276986 WHITE - CITY CLERK ��.�����
PINK - �INANCE
CAN/('R'� - DEPARTMENT COURCII
BLUE - MAYOR G I T Y O F S A I N T � PA U L File N O. �
� cil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, The Minnesota State Legislature has enacted legislation
(Minn. 5tat. �160.27) permitting cities to grant nonexclusive fran-
chises by public negotiation or bid for the construction, operation
and maintenance of bus shelters and benches with advertising vn the
shelters; and
WHEREAS, The Metropolitan Transit Commission has adopted the
following policy encouraging the establishment of bus shelters Htith
advertising:
POLICY STATEMENT
Shelters with Commercial Advertising
The MTC supports the development of passenger waiting shelters
with commercial advertising at locations which complement
transit service. The commission will cooperate with person
or firms proposing passenger waiting shelters with advertising
by providing information regarding existing bus service, bus
stop locations and future transit plans. The MTC will agree
to relocate its passenger waiting shelters so that shelters
with commercial advertising may be installed if the following
conditions are met.
(1) An alternative shelter site for the MTC shelter is
identified and the necessary approvals are received;
(2) The private firm or individual obtains the necessary
approvals for the installation of a shelter with
commercial advertising at the existing MTC shelter
s ite; and
COUNCILMEN Requestgd by Department of:
Yeas Nays
Hunt
Levine [n Favor
Maddox
McMahon B
snowaiter __ A gai n s t Y —
Tedesco
�Ison
Adopted by Council: Date Form Approved by City Attorney
Certified Yassed by Council Secretary BY
B�
Approved by ;lqavor: Date Approved by Mayor for Submission to Council
By _ By
� �f���S
(3) The private firm or individual assume all MTC
administrative, labor equipment and construction
costs associated with the relocation of the MTC
passenger waiting shelter.
The MTC is not, and will not in the future, be obligated to
assume the ownership and/or maintenance responsibilities for
any shelter installed by a private firm or individual.
WHEREAS, The Council ' s Development and Transportation Committee
has studied the matter and recommends that the City pursue the
possibility of awarding a franchise for the private installation
of bus shelters with advertising by requesting the receipt of bid
proposals based on the attached draft of a franchise ordinance;
now, therefore, be it
RESOLVED, That the Council of the City of Saint Paul does
hereby concur in the recoznmendations of the Development and Trans-
portation Committee that there exists a public need for bus shelters
that cannot be adequately fulfilled alone by the Metropolitan
Transportation Commission and that the public will benefit from
the private installation of bus shelters with advertising; and,
be it
FURTHER RESOLVED, That the Council does hereby request the
Mayor and Director of Public Works to take all actions required
to advertise for and receive proposals for the granting of a non-
exclusive bus shelter franchise to be issued by the City Council
pursuant to State law and City Charter provisions, the proposals
to be based on the terms and conditions contained in the attached
franchise ordinance draft, and to report back to the Council all
proposals received; and, be it
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WHITE - CITY CLERK I-'� [�[�
PINK -.�. FINANCE j��]�Q
CANARY - DEPARTMENT COl1I1C1I � �`�
BLUE - MAYOR GITY OF SAINT � PAUL File NO.
` Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
FURTHER RESOLVED, That after receipt of proposals, and the
recommendations of the Mayor and Director of Public Works, the
Council shall at a public hearing consider the proposals and hear
all interested parties, and after negotiations have been completed,
may award a franchise.
-3-
COUNCILMEN Requestgd by Department of:
Yeas Nays
Hunt
Levine In Favor
Medd�r�'
McMahon
��. _ __ Against BY —
Tedesco
Wilson
JUN 1 1 1gg� Form Approved by City Attorney
Adopted by Council: Date —
Certified Vassed by ouncil Secr��y BY
B �� ----���
Appro by ;Vlayor: e � JU����O� �r� APproved by Mayor for Submission to Council
By — BY
PUBL�SHED JUN 2 01981
ti
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BUS SHELTER FRANCHISE ORDINANCE
Index
Section 1 Grant
2 Rights and Privileges of Company
3 Agreement
4 Term - Renewal
5 Commencement of Term
6 Area
7 Police Powers
8 Other Franchises
9 Notices
10 Fee for Franchise - Minimum Fee
11 Accounts and Records
12 Insurance
13 Indemnification
14 Assignment or Transfer
15 Locations - Public Hearings
i6 Performance Bond
17 Letter of Audit
18 Removal of Shelter e
19 Public Works to Regulate Installation
20 City may Require Shelter Installation Schedule
21 Maintenance
22 Advertising
23 Forfeiture
24 Disposition of Shelters on Expiration of Franchise
25 Right of Abutting Property Owner to Construct
Shelter
26 Civi1 Rights
27 Severability
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DRAFT
5-1-81
An Ordinance granting a nonexclusive
franchise to
to own, operate and maintain shelters
for transit passengers in the City of
Saint Paul, setting forth conditions
accompanying the grant of franchise and
providing for the regulation and use of
said shelters and the advertising placed
on the shelter.
