Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute An Agreement Between Sunshine State Media, Inc. To Maintain The Existing Bus Bench And Bus Shelter Program, For A Five Year Period Commencing June 3, 2019.
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
This item is a companion item to the proposed First Amendment Agreement with Broward County for the installation and maintenance of transit bus shelters.
The City operates a bus bench and bus shelter program providing facilities for bus patrons at 546 bus stop locations throughout the City. These facilities are provided through vendor agreements. The Bus Bench and Bus Shelter Agreement with Sunshine State Media, Inc. services 208 bus benches locations and 105 bus shelter locations.
The Agreement is for five years from the date of execution of the Agreement with an option to renew for one extension period of five years.
Florida Statutes 337.408(1) allows a municipality to authorize the installation of transit benches and shelters together with advertising displays within right-of-way without a public bid. Current vendor, Sunshine State Media, Inc. has expressed interest to continue working with the City and the City has the option to authorize a vendor as per the above Florida Statutes through approval of a new agreement.
Under the contract terms of the Agreement, the benches are owned by the vendor and the shelters are installed and owned by Broward County. The City has a separate agreement with Broward County under City Resolution R-2010-181 that the County will provide the shelters and the City will maintain the shelters. In this Agreement, there will be 208 benches and 105 shelters.
The latest agreement expired on June 3, 2019. Upon approval of this item, the Agreement will retroactively commence on June 3, 2019.
Fiscal Impact:
There are two financial components associated with this Agreement.
Bus Bench:
Per the terms of this Agreement, the Vendor will collect advertisement revenues on bus benches and pay for labor and materials for repair, trash pick-up and routine maintenance services to the benches. The City will be compensated with a portion of the revenues at a negotiated rate per bench (for a minimum of 200 benches). The rate includes a 7% increase in the second year of the agreement and 3% increases in the out years. The projected annual revenue paid to the City for the term of the agreement is:
- Year 1: $72,384
- Year 2: $77,376
- Year 3: $79,872
- Year 4: $82,368
- Year 5: $84,864
Bus Shelter:
Per the terms of this Agreement, the County bus shelters do not contain advertisements and therefore no revenues are associated with the shelters. This Agreement includes a negotiated rate for the maintenance of shelters.
The Vendor has agreed to maintain the shelters at the current rate of $15.75 per shelter for up to 53 shelters. Additional shelters will be charged at a rate of $125 per shelter. The City currently has an inventory of 51 shelters. The annual cost for the first year of maintenance to the City is $9,639. This cost will be offset by the projected advertisement revenues collected for the bus benches. The cost to maintain bus shelters in the out years will be significantly higher as the County plans to install an additional 54 bus shelters throughout the City. The total cost for maintenance of the bus shelters (the existing 51 shelters and an additional 54 shelters) is projected to be $88,017 annually by Year 5 of this Agreement. Additional funding may be required in subsequent fiscal years, subject to the approval and adoption by the City Commission.
Staff recommends approval of the agreement.
Recommended for inclusion on the agenda by:
Azita Behmardi, City Engineer
Shiv Newaldass, Director, Development Services
Gus Zambrano, Assistant City Manager/Sustainable Development