Quality
All transit trips begin at the bus stop so shelters play a critical role in the quality of the customer experience at those bus stops. Shelters provide a safe, attractive place for customers to wait for the bus and create a clear visual marker for customers to know where to catch the bus. Ensuring a strong, up-to-date transit shelter contract will help meet the District's Strategic Goals and Initiatives.
BUDGETARY/FISCAL IMPACT:
The 1999 Transit Shelter Contract is a non-monetary asset, which means advertising on bus stops/transit shelters should generate sufficient revenue for CCO to perform all duties laid out in the contract. The contract includes an administrative fee of $123,000 paid by CCO to the District. The annual fee has traditionally been adjusted for inflation per the local Consumer Price Index.
However, given the recent economic challenges connected to the COVID-19 pandemic, CCO is proposing a $30,000.00 administrative fee for the remainder of the 2020 calendar year (effective March 20-December 20).
It is important to note the contract would continue to be a non-monetary asset so the District will still not be required to pay CCO any money for the services provided under the Contract.
BACKGROUND/RATIONALE:
On November 13, 2019, the AC Transit Board of Directors awarded a contract to CCO Advertising (CCO) for the design, supply, construction, and maintenance of advertising and non-advertising transit shelters. The proposed term of the contract is for five years, with three five-year options.
After this...
Click here for full text