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section l.
Grant. Acting pursuant to the authority granted to the City
of Saint Paul by the Minnesota State Legislature pursuant to Minn.
Stat. §160.27 , subd. 2, the Council of the City of Saint Paul does
hereby grant to (hereinafter referred
to as "company") a nonexclusive bus stop shelter franchise subject
to all the terms and conditions set forth in this franchise ordi-
nance.
Section 2.
Rights and Privileges of Company.
The franchise granted by the City shall grant to the company
the right to place and maintain within the limits of any streets
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' within the City of Saint Paul, for the convenience and comfort of
persons waiting for buses at such locations as may be designated
by the City in the manner provided herein, bus shelters with
advertising displayed thereon subject to the limits and conditions
set forth in this franchise ordinance.
Section 3.
Agreement.
Upon adoption af this franchise o�dinance and execution of
the acceptance thereof by the company, the company agrees to be
bound by all the terms and conditions contained herein. The
company also agrees to provide all services set forth in its
application and by its acceptance of the franchise, company
specifically agrees that the invitatian for applications and the
company' s application are thereby incorporated by reference and
made a part of this franchise ordinance. In the event of a
conflict between the application made by the company and the
provisions of this ordinance, that provision which provides the
greatest benefit to the City in the opinion of the City Council
shall prevail.
Section 4.
Term-Renewal.
The term of this franchise granted by the City shall be for
a term of 10 years from and after the effective date hereof .
Thereafter the franchise may be renewed for an additional 10 year
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term on such terms and conditions as may be mutually acceptable to
the City Council and Company.
Section 5.
Commencement of Term.
The franchise term shall commence with the effective date of
this ordinance provided that the Company has filed within 30 days
after publication of this ordinance a written acceptance hereof
with the City Clerk in such form as the City Attorney may approve,
and provided that the bond, the evidence of comprehensive liability
insurance and letter of credit, which are required by this ordinance,
shall have been approved and have been filed with the City Clerk
within 90 days after the publication of this ardinance.
Section 6.
Area.
This franchise is granted for the entire area of the City of
Saint Paul as it exists and as its borders may from time to time
be changed.
Section 7.
Police Powers.
In accepting this franchise the Company acknowledges that its
rights hereunder are subject to the police power of the City to
adopt and enforce general ordinances necessary to the safety and
welfare of the public; and it agrees to comply with all applicable
general laws and ordinances enacted by the City pursuant to such
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power.
Section 8 .
Other Franchises.
No bus stop shelters with advertising displayed thereon shall
be allowed to occupy or use a right-of-way of any street or highway
within the City af Saint Paul without a franchise. This shall not,
however, include shelters constructed by the Metropolitan Transit
Commission. The rights hereby granted are not exclusive and the
City may grant like rights to other persons during the term of
this franchise.
Section 9 .
Notices.
Al1 notices from Company to the City pursuant to this franchise
shall be to the Director of the Department of Public Works unless
otherwise stated herein, or to any other officer designated by the
Director of the Department of Public Works. Company shall maintain
within the City throughout the term of this franchise an office
and address for service of notices by mail. Company shall also
maintain with the City a local office and telephone number for the
conduct of matters related to this franchise open during normal
business hours.
Section 10.
Fee for Franchise-Minimum Fee.
In consideration of the rights granted the Company by this
franchise, the Company agrees to pay the City a fee equal to g
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of the gross revenues that the Company derives from advertising on
shelters located within the City. Provided, however, that in no
event shall the amount of fee, paid monthly, be less than the sum
of $
The fee shall be paid to the City monthly within 10 days after
the expiration of each calendar month. Each payment shall be based
upon the gross revenues received in the preceding calendar month.
The gross revenue as defined shall mean all advertising
revenue derived directly or indirectly by the Company, its affili-
ates, subsidiaries, apparent or any person in which the Company
has a financial interest, from or in connection with the operation
of the franchise prior to any deduction, provided, however, that
this shall not include any taxes on services furnished by the Com-
pany herein i.mposed directly upon any advertiser by the City, State
or other governmental unit and collected by the Company on behalf
of said governmental unit.
Section 11.
Accounts and Records.
The Company shall keep books of account and records of all
business transacted and costs incurred in connection with the
purchase, manufacture and installation of the shelters and adver-
tising on shelters, showing all financial transactions including
receipts and disbursements and the particulars thereof in a form
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satisfactory to the Director of the Department of Finance and
Management Services. Company shall make such books of account and
records available at all reasonable times for inspection, exami-
nation or audit by City officers, employees or agents. Company
shall submit such statements in regard to revenue as the City's
Director of the Department of Finance and Management Services may
reasonably require.
