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<br />Outdoor Promotions, Inc. <br /> <br />FA Term <br /> <br />Page 2 <br /> <br />collection and all shelter site maintenance to 20 bus stop locations including the 4 <br />custom units built and currently maintained by Roseville. [Note your own capital <br />investment for trash receptacles at your 4 shelter sites; and, look at the expense of <br />regular maintenance costs of trash collection and disposal fees at those sites.] <br /> <br />If Roseville elects not to have trash receptacles at shelters and not to provide trash <br />maintenance, we can eliminate them and begin talking about a higher term. [Note one <br />of the reasons Roseville invited us was that we provide an improved transit shelter <br />service including trash receptacles and trash maintenance. Note also that Metro <br />Council's annual survey of Metro Transit riders over recent years report persistent, <br />vehement complaints from riders about dirty and poorly maintained shelters.] <br /> <br />And, to address your concerns about future revenues and fees, we will add a fee <br />struchlre (that is reflected in the existing Saint Paul FA) to the Granting Franchise. <br />That struchlre is attached. It is based on 20 shelters and projected economy of scale in <br />advertising revenue. This is our honest projection of partnership performance. <br />That is: $500/shelter gross revenue x 80% occupancy x 12 months x 20 shelters. [This <br />is proprietary information and for internal City of Roseville use only.] <br /> <br />We recommend a conference call to clarify positions and to resolve differences. <br />We would appreciate your prompt response. <br /> <br />Craig Piernot and Gary Young <br />Outdoor Promotions, Inc. <br /> <br />Section 6. Fee for Franchise. In consideration of the award of the franchise by the <br />City, the franchisee shall pay to the City a fee as defined in Section 1207.15. <br />Franchisee fee shall be based upon the annual gross revenue derived from <br />advertising in its shelters located within the City in accordance with the following <br />schedule: <br />(1) If annual gross revenues are less than one hundred thousand dollars ($100,000.00): <br />Eight (8) percent. <br />(2) If annual gross revenues are one hundred thousand dollars ($ 100,000.00) but less <br />than one hundred twenty five thousand dollars ($ 125,000.00): Nine (9) percent. <br />(3) If annual gross revenues are more than one hundred twenty five thousand dollars <br />($125,000.00)): Ten (10) percent. <br />