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05-457Council File # �S �S ! _ Ordinance # Green Sheet ,� _204238______ ORDINANCE CITY OF SAINT PAUL, MINNESOTA Committee Date : Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2� 28 29 30 31 32 33 34 An ardinance granting the Ad Shelters, Inc., Bus Stop Shelters Franchise, for July 1, 2005 through June 30, 2015 THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN THAT THE SAINT PAUL LEGISLATIVE CODE, APPENDIX I, BE AMENDED AS FOLLOWS: St. Paul Appendix I. Bus Stop Shelter Franchise Section 1. Grant. Acting pursuant to the authority granted to the City of Saint Paul by the Minnesota State Legislature pursuant to Minnesota Statutes, Section 160.27, Subdivision 2, the council of the City of Saint Paul does hereby grant to Ad Shelters, Inc. (hereinafter referred to as"company") a nonexclusive bus stop shelter franchise subject to all the terms and conditions set forth in this franchise ordinance. 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 within the City of Saint Paul, for the convenience and comfort of persons wairing far 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. 4 S ��1�.�� A:ri+'��� ,� Z 5 '05 Upon adoption of this franchise ordinance 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 company's application is thereby incorporated by reference and made a part of this franchise ordinance. In the event of a conflict between the applicafion 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. a�- �s � � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Section 4. Term--Renewal. The term of this franchise granted by the city shall be for a term of ten (10) years from and after July 1, �995 2005. Thereafter the franchise may be renewed for an additional ten-year term on such terms and conditions as may be mutually acceptable to the city council and company. Section 5. Commencement of term. The francluse term shall commence with the effective date of this ordinance; provided, that the company has filed within tl�irty (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 a bond or letter of credit and the evidence of comprehensive liability insurance, which aze required by this ordinance, shall have been approved and have been filed with the city clerk within ninety (90) days after the publicafion of this ordinance. 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 accepfing this franchise the company aclrnowledges 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 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 of Saint Paul without a franchise. This shall not, however, include non-advertisine shelters conshucted by epergtiai�) Metro Transit. The rights hereby granted aze not exclusive and the city may grant like rights and responsibilities to other persons during the term of this franchise. Section 9. Notices. All 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 throughout the term of this franchise a local office and address for service of notices by mail. Company shall also maintain with the city a local office and telephone nuxnber 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 dS-�fS7 2 3 4 � 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 the city a fee based upon the annual gross revenue collected that the company derives from advertising on shelters located within the city in accordance with the following schedule: (1) If annual gross revenues aze less than four hundred twenty-five thousand dollazs ($425,000.00): Nine (9) percent. (2) If annual gross revenues aze four hundred hventy-five thousand dollars ($425,000.00) but less than four hundred seventy-five thousand dollars ($475,000.00): Ten (10) percent. (3) If annual gross revenues are four hundred seventy-five thousand dollars ($475,000.00) but less than five hundred fifty thousand dollars ($550,000.00): Eleven (11) percent. (4) If annual gross revenues are more than five hundred fifty thousand dollars ($550,000.00): Twelve (12) percent. The fee shall be paid to the Saint Paul Public Works Depariment — AccountinQ Section eity quarterly within thirty (30) days after the expirarion of each calendaz quarter. Each payment shall be based upon the gross advertising revenues received in the preceding calendaz quarter. The quarterly fee payment due shall be determined by multiplying the gross revenues for the quarter by that percentage that would be applied assuming that the annual gross revenues will be four (4) times the gross revenues for that quarter. The gross revenue as defined shall mean all advertising revenue derived directly or indirectly by the company, its affiliates, 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 company herein imposed directly upon any advertiser by the city, state ar 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 advertising on shelters, showing all financial transactions including receipts and disbursements and the particulazs thereof in a form satisfactory to the directar of the department of finance and management services. Company shall make such books of account and records available at all reasonable times for inspection, examination or audit by city officers, employees ar agents. Company shall submit such statements in regard to revenues 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 one hundred twenty (120) days after the end of the company's fiscal year, a copy of 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 certified as correct by an independent certified public accountant, and a statement of its properties, equipment and facilities which aze 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 os- �s � 2 3 4 � 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2'7 28 29 30 31 32 33 34 35 36 37 38 39 4Q 41 42 43 44 45 46 47 48 informafion 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, and 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 and 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 aze to be one million dollars ($1.000.000� (�'s399;A6�.