The Company shall file annually with the City no later than
120 days after the end of the Company' s fiscal year, a copy af a
financial report applicable to the Saint Paul bus shelter system,
including an income statement relating to its operations during
the fiscal year and a balance sheet, both of which shall be certi-
fied as correct by an independent certified public accountant, and
a statement of its properties, equipment and facilities which are
located upon the streets, highways and public places within the
City giving its investment in such facilities on the basis of
original cost, less applicable depreciation. These reports shall
be certified as correct by an authorized officer of the Company
and shall be submitted along with such other reasonable information
as the City shall request with respect to the Company's facilities
and expenses related to its bus stop shelter system operations
within the City.
The Company shall also file with the City Clerk copies of
its Articles of Incorporation, bylaws, agreements with any other
person relating to the ownership of the bus stop shelter system,
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an amendments of such documents as they become effective,
Section 12 .
Insurance.
The Company shall, during the entire term of this franchise
and extensions thereof, maintain in force, at its own expense,
a policy of comprehensive liability insurance to be filed and
maintained with the Department of Finance & Management Services,
The insurance policy shall insure the City, members of its Board
and Commissions and its officers, employees and agents, and the
Company from all liability on account of injuries, death or damage
to any person or persons and damage to property arising out of
or resulting from or in connection with the construction, operation,
maintenance, location, placement or removal of any shelter or
other facility of the Company, or occasioned by any of the
activities of the Company, its officers, agents or employees under
this franchise. Minimum liability limits under the policy are to
be $100, 000 for bodily injury or death of any one person, $300, 000
for bodily injury or death of more than one person in a single
occurrence; and $100, 000 for property damage to one claimant and
$300, 000 for more than one claimant in a single occurrence.
The policy shall be of type in which coverage is restored
immediately after the occurrence of any loss or accident from which
liability may thereafter accrue. The policy shall contain an endorse-
ment which shall provide that no cancellation shall become effective
without 30 days prior written notice to the City of intent to cancel
or not to renew. In the event such insurance is cancelled and the
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Company shall fail to immediately replace it with another equivalent
palicy, the City may terminate their franchise and declare it to be
forfeited.
Section 13 .
Indemnification.
A. The Company shall fully indemnify, defend and save harm-
less the City, its officers, board, commissions, employees and
agents from any and all claims, suits, actions, liability and
judgments for damages (including but not limited to expenses for
reasonable legal fees and disbursements assumed by the City in
connection therewith) ;
(1} For injury or death to any person or persons or damage
to property arising from or in connection with the acts of the
Company, its officers, agents or employees in the construction,
operation, maintenance, location, placement or removal of any
bus stop shelter or other facility of the Company;
(2) Arising out of replacement or display of any advertise-
ments, notices, signs or posters on any shelters; or
(3) Arising out of the exercise of any other right or privi-
lege under the franchise.
B. 1In the event that suit is brought or that damages or other
recourse shall be sought against the City, either independently or
jointly with the Company on account of or arising out of any injury,
death, property damage or activity of the Cqmpany referred to in
subparagraph A of this section, the Company, upon notice by the
City, shall defend the City in such suit or action at the cost of
the Company, and in the event of final judgment being obtained
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against the City, either independently or jointly with the Company,
the Company shall indemnify the City and pay such judgment with all
costs and hold the City harmless therefrom. The Company shall pay
all expenses incurred by the City in defending itself with regard
to all damages and liability referred to in this section. Nothing
herein shall be deemed to prevent the City from participating in
the defense of any litigation by its own counsel at its own sole
cost and expense.
Section 14 .
Assignment or Transfer.
A. The franchise shall not be sold, assigned or transferred,
either in whole or in part, or leased, sublet or mortgaged in any
manner, nor shall title thereto, either legal or equitable or any
right, interest or property therein, pass to or vest in any person
without the prior consent of the Saint Paul City Council. Any
assignee, lessee, mortgagee and any person or entity having or
acquiring any interest, right or title in or to the facilities
that are installed or operated hereunder must show financial
responsibility as determined by the City and agree to comply with
all provisons af the franchise. Any document by which any interest,
right or title to the franchise or the facilities that are installed
or operated hereunder are transferred to or vested in any person
shall, by its terms, be expressly subordinate to the terms and
conditions of the franchise.
B. The Company shall notify the City by certified mail,
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return receipt requested, of .any actual or proposed change in, or
transfer of, or acquisition by any other party of, control of the
Company or the facilities installed hereunder. The word "control"
as used herein is not limited to major stockholders but includes
actual working control in whatever manner exercised. Any transfer,
sale or assignment of the franchise, or control of the Company, or
facilities that are installed or operated hereunder, shall be cause
for forfeiture of the franchise unless and until the City shall
have consented thereto, which consent shall not be unreasonably
withheld. The City shall be deemed to have consented to a transfer
or acquisition of stock in the Company unless the City disapproves
the same within 30 days after receipt of notice of any proposed or
actual transfer of stock or notifies the Company within 30 days
that additonal time is necessary to consider the matter. The
Company shall, when it files its acceptance of this franchise,
also file a list of its stockholders, all agents or nominees of
the Company and all persons having a beneficial interest therein,
stating the nature of such interest.