�9j for bodily injury or death of any one person, hvo million dollars (�2.000,000� ' �698;66�99j for bodily injury or death of more than one person in a single occurrence; and one million dollars ($1,000,000� f$39�;696:A6j for properiy damage to one claimant and two million dollars ($2,000.000� ' , . for more than otte 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 endorsement wluch shall provide that no cancellation shall become effective without thirty (30) days' priar written notice to the city of intent to cancel or not to renew. In the event such insurance is cancelled and the company shall fail to immediately replace it with another equivalent policy, the city may terxninate their franchise and declare it to be forfeited. Section 13. Indemni£►cation. A. The company shall fully indemnify, defend and save harmless the city, its officers, board, commissions, employees and agents from any and all claims, suits, acrions, liability and judgments far damages (including, but not limited to, expenses for reasonable legal fees and disbarsements assuxned by the city in connection therewith): (1) For in}ury 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 advertisements, notices, signs or posters on any shelters; or (3) Arising out of the exercise of any other right or privilege under the franchise. oS- 4s� 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 B. In the event that suit is brought or that damages or other recourse shall be sought against the city, either independent or jointly with the company on account of or arising out of any injury, death, property damage or acrivity of the company referred to in subparagraph A of this secrion, 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 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 hannless 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 lifigation by its own counsel at its own sole cost and expense. Secrion 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 which consent shall not be unreasonablv withheld. Any assignee, lessee, mortgagee and any person or enfity having or acquiring any interest, right or tifle 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 provisions of the franchise. Any document by which any interest, right or title to the franchise or the facilities that are installed ar 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, return receipt requested, of any actual ar proposed change in, ar 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 wntrol in whatever manner exercised. Any transfer, sale ar 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 haue consented to a transfer ar acquisition of stock in the company unless the city disapproves the same within thirry (30) days after receipt of notice of any proposed or actual transfer of stock or notifies the company within thirry (30) days that additional6me 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 hauing a beneficial interest thzrein, stating the nature of such interest. Section 15. Locarions. 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 (10) days prior to the date set for a public hearing and furnish them with a site plan upon their request. B. The company shall print in a newspaper of general circulation in the City of Saint Pau1 at least ten (10) days prior to the date set for public hearing, notice of such public hearing. o S- �s 7 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 C. The company shall submit to the d'uector of public works ten (10) copies of 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 to the d'uector proofs that such norice has been given. E. The company must obtain all building and other required pernrits from the city or any other agency of government as the law requires, including a pernut from the proper road authority if other than the city. The council shall, , hold a public hearing with regard to the approval of all new locations. All locafions and installations must conform to the zoning ordinance of the city. Section 16. Performance bond. Within ninety (90) days after the publication of this ordinance, the company shall file with the city clerk a performance bond in the amount of twenty-five thousand dollars ($25,000.00) in favar of the city. The bond shall be maintained throughout the term of the franchise and until the company shall have liquidated a11 of its obligations with the city. In the event the company fails to comply with any law, ardinance or regulation governing the franchise or fails to well and huly observe, fulfill and perform each term and condition of the franchise, including the company's applicarion which is incorporated as though fully set out herein, there shall be recoverable, jointly and severally, from the principal and surety of the bond any damages or loss suffered by the city as a result, including the full amount of any compensation due the city, indemnification 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 ternunation 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 effecrive 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 cancellation 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 far three hundred sixty-five (365) days thereafter. Section 16A. Optional letter of credi� In lieu of the performance bond required under Section 16, the company may elect to give the city a letter of credit far twenty-five thousand dollars ($25,000.00) issued by a bank in the metropolitan area. The letter of credit shall provide that it may be drawn upon under the same circumstances as a surety would be subject to a claim under its bond as provided in Section 16 with respect to the performance bond, except that the letter of credit shall be subject to a draw without any previous demand upon, or nofice to the company. The letter of credit shall also be os-�s� 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 subject to a draw if it is effective for a lunited term and is not replaced by a replacement letter of credit at least fhirty (30) days before expiration. The letter of credit shall also be in a form approved by the city attomey and shall be on file with the city clerk and remain so until three hundred sizty-five (365) days after the expirarion or terminarion of the franchise. Section 17. 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 the publiq when there is no longer a bus stop at the location or when it finds that maintenance is inadequate under Secrion 20 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 thereof. If the city requires the removal of more than four (4) bus shelters because of the relocation of a bus route, the reasonable costs of removing or relocafing the shelters 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, after being given two (2) weeks' written notice, at its own cost remove the shelter promptly when requested to do so by the director of pulilic warks. The city may also, upon two (2) weeks' written notice, order the company to temporarily remove a shelter for an abutting owner's construction at such owner's expense. The city shall not be required to provide two (2) weeks' advance written notice when and in the event the removal of the shelter is required on account of an unexpected ar emergency situation. C. If the company fails promptly to remove a shelter when ordered to do so by the director of public works ar council, the city may have the shelter removed within thirty (30) days after written notice to the company, and the company shall pay the cost of removal or storage thereof. Section 18. Public works to regulate installation. 