Section 15.
Locations.
No shelter shall be placed upon the public street or highway
right of way until the following procedure has been accomplished
and the location has been approved by the Council;
A. The Company shall give written notice to abutting property
owners at least ten days prior to the date set for a public hearing
and furnish them with a site plan upon their request.
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B. The Company shall print in a newspaper of general circu- --
lation in the City of Saint Paul at least ten days prior to the
date set for public hearing, notice of such public hearing.
C. The Company shall submit to the Director of Public Works
and any other public body that the Director may designate, a site
plan, a description of how electrical service will be provided
and any unique shelter design required to accommodate the shelter
to the location, and any other information the Director may require.
No shelter may be placed upon the public right of way unless the
site plan is approved by the Director.
D. The Company shall notify all utility locaters and submit
� the Director proof that such notice has been given.
E. The Company must obtain all building and other required
permits from the City or any other agency of government as the law
requires, including a permit from the proper road authority if
other than the City.
The Council shall, through a designated committee, hold a
public hearing with regard to the approval of all locations. All
locations and installations must conform to the zoning ordinance
of the City.
Section 16 .
Performance Bond.
Within ninety (90) days after the publication of this ordi-
nance, the Company shall file with the City Clerk a performance bond
in the amount of Dollars in favor of the City.
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The Bond shall be maintained throughout the term of the franchise
and until the Company shall have liquidated all of its obligations
with the City. In the event the Company fails to comply with any
law, ordinance or regulation governing the franchise or fails to
well and truly observe, fulfill and perform each term and condition
of the franchise, including the Company's application which is in-
corporated as though fully set out herein, there shall be recover-
able, jointly and severally, from the principal and surety of the
bond, any damages or loss suffered by the City as a result, includ-
ing the full amount of any compensation due the City, indemnifi-
cation for the cost of removal and storage of any shelter, plus a
reasonable allowance for attorney's fees, including the City' s legal
staff, and costs up to the full amount of the bond.
_ The bond shall also be conditioned upon the removal at the
expiration or termination of the franchise of the Company' s shelters
and the restoration of the streets and public places of the City to their
former condition. The bond shall contain an endorsement that no
cancellation shall be effective until ninety (90) days after receipt
by the City Clerk of a written notice of intent to cancel or not to
renew sent by certified mail, return receipt requested. No cancel-
lation shall be effective if the surety has received notice by the
City of the Company' s default. The bond may not be cancelled and
shall remain in effect in the period commencing at the expiration
or termination of the franchise and for 365 days thereafter.
Section 17 .
Letter of Credit.
A. Within ninety (90) days after the publication of this
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Ordinance, the Company shall deposit with the City an irrevocable
letter of credit issued by a financial institution, renewable
annually. The letter of credit shall be in an amount equal to the
Director of Public Work' s estimate of the cost of labor and
materials necessary to install shelters. The form and
content of the letter of credit shall be approved by the City
Attorney. The letter af credit shall be used ta guarantee the
funds necessary to install shelters at such locations as may
be approved by the City and may be drawn on demand by the City to
accomplish such installation in the event that the Company fails
to install the shelters as required under Section 20 of this
Ordinance, or in the event that this franchise is terminated pur-
suant to Section 23 before shelters have been in-
stalled. In no event shall the Company be required to maintain the
letter of credit for a period longer than two (2) years from the
date of installation of the fi�st shelter.
B. The Company may, at its option, deposit cash with an
e�crow agent in lieu of any portion of the funds to be guaranteed
by the l�tter of credit. The Company's choice of escrow agent
shall be subject to the City' s approval, which shall not be un-
reasonably withheld. The escrow agreement shall authorize the
City to draw on demand the funds on deposit upon the same terms
and in the same circumstances as stated herein with respect to the
letter of credit. The escrow agreement shall be subject to the
approval of the City Attorney.
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C. Whenever any shelter or shelters have been installed and
paid for by the Company, the total amount of the funds required to
be guaranteed by the letter af credit (or deposited in escrow) may,
for each shelter that has been installed and paid for, be reduced
in an amount equal to of the amount which has
been certi�ied by the Director of Public Works to be the estimated
cost of labor and materials for installing shelters.
D. After ten (10) days ' notice to the Company by the Director
of Public Works of failure to comply with any provision of Section
20 of this Ordinance, or upon the termination of the franchise
pursuant to Section 23 , the City may immediately request and
receive payment of the remaining amount of the letter of credit
and escrow account from the financial institution issuing the
letter of credit and from the escrow agent. The rights reserved
to the City with respect to the letter of credit are in addition
to all other rights of the City and no exercise of any right with
respect to such letter of credit shall affect any other right the
City may have. The letter of credit shall provide that it will be
automatically renewed unless ninety (90) days prior to its expiration
the City Clerk shall have received by certified mail the notice
of intention to cancel or not to renew.
Section 18 .
Removal of Shelter.
A. The Council may order Company to remove any shelter when
it reasonably determines that it is no longer of any benefit to
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the public, when there is no longer a bus stop at the location or
when it finds that maintenance is inadequate under Section 21
herein. If the City requires removal of a bus shelter because of
relocation of all or part of a bus route, the City shall give the
Company a reasonable period of time to remove the shelters thereon.
If the City requires the removal of more than ten {10) bus shelters
because of the relocation of a bus route, the reasonable costs of
removing the shelters may be set off against the franchise fee due
the City. If a shelter must be removed within the first four (4)
years of the franchise term because the Council has determined
that it is no longer of a benefit to the public, the cost of removal
may be set off against the franchise fee due the City.
B. If a shelter must be temporarily removed for construction
done by any governmental unit or its contractor, Company shall at
its own cost remave the shelter promptly when requested to do so
by the Director of Public Works. The City may also order the
Company to temporarily remove a shelter for an abutting owner' s
construction at such owner 's expense.
C. If the Company fails promptly to remove a shelter when
ordered to do so by the Director of Public Works or Council, the
City may have the shelter removed within ten (10) days after
written notice to the Company, and the Company shall pay the cost
of removal or storage thereof.
Section 19.
Public Works to Regulate Installation.
15.
The Director of Public Works shall regulate the installation
of shelters and if, in the opinion of the Director of Public Works,
the shelter installation is hazardous the Cauncil may order the
Company to take necessary steps at its own cost to remove or re-
locate the shelter or make the necessary repairs to correct the
hazard. The Director of Public Works has the right to conduct
reasonable inspections of shelters for this purpose.
In regulating the installation of shelters, the Director of
Public Works shall regulate the size of shelters installed, its
orientation or placement on the site, and any preparatory or remedial
site work. When the City has approved a site plan, the Company shall
submit detailed amended plans showing any discrepancies between the
site plan approved and the work completed.
Section 20.
City May Require Shelters - Installation Schedule.
The City may require the Company to install shelters at such
locations it may designate within the City and may require the
Company to take the procedural steps necessary for the approval of
such locations as specified in Section 15 herein within thirty
(30) days after it designates such location or locations.
Shelters shall be installed at a location within three (3)
months after the location is approved by the Council, provided,
however, that the Company shall not be required to install mare
than shelters in any three (3) month period.
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The months of December, January, February and March shall not
be included in determining either three-month period. If the Company
establishes that the cost of maintaining a shelter during any six-
month period exceeds the actual costs of installing the shelter
the Company shall not be required to keep and maintain a shelter
at such location; otherwise no shelter may be removed from an
approved location without the consent of the Council. The City shall
not permit any other bus stop shelter franchisee to install a shelter
within ane block of a shelter installed and maintained by the Company.
Section 21.
Maintenance.
The Company will maintain all shelters to the reasonable satis-
faction of the Director of Public Works as set out below. Mainten-
ance includes cleaning and washing the entire shelter inside and out,
removal of graffiti, stickers, posters, notices, and the like, re-
moval of litter, weeds and grasses inside and adjacent to the shelter,
repair and replacement of damaged or broken parts, the supply of
replacement parts, replacement of burned-out lighting fixtures, the
supply of electrical energy, and clearing snow from inside the
shelter, and cleaning snow, dirt and debris in the area between the
shelter and the curb line. The Company shall clean and wash and
remove graffiti, stickers, posters, litter and weeds at each shelter
at least twice every month, or more frequently if required, to keep
each shelter free of any noticeable accumulation of dirt, dust,
marks, stickers, posters, litter or weeds. The Company shall clean
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any accumulation of snow from inside the shelter and from the area
between the shelter and the curb line within 48 hours after a
snowfall of four (4) inches or more.
The Company shall inspect each shelter at least once every four
calendar days for any damaged or broken parts or burned-out lighting
fixtures and the Company shall repair or replace damaged or broken
parts and burned-out lighting fixtures within 24 hours after the
Company becomes aware of the damage, breakage or burn-out.
Section 22 .
Advertising.
The Company shall limit advertising to one-third of the area
of the vertical surface of the shelter and all such advertising must
be displayed on one or both sides of a single panel of the shelter,
which panel shall not be larger than four (4) feet by six (6) feet
in dimension. The Company shall not permit obscene, immoral or
indecent advertising or legal or political advertising of any
character. The Company shall not allow more than sixty (60) percent
of the Company' s combined total advertising space on all shelters
in the City to pertain to tobacco or alcoholic beverage products
at any time. The Company, in accepting this franchise, agrees to
remove any advertising which the Council determines to be inappropri-
ate to the particular location or surroundings of the shelter or
inappropriate as a use of the public street right of way. The
Company shall provide equal access to all advertisers at reasonable
rates. The �ompany shall, upon notice, remove any advertisement of
a private company or a commercial product or service that has been
placed or displayed on a shelter on the same street and within one
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(1) city block of any property owned or leased by a company which is
in competition with, or which, as its principal and primary business,
markets a product or service which is in competition with the company,
product or service which is advertised.