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 director may order the company to take necessary steps at its own cost to remove or relocate 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 directar of public works shall regulate the size of shelters installed, its orientarion 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. The companv shall install and maintain a minimum of 100 shelters within the franchise area unless otherwise approved bv the citv. Section 19. City may require shelters—Installation schedule. The city may require the company to install shelters at such locations it may reasonably designate within the city and may require the company to take the procedural steps necessary for the approval of such locarions as specified in Section 15 herein within thirty (30) days after it designates such location or locations. os-�s7 2 3 4 � 6 7 8 9 10 11 12 13 14 15 16 1'7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 4'7 48 Shelters shall be installed at a locarion within three (3) months after the locarion is approved by the council; provided, however, that the company shall not be required to install more than twenty (20) shelters in any three-month period. The months of December, January, February and Mazch shall not be included in deteimining either three-month period. If the company establishes that the cost of maintaining a shelter 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 pernut any other bus stop shelter franchisee to install or retrofit a shelter within one block of a shelter installed and maintained by the company in the central business district or two (2) blocks in the remainder of the city. Secfion 20. Maintenance. The company will maintain all shelters to the reasonable satisfaction of the director of public works as set out below. Maintenance includes cleaning and washing the entire shelter inside and out; removal of graffiti, stickers, posters, notices and the like; removal of litter within 50 feet of the com�ands shelter in an area between the roublic sidewalk ri t of way.prouerry line on the shelter side of the street and the street curbline on the shelter side of the street, 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 azea between the shelter and the curbline. The company is not re�red to remove litter on anv adjacent nn 'vate ro . The company shall clean and wash and remove graffiti, stickers, posters, litter and weeds at each shelter at least ttvite once every man4lx week, or more frequently if required, to keep each shelter free of any noticeable accumulation of dirt, dust, marks, stickers, posters, litter or weeds. In addition, the company shall remove litter from specific shelter(sl on a complaint basis within twenty-four f24) hours of receivine nofice from the Director of Public Works or desienee. The company shall inspect each shelter at least once every seven (7) calendar days for any damaged or broken parts or bumed-out lighting fixtures and the company shall repair or replace damaged ar broken parts and burned-out lighfing fixtures within twenty-four (24) hours after the company becomes aware of the damage, breakage or burn-out. Section 21. Advertising. The company shalllimit advertising to one-tlurd of the area of the vertical surface of the shelter. All advertising panels shall not be larger than four (4) feet by six (6) feet in dimension, exce �t t for s ecially designed artwork on shelters that rorovides additional revenue and is a�proved on a case bv case basis by the Director of Public Works or desi ee. The company shall not pernut obscene, immoral or indecent advertising 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 tabaeea-ar alcoholic beverage products at any time. There shall be no tobacco uroducts advertisedin accordance with state and federal laws. The company, in accepting this franchise, agrees to remove any advertising which the council determines to be inappropriate to the particulaz 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 os-�s� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 reasonable rates. The company 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 (1) city block of any properiy owned or leased by a company which is in comperifion with, or which, as its principal and primary business, mazkets a product or service which is advertised. The Citv has the ri t to use up to 5% of the advertisingpanels for their own departmental uro blic service announcements with a sixty (60�ay advance notice and such space shall be su�ect to availabilitv. City's announcement posters mav be rotated to different locations as nanels are sold to advertisers. City will provide franchisee with announcement posters ready to install. Advertising may be placed on shelters only in accordance with the Saint Paul Zoning Ordinances. Section 22. 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) Tf the company becomes insolvent or is declared bankrupt or makes any assignment for the benefit of its creditors; or (2) If the company assigns ar transfers or attempts to assign or transfer the franchise, or sells or leases ar attempts to sell or lease any of its shelters without the counciPs permission; or (3) ff the company fails to install shelters on schedule as required in Section 19 of this ordinance, or fails to conform to the specifications contained in its application or the invitarion for applications, or fails to construct the shelters in a warkmanlike 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, rebuild or repair any defective or unsatisfactory work or to maintain the shelter as required under Section 20 herein; or (4) ff the company fails to remove any shelter when ordered to do so in accordance with this ordinance; or , (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;ar (7) If the city receives notice of intenrion not to renew or the company fails to keep in force its insurance, bond and letter of credit required herein. The faregoing shall not constitute a substanrial 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. 05- 4 S 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2'7 28 29 30 31 32 33 34 35 36 3'7 38 39 40 41 42 43 44 45 46 47 48 B. The director o£ public works may make a written demand by certified mail that the company comply with any such provision, nxle, order or determination under or pursuant to this franchise. Such notice shall be entitled "Forfeiture and Tenninafion Norice." If the violarion by the company continues for a period of tiurty (30) days or more following such written demand, without having been corrected or remedied, the matter of forfeiture and termuiation of the &anchise 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; ar-a ea��tt�ee shall hear and consider the issue and the council sha11, in its discretion, deterniine whether there has been a substantial breach. If the council determines that there has been a substantial breach, the company shall have such period of time as the council may set, but not less than thirry (30) days in which to cure the breach; provided, that no opporhxnity 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 forthwiUa 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 �pense incurred shall be a debt of the company to the stockholder or the city, as the case may be. C. There is no intention that the shelters shall be forfeited in the event of a forfeiture of the franchise, except as follows: In the event of forfeiture, the company shall 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 properiy is removed by the company within ninety (90) days from the date of farfeiture. The performance bond or letter of credit posted in accordance with Section 16 or Section 16A 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 23. 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 expirafion of the franchise. If prior to the expiration of the franchise or within ninety (90) days following such expiration the city elects to award a franchise to any other 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 of paragraph A of this section, in the event that the tetm 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 facilifies 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 restare the streets and highways of the city to their #'ormer 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 pazagraph A of this section or removed by the company, all right and title to the shelters shall os- Ns� 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 be deemed to have passed to and yested in the city. The company agrees that in such circumstances it will execute such documents as the city attomey may require to transfer the title to such shelters and facilities. Section 24. Right of abutting property owner to construct shelter. Abutting property owners shatl have the first right and privilege to construct, operate and maintain shelters upon the public right-of-way of streets and highways of the city, at locarions on or adjacent to the properiy of the ownez. 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 properiy owner so elects, the company may not construct a shelter at that locarion unless the abutting properiy owner consents in writing or fails to take affinnative measure 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: :� • �37 Pernut no advertising on the shelter. 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 ardinance. (D) Defend, indemnify and hold harmless the city, its officers and employees according to the terms and conditions of Secrion 13 of the ordinance. (E} Submit all plans, specifications and drawings to the director of public warks for approval prior to commencement of construction of the shelter. The director of public works shall regulate the installation of the shelters pursuant to Section 18. 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, plans and engineering specifications be at least substantially equivalent in quality to those of the company's shelters. (F) Maintain its shelter pursuant to Section 20 of this ordinance. 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 25. 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 26. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is far any reason os- �s7 � 2 3 4 5 6 7 8 9 10 11 12 13 14 held invalid or unconstitutional by any court of competent jurisdicrion, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 27. [Incorporation in Legislative Code.] This ordinance shall be deemed a part of the Saint Paul I,egislative Code and shall be incorporated therein as Appendix I. Seetion 28. [Effective date.] This ordinance shall take effect and be in force thirry (30) days from and after its passage, approval and publication. � ,�11. 2 5 '05 eas avs sen .. . • . ��� � WOIIfS COMACT PERSON & PFpNE �� Paul St. Martin MUST BE ON COUNCIL AGENDA 8Y (DAT� ASAP DATEINITIATED 5/16/2005 266-6118 TOTAL # OF SIGNATURE PAGES � DEPARIMENT OS . � No. 2042 8 � i�uaimere . . �� ❑ CITYATTORNEY � ❑ CI7YCLERK NUbIBER FOR �� ❑ FlNANCIAL SERNCES DI0. ❑ FlNMICIALSERV/ACCTG OflDFA ❑ ❑ MAYOR(OR ASS15iANT) ❑ ❑ 1 (CLIP ALL LOCATIONS FOR SIGNATURE) ACCIOPiREQUESTED Approve ardinance amending Appendix I Bus Stop Shelter Franchise of Saint Paul I.egislative Code. RECOMMENDATIONS:Approve (A) or R¢ject (R) � PLANNING COMMISSION � CIBCOMMI7iEE � CIVILSERVICECOMMISSION 7. Has ihis person/firtn ever vrorked under a contract for this tlepartment? YES NO 2. Has this persoNfirm ever been a ciry employee? YES NO 3. Does [his persoNfirm possess a skill not normally possessetl by any current city employee? YES NO 4. Is this persoNfirm a targetetl vendoY? YES NO INITIATING PROBLEM, ISSUE, OPPORTUN4TY (WHO, WHqT, W HEN, W HERE, W li`�' . Current franchise with Ad Shelters expires on 7une 3Q 2005. City and Ad Sheiters mutually agree that franchise should be renewed (with some revisions) for an addirional 10 years. @k2- ADVAM'AGESIFAPPROVED - N` � 1.) Bus Shelters provided by Ad Shelters will continue to provide service to transit users. �� 2.) Cily will continue to receive franchise fee from bus shelters franchise. DISADVANTAGESIFAPPROVED None �' DISADVAMAGESIPNOTAPPFOVED � Current Bus Shelter franchise will expire on 7une 30, 2005. OF TRANSACTION $ N/A t=' FUNDING SOURCE �,'�. FINANQALINFORMATION(EXPLAIN) COST/REVENUE BUDGETED (CIRCLE ONE) YES No ACTIVITY NUMBER