Advertising may be placed on shelters �nly in accordance with
the Saint Paul Zoning Ordinances.
Section 23 .
Forfeiture.
A. The City shall, in addition to any other rights it may
have, have the right to declare that the Company has forfeited the
franchise in the event of a substantial breach of its terms and
conditions including, but not limited to the following circumstances:
(1) If the Company becomes insolvent or is declared
bankrupt or makes any assignment for the benefit of
its creditors, or
(2) Tf the Company assigns or transfers or attempts
to assign or transfer the franchise, or sells or leases
or attempts to sell or lease any of its shelters without
the Council 's permission, or
(3) If the Company fails to install shelters on schedule
as required in Section 20 of this Ordinance, or fails
to conform to the specif ci ations contained in its appli-
cation or the Invitation for Applications, or fails to
construct the shelters in a workmanlike manner to the
satisfaction of the Director of Public Works and in
conformity with this Ordinance, or if the Company
refuses or neglects when so ordered to take down,
rebuilt or repair any defective or unsatisfactory work
or to maintain the shelter as required under Section 21
herein, or
(4) If the Company fails to remove any shelter when
ordered to do so in accordance with this Ordinance, or
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(5) If the Company refuses or neglects to comply with
any reasonable order of the Director of Public Works, or
(6) If the Company persists in any course of conduct in
violation of any of the provisions of this Ordinance, or
(7) If the City receives notice of intention not to
renew or the company fails to keep in force its insurance,
bond and letter of credit required herein.
The foregoing shall not constitute a substantial breach if the
breach occurs as a result of circumstances over which the Company
has no control. The Company shall not be excused by mere economic
hardship nor by the neglect of its officers, agents, or employees.
B. The Director of Public Works may make a written demand by
certified mail, that the Company comply with any such provision� rule,
order or determination under or pursuant to this franchise. Such
notice shall be entitled "Forfeiture and Termination Notice". If
the violation by the Campany continues for a period of thirt�r (30)
days or more following such written demand, without having been
corrected or remedied, the matter of forfeiture and termination of
the franchise shall then be taken before the City Council. The City
shall cause to be served upon the Company at least twenty (20) days
prior to the date of such council meeting a written notice of intent
to terminate the franchise, including the time and place of the
meeting. Public notice shall be given of the meeting and issue
which the Council is to consider. The City Council, or a committee
thereof, shall hear and consider the issue and the Council shall,
in its discretion, determine whether there has been a substantial
breach. If the �ouncil determines that there has been a �ubstantial breach,
20.
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�1����
the Company shall have such period of time as the Council may set,
but not less than thirty (30) days in which to cure the breach,
provided that no opportunity for cure need be given for fraud or
misrepresentation. At the expiration of the period of time set
for compliance, the Council may terminate the franchise forthwith
upon finding that the Company has failed to cure the breach. If
the Company fails to cure, the City or any stockholder of the Company
may cure and the expense incurred shall be a debt of the Company to
the stockholder or the City, as the case may be.
C. In the event of forfeiture, the Company shall also forfeit
to the City all equipment and facilities that may be located along,
over or under any street or highway within the City, unless such
property is removed by the Company within ninety (90) days from the
date of forfeiture. The performance bond posted in accordance with
Section 16 shall remain posted to insure that the streets, highways
and public places from which such equipment is removed shall be
placed in good condition.
Section 24.
Disposition of Shelters on Expiration of Franchise.
A. In the event that the franchise expires and is not renewed,
the City may purchase the shelters and facilities then in place upon
such terms and for such consideration as may be agreed to by the City
and the Company prior to the expiration of the franchise. If prior
to the expiration of the franchise or within ninety (90) days follow-
ing such expiration the City elects to award a franchise ta any other
21.
�'����3�
person or company, and the City elects to have the new franchisee
operate and maintain the shelters which have been installed pursuant
to this franchise, then the new franchisee shall purchase such
shelters on such terms and for such consideration as may be agreed
to by the new franchisee and the Company.
B. Notwithstanding the provisions af Paragraph A of this
section, in the event that �the term of this Franchise expires and the
City and Company have not renewed the Franchise for an additional
term, the Company shall at its own expense remove all of the shelters
and facilities which it has installed or caused to be installed upon
or below the public streets and highways or public places of the
City and shall restore the streets and highways of the City to their
former condition in a manner satisfactory in the judgment of the
Director of Public Works. If the Company fails to remove all such
shelters and facilities within ninety (90) days after the expiration
of the Franchise, the City may have the shelters and facilities
removed and require the Company to pay the cost of such removal.
In the event that the shelters and facilities have not been sold
pursuant to Paragraph A of this section or removed by the Company,
all right and title to the shelters shall be deemed to have passed
to and vested in the City. The Company agrees that in such circum-
stances it will execute such documents as the City Attorney may
require to transfer the title to such shelters and facilities.
Section 25.
Right of Abutting Property Owner to Construct Shelter.
Abutting property owners shall have the first right and privi-
lege to construct, operate and maintain shelters upon the public
right of way of streets and highways of the city, at locations o�
22 _
�`�����
or adjacent to the property of the owner. The abutting property
owner shall give written notice to the Council and the Company of
its election to construct a shelter at a given location no later
than the date of the public hearing for the location of any shelter.
If the abutting property owner so elects, the Company may nat con-
struct a shelter at that location unless the abutting property
owner consents in writing of fails to take affirmative measures to
construct the shelter within ninety (90) days of its election.
By electing to exercise its aforementioned first right and
privilege, the abutting owner agrees to:
(A) Permit no advertising on the shelter.
(B) At all times maintain insurance pursuant to the terms
of Section 12 of this Ordinance.
(C) Acknowledge that its rights are subject to the police
power of the City pursuant to Section 7 of this Ordinance.
(D) Defend, indemnify and hold harmless the City, its
officers and employees according to the terms and conditions
of Section 13 of the Ordinance.
(E) Submit all plans, specifications and drawings to the
Director of Public Works for approval prior to commence-
ment of construction of the shelter. The Director of
Public Works shall regulate the installation of the
shelters pursuant to Section 19 . If the structural
design of the shelter is similar to the structural design
of the Company' s shelter, the Director of Public Works
shall require for his approval that the design, pians and
engineering specifications be at least substantially
equivalent in quality to those of the Company' s shelters.
(F) Maintain its shelter pursuant to Section 21 of this
Ordinance.
23.
�''�+����'
In the event the abutting owner fails to comply with any of
the terms and conditions hereof, the City may require the owner to
remove the shelter at its own expense.
Section 26.
Civil Rights.
The Company shall at all times comply with the provisions of
Chapter 183 of the Saint Paul Legislative Code and applicable state
and federal law regarding nondiscrimination and civil rights.
Section 27 .
Severability.
If any section, subsection, sentence, clause, phrase, or
portion of this Ordinance is for any reason held invalid or un-
constitutional by any court of competent jurisdiction, such portion
shall be deemed a separate, distinct, and independent provision and
such hoiding shall not affect the validity of the remaining portions
thereof.
Section 28.
This ordinance shall be deemed a part of the Saint Paul Legis-
lative Code and shall be incorporated therein and given an appropri-
ate chapter and/or section number at the time of the compilation of
the said Legislative Code.
Section 29 .
This ordinance shall take effect and be in force thirty (30)
days from and after its passage, approval and publication.
24 .
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` :;%� J�',.' O�FILE O� THE CI-iY A.i-TC3E:�1EY
��, ���,
, � _ ED4ti'AiZ[) P. STARK, CITY �1-iTC�Ri�.f:Y
, 647 City Hali, Saint P�iuf, titinne,ota 5�102
612-298-5121
GEORGE LATIME!:
h:t.�l'OR
�'�pril 14 , 1980 -
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8'vA,�'t��.�,".'� '�w�����.� .
Peter Hames
Director of Pdanagement
O?_fice of Mayo.�
347 City Hall
Uear ��r. Names:
You had asked r.^.e to check recent legislation to determine if
there �s ar.�� State authority allowing the City to grant exclusive
franc'zise_ ior bus shelters. Plea�e be advised that the State
Ie,isla��on e?-?acted within the last few years clarifies the
a.�zthor�L== t� �?low bus shelters on public streets with adver-
tisinq �1• mears of either a permanent l�_cense or a franchise�
but tha; no authority is granted to municipalities to issue
€�:�,clusive franchises`: As you are already aware, the City Gharter
spec�ficaliy prohibits the granting of exclusive franchises.
I} there is any further information that you need, ple�se notify
me.
You s very truly,
D
,;TE ". � J. SEG If�
A si ant Ci y ;�r-�ttorney
J. S :cg
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CITY OF SAINT PAUL j;,�;;' 6`"' � �
INTERDEPARTMENTAL MEMORANDUM t`-` -'
. � OF,f'r� �,. ••,Y
1:'.;�hE ..:_..,..-�.�
P�ay 5, 19 8 0
TO: �CIL PRESIDENT JOANNE SHOWALTER
COUNCILMAN GEORGE McMAHON
FR: PETER HAMES �-.
RE: TRANSTOP BUS SHELTER PROPOSAL
Today I met with Stewart G. Herman, President, Transtop, and
�aalter Baum, Summit State Bank, regarding Transtop' s desire
to make a proposal to the City of Saint Paul for bus shelters
with advertising. Transtop has been av�arded the franchise
for providing bus shelters with advertising in Minneapolis and
is desirous of providing the same service in Saint Paul.
I told Mr. Herman and Mr. Baum that I would contact you re-
garding how you would like to proceed on the matter. I in-
formed them that when 3rS Company made a similar proposal in
1975, that the Council Public Works Committee heard the pro-
posal. I assume that you would like to proceed in the same
- manner in order to hear their proposal.
I further explained that the Council has been quite busy in
dealing with the trash issue and the cable television issue.
I suggested that they wait to hear from me, after hearing from
you, in how you would like to proceed. I will be out of town
until Wednesday, May 7. I would like to discuss proceeding
on this matter with you then.
PH:kh
cc: Mayor George Latimer
City Council blembers
Stewart Herman
Walter Baum
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April 15, 1980
City af S�snt Paul
Of.fice o� th� i-iayor
347 City Hayl ��
Sain+ ?'aul, l�L'�T 5510?_
�TI'��f I�`: Pet��r H.=..-�s
Director o� i�4anag�m�?z i
RE: Transtcp M:ini?esota, Inc.
Proposal to Saint P�u1
Dear Pe�u:
I a���reciateci receivir.g the mat�r_ials relating to transit shelters
with advertisin;. 'I�^e thoughts contain� t-izerein were of grf�at inter.est
to m� �nd while I do nat concur with everything I read (the Sta`e statu-
tc�y c��ang� n�kes sca� of it outd�ted) , it is evideizt that Plannir.g an�
Ece�,�anic Develo�ent, P�lic t9orks, City Plaruzing and the City Attorney
have devatE�c� mach tim�= and energy studying this pra�ram. Since ow:� pro-
posal is alse�y fon�?ulated and as the City is very much aware of che
��.:'�j�ct ^��:t�er, �:� resL:�c+Y�ull� requesr a r�etinc� e,-it� a�;?ror�riate City
officials to ma'�:e our presentatior as soazn as �ssible.
As you kna��, the City of P�linneapolis gr�ntec� Transtop r�"i_n.n.PSOta a
franchise to manufacture, install and maintain a transi.t shelter sy�;t�-^
���ith cc�;�.�rcial acivertising s� mor_+-hs ago. Our proc�am is functio�a�
and installation is scliedul;� to ccn�r�nce within the next fou-r (4) to
six (6) weeks. ��1ittlout c�stion, oar const-xuction ar�cl maintenance staff
is equippeci to service bath Saint Paul and Niinn�a�olis at tY:e present
til-r�. �
.
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. f�: 1�'. Pe�'r �-Ia:1�S �- .
G�1e ::: � :nit. �th<�+.. �t is :uz the City's iiltcr��:t, as we11 ��zs o�wr c��,n,
#-c:� p��oc=><:-" ;v�ii=n our L.�:zo�x; ; :.l in .��'Y207'L ozd�r. We w�l::c�r� the cl�portt��Lity
to disc��," our d�:proac'_n w��l yc:., arid your coll.eacJues. Finally, �tie taoul�i .
. k. :�:�.a .f� -cv have the City dec:�:a� -tr,is issue on a cxa-n��titive bid bas.is.
:i �lc��ev��rr :L seriously doubt that z�ny leg:iti�te bus she?�ter ca*���,ny would
a e.�rox�:ss even a token inter�st in Saint �'aul caiih P'Lins.�-_��o1is talcer..
'.X
- I loc�k fo:t��ard to hearing fran you soon.
Very trul.y yours,
//1�' 'i �
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CC: FiO.^_Ol"c?,�J�� �Ur'�� IrZtlIT�Z'
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' . ..� CITY OF�+` SAIIti7T PAUL
:=��i� .,, � �'�����
�`a' . OFFICE OF THE CITY COUYCIL
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'�.;_ -<` Dote : June 8, 1981
.__,,- ,
COMMETTEE REPORI"
TO : 5aint Paul Cifiy Councii
FROIV� � Commit�tee O[1 CITY DEVELOPMENT AND TRANSPORTATION�
Leonard W. Levine , chairman, makes the fol lowing
� re port o n C.F. C] Ordinance �
[� Resolution
[� Ofiher
T �T�.E : Letter of Peter Hames transmitting resume of his
conversations with Transtop Minnesota, Inc. regarding
that firm's desire to make a proposal to the City
for bus shelters with advertising. _
The Committee recommends that the attached resolution
citing the existence of a public need for bus shelters
with advertising and further recommends that the
Mayor and Department of Public Works advertise and
receive proposals for the granting of a non-exclusive ,
bus shelter franchise, and further recommends that
the request for proposal contain provisions in the
attached draft of a bus franehise ordinance.
(Attachments)
CITY �IALL SEVEN?H FLOOR SAINT PAUL. biINNFSOTA 55102
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